Annual Report
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Letter from the Chairperson
Letter from the CEO
Corporate governance and ethics
Strategy and value creation
FCC in 2020
Business lines
Appendix I. Financial Statements
199
Appendix II. FCC Group
2020 Sustainability Report
Appendix III. Annual Corporate
Governance Report
484
634
2
3
4
5
A1
A2
A3
3
FCC_Annual Report_2020 | Letter from the Chairperson | Page 1 of 2
The strength of a large company
Dear shareholders,
This letter, accompanying our Group’s 2020 Report, could not
begin without first remembering all the people who have fought
against COVID-19 over these months and have been able to
overcome the disease and especially those who have directly
suffered the loss of loved ones as a result of the pandemic. To
them all, I offer solidarity, hope and encouragement.
We can all agree that 2020 was a demanding year and a very
complex one to manage. It has been a tough, strange and diffi-
cult year that has reconfirmed that FCC´s true strength and best
capital are its people, their work and their dedication.
Despite adverse moments, we have all been able to take bold
decisions and work together.
Together we have overcome the present challenges and togeth-
er we will take on those to come. Our clear goal is to continue
to satisfy the needs of our customers, workers, suppliers, the
companies in which we work and the shareholders.
Despite adverse moments,
we have all been able to
take bold decisions and
work together
Esther A. Koplowitz
Chairwoman of the FCC Group
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4
The good results recorded
–that surpass all forecasts–
accurately reflect the
company’s response
to the pandemic
Once again THANK YOU for your hard work, and for having
known how to deal with the different waves of uncertainty we
have faced and for doing what you do best: applying the meth-
ods and values that make up our business plan in your work
each day, giving your very best to offer an excellent service.
Once again our teams have more than demonstrated their abil-
ity, their commitment and the determination that drives them.
Thank you.
Despite what has happened, FCC kept going throughout this
difficult year and with an exceptional effort we have continued to
push forward our Group’s activity and growth, as shown by the
results which exceeded all forecasts. The details can be found
in this annual report, which are an accurate reflection of the
company’s extraordinary response to the pandemic´s negative
circumstances.
Indeed in 2020 the company made a gross operating profit of
1.047 million euros, 2.1% higher than the previous year and an
attributable net profit of 262.2 million euros, practically the same
as 2019.
This is a great performance that was mainly supported by sus-
tained income from Environment and Water activities. In light of
their being essential services they suffered less impact than oth-
er activities with restrictions in place to combat the health crisis.
The higher contribution of income in Concessions has also
helped, with an increase of 73.7 million euros, and in Construc-
tion, which has managed to maintain its activity levels, notably
with an increase of 6% in Spain and 9.4% in other European
countries.
All this activity has been accompanied by a very significant ef-
fort to reduce the Group’s financial debt what has amounted to
21.8% compared to 2019, mainly owing to actions carried out
in Environment, Cement and Concessions.
Finally, I would like to highlight the 17.9% increase in equity, as
a result of the stability in net income as well as the high percent-
age of shareholders who opted to reinvest the annual flexible
dividend in new company shares, demonstrating their complete
confidence in our Group.
Without doubt another difficult year lies ahead. However, ac-
cording to the latest 2021 IMF and OECD macroeconomic fore-
casts, a gradual recovery of the global economy is expected,
which should be positive for us.
Therefore, despite a high degree of continued uncertainty, we
fully trust our business model, strategy and team leadership to
allow us to continue growing and creating value for our share-
holders.
I end this letter by thanking our shareholders for their support
and our board of directors, as well as the undisputed leadership
of Carlos Slim and Grupo Carso, whose support and trust of
the company’s management committee has once again been
decisive in successfully managing this difficult year.
Esther A. Koplowitz
Chairwoman of the FCC Group
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5
Thank-you
to all our professionals
Pablo Colio Abril
CEO of the FCC Group
Letter from the CEO
Dear shareholders,
I would like to begin by thanking and recognising our almost
60,000 professionals, particularly our front-line workers provid-
ing essential services, a job that they have performed extraordi-
narily well in this difficult year framed by the pandemic. We have
ensured the provision of our excellent services, with perhaps,
the most important aim in our recent history: guaranteeing the
health and well-being of citizens in a health and socio-economic
environment that demanded teamwork and solutions all work-
ing towards a common goal. Services such as the collection
and treatment of waste and street cleaning, managing the end-
to-end water cycle or the management and maintenance of
transport infrastructures all acquired vital importance as they
are in the first line of defence against the pandemic.
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FCC_Annual Report_2020 | Letter from the CEO | Page 2 of 4
Together we have again shown that we can successfully face
any global challenge, offering our human capital and our expe-
rience to the needs of the cities of which we are part. This has
only been possible with our dedicated teams, who have always
distinguished themselves with their commitment and high lev-
el of professionalism. Throughout this year, we maintained and
reinforced essential citizen services in the communities in which
we operate at a time that has been critical for human welfare
and for the viability of the cities themselves.
For all this, to all of you, my sincere thanks.
We also have a duty to the society of which we are part. The
current social and health crisis in which we find ourselves has
brought to light the vulnerability of the market, companies, in-
stitutions and, above all, of the disadvantaged. With the aim of
making its greatest possible contribution, our Group has active-
ly collaborated on numerous initiatives in this very difficult year
towards the social reconstruction of the country, while trying to
alleviate the terrible effects of the pandemic as much as possi-
ble. These initiatives have been and are an exercise of solidarity
and responsibility by the company and our professionals with
society, of which FCC wants to be an essential part and at the
forefront.
It should also be emphasised that it has been a priority to incor-
porate the best practices into our services to ensure the health
and safety of our teams, which are fundamental pillars of our
business culture. In addition, our Group has fully committed it-
self and offered its support to its customers, helping them man-
age one of the most complex situations that all citizens have
faced.
The pandemic has coincided with our company’s 120th an-
niversary, again demonstrating our capacity for resilience and
adaptation to all contingencies, thanks to the human and tech-
nological experience we have accumulated over more than a
century. We have once again proven that we are capable of
recovering from the greatest adversities and making every diffi-
culty an opportunity; working together and serving society. This
has been part of FCC’s DNA since 1900.
Solid foundations on which to build
the future
The various measures carried out at operational, structural and
financial levels driven by the FCC’s new shareholding struc-
ture since 2015 – with the Carso Group as its reference – have
provided the Group with a competent resiliency that has been
demonstrated in this tough pandemic year.
During these years, I have to emphasise that it has been possi-
ble to recover FCC’s position as a Group specialised in environ-
mental services management in the operational area; managing
the end-to-end water management cycle and the development
and management of infrastructure. In addition, it has been pos-
sible to improve risk management systems; increase ethical
commitment; encourage synergies between different business
areas and promote corporate brand equity with the aim of in-
creasing profitability on operations and customer satisfaction.
In the structural area, the Group has reinforced its profitability
and operating cash flow by implementing strict expense con-
tainment and reducing structural and corporate costs to be
more agile and competitive in the markets in which the FCC
Group operates.
Finally, I would like to comment that in the financial area, the
Carso Group leadership proved to be essential in carrying out
a combined consolidation process of the capital structure,
through two capital increases: one in December 2014 and the
other in March 2016. These two capital increases totalling 1.709
The measures carried out
at operational, structural and
financial levels driven by the
FCC’s new shareholding structure
since 2015 – with the Carso
Group as its reference – have
provided the Group with a
competent resiliency that has
been demonstrated in this tough
pandemic
billion euros, served as a base for a thorough restructuring and
subsequent reduction of the company’s debt.
Thanks to these actions, FCC has a solid structure, so we can
say that our Group is prepared to manage the challenges and
difficulties that the future may bring with guarantees of success.
Our balanced and diversified business model, supported by a
committed and consolidated shareholder support, has placed
us on the path towards profitable and sustainable growth and
has allowed us to fulfil our commitment to offer citizens a global
service, on par with our cooperation in consolidating socially
integrated cities.
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FCC_Annual Report_2020 | Letter from the CEO | Page 3 of 4
Despite the impact of the pandemic, our turnover has remained
stable in 2020 and we therefore continue to be a world bench-
mark in environmental services, end-to-end water manage-
ment, construction and management of infrastructures, as well
as the production of associated materials.
The FCC Group is present in more than 30 countries, in whose
markets we have obtained 40.37% of the revenues in the last
year, guaranteeing the global expansion that we have seen as
group that is over one hundred years old, but also the confi-
dence in the possibilities of our domestic market.
Our journey as a Group places us in an ideal position for the
future: a strategy, a business model and a culture that reaffirm
our purpose and a broad journey in innovation to respond to
global challenges.
Sustainability placed at the centre
of our development
Providing added value has always been at the centre of our
business strategy. Sustainability has been a turning point for the
company to continue its socially responsible and sustainable
transition contribution to present and future cities.
From the outset, FCC has always been characterised by the
responsibility to improve people’s well-being and respond
successfully and effectively to urban challenges: demograph-
ic, economic, environmental and social changes, in search of
greater daily sustainability.
We are living at a time when it is crucial that we review the
growth models of the past to embark on a new phase of more
sustainable and inclusive prosperity, which allows us to act
with greater coordination and effectiveness to face these global
challenges.
Our journey as a
Group places us in an ideal
position for the future
We have a decade ahead of us for the 2030 Agenda to materi-
alise by achieving the Sustainable Development Goals (SDGs),
which guide the efforts of public and private sectors to respond
to the main global challenges. We ensure that, as a citizen
services benchmark company, we will continue to maintain
and consolidate the sustainable development of the societies
in which we operate, promoting the contribution to the SDGs
through our strategy and responsible management. To this end,
we have renewed our commitment to the United Nations Global
Compact and its ten principles, an initiative of which we have
been a part of for more than 10 years.
I would like to remind you that this year we are celebrating the
15th anniversary of the FCC Group’s first social responsibility
report, demonstrating our Group’s commitment to transparency
and communicating our performance in social, environmental
and good governance matters. So as to not miss the date, in
2020 the Board of Directors prepared and approved our Sus-
tainability Report, corresponding to 2020 financial year, detail-
ing the company’s social, environmental and good governance
performance. This report will allow us to understand how we
integrate care for the environment, respect for people and im-
peccable behaviours into our business model, with the latter
through our Compliance Model, the apex of which is our Code
of Ethics and Conduct that was updated in 2019 by the FCC
Group’s Board of Directors.
Gross operating profit increases 2.1%
As mentioned previously, in a year as complicated as the one
just passed, the Group has demonstrated its resilience and
made a profit that exceeded the most pessimistic forecasts on
the impact of the pandemic, showing positive results in key in-
dicators.
In 2020, the company made a gross operating profit of 1.047
billion euros, 2.1% higher than the previous year.
Net attributable profit reached 262.2 million euros, practically
stable but with a slight contraction of 1.7% compared to 2019.
Net turnover in 2020 was 6.158 billion euros, 1.9% lower. This
exceptional performance, given the circumstances of 2020, was
mainly backed by sustained income from Environment and Wa-
ter activities, thanks to their nature as essential services, which
saw a somewhat lower impact than that suffered by other activ-
ities due to restrictions since March 2020 to combat the health
crisis. Also noteworthy is the higher contribution of income in
Concessions, which meant a 73.7 million euro increase in in-
come. In Construction, activity levels were maintained in practi-
cally all geographies where the company operates, despite the
extraordinary difficulties experienced in many of them as a result
of the health crisis. Geographically, despite the situation, the 6%
increase in Spain and 9.4% in other European countries stand
out. These geographies contribute approximately 72.6% of the
Group’s turnover.
On the other hand, it is worth highlighting the reduction in the
Group’s financial debt of 21.8% compared to 2019, mainly due
to actions carried out in the Environment, Cement and Conces-
sions areas. Finally, equity increased by 17.9%, as a result of the
stability in net income and the high percentage of shareholders
who opted to reinvest the annual flexible dividend in new shares
of the entity.
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Throughout the year, each FCC business area has starred in
key events.
Noteworthy, in the Environment area is the agreement reached
in 2020 with an investment group for the purchase of 49% of
the capital – for 198 million pounds sterling – in the subsidi-
ary Green Recovery Projects Limited, which owns five energy
recovery plants in the United Kingdom. On the other hand, it
is worth mentioning the growth in the United States as it was
the first year of activity for the solid waste collection service in
Volusia (Florida) and Omaha (Nebraska); and highlights, in turn,
the award obtained last October as the best valued company
in terms of technical criteria for the Barcelona cleaning and col-
lection contract.
The Water area has consolidated its leadership in Spain, with
several end-to-end water management cycle contracts re-
newed in 2020, among which the contract in Vigo stands out
as this received a five-year extension worth about 260 million
euros. On the other hand, the renewals obtained in 2020 having
a loyalty rate of close to 100% is also of note. The business’s
stability ensured the ratings agency Fitch to grant a positive in
its last credit rating review.
The Construction area was awarded the contract to design
and construct a new hospital in Jersey. The value of the con-
tract is 26.5 million euros in the design phase and 550 million
euros in its execution. On the other hand, the 239 million euro
award for the E6 motorway in Norway and the construction and
maintenance project of a section of the Mayan Train, in Mexico
for close to 800 million euros are particularly relevant. In Con-
cessions, I would like to highlight the award – with other part-
ners – for the extension of the A465 motorway in Wales (United
Kingdom), a project that will improve the connectivity and de-
velopment of the region and that has a planned investment of
more than 600 million euros, an infrastructure that in turn will be
built by the Construction area.
In the Cement area, the activity accounted for approximately
81% of the Group’s total revenues in 2020, with 38% coming
from international markets, mainly Tunisia and the United King-
dom. It is worth highlighting the 58.9 million euro contribution
from the sale of CO2 rights, compared to 5.8 million euros in the
previous year, which allowed – together with a notable decrease
in energy costs – a sizeable increase of 61.9% in EBITDA for
the period.
8
We face the upcoming
years with great optimism,
confident in our solid
experience, our culture that
is oriented towards results
and austerity and our
unbeatable human capital
Finally, be certain that we will continue working every day to of-
fer global, innovative and social impact solutions that allow the
efficient management of resources and improvement of infra-
structure, contributing to increasing the quality of life of citizens,
and reinforcing the sustainable progress of society.
I am in no doubt that our culture of constant innovation and our
commitment to integrity and rigour with social well-being will
allow us to consolidate ourselves at the forefront of developing
the communities of tomorrow and continue to be an interna-
tional benchmark group in the provision of citizen services.
We face the upcoming years with great optimism, confident in
our solid experience, our culture that is oriented towards results
and austerity and our unbeatable human capital, all with the
desire to build a business future based on the amazing socially
responsible record we have and that, with total security, we will
overcome this hard time we have had to live through.
I am convinced that, with our work and our strength as a Group,
we will continue to build the future of FCC together, day after
day.
Pablo Colio Abril
CEO of the FCC Group
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9
Corporate
Governance
and ethics
2
Good Governance _ 10
The FCC Group’s due diligence _ 16
The FCC Group’s Risk Management Model _ 20
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FCC_Annual Report_2020 | Corporate governance and ethics | Good Governance | Page 1 of 6
Good Governance
In its commitment to Good Governance, the FCC Group aligns
its Corporate Governance guidelines with the recommendations
of the Code of Good Governance for listed companies from the
Spanish National Securities Market Commission (CNMV) that
apply to it, and particularly with those recommendations that in-
clude Corporate Social Responsibility amongst the competen-
cies of the Board of Directors. Aware of the enormous roll that
corporate governance plays in the organisation’s performance,
the FCC Group complies, in whole or in part, with 86.44% of the
recommendations that applied to it in 2020.
In addition, to provide a greater definition of the company’s Cor-
porate Governance practices, the FCC Group prepares an “An-
nual Corporate Governance Report” and the “Annual Remuner-
ation Report”, following the guidelines of CNMV report. Both
reports are available on the FCC Group’s corporate website.
Additionally, the FCC Group – in line with its commitment to
continuous improvement and to be at the forefront in ethics and
good governance matters – pays particular attention to interna-
tional good practices such as those issued by the International
Corporate Governance Network (ICGN) and other prescriber
organisations in Corporate Governance.
FCC complies with 86.44%
of the recommendations of the
Code of Good Governance for
companies listed with the CNMV
In a formal manner, through its Articles of Association and the
Board of Directors Regulations, the Group defines the responsi-
bilities of the governing body.
FCC’S ARTICLES OF
ASSOCIATION
BOARD OF DIRECTORS
REGULATIONS
They formally include:
The responsibilities of the company’s governing body.
The identification of any kind of risk that may affect
the business.
Supervision of proper operational functioning.
Decision making which ensures the interests of the
company are protected in the long term.
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The Group’s Governing Bodies
The FCC Group’s Governance is based on five essential bodies
that allow the company to work with the greatest efficiency, per-
forming each of the functions and powers assigned to it.
In this regard, the General Shareholders’ Meeting is the com-
pany’s highest decision-making body, establishing its compe-
tencies in the Regulations of the FCC General Shareholders’
Meeting.
For matters not attributed to the General Shareholders’ Meet-
ing, the Board of Directors has the highest powers and faculties
to manage, direct, administer and represent the company. This,
in turn, has set up three committees for more effective manage-
ment and supervision: the Executive Committee, the Audit and
Control Committee and the Appointments and Remunerations
Committee.
General Shareholders' Meeting
It is governed by the provisions of Law, the Company's
Articles of Association, and the Regulations of the
General Meeting. It guarantees equality amongst all
shareholders in terms of information, participation and
the right to vote in the General Meeting.
Board of Directors
Charged with managing and representing the FCC Group.
It is the body responsible for supervising and controlling
the company’s management, entrusted to the CEO and
Senior Management.
Executive Committee
Audit and Control Committee
A permanent delegation body appointed
by the Board of Directors, which in turn
defines the powers attributable to it, as
well as the Directors which must be part
of it. It is responsible for making
decisions in relation to the investments
of the FCC Group, access to credit,
loans, guarantees or guarantee lines, or
other instruments of a financial nature.
Supports the Board, reviewing the
preparation of financial and non-financial
information, internal control and the
independence of the external auditor.
The members must have technical
knowledge of the Group’s activity
sectors. Additionally, at least one of the
members must have knowledge of
accounting and/or auditing.
Appointments and Remunerations
Committee
It is the body charged with: information,
advice and proposal regarding the
appointment, re-election, ratification and
removal of directors, remuneration of
directors and senior executives of the FCC
Group, as well as the control of possible
conflicts of interest and related transactions,
without prejudice to other functions,
whatever they may be, attributed by Law, the
company's Articles of Association or the
Board of Directors Regulations.
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12
Executive Committee
Audit Committee
Appointments and
Remunerations Committee
Composition of
the Board of
Directors and
its Committees
C: Committee chair
(1) Representing Dominum Desga, S.A.
(2) Representing Samede Inversiones 2010, S.L.U.
(3) Representing EAC Inversiones Corporativas, S.L.
(4) Representing Dominum Dirección y Gestión, S.A.
(5) Representing Inmobiliaria AEG, S.A. de CV.
Esther Alcocer Koplowitz(1)
Chairwoman (Proprietary)
Esther Koplowitz Romero de Juseu(2)
Deputy Chairwoman (Proprietary)
Pablo Colio Abril
CEO
Alicia Alcocer Koplowitz(3)
Proprietary
Carmen Alcocer Koplowitz(4)
Proprietary
Gerardo Kuri Kaufmann
Executive
Álvaro Vázquez de Lapuerta
Independent
Carlos Slim Helú(5)
Proprietary
Alejandro Aboumrad González
Proprietary
P
Alfonso Salem Slim
Proprietary
Juan Rodríguez Torres
Proprietary
Antonio Gómez García
Proprietary
Manuel Gil Madrigal
Independent
Henri Proglio
Independent
P
P
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Diversity on FCC Group’s
Board of Directors
In addition to socially responsible inclusion, diversity is consid-
ered an essential principle for all FCC Group employees, includ-
ing the governing bodies. For this reason, the Appointments
and Remunerations Committee is tasked with ensuring that
selection processes favour diversity of gender, experience and
knowledge, and that they do not have any implicit biases that
may result in discrimination.
On the Board of Directors, with regard to other diversity indica-
tors in FCC’s governing bodies, 50% of the members are Span-
ish, the other 50% are other nationalities (Mexican and French).
The composition of the Board is shown graphically below:
14 directors
71%
men
29%
women
The percentage of female
directors on the FCC Board
of Directors, at 31 December
2020, was 28.57%
FCC's Board of Directors
Nationalities of the Board of Directors
64% Proprietary
22% Independent
14% Executive
50% Spanish
50% Foreign
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14
Operation of the
Board and its Committees
In 2020, the Board of Directors met a total of nine times, with
an average attendance of 90.48%, complying therefore with the
requirements of Article 34.1 of the Board of Directors Regula-
tions and Article 31.2 of the Articles of Association. They stipu-
late that the Board of Directors will meet as often as necessary
to effectively carry out its functions, with a minimum of at least
once each quarter.
Additionally, each of the Board’s committees also held a high
number of meetings to ensure the Group’s proper management.
Conversely, pursuant to article 34.4 of the Board of Directors
Regulations, the necessary information is made available to the
directors so that they can form their opinion and cast their vote
in relation to the matters submitted for consideration in order to
improve the efficiency of the meetings.
During 2020, the
Board met nine times,
with an average attendance
of 90.48%
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15
Remunerations
policy
Pursuant to the Company Articles of Association, the directors’
remuneration system must be aimed towards the company’s
long-term profitability and sustainability, incorporating the nec-
essary precautions to avoid excessive risk taking and rewarding
unfavourable results.
The directors’ remuneration must therefore be in line with the
importance of the company, the economic situation and the
market standards of comparable companies.
The General Shareholders’ Meeting is responsible for agreeing
said remuneration considering the roles and responsibilities of
each member. Other than fixed remuneration, there are allow-
ances for personal attendance at Board meetings and inter-
nal committees that are convened during the year, as well as
another variable amount for executive directors, based on the
meeting of corporate targets.
More information on FCC’s Remunerations Policy, as well as
the remuneration accrued by each director, is available in the
Annual Remunerations Policy, available on the FCC Group’s
corporate website.
Principles and criteria for setting remuneration
Relationship with the
market standards and
the economic position
of the company
Motivation and retention
of the most qualified
professionals
Remuneration linked
to attendance at
meetings
Promotion of
long-term profitability
and sustainability
Transparency
Link with professional
performance and
qualifications
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FCC_Annual Report_2020 | Corporate governance and ethics | The FCC Group’s due diligence | Page 1 of 4
The FCC Group’s due diligence
Compliance
Model, Code
of Ethics and
Conduct, policies
and procedures
In line with the principles established in its Code of Ethics and
Conduct, the FCC Group has a Compliance Model – reinforced
by an i nternal control system – that guarantees its compliance
and not incurring any criminal offences.
The system has a set of regulations, with policies and proce-
dures; of a Crime Prevention Manual; and a map of crimes,
risks and controls, designed to prevent and detect risks and
minimise their impacts.
COMPLIANCE REGULATIONS
OF THE FCC GROUP
Code of Ethics and Conduct
Crime Prevention Manual
Anti-corruption Model
Partners Relationship Policy
Investigation and Response Procedure
Ethics Channel Procedure
Human Resources Policy
Regulation of the Compliance Committee
Agents Policy
Gifts Policy
Tenders Policy
Protocol to Prevent and Eradicate
Harassment
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For the Model to operate correctly, the Group’s Criminal Pre-
vention body – the Compliance Committee – was set up, with
self-governing powers on initiative and control, made up of: the
corporate Compliance Officer (chair), General Legal Counsel
and Human Resources management.
In 2020, the Group’s Compliance Committee met eighteen
times (eleven ordinary and seven extraordinary meetings).
The Group’s Compliance Model also has a series of instruments
to supervise and continuously improve its design and effective-
ness. Among others, and in accordance with the Prevention
Manual, those responsible for controls and processes review
and certify around 3,000 controls in the Compliance Tool every
six months.
In 2020, the most significant due diligence actions on the
Group’s Compliance Model were:
Throughout 2020,
two certifications of
the Compliance Model were
performed, reviewing around
3,000 controls
17
MOST SIGNIFICANT ACTIONS
The review and update of the criminal risk map,
focused on risk assessment after the impact of
COVID-19.
The approval of new regulatory developments, such
as sponsorship and donation procedures, and
update of the Protocol to Prevent and Eradicate
Harassment.
Reviewing the design of controls related to
international anti-corruption.
Rolling out the International Compliance Model at
Cementos Portland Valderrivas, and progressing
its implementation in the international subsidiaries
of the Environmental Services and Aqualia.
Internal Audit’s supervision of the Compliance
Model.
Carrying out two self-assessments and
certifications on the compliance tool.
Designing and launching new online training
related to the Code of Ethics and Conduct,
and on Crime Prevention.
Defining the supplier approval procedure in terms
of Compliance – jointly with the FCC Group’s
Purchasing Department.
Conducting 195 due diligence evaluations
on third parties.
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18
Training on and disseminating
the Compliance Model
Continuing with the commitment to disseminate and provide
training on the Compliance Model, both in Spain and interna-
tionally, FCC has implemented various communications, infor-
mation and training programmes extended to the entire work-
force.
In 2020, in line with the aim of expanding training’s international
scope, the online course on the Code of Ethics and Conduct
was translated and adapted into six new languages.
Since the launch of this training in 2019, 7,998 employees have
completed done it, with a completion rate of 88%. In addition,
1,229 new employees have done so successfully as part of the
company’s Welcome pack.
In 2020, five online training courses on Compliance were also
given through Campus FCC, the Group’s training platform, with
18,321 participants and a total of 11,633 hours of training.
The set of regulations on the Compliance Model and their as-
sociated policies are available on the corporate intranet and on
the Group’s website, except for confidential procedures, which
are only available on the corporate intranet.
Since its launch, 7,998
employees and 1,229 new
employees have taken the
online course on the Code
of Ethics and Conduct
In 2020, five online
training courses on Compliance
were given, with
18,321 participants and
a total of 11,633 hours
of training
Ethics Channel
The FCC Group has a complaints channel that allows workers
and other stakeholders to report situations that may lead to po-
tential legal breaches of the Code of Ethics and Conduct and
its set of regulations.
A total of 117 notifications were received via the FCC Group’s
Ethical Channel in 2020, 34 more than in 2019, mostly of a
labour nature.
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Respect for
Human Rights in the FCC Group
Accountability and
tax transparency
Within its sphere of influence and pursuant to the legal frame-
work of each country, the FCC Group promotes, ensures and
protects respect for human rights and public freedoms among
its staff wherever it operates.
In 2020, with the aim of strengthening its commitment to the
principles set out in the Code of Ethics and Conduct and its
Compliance Model, the Group’s Board of Directors approved an
update to the Protocol to Prevent and Eradicate Harassment.
FCC has its own Human Rights Policy – approved by the Board
of Directors – that includes the company’s express commitment
to guarantee freedom of association and collective bargaining;
decent and paid employment; the rights of ethnic minorities and
indigenous peoples; health and safety; data privacy; and re-
spect for communities, and also demonstrating the complete
rejection of child labour, forced labour and work carried out in
harsh, extreme, subhuman or degrading conditions.
The Protocol seeks to promote a fair and diverse working envi-
ronment. Among other aspects, some measures that stand out
are: not tolerating any conduct that involves discrimination; pro-
moting a culture of respect and awareness campaigns against
harassment; offering specific training in this regard; ensuring
complaint mechanisms are streamlined; adopting disciplinary
measures and guaranteeing the labour and social protection
rights of victims.
To reinforce its commitment and ability to act, the company ad-
heres to the main international frameworks, such as the United
Nations Global Compact; the Universal Declaration of Human
Rights Framework; the Declaration on the Rights of the Child;
the different conventions of the International Labour Organiza-
tion (ILO); and other agreements of Building and Wood Work-
ers’ International (BWINT).
In 2020, in addition to Human Rights, the FCC Group’s End-to-
End Water Management Company – Aqualia– jointly promoted
a Declaration with other organisations representing the entire
water supply and sanitation value chain aimed at European Un-
ion institutions to consider water and sanitation as a Human
Right within the European legislative system, thus guaranteeing
these services for all citizens.
In matters of tax, the company adheres to the Ministry of Fi-
nance’s Code of Good Tax Practices, which establishes the
principles of transparency and mutual trust, as well as good
faith and loyalty between parties, guaranteeing a more effective
relationship without legal uncertainty.
Additionally, and to minimise the risks of tax breaches, FCC
has its own Tax Code of Conduct, which is mandatory for all
persons linked to any Group company. In line with the values
established in the Code of Ethics and Conduct, this document
sets out the FCC Group’s basic principles in tax matters, in-
cluding compliance with applicable tax regulations, respect for
the “Tax Area Regulatory Framework Control”, and ensures that
senior management review relevant decisions in tax matters
and promote transparency.
The Group’s Sustainability Report, attached to this document,
details the profits after taxes and the taxes on profits paid in
each country where FCC is present in 2020, together with the
public subsidies received.
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FCC_Annual Report_2020 | Corporate governance and ethics | The FCC Group’s Risk Management Model | Page 1 of 4
The FCC Group’s Risk Management Model
The FCC Group operates in a wide range of countries and in
different sectors, so its activities are subject to diverse environ-
mental, socio-economic and regulatory frameworks. The FCC
Group is therefore exposed to the risks inherent to its activities
and to risks related to environmental, economic, social and ge-
opolitical developments at local and global levels.
To generate sustained value in this environment, the FCC Group
has a Risk Management Model designed to analysis the internal
and external context and to identify and assess the potential
risks that could affect the Group’s various units, as well as es-
tablishing mechanisms integrated into the organisation’s pro-
cesses that allow the risks to be managed within the accepted
levels, providing the Board of Directors and Senior Manage-
ment with a reasonable assurance regarding achievement of
the main defined objectives.
Activities included in the FCC Group’s Risk Management Model
are the assessment of risks, in terms of impact and probability
of occurrence, giving rise to risk maps, and subsequently es-
tablishing activities to anticipate, prevent and control the effect
of identified risks to mitigate them. The Model also includes the
establishment of reporting flows and communications mecha-
nisms at different levels, which allow both decision-making and
their review and continuous improvement.
The analysis of the environmental, economic, social and institutional
context, and the alignment of the FCC Group culture with the strategy
and accepted risk as key for sustainable growth
CULTURE
VALUES
Environmental
Social and institutional
context
Regulatory framework
Economic
outlook
GROWTH
PROFITABILITY
Strategic
objectives
Definition
of the
strategy
Monitoring
of risks
Accepted
risk
Identification
of risks
Mitigation
of risks
Map of risks ordered
in terms of criticality
Controls and
responsibilities
Action plans
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21
Organisational
structure for risk
management
The risk management process works across the entire organi-
sation, establishing different coordinated levels to maximise its
efficiency and enhance its effectiveness.
The Board of Directors is responsible for approving the FCC
Group’s risk control and management policy, identifying those
risks the company considers key and implementing and moni-
toring the appropriate internal control and information systems.
The Audit and Control Committee is responsible for supervising
and analysing the effectiveness of internal control and the risk
control and management policy.
Board of Directors
Audit and Control Committee
Senior Management
First Risk
Management level
Second Risk
Management level
Third Risk
Management level
Heads of operational
management and reporting of
risks from the operations, at both
a geographical and project level.
This level has support and control
teams – controlled by
Management – that are in charge
of overseeing the effective control
of risks and ensuring they are
managed according to the risk
appetite. Continuous
improvement is a significant point
in the Model at this level.
Corporate and transversal
functions responsible for risk
supervision, including the
Compliance role.
Risk Management is responsible
for coordinating, supervising and
monitoring the Model
Internal Auditor acts as last
control layer.
BUSINESS UNITS
CORPORATE
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Significant risk scenarios
22
STRATEGIC
Natural disasters, climate or global health crises.
Cuts in forecasts for investment and demand.
Political and socio-economic instability in countries and/or regions.
Loss of market share.
Regulatory changes.
Impairment of reputational image.
RESPONSE PLANS
Consolidation of the international position as a provider of services classified as essential:
waste management, water and infrastructure.
Retaining market share in mature markets, with stable demand and predictable cash flows.
FINANCIAL
Credit risk.
Liquidity risk.
Exchange rate fluctuation.
Interest rate fluctuation.
Limitations on access to financial markets.
Recoverability of deferred tax assets.
Impairment of goodwill.
RESPONSE PLANS
Continuously monitoring the credit quality of clients, liquidity lines and financing.
Strengthening the financial and equity structure to improve the balance between own and
Search for new public-private collaboration formulas to develop the end-to-end water
third-party funds.
cycle, environmental services and infrastructure.
Optimisation of floating-rate debt exposure and analysis of hedging instruments on interest
Internal strategy for adaptation to climate change in Horizon 2050.
rate fluctuations.
Integrating the businesses into the circular and low-carbon economy and alignment with
Control of asset risk management and updating and monitoring goodwill values and
the SDGs (Sustainable Development Goals).
deferred tax assets.
Investment in technology, innovation and process control.
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Significant risk scenarios (continued)
23
COMPLIANCE
OPERATIONAL
Potential breach of the Code of Ethics and Conduct.
Unilateral termination or modification of the contract,
RESPONSE PLANS
Regulatory breaches.
Contractual breaches.
RESPONSE PLANS
contractual controversies and litigation.
Rescheduling of projects.
Risks arising from relations with third parties.
Formal economic and technical, and contractual
management planning systems with clients and third
parties, applying an active negotiation policy.
Uncertainty in the evolution of raw material prices and
Training, coordination and development of the Group’s
supply chains.
human resources.
Structured and formalised Compliance Model.
Risks associated with digitisation.
Monitoring of key suppliers and periodic analysis of
Organisational structure of Compliance at different levels
Cyberattacks.
and for the different businesses, coordinated by the
Compliance Committee.
Training programmes on ethics in the Compliance and
Values schools of Campus FCC.
Regulated systems with detailed procedures.
Monitoring of contractual and regulatory requirements in
project management plans.
Risks for the safety and health of people.
Environmental damage.
Loss of human capital.
Labour conflicts.
deviations.
Quality management systems, environmental
management and occupational risk prevention in
accordance with international standards.
Operational unit and information security management
system also according to international standards.
Monitoring plans for specific project risks.
Appropriate insurance coverage.
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24
Strategy and
value creation
3
FCC Group’s mission, vision and values _ 25
Strengths of the business _ 28
CSR Policy. Social value creation _ 31
Response to future challenges _ 60
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25
FCC Group’s mission, vision and values
FCC’s vision defines the future sought by the company and
gives a purpose to its action. Therefore, all its components
share the same culture and are part of the same project: a sin-
gle FCC.
To achieve its vision, FCC develops and manages environmen-
tal services, end-to-end water cycle management and large in-
frastructure services while maintaining the highest standards of
operating excellence and applying the strictest ethical principles
set out in the FCC Group’s Code of Ethics and Conduct in all its
areas and activities.
For the company’s staff the Code of Ethics and Conduct rep-
resent the highest standards in the FCC’s Group’s range of
policies and procedures that allows a strengthened culture of
compliance that supports the creation of long-term value in its
project.
MISSION
What we do
Design, carry out and efficiently and
sustainably manage environmental services,
end-to-end water cycle management and the
construction of large infrastructure works to
improve the lives of citizens.
VISION
What we want to be
For the group to be an international leader in
Citizen Services, offering global and innovative
solutions for the efficient management of
resources and improvement of infrastructure,
contributing to improving the quality of life
of citizens, and the sustainable progress of
society.
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Beyond the leadership position in the different businesses – key
in the communities of the future and as a result of its technical
and professional capacities – FCC has established certain inal-
ienable conduct guidelines, which are essential for the Group to
operate successfully in a sustainable and responsible manner.
It’s about values.
These values are part of the new Code of Ethics and Conduct
of the FCC Group and are intended to transmit and instil the
principles in all company employees.
26
WE ARE more than 59,000
professionals operating
in more than 30 countries.
WE SHARE a common
challenge: improve the quality
of life of citizens and contribute
to sustainable progress.
WE FOLLOW the same path
guided by the principles of the
FCC’s New Code of Ethics
and Conduct.
5
Well-being and
development of
communities
We are aware of the value
our services bring to society
and we are committed to
protecting the environment
and the development
and well-being of
communities.
1
Honesty
and respect
We want to be recognised through
honest behaviour deserving of
the trust of collaborators, customers
and suppliers as reference partners
in the long term.
Our
values
2
Focused
on results
We pursue improvement
and goals to make the
FCC Group a leader
in profitability and
competitiveness.
4
Loyalty and
commitment
We favour diversity, promote
professional development and
recognise merit and creativity as
a stimulus to productivity and
progress.
3
Rigour and
professionalism
We show exemplary behaviour and
a vocation to the service,
developing our ability to seek
efficient and innovative
solutions.
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FCC Group’s
principles of action
27
Honesty and Respect
1
2
3
4
We respect legality and ethical values.
Zero tolerance towards bribery and corruption practices
We act against money laundering and the financing of terrorist activities.
We protect free competition and good market practices.
Rigour and Professionalism
5
6
7
8
9
We behave ethically on the stock market.
We avoid conflicts of interest.
Rigour in control, reliability and transparency.
We protect the reputation and image of the Group.
We use the company’s resources and assets efficiently and safely.
10 We monitor the ownership and confidentiality of data and information.
Loyalty and Commitment
11
12
Our customers are at the centre.
The health and safety of people are paramount.
13 We promote diversity and fair treatment.
14 We are committed to our environment.
15 We interact with the community transparently.
16 We extend the commitment to our partners in the business.
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28
FCC_Annual Report_2020 | Strategy and value creation | Strengths of the business | Page 1of 3
Strengths of the business
Experience
More than 120 years of experience
creating value for citizens
Care for the environment
Environmental Management Systems certified
according to UNE–EN ISO 14001 in all
business areas
Investment in the community
The FCC Group has allocated a total of
4 million euros to social action, non-profit
entities and foundations
Health and safety
Occupational Health and Safety Systems
certified according to ISO 45001 in all
business areas
Internationalisation
Present in more than 30 countries
Professionalism
More than 59,000 professionals
specialised in various areas
Ethics and integrity
Compliance Model
of the FCC Group
Quality
Quality Management Systems
certified according to UNE-EN ISO 9001
in all business areas
Corporate
Social Responsibility
CSR 2020 Master Plan
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Keys to a diversified business
29
Environment
•• Waste collection.
•• Street cleaning.
•• Urban solid waste treatment
and recycling.
•• Ground maintenance.
•• Maintenance of sewerage networks.
•• Industrial waste treatment and recycling.
•• Recovery of contaminated soils.
•• Facility Management.
End-to-end water
management cycle
•• Comprehensive management of public
services.
•• Operation, maintenance and technical
assistance services.
•• Design, construction and financing of
water infrastructure.
Infrastructure
Cement
•• Civil works.
•• Construction.
•• Industrial.
•• Concessions.
•• Infrastructure maintenance.
•• Prefabricated construction.
•• Brand image.
•• Cement.
•• Trading.
•• Other businesses (concrete, aggregates
and mortars).
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International footprint
30
14
23
24
25
26
27
28
29
30
31
32
33
Panama
Colombia
Ecuador
Peru
Chile
Algeria
Tunisia
Egypt
Saudi Arabia
United Arab Emirates
Qatar
1
2
3
4
5
6
7
8
9
10
11
Spain
Portugal
France
Germany
United Kingdom
Ireland
Italy
Austria
Belgium
Czech Republic
Poland
12
13
14
15
16
17
18
19
20
21
22
Slovakia
Hungary
Romania
Serbia
Bulgaria
The Netherlands
Norway
USA
Mexico
Dom. Republic
Nicaragua
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FCC_Annual Report_2020 | Strategy and value creation | CSR Policy. Social value creation | Page 1 of 29
CSR Policy. Social value creation
Sustainability
in FCC’s business
model
For the FCC Group, its own sustainability challenges contribute
to promoting solutions and detecting opportunities linked to its
own business model. To respond to the challenges, and identify
factors and trends that may lead to changes in the company’s
evolution, FCC relies for its sustainable performance with a solid
strategy, a consolidated structure, management tools and an
outstanding network of support and contact with stakeholders.
The FCC Group’s Code of Ethics and Conduct, approved in
2012 and revised in 2019, is the central element to responsi-
bly manage FCC’s activity. The commitments acquired and the
framework for action are included in the Corporate Social Re-
sponsibility Policy (hereinafter CSR Policy), approved in 2016
by the Group’s Board of Directors, and which is monitored by
the Executive Committee, in accordance with recommenda-
tions 53 and 54 of the Code of Good Governance from the
CNMV (National Securities Market Commission).
In 2020, the FCC Group’s commitment to sustainability in social,
environmental and good governance matters meant celebrating
a history of more than 120 years of activity and 15 years of
communicating and publishing, through the Social Respon-
sibility Reports, the business’s contribution to sustainable de-
velopment. Additionally this year, in a global context marked by
the health and socio-economic crisis from COVID-19, the FCC
Group has responded with experience, resilience and profes-
sionalism to the new challenges, never neglecting its commit-
ment to guarantee the well-being of people, respect for human
rights and caring for and preserving the environment.
The diversified business model that characterises the compa-
ny is backed by a committed and consolidated global service
to citizens. Our cooperation is fundamental in the development
and transformation of sustainable cities and communities. This
is why FCC is involved in responding successfully, effectively
– and from an integrity and business ethics standpoint – to ur-
ban challenges and daily sustainability. This contribution to
development is aimed at promoting sustainable urbanisation,
affected by demographic changes and the expansion of cities;
responsible economic development, taking care of consump-
tion and the production of natural resources; the fight against
climate change, with its own strategy and betting on energy effi-
ciency and emissions control; and progress in equality, inclusion
and social development.
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The CSR Policy establishes the company’s main strategic lines
for sustainable development, which are developed through its
Corporate Responsibility committees. To implement the Policy
effectively, FCC has a Group Corporate Responsibility Commit-
tee and other committees in the different businesses that favour
compliance and promote progress aligned with our own activ-
ities. All management and strategy revolves around the CSR
Master Plan, which concluded its fourth edition in 2020, to
make way for the next ESG 2025 Plan.
In addition to the Code of Ethics and Code Conduct, the CSR
Policy and the Master Plan, the company has other policies and
action plans with the aim of addressing the different challeng-
es of the Group in social, labour and environmental matters. In
this structure and model, we support each other to work on
the 2030 Agenda by achieving the Sustainable Development
Goals (SDGs). In 2020, we renewed our commitment to the
United Nations Global Compact for another year, to maintain
and consolidate the sustainable development of the societies in
which we operate.
32
Likewise, it is essential for the Group to know and respond to
environmental, social and good governance demands and ex-
pectations through communication and dialogue with stake-
holders. From these, and from the materiality study that iden-
tifies the most relevant and significant issues to the company,
the priorities and lines of action with the greatest impact on
each of the businesses are established.
The 2020 materiality study revealed certain relevant issues
that are cut across all businesses such as ethics, compliance
and good governance; safety, health and well-being, the circu-
lar economy and waste. In addition, some environmental issues
such as energy and climate change become more significant
this year.
FCC's stakeholders and tools for dialogue
Customers
Satisfaction surveys.
UNE ISO 9001 certified
business lines to
guarantee the best quality
products and services.
Different channels for
dialogue based on
business area.
Partners
Communication channels
are established with other
companies in the sector.
They highlight the figure
of the interlocutor, the
collaboration agreements,
alliances, sponsorship,
business forums,
symposia and
publications.
Suppliers
and contractors
Information and awareness
raising sessions.
Obligatory compliance
with FCC's Code of Ethics
and Conduct.
Commitment to comply
with the ten Principles of the
UN Global Compact.
Employees
FCC one – Corporate
intranet.
Periodic in-person
meetings on information
of interest.
Employee portal.
Somos FCC: quarterly
online magazine.
Communities
FCC's various business
areas promote dialogue
with local communities
to understand their
expectations and
maximise the social
benefits created by its
projects.
Shareholders
and investors
Public
administrations
and regulators
Shareholders' office.
Corporate website with
information relating to
economic performance.
Voluntary participation
in sectoral self-regulation
and legislation
development initiatives.
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FCC Group’s CSR Policy
The FCC Group’s Corporate Social Responsibility Policy in-
cludes commitments on business integrity and ethics, respect
for the environment and contributing value to society.
To develop, implement and comply with of the CSR Policy,
master plans with specific programmes and objectives are de-
veloped, with fulfilment and monitoring of them coordinated
through the Group’s Corporate Responsibility committees and
its areas.
Principles
of action
In accordance with the CSR Policy,
the principles of action that guide the
FCC Group’s behaviour are:
Quality and innovation: based on
continuous improvement to meet and
satisfy the needs of our customers and
stakeholders.
Integrity in actions: with behavioural
guidelines that respond to the highest level
of demand of our values.
Management efficiency: meeting objectives,
protecting and optimising resources.
Proximity and commitment: creating
value and smart, inclusive and respectful
environments.
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FCC_Annual Report_2020 | Strategy and value creation | CSR Policy. Social value creation | Page 4 of 29
CSR Master Plan 2020
In November 2017, the FCC Group’s Board of Directors ap-
proved its fourth CSR 2020 Master Plan, establishing its re-
sponse to social, economic and environmental challenges in
different action plans grouped into three strategic pillars: citizen
connection, smart services and exemplary behaviour.
In 2020, work was done on different programmes to round off
the 2020 CSR Master Plan, starting the path towards a new
ESG 2025 strategy, which will be designed in 2021.
Strategic pillars and action programmes of the 2020 Master Plan
Axis 1: FCC citizen connection
Its approach is based on considering citizens as the stars of
sustainable cities, with FCC responding to the challenges and
expectations of the communities, through different action plans,
promoting social dialogue with administrations and stakehold-
ers.
Several programmes and initiatives have been developed to
achieve this:
1 FCC + Acción: focusing efforts on developing social ac-
tion projects through solidarity initiatives and collabora-
tion agreements with non-profit organisations. FCC has
launched solidarity communications campaigns, commu-
nity outreach and volunteer programmes and projects to
guarantee access to water and humanitarian aid initiatives
for people at risk of social exclusion.
FCC has worked with its own means and resources to
achieve these programmes, but has also had its workforce
and been supported by foundations and non-profit organ-
isations such as UNHCR, Cáritas, Red Cross, La Caixa
Foundation and ONCE Foundation, among others.
2 FCC + Educa: a programme that takes advantage of the
technical knowledge and skills that FCC’s professionals
have to promote environmental training and awareness pro-
grammes in society.
The programme has been developed from online education-
al channels, taking part in training and information sessions
in schools and academic centres, the organisation of open
days for students in our work centres as well as participa-
tion in various dissemination and awareness activities.
During the term of the Plan, campaigns have been designed
to inform and offer training on the SDGs, the environmen-
tal and sustainable management of water and waste, the
responsible use and consumption of natural and energy
resources or on social issues, such as raising awareness
about the harsh living conditions of refugees.
FCC has also established numerous agreements with
Spanish universities and has participated in different work-
ing groups related to sustainability, innovation and the envi-
ronment.
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3 City 2025: this programme places FCC as a facilitator of
dialogue between various stakeholders to collaboratively
build sustainable, inclusive and humane cities, participating
in roundtables where the main urban challenges are ad-
dressed.
FCC has taken part in diverse forums, roundtables, plans
and studies, with public and private institutions and other
stakeholders, providing business experience and promoting
sustainable challenges for cities of the future: sustainability,
innovation, technology, social and economic recovery or the
humanisation of cities.
4 Measurement of socio-economic impact: the company
sees knowing and measuring the scope of the social, eco-
nomic and environmental impact of its activity as essential,
improving two-way communication with stakeholders and
adapting the message to each of them.
Related to this, FCC has been involved in studies to as-
sess sustainable development, established indicators in its
businesses based on internationally recognised criteria, and
has various tools to assess and measure risks, impacts and
material issues.
Axis 2: Smart services
FCC participates in designing sustainable cities of the future,
betting on the continuous improvement of its internal processes
and its services offering, developing innovative and sustainable
initiatives, projects and procedures.
The company works to create new skills to address the action
programmes that respond to the main environmental challeng-
es. These programmes are:
1 FCC plan for a Circular Economy the FCC Group – main-
ly through the end-to-end water management cycle and
waste processing – contributes to transitioning towards the
circular production model, developing improvement actions
and objectives to reduce, reuse and recover outflows.
2 Climate change and eco-efficiency: the FCC Group has
approved its own Climate Change Strategy 2050 that iden-
tifies the risks in dealing with this global challenge and de-
fined the climate objectives and measurement indicators to
allow adaptation to new business opportunities associated
with climate change and emissions reduction.
This programme promotes actions to implement process-
es with lower greenhouse gas emissions, promote energy
efficiency and renewable energies, prevent pollution and
protect the natural environment through responsible man-
agement and consumption of natural resources as well as
minimising the impact of emissions, discharges and waste
generated and managed by our activities.
Since the Master Plan was implemented, the various busi-
ness lines have led European projects transitioning towards
a circular production model, participating in workshops and
working groups, optimising the consumption of resources
through innovative processes or certifying their waste man-
agement systems.
Businesses are betting on the use of sustainable materi-
als, on electric mobility, on the control and management of
emissions of dusty materials in infrastructure activities, on
reducing emissions in their plants, with the installation of fil-
ters, as well as the implementation of measures to prevent
and contain spills and to minimise noise and light pollution.
Projects within the Group have mainly consisted of the re-
covering waste and turning it into resources that can be
used, as well as in the efficient use of natural and water re-
sources, promoting the reuse of waste and wastewater and
promoting the use of industrial by-products and alternative
fuels such as biomass.
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3 Response to water stress: the company is an agent that
contributes to reducing water stress, mainly through the effi-
cient provision of its end-to-end water management service,
as well as through defining a water footprint perimeter that
allows areas for improvement and savings to be identified.
4 Protecting biodiversity: to mitigate the impact of its activity
on the natural environment –and promote its conservation–
FCC publicly commits to ensuring the care for, preservation
and repair of biodiversity in areas where the company oper-
ates.
FCC has worked to ensure responsible and efficient water
management in each of its activities, taking into account the
infrastructure and availability of water in the areas where it
operates.
The businesses have launched initiatives to raise awareness
among employees on the sustainable, responsible and ra-
tional use and consumption of water; resource optimisation
and use programmes have been established, and the net-
works and phases that make up the end-to-end water cycle
have been improved to generate a greater amount of water
resources, better use and maximum guarantees for their
use and consumption.
In its commitment to biodiversity, the company has alliances
with nature protection groups to maintain and control of bi-
odiversity; it has developed projects to protect and recover
ecosystems; it has promoted the mapping of areas of in-
terest for biodiversity and protected areas; it has restored
various areas dealing with the morphological repair and
revegetation; and has transplanted plant species, trans-
ferred animal species or physical protected specimens.
5 FCC InnovaCSR: FCC develops innovative projects to
generate a competitive advantage, increase efficiency in
its processes and search for new solutions to face global
challenges, such as the fight against climate change or the
transition to an circular economy model, and that minimise
the impact of its activities on the environment.
FCC has R&D projects, betting on technological innovation,
smart management, eco-efficiency and automation of pro-
cesses, modernisation of operations and machinery, as well
as research and development of new products and more
eco-efficient materials to extend the useful life of infrastruc-
tures.
The company also uses integrated management and con-
trol tools and promotes knowledge management, partici-
pating in studies, roundtables and innovative projects.
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Axis 3: Exemplary behaviour
An axis for the ethical and integrity commitment with the highest
standards of behaviour throughout the value chain, with collab-
orators, stakeholders and the community, in which environmen-
tal, social and good governance commitments are included.
Based on the FCC Group’s Code of Ethics and Conduct and
the Compliance Model, various programmes have been devel-
oped that promote and strengthen the company’s principles
and values, as well as their compliance.
1 FCC culture: the company works to consolidate and pro-
mote a solid and transversal corporate culture, to turn em-
ployees into brand ambassadors, increase their sense of
belonging and promote a culture of respect and exemplary
performance.
To consolidate and guarantee this culture of ethics and in-
tegrity, the company has worked to provide an appropri-
ate and up-to-date regulatory framework, promoted by its
Compliance Committee, and has established the necessary
means, channels and tools for communication and connec-
tion with the workforce, in addition to a strong training pro-
gramme.
2 Responsible procurement: a programme to apply environ-
mental, social and good governance criteria in the supply
chain, with FCC’s firm commitment to introducing sustain-
ability in the processes of contracting goods and services,
and responsible purchasing.
In this sense, the 2020 update of the Purchasing Manual
and the drafting of procedures to manage the approval of
suppliers, which include financial and non-financial aspects,
as well as reformulating the ethical clauses for contracting,
have been key.
3 XHumanRights: respect for human rights in all the commu-
nities in which FCC operates requires a quality, respectful
and dignified work environment to be respected.
To promote, oversee, guarantee and protect the respect for
human rights, the company adheres to the main interna-
tional frameworks; it has established prevention and control
mechanisms, as well as reporting channels, and has im-
plemented internal and external dissemination, training and
awareness-raising actions. In 2019, the Group’s Board of
Directors approved FCC’s Human Rights Policy.
4 Talent2: competencies + leadership: professional devel-
opment at FCC, with a focus on talent management, and
increasing productivity and efficiency.
The Group has focused its efforts on developing skills that
allow improved performance at all levels of the organisation.
The commitment incorporates an ambitious educational
and training programme, adapted to the workforce’s needs,
and with advanced management tools.
FCC has also participated in a number of meetings, pro-
grammes and projects with institutions, entities and schools
to promote leadership, talent and professional develop-
ment.
5 Equality and diversity: a programme designed to increase
employment, promotion and remuneration opportunities –
in terms of equality and diversity – across all the Group’s
activities.
To advance and strengthen equality and diversity in the com-
pany, FCC has developed different plans and programmes
aimed at managing generational, gender and disability is-
sues, in numerous processes such as selection and hiring,
promotion, inclusion, accessibility and non-discrimination,
and with particular attention paid to the prevention of har-
assment and the fight against gender violence.
Specific training programmes and information and aware-
ness campaigns have been developed for this. Likewise,
alliances have been established with specialised entities to
promote and consolidate the company’s commitment to
equality and diversity.
6 Health and safety comes first: a programme that pro-
motes a preventative culture on occupational risks, health,
safety and well-being of the workforce, developing improve-
ment plans and consolidating itself as a safe and healthy
company.
The main lines of action relate to the FCC Group’s Health,
Safety and Well-being Policy and to the certification of
Health and Safety management systems. Specific health
and wellness programmes have been developed; inform-
ative and participatory channels, platforms and campaigns;
and collaborations with organisations, associations and en-
tities specialised in caring for and promoting occupational
health and safety.
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FCC’s contribution to the 2030 Agenda
FCC Group transversal SDG contribution
38
FCC Construcción contributes to the SDGs through the con-
struction of infrastructures for the sustainable development of
cities and communities, with energy efficient facilities, investing
in research and promoting the responsible management of re-
sources and waste and the reduction of emissions, therefore
impacting on SDGs: 6, 7, 11, 12 and 13.
Cementos Portland Valderrivas encourages digital transforma-
tion and the application of technologies that allow it to manu-
facture resilient and sustainable products; researches solutions
to reduce the consumption of water, raw materials and energy
in its facilities; promotes the efficient use of natural resources;
and works to reduce CO2 emissions that result from its activity,
contributing therefore to SDGs: 9, 11, 12 and 13.
Likewise, the FCC Group contributes indirectly to SDGs: 5, 15
and 16.
The Group’s Sustainability programmes and the 2020 CSR
Master Plan have been aligned with the 17 Sustainable Devel-
opment Goals (SDGs) since their approval by the UN in 2015.
The FCC Group’s track record in CSR matters highlights the link
between the company’s strategy and the SDGs, internalising
the commitments of the 2030 Agenda and integrating them into
its business model.
Through its various activities, the FCC Group contributes di-
rectly to different Sustainable Development Goals. Each of the
Group’s business lines defines the SDGs that they consider a
priority based on their direct contribution:
FCC’s Environmental Services activity is an area that contributes
to the employment for thousands of people and that promotes
the integration of people with disabilities into the workforce. It
is also committed to technological innovations to optimise the
management, recovery and use of waste, through initiatives for
a more efficient use of natural resources. This business impacts
on SDGs: 8, 9, 10 and 12.
Aqualia, for its part, has a particular responsibility with its con-
tribution on preventing infections and the spread of diseases in
water and sanitation management services; promotes access
and efficiency of water resources; applies technologies that im-
prove the efficiency and reliability of processes, promoting the
reuse of waste water and encourages collaboration with univer-
sities and research centres, thus impacting on SDGs: 3, 6, 9,
11, 12 and 17.
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The FCC Group’s people
The FCC Group considers its human team a strategic asset,
maintaining firm respect for human and labour rights recog-
nised in national and international legislation, diversity, equal
opportunities and non-discrimination. People management
also responds to the commitment to talent and professional
development, to social dialogue and communication, to digital
transformation and to a safe and healthy working environment.
People are a priority for FCC. For this reason, you_ was born in
2020, the FCC Group’s human resource management brand.
you_ summarises the essence of who we are, it is our new way of being, of doing, of evolving, of
innovating, of feeling and of projecting our future
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Human capital profile
FCC operates in over 30 countries around the world, which
means more than 120 nationalities among the nearly 60 thou-
sand professionals that make up the workforce.
FCC is a company that is noteworthy for its job stability, with
72% of its staff on permanent contracts. Even those with a tem-
porary contract enjoy great job stability, as they are assigned to
a contract, which has recognised mandatory subrogation by
collective agreement.
Distribution of the workforce by geographic area
Distribution of the workforce by sex
Distribution by sex and functional level
22.3%
77.7%
men
Directors
and Managers
82
437
Middle
Management
Technical staff
Administrative
staff
Various trades
551
3,067
1,660
3,898
1,975
1,004
9,078
Woman
Man
Distribution by sex and age range
Spain
75.44%
Other EU
10.58%
<35 years
35-54 years
>54 years
1,850
6,788
7,501
3,995
Woman
Man
15,570
Rest of the
world
10.76%
USA
and Canada
0.98%
Latin
America
2.24%
40
37,995
24,043
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Betting on talent
The FCC Group has opted for skills-based management, pro-
moting talent and the continuous development of profession-
als. The six cross-cutting skills that apply throughout the FCC
Group are:
Focused on
Results
Customer
orientation
Flexibility Working in
Communication Alignment
Teams
In 2020, 693 internal
mobility processes
were published
In 2020, FCC participated
in SONDERSLAND, the largest
meeting of young talent
in the world
The long-term success of the Group depends on our ability to
attract, motivate and develop people, and therefore, the follow-
ing commitments are assumed in this regard:
To prioritise internal promotion to fill vacancies. In 2020,
693 internal mobility processes were published.
To develop a welcome programme that favours rapid inte-
gration into the position and the company (on boarding on
Campus).
To promoting young people’s access to their first job
through programmes and other agreements.
In 2020, FCC participated in SONDERSLAND, the largest
meeting of young talent in the world.
In addition, one of the fundamental aspects of global talent
management is training and skilling the workforce. During 2020,
various schools have been developed within its own training
platform, Campus FCC, and more than 500,000 hours of train-
ing have been given to a large number of people from all func-
tional levels.
FCC Campus Schools
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Training hours by functional level and business area
Diversity and equality
42
Domestic
Environmental Services
Water Management
Construction
Cement
Central Services
National Subtotal
International
Environmental Services
Water Management
Construction
Cement
International Subtotal
Total
Directors and
Managers
Middle
Management
Technical
staff
Administrative
staff
Various trades
Total
5.686
4.890
1.944
339
2.077
14.936
946
2.246
3.192
18.128
32.828
17.035
11.588
833
1.284
63.568
11.216
2.949
524
14.689
33.064
9.750
36.004
1.943
6.439
87.200
12.399
16.734
1.521
646
31.301
78.257
118.501
18.364
132.096
222.038
6.386
4.016
674
2.516
9.890
26.522
2.264
53
47.951
80.074
6.054
12.369
31.955
170.826
368.485
7.788
3.237
741
212
11.978
43.933
106.222
1.639
937
36
138.571
23.856
6.147
1.418
108.833
169.992
279.659
538.477
FCC projects itself as a Group that is committed to equality and
diversity regarding its ethical principles and equal opportunities
values, working on three fundamental pillars:
Gender: for balance and professional development be-
tween genders, guaranteeing equal opportunities between
men and women and being committed to female leader-
ship.
People with disabilities: for labour integration and inclu-
sion of talent.
Generational: for cooperation between the different gener-
ations that work together at FCC, consolidating the incor-
poration of young talent.
Gender equality
The principle of equal opportunities for FCC is an inalienable
commitment to act, set out in its Code of Ethics and Conduct
and in each of its Company Equality Plans that cover almost
100% of the workforce in Spain, regardless of whether there is
a legal obligation or not. On the other hand, the Equality Plan in
force in the United Kingdom should be noted.
As a result of the FCC Group’s conviction to promoting women,
the percentage of women holding management positions at the
end of 2020 was 15.80% of all these types of positions.
The FCC Group develops and takes part in training programmes
aimed at creating an enriching work environment, free from dis-
crimination and which favours diversity, with two training and
development initiatives for women in leadership positions worth
highlighting: the Promociona Project and the EOI Development
Programme.
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FCC employs 1,440 people
in Spain who have a
recognised disability equal
to or greater than 33%
In terms of accessibility, FCC continues to design solutions that
favour a working environment that is free of obstacles and bar-
riers. During 2020, new accessibility improvements were made
to several of the company’s buildings, and the training action
“Universal accessibility and design for all” was given.
FCC employs 1,440 people in Spain who have a recognised
disability equal to or greater than 33%.
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In 2020, through Campus, a total of 6,013 workers in Spain
were trained on this matter.
The FCC Group is particularly committed to the fight against
gender violence in all its facets, based on two fundamental prin-
ciples of action: zero tolerance for gender violence and support
for the social and professional integration of victims. For this,
the company maintains close collaboration with the network of
“Enterprises for a Society Free of Gender Violence” in its work,
spreading and raising awareness, as well as supporting the job
placement of the women who are subject to this. In addition, it
partners with different foundations and entities to promote the
labour insertion and integration of victims, such as the Incorpo-
ra Foundation (La Caixa), the Adecco Foundation, the ONCE
Foundation and the Red Cross.
Disability
FCC continues to move forwards in its commitment to diversity
and labour inclusion, and promotes actions and projects that
encourage the employment of people with disabilities, contract-
ing products and services from special employment centres
(CEE), support for education and entrepreneurship in addition
to working towards universal accessibility in our buildings. In
terms of awareness, and to celebrate International Day of Peo-
ple with Disabilities, FCC launched the “Diversity and disability”
training action through one of the Campus schools.
The company actively collaborates in programmes and with or-
ganisations who are specialised in integrating people with dis-
abilities into the workforce, such as the INSERT Programme of
the ONCE Foundation, the Entrepreneurship Classroom of the
Prevent Foundation and the Incorpora Foundation of La Caixa,
among others. Specifically in 2020, and to deal with the new
social and economic challenges derived from COVID-19, FCC
is part of the Inclusive Reconstruction Pact, promoted by the
Inserta Forum, head of the ONCE Foundation, for a sustainable
and inclusive reconstruction “without leaving anyone behind”.
In 2020, through Campus, a total
of 6,013 workers in Spain were
trained on this matter
Against harassment and gender violence
To complement the complaints channel included in the Code
of Ethics and Code Conduct, the Group has the Protocol to
Prevent and Eradicate Harassment that was reviewed and ap-
proved in 2020 and that aims to prevent, resolve and punish
workplace, sexual or gender-based harassment, thus reflecting
the FCC Group’s commitment that it does not tolerate abuse of
authority or any type of harassment.
The protocol, which is mandatory, includes a declaration of
principles, the definition of harassment, the procedure for ac-
tion against harassment, the guarantee of confidentiality of the
process and the prohibition of retaliation.
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44
Social relationships
and work organisation
For FCC, social dialogue and discussion with teams, legal rep-
resentatives, trade unions and other social agents is essential
in promoting and facilitating agreements through negotiation
and other collective processes. FCC actively participates in the
collective bargaining of agreements or conventions, both at a
workplace level and sectoral, state, regional or provincial levels.
In Spain, 100% of FCC’s personnel are covered by the Collec-
tive Agreement, and more than 900 agreements are applied.
The organisation of work in the FCC Group’s various compa-
nies responds to the productive needs of each activity pursuant
to the standards and regulations applicable in each sector and
location.
At FCC, correct management of the organisation and working
time is deemed essential, with various initiatives considered to
achieve this, focusing on matters of conciliation, flexibility, joint
responsibility and digital disconnection, which are adapted to
the different realities and organisational or productive needs of
each centre, function, sector or activity.
In 2020, FCC launched the FCC 360 App, which allows com-
mon management processes (mainly payroll and personal
income tax certificates) to be optimised and keeps the entire
workforce informed and connected, allowing two-way, stream-
lined and efficient communications.
In 2020, and in line with the Technological Media Usage Policy,
training was given on the responsible use rules of technological
media (8,781 people) and technological tools (1,430 people),
focusing on digital disconnection.
In 2020, and in line with the
Technological Media Usage
Policy, FCC gave training
on the responsible use rules
of technological media
to 8,781 people and
technological tools to
1,430 people, focusing
on digital disconnection
In 2020, due to the pandemic caused by COVID-19, countless
organisational and production measures were designed and
implemented to safety, quickly and efficiently respond to the cri-
sis. Along with the goal of protecting the health and safety of its
workforce, the aim and the need to guarantee the continuity of
the business and social action were addressed, because they
provide a wide range of essential services for the community
at all times that are and were critical and essential during the
pandemic.
In Spain, 100% of FCC’s
personnel are covered by the
Collective Agreement, and more
than 900 agreements are applied
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Health and safety
FCC consolidates its preventive and health promotion culture,
based on its policy on occupational health, safety and well-be-
ing, whose strategic fundamentals of preventing occupational
risks, the participation of the workforce and stakeholders and
maintaining the most demanding certification standards. In
addition, the company remains committed to the health and
well-being of people and work spaces, which translates into
multiple initiatives, procedures and processes.
Thanks to FCC’s track record and experience in prioritising
health and safety across all its activities, and to the manage-
ment of the company’s Medical Services, FCC was able to
maintain services to citizens during the COVID-19 crisis with
total professionalism and guarantees.
Pursuant to international standards such as ISO 45001, 95% of
the workforce is covered by a certified health and safety man-
agement system.
Pursuant to international
standards such as ISO 45001,
95% of the workforce is
covered by a certified
health and safety
management system
FCC Live Healthy
The FCC Live Healthy Portal is the platform available to
the workforce that includes part of the preventive man-
agement in terms of health, safety and well-being as
well as information and healthy challenges.
FCC participated in the fourth Edition of the #eHealth-
Challenge2020, the largest Inter-company Online Ol-
ympiad in the world.
FCC participated in the
fourth Edition of the
#eHealthChallenge2020,
the largest Inter-company Online
Olympiad in the world
In 2020, many of the actions focused on supporting
and counteracting the effects of the pandemic, with
protocols, campaigns, workshops and specific activ-
ities, taking advantage of technological resources to
reach the workforce and continue to encourage their
participation in the healthy activity the company pro-
motes in areas such as food, physical activity, stress
management, emotional well-being, etc.
Evolution of the
accident and absenteeism rate
17.07 Frequency rate
Reduced by 28% compared to 2019
0.67 Severity rate
Reduced by 26% compared to 2019
0.44 Absenteeism rate
due to work accident
Reduced by 38% compared to 2019
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FCC’s respect for the environment
In its commitment and responsibility to the environment, the
FCC Grou promotes solutions to encourage urban resilience,
improve people’s quality of life and control the effects that the
activity may have on protecting and caring for the environment.
In 2020, FCC’s
environmentally certified
activity is 83%
Environmental policy and the
management of environmental aspects
The application of the precautionary principle in the FCC Group
materialises through the design and execution of its corporate
Environmental Risk Management Model, as well as the risk pre-
vention activities of each business.
Each business line monitors each processes, identifying, as-
sessing and managing the impacts produced, with the aim of
adopting the necessary practices to minimise them.
Throughout 2020, the FCC Group allocated a total of 43.7 mil-
lion euros to the prevention of environmental risks.
The FCC Group has an Environmental Policy applicable to all
companies, which is an integral part of the Environmental Man-
agement System. It establishes the principles on conserving
the environment, the use of natural resources and FCC’s main
commitments on this issue: protecting the environment, com-
plying with legal requirements and promoting the continuous
improvement of environmental performance, and can establish
additional commitments in each business.
FCC also includes the maintenance of a certified Environmental
Management System in accordance with international regula-
tions among its priority aims. All FCC Group businesses cur-
rently have Environmental Management Systems certified in
accordance with ISO 14001, guaranteeing the correct manage-
ment of significant environmental aspects, compliance with leg-
islation and the establishment of a commitment to continuous
improvement.
In 2020, FCC’s environmentally certified activity is 83%.
Throughout 2020, the
FCC Group allocated a total
of 43.7 million euros
to the prevention of
environmental risks
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FCC’s contribution to the circular economy
and reducing its wastes
The FCC Group promotes reducing its own waste, developing
its activity at the same time as promoting sustainability and be-
ing inspired by the principles of the circular economy – its max-
im being “to close the life cycle” of resources – ensuring their
subsequent incorporation into the productive process.
To formalise its commitment to the circular economy, as a
means of moving forwards with sustainable development, the
FCC Group adheres to the Pact for a Circular Economy, pro-
moted by the Government of Spain’s Ministry of Agriculture,
Fisheries and Food and Ministry of Economy, Industry and
Competitiveness. Through this initiative, all the signatories are
involved in the transition towards a new, more sustainable and
environmentally friendly economic model.
Through the development of master plans, or business sus-
tainability plans, the lines of work and the roadmap in waste
reduction, reuse and recovery have been formulated, leading to
a reduction in its environmental impact.
The FCC Group’s Environmental Services activity is clearly com-
mitted to a circular economy model through the conversion of
waste into resources, optimising its use.
Some of the business’s projects are:
Life Infusion Project
Life4Film Project
Plasmix Project
To convert leachate treatment
plants in factories to produce
and recover biomethane and
bio-based fertilizers.
Whose objective is to avoid
incineration and dumping of
plastic film waste.
Optimising the recovery of
plastics that may be used in
new products, including the
packaging of foodstuffs.
Aqualia incorporating the reuse and reinsertion of water in the
natural cycle into its services. The company leads the MIDES
project for the purification of wastewater and the supply of
drinking water from salt water, exploiting the synergies between
both processes.
With the coordination of Aqualia, and in collaboration with FCC’s
Environmental Services area, it participates in the Deep Purple
project, investigating innovative techniques in the management
of effluents for the recovery of by-products.
FCC Construcción focuses its contribution on its commitment
to innovation, promoting the use of new sustainable and re-
usable materials. The business develops a strategy within the
ReSOLVE framework to reuse inert materials from construction
sites, effluents and wastewater from processes or removed
topsoil. It also promotes digitisation to reduce the consumption
of resources by applying Building Information Modelling (BIM)
research.
The Cement business applies strategies to recovery energy and
waste materials in order to improve production efficiency and
the activity’s sustainability, for example substituting fossil fuels
for biomass energy.
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Other projects led by FCC are also committed to sustainable
mobility, such as UMBRELLA whose objective is to use organic
waste from water treatment to generate biogas; METHAGRO,
a prototype for obtaining biogas from organic waste from an
agri-food plant; and LIFE Landfill Biofuel, to obtain and produce
biomethane suitable for use in vehicles from the enrichment of
landfill biogas.
In 2020, nearly 2.3 million tonnes of waste was generated, a
43% decrease compared to the previous year.
The following shows the evolution of the total waste generated
by the FCC Group, as well as its distribution by business area.
In 2020, nearly
2.3 million tonnes of waste
was generated,
a 43% decrease compared
to the previous year
Evolution of total waste generated (T)
Distribution of total waste generated (%)
3,211,360
4,078,233
2,323,266
2018
2019
2020
51.1% Construction area
25.1% Environment
area
23.4% Aqualia
0.3% Cementos Portland
Valderrivas
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Aqualia leads the European
LIFE Phoenix project that
addresses the problem derived
from the reuse of wastewater,
as well as the threat posed
by emerging pollutants and
microplastics; and the
RUN4LIFE project, a wastewater
treatment system without a
connection to the sewerage
network, reusing 100% of
the so-called “grey water”.
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The responsible use of resources at FCC
The possible scenario of natural resources being depleted and
the environment being degraded prompts the FCC Group to
implement increasingly efficient management models, compat-
ible with sustainable development and that reflect its commit-
ment to preserving the environment.
Aqualia, based on its own activity, efficiently manages each
phase that makes up the end-to-end water cycle, to ensure
optimal use of resources in all of them (purification, desalination,
wastewater treatment and treatment plants of treated water for
reuse).
Responsible water management
The FCC Group works to ensure responsible and efficient water
management in each of its activities, taking into account the
infrastructure and availability of water in the area.
FCC’s Environmental Services area is committed to using tech-
nologies and equipment that allow for the rational use of this
resource, raising awareness among its operational personnel
and promoting the use of water from alternative sources. As
an example, the rainwater harvesting project in the Harborough
contract in the UK captured 11,000 litres of water in 2020.
FCC Construcción is committed to rational consumption and
raising awareness among its employees about the sustainable
use of water.
Cementos Portland Valderrivas works to optimise consumption
and improve water networks by reducing losses caused by old
or deteriorated pipelines.
The following figure shows the evolution in total water extraction
in the last three years for the FCC Group:
Water extraction (m3)
Distribution of water consumption (%)(1)
13,016,152.0
13,848,749.4
14,579,492.7
93.7% Environment
area
6.6% Construction area
5.0% Cementos Portland
Valderrivas
2018
2019
2020
(1) Aqualia's consumption is not considered, as the water monitored
is the water managed at its facilities. There are no systems to measure
consumption of rainwater or from desalination plants in the Infrastructure
area.
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Consumption of raw materials
The responsible management and optimisation of raw materials
is another key issue for the FCC Group in each of its business
units. Some of the initiatives implemented are:
Cementos Portland Valderrivas promoting the sustainability
of natural resources, encouraging the use of raw materials and
alternative fuels.
The FCC Group’s Environmental Services area reusing the
materials contained in the waste of the production cycle as sec-
ondary raw materials and using recycled materials to replace
raw materials in several of its facilities.
In addition to raw materials, other types of materials associ-
ated with activities are consumed, such as process materials,
lubricants and reagents, semi-finished products and packaging
materials.
Aqualia ensuring a minimum and necessary consumption of
the reagents used in the water management purification pro-
cess.
FCC Construcción reducing the consumption of land, using
the material extracted in the clearing of cuttings and embank-
ments as backfill in the work itself.
The consumption figures for 2020 are:
Materials used (T)
Raw materials (metals, minerals,
wood, etc.)
Process materials, lubricants
and reagents
Semi-manufactured products
Packing and packaging material
(paper, cardboard, plastics)
2020
41,396,446
96,849
3,726,276
8,671
TOTAL
45,228.,241
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FCC Construcción incorporates
Blockchain technology through
the BIMCheck project, a platform
to improve productivity through
the automation of quality control
and management processes,
improving the traceability of
materials and document control,
and is the first globally to combine
both applications in one project.
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Energy consumption
The FCC Group carries out various measures to increase ener-
gy efficiency, trying to use an increasing amount of energy from
alternative sources in its processes and remaining committed to
renewable energies.
FCC’s businesses work on improving energy efficiency in its fa-
cilities and processes through different projects, such as replac-
ing lights with LEDs, renewing equipment, training in efficient
driving, installing presence detectors, installing photovoltaic so-
lar energy at water consumption points, or replacing fossil fuels
with alternative fuels in high energy consumption processes,
such as the manufacture of cement.
The Group’s energy consumpti on in the last three years is
shown below, reflecting the company’s efforts in this area:
Direct and indirect consumption of energy(GJ)
Renewable energy consumption
43,456,989
48,431,483
43,103,946
10,786,857.0
13,107,941.6
11,606,735.8
2018
2019
2020
2018
2019
2020
The FCC Group’s Environment
area and Aqualia have an Energy
Management System certified in
accordance with ISO 50001.
At the 2019/2020 edition of
the European Business Awards
for the Environment (EBAE
Awards), FCC Environment
won an award for a project
aimed at implementing
affordable electric mobility in
urban services.
Cementos Portland Valderrivas
is committed to using renewable
energy for the production of
cement and renews its EMAS
Environmental Management and
Audit System.
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FCC facing climate change and reducing
emissions
In line with its commitment to climate change management, the
FCC Group has given consideration to the recommendations of
the Task Force on Climate-Related Financial Disclosures (TCFD)
established by the Financial Stability Board (FSB). These rec-
ommendations are structured in: governance model, strategy,
risk management and metrics and objectives to inform inves-
tors and other stakeholders about the management and inte-
gration of risks and opportunities derived from climate change
in their business model.
FCC has a Climate Change Strategy, which establishes the
strategic lines and the roadmap until 2050, basing its manage-
ment for the adaptation and mitigation of climate change on five
fundamental pillars: Communication, Reduction, Innovation,
Supervision and Adaptation.
Climate-related risks and opportunities are included within the
FCC Group’s Risk Management Model, which guarantees their
periodic evaluation and the establishment of controls to prevent
and detect them.
In 2020, the FCC Group saw
its direct (scope 1) and indirect
(scope 2) emissions decrease
by 12.76% compared
to the previous year
Adapting to new opportunities associated with climate change
and reducing emissions are used by businesses to develop and
promote programmes such as:
The ie-Urban Project from FCC Environment, a new
100% electric collector vehicle designed to improve safety,
reduce emissions and increase its useful life.
The main risks related to climate change include exposure to
extreme meteorological events, water scarcity, new limits on
GHG emissions, new regulations regarding the energy recovery
of waste or the energy certification of buildings, among others.
The ABAD Bioenergy technology, patented by Aqualia,
is a comprehensive biogas cleaning, improvement and pu-
rification system that allows a higher quality biomethane to
be obtained at a lower price.
Regarding the measurement of impacts, this affects the annual
calculation of the carbon footprint of each business line. The
FCC Group’s greenhouse gas (GHG) emissions are detailed be-
low, including scopes 1 and 2. Different methodologies have
been used in the calculations for each of the Group’s activity
sector, all of them in line with the GHG Protocol.
The FCC Group’s direct and indirect GHG emissions (tCO2e)
731,600
7,870,743
604,073
6,900,204
768,792
5,165,274
The Bici Sendas R&D project, by FCC Construcción,
establishing modular and self-sufficient bicycle lanes with
sustainable materials.
The European BioReco2Ver project, by Cementos Port-
land Valderrivas, to obtain alternative processes in the pro-
duction of chemical products from the capture of industrial
CO2 emissions.
2018
2019
2020
Indirect GHG emissions (scope 2) (t CO2 eq)
Direct GHG emissions (scope 1) (t CO2 eq)
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53
In addition, the FCC Group aims to reduce polluting atmos-
pheric emissions (mainly NOx, SOx and particulates) associated
with its businesses, although these emissions are not consid-
ered contributors to climate change as with as GHG emissions.
The main atmospheric emissions by type of pollutant are de-
tailed below:
With regard to NOx, SOx and particulates – the main emissions
resulting from the activities – the proportion of each of them is
detailed below:
Aqualia
Cementos Portland
Valderrivas
Construction
area
Environment
area
NOx
SOx
Persistent organic pollutants (POPs)
Volatile Organic Pollutants (VOCs)
Particulates (MP)
HCL
HF
Emissions of ozone-depleting substances
(ODS)
72
5,988
0
–
–
–
–
–
1
717
0
144
125
8
1
–
437
6
–
21
1,264
–
–
–
5,303
495
0
142
53
54
1
–
Total
11,801
1,218
0
306
1,443
62
2
1
Emissions of NOx, SOx and Particulates (T)
82% NOx
8% SOx
10% Particulates
FCC Construcción obtains the
“calculate and reduce” stamp from
the Carbon Footprint Registry, for
its offsetting and CO2 absorption
projects
The specific measures adopted in each of the Group’s busi-
nesses with regard to atmospheric emissions vary significant-
ly depending on the activity carried out:
The FCC Group’s Environmental Services area is commit-
ted to favouring the active degassing of landfill with meas-
ures to control diffuse emissions of powdery materials. To
minimise these emissions inside the facilities and during
transport, the necessary cleaning is carried out, accumula-
tions of dust are removed and it is ensured that the partic-
ulates deposited on roads do not disperse.
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FCC Construcción has preventive measures such as cov-
ering the trucks that transport powdery materials, using
tubes to transport rubble from heights, dampening down
roads and stockpiles or using machinery with humidifiers to
reduce the emissions derived from drilling.
Cementos Portland Valderrivas, which produces significant
emissions into the atmosphere from clinker furnaces, en-
sures compliance with emission limits by installing sleeve
and electrostatic filters to reduce concentrations in chan-
nelled sources. In addition, to avoid diffuse emissions, it
installs filters for transports and transfers of powdery mate-
rials; it installs closed storage and windscreens; dampens
down tracks and sweepers and vacuum trucks.
In relation to discharges, preventive measures taken include
the installation of water purification systems; the neutralisation
of effluents with basic pH, or placing containment elements
near water bodies.
In relation to noise pollution, FCC ensures that local regulations
on noise are respected and installs acoustic screens, carrying
out tasks that minimise the impact and using more modern and
quieter machinery.
To minimise the impacts derived from light pollution, meas-
ures are taken such as the installation of timers and presence
detection systems, or the use of directional light, which only
illuminates only the area necessary without impacting the en-
vironment.
Protecting biodiversity
The FCC Group various businesses must ensure they care for,
preserve and restore the biodiversity in the areas where the
company carries out its activity and where they may affect the
ecosystems and the species that live in them.
Last year, FCC managed to protected 1,142 hectares of sensi-
tive areas and restored 700 hectares of affected areas.
To mitigate the impact of activities on the natural environment
and to promote the conservation of biodiversity, the company
establishes alliances; develops projects to protect and recover
ecosystems; maps areas of interest for biodiversity and restores
areas with the transplantation of plant species and the transfer
of animal species or the physical protection of specimens.
Some specific projects include:
The Chamaeleo Project to recover the common chameleon
population present in the Coto de la Isleta pine forest, in
Puerto de Santa María, in Cádiz, Spain.
Collaboration in projects with the non-profit organisation
SEO Birdlife – Spanish Ornithology Society – by FCC Medio
Ambiente Iberia.
Aqualia’s involvement in recovering the Alcázar de San
Juan lagoons, in Ciudad Real, Spain, with treated water.
The adaptation of building façades, by FCC Construcción,
to allow swifts to nest during their migratory passage.
The restoration in the quarries by the Cement business,
with the morphological repair and revegetation of the ex-
ploited surface using native species.
54
FCC Environment UK in the relocation of voles
from the Greengairs landfill designed a bespoke
habitat with 425 metres of water banks, affording
these rodents with enough ground to dig, shelter
and breed. The transfer will take place once there
is enough vegetation in the area, and it will be used
to carry out a review of their health, evaluating their
weight, sex and probability of reproduction.
The sensitive protected areas and spaces where the different
business areas are located, with some kind of official biodiver-
sity protection are:
Natural areas that are protected or have high biodiversity
value.
Areas where the landscape is catalogued as relevant.
Areas with high biodiversity value.
Watercourses that are highly valuable or important to local
communities and indigenous populations.
Impact on catalogued or protected vegetation.
Impact on catalogued or protected animal species.
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FCC and its commitment to society
To be a key actor in sustainable progress, the FCC Group incor-
porates social action into its business strategy, thus contributing
to the creation of employment and wealth in the communities
in which it operates, in a joint effort to promote their well-being
and development.
To maximise positive social impact, FCC promotes smart and
inclusive progress in cities, launching various actions and en-
couraging social dialogue with administrations and stakehold-
ers at all times.
FCC’s social and solidarity initiatives
FCC and its staff are truly committed to social equality through
initiatives with various NGOs and other collaborating entities,
through participation in various social projects; promoting ed-
ucational and training plans; promoting access to the labour
market of different groups; and fostering community develop-
ment and social inclusion.
FCC also reflects the company’s commitment – and that of its
staff – through initiatives that foster the spirit of solidarity and
commitment to the most vulnerable groups.
Some of the solidarity campaigns in which the company and
FCC staff have participated – in collaboration with foundations
and entities that understand and respond to social needs –
have been:
The collection of books and school supplies for the Melior
Foundation, part of its “Not without my textbooks” initiative.
The collection of food and personal hygiene products, “Do-
nate kindness kilos”, together with the Pan y Peces Foun-
dation.
The #gaszynchallenge campaign, promoting donations to
contribute to the well-being of hospitalised children in Po-
land.
55
The FCC Group has contributed to the social
reconstruction of the country after the effects of
COVID-19, carrying out a solidarity campaign in
support of food banks under the “No home without
food” initiative, in collaboration with the La Caixa
Foundation and CaixaBank, with the aim of helping
the most vulnerable families affected by the crisis.
The solidarity of the workforce came about in the
form of donations, together with the financial con-
tribution from the company, which added a total of
131,000 euros to this campaign.
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The FCC Group’s social initiatives
in the community
The FCC Group demonstrates its commitment to local commu-
nities through projects based on four social axes that extend
across the company.
ACTIONS IN THE COMMUNITY
56
Integration of
vulnerable groups,
social inclusion and
access to basic
services
Creating value in
communities
Assessment of
the social and
environmental impact
of operations
Cooperation in
educating and raising
awareness
The FCC Group, through its business model and activities car-
ried out, favours access to basic services, such as electricity,
drinking water and sanitation, enabling the economic and social
development of the communities in which it operates.
In addition, due to the social and economic impact generated
by COVID-19 in 2020, FCC continued to provide the services
required to minimise any impact on the well-being of citizens,
contributed to promoting greater hygiene in public spaces,
assisted in the early detection of the virus in wastewater and
has participated in different social and economic reconstruction
projects, with a particular focus on more vulnerable groups.
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The FCC Group’s socio-economic
contribution to sustainable development
The company promotes sustainable social development
through its own activities and by through monetary contribu-
tions to social entities to meet the socio-economic needs of the
most disadvantaged communities and groups.
In the last year, and considering the implications of the pan-
demic at a social level, the FCC Group has allocated a total of 4
million euros through contributions and donations to non-profit
organisations, foundations and associations.
The FCC Group has allocated a
total of 4 million euros to social
action, non-profit entities and
foundations
FCC Communities
Foundation, in the United
Kingdom donated more than
6.1 million pounds in 2020
In addition, through the FCC Communities Foundation the Unit-
ed Kingdom, more than 6.1 million pounds was donated in 2020.
Due to the COVID-19 pandemic, the FCC Group’s En-
vironmental Services area launched the #EstoNO-
tienequePARAR initiative, carried out selflessly clean
hospitals and collect waste in hotels. In addition, FCC
Medio Ambiente Iberia collaborated with a total of 2.7
million euros to the development and implementation of
social and environmental initiatives in 2020.
FCC Environment UK, through its FCC Communities
Foundation, contributes and channels its funds to two
programmes: FCC Community Action Fund and FCC
Scottish Action Plan, which work on projects that con-
tribute to developing communities in areas such as bio-
diversity or heritage protection.
Aqualia launched a great educational project through
aqualiaeduca.com and participated in the “Brave Blue
World” documentary on Netflix – through All-Gas – about
the production of biofuels from algae. In addition, the com-
pany carried out more than one hundred cultural, sporting
and environmental collaborations.
The main contribution of FCC Construcción to progress-
ing communities is the creation of direct and indirect em-
ployment, and prioritising local suppliers, who account
for more than 90% of the total. In addition, the company
launched a volunteer programme in Panama to plant trees
and to promote recycling in schools.
Cementos Portland Valderrivas focuses on the supplier
selection processes, based on objective competition and
transparency in the process, and collaborations included
the donation of cement blocks to various city councils in
Madrid and to the NGO Remar.
Contribution of the FCC Group in 2020
Donations to non-profit
entities and foundations
Sponsorship
Contributions to associations
Other contributions
These contributions reinforce the Group’s commitment to the
2030 Agenda and allow the company to actively contribute to
the SDGs related to economic progress, the reduction of ine-
qualities and the present and future social development of com-
munities.
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58
FCC’s commitment to its customers
and suppliers
FCC’s commitment to its customers
The FCC Group aims to achieve excellence in service, seeking
to offer the highest quality and providing differential value. Each
business strives to get to know its customers, offering products
and services according to their needs, with their satisfaction
being a priority. Consequently, the Group works towards lasting
relationships, based on mutual trust, honesty, professional re-
sponsibility and the contribution of value.
Both FCC and all its collaborators strive to identify, satisfy and
anticipate the needs of customers (internal and external), also
committing on innovation and continuous improvement within
the different business lines.
Due to the wide range of goods and services offered by the
FCC Group, the type of customer is also wide (public and pri-
vate entities; direct users; etc.), however, in all of them, there is
the concern and response to:
• Assess and improve customer service and satisfaction, for
which each business has different communications and
measurement tools, suitable for their services’ customers
and users.
Ensure the health and safety of both customer and user –
beyond the established legal requirements – with specific
management systems that allow the impacts and risks of
their activity on customers, users and in communities where
they operate to be assessed, controlled and minimised.
• Complaints management, for which each Group business
has specific tools and procedures to deal with communica-
tions received from customers and users.
– At FCC Medio Ambiente Iberia, around 1,700 customer
complaints have been received, of which more than 90%
have been resolved.
– Nationally and internationally, Aqualia has received 16,180
complaints from customers and users.
– FCC Construcción has received 105 complaints, 80% of
which were resolved at the end of the year.
– In Cement, 15 complaints have been received and 60% of
them have been resolved.
– More than 4,000 satisfaction surveys have been sent out
by Environmental Services area and FCC Environment
CEE, in which customers rated the company’s work as
satisfactory or very satisfactory.
– Aqualia seeks to offer a close and personalised customer
service that allows it to offer solutions in an streamlined,
fast, simple and efficient manner. It has several channels
for this, such as the telephone service, the virtual office,
mobile apps or social networks. In addition, almost 10,000
customer and institutional satisfaction surveys were sent
out, with positive, good and excellent assessment results.
– The Construction area has a customer contact person
who is responsible for addressing any suggestions, deal-
ing with the information, managing the collaboration and
communicating the actions to be taken. A total of 350
surveys were sent out in 2020, of which 88.6% gave an
“excellent” rating.
– Cementos Portland Valderrivas uses various communica-
tion channels, such as the Digital Channel for customers
and direct contact with the commercial team. In 2020,
a total of 1,008 quality surveys were sent to end users,
resulting in an average rating of 4.11 out of 5.
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The FCC Group updated the Purchasing Manual
in 2020, working on the analysis and updating
the environmental, social and governance risks
map for suppliers and contractors.
The FCC Purchasing Manual is based on three
key principles: transparency, competitiveness
and objectivity.
Throughout 2020, a total of 382 suppliers com-
pleted the approvals process.
FCC’s commitment to the value chain and its suppliers
The FCC Group’s Code of Ethics and Code Conduct is the
company’s starting point in terms of integrity to work to the
highest standards of behaviour with stakeholders and socie-
ty as a whole. Internally, efforts are being made to strengthen
control and supervision systems, and environmental, social and
good governance commitments and criteria are integrated into
the supply chain and the value chain.
The basic principles that partners, collaborators and suppliers
must comply with are:
Expressing rejection of corruption, bribery and fraud, ac-
crediting ethical behaviours in all business relationships.
Defending and protecting fundamental human and labour
rights, as recognised internationally in the Universal Decla-
ration of Human Rights and in the Declaration of the Inter-
national Labour Organization (ILO).
Accrediting compliance with occupational health and safe-
ty standards.
Establishing sustainable environmental management in all
its activities that respects the environment.
In terms of procurement, the company introduces sustainability
in the processes of contracting goods and services through its
commitment to responsible purchasing. Suppliers and contrac-
tors are a significant stakeholder group given their size: in Spain
alone, the Group has established business relationships with
more than 32,500 suppliers.
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Response to future challenges
Our evolving environment
A business model which responds
to the challenges of cities of the future
FCC is one of the international benchmark groups in providing
citizen services, operating in over 30 countries, providing exten-
sive experience in environmental services, in end-to-end water
cycle management, as well as the development and manage-
ment of infrastructures and the production of associated ma-
terials.
The FCC Group’s vision “To contribute to the development and
progress of cities, creating value for all citizens and for its cus-
tomers, shareholders and collaborators” gives a purpose for
the entire company, guiding the Group’s actions and allowing
a shared goal to be established by all those who are part of the
organisation and its stakeholders. In this way, a cross-cutting
culture is reinforced that is applied to its activities irrespective of
the different business lines, contributing to the economic, social
and environmental development of society as a whole.
Through its ongoing work and business strategy, the FCC
Group has positioned itself as one of the most important citi-
zen services groups worldwide. About 40.3% of the company’s
turnover comes from international markets, mainly in Europe
(28.5%), the Middle East (4.7%), Latin America (2.8%), North
Africa (2.8%) and the United States (1.3%).
Since the Group was founded, social and economic develop-
ment of cities has allowed the business to progress. Sustaina-
bility is essential for cities of the future to face the main global
challenges, such as climate change, population growth, poverty
and equal opportunities.
In 2020, the health crisis posed a new challenge for the oper-
ations of cities. New needs to prevent the spread of COVID-19
arose, such as greater hygiene measures in public spaces,
while maintaining basic services. Citizens underwent an event
that has had the greatest health, economic and social impact
on a global scale in recent decades. COVID-19 affected cities
and inhabitants, transforming the way of interacting, consump-
tion habits and mobility patterns, among other factors.
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GLOBAL TRENDS
Population pressure and concentration of the population
in cities
Approximately 56.2% of the world’s population currently lives in
cities and this percentage is expected to continue to increase
in upcoming decades. By 2050, cities are expected to have
68% of the world’s population, which means that 1.2 million
kilometres will be urbanised in the next three decades1.
The population increase and settlement in urban centres means
that towns become cities, which will expand geographically and
increase their population density. This means new challenges
for the FCC Group regarding the management of land and nat-
ural resources so that cities continue to be functional, which
(1) Source: World Bank.
(2) Source: Cities in the World, OECD Urban Studies.
requires resources and infrastructures to be optimised in the
short, medium and long term.
levels of hygiene in homes, shopping areas, offices and on pub-
lic transportation are crucial in overcoming the pandemic2.
Despite the impact of pandemic on demographic changes not
yet being known, long-term estimates indicate that the world
will continue to urbanise in upcoming decades, albeit at a lower
rate in those highly urbanised areas. The first indications about
COVID-19 pointed to urban density being correlated with the
spread of the disease, however, the relative success of man-
aging the virus in very densely populated areas such as Seoul,
Singapore or Tokyo has made the scientific community think
that conurbation, and not density, is the main culprit. In urban
areas, addressing overcrowding and maintaining acceptable
The expansion of cities will require huge investment in infra-
structure in upcoming decades, which should allow large urban
centres to be maintained. In this context, social demands for
this urbanisation to be sustainable are increasing.
To deal with this expansive trend in cities, the FCC Group it
committed to the development of Smart Cities and sustainable
urban accessibility, minimising the environmental impact of its
processes and services.
Approximately, 56.2% of the world’s population
In Latin America and the Caribbean, 81.2% of the
lives in cities. By 2030, there are expected to be 43
megacities, most of them in developing countries.
population lives in urban areas, up from 41.3% in 1950.
While fewer than 20% of Africans and Asians lived in
cities in 1950, that number has risen to 43% and 51%,
respectively.
Seventy-five per cent of global GDP comes from
urban areas and 60% relate to fewer than 1,000
cities and metropolitan areas with more than 500,000
inhabitants.
Around 75% of global energy use is concentrated in
cities, compared to just 45% in 1990.
Household water demand has grown 600% since
1960.
Cities in 2030 will account for between 60% and 80%
of energy consumption, 70% of GHG emissions and
70% of GDP.
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FCC’s response to the challenges and opportunities posed
Challenges
Opportunities
1 Creation of sustainable cities, guaran-
teeing mobility, connectivity and inter-
urban connection, which will require the
development of more complex urban
infrastructures.
FCC Construcción contributes more than 120 years of experience
in executing large transport infrastructure projects, demonstrating a
great capacity for managing public and private interest projects that
are unique and with a high degree of specialisation. The company
develops its projects under the highest standards of quality and sus-
tainability through innovative actions and supported by the compa-
ny’s research, so as to make the infrastructures resilient, efficient and
sustainable. It is a pioneer in the development of good practices and
actions to protect the environment as well as in the execution of ur-
ban transport infrastructures (metro, airports, high speed trains, roads,
bridges, tunnels, etc.), as well as health, sports and cultural infrastruc-
tures.
2 Manage waste generated in cities and
provide municipal services, protecting
the value of urban ecosystems and
committing to sustainability requires
in-depth knowledge of the sector and
innovative solutions to address an in-
creasing population.
FCC Environment is a leading global player in the collection, stor-
age and treatment of urban and industrial waste and in the provi-
sion of services in cities. The company serves more than 66 million
people in almost 5,000 municipalities, managing almost 24.5 million
tonnes of waste annually. These capacities afford FCC Environment
a privileged position to manage the increase in recycling needs in
cities that follow the EU objectives for 2035. The company is also
committed to innovation, offering solutions (SHES or Smart Human &
Environmental Services) to make cities more sustainable, efficient and
socially responsible places, and working with them in achieving the
SDGs of the UN 2030 Agenda. E-mobility technology will be decisive
in this transformation and a differential element in competitiveness in
the coming years.
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63
Challenges
Opportunities
3
Invest in quality and sustainable materi-
als that meet new infrastructure needs,
providing greater durability and resil-
ience and making them more sustaina-
ble.
For the FCC Group, constant innovation in the use of primary and
recycled materials implies increased efficiency and reduced costs. The
Life Cycle Analysis (LCA) of civil engineering elements is a fundamental
factor to bear in mind, both when building new infrastructures and
when adapting existing infrastructures3.
Sustainability for FCC Construcción, both for buildings and infrastruc-
tures, has a key impact on the technological scope and on the choice
of materials used on site. A more suitable design for adverse and ex-
treme weather events, more efficient construction processes and a
less intensive carbon emissions activity are the axes of the company’s
innovation policy and a capital resource in its development.
Cementos Portland Valderrivas is a leading producer of high-quality
products adapted to the needs of its customers and each construction
project. It also innovates to improve the quality and increase the range
of its products’ qualities.
4 Creation of infrastructures that guaran-
tee quality management of the end-to-
end water cycle (purification, distribu-
tion, sanitation and treatment) in large
cities.
Aqualia, the fourth largest water management company in Europe
and the ninth in the world by population served, serves nearly 30 mil-
lion people in 17 countries. Likewise, the company annually purifies
and treats more than 600 million m3 of water and analyses over one
million samples to guarantee the quality of the water distributed. The
company’s extensive experience in the design, construction, financing
and operation of treatment plants, as well as its commitment to de-
veloping innovative technologies, position Aqualia as a company that
can provide solutions that ensure access to water and its quality in the
cities of the future.
(3) Source: World Cities Report 2020,
UN Habitat.
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Climate change and water stress on the global agenda
The UN climate summit, COP 26, will be held in November 2021
in Glasgow (Scotland). Experts hope that the Glasgow meeting
will be the most important in curbing the rise in global temper-
atures since the countries reached the Paris Accord in 2015.
The fight against climate change is one of the greatest global
challenges. It must be borne in mind that the proportion of CO2
in the atmosphere reached a record 417 ppm in 2020. The last
time this figure was reached was four million years ago, when
global temperatures were between two and four times higher
and the sea level between 10 and 25 metres higher than today.
If this trend continues, the concentration of CO2 would be 800
ppm at the end of the 21st century, reaching a temperature 12
degrees higher, on an uninhabitable planet.
The impacts derived from this phenomenon include changes
in weather patterns, as well as a greater probability of extreme
events, such as floods or droughts in different regions of the
world. A quarter of the world’s population is facing water scar-
city due to population growth, economic development and
climate change. The United Nations projects that the global
demand for fresh water will exceed supply by 56% by 2030.
Conversely, 2020 was the hottest year in Europe on record. In
June 2020, eastern Siberia reached 38°C, the highest ever re-
corded in the Arctic Circle.
In a year marked by the pandemic, global CO2 emissions fell
by around 6% globally, the steepest decline since World War II.
However, global energy-related CO2 emissions are projected to
recover in 2021 and grow by 4.8% as demand for coal, oil and
gas pick up with the economy.
The transition to a low-carbon economy is high on the public
sector agenda, a transition in which the private sector plays
a key role in setting emission reduction targets. In this sense,
FCC works on numerous innovation projects related to replac-
ing fossil fuels and promoting alternative energies. Some pro-
jects are of particular importance, such as the introduction of
collection vehicles with hybrid technology (electric-fuel cell) or
the production of hydrogen from biogas generated in waste
treatment (FCC Environment); the transformation of biogas into
biomethane for the automotive industry (Aqualia); the construc-
tion of infrastructure to promote the hydrogen industry (FCC
Construcción); or the use of activated clays to replace clinker
(Cementos Portland Valderrivas).
The proportion of CO2 in the atmosphere reached a
record 417 ppm in 2020.
2020 was the hottest year on record in Europe.
The Arctic is warming twice as fast as the rest of the
world. In June 2020, eastern Siberia (Russia) reached
38°C, the highest ever recorded in the Arctic Circle.
Between 1979 and 2018, the proportion of Arctic sea
ice, which is at least five years old, decreased from
30% to 2% according to the IPCC.
In 2021, global energy-related CO2 emissions are
projected to recover and grow by 4.8% as demand for
coal, oil and gas pick up with the economy.
In 2020, global Co2emissions2emissions fell by
around 6% globally, the steepest decline since World
War II.
A quarter of the world’s population is facing up to
water scarcity due to population growth, economic
development and climate change.
The United Nations projects that the global demand for
fresh water will exceed supply by 56% by 2030.
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FCC’s response to the challenges and opportunities posed
Challenges
Opportunities
1 To guarantee access to water, in quan-
tity and quality, for a growing popula-
tion, taking measures that protect the
resource.
Aqualia, as an international leader in the end-to-end water manage-
ment cycle, develops solutions to minimising the impact that climate
change can have on the availability of water resources. Likewise,
aware of how key such a scarce resource is, it continuously invests in
improving the distribution network to minimise losses throughout the
end-to-end water cycle and implements awareness-raising measures
to promote responsible consumption.
2 Facilitate access to water in developing
countries, as well as develop desalina-
tion, treatment and purification tech-
nologies that respond to the needs of
population.
3 Improve architecture and urban design
in light of climate change and the risks
of disasters.
In countries where the availability of fresh water is limited and is in-
creasingly threatened by climate change, Aqualia develops desali-
nation solutions that meet the needs of local populations, as well as
projects with very different water needs, so technological innovation is
key to improving efficiency in the use of water.
FCC Construcción develops resilient infrastructures and promotes
urban design adapted to the consequences of climate change and
gives due consideration to the possible physical risks of adverse me-
teorological phenomena. Urban and architectural solutions must meet
the dual function of minimising the adverse effects that they may pro-
duce and of resist those that will occur as a result of global warming,
and provide resilient solutions that allow development to progress, but
a sustainable development, with better qualities, better benefits and
quality of life for people, while being more respectful to the environ-
ment.
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Challenges
Opportunities
4 Mitigate the FCC Group’s contribution
to climate change.
The FCC Group
has launched initiatives
to mitigate its
contribution to climate
change
The FCC Group works to mitigate its contribution to climate change.
For this reason, the company has launched various initiatives on its
path to sustainability such as approving the Group’s Climate Change
Strategy for 2050, the implementation of energy efficiency measures,
reduction of energy consumption, fuel replacement, promotion of re-
newable energies, equipment renewal, energy use of waste or carbon
footprint registration, among others. Likewise, all the Group’s business
areas develop different R&D projects and give training sessions to raise
awareness, encouraging participation in working groups on innovation
and climate change.
FCC Environment works to minimise its contribution to climate
change and offer a competitive advantage in the provision of smart
and sustainable services. It is worth highlighting the promotion of al-
ternative energies in the provision of urban services, the use of biogas
from landfill, its energy use such as electricity or biomethane, or the
installation of photovoltaic panels in centres, among others.
Aqualia focuses its efforts on increasing energy efficiency in the end-
to-end water cycle through hydroelectric generation, photovoltaic solar
self-consumption, electricity generation from biogas or its transforma-
tion into biomethane for the automotive industry.
FCC Construcción works to reduce the energy consumption of its
operations, as well as to use and promote the use of renewable en-
ergies whenever possible, with the aim of mitigating its contribution
to climate change. It studies more efficient construction processes
with lower emissions and, as far as possible, selects the materials with
lower emission intensities and promotes more efficient construction
solutions during their useful life. On the other hand, FCC Construcción
calculates its carbon footprint in all the countries in which it operates
and has become the only construction company in the world that has
third parties verify the emissions reports after calculations, which it
publishes annually, raising awareness among its own staff, as well as
interested parties, and providing confidence in its activity and in the
measures it adopts, with a view to mitigating its emissions.
Cementos Portland Valderrivas focuses its efforts to reduce GHG
emissions on replacing conventional fuels in clinker kilns (such as bio-
mass or waste); optimisation of the hydrogen injection process in the
furnace; the promotion of photovoltaic self-consumption in the factory
or the replacement of clinker with activated clays, whose emissions are
lower per tonne of cement produced. The work of the Cement area
in replacing raw materials and recovering implied more than 270,000
tonnes of CO2 emissions being avoided in 2019 (latest data available).
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Challenges
Opportunities
5 Mitigate the impact that physical and
transition risks related to climate change
may have on the company.
The FCC Group is aware that its business lines are exposed to risks
derived from climate change and develops different action plans within
the organisation based on the activity carried out by each of them.
Taking into account the possible climatic impacts derived from glob-
al warming on the company’s operations, the FCC Group focuses its
efforts on being part of the solution, maintaining its leadership in the
end-to-end water management cycle, environmental services and
development and infrastructure management, as well as promoting
synergies between different business lines with the aim of enhancing
profitability, transversally mitigating climatic events and promoting the
Group’s sustainable development.
For FCC Construcción, the risks associated with climate change are
seen as an opportunity that, far from negatively affecting the company,
differentiates it due to its ability to provide solutions for the greater
well-being of the societies in which it operates. The role of construc-
tion in adapting the planet to global warming is a lever for inspiration
and actions in the company, and physical and business risks are ap-
proached from a growth perspective and contribution to greater sus-
tainability of the planet.
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FCC’s response to the challenges and opportunities posed
Challenges
Opportunities
1 ntegrate circularity by reducing the use
of raw materials and preparing them for
reuse.
FCC Construcción has a circular economy strategy around six are-
as of action defined under the ReSOLVE framework. This framework
encourages the identification of business opportunities linked to the
transition towards a circular economy as a production model. Some of
the company’s measures are the reuse of inert gasses from other pro-
jects, effluents and wastewater from processes, or removed topsoil, or
maximising the use of recoverable elements, such as removable walls
or the use of portable treatment plants for use in different projects, as
well as the use of recycled materials. Within the Construction area,
FCC Industrial has become the first construction company to obtain
the “Zero Waste” certificate from AENOR.
Cementos Portland Valderrivas applies circular economy techniques
by implementing energy and waste material recovery strategies to im-
prove production efficiency and the sustainability of its activity. To avoid
the extraction of mineral resources, the company uses secondary raw
materials during the different phases of the production process, thus
reusing resources from other industries.
The effort to recycle materials and energy recovery avoided sending
482,000 tonnes of waste to landfill in 2020. It should be noted that,
between 2014 and 2019, the Group in Spain used more than 1.6 mil-
lion tonnes of alternative raw materials and recovered 631,000 tonnes
of waste.
2 Minimise the production of waste and
promote circularity in their collection
and treatment.
FCC Environment is committed to the circular economy; trying to
convert waste into resources, optimising its use. In this sense, this
business encourages a research and technological approach by im-
plementing various innovative projects. Some of these projects are Life
METHAmorphosis, for the use of biomethane production from waste
treatment plants; Life4Film, whose objective is to avoid incineration
and dumping of plastic film waste; o Deep Purple, a pilot project to
manage the effluents generated in the organic waste treatment facility.
It is also worth highlighting the participation of FCC Environment in a
wind blade recycling project, the first industrial-scale project in Europe,
to be located in Spain. This project, which could generate more than
400 direct jobs in Spain, will seek to recover its main components,
mostly glass and carbon fibre and resins, and their use in sectors such
as energy, aerospace, automotive, chemical or construction.
For FCC Construcción, circularity goes far beyond the correct man-
agement of waste. We are aware that waste and resources can be the
same thing and that it is necessary to work from the standpoint that
waste generated is a resource that will allow us to not consume others.
The economy and suitable minimisation of waste generated, together
with the reuse of it in places where, otherwise, it would be neces-
sary to consume resources, has, in addition to the obvious benefit for
the sustainability and well-being of the planet, the economic effect of
cost savings in the segregation, storage, transport and management
of waste that will not be eliminated and the savings implied by the
non-consumption of raw materials that, otherwise, would need to be
acquired.
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FCC’s response to the challenges and opportunities posed
Challenges
Opportunities
1 ntegrate circularity by reducing the use
of raw materials and preparing them for
reuse.
FCC Construcción has a circular economy strategy around six are-
as of action defined under the ReSOLVE framework. This framework
encourages the identification of business opportunities linked to the
transition towards a circular economy as a production model. Some of
the company’s measures are the reuse of inert gasses from other pro-
jects, effluents and wastewater from processes, or removed topsoil, or
maximising the use of recoverable elements, such as removable walls
or the use of portable treatment plants for use in different projects, as
well as the use of recycled materials. Within the Construction area,
FCC Industrial has become the first construction company to obtain
the “Zero Waste” certificate from AENOR.
Cementos Portland Valderrivas applies circular economy techniques
by implementing energy and waste material recovery strategies to im-
prove production efficiency and the sustainability of its activity. To avoid
the extraction of mineral resources, the company uses secondary raw
materials during the different phases of the production process, thus
reusing resources from other industries.
The effort to recycle materials and energy recovery avoided sending
482,000 tonnes of waste to landfill in 2020. It should be noted that,
between 2014 and 2019, the Group in Spain used more than 1.6 mil-
lion tonnes of alternative raw materials and recovered 631,000 tonnes
of waste.
2 Minimise the production of waste and
promote circularity in their collection
and treatment.
FCC Environment is committed to the circular economy; trying to
convert waste into resources, optimising its use. In this sense, this
business encourages a research and technological approach by im-
plementing various innovative projects. Some of these projects are Life
METHAmorphosis, for the use of biomethane production from waste
treatment plants; Life4Film, whose objective is to avoid incineration
and dumping of plastic film waste; o Deep Purple, a pilot project to
manage the effluents generated in the organic waste treatment facility.
It is also worth highlighting the participation of FCC Environment in a
wind blade recycling project, the first industrial-scale project in Europe,
to be located in Spain. This project, which could generate more than
400 direct jobs in Spain, will seek to recover its main components,
mostly glass and carbon fibre and resins, and their use in sectors such
as energy, aerospace, automotive, chemical or construction.
For FCC Construcción, circularity goes far beyond the correct man-
agement of waste. We are aware that waste and resources can be the
same thing and that it is necessary to work from the standpoint that
waste generated is a resource that will allow us to not consume others.
The economy and suitable minimisation of waste generated, together
with the reuse of it in places where, otherwise, it would be neces-
sary to consume resources, has, in addition to the obvious benefit for
the sustainability and well-being of the planet, the economic effect of
cost savings in the segregation, storage, transport and management
of waste that will not be eliminated and the savings implied by the
non-consumption of raw materials that, otherwise, would need to be
acquired.
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Challenges
Opportunities
3 Integrate circularity into water manage-
ment.
Aqualia incorporates the concept of circular economy into itself by
providing catchment, treatment, storage, distribution, sanitation and
purification services, including the reuse and reintroduction of water
into the natural cycle. Additionally, and to reduce negative impacts on
the environment, the water resources used in operations are purified,
eliminating waste and guaranteeing the best conditions when returning
the resources to the environment.
4 Commitment to transferring society to a
circular economy model and achieving
the European Union recycling objec-
tives.
To formalise its commitment to circularity, as a means of moving for-
wards with sustainable development and mitigating the effects derived
from climate change, in 2017, the FCC Group adhered to the Pact for
a Circular Economy, promoted by the Government of Spain’s Ministry
of Agriculture, Fisheries, Food and Environment and Ministry of Econ-
omy, Industry and Competitiveness. Through this initiative, all the sig-
natories are involved in the transition towards a new, more sustainable
and environmentally friendly economic model.
FCC Construcción is committed to changing society in this regard,
and itself, and participates in the European circular economy strate-
gy. This is a strategy that establishes ambitious targets to reduce the
generation of waste but goes further, as seen in the recently published
Spanish circular economy strategy in which, aware of the holistic na-
ture of this approach, it also sets quantified targets for the use of re-
newable energies, quality employment, reuse of process water and
many other measures integrated not only in FCC Construcción’s strat-
egy, but particularly in specific objectives and goals that are regularly
monitored and declared periodically through Environmental Communi-
cations and the Sustainability Report.
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The disruption of new technologies
Technological revolution is observed in the day-to-day life of
cities. Big Data, Internet of Things (IoT) or Blockchain systems
are able to service cities to completely modify the existing in-
frastructure. By 2030, the number of devices connected to the
internet could reach 125 billion, compared to seven billion in
2017. These technologies could be a potential market of 23
trillion dollars by then. In this year marked by lockdowns, con-
nectivity saw very significant growth. For example, the number
of active users of social networks increased by 13% and the
number of internet users by 7.3%.
The digitisation of cities implies a structural amendment to how
citizens relate to their environment, from their consumption pat-
terns to the way they do business. This transformation reaffirms
citizen empowerment and contributes to a greater role for indi-
viduals in making decisions that affect how the cities in which
they live develop. Investment in Smart Cities is estimated to
reach 203 billion dollars by 2024. Included in this, 5G will play a
key role, whose connections total around 600 million worldwide
in 2021 and will reach three billion by 2025.
Citizens increasingly want more, demanding quality information
about the various products and services offered, taking advan-
tage of interconnectivity and easy access to smart devices.
Aware of the importance of being at the forefront, the FCC
Group annually invests resources in R&D projects with the aim
of being a benchmark in new technologies and therefore offer-
ing continuous improvements to citizens that have an impact on
their quality of life.
By 2030, the number of devices connected to the
Between January 2020 and January 2021, the number
Investment in Smart Cities will increase to 203 billion
internet will reach 125 billion, compared to seven billion
in 2017.
of social media users increased by 13%, mainly driven
by the pandemic.
dollars by 2024.
Key digital technologies could be a 23 trillion dollar
5G connections will be 600 million worldwide in 2021
market by 2030.
and three billion in 2025.
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FCC’s response to the challenges and opportunities posed
Challenges
Opportunities
1 Digitise the provision of services within
each FCC area.
Aqualia uses its Aqualia Water Analytics (AWA) platform to intelligently
and more efficiently manage the end-to-end water cycle, transforming
the way it operates. AWA is an analytical tool that offers the company
a cross-sectional analysis of the end-to-end water cycle, covering the
complete data cycle from its collection.
tive is to improve the company’s productivity and ensure excellence in
processes and results by automating on-site quality control and man-
agement methods. FCC Construcción was the first global construction
company to use the combination of BIM and Blockchain in one of its
projects.
FCC Environment CEE has developed a new application in Slovakia
to notify users when the different types of waste will be collected. This
practical tool modernises the waste collection system in Slovakian mu-
nicipalities, which was previously managed by printed schedules that
citizens had to check and review the times they took out their waste
for collection.
FCC Construcción develops multiple innovation projects related to
digitisation and in Construction 4.0 in general, among which include
the creation of BIMCheck, a platform that works with Blockchain tech-
nology over BIM (Building Information Modelling), whose main objec-
The FCC Group launched its new FCC360 App in 2020, which is
another step towards the company’s commitment to investing in in-
novation and new technologies to improve the competitiveness of its
teams, to promote corporate culture and company values.
The ease of developing applications and the wide mobility in society
has allowed one of the company’s old desires to come true; to inte-
grate the entire community of FCC employees. It is the first time that
the company has reached all workers online, so this channel will allow
it to reinforce internal communications.
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Challenges
Opportunities
2 Develop business models that respond
to the future needs of its customers and
of society in general.
FCC Environment is committed to technological innovation through
its promotion of smart, sustainable and connected cities to improve
the well-being of citizens and focuses its R&D projects in five main
areas: e-mobility, machinery, the economy circular, sustainable devel-
opment and the “VISION”, and Information Technologies (IT).
FCC Construcción actively promotes innovation through its main ac-
tivities, as it is aware of its importance to the company as a differen-
tiating factor in a highly competitive market. The innovation projects
in the FCC Group’s construction area are aligned with its R&D policy,
focusing its efforts on providing added value in terms of sustainability.
Aqualia participates in European, national and regional R&D pro-
grammes related to water management and is co-financed by the
Spanish Administration or the European Union (FP7, LIFE, H2020,
Eco-Innovation, etc.). The application of big data, smart services,
platforms and tools bring about a change in the company’s business
model, which is necessary to respond to the needs and challenges of
the future.
Every year, the Cement business is committed to applying R&D pro-
cesses through the research and development of new products, as is
acutely aware of social demands in environmental matters.
3 Sustainably construct and manage
infrastructure, adapting it to the new
needs and applying new technologies.
FCC Construcción actively promotes innovation through its main ac-
tivities, as it is aware of its importance to the company as a differen-
tiating factor in a highly competitive market. The innovation projects
in the FCC Group’s construction area are aligned with its R&D policy,
focusing its efforts on providing added value in terms of sustainability.
It is firmly committed to new digital technologies with long paths in
the sector, such as BIM (Building Information Modelling), Blockchain,
Artificial Intelligence and Big Data, drones or sensors, among others,
to generate data that improves business intelligence and strategic de-
cision making.
To adapt to the changing context and ensure the competitiveness of
its activities in the market, Cementos Portland Valderrivas works on
technological innovation in products and materials to extend the useful
life of infrastructures. On the other hand, the Cement area applies in-
novative techniques through alternative manufacturing processes and
eco-efficient materials to move forwards with the sustainable construc-
tion of cities.
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The increase of public-private collaboration
According to the World Bank, public-private partnerships are
a solution in infrastructure development, as they can provide
more efficient procurement, focus on customer satisfaction and
life cycle maintenance, and provide new sources of investment.
This is particularly evident in emerging markets and develop-
ing economies, since these countries face greater infrastructure
growth needs and, in turn, have debt levels at record highs. It is
estimated that the infrastructure investment needs of emerging
countries amounts to 4.3% of GDP and close to 1 trillion dollars
per year.
Experts assure that the model is effective for high-cost and
high-visibility projects that involve social and technical com-
plexities, with the potential to build synergies, develop com-
petencies and create an effective framework for alliances and
cooperation, especially when the community, stakeholders and
experts are involved from the outset.
Likewise, PPPs have been fundamental elements in responding
to the coronavirus pandemic, demonstrating that by working
together, the public and private sectors can provide solutions
that benefit all of society. Linked to recovery and public-private
partnership, in July 2020, the European Commission agreed to
create the so-called “NextGenerationEU”, a temporary recovery
fund in addition to the multi-annual budget of the European Un-
ion (EU) for 2021-2027 . Up to 750 billion euros can be issued
between 2021 and 2026 and the funds will be used to tackle
the consequences of the COVID-19 crisis and to accelerate the
digital, green and ecological transitions of the European econ-
omy.
In this context, the FCC Group has identified the various
high-impact projects in Spain that could fit into the resilience
and recovery mechanism, aligned with the pillars of the Funds
and the “Spain Can” Plan and in which PPPs can have sig-
nificant synergies. These projects are related to the replacing
conventional fuels and the production of renewable energies
(for example, fuel cell, biomethane, solar, hydrogen, biomass),
promoting of energy efficiency, treatment and purification pro-
The high-impact
projects identified by the
FCC Group could
mobilise more than
2.5 billion euros
throughout Spain
jects, 5G cybersecurity or replacement of raw materials, among
others. Projects identified by the FCC Group could mobilise
more than 2.5 billion euros throughout Spain with a substantial
impact in terms of employment, emissions reduction, circular
economy and competitiveness. Likewise, FCC actively collab-
orates with other companies in the sector and associations on
investment initiatives that total approximately 120 billion euros.
In 2020, the added value of PPP transactions in the
European market reached a financial close of 7.9 billion
euros.
In 2020, the transport sector continued to be the most
important in terms of value, with transactions worth
4.9 billion euros.
The added value of the public-private associations in
It is estimated that the infrastructure investment
Europe decreased 27% compared to 2019.
needs of emerging countries amount to 4.3% of GDP
and are close to 1 trillion dollars a year.
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La respuesta de FCC a los retos y oportunidades planteados
Challenges
Opportunities
1 To take full advantage of innovation in
the private sector, combining public and
private capital.
FCC Construcción, with more than 120 years of experience, con-
tinues to be a leader in carrying out civil engineering and residential
and non-residential construction projects, and has wide ranging expe-
rience in developing projects under the concession system. Numerous
future opportunities have been identified for infrastructure concession
contracts in the US, Europe, the Middle East and Latin America.
There are a multitude of opportunities for public-private partnership at
FCC Environment resulting from the capital investments that will be
necessary to meet the recycling and landfill targets set by the EU.
As an example, it is worth highlighting FCC Environment’s involvement
in a wind turbine blade recycling project, an example public private
partnership project.
2 Incorporate best practices and efficien-
cy by using the specialised private man-
agement model.
Aqualia’s activity focuses on concessions and services, covering
concessions for distribution networks, BOT (“Build Operate Transfer”),
O&M and irrigation services, as well as technology and network tasks
covering EPC (“Engineering Procurement Construction”) contracts and
industrial water-treatment activities. These skills mean the company is
a clear option for this type of opportunity Income in the Water area
grew in 2021 due to the greater contribution of the new concessions
contracts abroad.
FCC Construcción is the usual solution for the design and execution
of different technically complex urban and transport infrastructures.
Various international investment funds collaborate with FCC Construc-
ción in responding to different infrastructure needs; an example is the
project to design and construct, operate and maintain the A-9 motor-
way in Amsterdam (Netherlands).
3 Stimulate investment and strengthen
growth in infrastructure and provision of
services.
In 2020, FCC Concessions was selected to extend the A465 main
road in Wales (United Kingdom) under a PPP model. The project will
improve connectivity and development in the region and has a planned
investment of more than 600 million euros.
4 Financing projects in an environment of
highly indebted public administrations.
It is worth highlighting the 21.8% reduction in the FCC Group’s finan-
cial debt compared to 2019, which gives it an outstanding capacity to
be involved in various public projects.
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FCC’s strategy: focus on growth with profitability
76
The FCC Group faces the future with confidence and has
shown that it has sufficient resilience to overcome times of cri-
sis such as those we are experiencing now and those it has
overcome in its 120 year-history. This resilience is based on
solid foundations, a leading-edge risk management framework,
a commitment to good governance and sustainability, and the
importance of keeping an eye on future challenges.
With the aim of promoting the sustainable evolution of cities,
and positioning itself at the forefront of their competitive envi-
ronment, the FCC Group has developed its cross-cutting value
creation model. This model, which is shared by all the Group’s
businesses, is based on the following value creation levers:
Value
creation
levers
Quality and innovation: FCC is an operator that has
significant experience in these businesses, with a differ-
entiated technical specialisation, able to lead large con-
sortia in complex projects. Likewise, it has a highly spe-
cialised and committed human team, which prioritises
protecting its health and safety and who are capable of
providing innovative solutions and taking care of improv-
ing people’s lives on a daily basis.
Integrity in its actions, the Group’s Code of Ethics and
Conduct establish everyone’s commitment to the envi-
ronment and people, respect for rights and dignity, and
demonstrating zero tolerance against discrimination for
reasons of race, religion or gender. Likewise, the Compli-
ance Model ensures that all the Group’s companies and
employees are governed in accordance with the prin-
ciples established in the Code of Ethics and Conduct,
while strengthening internal control so as not to incur in
any criminal breach.
Financial discipline and management efficiency, with
the aim of preserving long-term profitability and sustain-
able growth. The FCC Group’s strategy is embodied in a
set of actions that seek to improve the capital structure
and use of external resources, the generation of cash
and the optimisation of financial costs.
Proximity and commitment, having local roots in the
places where its operations are carried out, allowing it to
develop relationships of trust. FCC seeks to create value
in the communities where it is present, favouring trans-
forming societies into healthy, inclusive and cutting-edge
environments.
These value creation levers serve to guide the FCC
Group’s Sustainability strategy.
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Strategic vectors of the FCC Group
Maintain leadership in key markets
The FCC Group focuses its strategy on strengthening its com-
petitive position in key markets where it is already present, as
well as selective growth in new markets that are attractive and
aligned with the company’s corporate and risk culture. Like-
wise, promoting sustainable development has been and will
continue to be one of the Group’s strategic vectors, promoting
the construction and management of sustainable and resilient
infrastructures, promoting the circular economy and mitigating
the Group’s contribution to climate change.
To maintain its leadership position in the countries where it op-
erates, FCC focuses its efforts on guaranteeing the quality and
continuity of its services, which allows it to retain a competi-
tive position in each market. Given the diversity and how they
complement each other, the synergies between them help to
correctly assess the risks and potential of each project, which
translates into a sustained increase in the Group’s international
portfolio.
Likewise, FCC intends to be a facilitating company for its cus-
tomers, establishing long-term relationships, providing guar-
antees and the reliability of a big leading company, while also
remaining local and focused on each of the regions where it
operates.
In the Environment area, for example, the strategy in Spain
focuses on maintaining its competitiveness and leadership po-
sition, combining technical knowledge and developing innova-
tive technologies, offering respectful, inclusive and sustainable
services.
Despite leaving the European Union, the UK remains commit-
ted to the EU’s circular economy goals and is pushing for new
measures to support plastics recycling by introducing a tax on
packaging and supporting measures to reduce CO2 emissions.
In Portugal opportunities related to soil decontamination and
new urban sanitation contracts stand out, while moderate
growth is expected in Central and Eastern Europe, weighed
down by the effect of the pandemic.
The FCC Group focuses
its strategy on
strengthening its
competitive position
in key markets in which
it currently operates
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78
The Water area seeks to maintain its competitive position in
end-to-end water management cycle markets in which it has
a consolidated presence (such as in Spain, with renewal rates
above 90%) and to take advantage of opportunities that arise
in this activity.
In Europe, countries are expected to restart public tenders to
renew water infrastructures (as with Portugal) or by terminating
the contractual term of any existing contract (as with France).
The Construction area’s strategy focuses on maintaining its
presence in countries and markets with a certain stability and
through demanding risk management that should provide ac-
cess to a selective portfolio of projects that ensure profitability
and cash flow generation for the company. It is worth highlight-
ing the key position of the company in foreign markets, which
accounts for 47% of income, with large projects underway in
Riyadh, Lima, Dublin, the Netherlands and Romania, among
others.
Finally, the Cement area seeks to maintain its competitive po-
sition in both operational efficiency and sustainability to remain
a benchmark for the sector in the countries where it operates.
Given the macroeconomic forecasts and the uncertainty of the
epidemiological situation, it is expected that the consumption of
the cement market in Spain in 2021 will be between -3% and
3% compared to Tunisia, where consumption will grow by 5%,
reducing the impact suffered in 2020.
The strategic planning by
the Group means
it can establishobjectives
to be achieved by
each area of activity
Selective growth in new markets
Each FCC Group business detects opportunities of interest in
the markets in which it operates, as well as in new markets. The
Group’s strategic planning means it can establish objectives to
be achieved by each area of activity. These objectives consider
market opportunities and the risk appetite deemed acceptable
in each country where these opportunities arise.
In FCC Medio Ambiente, the inclusion of new technologies
will enable us to further consolidate our strength in the markets
for waste recycling and valuation in Europe and position our-
selves as key players in the circular economy. New European
demands with regard to climate change will encourage new
services aimed at energy efficiency, urban mobility and smart
cities.
Internationally, the United States is a market with a high devel-
opment potential for FCC, supported by its know-how, experi-
ence and the use of the most advanced and efficient technolo-
gies in the provision of environmental services. The company is
working towards consolidating its presence by growing residen-
tial contracts and boosting the commercial collections activity.
2020 was the first year of collections service of Volusia County
(Florida) and the largest contract in the country in in the Omaha
Country (Nebraska), which will act as a regional base to expand
the market in the Midwest.
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Jointly with the end-to-end water management cycle, Aqualia
plans to promote growth via BOT (Build, Operate and Trans-
fer) and O&M (Operation and Maintenance) in desalination and
treatment in North Africa, Latin America and the Middle East,
and will continue to explore possibilities in other countries such
as the United States. In this sense, Aqualia will always make full
use of its broad experience in the end-to-end water manage-
ment cycle in business opportunities that may arise in countries
with a stable political and social climate.
Internationalisation arrived in 2020 for FCC Construcción af-
ter winning contracts in Mexico, Wales, Norway and Chile. In
this sense, the development of large infrastructure projects ob-
tained between 2018 and 2020 is expected in the coming years
as well as the contribution of consolidated markets in Ameri-
ca (Canada, USA, Mexico, Chile, Peru, Colombia) and Europe
(Netherlands, United Kingdom, Ireland, Norway and Romania).
Also noteworthy is the company’s stable presence in recent
years in the Middle East.
Despite the Cementos Portland Valderrivas Group being
aware of possible growth opportunities in new markets, the
strategy focuses on consolidating the markets in which it is
present. The Group will continue developing its policies to seek
efficient and optimal investments, as well as adapting all or-
ganisational structures to the situations in the countries where
it operates.
79
Contribution to sustainable development
Throughout its more than 120-years history, the FCC Group has
developed its activity based on fostering long-lasting, transpar-
ent and mutually beneficial relationships with the stakeholders
with whom it interacts. The Group’s strategy will always be
aligned with these commitments, ensuring that the progress of
cities guarantees the well-being of citizens and the preservation
of the environment.
For the FCC Group, the progress of cities must guarantee the
well-being of their citizens, respect for human rights and the
preservation of the environment. All these years, FCC has been
hand-in-hand with the constant evolution and transformation of
cities, providing sustainable solutions and launching corporate
social responsibility projects and initiatives.
As fundamental pillars of its sustainability strategy, the FCC
Group has the Corporate Social Responsibility Policy, ap-
proved in 2016 by the Board of Directors, and the Fourth CSR
Master Plan, that, aligned with the Sustainable Development
Goals, has positioned the company as a significant player in
social, economic and environmental challenges, focusing its
responsible management on 15 action programmes that are
structured around three strategic pillars: citizen connection,
smart services and exemplary behaviour.
Looking towards the new Master Plan, the Group has worked
on a materiality study, which has allowed it to identify the most
relevant environmental, social and governance issues for FCC,
its businesses and its stakeholders. This study will be used as
an input into the new strategy, wich will be in effect until 2025
and will allow the main axes on which to work in the short, me-
dium and long term to be established, to continue offering the
best services to citizens and to contribute to socio-economic
development.
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80
4 FCC in 2020
Highlights of the year _ 81
Key figures _ 83
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Highlights of the year
January
March
May
FCC reaffirms its commitment to the social
and economic progress of cities with CSR
projects and initiatives and making the
sustainability of its business model tangible by
supporting SDG 11.
FCC Medio Ambiente and the City Council of
El Puerto de Santa María, have presented the
Chamaeleo Biodiversity Conservation Project,
financed by FCC (Cádiz, Spain).
FCC Medio Ambiente delivers its 2019 Avanza
Awards (Madrid, Spain).
The University of Almería (Spain) and Aqualia
join forces to research and publish information
about the water cycle.
Aqualia joins the International Federation of
Private Water Operators (Aquafed).
FCC Construcción wins the contract for
designing and constructing the E6 motorway
between Ulsberg and Vindasliene (Norway).
FCC Industrial becomes the first “Zero
Residue” construction firm (Spain).
The FCC Group is at the forefront of the country's
social reconstruction after the effects of the
COVID-19 pandemic.
FCC Medio Ambiente continues to work to ensure
essential services during the COVID-19 pandemic
(Spain).
FCC Medio Ambiente's staff at the University of
Zaragoza collaborates in the fight against
COVID-19 by making face masks (Zaragoza,
Spain).
New contract to manage the cleaning and
maintenance services for the sewerage network in
Zaragoza (Spain).
Solidarity, adaptation and service in response
to COVID-19.
FCC Construcción wins, in cooperation with
Carso Infraestructuras y Construcción (CICSA),
the contract for the design, construction and
maintenance of section 2 Tren Maya (Mexico).
The Primary Health Care Authority in Mallorca
chooses a health centre, run by FCC
Construcción (UBS El Molinar) for its
COVID-19 Response Centre (Balearic Islands,
Spain).
The Life Impacto Cero project, by FCC
Construcción, a success story (Spain).
The FCC Group launches its new app,
FCC360.
FCC Environment wins the prestigious
2020 International Safety Award from the
British Safety Council (United Kingdom).
FCC Environment installs two new
electric charging stations in Himberg
(Austria).
The Badajoz Water Service achieves the
maximum rating from the European
Benchmarking Cooperation (EBC).
Five more years managing the
municipal water service in Mula, Murcia
(Spain).
The Association of Communication
Executives (DIRCOM) chooses Aqualia’s
CSR Report as one of the three best of
the year.
FCC Construcción rolls out a series of
social and corporate actions to face the
health crisis caused by SARS-CoV-2
(COVID-19).
1
2
3
4
5
6
February
April
June
The FCC Group is the first in Spain to adopt a
project with Liferay DXP Cloud technology.
The Aqualia team receives further information about
ethics and integrity.
FCC Medio Ambiente renews the contract with
Servicios de Txingudi for the cities of Hondarribia
and Irún (Guipúzcoa, Spain).
The concession holder for the Lima metro in Peru
receives the Structured Financing of the Year Award
from LatinFinance magazine.
New contracts in Aragon (Spain) to provide
treatment services to more than 130,000
residents in Aragon.
Group
Infrastructures
End-to-end water
managenment cycle
Environment
Cement
The “Refurbishment of Plaza España” project
becomes the main municipal construction site on
account of its specific nature and urban impact
(Madrid, Spain).
The occupational insertion project “Expansion and
refurbishment of the hospital in Soria” by FCC
Construcción, is selected as an example of best
practice by the European Commission (Soria, Spain).
GCPV continues contributing to the Madrid Skyline,
allowing the construction of two very unique and
exclusive skyscrapers that will be used for homes
(Madrid, Spain).
The FCC Group and its various business areas
carry out various actions to fight against
COVID-19.
Madrid's selective collection workers and
FCC Medio Ambiente make a donation to
Médecins Sans Frontières (MSF) in the fight
against the coronavirus (Madrid, Spain).
FCC Environmental Services begins operations
for Volusia County (Florida, USA).
Aqualia named “Best Company in 2019” by
readers of iAgua, the leading industry
publication in Spain and Latin America.
A one-of-a-kind bio-health protocol to combat
COVID-19 allows work to resume at the Salitre
WWTP in Bogotá (Colombia).
FCC Construcción becomes the first
construction firm in the world to join the UN's
“Sustainable Investments and Finance” group.
FCC Construcción makes progress with the
construction of hospitals in Soria, Salamanca
and San Juan de Dios (Seville, Spain).
GCPV supplies the cement to construct the
new bridge connecting the M-40 and the
M-607, providing the residents of Colmenar
Viejo with the necessary infrastructure to
connect with the capital (Madrid, Spain).
GCPV continues to bring people together,
contributing it cement to the construction
of the most innovative and durable bridges
in the country.
Inversora CARSO increases its shareholding in
FCC by 15.4%.
ACUAES renews its trust in Aqualia to manage
its wholesale supply in Zaragoza (Spain).
The FCC Group Competencies are presented,
the DNA that binds us.
FCC Medio Ambiente winner of the OHS
‘Bonus Prevention’ awarded by Mutua
Universal (Spain).
FCC Medio Ambiente renews the contracts for
the waste collection and street cleansing
service, and the vehicle-towing service in
Oviedo (Spain).
Aqualia participates in the presentation of the
StepbyWater alliance, an initiative supported
by the Spanish government.
FCC Construcción wins the “Best Global
Projects” award from ENR international
magazine for its projects: Panama Metro line 2
(Panama); Improving access to the city of
Iquique (Chile); and the El Alamein
desalination plant (Egypt).
FCC Construcción participates at the event to
celebrate the 30th anniversary of the
construction of the KIO towers (Madrid, Spain).
GCPV donates nappies and baby food to the
Alcalá de Guadaíra City Council (Seville, Spain)
to meet the needs of the youngest.
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Play
July
The FCC Group celebrates its 120-year history.
FCC Medio Ambiente grows in the municipal services market in
northwestern Spain with the award of the A Coruña street cleansing
contract (Spain).
FCC Environment awarded the waste collection and street cleansing
contract in Vale de Sousa (Portugal).
Aqualia completes the integrated cycle with the acquisition of EMSA
(Ecosistemas de Morelos) and thus consolidates its presence in Mexico.
The new edition of the “Pásate a la e-factura” campaign sees more than
450,000 users signed up to Aqualia's digital billing service.
FCC Construcción wins the contract for designing and constructing the
new hospital in Jersey.
September
November
The FCC Group launches you_, a new way of being,
learning, evolving, innovating, projecting our future.
FCC Medio Ambiente pioneer in obtaining the SIGOS
certification as a healthy organisation from AENOR in
all its branches (Spain).
FCC Medio Ambiente renews the waste collection
and street cleansing contract in Segovia (Spain)
FCC Environmental Services’s Material Recycling
Facility at Houston (Texas) honoree by the NWRA as
the Best Recycling Facility 2020 of the United States
(Texas, USA).
The El Alamein plant (Egypt), chosen as one of the
three desalination plants of the year at the Global
Water Awards.
The IFM fund selects two projects submitted by
Aqualia for its international environmental and social
internship programme.
FCC Construcción commissions Line 5 of the
Bucharest metro, the first major transport
infrastructure opened in Europe following the
outbreak of COVID-19 (Romania).
FCC Construccións starts work to drill the Ergos
tunnel, as part of the “Anillo Insular de Tenerife”
project (Tenerife, Spain).
FCC Construcción secures various contracts: Nudo
Norte (Madrid); improvements to Dic de Recer
(seawall) at the Olympic Port in Barcelona; and the
construction and maintenance of different rail lines
owned by Rodalies de Barcelona (Spain).
Through its donations, GCPV supports the purchase
of study furniture for the Los Molinos Special
Education Centre in Alcalá de Guadaíra (Seville,
Spain).
FCC Construcción completes work on the first
cable-stayed bridge built in California (Los Angeles,
USA).
RRC receives acknowledgement from the Portuguese
Association for Business Ethics (Portugal).
From its quarry in Vallcarca (Barcelona, Spain), GCPV
sends more than 600,000 tonnes of aggregate to the
Port of Tarragona by sea, making the extension of the
Balearic Wharf a reality that will serve to generate
our trading operations.
Collaboration with the Adecco Foundation, donating
more than 40,000 euros, to help children of GCPV
employees who have some type of disability become
integrated into the labour market.
Exemplary intervention of FCC Medical Services during
the pandemic.
FCC Medio Ambiente recognised for second time with
the 'Calculo- Reduzco' seal from the Spanish Office for
Climate Change for its commitment to reduce the
carbon footprint of its activity in 2019 (Spain).
FCC Environment renewed the national contract of
complex waste management and recycling for 3 years
with Hyundai Motors Manufacturing facilities (Czech
Republic).
The Advisor project, included in the 101 most innovative
initiatives in 2020 for combating climate change.
Lleida city council (Catalonia, Spain) and Aqualia create
a social solidarity fund to guarantee access to water for
families at risk of exclusion.
FCC Construcción registers its carbon footprint for the
eighth time in the Carbon Footprint Registry, offset and
absorption projects held by the Ministry for the
Ecological Transition and the Demographic Challenge
(Spain).
7
8
9
1 0
1 1
1 2
August
October
December
The MIDES project, led by Aqualia, operates
the first two desalination plants that are wholly
energy self-sufficient in the world, in Dénia
(Alicante) and Guía de Isora (Santa Cruz de
Tenerife).
FCC Construcción becomes the first Spanish
construction firm to have a third party verify
del the carbon footprint of more than 70% of
its domestic and foreign activities.
The entry of investment group iCON in the
FCC Group's Environmental Services area
enhances its leadership position in the United
Kingdom.
New reverse osmosis leachate treatment plant
at Gyal landfill site (Hungary).
Group
Infrastructures
End-to-end water
managenment cycle
Environment
Cement
FCC improves energy performance at its
Corporate Head Office in Madrid (Spain).
FCC Medio Ambiente winner of the Spanish
edition of the 2019/2020 EBAE Awards in the
Product/Service category for its
100%-electric, industrial chassis-platform for
heavy-duty urban service vehicles (Spain).
FCC Environment is awarded the waste
collection and treatment, and selective
collection contract in Bytom (Poland).
Recognition of the best preventive culture
practices included in Aqualia's contracts.
The documentary, Brave Blue World, which
features Aqualia’s All-gas project, is available
in 191 countries via Netflix.
FCC Construcción secures the funding for the
project to expand sections 5 and 6 of the
A465 dual carriageway in Wales.
FCC Construcción receives the 2019 Best
Infrastructure Award for the “Variante de
Vallirana (B-24)” project (Catalonia, Spain).
GCPV manufactures the cement that supports
the most demanding architectural works. From
its manufacturing plant in El Alto, in Madrid
(Spain), it supplies many of its most resistant
cements to build Torre Caleid
It's not magic, it's you. Launch of the FCC
Group corporate video.
FCC publishes a book that summarises its
120-year history.
FCC Medio Ambiente is awarded the
certificate of protocols against COVID-19 from
AENOR for its corporate headquarters in Las
Tablas (Madrid) and for the Exhibition Centre
of Granada (Spain).
FCC Environmental Services started operations
in Omaha contract (Nebraska, USA).
The “Who is behind the water we use at
home?” campaign, organised by Aqualia as
part of the COVID-19 crisis, is named a winner
at the European Excellence Awards (EEA).
Aqualia becomes a full member of the UN
Global Compact.
FCC Costruction, over 12 years committed to
equality.
We meet with the commitment to reduce CO2
emissions, implementing a new biomass
facility at our manufacturing plant in Alcalá de
Guadaíra (Seville, Spain).
GCPV cements are always present in works
with the greatest social impact that improve
the development of large cities.
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FCC_Annual Report_2020 | FCC in 2020 | Key figures | Page 1 of 5
Key figures
Turnover
Millions of euros
2020 turnover by activity
Gross operating profit (EBITDA)
%
Millions of euros
5,990
%
2
.
3
+
%
8
.
4
+
6,276
6,158
%
9
.
1
-
1,026
1,048
%
1
.
2
+
861
%
6
.
5
+
%
1
.
9
1
+
46.9% Environmental
Services
26.2% Construction
19.3% Water
6.2% Cement
1.4% Corporate services
and adjustments
2018
2019
2020
2018
2019
2020
EBITDA 2020 by activity
%
43.0% Environmental
Services
27.0% Water
5.1% Construction
13.4% Cement
11.5% Corporate services
and others
EBITDA margin
%
14.4%
16.3%
17.0%
Investments
Millions of euros
435
%
6
.
0
3
+
547
541
%
7
.
5
2
+
%
1
.
1
-
2018
2019
2020
2018
2019
2020
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FCC_Annual Report_2020 | FCC in 2020 | Key figures | Page 2 of 5
84
Net financial debt
Millions of euros
3,579
%
0
.
3
3
+
2,798
%
8
.
1
2
-
2,691
%
8
.
4
2
-
Total assets
Millions of euros
10,524
%
4
.
0
-
Earnings attributable to the Parent
Millions of euros
12,574
%
5
.
9
1
+
12,835
%
1
.
2
+
252
%
6
+
267
262
%
7
.
1
-
2018
2019
2020
2018
2019
2020
2018
2019
2020
Backlog
Millions of euros
Equity
Millions of euros
28,991
31,038
29,412
%
3
.
1
-
%
1
.
7
+
%
2
.
5
-
1,959
2,474
%
3
.
6
2
+
2,909
%
6
.
7
1
+
Financial leverage. Net debt / Total assets
%
25.6%
28.5%
21.8%
2018
2019
2020
2018
2019
2020
2018
2019
2020
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FCC_Annual Report_2020 | FCC in 2020 | Key figures | Page 3 of 5
Stock Market Performance 2020
Evolution of the
stock market and share price
In a year framed by the COVID-19 pandemic, with considerable
uncertainty and doubts for investors, it was a year that particu-
larly hit the Spanish economy, as it is more dependent than the
average on our environment, on activities related to the mobility
of people.
The arrival of vaccines in the final quarter, and the progress
made prior to their arrival, supported a partial but incomplete
recovery from the second half of the year with the main world
stock market indices performing very differently.
At the beginning of the year, on 30 January, the World Health
Organization (WHO) declared an international public health
emergency. With the markets tumbling in March, with the pan-
demic spreading across Europe, the situation recovered to a
certain extent throughout the year as progress was found on
its possible solution and the impact on the different sectors of
the European economy, together with a significant financial aid
programme and enhanced liquidity arranged by the ECB (Euro-
pean Central Bank) along with other main central banks in the
world.
In the US, Wall Street reached a record level driven by technol-
ogy companies with the Nasdaq Index, leading the advances
with more than 43%, followed by the generalist S&P500 with
16.26%. The good performance of technology and pharma-
ceutical companies, which benefited from the measures taken
to mitigate the effects of the coronavirus, was key to this. This
effect was also witnessed in Asia, where the Chinese and Japa-
nese markets added 27.2% and 16.0% respectively.
In Europe, where the weight of technology and biotechnology
is less, the indices lagged behind, with the exception of the
Swedish OMX and the German Dax (+5.81% and 3.55% re-
spectively), and the Eurostoxx, which fell by 5.14% in the year.
In Spain, the IBEX35 finished at the bottom of the major inter-
national indices, with a fall of 15.45%. The was marked by the
biggest drop in 60 years on 12 March 2020 when it plummeted
14.4%, and also by the best month in its history, in November,
after seeing a 25.2% revaluation, but to a great extent it suffered
from the impact that measures taken to combat the pandemic
globally had on its tourism and associated services activity.
For 2021, the International Monetary Fund (IMF) forecasts that
global growth will reach 5.5% (in its January 2021 report), down
from 5.2% in its October 2020 update, given that the slowdown
and impact in 2020 was more tempered than initially expected
and is consistent with the expectations of social distancing re-
maining even for some months of this year. Given this, and after
the slowdown of 2020, the recovery in 2021 would mean the
level of world GDP (Gross Domestic Product) closing almost 2%
above that of 2019.
Furthermore, it is noteworthy that growth forecasts imply wide
gaps in output and unemployment rates this year and next, in
both advanced and emerging market economies. For the latter,
the IMF has forecast a 3.3% fall in 2020 and a growth of 6.0%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | FCC in 2020 | Key figures | Page 4 of 5
86
Share price
Trading
In this context, FCC’s share performed similarly to that of the
domestic market as a whole. The price fell by 16.3%, with a
year-end closing price of €8.80/share.
The maximum price was €11.96/share on 18 February – before
the outbreak of the pandemic – and the minimum was €7.17 on
24 March. FCC ended the year with a market capitalisation of
3,600 million euros.
Total trading volume this year was over 19.5 million shares, with
a daily average of 76,136 shares; 61% more than in the previ-
ous year. However, the brokered volume is conditioned by the
13% free float and by the type of long-term investors, reflecting
the profile of the majority shareholder and, therefore, having a
low turnover ratio.
Variation
10.0%
0.0%
-10.0%
-20.0%
-30.0%
-40.0%
Volume (shares)
2,000,000
1,600,000
1,200,000
800,000
400,000
0
January
February
March
April
May
June
July
August
Sept.
Oct.
Nov.
Dec.
2020
% Chg. FCC
6.7%
-4.5%
-30.8%
16.8%
4.7%
-7.4%
-13.1%
12.2%
-0.9%
-10.7%
21.9%
-0.6%
-16.3%
% Chg. Ibex35
-1.9%
-6.9%
-22.2%
2.0%
2.5%
1.9%
-4.9%
1.3%
-3.6%
-3.9%
25.2%
0.0%
-15.5%
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Shareholders
FCC, S.A.’s shares use the book entry system and are listed on
the four Spanish stock exchanges (Madrid, Barcelona, Valencia
and Bilbao). According to the information on file in Spanish Na-
tional Securities Market Commission (CNMV) records, on the
closing date of the year the main shareholders in the company
were:
Main Shareholders
% of Share Capita
Control Empresarial de Capitales, S.A. de C.V.
Finver Inversiones 2020, S.L.U.
William H. Gates III
Koplowitz Romero de Juseu, Esther
69.61%
7.00%
5.73%
4.57%
87
Price of shares: maximum, minimum and year end
Euros/share
Market capitalisation
Millions of euros
Maximum
Minimum
Year end
13.40
12.80
11.96
10.36
8.63
7.17
11.70
10.52
8.80
4,432
4,284
%
3
.
3
-
%
6
.
5
3
+
3,600
%
0
.
6
1
-
2018
2019
2020
2018
2019
2020
2018
2019
2020
2018
2019
2020
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88
5 Business
lines
Environment _ 89
End-to-end water management _ 130
Infrastructure _ 161
Cement _ 186
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During the financial year
2020, the area’s turnover
amounted to €2.89 billion,
the gross operating profit
amounted to €450.9
million and the profit
before tax €155.2 million,
15.61% and 5.37% on
turnover respectively.
89
Environment
Geographical divisions and sector analysis.
Strategy _ 90
Activity map _ 99
Highlights Environment _ 100
Other highlights _ 101
Excellence and sustainability _ 112
Innovation and technology _ 118
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 90
FCC_Annual Report_2020 | Business lines | Environment | Geographical divisions and sector analysis. Strategy | Page 1 of 9
Geographical divisions
and sector analysis. Strategy
For 110 years the Environmental Services area of the FCC
Group has provided municipal services and end-to-end waste
management, serving in excess of 66 million people in more
than 5,000 municipalities.
Turnover 2020. Divisions
FCC Servicios Medio Ambiente
60.35% Iberia (Spain,
Portugal, Ámbito)
20.96% United Kingdom
16.09% CEE Central
and Eastern Europe
2.60% USA
In 2020 the company operated in a total of 12 countries, pro-
viding a range of services which demonstrates its varied ex-
perience in the sector: collection, treatment, recycling, energy
recovery and disposal of urban solid waste, public street clean-
ing, maintenance of sewage systems, ground maintenance,
treatment and disposal of industrial waste, and the recovery of
contaminated soil.
FCC Servicios Medio Ambiente Holding S.A.U., which is the
backbone of the Environmental Services activities is structured
into four geographical divisions:
Iberia: FCC Medio Ambiente (Spain), FCC Environment
Portugal and FCC Ámbito (Industrial Waste)
United Kingdom: FCC Environment UK
Central and Eastern Europe: FCC Environment CEE
USA: FCC Environmental Services
During the financial year 2020, the area’s turnover amounted to
€2.89 billion, a slight decrease (-0.93%) on the previous year,
the gross operating profit amounted to €450.9 million and the
profit before tax €155.2 million, 15.61% and 5.37% on turn-
over respectively. This performance is most remarkable under
the very unfavourable socioeconomic circumstances that have
been brought about by the worldwide pandemic of COVID-19.
This event has affected the development of all economic activi-
ties and has highlighted the importance of the services provided
by this entity, services that have been graded as essential for
citizens, since they must continue to be provided even in the
most adverse circumstances and contribute fundamentally to
the resilience of a society.
Even in adverse conditions, FCC Servicios Medio Ambiente
managed 23.6 million tonnes of waste in 2020 and produced
nearly 3.3 million tonnes of secondary raw materials (SPM) and
refuse-derived fuel (RDF). The company has more than 750
operational waste management facilities, of which more than
200 are environmental complexes dedicated to the treatment
and recycling of waste, including 11 waste-to-energy projects
with a capacity of 3.2 million tonnes per year and 360 MW of
non-fossil electricity.
A significant milestone was the entry of the investment group
iCON as a minority shareholder in the group of energy recovery
companies in the United Kingdom, which strengthens FCC Ser-
vicios Medio Ambiente’s leading position in that country.
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FCC Medio Ambiente Iberia (Spain, Portugal and Ámbito)
FCC Medio Ambiente provides environmental services in over
3,600 municipalities in Spain and Portugal (FCC Environment),
serving a population of more than 31 million inhabitants through
activities including street cleansing, the collection and transport,
treatment and disposal of waste, ground maintenance, mainte-
nance of sewage systems, beach cleaning, and energy efficien-
cy services, among others. During the 2020 financial year, FCC
Medio Ambiente Iberia managed 11.2 million tonnes of urban
solid waste
Turnover 2020. Geographic location
Medio Ambiente Spain and Portugal + Ámbito (Industrial Waste)
22.5% Catalonia
19.0% Madrid
2.7% Galicia
2.0% Navarre
11.2% Valencian Community
1.9% Asturias
9.5% Andalusia
1.6% Balearic Islands
7.2% Basque Country
1.6% Portugal
6.1% Aragon
4.4% Canary Islands
4.0% Castilla y León
2.8% Murcia
1.4% Extremadura
0.8% La Rioja
0.8% Castilla-La Mancha
0.7% Cantabria
Inhabitants served 2020
FCC Medio Ambiente Iberia
17,534,197
19,148,766
13,444,534
Municipalities served 2020
FCC Medio Ambiente Iberia
2,146
2,547
5,168,457
4,913,043
5,074,279
4,588,220
2,837,553
288
59
122
106
9
95
Waste
collection
Street
cleansing
Waste
processing
Ground
maintenance
Sewerage
Beach
cleaning
Fountains
Cleaning
of buildings
Waste
collection
Street
cleansing
Waste
processing
Ground
maintenance
Sewerage
Beach
cleaning
Fountains
Cleaning
of buildings
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92
The COVID-19 pandemic has been a worldwide health emer-
gency that had a special impact in Spain and Portugal. This
extraordinary situation has highlighted the importance of the
essential services provided by FCC Medio Ambiente and the
commitment of its staff, whose professionalism and dedication
have made it possible to maintain excellence and a high level of
service.
To alleviate the unfavourable socioeconomic situation, the
Economic and Social Recovery Funds or Next Generation
promoted by the European Union will provide an opportuni-
ty for development for many of FCC Medio Ambiente’s client
municipalities, to which the firm will bring value and know-how
with the mission of addressing a future approach based on
ground-breaking and innovative changes that will set the path
for growth in the coming years.
FCC Medio Ambiente has developed the 2050 Sustainability
Strategy, aligned with its business strategy and which repre-
sents an ambitious 30-year project, reflecting the company’s
commitment to achieving the Sustainable Development Goals
(SDG) and facing economic, social and environmental challeng-
es on a global scale. The new strategy is a roadmap that inte-
grates environmental, social, excellence and good governance
commitments that are very demanding and of high added value
for the company and the society as a whole. FCC promotes a
comprehensive service management model to promote eco-
nomically, socially and environmentally sustainable cities, in
which policies of equality and social and employment inte-
gration of disadvantaged groups are fundamental pillars, as
well as innovation projects in Clean Energy Technologies and
transformation to the Circular Economy social model.
On this line, the prize-winning 100%-electric, industrial chas-
sis-platform for Urban Service vehicles, developed by FCC
Medio Ambiente, has continued to achieve important awards in
2020, such as the European Business Awards for the Environ-
The annual turnover of
FCC Medio Ambiente Iberia
reached €1.74 billion, an
increase of 1.08%. The gross
operating profit stood at
€265.9 million, with a pre-
tax profit of €148.7 million, a
very noteworthy performance
under the circumstanes of the
health emergency
ment (EBAE) in the category of Best Product or Service, man-
aged in Spain by The Biodiversity Foundation, from the Ministry
for Ecological Transition and the Demographic Challenge.
Within this framework, the annual turnover of FCC Medio Am-
biente Iberia reached €1.74 billion, an increase of 1.08% com-
pared to 2019. The gross operating profit stood at €265.9 mil-
lion, with a pre-tax profit of €148.7 million, equivalent to 15.26%
and 8.53% of the turnover respectively, a very noteworthy per-
formance under the circumstances of the health emergency.
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93
FCC Ámbito (Industrial Waste)
FCC Ámbito specialises in the integrated management of in-
dustrial and commercial waste, recovery of by-products and
decontamination of soil. Through innovative solutions for mak-
ing the most of the resources contained in the different types
of waste, Ámbito has become a strategic partner of industries
and businesses which, in line with the circular economy, devel-
op their activities ensuring environmental, social and economic
sustainability. Overall, it has a total of 39 processing centres
across Spain and Portugal, with more than 67 treatment lines
that guarantee the performance of the facilities. Internationally,
FCC Ámbito has a significant presence in Portugal, where it
operates through its subsidiary ECODEAL.
Within the Spanish market, throughout 2020, and despite
the impact of the pandemic on production and consumption,
an increase of industrial and commercial waste management
has continued to be observed. This rise has been driven by
increased activity in certain industrial sectors which have man-
aged to compensate for the decline in others more related to
consumption. As a result, FCC Ámbito’s activity shows a slight
increase of 6% in tonnes managed. This growth is taking place
in a context characterised by the intense competition estab-
lished by waste producers themselves and which is facilitated
by the absence of subsequent responsibility of the producer
when the waste is handed over to an authorised handler.
Ámbito’s annual turnover
raised by 5.65% on 2019,
reaching €129.6 million and
the gross operating profit also
increased by 21.97%
to €31.8 million
In Portugal, there has also been an increase of activity with the
main recurring customers and a recovery of prices, so that the
year closed above forecasts with an increase of 3% in tonnes.
In this context, Ámbito’s annual turnover raised by 5.65% on
2019, reaching €129.6 million. The gross operating profit also
increased by 21.97% to €31.8 million, equivalent to 24.5% of
turnover.
Legislative changes coming into force tend to lean towards
greater control of waste traceability by regional governments.
These changes will undoubtedly benefit waste management
companies that have final treatment facilities, such as FCC
Ámbito.
Along this year the industrial waste activity will continue to focus
on the efficiency of operations and growing the activity. The in-
corporation of new technologies will allow FCC Ámbito to con-
solidate its position in the recycling and value recovery markets
as a key circular economy player.
Turnover 2020 - Geographic location
Ámbito Industrial Waste. Spain and Portugal
19.4% Catalonia
14.2% Aragon
16.3% Portugal
13.3% Madrid
10.0% Basque Country
10.0% Andalusia
6.0% Cantabria
3.2% Asturias
2.2% Castilla y León
1.8% Valencian Community
1.3% La Rioja
0.9% Castilla-La Mancha
0.7% Navarre
0.6% Extremadura
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FCC Environment UK
FCC Environment is one of the leading companies in the United
Kingdom for comprehensive waste management and recycling.
It is uniquely placed to provide services in an ever-changing
waste sector. The business continues to focus on increased
recycling volumes and green energy generation in line with gov-
ernment policy. The company has invested in a wide range of
waste management facilities that aim to minimise the amount of
waste disposed of to landfill sites by processing the material to
ensure it reaches its full potential as a valuable resource.
During 2020, FCC Environment served over 22 million inhab-
itants across the whole country, managed in excess of 6 mil-
lion tonnes of waste and produced nearly one million tonnes of
recyclable material and Refuse-Derived Fuel (RDF). Thanks to
its 6 Waste-to-Energy facilities (EfW), FCC has processed 1.5
million tonnes of waste that cannot be recycled and generated
1.17 million MWh of green energy.
FCC Environment UK’s annual
turnover reached €605.3 million
which represents 16.98%
of revenue
Inhabitants served 2020
FCC Environment UK
19,759,500
1,383,600
812,000
93,000
0
0
0
142,000
Waste
collection
Street
cleansing
Waste
processing
Ground
maintenance
Sewerage
Beach
cleaning
Fountains
Cleaning
of buildings
94
With Brexit transition issues already at the forefront of the com-
pany’s planning, the business was hit by a global pandemic and
has been working hand in hand with the UK Government, as
well as municipal and business clients to ensure that the waste
and recycling services offered to citizens and industry were
maintained. FCC Environment in the UK is proud to have met
this challenge in every way.
Working hard in the early stages to ensure de UK Government
recognized the waste sector as an essential service by des-
ignating staff as key workers was vital to business continuity
throughout the year including the Household Waste Recycling
Centres Service. The first lock down in England and, through-
out the year, the closure of leisure and hospitality have had an
impact on business waste and recycling volumes, but there has
been a commensurate rise in household waste and recycling
tonnages.
The UK Government has continued to do its groundwork in
2020 to revolutionise the waste management sector within the
aim of achieving higher recycling rates and meeting its stated
goal of ‘leaving the environment in a better place than we found
it´. FCC Environment supports this aim and through the year has
continued to work closely with the UK Government to shape
policy and, whilst the eventual signing of a Brexit trade deal
has not adversely affected the business, the push for greater
on-shoring of both recycling and waste processing will drive the
UK business planned investment programme to build out ener-
gy from waste capacity and, as policy becomes clearer around
recycling technologies and methodologies, the company will
also address these opportunities
In this context, annual turnover reached €605.3 million, with
a gross operating profit of €102.8 million, which represents
16.98% of revenue.
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FCC Environment CEE
FCC Environment is one the leading global groups in Central
and Eastern Europe (CEE) in the comprehensive management
of urban solid waste and recovery of renewable energy. It applies
innovative systems and the cleanest, most advanced technol-
ogies in the provision of quality services that are sustainable on
the medium and long term and adapted to customers’ needs.
In 2020, the division has been present in 8 countries: Austria,
Czech Republic, Slovakia, Hungary, Poland, Romania, Bulgary
and Serbia, though Bulgarian activities were sold along the
year. Across these countries, nearly 5 million inhabitants in over
1,400 municipalities were served, and in 2020, in excess of 5.5
million tonnes of waste and 680,000 tonnes of recovered mate-
rial and Refuse-Derived Fuel (RDF) were managed.
95
Turnover 2020 - Geographic location
FCC Environment Central and Eastern Europe
39.73% Czech Republic
29.68% Austria
11.99% Poland
7.30% Slovakia
5.12% Hungary
1.92% Bulgary
1.76% Serbia
2.50% Romania
Inhabitants served 2020
FCC Environment CEE
3,081,077
2,840,087
Municipalities served 2020
FCC Environment CEE
1,210
1,155
802,414
528,800
Waste
collection
Street
cleansing
Waste
processing
Ground
maintenance
Sewerage
Beach
cleaning
Fountains
Cleaning
of buildings
Waste
collection
Street
cleansing
Waste
processing
Ground
maintenance
Sewerage
Beach
cleaning
Fountains
Cleaning
of buildings
33,000
0
44,000
227,000
81
44
25
0
2
17
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96
During 2020, FCC Environment continued with the activities to
prepare the CEE countries for the upcoming legal changes in
the national waste management legislations due to the circular
economy targets from the European Union. In countries where
a landfill ban is expected soon or already in place (Czech Re-
public, Slovakia and Poland), FCC Environment intensified its
efforts to develop waste to energy plants. In countries without
landfill ban, the firm strengthened its market position by devel-
oping additional landfill capacity. The company will further de-
velop the existing business models at every country in order to
implement and/or spread selective collection, waste treatment
(such as sorting and composting) and recycling.
Under these circumstances, the annual turnover was €464.7
million, and the EBITDA reached €73.7 million, an increase of
14.3% on the previous year. The earnings before tax thrived
to €19 million, a remarkable performance improvement of 80%
compared to 2019.
FCC Environment CEE’s annual
turnover was €464.7 million and
the earnings before tax thrived
to €19 million, a remarkable
performance improvement of 80%
compared to 2019
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97
FCC Environmental Services USA
FCC Environmental Services is one of the top 20 companies
in the United States for comprehensive management and re-
cycling of solid urban waste. The company operates in the
states of Texas, Florida and, since the start of this year’s waste
collection contract in Omaha, also in Nebraska. Across these
states over 8 million inhabitants are served in 15 locations and,
in 2020, 635,000 tonnes of waste and 252,000 tonnes of recy-
clable material were managed.
Just a few years after the start of the activity in the US, the mar-
ket continues to offer important opportunities in the field of the
solid waste management, in residential and commercial collec-
tion and in the treatment and recycling business.
Once again, 2020 has been exceptional with the award of sev-
eral long-term contracts (up to 20 years) in some of the main
municipalities in Florida (Edgewood, Volusia Facilities) and Ne-
braska (Omaha recycling centers).
Inhabitants served 2020
FCC Environmental Services USA
3,838,000
4,360,000
0
0
0
0
0
0
Waste
collection
Street
cleansing
Waste
processing
Ground
maintenance
Sewerage
Beach
cleaning
Fountains
Cleaning
of buldings
FCC Environmental Services
USA’s annual turnover reached
€75.1 million and gross
operating profit grew by
157.42%
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FCC Environmental Services successfully completed the start-
up of three main contracts (Palm Beach, Volusia and Omaha)
awarded to FCC in 2019.
The company has also consolidated its commercial business
in 2020 and today FCC is present in 7 locations including West
Palm Beach, Orlando, Lakeland, Daytona Beach, Houston, Dal-
las and Omaha.
Houston Recycling Facility, with a treatment capacity of
145,000 tonnes per year, has been honoured as the 2020 Best
Recycling Facility in the USA by the National Waste Recycling
Association (NWRA).
For 2021, FCC Environmental Services strategy is to continue
with the consolidation of the collection and post-collection ac-
tivities and the development of the commercial business. The
company is also analyzing some opportunities of vertical inte-
gration, with the incorporation to the business of some post
collection activity that will fit in FCC’s long-term strategy.
Turnover 2020. Geographic location
The growth strategy for the commercial waste business line is
threefold. Firstly, to contract front-loading and roll-off services to
small, medium and large companies. Secondly, to expand the
current customer portfolio and market all the additional services
offered by FCC. Third, to sell profitable services by taking ad-
vantage of annual and off-cycle price increases. The commer-
cial customer line has great growth potential.
In these circumstances, annual turnover reached €75.1 million
in 2020, an increase of 79.22% over 2019, and will exceed
€100 million once the awarded contracts are operating at full
capacity. In the year of the COVID-19 pandemic, gross operat-
ing profit grew by 157.42%.
FCC Environmental Services USA
66.8 4% Florida
30.76% Texas
2.40% Nebraska
FCC Environmental
Services Activity
in 2020
Contract for the transportation of recyclables from Omaha (Nebraska) drop-off points for 5 years
Contract to collect waste from public facilities in Volusia County for up to 7 years
Contract of Municipal Waste Collection at the City of Edgewood (Florida) for up to 20 years
Waste Collection Service starts at Volusia County (Florida)
Houston (Texas) Material Recycling Facility named Best Recycling Facility 2020 in the US by NWRA
City of Huntsville (Texas) Recyclable Materials Processing Contract Renewal
Waste Collection Service starts at the City of Omaha (Nebraska)
City of Laporte (Texas) Recyclable Materials Processing Contract Renewal
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Activity in the
Environment area
4
3
7
6
8
2
5
99
5
SPAIN
FCC Medio Ambiente Spain
Elche (Alicante)
Waste collection and street cleansing.
255 million euros
A Coruña
Street cleansing. 105 million euros
Oviedo
Extension waste collection, selective
collecion, and street cleansing.
95.1 million euros
Segovia
Waste collection, street cleansing and
landfill closure. 56 million euros
Las Rozas (Madrid)
Waste collection, street cleansing and
ground maintenance. 47.3 million euros
Rubí (Barcelona)
Waste collection and street cleansing.
20.9 million euros
Roses (Girona)
Monforte de Lemos (Lugo)
Waste collection and street cleansing.
16.1 million euros
Barcelona
Removal of graffitis and billboards.
12.5 million euros
San Sebastián
Beach maintenance. 6.9 million euros
Yaiza (Las Palmas)
Street cleansing lot 4. 6.5 million euros
Madrid
Project, works and maintenance of
Valdemingómez Landfill Deodorisation
System (Lot1). 6.1 million euros
Zaragoza
Sewage maintenance. 6.1 million euros
FCC Ámbito
Valencian Community
WEEE waste management
Waste collection, street cleansing and
beach maintenance. 16.1 million euros
Alicante
Soil decontamination Playa Postiguet
1
1
USA
Edgewood (Florida)
Waste collection.
10 million euros
Omaha (Nebraska)
Transportation of all recyclable materials.
2.1 million euros
Volusia County (Florida)
Collection of Waste from public facilities.
1.3 million euros
Huntsville (Texas)
Management of recyclable materials
Laporte (Texas)
Management of recyclable materials
2
PORTUGAL
FCC Environment Portugal
Valle de Sousa
Waste collection and street cleansing.
12.5 million euros
3
ENGLAND
Kent
6
POLAND
Bytom
7
CZECH REPUBLIC
České Budějovice
Management 12 Recycling Centers and
3 transfer stations in Mid & East Kent.
46.7 million euros
Buckinghamshire
Management and treatment of green,
food, bulky and wood waste.
30.4 million euros
4
SCOTLAND
Drumgray - North Lanarkshire
Energy Recovery Centre (DERC). Planning
application approved.
292 million euros investment
Collection, transport, treatment and
selective collection. 15.8 million euros
Classification, loading and transport of old
landfill waste. 14.6 million euros
Zabrze
Hyundai Motor
Deodorisation of composting plant.
3.2 million euros
Managemnet of recyclable and hazardous
waste, and treatment of SRM.
6.8 million euros
8
HUNGARY
Gyal
Reverse osmosis leachate treatment plant
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FCC_Annual Report_2020 | Business lines | Environment | Highlights 2020
Highlights_Environment Services _2020
January
March
May
July
September
FCC Medio Ambiente and the City Council
of El Puerto de Santa María, have
presented the Chamaeleo Biodiversity
Conservation Project, financed by FCC
(Cádiz, Spain)
FCC Medio Ambiente delivers its 2019
Avanza Awards (Madrid, Spain)
FCC Medio Ambiente continues to work to ensure
essential services during the COVID-19 pandemic
(Spain)
FCC Medio Ambiente's staff at the University of
Zaragoza collaborates in the fight against
COVID-19 by making face masks (Zaragoza,
Spain)
FCC Environment wins the
prestigious 2020 International
Safety Award from the British
Safety Council (United
Kingdom)
FCC Environment installs two
new electric charging stations
in Himberg (Austria)
FCC Medio Ambiente grows
in the municipal services
market in northwestern Spain
with the award of the A
Coruña street cleansing
contract (Spain)
FCC Environment awarded
the waste collection and
street cleansing contract in
Vale de Sousa (Portugal)
FCC Medio Ambiente pioneer in
obtaining the SIGOS
certification as a healthy
organisation from AENOR in all
its branches (Spain)
FCC Medio Ambiente renews
the waste collection and street
cleansing contract in Segovia
(Spain)
FCC Environmental
Services’s Material Recycling
Facility at Houston (Texas)
honoree by the NWRA as the
Best Recycling Facility 2020
of the United States (Texas,
USA).
4
3
5
10
9
11
2
1
6
8
7
November
FCC Medio Ambiente recognised
for second time with the 'Calculo-
Reduzco' seal from the Spanish
Office for Climate Change for its
commitment to reduce the carbon
footprint of its activity in 2019
(Spain)
FCC Environment renewed the
national contract of complex waste
management and recycling for
3 years with Hyundai Motors
Manufacturing facilities (Czech
Republic)
12
February
FCC Medio Ambiente renews
the contract with Servicios de
Txingudi for the cities of
Hondarribia and Irún
(Guipúzcoa, Spain)
April
Madrid's selective collection
workers and FCC Medio
Ambiente make a donation to
Médecins Sans Frontières
(MSF) in the fight against the
coronavirus (Madrid, Spain)
FCC Environmental Services
begins operations for Volusia
County (Florida, USA)
June
FCC Medio Ambiente winner of the OHS
‘Bonus Prevention’ awarded by Mutua
Universal (Spain)
FCC Medio Ambiente renews the
contracts for the waste collection and
street cleansing service, and the
vehicle-towing service in Oviedo (Spain)
August
The entry of investment group
iCON in the FCC Group's
Environmental Services area
enhances its leadership position
in the United Kingdom
New reverse osmosis leachate
treatment plant at Gyal landfill
site (Hungary)
October
FCC Medio Ambiente winner of
the Spanish edition of the
2019/2020 EBAE Awards in the
Product/Service category for its
100%-electric, industrial
chassis-platform for heavy-duty
urban service vehicles (Spain)
FCC Environment is awarded the
waste collection and treatment,
and selective collection contract
in Bytom (Poland)
December
FCC Medio Ambiente is awarded
the certificate of protocols against
COVID-19 from AENOR for its
corporate headquarters in Las
Tablas (Madrid) and for the
Exhibition Centre of Granada
(Spain)
FCC Environmental Services
started operations in Omaha
contract (Nebraska, USA)
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Other highlights
101
First external verification audit
of the annual report of the Green
Bond of FCC Servicios Medio
Ambiente Holding, S.A.U.
During 2019, FCC Servicios Medio Ambiente Holding, S.A.U.
issued Green Bonds worth €1.1 billion.
During 2020, the company DNV GL Business Assurance Es-
paña, S.L. (DNV GL) carried out the first external verification
audit of the annual report of the Green Bond of FCC Servicios
Medio Ambiente Holding, S.A.U., on the use of the resources
from the Bond until 31 December 2019. This way, it has verified
the financing and refinancing of projects and assets for a total
value of €824.01, included in several categories, all of which
are eligible (Pollution Prevention and Control, Energy Efficiency,
Clean Transportation and Terrestrial and Aquatic Biodiversity
Conservation).
Therefore, at the end of 2019 €824.01 million of the €1.1 billion
initially issued have been accounted for.
Distribution of investments in the audit report.
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FCC Medio Ambiente Spain
102
Letter of gratitude from the CEO to FCC Medio
Ambiente´s employees
FCC Medio Ambiente certifies its protocols against
COVID-19 with AENOR
FCC Medio Ambiente winner of the EBAE Awards
2019/2020
Jordi Payet, Chief Executive Officer (CEO), showed his gratitude
and acknowledged the responsibility and the effort that employ-
ees have been demonstrating in their daily work, which is para-
mount to continue delivering essential services to communities
under these difficult circumstances due to the Coronavirus pan-
demic. He also highlighted that the activities that the company
carries out have always had a high social engagement and, as
part of its commitment, FCC joined in 2020 the food fundraising
campaign for the Spanish federation of food banks, FESBAL,
with the immediate goal that all families have food available at
these critical times.
FCC Medio Ambiente has received the certificate of protocols
against COVID-19 from AENOR for its corporate headquarters
in Las Tablas (Madrid) and the Exhibition Centre at Granada.
The rigorous evaluation carried out by AENOR assesses as-
pects such as risk analysis; health management in the work-
place; training, information and communications developed;
organisational measures (capacity and distance control) and
protection measures (use of personal protection material), the
business continuity plan, as well as good cleansing and hygiene
practices. This certificate demonstrates that the efforts made
and measures adopted by the company to prevent and alleviate
the effects of the pandemic comply with current legislation and
are aligned with AENOR’s demanding criteria on this area.
FCC Medio Ambiente has won the prize at the 2019/2020 Eu-
ropean Business Awards for the Environment (EBAE Awards)
in the products & services category, for the ie-Urban, a modu-
lar, versatile 100%-electric Plug-in Chassis-Platform developed
jointly with the Irizar Group. The award ceremony was chaired
by His Majesty King Felipe VI, who emphasized in his message
that this award shows the commitment of Spanish companies,
a fundamental element for development and innovation, in fac-
ing the challenge of the ecological transition; as well as the im-
portance of companies being able to meet the needs of current
generations without compromising the future of upcoming gen-
erations. The ie-Urban also won the World Smart City Awards
at the Smart City Expo World Congress 2019. Recently, it also
became the Ecological Industrial Vehicle of the Year 2021 at the
National Transport Awards.
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FCC Medio Ambiente Spain
103
Successful implementation of e-mobility technologies
in facility management services for the Catalan Health
Institute (Barcelona)
The Catalan Institute of Health (Institut Català de la Salut) award-
ed FCC Medio Ambiente the 2-year facility management contract
with a 2-year possible extension. The company’s relationship
with this entity dates back to 2007, since then FCC has provided
uninterrupted service. At this contract the company is committed
to implementing clean technologies, that’s why 22 PHEV units
with a Zero Emission Label from the (DGT) (equivalent to MOT)
have been set up. In addition to the intelligent electric recharging
installations that the company already has in its central base,
additional charging points have been installed throughout the
working area so that maintenance technicians can optimise their
journeys and thus maximise effective working times.
FCC Medio Ambiente achieves the ‘Calculo-Reduzco’
seal from the Spanish Office for Climate Change
Renewal of the waste collection and street cleansing
contract in Segovia
FCC Medio Ambiente has achieved for the year 2019 and for
the second time the Reduzco (“I reduce”) seal by the Span-
ish Office for Climate Change (Oficina Española de Cambio
Climático, OECC), as part of the process of registering carbon
footprint and CO2 compensation, and absorption projects set
up by the Spanish Ministry for Ecological Transition and Demo-
graphic Challenge (MITERD). The OECC delivered the Reduzco
seal certificate to FCC Medio Ambiente at a ceremony held at
the company’s corporate headquarters in Las Tablas (Madrid)
on 4th December. This accreditation joins the previous Calculo
(‘I calculate’) seal, which since 2013 has endorsed FCC Me-
dio Ambiente’s registration in the aforementioned process and
which has been maintained ever since.
Segovia City Council and FCC Medio Ambiente have signed the
renewal contract of municipal solid waste collection and street
cleansing services for a 10-year period, which represents an
order book value of €56 million. FCC Medio Ambiente’s rela-
tionship with the city of Segovia goes back to 1996. To serve
the 51,964 inhabitants the service has a fleet of 17 brand new
vehicles including 15 Compressed Natural Gas (CNG) lorries.
As for the street cleaning service, which covers more than 300
kilometres of streets, the company will have 40 vehicles and
specialised machinery. FCC Medio Ambiente will have a staff of
124 employees to carry out the different services.
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FCC Medio Ambiente Spain
104
FCC Medio Ambiente pioneer in obtaining AENOR’s
certification as a Healthy Organisation in all its
locations in Spain
FCC Medio Ambiente grows in the municipal services
market in northwest Spain with the award of the A
Coruña street cleaning contract
FCC Medio Ambiente is the first company in its sector in mi-
grating to AENOR’s new SIGOS (Healthy Organisation Manage-
ment System) model. The wide scope of the certification covers
nearly all FCC Environment’s activities in Spain. This distinction
highlights all those initiatives that the entity is carrying out in
relation to occupational safety, health promotion, sustainabili-
ty and social responsibility with the community where it oper-
ates, showing its commitment to continuous improvement. The
SIGOS model is a very simple tool for its application and inte-
gration, and of great effectiveness in the management of safe,
healthy, sustainable and committed companies, regardless of
their size, industry and geographical location.
A Coruña City Council has awarded a joint venture led by FCC
Medio Ambiente the new contract of street cleaning for 8 years
with an order book value of almost €105 million. In order to serve
the more than 245,700 inhabitants and cover 617 kilometres of
city streets, the new service will have a fleet of 19 vehicles and
specialised machinery, both electric and Compressed Natural
Gas (GNC), with “Zero Emission” or “Eco” rating and a total
workforce of 209 employees. As new features the service was
reinforced in the city´s busiest areas, noise emission has been
reduced due to the use of electric machinery and the city’s litter
bins were renewed.
Renewal of the waste collection and street cleansing
service, and the vehicle-towing service in Oviedo
Oviedo City Council and FCC Medio Ambiente signed the re-
newal of the contract for waste collection and street cleaning for
a 5-year period. At the same time, it was carried out the legal
extension of the vehicle-towing service contract for the same
period. The achievement of both contracts represents an order
book value over €102 million. FCC Medio Ambiente’s relation-
ship with the city of Oviedo goes back to 1967, and since that
year the firm has been providing service continuously. To serve
the 220,000 inhabitants, the collection service has a fleet of 43
vehicles, including 31 Compressed Natural Gas (CNG) lorries.
As for the street cleaning service, which covers 384 kilometres
of streets, the company has a fleet of 104 vehicles and special-
ised machinery. To carry out the different services, the compa-
ny will have a staff of 367 employees and, as part of its social
commitment to inclusion and gender equality, will incorporate a
minimum of three women per year into the job pool.
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FCC Environment Portugal
FCC Ámbito
IBERIA
105
Awarded the waste collection and street cleansing
services in the Sousa Valley
Renewal of the electrical waste management contract
in Valencian Community
Soil decontamination works in Postiguet Beach
(Alicante)
FCC Ámbito has carried out the soil decontamination work at
the Postiguet Beach in Alicante in an area affected by hydrocar-
bon contamination from an old pipeline that ran along the sea-
front, as a result of a storm. The company proceeded to install
a barrier to intercept and pump out the contaminating flow, to
selectively excavate the affected sand with strong measures to
mitigate the effect on the environment and to put in place the
clean sand again. These works were carried out at the beginning
of the summer season and allowed the beach to maintain its
blue flag status and the full recovery of its use in the high season.
The City Councils of Felgueiras and Lousada have awarded
FCC Environment the contract for the collection and transport
of urban waste and street cleansing for a period of 8 years.
The total portfolio of the contract represents an order book val-
ue over €12.5 million and an investment of almost €2 million.
FCC Environment will serve more than 18,000 inhabitants and
will operate for the first time in the Intermunicipal Community of
Tamega and Sousa, in the north of Portugal.
FCC Ámbito renewed its contract with Ambilamp for the man-
agement of electrical waste at the region of Valencia for 3 years.
The service is provided from the company’s facility in Vall d’Uixó
(Castellón) and also includes the collection of lamps and flu-
orescent tubes. This service has been delivered continuously
since 2016. It is noteworthy Ámbito’s presence in the Waste
from Electrical and Electronic Equipment (WEEE) management
industry where, through a network of 4 plants, the WEEE is re-
covered to recycle the resources it contains.
Recovery work continues on the Arganda del Rey
lagoon (Madrid)
FCC Ámbito has continued working on a pioneering project in
Spain to recover a very characteristic and recurrent contamina-
tion at European level, such as the “acid tar lagoons” originating
as a result of the regeneration processes of used automotive
oils existing in the mid-20th century.
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UNITED KINGDOM
FCC Environment UK
106
The entry of investment group iCON in the FCC Group’s
Environmental Services area enhances its leadership
position in the United Kingdom
FCC and the investment group, iCON Infrastructure Partners
(iCON), have reached an agreement for the latter to acquire 49%
of the capital of FCC’s new subsidiary, Green Recovery Projects
Limited (GRP). The deal for the stake in the owner of five Energy
from Waste plants under FCC’s Environmental services division
in the United Kingdom is worth £198 million, giving the compa-
ny a total value, including its debt, of £650 million. The conclu-
sion of the agreement is subject to the corresponding regulatory
approvals. FCC Servicios Medio Ambiente Holding will retain
control over the new subsidiary and its full consolidation, in ad-
dition to 50% stake in the Mercia incinerator and 40% in the
Lostock incinerator. The inclusion of iCON in GRP will help FCC
to enhance its leadership position in the waste recovery sector
in the United Kingdom and the development of new treatment
plants, which are essential in succeeding in the ecological tran-
sition and boosting the circular economy.
FCC Environment reinforces its presence in the south of
United Kingdom with a new contract in Kent
FCC Environment signed a new contract for the manage-
ment and operation of 12 Household Waste Recycling Cen-
tres (HWRC) in the Mid and East Kent area for a 5 year period
with a possible 5 year extension. The total order book value is
£40 million. The contract started on the 1st November 2020.
The company will bring a range of benefits to the contract in-
cluding a dedicated haulage fleet and an experienced man-
agement team, with extensive knowledge and understanding
of operating both haulage and HWRC management. To date,
FCC Environment has been present in Kent with the contract
for the management of the Pepperhill transfer station and the
construction of its HWRC, which began in 2008. The company
also owns and operates the Allington Energy from Waste facility
(EFW), which services the entire county.
Midlothian City Council appoints Swedish energy
firm Vattenfall as preferred bidder for long-term joint
venture partnership
Midlothian City Council, has appointed Swedish state-owned
energy company Vattenfall as a leading candidate to become
its 50/50 partner to set up an innovative new Energy Services
Company (ESCo). The new entity will focus on delivering a wide
range of energy projects, the first of which will be an innovative
fourth-generation, low-carbon district heating network to the
new Shawfair town in the north of the city area, on the outskirts
of Edinburgh. The network will benefit from heat supplied by
FCC Environment, which operates Edinburgh and Midlothian
Councils’ state-of-the-art Energy from Waste facility (EfW) near
Millerhill. The EfW is fuelled by waste collected by Midlothian,
East Lothian and Edinburgh councils that would otherwise go
to landfill.
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UNITED KINGDOM
FCC Environment UK
107
New equipment to speed Buckinghamshire´s recycling
(England)
Planning Application approved for FCC Environment´s
new Energy from Waste facility in Drumgray (Scotland)
FCC Enviornment has introduced 9 loading machines for Buck-
inghamshire County Council’s Household Recycling Centres
and 5 new roll-on/off vehicles that will ensure that waste and
recycled materials from the centres reach the right destination.
The 5 new vehicles will speed the process of getting full skips
to compost and recycling destinations or to Greatmoor Energy
from Waste facility (EfW) and bring empty skips back. The cost
of these new vehicles is £1.8 million, providing an annual saving
of £1.2 million across the waste management service. The new
vehicles have the latest Euro VI engines with Adblue exhaust
systems to make them more efficient and reduce emissions.
They are fitted with real-time monitoring systems that allow the
County Council to track and improve fuel efficiency.
North Lanarkshire Council´s Planning Committee unanimous-
ly approve the planning application for the development of the
Drumgray Energy Recovery Centre (DERC) near Greengairs.
Following the approval, the company will seek to bring the de-
velopment of the DERC forward as soon as possible, with an
anticipated full-operational date of summer 2024.
The DERC, which represents a major investment of over £250
million, will significantly improve the way FCC Environment
deals and treats residual waste, in line with the Scottish Gov-
ernment strategy and North Lanarkshire Council’s aspirations.
Furthermore, the facility has the capability of exporting up to
25.5MW of electricity, as well as the potential of exporting heat
to buildings in the local area such as commercial developments,
existing and proposed housing developments, schools and
hospitals.
FCC Environment UK awarded several accolades during
the year including the prestigious British Safety Council
Sword of Honour 2020
FCC Environment won the prestigious Sword of Honour 2020
from the British Safety Council. The company was one of the
only 66 organisations worldwide to achieve this distinction,
which is awarded to companies which have demonstrated ex-
cellence in the management of health and safety risks. In order
to compete for the Sword of Honour, an organisation first have
to achieve the maximum five stars in the British Safety Coun-
cil´s management Audit Scheme in the period August 2019 to
November 2020. It has also demonstrated to an independent
panel of experts that it has achieved excellence in their Health
and Safety management across the business, from the shop
floor to the boardroom.
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CENTRAL AND EASTERN EUROPE
FCC Environment CEE
108
Finalisation of the deodorisation System of the
composting plant in Zabrze (Poland)
Renewal of the operating period for the extension and
expansion of the Arad landfill in Romania for 10 years
The air deodorisation of the composting plant at the Zabrze
environmental complex has been successfully completed. The
aim of the investment, which started in September 2018, is that
the entire composting process of biodegradable waste generat-
ed from municipal waste (which currently takes place partly out-
doors), will be carried out in a hermetic hall. The post-process
air will be directed to the biofilter, where it will be cleaned and
stripped of all harmful substances and prevented from reaching
the atmosphere. The value of the investment exceeds €3 million
(PLN 15 million).
FCC Environment has signed the renewal of the operating con-
tract for the extension and expansion of the Arad landfill for a
further 10-year term. The contract, which was signed in 2002
for 20 years, will now run until 2032. The company transformed
the local open-air landfill into an official regional landfill, and later
on started the operation of waste transfer stations and one of
the composting plants, all serving the County of Arad. During
these years FCC Environment has become one of the most
important partners of the local community in waste manage-
ment issues and has continuously strengthened its position as
an essential partner in the new Integrated Waste Management
system of Arad County.
FCC Environment Czech Republic renewed for 3 years
the contract with Hyundai Motor Manufacturing
Czech s.r.o.
FCC Environment has renewed for 3 years the contract for the
complex waste management of Hyundai Motors Manufacturing
Czech s.r.o. across the whole Czech Republic which includes
the collection and disposal of all waste, as well as the treatment
of recovered raw materials (RWM). Hyundai is one of the leaders
in the automotive industry in Czech Republic and has been an
FCC Environment client since its establishment in the country in
2008. In 2020 it represented a turnover of more than €2 million.
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FCC Environment CEE
109
Official opening of Biala Landfill in Poland: investment
in ecology, health and safety of residents
Awarding of the solid urban waste collection and
treatment services in Bytom (Poland)
New reverse-osmosis leachate treatment plant at Gyál
landfill (Hungary)
On September 23, the new asbestos landfill was official-
ly opened in Biala (Wieluń poviat, Lodz province); a new FCC
Environment investment long awaited by the local authorities.
Thanks to the new facility it will be possible to store hazardous
waste in a completely health safe and environmentally friendly
way. The new landfill has a storage basin of more than 2 hec-
tares, social rooms, offices, manoeuvring yard and weighbridge
with accompanying infrastructure. FCC Environment has exten-
sive experience in the field of specialized waste storage and dis-
posal of hazardous waste. In Poland it already operates a landfill
for hazardous waste, including asbestos, in Radomsko, and is
also operating two municipal landfills. This investment solves the
problem of illegal asbestos dumping faced by Biala municipality
authorities.
FCC Environment was awarded the contract for the collection,
transportation, treatment and selective collection of solid urban
waste of Bytom in the province of Upper Silesia (Poland). The
contract also covers the collection of bulky waste and the mu-
nicipal recycling centre. The company will also collect construc-
tion waste by providing BIG BAG containers and bags.
To serve the more than 164,000 inhabitants of this city, the ser-
vice will have a staff of approximately 130 people and 27 spe-
cialized vehicles for various purposes, such as compactor-col-
lectors, open-box vehicles with crane for BIG-BAG containers or
vehicles equipped with washing machines.
Early 2020, following a trial period when all data were thor-
oughly controlled and processes were refined, the two-stage
reverse-osmosis plant at Gyál landfill site in Hungary, equipped
with ion exchangers, went into full operation.
The system has already been working for 1,500 hours and has
treated 10,000 liters of leachate, resulting in an economic pro-
duction of 4,600 liters of absolutely clean water, which goes
into the tank where rainwater is also collected. The purification
system is not only environmentally friendly, but also represents
an enormous saving in leachate treatment costs, the amount of
which is increasing due to the expansion of the landfill’s surface
area and the increase in treatment prices of the subcontractors.
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USA
FCC Environmental Services
110
Waste Collection contract in the city of Edgewood
(Florida)
Operations begins for Volusia County (Florida)
Waste collection contract for Volusia County municipal
facilities (Florida)
The city of Edgewood, in Orange County, Florida, awarded FCC
Environmental Services the urban solid waste collection contract
for a period of up to 20 years and a total backlog of $12 million.
This award also includes the franchise to collect all the city´s com-
mercial solid waste. As Edgewood is located in Orange County
where the company already provides services and has a signifi-
cant presence with a large yard and its own Compressed Natural
Gas (CNG) station, the fleet for this new contract will share the
same depot and will also be gas powered. FCC continues with
its commitment to sustainability, with significant environmental
advantages and providing important operational synergies to the
contract. With this award, FCC Environmental Services consol-
idates its presence in the State of Florida, where it already pro-
vides collection services to more than one million inhabitants.
FCC Environmental Services began operations in Volusia County
in April 2020. The new urban solid waste collection contract,
which will serve 45,000 households, has a term of 7.5 years,
with a possible 7-year extension, and represents a potential
book value of up to $90 million. The contract has a staff of 45
employees and a fleet of 35 new Compressed Natural Gas
(CNG) vehicles, fuelled through an on-site fuel compressor sys-
tem. Volusia represents the fourth FCC Environmental Services’
contract in Florida, the second one operating with CNG vehicles,
and is based in Daytona Beach Township.
Volusia County, located in the East coast of Florida, has award-
ed FCC Environmental Services the contract to collect the solid
waste from its public facilities. The contract started on March 1,
2021, and is serviced from FCC’s Daytona Beach yard, which
is currently providing residential collection services for Volusia
County, with a backlog of more than $77 million.
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USA
FCC Environmental Services
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Awarded the contract for the transportation of
recyclables in the City of Omaha, Nebraska
Commissioning of the service in Omaha Nebraska
Renewal of the recyclable management contracts in
Huntsville and Laporte (Texas)
The city of Omaha (Nebraska) has awarded a new contract to
FCC Environmental Services for the transportation of all recycla-
ble materials for a period of 5 years and a value of $2.5 million.
This contract is additional to the two existing agreements with
the City from 2019, one for the 10-year collection of residential
solid waste with possible extensions and a backlog up to $560
million; and another for the collection of seasonal yard waste.
On 30th November, FCC Environmental Services started de-
livering urban solid waste and pruning waste collection, and
household recycling centre management in the city of Omaha,
Nebraska. The new contract represents an order book value of
more than $500 million for a period of up to 20 years.
The company will provide the service with a fleet of 69 vehicles
powered by Compressed Natural Gas (CNG), with the important
benefits of reducing the environmental impact and carbon foot-
print in the city. In addition to its important size, the contract has
a special strategic importance for FCC, since it will serve as a
development pole for its future expansion in the Midwest.
FCC Environmental Services has renewed for a year the recycla-
ble processing contracts for the cities of Huntsville and Laporte
(Texas). The processing of materials will be carried out at the
company’s material recycling facility (MRF) in Houston, which
has been operating since April 2019 and was honoree by the
NWRA as the Best Recycling Facility 2020 of the United States.
FCC has processed nearly 200,000 tonnes of materials in its
Texas recycling facilities.
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Excelence and sustainability
112
The following graph shows the historical evolution of certifications
and accreditations obtained in Spain by FCC Medio Ambiente:
Service excellence
FCC Medio Ambiente has been helping municipalities for over
110 years with the management of services they offer their cit-
izens. The company is aware of the importance these servic-
es have for the development of the cities, and this constant
concern for customer satisfaction has led it to stablish a com-
mitment to excellence which has been certified by entities of
recognised prestige outside the organisation. In today’s society
it is fundamental to consider not only customers, but all stake-
holders, so the company’s commitment to excellence is mani-
fested in a Management System that covers other areas, such
as caring for the environment, seeking efficiency in services, the
health and safety of workers, innovation and, especially, work-
ing towards the social and labour integration of the disadvan-
taged groups that may be at risk of exclusion.
Since 1997 FCC Medio Ambiente has been implementing dif-
ferent aspects of the Management System and certifying them
with external organisations, whether related to quality and
environmental or occupational health and safety procedures,
or about energy efficiency, healthy organisation or even tour-
ist quality. It was the first company in the sector to obtain the
SIGOS Healthy Organisation certificate and its protocols against
COVID-19 have recently been certified in accordance with
AENOR requirements.
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Milestones in terms of Excellence
113
Ámbito: extension of the EMAS register for the Vall d´Uixò
(Castellón) facility, seventh industrial waste treatment plant
to achieve this registration.
Spain
First Company in its sector to obtain the SIGOS (Health Or-
ganisation Management System) certificate from AENOR.
Spain: certified for the second time with the “Reduzco-
Calculo” (I reduce – I calculate) seal by the Spanish Office
for Climate Change (Oficina Española de Cambio Climático,
OECC) from the Ministry for Ecological Transition and De-
mographic Challenge.
Achieved the AENOR certification of Protocols against
COVID-19.
Ámbito: UNE-EN-ISO 9001:2015 certification is achieved for
the affiliate company Mediciones Comerciales Ambientales,
S.L. incorporating the activity of hazardous and non-hazard-
ous waste management as a trader.
Sara Afu-Clackett, participant in FCC Environment UK’s
‘Graduates’ programme.
United Kingdom
FCC Environmental Graduates Programme. Despite the dif-
ficulties caused by the pandemic, waste and recycling com-
panies, including FCC Environment UK, have once again
supported National Apprenticeship Week held from 8-14
February. The programme is designed to give new gradu-
ates hands-on experience and training in a range of waste
management projects. Each graduate is assigned a mentor
to guide them every step of the way and is awarded quali-
fications relevant to their specific role, from mechanical and
electrical to sustainable resource management and busi-
ness administration.
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Sustainability
In 2020, the resources invested by FCC Medio Ambiente Ibe-
ria for the development and implementation of initiatives whose
benefits directly or indirectly reverted to society have resulted in
an economic valuation of €2.6 million.
According to the classification criteria, 66% of the resources
have been dedicated to environmental initiatives and the re-
maining 34% to social actions. However, in terms of the dis-
tribution of initiatives in numbers, social actions predominate
with 62%.
114
Sustainability
highlights 2020
During 2020, the following achievements in sustainability
should be highlighted:
Sustainable activities and projects imply a balance in the
economic, social and environmental spheres of the com-
pany. To achieve this balance, FCC Medio Ambiente has
developed a sustainability strategy with a 2050 horizon,
which has recently been presented and will be disseminated
externally throughout 2021.
In terms of Climate Change, FCC Medio Ambiente achieved
an average emission intensity reduction of 5.39% compared
to the three-year period 2016-2018, for scopes 1, 2 and 3,
on its way to reaching carbon neutrality by 2050.
In addition to the aforementioned improvements in the
waste treatment facilities, the improvement of the Carbon
Footprint is influenced by the increase of more efficient ma-
chinery with a total of €3,688,455 invested in electrical
machinery compared to the €2,800,000 invested in 2019.
In 2020, the coronavirus pandemic and the lockdown has
increased the sense of belonging and collaboration. A total
of 357 insertions of people at risk of exclusion have tak-
en place representing a strong commitment with the local
communities affected.
From an occupational safety point of view, the accident re-
duction plan was implemented with great success in 2020,
with a reduction of almost 30% in the frequency rate
and almost 20% in the severity rate.
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A road map that includes
very demanding goals and
commitments with a high level
of added value for the company
and society as a whole
2050 Sustainability strategy
During 2020 FCC Medio Ambiente has laid the founda-
tions for future business development, establishing its
Sustainability Strategy with a vision to 2050 aimed to
all activities in Spain and Portugal. It is an ambitious 30-
year project, reflecting the company´s commitment to
support compliance with the Sustainable Development
Goals (SDG) and tackle economic, social and environ-
mental challenges on a global scale.
Access here the video on FCC Medio Ambiente´s 2050
Sustainability Strategy.
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Aligned with the 2030 Agenda:
A new strategy to 2050
The new strategy is a roadmap that integrates very demanding
environmental, social, excellence and good governance
commitments which have high added value for the company
and society as a whole.
Circular economy and climate protection
FCC Medio Ambiente Iberia has continued with the inno-
vation projects launched in the area of the circular economy
and the use of clean energy, which are described in the cor-
responding chapter, and measures have been taken to raise
awareness of the need to improve waste treatment facilities
through participation in different forums: UNE, Chamber of
Commerce, MITERD and the UN’s Global Compact.
Achieving carbon neutrality, 100% “ECO” or “Zero emis-
sion” vehicle fleet or increasing investment in R&D&I up to
1% of annual revenues, are some of the objectives of the
climate protection goals for 2050.
Water and biodiversity protection
Social and employment objectives
FCC Medio Ambiente has set as a key objective to encour-
age the rational and efficient consumption of water and to
promote the use of water from alternative sources. By 2050,
the goal is for 100% of the water used to come from these
sources. It therefore promotes the use of reclaimed water
and water-saving technologies, mainly in watering parks
and gardens and in street washing.
The company is known for its involvement in the protection
of biodiversity in the urban context through its ground main-
tenance activities (3,825 ha of green areas and 786,355
trees managed), as well for beach and coast line cleaning
services, which contribute to improving the quality of the
Spanish coastline lodging marine fauna.
In line with SDG3, SDG5, SDG8 and SDG10, the company
makes a series of commitments to employees linked to the
generation and retention of talent, diversity and inclusion,
equal opportunities and occupational health and safety. The
company aims to achieve gender equality by 2050 and will
develop the Female Mentoring Program. A reduction of ac-
cident rates to 50% is expected by the same date.
Excellence and good governance objectives
FCC Medio Ambiente, in line with SDG9, SDG11 and
SDG12, is a benchmark in terms of the implementation of
systematic and homogeneous work guidelines within the
organisation, which enable it to make its processes efficient,
as indicated in the Excellence section.
With regard to good governance, compliance controls fo-
cused on the fight against corruption and other crimes, and
the encouragement of transparency in the value chain, are
maintained and improved.
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Other sustainability milestones
117
FCC Medio Ambiente winner of the EBAE Awards
2019/2020 for its 100%-electric, industrial chassis-platform
for urban service vehicles.
El Puerto de Santa María City Council and FCC Medio Am-
biente presented the Chamaeleo Biodiversity Conservation
Project, financed by FCC at the Coto de la Isleta Municipal
Environmental Education and Activities Centre (CEAAN).
FCC Medio Ambiente selected as one of the “101 Business
FCC Medio Ambiente´s ie-Urban wins Spain´s Ecological In-
Climate Initiatives” for 2020.
dustrial Vehicle of the Year 2021 award.
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R&D&I projects have involved
an investment of €2.34
million in 2020, a 2.63%
increase over 2019
Innovation and technology
Despite the complicated year 2020, mainly due to the anoma-
lous situation in which companies, suppliers, collaborators, re-
search entities and public institutions have been immersed as
a result of the COVID-19 pandemic, FCC Medio Ambiente has
not stopped working on innovation projects, some of which will
come to light in the near future.
At national level, a new Spanish Strategy for Science, Tech-
nology and Innovation (EECTI) 2021-2027 was approved in
2020, including activities aimed at solving the problems caused
by COVID-19 and stresses the importance of consolidating and
enhancing science and innovation as a tool for the social, eco-
nomic and industrial reconstruction of our country.
It should also be noted that in September 2020, the material
recycling facility in Houston (Texas), built, financed and man-
aged by FCC Environmental Services, and operational since
April 2019, has been honoured with the Best American Recy-
cling Facility of the Year 2020 award by the NWRA (Nation-
al Waste and Recycling Association). FCC already won the
same award in 2017 for its facility in Dallas (Texas), allowing it to
become the biggest recycling company in Texas.
For another year, FCC Medio Ambiente upheld the certification
of its R&D&I Management System, in accordance with the UNE
166002 standard.
R&D&I projects have involved an investment of €2.34 million in
2020, a 2.63% increase over 2019, and are classified into four
knowledge areas:
Vehicles, mobile machinery and facilities
Management and recycling of waste - Circular Economy
Information and Communication Technologies
Sustainable development
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Most significant projects
of the R&D&I Management System
VEHICLES, MOBILE MACHINERY
AND FACILITIES
Projects associated with vehicles and mobile
machinery
During 2020, FCC Medio Ambiente has developed alternative
channels and means in order to continue working with its col-
laborators and thus be able to launch new research projects,
most of which will have real prototypes along 2021.
Design and manufacture of a new rear-loading compactor
collector, non-existent on the market, of very small dimen-
sions, with a 10 m3 double-compartment bodywork with
pure electric propulsion and body drive and battery self-re-
charging system by Compresses Natural Gas (CNG) engine
on a 2.2 metres-wide, special narrow chassis and with a
legal payload of over 2 tonnes of waste.
Final work on obtaining pure electric chassis, 2 metres wide
and 18 tonnes GVW (registrable with 19 tonnes), which is
not existing on the market, and whose first prototype will be
fitted with a tank for watering and washing streets, pave-
ments and pedestrian areas. FCC Medio Ambiente has
worked with a European manufacturer of new-generation
lithium-ion batteries to install them on this first prototype,
and which may also be used in other diverse equipment.
Development and start of production of the first unit of a new
2 metres wide, side-loading compactor collector on a com-
pressed-natural-gas chassis, also of very small dimension
(2 metres wide and a maximum of 7 metres long), which al-
lows a legal payload of 5 tonnes of waste and which covers
a range of side-loading collectors non existing to date.
Development and manufacture of a new vehicle called FASE
3: Unit of very small dimensions for collection in areas of
maximum access difficulty on a pure electric chassis, which
will incorporate a system of four 240-litre bins for 4 different
fractions with a loading and unloading system on the chas-
sis platform by means of a set of pulleys and belts for mini-
mum operator effort, with a waste hopper for a fifth fraction.
119
FCC Medio Ambiente has also laid the grounds for establishing
consortiums with other companies, technological organisations
and universities that will enable it to undertake two additional
lines of research in 2021, which will be materialised in new pro-
jects eligible for public support over the next 3-4 years. The first
one is dedicated to street cleansing machinery which, by incor-
porating certain automatisms, aims to make the street cleans-
ing service cheaper than with current machinery; the second
line seeks to take advantage of synergies in the commitment to
new and future energy vectors that are completely respectful of
the environment, with the ambitious objective of being applied
to any equipment or machine that provides urban services.
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Drainage system cleaning tank.
CNG Station Omaha, Nebraska (USA).
Further progress on the EU Project “Assets4rail” by
FCC Environment Austria
FCC takes place in the 30-month EU research project
“Assets4rail” since tend of 2018, to clean drainage systems in
railway tunnels without blocking traffic.
During this EU project, the “HIPPO 1,500m” system is being
developed out of the “HIPPO 600m”, with the aim of extending
from 600 to 1,500 metres the advantages of this high-pressure
head cleaning system with built-in camera for simultaneous in-
spection of 600-metre-long circular tunnel drainage ducts for
the Austrian Railway Company (ÖBB). It is intended to reach
lengths of up to 3,000 metres. The cleaning system offers the
great advantage that tunnel traffic can continue almost uninter-
rupted, thus avoiding traffic jams. It also represents a significant
cost reduction for customers compared to current cleaning and
inspection solutions.
Projects associated with facilities
New state-of-the-art Compressed Natural Gas Station
in Omaha
In October 2020, FCC Environmental Services signed a three-
year agreement with New York-based compressed natural gas
marketer TruStar, which led to the construction of a new, state-
of-the-art compressed natural gas (CNG) station in Omaha in
just six months.
TruStar meets the requirements for the Low Carbon Fuel Stand-
ard (LCFS) in California, allowing for a credit in the value of 1
metric tonne of CO2 reduction compared to the baseline CO2
emission. In meeting the Renewable Identification Number (RIN)
under the US EPA standards, FCC will receive 5% of the value
of all RINs for the life of the TruStar agreement.
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MANAGEMENT AND RECYCLING
OF WASTE - CIRCULAR ECONOMY
Leader in biomethane: Green gas
FCC Medio Ambiente commits to turn the “waste treatment
centre” into a “biomethane fuel producer” with the capacity to
supply all types of vehicles. To do this, it has started research
with the development of some projects financed under the EU
LIFE programme:
LIFE LANDFILL BIOFUEL (LIFE18 ENV/ES/000256: Inte-
gral management of the biogas from landfills for use as
vehicle fuel) (2019-2022)
Project official website: https://www.landfillbiofuel.eu/en/
Project developed by a consortium made up of seven entities
(FCC Medio Ambiente as project leader, Sysadvance, Gasnam,
Cartif, Seat, Iveco and University of Granada), co-financed by
the European LIFE programme and approved in June 2019.
The project has a budget of €4.67 million and will last 3.5 years.
The Project aims to upgrade landfill biogas to produce biome-
thane suitable for vehicle use. The objective is a more efficient
management by obtaining biomethane from a native and abun-
dant energy source.
It is planned to generate enough biomethane to supply annually
93 heavy-duty vehicles and 2,036 light vehicles at the Ecocen-
tral Environmental facility, operated by FCC in Granada. Subse-
quently, it will be replicated in other facilities in Europe.
FCC Medio Ambiente commits
to turn the waste treatment
centre into a biomethane
fuel producer
Integral management of the biogas from landfills for use as vehicle fuel.
Charging station Himberg (Austria).
Installation of two new electric charging stations in
Himberg (Austria)
In May 2020, FCC Environment installed the first two charging
hubs at the base in Himberg, Lower Austria. These two new
stations include ‘P30 X 22kW’ charging boxes, mounted on a
double bracket, and allow for additional points when needed
in the future. Charging stations for electric vehicles are also
planned to be introduced at the Linz, Graz and Klagenfurt bas-
es in 2021.
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Development of circular economy
and decarbonisation of transport
METHAmorphosis (LIFE 14/CCM/ES/000865: Waste
streams treatment for obtaining safe reclaimed water
and biomethane for transport sector to mitigate GHG
emissions) (2015-2020)
LIFE
INFUSION
(LIFE19 ENV/ES/000283:
Intensive
treatment of waste effluents and conversion into useful
sustainable outputs: biogas, nutrients and water) (2020-
2024)
Project official website:
https://www.life-methamorphosis.eu/en/home
Project official website:
https://eurecat.org/en/portfolio-items/life-infusion/
The METHAmorphosis project, funded by the EU’s LIFE pro-
gramme, is an example of exploiting synergies in the FCC Group,
between FCC Medio Ambiente and Aqualia. The project ended
in 2020, reaching all the objectives pursued. Performance tests
with biomethane have been successfully carried out on FCC
Medio Ambiente waste collection vehicles. The European Com-
mission has placed METHAmorphosis as an example of the LIFE
programme and appears within the five best policies related to
climate change in the EU, which meant a budget of €200 billion
along the period 2014-2020.
The objective was to develop an innovative process for treat-
ing effluents and obtaining biofuel (biomethane) from municipal
waste as well as agro-industrial waste.
Project developed by a consortium in which FCC Medio Ambi-
ente participates through its subsidiary in Ecoparc del Besós,
EBESA, together with seven entities (Fundació Eurecat as pro-
ject leader, AMB, AMIU, Aqualia, Cogersa, Detricon BVBA, EBE-
SA and IRTA), co-financed by the European LIFE programme.
It has a budget of €3.12 million and will last 4 years. Once this
period is over, two replications will be carried out in Spain.
The main objective of LIFE INFUSION is to demonstrate, with a
circular economy vision, an innovative scheme for the recovery
of resources (biogas, biofertilizers and reclaimed water (RW))
from effluents in municipal management through an almost zero
discharge process.
Technical tests for using biomethane as fuel in heavy-duty vehicles in
METHAmorphosis Project.
LIFE Infusion scheme.
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Leading a circular economy for plastic
FCC Medio Ambiente’s strategic objective is to avoid landfill dis-
posal of plastics contained in urban waste and reduce their pro-
cessing by energy recovery, both through the implementation
of innovative recycling processes. This new line of research has
been under development since 2018 at Ecocentral environmen-
tal complex in Granada:
Life4Film treatment line in the Ecocentral plant, in Granada (Spain).
LIFEPLASMIX (LIFE18 ENV/ES/000045: Plastic Mix
Recovery and PP& PS Recycling from Municipal Solid
Waste) (2019-2022)
LIFE4FILM (LIFE17 ENV/ES/000229 Post-consumption
film plastic recycling from municipal solid waste). Spain
and Germany (2018 –2021)
Project official website: http://lifeplasmix.com/en/plasmix/
Project official website: http://life4film.com/en/4film-en/
Project developed by a consortium led by FCC Medio Ambiente
with other seven entities (Stadler, Lindner, Pellenc, Andaltec,
Anaip and University of Granada), co-financed by the European
LIFE programme and approved in June 2019.
The Plasmix Project aims to study the recovery and the flow
of the Mix of Plastics from municipal waste, searching for the
optimal recovery line for each type of material contained in such
flow (PP, EPS, and PVC). It has a budget of €5.33 million and
will last 3.5 years.
The main objective of LIFE4FILM, a project led by FCC Medio
Ambiente, is to avoid landfill or energy recovery of plastic film
(LDPE) present in urban waste through an innovative recycling
process on a semi-industrial scale using a 10,000 t/year capac-
ity recovery line at the Ecocentral plant in Granada, with the aim
of demonstrating its profitability and replicability at an European
level.
The project has a budget of €4.54 million and a term of 2.5
years. Once the project is finished, five replicas will be carried
out in other plants in Europe.
123
FCC Medio Ambiente implements
innovative recycling processes
to avoid landfill disposal of plastics
contained in urban waste
LIFE4Film scheme.
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The sustainable path in waste management:
optimisation of composting
Creation of new by-products and biomaterials
SCALIBUR (Scalable Technologies for Bio-Urban Waste
INSECTUM: (Recovery of urban by-products and bio-
waste through bioconversion with insects to generate
innovative products in strategic sectors)
Recovery)
Project official website: www.scalibur.eu
A CIEN (National Business Research Consortium) programme
from the CDTI (Centre for the Development of Industrial Tech-
nology), led by FCC Medio Ambiente, which involves imple-
menting an innovative urban bio-remediation recovery system
based on its bioconversion through insects in products with
a high added value for the industry (the human food sector,
nutraceuticals/pharma, animal feed, fertilisers and chemicals).
It proposes feeding insects with organic matter from selective
collection, organic matter recovered from MSW and digestate
from biomethanation.
SCALIBUR is a project from the Horizon 2020 edition, led by
ITENE (ES), in which FCC Medio Ambiente and Aqualia partic-
ipate as well as various entities from different European Union
countries.
carry out a comprehensive study on urban waste quality, logis-
tics and treatment systems and WWTP sludge to obtain new
by-products and biomaterials with a high added value for the
chemicals industry.
Prototypes will be rolled out in three pilot cities across Europe:
Madrid (Spain), Albano Laziale (Italy) and Kozani (Greece) to
The project has a budget of €10 million and will last 4 years.
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B-FERST Bio-based fertilising products as the best
DEEP PURPLE Domestic Extraction of Emerging Prod-
Waste gasification
practice for agricultural management sustainability
ucts with Purple Phototrophic Bacteria
RECYGAS Urban solid waste recovery through the pro-
Project official website: www.bferst.eu
Project official website: www.deep-purple.eu
duction of recycled Syngas
125
Objective: Integrate the recovery of biowaste in agriculture by
creating new mineral and organomineral fertilisers as well as
developing the corresponding nutrient mixtures for agricultural
application.
Objective: investigate, at a pilot scale, the integrated application
of the most innovative techniques in the management of the dif-
ferent effluents generated in an organic-waste treatment facility
(digestate, leachate and biogas), by applying purple phototropic
bacteria for the recovery of by-products, such as polyhydroxy-
alkanoates and hydrogen, single cells, or nitrogen and phos-
phorus for its use as fertilisers.
Project official website: www.energy.sener/es/proyecto/
recygas-valorizacion-residuos-solidos-urbanos-median-
te-gas-reciclado
Project subsidized by the Hazitek program of the Basque Gov-
ernment, with the support of the European Regional Develop-
ment Fund. FCC Medio Ambiente is working on this project in
partnership with the companies SENER, Ingeniería y Sistemas,
S.A. and ZABALGARBI, S.A. The research centres GAIKER,
TECNALIA, Institute of Carbochemistry of CSIC, CENER and
Institute of Chemical Technology of the Polytechnic University
of Valencia will also participate in this project.
Recygas is focused in the investigation of waste gasification
and enables the use of clean synthetic gas obtained from the
gasification process to start chemical synthesis routes or its use
in power generation with high efficiency cycles. The technology
incorporated in the project would allow to climb the waste man-
agement hierarchy pyramid to improve recycling.
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126
INFORMATION AND COMMUNICATION
TECHNOLOGIES
VISION
Within the framework of providing services to cities it is essential
to have ICT (Information and Communication Technology) tools
that support the provision of effective, efficient, sustainable and
comprehensive services.
The agile management of information must be a priority, that’s
why it’s necessary to gather the knowledge accumulated in the
management of services in order to offer the different agents
involved (administration, citizens, companies), the best prac-
tices, efficient processes and optimised communications with
modern and collaborative tools.
It is also needed for managing, through an integrated system,
all operational, legal, environmental, resources (material and hu-
man), validation and service matters that allow achieving excel-
lence in the workplace.
FCC Medio Ambiente has developed “VISION – Intelligent plat-
form for the provision of citizen services” which allows to meet
the objectives described, responding to the current require-
ments of our customers and being prepared for the future chal-
lenges that appear in the provision of the services.
VISION Operational Scheme.
Project CURSOR. Drone tests.
Recycling construction timber
Project CURSOR: Saving lives with drones
FCC Environment Austria is participating in this EU project,
which runs until the end of August 2022 and aims to optimise
search campaigns for people in emergency situations with the
latest technology using drones, miniature robots and new types
of sensors. FCC provides free of charge wood waste for the
search tests of the emergency services, thus supporting ISCC
(International Security Competence Center GmbH).
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127
During 2020 technological upgrades were undertaken to en-
sure performance, security and business continuity. The incor-
poration of processes into the platform went on and innovative
solutions for service management were implemented, among
them:
Hosting of the whole infrastructure of the platform in the
AWS cloud with system redundancy to ensure high availa-
bility both physically and geographically.
Integrating the “Map Server” functionalities in the system,
which allows an increased efficiency in the management of
geographic information.
Deployment of the Occupational Risk Prevention module,
fully integrated with the rest of the information in the system,
including the preparation of Risk Assessments, which is the
central point of the system.
Development of a “Facial Recognition” system focused on
offering reliable, agile and contact-free identification solu-
tions. It has been implemented on a personnel check-in and
check-out system.
Inclusion of the Environmental Footprint calculation in the
platform to provide more information on the company’s sus-
tainability system.
Incorporation of mobile inspection technology in the sewer-
age network.
On site street data survey when studying the urban environ-
ment as part of the making of a tender proposal.
Tax reporting system based on biogas generation data from
treatment operations.
VISION Software. Map servers.
VISION Software. Risks assessment.
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FCC ONLINE SOLUTIONS: applications that allow cus-
tomers the online request of container rentals and col-
lection services
FCC Environment CEE, aligned with the priorities defined in
its 2018 - 2022 strategy, is constantly developing and imple-
menting new online solutions and communication channels
with its customers. Saving time with simple solutions, flexibility
and great customer service - anytime, anywhere - are some of
the advantages of the online products offered by the compa-
ny. These products demonstrate that new B2C (Business to
Consumer) technologies can also be effectively integrated into
traditional businesses, such as waste management.
During 2020 FCC Environment introduced online new features
in Slovakia and the Czech Republic:
Odpadonline.sk. Online tool which allows customers to order
containers and ensure the safe removal and disposal of their
waste with just a few clicks
Vylož Smeti (Eslovaquia). App available on Google Play and
App Store that offers a digital calendar for tablets and mobiles
with the collection dates of the different types of waste and
where reminders can be set to notify collections in advance.
Naše Popelnice (Chequia). Updating of the portal for the elec-
tronic registration of waste container emptying. On this portal,
municipalities and citizens can view detailed data and track the
waste production and the container emptying, as well as the
waste weight of containers.
SUSTAINABLE DEVELOPMENT
In 2020, the Interreg SUDOE project “KET4F-Gas – Reduction
of the Environmental Impact of Fluorinated Gases in the Su-
doe Space through Key Enabling Technologies”, in which FCC
Ámbito takes part, has continued to be developed. The pro-
ject is financed by the European Regional Development Fund
through the European programme Interreg Sudoe, and aims
to respond to the challenges of climate change in the Sudoe
space. The project goal is to investigate alternatives that con-
tribute to the reduction of greenhouse gas emissions by de-
veloping and improving technologies to recover and replace
fluorinated gases.
KET4F-Gas Project poster.
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KET4F-Gas is coordinated by Universidade Nova of Lisboa, has
a duration of 3 years and an overall funding of €1.7 million. The
project is made up to 14 partners and 6 associates, from Spain,
France, Portugal and United Arab Emirates, among which are
universities, companies, waste and environmental agencies and
other public and private entities with the common interest of
dealing the Kigali Amendment.
FCC Ámbito’s participation in this project reflects its strong
commitment to sustainable development and the fight against
climate change through innovation, and the firm brings value
by offering its extensive experience in residual refrigerants, ac-
quired over 22 years in the management of discarded refrig-
erators at its plant in Pont de Vilomara (Barcelona). Along this
time, nearly 100,000 tonnes of refrigerators have been treated.
FCC Ámbito also has an exclusive facility for the reception and
reconditioning of gas-containing refuse for its shipment to final
management, located in Fustiñana (Navarra).
Bici Sendas (Cycle Lane) project
Among others, the specific objectives of FCC Ámbito include:
FCC Ámbito takes part in the Bici Sendas (Cycle Lane) CIEN
project, led by FCC Construcción. The project goal is to de-
velop a new generation of cycle lanes that will be sustainable,
energy self-sufficient, intelligent, decontaminating, integrated
and safe. They will also be modular, produced with sustaina-
ble materials and can be custom-designed to integrate various
technologies according to the needs to be covered.
The Project is expected to last 4 years (2019-2023), and is sup-
ported by the most advanced universities and technology cen-
tres: CSIC (Consejo Superior de Investigaciones Científicas),
University of Zaragoza, UPC (Universitat Politècnica de Catalun-
ya), AITIIP, CIMNE (International Centre for Numerical Methods
in Engineering), LEITAT and Luraderra.
1 Refuse valorisation:
• Select, adapt and characterise refuse with high Si/Al con-
tent for their potential incorporation as raw material in an
AAM agglomerant.
• To study the suitability of different wastes as support mate-
rials for the adsorption of hydrocarbons and for the immo-
bilisation of micro-organisms.
2 Development or biodecontamination techniques:
• Isolating strains of microorganisms from real environment,
determining their hydrocarbon degrading capacity, and in-
vestigating their immobilisation in the conditioned materials
to generate the biomaterial that will be incorporated into
the cycle lane modules.
3 Integrating the developed materials with other researched
technologies in the project, as a form of a final demonstrator.
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Aqualia provides technical
solutions and provides
quality services in all phases
of the end-to-end water
cycle to improve the well-
being of the people and
the communities where
it operates, preserving
water resources and the
environment and improving
management efficiency.
130
End-to-end
water
management
cycle
Activity in the Water area _ 139
Highlights in 2020 _ 142
Service excellence _ 143
Innovation and technology _ 154
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FCC_Annual Report_2020 | Business lines | End-to-end water management cycle
131
Aqualia is a specialist operator
that supports governments
and communities, providing
efficient solutions to water
supply, sanitation and
treatment problems.
Aqualia provides technical solutions and provides quality servic-
es in all phases of the end-to-end water cycle to improve the
well-being of the people and the communities where it oper-
ates, preserving water resources and the environment and im-
proving management efficiency, while using the United Nations
Sustainable Development Goals as a benchmark.
The rapid urbanisation process in emerging countries, as well
as the need to improve the population’s living conditions and
optimise a scarce resource during the current climate change,
leads governments, regions and industrial corporations to
search for specialised operators who can help them provide
effective solutions to the water supply, sanitation and treatment
problems.
Aqualia is one of the main international operators focusing its
management on specific business models and geographic ar-
eas. It is guided by a growth objective that contains profitability
criteria and integrates all the abilities of the value chain in the
water cycle: from the design of facilities to the management of
large investment projects in water systems.
The company provides services in Spain and also operates in-
ternationally, with projects in Europe, Latin America, the Middle
East and North Africa. Aqualia, which has 9,504 employees and
operates in 17 countries, includes Corporate Social Responsi-
bility (CSR) as part of its daily operations in an attempt to ensure
that the social and environmental aspects of its management is
not compromised by its business decisions.
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132
ACUAES renews its trust in Aqualia to manage its wholesale supply in Zaragoza (Spain).
Industry analysis
End-to-end water
management cycle
in Spain
2020 in Spain started out with the formation of a new coalition
government in Spain, before COVID-19 was officially declared
a global pandemic in March, resulting in the population being
placed in lockdown and all face-to-face work activities coming
to a standstill, with the exception of essential services, for a
period of three months.
These circumstances saw Aqualia implement the first measures
to adapt to the situation at the end of February, with the dual
objective of maintaining its business activities without affecting
this essential public service and guaranteeing the health and
safety of its workers at all times. This resulted in the roll out of
successive Contingency Plans, adapted to the situation at any
given time.
In Spain, there has been no outbreak of COVID-19 at any of
Aqualia’s production centres over the course of 2020, and ac-
tivities at DWTPs, WWTPs, supply and sanitation networks,
laboratories, etc. have continued throughout the crisis. These
efforts resulted in the company receiving a letter of thanks from
the Minister for the Ecological Transition and the Demographic
Challenge for its commitment.
These new circumstances required the company to adapt its
technological solutions to enable its employees to work from
home, enhance stock control for essential products, establish
special action measures at sports centres, reinforce remote
customer service channels as physical customer service loca-
tions were forced to close, in addition to undertaking specific
campaigns to communicate with customers and local author-
ities, while ensuring compliance with all the necessary health
and safety measures.
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133
In terms of tariff billing, the first quarter of the year saw the
volume of retail water billed up on the same period in 2019
by 0.7%. However, as lockdown measures were enforced in
response to COVID-19, in mid-March retail volumes dropped
across all regions by approximately 4,2% for the second quar-
ter of the year as a whole. From the third quarter of the year
onwards, and the gradual return of economic activity, volumes
recovered across all regions, with the exception of the Canary
Islands, the Balearic Islands, Costa Brava and the coastal areas
of Malaga and Cadiz. In particular, in the Balearic Islands, the fall
in billed volume for the year came to 14.9% and in the Canary
Islands to 8.8%.
At year-end 2020, on a like-for-like basis (without including the
new and completed contracts), the billed volume to household
customers dropped by 1.2% and the billed amount grew 1.7%.
Wholesale billed volumes dropped by 7.9%. The billed volume
as a whole (excluding regional fees) fell by 2.4% and the billed
volume is down by 1.4% on 2019.
In terms of commercial activity, despite the difficulties caused
by the pandemic that have resulted in a significant fall in new
tenders, the year can be considered successful, with several
milestones worth specific mention:
The five-year extension of the concession arrangement in
the city of Vigo, Aqualia’s biggest contract. The procure-
ment volume came to 259 million euros and a plan for in-
vesting in service improvements will be prepared for the
sum of 40.2 million euros. This success has consolidated
Aqualia’s leadership position in the Spanish market.
New contract to provide treatment services to more than 130,000 residents in Aragon (Spain).
this will allow us to distribute 20 hm3 water per year, across
a region that suffers a high level of water stress, providing
revenue of 15.9 million euros per year.
When it comes to Design and Construction, Aqualia has
been awarded the design, construction and operation of the
industrial wastewater treatment plant for the petrochemical
complex in Tarragona, worth 35.6 million euros.
Elsewhere, municipal concession arrangements have been
extended and renewed upon their maturity, with a loyalty rate
of close to 100% and a portfolio worth more than 338 million
euros.
As regards institutional and legislative aspects, the Ministry
for the Ecological Transition and the Demographic Challenge
(MITECO) has focussed its efforts on producing the “Green
Book of Water” and approving the National Plans for Adapting
to Climate Change and Energy and Climate, both for the 2020-
2030 period, and the publication of the National Water Treat-
ment, Sanitation, Efficiency, Savings and Reuse (PLAN DSEAR).
Throughout 2020, the Water Urban Cycle Board, on which the
Ministry, business associations, trade unions and users are
represented, has remained active as the starting point for the
future Spanish Observatory of Urban Water. Also worth special
mention was Parliament’s decision to suspend the application
of the Law on Budget Stability during 2021 and 2022, which will
allow town and city councils with a cash surplus to designate
surpluses to the undertaking of investments. We expect that
this will speed up investments in water resources.
The acquisition of desalination plant assets, irrigation pools
and the distribution network of Rambla Morales in Almeria.
This infrastructure, following the investment in updates and
commissioning due to take place in 2021, will allow us to
distribute desalinated water to the cities of Almeria and Nijar,
and the irrigation associations in the area. At full capacity,
In terms of operations, the contracts of the company acquired in
2019, Agua y Gestión C.I., S.A. have now been fully integrated
into Aqualia’s territorial and legal structure, with the contracts in
San José del Valle (Cádiz) and Huéscar (Granada) having been
expanded, meeting the forecasts as regards profitability made
at the time of the company’s acquisition.
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Likewise, there has been a greater focus on reducing costs
linked to customer management through fraud prosecution pol-
icies for consumption, the direct debiting of bills and control of
bank fees, and the reduction of on-site assistance and moving
this to other channels (telephone, social networks and online).
In terms of digitalisation, the Dénia and Toledo technology cen-
tres have been commissioned, where Aqualia Water Analytics
(AWA) is being developed; this integrated digital water service
management tool makes it possible to manage incidents, is-
sue work orders, manage assets, meters, etc. in an integrated
manner and has resulted in a substantial increase in electronic
invoices compared to paper invoices. These initiatives have also
had an important ecological impact.
Aqualia has promoted actions in Spain as a socially commit-
ted company, renewing the agreements in place with ACNUR,
Caritas and the environment with several initiatives that seek to
reduce greenhouse gas emissions, prioritising green energies.
Furthermore, Aqualia was a founding member of Step by Wa-
ter, as part of its efforts to contribute to UN Sustainable De-
velopment Goal (SDG) 11 in relation to Alliances. Federación
Española de Municipios (FEMP), MITECO, Coca-Cola, Unilever
and other major companies, public sector organisations and
NGOs participate in this project.
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During the state of alarm, subject to different regulations, cut-
ting off the supply of water to vulnerable customers who had
failed to pay their bills was prohibited, without this having any
material impact on Aqualia’s capacity to generate revenue.
In October, the government presented the National Recovery,
Transformation and Resilience Plan, financed with European
funds, valued at 72,000 million euros for the 2021-2023 period.
For 2021, the General State Budget (PGE) and the budgets of
the autonomous communities of Spain will include items for the
value of 34,400 million euros. A Royal-Decree Law was passed
approving the implementation of this Plan, with unprecedent-
ed public-private collaboration figures. Aqualia and Employers’
Associations (Asociación de Empresas Gestoras de Agua de
España (AGA) and Asociación de Empresas Constructoras y
Concesionarias de Infraestructuras (SEOPAN)) are working to
present cross-cutting proposals (digitalisation and energy effi-
ciency), that are either local or regional in nature, that are due to
be fine tuned in 2021.
During the year, work was done to reinforce the Spanish Asso-
ciation of Water Services Management Companies (AGA) and
the management of the Spanish Association of Water Supply
and Sanitation (AEAS), which include the public and private
companies operating in the sector. Amongst other aspects,
the objective is to inform society about management compa-
nies’ high social commitment, the existence of a very relevant
global technological transfer, and the affordability of tariffs for
family economies in Spain, which are still low compared to oth-
er Organisation for Economic Co-operation and Development
(OECD) countries, in particular during the pandemic.
In 2020, efforts have been
made to inform society about
the high level of social
commitment of management
companies, the existence
of a significant technology
transfer at a global level
and the affordability of tariffs
in Spain for household
economies
In 2020, an amendment to the sectoral collective bargaining
agreement in force (2018-2022) was signed with the trade un-
ions to set the salary increase for 2021 at 1.5%, down by half on
the amount originally agreed in the collective bargaining agree-
ment on account of the exceptional circumstances.
In the company’s operational management, we must under-
score the efforts carried out to reduce costs in 2020, in par-
ticular variable costs (energy and procurement of water) with
a view to reduce the falling margins associated with the fall in
consumption triggered by the pandemic, in particular in coastal
areas. This action has helped us to maintain EBITDA ratios in re-
lation to turnover at similar percentages as those seen in 2019.
In the sports facilities sector, furlough schemes have been rolled
out, making it possible to sustain these activities.
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In 2020, Aqualia also faced
an operational challenge on a
European scale on account of
the impact of COVID-19 in
terms of the end-to-end water
management cycle
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End-to-end water management
cycle in International
Internationally, Aqualia concentrated its 2020 activity in Europe,
the Middle East and North Africa (MENA) and Latin America
(LATAM).
EUROPE
In 2020, Aqualia also faced an operational challenge on a Eu-
ropean scale on account of the impact of COVID-19 in terms
of the end-to-end water management cycle. Despite the im-
pact on non-residential consumption, particularly severe in the
Czech Republic, the business maintained very high levels of
activity, quality and service continuity. In addition to efforts to
manage municipal concession arrangements in the Czech Re-
public, Italy and Portugal, work was undertaken to integrate the
new business in France and adapt it to Aqualia’s standards,
improving the service offered to more than 140,000 residents
on behalf of whom we supply water and manage sanitation
networks. In addition to the different services that the service
acquired in 2019 already offered, new sanitation and water
management, operation and renovation contracts have been
rolled out in Aqualia’s area of action in the Île de France region.
Furthermore, development activities have been launched in oth-
er regions of the country, submitting proposals in western and
southern France, which will continue into 2021.
In 2020 in the Czech Republic, the political and social debate
continued as regards public action to guarantee the water sup-
ply; this debate has been ongoing for a number of years now
as a result of the frequent droughts and flooding experienced in
the country, and has been promoted in the political sphere by
defenders of the public management of water, who are against
operators receiving economic incentives. Meanwhile, the Minis-
ter of Finance is promoting the review of the tariff framework for
2022 to 2026, with different areas of the public sector analys-
ing proposals. The review is focussed on the maximum growth
of the tariff and the accurate calculation of investment needs,
regulatory capital and regulatory profit, using the replacement
cost. Both Aqualia, through its subsidiary SmVaK, and the
association of water operators, are using all the resources at
their disposal to monitor and contribute to debates by means
of active communication while defending, by means of the ap-
propriate channels, the equilibrium in terms of the outcome of
the regulatory amendment. During this complex year, SmVaK
has submitted bids to several end-to-end water cycle tenders,
adding new municipalities in eastern Spain to Aqualia’s existing
contract portfolio.
In Italy, following the shy opening up of the concession market
in 2019 and early 2020 (tenders in Rimini, Piacenza and Reggio
Emilia), debate once again ignited about public involvement in
the Italian regulator and the tariff structure. The situation stabi-
lised following the replacement of the managements of Italy’s
regulation agency and the removal of incentives for the most
efficient regulators in terms of the acquisition of water, as is the
case of Aqualia.
In Portugal, although no new municipal concessions have been
sent out to tender, given the upcoming local elections, various
corporate changes have taken place involving financial inves-
tors. The high risk profile assumed by purchases reflects the
significant interest in the concession market and the high level
of confidence in future opportunities for growth in the country’s
water market.
The pace at which work is being performed to expand the Glina
treatment facilities in Romania, was affected by the restrictions
imposed by the authorities in response to COVID-19. Despite
this, progress has been made with civil engineering and the pro-
curement of equipment to minimise the impact on the works plan.
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The El Alamein plant (Egypt), chosen as one of the three desalination plants of the year at the Global Water Awards.
In the Balkans the contracts for the Berane and Pljevlja projects
were resolved on grounds attributable to customers; the works
in relation to these projects were already complete and the fa-
cilities were in operation. Meanwhile, the established dispute
resolution and winding up mechanisms were rolled out for both
plants. The Prizren project is currently in the testing phase and
awaiting provisional acceptance to launch assisted operation.
MENA
In Algeria, the commissioning of the Mostaganem desalination
plant at full capacity was completed following the completion
of works for the additional capture of seawater, obtaining provi-
sional acceptance. The plant has increased its actual capacity
and is protected from the impact of adverse sea conditions.
In terms of the operations of the desalination plants, given the
huge impact that the pandemic has had, and thanks to the
dedication and high level of planning undertaken by the man-
agement team at the plants, they have remained at full capac-
ity with no major incidents at the Mostaganem and Cap Djinet
desalination plants, thus providing an essential service to the
local population.
136
In Egypt, Aqualia ended the year having guaranteed the oper-
ation of the El Alamein desalination plant, offering a capacity of
150,000 m3 per day, having extended the corresponding con-
tract through to 2022.
The completion of the El Alamein desalination plant to the cus-
tomer’s full satisfaction offers an unrivalled reference for new
projects set out in the desalination plan established by the
Egyptian government with a view to reducing water stress in
the country’s Mediterranean and Red Sea regions.
In terms of the completion of the project at the Abu Rawash
wastewater treatment plant, despite the impact of the pandem-
ic, the pace of work at the plant has remained healthy, and it is
due to be commissioned in 2021.
In Saudi Arabia, in January Aqualia completed the acquisition
of 51% of Qatarat and HAAISCO from the prestigious Saudi
group, Alireza. Qatarat is the concession holder for the King
Abdulaziz de Jeddah International Airport saltwater desalina-
tion plant. HAAISCO, in turn, operates the plant and other im-
portant plants in the country, such as the desalination plant at
KAUST University. All plants have been running at full capacity
to provide these essential services to the population during the
pandemic.
Furthermore, progress has been made in executing the diver-
sion and adaptation works for affected supply and sanitation
services on the Riyadh metro, where Aqualia is responsible for
the activities to divert services and provide provisional and de-
finitive connections for Lines 5 and 6.
Over the course of the year, significant commercial efforts have
been made to participate in the ambitious desalination pro-
gramme organised by the Government, with very competitive
bids submitted for different projects.
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137
Likewise, efforts have been dedicated to developing other lines
of commercial activity as part of the VISION 2030 programme
to improve infrastructures, such as the new wastewater treat-
ment projects, contracts for the rehabilitation, operation and
maintenance of existing treatment facilities and service provi-
sion contracts for end-to-end water management across the
country.
In the United Arab Emirates, Aqualia MACE has continued
to provide the operation and maintenance of the collector net-
works, pumping stations and wastewater treatment plants in
the geographical areas of Al Ain and Abu Dhabi without inci-
dents and at full capacity throughout the pandemic.
During 2020 in Oman, Aqualia has continued with the end-to-
end management of the cycle in the Sohar port area through its
subsidiary Oman Sustainable Water Services (OSWS), without
incidents despite the pandemic. One important milestone this
year was AENOR’s certification of the asset management sys-
tem; very few water management companies in the world have
received this certification.
In Qatar, work has started to commission the Al Dhakhira
wastewater treatment facilities to the north of the country, run
by Hyundai, with capacity for 55,000 m3 per day to be operated
by Aqualia MACE once the service is definitively commissioned
in 2021.
Furthermore, a joint venture has been constituted, led by
Aqualia and with the participation of prestigious local partners,
to develop projects to improve the sewerage, treatment and
reuse network, which will provide services to Qatar’s Ministry of
Public Works and Sanitation.
USA
During 2020, Aqualia enhanced its commercial activities in the
United States, maintaining its active search for new projects
and business opportunities.
The main growth opportunities for the company in certain states
appear to be water shortages, obsolete water infrastructure,
and the scarce penetration of private sector operators in the
industry.
However, the COVID-19 health crisis, the general elections and
the eventful political transition have seen the economy, and in
particular projects in relation to water and sanitation, slow down.
New legislation in relation to controlling and eliminating emerg-
ing contaminants to protect water bodies and surface water
represent a business opportunity to be explored in the coming
years.
LATAM
Aqualia purchases Ecosistemas de Morelos (EMSA), enhancing its
presence in Mexico.
The deficit of water infrastructure and the search for efficien-
cy in the existing infrastructure are two factors that enhance
Aqualia’s growth possibilities.
In 2020, Aqualia has consolidated its presence in Mexico,
setting a benchmark in the sector with a very diversified asset
portfolio.
The experience obtained in the BOT (Build, Operate, Transfer)
contracts at the Acueducto II project in Querétaro and Realito
in San Luis de Potosí, has provided the company with a basis
for proposing similar projects to institutional customers, as the
technical and financial skills employed have placed Aqualia in a
position of leadership in the country.
The Guaymas desalination plant, awarded in 2018 by CEA de
Sonora, the implementation of which has had to be pushed
back slightly on account of the pandemic, is now practically
complete and will be commissioned in 2021.
In June, Aqualia acquired 100% of the shares in Ecosistemas
de Morelos (EMSA), the purpose of which is the concession
of the Cuernavaca WWTP. Thanks to this transaction, Aqualia
has completed the cycle of its activities in the country, adding
the treatment of wastewater in Cuernavaca, to desalination in
Guaymas and the supply of drinking water in Querétaro and
San Luis de Potosí.
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“El Salitre” wastewater treatment plant (WWTP) in Colombia.
Last June, the takeover of concession holder AQUOS (Realito)
was completed by means of the acquisition of an additional
shareholding, taking its total holding to 51%. Up until this point,
Aqualia had held a minority interest in the company.
In Colombia, the construction of the El Salitre WWTP (Waste-
water Treatment Plant) in Bogotá continued, with the pandemic
having a minimal impact on works thanks to the strict protocols
implemented. This series of measures has placed Aqualia at the
forefront of health and safety in hydraulic infrastructure works,
receiving recognition from public institutions and multilateral
banking.
In March, it completed the acquisition of 12 municipal con-
cessions in the Córdoba region, in addition to the concession
awarded in Villa del Rosario in the region of Santander, which
was commissioned in May. These projects have helped to con-
solidate Aqualia’s presence in the country as an end-to-end
management operator.
138
Aqualia continues to pursue business opportunities for the man-
agement of end-to-end services in the country’s major munici-
palities under concession models. Furthermore, it has detected
new opportunities for the design, construction and financing of
hydraulic infrastructures to purify wastewater, in addition to new
sources of drinking water supply in areas suffering from water
stress.
In Peru, the government is evaluating the efficiency of its public
supply services to allow the entry of private sector companies
wherever management indicators are lowest. In 2017, five pri-
vate initiatives for the treatment of wastewater were submitted.
These were declared relevant in 2018 and are currently in the
formulation phase. In 2020, a private initiative was also sub-
mitted and declared as being of relevance, for the desalina-
tion project in Ilo, which is now in the development phase. At
present, Aqualia is analysing different projects both as a service
provider for Public Service Companies and as the supplier of
financing, design, construction and operation of major hydraulic
infrastructures.
Aqualia withdrew from the assistance and consultancy contract
for the operational and commercial management of IDAAN
(Panama) given the amount of time that had elapsed between
the award and the comptroller’s endorsement. Staying in Pan-
ama, the company also terminated the contract for the 10-year
engineering, construction and operation agreement in relation
to the Arraiján WWTP in advance, as the customer failed to
make payment.
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Activity in the Water area
1
MEXICO
Cuernavaca
Acquisition of the concession in relation to the
wastewater treatment plant (WWTP) in Cuernavaca,
Morelos (Mexico). 10 years. 19.2 million euros
El Realito (Guanajuato and San Luis de Potosí)
Acquisition of an additional 2% in the El Realito
concession holder (Aquos), allowing Aqualia to
assume control over the concessionaire for a period
of 16 years and an estimated turnover of 16 million
euros per year.
2
COLOMBIA
Acquisition of three end-to-end water cycle
management concessions for 12 towns
in Córdoba, in the Caribbean region in the country's
north. These concessions have been acquired from
three companies in the same business group:
Aguas del Sinú, which manages the service in seven
towns (Santa Cruz de Lorica, Chima, Momil,
Purísima, Tuchín, San Antero and San Andrés de
Sotavento); Uniaguas, which operates services in
five other towns (Cereté, Ciénaga de Oro, Sahagún
and San Carlos); and OPSA, which to date had
managed the service in Planeta Rica. 19 years.
382.1 million euros
1
2
3
SPAIN
Catalonia
Tarragona
Design, construction and operation of the effluent
treatment facilities for the chemical and
petrochemical industrial complex in Tarragona on
behalf of Aguas Industriales de Tarragona, S.A.,
for a period of 6.5 years. 35.6 million euros
Castile-La Mancha
Picadas-Almoguera (Toledo) and Mancomunidad
El Girasol and Almoguera-Algodor-Sagra Este
(Cuenca)
Services for the operation, conservation and
maintenance of supply systems in Picadas-
Almoguera (Toledo) and Mancomunidad El Girasol
and drive systems in Almoguera-Algodor- Sagra Este
(Cuenca), for Aguas de Castilla-La Mancha, for a
period of 2 years. 17.1 million euros
Los Yébenes (Toledo)
Water supply service for a period of 17 years.
7.8 million euros
4
5
3
6
Almorox (Toledo)
Cuarte de Huerva (Zaragoza)
Operation and maintenance of the Almorox
wastewater treatment plant, for a period of 10 years.
1.1 million euros
Melilla
Melilla
Works and services to expand the seawater
desalination plant in Melilla and operate the plant
during the performance of works and its
commissioning, on behalf of the Confederación
Hidrográfica del Guadalquivir, for a period of
2.25 years. 16.1 million euros
Aragon
Zaragoza
Service for the operation, maintenance and
conservation of the wastewater sanitation and
treatment system in the River Huerva for Instituto
Aragonés del Agua for a period of 3 years.
1.8 million euros
Navarre
Navarre
Performance of minor works, repairs and
maintenance of civil engineering in the network of
outfalls and wastewater treatment stations for
NILSA, for a period of 2 years. 1.6 million euros
Balearic Islands
Santa Eulària des Riu (Ibiza)
Services and minor conservation and repair work
for cleaning and maintaining the sewerage and
urban drainage systems and network of
underground channels in the city of Zaragoza
for a period of 2 years. 7 million euros
Works corresponding to the regulating reservoir and
ancillary infrastructure, for their correct operation and
integration into the municipal water network for
human consumption in Jesús, Santa Eulària des Riu,
for a period of half a year. 1 million euros
4
FRANCE
Île de France
Contract for the renewal of the drinking
water network in the towns of Goussanville
and Nord D´Ecoven over a period of one
year. 2.2 million euros
Bonneuil-en-France
Contract for the maintenance, operation
and improvement of the water sanitation
system in Vaudherland Bonneuil-en-France
in the Île de France region, for a period of
4 years. 1.1 million euros
Bonneuil-en-France
Contracts for the maintenance, operation
and control of facilities on behalf of Villa de
Sarcelles, SIA de Parmain - Lísle Adam
and Communauté Urbaine Grand Paris
Sein for a period of 4 years.
0.9 million euros
5
CZECH REPUBLIC
Inclusion of the towns of Mošnov
(end-to-end cycle), Suchdol (supply) and
Písečná, Řepiště and Vratimov (treatment) in
the portfolio of our subsidiary SmVaK, for a
period of 9 years. 4 million euros
6
SAUDI ARABIA
Acquisition of 51% of the share capital in
Qatarat Saqia Desalination Co. LTD
and Haji Abdullah Alireza & Company
Integrated Services Co. LTD (HAAISCO),
whose main objective is the operation of
a desalination plant to supply water to
Jeddah Airport. 9 years.
175.9 million euros
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Expansions and extensions to already
managed contracts in Spain
Vigo (Pontevedra)
Yecla (Murcia)
Zaragoza
End-to-end management of the water supply, sewerage
and treatment service in the city for a period of 5 years.
259.6 million euros.
Mula (Murcia)
Management of the water supply service for a period of 5
years.
10.2 million euros.
Ibiza (Balearic Islands)
Management of the water supply service for a period of 4
years.
4.9 million euros.
Ajofrín (Toledo)
End-to-end management of the drinking water, sewerage
and treatment service for a period of 17 years.
3.7 million euros.
Port of Santa María (Cadiz)
Management of the water supply and sewerage service for
Maintenance, conservation and operation service of the
a period of 1 year.
8.9 million euros.
WWTP and sewerage for a period of 1 year.
3.5 million euros.
San José del Valle (Cadiz)
Consorcio de Louro (Pontevedra)
Management of the water supply and sanitation service for
Management of the urban water cycle for a period of 1 year.
a period of 15 years.
5.8 million euros.
Redondela (Pontevedra)
3.1 million euros.
Alcoi (Alicante)
Management of the water supply service for a period of 1
End-to-end management of the water supply, sanitation
and treatment service for a period of 2 years.
4 million euros.
year.
2.8 million euros.
Llucmajor (Balearic Islands)
Management of the water supply and sewerage service for
a period of 0.5 years.
2.8 million euros.
Services to manage ACUAES supply actions in the prov-
ince of Zaragoza: Zaragoza and the Ebro and Bajo Ebro
Aragonés corridor for a period of 2 years.
2.8 million euros.
Costa Brava (Girona)
Management of the treatment service through a joint ven-
ture for a period of 0.7 years.
2.8 million euros.
Rota (Cadiz)
Management of the municipal water supply service for a pe-
riod of 0.7 years.
2.5 million euros.
Güímar (Santa Cruz de Tenerife)
Management of the water supply and sanitation service for
a period of 1 year.
2.4 million euros.
Peñafiel (Valladolid)
Management of the drinking water supply, sewerage and
maintenance service for the wastewater treatment plant for
a period of 5 years.
2.4 million euros.
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Muro (Balearic Islands)
Illescas (Toledo)
Alcalá de Henares (Madrid)
Public services for household supply and drinking water dis-
tribution for a period of 5 years.
2.3 million euros.
Management of the water supply and sewerage service for
Meco tanks and pumps for a period of 2 years.
a period of 1 year.
1.5 million euros.
1.1 million euros.
District of Talavera (Toledo)
Huéscar (Granada)
Alba de Tormes (Salamanca)
Management of the wastewater treatment plant for a period
Management of the water supply service for a period of 5
of 10 years.
2.3 million euros.
Yepes (Toledo)
years.
1.3 million euros.
Oleiros (La Coruña)
Incorporation of a new tank and osmosis plant into the mu-
nicipal water supply and sewerage service in the town for a
period of 11 years.
2 million euros.
Villena (Alicante)
Management of public drinking water supply and sewerage
service for a period of 1 year.
1.8 million euros.
Management of the municipal indoor swimming pools for a
period of 1 year.
1.3 million euros.
Guía de Isora (Santa Cruz de Tenerife)
Service for the operation, maintenance and conservation of
infrastructures and facilities in relation to the local seawater
desalination system in Fonsalía for a period of 2 years.
1.3 million euros.
Castell-Platja d´Aro (Girona)
Sonseca (Toledo)
Management of the water supply service for a period of half
Management of the water supply service for a period of 2
a year.
1.7 million euros.
Madrid
years.
1.3 million euros.
Baix Ebre (Tarragona)
Services for the urgent renewal and repair of the supply and
regenerated water network of Canal de Isabel II (Lote 9 Red
Culebro) for a period of half a year.
1.6 million euros.
Management of the public service of sanitation systems in
the region of Baix Ebre for a period of half a year.
1.2 million euros.
Maintenance, conservation, operation and management of
the supply to four municipalities in the province of Toledo
(district of Talavera, also known as Sierra de San Vicente:
Sartajada, La Iglesuela, Montesclaros and Buenaventura)
for a period of 7 years.
1.1 million euros.
Burgo de Osma (Soria)
Management of the water supply and sanitation service for
a period of 2 years.
1 million euros.
Incorporated
companies
“Mar de Alborán” seawater desalination plant (Almeria)
At the beginning of the year, Aqualia purchased the Mar de
Alborán desalination plant and its ancillary pool and irrigation
water distribution network facilities to satisfy the demand of
the different irrigation associations in Almeria and Níjar. This
sustainable management model will see the desalination
plant supplied by solar power generated by a photovoltaic
plant.
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FCC_Annual Report_2020 | Business lines | End-to-end water management cycle | Events
142
Highlights_End-to-end water management cycle
2020
September
November
March
May
July
New contract to manage
the cleaning and
maintenance services for
the sewerage network in
Zaragoza (Spain).
Solidarity, adaptation and
service in response to
COVID-19.
4
The Badajoz Water Service
achieves the maximum rating
from the European Benchmarking
Cooperation (EBC).
Five more years managing the
municipal water service in Mula,
Murcia (Spain).
The Association of
Communication Executives
(DIRCOM) chooses Aqualia’s
CSR Report as one of the three
best of the year.
Aqualia completes the
integrated cycle with the
acquisition of EMSA
(Ecosistemas de Morelos)
and thus consolidates its
presence in Mexico.
The new edition of the “Pásate
a la e-factura” campaign sees
more than 450,000 users
signed up to Aqualia's digital
billing service.
3
5
6
8
7
January
The University of Almería
(Spain) and Aqualia join forces
to research and publish
information about the water
cycle.
Aqualia joins the International
Federation of Private Water
Operators (Aquafed).
2
1
The El Alamein plant (Egypt), chosen as
one of the three desalination plants of
the year at the Global Water Awards.
The Advisor project, included in the
101 most innovative initiatives in 2020
for combating climate change.
The IFM fund selects two projects
submitted by Aqualia for its
international environmental and social
internship programme.
Lleida city council (Catalonia, Spain)
and Aqualia create a social solidarity
fund to guarantee access to water for
families at risk of exclusion.
10
9
11
February
April
June
August
October
New contracts in Aragon
(Spain) to provide treatment
services to more than
130,000 people.
The Aqualia team receives
further information about
ethics and integrity.
Aqualia named “Best Company in
2019” by readers of iAgua, the
leading industry publication in
Spain and Latin America.
A one-of-a-kind bio-health protocol
to combat COVID-19 allows work
to resume at the Salitre WWTP in
Bogotá (Colombia).
Aqualia participates in the
presentation of the StepbyWater
alliance, an initiative supported
by the Spanish government.
ACUAES renews its trust in
Aqualia to manage its wholesale
supply in Zaragoza (Spain).
The MIDES project, led by
Aqualia, operates the first two
desalination plants that are
wholly energy self-sufficient in
the world, in Dénia (Alicante,
Spain) and Guía de Isora
(Santa Cruz de Tenerife,
Spain).
Recognition of the best
preventive culture practices
included in Aqualia's contracts.
The documentary, Brave Blue
World, which features Aqualia’s
All-gas project, is available in
191 countries via Netflix.
12
December
The “Who is behind the
water we use at home?”
campaign, organised by
Aqualia as part of the
COVID-19 crisis, is named a
winner at the European
Excellence Awards (EEA).
Aqualia becomes a full
member of the UN Global
Compact.
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Service
excellence
Customer
management
It is essential for Aqualia to expand the company’s commitment
to society, seeking the goal of excellence in customer service.
The company aims to stand out in the market by developing ser-
vices adapted to its users’ needs. In 2020, progress continued
in terms of gearing the strategy towards end customers, particu-
larly focusing on the quality of the channels used to interact with
our users, enhancing the investment in technology particularly
during this year that has been so hard hit by the pandemic.
143
Customer service channels
In 2020, the main management indicators for our
aqualiacontact customer service channels are the following:
Over-the-phone customer service
In 2020, 1,240,219 calls were received by the Customer
Service Centre.
Given the state of the alarm, the closure of face-to-face
customer services and other health measures adopted, the
Customer Service Centre received 54% more calls year on
year.
The specialist service offered by our agents, in addition to
the proactive nature and speed with which the customer
service is offered in the form of a remote system using the
Presence (Evolutio) solution, has made it possible for cus-
tomers to receive assistance with no downtime via the dif-
ferent customer service and fault reporting channels, such
as: the over-the-phone customer service, virtual office, App,
twitter and email.
Following the closure of Aqualia’s sales offices during the
month’s hardest hit by the pandemic, informational SMS
messages and emails were sent to all customers to inform
them of the range of channels open to them, with the Cus-
tomer Service Centre the main channel chosen by our cus-
tomers for the purposes of communication.
Following the progressive reopening of in-person offices
and the end of the state of alarm, social distancing meas-
ures, the use of face masks, disinfection of areas, etc. were
all implemented.
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Tu factura electrónica
juega un papel importante
en el medioambiente
144
Pásate a la factura
electrónica
Llamando al centro de atención al cliente
o enviando un email a e-factura@aqualia.es
indicando: nombre y apellido del titular,
número de contrato, población y el email
donde deseas recibir la factura electrónica.
Cámbiate a la factura electrónica
y podrás consultar, sin coste alguno,
tu factura al instante.
ODS alineados
con esta iniciativa
The over-the-phone Customer Service Centre was used to
set up an appointment service to prevent waiting times and
overcrowding at in-person offices, improving not only the
over-the-phone service, but also providing a faster, effective
and pleasant service in general with all the health guaran-
tees.
App for mobile devices
E-invoicing
In 2020, using the app available to our customers, 62,562
interactions were processed, 50.2% up on 2019, with
20.99% of these regarding modification of details and
64.08% for payments with bank cards.
Virtual office: aqualiacontact
Twitter @aqualiacontact
In 2020, 163,814 interactions were handled, 26% up
on 2019. In total, 32.34% interactions were as regards
the modification of data, 23.77% electronic invoicing and
19.85% bank card payments.
Furthermore, this channel remained active as part of the
omnichannel project. Aqualia included Customer Service via
Twitter in its list of channels. Through the @aqualiacontact
account, messages sent by users are managed and dealt
with. SMS messages for notifications of bills and incidents
and warnings of failures in networks are also possible.
Via twitter, 51.5% more interactions were managed in 2020
compared to 2019.
In 2020, 15,277 customers asked to activate the e-invoicing
service, up by 85% year on year.
The efficiency of all customer relationship channels allows for a
very reduced number of claims; 0.41% at December 2020
with an average claim response time of 11 days. The av-
erage meter installation time (from request) of five days is also
noteworthy.
In order to meet the high expectations our customers have of
the service offered by Aqualia, we will continue making progress
to be able to provide all our customers with a quality omnichan-
nel experience when they interact with the company.
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The following objectives have been set for this:
Billing and managing collections
1. Integration of all the channels
Channels functioning in unison, interrelated in real time. The
new project for implementing a Microsoft Dynamics CRM,
which will come online in 2021, will enable all the channels
to be interrelated in real time with better accessibility, availa-
bility and integrity of the information in the interactions. The
objective of the project is to have a new customer service
module that must be integrated with other systems, such
as the Diversa commercial system, which provides sufficient
flexibility, guarantees availability and agile and flexible ac-
cess to information through guided processes.
2. A better quality and more pleasant experience for
customers
- Any operation from any channel.
- Single processes for every channel.
3. More responsive and capable service
- Multi-platform customers.
- Use of resources, development of communication skills
by channel.
The Customer Management department has maintained the
same strategic vision in the development of its management
tools, mainly with the completion of the implementation of the
single billing and debt management tool for non-tariff concepts
and the progress of new functions in the Business Intelligence
tool for example, which includes meter renewal, fraud, adapting
to the debt status procedures and types of customer.
Worldwide, on account of the circumstances generated by
COVID-19, billing has seen a year on year drop in m3 consump-
tion of 2.24%, which has been reflected in a decrease in billing
of 0,71%, mainly due to the fall in consumption by non-house-
hold consumers (-14.76%) and wholesale water consumption
(-7.45%). These impacts have been offset by the 3.22% in-
crease in household consumption as a result of the lockdown
measures implemented.
Furthermore, in response to the pandemic and the closure of
in-person offices, the different customer service channels have
been reinforced to perform the necessary activities and offer
flexible payment options to vulnerable sections of the popula-
tion.
145
1. Average collection period and non-payment
This has resulted in the continuous improvement of processes,
bringing the average collection period in Spain to 2.35 months,
maintaining the trend seen in the previous two years. This has
been achieved by stepping up the correct management of pay-
ments, despite the impact of the pandemic.
Average collection period in Spain
5
4
3
2
1
0
4.74
4.14
3.81
3.26
3.16
2.81
2.74
2.34
2.35
2.22
Dec
2011
Dec
2012
Dec
2013
Dec
2014
Dec
2015
Dec
2016
Dec
2017
Dec
2018
Dec
2019
Dec
2020
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In the tariff processes, the structural default has been improv-
ing every year, with Spain improving most, and has evolved as
follows:
Aqualia has maintained the campaign to promote the use of
electronic invoicing and to gradually replace as many paper in-
voices as possible. This action has allowed for a 20.4% increase
in the number of invoices issued electronically compared to the
previous year, reaching a global rate of 14.1%, contributing to
preserving the environment, with 540,533 customers choosing
to receive this type of invoice.
The task to minimise the difference between the volume of wa-
ter supplied into the network and the actual volume consumed
is an essential goal for a company such as Aqualia. To achieve
this, in addition to using sophisticated smart network monitor-
ing systems and renewing networks that become obsolete to
prevent leaks insofar as possible, plans are designed to detect
the fraudulent use or actions involving drinking water.
In 2020, despite the pandemic, over 7,100 frauds, worth an
equivalent consumption amount of 3.7 million euros, were de-
tected. In addition to these actions, over 342,000 metering de-
vices were renewed in many different contracts.
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Globally, Aqualia has seen a slight upturn in the average col-
lection period on account of the increase in activity in the In-
ternational area over the past two years, with the inclusion of
the concessions in the regions of Córdoba and Villa del Rosario
acquired in Colombia in 2020, the acquisition of Qatarat and
HAAISCO (Arabia Saudí) in January 2020 and the takeover and
initial consolidation of Acueducto El Realito (Mexico) in June
2020. This figure has also been affected by progress with the
works at the Glina WWTP (Romania) and the capitalisation of
advances received (EPC) as part of the Abu Rawash WWTP
project (Egypt).
Average collection period. International area
Structural default in Spain
5
4
3
2
1
0
4.42
3.95
3.78
3.3
3.17
2.89
2.94
2.82
2.40
2.10
0.76%
0.74%
0.72%
0.71%
0.69%
0.68%
0.67%
0.78%
0.76%
0.74%
0.72%
0.70%
0.68%
0.66%
0.64%
Dec
2011
Dec
2012
Dec
2013
Dec
2014
Dec
2015
Dec
2016
Dec
2017
Dec
2018
Dec
2019
Dec
2020
Dec
2014
Dec
2015
Dec
2016
Dec
2017
Dec
2018
Dec
2019
Dec
2020
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147
2. Meter Reading Mobility Project
In 2019 and 2020, an ambitious project for meter readings was
undertaken. The project aims to update the implemented mo-
bility solution for taking meter readings, providing it with on-
line and offline functions with the current DIVERSA commercial
system used at Aqualia. The solution is run on smartphones in
order to provide functions related to taking and managing meter
readings.
With this project, Aqualia aims to improve the current meter
reading and management processes, making them efficient in
the shortest time possible and with the smallest economic im-
pact. The project was developed in 2019, concluding the final
user tests with great success in December. The pilot launch,
which took place in January 2020, was completed successfully,
with the remaining operations being rolled out gradually.
Roll out in production Meter reading module project
This pilot project was completed satisfactorily in Alcalá de
Henares (Madrid).
It was then rolled out in Ávila, Salamanca, Lleida, Lliria (Va-
lencia), Sant Josep (Balearic Islands), Écija (Seville), Jaén,
Sanlúcar de Barrameda (Cádiz) and Mérida with satisfacto-
rily results, allowing the mass roll out of the project.
As at December 2020, it has been implemented as part of:
• 439 services implemented in Spain and 6 in Italy and Por-
tugal.
• 5,296,171: readings taken to date with the new app.
• 20,241: reading routes exported to the app.
• 2,589,927: contracts exported to be read on the app.
Its roll out is due to be completed in Q1 2021.
3. CRM Microsoft Dynamics
The new customer services module uses Microsoft Dynamics
CRM 365. This solution provides the customer with a compre-
hensive overview, technological innovation and improvements
in business processes.
The solution includes a new website for customers that will
replace the virtual office that is currently in place. The Call
Centre and a new virtual office will be implemented for cus-
tomers, covering all operations, with the corresponding up-
dates to the CRM currently in place.
The tests run by the technical and business teams were
performed in the final quarter of 2020 with satisfactory re-
sults.
Developments are due to be completed in February 2021,
with tests run in March and April before it is rolled out in May
2021.
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Data protection
In Spain, following the entry into force of Regulation EU
2016/679, the General Data Protection Regulation (GDPR) on
25 May 2018, and the entry into force of Organic Law 3/2018,
on the protection of personal data and the guarantee of digi-
tal rights (LOPDGDD) on 5 December 2018, Aqualia embarked
upon a process of adapting its regulations in relation to data
protection.
The new developments established in the regulation required
data protection amendments to be made across all companies,
given that they apply to all the affected areas in relation to the
following areas:
1. Employees.
2. Customers.
3. Suppliers.
4. FCC Group’s contractual relations.
5. Public administration contractual relations.
6. Documentation and internal management.
7. Information technology and information security.
8. Technical and organisational measures.
As part of the adaptation process, the eprivacy tool has been
rolled out. This tool is used to record the data processing ac-
tivities of all companies. It features a document and evidence
manager, in addition to a risk assessment tool.
The tool allows a quarterly risk status report to be generated,
in addition to constant improvement assessments following the
implementation of corrective and preventive actions.
Situación inicial mayo 2018:
RIESGOS:
PROBABILIDAD
Very High - Maximum
High - Significant
Medium - Limited
Low - Insignificant
0
4
132
0
0
171
468
1
0
0
224
0
0
0
0
0
Very low -
Insignificant
Medium -
Limited
High -
Significant
Very High -
Maximum
IMPACT
Status December 2020:
RIESGOS:
PROBABILIDAD
Very High - Maximum
High - Significant
Medium - Limited
Low - Insignificant
0
0
11
124
0
0
98
604
0
0
17
180
0
0
0
0
Very low -
Insignificant
Medium -
Limited
High -
Significant
Very High -
Maximum
IMPACT
The adaptation work started in 2020 is due to continue
into 2021: International data transfer project between FCC
Group companies.
Storage terms project for FCC Group data.
Adaptation of Aqualia’s national security framework.
Lleida city council (Catalonia, Spain) and Aqualia create a social
solidarity fund to guarantee access to water for families at risk of
exclusion.
Social action
Although the capacity to set rates and regulate the services pro-
vided in the integral water cycle in Spain lies exclusively with
the Administration, at Aqualia we actively promote social action
mechanisms in the rates and solidarity funds for underprivileged
users. The company has also worked to improve the coordina-
tion with the city councils’ social services to protect customers
at risk of social exclusion. As an example, within its CSR poli-
cy, Aqualia has been renewing its partnership agreement with
Caritas Española to support the initiatives of this humanitarian
organisation in Spain, since 2015, and with ACNUR since 2019.
Furthermore, access to water has been guaranteed for those in
vulnerable situations and payment terms have been extended
for all customers affected by the pandemic.
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149
Sustainable management
Aqualia accepts that it has a role to play in the private sector
in terms of achieving the Sustainable Development Goals and
this is reflected in its daily commitment to promoting t his cul-
ture within the company and amongst its stakeholders. For this
reason, in addition to its campaigns to raise awareness of the
SDGs, it has identified and prioritised those to which the com-
pany contributes as part of its activities and corporate com-
mitments. Through active listening, it identifies the importance
that stakeholders place on Aqualia’s contribution to the different
SDGs and seeks to respond to these expectations by providing
appropriate indicators:
Priority commitments on account of its activities
Corporate commitments
17
1
16
2
15
3
14
13
12
4
5
6
11
7
10
8
9
6.1
Drinking
water
for all
• More than €70,000 in water bills
in Cáritas centres.
• 191,953 beneficiaries from reduced
tariffs, discounts or grants.
• Collaborative outlook:
dialogue with over 50 national and
international sectoral associations.
6.2
Health and
hygiene
for all
• Access to more than
29 million users.
• Technological platform to
digitalise the end-to-end
water cycle, Aqualia LIVE.
6.3
Improve
water
quality
• 1,019,780 water quality
investigations.
• Volume of treated water
returned to its natural
environment 687,943,351m3.
• 17 current patents for efficient
water management.
• 21 active projects.
6.4
Increase the
efficient use
of hydraulic
resources
6.5
End-to-end
management of
water resources
and cross-border
cooperation
• Present in 4 of the
17 countries with
extreme water stress:
Qatar, Saudi Arabia,
United Arab Emirates
and Oman.
6.6
Restoring
water-related
ecosystems
• Development of
biodiversity projects in
facilities in protected
areas.
• 145 biodiversity spaces
identified.
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FCC_Annual Report_2020 | Business lines | End-to-end water management cycle | Service excellence | Page 8 of 11
Likewise, Aqualia continues with its strategy of creating shared
value, heeding the expectations of its stakeholders and further
developing the tools to know and measure the social and en-
vironmental impact, supporting the creation of economic value
and increasing the company’s competitiveness (calculating our
social and environmental footprint). That is why, in 2020, we
have worked on the following aspects:
1. Application of ISO 45001 to Aqualia’s management sys-
tem, revising and updating all the procedures and coordi-
nating internal and external audit processes (AENOR).
2. Increase in the efficiency of internal audit processes, pub-
lishing integrated reports, and external audit processes by
collaborating with qualified auditors who perform audits on
the Quality, Environmental and Energy Management sys-
tems, calculate the carbon footprint and audit occupational
health and safety.
3. Certification of asset management under an internation-
al agreement, making it possible to increase efficiency and
guarantee operations with managed infrastructures.
4. Increase in the scope of the Energy Management and Cli-
mate Change strategy.
• Monitoring contracts with energy review.
150
• Calculating and verifying the Carbon Footprint of all
Aqualia’s activities in Spain and Portugal.
• Inclusion in the Carbon Footprint Registry of the OECC
(Spanish Climate Change Office) of MITECO (Ministry of
Ecological Transition and the Demographic Challenge) for
all Aqualia’s activities in Spain.
• Review of the Plan to Reduce the Carbon Footprint of
Aqualia’s activities.
• Verification of the emissions avoided in the CLIMA Project
of the OECC (Spanish Climate Change Office) organised
by MITECO, approved in 2018, for the use of alternative
fuels, which come from the company’s activity, in vehicles.
• Monitoring of the project to implement the Energy Man-
agement System in all activities in Spain, in compliance
with RD 56/2016.
5. Adaptation of the general procedures of the Management
System to FCC Group’s Compliance model to respond to
the designation of process owners and their corresponding
controls.
6. Participation in AENOR meetings and conferences and in
AEC (Spanish Quality Association) work groups.
7. Participation in the Circular Economy Commission of the
Spanish Chamber of Commerce, where legislative initiatives
are analysed and meetings are held with policy makers.
In addition to the above, the strategy with the company’s stake-
holders has been maintained. This consists of incorporating the
treatment of Aqualia’s stakeholders into the Management Sys-
tem and the company’s context analysis as a requirement of the
new Standards and as support for other Aqualia departments
in their daily work (Customers, Compliance, Communication,
CSR, HR, etc.).
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151
Energy Management
The energy management of production facilities has been a
strategic line of action for the company since it was founded,
with the optimisation of energy consumption an objective of
continuous improvement.
Not surprisingly, the calculation of the company’s carbon foot-
print in its operations in Spain, verified in accordance with the
guidelines of the UNE-ISO 14064 Standard by AENOR, shows
that the component with the biggest impact on Aqualia’s car-
bon footprint is electricity consumption (Scope 2).
To this end, in 2020 several projects were implemented that
seek to reduce greenhouse gases (GHGs).
The signing of a PPA (Power Purchase Agreement) for 76 gi-
gawatts per year of renewable energy (photovoltaic), that came
into force in July will help to reduce emissions by 15,200 tonnes
of CO2 eq per year.
Customer orientation. Listen to their needs, one of the most
powerful tools when it comes to continuous improvement.
Greenhouse gas emissions 2020
Scope 1
Scope 2
Scope 3
TOTAL
t CO2
t CH4
t N2O
7,615.4
94,583.3
13,346.2
115,544.8
2,173.3
0,0
0,0
2,173.3
24.2
0.0
63.3
87.4
GHG 2019
(t CO2e)
74,876.9
94,583.3
30,111.1
199,571.3
%
37.5%
47.4%
15.1%
Furthermore, the installation project for 3,2 MW of peak power
in the form of solar panels, supplying 26 consumption points,
with an annual expected production of 5 gigawatts per year,
which translates into a reduction in GHG emissions of 1,000
tonnes of CO2 eq per year.
Improvements for reducing energy
consumption
Since 2016, and every four years, the company submits a set
of production facilities that consume more than 85% of the
company’s total consumption to energy auditors (in accord-
ance with ISO 50001-Energy Management Systems). In order
to monitor the improvement opportunities detected in the au-
dits, the functional design of a computer tool has been created,
which is promoted within the scope of this standard. This tool
will be included with Aqualia’s technical analysis/reporting tool
(AqualiaRT/AqualiaBI), enabling the activities and results ob-
tained to be monitored.
In 2020, the Las Tablas office building, home to Aqualia’s head
office, received energy management certification. This is ex-
pected to optimise the consumption of this building, which, as
in the case of other offices, has a much smaller impact on the
company’s carbon footprint than the production installations,
but which are Aqualia’s showcase for its end customers, to
whom we transfer our environmental commitment.
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152
Commitment to
smart management
Technical
management
Over the course of 2020, the implementation and development
of activities to improve operational management and the roll out
of new platforms to standardise technical best practices across
the company has continued. Those worth particular mention
include:
Energy Management
Implementation of the monitoring and control platform
structured around improvement proposals and goals under
different contracts, in relation to energy efficiency, pursuant
to ISO 50001-Energy Management Systems.
Change in the energy billing control platform, switching from
Bempower to the much more powerful Synergica tool, pro-
viding more immediate and comprehensive control of ener-
gy costs billed by the retailer.
Implementation of the SILICE platform for gathering gas
production data and the destination of gas at WWTP under
management, with a view to centrally declaring data for the
payment of Fuel Tax on the tax agency’s platform.
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Asset management
Technology transfer
Work has started to roll out the new Asset Management and
Maintenance IT Tool, which will allow for the standardisation of
maintenance activities, depending on the size and purpose of
the service provided in addition to better centralised control of
the inventory of managed assets. This will make it possible not
only to obtain information on the status and current value of
the inventory, but also develop and plan “Smart” proposals for
renovation actions and/or the expansion of the infrastructure
operated by the company.
Over the course of 2020, a new tool has been launched to
complement the work performed by the Innovation department:
technology transfer.
The main goal is to create products, activities or processes
that are exploitable from a commercial perspective (domestic
or foreign market) linked to the results of the different projects
performed by the Innovation department in addition to propos-
ing new lines of technological innovation in line with the internal
needs defined or detected by the production line.
Technical reporting
Accredited laboratories
153
Aqualia has ten accredited
laboratories, distributed
across Spain, Italy and the
Czech Republic
In 2020, centralised technical reporting has been available on a
monthly basis, encompassing 90% of the company’s operating
perimeter.
This means that centralised technical data is available each
month for all contracts in operation in Europe, Africa and the
Middle East.
Next year, the goal is to extend the perimeter to 100% of the
company’s global operations.
The platform used is Aqualia RT/BI, which translates into Span-
ish, English, French, Italian, Czech and Arabic. Furthermore, it
has the capacity to adapt to any type of technical operation
handled by the company, offering a repository with a very high
value of technical data to support the company’s technical and
economic activities.
In relation to Aqualia’s network of accredited laboratories, over
the course of 2020, several noteworthy initiatives were under-
taken that have made a very clear contribution to these activi-
ties performed by the company.
Firstly, at the start of the year, accreditation was obtained from
ENAC (National Accreditation Institution) for the laboratory in
Badajoz, meaning that the company now has six accredited
laboratories for analysing water in Spain (Badajoz, Oviedo, Léri-
da, Ávila, Jerez de la Frontera and Adeje, in Tenerife).
Furthermore, the other five laboratories passed the ENAC au-
dit, renewing their certification and achieving an unprecedented
expansion in the number of parameters in terms of the activities
of these laboratories, 405 additional parameters in different are-
as: water consumption and packaging, inland water, swimming
pool and marine water.
Finally, in December, accreditation was received from Italy’s na-
tional authorities (ACREDITA), for Laboratorio di Acque Potabili
di San Giuliano located in Italy.
The accreditation process is also under way for the drinking
water laboratory in Vigo, with its accreditation expected to be
confirmed in 2021.
This would bring the company’s number of accredited labo-
ratories to ten, distributed across Spain, Italy and the Czech
Republic.
Also worth note are the activities performed by the company in
terms of monitoring COVID-19; experts at the company, in co-
operation with the CSIC (Spanish Higher Council for Scientific
Research), are analysing the wastewater of different towns in
Castile-Leon, Galicia and Castile-La Mancha.
As part of the same agreement, the company’s staff are receiv-
ing training and comparison exercises are being performed for
the implementation of a PCR technique to be included in the
range of services offered by the laboratory in Oviedo.
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Innovation and technology
Aqualia’s innovation activities are aligned with the European pol-
icies for the transition to a circular economy with a zero carbon
footprint, for which it seeks to develop new smart management
tools and new sustainable services proposals. To this end, the
Innovation and Technology Department supports the compa-
ny in achieving the United Nations’ Sustainable Development
Goals (SDGs) for affordable, high quality water and sanitation
services (SDG 6), improving its energy balance (SDG 7) and
preventing its impact on the climate (SDG 13) through sustain-
able production and consumption (SDG 12).
The following table shows the projects carried out in the Inno-
vation and Technology department in 2020 (in addition to the
completion dates) to strengthen Aqualia’s technological pro-
posal across four lines of work: Quality, Ecoefficiency, Smart
Management and Sustainability.
Work has continued on the other ten projects under way:
1 regional project RIS3 Idepa:
Recarbon.
1 Water Joint Project Initiative
(ERA-NET) project:
MarAdentro.
1 Marie Sklodowska Curie (MSCA) training project:
Rewatergy.
2 projects in the Life programme:
IntExt and Ulises.
2 Bio-Based Initiative (BBI) projects.
B-Ferst and Deep Purple.
3 projects as part of the H2020 programme.
Five projects were due to be completed in 2020:
Run4Life, Sabana and Scalibur.
2 European projects Life:
Methamorphosis and Icirbus4Industries.
1 Interconecta project (ERDF):
Advisor (extended until March 2021).
1 regional project RIS3 Idepa:
ValorAstur.
1 project as part of the EU’s H2020 framework:
Mides.
And thanks to the public tenders in 2019, work has started on
six new projects:
3 European projects Life:
Infusion, Phoenix and Zero Waste Water.
3 projects as part of the EU’s H2020 framework:
Rewaise, Sea4Value and Ultimate.
154
Quality
LIFE Methamorphosis (2020)
Life Zero Waste Water (2024)
Life Infusion (2024)
Intelligent Management
LIFE icirbus4industries (2020)
H2020 Run4Life (2021)
H2020 Rewaise (2025)
Eco-efficiency
RIS3 IDEPA Valorastur (2020)
H2020 Mides (2020)
INTERCONECTA Advisor (2021)
WATERWORKS Maradentro (2021)
RIS3 IDEPA Recarbon (2021)
H2020 Scalibur (2022)
H2020 MSCA REWATERGY (2023)
H2020 BBI Deep Purple (2023)
H2020 BBI B-Ferst (2023)
H2020 Sea4Value (2024)
H2020 Ultimate (2024)
Sustainability
H2020 Sabana (2021)
Life Ulises (2022)
Life IntExt (2023)
Life Phoenix (2024)
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Projects completed in 2020
The following results have been obtained in the five projects in
the final stage in 2020:
RIS3 Valorastur:
With a view to securing ecoefficient treatment, the RIS-3
programme organised by the Institute for Economic Devel-
opment in the Principality of Asturias (IDEPA) has supported
Aqualia’s collaboration with two major public firms and an
SME, Ramso. The SME supplied new drying equipment to
the Grado WWTP to confirm that the material’s calorific val-
ues, obtained during preliminary tests, are almost twice the
amount required for their energy recovery, making it possi-
ble to transform waste into new resources.
In collaboration with the Carbon Science and Technology In-
stitute (INCAR), that forms part of the Spanish Higher Coun-
cil for Scientific Research (CSIC) in Oviedo, new low-cost
absorption materials have been developed (less than €500
/t) using dried treatment sludge, activated via pyrolysis.
The adsorbents can be used to remove odours or support
membrane bioreactor (MBRs). At a MBR plant with a ca-
pacity of 15,000 m3/day, 10% energy savings have been
projected, and in terms of chemical consumption (with
longer filtering periods and 30% less cleaning products),
annual operating costs are reduced by approximately
€50,000, with a return on investment in the material of just
a few months.
The project also saw the implementation of the process
to optimise the process for removing nutrients at the San
Claudio WWTP. The reduction in the cost of electricity, the
reduction in the need to purchase iron salts (due to the op-
timisation of the biological elimination of phosphorus) and
the production of slurries, comes to around €30,000/year,
covering the costs of improving automated control in less
than a year.
Interconecta Advisor:
Cofunded by the CDTI (Centre for Industrial Technological
Development) with ERDF (European Regional Development
Fund) funds, the project has implemented new pre-treat-
ment and co-digestion methods for meat waste (Maguisa)
at the WWTP managed by Aqualia in Guijuelo, supported by
the town hall. The project also benefited from the collabo-
ration of AINIA. A new system has also been developed for
controlling digesters using LIDAR (Laser Imaging Detection
and Ranging) technology to detect foams.
The increase in the production of biogas has been har-
nessed by an ABAD Bioenergy® system for upgrading bi-
omethane, and a dispenser at the WWTP for supplying a
specific vehicle followed by EnergyLab, which has now trav-
elled 15,000 km. As a result of Covid measures, this project
has been extended until March 2021.
ADVISOR has been selected as one of the 101 corporate
actions of #PorElClima 2020, and its impact on reducing
CO2 has been certified by the Carbon Fund for a Sustaina-
ble Economy (FES-CO2) as part of the CLIMA Programme
organised by the Ministry for the Ecological Transformation
and the Demographic Challenge (MITECO).
Furthermore, two demo prototypes were installed at the
WWTP:
• An anaerobic waste treatment reactor with a flow of
250 l/hours using an FBBR bio-electrochemical fluidised
bed, developed as part of the Life Answer project under
a joint patent with the University of Alcalá de Henares
(EP2927196A1) and for which a trademark protection
application has been submitted (Elsar: Electro Stimulated
Anaerobic Reactor).
• Continuous thermal hydrolysis by innovative SME teCH4+
to simply the process and reduce the installation and op-
erating costs of the digestion pretreatment.
Life Icirbus:
Led by Intromac Centro Tecnológico and with six other part-
ners in Extremadura, the project has developed a prototype
at the waste WWTP in Lobón (Extremadura), managed by
Aqualia, to demonstrate the adsorption of metals contained
in some treatment slurs by biomass fly ash involving the firm
Ence. The process has received protection in the form of a
utility model and the treated ash are included as aggregates
in construction material, while the odour of waste slurs are
reduced and added to a compost used on different crops.
Life Methamorphosis:
This project is led by Aqualia in cooperation with five oth-
er entities (Barcelona Metropolitan Area (AMB), FCC Medio
Ambiente, Naturgy, Icaen and SEAT) and has seen two bi-
omethane production demo plants set up:
• The first, at Ecoparc 2 in Besós (Barcelona), co-managed
by FCC Medio Ambiente, integrates three Aqualia patent-
ed technologies (AnMBR for anaerobic membrane treat-
ment, ELAN for the removal of ammonium, and the wash-
ing of biogas ABAD Bioenergy®), to convert leachates
generated by the digestion of solid waste in biomethane,
used in urban rubbish collection lorries.
• The second has seen Naturgy harness slurries and other
waste to supply test vehicles, which have travelled more
than 150,000 km, before being dismantled and analysed
to investigate the impact of biomethane.
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The MIDES project, led by Aqualia, operates the first two desalination plants that are wholly energy self-sufficient in the world, in Dénia
(Alicante, Spain) and Guía de Isora (Santa Cruz de Tenerife, Spain).
The continued development of the LIFE Infusion project to
prepare the design parameters for future AMB resource
recovery projects and to evaluate technologies in Asturias
with another waste manager (COGERSA).
H2020 Mides:
The project, with eleven partners in seven countries, has
seen two demonstration units set up at plants managed by
Aqualia set up in Dénia (Alicante) and Guía de Isora (Tenerife)
in relation to a new green desalination technology, patented
jointly by Aqualia and IMDEA Agua. This microbial desalina-
156
tion cell (MDC) reduces the energy cost of desalination by
up to ten times compared to traditional inverse seawater
osmosis. Instead of electricity, the organic matter of efflu-
ents have been used to activate the bacteria that generate
a change in power, without the need for any external power,
to move salts via ionic exchange membranes while treating
the wastewater effluents that serve as power.
The project has also contributed to the construction of the
desalination innovation centre in Dénia, where a platform has
been constructed to assess different pre-treatments, with
filtering material and multi-membrane pilots. Furthermore,
remineralisation post-treatments and alternative methods of
disinfection without the use of hypochlorite are being op-
timised. In the search for more efficient membranes, bio-
mimetic modules have been installed for the purposes of
testing in Santa Cruz de Tenerife, to reduce the nitrates in
drinking water, which has been demonstrated as a compet-
itive solution compared to conventional options.
In addition to the technological development projects, in-
vestments have been made in scientific training, participat-
ing as an industrial partner in the Rewatergy project under
the H2020 Marie Sklodowska Curie programme for aca-
demic networks in Europe, headed by Rey Juan Carlos Uni-
versity (Madrid). Two researchers have started their PhDs
and are due to begin their internships at Aqualia in 2021:
• At the University of Cambridge (United Kingdom), focus-
sing on the production of hydrogen from the ammonium
in wastewater.
• At Ulster University (Northern Ireland), developing photo
disinfection and electro-disinfection projects to remove
micro-contaminants from drinking water and wastewater.
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Projects due to be completed in 2021
In 2020, another four projects, one as part of the RIS3 pro-
gramme organised by IDEPA in Asturias, one by JPI WATER co-
funded by the CDTI and two as part of the H2020 programme,
are in the final phase of development, and are due to be com-
pleted in 2021:
RIS3 Re-Carbón
Financed by IDEPA using ERDF and led by engineering firm
INGEMAS in cooperation with two SMEs (Biesca and InCo),
Aqualia supports the MCAT institutes (Microwaves and Car-
bons for Technological Applications) at the CSIC’s INCAR
(Carbon Science and Technology Institute) and the CTIC (In-
formation and Communication Technology Centre Founda-
tion) in researching contaminant adsorption methods using
regenerated active carbon and biochar. The goal is to obtain
an advantageous supply of a sustainable adsorbent for ap-
plications in water and gas.
In collaboration with the Hidrotec laboratory in Oviedo, ad-
vanced micro-contaminant analysis methods are developed
to assess the innovative adsorption units using active car-
bon optimised using biochar. Its feasibility as method clean-
ing biogas is being tested at the Jerez, Chiclana and Lleida
WWTPs, in addition to deodourisation at the San Claudio
and Luarca WWTPs. The adsorption of micro-contaminants
and new sensors that facilitate real-time monitoring at the
Grado WWTP and Cabornio DWTP are also being studied.
fund WaterWorks2018 programme, with the participation of
partners in France, Italy and Sweden.
A 400 m2 infiltration system will be constructed at the Medi-
na del Campo WWTP (Valladolid), for the advanced treat-
ment of purified water and its reuse in the groundwater
recharge process. In cooperation with scientific institutes,
system simulation and design tools are being developed,
optimising the operation and costs to eliminate emerging
contaminants, comparing them to those generated by con-
ventional tertiary treatments.
H2020 Sabana
JPI MarAdentro
The “Managed Aquifer Recharge: ADrEssiNg The Risks
Of regenerated water” project is being led by the Institute
of Environmental Diagnostics and Water Studies (IDAEA-
CSIC) as part of the European Horizon 2020 ERA-NETs Co-
The University of Almeria leads eleven partners from five
countries (including the Czech Republic and Hungary) with
three major firms: Aqualia, Westphalia (Germany) and the
Italian food group Veronesi. The project optimises the pro-
duction of new biofertilisers and biostimulating agents using
157
Aqualia aims to transform
the way it interacts with
its stakeholders as part
of its commitment and
the co-creation of
transformational initiatives
algae and work is being completed at the two crop units,
adding a further five hectares and the corresponding bio-re-
fineries at the WWTPs in Mérida and Hellín (Albacete).
H2020 Run4Life
Led by Aqualia, this consortium brings together fifteen enti-
ties across seven countries at four demo locations (Sneek,
in the Netherlands; Ghent, in Belgium; Helsingborg, in Swe-
den; and Vigo, in Spain) to investigate new nutrient recovery
concepts from separating grey and black water. In Sneek,
vacuum toilets, which consume a minimal amount of water
have been installed in thirty two homes, facilitating the direct
thermophilic digestion of sewage in an innovative bioreactor.
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At the customs-free zone in Vigo operates an MBR for grey
water in an office building, which are reused by toilets and
an AnMBR for sewage to generate bioenergy. Several nu-
trient recovery options were tested, followed by advanced
oxidation to eliminate virus and emerging contaminants and
performing greenhouse crop tests to investigate the quality
and safety of the effluents and by-products as fertilisers.
A larger installation is being prepared in at the Balaídos
industrial estate with effluents produced by Citroën, with
FBBR bioelectrochemical technology being assessed (pro-
cess patented by Elsar) for the direct treatment of sewage
using the inoculum generated by the Guijuelo reactor as a
biomass (Salamanca).
At the other two demo sites, encompassing hundreds of
new apartments in Ghent and Helsingborg, organic kitchen
waste was included in addition to the segregation of grey
water and sewerage. In 2020, these homes were inhabited
and the energy and nutrient recovery services came online.
An important part of the project entails dialogue with the
users of the new services and by-products to optimise ser-
vices and water and energy consumption through the de-
centralised management of these systems.
H2020 Scalibur
This project, led by the Technological Institute of Packaging,
Transport and Logistics (ITENE), involving twenty-one part-
ners from ten countries, reached the halfway stage in 2020.
Since the end of 2018, with a total duration of four years, a
focus has been placed on reducing and recovering waste
across Europe. With participation from FCC Environment,
the project is focussed on improving waste transformation
plants in Madrid, Lund (Sweden) and Rome (Italy) to recover
resources and foster the circular economy.
Along these lines, Aqualia has implemented new sludge
treatment processes at WWTP Estiviel (Toledo), with im-
provements to thickness (Orege system) and dual diges-
tion across two phases, simplifying the stabilisation of muds
without the use of heated concrete structures. The project
has facilitated the initial innovation activities at SmVaK in the
Czech Republic to convert organic matter into by-products
and bioenergy.
Ongoing projects
Another four projects in receipt of H2020 funding, launched
in 2019, remained ongoing in 2020, two in relation to BBI
(Bio-Based Industries), and two in the LIFE programme:
BBI Deep Purple
Led by Aqualia and supported by thirteen partners across
six countries, the project implements a new biorefining
model at a demo scale, which includes purple phototrophic
bacteria (PPB) in anaerobic carousels. These bacteria use
solar energy to purify non-aerated wastewater and trans-
form the organic content of wastewater and urban waste
into raw materials for biofuels, plastics, cellulose and new
inputs for the chemical and cosmetics industry.
Aqualia’s initial prototype is in operation at Toledo-Estiviel,
and a demonstration reactor ten times the size of this pro-
totype is planned for the Linares WWTP (Jaén). Parallel ac-
tivities are also planned for the SmVaK WWTP in the Czech
Republic.
BBI B-Ferst
Led by Fertiberia, and with ten partners across six differ-
ent countries, Aqualia is involved in the development of new
bio-fertilisers using urban wastewater and by-products from
the agri-food industry. It analyses the potential of the raw
material recovered in the production of fertilisers in three
countries (Spain, Italy and the Czech Republic) and de-
velops a struvite precipitation system at the Jerez WWTP
(Cádiz), to include recovered phosphorus in a new biological
fertiliser demo plant owned by Fertiberia in Huelva.
Life IntExt
This project, led by Aqualia and supported by the AIMEN
and CENTA technological centres and the University of
Aarhus, in Denmark, supports SMEs in Germany, Greece
and France to optimise low-cost treatment technologies in
small towns. The aim is to minimise the cost of energy, the
carbon footprint and waste, providing sustainable solutions
from an ecological and economic perspective. A platform
for demonstrating these technologies at the WWTP in Ta-
lavera de la Reina (Toledo), which is run by Aqualia is in the
final phases of construction.
Life Ulises
This project, coordinated by Aqualia. Receives support
from three technological centres, CENTA, EnergyLab and
CieSol at the University of Almeria. With a view to optimising
and transforming conventional WWTPs at “energy gener-
ation factories”, eliminating its carbon footprint, anaerobic
pre-treatment using the PUSH reactor is being implemented
at the WWTP in El Bobar (Almeria), which is run by Aqualia,
with two WWTPs in Portugal also subject to assessment.
Hydrolysis-based digestion is improved and the biogas har-
nessed as a vehicle fuel by means of an ABAD BioEnergy®
refining system and a biomethane dispenser.
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Projects launched in 2020
In 2020, work began on six new European projects, taking
the company’s involvement in each of the major European
support programmes, Life and H2020, past ten:
Life Infusion
Once the Life Methamorphosis project came to an end,
AMB took the decision to extend the project to prepare de-
signs for different resource recovery plants. In collaboration
with the EureCat centre for technology and the operator of
Ecoparc 2, EBESA, the leachate digestion system will be
improved with technology developed by Aqualia, AnMBR
and ELAN, adding an ammonium stripping system pro-
duced by Belgian firm Detricon. Two waste management
firms, Cogersa in Asturias and AMIU in the Genoa region
of Italy are responsible for assessing the options for imple-
menting the solutions at their plants.
Life Phoenix
The project, led by Aqualia and supported by CETIM (Mul-
ti-sector Technological Research Centre) and CIESOL (Solar
Power Research Centre), will optimise tertiary treatment to
achieve the most ambitious goals of the new European wa-
ter reuse regulation (EU 2020/741). As part of the assess-
ment of different effluents, for ADP in Portugal, the Regional
Government of Almeria and the Guadalquivir Hydrographic
Confederation, three mobile plants have been designed,
one with a physical and chemical treatment capacity of 50
m3/hour, one with a filtering capacity of 30 m3/hour and one
with an ultrafiltration capacity of 20 m3/hour.
159
Furthermore, European subsidiary Newland Entech has
provided an ozone (O3) and ultraviolet UV disinfection mod-
ule, and Dutch SME MicroLan is responsible for online mi-
crobiological measurements.
Life Zero Waste Water
The project, led by Aqualia, will demonstrate the combined
treatment of urban waste water and the organic part of ur-
ban solid waste at the Valdebebas WWTP (Madrid), with
Canal Isabel II as its partner using the AnMBR anaerobic
reactor, followed by ELAN for water lines, with a capacity of
50 m3/day, facilitating treatment with a neutral carbon foot-
print. The use of FORSU at a municipal level and the option
of connecting to the sewerage system for transporting the
mixture in a unique flow will be subject to assessment.
In addition to the University of Valencia (AnMBR) and the
University of Santiago (ELAN), Portuguese SME Simbiente
is responsible for developing an advanced management
system, with Austrian SME VWS (Vienna Water Systems)
responsible for the online monitoring of microbiology quality.
H2020 Sea4Value
Led by technology centre EureCat, with fourteen partners
across seven countries, the project focusses on recover-
ing resources concentrated brine at seawater desalination
plants (SWDP), with basic scientific developments 100%
funded by the European Union. At least eight innovative
technological solutions are expected to be designed to
enrich the most valuable components of seawater (lithium,
rubidium and cesium) and the recovery of critical raw mate-
rials (magnesium, boron, scandium, gallium, vanadium, indi-
um, molybdenum and cobalt) to a level of purity that makes
it market exploitation feasible.
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Publications and Events
In terms of publications and participation at conferences, fol-
lowing the delays and cancellations resulting from the restric-
tions imposed on account of COVID-19, the Innovation team
only participated at half the number of scientific and profession-
al conferences than was the case in previous years. However,
its work is partially reflected in the documentary “Brave Blue
World” (on Netflix: https://www.youtube.com/watch?v=FxZB-
9pRD2Bo) and more than one hundred and fifty press articles,
as summarised in the attached table, including on the front
page of iAgua | December 2020:
Scientific articles
Sector press
General press
International events
National events
Other
Total
2017
2018
2019
2020
11
117
113
33
18
–
13
131
94
24
31
2
12
108
139
24
19
–
5
63
93
14
11
–
292
295
302
186
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Desalination Innovation Centre in Dénia (Alicante) to recover
brines in addition to new desalination methods, involving the
solar concentration of brine, selective magnesium precipita-
tion, the acquisition of chlorine dioxide and the optimisation
of permeated remineralisation with micronised limestone,
reducing CO2 consumption, cloudiness and the size of fa-
cilities. The roll out of pilot units at different WWTP operat-
ed by Aqualia will be assessed, analysing the technical and
economic impact.
H2020 Ultimate
As part of the “Smart Water Economy” initiative, Aqualia is
involved in two of the five chosen consortia, which receive
up to 15 million euros of support per project. Ultimate, led
by Dutch technology centre KWR, will see nine industry and
water service synergy demonstrations implemented with 27
partners.
At the Mahou WWTP in Lleida, operated by Aqualia, work
is underway to prepare the preparation of the FBBR (Elsar)
and AnMBR anaerobic reactors at a scale of 20 m3/hour to
recover biomethane and power a fuel battery. The codiges-
tion of yeast and support to another of Aqualia’s customers,
Aitasa, are currently being studied.
H2020 Rewaise
The Rewaise project has the highest company engagement
of the five projects chosen as part of the “Smart Water
Economy” initiative, with Aqualia leading 24 partners in-
cluding water firms from the United Kingdom (Severn Trent),
Sweden (Vasyd) and Poland (AquaNet) in addition to sev-
en SMEs to implement new circular economy and digital
management solutions at nine “living laboratories” including
Aqualia facilities in Badajoz, the Canary Islands, Dénia and
Vigo.
Rewaise will allow Aqualia’s strategic lines of technological
development to be enhanced, via sustainable desalination
and new membranes, the recovery of brine materials, the
reuse of wastewater and its transformation into energy and
by-products, in addition to the simulation of water quality,
processes and networks.
Patents
Four new patents were obtained in 2020:
Anaerobic Membrane Reactor (AnMBR, in cooperation
with U. Valencia and UPV):
• US 10,577,266 granted on 03/03/2020
• EP 3225596 B1 published on 20/05/2020
FBBR Bio-Electrochemical Fluidised Bed Reactor
(Elsar, in cooperation with UAH):
• EP 2927196 A1 published on 22/04/2020
Photobioreactor with purple bacteria (ADVANSIST, in
cooperation with URJC):
• EP3546562B1 published on 12/08/2020
Microbian Desalination Cell (MDC, in cooperation with
Imdea Agua):
• EP 3336064 A1 published on 26/08/2020
These patents form part of Aqualia’s industrial property, with
ELAN® (EP 2740713 A1, and its extension EP 3255016 A1),
ABAD Bioenergy® (EP 15382087.3) and LEAR algae reactors
(EP 2875724 B1 y EP 2712917 B1).
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FCC_Annual Report_2020 | Business lines | Infrastructure
161
Infrastructure
The construction area of the
FCC Group recorded a total
order book of 5.16 billion
euros. Gross operating
profit reached 53.6 million
euros and turnover stood at
1.61 billion euros.
Industry analysis _ 163
Activity in the Infrastructure area _ 167
Highlights 2020 _ 180
Sustainability and excellence _ 181
Innovation and technology _ 184
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FCC_Annual Report_2020 | Business lines | Infrastructure
With cumulative experience of 120 years, the Infrastructure
area of the FCC Group is present in 24 countries (Spain, Can-
ada, United States, Mexico, Brazil, Colombia, Chile, Peru, Pan-
ama, Costa Rica, Dominican Republic, Nicaragua, Guatemala,
Romania, United Kingdom, Belgium, Norway, the Netherlands,
Ireland, Portugal, Egypt, Saudi Arabia and Qatar) and its activi-
ties cover all areas of engineering and construction.
It is a leader in implementing transport infrastructure, as well
as residential and non-residential construction. FCC Construc-
ción is currently the fourth largest construction company in
Spain, in terms of contract volume, and in the top 40 in the
world according to the ranking by the international magazine,
ENR (Engineering News-Record). It has proven track-record in
implementing projects under the concession regime, and has a
group of companies dedicated to the industrial sector, grouped
together under the FCC Industrial brand, as well as other activ-
ities related to the construction sector.
In 2020, Infrastructure area of the FCC Group recorded an ag-
gregate total attributable order book of 5.16 billion euros. The
gross operating profit (EBITDA) reached 53.6 million euros and
turnover dropped by 6.3% compared to the previous year to
1.62 billion euros. In 2020, the portfolio of international pro-
jects dropped by 2.1% and the income from domestic activ-
ities increased by 27.6% compared to the previous year, at
over 848 million euros.
Some
activity data
Experience and ability
More than 700 km of tunnels.
More than 8,500 km of roads and motorways.
1,650 bridges.
More than 2,600 km of railways, of which 900 km are high
speed and 326 km are metro.
48 dams and 76 km of wharfs.
More than 4,500,000 m2 of airport runways.
More than 2,300,000 m2 of airport terminals.
More than 3,000 km of oil and gas pipelines.
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163
The outlook for
the construction industry
is highly reliant on the
potential impact
of the Recovery Plan
Salamanca Hospital (Spain).
Industry analysis
Domestic market
Spain
According to the most recent Euroconstruct report, the con-
struction sector in Spain has been no exception, and as has
been the case across Europe, work resumed quickly after the
restrictions put in place during the first wave of the pandemic.
were lifted.
The industry shrank by around 12.5% in Spain. The outlook
for the construction industry is highly reliant on the potential
impact of the Recovery Plan. The lack of a detailed Plan means
that 2021 will be too early to estimate its impact, with projected
growth in 2022 and 2023 estimated at 3.5% and 3.0%, respec-
tively.
In terms of activity, the shock suffered by residential construc-
tion in 2020 (-13.5%) was slightly higher than the industry av-
erage, although stronger growth is forecast for 2021 (+6%). All
new-build construction projects are supported by strong pre-
sales and developers are capable of withstanding a slowdown
in the pace of sales, as there is quite a lot less stock and the
industry is not as indebted as it was during the previous crisis.
In terms of non-residential construction, no collapse is fore-
seen, although signs from the real-estate market are grim as the
crisis has resulted in more companies being forced to close. In
2020, production was down by 16.5% and growth is expected
to be slow (+2.5% annual average for 2021-23).
Finally, in relation to civil engineering, when looking at the se-
quence of production in 2020, with a shrinkage of 7%, and ex-
pected growth of 6% in 2021, this is the closest to a “V”-shaped
recovery possible in the Spanish construction industry.
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164
International
market
Europe
The impact of the first wave of COVID-19 on the European
construction industry was significant. The pace of work in the
industry has recovered, with the drop in production in 2020 lim-
ited to 7.8%. Growth in 2021 is expected to come to 4.1%,
although this will tend to slow down somewhat in the medium
term (3.4% in 2022 and 2.4% in 2023). Despite this, the new
European scenario takes on a clearer “V” shape than was the
case six months ago. As losses in 2020 were lower than ex-
pected, the industry can aspire to resuming the levels of pro-
duction seen in 2019 by 2022.
Some key markets like Germany and the United Kingdom will
form part of the group of countries with a slower pace of re-
covery.
Non-residential construction appears to be replicating the
pattern seen in the middle of the last decade, when it recovered
one to two years after the recovery of residential construction.
Therefore, following a drop of 10.3% in 2020 that was practi-
cally identical to the drop in residential construction, the new
forecast suggests it will virtually stagnate in 2021 (+1.0%).
Industrial construction will continue to shrink in 2021 due to
the severe setbacks forecast for Germany and Scandinavian
countries. Offices and commercial construction will start their
recovery in 2021, although at a much slower pace as growth is
In Europe, there was
a 7.8% drop in production
in 2020, with growth of 4.1%
forecast for 2021
only expected in half of the countries. If the European economy
is capable of putting these exceptional circumstances behind it
in 2022, the pace of growth of non-residential property develop-
ment would be similar to that of residential construction (+3.2%
on average between 2021 and 2023).
Civil engineering is the sub-sector that has managed to make
it through 2020 relatively unscathed (-3.8%) thanks to several
factors: the order book was on the up prior to the outbreak of
coronavirus, the consistency provided by large-scale projects
and lower levels of disruption, as this work is performed in en-
vironments that posed a limited health risk. Furthermore, this
sub-sector has the largest projected growth for 2021 (+5.2%),
meaning that not only will production recover to 2019 levels, it
will also actually see growth of more than 2.0%.
Latin America
Wastewater treatment plant in Glina (Romania).
In 2020, construction in LATAM dropped by 17.3%. Slow pro-
gress in the recovery of construction work and the launch of
new projects in some countries has been affected by the con-
tinuous growth in the number of cases of COVID-19 and the
worsening of the economic environment, which continues to
hamper the sector’s recovery.
Latin America is the region most affected by the coronavirus
pandemic. According to the International Monetary Fund (IMF),
economic activity in Latin America fell by 8.3% in 2020. In 2021,
the economy is expected to recover by 3.6% as external de-
mand and internal activity recover.
In 2021, it is expected that construction output will recover by
up to 0.7%, with Peru and Chile performing strongest, while
a very slight improvement is expected in Colombia and Brazil.
Construction activity in Argentina and Mexico is expected to
continue to fall, although not as drastically as in 2020.
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Grangegorman University, Dublin (Ireland).
North America
The general impact of COVID-19 on the sector involved a sig-
nificant drop in activities in 2020. In 2021, the new infrastruc-
ture plan for the United States, involving investments of 2 billion
dollars (1.68 billion euros) opened a new window of opportu-
nity. The plan includes initiatives including, but not limited to,
transport and real-estate infrastructure projects, including the
maintenance of highways and bridges, ports and airports, and
investments in passenger and freight rail transport.
More than 621 billion dollars will be allocated to modernising
32,000 km of highways and motorways, repairing hundreds of
bridges and renovating ports and airports. Another 300 billion
will be allocated to reactivating the manufacturing industry and
100 billion to improving broadband access in rural areas, in ad-
dition to electrical networks and drinking water as part of other
investments. Also worth mentioning is the 100,000 million dollar
investment in renewable energy with a view to achieving the
target of 100% clean energy by 2035.
165
Middle East
The COVID-19 pandemic has had a major impact on the pro-
jects market in the Middle East. According to recent studies
performed and the analysis of trends, construction companies
in the Middle East are experiencing shutdowns and delays in the
performance of infrastructure projects. One of the consequenc-
es is a significant increase in government deficits and national
debt across all countries in the Middle East. Although monetary
easing and spending will facilitate the potential growth of the
infrastructure sector, no definite recovery period has been es-
tablished.
Investors face a lack of national government financial reserves,
the collapse of the travel and tourism industry and the slow-
down in demand for property, which, when combined, have led
to a lack of liquidity.
Australia
The Australian government has declared the infrastructure in-
dustry as a lever for change in terms of the country’s economic
recovery and growth, There is a staunch commitment to speed-
ing up infrastructure projects to stimulate economic growth as
a result of COVID-19.
In 2021, there are plans to make investments worth 7.5 billion
Australian dollars (5.3 billion US dollars) in transport infrastruc-
ture projects. New South Wales, the most populous state in
Australian, will receive 2.7 billion Australian dollars (1.9 billion
US dollars) in funding and Victoria, hardest hit by the COVID-19
pandemic, will receive a further 1.1 billion Australian dollars
(790.1 million US dollars).
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166
FCC Industrial carries out
its activities in various
sub-sectors, ranging from
manufacturing to operation
and maintenance, as well as
the design and construction
of industrial facilities
North Runway. Dublin Airport (Ireland).
Industrial activity
FCC Industrial carries out its activities in various sub-sectors,
ranging from manufacturing to operation and maintenance, as
well as the design and construction of industrial facilities.
The economic situation in Spain has seen the growth of invest-
ment and internal consumption curbed by the pandemic, al-
though the 2021-2030 National Integrated Energy and Climate
Plan (PNIEC) and the Recovery, Transformation and Resilience
Plan are acting as catalysts for the growth of the renewable
energy and digitisation and new technology sectors.
The increase in uncertainty internationally, different trade rela-
tions and the rise in oil prices will have a moderating effect on
growth. Internationally, oil prices are affecting large international
projects in the oil and gas and fossil-fuel-based power gener-
ation sectors, but there is some growth in renewable energies
worldwide and, in Europe, in waste recovery, sectors in which
FCC Industrial is present as part of the diversification of activi-
ties and markets strategy.
It is also worth noting that the saturation of industrial invest-
ments in the USA and the continued growth of the US econo-
my could precipitate a faster than expected increase in interest
rates (with a negative effect on emerging markets).
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Activity in the
Infrastructure area
167
14 NORUEGA
E6 Ulsberg-Vindasliene motorway.
263 million euros
15 ROMANIA
Bucharest Metro line 5.
470 million euros
Railway lines in
Transylvania and new railway
awards. 1,480 million euros
Design and construction of the
wastewater treatment plant and
sludge incinerator in Glina,
Bucharest.
113 million euros
Modernising the take-off and
landing runway at Bacau airport.
30 million euros
National market 2020
Portfolio of contracts: 1,629.3 million euros
Revenue: 848.8 million euros
International market 2020
Portfolio of contracts: 3,526.4 million euros
Revenue: 762.2 million euros
15
16
17
14
11
10
12
13
1
9
1 SPAIN
Remodelling of Santiago Bernabéu in
Madrid
6 PANAMA
Comprehensive remodelling
of Plaza España in Madrid
Remodelling of Nudo Norte,
in Madrid
Club de Mar Palma Mallorca, in the
Balearic Islands
Closure of the circular road
in Tenerife, the Canary Islands
Expansion of Section 1 and 2 of the
Inter-American Highway to six lanes.
912 million euros
Line 2 branch of Panama metro to
Tocumen Airport.
81.8 million euros
7 COLOMBIA
10 UNITED KINGDOM
16 EGYPT
Section of the A465 dual
carriageway. 665 million euros
Design of Jersey hospital.
32.8 million euros
Abu Rawash wastewater treatment
plant in Cairo.
281 million euros
2 USA
Guillermo Gaviria Echeverri tunnel.
366.7 million euros
11
IRELAND
17 SAUDI ARABIA
Gerald Desmont Bridge in
Los Angeles. 739 million euros
“El Salitre” wastewater treatment
plant.
398 million euros
3 CANADÁ
195 kilometres of Trans-Canadian
motorway.
205 million euros (30 years)
8 CHILE
Parque Mapocho Río.
55 million euros
4 MEXICO
9 PORTUGAL
Buildings of the higher education
centre Dublin Institute of Technology
(DIT) at the Grangegorman campus
(Dublin, Ireland). 220 million euros
New “North Runway” at Dublin
airport.
130 million euros
Remodelling of airport and fire
hydrant system in Dublin Airport.
41.5 million euros
Samalayuca–Sásabe gas pipeline.
225 million euros
Gouvães dam.
17.6 million euros
12 THE NETHERLANDS
Tren Maya. Section 2.
637 million euros
5 PERU
Line 2 and Line 4 branch of
the Lima metro.
3,900 million euros
Luis Bivar residential building.
4.8 million euros
Modernisation of the railway
between Covilhã and Guarda.
61.4 million euros
Extension of the A4 motorway
in Aguas Santas.
13.4 million euros
Section of the Badhoevedorp-
Holendrecht A9 motorway.
845 million euros
13 BELGIUM
Haren prison.
322 million euros
Additional stations on Line 4
of Riyadh Metro. Park and
Ride on Line 4. Science Park
on Line 5. 612 million euros
Lines 4, 5 and 6 of the Riyadh metro.
7,528 million euros
Civil Engineering
New contracts awarded
Industrial
Residential construction
Non-residential construction
In progress
Complete
Hydraulic works
Maintenance
3
2
4
6
7
5
8
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Remodelling of the Santiago Bernabéu Stadium (Madrid, Spain)
Projects in
development
CONSTRUCTION
Residential construction
Building at Av. Luis Bivar 91, Lisbon (Portugal).
Building at Rua Sousa Martins 21, Lisbon (Portugal).
168
Throughout 2020, the construction area
was awarded 23 contracts with an overall
contract volume of approximately 1.51
billion euros
Construction of 114 homes in Cancelada (Málaga, Spain).
Construction of 123 homes in Torremolinos (Málaga, Spain).
Construction of 86 homes in Sant Cugat del Vallés (Barcelo-
na, Spain).
Construction of 68 homes, premises and car parks in Zona
Franca 17-25 de Barcelona (Barcelona, Spain).
Construction of 84 homes and 126 parking spaces in Sant
Joan Despí (Barcelona, Spain).
Construction of 108 homes with commercial premises, ga-
rage and storage (Valencia, Spain).
Construction of 72 homes in Palma de Mallorca (Balearic
Construction of 48 homes in San Sebastián de los Reyes,
Islands, Spain).
Madrid (Spain).
Construction of 86 homes, 2 commercial premises and ga-
rage in the Ensanche de Vallecas neighbourhood (Madrid,
Spain).
Construction of 55 homes in Carmona (Seville, Spain).
Construction of 132 homes in PAU Ciudad Deportiva FC
Barcelona in Sant Joan Despí (Barcelona, Spain).
Construction of 60 homes in Hospitalet de Llobregat (Bar-
celona, Spain).
Construction of 26 homes and parking spaces in Sant Joan
Awarded
In progress
Complete
Construction of 104 homes in Torremolinos (Málaga, Spain).
Despí (Barcelona, Spain).
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169
Construction of 73 homes “Essència de Sabadell” (Barcelo-
na, Spain).
Construction of 77 homes, car park and storage at Avenida
de Navarra 18, in Badalona (Barcelona, Spain).
Non-residential construction
Santa Luzia primary school (Elvas, Portugal).
Construction and maintenance of deodorising systems at
the biomethane production and biogas treatment plants at
the Valdemingómez Technology Park (Madrid, Spain).
Works at the controlled tailings deposit run by the South
Madrid Association, with the expansion of Phase IV, sealing
and degasification of Phase III and the expansion of lea-
chate processing capacity in the towns of Pinto, Getafe and
San Martín de la Vega (Madrid, Spain).
Remodelling of the Santiago Bernabéu Stadium (Madrid,
Spain).
Construction of the Ensanche de Vallecas Municipal Sports
Centro de Tratamiento de Residuos en Loeches, Madrid (España).
Centre (Madrid, Spain).
Lot 4 of the framework agreement for the district of Hor-
taleza in the City Council of Madrid (Madrid, Spain).
Lot 1 of the framework agreement for subsidiary implemen-
tation operations, emergency actions and adoption of secu-
rity measures in municipal buildings (Madrid, Spain).
Lot 2 of the framework agreement for performing rectifica-
tion works on issues in the set of heritage buildings and
those subject to any type of use by the Madrid city council
(Madrid, Spain).
Construction of the Loeches Environmental Recycling Com-
Expansion of San Juan de Dios Hospital (Seville, Spain).
Expansion of the “Las Marinas” integrated waste process-
ing plant in El Campello (Alicante, Spain).
Expansion and renovation of Soria hospital (Soria, Spain).
plex (Madrid, Spain).
Comprehensive renovation of the tourist parador in León
Awarded
In progress
Complete
Drafting of project and modification of the Las Dehesas cen-
tre at the Valdemingómez Technology Park (Madrid, Spain).
Construction of the new Airbus central offices campus in
Getafe (Madrid, Spain).
(Spain).
Construction of Victoria Adrados communal centre, (Sala-
manca, Spain).
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170
Connection of Renault Valladolid warehouses (Valladolid,
Railways
Spain).
Salamanca hospital (Salamanca, Spain).
Phase 0 of the Master Plan for the A Coruña University Hos-
pital Complex (A Coruña, Spain).
Construction of the new complex in the Administration Dis-
trict of the Generalitat (Barcelona, Spain).
Construction of the cold store for CILSA/CAPRABO at the
Port of Barcelona (Barcelona, Spain).
Construction of the GRIFOLS office building on Avenida
Generalitat and connecting underpass to the existing cor-
porate building in Sant Cugat del Vallès (Barcelona, Spain).
Renovation of the Philosophy and Humanities building of
the University of Zaragoza (Zaragoza, Spain).
Construction of the Business Creation Centre of the Univer-
sity of Alicante (Alicante, Spain).
Corporate construction
42 homes in Tres Cantos (Madrid, Spain).
40 homes in Tres Cantos (Madrid, Spain).
116 homes in Alcalá de Henares (Madrid, Spain).
40 homes in Valdebebas, (Madrid, Spain).
144 homes in Arroyofresno (Madrid, Spain).
85 homes in Tres Cantos (Madrid, Spain).
42 homes in Arroyofresno (Madrid, Spain).
Rehabilitation of the railway between Pinhão and Tua (Por-
tugal) (awarded in 2020).
Modernisation of the railway between Covilhã and Guarda
(Portugal).
Improvement works to subsection 2.3 (Alfarelos/Pampilho-
sa) of the North railway line (Portugal).
Line 1 railway diversion at the finca Adoc section (Alicante,
Spain).
Improved accessibility and adaptation to the interchange
regulations of Maragall station, (Barcelona, Spain).
Line 10 of the Valencia metro, infrastructure of the ramp on
Calle Amado Granell – Hermanos Maristas station (Valencia,
Spain).
Ferrocarriles de la Generalitat Valenciana TRAM network.
Lowering and adaptation of the Line 1 and Line 9 platforms
and renovation of the sidings and railway installations in Be-
nidorm (Alicante, Spain).
Track assembly and access (Leon, Spain).
Maintenance of the north-east high-speed line. Brihuega
and Calatayud bases (Catalonia, Spain).
Maintenance of the north-east high-speed line. Montagut,
Vilafranca and Sant Feliu bases (Catalonia, Spain).
Grangegorman University (Dublin, Ireland).
Awarded
In progress
Complete
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171
Trackbed works on the Totana-Lorca section of the Mur-
cia-Almeria high-speed line (Spain).
Works on platforms across Line 12 of the Madrid metro.
Hospital de Móstoles-Conservatorio (Spain) (awarded in
2020).
Contract for the assembly of the high-speed line between
León and Asturias. Section: La Robla-Campomanes (As-
turias, Spain).
High-speed track assembly contract for the Campobecer-
ros-Tabodela section (Galicia, Spain).
Contract for the renovation of Ciudad Real-Badajoz track,
Cabeza de Buey-Castuera section (Badajoz, Spain).
Adaptation of the Sagunto-Teruel-Zaragoza line. Estivella,
Teruel, Ferreruelas and Cariñena stations (Spain).
Trackbed works on the Nijar-rio Andarax section of the Mur-
cia-Almeria high-speed line (Spain).
Infrastructure Maintenance and Conventional Network
Track for ADIF - Lot 1 Centre (Spain).
Covilhã and Guarda railway line (Portugal).
Maintenance of the south high-speed line. Hornachuelos
Infrastructure Maintenance and Conventional Network
(Cordoba) and Antequera (Malaga) bases (Spain).
Track for ADIF - Lot 6 South (Spain).
Renovation of the Prosperidad station on Line 4 of the Ma-
drid Metro (Madrid, Spain).
Renovation of the Esperanza station on Line 4 of the Madrid
Metro (Madrid, Spain).
Renovation of the Arturo Soria station on Line 4 of the Ma-
Mediterranean Corridor rail link. Installation of track super-
structure between Vandellós and Secuita - Camp Tarragona
station (Spain).
Rail corridors in Romania.
Complete replacements of track devices given the condition
of the materials in the southern head of Puerta de Atocha
station (Madrid, Spain).
Construction of the Vila Franca de Xira connection branch
(Portugal).
Metro Maintenance. Approximately 50% of the Madrid Met-
ro network is currently being maintained (Madrid, Spain).
Replacement of the Ciudad Real-Portuguese border con-
ventional network bridge (Badajoz, Spain).
drid Metro (Madrid, Spain).
Accesses to La Sagrera station (Barcelona, Spain).
Removal of the level crossing at the entry to Monfragüe lo-
Valladolid arterial railway network. East diversion (Spain).
cated on the conventional line (Cáceres, Spain).
Awarded
In progress
Complete
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Maritime
Expansion of the Port of Playa Blanca, Lanzarote (Canary
Islands, Spain).
Port Adriano, rehabilitation of the breakwater, Mallorca
(Balearic Islands, Spain).
Berthing of liquid bulk project on the bottom bank of the
South Dock at the Port of Castellón (Castellón, Spain).
Expansion of the esplanade on the Poniente Norte pier in
the Port of Palma de Mallorca (Balearic Islands, Spain).
Baleares wharf at the Port of Tarragona (Tarragona, Spain).
Refurbishment of Club de Mar de Mallorca in Palma de Mal-
lorca (Balearic Islands, Spain).
Expansion of the attached dock at the Port of Barcelona
(Barcelona, Spain).
Functional improvements to the seawall at the Olympic Port
in Barcelona (Barcelona, Spain).
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Castrovido Dam, Burgos (Spain).
Hydraulics
Gouvães dam (Vila Pouca de Aguiar, Portugal).
Project and adaptation work as part of the National Water
Quality Plan WWTP El Endrinal in T.M. Collado Villalba (Ma-
drid, Spain).
Construction of the Castrovido dam (Burgos, Spain)
Heightening of the Yesa dam (Navarre, Spain).
Construction of the storm tank for the WWTP Galindo, (Viz-
caya, Spain).
Work to adapt the WWTP Getafe Sur, (Madrid, Spain).
Construction of the Asón general collector. Section: Colin-
Construction of a storm reservoir in the area of Arbeyal (Gi-
dres-Ampuero, Cantabria (Spain).
jón, Spain).
Awarded
In progress
Complete
Distribution network works for the Segarra-Garrigues Sys-
tem (Lleida, Spain).
Distribution network implementation for sector 6 of the Se-
garra-Garrigues system in Verdú (Lleida, Spain).
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Roads
Connecting road between Mondim de Basto and the EN210
road in Cabeceiras de Basto (Portugal).
Extension of the A4 motorway in Aguas Santas (Portugal).
Tâmega and Oura bridges (Portugal).
Construction on the remodelling of Calle 30 North inter-
change (Madrid, Spain).
Emergency works: repair and refurbishment of embank-
ments in Cartagena (Murcia, Spain).
Construction of “Anillo Insular de Tenerife” (Canary Islands,
Spain).
Construction of the section connecting the C-3223 to Yecla
with the N-344 (Murcia, Spain)
Expansion of the access routes to El Altet airport (Alicante,
Spain).
Vallirana tunnel, Catalonia (Spain).
Construction of road tunnels in Plaza de les Glòries (Barce-
lona, Spain).
Jaca-Navarra motorway (A-21). Jaca-Santa Cilia section,
Urbanisation
Huesca (Spain).
Urbanisation of plot T.P.T 10 in “A. R. Nuevo Tres Cantos”
(Madrid, Spain).
173
Sanitation network, transformation centre and reflection
centre at the U.Z.P. 2.04 Los Berrocales (Madrid, Spain).
N-340 road from Cádiz and Gibraltar to Barcelona via Mala-
ga. Vallirana bypass section (Barcelona, Spain).
Awarded
In progress
Complete
Urbanisation of stage 1 of U.Z.P. 2.04 Los Berrocales (Ma-
Urbanisation of the new roundabout in Vara del Rey
drid, Spain).
(Logroño, Spain).
Remodelling of Plaza de España and its surroundings (Ma-
Urbanisation of U.A. 78 of PGOUM in Sabadell (Barcelona,
drid, Spain).
Spain).
Renovation of the La Gavia park Phase II (Madrid, Spain).
Urbanisation of A.P.E. 027 Nuevo Mahou-Calderón (Madrid,
Spain).
Urbanisation of the C. Leonardo da Vinci, Miquel Romeu,
Av. Carrilet and Ctra. del Mig in Hospitalet de Llobregat (Bar-
celona, Spain).
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Dublin Airport Fuel Farm (Ireland).
Industrial
Electrical installations (Dominican Republic).
Maintenance of Iberdrola electrical networks (Spain).
Electromechanical installations Riyadh metro (Saudi Arabia).
Maintenance for Cedinsa in Catalonia (Spain).
174
Overhead electrification in accesses to La Sagrera, Barcelo-
na (Spain).
Maintenance contracts for electrical networks in different
provinces across Spain.
Electromechanical installations at the provincial headquar-
ters of Spain’s postal service (Seville, Spain).
Photovoltaic installations in Adeje and Chafira, Tenerife (Ca-
nary Island, Spain).
Maintenance of thermosolar power plants (Spain).
Espejo photovoltaic farm (Córdoba, Spain).
Francisco Pizarro 590 MWp photovoltaic farm (Cáceres,
Spain).
Refurbishment of the Maragall metro station in Barcelona
(Spain).
Repair of the pump station in Fuente Álamo (Murcia, Spain).
Refurbishment project for Córdoba prison (Spain).
Maintenance at Hotel Silken in Seville (Spain).
Air conditioning/heating installations at Hospital del Sur,
Tenerife (Canary Islands, Spain).
Maintenance of Madrid Este installations (Spain).
Maintenance of the data processing centre (DPC), Murcia
Maintenance of tunnels in Madeira (Portugal).
100 MW photovoltaic farm in Puertollano (Ciudad Real,
(Spain).
Samalayuca-Sasabe gas pipeline (Mexico).
Storage of fuel at Dublin Airport (Ireland).
Awarded
In progress
Complete
Spain).
Electromechanical installations for the hospital in Salaman-
50 MW photovoltaic farm in Barcience, Bargas (Toledo,
ca (Spain).
Spain).
Maintenance of air conditioning/heating installations at Hos-
Energy efficiency and lighting contracts across different cit-
pital Candelaria (Spain).
ies in Spain.
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175
Lines 4-5-6 of Riyadh Metro (Saudi Arabia).
Line 2 and branch line 4 of Lima Metro (Peru).
Maintenance of tunnels in Figueras, Catalonia (Spain).
MAINTENANCE AND CONSERVATION
Maintenance of Hospital Campus de la Salud in Granada
(Spain).
Maintenance of Army installations - SUIGEPIR.
Maintenance of Teatro Real in Madrid (Spain).
Road maintenance and conservation
Maintenance of roads for city councils
Conservation of high capacity roads in Gran Canaria (Ca-
Maintenance of roads in Huelva (Spain).
Maintenance of the Directorate General of Traffic (DGT)
nary Islands, Spain).
school in Mérida (Badajoz, Spain).
Intercom Renfe suburban stations (Spain).
Maintenance of Line 9 of Barcelona metro (Spain).
Data processing centre (DPC) in Torija (Guadalajara, Spain).
Awarded
In progress
Complete
Assistance with roadways, ordinary maintenance, works
and installations on the E-15/AP-7 Mediterranean motor-
way between Almussafes and Sant Joan d’Alacant (Spain).
Conservation and operation of roads in Sector V-08. Prov-
ince of Valencia (Spain).
Provision of services as part of 20 conservation contracts
for different authorities: Ministry of Transport, Mobility and
the Urban Agenda, Regional Government of Extremadura,
Guipuzkoa Provincial Council, Palencia Provincial Council,
SEITT and AUCONSA.
Maintenance of transport systems
Maintenance of the Zaragoza and Murcia trams (Spain).
Maintenance of overhead lines, substations and train sta-
tions for Ferrocarriles de Generalitat Valencia, in Alicante
province (Spain).
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176
Hydraulic infrastructure maintenance
Environmental restoration
Operation, maintenance and conservation of the Cancho
del Fresno, Ruecas, Sierra Brava, Gargáligas, Cubilar, Azud
de Ruecas, Alcollarín and Búrdalo dams (Spain).
Construction of the O’Donnell green belt. Phase V for Ma-
drid City Council (Madrid, Spain).
Operation, maintenance and conservation of dams in zone
3 of the middle basin of the River Guadiana (Spain).
Environmental services
Provision of the service contract to optimise the functioning,
updating, maintenance and joint operation of automatic hy-
drological data systems and flow volume measurement sta-
tion control networks for the Júcar River Authority (Spain).
Emergency work to repair the damage suffered by infra-
structures, rivers and riverbeds in the Segura River Authority
(Spain).
Management of emergency
and forest fire services
Prevention and extinction of forest fires in the eastern part of
the Community of Madrid (Spain).
Fire prevention for the Provincial Fire Brigade of the Region
of Castellón (Spain).
Control of vegetation in the area surrounding the overhead
electrical lines in western and southern Madrid for Iberdrola
(Spain).
Management of recycling points in National Heritage histor-
ical gardens (Spain).
Reforestation plan for the Riofrío forest in San Ildefonso,
Madrid (Spain).
Conservation of River Manzanares where it passes through
the municipality of Madrid (Spain).
Environmental conservation of La Herrería Forest in the mu-
nicipality of El Escorial (Madrid) for National Heritage (Spain).
Conservation and cleaning of Bosquesur, for the Communi-
ty of Madrid (Spain).
Conservation of the vegetation on the banks of ADIF lines in
central and southern Spain.
Yesa dam, Navarre (Spain).
Awarded
In progress
Complete
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177
PREFABRICATED CONSTRUCTION
Supplies for hydraulic conduits
Concrete pipes with sheet metal sleeves:
Execution of works included in the comprehensive project
to modernise the hydraulic infrastructure owned by Co-
munidad de Regantes Santa Cruz de Alcolea de Cinca, in
Huesca (Spain).
Execution of works to modernise the Canal de Pinyana irri-
gation system in Lleida (Spain).
Burying the overhead section of Coll de Balaguer in Tarrag-
Comunidad de Regantes de Sodeto in Huesca (Spain).
Glass-Fibre Reinforced Pipes (GRP)
ona (Spain).
Regulator basin and transport line for the irrigation area
owned by Comunidad de Regantes de Almacellas in Lleida
(Spain).
Irrigation of Sector XI of Canal de Monegros, Comunidad de
Modernisation of irrigation in Sector VII of the Páramo Bajo
Regantes de Orillena in Huesca (Spain).
irrigation area (Spain).
Direct connection channel in Huelva (Spain).
More than 31 kilometres of concrete
pipe with steel jacket.
17.76 kilometres of glass-fibre
reinforced pipes (GRP).
55,800 concrete sleepers of various
types.
More than 3,700 metres pre-stressed
pre-fabricated sheets for tracks without
ballast.
Project to modernise the irrigation used by Comunidad de
Regantes La Campaña in Castejón del Puente, Huesca
(Spain).
Replacement of pipes in Villagonzalo, Salamanca (Spain).
Renovation of the sump at Cuesta de Valderremata in
Valdemoro, Madrid (Spain).
Updated project for the irrigation pumping station and net-
work for Sector XV of Subzona de Payuelos, irrigation area
of the Riaño, León and Valladolid dam (Spain).
Supplies for railway contracts
Assembly of the La Robla–Campomanes line, Asturias
(Spain).
Integration of the León railway and connection lines, León
(Spain).
Awarded
In progress
Complete
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CORPORATE IMAGE
CONCESSIONS
Implementation of a new corporate image for Renault Eu-
rope in Spain, Portugal and Italy.
As a result of the different measures implemented to reduce
mobility, there has been an impact on concessions relating to:
Supply of the new Nissan logo for Europe.
Implementation of the image restyling project for Nissan Eu-
rope in dealerships in Spain, Italy and Portugal.
New brand image for YAMAHA Europe for its network of
“Marine” dealers in Europe.
Supply of all image elements for BP service stations across
Europe.
Supply and installation of indoor furnishings for Fiat dealer-
ships across Europe.
Involvement in the development of prototypes for KIA’s new
logo.
Supply and installation of corporate image elements for KIA
in Spain.
Supply and installation of corporate image elements for Alfa
Romeo, Fiat, Jeep and Abarth dealers in Spain, Portugal,
France, Italy, Germany, Poland and the Czech Republic, in-
cluding indoor image elements for electric vehicle dealers.
Supply of anti-COVID protection screens.
• Urban public transport, including the tram systems in Mur-
cia and Zaragoza, where there has been a significant reduc-
tion in the number of passengers (over 45%) despite service
levels being maintained to guarantee social distancing.
• Road transport, including the Cedinsa, Ibiza-San Antonio
motorway and Conquense motorway concessions, which
have seen volumes of traffic fall by between 22% and 38%
due to the mobility restrictions imposed by the authorities.
• Lease of office spaces, as is the case of WTCB and Urbic-
sa, where buildings and their facilities have been adapted to
guarantee social distancing and tenants have been offered
maximum options to ensure that any impact on their activi-
ties is limited as far as possible.
• Maintenance of health centres, including health centres in
Mallorca, in the Balearic Islands, where all staff have stepped
up their commitment and joined forces with the health au-
thorities to offer residents the best possible service.
• Construction concessions, such as the Lima metro (Peru)
or Haren prison (Brussels), where, given the number of work-
ers involved in construction, very significant measures have
been taken to prevent COVID infections.
Awarded
In progress
Complete
Line 2 and branch line 4 of Lima Metro (Peru).
Roads
Conquense motorway, Spain (100% FCC): the average
daily intensity of the motorway in 2020 was 16,497 vehi-
cles, down by 38.89% in light vehicles and 7.10% in heavy
vehicles compared to the previous year.
Ibiza - San Antonio motorway, Spain (50% FCC): the av-
erage daily intensity of the motorway in 2020 was 26,740
vehicles, down by 28.94% in light vehicles and 28.30% in
heavy vehicles compared to the previous year.
Cedinsa Eix Llobregat, Spain (51% FCC): the average dai-
ly intensity in 2020 was 16,369 vehicles, down by 24.4% in
light vehicles and 11.3% in heavy vehicles compared to the
previous year.
Cedinsa d’Aro, Spain (51% FCC): the average daily inten-
sity in 2020 was 22,854 vehicles, down by 24.4% in light
vehicles and 17.4% in heavy vehicles compared to the pre-
vious year.
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179
Zaragoza tramway (16.60% FCC): in 2020, there were
15,743,237 ticket validations which represents a drop in
demand of 45.48% compared to the previous year.
Lima Metro Line 2, Peru (18.25% FCC): design, financing,
construction, electromechanical equipping, systems equip-
ment and provision of rolling stock, operation and mainte-
nance for a period of 35 years on a payment for availability
basis.
Social
Health Centres in Mallorca, Balearic Islands, Spain (82.5%
FCC): 2020 was the tenth year of operation, with 83,945
people and 187 consulting rooms in its area of influence.
Urbicsa (29% FCC), Barcelona, Spain: 2020 is the thir-
teenth year of operation, with occupancy in offices and rent-
al premises at 94.12%.
World Trade Centre Barcelona, S.A., Spain (24% FCC): In
2020, occupancy was 93.3% in premises and offices.
Haren Prison, Belgium (15% FCC): this contract covers
the design, construction and maintenance for 25 years on
a payment for availability basis of a new prison complex in
Haren, near Brussels.
Gerald Desmond Bridge, Los Angeles (USA).
Cedinsa Ter, Spain (51% FCC): the average daily intensi-
ty of the motorway in 2020 was 21,303 vehicles, down by
22.7% in light vehicles and 6.2% in heavy vehicles com-
pared to the previous year.
Cedinsa Eix Transversal, Spain (51% FCC): the average
daily intensity in 2020 was 13,098 vehicles, down by 25.9%
in light vehicles and 7.6% in heavy vehicles compared to the
previous year.
Underwater tunnel in Coatzacoalcos, Mexico (26% FCC):
the concession lasts for 30 years. The design and delivery
of the underwater tunnel is the first construction of this type
in Mexico and also the first in Latin America.
Mersey Bridge in Liverpool, United Kingdom (25% FCC):
contract for the design, construction, financing, mainte-
nance and operation, on a payment for availability basis.
The bridge, opened in October 2017, serves some 80,000
vehicles per day.
A-465 Heads of the Valleys dual carriageway: in October,
the sum of 720 million euros was formally secured as part
of the contract for the construction, financing, maintenance
and operation of the expansion of the 17.3-km stretch of the
A-465 dual carriageway between Dowlais Top and Hirwaun
in Wales. The construction phase has now begun.
Metro and tramways
Murcia tramway, Spain (50% FCC): in 2020, there were
2,920,330 ticket validations which represents a drop in de-
mand of 46.12% compared to the previous year.
Ports
Line 9 of the Barcelona Metro, Spain (49% FCC): 2020 is
the fifth year of being open to the public and the service has
worked normally.
Torredembarra Port: concession for a marina in Torredem-
barra.
FCC also has a minority stake in two tramways in Barcelona
(Tranvía Metropolità del Besòs and Tranvía Metropolità).
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FCC_Annual Report_2020 | Business lines | Infrastructure | Highlights 2020
Highlights_Infrastructure_2020
January
March
May
July
September
FCC Construcción wins the
contract for designing and
constructing the E6
motorway between Ulsberg
and Vindasliene (Norway).
FCC Industrial becomes the
first “Zero Residue”
construction firm (Spain).
FCC Construcción wins, in
cooperation with Carso
Infraestructuras y Construcción
(CICSA), the contract for the
design, construction and
maintenance of section 2 Tren
Maya (Mexico).
The Primary Health Care Authority in
Mallorca chooses a health centre, run by
FCC Construcción (UBS El Molinar) for its
COVID-19 Response Centre (Balearic
Islands, Spain).
FCC Construcción rolls out a
series of social and
corporate actions to face the
health crisis caused by
SARS-CoV-2 (COVID-19).
FCC Construcción wins the
contract for designing and
constructing the new
hospital in Jersey.
The Life Impacto Cero project, by FCC
Construcción, a success story (Spain).
4
3
5
2
1
6
8
7
FCC Construcción commissions
Line 5 of the Bucharest metro, the
first major transport infrastructure
opened in Europe following the
outbreak of COVID-19 (Romania).
FCC Construccións starts work to
drill the Ergos tunnel, as part of the
“Anillo Insular de Tenerife” project
(Tenerife, Spain).
FCC Construcción secures
various contracts: Nudo
Norte (Madrid);
improvements to Dic de
Recer (seawall) at the
Olympic Port in Barcelona;
and the construction and
maintenance of different rail
lines owned by Rodalies de
Barcelona (Spain).
10
9
11
November
FCC Construcción registers its carbon
footprint for the eighth time in the
Carbon Footprint Registry, offset and
absorption projects held by the
Ministry for the Ecological Transition
and the Demographic Challenge
(Spain).
FCC Construcción completes work on
the first cable-stayed bridge built in
California (Los Angeles, USA).
RRC receives acknowledgement from
the Portuguese Association for
Business Ethics (Portugal).
12
February
April
The concession holder for the Lima metro in
Peru receives the Structured Financing of the
Year Award from LatinFinance magazine.
The “Refurbishment of Plaza España” project
becomes the main municipal construction
site on account of its specific nature and
urban impact (Madrid, Spain).
The occupational insertion project
“Expansion and refurbishment of the hospital
in Soria” by FCC Construcción, is selected as
an example of best practice by the European
Commission (Soria, Spain).
FCC Construcción becomes the
first construction firm in the world
to join the UN's “Sustainable
Investments and Finance” group.
FCC Construcción makes progress
with the construction of hospitals
in Soria, Salamanca and San Juan
de Dios (Seville, Spain).
June
FCC Construcción wins the “Best Global
Projects” award from ENR international
magazine for its projects: Panama Metro
line 2 (Panama); Improving access to the
city of Iquique (Chile); and the El Alamein
desalination plant (Egypt).
FCC Construcción participates at the
event to celebrate the 30th anniversary
of the construction of the KIO towers
(Madrid, Spain).
August
October
December
FCC Construcción becomes the first
Spanish construction firm to have a third
party verify del the carbon footprint of
more than 70% of its domestic and
foreign activities.
FCC Construcción secures the
funding for the project to expand
sections 5 and 6 of the A465 dual
carriageway in Wales.
FCC Construcción receives the 2019
Best Infrastructure Award for the
“Variante de Vallirana (B-24)” project
(Catalonia, Spain).
FCC Costruction, over 12
years committed to equality.
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Sustainability and quality
Sustainability
181
Aligned with the SDGs
Sustainable construction
We are aware of the importance of complying with the United
Nations 2030 Agenda to eradicate poverty and promote sus-
tainable and equal development in the period 2016-2030. FCC
Construcción has integrated the Sustainable Development
Goals (SDG) into its activities and model for creating value.
A balance has been struck between the material aspects of the
organisation and the SDGs. Likewise, the 2017-2020 Manage-
ment Objectives for the Management and Sustainability System
are linked to the SDGs.
We would like to highlight the CEO of FCC Construcción’s com-
mitment to the SDGs, which we understand to be a new, unit-
ed and responsible approach from which companies can, and
should, contribute to the creation of a more sustainable world
and the dissemination and training of employees on SDGs with
training sessions, courses and awareness campaigns. In 2020,
seven training initiatives were organised and we have participat-
ed in the #ApoyamoslosODS campaign.
FCC Construcción believes that the achievements reached and
processes developed should be the normal behaviour and part
of the culture of the construction sector worldwide and that it
should provide the community with the knowledge and criteria
acquired which is why it participates and leads multiple fo-
rums and national and international technical committees.
Some of the most relevant organisations with which FCC Con-
strucción partners in setting sustainability criteria related to
construction are: the International Standardization Technical
Committee ISO/TC59/SC17 “Sustainability in Building Con-
struction”, the European Committee CEN TC350 “Sustainability
of Construction Works “, the International Technical Committee
ISO/TC207” Environmental Management “, the Scientific-Tech-
nical Association of Structural Concrete, the Technical Asso-
ciation of Ports and Coasts-PIANC, the National and Interna-
tional Committee of Large Dams (ICOLD and SPANCOLD), the
Corporate Responsibility Committee of the EIC or the SEOPAN
Quality, Environment and R&D Committees, among others.
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182
Environmental management
Commitment
to climate change
Circular economy
FCC Construcción has an Environmental Management System,
certified according to ISO 14001, covering almost 100% of its
activity.
The company has also implemented a Best Practices® system,
on top of legislative or contractual requirements or those from
any other source, and actions that guarantee improved environ-
mental results. The system is made up of a series of measures
performed voluntarily by the FCC Construcción projects, so that
these measures establish more ambitious environmental objec-
tives than those established by the applicable environmental
legislation or the requirements of customers or third parties. The
application of these best practices aims to prevent or minimise
the environmental impacts of the projects.
At FCC Construcción, the circular economy represents a fun-
damental strategy for reducing the impact of our activity on the
environment, improving the efficiency of productive activities,
extending the life and optimising the use of the resources we
use and minimising the waste we generate.
In 2017, FCC Construcción structured its progress towards the
circular economy around the Ellen MacArthur Foundation’s Re-
SOLVE framework and in 2018 it signed up to the Pact for a
Circular Economy, promoted by the Spanish Ministries of Envi-
ronment and Economy. In 2019, the subsidiary FCC Industrial
was the first construction firm to obtain certification of its “Zero
Waste” from the waste management traceability system, which
guarantees the recovery of at least 90% of the waste generated
as part of a project, and, therefore, avoiding it ultimately being
taken to a landfill.
We are aware of the importance of integrating climate change
management into our activity; for this reason, as the leading
Construction Company in Spain, we have been verifying our
Greenhouse Gas (GHG) emissions since 2010. In addition,
since 2012, FCC Construcción has held the AENOR “Environ-
ment CO2 verified” carbon footprint certificate.
We were the first construction company to register their
carbon footprint in the “Carbon Footprint Registry, offset and
absorption projects” at the Ministry for Ecological Transition and
the Demographic Challenge, which has given us the “calculate
and reduce” stamp in recent years.
In 2017, we published a strategy to combat climate change
and started to implement the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD) working
group at the Financial Stability Board.
One of FCC Construcción’s 2017-2020 Management Objec-
tives is to extend the verification of the greenhouse gas (GHG)
emissions inventory to international level, so that 100% of the
activity would be verified under Standard ISO 14064-1:2012 in
2020. In order to meet this objective, in 2020, AENOR verified
the greenhouse gas emissions produced across 12 countries
in 2019, accounting for 70% of the FCC Construcción activity
in that year.
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Quality
183
Service excellence
Customer satisfaction
Awards in 2020
The participation of FCC Construcción in any infrastructure pro-
ject involves offering a company with 120 years’ experience
in the sector, with great technical ability, and a firm commitment:
to efficiently overcome challenges. This all comes with absolute
respect for the environment, while promoting development and
innovation through the use of the best construction techniques.
FCC Construcción’s priority is to meet the needs of its cli-
ents, with the commitment to fulfil their requirements with
quality guaranteed. The main objective is excellence in the per-
formance of the work by providing personalised attention and
ongoing dedication, always focusing on fulfilling their expecta-
tions.
In its work, FCC Construcción creates value for society and
for its shareholders, providing the management and services
required to design, build and operate infrastructure and services
that efficiently, sustainably and safely contribute to the well-be-
ing of people. In this respect, the company contributes solu-
tions aimed at improving society, sustainable development
and the well-being of people.
Clients assess FCC Construcción’s activity every year. In all the
surveys combined, the most valued attributes are the profes-
sional abilities of the construction team, consideration of
customers’ instructions and the ability to deal with prob-
lems and unexpected events that arise in the project. These
ratings remain high, year after year, and confirm our expecta-
tions.
In line with its objective of continuous improvement, to get rec-
ognition by stakeholders and give greater confidence to its cli-
ents, FCC Construcción has its system certificated for almost
100% of its business.
These excellent results enable us to state that the stringency
and quality of FCC Construcción are factors that set us apart
from the competition.
Follow this link to see the awards received in 2020.
Management pioneers
The Management and Sustainability System at FCC Con-
strucción is a dynamic system that constantly adapts to the
new challenges and processes required by the market. FCC
Construcción has always stood out as a pioneer in the imple-
mentation of the latest developments and management sys-
tems, and is the only ISO 44001 certified company in Spain
for the management of collaborative business relationships.
In order to demonstrate compliance to third parties and great-
er transparency in its management, the company has its Man-
agement and Sustainability System certified by an accredited
external agency.
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FCC_Annual Report_2020 | Business lines | Infrastructure | Innovation and technology | Page 1 of 2
Innovation
and technology
FCC Construcción promotes an active technological develop-
ment policy, with a firm commitment to research, sustainability
and contribution to the quality of life of society as a differentiat-
ing factor in the current, highly competitive and internationalised
market. The development and use of innovative technologies to
carry out the works additionally involves an intrinsic added value
for the company.
Nationally, during 2020, work has been done mainly on the following projects:
As part of its activity, FCC Construcción and its investee com-
panies develop projects in conjunction with other companies in
the industry, often with technology-driven SMEs, which makes
it possible to perform open innovation projects with a partici-
pation in the value chain and, occasionally, on a horizontal co-
operation basis. Some of the projects are also carried out in
consortia with Public Authorities, such as the European LIFE
“Impacto Cero” project, “Development and demonstration of an
anti-bird strike tubular screen for High Speed Rail lines”, with
the participation of the Spanish Railway Infrastructure Manager
(Adif), or the BICISENDAS “Sustainable, energetically self-suf-
ficient, smart, anti-pollution, integrated and safe bicycle lane”
project, where actions are taken with different city councils to
roll out this pilot bicycle lane project.
Internationally, FCC Construcción has worked on the follow-
ing project:
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FCC Construcción, due to its solid position in the market and
having a competitive advantage in the sector, uses the different
available mechanisms to protect industrial and intellectual prop-
erty in the processes it deems strategic.
185
In 2020, the protection was performed in the following processes:
New corporate headquarters “Campus Airbus Futura”, in Getafe (Madrid, Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Business lines | Cement
The Cementos Portland
Valderrivas Group is a
Spanish Multinational firm
leader in the production
of cement, concrete,
aggregates and mortars
that uses the most
advanced technologies
in all its production
processes.
186
Cement
Our products _ 188
Industry analysis _ 189
Relevant events in 2020 _ 190
Group activities
by country and business line _ 191
Environment and research
and development activities _ 194
Service excellence _ 196
Performance in 2020 _ 197
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Concrete at Punta del Moral, Ayamonte (Huelva, Spain).
187
The Company supplies its
products in Spain from
its seven cement factories
and exports products to the
international market
The Cementos Portland Valderrivas Group (GCPV) is a multi-
national Spanish firm that is a leader in the production of ce-
ment, concrete, aggregates and mortar. It employs the most
advanced technologies in its production processes to achieve
cost efficiency and comply with environmental standards, priz-
ing Corporate Social Responsibility in all its undertakings.
It has seven strategically located cement factories in Spain that
serve the entire mainland, supplying international markets in the
form of exports.
It is also a leader in the cement industry in Tunisia, where it
operates a cement factory with a capacity of 2 million tonnes,
making it the biggest cement plant in the country. In the Unit-
ed Kingdom, it operates through two import terminals, Dragon
Portland and Dragon Alfa.
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FCC_Annual Report_2020 | Business lines | Cement | Our products
Our products
Cement
Concrete
Aggregates
Portland cement is obtained by mixing, in the correct propor-
tions, raw materials, finely grinding them and heating them until
they start to merge, creating clinker. This process is performed
in rotary kilns.
When the clinker cools, it is mixed with a small amount of gyp-
sum that regulates the setting process, and after grinding it,
Portland cement is obtained, thus rounding off the production
process.
The different qualities of cement are obtained by adding materi-
als such as limestone, fly ash, pozzolans, etc. to obtain specific
characteristics for their use.
Concrete is a calcareous conglomerate generally used as a
structural element in construction; it is obtained by mixing ma-
terials like cement, aggregates and other additives with water,
in the correct proportions, depending on the purpose for which
the concrete is to be used and the environmental conditions in
the place where it is to be employed.
Mortar
This is a mix of conglomerate, sand and additives used in con-
struction either to hold elements together or on top of a base
layer, to cover, waterproof or finish construction works.
Aggregates are defined as mineral materials, inert solids that,
at the appropriate grain size and with the appropriate charac-
teristics, and pursuant to regulatory specifications, are used to
manufacture resistant artificial products by adding hydraulic
conglomerates or bituminous binders.
They are used in a variety of materials: concretes, road surfac-
es, breakwaters, raw material for industry (cement, filters, mi-
cronized grades, etc.), asphalt binders, etc.
Aggregates are obtained by means of mechanical extraction
from sand and gravel, without consolidation, or by blasting and
crushing in relation to consolidated rocks.
These materials are transported to plants to be classified,
washed and stored.
2019-2022 Strategy
of the Cementos Portland Valderrivas Group
Ensuring profitable growth and ongoing improvement, applying cost restraint policies
and taking advantage of future market opportunities..
Contributing to the circular economy, harnessing the use of alternative fuels.
Participating in the organic growth of the cement business in Spain by continuing with
the exercise launched in 2014.
Focusing the sales policy on improving the sale price of our products.
Maximising clinker and cement exports.
Control Room at the Mataporquera factory in Santander (Spain).
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189
Industry
analysis
Spain
The Bank of Spain estimated a contraction of 11% in the Span-
ish economy for 2020. In the first quarter, it contracted by 5.2%,
followed by 18.5% in the second quarter, rebounding by 16.7%
in the third quarter. During the final quarter of the year, it con-
tracted by 0.8% on account of the second wave of COVID-19.
The economic outlook is conditioned by the epidemiological sit-
uation and, although progress in obtaining vaccines are serving
to soothe concerns, the uncertainty about when the pandemic
will be completely behind us persists. The Bank of Spain, in its
intermediate scenario, estimates that the Spanish economy will
grow by 6.8% in 2021 and 4.2% in 2022, with unemployment
rates of 18.3% and 15.6%, respectively. It is not expected to
return to pre-COVID levels until 2023.
According to the Spanish Association of Construction Compa-
nies and Infrastructure Concessionaires (SEOPAN), in 2020, the
volume of calls for tender dropped by 30% compared to 2019.
Building permits fell by 15% and public procurement is expect-
ed to fall by 42% in 2021.
Conveyor belt Cement factory in Enfhida (Tunisia).
These falls have had a negative impact on cement consump-
tion, which closed 2020 at 13.29 million tonnes, 9.7% down on
2019, according to provisional data published by Oficemen, the
sector’s representative.
Tunisia
Furthermore, total exports (cement and clinker) came to 5.99
million tonnes, down by 3.4% year on year. Despite closing in
the red, consumption in Spain was slightly better than expected
at the start of the pandemic. For 2021, the sector’s represent-
ative estimated that the slowdown would persist, ranging from
between -3% to 3%.
Tunisia, in 2020, the domestic market contracted to around 5.8
million tonnes, down by 10% on 2019. For 2021, growth of 5%
has been forecast for the domestic market to 6.1 million tonnes.
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FCC_Annual Report_2020 | Business lines | Cement | Relevant events in 2020
Relevant
events
in 2020
During 2020, the following relevant events took place, which
had an impact on the Group’s financial statements:
On 29 July 2020, a guarantee ratification and renewal
agreement was signed, setting out a new repayment calen-
dar for the original syndicated loan agreement dated 29 July
2016, to extend the last instalment payable on 29 July 2021
by one year, i.e., to 29 July 2022, and adapt the covenants
for the one-year extension.
At the same time as the senior loan agreement was renewed,
an amendment has been signed to the agreement dated 29
July 2016, as part of which its maturity was pushed back by
one year, with the term set at 78 months from the date of
the contract, i.e. 29 January 2023.
Cement mill. Alcalá de Guadaíra factory, Seville (Spain).
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FCC_Annual Report_2020 | Business lines | Cement | Group activities by country and business line | Page 1 of 3
Group activities
by country and business line
Group Sales
The volume of cement and clinker sold in 2020 reached 5.4
million tonnes, 10% down on 2019.
In Spain, 4 million tonnes were sold, and 1.2 million were sold
in Tunisia.
CEMENT (t M)
CONCRETE (m3 k)
AGGREGATE (t k)
MORTAR (t k)
-0.6 (-10%)
6.0
5.4
-8 (-3%)
283
275
+130 (+10%)
1440
1310
+50 (+18%)
334
284
2019
2020
2019
2020
2019
2020
2019
2020
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Distribution of activity by country
192
2020
62% Spain
15% Tunisia
14% United Kingdom
9% Others
2019
60% Spain
14% Tunisia
13% United Kingdom
13% Others
In 2020, international sales
accounted for almost 37.8%
of billing, the same as the
previous year
Distribution of activity by businesses
2020
90% Cement
10% C, M, A
2019
91% Cement
9% C, M, A
The product mix has remained
very stable compared to the
previous year. The cement
business accounts for 90.2%
of revenues
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Revenue
Gross profit/(loss)
from operations
Cash flow
Revenue in 2020 decreased by 8% on 2019, coming to 382.6
million euros. This can be attributed to the decrease in volumes
billed to local markets in Spain and Tunisia, mainly in March and
April, as a result of the lockdown measures applied during these
months, and the reduction in exports seen from both markets.
In Spain, turnover in the domestic market fell by 4.6% to 237.9
million euros. In the local Tunisia market, turnover fell by 2.5%
to 57.9 million euros. In both markets, the favourable evolution
of prices has partially offset the reduction in demand in the do-
mestic market caused by the pandemic.
Cement and clinker export revenue in 2020 was down by
17.6% in Spain and 44% in Tunisia on 2019.
The Group’s EBITDA came to 139.9 million euros, up by 61.9%
year on year, mainly thanks to the income obtained on the sale
of greenhouse gas emission rights for the sum of 58.9 million
euros in 2020 compared to 5.6 million in 2019.
Gross profit/(loss) from operations, without considering the CO2
income remained similar to the figures seen the previous year,
coming to 80.9 million euros compared to 80.6 million in 2019,
up by 0.4%. The negative impact of lower sales has been offset
with lower costs of electricity and fuels and staff and mainte-
nance cost optimisation measures.
Net cash flow generated by operations came to 143.7 million
euros in 2020, 122.8% up on the previous year, on account of
the sale of CO2 rights and the positive performance of working
capital.
The investing cash flow was down 10.2 million euros, primarily
due to the investments made by the Group for production and
environmental improvements in Spain and Tunisia.
Thanks to the positive cash evolution, during 2020 119.2 million
euros of syndicated debt was repaid, having voluntarily repaid
108.2 million euros in advance on account of the repayments
scheduled for 2021 and the final instalment of the loan.
At 31 December 2020, the net debt with third parties stood at
174.5 million euros.
Quarry of Vallcarca, Barcelona (Spain).
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FCC_Annual Report_2020 | Business lines | Cement | Environment and research and development activities | Page 1 of 2
Environment and research
and development activities
Environment.
Climate change
action plan
Panoramic view of the El Alto factory, Madrid (Spain).
Following the 2015 Paris Agreement, which represented a his-
toric milestone in the global fight against climate change, sig-
natories committed to developing measures to contain the in-
crease in the Earth’s temperature. At the end of 2019, the EU
presented the European Green Deal, which proposes a new
strategy for achieving a prosperous and fair society, based on
an efficiency economy in terms of the consumption of resources
and sets 2050 as the target for achieving climate neutrality. Fur-
thermore, the Government of Spain has prepared the Integrat-
ed National Energy and Climate Plan, which proposes specific
objectives to reduce greenhouse gas emissions.
The Spanish cement industry, through Oficemen, is able to con-
tribute to the national climate neutrality targets and has created
roadmaps for decreasing CO2 emissions with a view to achiev-
ing this goal of climate neutrality by 2050.
Cementos Portland Valderrivas, as an important part of the in-
dustry in the countries in which it operates, assumes the fight
against climate change as one of its main challenges in the
coming years and through strategic sectoral lines and performs
specific actions to reduce greenhouse gases.
These measures are implemented bearing in mind the actual
context of each facility, their technological, human and financial
resources, the applicable legislation and the expectations of the
interested parties. To improve the environmental and climate in-
dicators, the following lines of action are implemented:
Circular economy. Increasing the recovery of material and
energy, enhancing the use of demineralised raw materials,
recoverable waste fuels and biomass.
Greenhouse gas emissions. Decrease of emission factors
in the demineralisation of raw materials and the oxidation of
alternative fuels.
Increase in energy efficiency. Optimisation of the fuel mix,
expert systems in the production process and transition to-
wards LED light technology.
Increase in the renewable energy mix. Projects for install-
ing solar power plants and/or wind farms and increase in the
consumption of plant biomass in the production of clinker.
During 2020, the Group’s factories in Spain have used approx-
imately 188,000 tonnes of alternative fuel containing biomass,
1% up on the absolute value recorded in 2019; however, there
was a notable increase in mass replacement year on year, when
the production of clinker was much higher.
The same year, progress has been made on restoring the
Group’s quarries, proceeding with morphological repairs, plant-
ing or revegetation of quarried surfaces.
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Research and development
In 2020, Cementos Portland Valderrivas continued to partici-
pate in the European R&D project in which it is a key partner,
known as “BioRECO2Ver-Horizonte 2020”.
In 2019, GCPV made its main contribution, characterised emis-
sions gases, captured them on site and the shipment of them
to its partners, LTU and Enobraq.
The purpose of this project is to obtain alternative processes
for the production of certain chemical projects on a commercial
scale (such as isobutene and lactic acid) in a more sustainable
manner by capturing industrial CO2 emissions. The end goal is
to use this industrial CO2 as a raw material and stop depending
on fossil resources to create these products.
Part of the gases captured are currently being held at the El
Alto factory in Madrid in case further tests, analysis, etc. are
required.
The project experienced a significant delay on account of the
impact of the COVID-19 crisis. Despite this, the work performed
by our partners has resulted in progress been made towards
the goals proposed:
The preliminary results demonstrate that LTU has at least
two mutants with 50% more residual activity in terms of the
selected combustion gas inhibitors. They are currently being
expanded and sequenced.
Tests have been performed to produce lactate from CO2 and
H2 with Cupriavidus necator and isobutene by a Clostridium
strain.
Other lines of research involve developing Thermotoga
strains to produce lactate from CO2.
A fermenter is being developed with a view to improving
the supply of gas through high pressure and thus recover
isobutene in situ.
Quality control laboratory, Olazagutía (Navarre, Spain).
195
In 2020, investments have
continued to be made to
improve energy efficiency
Technological
innovation
The Cementos Portland Valderrivas Group conceives techno-
logical innovation as the introduction of new products, services,
new processes and supply channels, in addition to the opti-
misation of industrial organisation focussing on our customers
and all our stakeholders.
Innovation is a core part of the company’s competitiveness,
allowing it to improve, renew itself and expand the range of
products and services offered, the production processes and
management of the organisation as a whole.
Over the course of 2020, investments have continued to be
made to improve energy efficiency and to optimise the use of
fuels with a smaller carbon footprint, in collaboration with a Eu-
ropean R&D project, which studies alternative processes to the
production of specific chemical products at a commercial scale
using CO2 made in the clinker kilns.
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Service
excellence
The success of the Cementos Portland Valderrivas Group
would not have been possible without its customers. The ser-
vice orientation and quality of our products is a direct result of
a management approach that is clearly oriented towards the
satisfaction of all those who have deposited their trust in the
Group.
With them, we have achieved our biggest milestones, develop-
ing products that are of a progressively higher quality, ensuring
the growth and development of advanced societies.
Biomass installation. Alcalá de Guadaíra factory, Seville (Spain).
196
The Group’s human resources aim to continue providing a pro-
fessional response to the new challenges on the horizon. A per-
sonalised service, a dedication to making improvements, high
quality targets and environmental responsibility have made the
Group a leader in the markets in which it operates. In all these
markets, the most important construction firms have made the
Cementos Portland Valderrivas Group their trusted partner and
at the same time, caring for the distribution work, the Group’s
products reach anybody in any part of the territory.
Whoever places their trust in this Group knows that it guaran-
tees a cordial service based on mutual trust and the pursuit of
shared objectives.
Some of our services are:
1. Technical sales assistance service for advice and technical
support.
2. Delivery of product at destination.
3. Possibility of loading in the production centre.
4. 24 hour loading card.
5. Urgent incident care.
6. Digital management channel for customers, to deal with ad-
ministrative, sales and technical documentation.
7. Safety assessment service.
8. Foreign trade service.
Conscious of what each customer means to us, we maintain
constant communication with them, creating lasting relation-
ships based on trust and professionalism.
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Performance
in 2020
Human Resources
197
Group and workers’
representatives have started
to work on the 2nd Equality
Plan, adapting it to the
regulations in force
Throughout 2020, the Group has responded to the emergency
situation caused by COVID-19 at all work centres, promoting
and adapting different types of shifts to ensure the compatibility
of employees’ health and safety with the production needs to
meet the variable nature of demand.
The total number of Group employees, at 31 December 2020,
stood at 1,034, down by 4.6 on 2019, mainly due to partial re-
tirements during previous periods, that became full retirements
during the year.
Furthermore, the Group and workers’ representatives have
started to work on the 2nd Equality Plan, adapting it to the reg-
ulations in force and guaranteeing equal treatment and oppor-
tunities between men and women in the workplace.
Spain
During 2020, the workforce in Spain came to 785 employees.
New recruits during the year made use of the different contract
options provided for by law and to overcome absenteeism and
the production needs of work centres.
Tunisia
In 2020, the workforce dropped by 24 employees with total
headcounts of 220 people at 31st of December.
With a view to containing costs and modernising processes,
certain positions were wound up and adjustments made.
Precalciner tower. El Alto factory, Madrid (Spain).
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FCC_Annual Report_2020 | Business lines | Cement | Performance in 2020 | Page 2 of 2
Equality
Health and Safety
During 2020, the Cementos Portland Valderrivas Group, in
cooperation with the legal representatives of workers, started
work on the 2nd Equality Plan.
The CPV Group’s Occupational Health and Safety Policy is
based on the fundamental principle of ensuring its employees
enjoy healthy and safe working conditions.
The Group launched its equality strategy in 2009, signing its
1st Equality Plan, and since then it has strived to achieve more
equal conditions for its employees.
The tool that effectively integrates security into all our operations
is the Health and Safety Management System, with all our ce-
ment factories ISO 45001-certified by an external party.
As part of the preparation of this new Plan, the parties are agree-
ing new, improved measures based on the new regulations that
have arisen in recent years, such as Organic Law 3/2007 of 22
March and more recently, Royal-Decree Law 6/2019 on urgent
measures for guaranteeing equal treatment and opportunities
between women and men in the workplace.
The most significant points, on which this new version is based,
are those affecting: selection and recruitment, professional cat-
egory, training, promotions, working conditions, joint exercise of
rights to a personal, family and work life, remuneration, sexual
and gender-based harassment prevention protocol, communi-
cation and awareness raising.
In terms of accident rates, the accident frequency rate resulting
in leave in 2020 was 5.25, 26.47% down year on year and be-
low the average for the past five years (5.79).
Training
In terms of training, in 2020, 7,454 hours of training were im-
parted at the Group, of which 51% corresponded to occupa-
tional health and safety actions.
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FCC_Annual Report_2020
199
A
1 Financial
Statements
Consolidated Group _ 200
Fomento de Construcciones y Contratas, S.A. _ 390
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200
Consolidated
Group
Consolidated Balance Sheet _ 201
Consolidated profit and loss statement _ 203
Consolidated statements of recognised income
and expenditure _ 204
Total statement of changes
in the consolidated equity _ 205
Statement of consolidated cash flows
(indirect method) _ 206
Notes to the consolidated financial statements _ 208
Management report _ 349
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FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Consolidated Balance Sheet | Page 1 of 2
Consolidated Balance Sheet
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2020 (in thousands of euros)
ASSETS
NON-CURRENT ASSETS
Intangible assets (Note 7)
Concessions (Notes 7 and 11)
Goodwill
Other intangible fixed and non-current assets
Property, plant and equipment (Note 8)
Land and buildings
Plant and other items of property, plant and equipment
Real Estate Investments (Note 9)
Investments accounted for using the equity method (Note 12)
Non-current financial assets (Note 14)
Deferred tax assets (Note 24)
CURRENT ASSETS
Non-current assets held for sale (Note 4)
Inventories (Nota 15)
Trade and other receivables (Note 16)
Trade receivables for sales and services
Other receivables
Current tax assets (Note 24)
Other current financial assets (Note 14)
Other current assets (Note 16)
Cash and cash equivalents (Note 17)
TOTAL ASSETS
31/12/2020
31/12/2019
1,378,160
1,007,015
52,684
1,016,848
1,793,351
1,651,094
287,122
101,235
7,130,413
2,437,859
2,810,199
–
722,786
580,874
578,695
5,704,189
1,392,268
765,604
2,039,451
228,652
56,105
1,222,109
12,834,602
2,374,620
1,023,511
60,267
1,056,501
1,807,391
1,504,799
259,343
72,664
8,529,551
3,458,398
2,863,892
2,635
741,524
863,163
599,939
4,044,589
–
728,812
1,836,806
189,566
70,861
1,218,544
12,574,140
The accompanying notes 1 to 33 and annexes I to V form an integral part of the consolidated financial statements, together with the 2020 consolidated income statement.
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Consolidated Balance Sheet
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2020 (in thousands of euros)
202
LIABILITIES AND EQUITY
EQUITY (Note 18)
Equity attributable to the Parent Company
Shareholders’ equity
Capital
Accumulated earnings and other reserves
Shares and equity interests
Profit for the year attributable to the Parent Company
Valuation adjustments
Non-controlling interests
NON-CURRENT LIABILITIES
Grants
Non-current provisions (Note 19)
Non-current financial liabilities (Note 20)
Debt instruments and other marketable securities
Bank borrowings
Other financial liabilities
Deferred tax liabilities (Note 24)
Other non-current liabilities (Note 21)
CURRENT LIABILITIES
Liabilities related to non-current assets held for sale (Note 4)
Current provisions (Note 19)
Current financial liabilities (Note 20)
Debt instruments and other marketable securities
Bank borrowings
Other financial liabilities
Trade and other accounts payable (Note 22)
Suppliers
Other payables
Current tax liabilities (Note 24)
TOTAL EQUITY AND LIABILITIES
31/12/2020
31/12/2019
2,564,012
409,107
1,910,738
(18,012)
262,179
(275,699)
2,780,935
607,599
588,754
449,346
212,421
212,676
1,055,643
1,209,150
8,939
7,130,413
2,288,313
620,381
5,531,296
192,961
1,064,384
3,977,288
148,794
147,869
4,394,612
1,051,285
195,152
874,443
2,273,732
8,529,551
1,951,262
522,497
6,797,228
333,802
1,130,199
5,030,270
142,311
160,646
3,303,153
–
249,581
683,611
2,369,961
2,244,185
392,265
1,601,284
(16,068)
266,704
(292,923)
2,800,345
1,319,267
910,658
324,604
155,400
203,607
1,157,753
1,197,257
14,951
12,834,602
12,574,140
The accompanying notes 1 to 33 and annexes I to V form an integral part of the consolidated financial statements, together with the 2020 consolidated income statement.
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FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Consolidated profit and loss statement
Consolidated profit and loss statement
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2020 (in thousands of euros)
Net business turnover (Note 27)
Work on the company's own assets
Other operating income (Note 27)
Changes in inventories of finished goods and work in progress
Procurements (Note 27)
Staff costs (Note 27)
Other operating expenses
Depreciation of fixed assets and allocation of grants for non-financial and other assets (Notes 7, 8 and 9)
Impairment and gains/(losses) on disposal of non-current assets (Note 27)
Other gains/(losses)
OPERATING PROFIT/(LOSS)
Finance income (Note 27)
Finance costs (Note 27)
Other financial gains/(losses) (Note 27)
FINANCIAL PROFIT/(LOSS)
Profit/(losses) of companies accounted for by the equity method (Note 27)
PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS
Income tax (Note 24)
PROFIT/(LOSS) FOR THE YEAR FROM CONTINUING OPERATIONS
CONSOLIDATED PROFIT/(LOSS) FOR THE PERIOD
Profit attributable to the Parent Company
Profit attributable to non-controlling interests (Note 18)
EARNINGS PER SHARE (Note 18)
Basic
Diluted
The accompanying notes 1 to 33 and annexes I to V form an integral part of the consolidated financial statements, together with the 2020 consolidated income statement.
203
31/12/2020
31/12/2019
6,158,023
33,857
293,305
15,230
(2,300,242)
(1,971,110)
(1,181,564)
(477,342)
6,870
(4,287)
572,740
33,470
(187,429)
(51,057)
(205,016)
62,149
429,873
(86,273)
343,600
343,600
262,179
81,421
0.66
0.66
6,276,231
49,846
214,327
14,408
(2,339,562)
(1,925,734)
(1,263,713)
(449,109)
(59,764)
(5,316)
511,614
51,067
(195,787)
1,455
(143,265)
120,641
488,990
(149,066)
339,924
339,924
266,704
73,220
0.69
0.69
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FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Consolidated statements of recognised income and expenditure
Consolidated statements of recognised income and expenditure
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2020 (in thousands of euros)
31/12/2020
31/12/2019
CONSOLIDATED PROFIT/(LOSS) FOR THE PERIOD
Other comprehensive income - Items that are not reclassified to profit/(loss) for the period
Actuarial profits and losses (*)
Tax effect
Other comprehensive income - items that can subsequently be reclassified to profit/(loss) for the period
Financial assets at fair value with changes in other comprehensive income
Valuation gains/(losses)
Amounts transferred to the statement of profit and loss
Cash flow hedges
Valuation gains/(losses)
Amounts transferred to the statement of profit and loss
Translation differences
Valuation gains/(losses)
Amounts transferred to the statement of profit and loss
Participation in other comprehensive profit recognised by investments in joint ventures and associates
Valuation gains/(losses)
Amounts transferred to the statement of profit and loss
Tax effect
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
Attributable to the Parent Company
Attributable to non-controlling interests
–
17
(30,907)
16,149
(79,350)
1,096
(6,926)
15,878
343,600
(2,992)
(4,102)
1,110
(72,541)
17
(14,758)
(78,254)
8,952
11,502
268,067
218,605
49,462
339,924
(3,997)
(4,722)
725
49,665
(21)
2,627
30,636
25,641
(9,218)
385,592
306,897
78,695
–
(21)
123
2,504
30,752
(116)
(39,742)
65,383
Las notas 1 a 33 y los anexos I a V adjuntos forman parte integrante de los estados financieros consolidados, conformando junto con éstos las cuentas anuales consolidadas correspondientes al ejercicio 2020.
(*) Importes que en ningún caso se imputarán a la cuenta de pérdidas y ganancias.
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FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Total statement of changes in the consolidated equity
Total statement of changes in the consolidated equity
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2020 (in thousands of euros)
Share capital
(Note 18.a)
Share
premium and
reserves
(Note 18.b)
Interim
dividend
Shares and equity
interests
(Note 18.c)
Profit/(loss)
for the year
attributed to
the Parent
Company
Other equity
instruments
Valuation
adjustments
(Note 18.d)
Equity
attributable to
shareholders of the
Parent Company
(Note 1)
Non-
controlling
interests
(Note 18.II)
Total
Equity
205
Equity as of 31 December 2018
378,826
1,397,579
IFRS 16 transition impact
(2,014)
Equity as of 1 January 2019
378,826
1,395,565
–
–
Total income and expenses for the year
Transactions with shareholders or owners
Capital increases/(reductions)
Distribution of dividends
Transactions with treasury shares or equity
instruments (net)
13,439
13,439
(3,499)
(23,083)
(13,517)
(9,566)
(11,723)
(4,345)
(4,345)
Other changes in equity (Note 18)
232,301
Equity as of 31 December 2019
392,265
1,601,284
–
(16,068)
Total income and expenses for the year
Transactions with shareholders or owners
Capital increases/(reductions)
Distribution of dividends
Transactions with treasury shares or equity
instruments (net)
Other changes in equity (Note 18)
16,842
16,842
(1,988)
(29,357)
(16,921)
(12,436)
340,799
(1,944)
(1,944)
(11,723)
251,569
251,569
266,704
(251,569)
266,704
262,179
–
–
(332,298)
1,683,953
274,822
1,958,775
(2,014)
(2,014)
(332,298)
1,681,939
274,822
1,956,761
43,692
306,897
(13,989)
(78)
(9,566)
(4,345)
78,695
385,592
(61,372)
(75,361)
1,198
1,120
(62,570)
(72,136)
(4,345)
(4,317)
(23,585)
230,352
206,767
–
(292,923)
1,951,262
522,497
2,473,759
(41,586)
218,605
(14,459)
(79)
(12,436)
(1,944)
49,462
268,067
(40,917)
(55,376)
366
287
(41,283)
(53,719)
(1,944)
Equity as of 31 December 2020
409,107
1,910,738
–
(18,012)
262,179
–
(275,699)
2,288,313
620,381
2,908,694
The accompanying notes 1 to 33 and annexes I to V form an integral part of the consolidated financial statements, together with the 2020 consolidated income statement.
(266,704)
58,810
132,905
89,339
222,244
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Statement of consolidated cash flows (indirect method)
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2020 (in thousands of euros)
31/12/2020
31/12/2019
Profit/(loss) before tax from continuing operations
Adjustments to profit or loss
Depreciation of fixed assets (Notes 7, 8 and 9)
Impairment of goodwill and fixed assets (Notes 7, 8 and 27)
Other adjustments to profit (net) (Note 27)
Changes in working capital (Note 16)
Other cash flows from operating activities
Dividends received
Income tax refunded/paid)
Other collections/(payments) from operating activities
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES
Investment payments
Group companies, associates and business units
Property, plant and equipment, intangible assets and real estate investments (Notes 7, 8 and 9)
Other financial assets
Proceeds from disposals
Group companies, associates and business units
Property, plant and equipment, intangible assets and real estate investments (Notes 7, 8 and 9)
Other financial assets
Other cash flows from investment activities
Interest received
Other collections/(payments) from investment activities
TOTAL CASH FLOWS FROM INVESTMENT ACTIVITIES
488,907
6,870
154,136
35,665
(96,734)
(111,583)
(95,672)
(407,933)
(37,670)
6,214
20,223
49,483
13,675
50,132
429,873
649,913
(302,060)
(172,652)
605,074
(541,275)
75,920
63,807
488,990
587,725
(183,323)
(262,842)
630,550
(546,575)
28,463
158,877
457,724
(59,764)
189,765
57,373
(172,951)
(147,264)
(144,299)
(328,415)
(73,861)
1,141
18,326
8,996
13,114
145,763
(401,548)
(359,235)
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Statement of consolidated cash flows (indirect method)
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2020 (in thousands of euros)
Proceeds and (payments) from equity instruments (Note 18)
Issue/(redemption)
(Acquisition)/disposal of treasury shares
Proceeds from (payments on) financial liabilities (Note 20)
Issuance
Repayment and amortisation
Dividends paid and payments on equity instruments (Note 6)
Other cash flows from financing activities
Interest paid
Other collections/(payments) from financing activities
TOTAL CASH FLOWS FROM FINANCING ACTIVITIES
EFFECT OF VARIATIONS IN EXCHANGE RATES
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the start of the period (Note 17)
Cash and cash equivalents at the end of the period (Note 17)
31/12/2020
31/12/2019
22
186,352
1,689,907
(1,832,546)
(151,370)
5,841
425
(43,040)
2,263,951
(2,361,387)
(136,840)
2,745
186,374
(142,639)
(36,643)
(145,529)
(138,437)
(61,524)
3,565
1,218,544
1,222,109
(42,615)
(97,436)
(71,589)
(134,095)
(345,735)
26,767
(47,653)
1,266,197
1,218,544
The accompanying notes 1 to 33 and annexes I to V form an integral part of the consolidated financial statements, together with the 2020 consolidated income statement.
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Notes to the consolidated financial statements
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2020
1
2
3
4
5
6
7
8
9
Group activity
Basis of presentation and basis of consolidation
of the consolidated income statement
Accounting policies
Non-current assets held for sale and liabilities related
to non-current assets held for sale and discontinued
operations
Changes in the scope of consolidation
Distribution of profit
Intangible assets
Property, plant and equipment
Real estate investment
10
Leases
11 Service concession arrangements
12
13
Investments accounted for using the equity method
Joint agreements. jointly controlled operations
14 Non-current financial assets and other current financial
assets
15
Inventories
16 Commercial debtors, other accounts receivable
and other current assets
17 Cash and cash equivalents
18 Equity
19 Non-current and current provisions
20 Non-current and current financial liabilities
21 Other non-current liabilities
_ 209
_ 209
_ 213
_ 223
_ 225
_ 230
_ 231
_ 237
_ 240
_ 240
_ 242
_ 246
_ 253
_ 254
_ 256
_ 258
_ 259
_ 260
_ 266
_ 270
_ 278
22
Trade and other accounts payable
23 Derivative financial instruments
24
Tax matters
25 Pension plans and similar obligations
26 Guarantee commitments to third parties and other
contingent liabilities
Income and expenditure
Information by activity segments
27
28
29 Environmental information
30
31
32
Financial risk management policies
Information on transactions with related parties
Fees paid to auditors
33 Events after the closing date
Annex I
Fully consolidated subsidiaries
Annex II Companies jointly controlled with third parties outside
the Group (consolidated using the equity method)
Annex III Associates consolidated using the equity method
Annex IV Changes in the scope of consolidation
Annex V Temporary Joint Ventures and other contracts
_ 278
_ 279
_ 283
_ 287
_ 290
_ 291
_ 294
_ 304
_ 306
_ 313
_ 316
_ 316
_ 317
_ 329
_ 332
_ 337
jointly managed with third parties outside the Group
_ 338
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1. Group activity
The FCC Group comprises the Parent Company, Fomento de Construcciones y Contratas, S.A.,
and a group of investee companies located both in Spain and abroad that perform different busi-
ness activities grouped into the following areas:
2. Basis of presentation and basis
of consolidation of the consolidated
income statement
− Environmental Services. Services related to urban sanitation, industrial waste treatment,
including both the construction and operation of treatment plants, and the energy recovery of
waste. This includes concession agreements related to environmental services.
a) Basis of presentation
−
Integrated Water Management. Services relating to the integrated water cycle: collection,
purification and distribution of water for human consumption; sewage collection, filtration and
purification; design, construction, operation and maintenance of water infrastructure for mu-
nicipal, industrial, agricultural services etc. Concession agreements related to the integral wa-
ter cycle are also included.
The accompanying financial statements and the notes thereto that comprise this Report and
which make up these consolidated financial statements have been prepared in accordance with
the International Financial Reporting Standards (IFRS) adopted by the European Union at the
closing date, in accordance with Regulation (EC) No. 1606/2002 of the European Parliament and
of the Council of 19 July 2002, and all the implementing provisions and interpretations.
− Construction. Specialised in the construction of infrastructure, buildings and similar facilities:
motorways, highways, roads, tunnels, bridges, hydraulic works, ports, airports, housing de-
velopments, housing, non-residential building, lighting, industrial climate control installations,
environmental restoration, etc.
− Cement. Dedicated to the operation of quarries and mineral deposits, production of cement,
lime, plaster and prefabricated by-products, as well as the production of concrete.
− Concessions. Mainly includes concession agreements related to the operation of highways,
tunnels and other similar infrastructures.
Additionally, the FCC Group is present in the Real Estate sector, mainly in the promotion of hous-
ing and office rental through the company F-C y C, SL Unipersonal, which holds a 37.40% stake
in Realia Business, SA.
Its international activities account for approximately 40% (45% in 2019) of the FCC Group’s turn-
over, mainly in Europe, Latin America, the Middle East and the United States of America.
The 2020 consolidated financial statements of the FCC Group have been formulated by the
Board of Directors of Fomento de Construcciones y Contratas, S.A. and will be presented for ap-
proval by the General Shareholders’ Meeting. However, no amendments are expected as a result
of the fulfilment of said requirement. The 2019 consolidated financial statements were approved
by the General Shareholders’ Meeting of Fomento de Construcciones y Contratas, S.A., held on
2 June 2020.
These consolidated financial statements of the FCC Group show the faithful image of the equity
and the financial situation as of 31 December 2020 and 2019, as well as the results of the oper-
ations, changes in equity and consolidated cash flows that occurred in the Group during those
years.
The consolidated financial statements of the FCC Group have been prepared from the account-
ing records of Fomento de Construcciones y Contratas, S.A. and its investee companies. These
records, in accordance with the procedures and operating systems established in the Group,
justify and support the consolidated financial statements prepared in accordance with current
international accounting regulations.
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In order to uniformly present the various items composing these consolidated financial state-
ments, accounting standardisation criteria were applied to the individual financial statements of
the companies included in the scope of consolidation. In 2020 and 2019, the reporting date of
the financial statements of the companies included in the scope of consolidation was the same
as that of the Parent, i.e. 31 December.
Significant rules and interpretations applied in 2020
The standards that entered into force in 2020 that have already been adopted by the European
Union and which have been used by the Group, if applicable, were as follows:
The consolidated financial statements are expressed in thousands of euros.
New standards, amendments and interpretations:
Mandatory Application
to the FCC Group
Reclassifications made
In 2020 and 2019, there were no other significant reclassifications.
Rules and interpretations issued but not in force
At the date of preparation of these notes to the financial statements, the most significant stand-
ards and interpretations that had been published by the International Accounting Standards
Board (IASB) during the year, but which had not yet entered into force, either because their effec-
tive date is subsequent to the date of the consolidated financial statements or because they had
yet to be endorsed by the European Union, are as follows:
Not adopted by the European Union
IFRS 17
Amendments to IAS 1
Amendments to IFRS 3, IAS 16, IAS 37
and updates 2018-2020
Mandatory Application
to the FCC Group
Insurance contracts
Classification of liabilities as
current and non-current
1 January 2023
1 January 2023
Various standards
1 January 2022
Amendments to IFRS 9, IAS 39, IFRS 7,
IFRS 4 and IFRS 16
Reference interest rate reform
- phase 2
1 January 2021
Amendment to IFRS 4
Amendment to IFRS 16
IFRS 9 deferral
COVID-19-related rent
reductions
1 January 2021
1 January 2021
The Group generally does not expect the application of these standards to have a significant
impact on its financial statements.
Approved for use in the European Union
Amendment to IFRS 3
Business combinations
1 January 2020
Amendments to IFRS 9, IAS 39 and IFRS
7
Reference interest rate reform
- phase 1
1 January 2020
Amendments to IAS 1 and IAS 8
Definition of materiality
1 January 2020
Amendments to references to the IFRS
Conceptual Framework
Various standards
1 January 2020
The application of the previous rules has not had a significant impact.
For the first time, on 1 January 2019 the Group applied IFRS 16 “Leases”, which indicates that
for the lessor, all leases (except for certain exceptions involving small sums of money or short du-
rations) require the accounting of a material asset by right in use, and a liability for the future pay-
ment obligations that are incurred. The liability must be booked at the present value of the future
cash flows for each lease and the asset in an equivalent amount, adjusted for any advance pay-
ment made. Subsequently, the right in use is systematically amortised and the financial expenses
associated with the equivalent liability are recognised pursuant to the amortised cost method.
The first implementation of the aforementioned standard was calculated taking into account that
the Group availed itself of the option of applying it retroactively modified, that is, with the cumu-
lative impact of the first application of the standard as an adjustment to the initial balance as of 1
January 2019, charged to reserves without the restatement for the year.
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The impact, broken down by balance sheet headings, of the first-time application of the standard
was as follows:
Balance at 1
January 2019
Impact of first-
time application
of IFRS 16
Restated
balance at
1 January 2019
Non-current assets
Intangible assets
Property, plant and equipment
Real Estate investments
Investments accounted for using the equity
method
Non-current financial assets
Deferred tax assets
Current assets
Inventory
Trade and other accounts receivable
Other current financial assets
Other current assets
Cash and other cash equivalents
6,607,207
2,426,380
2,424,018
2,798
763,050
380,552
610,409
3,916,834
691,034
1,695,798
178,815
84,990
1,266,197
434,721
–
434,721
–
–
–
–
7,041,928
2,426,380
2,858,739
2,798
763,050
380,552
610,409
Non-controlling interests
Non-current liabilities
Grants
Non-current provisions
Non-current financial liabilities
Deferred tax liabilities
(4,468)
3,912,366
Other non-current liabilities
–
–
–
(4,468)
691,034
1,695,798
178,815
80,522
–
1,266,197
Current liabilities
Current provisions
Current financial liabilities
Trade payables and other accounts
payable
Equity
Balance at 1
January 2019
1,958,775
Equity attributable to the Parent Company
1,683,953
211
Impact of first-
time application
of IFRS 16
Restated
balance at
1 January 2019
(2,014)
(2,014)
–
1,956,761
1,681,939
274,822
388,462
5,963,172
–
–
388,462
–
–
211,296
1,161,989
4,288,894
141,088
159,905
274,822
5,574,710
211,296
1,161,989
3,900,432
141,088
159,905
2,990,556
43,805
3,034,361
209,264
380,902
2,400,390
–
43,805
209,264
424,707
–
2,400,390
Total assets
10,524,041
430,253
10,954,294
Total equity and liabilities
10,524,041
430,253
10,954,294
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b) Basis of consolidation
Subsidiaries
under the heading “Investments accounted for using the equity method”. These companies’ par-
ticipation in the net income of the business year is included under the heading “Profit/(loss) of enti-
ties valued using the equity method” of the accompanying consolidated profit and loss statement.
The consolidation is carried out using the global integration method for the subsidiaries indicated
in Annex I, in which Fomento de Construcciones y Contratas, S.A. exercises control, that is, when
it has the power to direct its relevant activities, it is exposed to variable returns as a result of its
participation in the investee and has the ability to exercise said power to influence its own returns,
directly or through other companies controlled by it.
The value of the participation of non-controlling shareholders in equity is presented under the
heading “Non-controlling interests” on the liability side of the accompanying consolidated balance
sheet and the participation in the profit/(loss) is presented under the heading “Profit/(loss) attrib-
uted to non-controlling interests” on the accompanying consolidated profit and loss statement.
The joint operations, mainly in the Construction and Environmental Services activities that mostly
take the form of temporary joint ventures and other similar entities, have been integrated in the
attached consolidated accounts based on the percentage of participation in assets, liabilities,
income and expenses derived from the operations carried out by them, eliminating the reciprocal
balances in assets and liabilities, as well as the income and expenses not incurred against third
parties.
Annex II lists the business jointly controlled with third parties outside the Group and Annex V lists
the joint operations carried out with third parties outside the Group, mainly through temporary
joint ventures and other entities with similar characteristics.
Where appropriate, goodwill is determined in accordance with the provisions of Note 3.b) of this
Report.
Associates
Joint agreements
The Group develops joint agreements through participation in joint ventures jointly controlled by
one of more of the FCC Group companies with other companies outside the Group (note 12), as
well as through participation in joint operations, temporary joint ventures and other similar entities
(note 13).
The Group applies its professional judgement to evaluate its rights and obligations over joint
agreements taking into account the financial structure and legal form of the agreement, the terms
agreed by the parties and other relevant facts and circumstances to evaluate the type of joint
agreement. Once such an analysis has been carried out, two types of joint agreements are dis-
tinguished:
a) Joint operation: When the parties hold rights over the assets and obligations over the liabili-
ties.
b) Joint business: When the parties hold only rights over the net assets.
In accordance with IFRS 11 “Joint agreements”, participations in joint ventures are integrated ac-
cording to the equity method and are included in the accompanying consolidated balance sheet
The companies listed in Annex III, in which Fomento de Construcciones y Contratas, S.A. does
not exercise control but has significant influence, are included in the accompanying consolidated
balance sheet under the heading “Investments accounted for by applying the equity method”,
integrated using said method. These companies’ contribution to the net income of the business
year is included under the heading “Profit/(loss) of entities valued using the equity method” of the
accompanying consolidated profit and loss statement.
Transactions between Group companies
In transactions between consolidated companies, the profit/(loss) of internal operations are elimi-
nated, being deferred until they are made against third parties outside the Group. This elimination
does not apply in the “Concession agreements” since the result is considered to be realised
against third parties (Note 3.a).
Group work on its own fixed and non-current assets is measured at production cost, eliminating
the intra-group profit/(loss).
Reciprocal credits and debits have been eliminated from the consolidated financial statement, as
well as internal income and expenses from the collection of the subsidiaries that are consolidated.
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Changes in the scope of consolidation
Annex IV shows the changes made in 2020 in all consolidated companies using global integra-
tion and the equity method. The profit/(loss) of these companies are included in the consolidated
profit and loss statement as from the effective acquisition date or until the effective disposal or
derecognition date, as appropriate.
The heading “Change in scope” in the corresponding notes to this Report shows the effect of the
additions and derecognitions of companies from the scope of consolidation. Additionally, Note
5 of this Report “Changes in the scope of consolidation”, shows the most significant inputs and
outputs of said scope.
3. Accounting policies
The accounting policies applied to the consolidated financial statements of the FCC Group are
detailed below:
a) Service Concession Arrangements
Concession contracts involve agreements between a granting public entity and FCC Group com-
panies to provide public services such as water distribution, filtration and sewage treatment,
landfill management, motorways and tunnels, etc. by operating the infrastructure. Meanwhile,
revenue from providing the service may be received directly from the users or, sometimes, through
the concession grantor itself, which regulates the prices for providing the service.
The concession right generally means that the concession operator has an exclusive right to
provide the service under the concession for a given period of time, after which the infrastructure
assigned to the concession required to provide the service is returned to the concession grantor,
generally for no consideration. Concession contracts are required to provide for the management
or operation of this infrastructure Likewise, a common characteristic is the existence of obligations
to acquire or build all the items required to provide the concession service over the contract term.
When the above conditions are met, said concession contracts are registered by the provisions of
IFRIC 12 “Service Concession Arrangement”. In general, we must highlight two clearly differenti-
ated phases, the first one in which the concessionaire provides construction or improvement ser-
vices that are recognised according to the degree of progress, with a counterpart in an intangible
or financial asset, and a second phase in which a series of maintenance or operation services are
provided for the aforementioned infrastructure. In both cases, income is recognised in accord-
ance with the provisions of IFRS 15 “Ordinary income from contracts with customers” (note 3.r).
An intangible asset is recognised when the demand risk is borne by the concessionaire and a
financial asset is recognised when the demand risk is borne by the concession grantor, since the
concessionaire has an unconditional contractual right to receive the proceeds of the construction
or upgrade services. These assets also include the amounts paid in relation to the fees for the
award of the concessions.
There may be mixed situations in which the demand risk is shared between the concessionaire
and the grantor.
For concessions classified as intangible assets, provisions for dismantling, removal or restoration
and any steps to improve and increase capacity, the revenue from which is envisaged in the initial
contract, are capitalised at the start of the concession and the amortisation of these assets and
the discounting of such provisions are recognised in profit or loss Also, provisions to replace and
repair the infrastructure are systematically recognised in profit or loss as the obligation is incurred.
Borrowing costs attributable to infrastructure financing are recognised as an expense in the pe-
riod, capitalising, only in the intangible asset model, those that accrue during the construction
phase and until the related infrastructure is put to use.
The amortisation of these intangible assets is carried out according to the consumption pattern,
understanding as such the performance and best estimation of the production units in each of
the different activities. The quantitatively most important concession businesses in the Group are
located in concession activities, mainly toll roads and motorways, which are amortised according
to traffic, and in the water supply and sanitation activity, which amortises assets based on con-
sumption of water that, in general, is constant over time due, on the one hand, to its reduction
as a result of water saving policies and, on the other hand, to its increase by the growth in pop-
ulation. The amortisation is completed in the concession period, which is generally between 25
and 50 years.
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Concession arrangements recognised as financial assets are measured at the fair value of the
construction or upgrade services rendered. Under the amortised cost method, the corresponding
income is allocated to profit or loss as revenue, in accordance with the effective interest rate aris-
ing from the expected flow of receipts and payments from the concession. Finance costs arising
from the financing of these assets are classified under “Finance costs” in the consolidated profit
and loss statement. As stated above, for the provision of maintenance or operating services,
income and expenses are allocated to profit/(loss) in accordance with IFRS 15 “Ordinary income
from contracts with clients”.
b) Business combinations and goodwill
The assets and liabilities of the companies and subgroups over which control is acquired are rec-
ognised in the consolidated balance sheet at their fair value together with the related deferred tax-
es. However, in accordance with regulations, the initial measurement of the assets and liabilities
and their allocation to the various headings may be reviewed within the twelve months following
the acquisition date, should it be necessary to consider new data.
The date of inclusion in the scope of consolidation is the date on which effective control of the
company is obtained, which normally coincides with the acquisition date.
Goodwill is recognised as the positive difference between (a) the sum of the fair value of the con-
sideration transferred as a result of the acquired interest, the amount of the non-controlling inter-
ests and the fair value at the date on which control over these interests is acquired when control
is obtained in stages, and (b) the fair value of identifiable assets and liabilities.
In general, non-controlling interests are valued by the proportional part of the fair value in the
assets and liabilities of the acquired company.
If control over a business combination is achieved in stages, the difference between the fair value
at the time control over the preceding interest is obtained and the carrying amount of that interest
is recognised in profit/(loss).
Once control is obtained over an investee, and until that control is lost, the difference between the
amount of any additional equity interest acquired or sold and its carrying amount is accounted
for in equity.
Goodwill is not amortised. However, it is tested for impairment at least at each balance sheet
date, in order to recognise it at the lower of its recoverable value, estimated on the basis of ex-
pected cash flows, or acquisition cost, less any prior years’ impairment losses. The accounting
policies used to determine impairment are detailed in section e) of this note.
c) Intangible assets
Except as indicated in the two previous sections of this note regarding the agreements for the
concession of services and goodwill, the other intangible assets contained in the accompanying
financial statements are valued at their acquisition cost. These intangible assets include invest-
ments related to operating contracts and licenses, rights to build and software applications.
Such registered intangible assets have a finite useful life. Amortisation is carried out during its
useful life, which is generally between 20 and 35 years, that is, the period during which it is esti-
mated that they will generate income, using the linear method, except when the application of the
consumption pattern reflects its depreciation more faithfully. Software applications are generally
amortised within a period of 5 to 10 years.
d) Property, Plant and equipment and real estate investments
Property, plant and equipment and real estate investments are recorded at their cost price (up-
dated, where appropriate, with various legal provisions prior to the date of transition to IFRS), less
accumulated depreciation and any loss due to impairment of recognised value. The cost of those
assets includes the estimated present value of their dismantling or the withdrawal of the affected
items and, in those cases in which they have been acquired through business contributions as
stated in section b) of this note, they are initially recognised at their fair value on the acquisition
date.
The work carried out by the Group for its fixed and non-current assets is valued at production
cost.
Conservation and maintenance expenses that do not involve an extension of the useful life or
productive capacity of the corresponding assets are charged to the profit/(loss) of the year in
which they are incurred.
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When the construction and commissioning of fixed and non-current assets require a period of
long construction, the interests derived from their financing accrued during said period are acti-
vated.
Companies depreciate their fixed and non-current assets following the linear method, distributing
the cost thereof between the following years of estimated useful life:
Real estate investments
Natural resources and buildings
Plant, machinery and transport items
Furniture and tools
Other fixed and non-current assets
75
25-50
5-30
7-12
5-10
However, some contracts may have terms shorter than the useful life of the related fixed and
non-current assets, in which case they are depreciated over the term of the contract.
The residual value, useful life and depreciation method applied to the Group’s assets are re-
viewed periodically to ensure that the depreciation method used reflects the pattern in which the
revenue deriving from operating the property, plant and equipment and real estate investments
is obtained. This review is carried out through an in situ evaluation and technical analysis, taking
into account their current conditions and estimating the remaining useful life of each asset based
on their ability to continue providing the functionalities for which they were defined. Subsequently,
these internal analyses are compared against third parties outside the Group, such as manufac-
turers, installers, etc. to ratify them.
At least at the end of each reporting period, the companies periodically determine whether there
is any indication that an item or group of items of fixed and non-current assets is impaired so that
if applicable, as indicates in section e) of this note, an impairment loss, or the reversal of such
losses, can be recognised or reversed in order to adjust the book value of the assets to their value
in use. Under no circumstances do reversals exceed all prior impairment recognised.
e) Impairment of intangible assets, property and real estate
investments
Intangible assets with finite useful lives and property, plant and equipment items and real estate
investments are tested for impairment when there is any indication that the assets might have
become impaired, in order to adjust their net carrying amount to their value in use (if this is lower).
The Group uses both internal and external sources of information to assess possible signs of im-
pairment. External sources include market value decreases beyond the passage of time or normal
use or possible adverse future changes in the legal, economic or technological environment that
could reveal a loss of the recoverable value of its assets. The Group internally assesses whether
there has been a physical deterioration or obsolescence of the assets, if the future situation itself
may produce a change in the expected use of the asset, for example if the asset is expected to
be idle for a significant period of time or due to restructuring plans or if it is detected that the return
on the asset is worse than expected.
Goodwill and intangible assets with indefinite useful lives must be tested for impairment at least
once a year in order to recognise possible impairment losses.
Impairment losses recognised in prior years on assets other than goodwill may be reversed if the
estimates used in the impairment test show a recovery in the value of these assets. The carrying
amount of the assets whose recoverable amount increases must in no case exceed the carrying
amount that would have been determined had no impairment loss been recognised in prior years.
The recognition or reversal of impairment losses on assets are charged or credited to income
under “Impairment and results obtained on the disposal of assets”.
To calculate the recoverable amount of the assets subject to impairment tests, the present value
of the net cash flows originating from the Cash Generating Units (CGUs) associated therewith
was estimated, except those flows related with payments or collections on lending operations
and corporation tax payments, together with those that arise from future improvements or refur-
bishments envisaged for the assets belonging to such Cash Generating Units. To discount cash
flows, a pre-tax discount rate was used, which includes the current market assessments of the
time value of money and the risks specific to each Cash Generating Unit.
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The estimated cash flows are obtained from the projections made by the Directorate of each of
the CGUs that generally use periods of five years, except when the business characteristics ad-
vise longer periods and that include growth rates supported by the different approved business
plans, whose review is carried out periodically, generally considering zero growth rates for those
periods beyond the years projected in the aforementioned plans. Also, it is necessary to indicate
that sensitivity analyses are performed to assess the growth of income, operating margins, and
discount rates, in order to foresee the impact of future changes in these variables.
Cash flows from CGUs located abroad are calculated in the functional currency used by those
cash generating units and they are updated using discount rates that take into consideration the
risk premium relating to each currency. The present value of the net cash flows obtained in this
manner are translated at the year-end exchange rate for each currency.
conditions compared to market conditions in case of an extension, if the lessee has incurred sig-
nificant costs in adapting the underlying asset to its needs that it must reapply in case of contract-
ing a new lease, any possible costs for the termination of the contract in case it is not extended
or the importance of the asset to the lessee, especially If it is a specialised asset that is not readily
available on the market. Furthermore, the background in terms of the period of use in the past of
certain assets is also taken into account.
Subsequently, during the term of the lease contract, the right of use is systematically amortised
and the financial expenses associated with the affected liability are recorded applying the amor-
tised cost method.
When the Group acts as the lessor, income and expenses arising from operating lease agree-
ments are charged to the profit and loss statement during the year they are accrued.
f) Leasing
As indicated in Note 2.a, as a result of the application of IFRS 16 “Leases”, as at 1 January 2019
all lease operations (with certain exceptions for small amounts or short durations) in which the
Group acts as the lessee, require the accounting of an asset corresponding to the right in use,
fundamentally recognised by nature as a material asset, and a liability for the future payment ob-
ligations that are incurred. This liability is recognised at the present value of the future cash flows
for each lease and the asset in an equivalent amount, adjusted for any early payment made.
A contract contains a lease when the lessor transfers control of an identifiable underlying asset for
a certain period of time in exchange for a consideration. An asset is identifiable when it is explicitly
specified in the contract or implicitly when it is made available to the customer. However, if the
supplier has the right to replace the asset during the period of use, that is, when it has alternative
assets and can economically benefit from such substitution, the asset is not considered identifia-
ble and therefore the contract will not contain a lease.
To estimate the duration of the contract, extensions that are reasonably expected to occur and
the period in which the lessee does not expect to terminate the contract (when they have the
power to do so) are considered, without exclusively taking into account the minimum term es-
tablished in the contract, as the term during which the lessee expects to continue using the un-
derlying asset, depending on its particular circumstances, is estimated. To determine whether an
extension is expected to take place, the economic incentives that the lessee may have to extend
the contract are taken into account, considering factors such as the existence of advantageous
g) Investments accounted for using the equity method
The participation in joint ventures and associates is initially recognised at acquisition cost and is
subsequently revalued to take into account the share with the profit/(loss) of these companies
not distributed in the form of dividends. Also, the value of the investment is adjusted to reflect the
proportion of the changes in these companies’ equity that were not recognised in their profit or
loss. These include the conversion differences and the adjustments caused by changes in the fair
value of financial derivatives of cash flow hedges acquired by the companies themselves.
They undergo an impairment test as long as there are indications of impairment that may reveal
a decrease in the recoverable value below the carrying amount of the investment, using both
internal and external sources.
h) Financial assets
Financial assets are initially recorded at fair value, which is generally the same as their acquisition
cost, adjusted for the operation costs directly attributable to it, except in the case of financial as-
sets at fair value with changes in profit/(loss) that are attributed to that year’s profit/(loss).
All acquisitions and sales of financial assets are recorded at the date of contracting the operation.
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The Group manages its financial assets in order to obtain its contractual cash flows, so it values
them according to the amortised cost method, that is, initial cost less principal charges plus ac-
crued income based on its effective interest rate pending collection, adjusted for any recognised
impairment loss. The effective interest rate consists of the rate that equals the initial cost of the
total cash flows estimated for all the items throughout the remaining life of the investment. As an
exception to the above, it should be noted that the Group values certain financial assets at fair
value in the following cases:
– Financial assets at fair value with changes in profit/(loss): This category includes derivatives
that do not meet the conditions to be considered as hedging, financial assets that other
standards establish must be valued at fair value charged to profit/(loss), such as contingent
considerations in business combinations and financial assets that, if valued differently, would
generate an accounting asymmetry.
– Financial assets at fair value with changes in other comprehensive income: The Group values
its interests in companies in which it does not have control, joint control or exert significant
influence at fair value charged to reserves.
Financial assets at fair value have been recorded at fair value at the closing date of the financial
statements. Fair value is understood as the value by which a financial instrument could be ex-
changed between informed and experienced parties in a free transaction (independent between
third parties).
In the case of financial assets at fair value with changes in the profit/(loss), the profits or losses re-
sulting from the change in fair value are attributed to the net profit/(loss) of the year, while financial
assets at fair value with changes in other comprehensive income are attributed to equity, until the
asset is disposed of, at which time the profit previously accumulated in equity will be included in
that year’s profit/(loss).
In assets that are valued at amortised cost, an impairment loss is recorded if, on the closing date
of the financial statements, it is determined that credit losses will be incurred throughout their en-
tire life. That is, impairment losses are recorded immediately when there is credit risk. Credit risk
is understood as the risk of one of the parties to the financial instrument causing a financial loss
to the other party if it breaches an obligation.
Trade receivables arising in the Group’s normal business activities are stated at their nominal val-
ue, given that they generally mature within twelve months, adjusted by any expected credit losses
over the course of their lives. Accounts receivable with maturities greater than twelve months are
valued at their current value.
The Group, based on the short-term cash flow needs, transfers credit from customers to financial
entities. The amount of these credit assignments is reported in Note 16.a). These operations ac-
crue interest under usual market conditions and the collection management is still carried out by
the Group companies, although the costs associated with such management are residual.
To the extent that the risks and rewards inherent to the accounts receivable are substantially
transmitted through these sales and assignments of collection rights, as well as the control over
them, without there being any repurchase agreements signed between the Group companies
and the credit institutions that have acquired the assets and that they can freely dispose of said
acquired assets without the Group companies being able to limit the aforementioned right in any
way, the aforementioned sales and assignments are posted as “without recourse”. Consequently,
in accordance with the criteria established by IFRS, balances receivable from debtors assigned or
sold under the conditions indicated are written off in the consolidated balance sheet.
i) Inventory
Inventory is valued at the average acquisition price or the average production cost, applying the
necessary value corrections to adapt these values to the net realisable value if it were lower.
The Group’s real estate activity includes land and plots, as well as ongoing developments and
finished properties that are held for sale or for integration into a real estate development. Land
and plots are valued at their acquisition price, plus any urbanisation costs and other expenses
related to their purchase (property transfer tax, registration fees etc.) and the financial costs of
their financing during execution of the works, or their recoverable amount if this is less.
Ongoing developments are the costs incurred in real estate development, or part thereof, whose
construction has not been completed at the end of the business year. The cost of completed real
estate developments is classified as finished products.
Collection rights arising from a service concession arrangement are valued according to the crite-
ria indicated in section a) of this note.
Impairment of land and plots, ongoing real estate developments and finished products is record-
ed when their net realisable value is lower than their book value (note 15).
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The goods received through credit collection in exchange for work executed or to be executed
are valued at the lowest amount from between the amount that was registered for the credit cor-
responding to the goods received, or the cost of production or net realisable value.
j) Foreign currency
j.1) Conversion differences
k) Equity instruments
Equity or capital instruments are recorded for the amount received, net of direct issuance costs.
The treasury shares acquired by the Parent Company during the year are recognised at the value
of the consideration given, as a decrease in equity. Any gains or losses on the purchase, sale,
issue or redemption of own equity instruments are recognised directly in equity and never in the
profit and loss statement.
In general, the financial statements of foreign operations denominated in currencies other than the
euro have been translated to euros, with the exception of:
l) Grants
– Share capital and reserves, which were converted at historical exchange rates.
Grants are recognised according to their nature.
– The profit and loss statement items of foreign operations that were converted at the average
exchange rates for the period.
l.1) Capital grants
Conversion differences for the foreign companies from the consolidation scope, generated by
the application of the year-end exchange rate method, are included in the equity of the attached
consolidated balance sheet, as shown in the attached statement of changes in the equity.
Capital grants are those that involve the acquisition or construction of assets. These grants are
measured at the amount received or the fair value of the asset received; they are recognised as
deferred income on the liability side of the accompanying consolidated balance sheet and are
taken to income as the asset or assets to which they relate are depreciated.
j.2) Exchange differences
l.2) Operating grants
The balances of accounts receivable and payable from monetary items in foreign currency are
valued in euros by applying the exchange rates in force at the date of the consolidated balance
sheet, allocating the differences that are generated to profit/(loss), except as regarding advances,
which, when considered non-monetary items, are kept converted at the exchange rate that exist-
ed at the time of the transaction.
The differences resulting from fluctuations in exchange rates between the date on which the col-
lection or payment was made and the date on which the transactions took place or their value
was discounted are allocated to profit or loss.
Meanwhile, the exchange differences that occur in relation to the financing of investments in
foreign companies, with both the investment and the financing being registered in the same
currency, are directly recognised in equity as conversion differences that offset the effect of the
difference in conversion to euros of the foreign company.
Operating grants are those other than those defined above that do not relate directly to an asset
or group of assets. Operating income is considered the amount received at the time of its con-
cession, except if it is granted to finance specific expenses, in which case its allocation to profit/
(loss) will be made as those expenses accrue.
m) Provisions
The Group companies recognise provisions on the liability side of the accompanying consolidated
balance sheet for present obligations arising from past events for which the companies consider
it probable that there will be an outflow of funds to settle them on maturity.
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These provisions are recognised when the related obligation arises and the amount recognised
is the best estimate, at the date of the accompanying financial statements, of the present value
of the future expenditure required to settle the obligation. The change in the year relating to the
discount to present value has an impact on financial profit/(loss).
Provisions for dismantling, removal or restoration and environmental provisions are recognised by
increasing the value of the related asset by the present value of the expenses that will be incurred
when operation of the asset ceases. Profit or loss is affected when the asset concerned is de-
preciated as described in previous sections of this Note and by the discounted present value as
described in the preceding paragraph.
In addition, some Group companies provide provisions for restructuring costs when there is a
detailed formal plan for such restructuring that has been communicated to the affected parties.
As at 31 December 2020 no liabilities of a substantial amount have been recognised for this item.
Provisions are classified as current or non-current in the accompanying consolidated balance
sheet on the basis of the estimated maturity date of the obligation covered by them, and non-cur-
rent provisions are considered to be those whose estimated maturity date exceeds the normal
operating cycle of the activity giving rise to the provision.
n) Financial liabilities
Financial liabilities are initially recognised at the fair value of the consideration received, adjusted
by the directly attributable transaction costs. Subsequently, these liabilities are measured at their
amortised cost.
Borrowing costs are recognised on an accrual basis in the profit and loss statement using the
effective interest method and are added to the amount of the instrument to the extent that they
are not settled in the year in which they arise.
Bank borrowings and other current and non-current financial liabilities maturing within no more
than twelve months from the balance sheet date are classified as current liabilities and those ma-
turing within more than twelve months as non-current liabilities.
o) Financial derivatives and hedge accounting
A financial derivative is a financial instrument or another type of contract whose value varies in re-
sponse to changes in certain variables, such as an interest rate, financial instrument price, foreign
exchange rate, credit rating or credit index or any other variable that may not be financial.
Apart from giving rise to gains or losses, financial derivatives may, under certain conditions, fully
or partially offset foreign currency or interest rate risks or risks relating to the value associated with
balances and transactions. Hedges are accounted for as follows:
– Cash flow hedges: in hedges of this type, the changes in value of the hedging instrument are
recognised provisionally under equity, and are taken to income when the hedged item mate-
rialises.
– Fair value hedges: in this case, changes in the value of the hedging instrument are recognised
in income by offsetting changes in the fair value of the hedged item.
– Hedges of a net investment in a foreign operation: this type of hedges are aimed at covering
foreign currency risk and are treated as cash flow hedges.
IFRS 9 “Financial Instruments” states that an effectiveness test must be performed, consisting of
a qualitative assessment of the financial derivative to determine whether it can be considered to
be a hedging instrument and, therefore, effective.
The qualitative requirements that must be met are as follows:
– Formal designation and documentation, at inception of the hedge, of the hedging relationship
and the entity’s risk management objective and strategy for undertaking the hedge.
– Documentation identifying the hedged item, the hedging instrument and the nature of the risk
being hedged.
– The effectiveness requirements must be met. This means that there is a financial relationship
between the hedged item and the hedging instrument such that both generally move in oppo-
site directions upon the occurrence of the hedged risk. Credit risk must not have a dominant
effect on the changes in the value of the hedged items and the hedging ratio must be equiv-
alent to the percentage of the exposure to the covered risk.
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The hedge is considered to be fully effective provided that the qualitative effectiveness test shows
that it complies with those criteria. If not, the hedge would cease to be treated as a hedge and
the hedge relationship would cease, recognising the derivative at its fair value through changes
in profit or loss.
Changes in the fair value of financial derivatives that do not qualify for hedge accounting are rec-
ognised in the consolidated income statement as they arise.
The value is calculated using defined methods and techniques based on observable market in-
puts, such as:
A quantitative analysis that will determine how the instruments are recognised takes place af-
ter their effectiveness has been assessed. This quantitative analysis consists of a retrospective
portion for purely accounting purposes and another prospective portion intended to analyse any
possible future deviations relating to the hedge.
The retrospective assessment analysis is adapted to the type of the hedge and the nature of the
instruments used, and all of the financial derivatives contracted by the Group consist of cash flow
hedges (Note 23):
–
In the case of interest rate swaps (IRSs) in Cash flow hedges, the Group charges a variable
rate equal to that of the hedged borrowings and pays a fixed rate, since the objective is to re-
duce the variability of the borrowing costs, the effectiveness test determines whether changes
in the fair value of the IRS cash flows offset changes in the fair value of the hedged risk.
The hypothetical derivative method is used for accounting purposes when performing the
quantitative assessment of effectiveness, which establishes that the company will recognise
in equity the lower of the absolute change in the value of the hypothetical derivative (hedged
position) and the change in the value of the contracted derivative. The difference between the
value of the recognised change in equity and the fair value of the derivative on the date of the
effectiveness test will be considered to be the ineffective portion and it will be directly recorded
in the income statement.
A distinction must be made between the designated portion and the non-designated portion
of cash flow hedges in which the derivative hedge instrument is an option or a forward and
not an IRS:
• The treatment of the designated portion will be similar to that indicated for IRSs.
• The fair value of the non-designated portion (forward points or the temporary value of the
options) will be recognised in other comprehensive income when related to the hedged
portion and will be accumulated in a separate component of equity. This amount will be re-
classified from the separate component of equity to the income statement for the period as
a reclassification adjustment in the same period or periods in which the expected future cash
flow hedges affect results for the period (for example, when a planned sale takes place).
– The interest rate swaps were measured by discounting all the flows envisaged in each contract
on the basis of its characteristics, such as the notional amount and the collection and pay-
ment schedule. This measurement was made using the zero-coupon rate curve determined
by employing a bootstrapping process for the deposits and swaps traded at any given time.
This zero-coupon rate curve was used to obtain the discount factors for the measurements,
which were made assuming the absence of arbitrage opportunity (AAO). When there were
caps and floors or combinations thereof, on occasions conditional upon special conditions
being met, the interest rates used were the same as those used for the swaps, although in
order to introduce the component of randomness in the exercise of the options, the generally
accepted Black - Scholes model was used.
– The methodology used in the case of a cash flow hedge derivative associated with inflation is
very similar to that used for interest rate swaps. Expected inflation is estimated based on ob-
served inflation and is embedded in the swamps indexed to the ex-tobacco European inflation
rate used in the market, and translated to the Spanish rate using a convergence adjustment.
Furthermore, a sensitivity test is carried out on the derivatives and net financial debt in order to be
able to analyse the effect that a possible fluctuation in interest rates might have on the Group’s
accounts, given different interest rate increase and decrease scenarios at year-end (Note 30).
Note 23 to this Report provides details of the financial derivatives that the Group has arranged
and other matters related thereto.
p) Corporation Tax
The expense for corporation tax is calculated on the basis of the consolidated profit before tax,
increased or decreased, as appropriate, by the permanent differences between taxable profit and
accounting profit/(loss). The corresponding tax rate based on the legislation applicable to each
country is applied to this adjusted accounting profit. The tax relief and tax credits earned in the
year are deducted and the positive or negative differences between the estimated tax charge
calculated for the prior year’s accounting close and the subsequent tax settlement at the payment
date are added to or deducted from the resulting tax charge.
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The temporary differences between accounting profit/(loss) and taxable profit for Income >Tax
purposes, together with the differences between the book values of assets and liabilities recog-
nised in the consolidated balance sheet and their tax bases, give rise to deferred taxes that are
recognised as non-current assets and liabilities. These amounts are measured at the tax rates
that are expected to apply in the years in which they will foreseeably be reversed, without per-
forming financial discounting at any time.
The Group activates deferred asset taxes corresponding to temporary differences and negative
tax bases to be offset, except in cases where there are reasonable doubts about their future
recovery.
q) Pension commitments
The Group companies have certain specific cases related to pension plans and similar obligations
that are developed in note 25 of this Report.
r) Operating income and expenses
Revenue is recognised when the control of the good or service is transferred to the customer,
in general, only when there is approval from the customer applying a homogeneous method to
contracts of a similar nature. Revenues are valued at the expected amount of the consideration
that is to be received that can be estimated reliably and that is not expected to be reversed in
the future. After analysing its portfolio of contracts, the Group has concluded that, except in very
specific cases, there is no more than one performance obligation in the contracts being executed,
since either integration services are provided for the different activities carried out, or because
they are highly interrelated.
As regards variable consideration, only one income is recognised for the value, and it is highly
probable that it will not suffer significant reversion when the uncertainty about it is subsequently
resolved. Also, in the case that the contracts include price revision clauses, the income that repre-
sents the best estimate of the amount to be charged in the future and under the same probability
criteria mentioned for the variable consideration is recorded.
In general, the Group has not identified significant financial components in its contracts with cus-
tomers. The financial component is only separated from the consideration to be received and the
corresponding financial income is recorded in those contracts in which the time between when a
service is provided or a good is delivered and when the payment is received is greater than twelve
months.
In the construction activity, performance obligations are paid over time, so revenue is recognised
using a product-based method, i.e. that is in-line with the degree of progress criterion. Only in-
come that is protected by a main contract signed with the property and in modifications thereto
approved by it is recognised. If the modification is approved without the amount being fixed, the
income is only estimated as a variable consideration when the criteria of probability and significant
non-reversal mentioned above are met. Budgeted losses are recognised as profit/(loss) for the
year.
Meanwhile, in this activity the costs are recognised in accounts according to their accrual. The
costs for obtaining the contract, mainly related to the study and preparation of the project, are
not activated as they cannot be considered as incremental, since they are incurred regardless
of whether the contract is finally obtained or not. Two main costs for fulfilling the contract can
be distinguished: engineering and study costs and those related to general and specific facilities
(mainly accessory facilities such as concrete plants, auxiliary works or building booths necessary
to provide the services). The main contracts in which the aforementioned expenses are incurred
are of the design and construction type, in which the remuneration to be received for the work to
be carried out in engineering and studies and those of the benefit is identified by separate work
units of construction services. Therefore, in general, the expenses derived from engineering and
studies are not activated and are recognised in accordance with their accrual as services are ren-
dered. Costs related to the general and specific facilities are recorded as expenses according to
the degree of progress when a separate works unit with its corresponding remuneration is identi-
fied in the contract, and assets are only activated within the heading when the contract does not
identify them separately, and profit/(loss) is charged together with the rest of the contract costs
using the aforementioned degree of progress.
In the service provision activities, which are mainly carried out in the Environmental Services and
Integral Water Management services, revenues and expenses are allocated based on the accrual
criterion, that is, when the actual flow of goods and services that they represent occur, regardless
of when the monetary or financial flow derived from them occurs. These are performance obliga-
tions that are satisfied over time as the customer receives and consumes the profits at the same
time as the service is provided. Consequently, revenue is recognised by measuring the value of
the services actually provided to the customer using a product-based method.
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Regarding the delivery of goods activities that the Group mainly carries out in the Cement seg-
ment and in the Real estate activity, revenues are only recognised when the goods have been
delivered and their property has been transferred to the customer, as they are performance obli-
gations that are satisfied at a specific moment of time.
In the aforementioned activities (other than construction), the costs of obtaining the contract are
not incremental, so they are not activated and are recognised based on their accrual. Meanwhile,
no relevant contract fulfilment costs are incurred and are therefore recorded as operating expens-
es in general.
– Operating activities are the activities that constitute the main source of the company’s ordinary
income, as well as other activities that cannot be classified as investment or financing activi-
ties. Among the operating cash flows, it is worth highlighting the heading “Other adjustments
to profit/(loss)” which basically includes items that are included in the Profit/(Loss) Before Tax
but have no impact on the change in cash, as well as items that are already included in other
headings of the Cash Flow Statement according to their nature.
–
Investment activities are the acquisition and disposal of long-term assets, as well as other
investments not included in cash and cash equivalents.
In relation to the service concession arrangements, it must be noted that the Group recognises
the interest deriving from collection rights under the financial model as revenue, since the value of
that financial asset includes the construction, upkeep and maintenance services that are identical,
from an operating standpoint, to those set out in the intangible model and, consequently, it is con-
sidered that since both models are related to the company’s operating activity, the faithful image
is best represented by encompassing the income derived from the financial asset as belonging
to the operation (Note 3.a).
– Financing activities are the activities that generate changes in the size and composition of own
capital and loans taken by out the company.
For the purposes of preparing the consolidated statements of cash flows, the “cash and cash
equivalents” have been considered as cash and on-demand bank deposits, as well as those
short-term, highly liquid investments, which are easily convertible into specific amounts of cash,
subject to an insignificant risk of changes in their value.
Also recognised as operating profit/(loss) are those produced in the disposals of shares in subsid-
iaries when it implies the loss of control over them.
u) Use of estimates
s) Related-party transactions
The Group performs all of its transactions with related parties on an arm’s length basis.
Note 31 of this Report details the main transactions with significant shareholders of the Parent
Company, with administrators and senior executives, between companies or Group entities and
with companies invested in by shareholders of the Group.
t) Consolidated statement of cash flows
The FCC Group prepares its statement of cash flows in accordance with IAS 7 “Statement of cash
flows” following the indirect method, using the expressions below in the following ways:
– Cash flows are the inflows and outflows of cash and cash equivalents.
In preparing these 2020 and 2019 Group consolidated financial statements, estimates were
made to quantify certain assets, liabilities, revenues, expenses and obligations recognised there-
in. These estimates relate essentially to the following:
–
Impairment losses on certain assets (Notes 7, 8, 9, 12 and 14)
– Goodwill measurement (Note 7)
– The recoverability of the work executed pending certification (notes 3.r and 16)
– The recoverability of deferred tax assets (Note 24)
– The amount of certain provisions and, in particular, those related to claims and litigation and
the losses budgeted in construction contracts (note 19)
– The useful life of the property, plant and equipment as well as intangible assets and real estate
investments (notes 7, 8 and 9).
– The determination of the recoverable amount of inventory (note 15)
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– The assumptions used in the actuarial calculation of liabilities and commitments for post-em-
ployment compensation (notes 19 and 25)
– The market value of derivatives (Note 23)
– Cost of business combinations (note 5)
Although these estimates have been made based on the best information available at the date
of preparing these consolidated financial statements on the events analysed, it is possible that
events that may take place in the future may require them to be modified (upwards or downwards)
in future years, which would be done prospectively, recognising the effects of the change in esti-
mate in the corresponding future financial statements.
IFRS 7 “Financial instruments: information to be disclosed” requires that the fair value valuations
of financial instruments, both assets and liabilities, be classified according to the relevance of the
variables used in the valuation, establishing the following hierarchy:
– Level 1: quoted prices (unadjusted) in active markets for identical instruments.
– Level 2: inputs other than prices quoted that are observable for the financial instrument, either
directly (i.e., as prices) or indirectly (i.e., derived from prices)
– Level 3: data for the financial instrument that are not based on observable market data.
Almost all of the Group’s financial assets and liabilities, which are valued at fair value, are level 2.
v) Non-current assets and related liabilities held for sale
Assets and liabilities whose book value is recovered through a sale transaction and not through
continued use are classified as non-current assets held for sale and liabilities related to non-cur-
rent assets held for sale. This condition is considered fulfilled only when the sale is highly probable
and the asset is available for immediate sale in its current state and it is estimated that it will be
completed within a period of one year from the classification date.
Non-current assets and related liabilities classified as held for sale are valued at the lower of their
book value and fair value less expected selling costs.
4. Non-current assets held for sale and
liabilities related to non-current assets
held for sale and discontinued operations
Assets with sale plans that also meet the requirements established in International Financial Re-
porting Standard 5 “Non-current assets held for sale and discontinued operations” have been
reclassified (Note 3.v).
On 3 October 2020, FCC agreed to sell its entire stake in three concessions located in Spain to
a non-Group company, Vauban Infrastructure Partners, within its policy of rotation and selective
development of projects in this activity. Specifically, the agreement signed involves the transfer of
51% in the Cedinsa Group, a controlled company that manages the concession of four highways
in Catalonia, 49% in Concessió Estacions Aeroport L9, SA (consolidated by the equity method),
concessionaire of section 1 of line 9 of the Barcelona metro and 29% in Urbs Iudex et Causidicus,
SA (consolidated by the equity method), which is operated by Ciudad de la Justicia, also in Bar-
celona. The price to be paid by Vauban for all of FCC’s stakes in these concessions amounts to
409.3 million euros. Closure of the agreement is pending the usual authorisations in this type of
transactions, not forthcoming at the date of formulation of these consolidated annual accounts.
Assets held for sale, deducted from liabilities, have been appraised at book value as this is less
than the expected amount for their sale, net of selling costs.
The following sections detail the main headings that constitute the results, cash flows and the
balance sheet, corresponding to the assets and liabilities held for sale. The sale of these compa-
nies does not imply the discontinuation of the FCC Group’s concessions activity, which is why the
results continue to be presented by their nature in the consolidated income statement.
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Profit and Loss Account
Cash flow statement
The breakdown by nature of the profit after tax of the companies whose assets and liabilities have
been reclassified as assets and liabilities held for sale is as follows:
The statement of cash flows corresponding to companies whose assets and liabilities have been
reclassified as assets and liabilities held for sale is as follows:
2020
Revenue
Operating expenses
Operating Profit/(Loss)
Profit/(loss) before tax from
continuing operations
Income tax
Profit/(loss) for the year from
continuing operations
Profit attributable to the parent
company
Profit/(loss) attributable to non-
controlling interests
Total
92,913
(47,951)
44,962
Cedinsa
Group
92,913
(47,951)
44,962
Concessió
Estacions
Aeroport
L9, S.A.
Urbs
Iudex et
Causidicus,
S.A.
2020
Profit/(loss) before tax from continuing operations
–
–
–
–
–
–
Adjustments to profit or loss
Changes in working capital
Other cash flows from operating activities
Cash flow from business activities
34,524
19,518
12,789
2,217
(5,523)
29,001
(5,523)
13,995
Investment payments
–
–
Divestment receipts
12,789
2,217
Other cash flows from investing activities
24,390
9,384
12,789
2,217
4,611
4,611
–
–
Cash flow from investment activities
Proceeds from and payments for equity instruments
Proceeds from (payments on) financial liabilities
Other flows from financing activities
Cash flows for financial activities
Total cash flows
Cedinsa
Group
19,518
65,535
13,211
(10,222)
88,042
(8,616)
6,058
–
(2,558)
–
(26,771)
(61,871)
(88,642)
(3,158)
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Balance sheet. Headings of non-current assets and liabilities
held for sale
5. Changes in the scope of consolidation
The different assets and liabilities reclassified as held for sale under the respective headings of the
attached balance sheet are detailed below:
The main changes experienced in the scope of consolidation in 2020 are the following:
2020
Total
Cedinsa
Group
Concessió
Estacions
Aeroport
L9, S.A.
Urbs
Iudex et
Causidicus,
S.A.
a) Business combinations
FCC Aqualia, S.A. has acquired control of the following businesses by acquiring the stakes de-
tailed below:
Intangible assets
1,016,607
1,016,607
Property, plant and equipment
651
651
–
–
–
–
Non-current financial assets
305,541
234,152
70,249
1,140
Deferred tax assets
Current assets
14,638
54,831
14,638
54,831
–
–
–
–
–
–
Non-current assets held for sale
1,392,268
1,320,879
70,249
1,140
Non-current financial liabilities
Rest of non-current liabilities
Current financial liabilities
Rest of current liabilities
848,499
848,499
159,404
159,404
31,771
11,611
31,771
11,611
Liabilities relating to assets held for sale
1,051,285
1,051,285
–
–
–
–
–
–
–
–
–
–
In January 2020, a 51% stake in Qatarat Saqia Desalination Company Ltd., the concession-
aire of the Jeddah International Airport desalination plant, amounting to 12,914 thousand
euros, acquiring control. The amount paid is recorded in the attached statement of cash flows
under the heading “Payments for investments”.
In June 2020, an additional 2% stake in Aquos El Realito, SA de CV, the company that owns
the operation of a water treatment plant in San Luis de Potosí, for an amount of 355 thousand
euros, where it previously held 49%, consolidated by the equity method, reaching a 51%
stake and control. Consequently, Aquos el Realito, SA de CV has become fully consolidated,
which has led to the recording of 8,671 thousand euros under the heading “Minority interests”
(Note 18) in the attached consolidated balance sheet. As a result of the transaction, a posi-
tive impact has been recorded in the heading “Profit of entities valued by the equity method”
amounting to 635 thousand euros due to the fair value of the equity investments prior to the
operation, and the application of valuation adjustments to results (Note 27).
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The composition of the balance sheets for business combinations is detailed below:
2020
Non-current assets
Intangible assets
Property, plant and equipment
Investments accounted for using the equity method
Non-current financial assets
Deferred tax assets
Current assets
Inventory
Trade and other accounts receivable
Other current financial assets
Other current assets
Cash and other cash equivalents
Total assets
Equity
Non-current liabilities
Grants
Non-current provisions
Non-current financial liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Current provisions
Current financial liabilities
Trade payables and other accounts payable
Total equity and liabilities
Qatarat Saqia
Desalination
Company Ltd.
Aquos el
Realito, S.A.
de C.V.
54,097
53,906
191
–
–
–
16,565
17
10,189
–
–
6,359
70,662
25,321
38,110
–
64
35,730
2,316
–
7,231
–
5,018
2,213
70,662
76,181
24,645
8
–
51,071
457
15,160
–
3,128
4,823
–
7,209
91,341
17,697
65,616
–
–
53,603
12,013
–
8,028
–
3,643
4,385
91,341
As a result of the aforementioned business combinations, the fair value of the acquired assets has
been determined, as all of these companies operate concessions, the fair value of the conces-
sion-based assets has been determined applying the discount at a market rate for the cash flows
estimated during the time horizon of the concessions currently in force. These flows have been
estimated internally based on the Group’s past experience, based, as applicable, on the Financial
and Economic Plans of the concessions, applying the assumptions and appropriate macroeco-
nomic variables in each case. The following table shows the amounts allocated to assets and
liabilities to reflect their fair value on the takeover date:
2020
Intangible assets
Property, plant and equipment
Non-current financial assets
Total assignments to assets
Non-current liabilities (deferred tax liabilities)
Total assignments to liabilities
Total net assignments
Qatarat Saqia
Desalination
Company Ltd.
Aquos el
Realito, S.A.
de C.V.
11,578
9,522
–
–
11,578
2,316
2,316
9,262
–
–
9,522
2,857
2,857
6,665
The reconciliation between the consideration transferred for each of the above business com-
binations, the value of non-controlling interests recognised and the fair value of the net assets
acquired are provided below:
2020
Acquisition value
Fair value Minority interests acquired
Fair value previous interest
- Fair value net assets
Goodwill
Qatarat Saqia
Desalination
Company Ltd.
Aquos el
Realito, S.A.
de C.V.
12,914
12,407
–
355
8,671
8,671
(25,321)
(17,697)
0
0
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If the above companies had been consolidated since 1 January 2020, the ordinary income and
profit/(loss) they would have contributed would have been as follows:
to adjust them should more relevant and comprehensive information be obtained at a later date.
In 2019 it should be noted that the following business combinations were carried out:
227
2020
Revenue
Other income
Operating Profit/(Loss)
Profit/(loss) before tax from continuing operations
Profit attributable to the parent company
Non-controlling interests
Qatarat Saqia
Desalination
Company Ltd.
Aquos el
Realito, S.A.
de C.V.
–
15,817
–
4,928
6,692
703
2,001
8,577
–
3,881
1,192
363
1,226
If the above companies had been consolidated since 1 January 2020, the ordinary income and
profit/(loss) they would have contributed would have been as follows:
–
2020
Revenue
Other income
Operating Profit/(Loss)
Profit/(loss) before tax from continuing operations
Profit attributable to the parent company
Non-controlling interests
Qatarat Saqia
Desalination
Company Ltd.
Aquos el
Realito, S.A.
de C.V.
15,817
–
4,928
6,692
703
2,001
14,325
–
3,902
(16)
39
111
In any case, these initial estimates are provisional and the Group has a period of one year in which
In January 2019, two partner agreements were signed in relation to the consolidated that, until
then, had been consolidated under the equity method - Shariket Tahlya Mostaganem, S.p.a.
and Shariket Miyeh Djinet, S.p.a. - under which the Group now holds control over the former
and no longer has a significant influence on the latter. As a result, Shariket Tahlya Mostaganem,
S.p.a. was fully consolidated and the holding in Shariket Miyeh Djinet, S.p.a. was considered a
financial asset at fair value. These transactions resulted in a net loss of 6,122 thousand euros
being recognised under “Profits/(losses) of companies accounted for by the equity method” fol-
lowing the allocation of the negative translation differences accumulated in equity to profit and
loss and the positive impact resulting from the fair value adjustment of shares prior to the trans-
action. Furthermore, “Other collections/(payments) from investment activities” in the Statement
of Cash Flows includes 43,337 thousand euros corresponding to the cash that Shariket Tahlya
Mostaganem, S.p.a. presented in its balance sheet at the time of the takeover. This operation
led to the recognition of 136,998 thousand euros under the heading “Non-controlling interests”
(Note 18).
In June 2019 FCC Aqualia, S.A. acquired 100% of the French subgroup Services Publics et
Industries Environnement, dedicated to the management of water supply and sanitation for the
sum of 31,665 thousand euros, with the impact registered under “Payments for investments
“on the accompanying Statement of Cash Flows. As part of this business combination, a first
consolidation difference of 24,234 thousand euros was disclosed, which was fully allocated to
the subgroup’s concession assets.
–
In November 2019 FCC Construcción, S.A. acquired an additional 17% of the share capital of
Cedinsa Concessionària, S.A., in which it previously held significant influence, for an amount of
57,955 thousand euros, of which it previously held 34%, recording the disbursement under the
heading “Payments for investments” in the attached Statement of Cash Flows. As a result of
the aforementioned operation and the agreement of partners that was signed, the Group took
control, and thus pursuant to regulations it has registered a positive result of 36,588 thousand
euros under the heading “Profit/(loss) of companies accounted for using the equity method”,
as a consequence, on the one hand, of the fair value of the participation that it previously held,
with income of 78,647 thousand euros and, on the other hand, of the allocation to profit/(loss)
of the corresponding valuation adjustments to the participation of 34% prior to the business
combination, which led to the posting of a loss of 42,059 thousand euros.
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The composition of the balance sheets drawn up by the business combinations in 2019 is de-
tailed below:
2019
Non-current assets
Intangible assets
Property, plant and equipment
Investments accounted for using the equity
method
Non-current financial assets
Deferred tax assets
Current assets
Inventory
Trade and other accounts receivable
Other current financial assets
Other current assets
Cash and other cash equivalents
Cedinsa
Group
Shariket Tahlya
Mostaganem,
S.p.a
Services
Publics et
Industries
Environnement
1,377,700
1,058,395
535
–
232,451
86,319
105,724
–
29,748
15,789
692
59,495
175,152
–
92
–
175,060
–
62,622
229
18,955
–
101
43,337
36,132
32,051
4,081
–
–
–
28,008
509
13,683
4,029
329
9,458
Total assets
1,483,424
237,774
64,140
2019
Equity
Cedinsa
Group
Shariket Tahlya
Mostaganem,
S.p.a
Services
Publics et
Industries
Environnement
281,723
167,362
31,655
Non-current liabilities
1,134,890
53,519
9,932
Grants
Non-current provisions
Non-current financial liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Current provisions
Current financial liabilities
Trade payables and other accounts payable
67,710
52,590
907,710
106,880
–
66,811
49,574
10,166
7,071
–
82
52,773
664
–
16,893
10,255
40
6,598
Total equity and liabilities
1,483,424
237,774
317
850
578
8,187
–
22,553
–
149
22,404
64,140
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229
As a result of the aforementioned business combinations, the fair value of the acquired assets
was determined, as all of these companies operate concessions, and the fair value of the con-
cession-based assets was determined applying the discount at a market rate for the cash flows
estimated during the time horizon of the concessions currently in force. These flows were estimat-
ed internally based on the Group’s past experience, based, as applicable, on the Financial and
Economic Plans of the concessions, applying the assumptions and appropriate macroeconomic
variables in each case. The following table shows the amounts allocated to assets and liabilities
to reflect their fair value on the takeover date:
The reconciliation between the consideration transferred for each of the above business com-
binations, the value of non-controlling interests recognised and the fair value of the net assets
acquired are provided below:
2019
Acquisition value
Cedinsa
Group
Shariket Tahlya
Mostaganem,
S.p.a
Services
Publics et
Industries
Environnement
Fair value Minority interests acquired
Fair value previous interest
- Fair value net assets
Shariket Tahlya
Mostaganem,
S.p.a
Services
Publics et
Industries
Environnement
–
31,655
124,687
42,675
(167,362)
–
–
(31,655)
Cedinsa
Group
57,955
119,450
104,318
(281,723)
31,953
Goodwill
–
–
–
2019
Intangible assets
Property, plant and equipment
Non-current financial assets
Total assignments to assets
Non-current liabilities
(deferred tax liabilities)
Total assignments to liabilities
261,622
–
28,501
290,123
63,044
63,044
–
–
29,232
29,232
–
–
–
–
31,953
8,187
8,187
Total net assignments
227,079
29,232
23,766
The previously listed business combinations have contributed ordinary income and profit/(loss) to
the following accompanying consolidated profit and loss statement:
2019
Revenue
Other income
Operating Profit/(Loss)
Profit/(loss) before tax from continuing
operations
Shariket Tahlya
Mostaganem,
S.p.a
Services
Publics et
Industries
Environnement
31,357
–
15,441
11,798
11
1,768
Cedinsa
Group
14,600
649
4,911
(879)
14,007
1,771
Profit attributable to the parent company
Non-controlling interests
(377)
(362)
3,572
10,435
925
–
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If the above companies had been consolidated since 1 January 2019, the ordinary income and
profit/(loss) they would have contributed would be as follows:
2019
Revenue
Other income
Operating Profit/(Loss)
Profit/(loss) before tax from continuing
operations
Shariket Tahlya
Mostaganem,
S.p.a
Services
Publics et
Industries
Environnement
31,357
–
15,441
19,027
310
2,260
Cedinsa
Group
135,160
1,942
54,450
17,184
14,007
2,267
Profit attributable to the parent company
Non-controlling interests
6,419
6,168
3,572
1,123
10,435
–
b) Other changes in scope
In July 2020, FCC Medio Ambiente Reino Unido, SL agreed to sell to Icon Infrastructure Part-
ners a minority percentage of 49% of the capital of its new subsidiary Green Recovery Projects
Limited, which owns five energy recovery plants (incinerators) after the corporate reorganisation
undertaken by the Environment area in the United Kingdom. The transaction was completed
in November for an amount of 188,403 thousand euros, which have been recorded under the
heading “(Acquisition) / disposal of own securities” in the attached Statement of Cash Flows. As
control has not been lost, the operation has been recorded as an equity operation and has led
to the recording of 60,718 thousand euros under the heading “Minority interests” and 74,215
thousand euros in reserves, as a result of the difference between the price of sale and the value
of the minority interests registered. Additionally, the valuation adjustments have increased by
55,300 thousand euros, as the proportional part has been attributed to minority interests of the
aforementioned adjustments prior to the sale (Note 18).
During April 2019, FCC Aqualia, S.A. acquired a 49% interest in the subsidiary AquaJerez, S.L.,
in which it already held a 51% interest, for the sum of 55,557 thousand euros, 28,858 thousand
euros as a payment for shares and 26,699 thousand euros as a payment for participatory loans
held by the seller. As this transaction involved non-controlling interests, the difference between the
acquisition price and the value of the net assets acquired was recognised directly against equity,
entailing a decrease of 17,311 thousand euros in reserves in the Group’s consolidated financial
statements (Note 18), having recognised the cash outflow under the heading “Proceeds from/
(payments on) equity instruments” for the part corresponding to the shares and under the heading
“Proceeds from/(payments on) financial liabilities” for the part corresponding to the participatory
loans acquired from the accompanying Statement of Cash Flows.
6. Distribution of profit
Fomento de Construcciones y Contratas, S.A. distributed a flexible dividend (scrip dividend) dur-
ing financial years 2020 and 2019, which led to a cash outflow of 12,436 thousand euros (9,566
thousand euros in financial year 2019) and the delivery of 16,841,792 shares (13,439,320 shares
in fiscal year 2019) (Note 18). Additionally, certain subsidiaries with minority partners have distrib-
uted dividends.
The following table shows the dividends paid to its shareholders by the Group companies as of
31 December 2020 and 2019:
Shareholders of Fomento de Construcciones y Contratas, S.A.
Other non-controlling shareholders of other companies
2020
12,436
24,207
36,643
2019
9,566
62,023
71,589
The decrease in “Other minority shareholders of the rest of the companies” is mainly attributable
to the company FCC Aqualia, S.A.
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7.
Intangible assets
a) Concessions
The changes in this heading of the consolidated balance sheet in 2020 and 2019 were as follows:
231
The net breakdown of intangible assets at 31 December 2020 and 2019 is as follows:
Cost
Accumulated
amortisation
Impairment
Net Value
Balance at 31/12/18
2020
Concessions (Note 11)
2,549,048
(1,115,658)
(55,230)
1,378,160
Goodwill
1,854,133
–
(847,118)
1,007,015
Other intangible assets
360,060
(292,218)
(15,158)
52,684
4,763,241
(1,407,876)
(917,506)
2,437,859
2019
Concessions (Note 11)
3,680,629
(1,249,755)
(56,254)
2,374,620
Goodwill
1,893,895
–
(870,384)
1,023,511
Other intangible assets
359,776
(285,106)
(14,403)
60,267
Additions or allocations
Disposals, derecognitions or reductions
Translation differences
Change in scope, transfers and other
changes
Balance at 31/12/19
Additions or allocations
Disposals, derecognitions or reductions
Translation differences
Change in scope, transfers and other
changes
Concessions
2,249,398
34,255
(8,614)
22,806
Accumulated
Depreciation
Impairment
(902,183)
(100,204)
7,216
(1,309)
(58,411)
–
1,080
–
1,077
1,382,784
(253,275)
3,680,629
(1,249,755)
(56,254)
106,578
(29,368)
(61,806)
(137,591)
6,901
7,219
(1,146,985)
257,568
(97)
1,121
–
–
5,934,300
(1,534,861)
(941,041)
3,458,398
Balance at 31/12/20
2,549,048
(1,115,658)
(55,230)
This heading includes the intangible assets corresponding to the service concession arrange-
ments (Note 11).
The most significant entries in the 2020 financial year correspond, within the Environmental Ser-
vices segment, to the ongoing projects carried out by the company Ecoparque Mancomunidad
del Este SA for an amount of 52,226 thousand euros (17,215 thousand euros in the 2019 financial
year) and the company FCC Environmental Services Texas Llc. for an amount of 21,608 thousand
euros and, within the Integrated Water Management segment, to the company Aqualia Latino-
américa, SA for an amount of 13,584 thousand euros.
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232
The “changes in the scope, transfers and other movements” in the service concession agree-
ments for fiscal year 2020 include a decrease due to the transfer to assets held for sale by the
Cedinsa subgroup (Note 4) for the amount of 1,308,452 thousand euros gross and 291,847
thousand of euros of accumulated depreciation, and an increase due to the acquisition of the
company Qatarat Saqia Desalination Company Ltd. for an amount of 76,514 thousand euros
gross and 22,608 thousand euros of accumulated depreciation (Notes 5 and 12).
The movements of goodwill in the attached consolidated balance sheet in 2020 and 2019 were
as follows:
Balance at 31/12/18
1,078,490
Exchange differences, change in consolidation scope and others:
FCC Environment Group (UK)
14,993
39
15,032
The “changes in scope, transfers and other movements” in 2019 include mainly 1,308,395 thou-
sand euros gross and 250,000 thousand euros of accumulated amortisation as a result of the
takeover of the Cedinsa subgroup (Notes 5 and 12).
Rest
Impairment losses:
The inputs and derecognitions leading to cash movements are recorded in the accompanying
statement of cash flows as “Payments due to investments” and “Collection due to divestments”
of “Property, plant and equipment, intangible assets and real estate investments”, respectively.
In 2020, no interest was capitalised (381 thousand euros in 2019) and total capitalised interest
amounted to 43,848 thousand euros (43,540 thousand euros in 2019).
b) Goodwill
The breakdown of goodwill in the accompanying consolidated balance sheet at 31 December
2020 and 2019 was as follows:
Cementos Portland Valderrivas, S.A.
FCC Environment Group (UK)
A,S,A, Group
FCC Aqualia, S.A,
FCC Ámbito, S.A,
FCC Industrial e Infraestructuras Energéticas, S.L.U.
Canteras de Aláiz, S.A.
Cementos Alfa, S.A
Rest
2020
439,386
290,290
136,793
82,764
23,311
21,499
4,332
3,712
4,928
2019
439,386
306,745
136,793
82,764
23,311
21,499
4,332
3,712
4,969
1,007,015
1,023,511
Grupo Cementos Portland Valderrivas (note 27)
(70,011)
(70,011)
Balance at 31/12/19
Exchange differences, change in consolidation scope and others:
FCC Environment Group (UK)
Rest
Balance at 31/12/20
(16,455)
(41)
1,023,511
(16,496)
1,007,015
The heading “Changes in the scope, translation differences and other movements” during 2020
addresses the effect of the depreciation of the pound sterling against the euro (appreciation of
the pound in 2019).
The impairment analysis policies applied by the Group to its goodwill are described in Note 3.b).
In accordance with the methods used and in accordance with the estimates, projections and
valuations available to the Group’s Management, the existence of additional losses in value is not
apparent.
The most significant aspects of the estimates made and the sensitivity analysis in the impairment
tests of goodwill were as follows.
It should be noted that in the preparation of the following impairment tests, cash flows were esti-
mated based on the best estimates of the Group’s Management and that upward or downward
changes in the key assumptions contemplated, both in the discount rate and in the operating
margins, among other factors, may affect the recoverable amount of the cash generating unit
considered.
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Cementos Portland Valderrivas
The goodwill consists of two separately identifiable goodwills recorded in the individual books of
Cementos Portland Valderrivas, S.A.:
– One originating from the merger by absorption of the parent of the Corporación Uniland group
and some of its subsidiaries for an amount of 325,881 thousand euros,
– 113,505 thousand euros corresponding to the cash generating unit (CGU) constituted by the
Alcalá de Guadaira factory.
The main hypotheses used in each of the impairment tests of the two previous CGUs are de-
scribed below:
1) Corporación Uniland
The stake in Uniland was acquired in several stages between 2006 and 2013, up to 100% of the
stake for a total amount of 1,898,973 thousand euros.
In 2011 there was an impairment of goodwill associated with previous purchases for the amount
of 239,026 thousand euros, as a result of the strong contraction of the market in the cement
sector, which was not expected to recover in the short or medium term. In 2016 there was an
additional impairment of 187,191 thousand euros and in 2019 the impairment test was updated
considering the slower growth rate in cement consumption derived largely from the slowdown
in the real estate market, as a result of which future forecasts were adjusted to an evolution of
demand that included uncertainty scenarios, with an additional impairment booked of 70,011
thousand euros.
During this fiscal year, the Group has proceeded to re-evaluate its analyses considering the cur-
rent circumstances of the markets and the situation derived from the global pandemic, which
inevitably impact the projected cash flows. In any case, although the good performance of the
CGU’s activity in the year should be considered and, in accordance with the forecasts, in particu-
lar, growth in the second half of the year was somewhat slower, but with EBITDA with growth in
line with the estimates used in the impairment test carried out in 2019. As a result of the analysis
carried out, in 2020 there was no impairment. The key hypotheses used in this test are detailed
below.
Firstly, based on the historical information of the last 50 years in the cement industry, it is consid-
ered that the term that best reflects the life cycle of the cement market is ten years, a period used
in the projections made.
Since Uniland operates in two clearly different geographic markets, various pre-tax discount rates
have been used to assess flows from different countries. A pre-tax discount rate of 7.12% has
been used to evaluate goodwill from flows in Spain, and 15.93% for flows from Tunisia. It should
be noted that the flows for Spain represent a substantial part of the total contemplated in the test.
The Group bases its cash flow forecasts on historical data and on both internal future forecasts
and future forecasts by external sectoral bodies. In the short term, the income forecasts consid-
ered in the impairment test are made according to estimates of cement consumption by Ofice-
men, the employer association of the sector, and internal estimates. For the medium and long
term, the projections are prepared according to external projections of macroeconomic data on
inflation and GDP (Bank of Spain, Funcas, Statista etc.) and historical trends.
According to information from Oficemen, the employer’s association of the cement sector in
Spain, cement consumption in 2020 closed at 13.29 million tons, 9.7% less than in 2019, impact-
ed by the COVID-19 crisis. The sector ended the year with figures still above those experienced
during the worst years of the crisis, between 2013 and 2017. On the other hand, total exports
(cement and clinker) have reached 5.99 million tons, which represents a decrease of 3.4% com-
pared to the previous year. Despite a negative closure, consumption in Spain has been better than
expected at the beginning of the pandemic. For 2021, the management association estimates
that the slowdown will continue, moving in a range from -3% to 3%.
In this context, in 2020 the Company updated the flows of its “Business Plan” for the period 2021-
2030 that serves as the basis for calculating the impairment tests, considering the uncertainties
derived from Covid-19, which has inevitably meant a decrease in the flows forecast for the first
projected years (in line with Oficemen’s forecasts detailed above), for a subsequent recovery in
the last years estimated.
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For the Spanish market, the residual value assumed in the flow projections is calculated based
on consumption considered sustainable, which is around 20-25 million tons, with no growth in
perpetuity. The main inputs used for the determination of this consumption range are consistent
with historical and expected series of relative weights of public works on GDP in Spain, as well
as with the forecasts of the number of approvals for new housing that have been considered as
standardised levels according to different sector reports. The cyclical nature of the sector is con-
sidered in this value, assuming that this level of long-term sustainable consumption would be the
average of one cycle, in which the years of higher consumption would be offset by those with a
lower consumption. The sustainable residual value considered is the average of the values of the
last five years of the projections.
For the Tunisian market, in the year 2021 it is estimated that the national cement market will be at
6.1 million tons, recovering part of the fall that it experienced in 2020 as a result of the Covid-19
crisis, and it now stands at -10.2% compared to 2019. The strategy focuses on volume growth in
the domestic market and the consolidation of the price increases made in recent years.
The costs are estimated based on the expected inflation, the performance expectations of the
price of fuels and the electricity market, and the strategy of increasing the energy recovery of
alternative fuels.
The change of the working capital contemplated in the analysis for each year remains stable in its
calculation mode, being linked to the general performance of the unit analysed.
The performance of investments is also linked to general developments in the activity analysed,
with higher levels of investments supported by the improvement of flows in the projected years.
The value of the investments reflected in the perpetuity rate shows the value that the company
estimates should be the objective of investments to be made in order to maintain the productive
activity at the required sustainable level.
The main variables used in the test are the following:
− Discount period of joint flows for Uniland Spain and Tunisia: 2021 to 2030
− Discount rate before taxes: 7.12% (Spain) and 15.93% (Tunisia)
− Growth in perpetuity: 0%
− Residual value on the recoverable amount of the CGU as a whole: 49.3%
− Excess of fair value over book value: 20,627 thousand euros
− Compound annual growth rate Cement Market Spain (without CO2), terminal value for fiscal
year 2021:
• National market turnover: 6.3%
• Export market turnover: -6.8%
• Gross Operating Profit: 9.4%
− Compound annual growth rate (in dinars) Tunisia Cement Market, terminal value over fiscal
year 2020:
• National market turnover: 7.9%
• Export market turnover: 3.9%
• Gross Operating Profit: 7.4%
The result of this test is sensitive to changes in the key hypotheses; a 10% increase in projected
flows would result in an excess over the value of approximately 91,457 thousand euros and a
10% decrease would result in an additional impairment of around 50,202 thousand euros. Like-
wise, a 10% increase in the discount rate considered would mean an additional impairment of
around 51,103 thousand euros and a 10% decrease in the excess of the value of approximately
108,376 thousand euros.
However, the Management of the Parent Company considers that development of the Group and
its businesses in recent periods allow them to conclude that the scales of achievement of the
objectives contemplated in the test are within a reasonable degree of sensitivity that enable them
not to identify any impairment in the 2020 financial year.
2) Alcalá de Guadaíra
The cement demand forecasts and the sector expectations, at the national level, described above
for the Corporación Uniland goodwill are equally applicable to Cementos Atlántico.
The Alcalá de Guadaíra factory continues to benefit from its geographical location to offset the
decrease in the volume of the national market with a greater volume of exports.
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The main variables used in the test are the following:
− Discount of flows period: 2021 to 2030
− Discount rate before taxes: 7.04%
− Growth in perpetuity: 0%
− Residual value on recoverable amount of the CGU: 62%
− Excess of fair value over book value: 40,336 thousand euros
− Compound annual growth rate (without CO2), terminal value over fiscal year 2020:
• Total revenue: 4.46%
• Gross Operating Profit: 15.1%
The Cementos Atlántico goodwill test can take a pre-tax discount rate of up to approximately
11.83%. Meanwhile, it would support an annual drop in cash flows of approximately 33% com-
pared to projected flows.
Based on the foregoing, the company considers that the excess of the impairment test allows
deviations significant enough to not give rise to any value impairments of CGU assets.
FCC Environment group (UK) before WRG group
The FCC Group acquired 100% of the stake in the FCC Environment (UK) group in 2006 for an
investment cost of 1,693,532 thousand euros in 2006.
From the moment of its acquisition, the Group considers the FCC Environment (UK) subgroup as
a single cash generating unit (CGU), with the goodwill recorded in the balance sheet associated
exclusively with such CGU.
It should be noted that in 2012 there was an impairment of goodwill amounting to 190,229 thou-
sand euros as a result of the decrease in cash flows of its activities due to changes in its calendar
and amount. On the other hand, in 2013 there was an additional impairment of goodwill amount-
ing to 236,345 thousand euros, mainly as a result of the decrease in the volume of tons treated
in landfills. Finally, in 2014 there was an impairment of the items of property, plant and equipment
affected by landfill activity amounting to 649,681 thousand euros.
After the writedowns made and the changes derived from the profits/(losses) and equity move-
ments of FCC Environment (UK), the consolidated book value at 31 December 2020 amounts to
697,725 thousand euros (557,040 thousand euros at 31 December 2019).
After the restructuring of the activity carried out in previous years, FCC Environment (UK) has
reached a path of continued profitability, earning steady returns both in 2019 and in 2020.
It should be noted that during the 2020 financial year, as a consequence of the internal reorgan-
isation and the creation of the new subsidiary Green Recovery Projects Limited, prior to the sale
of 49% (Note 5), various companies were transferred to the latter, mainly the companies that
managed the Allington and Eastcroft incinerators, and so the composition of the CGU has varied
compared to the previous year.
The cash flows considered in the impairment test take into account the current status of the CGU,
making the best estimates of future flows based on the mix of activities expected in the future. The
relative weight of the different activities will vary as other waste treatment alternatives are promot-
ed, mainly recycling and recovery, which is currently being carried out by the subgroup, offsetting
the progressive abandonment of landfill activity.
The main hypotheses used contemplate an increase in income in a range of approximately 5-15%
during the 2021-2024 period, highlighting a growth of 12.3% in 2021 in expectation of a recovery
of pre-Covid 19 volumes, and 15.2% in 2024, the latter mainly as a consequence of the start of
the contract for the Lostock energy recovery plant, currently under construction, which is now
fully operational. The gross operating margin has evolved from 17.4% in 2021 to around 12.5% in
the last three years, considering more conservative market hypotheses in recent periods, as they
are more difficult to predict. The pre-tax discount rate used was 7.02% with a 10-year time line
used from estimates given the structural characteristics of the business and the long useful life
of the assets. A growth rate of 1% has been considered in the calculation of perpetual income,
which represents 63.5% of the total recoverable value. The result of the test renders an excess of
the recoverable value over the book value of the cash generating unit of 428,722 thousand euros,
supporting an increase of 1,200 basis points without incurring impairment. A 10% decrease in
the current value of cash flows would reduce the excess to 373,065 thousand euros. If a zero
growth rate had been considered, the aforementioned excess would have decreased to 378,332
thousand euros.
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236
Pursuant to Note 3.e) of these financial statements, the general criterion is not to consider per-
petual income growth rates, but in the case of the FCC Environment (UK) subgroup, given the
transformation in the mix of activities, it was considered that a growth rate of 1% more faithfully
reflects the reality of the business within the framework of the change that is taking place in the
United Kingdom in waste treatment activity, with a drastic drop in waste management in landfills
and an increase in alternative waste treatment activities that are expected to be sustained over
an extended period of time.
Also, given the slack time shown in the impairment test, and given that the main assets and liabil-
ities of the business are referenced in the same currency (pound sterling), no impairment should
arise as a result of the potential UK exit process from the European Union, Brexit (Note 30.h).
c) Other intangible assets
The changes in this heading of the consolidated balance sheet in 2020 and 2019 were as follows:
Other
intangible
assets
Accumulated
Depreciation
Impairment
Net value
Balance at 31/12/18
357,148
(283,659)
(14,403)
59,086
Additions or allocations
Disposals, derecognitions or
reductions
Translation differences
Change in scope, transfers and
other changes
20,970
(19,677)
459
876
(18,173)
19,440
(409)
(2,305)
(2)
2,522
–
(2,520)
Balance at 31/12/19
359,776
(285,106)
(14,403)
Additions or allocations
Disposals, derecognitions or
reductions
Translation differences
Change in scope, transfers and
other changes
12,363
(13,188)
(1,767)
2,876
(20,021)
10,544
1,085
1,280
(756)
–
1
–
2,795
2,285
50
(3,949)
60,267
(8,414)
(2,644)
(681)
4,156
Balance at 31/12/20
360,060
(292,218)
(15,158)
52,684
This heading mainly includes:
– amounts paid to public or private entities as a fee for the award of contracts that do not have
the classification of concessions, within the scope of IFRIC12 “Service concession arrange-
ments”, mainly from the Environmental Services area,
–
the amounts recorded in the initial recognition of certain business combinations representative
of concepts such as customer portfolios and contracts in force at the time of purchase,
– quarry mining rights for the Cement area and
– software applications.
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8. Property, plant and equipment
The net detail of property, plant and equipment at 31 December 2020 and 2019 is as follows:
Cost
Accumulated
amortisation
Impairment
Net
value
Cost
Accumulated
amortisation
Impairment
Net
value
2020
2019
Land and buildings
1,616,955
(534,345)
(65,762)
1,016,848
Land and buildings
1,607,091
(483,755)
(66,835)
1,056,501
Land and natural resources
683,055
(163,737)
Buildings for own use
933,900
(370,608)
(50,816)
(14,946)
468,502
548,346
Land and natural resources
677,323
(154,057)
Buildings for own use
929,768
(329,698)
(50,552)
(16,283)
472,714
583,787
Plant and other items of
property, plant and equipment
7,795,156
(5,396,157)
(605,648)
1,793,351
Plant and other items of
property, plant and equipment
7,804,524
(5,358,461)
(638,672)
1,807,391
Plant
4,721,372
(3,241,318)
(568,532)
911,522
Plant
4,844,195
(3,251,438)
(621,335)
971,422
Machinery and vehicles
2,215,724
(1,628,062)
(33,720)
553,942
Machinery and vehicles
2,176,843
(1,609,165)
(14,276)
553,402
In-progress tangible assets
and advances
109,411
–
–
109,411
In-progress tangible assets and
advances
87,257
–
–
87,257
Other PP&E
748,649
(526,777)
(3,396)
218,476
Other PP&E
696,229
(497,858)
(3,061)
195,310
9,412,111
(5,930,502)
(671,410)
2,810,199
9,411,615
(5,842,216)
(705,507)
2,863,892
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Los movimientos de las diversas partidas del inmovilizado habidas en los ejercicios 2020 y 2019
han sido los siguientes:
238
Land and
natural
resources
Buildings for
own use
Land and
buildings
Technical
Facilities
Advances
and fixed and
non-current
assets under
construction
Machinery
and
vehicles
Plant and
other items of
property, plant
and equipment
Other PP&E
Accumulated
Depreciation
Impairment
646,878
692,369
1,339,247
4,554,048
2,082,609
63,949
685,927
7,386,533
(5,637,721)
(664,041)
Balance at 31/12/18
Additions or allocations
Disposals, derecognitions or reductions
3,735
(913)
27,860
(18,779)
First application IFRS16 (Note 2,a)
21,139
346,929
Translation differences
Change in scope, transfers and other
changes
1,716
4,768
10,646
(129,257)
(124,489)
31,595
(19,692)
368,068
12,362
19,848
(18,976)
6,421
130,209
152,645
105,078
69,966
(135,687)
48,619
18,873
57,351
(78)
10,630
(746)
(56,464)
59,406
(82,789)
–
138
33,547
254,298
(342,435)
(10,982)
(237,530)
240,916
65,670
148,474
187,079
–
(94,054)
(8,922)
14
–
(29,049)
(1,449)
Balance at 31/12/19
Additions or allocations
Disposals, derecognitions or reductions
Translation differences
Change in scope, transfers and other
changes
677,323
929,768
1,607,091
4,844,195
2,176,843
87,257
696,229
7,804,524
(5,842,216)
(705,507)
10,161
(868)
(2,730)
(831)
33,457
(23,020)
(9,242)
2,937
43,618
(23,888)
(11,972)
2,106
37,974
(26,960)
(171,391)
37,554
166,278
130,049
(131,939)
(33,076)
(32,022)
(2,258)
36,564
(72,561)
68,607
(35,099)
(3,628)
22,540
402,908
(330,085)
(227,074)
(209,299)
24,097
102,289
123,588
15,922
(7,170)
12,377
32,679
(3,789)
Balance at 31/12/20
683,055
933,900
1,616,955
4,721,372
2,215,724
109,411
748,649
7,795,156
(5,930,502)
(671,410)
As significant “Inputs” for the year 2020, it is worth highlighting the investments made for the
development of the Environmental Services activity contracts, mainly in different companies that
carry out their activity in the United States for a total amount of 110,602 thousand euros, in FCC
Medioambiente, SA (Spain) for the amount of 76,877 thousand euros (86,459 thousand euros in
the 2019 financial year), in the FCC Environment Group (UK) for the amount of 28,932 thousand
euros (35,821 thousand euros in the 2019 financial year) and in FCC Environment CEE (Central
Europe) for an amount of 40,249 thousand euros (38,820 thousand euros in the 2019 financial
year), as well as those carried out in Integral Water Management activity, mainly in the company
Servicios Hídricos Agricultura y Ciudad, SLU (Spain) for the amount of 55,984 euros and in Sm-
Vak (Czech Republic) for the amount of 25,266 thousand euros (25,940 thousand euros in the
2019 financial year).
“Disposals, derecognitions or reductions” include disposals and derecognition of inventory cor-
responding to assets that, in general, are almost fully amortised due to having exhausted their
useful life.
The inputs and derecognitions that have led to a cash outflow or entry are recorded in the ac-
companying statement of cash flows as “Payments due to investments” and “Collection due to
divestments” of “Property, plant and equipment, intangible assets and real estate investments”,
respectively.
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No interest was capitalised in 2020 and 2019 and the total interest capitalised at source as of 31
December 2020 amounts to 29,076 thousand euros (30,363 thousand euros in 2019).
Restrictions on title to assets
As at 31 December 2020, in property, plant and equipment, 11,565 thousand euros (9,322 thou-
sand euros as at 31 December 2019) has been charged as income from capital grants.
The Group companies take out the insurance policies they consider necessary to cover the possi-
ble risks to which their property, plant and equipment is subject. At year-end, the Parent Company
estimates that there is no hedging deficit related to said risks.
The gross amount of fully depreciated property, plant and equipment used in production due to
being in a good state of use totals 3,145,430 thousand euros at 31 December 2020 (3,123,585
thousand euros at 31 December 2019).
The property, plant and equipment net of depreciation on the attached consolidated balance
sheet located outside the Spanish territory amount to 1,383,491 thousand euros at 31 December
2020 (1,345,898 thousand euros at 31 December 2019).
Of the total property, plant and equipment on the consolidated balance sheet, at 31 December
2020, 804,584 thousand euros (934,164 thousand euros at 31 December 2019) are subject to
ownership restrictions according to the following detail:
Cost
Accumulated
amortisation
Impairment
Net value
2020
Buildings, plants and equipment
1,443,430
Other property, plant and
equipment
163,104
(631,338)
(106,795)
(3,762)
_
808,330
56,309
1,606,534
(738,133)
(3,762)
864,639
2019
Buildings, plants and equipment
1,437,128
Other property, plant and
equipment
174,337
(573,345)
(103,956)
1,611,465
(677,301)
_
_
_
863,783
70,381
934,164
The restrictions on ownership of these assets originate from the lease agreements that are ex-
plained in note 10 of this Report, as well as for those assets related to the exploitation of certain
concession contracts to which IFRIC 12 does not apply. “Concession agreements” (note 3.a).
Purchase commitments
In carrying out their activities, the Group companies have formalised acquisition commitments in
property, plant and equipment that, as at 31 December 2020, amount to 4,873 thousand euros
(18,963 thousand euros at 31 December 2019).
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9. Real estate investments
10. Leases
240
During the financial year 2020, the company FCC Inmobilien Holding GmbH sold an office build-
ing and a site in Germany for 3,950 thousand euros, the net book value of which was 2,582
thousand euros at the time of the sale, generating capital gains of 1,368 thousand euros, booked
under “Impairment and results from disposals of fixed assets” (Note 27).
The inputs and derecognitions leading to cash movements are recorded in the accompanying
statement of cash flows as “Payments due to investments” and “Collections due to divestments”
of “Property, plant and equipment, intangible assets and real estate investments”, respectively.
At the end of the 2020 and 2019 business years, the Group had no firm commitments to acquire
or construct any real estate investments.
The Group applied IFRS 16 “Leases” for the first time on 1 January 2019, with the option of ap-
plying it with modified retroactive character, that is, with cumulative impact of the first application
of the standard as an adjustment to the initial balance charged to reserves as at 1 January 2019.
In its position as lessee, the Group has signed lease contracts for different kinds of underlying
assets, mainly machinery in the Construction activity and technical facilities and constructions for
its own use in all the activities that the Group develops.
Contracts in previous years included those pertaining to the Group’s Central Services buildings,
the lease contract for the office block in Las Tablas (Madrid), valid from 23 November 2012 and
for 18 years, extendable at the option of the FCC Group in two periods of five years each, with an
annual income that can be updated annually according to the CPI index.
The contract signed in 2011 for the buildings located in Federico Salmón 13, Madrid and Balmes
36, Barcelona, for a minimum rental period of 30 years, extendable at the option of the Group in
two periods of 5 years, each one with an annual rent that can be updated annually according to
the CPI, with a purchase option in favour of Fomento de Construcciones y Contratas, SA, only
exercisable at the end of the rental period for the fair value or the amount of the sale updated by
the CPI, if this is higher.
In general, the leases signed by the Group do not include variable payments, there are only claus-
es for updating the rent in certain contracts, mainly based on inflation. In some cases, the afore-
mentioned contracts present restrictions of use, the most common being those that limit the use
of the underlying assets to geographical areas or their use as an office or premises for productive
use. Lease contracts do not include significant residual value guarantee clauses.
The Group determines the duration of the contracts by estimating the period during which the
entity estimates that it will continue to use the underlying asset in accordance with its particular
circumstances to cover any extensions that are reasonably expected.
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The carrying amount of right-of-use assets amounted to 480,544 thousand euros at 31 Decem-
ber 2020 (496,774 thousand euros at 31 December 2019). Below is a detail of the book value,
the additions and amortisations during the year by classes of underlying asset:
tached statement of consolidated cash flows. The details for maturities of non-current liabilities
for leases are shown below:
Cost
Accumulated
amortisation Net value Additions
Amortisation
charge
2020
Land and buildings
414,088
(72,571)
341,517
22,501
(33,694)
Land and natural resources
30,263
(5,304)
24,959
3,632
Buildings for own use
383,825
(67,267)
316,558
18,869
(2,995)
(30,699)
Plant and other items of
property, plant and equipment
393,055
(254,028)
139,027
56,694
(33,224)
Plant
5,794
(2,154)
3,640
80
Machinery and vehicles
330,174
(214,389)
115,785
48,478
Other PP&E
57,087
(37,485)
19,602
8,136
(1,180)
(23,240)
(8,804)
807,143
(326,599)
480,544
79,195
(66,918)
The amount of lease liabilities recognised amounts to 445,086 thousand euros as of 31 De-
cember 2020 (484,376 thousand euros as of 31 December 2019), of which 68,599 thousand
euros (78,985 thousand euros as of 31 December 2019) are classified as current in the attached
consolidated balance sheet, due to their maturity within the next twelve months (Note 20). Lease
liabilities generated an interest charge of 12,645 thousand euros at 31 December 2020 (13,016
thousand euros at 31 December 2019). Lease payments during the year stood at 96,658 thou-
sand euros at 31 December 2020 (89,130 thousand euros at 31 December 2019), posted under
“Proceeds and (payments) from financial liability instruments” and “Interest payments” in the at-
2022
2023
2024
2025
2026 and
beyond
Total
2020
Liabilities for non-current
leases
45,955
25,580
28,470
24,639
251,843
376,487
Certain contracts are excluded from the application of the aforementioned IFRS 16, mainly either
because they are low value assets or because their duration is less than twelve months (note
3.f) and is recorded as an expense under the heading “Other operating income/(losses)” in the
accompanying consolidated profit and loss statement, with the amount during the year being as
follows:
Low value assets
Leases with term less than 12 months
2020
2,115
73,677
75,792
In the lessor position, the Group recognises operating income amounting to 3,081 thousand eu-
ros (9,212 thousand euros at 31 December 2019). The decrease between the two years is mainly
due to the decrease of 8,636 thousand euros in the income obtained from rental of machinery by
FCC Construcción América in Central America.
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11. Service concession arrangements
Intangible
assets
(Note 7)
Financial
assets
(Note 14)
Joint
concessionary
businesses
Associated
concessionary
companies
Total
investment
242
This Note presents an overview of all the Group’s investments in concession businesses, which
are recognised in various headings under “Assets” in the accompanying consolidated balance
sheet.
2020
Water services
1,710,822
223,303
The following table presents the total amount of the assets held under service concession ar-
rangements by the Group companies, which are recognised under “Intangible assets”, “Non-cur-
rent financial assets”, “Other current financial assets” and “Investments accounted for using the
equity method” (for both joint ventures and associates) in the accompanying consolidated bal-
ance sheet at 31 December 2020 and 2019.
Motorways and
tunnels
Environment and
Others
TOTAL
Amortisation
Impairment
2019
378,515
0
27,454
8,204
46,343
2,007,922
0
386,719
459,711
227,216
43,222
28,801
758,950
2,549,048
450,519
78,880
75,144
3,153,591
(1,115,658)
(55,230)
–
–
–
–
–
–
(1,115,658)
(55,230)
1,378,160
450,519
78,880
75,144
1,982,703
Water services
1,551,666
189,302
1,717,215
126,651
29,157
7,291
54,228
1,824,353
–
1,851,157
Motorways and
tunnels
Environment and
Others
TOTAL
Amortisation
Impairment
411,748
282,292
66,449
76,062
836,551
3,680,629
598,245
102,897
130,290
4,512,061
(1,249,755)
(56,254)
–
–
–
–
–
–
(1,249,755)
(56,254)
2,374,620
598,245
102,897
130,290
3,206,052
The table above shows that in the year 2020 the decrease in the columns of “Intangible assets” of
1,016,606 thousand euros, in “Financial assets” of 131,017 thousand euros and in “Associated
companies concessionaire” of 71,334 thousand euros can be largely explained by the transfer to
assets held for sale by the subgroup Cedinsa, Concessió Estacions Aeroport L9, SA and Urbs
Iudex et Causidicus, SA. (note 4). Conversely, “Intangible assets” increased by 23,984 thousand
euros and “Financial assets” by 55,534 thousand euros, attributable to Aquos el Realito, SA de
CV, the operator of a water treatment plant in San Luis de Potosí, now fully consolidated (Note 5).
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Below are details of the main concessions included in the previous categories with their main
characteristics:
Water services
774.358
223.303
Net book value as at 31 December 2020
Intangible assets
Financial assets
Granting entity
Collection mechanism
243
Jerez de la Frontera (Cádiz - Spain)
Jeddah desalination plant (Saudi Arabia)
Caltanissetta (Italy)
Santander (Cantabria, Spain)
Lleida (Spain)
Adeje (Tenerife, Spain)
Badajoz (Spain)
Acueducto Realito (Mexico)
Oviedo (Asturias, Spain)
Mostaganem Desalination Plant (Algeria)
Guaymas Desalination Plant (Mexico)
Other contracts
Motorways and tunnels
Coatzacoalcos submerged tunnel (Mexico)
Conquense motorway (Spain)
Environment and others
Buckinghamshire plant (United Kingdom)
Loeches Plant (Alcalá de Henares, Spain)
Campello Plant (Alicante, Spain)
Edinburgh Plant (United Kingdom)
Granada plant (Granada, Spain)
Houston recycling plant (United States)
Gipuzkoa II plant
RE3 plant (United Kingdom)
Manises Plant (Valencia, Spain)
Wrexham I plant (United Kingdom)
Wrexham II plant (United Kingdom)
Other contracts
FCC Group Total
70,483
46,432
43,596
35,514
34,828
33,684
25,241
23,984
21,143
–
–
439,453
252,851
197,735
55,116
350,951
140,283
78,336
35,147
22,314
22,167
20,086
–
–
–
–
–
32,618
1,378,160
142,275
19,083
6,411
–
–
227,216
8,830
–
–
–
–
–
–
–
–
–
City Council of Jerez de la Frontera.
User based on consumption
General Authority of Civil Aviation (Saudi Arabia)
User based on consumption
Consorzio Ambito Territoriale Ottimale
Santander City Council
Lleida City Council
Adeje City Council
Badajoz City Council
User based on consumption
User based on consumption
User based on consumption
User based on consumption
User based on consumption
55,534
State Water Commission (Mexico)
Mixed model
–
Oviedo City Council
Algerian Energie Company S.p.a.
State Water Commission
User based on consumption
Cubic meters with guaranteed minimum
Cubic meters with guaranteed minimum
Government of the State of Veracruz
Ministry for Economic Development
Direct toll paid by the user
Shadow toll
Buckinghamshire County Council
Commonwealth of the East
Fixed amount plus variable amount per ton
According to tons treated
Plan Zonal XV Consortium of the Community of Valencia
According to tons treated
90,969
City of Edinburgh and Midlothian Council
Variable per ton with guaranteed minimum
Provincial council of Granada
City of Houston
Gipuzkoa Waste Consortium
According to tons treated
Fixed amount plus variable amount per ton
Variable per ton with guaranteed minimum
Councils of Reading, Bracknell Forest and Workingham
Fixed amount plus variable amount per ton
Metropolitan Entity for Waste Treatment
Fixed amount plus variable amount per ton
Wrexham County Borough Council
Wrexham County Borough Council
Fixed amount plus variable amount per ton
Fixed amount plus variable amount per ton
–
–
29,376
28,947
21,624
20,920
17,571
8,979
450,519
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Net book value as at 31 December 2019
Intangible assets
Financial assets
Granting entity
Collection mechanism
Water services
Jerez de la Frontera (Cádiz - Spain)
Caltanissetta (Italy)
Adeje (Tenerife, Spain)
Santander (Cantabria, Spain)
Lleida (Spain)
Badajoz (Spain)
Oviedo (Asturias, Spain)
Vigo (Pontevedra, Spain)
Mostaganem Desalination Plant (Algeria)
Guaymas Desalination Plant (Mexico)
Other contracts
Motorways and tunnels
Cedinsa Eix Transversal (Spain)
Cedinsa C17 (Spain)
Cedinsa Eix Llobregat (Spain)
Submerged tunnel of Coatzacoalcos (Mexico)
Cedinsa C35 (Spain)
Conquense motorway (Spain)
Other
Buckinghamshire plant (United Kingdom)
Campello Plant (Alicante, Spain)
Loeches Plant (Alcalá de Henares, Spain)
Edinburgh Plant (United Kingdom)
Houston recycling plant (United States)
Granada plant (Granada, Spain)
RE3 plant (United Kingdom)
Gipuzkoa II plant
Manises Plant (Valencia, Spain)
Wrexham I plant (United Kingdom)
Wrexham II plant (United Kingdom)
Other contracts
FCC Group Total
713,116
74,569
42,003
40,157
38,979
36,876
26,304
21,966
7,567
–
–
424,695
1,344,346
456,084
283,246
243,446
230,731
68,028
62,811
317,158
154,147
29,762
26,110
24,589
24,113
23,294
–
–
–
–
–
35,143
2,374,620
189,302
–
–
–
–
–
–
–
–
176,392
12,910
–
126,651
126,651
–
–
–
–
–
282,292
9,359
–
–
140,812
–
–
31,660
30,653
22,870
22,735
18,981
5,222
598,245
City Council of Jerez de la Frontera
Consorzio Ambito Territoriale Ottimale
Adeje City Council
Santander City Council
Lleida City Council
Badajoz City Council
Oviedo City Council
Vigo City Council
Algerian Energie Company S.p.a.
State Water Commission
Generalitat de Catalunya
Generalitat de Catalunya
Generalitat de Catalunya
Government of the State of Veracruz
Generalitat de Catalunya
Ministry for Economic Development
User based on consumption
User based on consumption
User based on consumption
User based on consumption
User based on consumption
User based on consumption
User based on consumption
User based on consumption
Cubic meters with guaranteed minimum
Cubic meters with guaranteed minimum
Shadow toll with guaranteed minimum
Shadow toll
Shadow toll
Direct toll paid by the user
Shadow toll
Shadow toll
Buckinghamshire County Council
Plan Zonal XV Consortium of the Community of Valencia
Commonwealth of the East
City of Edinburgh and Midlothian Council
City of Houston
Provincial council of Granada
Councils of Reading, Bracknell Forest and Workingham
Gipuzkoa Waste Consortium
Metropolitan Entity for Waste Treatment
Wrexham County Borough Council
Wrexham County Borough Council
Fixed amount plus variable amount per ton
According to tons treated
According to tons treated
Variable per ton with guaranteed minimum
Fixed amount plus variable amount per ton
According to tons treated
Fixed amount plus variable amount per ton
Variable per ton with guaranteed minimum
Fixed amount plus variable amount per ton
Fixed amount plus variable amount per ton
Fixed amount plus variable amount per ton
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245
The water services business is characterised by having a very high number of contracts, and
the most significant are listed in the preceding table. The contracts primarily cover integral water
cycles from capture, transport, treatment and distribution to urban centres through the use of dis-
tribution networks and a complex water treatment facilities to make the water potable, including
the capture and purification of wastewater. Covers the construction and maintenance of water
and sewerage networks and desalinisation, treatment and purification plants. Generally, billing
is carried out based on the use of the service by the subscribers, so that, in most cases, cash
flows depend on the consumption of water that, in general, has shown to be constant over time.
However, the contracts normally include regular rate review clauses to ensure the recoverability
of the investment made by the concessionaire. These clauses establish the future rates based
on consumption in previous periods and other variables such as inflation. Concession companies
build or receive the right to use distribution and sewerage networks in order to carry out their
businesses, in addition to the complex facilities necessary to treat and purify drinking water. The
concession terms for these types of infrastructures cover different periods up to a maximum of 75
years and then the facilities revert to the granting entity at the end of the concession without any
further compensation being received.
Most proceeds received from practically all of the contracts that are fully consolidated depends
on the use of the service, therefore meaning that the amounts are variable, demand risk is borne
by the concession company and the contracts are recognised as intangible assets. However, in
exceptional cases, mainly in the case of desalination plants, the charge is received based on the
cubic meters actually desalted, guaranteeing the grantor a minimum insured level regardless of
volume, so these guaranteed amounts are classified as financial assets as they hedge the fair
value of construction services.
The main activity of the concessions belonging to the motorway and tunnel activity include the
management, promotion, development and exploitation of land transport infrastructure, mainly
motorways and toll tunnels. It includes both the construction and the subsequent conservation
and maintenance of the aforementioned infrastructures over a long concession period that can
range from 25 to 75 years. Billing is usually based on traffic intensity, both by charging tolls to
vehicles directly, and by shadow toll, so cash flows are variable in relation to the aforementioned
traffic intensity, generally observing an increasing trend as the concession period progresses,
which is why, when the concessionaire bears the demand risk, they are recorded as intangible
assets. The contracts generally include both the construction or improvement of the infrastruc-
ture for which the concessionaire receives a right of use, as well as the provision of maintenance
services, reversing the infrastructure at the end of the useful life to the grantor, generally without
receiving compensation. In certain cases there are offsetting mechanisms, such as an extension
of the concession period or an increase in the toll price, so as to ensure a minimum return to the
concessionaire.
“Miscellaneous” activity mainly includes contracts related to the construction, operation and
maintenance of waste treatment facilities, in Spain, the United Kingdom and the United States.
The contracts incorporate price revision clauses based on different variables, such as inflation,
energy costs or salary costs. Contracts were analysed to classify concessions as intangible or
financial assets to determine which part of the contract bears the demand risk. Those contracts
in which the billing is determined solely on the basis of the fixed charge and a variable amount
depending on the tons treated, given that the latter is residual and the cost of construction ser-
vices is substantially offset by the fixed charge, the concession as a whole has been considered
as a financial asset, except in the case of the Buckinghamshire and Edinburgh plants (both in the
United Kingdom), in which the intangible component is significant and is therefore recorded as
mixed models.
Likewise, it should be noted that in accordance with the concession contracts, the concession-
aires in which the Group is an investee are obliged to acquire or build items of property, plant and
equipment for the amount of 91,292 thousand euros as of 31 December 2020 (137,216 thou-
sand euros as of 31 December 2019).
Finally, in 2020 the recoverable value of the main concession assets was reappraised. As a result
of the analysis carried out, there was no need to record impairment since a substantial part of
the concession assets are related to the water and environment businesses, activities that in
general have been considered “essential” in the different jurisdictions, proving particularly resilient
to the impact of the pandemic. Additionally, a large portion of the portfolio of concession assets
corresponds to contracts not subject to demand risk, which significantly reduces the risk of im-
pairment.
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246
12. Investments accounted
for using the equity method
This heading includes the value of investments in companies accounted for under the equity
method, as well as non-current loans granted to them, as indicated in Note 2.b), which applies to
both joint ventures and associates, the breakdown of which is as follows:
Joint ventures
Investment value
Loans
Associates
Investment value
Loans
2020
181,937
40,842
141,095
540,849
382,126
158,723
722,786
2019
185,432
38,141
147,291
556,092
390,841
165,251
741,524
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a) Joint ventures
The breakdown of this heading by company is presented in Annex II of these financial statements,
which lists the joint ventures.
The transactions for 2020 and 2019 by items are as follows:
Balance at
Results for the
year
31.12.2019
(Note 27.g)
Distributed
Dividends
Changes in the fair value
of financial instruments
allocated to reserves
Acquisitions
Conversion
differences
and other
movements
Orasqualia for the Development of the Waste Treatment Plant
S.A.E.
1 1,735
1,143
Sociedad Concesionaria Tranvía de Murcia, S.A.
Mercia Waste Management Ltd.
Zabalgarbi, S.A.
Atlas Gestión Medioambiental, S.A.
Empresa Municipal de Aguas de Benalmádena, S.A.
Ibisan Sociedad Concesionaria, S.A.
Constructora Nuevo Necaxa Tihuatlán S.A. de C.V.
OHL CO Canada & FCC Canada Ltd. Individual
North Tunnels Canada Inc.
FM Green Power Investments, S.L.
Ecoparc del Besós, S.A.
Rest
Total joint ventures
–
–
(2,602)
(3,000)
(2,876)
(346)
–
–
–
–
1,323
4,307
2,637
751
273
544
(1,565)
(32)
(12)
22,329
(26,410)
2,782
3,689
(1,834)
(2,464)
185,432
38,169
(39,532)
40,745
10,682
17,234
11,933
5,700
7,291
–
–
6,978
17,074
6,638
49,422
–
–
–
(811)
–
(89)
369
–
–
–
3,022
217
(376)
2,332
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(899)
–
(605)
–
–
–
–
5,974
(2,317)
120
447
–
(990)
1,730
247
Change
in credits
granted
Balance at
31.12.2020
(2)
11,977
1,154
–
–
–
(778)
–
(4,409)
2,349
(7,086)
–
–
2,578
(6,194)
43,222
11,782
16,060
9,808
4,760
8,204
–
–
–
16,462
–
51,859
181,937
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Balance at
31.12.2018
Results for
the year
(Note 27.g)
Distributed
Dividends
Changes in the fair value
of financial instruments
allocated to reserves
Acquisitions
Conversion
differences
and other
movements
Orasqualia for the Development of the Waste Treatment
Plant S.A.E.
Sociedad Concesionaria Tranvía de Murcia, S.A.
Mercia Waste Management Ltd.
Zabalgarbi, S.A.
Atlas Gestión Medioambiental, S.A.
Empresa Municipal de Aguas de Benalmádena, S.A.
Ibisan Sociedad Concesionaria, S.A.
Constructora Nuevo Necaxa Tihuatlán S.A. de C.V.
OHL CO Canada & FCC Canada Ltd. Individual
North Tunnels Canada Inc.
FM Green Power Investments, S.L.
Rest
Total joint ventures
9,631
698
38,467
17,881
16,298
11,935
6,523
8,123
–
–
6,526
7,228
50,877
173,489
1,184
3,835
3,051
1,221
435
1,478
21
969
2
15,050
3,871
31,815
–
–
(12,063)
(3,000)
(1,224)
(400)
(2,550)
–
–
–
–
(2,825)
(22,062)
–
–
–
885
–
(84)
240
–
–
–
(5,203)
682
(3,480)
–
–
–
–
–
–
–
–
–
–
–
–
–
1,401
–
1,029
–
1
(1)
–
(2,106)
(5,015)
(115)
(1)
1,793
(3,014)
Change
in credits
granted
Balance at
31.12.2019
5
11,735
1,094
–
–
–
(773)
–
2,085
4,046
565
–
1,662
8,684
40,745
10,682
17,234
11,933
5,700
7,291
–
–
6,978
17,074
56,060
185,432
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Below are the main figures from the financial statements of joint ventures in proportion to the
shareholding as at 31 December 2020 and 2019.
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Results
Revenue
Operating profit/(loss)
Profit/(loss) before tax
Profit attributable to the Parent Company
2020
2019
783,948
223,706
669,463
311,268
819,733
239,963
725,384
334,989
247,455
289,253
44,069
44,078
38,169
62,742
36,753
31,815
The main activities carried out by joint ventures are the exploitation of concessions, such as
motorways, concessions related to the integral water cycle and urban sanitation, tunnels and
passenger transport activities.
In relation to joint ventures with third parties outside the FCC Group, it should be noted that guar-
antees have been provided for an amount of 19,885 thousand euros (8,458 thousand euros in
2019), mostly for public bodies and private customers to guarantee the successful execution of
the contracts of the different activities of the Group. There are no relevant commitments or other
significant contingent liabilities in relation to joint ventures.
In general, joint ventures that the Group consolidates using the equity method take the legal form
of public limited or limited companies, and therefore, being joint ventures, the distribution of funds
to their respective parent companies requires an agreement with the other partners who hold joint
control in accordance with the mechanisms established by their corporate agreements.
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b) Associates
The breakdown of this heading by companies is presented in Annex III of these financial accounts,
which lists the associates.
The transactions for 2020 and 2019 by items are as follows:
Grupo Realia Business
Concessió Estacions Aeroport L9, S.A.
Metro de Lima Línea 2, S.A.
Aquos El Realito, S.A. de C.V.
Suministro de Agua de Querétaro, S.A. de C.V.
Aguas del Puerto Empresa Municipal, S.A.
Lázaro Echevarría, S.A.
Tirme Group
A.S.A. Group
Hormigones y Áridos del Pirineo Aragonés, S.A.
Aigües del Segarra Garrigues, S.A.
N6 (Construction) Limited
Giant Cement Holding
Constructora Terminal Valle de México
Aigües del Vendrell
FCC Group PFI Holdings
Urbs Iudex et Causidicus, S.A.
Rest
Total associates
Balance at
31.12.2019
Results for
the year
(Note 27.g)
Distributed
Dividends
Changes in the fair value
of financial instruments
allocated to reserves
Acquisitions
Conversion
differences
and other
movements
276,540
63,127
25,704
14,483
10,376
14,548
8,041
7,423
6,264
5,886
6,905
1,035
13,661
8,915
5,302
34,326
–
53,556
556,092
2,872
12,789
2,882
(835)
1,349
(385)
164
2,486
1,293
54
277
–
(3,737)
474
19
(1,339)
2,217
2,765
–
(4,844)
–
–
(1,171)
(164)
(196)
(3,127)
(1,067)
–
–
–
–
(9,146)
–
–
–
(808)
23,345
(20,523)
262
(4,140)
–
–
–
365
56
–
16
–
–
–
1,124
–
(13)
–
2,110
20
(200)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
14,834
–
2
(1,570)
(9,927)
(2,371)
(6,664)
(1,419)
–
–
–
(197)
–
–
–
(1,075)
178
–
(525)
(4,327)
1,724
14,836
(26,173)
Change
in credits
granted
Balance at
31.12.2020
–
278,104
(57,005)
–
–
26,215
(6,984)
–
(1,135)
–
–
–
–
–
–
–
–
(1)
–
9,135
13,229
8,065
6,782
6,309
5,940
7,182
1,035
9,973
421
5,307
35,481
82,777
–
23,116
(6,528)
–
80,375
540,849
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Grupo Realia Business
Concessió Estacions Aeroport L9, S.A.
Cleon, S.A.
Shariket Tahlya Miyah Mostaganem SPA (note 4)
Cedinsa Group (note 4)
Metro de Lima Línea 2, S,A,
Aquos El Realito, S.A. de C.V.
Suministro de Agua de Querétaro, S.A. de C.V.
Aguas del Puerto Empresa Municipal, S.A.
Shariket Miyeh Ras Djinet SPA (note 4)
Lázaro Echevarría, S.A.
Tirme Group
A.S.A. Group
Hormigones y Áridos del Pirineo Aragonés, S.A.
Aigües del Segarra Garrigues, S.A.
N6 (Construction) Limited
Giant Cement Holding
Constructora Terminal Valle de México
Aigües del Vendrell
FCC Group PFI Holdings
Rest
Total associates
Distributed
Dividends
hanges in the fair value
of financial instruments
allocated to reserves
Acquisitions
Conversion
differences
and other
movements
Change
in credits
granted
Balance at
31.12.2018
272,493
66,793
Results for
the year
(Note 27.g)
8,058
12,449
–
35,222
31,625
23,297
13,198
9,991
14,637
12,704
8,449
6,630
6,422
5,980
6,587
1,034
24,212
3,505
–
–
46,782
589,561
–
–
7,755
1,966
487
1,316
(201)
–
(341)
4,123
1,989
(48)
317
–
(10,983)
13,126
13
(298)
7,403
–
(5,226)
–
–
(1,504)
(10,889)
–
–
(6,460)
(7,249)
–
–
(1,505)
–
–
–
(3,326)
(1,990)
(45)
–
–
–
(7,751)
–
–
(1,439)
–
–
–
462
–
(68)
–
(41)
–
–
–
(72)
–
(2)
–
(1,294)
(20,657)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
492
3,471
771
4,734
(2,507)
–
–
(35,222)
(25,671)
441
404
574
–
(12,704)
1
(4)
(116)
(1)
1
1
504
35
–
6,624
2,162
–
–
–
–
–
–
394
–
(350)
–
–
–
–
–
–
–
–
–
4,799
24,529
(829)
In the financial year 2020, “Translation differences and other movements” shows a decrease of
9,927 thousand euros and 4,327 thousand euros due to the transfer to non-current assets held
for the sale of the companies Concessió Estacions Aeroport L9, SA and Urbs Iudex et Causidi-
cus, SA, respectively (Note 4) and a decrease of 6,664 thousand euros as a consequence of the
takeover of Aquos El Realito, SA de CV. (note 5). Likewise, “Variation of loans granted” shows a
decrease of 57,005 thousand euros in Concessió Estacions Aeroport L9, SA due to the afore-
mentioned transfer to non-current assets held for sale (Note 4).
47,131
(27,742)
(65,478)
28,543
556,092
251
Balance at
31.12.2019
276,540
63,127
–
–
–
25,704
14,483
10,376
14,548
–
8,041
7,423
6,264
5,886
6,905
1,035
13,661
8,915
5,302
34,326
53,556
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December 2020 and 2019 by relevance and once standardised to comply with the accounting
policies applied by the Group, to which the equity method has been applied:
In 2019, “Conversion differences and other movements” shows a decrease of 25,671 thousand
euros in the Cedinsa group as a result of its takeover (Note 5), and decreases of 35,222 thou-
sand euros and 12,704 thousand euros, respectively, of Shariket Tahlya Mostaganem, S.p.a. and
Shariket Miyeh Djinet, S.p.a. under the partner agreements whereby the former was fully consol-
idated after the takeover, and the latter was posted as a financial asset at fair value after the loss
of significant influence (Note 5).
The assets, liabilities, turnover and profit/(loss) for 2020 and 2019 are presented below, in propor-
tion to the shareholding in the capital of each associate.
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Revenue
Operating profit/(loss)
Profit/(loss) before tax
Profit attributable to the Parent Company
580,197
540,230
Equity
2020
2019
1,376,407
1,514,972
1,312,770
1,363,696
270,310
290,542
420,691
84,191
43,360
23,344
473,334
116,380
67,179
47,131
Regarding the 37.40% stake in the Realia Business group, it should be noted that the stake val-
ue based on the stock market price as of 31 December 2020 amounted to 206,269 thousand
euros, lower than its book value of 278,104 thousand euros as of 31 December 2020 (276,540
thousand euros as of 31 December 2019) and that both in the current year and in the previous
year, no dividends were distributed. However, it is considered that the recoverable value is higher
than its accounting value, as there are latent capital gains in real estate assets, supported by
third-party valuations. Below is the condensed financial information of the Realia group at 31
Non-current assets
Current assets
Cash and equivalents
Other current assets
TOTAL ASSETS
Equity Parent Company
Capital
Reserves
Own Shares
Profit/(Loss) Parent Company
Valuation adjustments
Non-controlling interests
Non-current liabilities
Non-current financial liabilities
Other non-current liabilities
Current liabilities
Current financial liabilities
Other current liabilities
TOTAL LIABILITIES
Balance Sheet
2020
2019
1,013,251
1,009,857
440,637
74,822
365,815
459,373
75,895
383,478
1,453,888
1,469,230
792,233
676,035
196,864
480,813
(7,526)
7,694
(1,810)
116,197
576,696
533,602
43,094
84,959
47,278
37,681
797,326
671,926
196,864
459,153
(3,277)
21,675
(2,490)
125,401
600,508
566,441
34,067
71,396
34,715
36,681
1,453,888
1,469,230
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Revenue
Other income
Operating expenses
Depreciation of fixed and non-current assets
Other operating income/(losses)
Operating profit/(loss)
Financial income
Finance cost
Miscellaneous financial results
Financial Profit/(Loss)
Profit/(loss) of equity-accounted affiliates
Net income from impairment of fixed and non-current assets
Profit/(loss) before tax from continuing operations
Income tax
Profit/(loss) for the year from continuing operations
Profit/(loss) from interrupted operations
PROFIT/(LOSS) FOR THE YEAR
Profit/(Loss) Parent Company
Profit/(loss) non-controlling interests
Income statement
2020
85,893
18,543
(66,655)
(12,441)
(2,979)
22,361
10,609
(15,741)
524
(4,608)
813
0
18,566
(4,005)
14,562
–
14,562
7,692
6,869
2019
76,104
18,805
(35,975)
(12,151)
5,458
52,241
1,188
(15,633)
970
(13,475)
1,702
0
40,468
(10,527)
29,941
–
29,941
21,676
8,265
It should be noted that adjustments were made to the previous financial statements of the Realia
group for the purpose of standardisation in order to apply the equity method and record it in the
consolidated financial statements, since said group applies the option allowed in IAS 40 “Real es-
tate investments” to value its real estate assets at fair value, an accounting policy that the Group
does not apply.
13. Joint agreements.
Jointly controlled operations
As indicated in Note 2.b) section “Joint agreements”, the Group companies carry out part of
their activity by participating in contracts that are jointly operated with other partners outside the
Group, mainly through temporary mergers of companies and other similar entities. These con-
tracts were added proportionally to the accompanying financial statements.
Below are the key figures of the jointly operated contracts that are included in the different head-
ings of the accompanying balance sheet and consolidated income statement, in proportion to
their participation, as at 31 December 2020 and 2019.
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Results
Revenue
Gross Operating Profit
Net operating profit
2020
208,784
1,206,073
67,603
2019
214,777
1,367,070
70,787
1,354,315
1,445,679
1,194,580
1,501,259
48,541
18,406
126,331
98,249
Contracts managed through temporary joint ventures, joint ventures and other entities with similar
characteristics imply that shareholders must share the joint responsibility for the activity carried
out.
In relation to contracts managed jointly with third parties outside the Group, it should be noted
that guarantees have been provided for an amount of 1,551,830 thousand euros (1,393,614
thousand euros in 2019), mostly before public bodies and private customers, to ensure the suc-
cessful completion of urban sanitation works and contracts.
The joint ventures do not have relevant property, plant and equipment acquisition commitments.
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14. Non-current financial assets
and other current financial assets
Financial
assets at
amortised
cost
Financial
assets at fair
value charged
to reserves
Financial
assets at fair
value charged
to profit
and loss
Hedging
derivatives
Total
There are no “Non-current financial assets” or “Other significant non-current financial assets” in
default. The most significant items in the attached consolidated balance sheet of the aforemen-
tioned headings present the following breakdown:
a) Non-current financial assets
2019
Equity instruments
Derivatives
–
–
Collection rights
concession arrangements
566,917
Deposits and guarantees
166,116
35,711
–
–
Non-current financial assets at 31 December 2020 and 2019 are distributed as shown below:
Other financial assets
93,920
468
826,953
36,179
–
9
–
–
9
–
22
–
–
22
35,711
31
566,917
166,116
94,388
863,163
Financial
assets at
amortised
cost
Financial
assets at fair
value charged
to reserves
Financial
assets at fair
value charged
to profit
and loss
Hedging
derivatives
Total
2020
Equity instruments
Derivatives
Collection rights
concession arrangements
Deposits and guarantees
Other financial assets
–
–
397,267
62,115
86,743
34,640
–
–
–
–
546,125
34,640
–
5
–
–
–
5
–
104
–
–
–
34,640
109
397,267
62,115
86,743
104
580,874
In 2020, the decrease in “Collection rights from concession agreements” was 131,106 thousand
euros due to the transfer to non-current assets held for sale by the Cedinsa Group (Note 4).
Likewise, the decrease in “Deposits and bonds” mainly concerns the transfer to non-current as-
sets held for sale of the collection right derived from grants issued, not yet collected, correspond-
ing to the Cedinsa subgroup for the amount of 103,136 thousand euros.
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The breakdown of the “Equity instruments” heading at 31 December 2020 and 2019 is detailed
below:
The due dates for “Deposits and bonds”, “Collection rights of concession agreements” and
“Other financial assets” are as follows:
% Effective
ownership
Fair value
2022
2023
2024
2025
2026 and
beyond
Total
2020
Participations equal to or greater than 5%:
Shariket Miyeh Djinet, S.p.a (note 4)
Cafasso Consortium, N.V.
Vertederos de Residuos, S.A.
Consorcio Traza, S.A.
Rest
Participations below 5%:
Rest
2019
Participations equal to or greater than 5%:
Shariket Miyeh Djinet, S.p.a (note 4)
Cafasso Consortium, N.V.
Vertederos de Residuos, S.A.
Consorcio Traza, S.A.
Rest
Participations below 5%:
Rest
13.01%
15.00%
16.03%
16.60%
13.01%
15.00%
16.03%
16.60%
10,400
8,777
8,764
3,628
1,959
1,112
34,640
11,142
8,777
8,764
3,629
2,296
1,103
35,711
Deposits and guarantees
2,815
370
441
902
57,587
62,115
Collection rights concession
agreement (notes 3.a)
and 11)
Non-commercial loans and
other financial assets
28,534
28,269
28,906
29,412
282,146
397,267
6,949
7,595
4,660
4,642
62,897
86,743
38,298
36,234
34,007
34,956
402,630
546,125
Non-commercial loans mainly include the amounts granted to public entities for debt refinancing,
mainly in the water services activity, that accrue interest in accordance with market conditions.
There were no events during the year that suggests uncertainty regarding the recovery of these
loans.
The deposits and guarantees basically correspond to those made by legal or contractual obliga-
tions in the development of the activities of the Group companies, such as deposits for electrical
connections, for the guarantee in the execution of works, for rental of real estate, etc.
b) Other current financial assets
This heading of the attached consolidated balance sheet includes the financial deposits consti-
tuted by contractual guarantees, the collection rights derived from concessionary financial assets
(Note 11) maturing within less than twelve months, current financial investments made for more
than three months to meet certain specific treasury situations, credits granted to companies ac-
counted for using the equity method and loans to current third parties.
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The details of “Other Current Financial Assets” at 31 December 2020 and 2019 is as follows:
15. Inventories
Financial assets at
amortised cost
The breakdown of “Inventory net of impairment” at 31 December 2020 and 2019 was as follows:
2020
Collection rights concession arrangements
Deposits and guarantees
Other financial assets
2019
Collection rights concession arrangements
Deposits and guarantees
Other financial assets
53,252
56,879
118,521
228,652
31,329
80,836
77,401
189,566
Other financial assets mainly include current loans granted and other accounts receivable from
joint ventures and associates for the amount of 20,427 thousand euros (20,938 thousand euros
in 2019), current loans to third parties for 30,477 thousand euros (29,711 thousand euros in 2019)
and deposits in credit institutions amounting to 35,417 thousand euros (18,197 thousand euros
in 2019).
The average rate of return obtained by these items is in market returns according to the term of
each investment.
Real estate
Raw materials and other supplies
Construction
Cement
Integrated Water Management
Environmental Services
Concessions
Corporation
Finished goods
Advances
2020
2019
452,633
225,880
365,415
220,409
102,914
71,236
22,474
27,907
197
1,152
87,117
77,421
28,123
26,258
196
1,294
14,813
72,278
765,604
18,009
124,979
728,812
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The Group used an independent third party (GESVALT) to estimate the fair value of the main as-
sets that comprise its real estate portfolio. The valuations were made following the criteria of IVSC
(International Valuation Standards Committee). The Dynamic Residual, comparison and cash flow
discount methods were applied as the best approximation of the value. These fair values are ex-
tremely sensitive to stress situations or needs to make the asset liquid in a shorter period than that
of the appraisal. In particular, there was a decrease in the value of the Group’s main real estate
assets, although this did not lead to any significant impairments, since there was some slack in
the valuations of previous years.
In financial year 2020, the total accumulated balance of impairments in real estate stocks amounts
to 174,795 thousand euros.
There are no significant commitments to purchase real estate assets at year-end.
The “Raw materials and other supplies” include facilities necessary for the execution of works
pending incorporation, building materials and storage elements, spare parts, fuel and other ma-
terials necessary in the development of activities.
The “Real estate” item includes plots for real estate development. Likewise, “Real estate” in pro-
duction is also registered under production, for which there are sales commitments for a final
value of delivery to customers of 51,021 thousand euros (42,505 thousand euros in 2019). The
advances that some customers have paid on behalf of the aforementioned “Real Estate” are
guaranteed by insurance contracts or bank guarantees, in accordance with the requirements
established by the regulations in force. Below is the breakdown of the main real estate products:
Estates and promotions Tres Cantos (Madrid)
200,366
121,439
2020
2019
Estates and promotions Arroyo Fresno (Madrid)
Estates and promotions Sant Joan Despí (Barcelona)
Estates and promotions Badalona (Barcelona)
Viviendas Pino Montano (Sevilla)
Finca Las Mercedes (Madrid)
Other properties and developments
59,406
66,889
35,804
6,956
7,016
76,196
53,052
46,576
35,171
8,150
7,016
94,011
452,633
365,415
The increases observed in the table above with respect to the year 2020 are due to new ongoing
developments and the materialisation of commitments to purchase plots during the year.
The real estate inventory is valued at their acquisition or production cost, corrected where appro-
priate to the market value when this is lower, mainly based on the references of the end market,
by calculating the residual value of the land compared to the existing market value in the location
in which it is located and, where appropriate, when purchase offers have been received, the price
of such offers has been used for their valuation.
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16. Commercial debtors, other accounts
receivables and other current assets
a) Trade receivables for sales and services
This heading of the attached consolidated balance sheet includes the value of the production and
services rendered pending collection, valued as indicated in note 3.r), which provide the various
Group activities and which are the basis of the operating profit/(loss).
The following is the breakdown of “Receivables external to the Group” at 31 December 2020 and
2019:
Progress billings receivable and trade receivables for sales
Completed output pending certification
Warranty retainers
Production billed to associated and jointly controlled companies
Trade receivables for sales and services
Advances received for orders (Note 22)
2020
2019
934,499
589,130
67,336
60,129
799,543
572,461
72,793
60,002
1,651,094
1,504,799
(403,626)
(380,695)
Total trade receivables for sales and services
1,247,468
1,124,104
The total amount corresponds to the net balance of receivables having considered the corrections
for insolvency risk amounting to 246,764 thousand euros (258,919 thousand euros as of 31 De-
cember 2019) and deducting the item of advances received for orders listed under the heading
“Trade payables and other accounts payable” of the liability side of the accompanying consoli-
dated balance sheet. This item also includes the certified amounts of advances for various items,
regardless of whether or not they have been paid.
The loans for commercial operations in default are as follows:
Construction
Environmental Services
Water
Corporation
TOTAL
2020
51,739
276,540
113,744
111
2019
55,481
270,222
64,888
166
442,134
390,757
Balances are considered to be in default when their due date has passed and they have not been
paid by the counterpart. However, it must be taken into account that given the different charac-
teristics of the different sectors in which the FCC Group operates, although certain assets are in
default, there is no risk of default, since most of its clients are public clients, in which only delays
in collections can occur, as it is entitled to claim the corresponding delay payment surcharges.
“Certified production pending collection and trade receivables” mainly includes the amount of the
certifications issued to customers for works executed in the Construction segment in the amount
of 341,737 thousand euros (249,646 thousand euros at 31 December 2019) and services provid-
ed by other segments in the amount of 592,762 thousand euros (549,897 thousand euros as of
31 December 2019), pending collection at the date of the consolidated balance sheet. In general,
there are no disputes in relation to the above.
The difference between the amount of progress recorded at the origin of each of the works and
contracts in progress, valued according to the criteria set out in note 3.r), and the amount certi-
fied to date from the consolidated financial statement is collected as “Completed output pending
certification”.
The “Completed output pending certification” section includes work executed pending certifi-
cation corresponding to the construction contracts executed by the Group for the amount of
298,199 thousand euros (249,468 thousand euros at 31 December 2019). The aforementioned
balance mainly includes the differences between the completed output, valued at the sale price,
and the certification made to date under the current contract for the amount of 274,844 thousand
euros (238,783 thousand euros as of 31 December 2019); that is, output recognised according to
the degree of progress that originates in differences between the time at which the output of the
work is executed, covered by the contract signed with the customer and approved by the latter,
and the time at which the latter certifies it.
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“Executed production pending certification” includes services provided in the Environment and
Water activities that are billed more than once a month, basically corresponding to the work car-
ried out as part of normal activity for the amount of 232,455 thousand euros (240,438 thousand
euros as of 31 December 2019).
The amount of the transfer of customer loans to financial institutions without the possibility of re-
course against the Group companies in the event of default amounts to 111,103 thousand euros
at year-end (261,105 thousand euros at 31 December 2019). The impact on cash flows of loan
assignments is reflected in the “Changes in working capital” heading of the Statement of Cash
Flows. This amount has been reduced from the “Progress billings receivable and trade receiva-
bles for sales”. The variation between the two years is due to the decrease in transfers without
recourse of Environment activity in the amount of 155,035 thousand euros arising from financial
optimisation policies (Note 20).
b) Other receivables
The breakdown of the “Other receivables” at 31 December 2020 and 2019 was as follows:
Euro
Pound sterling
United States dollar
Algerian dinar
Czech koruna
Romanian leu
Public Administrations - VAT receivable (Note 24)
Public Administrations - Other taxes payable (Note 24)
Other receivables
Advances and credits to staff
Total other receivables
c) Other current assets
2020
2019
Other European currencies
108,169
61,896
115,496
1,561
287,122
87,291
54,892
114,941
2,219
259,343
Latin America (various currencies)
Rest
Total
This heading mainly includes amounts disbursed by the Group in relation to certain contracts for
the provision of services, which have not yet been recorded as expenses in the attached financial
statement as they had not accrued at the close of these Financial Statements.
17. Cash and cash equivalents
This heading includes the Group’s cash flow, as well as bank deposits and taxes with an initial
due date of three months or earlier. These balances were remunerated at market interest rates in
both 2020 and 2019.
The breakdown by currency of the cash and cash equivalents position for 2020 and 2019 is as
follows:
2020
2019
754,035
185,751
95,609
27,317
22,322
21,532
1,320
61,544
52,679
708,399
138,408
161,967
51,949
24,771
27,037
1,853
27,645
76,515
1,222,109
1,218,544
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18. Equity
The accompanying Statement of Changes in Total Equity at 31 December 2020 and 2019 shows
the evolution of equity attributed to the shareholders of the Parent Company and non-controlling
interests in the respective years.
The Ordinary General Shareholders’ Meeting held on 2 June 2020 resolved to distribute a scrip
dividend by issuing new ordinary shares with a par value of 1 euro each, without a share premium,
of the same class and series as the existing shares in circulation. This resolution also included an
offer by the company to acquire the free allocation rights at a guaranteed price.
At its meeting on 8 June 2020, following the General Shareholders’ Meeting, the Board of Di-
rectors of Fomento de Construcciones y Contratas, S.A. resolved to execute the scrip dividend
distribution resolution adopted by the Shareholders’ Meeting, the most significant characteristics
of which are described below:
– Maximum value of the scrip dividend: 156,905,930.40 euros, equivalent to 0.40 euros per
share.
– Shareholders received the corresponding allocation rights and could choose between three
options: receiving the new shares released, transferring their rights in the market or selling
their rights to the company for the guaranteed price of 0.40 euro per share.
– The number of free allotment rights required to receive a new share was set at 23. Sharehold-
ers who chose this option also received a compensatory cash dividend of 0.624 euro for each
new bonus share received, to make this financially equivalent to transferring their rights to the
company.
– At the end of the trading period for the free allocation rights on 22 June 2020, holders of
387,361,229 (98.75%) rights had chosen to receive new shares, while shareholders holding
4,903,597 rights opted to accept the company’s offer to acquire their rights at the guaran-
teed price. Accordingly, a total of 16,841,792 bonus shares with a nominal value of 1 euro
were issued, representing 4.29% of the share capital prior to the increase. The compensation
mechanism described in the previous paragraph led to a Group disbursement of 10,475
thousand euros on 8 July 2020. The remaining 1.25% chose to collect in cash, which meant
an additional cash outflow for the Group of 1,961 thousand euros, an amount that was paid
on 24 June 2020.
– On 2 July 2020, the public deed to increase the Company’s paid-up capital with a charge to
voluntary reserves was registered at the Barcelona Mercantile Registry.
In addition, the Ordinary General Shareholders’ Meeting held on 8 May 2019 resolved to distribute
a scrip dividend, as follows:
– Maximum value of the scrip dividend: 151,530,202.40 euros, equivalent to 0.40 euros per
share.
– Shareholders received the corresponding allocation rights and could choose between three
options: receiving the new shares released, transferring their rights in the market or selling
their rights to the company for the guaranteed price of 0.40 euro per share.
– The number of free allotment rights required to receive a new share was set at 28. Sharehold-
ers who chose this option also received a compensatory cash dividend of 0.638 euros for
each new bonus share received, to make this financially equivalent to transferring their rights
to the company.
– At the end of the trading period for the free allocation rights on 28 May 2019, holders of
376,300,974 (99.33%) rights had chosen to receive new shares, while shareholders holding
2,524,532 rights had opted to accept the company’s offer to acquire their rights at the guar-
anteed price. Pursuant to the foregoing, a total of 13,439,320 bonus shares with a nominal
value of 1 euro were issued, representing 3.55% of the share capital prior to the increase.
On 29 June 2020, the investee company FCC Aqualia, S.A. acquired an additional 2% stake in
Aquos el Realito, SA de CV, in which it previously held 49% and was consolidated by the equity
method, giving the Group a 51% stake (Note 5). The aforementioned acquisition allowed Aquos
el Realito, SA de CV to be controlled and fully consolidated, with 8,671 thousand euros posted
under “Minority interests” in the attached consolidated balance sheet.
In July 2020, FCC Medio Ambiente UK, SL agreed to sell Icon Infrastructure Partners a minority
percentage of 49% of the capital of its subsidiary Green Recovery Projects Limited (Note 5). The
operation posted 60,718 thousand euros under “Minority interests” and 74,215 thousand euros
in reserves. Valuation adjustments increased by 55,300 thousand euros as the proportional part
of the aforementioned adjustments prior to the sale was attributed to minority interests.
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At 31 December 2019, “Distribution of dividends” on the Statement of Changes in Total Equity
showed a decrease of 44,100 thousand euros under “Non-controlling interests”, attributable to
the distribution of dividends approved by FCC Aqualia, S.A.
The takeover of Shariket Tahlya Mostaganem, S.p.a. and the Cedinsa group (Notes 5, 12 and 27)
took place in 2019, occasioning a switch to full consolidation instead of the equity method in the
past. These operations booked non-controlling interests in the amounts of 136,998 and 111,727
thousand euros respectively. Furthermore, in April 2019, FCC Aqualia, S.A. acquired a 49% share
in AquaJerez, S.L., over which it already had control with a 51% holding (note 5). As this transac-
tion involved equity, the difference between the acquisition price and the value of the net assets
acquired was recognised directly against equity, representing a loss of 17,311 thousand euros in
reserves in the consolidated financial statements.
The rest of the “Other changes in equity” in the attached Statement of Total Changes in Equity
basically includes the distribution of the results obtained by the Group in the previous year.
I. Equity attributable to the Parent Company
a) Capital
The share capital of Fomento de Construcciones y Contratas, S,A. comprises 409,106,618 ordi-
nary shares represented through book entries with a nominal value of 1 euro each.
All shares are fully subscribed and paid and carry the same rights.
The securities representing the share capital of Fomento de Construcciones y Contratas, S.A. are
admitted to official listing on the four Spanish stock exchanges (Madrid, Barcelona, Bilbao and
Valencia) via Spain’s Continuous Market.
On 10 June 2020, Samede Inversiones 2010, SL, controlled 100% by Ms. Esther Koplowitz
Romero de Juseu, transferred the 100% stake that it held in Dominum Dirección y Gestión, SL,
which in turn owns FCC shares representing 15.43% of the capital, to Control Empresarial de
Capitales, SA de CV.
On 27 November 2020, Dominum Dirección y Gestión, S.L. transferred shares in FCC represent-
ing 7% of its share capital to Finver Inversiones 2020, S.L.U.
Following the aforementioned changes, in relation to the part of the capital held by other com-
panies, directly or through its subsidiary companies, when it is more than 10%, according to the
information provided, the company Control Empresarial de Capitales, S.A. de C.V. (acquiring
company of Inversora Carso, S.A. de C.V.), controlled by the Slim family, holds 69.61% directly
and indirectly, at the date on which these statements were drawn up. Furthermore, as indicated
in the previous paragraph, the company Finver Inversiones 2020, S.L.U., 100% owned by In-
mobiliaria AEG, S.A. de C.V., which in turn is controlled by Carlos Slim Helú, has a 7% holding.
Finally, the company Nueva Samede Inversiones 2016, S.L.U. has a direct holding of 4.536% of
the capital. Esther Koplowitz Romero de Juseu also holds 133,269 direct shares in Fomento de
Construcciones y Contratas, S.A.
b) Accumulated earnings and other reserves
The composition of this heading of the accompanying consolidated balance sheet as at 31 De-
cember 2020 and 2019 is as follows:
Reserves of the Parent
Consolidation reserves
2020
2019
1,441,078
1,230,126
469,660
371,158
1,910,738
1,601,284
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b.1) Reserves of the Parent
Reserve for redeemed capital
This corresponds to the series of reserves set up by Fomento de Construcciones y Contratas,
S.A., parent of the Group, mainly based on retained profits and capital gains and, where appro-
priate, in compliance with the different applicable legal provisions.
The breakdown at 31 December 2020 and 2019 is as follows:
This reserve includes the nominal value of the amortised treasury shares in 2002 and 2008
charged to available reserves, in accordance with the provisions of article 335.c of the Spanish
Corporate Enterprises Act. The reserve for amortised capital is unavailable, other than with the
same requirements as for capital reduction.
Share premium
Legal reserve
Reserve for redeemed capital
Voluntary reserves
2020
2019
1,673,477
1,673,477
78,453
6,034
75,765
6,034
Reserves for which there is no type of limitation or restriction on their availability, freely constituted
through profits and capital gains of the Parent Company once the distribution of dividends has
been applied and the provision to legal reserve or other unavailable reserves in accordance with
the current legislation.
Voluntary reserves and losses from previous years
(316,886)
(525,150)
b.2) Consolidation reserves
1,441,078
1,230,126
Share premium
The Spanish Corporate Enterprises Act, as amended, expressly permits the use of the share
premium account balance to increase capital and does not establish any specific restrictions as
to its use for other purposes.
Legal reserve
This heading of the accompanying consolidated balance sheet includes the consolidated re-
serves generated in each of the areas of activity. Also, in accordance with IFRS 10 “Consolidated
financial statements”, those derived from changes in the shareholding of Group companies are
included as long as control is maintained, for the difference between the amount of the purchase
or additional sale and the book amount of the interest. Meanwhile, in accordance with IAS 19
“Employee benefits”, this section includes the actuarial profit and loss of pension plans and other
social security benefits. The breakdown of this item as at 31 December 2020 and 2019 is as
follows:
In accordance with the Spanish Corporate Enterprises Act, as amended, 10% of net profit for
each year must be transferred to the legal reserve until the balance of this reserve reaches at least
20% of the share capital. The legal reserve cannot be distributed to shareholders except in the
event of liquidation.
The legal reserve may be used to increase capital provided that the remaining reserve balance is
greater than 10% of the increased capital.
Otherwise, until it exceeds 20% of share capital and provided there are no sufficient available
reserves, the legal reserve may only be used to offset losses.
As a result of the capital increase arising from the scrip dividend mentioned at the start of this
note, the Board of Fomento de Construcciones y Contratas, S.A. decided to provide an additional
amount of 3,368 thousand euros as legal reserve in the distribution of 2020 profit.
Environment
Water
Construction
Cement
Corporation
2020
2019
130,288
145,213
29,715
36,416
128,028
469,660
147,827
86,704
83,579
36,119
16,929
371,158
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c) Shares and equity interests
d) Valuation adjustments
This heading includes the Parent Company shares owned by this or other Group companies
valued at the cost of acquisition.
The breakdown of this accompanying consolidated heading at 31 December 2020 and 2019 was
as follows:
The Board of Directors and the subsidiaries are authorised by the General Shareholders’ Meeting
of Fomento de Construcciones y Contratas, S.A. to buy back treasury shares within the limits and
pursuant to the requirements set out in Article 144 et seq. of the Capital Companies Law.
Changes in the fair value of financial instruments
The movement and balance of treasury shares at 31 December are set out below:
Translation differences
2020
2019
(125,966)
(149,733)
(275,699)
(123,851)
(169,072)
(292,923)
Balance at 31 December 2018
Acquisitions
Balance at 31 December 2019
Acquisitions
Balance at 31 December 2020
(11,723)
(4,345)
(16,068)
(1,944)
(18,012)
d.1) Changes in the fair value of financial instruments:
Changes in the fair value of taxes of financial assets at fair value with changes in other compre-
hensive income (Note 14) and of cash flow hedging derivatives (Note 23) are included in this
heading.
2020
2019
Number
of shares
Amount
Number
of shares
Amount
Fomento de Construcciones y Contratas, S.A.
1,544,773
(18,012)
1,250,837
(16,068)
TOTAL
1,544,773
(18,012)
1,250,837
(16,068)
As at 31 December 2020, the shares of the Parent Company, owned by it or by subsidiaries,
represent 0.38% of the capital stock (0.32% as of 31 December 2019).
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The breakdown of the adjustments due to a change in the fair value of the financial instruments
as at 31 December 2020 and 2019 is as follows:
2020
2019
7,785
7,739
d.2) Conversion differences
The detail of the amounts included under this heading for each of the most significant companies
at 31 December 2020 and 2019 is as follows:
2020
2019
Financial assets at fair value with changes in
other comprehensive income
Vertederos de Residuos, S.A.
Rest
Financial derivatives
7,657
128
7,657
82
European Union:
FCC Environment Group (UK)
(133,751)
(131,590)
Green Recovery Group (Note 5)
Concessió Estacions Aeroport L9, S.A. (Note 4)
(83,369)
Cedinsa Group (note 4)
Urbs Iudex et Causidicus, S.A. (Note 4)
FCC Group - PFI Holdings
Green Recovery Group
Ibisan Sociedad Concesionaria, S.A.
FM Green Power Investments, S.L,
Rest
8,054
(29,749)
(9,479)
(7,236)
(2,429)
(2,181)
(7,362)
(79,230)
6,555
(31,934)
(9,004)
–
(2,798)
(5,203)
(9,976)
(125,966)
(123,851)
Egypt Environmental Services, S.A.E.
Rest
Tunisia
(55,100)
(52,281)
(3,453)
Dragon Alfa Cement Limited
Rest
(15,091)
(125,925)
United States of America:
FCC Group Construcción de América
11,911
Giant Cement Holding, Inc.
Rest
Egypt:
Orasqualia Devel. Waste T.P. S.A.E.
(2,526)
(6,354)
(6,380)
(3,764)
(2,725)
3,031
(12,869)
(143,381)
–
(3,152)
(3,946)
6,924
(1,458)
890
(5,921)
(3,664)
(1,537)
(150,479)
6,356
(11,122)
Societé des Ciments d’Enfidha
(25,927)
(24,769)
Rest
Latin America:
FCC Group Construcción de América
Rest
Other Currencies
Rest
(833)
(26,760)
(844)
(25,613)
2,790
9,366
12,156
3,443
3,238
6,681
634
634
5,105
5,105
(149,733)
(169,072)
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The main change in this heading in 2020 was due to the sale of 49% of the subsidiary Green
Recovery Projects Limited, which led to an increase in translation differences for an amount of
47,938 thousand euros as the part proportional to minority interests (Note 5).
The net investment before deducting non-controlling interests in currencies other than the euro
(converted to euros in accordance with note 3.j), grouped by geographic markets is as follows:
United Kingdom
Algeria
Latin America
Czech Republic
United States of America
Rest
e) Earnings per share
2020
287,053
146,935
124,810
70,126
67,082
109,425
805,431
2019
301,710
185,222
104,967
71,012
56,570
148,975
868,456
The basic earnings per share is obtained as a quotient between the profit/(loss) attributed to the
Parent Company and the weighted average of ordinary shares outstanding during the year, the
result per share being 0.66 euros in 2020 (0.69 euros in 2019).
II. Non-controlling interests
The balance of this heading in the accompanying consolidated balance sheet reflects the propor-
tional part of the equity and the profit or loss for the year after tax of those companies in which the
Group’s non-controlling shareholders have ownership interests.
The breakdown of the balance of non-controlling interests of the main companies at the close of
2020 and 2019 is as follows:
2020
FCC Aqualia Group
Cedinsa Group
Green Recovery Group (Note 5)
Cementos Portland Valderrivas Group
Rest
2019
Equity
Capital
Reserves
Results
Total
71,050
283,182
67,884
118,912
(14,260)
5
1,869
6,844
59,175
17,955
(5,772)
4,611
306
2,370
6,250
422,116
109,263
59,486
22,194
7,322
198,680
340,280
81,421
620,381
71,050
246,028
67,003
118,912
2,145
5,701
(6,824)
19,486
(7,221)
(361)
1,348
5,230
384,081
111,727
22,979
3,710
197,808
251,469
73,220
522,497
Profit/(loss)
Attributed profit/(loss) parent
Outstanding shares
Weighted average shares
Earnings per share (in euros)
2020
2019
FCC Aqualia Group
Cedinsa Group
262,179
266,704
Cementos Portland Valderrivas Group
Rest
399,978,217
385,001,230
0.66
0.69
As at 31 December 2020 the Group has not issued any kind of instruments that can be
converted to shares, so the diluted earnings per share coincide with the basic earnings per
share.
The main variation in this heading is due to the sale of 49% of the capital of the subsidiary Green
Recovery Projects Limited mentioned above (Note 5).
In 2019, Shariket Tahlya Mostaganem, S.p.a and the Cedinsa group were taken over, leading
to the recognition of minority interests in the amounts of 136,998 and 111,727 thousand euros
respectively.
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19. Non-current and current provisions
The changes in the provisions heading in 2020 and 2019 were as follows:
266
The detail of the provisions at 31 December 2020 and 2019 is as follows:
Non-current
1,064,384
1,130,199
2020
2019
Liabilities for long-term employee benefits
Dismantling, removal and restoration of fixed
assets
Environmental actions
Litigation
24,347
98,496
261,913
53,548
Contractual and legal guarantees and obligations
70,769
Actions to improve or expand the capacity of
concessions
167,280
Other provisions for risks and expenses
388,031
21,649
100,250
256,547
164,727
66,149
194,172
326,705
Non-current
provisions
Current
provisions
Balance at 31/12/2018
1,161,989
209,264
Asset withdrawal or dismantling expenses
Change of obligations for employee benefits for actuarial profits
and losses
Actions to improve or expand the capacity of concessions
Endowments/(Reversals)
Applications (payments)
Change of scope, conversion differences and other movements
8,952
4,262
10,993
16,740
(116,886)
44,149
–
–
–
65,567
(55,862)
30,612
Balance at 31/12/2019
1,130,199
249,581
Asset withdrawal or dismantling expenses
Change of obligations for employee benefits for actuarial profits
and losses
Current
195,152
249,581
Actions to improve or expand the capacity of concessions
Close-outs and losses on construction contracts
175,456
Other provisions
19,696
226,898
22,683
Endowments/(Reversals)
Applications (payments)
Change of scope, conversion differences and other movements
11,180
4,889
34,442
86,053
(111,568)
(90,811)
–
–
–
(4,943)
(46,699)
(2,787)
Balance at 31/12/2020
1,064,384
195,152
Within the “allocations (reversals)” item, the allocations for environmental actions for 35,844 thou-
sand euros (35,324 thousand euros as at 31 December 2019) are noteworthy, as well as provi-
sions for future replacement actions or major repairs in concessions for 23,485 thousand euros
(19,199 thousand euros as at December 2019).
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December 2019) for environmental actions, and for replacement actions and major repairs in con-
cessions, respectively, which affects the “Other receipts/(payments) of operating activities” in the
Consolidated Statement of Cash Flows. Moreover, 12,419 thousand euros (14,044 thousand euros
as of 31 December 2019), and 9,112 thousand euros (10,027 thousand euros as of 31 December
2019) are included for action to improve or expand capacity in concessions, and provisions for
the dismantling and removal of fixed assets, respectively. These amounts have an impact on the
“Payments for investments of property, plant and equipment, intangible assets and real estate in-
vestments” heading of the Consolidated Statement of Cash Flows.
The movement of current provisions is mainly due to losses from works in the Construction activity.
The heading “Changes in scope, translation differences and other movements” includes 59,716
thousand euros as a result of the transfer to non-current liabilities held for sale of provisions belong-
ing to the Cedinsa subgroup (Note 4).
The provisions contained in the accompanying consolidated balance sheet are considered to hedge
liabilities that may arise in the development of the various activities of the Group.
Liabilities for long-term employee benefits
The non-current provisions of the accompanying consolidated balance sheet include those that
cover the commitments of the Group companies in matters of pensions and similar obligations,
such as medical and life insurance, as indicated in note 25.
Dismantling, removal and restoration of fixed assets
The “Expenses for the withdrawal or dismantling of assets” item includes the counterpart of the
highest asset value corresponding to the updated value of the expenses that will be incurred at
the time the asset stops being used.
Actions to improve or expand the capacity in concessions
The “Actions to improve or expand the capacity of concessions” item includes both the counter-
part of the highest value of fixed and non-current assets corresponding to the updated value of
the actions on the infrastructure that the concessionaire will carry out during the concession pe-
riod for improvements and capacity expansion, as well as the cost of future replacement actions
or major repairs in concessions of the intangible model.
The schedule of expected payments at 31 December 2020, as a result of the obligations covered
by non-current provisions, is as follows:
Environmental actions
Liabilities for long-term employee benefits
Dismantling, removal and restoration of fixed assets
Environmental actions
Litigation
Contractual and legal guarantees and obligations
Actions to improve or expand the capacity of
concessions
3,466
68,413
46,279
35,695
46,404
84,723
Up to
5 years
More than
5 years
20,881
30,083
Total
24,347
98,496
215,634
261,913
17,853
24,365
82,557
53,548
70,769
167,280
The FCC Group develops an environmental policy based not only on strict compliance with cur-
rent legislation on the improvement and protection of the environment, but also through the es-
tablishment of preventive planning and analysis and minimisation of the environmental impact of
the activities the Group carries out.
The Management of the FCC Group considers that the contingencies relating to the protection
and improvement of the environment at 31 December 2020, would not have a significant impact
on the accompanying consolidated financial statements, which include provisions to cover the
probable environmental risks that may arise.
Note 29 to these notes to the consolidated financial statements, which is devoted to information
on the environment, complements the foregoing in relation to environmental provisions.
Other provisions for risks and expenses
242,555
145,476
388,031
Provisions for litigation
527,535
536,849
1,064,384
Provisions for litigation cover the contingencies of the FCC Aqualia Group companies acting as
defendants in certain proceedings in relation to the liability inherent to the business activities car-
ried on by them. Any litigation, which may be significant in number according to estimates made
on its final outcome, is not expected to have an impact on the Group’s equity.
Appeal proceedings against the sale of Alpine Energie Holding AG terminated in March 2020.
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Contractual and legal guarantees and obligations
This heading includes the provisions to cover the expenses arising from contractual and legal
obligations of a non-environmental nature.
Provision for settlement and loss of works
Relating to the losses budgeted for in works in accordance with the valuation principles set forth
in note 3.r) and to the expenses derived from the time they are completed until they are paid in
full, systematically determined according to a percentage of the value of the output throughout
the execution of the works according to the experience in the construction activity.
Other provisions for risks and expenses
This heading includes those items not included in the previous denominations, including certain
provisions related to Alpine for 24,384 thousand euros, which are discussed in greater detail in
the following paragraphs.
The amount of the Other provisions for risks and expenses not related to Alpine covers various
risks arising from the Group’s activity to which it is exposed in the normal course of its business,
mainly construction defects or discrepancies in the services provided for the amount of 194,964
thousand euros (149,419 thousand euros as at December 2019), as well as tax claims amounting
to 28,874 thousand euros (14,707 thousand euros as at December 2019). Part of these risks
are covered by insurance contracts and the corresponding provision is provided for uninsured
amounts.
It also includes provisions resulting from recognising additional losses above the initial value of the
investment in associates after incurring legal or implicit obligations in relation to the investment
in the associate, for an amount of 33,933 thousand euros (48,277 thousand euros at December
2019), with the remaining provisions being less relevant and related to the normal operation of
the Group.
In relation to the provisions and risks arising from the winding up of the Alpine Group, 2020 saw
no significant changes in terms of the amount reported in the Group’s 2019 Financial Statements.
In 2006, the FCC Group acquired an absolute majority in Alpine Holding GmbH, hereinafter AH,
and thereby, indirectly in its operating subsidiary, Alpine Bau GmbH, hereinafter AB. Seven years
later, on 19 June 2013, AB filed for insolvency before the Commercial Court of Vienna, but after
the unfeasibility of the reorganisation proposal was established, the insolvency administrator filed
for, and the court decreed, the bankruptcy, closure and liquidation of the company, and liquidation
of the company commenced on 25 June 2013. As a consequence of the bankruptcy of AB, its
parent company, AH filed for bankruptcy before the Commercial Court on 2 July 2013, declaring
AH’s bankruptcy and liquidation.
As a result of both bankruptcies, FCC Construcción, S.A. loses control over the Alpine Group,
thereby interrupting consolidation.
On the reporting date, the administrators recognised liabilities of approximately EUR 1,669 million
in AB and EUR 550 million in AH as part of the corresponding receivership proceedings. The
current share in the AB bankruptcy assets amounts to 15%, whereas in AH’s bankruptcy the
bankruptcy administrator has not been able to estimate or determine the share.
Immediately after the bankruptcy of both companies, in July 2013 a bondholder filed a complaint
with the Central Public Prosecutor’s Office for Economic Crimes and Corruption (Wirtschafts- und
Korruptions-Staatsanwaltschaft). This not only gave rise to the opening of criminal proceedings
in July 2013 (for alleged fraud, criminal bankruptcy, and concealment of assets) in which some
480 private prosecutions, mainly relating to bondholders, (Privatbeteiligte) were filed, alleging
damages totalling 378 million euros plus legal interest, but also other proceedings brought by
the insolvency administrators against the auditors, against FCC Construcción S. A. and against
various executives and proceedings brought by the bondholders against the banks mediating in
the acquisition of bonds. In 2010, 2011 and 2012, AH carried out three bond issues admitted for
trading on the Luxembourg and Vienna stock exchanges for a combined nominal value of 290
million euros.
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In the context of all these legal proceedings, various reports were issued in order to determine
the date on which AB and AH were presumed bankrupt. Therefore, in September 2014, the firm
BDO Financial Advisory Services GmbH issued a report at the request of the insolvency admin-
istrators of AH and AB, according to which AB had been in insolvency at least since October
2010. Subsequently, in July 2015, the court dealing with AB’s bankruptcy granted the insolvency
administrator’s request to commission a report to determine the date on which AB was deemed
to be in a situation of over-indebtedness with insolvency relevance. The expert appointed was Mr
Schima who, on the basis of the report of BDO, a firm of which he was still a partner at the date
of the report, came to the same conclusions, stating that AB had been insolvent since October
2010. Contrary to these conclusions maintained by the bankruptcy administrators and used in
various legal proceedings, other expert reports were issued in the various proceedings, such as
that of Mr Konecny for the Anti-Corruption Prosecutor’s Office, that of AKKT for the Banks, Ms
Ponesch Urbanek as an expert witness in the lawsuit brought by the banks against the Austrian
tax authorities for the loans given to Alpine under State guarantee, Mr Wundsam as court expert
in the proceedings brought by the bankruptcy administrator against Deloitte Audit Wirtschafts-
prüfungs GmbH, Mr Rohatschek for this company and E&Y for FCC, all of which differ from the
conclusions reached by BDO/Schima.
In particular, in 2017, the anti-corruption prosecutor’s expert, a Doctor of Law and an Audit Ex-
pert, issued his fourth and final report. The expert’s reports concluded that (i) there had been no
concealment of assets; (ii) it could not be said that there had been fraud in the individual financial
statements of AB and AH and the consolidated financial statements of AH; and (iii) the date of
definitive insolvency of AB and AH was 18 June 2013. Together with the 3 reports that preceded
it, this report contributed to a large extent to the dismissal of the criminal proceedings opened by
the Anti-Corruption Prosecutor’s Office.
In July 2019, the Vienna Supreme Court of Justice dismissed in their entirety the various appeals
lodged by bondholders and other private prosecutors against the closure of the preliminary pro-
ceedings.
During the refinancing of the Alpine Group between October 2012 and June 2013, FCC Con-
strucción, S.A. provided corporate guarantees to enable AB and certain of its operating subsidi-
ary companies to bid for and/or be awarded work contracts. As of 31 December 2020, provision
for this item amounted to 24,384 thousand euros.
Between the bankruptcy of AH and AB and the date on which these financial statements were
issued, a number of proceedings were instigated against the Group and directors of AH and AB.
As at 31 December 2020, two sets of commercial proceedings and one set of employment pro-
ceedings were still in progress, affecting FCC either directly or indirectly:
1) In April 2015, the bankruptcy administrator of Alpine Holding GmbH filed a claim for 186 million
euros against FCC Construcción, S.A. and other ex-executive of AB, considering that these
parties should compensate Alpine Holding GmbH for the amounts collected through two
bond issues in 2011 and 2012 that were allegedly provided by this company for its subsidiary,
Alpine Bau GmbH, without the necessary guarantees and complying with a “mandate-order”
from FCC Construcción S.A. On 31 July 2018, the ruling dismissing the claim was handed
down and the claimant ordered to pay the costs. The bankruptcy administrator filed an appeal
for procedural defects in September 2018, which was challenged by FCC Construcción S.A.
in October 2018.
2) In April 2019, the Provincial Court of Vienna handed down a decision in which it upheld the
procedural defect in the taking of testimony given by the claimant, and ordered the remand
of the proceedings with the indication that said testimony be taken and that a judgment be
handed down in accordance with the result. In May 2019, FCC lodged an appeal against this
ruling at the Supreme Court, which confirmed in April 2020 the need to return the case files
to the Court of First Instance so that the witness evidence could be taken in person before
the Judge of First Instance. These witness statements have been scheduled for June 2021,
unless developments in the pandemic caused by Covid-19 make transfers and courtroom
proceedings inadvisable.
3) In April 2017, a Group company, Asesoría Financiera y de Gestión S.A. was notified of a
suit in which the bankruptcy administrator made a joint and several claim against the former
finance director at Alpine Bau GmbH and against Asesoría Financiera y de Gestión S.A. for
the payment of 19 million euros for the alleged violation of corporate and bankruptcy law,
considering that Alpine Bau GmbH, on making a deposit at Asesoría Financiera y de Gestión
S.A., allegedly made payments charged against equity, considered to be a capital refund, and
therefore prohibited by law. The proceedings are still at the evidence phase, and the court
expert has issued his report according to which the deposit and the factoring transactions
between subsidiary companies of AB and Asesoría Financiera y de Gestión S.A. would not
have had any adverse impact on AB. This report is currently being examined by the parties.
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Also in April 2017, a former FCC employee and former executive at AH and AB was notified
of a claim filed by the insolvency administrator of Alpine Bau GmbH in the Social Claims Court
for 72 million euros. The plaintiff argues that this amount represents the damage to the bank-
ruptcy assets caused by the alleged delay in initiating insolvency proceedings. A hypothetical
conviction of the administrator could in a remote scenario raise a subsidiary liability of the FCC
Group pursuant to the explanation in Note 26 on contingent liabilities.
In relation to these disputes, the FCC Group and its legal advisors do not believe there will be any
future outflows of cash prior to the issuance of the financial statements; therefore, no provisions
have been set aside, as the Group believes that they represent contingent liabilities (Note 26).
20. Non-current and current
financial liabilities
The general policy of the FCC Group is to provide all companies with the most adequate financing
for the normal development of their activity.
Whenever the financial operation so requires, and following a hedging criterion for economic and
accounting purposes, the Group contracts interest rate risk hedging operations according to the
type and structuring of each operation (Note 23).
In certain financings, and especially in structured financing without recourse, the funder includes
a contractual clause stating that there must be some type of interest rate coverage, studying the
best hedging instrument according to the profile of the cash flows presented by the project, as
well as the debt repayment schedule.
a) Non-current and current obligations and loans
The breakdown of the issues of current obligations and loans is as follows:
2020
FCC Aqualia, S.A.
Non-current
Current
Total
1,350,000
15,301
1,365,301
FCC Servicios Medio Ambiente Holding, S.A.U.
1,094,868
123,107
1,217,975
Fomento de Construcciones y Contratas, S.A.
–
302,300
Smvak
FCC Medio Ambiente Reino Unido
205,830
130,237
2,460
6,178
302,300
208,290
136,415
2,780,935
449,346
3,230,281
2019
FCC Aqualia, S.A.
FCC Servicios Medio Ambiente Holding, S.A.U.
1,350,000
1,093,658
15,227
1,365,227
1,042
1,094,700
Fomento de Construcciones y Contratas, S.A.
–
300,000
Smvak
FCC Medio Ambiente Reino Unido
212,537
144,150
2,541
5,794
300,000
215,078
149,944
2,800,345
324,604
3,124,949
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The details of the non-current and current obligations and loans formalised by the Group are
detailed below:
• On 8 June 2017, FCC Aqualia, S.A. successfully completed two simple bond issues. One for
700 million euros, with an annual remuneration of 1.413% and due in 2022, and the second
for 650 million euros, with an annual remuneration of 2.629% and due in 2027.
Both issues have the following guarantees:
– Pledge on 100% of the shares of Tratamiento Industrial de Aguas, S.A., Conservación
y Sistemas, S.A., Sociedad Española de Aguas Filtradas, S.A., Depurplan 11, S.A. and
Aigues de Vallirana, S.A. Unipersonal, and 97% of the shares of Entemanser, SA.
– Pledge on 100% of the shareholdings of Infraestructura y Distribución General del Agua,
S.L., Empresa Gestora de Aguas Linenses, S.L., Aguas de las Galeras, S.L., Hidrotec
Tecnología del Agua, S.L. and on 51% of Aqualia Czech, S.L.
– Pledge on 98% of the shares of Acque di Caltanisseta S.p.A., pending formalisation to
extend the pledge to 99.5%; and on 100% of Aqualia Mexico, SA de CV.
– Pledge on the collection rights over certain accounts.
The issuance and circulation of both bonds took place on 8 June 2017, being admitted to
trading in the unregulated market (Global Exchange Market) of the Irish Stock Exchange, and
with an investment grade rating from the Fitch rating agency. This rating was ratified on 17
September 2020, with an upward review of its outlook from Stable to Positive.
The balance as of 31 December 2020 for this item amounts to 1,365,301 thousand euros
(1,365,227 thousand euros in 2019), including 15,301 thousand euros for accrued and un-
paid interest (15,227 thousand euros in 2019).
At 31 December 2020, the 700 million euro bond was listed at 101.556% and the 650 million
euros bond was listed at 109.341%.
• On 4 December 2019, FCC Servicios Medioambiente Holding S.A.U., successfully com-
pleted two simple bond issues. One for 600 million euros, with an annual remuneration of
0.815% and due in 2023, and the second for 500 million euros, with an annual remuneration
of 1.661% and due in 2026.
Both issues have the personal guarantee of FCC Medio Ambiente, S.A.U. and FCC Ámbito,
S.A.U.
Both bonds were issued and circulated in December 2019, and they were admitted to trading
in the unregulated market (Global Exchange Market) of the Irish Stock Exchange, with an
investment grade rating from the Fitch rating agency. This rating was ratified on 3 December
2020, with a stable outlook.
Both issues have an opinion by an independent institution, CICERO Shades of Green, stating
that the governance procedures of the Company were rated as “Good” and the Bond issues
were rated as “Light Green” issues. On the anniversary of the issue, November 2020, certifi-
cation body DNV GL confirmed that some 75% of the total funds obtained had already been
applied to eligible and sustainable environmental projects.
The balance as of 31 December 2020 for this item amounts to 1,096,075 thousand euros
(1,094,700 thousand euros in 2019), including 1,207 thousand euros for accrued and unpaid
interest (1,042 thousand euros in 2019).
At 31 December 2020, the 600 million euro bond was listed at 102.082% and the 500 million
euros bond was listed at 105.227%.
Likewise, in July 2020 FCC Servicios Medioambiente Holding, S.A.U. registered a promissory
note programme - Euro Commercial Paper Programme (ECP) - on the Irish stock market
(Euronext Dublin) in the amount of 300 million euros, at a fixed interest rate and maximum
maturity one year, which allows issuance with maturities of between 1 and 364 days from the
date of issue, in order to meet the financial needs of the area.
At 31 December 2020 the outstanding balance on this programme was 121.9 million euros,
with maturities ranging from 3 to 5 months.
• Fomento de Construcciones y Contratas, S.A. has had a promissory note programme, Euro
Commercial Paper Programme (ECP), registered since November 2018 on the Irish stock ex-
change (Euronext Dublin) for a maximum amount of 600 million euros as at December 2020,
at a fixed interest rate and with a maximum maturity of one year, which allows issuance with
maturities of between 1 and 364 days from the date of issue, in order to meet general financial
need of major Group companies.
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As of 31 December 2020, the outstanding balance was 302,300 thousand euros (300,000
thousand euros at 31 December 2019), distributed between different maturity terms, from 2.5
to 6 months.
b) Non-current and current bank borrowings
The breakdown at 31 December 2020 and 2019 is as follows:
• Severomoravské Vodovody a Kanalizace Ostrava, A.S. (Smvak) issued a local bond in July
2015 to repay another one issued in 2005, with its main characteristics being a fixed rate, a
term of 7 years and for an amount of 5,400,000 thousand CZK, with a coupon of 2.625% and
with an investment grade rating from the Fitch rating agency.
2020
The balance at 31 December 2020 covered by this item amounts to 208,290 thousand euros
(as of 31 December 2019 it was 215,078 thousand euros), including 2,460 thousand euros of
accrued and unpaid interest (2,541 thousand euros in 2019). The price of these obligations as
of 31 December 2020 was 99.354%.
There is no collateral for this issue.
•
In the context of the Azincourt refinancing process carried out in June 2018, FCC Medio Am-
biente Reino Unido issued debt in the total amount of 145,000 thousand pounds sterling in
two institutional tranches, both structured through the issuance of Private Placement bonds.
Credits and loans
Debts without recourse to
the parent
Debts with limited recourse
for project financing
FCC Medio Ambiente
Reino Unido
Aquajerez
Rest
One of the tranches for 135,000 thousand pounds with a fixed rate of 3.98% and the other
tranche for 10,000 thousand pounds with a fixed rate of 4.145%, both due on 17 June 2038.
5,136 thousand pounds were repaid in 2020.
2019
Non-current
Current
Total
20,011
204,697
382,891
156,079
19,690
176,090
224,387
36,652
419,543
178,886
52,946
151,059
10,516
4,730
21,406
189,402
57,676
172,465
607,599
212,421
820,020
The guarantees of this issue are detailed in section 3. of this note.
The balance as of 31 December 2020 for this item amounts to 136,415 thousand euros
(149,944 thousand euros in 2019).
Credits and loans
Debts without recourse to
the parent
Debts with limited recourse
for project financing
61,679
379,343
878,245
27,196
42,058
86,146
88,875
421,401
964,391
Cedinsa Group
FCC Medio Ambiente
Reino Unido
Rest
533,925
198,263
146,057
21,143
53,663
11,340
555,068
251,926
157,397
1,319,267
155,400
1,474,667
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The previous table shows three different Debt groups:
1. Credits and loans
In December 2019, Fomento de Construcciones y Contratas, S.A. made a voluntary early repay-
ment of all syndicated financing signed in 2018 in the amount of 1.2 billion euros. This repayment
was made using a large part of the funds obtained from the issuance of FCC Servicios Medioam-
biente Holding S.A.U. bonds explained in the previous section, along with funds from new bilateral
lines signed up.
This operation enabled FCC to successfully complete a debt reduction and financial reorganisa-
tion process initiated five years ago, with which it has achieved a much more solid and efficient
capital structure, with amounts, terms and financing costs in line with the nature of its different
business areas (Note 30).
As of 31 December 2020, as in 2019, this section mainly includes the financing facilities of FCC,
SA in the form of credit policies and bilateral loans signed in the amount of 648.5 million (500
million euros at 31 December 2019) with different local financial institutions. At 31 December
2020, the balance drawn down from these loans was 175 million euros (87 million euros at 31
December 2019).
2. Debts without recourse to the parent
Item that mainly incorporates the financing corresponding to the Cementos Portland Valderrivas
(CPV) group.
CPV financing is implemented in a senior financing contract for an original amount of approxi-
mately 455.7 million euros, which includes partial maturities and a final maturity of five years (July
2021). On 29 July 2020, a contract for the novation and ratification of guarantees was signed in
which a new repayment schedule was included to extend the last instalment payable on 29 July
2021, i.e. to 29 July 2022, and adapt the financial covenants.
The interest rate applicable to this loan is Euribor plus a differential of 2.43%, with the possibility
of reduction depending on the performance of the leverage.
During the financial year 2020, debt was repaid in advance voluntarily for a total amount of 119.2
million euros, 108.2 million euros on account of the repayment instalments planned for the finan-
cial year 2021 and the final instalment.
As of 31 December 2020, the entire debt balance had been classified as non-current and the
total outstanding balance of this loan amounts to 115.5 million euros (234.7 million euros as of
31 December 2019).
This financing requires compliance with a series of financial ratios until its maturity. As of 31 De-
cember 2020, the required ratios were met, and since the Gross Debt Financing / EBITDA Ratio
is less than 2x, the interest rate margin in 2021 will fall from 2.43% to 2% per year.
CPV also has a subordinated financing contract for an original amount of 79.5 million euros, ma-
turing 6 months after the expiry of the senior financing contract. On 29 July 2020, in parallel to
signature of the novation of the senior financing contract, a modifying agreement was signed to
the agreement signed on 29 July 2016, in which the extension of maturity was agreed, setting it
at 78 months from the date of the contract, that is, as of 29 January 2023.
At 31 December 2020 and 2019, the outstanding balance of this loan is 70.4 million euros.
As at 31 December 2020, the guarantees granted in relation to said financing only affect shares
of CPV Group investees.
The rest of the debt in this section is accounted for by the debt of the Water area and the Services
area, mainly from the FCC Environment CEE subgroup.
Additionally, at 31 December 2020 FCC Medio Ambiente SAU and the FCC Environment CEE
subgroup held signed and undrawn credit agreements in the amounts of 323.5 and 32.9 million
euros, respectively.
3. Debts with limited recourse for project financing
Covering all financings that are only guaranteed by the project itself and by its cash generation
capacity, which will bear the total payment of the debt service and which, under no circumstance,
will be guaranteed by the Fomento de Construcciones y Contratas, S.A. parent company or any
other company of the FCC Group.
As of 31 December 2020, this section does not include the Cedinsa Group’s debt, which as of 31
December 2019 amounted to 555,068 thousand euros, as a result of its transfer to non-current
assets held for sale (Note 4).
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• FCC Medio Ambiente Reino Unido. The full debt of Azincourt Investment, S.L. was repaid in
2019 (a company wholly owned by FCC, SA, and in turn holding 100% of the shares of FCC
Environment UK). The company currently has a revolving line of credit in the amount of 30
million pounds, not drawn down as at 31 December 2020.
In 2018, FCC Energy Ltd, whose assets are the Eastcroft and Allington incinerators, issued
debt in the amount of 207.4 million pounds. This debt has a term of 20 years (maturing on
17 June 2038) and three different tranches, two institutional for an initial total amount of 145
million pounds described in section a) of this note, and a commercial tranche of 62.4 million
pounds. The interest rate of the commercial tranche is a variable rate hedged with an ex-
change of interest that makes it fixed plus an upward margin of up to 2.75% during the life of
the project.
2.2 million pounds were repaid from commercial tranche in 2020.
Being project funding, the financing of FCC Energy includes the standard guarantees for this
type of financing, such as the pledging of the company’s shares and the rest of its assets,
which include the companies that operate the two waste incineration plants.
•
In October 2016, FCC Environment signed a 142 million pound contract to design, finance,
build and operate the Millerhill Recycling and Energy Recovery Centre (RERC) in Midlothian,
located on the outskirts of Edinburgh. The plant originally had two syndicated loans, one
amounting to 75.71 million pounds, repayable in August 2042, and another for 36.9 million
pounds which came due in May 2020. The margins of the loan due to be repaid in 2042 range
from 3% to 3.5%. At the end of 2020, the debt drawn down from the project was 72.8 million
pounds corresponding to the syndicated loan due to be repaid in 2042.
By way of a summary of the foregoing, at 31 December 2020, of the total FCC Medio Ambi-
ente Reino Unido debt with credit institutions, FCC Energy Ltd accounts for 58.8 million euros,
and FCC E&M (Edinburgh) for 80.0 million euros; the rest of the debt with limited resource for
project financing, up to the total amount of 189.4 million euros, corresponds to the debt of
other companies that make up the FCC Group in the United Kingdom.
• The financing of Aquajerez, SL was signed in 2016 and amounted to 40 million euros, with
a term of 15 years with semi-annual repayments from January 2017. During 2019 FCC
Aqualia, S.A., which already held 51% of this company, acquired the remaining 49% and pro-
ceeded to extend the initial credit to 65 million euros. As of 31 December 31 2020, this debt
amounts to 57.7 million euros (61.9 million in 2019).
This financing is associated with a mandatory interest rate hedging of 15 years on 70% of
the nominal, as shown in note 23 of derivative financial instruments. This hedging was also
renewed in line with the credit increase.
“Rest of Debts with limited recourse for project financing” includes companies with project
financing from the Water areas - Aquos El Realito, SA de CV with 40.3 million euros; Servicios
Medioambientales, Gipuzkoa Ingurumena Bi, S.A. with 24.5 million euros; and Concessions,
Autovía Conquense, SA with 26.9 million euros.
As at 31 December 2020 there have been no breaches of financial ratios associated with project
financing debts, and they are not expected to be defaulted during 2021.
The guarantees granted on these loans are real and are based on the financed assets that repay
the debt with own flows, without additional guarantees granted by the Parent Company to pledge
the shares in the vehicle companies that own the aforementioned financial assets that may have
been granted.
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The breakdown of the debts with credit institutions by currency and amounts available at 31 De-
cember 2020 and 2019 is as follows:
c) Other non-current financial liabilities
275
Euros
US
dollars
Pounds
Sterling
Czech
koruna
Rest
Total
Non-current
175,227
206,877
851
507
–
–
–
12
176,090
8,741
8,263
224,388
Lease debt (Note 10)
Third party financial debts outside the group
Derivative financial liabilities (Note 23)
Deposits and guarantees received
128,376
–
189,402
–
101,765
419,543
Other concepts
2020
2019
376,487
115,374
38,504
41,990
16,399
588,754
405,391
282,887
168,171
39,788
14,421
910,658
510,480
1,358
189,402
8,741
110,040
820,021
2020
Credits and loans
Debt without recourse to
the parent
Debts with limited
recourse for project
financing
2019
The decrease in “Third party financial debts outside the group” at 31 December 2020 is mainly
due to the transfer to non-current liabilities held for the sale of the financial debt of the Cedinsa
Group companies with the Generalitat de Catalunya, in the amount of 206,466 thousand euros
as of 31 December 2019 (Note 4).
“Derivative financial liabilities” mainly include financial derivatives for risk hedging, mainly interest
rate swaps. The decrease with respect to the previous period is noteworthy as the derivatives
of the Cedinsa Group are not incorporated as a consequence of the aforementioned transfer to
non-current liabilities held for sale (Notes 4 and 23).
Credits and loans
87,252
1,623
Debt without recourse to
the parent
341,256
–
–
–
–
–
88,875
7,206
72,939
421,401
Debts with limited
recourse for project
financing
695,428
–
251,926
–
17,037
964,391
1,123,936
1,623
251,926
7,206
89,976 1,474,667
Credits and loans in US dollars mainly finance assets in the Construction and Services area; those
contracted in sterling correspond to the asset financing of FCC Medio Ambiente UK; those con-
tracted in CZK finance the operations of FCC Environment CEE in the Czech Republic; and in the
rest of currencies, the financing of Aquos El Realito, SA de CV in Mexican pesos for an amount
of 40,309 thousand and Shariket Tahlya Mostaganem, S.p.A. in Algerian dinars for the amount of
32,903 thousand euros.
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d) Other current financial liabilities
e) Schedule of expected due dates
Current
Lease debt (Note 10)
Interim dividend payable
Third party financial debts outside the group
Suppliers of fixed assets and bills payable
Debts with associated companies and joint ventures
Derivative financial liabilities (Note 23)
Deposits and guarantees received
Other concepts
2020
2019
The schedule of expected due date of debts with credit institutions, obligations and loans and
other non-current financial liabilities, is as follows:
68,599
18,457
22,008
35,002
4,120
5
60,772
3,713
78,985
1,536
24,987
31,332
4,366
3,033
53,456
5,912
2022
2023
2024
2025
2026 and
beyond
Total
911,407
618,999
6,679
7,175
1,236,675
2,780,935
186,201
119,395
36,593
27,066
238,344
607,599
2020
Debt instruments
and other marketable
securities
Non-current bank
borrowings
Other financial liabilities
72,170
40,317
36,983
39,701
399,583
588,754
212,676
203,607
1,169,778
778,711
80,255
73,942
1,874,602
3,977,288
“Guarantees and deposits received” includes the advance payment received for the agreement to
sell the shareholding in Concesionaria Túnel de Coatzacoalcos, S.A. for 48,396 thousand euros
in both years, owned by a company linked to the majority shareholder of the Parent Company.
The sale is subject to conditions precedent, not fulfilled at the date of formulation of these con-
solidated annual accounts.
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f) Changes in financial liabilities that affect cash flows from financing
activities
Below are details of the changes in non-current and current financial liabilities, differentiating those
that affected cash flows from financing activities in the Statement of Cash Flows from the remain-
ing changes:
Balance at
1 January 2020
Cash flows from
financing activities
Exchange
differences
Change in
fair value
Change consolidation
method
Other changes
Balance at
31 December 2020
With no impact on cash flows
Non-current
Debt instruments and other marketable securities
Bank borrowings
Other financial liabilities
Current
Debt instruments and other marketable securities
Bank borrowings
Other financial liabilities
5,030,270
2,800,345
1,319,267
910,658
683,611
324,604
155,400
203,607
(68,305)
1,425
(96,469)
26,739
(219,865)
64,981
(109,815)
(175,031)
(60,635)
(22,177)
(32,695)
(5,763)
(7,675)
(703)
(3,454)
(3,518)
31,320
153,446
(1,108,808)
–
–
31,320
223
–
–
223
7,732
75,144
70,570
23,216
311
132
22,773
(6,390)
(657,648)
(444,770)
394,933
60,153
170,158
164,622
3,977,288
2,780,935
607,599
588,754
874,443
449,346
212,421
212,676
Balance at
1 January 2019
Cash flows from
financing activities
Exchange
differences
Change in
fair value
Change consolidation
method
Other changes
Balance at
31 December 2019
With no impact on cash flows
Non-current
3,900,432
Debt instruments and other marketable securities
1,702,631
Bank borrowings
Other financial liabilities
Corrientes
Obligaciones y otros valores negociables
Deudas con entidades de crédito
Otros pasivos financieros
1,988,629
209,172
380,902
23,308
211,455
146,139
1,297,983
1,092,639
172,347
32,997
(1,529,516)
255,211
(1,592,587)
(192,139)
22,309
9,981
17,328
(5,000)
5,253
318
958
3,977
13,372
–
–
13,372
11,123
–
–
11,123
961,856
–
592,864
368,992
32,142
–
20,277
11,865
(1,165,682)
(4,906)
(1,451,901)
291,125
1,783,707
45,767
1,515,297
222,642
5,030,270
2,800,345
1,319,267
910,658
683,611
324,604
155,400
203,607
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In 2020, the decrease in “Other movements” mainly addresses the transfer to non-current liabil-
ities held for sale of the Cedinsa subgroup (Note 4) in the amount of 861,282 thousand euros.
22. Trade and other accounts payable
278
In 2019, “Change consolidation method” shows 918,137 thousand euros contributed by the
Cedinsa Group and 52,805 thousand euros contributed by Shariket Tahlya Miyah Mostaganem,
S.p.A. as a result of the full consolidation method implemented after the takeover (Note 4). In
addition, “Other movements” shows the debt arising as a result of the first application of IFRS 16
“Leases” for an amount of 388,462 thousand euros in “Other non-current financial liabilities” and
43,805 thousand euros in “Other current financial liabilities” (Notes 2, 3 and 10).
21. Other non-current liabilities
This heading mainly includes the performance obligations under the Buckinghamshire plant con-
cession (Note 11) arising from the collection of the intangible component according to the condi-
tions established in the contract for the amount of 118,375 thousand euros at 31 December 2020
(128,806 thousand euros at 31 December 2019).
The breakdown of the “Trade and other accounts payable” heading in the liability side of the bal-
ance sheet as at 31 December 2020 and 2019 is as follows:
Suppliers
Current tax liabilities (Note 24)
Other payables to Public Administrations (Note 24)
Customer advances (Note 16)
Remuneration payable
Other payables
2020
2019
1,055,643
1,157,753
8,939
316,883
403,626
69,841
418,800
14,951
287,993
380,695
71,970
456,598
2,273,732
2,369,960
With regard to the Spanish Institute of Accounting and Accounts Auditing (ICAC) Resolution of 29
January 2016, issued in compliance with the mandate of the Second Additional Provision of Law
31/2014, of 3 December, which amends the Third Additional Provision of Law 15/2010, of 5 July,
establishing measures to combat late payment in commercial transactions, in 2019 the Group op-
erated primarily in Spanish territory with public clients including the central government, regional
government, local corporations and other public bodies, which settle their payment obligations in
periods exceeding the statutory limit in Public Sector Contract legislation, and in Law 3/2004, of
29 December 2004, establishing measures to combat late payment in commercial transactions.
It should be noted that the provisions of section 5 of article 228 of the current Consolidated Text of
the Public Sector Contract Law (CTPSCL) apply to the works and supplies derived from contracts
signed by the Group with the different Public Administrations.
Due to such circumstances and in order to adapt the Group’s financial policy to reasonable effi-
ciency levels, the usual payment periods to suppliers were maintained in 2020 in the sectors in
which the Group operates.
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The Group’s payment policy to suppliers, indicated in the foregoing two paragraphs, hence finds
support in: a) Payments to suppliers under agreements entered into by the Group with the public
authorities, pursuant to article 228.5 of the CTPSCL, and b) Payments to remaining suppliers un-
der the Second transitional provision of Law 15/2010, and, where appropriate, that provided for
in article 9 of Law 3/2004, which excludes from the abusive nature the “deferral of the payment
for objective reasons” taking into consideration, in both cases a) and b) the usual payment period
in the sectors in which the Group operates.
The Group also acknowledges and pays suppliers, always by mutual agreement, any late-pay-
ment interest agreed in the contracts, providing negotiable payment methods accompanied by
exchange procedures. Such agreements, aside from being expressly provided for, as mentioned,
in the CTPSCL, are admissible under Directive 2011/7/EU, of 16 February, of the European Par-
liament and the Council.
The Group has also entered into confirming line and similar contracts with different financial in-
stitutions to facilitate early payment to suppliers. In accordance with these contracts, a supplier
may exercise its collection rights against the Group companies or entities and obtain the invoiced
amount, less the financial costs for discount and fees applied by those entities and, in some
cases, amounts withheld as guarantee. The total amount of the lines contracted stood at 91,583
thousand euros at 31 December 2020 (90,525 thousand euros at 31 December 2019), and the
balance available was 7,830 thousand euros at 31 December 2020 (29,454 thousand euros at
31 December 2019). The above-mentioned contracts do not modify the main payment conditions
(interest rate, deadline or amount), so they are classified as commercial liabilities.
In compliance with the aforementioned Resolution, a table is set out below with information on
the average payment period to suppliers for companies located in Spain, for those commercial
operations accrued from the date of entry into force of the aforementioned Law 31/2014, i.e. 24
December 2014:
Average payment period to suppliers
Ratio of paid operations/transactions
Ratio of operations/transactions pending payment
Total payments made
Total payments pending
2020
Días
104
97
126
2019
Días
101
94
124
Amount
1,429,479
445,894
Amount
1,600,334
446,476
23. Derivative financial instruments
In general, financial derivatives entered into by the FCC Group receive the accounting treatment
provided for in the regulations for accounting hedges set forth in note 3) of this Report, that is,
they are operations that hedge real positions.
The main financial risk hedged by the FCC Group through derivative instruments relates to the
fluctuations in floating interest rates to which Group company financing is tied.
At 31 December 2020, the fully consolidated FCC Group companies had entered into hedging
operations with derivative instruments in the overall notional amount of 335,672 thousand euros
(807,271 thousand euros at 31 December 2019), mainly materialised in interest rate swaps (IRS),
where Group companies pay fixed rates and receive floating rates.
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Below is a breakdown of the hedges and their fair value for companies consolidated by global
integration:
Companies consolidated by global integration
FCC Medio Ambiente S.A.U.
RE3 Ltd.
FCC Energy Ltd.
FCC Wrexham PFI Ltd.
FCC Wrexham PFI (Phase II) Ltd.
FCC (E&M) Ltd.
Integraciones Ambientales de Cantabria, S.A.
Aquajerez
Gipuzkoa Ingurumena
Qatarat
Aquos El Realito S.A. de C.V
Cedinsa Eix. Llobregat
Cedinsa Eix. Transversal
Cedinsa d’Aro
Total global integration
Derived type
Hedging type
% hedge
Notional
31.12.20
Notional
31.12.19
Valuation at
31.12.20
Appreciation at
31/12/19
Due date
IRS
IRS
Option
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
IRS
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
FE
57%
22%
57%
82%
100%
100%
95%
50%
50%
50%
50%
50%
50%
75%
70%
30%
38%
38%
100%
100%
100%
100%
70%
80%
85%
8,211
3,448
8,211
18,721
9,681
60,446
17,508
7,254
7,254
40,826
40,826
3,830
22,708
18,145
9,378
9,378
11,610
480
4,816
32,941
335,672
9,185
3,582
9,185
21,415
10,646
66,450
19,538
8,226
8,226
21,336
21,336
44,495
44,495
5,926
24,175
19,761
9,715
9,715
117,013
301,271
31,580
807,271
(770)
(68)
108
(4,136)
(1,179)
(7,476)
(5,250)
(998)
(1,004)
(4,385)
(4,475)
(158)
(1,143)
(503)
(956)
(950)
(790)
(6)
(206)
(3,847)
(1,002)
02/04/2024
(81)
31
(4,406)
(748)
(4,765)
(5,402)
(859)
(867)
28
28
(2,064)
(2,186)
(339)
(721)
(91)
(668)
(642)
(37,113)
(99,078)
(10,065)
02/04/2024
02/04/2024
30/09/2029
17/06/2038
17/06/2038
30/09/2032
30/09/2032
30/09/2032
06/05/2020
06/05/2020
06/05/2042
06/05/2042
31/12/2022
15/07/2031
15/07/2031
30/06/2034
30/06/2034
07/06/2026
25/03/2021
28/11/2024
22/01/2025
01/05/2033
30/10/2033
01/05/2033
(38,192)
(171,010)
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At 31 December 2020, this section does not include derivatives of the Cedinsa subgroup compa-
nies whose assets and liabilities have been transferred and held for sale (Note 4).
It also shows the maturities of the notional amount for the hedging operations entered into as at
31 December 2020 and broken down in the previous table:
Companies consolidated by
global integration
2021
2022
2023
2024
2025 and
beyond
23,759
23,786
22,571
33,724
231,831
At 31 December 2020, the total notional hedging of companies consolidated by the equity meth-
od amounted to 186,256 thousand euros (623,984 thousand euros at 31 December 2019) and
fair value was (24,874) thousand euros - (175,222) thousand euros at 31 December 2019. The
derivatives of the concessionaires detailed in Note 4 are not included in this section.
At 31 December 2020, the hedging of derivatives of companies whose assets and liabilities have
been transferred as held for sale (Note 4) had a total notional of 844,043 thousand euros and a
fair value of (294,109) thousand euros. The details of the hedges and their fair value are presented
below:
Cedinsa Eix. Llobregat
Cedinsa Eix. Transversal
Cedinsa d’Aro
Total integración global
Urbs Iudex et Causidicus, S.A.
Concessió Estacions Aeroport L9
Total método de la participación
Derived type
Hedging type
% hedge
Notional
31.12.20
Notional
31.12.19
Valuation at
31.12.20
Appreciation at
31/12/19
Due date
IRS
IRS
IRS
IRS
IRS
EF
EF
FE
EF
EF
70%
80%
85%
100%
Various
114,730
291,800
30,943
437,473
59,432
347,138
406,570
117,013
301,271
31,580
449,864
61,676
353,728
415,404
(36,561)
(96,946)
(9,777)
(143,284)
(39,666)
(111,159)
(37,113)
(99,079)
(10,065)
(146,257)
01/05/2033
30/10/2033
01/05/2033
(42,579)
30/12/2033
(105,640)
23/12/2033
(150,825)
(148,219)
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The following table details the financial derivatives that companies consolidated using global in-
tegration have entered into for hedging purposes, but which cannot be considered as such for
accounting purposes:
Derived type
Hedging type
Notional
31.12.20
Notional
31.12.19
Appreciation
at 31.12.20
Appreciation
at 31.12.19
Due date
Fully consolidated companies
FCC Environment CEE GmbH
Total global integration
FX SWAP
ESP
19,938
19,938
13,255
13,255
(208)
(208)
(312)
(312)
22/11/2023
Below are the maturities of the notional amount of those derivatives that do not meet the hedging
conditions:
Notional maturity
2021
2022
2023
2024
2025 and
beyond
Companies consolidated by
global integration
16,160
–
–
3,778
–
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The following table provides a reconciliation of the change in the valuation of the derivatives, differ-
entiating hedging from speculative and identifying those amounts that have been recorded in the
attached consolidated income statement and those that have been recorded in “Other compre-
hensive income” of the consolidated statement of recognised income and expense:
Balance at
1 January 2019
Profit/loss from
valuation of reserves
Profit/loss from
valuation of results
Transfers to the profit
and loss statement
Inefficiency
of the hedging
Other changes
Balance at
31 December 2019
(171,010)
(312)
(30,907)
–
–
175
16,149
–
–
–
147,576
(71)
(38,192)
(208)
Balance at
1 January 2018
Profit/loss from
valuation of reserves
Profit/loss from
valuation of results
Transfers to the profit
and loss statement
Inefficiency of the
hedging
Other changes
Balance at
31 December 2018
(13,204)
(3,150)
123
–
–
(62)
2,504
–
(4,331)
–
(156,102)
2,900
(171,010)
(312)
2020
Hedging
Speculative
2019
Hedging
Speculative
“Other movements” for fiscal year 2020 basically includes the reclassification to liabilities held for
sale of the Cedinsa subgroup (Note 4).
out Water and Environmental Services in the United Kingdom and the FCC Environment Group in
Austria also pay taxes in their own consolidated tax group.
24. Tax matters
This Note describes the headings in the accompanying consolidated income statement relating
to the tax obligations of each of the Group companies, such as deferred tax assets and liabilities,
tax receivables and payables and the corporation tax expense.
In accordance with file 18/89, the Parent Company of the FCC Group is subject to the Corpora-
tion Tax consolidation regime, with all the companies that meet the requirements established by
the tax legislation being integrated into said regime. In addition, part of the subsidiaries that carry
In May 2019, the tax authorities completed a procedure to recover state aid, arising from Euro-
pean Commission Decision 2015/314/EU, of 15 October 2014, relating to the tax amortisation of
financial goodwill from the indirect acquisition of foreign holdings. This procedure aims to adjust
the tax incentives applied by the company and FCC Group in prior years as a result of the acqui-
sition of the Alpine, FCC Environment (formerly the WRG Group) and FCC CEE (formerly the ASA
Group) Groups. The Tax Administration filed a claim against the Group in 2019 for a total amount
(tax portion and late payment interest) of 111 million euros. FCC has settled this tax debt but has
also filed an economic-administrative appeal against it, which is pending resolution. The Group, in
accordance with the opinion of its legal advisors, considers it probable that the amounts already
paid under such recovery procedure will be returned. Within the framework of this procedure,
the Tax Administration has recognised a negative tax base in favour of the FCC Group that has
generated an activated tax credit for the amount of 63.2 million euros.
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In June 2020, the Tax Administration announced that corporation tax checks were to be carried
out on the tax group headed by FCC, SA between 2015 and 2017, on VAT from June 2016 to
December 2017 for FCC, S.A., FCC Construcción, FCC Aqualia, FCC Industrial e Infraestructuras
Energéticas and Cementos Portland Valderrivas, and withholdings/payments on account for work
income and professional income corresponding to the period from June 2016 to December 2017
for FCC, S.A., FCC Construcción and FCC Aqualia, and between January and December 2017
in the case of Cementos Portland Valderrivas. In relation to the business years and taxes open
for inspection, contingent tax liabilities could arise, the amount of which cannot be objectively
quantified at present as the proceedings are at a very early stage. However, Group management
considers that the liabilities resulting from this situation would not have a significant effect on the
Group’s equity.
a) Deferred tax assets and liabilities
Deferred tax assets are mainly due to provision made, losses and impairment of assets held for
sale, non-deductible financial expenses that will be tax-deductible against the Corporation Tax
base in future years, deductions and tax bases pending application/offsetting, and differences
between accounting and tax depreciation.
Specifically, the FCC Group has recorded deferred tax assets corresponding to the negative tax
bases and deductions pending application, considering that there are no doubts about their re-
coverability, for an amount of 345,095 thousand euros (330,152 thousand euros at 31 December
2019). The increase in tax credits for tax loss carryforwards and deductions pending application,
compared to 2019, is mainly due to a higher activation of tax loss carryforwards and deductions
pending application in tax group 18/89 (FCC).
The Group Management has evaluated the recoverability of deferred tax assets by estimating
future tax bases, concluding that there is no doubt surrounding their payment.
The estimates used to assess the recoverability of deferred tax assets are based on the estimate
of future taxable bases, based on the year’s consolidated accounting result before the estimated
tax from continuing operations, to which the corresponding permanent and temporary differences
that are expected to take place each year have been adjusted.
Pursuant to profit projections, it has been estimated that there will be sufficient positive tax bases
to substantially absorb both the tax loss carryforwards recognised in the balance sheet and the
deferred tax assets within an estimated period of around fourteen years.
The deferred tax liabilities recorded by the group mainly originate from:
– The differences between the tax and accounting valuation due to the fair value of assets de-
rived from the corporate acquisitions in the different segments of the Group’s activity, as indi-
cated in notes 3.b). In general, these liabilities will not entail any future cash outflows because
they revert at the same rate as the amortisation of revalued assets.
– From the tax amortisation of leasing contracts and that of certain items of property, plant and
equipment under accelerated tax amortisation plans, and from the unrestricted amortisation
on the investments made, which allows them to be fully amortised as long as certain require-
ments are fulfilled.
– From the profits of temporary joint ventures that will be included in the tax base of the following
year’s Corporation Tax.
The Group, pursuant to the provisions of IAS 12 “Corporation Tax”, has offset the deferred tax
assets and liabilities corresponding to the entities, which, in line with the applicable tax legislation,
have the legal right to offset these assets and liabilities and will be settled for their net amount
based on the corresponding time frames. At 31 December 2020, deferred tax assets and lia-
bilities were offset in the amount of 123,695 thousand euros (202,427 thousand euros at 31
December 2019).
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The following table shows the breakdown of the main deferred tax assets and liabilities prior to
offsetting:
Below are the expected maturity dates of the deferred taxes:
285
ASSETS
2020
2019
Tax
Group
Spain
Rest
TOTAL
Tax
Group
Spain
Rest
TOTAL
Provisions and impairments
119,011
40,219
159,230
134,897
49,739
184,636
Tax loss carryforwards
332,327
12,768
345,095
316,989
13,163
330,152
Non-deductible financial expense
21,817
5,626
27,443
51,239
72,293
123,532
Pension plans
455
2,214
2,669
459
1,375
1,834
Amortisation/depreciation
differences
Other
Total
12,514
9,822
22,336
13,405
8,124
21,529
112,002
33,615
145,617
107,910
32,773
140,683
598,126
104,264
702,390
624,899
177,467
802,366
2020
2019
Tax
Group
Spain
Rest
TOTAL
Tax
Group
Spain
Rest
TOTAL
60,907
68,524
129,431
62,402
136,605
199,007
1,698
89,242
90,940
5,514
75,555
81,069
11,914
6,332
18,246
11,302
5,371
16,673
LIABILITIES
Fair value assets from allocation
of acquisition differences (IFRS 3)
Accelerated amortisation/
depreciation
Profit/(loss) Temporary Joint
Ventures
Tax impairment of goodwill
Deferred tax of conversion
differences
2021
2022
2023
2024
2025 and
beyond
Total
Assets
Liabilities
67,374
19,936
71,600
21,606
57,760
16,647
50,846
17,211
454,810
702,390
197,088
272,488
The Group has tax credits corresponding to negative tax bases (NTBs), which have not been
activated in the financial statements on the basis of a prudent criterion, for the amount of 183.3
million euros. The estimated due date of the tax credits for non-activated NTBs is as follows:
Maturity time frame
From 2021 to 2025
From 2026 to 2030
From 2031 onwards
No maturity
Tax credits
(millions of euros)
33.5
19.6
45.1
85.1
183.3
Meanwhile, the Group has non-activated tax credits corresponding to tax deductions that have
been accredited and are pending application for a total amount of 9.6 million euros.
b) Public administrations
The breakdown at 31 December 2020 and 2019 of the current assets and liabilities included
under the “Public administrations” heading is as follows:
1,175
–
–
–
1,175
3,342
–
–
–
–
3,342
–
Current assets
Financial leasing
4,837
1,993
6,830
4,889
2,026
6,915
Other
Total
19,667
6,199
25,866
24,852
12,881
37,733
100,198
172,290
272,488
112,301
232,438
344,739
Value Added Tax receivable (Note 16)
Current tax
Other tax items (Note 16)
2020
108,169
101,235
61,896
271,300
2019
87,291
72,664
54,892
214,847
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Current liabilities
Value Added Tax payable (Note 22)
Current tax (Note 22)
2020
2019
93,616
8,939
69,518
14,951
Social Security payable and other tax items (note 22)
223,268
218,475
Deferrals
257
84
326,080
303,028
c) Corporation tax expense
The corporation tax expense incurred in the year amounted to 86,273 thousand euros (149,067
thousand euros in 2019), as detailed in the accompanying consolidated income statement. Below
is the reconciliation between expense and accrued tax payment:
2020
2019
Consolidated accounting profit for the year before taxes from continuing
activities
Permanent differences
Adjusted consolidated accounting profit/(loss) of continuing activities
Temporary differences
– Arising in the year
– Arising in prior years
Profit/(loss) directly attributed to Equity
Consolidated tax base of continuing activities (taxable profit/(loss)
Additions
74,606
Reductions
(123,814)
179,277
112,651
(96,207)
(286,239)
429.873
(49,208)
380,665
83,070
(173,588)
290,147
Additions
164,964
Reductions
(210,375)
176,825
113,617
(94,345)
(355,745)
488.990
(45,411)
443,579
82,480
(242,128)
283,931
From the previous table, given the magnitude of the amounts, it should be noted that the tax base
is the best estimate available at the date of preparing the accounts. The final amount to be paid
will be determined in the tax settlement that will be carried out in 2021, so the final settlement may
vary as explained in note 3.p) of this Report.
In 2019, permanent differences, as increases, include the amount of the impairment recorded in
the Uniland goodwill (note 7) amounting to 70,011 thousand euros.
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Below is the reconciliation of the expense for corporation tax:
25. Pension plans and similar obligations
Adjusted consolidated accounting profit/(loss) of continuing
activities
Profit tax
Tax credits and tax relief
Other adjustments
Corporation tax
2020
2019
380,665
443,579
(95,802)
(108,952)
3,585
5,944
1,490
(41,604)
(86,273)
(149,066)
In 2020 the assets and liabilities of the Cedinsa group were reclassified as non-current assets
held for sale and liabilities related to non-current assets held for sale respectively (Note 4),
contributing to the attached income statement a result before tax of 19,518 thousand euros,
and a tax on profits of (5,523) thousand euros.
The main components of the corporation tax, distinguishing between the current tax, i.e. tax cor-
responding to the current year and the deferred tax, the latter understood as the impact on profit/
(loss) of the origination or reversal of temporary differences that affect the amount of deferred tax
assets or liabilities recognised in the balance sheet, is as follows:
The Spanish Group companies have not generally established any pension plans to supplement
the social security pension plans. However, under the Consolidated Pension Plans and Pension
Funds Law, in those specific cases in which similar obligations exist, the companies externalise
pension and similar obligations to its employees.
The Parent Company has taken out insurance to cover death, permanent employment disability,
retirement bonuses and pensions and other concepts for some executive directors and company
officers. The contingencies that might give rise to compensation include the termination of the
employment relationship for any of the following reasons:
a) Unilateral decision of the company.
b) Dissolution or disappearance of the Parent for any reason, including mergers or disposals.
c) Death or permanent disability.
d) Other causes of physical or legal incapacitation.
e) Substantial modification of professional conditions.
Current tax
Deferred taxes
Corporation tax
2020
(71,412)
(14,861)
(86,273)
2019
(78,019)
(71,047)
(149,066)
f) Termination after reaching the age of 60, at the request of the officer and in agreement with
the company.
g) Termination after reaching the age of 65 at the officer’s sole discretion.
No new contributions were made in the form of premiums for this insurance in 2020 and 2019,
and 3,459 thousand euros were received in 2019 in the form of rebates on premiums previously
paid. As at 31 December 2020, the fair value of the premiums provided covers all the actuarial
obligations entered into.
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In accordance with article 38.5 of the Bylaws, Fomento de Construcciones y Contratas, S.A.
holds a civil liability insurance that covers Directors and Managers. This is a collective policy cov-
ering all the Group’s executives, and in 2020 a premium of 1,474 thousand euros was paid over
(489 thousand euros in 2019).
Fomento de Construcciones y Contratas, S.A. has taken out an accident insurance policy for
its directors, encompassing both the exercise of their functions and their private life, comprising
coverage in the event of death, total and absolute permanent incapacity and severe disability. The
premium paid in the year amounts to 6 thousand euros (7 thousand euros in 2019).
Certain foreign companies belonging to the Group assumed the commitment of supplementing
the retirement and other similar commitments of its employees through defined benefit plans.
Independent actuarial experts measured the commitments accrued and, where appropriate, the
assets used, through generally accepted actuarial methods and techniques included, where ap-
propriate, in the accompanying consolidated balance sheet under the “Non-current provisions”
heading within “Non-current employee benefit obligations”, in line with the criteria set forth by
IFRSs (Note 19).
The main benefits referred to in the preceding paragraph are the following:
– The companies in the FCC Environment (UK) group that are resident in the United Kingdom
incorporate the benefits undertaken with their employees, represented by assets, in the ac-
companying consolidated balance sheet in accordance with the plans to pay the benefits,
whose fair value amounts to 62,478 thousand euros (59,501 thousand euros as of 31 Decem-
ber 2019), with an actuarial value of the accrued obligations amounting to 70,758 thousand
euros (64,939 thousand euros as of 31 December 2019). The net difference represents a
liability of 8,280 thousand euros (5,438 thousand euros as of 31 December 2019), which has
been included in the accompanying consolidated balance sheet as non-current provisions.
The “Staff expenses” heading of the accompanying consolidated profit and loss statement
includes a cost of 420 thousand euros (367 thousand euros as of 31 December 2019) for the
net difference between the cost of services and returns on assets affected by the plan. The
average actuarial rate used was 1.5% (2.0% in 2019).
–
In 2019, Telford & Wrekin Services, Ltd., resident in the United Kingdom, settled the pension
plan that it had committed to in order to complement the retirement benefits of its employees.
In accordance with current international accounting regulations, the result of this settlement
must be recorded in the profit and loss statement, which meant recognising income of 6,730
thousand euros.
The year’s movement of the obligations and assets associated with pension plans and similar
obligations is detailed below:
2020
Actual performance of the current value of the obligation
FCC Environment
Group (UK)
Telford & Wrekin
Services
Balances of obligations at the beginning of the year
Cost of services for the current year
Interest costs
Contributions of the participants
Actuarial profits/losses
Exchange differences
Benefits paid during the year
Cost of past services
Settlements
Balance obligations at end of year
64,939
201
1,210
17
9,669
(3,484)
–
25
(1,819)
70,758
Actual performance of the fair value of affected assets
–
FCC Environment
Group (UK)
Telford & Wrekin
Services
Affected active balances at the beginning of the year
59,501
Expected return on assets
Actuarial profits/losses
Exchange differences
Contributions made by the employer
Contributions made by the participant
Benefits paid
Settlements
Balance of affected assets at the end of the year
1,116
5,202
(3,192)
1,754
16
(1,919)
–
62,478
–
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Actual performance of the current value of the obligation
Actual performance of the fair value of affected assets
289
Grupo FCC
Environment (UK)
Telford & Wrekin
Services
FCC Environment
Group (UK)
Telford & Wrekin
Services
8,280
–
Affected active balances at the beginning of the year
51,825
26,359
Net balance obligations less affected assets
t the end of the year
2019
Actual performance of the current value of the obligation
Balances of obligations at the beginning of the year
55,369
31,525
FCC Environment
Group (UK)
Telford & Wrekin
Services
Cost of services for the current year
Interest costs
Contributions of the participants
Actuarial profits/losses
Exchange differences
Benefits paid during the year
Settlements
Balance obligations at end of year
174
1,663
19
6,837
2,846
(1,969)
–
64,939
107
231
22
2,498
1,620
(270)
(35,733)
–
Expected return on assets
Actuarial profits/losses
Exchange differences
Contributions made by the employer
Contributions made by the participant
Benefits paid
Settlements
Balance of affected assets at the end of the year
1,566
3,631
2,663
1,861
19
(2,064)
–
59,501
193
1,025
1,355
–
22
(272)
(28,682)
–
Reconciliation of the actual performance of the obligation less the affected assets and the
balances effectively recognised in the balance sheet
Saldo neto obligaciones menos activos
afectos al final del ejercicio
Grupo FCC
Environment (UK)
Telford &Wrekin
Services
5,438
–
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26. Guarantee commitments to third parties
and other contingent liabilities
At 31 December 2020, the Group incurred contingent liabilities, mainly guarantees to third parties,
mostly before public bodies and private clients, to secure the correct performance of the urban
sanitation works and contracts, for 3,833,058 thousand euros (3,941,877 thousand euros at 31
December 2019).
Additionally, the Group has granted letters of indemnity to certain directors with management
and administration duties at subsidiaries, without the any risks for which provisions should be
set aside identified during the preparation of these financial statements. Such letters of indemnity
are a common practice in multinational companies that expatriate employees due to their double
status as company employees and executives of the subsidiary, and are of subsidiary execution
in the event that the respective directors’ policies do not fully cover the contingency. Letters of
indemnity were granted to five executives in relation to the businesses that were maintained by
the Group in Alpine.
Fomento de Construcciones y Contratas, S.A. and the Group’s subsidiaries are defendants in
litigation concerning liability for different activities carried out by the Group in the performance of
contracts awarded and for which provisions have been set aside (Note 19). These lawsuits, which
in number may be significant, are for insignificant amounts when considered on a one-by-one
basis. Therefore, give proven experience and existing provisions, the resulting liabilities would not
significantly affect the Group’s assets.
The possible financial effects of the main contingent liabilities derived from the bankruptcy of the
Alpine subgroup would be the cash outflows indicated in the respective lawsuits detailed in Note
19 of this report.
On 15 January 2015, the Competition Chamber of the National Markets and Competition Com-
mission issued a decision on file S/0429/12, for an alleged violation of Article 1 of Law 15/2007
on the Defence of Competition. This ruling affects various companies and associations in the
waste sector, including Fomento de Construcciones y Contratas, S.A. and other companies that
also belong to FCC Group. The Group has filed an administrative appeal before the Spanish
National Appellate Court. At the end of January 2018, notification was received of the decisions
handed down by the Spanish National Appellate Court, upholding the administrative appeals filed
by Gestión y Valorización Integral del Centro S.L. and BETEARTE, both FCC Group investees,
against the CNMV ruling imposing various penalties for alleged collusive practices. In both de-
cisions, the argument put forward by these companies that no single, on-going breach existed
was upheld. In April 2018, we were notified of the agreement initiating new legal proceedings for
the same conduct investigated in the previous proceedings forming the scope of the upholding
decision, commencing an 18-month examining period. In September 2019, an agreement was
issued suspending these legal proceedings until the National Court’s decision on appeals filed by
other companies that had been penalised.
In April 2019, the National Court issued a judgment in relation to the price of EUR 6 per share
applied in the takeover bid made in 2017 by Fomento de Construcciones y Contratas, S.A. for
Cementos Portland Valderrivas, S.A., with the National Securities Market Commission (CNMV)
asking for the price to be recalculated. This ruling was appealed by the Group and also by the
CNMV, as it did not agree with the contents. In November 2020, the Supreme Court issued a
ruling, now firm, favourable to FCC and the CNMV, revoking the ruling of the National Court and
validating the processing of the takeover bid and the price set.
As a result of an internal investigation in May 2019 in application of its compliance policy and
regulations, the Group has become aware of the existence of payments between 2010 and 2014
amounting to USD 82 million that might not be justified and may therefore be illegal. These acts
were uncovered as a result of application of the procedures in the FCC Group’s compliance rules.
The company has informed prosecutors in Spain and Panama about these acts, and has been
providing the utmost cooperation since then to clarify what happened, applying the “zero toler-
ance” anti-corruption principle that permeates FCC’s entire Compliance System.
In the context of this cooperation, on 29 October 2019, the National Court’s Central Court of
Instruction No. 2 resolved to investigate FCC Construcción, S.A. and two of its subsidiaries, FCC
Construcción América, S.A. and Construcciones Hospitalarias, S.A. in the context of Preliminary
Measures 34/2017. Proceedings are still ongoing and it is not yet possible to determine whether
charges will eventually be filed against these companies, and, if so, what their scope will be.
These actions may therefore have a financial impact, although we do not have the information
needed to qualify this impact.
Additionally, the 2018 agreement for the sale of the 49% FCC Aqualia holding envisages certain
variable prices that depend on the resolution of contingent proceedings. The Group, therefore,
has not recognised any asset given its contingent nature; likewise, it has not recognised any
liability for claims that may arise against its interests, as it is not considered probable that signifi-
cant losses will be incurred and given that their value is considered insignificant in relation to the
transaction price.
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Also, as part of the aforementioned sales transaction, FCC Topco S.a.r.l. and its subsidiary FCC
Midco, S.A. were constituted, contributing shares representing 10% of the Group’s shares in
FCC Aqualia to the latter. These shares have been pledged as a guarantee of certain obligations
assumed by the Group before FCC Aqualia, mainly in relation to the repayment of the loan that
the latter has granted to the Parent Company of the Group for the amount of 806,479 thousand
euros. At the date of authorisation for issue of these financial statements, the Group believes that
there is no risk that these guarantees will be enforced.
The Group is involved in other lawsuits and legal procedures aside from those already described
that it considers will not generate significant cash outflows.
The shareholding of Group companies in jointly controlled operations managed through joint ven-
tures, joint ownership, participation accounts and other entities of similar legal characteristics
means that participants must share joint and several liability with respect to the activity carried on
(note 13).
In relation to the guarantees received, it should be noted, in general, that the Group only receives
guarantees in relation to amounts paid as advances for the purchase of highly specialised equip-
ment that has been ordered, mainly in the Construction and Water segments, for a non-significant
amount as a whole. The Group has not obtained any significant assets as a result of the guaran-
tees enforced in its favour or released.
27. Income and expenditure
a) Operating income
The Group records operating income under the “Revenue” heading, including revenue from interest
on the collection rights of the concessions financial model under IFRIC 12 for 38,269 thousand eu-
ros at 31 December 2020 (33,200 thousand euros at 31 December 2019), except for work carried
out for own fixed and non-current assets and other operating income.
Note 28 “Information by activity segments” shows the contribution of the activity areas to the con-
solidated revenue.
Operating income from performance obligations met or partially met in previous years was recog-
nised in 2020 for 35,327 thousand euros (55,795 thousand euros at 31 December 2019), mainly
in the Construction segment.
In 2020, 229,065 thousand euros (156,342 thousand euros at 31 December 2019) were recog-
nised as revenue, previously recorded as advance payments made by clients and work certified
in advance (Notes 16 and 22) that were included as liabilities under “Trade and other accounts
payable”, mainly in the Construction segment.
The breakdown of the other operating income for 2020 and 2019 is as follows:
Income from sundry services
CO2 emission rights (Note 29)
Reimbursement from insurance compensation
Grants related to income
Other income
2020
115,526
58,909
6,782
18,130
93,958
2019
85,255
5,776
5,742
21,424
96,130
293,305
214,327
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“Income from sundry services” mainly includes additional services derived from construction con-
tracts or provision of services not included in the main contracts and income derived from the
provision of technical assistance to entities accounted for using the equity method. The “Other
income” heading mainly includes income from leases when the Group acts as lessor in operating
leases and provision excesses.
c) Staff costs
Below is a breakdown of staff expenses for 2020 and 2019:
At the end of 2020, the Group has outstanding execution obligations, mainly from the provision of
services in the Environmental Services segment, and derived from construction contracts, mainly
in the Construction and Water segments, for 14,434,994 thousand euros expected to be recog-
nised as income according to the following schedule:
Wages and salaries
Social security contributions
Other staff costs
2020
2019
1,498,269
1,477,635
432,248
40,593
423,082
25,017
1,971,110
1,925,734
up to 1 year
2 to 5 years
more than
5 years
Total
Environmental Services
1,310,559
3,619,584
4,254,122
9,184,265
Construction
1,602,978
3,552,796
Integrated Water Management
81,844
13,111
–
–
5,155,774
94,955
Information regarding the number of employees and their distribution by functional levels and gen-
der is provided in the Statement of Non-Financial Information that forms part of the Management
Report that accompanies these financial statements.
d) Impairment and gains/(losses) on disposal of fixed and non-current
2,995,381
7,185,491
4,254,122
14,434,994
assets
b) Procurements
The breakdown of the balance of the impairments and profit/(loss) due to the disposal of fixed and non-
current assets in 2020 and 2019 is as follows:
The breakdown of the balance of supplies and other external expenses as at 31 December 2020
and 2019 is as follows:
Subcontracting and work performed by other companies
Purchases and procurements
2020
2019
1,397,896
902,346
1,313,848
1,025,714
2,300,242
2,339,562
Impairment of the commercial fund (note 7)
Depreciation and amortisation of other property, plant and equipment
and intangible assets (endowment) / reversal (notes 7 and 8)
Profit/(loss) from disposals of other tangible and intangible assets
Other concepts
2020
2019
–
3,955
2,357
558
6,870
(70,011)
4,325
5,571
351
(59,764)
Impairment of the goodwill of Corporación Uniland was booked in the amount of 70,011
thousand euros in 2019 (Note 7).
The amount of this heading is shown in the accompanying consolidated statement of cash flows
under the heading “Other adjustments of profit/(loss) (net)”.
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e) Financial income and finance cost
f) Other financial profit/(loss)
The breakdown of the financial income, according to the assets that generate said income, in
2020 and 2019 is as follows:
The breakdown of other financial expenses in 2020 and 2019 is as follows:
Financial assets at fair value with changes in other
comprehensive income
Financial assets at amortised cost
Other financial income
2020
325
16,430
16,715
33,470
2019
4,693
15,670
30,704
51,067
Change in fair value of current financial instruments
Exchange differences
Impairment and profits/losses on disposal of financial
Instruments
2020
175
(51,259)
27
2019
(10.051)
14,814
(3,308)
(51,057)
1,455
“Other financial income” mainly includes the impact of financial costs agreed in relation to the
deferred payment for work in the Construction segment in the amount of 6,316 thousand euros
(22,067 thousand euros at 31 December 2019) and late-payment interest concerning conces-
sionaires in the Cedinsa subgroup, in the amount of 3,070 thousand euros.
The breakdown of financial expenses in 2020 and 2019 is as follows:
Debt instruments and other marketable securities
Credits and loans
Debts with limited recourse for project financing
Creditors from leases
Assignment of credits
Financial update of provisions and other liabilities
Other financial expenses
2020
53,761
41,689
24,869
12,644
9,691
23,704
21,071
2019
39,800
46,804
18,946
13,037
27,519
20,101
29,580
187,429
195,787
The decrease in exchange differences is mainly due to devaluation of the US dollar and the Mex-
ican peso.
The amount of this heading is shown in the accompanying consolidated statement of cash flows
under the heading “Other adjustments of profit/(loss) (net)”.
g) Profits/(losses) of companies accounted for by the equity method
The breakdown for this heading is as follows:
2020
2019
Profits/(losses) for the year (Note 13)
61,514
78,946
Joint ventures
Associates
Profits/(losses) on disposals and others
38,169
23,345
31,815
47,131
635
62,149
41,695
120,641
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The line “Profit from disposals and others” includes, in the year 2020, a positive result of 635
thousand euros from the takeover of the company Aquos El Realito, SA de CV (Notes 5 and 12),
due to the fair value of the stake prior to control and due to the allocation of the results of the
valuation adjustments. In 2019 this line mainly includes the profit from the takeover of the Cedinsa
subgroup (Notes 5 and 12) for a positive amount of 36,588 thousand euros from the recognition
at fair value of the shareholding prior to the takeover and from the allocation to results of the
valuation adjustments of derivative financial instruments recorded at the date of the takeover. It
also includes the operation carried out in Shariket Tahlya Mostaganem, S.p.a. and Shariket Miyeh
Djinet, S.p.a. by virtue of which they ceased to be consolidated under the equity method (Notes 5
and 12), which had a negative impact of 6,122 thousand euros due to the fair value of the share-
holding prior to the change in consolidation method and for the allocation to results of valuation
adjustments due to conversion differences (Note 18).
h) Profit/(loss) attributable to non-controlling interests
At 31 December 2020, the result attributed to minority interests amounted to 81,421 thousand
euros, mainly due to the amount corresponding to the 49% held by the minority shareholder of
the Aqualia subgroup, a segment that contributed 67,883 thousand euros at 31 December 2020
(66,966 thousand euros at 31 December 2019) (Note 28).
28. Information by activity segments
a) Segmentos de actividad
The activity segments presented coincide with the business areas, as described in Note 1. The
information for each segment, reflected in the tables presented below, has been prepared in
line with the management criteria established internally by the Group’s management, which are
consistent with the accounting policies adopted to prepare and present the Group’s consolidated
financial statements.
The “Corporation” column includes the activity of the functional areas that carry out operational
support tasks and the exploitation of the aforementioned companies whose management is not
attached to any of the business areas, and which primarily carry on real estate business.
“Eliminations” includes the elimination of operations between different activity segments.
Income statement by segments
In particular, the information reflected in the following tables includes, as profit/(loss) for 2020 and
2019:
– All operating income and expenses of subsidiaries and joint management contracts that cor-
respond to the activities carried out by the segment.
–
Interest income and expenses generated on the segment’s assets and liabilities, dividends
and profits and losses on the sale of the segment’s financial investments.
– The share in the profits/(losses) of the companies accounted for under the equity method.
– Corporation tax payable corresponding to the transactions carried out by each segment.
–
“Contribution to the profit/(loss) of the FCC Group” contains the contribution of each area to
the equity attributed to the shareholders of Fomento de Construcciones y Contratas, S.A.
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Total Group
Environmental
Services
Integrated
Water
Management
Construction
Cement
Concessions
Corporation
Eliminations
2020
Revenue
6,158,023
2,888,150
1,188,348
1,610,990
From external customers
6,158,023
2,882,658
1,182,248
1,552,026
From transactions with other segments
Other income
From external customers
From transactions with other segments
Operating expenses
Amortisation of fixed assets and allocation of grants for non-
financial and other assets
Other operating income/(losses)
Operating Profit/(Loss)
Percentage of turnover
Financial income
Finance cost
Miscellaneous financial results
Profit/(loss) companies accounted for using the equity method
Profit/(loss) before tax from continuing operations
Income tax
Profit/(loss) for the year from continuing operations
Consolidated profit/(loss) for the year
Non-controlling interests
Profit attributable to the parent company
Contribution to the profit/(loss) of the FCC Group
–
327,161
327,161
–
5,492
91,180
89,983
1,197
(5,437,685)
(2,528,479)
(477,342)
(233,826)
2,583
(1,368)
572,740
215,657
9,30%
33,471
(187,430)
(51,057)
62,149
429,873
(86,273)
343,600
343,600
81,421
262,179
262,179
7,47%
3,403
(74,457)
(4,478)
15,045
155,170
(27,859)
127,311
127,311
6,148
121,163
121,163
6,100
60,833
59,871
962
(966,252)
(117,776)
2,257
167,410
14,09%
37,940
(47,405)
(2,525)
1,707
157,127
(33,338)
123,789
123,789
67,883
55,906
55,906
58,964
189,726
73,214
116,512
(1,747,133)
(34,718)
2,071
20,936
1,30%
24,075
(23,011)
(42,819)
922
(19,897)
1,261
(18,636)
(18,636)
481
(19,117)
(19,117)
382,639
376,232
6,407
64,717
64,679
38
(307,503)
(32,929)
(116)
106,808
27,91%
705
(10,069)
(1,368)
(2,607)
93,469
(21,858)
71,611
71,611
2,370
69,241
69,241
123,532
123,532
–
10,911
10,909
2
(39,812)
(39,069)
(166)
55,396
44,84%
10,685
(33,969)
88
20,573
52,773
(9,186)
43,587
43,587
4,539
39,048
39,048
98,355
41,327
57,028
64,821
28,505
36,316
(137,527)
(19,205)
9
6,453
6,56%
163,122
(53,154)
71,678
26,510
(133,991)
–
(133,991)
(155,027)
–
(155,027)
289,021
181
(104)
80
(0,06%)
(206,459)
54,635
(71,633)
(1)
214,609
(223,378)
4,751
219,360
219,360
–
219,360
219,360
(44)
(223,422)
(223,422)
–
(223,422)
(223,422)
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2019
Revenue
From external customers
From transactions with other segments
Other income
From external customers
From transactions with other segments
Operating expenses
Amortisation of fixed assets and allocation of grants for non-
financial and other assets
Other operating income/(losses)
Operating Profit/(Loss)
Percentage of turnover
Financial income
Finance cost
Miscellaneous financial results
Profit/(loss) companies accounted for using the equity method
Profit/(loss) before tax from continuing operations
Income tax
Profit/(loss) for the year from continuing operations
Consolidated profit/(loss) for the year
Non-controlling interests
Profit attributable to the parent company
Contribution to the profit/(loss) of the FCC Group
Total Group
Environmental
Services
6,276,231
2,915,243
6,276,231
2,907,665
–
264,173
264,173
–
7,578
88,188
87,453
735
(5,514,601)
(2,510,885)
(449,109)
(237,365)
Integrated
Water
Management
1,186,881
1,181,117
5,764
60,440
60,110
330
(965,600)
(106,360)
(65,080)
511,614
8,15%
51,067
(195,787)
1,455
120,641
488,990
(149,066)
339,924
339,924
73,220
266,704
266,704
3,286
258,467
8,87%
6,573
(78,795)
(2,992)
17,719
200,972
(40,152)
160,820
160,820
4,785
156,035
156,035
4,885
180,246
15,19%
37,579
(45,800)
289
(2,625)
169,689
(46,149)
123,540
123,540
66,996
56,544
56,544
Construction
Cement
Concessions
Corporation
Eliminations
1,719,330
1,666,761
52,569
97,210
90,098
7,112
(1,716,345)
(33,327)
10,481
77,349
4,50%
26,300
(26,428)
10,442
17,919
105,582
(35,078)
70,504
70,504
560
69,944
69,944
413,213
405,829
7,384
15,214
15,141
73
(342,048)
(35,357)
(71,040)
(20,018)
(4,84%)
2,013
(11,391)
885
(10,098)
(38,609)
(7,049)
(45,658)
(45,658)
1,355
(47,013)
(47,013)
49,818
49,818
–
6,627
6,627
–
(24,603)
(16,902)
(2,921)
12,019
24,13%
7,026
(10,314)
98
64,250
73,079
(3,706)
69,373
69,373
(476)
69,849
69,849
66,357
65,041
1,316
92,123
4,744
87,379
(124,042)
(20,103)
–
14,335
21,60%
72,969
(80,949)
213,228
33,413
252,996
(17,221)
235,775
235,775
–
235,775
235,775
(74,611)
–
(74,611)
(95,629)
–
(95,629)
168,922
305
(9,771)
(10,784)
14,45%
(101,393)
57,890
(220,495)
63
(274,719)
289
(274,430)
(274,430)
–
(274,430)
(274,430)
The contribution of the “Corporation” segment to the results of the FCC Group mainly includes
the billing of the support services provided to the rest of the Group’s activities under “Other op-
erating income”, the impairment of the investments on the parent companies’ shares from the
other segments, as well as dividends distributed by group companies that are subsidiaries of the
Group’s parent company, the financial expenses billed by other group companies as a result of
intra-group loans granted to the parent company by other subsidiaries and the financial income
billed to other group companies as a result of intra-group loans granted by the parent company to
other subsidiaries. All these concepts, as transactions with Group companies, are eliminated as
shown under “Eliminations”. Likewise, the “Corporation” segment includes the financial expenses
for debts with credit institutions detailed in note 20.
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Property, plant and equipment
2,810,199
1,493,773
Balance sheet by segments
2020
ASSETS
Non-current assets
Intangible assets
Additions
Additions
Real Estate investments
Additions
Investments accounted for using the equity
method
Non-current financial assets
Deferred tax assets
Current assets
Non-current assets held for sale
Inventory
Trade and other receivables
Other current financial assets
Other current assets
Cash and other cash equivalents
Total Group
Environmental
Services
Integrated Water
Management
Construction
Cement
Concessions
Corporation
Eliminations
2,792,235
2,541,973
7,130,413
2,437,859
118,940
836,432
87,847
646,492
242,515
–
42
–
–
870,909
28,670
456,512
116,383
–
42
953,282
77,945
34
137,603
31,019
–
–
1,082,897
448,025
448
527,285
14,018
–
–
388,476
253,633
73
45
19
–
–
4,210,876
(4,839,326)
7,254
1,868
213,258
242,538
–
–
(56,339)
–
(18,277)
–
–
–
722,786
163,983
68,269
37,860
35,514
111,913
304,472
775
580,874
578,695
5,704,189
1,392,268
765,604
2,039,451
228,652
56,105
1,222,109
223,597
74,450
1,304,234
–
31,442
841,458
74,420
32,989
323,925
1,115,194
31,089
901,513
–
37,449
283,234
90,251
4,458
486,121
329,324
370,550
1,391,258
–
172,914
751,333
125,655
19,261
322,095
7,545
64,528
185,434
–
82,262
79,992
5,442
1,973
15,765
14,800
8,085
1,472,069
1,392,268
205
11,624
2,165
86
65,721
3,555,700
(4,665,286)
130,192
768,784
–
446,701
120,828
195,435
(2,662)
8,482
(100,199)
(319,103)
–
(5,369)
(49,018)
(264,716)
–
–
Total assets
12,834,602
4,096,469
3,443,486
2,344,540
1,268,331
1,860,545
4,979,660
(5,158,429)
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2020
LIABILITIES
Equity
Non-current liabilities
Subsidies
Non-current provisions
Non-current financial liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Liabilities related to non-current assets held for
sale
Current provisions
Current financial liabilities
Trade and other payables
Internal relations
Total liabilities
Total Group
Environmental
Services
Integrated Water
Management
Construction
Cement
Concessions
Corporation
Eliminations
2,908,694
5,531,296
192,961
1,064,384
3,977,288
148,794
147,869
4,394,612
1,051,285
195,152
874,443
2,273,732
–
456,785
2,749,342
4,243
466,145
726,720
2,048,129
44,364
140,026
2,023,120
1,812,827
796,793
275,622
–
234,302
21,599
19,721
–
47,148
3,764
668,637
1,272,125
–
–
13,274
99,975
169,393
39,261
555,388
1,063,471
–
–
876,661
300,127
100
28,321
197,507
74,199
–
91,543
–
3,081
19,593
68,869
–
464,401
260,504
144,253
39,099
77,137
15
–
1,135,640
1,051,285
1,431
76,337
6,587
–
2,841,248
(3,253,914)
1,482,490
(1,584,918)
–
156,491
1
–
1,325,594
(1,480,496)
405
–
(104,423)
–
655,922
(319,597)
–
3,073
606,875
56,354
(10,380)
–
–
(244,292)
(74,981)
(324)
111,729
144,105
890,342
–
4,900
276,694
598,044
10,704
12,834,602
4,096,469
3,443,486
2,344,540
1,268,331
1,860,545
4,979,660
(5,158,429)
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Property, plant and equipment
2,863,892
1,524,556
2019
ASSETS
Non-current assets
Intangible assets
Additions
Additions
Real Estate investments
Additions
Investments accounted for using the equity
method
Non-current financial assets
Deferred tax assets
Current assets
Non-current assets held for sale
Inventory
Trade and other receivables
Other current financial assets
Other current assets
Cash and other cash equivalents
Total Group
Environmental
Services
Integrated Water
Management
Construction
Cement
Concessions
Corporation
Eliminations
2,815,460
2,461,787
8,529,551
3,458,398
55,225
827,011
35,668
285,894
2,635
–
191,821
–
–
808,476
15,394
428,160
49,916
–
–
902,785
77,991
92
154,194
32,192
2,635
–
1,112,526
447,815
41
547,783
8,198
–
–
1,754,581
1,345,127
1
894
462
–
3,669,047
(4,186,635)
8,317
4,029
226,762
3,305
–
–
(56,339)
–
(18,457)
–
–
–
741,524
116,737
87,620
48,315
37,160
146,186
306,119
(613)
863,163
599,939
278,390
68,766
4,044,589
1,166,465
–
728,812
1,836,806
189,566
70,861
1,218,544
–
31,326
713,641
93,596
35,048
292,854
1,108,482
29,049
815,865
–
52,969
266,741
69,654
4,976
421,525
259,228
360,422
1,432,640
–
201,943
700,215
125,497
30,049
374,936
7,843
71,925
199,282
–
89,175
80,910
12,599
937
15,661
248,930
13,444
147,828
202
41,112
8,299
522
97,693
2,959,543
(3,999,253)
168,306
529,079
–
359,505
100,611
53,759
(671)
15,875
(111,973)
(246,570)
–
(6,308)
(66,424)
(173,838)
–
–
Total assets
12,574,140
3,981,925
3,277,652
2,335,425
1,311,808
1,902,409
4,198,126
(4,433,205)
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Total Group
Environmental
Services
Integrated Water
Management
Construction
Cement
Concessions
Corporation
Eliminations
2019
LIABILITIES
Equity
Non-current liabilities
Subsidies
Non-current provisions
Non-current financial liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Liabilities related to non-current assets held for
sale
Current provisions
Current financial liabilities
Trade and other payables
Internal relations
Total liabilities
2,473,759
6,797,228
333,802
1,130,199
5,030,270
142,311
160,646
3,303,153
–
249,581
683,611
2,369,961
–
339,032
640,964
2,717,785
1,995,178
4,421
456,747
55,870
124,996
1,974,923
1,776,700
33,662
3,950
744,462
250,207
–
206,756
25,108
18,343
–
808,630
408,568
111
27,825
305,157
75,475
–
444,123
1,358,569
273,400
111,674
973,480
15
–
2,234,155
1,515,372
190,578
(2,737,607)
(1,448,451)
(190,578)
1,318,345
(1,116,144)
6,448
1
–
(31,546)
(110,183)
–
641,510
1,340,756
94,610
99,717
448,599
(247,147)
–
–
–
18,335
50,724
214,451
26,668
572,451
1,110,251
–
(10,614)
6,590
18,191
69,829
–
2,207
79,138
11,632
6,740
–
3,711
466,200
61,183
(82,495)
–
1
(173,628)
(74,400)
880
124,998
156,696
925,108
–
4,286
216,318
619,015
85,489
12,574,140
3,981,925
3,277,652
2,335,425
1,311,808
1,902,409
4,198,126
(4,433,205)
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Cash flows by segment
2020
Operating activities
Investment activities
Financing activities
Other cash flows
Cash flows for the year
2019
Operating activities
Investment activities
Financing activities
Other cash flows
Cash flows for the year
Total Group
Environmental
Services
Integrated Water
Management
Construction
Cement
Concessions
Corporation
Eliminations
605,074
(401,548)
(138,437)
(61,524)
3,565
630,550
(359,235)
(345,735)
26,767
(47,653)
265,338
(221,009)
(6,151)
(7,107)
31,071
454,027
(256,060)
(116,981)
7,391
88,377
223,652
(75,839)
(83,484)
268
64,597
206,722
(33,096)
(190,857)
2,353
(14,878)
(53,175)
19,926
(4,273)
(15,319)
(52,841)
(154,077)
122,857
(59,894)
16,158
(74,956)
136,557
(3,658)
(132,192)
(603)
104
75,069
(18,457)
(57,251)
377
(262)
117,457
(18,111)
(92,506)
(38,813)
(31,973)
55,047
6,545
(13,517)
269
48,344
179,146
(221,634)
35,045
50
(7,393)
(263,901)
118,777
145,124
–
–
42,359
(48,597)
1,066,023
(1,247,047)
(1,202,879)
1,295,644
219
(94,278)
–
–
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b) Activities and investments by geographic markets
The Group performs approximately 40% of its activity abroad (45% in 2019).
Revenue made abroad by the Group companies for 2020 and 2019 is distributed among the
following markets:
2020
United Kingdom
Czech Republic
Rest of Europe and Others
US and Canada
Latin America
Middle East and Africa
2019
United Kingdom
Czech Republic
Rest of Europe and Others
US and Canada
Latin America
Middle East and Africa
Total Group
Environmental
Services
Integrated Water
Management
Construction
Cement
Concessions
Corporation
Eliminations
668,618
285,251
802,884
84,999
176,598
467,404
605,328
184,605
307,285
75,133
–
–
2,485,754
1,172,351
735,049
286,787
733,555
89,545
388,894
576,850
682,025
185,420
304,155
41,921
–
63
2,810,680
1,213,584
–
100,644
83,322
–
57,256
162,809
404,031
–
101,312
81,618
–
86,360
113,232
382,522
10,651
2
379,110
9,866
116,292
246,231
762,152
77
55
312,842
38,636
300,868
401,546
52,639
–
27,803
–
941
63,369
144,752
52,947
–
25,253
8,988
9,223
67,363
1,054,024
163,774
–
–
–
–
2,055
–
2,055
–
–
–
–
2,308
–
2,308
–
–
5,845
–
–
–
5,845
–
–
9,770
–
–
–
–
–
(481)
–
54
(5,005)
(5,432)
–
–
(83)
–
(9,865)
(5,354)
9,770
(15,302)
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The following items included in the accompanying financial statements are shown below by ge-
ographical areas:
Total Group
Spain
United Kingdom
Czech Republic
Rest of Europe
and Others
United States of
America and Canada
Latin America
Middle East
and Africa
2020
ASSETS
Intangible assets
Property, plant and equipment
Real Estate investments
Deferred tax assets
2,437,859
2,810,199
–
1,398,446
1,426,708
–
578,695
522,830
2019
ASSETS
Intangible assets
Property, plant and equipment
Real Estate investments
Deferred tax assets
3,458,398
2,863,892
2,635
599,939
2,481,538
1,517,994
–
546,022
462,520
619,374
–
25,076
495,659
664,105
–
21,368
2,111
298,248
–
4,251
1,894
301,007
–
4,050
251,362
307,572
–
14,990
260,058
310,370
2,635
13,594
22,603
122,881
–
–
306
18,575
–
1,683
254,385
16,867
–
8,460
218,942
29,378
–
10,109
46,432
18,549
–
3,088
1
22,463
–
3,113
The table above shows a decrease in “Intangible assets” in Spain, mainly the transfer to non-cur-
rent assets held for sale in relation to the Cedinsa subgroup (Note 4).
c) Personnel
The average number of people employed in 2020 and 2019 by business areas is as follows:
Environmental Services
Integrated Water Management
Construction
Cement
Concessions
Corporation
2020
40,362
10,296
7,936
1,049
158
328
2019
39,657
8,487
8,906
1,076
28
278
60,129
58,432
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29. Environmental information
During the meeting held on 3 June 2009, the FCC Board of Directors approved the Environmental
Policy of the FCC Group, which responded to the initial objectives of the Corporate Responsibility
Master Plan reinforcing the socially responsible commitment in the FCC Group strategy, which is
very involved in environmental services.
The FCC Group carries out its activities on the basis of business commitment and responsibility,
compliance with applicable legal requirements, respect for the relationship with its stakeholders
and its ambition to generate wealth and social well-being.
Aware of the importance of preserving the environment and using available resources responsibly,
and in line with its vocation to serve through activities with a clear environmental focus, the FCC
Group promotes and enhances the following principles, on which its contribution to sustainable
development is based, throughout the organisation:
Continuous improvement
Promote environmental excellence by establishing objectives for the continuous improvement
of performance, minimising the negative impacts of the FCC Group’s processes, products and
services, and enhancing the positive impacts.
Monitoring and control
Establish environmental indicator management systems for the operational control of process-
es, which provide the necessary knowledge for the monitoring, evaluation, decision-making and
communication of the FCC Group’s environmental performance and compliance with the com-
mitments undertaken.
Climate change and pollution prevention
Lead the fight against climate change through the implementation of processes with lower green-
house gas emissions, and by promoting energy efficiency and renewable energies.
Preventing pollution and protecting the natural environment through the responsible management
and consumption of natural resources and by minimising the impact of emissions, discharges and
waste generated and managed by the FCC Group’s activities.
Observation of the environment and innovation
Identify the risks and opportunities of activities in the face of the changing landscape of the en-
vironment in order, among other things, to promote innovation and the application of new tech-
nologies, as well as the generation of synergies between the various activities of the FCC Group.
Life cycle of products and services
Enhance environmental considerations in business planning, procurement of materials and equip-
ment, and relations with suppliers and contractors.
The necessary participation of all parties
Promote the knowledge and application of environmental principles among employees and other
stakeholders.
Share experience in the most excellent practices with the different agents in order to promote
alternative solutions to those currently in place, which contribute to the achievement of a sustain-
able environment.
This Environmental Policy is materialised through the implementation of quality management and
environmental management systems, as well as follow-up audits, which accredit the FCC Group’s
performance in this area. Regarding the management of environmental risks, the Group has im-
plemented environmental management systems certified under the ISO 14001 standards, which
focus on:
a) Compliance with applicable regulations and the achievement of environmental objectives that
exceed external requirements.
b) The reduction of environmental impacts through proper planning.
c) The continuous analysis of risks and possible improvements.
The basic tool to prevent this risk is the environmental plan that each operational unit must pre-
pare and which consists of:
a) The identification of environmental aspects and applicable legislation.
b) Impact evaluation criteria.
c) The measures to be taken.
d) A system for measuring the objectives achieved.
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The very nature of the activity of the Environmental Services area is aimed at the protection
and conservation of the environment, not only through productive activity (waste collection, road
cleaning, operation and control of landfills, sewer cleaning, treatment and disposal of industrial
waste, etc.), but also for the development of this activity through the use of production techniques
and systems aimed at reducing environmental impact even more meticulously than required by
the regulations on these matters.
The development of the production activity of the Environmental Services area requires the use
of buildings, technical installations and specialised machinery that are efficient in protecting and
conserving the environment. At 31 December 2020, the acquisition cost of the productive fixed
and non-current assets, net of depreciation, of the Environmental Services area amounted to
2,330,205 thousand euros (2,351,566 thousand euros at 31 December 2019). Environmen-
tal provisions, mainly for landfill sealing and closing costs, amount to 396,384 thousand euros
(393,715 thousand euros as of 31 December 2019).
The activities performed by Aqualia are directly tied to environmental protection, since the nexus
of its operations is, in collaboration with different public authorities, the efficient management of
the end-to-end water cycle and the search for guarantees to provide water resources that enable
the sustainable growth of the towns in which it provides its services. One of the fundamental ob-
jectives of FCC Aqualia is the continuous improvement through an Integrated Management Sys-
tem, which includes both the quality management of processes, products and services, and envi-
ronmental management. The main actions carried out are: Water quality control in both collection
and distribution, 24-hour service 365 days a year making it possible to fix faults in distribution
networks in the shortest possible time, with the consequent saving of water, optimisation of elec-
tricity consumption, the elimination of environmental impacts caused by wastewater discharges
and the management of energy efficiency in order to reduce the carbon footprint.
Cement companies have fixed and non-current assets for filtering gases that are discharged into
the atmosphere, in addition to meeting the commitments made in the environmental recovery of
depleted quarries and applying technologies that contribute to the efficient environmental man-
agement of processes.
At year-end, the Cementos Portland Valderrivas group held investments related to the environ-
mental activity recorded in “Intangible assets” and “Property, plant and equipment” for a total
amount of 137,178 thousand euros (135,831 thousand euros in 2019), and amortisation/depre-
ciation was 98,447 thousand euros (93,440 thousand euros in 2019). Likewise, in 2020 it incurred
expenses to guarantee protection and improvement of the environment in the amount of 2,437
thousand euros (2,920 thousand euros in 2019), booked as “Other operating expenses” on the
accompanying profit and loss statement.
For the cement activity, the Group receives free CO2 emission rights in accordance with the corre-
sponding national allocation plans. In this regard, it should be noted that in 2020, emission rights
equivalent to 5,200 thousand tons per year were received (3,686 thousand tons per year in 2019),
corresponding to the companies Cementos Portland Valderrivas, S.A. and Cementos Alfa, S.A.
The “Operating Income” heading of the accompanying consolidated profit and loss statement
includes the income obtained from the sales of greenhouse gas rights in 2020 for an amount of
58,909 thousand euros (5,776 thousand euros in 2019).
The Construction area adopts environmental practices in the execution of the works that allow
for a respectful action with the environment, minimising its environmental impact by reducing the
emission of dust into the atmosphere, controlling the level of noise and vibrations, controlling
water discharges with special emphasis on the treatment of fluids generated by the works, the
maximum reduction of waste generation, the protection of the biological diversity of animals and
plants, protection of the urban environment due to occupation, pollution or loss of soils and the
development of specific training programmes for technicians involved in the process of making
decisions with an environmental impact, as well as the implementation of an “Environmental per-
formance code” that establishes the requirements for subcontractors and suppliers regarding the
protection and defence of the environment.
Nor is it considered that there are no significant contingencies related to the protection and im-
provement of the environment as of 31 December 2020 that may have a significant impact on the
accompanying financial statements.
For more information on the provisions of this note, the reader should refer to the Statement of
Non-Financial Information the Group publishes annually, among other channels, on the web page
www.fcc.es.
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30. Financial risk management policies
Proof of the foregoing are the extensions made in 2014 for 1,000,000 thousand euros and in 2016
for 709,519 thousand euros, both aimed at strengthening the capital structure of the Company.
306
The concept of financial risk refers to the changes in the financial instruments arranged by the
Group as a result of political, market and other factors and the repercussion thereof on the finan-
cial statements. The risk management philosophy of the Group is consistent with their business
strategy, and seeks to achieve maximum efficiency and solvency at all times. To this end, strict
financial risk management and control criteria have been established, identifying, measuring, ana-
lysing and controlling the risks incurred in the Group’s operations. The risk policy has been inte-
grated into the Group’s organisation in the appropriate manner.
In view of the Group’s activities and the transactions through which it carries on its business, it is
currently exposed to the following financial risks:
a) Capital risk l
To manage capital, the main objective of the Group is to reinforce its financial-equity structure, in
order to improve the balance between borrowed funds and shareholders’ equity, and the Group
endeavours to reduce the cost of capital and, in turn, to preserve its solvency status, in order to
continue managing its activities and to maximise shareholder value, not only at Group level, but
also at the level of the parent, Fomento de Construcciones y Contratas, S.A.
The fundamental basis that the Group considers as capital is found in the Equity of the Balance
Sheet, which, for the purposes of its management and follow-up, excludes both the “Changes in
the fair value of financial instruments” items and the “Conversion differences” item.
The first of these headings is discarded for management purposes as it is considered within the
interest rate management, being the result of the valuation of the instruments that transform the
debt from a variable rate to a fixed rate. Conversion differences, meanwhile, are managed within
the exchange rate risk.
Given the sector in which it operates, the Group is not subject to external capital requirements,
although this does not prevent the frequent monitoring of equity to guarantee a financial structure
based on compliance with the prevailing regulations of the countries in which it operates, also
analysing the capital structure of each of the subsidiaries to enable an adequate distribution be-
tween debt and capital.
As described in Note 20 on Non-current and current financial liabilities, two simple bonds were
issued in December 2019 by FCC Servicios Medioambiente Holding, S.A.U. in the amount of 1.1
billion euros. In July 2020, FCC Servicios Medioambiente Holding, S.A.U. registered 300 million
euros on a promissory note programme - Euro Commercial Paper Programme (ECP) - on the Irish
stock market, and since November 2018 Fomento de Construcciones y Contratas, SA has op-
erated a promissory note programme - Euro Commercial Paper Programme (ECP) - in the same
market in the amount of 600 million euros. The balance drawn at 31 December 2020 amounts to
302 million euros. In 2020 new financing facilities were also taken out in the form of lines of credit
and bilateral loans.
Likewise, during fiscal year 2020, Cementos Portland Valderrivas SA repaid total debt of 119.2
million euros, of which 108.2 million euros were repaid voluntarily through the repayment instal-
ments for the year 2021 and the final payment. Additionally, a contract for the novation and ratifi-
cation of guarantees was signed in which a new repayment schedule was included to extend the
last instalment payable on 29 July 2021, for an additional year, i.e. to 29 July 2022, and adapt the
financial covenants for the extra year.
These operations have made it possible to complete the process of debt reduction and financial
reorganisation initiated five years ago and to continue with the policy of diversifying financing
sources; all this contributing to achieving a much more stable and efficient capital structure, with
amounts, terms and financing costs suitable according to the nature of the different business
areas.
The General Finance Department, which is responsible for the management of financial risks,
regularly reviews the debt-equity ratio and compliance with financing covenants, together with the
capital structure of the subsidiaries.
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b) The FCC Group is exposed to currency exchange risk
Below is a summarised table of the sensitivity to changes in exchange rate conversion for the two
main currencies in which the Group operates (Note 18):
A noteworthy consequence of FCC Group’s positioning in international markets is the expo-
sure resulting from net positions in foreign currencies against the euro or in one foreign currency
against another when the investment and financing of an activity cannot be arranged in the same
currency.
Although the benchmark currency in which the Group mainly operates is the euro, the Group also
holds financial assets and liabilities accounted for in currencies other than the euro. Exchange rate
risk is mainly found in debt denominated in foreign currency, except when this entails a natural
hedge of the assets financed since they are denominated in the same currency, in investments in
international markets, and in collections and payments in currencies other than the euro.
The following shows the composition by currencies of the Group’s gross debt:
CONSOLIDATED (thousands of euros)
Euro
Dollar
Pound
Czech
Koruna
Rest of
Europe
non-euro
Latin
America
Rest
TOTAL
Gross debt
3,495,272 34,670
364,911
216,329
9,283
69,862
58,199
4,248,527
Financial assets
(854,559)
(108,364)
(217,134)
(43,048)
(27,904)
(79,320)
(120,433)
(1,450,761)
Total
consolidated
net
indebtedness
% Net Debt of
the total
2,640,714
(73,693)
147,777
173,281
(18,621)
(9,458)
(62,234)
2,797,766
94.4%
(2.6%)
5.3%
6.2%
(0.7%)
(0.3%)
(2.2%)
100.0%
Note 17 of these Financial Statements breaks down the Cash and Equivalents by currency, show-
ing how 61.7% are denominated in euros (58.1% as of 31 December 2019).
The Group’s general policy is to mitigate the adverse effect that exposure to the different for-
eign currencies could have on its financial statements as much as possible, with regard to both
transactional and purely equity-related movements. The Group therefore manages the effect that
foreign currency risk can have on the balance sheet and the income statement.
Pound sterling
US Dollar
Algerian dinar
Czech koruna
Total
Pound sterling
US Dollar
Algerian dinar
Czech koruna
Total
+ 10%
Profit and Loss
Net Equity
33
(2,489)
1,353
1,703
600
28.739
4,219
16,046
8,716
57,720
- 10%
Profit and Loss
Net Equity
(33)
2,489
(1,353)
(1,703)
(600)
(28,739)
(4,219)
(16,046)
(8,716)
(57,720)
The impact on the pound sterling is mainly due to the conversion of the net assets corresponding
to the investment held in the FCC Medio Ambiente Reino Unido subgroup.
c) The FCC Group is exposed to interest rate risk
The FCC Group is exposed to interest rate fluctuations due to the fact that the Group’s financial
policy aims to ensure that its current financial assets and debt are partially tied to variable interest
rates. The benchmark interest rate for the Group’s debt arranged with credit entities in euros is
mainly the Euribor.
Any increase in interest rates could give rise to an increase in the Group’s financing costs associ-
ated with its borrowings at variable interest rates, and could also increase the cost of refinancing
the borrowings and the issue of new debt.
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In order to ensure a position that is in the best interests of the Group, an interest rate risk manage-
ment policy is actively implemented, with on-going monitoring of markets and assuming different
positions depending primarily on the asset financed.
In addition, within the framework of the policy for managing this risk carried out by the Group,
fixed-rate debt issuance operations have been carried out in capital markets together with interest
rate hedges and fixed-rate financing, totalling 88.7% of the Group’s total gross debt at the end of
the year, including hedging on structured project financing.
The following table shows a breakdown of the gross debt of the FCC Group as well as the hedged
debt, either because it is a fixed rate debt or through derivatives:
Total Gross External Debt
Hedging and Financing at fixed rate at 31,12,20
Total variable rate debt
Ratio: Variable-rate debt / Gross External Debt
at 31.12.20
11.3%
Total Group
Construction
4,248,527
(3,766,822)
481,705
20,614
(1,425)
19,189
Environmental
Services
1,722,880
(1,675,326)
47,554
Cement
189,549
(4,136)
185,413
Integrated Water
Management
Concessions
Corporation
1,749,585
(1,681,468)
68,117
81,731
(74,930)
6,801
484,168
(329,539)
154,630
11.3%
93.1%
2.8%
97.8%
3.9%
8.3%
31.9%
The table below summarises the effect on the Group’s profit and loss statement of the changes
in the interest rate curve with respect to gross debt, excluding fixed rate debt associated with
hedging arrangements:
Impact on profit or loss
Gross indebtedness
+25 pb
1,248
+50 pb
2,496
+100 pb
4,992
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d) Solvency risk
At 31 December 2020, the net financial indebtedness of the FCC Group contained in the attached
balance sheet amounted to 2,797,766 thousand euros as shown in the following table:
Bank borrowings
Debt instruments and other loans
Other interest-bearing financial debt
Current financial assets
Treasury and cash equivalents
Net interest-bearing debt
Net debts with limited recourse
Net indebtedness with recourse
2020
820,021
3,230,281
198,225
(228,652)
2019
1,474,667
3,124,950
387,238
(189,566)
(1,222,109)
(1,218,544)
2,797,766
3,578,745
(2,696,161)
(3,591,450)
101,605
(12,705)
The decrease in net financial indebtedness as well as in net debt with limited recourse, is mainly
motivated by the held-for-sale classification of the Cedinsa group (Note 4) and by repayments
made by the Cementos Portland Valderrivas group in 2020 (Note 20).
e) The FCC Group is exposed to liquidity risk
The Group carries out its operations in industrial sectors that require a high level of financing, and
has so far obtained adequate financing to carry out its operations. However, the Group cannot
guarantee that these circumstances relating to obtaining financing will continue in the future.
The ability of the FCC Group to obtain financing depends on many factors, a lot of which are be-
yond their control, such as general economic conditions, the availability of funds in financial insti-
tutions, the depth and availability of the capital markets and the monetary policy of the markets in
which they operate. Adverse effects in debt and capital markets may hinder or prevent adequate
financing being available to perform the Group’s activities.
Historically, the Group has always been able to renew its loan arrangements, and it expects to
continue doing so in the coming twelve months. However, FCC Group’s ability to renew its financ-
ing depends on various factors, many of which are outside the control of the Group, such as gen-
eral economic conditions, the availability of funds for loans from private investors and financial in-
stitutions, and the monetary policy of the markets in which it operates. Negative conditions in debt
markets could hinder or prevent Group’s capacity to renew its financing. Therefore, the Group
cannot guarantee its ability to renew credit agreements and bond issues under economically at-
tractive terms. The inability to renew said financing or to secure it under acceptable terms could
have a negative impact on the Group’s liquidity and its ability to meet the working capital needs.
To adequately manage this risk, the Group performs exhaustive monitoring of the repayment
dates of all credit facilities of each Group company, in order to conclude all renewals in the best
market conditions sufficiently in advance, analysing the suitability of the funding and studying
alternatives if the conditions are unfavourable on a case-by-case basis. The Group is also present
in several markets, which facilitates obtaining credit facilities and mitigating liquidity risk.
At 31 December 2020, the Group had the following schedule of maturities of external gross debt,
which amounts to 705,194 thousand euros for 2021:
2021
2022
2023
2024 and beyond
TOTAL
705.194
1.133.860
760.588
1.648.884
4.248.527
A significant part of gross financial debt, 3,743,745 thousand euros, has no recourse to the Par-
ent Company, with debt in the Integral Water Management segment in the amount of 1,749,585
thousand euros, and in the Environmental Services segment in the amount of 1,722,880 thou-
sand euros as of 31 December 2020.
At 31 December 2020, the Group had working capital of 1,309,577 thousand euros (741,436
thousand euros at 31 December 2019).
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In order to manage liquidity risk, at 31 December 2020, the Group had 863.2 million euros in un-
drawn bilateral financing lines, and 1,155,738 thousand euros in cash, in addition to the following
current financial assets and cash equivalents, whose maturities are shown below:
Thousands of euros
Amount
1-3 months
3-6 months
6-9 months
9-12 months
To mitigate the market risks inherent to each line of business, the Group maintains a diversified
position among businesses related to the construction and management of infrastructure, provi-
sion of environmental services and others. In the area of geographical diversification, in 2020 the
weight of the external activity has been 40% of total sales, with special importance in the activities
of Environmental Services and Infrastructure Construction.
Otros activos financieros
corrientes
228,652
43,472
25,311
13,360
146,510
g) Credit risk
Thousands of euros
Amount
1 month
1-2 months
2-3 months
Equivalentes de tesorería
66,371
275
0
66,096
f) Concentration risk
This is risk arising from the concentration of lending transactions with common characteristics,
and it is distributed as follows:
• Funding sources: In order to diversify this risk, the Group works with a large number of nation-
al and international financial institutions and capital markets to obtain financing.
• Markets/geography (domestic, foreign): The Group operates in a wide variety of national and
international markets, with the debt mainly concentrated in euros and the rest in various inter-
national markets, with different currencies.
The provision of services or the acceptance of client engagements, whose financial solvency was
not guaranteed at the acceptance date, situations not known or unable to be assessed by the
Group and unforeseen circumstances arising during the provision of the service or the execution
of the engagement that could affect the client’s financial position could generate a payment risk
with respect to the amounts owed.
The Group request commercial reports and assess the financial solvency of clients before doing
business and perform on-going monitoring, and have put in place a procedure to be adopted in
the event of insolvency. In the case of public-sector clients, the Group does not accept engage-
ments that do not have an assigned budget and financial approval. Offers that exceed a certain
payment period must be authorised by the Finance Division. Likewise, on-going monitoring is
performed of debt delinquency in various management committees.
The maximum level of exposure to credit risk has been calculated, with the breakdown of the
amount as at 31 December 2020 as shown in the following table:
• Products: The Group uses various financial products: loans, credit facilities, obligations, syn-
Financial credits granted
dicated loans, assignments and discounting, etc.
Trade and other receivables (Note 16)
• Currency: The Group is financed through many different currencies according to the country
Derivative financial assets (note 23)
of the investment.
The Group’s strategic planning process identifies the objectives to be attained in each of the ar-
eas of activity, based on the improvements to be implemented, the market opportunities and the
level of risk deemed acceptable. This process serves as a base for preparing operating plans that
specify the goals to be reached each year.
Cash and cash equivalents (Note 17)
Guarantees granted (Note 26)
TOTAL
955,601
2,039,451
108
1,222,109
3,873,617
8,090,886
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In general, the Group does not have collateral guarantees or improvements to reduce credit risk
or for financial credits or accounts receivable from traffic. Although it should be noted that bonds
are requested from subscribers in the case of certain contracts of the Water activity, mostly con-
cessions affecting IFRIC 12, there are also offsetting mechanisms in certain contracts, mostly
concessions affecting IFRIC 12 in Water, Environmental Services and Corporation activities, mak-
ing it possible to guarantee the recovery of loans granted to finance early initial fees or investment
plans.
In terms of credit quality, the Group applies its best criteria to impair financial assets that are ex-
pected to incur credit losses throughout their life (Note 3.h). The Group regularly analyses chang-
es in the public ratings of the entities to which it is exposed.
Below are the amounts (in thousands of euros) obtained in relation to the derivatives in force at the
end of the year with an impact on equity, after applying, if applicable, the shareholding.
Impact on Equity:
Global consolidation
Equity method
Activities held for sale (Note 4)
Hedging derivatives
+25 pb
+50 pb
+100pb
5,135
5,030
15,237
10,134
9,793
30,366
19,747
18,703
60,000
In 2020, despite the impact of Covid-19, there was no significant increase in insolvency risk, and
the FCC Group kept the average collection periods in line with past experience.
h) Brexit risk
Risk hedging financial derivatives
In general, financial derivatives entered into by the FCC Group receive the accounting treatment
provided for in the regulations for accounting hedges set forth in these financial statements. The
main financial risk hedged by the FCC Group through derivative instruments relates to the fluctu-
ations in floating interest rates to which Group company financing is tied. The financial derivatives
are measured by experts on the subject using generally accepted methods and techniques.
These experts were independent from the Group and the entities financing it.
Sensitivity analyses are carried out periodically with the objective of observing the effect of a pos-
sible change in interest rates on the Group’s accounts.
A simulation was carried out, proposing three bullish scenarios of the basic Euro interest rate
curve, coming in at around -0.3% in the medium/long term as at 31 December 2020, assuming
an increase of 25 bp, 50 bp and 100 bp..
The activity that the Group carries out in the United Kingdom is basically concentrated in the En-
vironmental Services business area, mainly through the shareholding in the FCC Medio Ambiente
Reino Unido subgroup dedicated to the treatment, disposal and collection of waste, as well as
to the management of waste recovery and incineration plants. Additionally, although to a lesser
extent, the Group maintains a presence in the country through the export of cement and con-
struction projects. At year-end, the Group posted 668,018 thousand euros in turnover (Note 28)
and held total assets of 712,455 thousand euros in the United Kingdom.
Net investment held in pounds amounted to 287,053 thousand euros (Note 18.d). The following
is a sensitivity analysis that reflects the possible impact on the Group’s results and equity in the
event the exchange rate of the pound against the euro increases or decreases by 10%:
+ 10%
- 10%
Profit and Loss Statement
Net Equity
33
(33)
28,739
(28,739)
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The gross financial debt held in pounds amounts to 364.9 million euros as at 31 December 2020
and is concentrated in the aforementioned FCC Medio Ambiente Reino Unido subgroup, con-
sisting of various loans and project financing bonds at a fixed or variable rate hedged by hedging
derivatives that make them fixed at a weighted average rate of 4.5%. Below is a summarised table
with the effect that the changes in the interest rate curve of the debt denominated in pounds over
gross indebtedness would have on the profit and loss statement of the FCC Group once the debt
associated with hedging contracts has been excluded (in thousands of euros):
In this regard, as shown in the attached consolidated income statement, the Group maintained
a positive “Operating Income” of 572,740 thousand euros, 9.3% of net turnover. “Cash flows
from operational activities” amounted to 605,074 thousand euros as can be seen in the attached
consolidated statement of cash flows.
In terms of liquidity, as specified in this note and in Note 20 “Non-current and current financial
liabilities”, despite the disruption in financial markets, the Group has embarked upon some new
lines of financing, ensuring a comfortable financial position against potential liquidity tensions.
Impact on profit or loss
(12)
-25 pb
Gross indebtedness
+25 pb
12
+50 pb
24
+100 pb
47
Exposure to Brexit is mitigated by the natural hedge of keeping assets and liabilities in the same
currency. At the date on which these financial statements were drawn up, the activities carried out
by the Group showed favourable returns.
i) Covid-19 risk
The Covid-19 pandemic has had a series of impacts on the accompanying consolidated financial
statements both in operational and liquidity terms, which has also led to an update of the main
estimates that affect the half-yearly financial statements.
In operational terms, the impact of the Covid-19 crisis on the FCC Group was limited, since the
Water and Environment areas, which represent the most substantial part of the Group’s revenues
and earnings, include activities that the various national authorities have considered essential
without significant interruptions in activity or loss of profitability in most of the assets. In relation
to other activities, such as Construction, which has a smaller weighting in the Group’s total ac-
tivity, the pandemic has led to the temporary interruption of part of the backlog of construction
contracts in progress as well as, where applicable, some inefficiencies in the supply chain, cir-
cumstances that inevitably have an impact on project costs as well as on project delivery times.
Measures have been adopted to adapt costs to the new levels of activity and to date practically all
has been resumed, so no significant non-provisioned impairment is expected. The Cement area
performed well, especially during the second half of the year, with some slowdown in growth, but
contributing positive EBITDA with no deviations from the pre-Covid estimates.
As a result of the situation created by the Covid-19 crisis, the Group proceeded to conduct an
analysis with regard to the main estimates that affect the accompanying consolidated financial
statements:
• Goodwill: The Group updated the various impairment tests for goodwill items posted without
significant impacts, given the good performance of the units concerned, mainly Environment
and Cement. Note 7 includes additional disclosures for this concept.
• Rest of fixed assets. The recoverable value of the main fixed assets that could show signs
of impairment has been reviewed and, in particular, of those associated with the concession
businesses (Notes 7, 8 and 9).
• Financial instruments: The recoverable value of the main financial instruments has been re-
viewed, with special attention paid to investments accounted for applying the equity method
(Note 12).
• Furthermore, with regard to trade receivables, no significant payment default problems were
identified. There are no unimpaired doubtful material trade receivables. The collection periods
are in line with previous years.
• Deferred tax assets: The assumptions (both in operational and tax terms) regarding the re-
coverability of these assets, contemplated in December 2019, have been updated, with the
result that under the same criteria used on that date, the impact of Covid-19 does not involve
a reversal of the assets for deferred tax or a significant modification of recovery periods.
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• Provisions: The level of provision (Note 19) is considered suitable to cover all risks considered
probable.
• Appraisal of real estate assets: “Inventories” includes real estate assets whose net book value
amounts to 452,633 thousand euros (Note 15). In this regard, during the year the fair value
estimates of some of the main real estate assets were updated through an independent third
party. Although a decrease in value was identified compared to December 2019, there was no
need to record significant impairments because excesses were sufficient.
• Recognition of income in construction contracts: The Group reassessed its forecast results
in the Construction segment at conservative ranges in the light of current circumstances. In
this sense, provisions make it possible to cover the risks associated with average scenarios,
in the context of current uncertainty. In any case, it should be noted that the Group has not
registered unapproved income derived from cost overruns, delays or claims on third parties as
a result of the situation caused by Covid-19, which has caused, in many geographic regions,
inefficiencies and delays, with the consequent impact in terms of profitability.
Due to all of the above and taking into account the limited impact, the measures taken to guaran-
tee the assets and liquidity gaps, the Group prepared the financial statements as per the principle
of a going concern, since the continuity of the Group is not in doubt.
31. Information on transactions
with related parties
a) Transactions with directors of the Parent Company and senior
executives of the Group
The amounts accrued for fixed and variable remuneration received by the Directors of Fomento
de Construcciones y Contratas, S.A. in 2020 and 2019, to be paid by the latter or any of the
Group companies, jointly managed or associated, are as follows:
Fixed remuneration
Other payments
2020
525
1,420
1,945
2019
525
1,308
1,833
The senior executives listed below, who are not members of the Board of Directors, received total
remuneration of 1,832 thousand euros (1,819 thousand euros in 2019).
2020
Marcos Bada Gutiérrez
Felipe B. García Pérez
Miguel A. Martínez Parra
Félix Parra Mediavilla
2019
Marcos Bada Gutiérrez
Felipe B. García Pérez
Miguel A. Martínez Parra
Félix Parra Mediavilla
General manager of Internal Audit
General Secretary
Managing Director of Administration and Finance
Managing Director of FCC Aqualia
General manager of Internal Audit
General Secretary
Managing Director of Administration and Finance
Managing Director of FCC Aqualia
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Note 25 “Pension plans and similar obligations” describes the insurance taken out in favour of
certain executive directors and senior managers.
Details of Board members who hold posts at companies in which Fomento de Construcciones y
Contratas, S.A. has a direct or indirect ownership interest were as follows:
Name or corporate name
of the director
Company name
of the Group entity
EAC INVERSIONES
CORPORATIVAS, S.L.
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
Position
CHAIR
REALIA BUSINESS, S.A.
DIRECTOR
PABLO COLIO ABRIL
INMOBILIARIA AEG, S.A. DE
C.V.
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
DIRECTOR
GERARDO KURI KAUFMANN CEMENTOS PORTLAND
CHIEF EXECUTIVE OFFICER
VALDERRIVAS, S.A.
REALIA BUSINESS, S.A.
CHIEF EXECUTIVE OFFICER
JUAN RODRÍGUEZ TORRES
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
DIRECTOR
FCC AQUALIA, S.A.
DIRECTOR
REALIA BUSINESS, S.A.
NON-EXECUTIVE CHAIRMAN
ÁLVARO VÁZQUEZ DE
LAPUERTA
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
DIRECTOR
ALEJANDRO ABOUMRAD
GONZÁLEZ
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
REPRESENTATIVE OF THE DIRECTOR
INMOBILIARIA AEG, S.A. DE C.V.
FCC AQUALIA, S.A.
DIRECTOR AND CHAIRMAN OF THE
BOARD OF DIRECTORS
FCC SERVICIOS MEDIO
AMBIENTE HOLDING,
S.A.U.
CHAIRMAN
Name or corporate name
of the director
Company name
of the Group entity
Position
ANTONIO GÓMEZ GARCÍA
FCC AMÉRICAS, S.A.
DE C.V.
FCC MEDIO AMBIENTE,
S.A.U.
FCC AQUALIA, S.A.
ALTERNATE DIRECTOR
CHAIRMAN
MEMBER OF THE BOARD, MEMBER OF
THE AUDIT AND CONTROL COMMITTEE,
OF THE INVESTMENT COMMITTEE, AND
OF THE DELEGATED REGULATORY
COMPLIANCE COMMITTEE
FCC CONSTRUCCIÓN, S.A. CHAIRMAN
FCC ENVIRONMENT (UK)
LIMITED
DIRECTOR
FCC MEDIO AMBIENTE
REINO UNIDO S.L.U.
FCC SERVICIOS MEDIO
AMBIENTE HOLDING,
S.A.U.
FCC CONCESIONES,
S.A.U.
GUZMAN ENERGY O&M,
S.L.
DEPUTY CHAIRMAN
DEPUTY CHAIRMAN
CHAIRMAN
CHAIRMAN
FCC AUSTRIA ABFALL
SERVICE AG
MEMBER OF THE SUPERVISORY
BOARD
These directors hold posts or exercise functions and/or hold ownership interests of less than
0.01% in any case in other FCC Group companies, in which Fomento de Construcciones y Con-
tratas, S.A. holds the majority of the voting rights, directly or indirectly.
In 2020, no significant transactions were performed entailing a transfer of assets or liabilities be-
tween Group companies and their executives and directors.
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b) Situations of conflicts of interest
No conflict of interests have been directly or indirectly declared in the interest of Fomento de
Construcciones y Contratas, S.A., in accordance with applicable regulations (Article 229 of the
Spanish Corporate Enterprises Act), without prejudice to the operations of Fomento de Construc-
ciones y Contratas, S.A. with its related parties reflected in this report or, as the case may be, of
the agreements related to remuneration or appointment of positions. In this regard, when specific
conflicts of interest have taken place with certain directors, they have been resolved in accord-
ance with the procedure stipulated in the Board of Directors’ Rules, with the directors involved
abstaining from the corresponding debates and votes.
c) Operations between Group companies or entities
There are numerous transactions between Group companies that are part of their routine busi-
ness and that, in any case, are eliminated in the process of preparing the consolidated financial
statements.
The turnover of the attached consolidated income statement includes 180,131 thousand euros
(277,375 thousand euros in 2019) from Group companies billing associates and joint ventures.
Likewise, purchases made from associates and joint ventures amounting to 22,714 thousand
euros (15,878 thousand euros in 2019) are also included in the Group’s consolidated financial
statements
d) Transactions with other related parties
During the year, a number of transactions were approved involving companies in which share-
holders of Fomento de Construcciones y Contratas, S.A. own equity interests, the most signifi-
cant of which were as follows:
– Execution of construction and service contracts by FCC Construcción, S.A. and FCC Indus-
trial e Infraestructuras Energéticas, S.A.U. relating to companies in the Realia subgroup, as
follows:
Corporate name of the
significant shareholder
Corporate name of
the group company
2020
2019
Realia Business, S.A.
FCC Construcción, S.A.
Realia Patrimonio, S.L.U.
FCC Industrial e Infraestructuras
Energéticas S.A.U.
23,911
1,397
Valaise S.L.U.
FCC Construcción, S.A.
12,373
1,209
4,899
25,308
18,481
– Agreements between FC y C, S.L. Unipersonal and Realia Business, S.A. for the management
and marketing of three real estate developments: Plot “10B” in Badalona, Barcelona, for the
construction of 141 collective dwellings available for resale and parking spaces; Plot “RCL
1B” in Tres Cantos, Madrid, for the construction of 85 collective dwellings available for resale
and parking spaces: Parce-la “RLU 2ª” in Tres Cantos, Madrid, for the construction of 30
single-family homes, for a total amount of 1,954 thousand euros. Signature by FC y C, SL Un-
ipersonal and Realia Business, S.A. of the following exclusive marketing contracts: Plot RU2A
in Tres Cantos (marketing of 30 single-family dwellings), Plot RC1B in Tres Cantos (marketing
of 85 dwellings available for resale), Plot 10 in Badalona (marketing of 141 collective dwellings
available for resale), Plot in Arroyo Fresno, Madrid (marketing of 144 collective dwellings avail-
able for resale), Plot in Arroyo Fresno, Madrid (marketing of 42 single-family dwellings), Plot in
El Berzal (marketing of 40 single-family dwellings).
– Service provision agreements between FCC Industrial e Infraestructuras Energéticas, S.A.U.
and Realia Patrimonio, S.L.U. for annual preventive maintenance of generator units in build-
ings: Offices on Calle Acanto 22 and 4 units in office buildings at Avda. Del Sur del Aero-
puerto de Barajas, 28, 30, 32 and 34 in Madrid (Eisenhower Business Center in Madrid) for
an amount of 3 thousand euros, basic annual preventive maintenance of the equipment of
the Uninterruptible Power Supply of the buildings: Offices at Paseo de la Castellana 216 in
Madrid; Offices on Calle Acanto 22, and 2 units in office buildings on Avda. Del Sur del Aero-
puerto de Barajas, 28 and 34, Madrid, for an amount of 2 thousand euros.
– Service provision agreement between Fomento de Construcciones y Contratas, S.A. with
Vilafulder Corporate Group, S.L.U. for a total annual amount of 338 thousand euros.
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– Service provision contract between Cementos Portland Valderrivas, S.A. and Mr Gerardo Kuri
Kaufmann, for an amount of 175 thousand euros.
32. Fees paid to auditors
–
In the framework of the debt refinancing associated with the Spanish activities of the Cemen-
tos Portland Valderrivas Group in 2016, a subordinated loan agreement was entered into with
Banco Inbursa, S.A., Institución de Banca Múltiple, with carrying amount at 31 December
2020 of 69,857 thousand euros. The finance costs incurred in the year totalled 2,076 thou-
sand euros.
– Financing provided by the financial group Inbursa for FCC Construcción, S.A. for Line 2 of
the Panama Metro, through the acquisition of construction certificates, amounting to 3,818
thousand euros.
Furthermore, other transactions are carried out under market conditions, mainly telephone and
internet access services, with parties related to the majority shareholder for a non-significant
amount.
e) Mechanisms established to detect, determine and resolve possible
conflicts of interests between the parent and/or its Group and its
directors, executives or significant shareholders
FCC Group has established specific mechanisms to detect, determine and resolve any possible
conflicts of interest between the Group companies and their directors, executives and significant
shareholders, as indicated in article 20 and thereafter of the Board of Directors’ Rules.
Fees for audit services accrued in 2020 and 2019 relating to audit services and other verification
services, as well as other professional services, provided to the different Group companies and
joint management that comprise the FCC Group by the main auditor and other auditors partici-
pating in the audit of the different Group companies, and by associated entities, both in Spain and
abroad, are shown in the following table:
Audit services
Other assurance
services
Total audit and
related services
Tax advisory services
Other services
Total professional
services
2020
Principal
auditor
Other
auditors
3,386
261
718
1,220
Total
4,104
1,481
2019
Principal
auditor
Other
auditors
3,477
522
599
571
Total
4,076
1,093
3,647
1,938
5,585
3,999
1,170
5,169
–
20
20
1,887
610
2,497
1,887
630
2,517
–
–
–
1,466
1,527
2,993
1,466
1,527
2,993
3,667
4,435
8,102
3,999
4,163
8,162
33. Events after the closing date
There have been no significant events between the end of the year and the date of preparation of
these financial statements.
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Annex I Fully consolidated subsidiaries
Company
Registered office
% Effective
ownership
Auditor
SERVICIOS MEDIOAMBIENTALES
Alfonso Benítez, S.A.
Aparcamientos Concertados, S.A.
Armigesa, S.A.
Azincourt Investment, S.L.
Beootpad d.o.o. Beograd
Castellana de Servicios, S.A.
Compañía Catalana de Servicios, S.A.
Corporación Inmobiliaria Ibérica, S.A.
Ecoactiva de Medio Ambiente, S.A.
Federico Salmón, 13 – Madrid
Av. Aiguera, 1 – Benidorm (Alicante)
Paseo de Extremadura s/n – Armilla (Granada)
Federico Salmón, 13 – Madrid
Serbia
Federico Salmón, 13 – Madrid
Balmes, 36 – Barcelona
Av. Camino de Santiago, 40 – Madrid
Ctra. Puebla Albortón a Zaragoza Km. 25– Zaragoza
Ecodeal-Gestao Integral de Residuos Industriais, S.A.
Ecogenesis Societe Anonime Rendering of Cleansing and Waste Management
Services
Portugal
Greece
Ecoparque Mancomunidad del Este, S.A.
Egypt Environmental Services, S.A.E.
Federico Salmón, 13 – Madrid
Egypt
Empresa Comarcal de Serveis Mediambientals del Baix Penedés – ECOBP, S.L.
Plaça del Centre, 5 – El Vendrell (Tarragona)
Enviropower Investments Limited
Europea de Tratamiento de Residuos Industriales, S.A.
FCC Ámbito, S.A. Unipersonal
FCC Environment Portugal, S.A.
FCC Environment Services (UK) Limited
FCC Environmental Services Florida Llc.
FCC Environmental Services Nebraska Llc.
FCC Environmental Services Texas Llc.
United Kingdom
Federico Salmón, 13 – Madrid
Federico Salmón, 13 – Madrid
Portugal
United Kingdom
USA
USA
USA
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Capital Auditors
Deloitte
Deloitte
Deloitte
Deloitte
100.00
100.00
51.00
100.00
100.00
100.00
100.00
100.00
60.00
53.62
51.00
100.00
100.00
66.60
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
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Company
FCC Environmental Services (USA) Llc.
FCC Equal CEE, S.L.
FCC Equal CEE Andalucía, S.L.
FCC Equal CEE C. Valenciana, S.L.
FCC Equal CEE Murcia, S.L.
FCC Medio Ambiente, S.A.
FCC Medio Ambiente Reino Unido, S.L.Unipersonal
FCC Servicios Medio Ambiente Holding, S.A.U.
Gamasur Campo de Gibraltar, S.L.
Gandia Serveis Urbans, S.A.
Geneus Canarias, S.L.
Registered office
USA
Federico Salmón, 13 – Madrid
Av. Molière, 36 – Málaga
Riu Magre, 6 P.I. Patada del Cid – Quart de Poblet (Valencia)
Luis Pasteur, 8 – Cartagena (Murcia)
Federico Salmón, 13 – Madrid
Av. Camino de Santiago, 40 – Madrid
Federico Salmón, 13 – Madrid
Antigua Ctra. de Jimena de la Frontera, s/n – Los Barrios (Cádiz)
Llanterners, 6 – Gandia (Valencia)
Electricista, 2. U.I. de Salinetas – Telde (Las Palmas)
Gestió i Recuperació de Terrenys, S.A. Unipersonal
Balmes, 36 Entresuelo – Barcelona
Gipuzkoa Ingurumena BI, S.A.
Polígono Industrial Zubiondo Par A.5. – Hernani (Gipuzkoa)
Golrib, Soluções de Valorização de Residuos Lda.
FCC Group - CEE
.A.S.A. Hódmezövásárhely Köztisztasági Kft
ASMJ s.r.o.
FCC Abfall Service Betriebs GmbH
FCC Austria Abfall Service AG
FCC BEC s.r.o.
FCC Bratislava s.r.o.
FCC Centrum Nonprofit Kft.
FCC Ceska Republika s.r.o.
FCC Ceské Budêjovice s.r.o.
FCC Dacice s.r.o.
FCC Eko d.o.o.
FCC EKO Polska sp. z.o.o.
FCC Eko-Radomsko sp. z.o.o.
Portugal
Austria
Austria
Czech Republic
Slovakia
Hungary
Czech Republic
Czech Republic
Czech Republic
Serbia
Poland
Poland
Polonia
Polonia
% Effective
ownership
Auditor
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
85.00
95.00
100.00
80.00
82.00
55.00
61.83
51.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
60.00
100.00
100.00
100.00
Deloitte
Deloitte
Vaciero Auditores
Centium
Ernst & Young
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
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Company
Registered office
FCC Entsorga Entsorgungs GmbH & Co. Nfg KG
FCC Environment CEE GmbH
FCC Environment Romania S.R.L.
FCC Freistadt Abfall Service GmbH
FCC Halbenrain Abfall Service GmbH & Co. Nfg KG
FCC HP s.r.o.
FCC Industrieviertel Abfall Service GmbH & Co. Nfg KG
FCC Inerta Engineering & Consulting GmbH
FCC Kikinda d.o.o.
FCC Liberec s.r.o.
FCC Litovel s.r.o.
FCC Lublienec sp. z.o.o.
FCC Magyarorzág Kft
FCC Mostviertel Abfall Service GmbH
FCC Neratovice s.r.o.
FCC Neunkirchen Abfall Service GmbH
FCC Podhale sp. z.o.o.
FCC Prostejov s.r.o.
FCC Regios AS
FCC Slovensko s.r.o.
FCC Tarnobrzeg.sp. z.o.o.
FCC Textil2Use GmbH
FCC Trnava s.r.o.
FCC Uhy s.r.o.
FCC Únanov s.r.o.
FCC Vrbak d.o.o.
FCC Wiener Neustadt Abfall Service GmbH
FCC Zabcice s.r.o.
Austria
Austria
Romania
Austria
Austria
Czech Republic
Austria
Austria
Serbia
Czech Republic
Czech Republic
Poland
Hungary
Austria
Czech Republic
Austria
Poland
Czech Republic
Czech Republic
Slovakia
Poland
Austria
Slovakia
Czech Republic
Czech Republic
Serbia
Austria
Czech Republic
319
% Effective
ownership
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
80.00
55.00
49.00
61.97
100.00
100.00
100.00
100.00
100.00
75.00
99.99
100.00
59.72
100.00
50.00
100.00
66.00
51.00
100.00
80.00
Auditor
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
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320
Company
Registered office
FCC Zabovresky s.r.o.
FCC Zisterdorf Abfall Service GmbH
FCC Znojmo s.r.o.
FCC Zohor.s.r.o.
Miejskie Przedsiebiorstwo Gospodarki Komunalnej sp. z.o.o.
Obsed a.s.
Quail spol. s.r.o.
Siewierskie Przedsiebiorstwo Gospodarki Komunalnej sp. z.o.o.
FCC Environment Group (UK)
3C Holding Limited
3C Waste Limited
Allington O & M Services Limited
Allington Waste Company Limited
Anti-Waste (Restoration) Limited
Anti-Waste Limited
Arnold Waste Disposal Limited
BDR Property Limited
BDR Waste Disposal Limited
Darrington Quarries Limited
Derbyshire Waste Limited
East Waste Limited
FCC Environment (Berkshire) Ltd.
FCC Environment (UK) Limited
FCC Environment Limited
FCC Environment Lostock Limited
FCC Environmental Services Limited
FCC Recycling (UK) Limited
FCC Waste Services (UK) Limited
Czech Republic
Austria
Czech Republic
Slovakia
Poland
Czech Republic
Czech Republic
Poland
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
% Effective
ownership
89.00
100.00
49.66
85.00
80.00
100.00
100.00
60.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
80.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Auditor
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 114 of 141
321
Company
Finstop Limited
Focsa Services (UK) Limited
Hykeham O&M Services Limited
Integrated Waste Management Limited
Landfill Management Limited
Lincwaste Limited
Norfolk Waste Limited
Pennine Waste Management Limited
T Shooter Limited
Waste Recovery Limited
Waste Recycling Group (Central) Limited
Waste Recycling Group (Scotland) Limited
Waste Recycling Group (UK) Limited
Waste Recycling Group (Yorkshire) Limited
Wastenotts O & M Services Limited
Welbeck Waste Management Limited
WRG (Midlands) Limited
WRG (Northern) Limited
WRG Acquisitions 2 Limited
WRG Environmental Limited
WRG Waste Services Limited
FCC Group - PFI Holdings
FCC Lostock Holdings Limited
FCC PFI Holdings Limited
FCC Wrexham PFI Holdings Limited
FCC Wrexham PFI Limited
FCC Wrexham PFI (Phase II Holding) Ltd.
FCC Wrexham PFI (Phase II) Ltd.
Registered office
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
% Effective
ownership
Auditor
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 115 of 141
322
Company
RE3 Holding Limited
RE3 Limited
Green Recovery Group
FCC (E&M) Holdings Ltd.
FCC (E&M) Ltd.
FCC Buckinghamshire Holdings Limited
FCC Buckinghamshire Limited
FCC Buckinghamshire (Support Services) Limited
FCC Energy Holdings Ltd
FCC Energy Limited
FCC Environment (Lincolnshire) Ltd.
FCC Environment Developments Ltd.
Green Energy Finance Solutions Ltd
Green Recovery Projects Ltd
Kent Energy Limited
Kent Enviropower Limited
Wastenotts (Reclamation) Limited
Integraciones Ambientales de Cantabria, S.A.
International Services Inc., S.A. Unipersonal
Jaime Franquesa, S.A.
Jaume Oro, S.L.
Limpieza e Higiene de Cartagena, S.A.
Limpiezas Urbanas de Mallorca, S.A.
Registered office
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Monte de Carceña Cr CA-924 Pk 3,280 – Castañeda (Cantabria)
Av. Camino de Santiago, 40 – Madrid
P.I. Zona Franca Sector B calle D 49 – Barcelona
Av. del Bosc, s/n P.I. Hostal Nou – Bellpuig (Lleida)
Luis Pasteur, 8 – Cartagena (Murcia)
Ctra. Santa Margalida-Can Picafort – Santa Margalida (Balearic Islands)
Manipulación y Recuperación MAREPA, S.A.
Av. San Martín de Valdeiglesias, 22 – Alcorcón (Madrid)
Recuperació de Pedreres, S.L.
Serveis Municipals de Neteja de Girona, S.A.
Balmes, 36 Entresuelo – Barcelona
Pl. del Vi, 1 - Gerona
% Effective
ownership
100.00
100.00
51.00
51.00
51.00
51.00
51.00
51.00
51.00
51.00
51.00
51.00
51.00
51.00
51.00
51.00
90.00
100.00
100.00
100.00
90.00
100.00
100.00
80.00
75.00
Auditor
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Cataudit Auditors
Associats
Servicio de Recogida y Gestión de Residuos Sólidos Urbanos del Consorcio Vega
Sierra Elvira, S.A.
Antonio Huertas Remigio, 9 – Maracena (Granada)
60.00
Capital Auditors
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 323
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Company
Registered office
Servicios de Levante, S.A.
Servicios Especiales de Limpieza, S.A.
Sistemas y Vehículos de Alta Tecnología, S.A.
Camino Pla de Museros, s/n – Almazora (Castellón)
Federico Salmón, 13 – Madrid
Federico Salmón, 13 – Madrid
Societat Municipal Mediambiental d’Igualada, S.L.
Pl. de l’Ajuntament, 1 – Igualada (Barcelona)
Telford & Wrekin Services Limited
United Kingdom
Tratamientos y Recuperaciones Industriales, S.A.
Balmes, 36 Entresuelo – Barcelona
Valoración y Tratamiento de Residuos Urbanos, S.A.
Riu Magre, 6 – P.I. Patada del Cid – Quart de Poblet (Valencia)
% Effective
ownership
100.00
100.00
100.00
65.91
100.00
75.00
80.00
Auditor
Deloitte
Deloitte
Deloitte
Vaciero Auditores
Deloitte
Capital Auditors
Valorización y Tratamiento de Residuos, S.A.
Alameda de Mazarredo, 15-4º A – Bilbao (Vizcaya)
100.00
Centium
AQUALIA
Abrantaqua – Serviço de Aguas Residuais Urbanas do Municipio De Abrantes, S.A.
Portugal
Acque di Caltanissetta, S.p.a.
Agua y Gestión del Ciclo Integral, S.L.U.
Aguas de Alcázar Empresa Mixta, S.A.
Aguas de las Galeras, S.L.
Aigües de Vallirana, S.A. Unipersonal
Aqua Campiña, S.A.
Aquaelvas – Aguas de Elvas, S.A.
Aquafundalia – Agua do Fundäo, S.A.
Aquajerez, S.L.
Aqualia Czech, S.L.
Aqualia Desalación Guaymas, S.A. de C.V.
Aqualia France
Aqualia Infraestructuras d.o.o. Beograd-Vracar
Aqualia Infraestructuras d.o.o. Mostar
Aqualia Infraestructuras Inzenyring, s.r.o.
Aqualia Infraestructuras Montenegro (AIM) d.o.o. Niksic
Aqualia Infraestructuras Pristina LLC.
Italy
Av. Diego Martínez Barrio, 4 – Seville
Rondilla Cruz Verde, 1 – Alcázar de San Juan (Ciudad Real)
Av. Camino de Santiago, 40 – Madrid
Conca de Tremp, 14 – Vallirana (Barcelona)
Blas Infante, 6 – Écija (Seville)
Portugal
Portugal
Cristalería, 24 – Cádiz
Av. Camino de Santiago, 40 – Madrid
Mexico
France
Serbia
Bosnia-Herzegovina
Czech Republic
Montenegro
Kosovo
Oliveira, Reis & Asociados
Deloitte
Capital Auditors
Centium Auditores
Deloitte
Deloitte
Ernst & Young
Deloitte
Deloitte
SNR Audit
ABC AUDIT, sro
30.60
50.22
51.00
26.71
51.00
51.00
45.90
51.00
51.00
51.00
51.00
51.00
51.00
51.00
51.00
51.00
51.00
51.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 117 of 141
Company
Aqualia Intech, S.A.
Aqualia Latinoamérica, S.A.
Registered office
Av. Camino de Santiago, 40 – Madrid
Colombia
Aqualia Mace Contracting, Operation & General Maintenance LLC.
United Arab Emirates
Aqualia Mace Qatar
Aqualia México, S.A. de C.V.
Aqualia New Europe B.V.
Aqualia Portugal, S.A.
Aqualia Villa del Rosario, SA
Aquamaior – Aguas de Campo Maior, S.A.
Aquos El Realito, S.A. de C.V.
C.E.G. S.P.A. Simplifiée
Cartagua, Aguas do Cartaxo, S.A.
Compañía Onubense de Aguas, S.A.
Conservación y Sistemas, S.A.
Depurplan 11, S.A.
Ecosistema de Morelos S.A. de C.V.
Empresa Gestora de Aguas Linenses, S.A.
Qatar
Mexico
Netherlands
Portugal
Colombia
Portugal
Mexico
France
Portugal
Av. Martín Alonso Pinzón, 8 – Huelva
Federico Salmón, 13 – Madrid
Madre Rafols, 2 – Zaragoza
Mexico
Federico Salmón, 13 – Madrid
Empresa Mixta de Conservación de la Estación Depuradora de Aguas Residuales de
Butarque, S.A.
Princesa, 3 – Madrid
Entemanser, S.A.
FCC Aqualia, S.A.
FCC Aqualia América, S.A.U.
FCC Aqualia U.S.A. Corp
Flores, Rebollo y Morales, S.L.
H.A.A. & CO. Integrated Services
Hidrotec Tecnología del Agua, S.L. Unipersonal
Castillo, 13 – Adeje (Santa Cruz de Tenerife)
Av. Camino de Santiago, 40 – Madrid
Uruguay, 11 – Vigo (Pontevedra)
USA
Urbanización Las Buganvillas, 4 – Vera (Almería)
Saudi Arabia
Pincel, 25 – Seville
Infraestructuras y Distribución General de Aguas, S.L.U.
La Presa, 14 – Adeje (Santa Cruz de Tenerife)
324
% Effective
ownership
51.00
51.00
26.01
26.01
51.00
51.00
51.00
51.00
51.00
26.01
51.00
30.60
30.60
51.00
51.00
51.00
51.00
35.70
49.47
51.00
51.00
51.00
30.60
26.01
51.00
51.00
Auditor
Deloitte
Sn Audit And Consulting
Colombia Sas
Deloitte
Mazars
Deloitte
RSM
Ernst & Young
Sn Audit And Consulting
Colombia Sas
Deloitte
Deloitte México
SNR Audit
Oliveira, Reis & Asociados
Deloitte
Capital Auditors
Deloitte
Deloitte
Berkowitz Pollack Brant
Ernst & Young
Deloitte
Deloitte
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Company
Qatarat Saquia Desalination
Registered office
Saudi Arabia
Servicios Hídricos Agricultura y Ciudad, S.L.U.
Alfonso XIII – Sabadell (Barcelona)
Severomoravske Vodovody a Kanalizace Ostrava, a.s.
Shariket Tahlya Miyah Mostaganem, S.P.A.
Sociedad Española de Aguas Filtradas, S.A.
Sociedad Ibérica del Agua, S.A. Unipersonal
Societè des Eaux de Fin d'Oise, S.A.S.
Tratamiento Industrial de Aguas, S.A.
Vodotech, spol. s.r.o.
Water Sur, S.L.
CONSTRUCTION
ACE Scutmadeira Sistemas de Gestao e Controlo de Tràfego
Agregados y Materiales de Panamá, S.A.
Áridos de Melo, S.L.
Colombiana de Infraestructuras, S.A.S.
Concesiones Viales S. de R.L. de C.V.
Concretos Estructurales, S.A.
Conservial Infraestructuras, S.L.
Consorcio FCC Iquique Ltda.
Construcción Infraestructuras y Filiales de México, S.A. de C.V.
Construcciones Hospitalarias, S.A.
Constructora Meco-Caabsa, S.A. de C.V.
Constructora Túnel de Coatzacoalcos, S.A. de C.V.
Contratas y Ventas, S.A.
Corporación M&S de Nicaragua, S.A.
Desarrollo y Construcción DEYCO CRCA, S.A.
Edificadora MSG, S.A. (Panama)
Czech Republic
Algeria
Jacometrezo, 4 – Madrid
Federico Salmón, 13 – Madrid
France
Federico Salmón, 13 – Madrid
Czech Republic
Urbanización Las Buganvillas, 4 – Vera (Almería)
Portugal
Panama
Finca la Barca y el Ballestar, s/n – Barajas de Melo (Cuenca)
Colombia
Mexico
Nicaragua
Federico Salmón, 13 – Madrid
Chile
Mexico
Panama
El Salvador
Mexico
Av. de Santander, 3 1º – Oviedo (Asturias)
Nicaragua
Costa Rica
Panama
% Effective
ownership
Auditor
Ernst & Young
Deloitte
Samir Hadj Ali
Deloitte
SNR Audit
Deloitte
CMC Audit s.r.o.
Deloitte
Capital Auditors
ASTAF Auditores y
Consultores
Deloitte
Deloitte
Deloitte
26.01
51.00
51.00
13.01
51.00
51.00
51.00
51.00
51.00
30.60
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
52.00
100.00
60.00
55.60
100.00
100.00
100.00
100.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 119 of 141
Company
Registered office
% Effective
ownership
Auditor
326
Edificadora MSG, S.A. de C.V. (El Salvador)
Edificadora MSG, S.A. de C.V. (Nicaragua)
FCC Américas, S.A. de C.V.
FCC Américas Colombia, S.A.S.
FCC Américas Panamá, S.A.
FCC Colombia, S.A.S.
FCC Construcción, S.A.
FCC Construcción América, S.A.
FCC Construcción Chile, SPA
FCC Construcción Costa Rica, S.A.
FCC Construcción de México, S.A. de C.V.
FCC Construcción Perú, S.A.C.
FCC Constructii Romania, S.A.
FCC Construction Australia Pty Ltd
FCC Construction Inc.
FCC Construction International B.V.
FCC Construction Ireland DAC
El Salvador
Nicaragua
Mexico
Colombia
Panama
Colombia
Balmes, 36 – Barcelona
Costa Rica
Chile
Costa Rica
Mexico
Peru
Romania
Australia
USA
Netherlands
Ireland
FCC Construction Northern Ireland Limited
United Kingdom
FCC Construçoes do Brasil Ltda.
FCC Edificadora CR, S.A.
FCC Electromechanical LLC.
FCC Elliott Construction Limited
FCC Industrial de Panamá, S.A.
Brazil
Costa Rica
Saudi Arabia
Ireland
Panama
FCC Industrial e Infraestructuras Energéticas, S.A. Unipersonal
Av. Camino de Santiago, 40 – Madrid
FCC Industrial Perú, S.A.
FCC Industrial UK Limited
FCC Inmobilien Holding GmbH
FCC Servicios Industriales y Energéticos México, S.A. de C.V.
Peru
United Kingdom
Germany
Mexico
100.00
100.00
50.00
50.00
50.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Deloitte
Deloitte
ASTAF Auditores y
Consultores
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Ernst & Young
Deloitte
Deloitte
Deloitte
Deloitte
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 120 of 141
327
Company
Registered office
FCC Soluciones de Seguridad y Control, S.L.
Federico Salmón, 13 – Madrid
Fomento de Construcciones Colombianas, S.A.S.
Fomento de Construcciones y Contratas Canadá Ltd.
Colombia
Canada
Guzmán Energy O&M, S.L.
Av. Camino de Santiago, 40 – Madrid
Impulsora de Proyectos Proserme, S.A. de C.V.
Mexico
Mantenimiento de Infraestructuras, S.A.
Federico Salmón, 13 2a planta – Madrid
Meco Santa Fe Limited
Megaplás, S.A. Unipersonal
Megaplás Italia, S.p.A.
Participaciones Teide, S.A.
Prefabricados Delta, S.A. Unipersonal
Ramalho Rosa Cobetar Sociedade de Construçoes, S.A.
Servicios Dos Reis, S.A. de C.V.
CEMENT
Áridos de Navarra, S.A.
Canteras de Alaiz, S.A.
Carbocem, S.A.
Cementos Alfa, S.A.
Cementos Portland Valderrivas, S.A.
Dragon Alfa Cement Limited
Dragon Portland Limited
Prebesec Mallorca, S.A.
Select Beton, S.A.
Société des Ciments d’Enfidha
Tratamiento Escombros Almoguera S.L.
Uniland Acquisition Corporation
Uniland International B.V.
Uniland Trading B.V.
Belize
Hilanderas, 4-14 – La Poveda – Arganda del Rey (Madrid)
Italy
Av. Camino de Santiago, 40 – Madrid
Federico Salmón, 13 – Madrid
Portugal
Mexico
Estella, 6, Pamplona (Navarra)
Dormilatería, 72 – Pamplona (Navarre)
María Tubau, 9 – 4 planta – Madrid
María Tubau, 9 – 4 planta – Madrid
Dormilatería, 72 – Pamplona (Navarre)
United Kingdom
United Kingdom
Conradors (P.I. Marratxi) - Marratxi (Balearic Islands)
Tunisia
Tunisia
María Tubau, 9 - 4 planta - Madrid
USA
Netherlands
Netherlands
% Effective
ownership
Auditor
100.00
100.00
100.00
52.13
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
65.47
69.46
69.15
87.35
99.20
87.35
99.20
67.77
87.13
87.16
50.62
99.20
99.20
99.20
Deloitte
Deloitte
Deloitte
Collegio Sindicale
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte - Guellaty
Deloitte - Guellaty
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 121 of 141
Company
OTHER ACTIVITIES
Asesoría Financiera y de Gestión, S.A.
Autovía Conquense, S.A.
Bvefdomintaena Beteiligungsverwaltung GmbH
Cemark - Mobiliario Urbano e Publicidade, S.A.
Concesionaria Atención Primaria, S.A.
Registered office
Federico Salmón, 13 – Madrid
Av. Camino de Santiago, 40 – Madrid
Austria
Portugal
Gremi de Sabaters, 21 (Loc. A. 15.2) - Palma de Mallorca (Balearic Islands)
Concesionaria Túnel de Coatzacoalcos, S.A. de C.V.
Mexico
Costa Verde Habitat, S.L.
FC y C, S.L. Unipersonal
FCC Concesiones, S.A. Unipersonal
FCC Concesiones de Infraestructuras, S.L.
FCC Midco, S.A.
FCC Topco, S.A.R.L.
FCC Versia, S.A.
Fedemes, S.L.
Per Gestora, S.L.
PPP Infraestructure Investments B.V.
Vela Boravica Koncern d.o.o.
Av. Camino de Santiago, 40 – Madrid
Federico Salmón, 13 – Madrid
Federico Salmón, 13 – Madrid
Av. Camino de Santiago, 40 – Madrid
Luxembourg
Luxembourg
Av. Camino de Santiago, 40 – Madrid
Federico Salmón, 13 – Madrid
Federico Salmón, 13 – Madrid
Países Bajos
Croacia
Vialia Sociedad Gestora de Concesiones de Infraestructuras, S.L.
Av. Camino de Santiago, 40 – Madrid
Grupo Cedinsa Concessionària
Cedinsa Concessionària, S.A.
Cedinsa Conservació, S.L. Unipersonal
Av. Josep Tarradellas, 38 – Barcelona
Ctra. C-16 – Puig-Reig (Barcelona)
Cedinsa d’Aro Concessionària de la Generalitat de Catalunya, S.A.Unipersonal
Av. Josep Tarradellas, 38 – Barcelona
Cedinsa Eix Llobregat Concessionària de la Generalitat de
Catalunya, S.A.Unipersonal
Cedinsa Eix Transversal Concessionària de la Generalitat de
Catalunya, S.A.Unipersonal
Av. Josep Tarradellas, 38 – Barcelona
Av. Josep Tarradellas, 38 – Barcelona
Cedinsa Ter Concessionària de la Generalitat de Catalunya, S.A.Unipersonal
Av. Josep Tarradellas, 38 – Barcelona
328
% Effective
ownership
Auditor
100.00
100.00
100.00
100.00
82.50
85.60
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
51.00
51.00
51.00
51.00
Deloitte
PricewaterhouseCoopers
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
51.00
Deloitte
51.00
Deloitte
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Annex II Companies jointly controlled with third parties outside the Group
(consolidated using the equity method)
Company
Registered office
2020
2019
% Effective
ownership
Auditor
Carrying amount of the backlog
ENVIRONMENTAL SERVICES
Atlas Gestión Medioambiental. S.A.
Beacon Waste Limited
Ecoparc del Besós. S.A.
Ecoserveis Urbans de Figueres. S.L.
Electrorecycling. S.A.
Viriato. 47 – Barcelona
United Kingdom
Av. Torre d'en Mateu. P.I. Can Salvatella s/n –
Barcelona
Av. de les Alegries. s/n – Lloret de Mar (Gerona)
Ctra. BV – 1224 Km. 6.750 – El Pont de Vilomara i
Rocafort (Barcelona)
Empresa Mixta de Limpieza de la Villa de Torrox. S.A.
Plaza de la Constitución. 1 – Torrox (Málaga)
Empresa Mixta de Medio Ambiente de Rincón de la Victoria. S.A.
Barrio Las Zorreras. 8 – Rincón de la Victoria (Málaga)
Fisersa Ecoserveis. S.A.
Alemanya. 5 – Figueres (Gerona)
Gestión y Valorización Integral del Centro. S.L.
De la Tecnología. 2. P.I. Los Olivos – Getafe (Madrid)
Ingeniería Urbana. S.A.
Calle l esquina calle 3. P.I. Pla de la Vallonga – Alicante
Mediaciones Comerciales Ambientales. S.L.
Av. Barcelona. 109. P.5 – Sant Joan Despí (Barcelona)
Mercia Waste Management Ltd.
United Kingdom
Palacio de Exposiciones y Congresos de Granada. S.A.
Paseo del Violón. s/n – Granada
Pilagest. S.L.
Reciclado de Componentes Electrónicos. S.A.
Ctra. BV – 1224 Km. 6.750 – El Pont de Vilomara i
Rocafort (Barcelona)
Calle El Matorral (Parque Actividades
Medioambientales) – Aznalcóllar (Sevilla)
Servicios de Limpieza Integral de Málaga III. S.A.
Camino Medioambiental (Ed. Limasa). 23–Málaga
Servicios Urbanos de Málaga. S.A.
Av. Camino de Santiago. 40 – Madrid
9,808
1,250
7,803
138
1,284
360
316
165
322
4,210
359
11,781
(1,969)
211
1,924
−
3,216
11,933
1,361
6,638
153
1,294
400
275
164
476
4,261
793
10,682
(1,850)
212
2,125
1,965
668
50.00
50.00
49.00
50.00
33.34
50.00
50.00
36.36
50.00
35.00
50.00
50.00
50.00
50.00
Ernst & Young
Deloitte
Castellà Auditors
Consultors S.L.P.
Audinfor
Audinfor
Audinfor
Auditoria i Control
Auditors S.L.P.
Deloitte
Deloitte
Deloitte
Hispanobelga Econo-
mistas Auditores. S.L.P.
37.50
KPMG
26.01
51.00
PricewaterhouseCoopers
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3
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Company
Severn Waste Services Limited
Registered office
United Kingdom
Tratamiento Industrial de Residuos Sólidos. S.A.
Rambla Cataluña. 91 – Barcelona
Carrying amount of the backlog
2020
199
1,580
2019
209
1,119
% Effective
ownership
50.00
33.33
Auditor
Deloitte
Castellà Auditors
Consultors. S.L.P.
330
Camino Artigabidea. 10 – Bilbao (Vizcaya)
16,060
17,234
30.00
KPMG
Zabalgarbi. S.A.
AQUALIA
Aguas de Langreo, S.L.
Aguas de Narixa, S.A.
Aigües de Girona, Salt i Sarrià del Ter, S.A.
Alonso del Riesgo, 3 – Langreo (Asturias)
Málaga, 11 – Nerja (Málaga)
Ciutadans, 11 – Gerona
Compañía de Servicios Medioambientales do Atlántico, S.A.
Estrada de Cedeira Km. 1 – Narón (La Coruña)
Constructora de Infraestructura de Agua de Querétaro, S.A. de C.V.
Mexico
Empresa Municipal de Aguas de Benalmádena EMABESA, S.A.
Explanada de Tivoli, s/n – Arroyo de la Miel (Málaga)
Girona, S.A.
Travesía del Carril, 2 – Gerona
HA Proyectos Especiales Hidráulicos S. de R.L. de C.V.
Orasqualia Construction, S.A.E.
Mexico
Egypt
Orasqualia for the Development of the Waste Water Treatment Plant S.A.E.
Egypt
Orasqualia Operation and Maintenance, S.A.E.
CONSTRUCTION
Administración y Servicios Grupo Zapotillo, S.A. de C.V.
Altos del Javier, S.A.
Consorcio Tramo Dos S.A. DE C.V.
Construcciones Olabarri, S.L.
Egypt
Mexico
Panama
Mexico
Ripa, 1 – Bilbao (Vizcaya)
Constructora de Infraestructura de Agua de Querétaro, S.A. de C.V.
Constructora Durango Mazatlán, S.A. de C.V.
Constructora Nuevo Necaxa Tihuatlán, S.A. de C.V.
Constructores del Zapotillo, S.A. de C.V.
Ctra. Cabo San Lucas San José, S.A. de C.V.
Mexico
Mexico
Mexico
Mexico
Mexico
−
909
237
162
296
(2,996)
1,584
1,701
992
(100)
11,943
1,130
108
−
8
5,734
−
1,403
(29,993)
1,114
−
−
885
722
162
302
(2,995)
1,745
1,672
1,132
(110)
11,700
1,797
143
−
−
5,521
−
1,613
(34,403)
1,528
−
24.99
25.50
13.71
24.99
12.50
25.50
17.14
25.25
25.50
25.50
25.50
50.00
50.00
50.00
49.00
24.50
51.00
40.00
50.00
50.00
Capital Auditors and
Consultants. S.L.
Cataudit Auditors
Associats. S.L.
Audinfor
Deloitte
Audinfor
Cataudit Auditors
Associats. S.L.
Grant Thornton SC
KPMG
Deloitte
Deloitte
Charman Auditores
Deloitte
Deloitte
Grant Thornton
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Company
Dragados FCC Canada Inc.
Registered office
Canada
Elaboración de Cajones Pretensados, S.L.
Av. Camino de Santiago, 40 – Madrid
Integral Management Future Renewables, S.L.
A Condomiña, s/n – Ortoño (La Coruña)
North Tunnels Canada Inc.
OHL Co Canada & FCC Canada Ltd. Partnership
Canada
Canada
Operaciones y Servicios para la Industria de la Construcción, S.A. de C.V.
Mexico
Servicios Empresariales Durango-Mazatlán, S.A. de C.V.
Mexico
Carrying amount of the backlog
2020
−
2
3,488
(1,674)
(65,044)
−
119
2019
(862)
2
3,257
(1,782)
(62,695)
−
136
% Effective
ownership
Auditor
Deloitte
50.00
50.00
50.00
50.00
50.00
50.00
51.00
CEMENT
Pedrera de l’Ordal, S.L.
OTHER ACTIVITIES
Ibisan Sociedad Concesionaria, S.A
Ctra. N 340 km. 1229.5 - Subirats (Barcelona)
3,243
2,706
49.50
Deloitte
Av. Isidor Macabich, s / n. Sant Rafel de Sa Creu
(Balearic Islands)
8,204
7,291
50.00
Deloitte
MDM-Teide, S.A.
Panama
Sociedad Concesionaria Tranvía de Murcia, S.A.
Paseo de la Ladera, 79– Murcia
Teide-MDM Quadrat, S.A.
Grupo FM Green Power Investments
Enestar Villena. S.A.
Panama
Maestro Chanzá, 3 – Villena (Alicante)
Estructuras Energéticas Generales. S.A. Unipersonal
Paseo de la Castellana, 91 planta 11 – Madrid
Ethern Electric Power. S.A.
FM Green Power Investments. S.L.
Guzmán Energía. S.L.
Helios Patrimonial 1. S.L. Unipersonal
Helios Patrimonial 2. S.L. Unipersonal
Olivento. S.L. Unipersonal
Paseo de la Castellana, 91 planta 11 – Madrid
Paseo de la Castellana, 91 planta 11 – Madrid
Portada, 11 – Palma del Río (Córdoba)
Paseo de la Castellana, 91 planta 11 – Madrid
Paseo de la Castellana, 91 planta 11 – Madrid
Paseo de la Castellana, 91 planta 11 – Madrid
161
22,572
60
16,462
175
21,248
65
17,074
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
50.00
50.00
50.00
49.00
49.00
49.00
49.00
49.00
34.30
49.00
49.00
49.00
Deloitte
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
TOTAL VALUE OF CONSOLIDATED COMPANIES
USING THE EQUITY METHOD (JOINT VENTURES)
40,842
38,141
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Annex III Associates (consolidated using the equity method)
Company
Registered office
ENVIRONMENTAL SERVICES
Aprochim Getesarp Rymoil, S.A.
Aragonesa de Gestión de Residuos, S.A.
P.I. Logrezana s/n– Carreño (Asturias)
Paseo María Agustín, 36 – Zaragoza
Aragonesa de Tratamientos Medioambientales XXI, S.A.
Ctra. Castellón Km. 58 – Zaragoza
Betearte, S.A.U.
Cr. BI – 3342 pk 38 Alto de Areitio – Mallabia (Vizcaya)
Gestión Integral de Residuos Sólidos, S.A.
Serrans, 12 – 14 Ent. 1 – Valencia
Giref Generación Renovable
FCC Group - CEE
A.K.S.D. Városgazdálkodási Korlátolt FT
ASTV s.r.o.
FCC + NHSZ Környezetvédelmi HKft
FCC Hlohovec s.r.o.
Huber Abfallservice Verwaltungs GmbH
Huber Entsorgungs GmbH Nfg KG
Killer GmbH
Killer GmbH & Co KG
Recopap s.r.o.
FCC Group - PFI Holdings
CI III Lostock Efw Limited
Lostock Power Limited
Lostock Sustainable Energy
Pedro Lafayo, 6 - Ibiza
Hungary
Czech Republic
Hungary
Slovakia
Austria
Austria
Austria
Austria
Slovakia
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Carrying amount of the backlog
2020
2019
% Effective
ownership
Auditor
1,117
12
609
(91)
5,298
−
6,310
−
−
−
−
−
−
−
−
−
1,016
15
611
(376)
5,208
−
6,264
−
−
−
−
−
−
−
−
−
22,766
9,797
−
−
−
−
−
−
32.17
12.00
33.00
33.33
49.00
20.00
25.50
49.00
50.00
50.00
49.00
49.00
50.00
50.00
50.00
40.00
40.00
40.00
CGM Auditores, S.L.y
Villalba, Envid y Cia.
Auditores, S.L.P.
DULA Auditores, S.L.P.
Interauditor
Interauditor
ConVisio
ConVisio
Rittmann
Rittmann
Deloitte
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 126 of 141
Company
Tirme Group
Balear de Trituracions, S.L.
Mac Insular, S.L.
Mac Insular Segunda, S.L.
Tirme, S.A.
Sogecar, S.A.
AQUALIA
Aguas de Archidona, S.L.
Aguas de Denia, S.A.
Aguas de Guadix, S.A.
Aguas de Priego, S.L.
Registered office
Cr. de Sóller Km. 8,2 – Palma de Mallorca
(Balearic islands)
P.I. Ses Veles, (Cl. Romaní), 2 – Bunyola
(Balearic islands)
Cr. de Sóller Km. 8,2 – Palma de Mallorca
(Balearic islands)
Ctra. Soller Km. 8,2 Camino de Son Reus –
Palma de Mallorca (Balearic islands)
Polígono Torrelarragoiti – Zamudio (Vizcaya)
Pz. Ochavada, 1 – Archidona (Málaga)
Pedro Esteve, 17– Denia (Alicante)
Plaza Constitución, 1– Guadix (Granada)
Plaza Constitución, 3 – Priego de Córdoba (Córdoba)
Aguas del Puerto Empresa Municipal, S.A.
Aurora, 1 – El Puerto de Santa María (Cádiz)
Aigües de Blanes, S.A.
Canigó, 5 – Blanes (Gerona)
Aigües del Segarra Garrigues, S.A.
C/ Mas d’en Colom, 14 – Tárrega (Lleida)
Aigües del Vendrell, S.A.
Aquos El Realito, S.A. de C.V.
Codeur, S.A.
Vella, 1 – El Vendrell (Tarragona)
Mexico
Mayor, 22 – Vera (Almería)
Concesionaria de Desalación de Ibiza, S.A.
Rotonda de Santa Eulalia, s/n – Ibiza (Balearic Islands)
Constructora de Infraestructuras de Aguas de Potosí, S.A. de C.V.
Mexico
EMANAGUA Empresa Mixta Municipal de Aguas de Nijar, S.A.
Plaza de la Glorieta, 1 – Nijar (Almería)
Empresa Mixta de Aguas de Ubrique, S.A.
Empresa Mixta de Aguas de Jodar, S.A.
Juzgado, s/n – Ubrique (Cádiz)
Pz. España, 1 – Jodar (Jaén)
Empresa Municipal de Aguas de Algeciras, S.A.
Av. Virgen del Carmen – Algeciras (Cádiz)
Empresa Municipal de Aguas de Linares, S.A.
Cid Campeador, 7 – Linares (Jaén)
−
−
−
−
499
62
440
179
(33)
3,910
38
−
509
−
6,560
1,208
(5,396)
320
77
13
153
198
Carrying amount of the backlog
2020
6,783
2019
7,423
333
% Effective
ownership
Auditor
20.00
14.00
Deloitte
15.00
20.00
Deloitte
−
−
−
−
482
30.00
75
408
161
(16)
4,094
68
−
503
7,499
6,504
1,243
(5,395)
356
88
6
151
279
24.48
16.83
20.40
24.99
24.98
8.40
0.52
24.99
24.99
13.26
25.50
12.50
24.99
24.99
24.99
24.99
Centium Auditores
Audinfor
Audinfor
Cd Auditors Auditoria I
Consulting SL
Deloitte
Gm Auditors SL
Deloitte México
BDO Auditores
Centium Auditores
Deloitte
Centium Auditores
Next Auditores y
Consultores
24.99
Centium Auditores
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Company
Registered office
Empresa Municipal de Aguas de Toxiria, S.A.
Plaza de la Constitución – Torredonjimeno (Jaén)
Nueva Sociedad de Aguas de Ibiza, S.A.
Omán Sustainable Water Services SAOC
Operadora El Realito, S.A. de C.V.
Prestadora de Servicios Acueducto El Realito, S.A. de C.V.
Av. Bartolomé Roselló, 18 - Ibiza (Balearic Islands)
Oman
Mexico
Mexico
Proveïments d’Aigua, S.A.
Astúries, 13 - Gerona
Sera Q A Duitama E.S.P., S.A.
Suministro de Aguas de Querétaro, S.A. de C.V.
CONSTRUCTION
Agrenic Complejo Industrial Nindiri, S.A.
Aigües del Segarra Garrigues, S.A.
Cafig Constructores, S.A. de C.V.
Construcciones y Pavimentos, S.A.
Constructora de Infraestructuras de Aguas de Potosí, S.A. de C.V.
Constructora San José - Caldera CSJC, S.A.
Constructora San José - San Ramón SJSR, S.A.
Constructora Terminal Valle de México, S.A. de C.V.
Desarrollo Cuajimalpa, S.A. de C.V.
Efi Túneles Necaxa, S.A. de C.V.
FCC Tarrio TX-1 Construçao Ltda
M50 (D&C) Limited
N6 (Construction) Limited
Prestadora de Servicios Acueducto El Realito, S.A. de C.V.
Promvias XXI, S.A.
Roadbridge FCC JV Limited
Servicios CTVM, S.A. de C.V.
Serv. Terminal Valle de México, S.A. de C.V.
Colombia
Mexico
Nicaragua
C/ Mas d’en Colom, 14 – Tárrega (Lleida)
Mexico
Panama
Mexico
Costa Rica
Costa Rica
Mexico
Mexico
Mexico
Brazil
Ireland
Ireland
Mexico
Anglesola, 6 - Barcelona
Ireland
Mexico
Mexico
Carrying amount of the backlog
2020
92
83
953
278
1
603
8
9,136
2,194
7,193
3,518
4
(4)
(1,548)
(60)
422
6
319
−
2019
68
65
1,030
316
1
571
13
10,376
2,108
6,905
3,391
4
(4)
(1,683)
(63)
8,915
7
379
-
(3,273)
(38,413)
(3,273)
(38,413)
1
1
951
2
32
1
1
143
2
27
% Effective
ownership
Auditor
24.99
20.40
24.99
7.65
12.50
7.71
15.61
25.51
50.00
24.68
45.00
50.00
24.50
50.00
50.00
14.28
25.00
45.00
70.00
42.50
42.50
24.50
25.00
50.00
14.28
14.28
Centium Auditores
Ernst & Young
Antoni Riera Economistes
Auditors
Deloitte Mexico
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Mazars
Deloitte
Deloitte
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335
Hormigones en Masa de Valtierra, S.A.
Ctra. Cadreita Km. 1 - Valtierra (Navarra)
Hormigones Galizano, S.A.
Ctra. Nacional, 634 - Ambrosero - Barcena de Cicero
(Cantabria)
Hormigones Reinares, S.A.
Pintor Murillo, s/n - Calahorra (La Rioja)
Hormigones y Áridos del Pirineo Aragonés, S.A.
Ctra. Nacional, 260 Km. 516,5- Sabiñánigo (Huesca)
Company
CEMENT
Aplicaciones Minerales, S.A.
Canteras y Hormigones VRE, S.A.
Hormigones Castro, S.A.
Hormigones de la Jacetania, S.A.
Hormigones del Baztán, S.L.
Hormigones Delfín, S.A.
Lázaro Echevarría, S.A.
Navarra de Transportes, S.A.
Novhorvi, S.A.
Portcemen, S.A.
Terminal Cimentier de Gabes-Gie
Vescem-LID, S.L.
Giant Group
Coastal Cement Corporation
Dragon Energy LLC.
Dragon Products Company Inc.
Giant Cement Company
Giant Cement Holding Inc.
Giant Cement NC Inc.
Giant Cement Virginia Inc.
Registered office
Carrying amount of the backlog
2020
2019
% Effective
ownership
Auditor
Camino Fuente Herrero - Cueva Cardiel (Burgos)
Berroa (P.I. La Estrella) - Tanojar (Navarra)
Ctra. Nacional 634 - Ambrosero - Barcena de Cicero
(Cantabria)
Llano de la Victoria – Jaca (Huesca)
Berroa (P.I. La Estrella) - Tanojar (Navarra)
Venta Blanca - Peralta (Navarra)
504
(370)
303
1,327
414
857
2,369
146
833
5,941
8,065
525
125
654
(389)
317
−
408
666
2,356
150
713
5,886
8,041
565
134
1,230
35
27
34.29
49.60
34.94
62.00
49.60
49.60
39.68
43.68
49.60
49.60
27.78
33.06
33.06
32.99
29.05
24.75
44.64
44.64
44.64
44.64
44.64
44.64
44.64
KPMG
KPMG
KPMG
KPMG
Ernst & Young
Deloitte
P.I. Isasia- Alsasua (Navarra)
C/Circunvalación Inguraketa s/n - Olazagutia (Navarra)
Portal de Gamarra, 25 - Vitoria -Gasteiz (Alava)
Muelle Contradique Sur-Puerto Barcelona - Barcelona
1,195
Tunisia
Valencia, 245 - Barcelona
33
27
USA
USA
USA
USA
USA
USA
USA
9,973
13,661
−
−
−
−
−
−
−
−
−
−
−
−
−
−
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Company
Registered office
Carrying amount of the backlog
2020
2019
% Effective
ownership
Auditor
Giant Resource Recovery Inc.
Giant Resource Recovery - Arvonia Inc.
Giant Resource Recovery - Attalla Inc.
Giant Resource Recovery - Harleyville, Inc.
Giant Resource Recovery - Sumter Inc.
Keystone Cement Company
Sechem Inc.
OTHER ACTIVITIES
Concessió Estacions Aeroport L9, S.A.
Future Valleys Project Co. Limited
Las Palmeras de Garrucha, S.L.
Metro de Lima Línea 2, S.A.
Sigenera, S.L.
USA
USA
USA
USA
USA
USA
USA
Av. Carrilet, 3 Edificio D – L’Hospitalet de Llobregat
(Barcelona)
United Kingdom
Mayor, 19 – Garrucha (Almería)
Peru
Av. Linares Rivas, 1 – La Coruña
World Trade Center Barcelona, S.A. de S.M.E.
Moll Barcelona (Ed. Este), s/n – Barcelona
Grupo Realia Business
As Cancelas Siglo XXI, S.L.
Boane 2003, S.A. Unipersonal
Guillena Golf, S.L. Unipersonal
Hermanos Revilla, S.A.
Av. Camino de Santiago, 40 – Madrid
Paseo de la Castellana, 41 – Madrid
Paseo de la Castellana, 216 – Madrid
Paseo de la Castellana, 41 – Madrid
Inversiones Inmobiliarias Rústicas y Urbanas 2000, S.L.
Ayala, 3 – Madrid
Planigesa, S.A.
Realia Business, S.A.
Realia Contesti, S.R.L.
Realia Patrimonio, S.L.U.
Av. Camino de Santiago, 40– Madrid
Av. Camino de Santiago, 40 – Madrid
Romania
Av. Camino de Santiago, 40 – Madrid
−
−
−
−
−
−
−
−
−
44.64
44.64
44.64
44.64
44.64
44.64
44.64
−
−
−
−
−
−
−
−
6,122
49.00
Deloitte
13
971
26,215
380
10,137
278,103
−
975
25,704
376
9,319
276,540
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
42.50
20.00
18.25
37.40
24.01
37.40
18.70
18.25
37.40
18.25
12.48
28.42
37.40
37.40
37.40
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
TOTAL VALUE OF CONSOLIDATED COMPANIES USING
HE EQUITY METHOD (ASSOCIATED COMPANIES)
382,126
390,841
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 130 of 141
Annex IV Changes in the scope of consolidation
337
ADDITIONS
Company
FULLY CONSOLIDATED
Aqualia Latinoamérica, S.A.
Aqualia Portugal, S.A.
Aqualia Villa del Rosario, SA
Ecosistema de Morelos S.A. de C.V.
FCC Concesiones, S.A. Unipersonal
FCC Construction Australia Pty Ltd
FCC Energy Holdings Ltd
Green Energy Finance Solutions Ltd
Green Recovery Projects Ltd
H.A.A. & CO. Integrated Services
Registered office
Company
Registered office
DERECOGNITIONS
Colombia
Portugal
Colombia
Mexico
Federico Salmón, 13 – Madrid
Australia
United Kingdom
United Kingdom
United Kingdom
Saudi Arabia
FULLY CONSOLIDATED
Ecoeffect DZZD-Consortium (2)
Ekostone Áridos Siderúrgicos, S.L. (3)
FCC Bulgaria E.O.O.D. (2)
RSUO Dobritch (2)
Tema Concesionaria, S.A. (3)
Bulgaria
Superpuerto – Dique de
Poniente. Punta Lucero, 5 –
Ziérbana (Vizcaya)
Bulgaria
Bulgaria
Porto Pi, 8– Palma de Mallorca
(Balearic Islands)
Zona Verde – Promoçao e Marketing Limitada (4)
Portugal
JOINT VENTURES
Servicios de Limpieza Integral de Málaga III, S.A. (5)
Camino Medioambiental (Ed.
Limasa), 23–Málaga
CHANGES IN THE SCOPE OF CONSOLIDATION
Miejskie Przedsiebiorstwo Gospodarki Komunalnej sp. z.o.o.
Poland
Qatarat Saquia Desalination
Saudi Arabia
Siewierskie Przedsiebiorstwo Gospodarki Komunalnej sp. z.o.o.
Poland
JOINT VENTURES
Consorcio Tramo Dos S.A. DE C.V.
Mexico
Company
Change in the consolidation
method (current method)
Change in the consolidation
method (previous method)
ASSOCIATES
Future Valleys Project Co. Limited
United Kingdom
Hormigones de la Jacetania, S.A. Equity method (associate)
Fully consolidated
Aquos El Realito, S.A. de C.V.
Fully consolidated
Equity method (associate)
(1) Derecognition due to a merger with FCC Aqualia, S.A.
(2) Derecognition due to disposal
(3) Derecognition due to liquidation
(4) Derecognition due to merger with Cemark - Mobiliario Urbano e Publicidade, S.A.
(5) Derecognition due to remunicipalisation of the service
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 131 of 141
Annex V
Joint ventures, economic interest groups and other enterprises jointly
managed with third parties outside the Group
Proportional
integration at 31
December 2020
Proportional
integration at 31
December 2020
338
ENVIRONMENTAL SERVICES
Puerto JV
Absa JV - Perica
Absa – Perica II JV
A Coruña Limpieza JV
Aeropuerto VI JV
Agarbi JV
Agarbi Bi JV
Agarbi Interiores JV
Aizmendi JV
Akei JV
Alcantarillado Melilla JV
Alella JV
Alumbrado Tias JV
Arazuri 2016 JV
Arazuri 2020 JV
Arcos JV
Artigas JV
ARUCAS II JV
Bailin Etapa 2 JV
Baix Ebre-Montsià JV
Berango JV
50.00
60.00
60.00
70.00
50.00
60.00
60.00
60.00
60.00
60.00
50.00
50.00
67.00
50.00
50.00
51.00
60.00
70.00
60.00
60.00
60.00
Bilboko Saneamendu JV
Bilboko Saneamendu Bi JV
Bilketa 2017 JV
Biocompost de Álava JV
Bizkaiako Hondartzak JV
Boadilla JV
Cabrera de Mar JV
Cana Putxa JV
Carma JV
Castellana – Po JV
Cgr Guipuzcoa JV
Chipiona JV
CMG2 Lanak JV
CMG2 Kudeaketa JV
Contenedores las Palmas JV
Contenedores Madrid JV
Contenedores Madrid 2 JV
CTR - Vallès JV
Ctr. de lalt Empordà JV
Cua JV
Donostiako Garbiketa JV
Dos Aguas JV
50.00
50.00
60.00
50.00
50.00
50.00
50.00
20.00
50.00
50.00
35.14
50.00
82.00
82.00
30.00
38.25
36.50
20.00
45.00
50.00
70.00
35.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3
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339
Proportional
integration at 31
December 2020
Proportional
integration at 31
December 2020
Eco A Coruña JV
Ecogondomar JV
Ecoparque Cáceres JV
Ecourense JV
Efic. Energ. Puerto del Rosario JV
Energía Solar Onda JV
Enllumenat Sabadell JV
Envases Ligeros Málaga JV
Epeleko Konposta JV
Epeleko Planta JV
Epremasa Provincial JV
Eretza JV
Es Vedra JV
Etxebarri JV
FCC - Ers Los Palacios JV
FCC – Hijos de Moreno, S.A. JV
FCC Perica I JV
FCC - SuFI Majadahonda JV
FCC-Mcc Santiago del Teide JV
F.L.F. La Plana JV
F.S.S. JV
Fuentes las Palmas JV
Gestió Integral de Runes del Papiol JV
Gestión Instalación III JV
Giref JV
Goierri Garbia JV
Guipuzkoako Hondartzak 2020 JV
85.00
70.00
50.00
50.00
60.00
25.00
50.00
50.00
60.00
35.00
55.00
70.00
25.00
60.00
50.00
50.00
60.00
50.00
80.00
47.00
99.00
25.00
40.00
34.99
20.00
60.00
60.00
Guipuzkoako Portuak 2019 JV
Icat Lote 7 JV
Icat Lote 11 JV
Icat Lote 15 JV
Icat Lote 20 and 22 JV
Bilbao Interiors JV
Bilbao Interiors II JV
Jardineras 2019 JV
Jardines Mogán JV
Jardines Pto del Rosario JV
Jard. Universitat Jaume I JV
Jerez JV
Jundiz II JV
Kimaketak JV
Kimaketak Hiru JV
Kimeketak Bi JV
la Lloma del Birlet JV
Lagunas II JV
Lagunas de Arganda JV
Las Caldas Golf JV
Legio VII JV
Lekeitioko Mantenimendua JV
Lezo Garbiketa 2018 JV
Limpieza Santa Coloma JV
Limpieza y RSU Lezo JV
Logroño Limpio JV
Luze Vigo JV
40.00
50.00
50.00
50.00
70.00
80.00
70.00
60.00
51.00
78.00
50.00
80.00
51.00
50.00
50.00
50.00
80.00
33.34
50.00
50.00
50.00
60.00
55.00
50.00
55.00
50.00
40.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 133 of 141
340
Proportional
integration at 31
December 2020
Proportional
integration at 31
December 2020
LV RSU Vitoria-Gasteiz JV
LV y RSU Arucas JV
LV Zumaia JV
LV Zumarraga JV
Mant. Edificios Valencia JV
Manteniment Lot 12 JV
Mantenimiento Reg Cornellà JV
Mantenimiento Breña Alta JV
Marepa – Carpa Pamplona JV
Melilla JV
Mnto. Mediterranea FCC JV
Mnto. Edifici Mossos Esquadra
Muérdago JV
Muskiz JV
Neteja Illes Balears JV
Onda Exploitation JV
Pájara JV
Pamplona JV
Parla JV
Parques Infantiles LP JV
Pasaia JV
Pasaiako Portua BI JV
Piscina Cubierta Paiporta JV
Plan Residuos JV
Planta Estabilizac. Tudela JV
Planta Rsi Tudela JV
Planta Transferencia FTV 2 JV
60.00
70.00
60.00
60.00
55.00
75.00
60.00
50.00
50.00
50.00
50.00
70.00
60.00
60.00
50.00
33.33
70.00
80.00
50.00
50.00
70.00
55.00
90.00
47.50
55.00
60.00
70.00
Planta Tr. Fuerteventura JV
Planta Tratamiento Valladolid JV
Platges Vinarós JV
Playas Gipuzkoa JV
Playas Gipuzkoa II JV
Playas Gipuzkoa III JV
Poniente Almeriense JV
Portmany JV
Puerto II JV
Puerto de Pasaia JV
Puerto de Pto del Rosario JV
RBU Els Ports JV
RBU Villa-Real JV
Recollida Segrià JV
Reg Cornellà JV
Residencia JV
Residuos 3 Zonas Navarra JV
RSU Bilbao II JV
RSU Chipiona JV
RSU Inca JV
RSU LV S. Bme. Tirajana JV
RSU Málaga JV
RSU Sestao JV
RSU Tolosaldea JV
S.U. Alicante JV
S.U. Benicassim
S.U. Bilbao
70.00
90.00
50.00
55.00
55.00
55.00
50.00
50.00
70.00
55.00
70.00
50.00
47.00
60.00
60.00
50.00
60.00
60.00
50.00
80.00
50.00
50.00
60.00
60.00
33.33
35.00
60.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 134 of 141
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S.U. Oropesa del Mar
Saneamiento Urbano Castellón JV
Saneamiento Vitoria-Gasteiz JV
Sanejament Cellera de Ter JV
San Miguel-Anaka JV
SAV – FCC Tratamientos JV
Seguretat Urbicsa JV
Selectiva Urola Kosta II 2017 JV
Selectiva las Palmas JV
Selectiva Sanlucar JV
Selectiva San Marcos II JV
Selectiva Urola Kosta JV
Sellado Vertedero Logroño JV
Solares Ceuta JV
Son Espases JV
Tolosako Garbiketa JV
Tolosako Garbiketa 2020 JV
Tolosaldea RSU 2018 JV
Transp. y Elim. RSU JV
Transporte RSU JV
Txingudiko Garbiketa JV
Urola Erdia JV
Urretxu Garbiketa JV
Urretxu y Zumarraga JV
Vertedero Gardelegui III JV
Vertresa JV
Vidrio Melilla JV
Proportional
integration at 31
December 2020
Proportional
integration at 31
December 2020
35.00
65.00
60.00
50.00
50.00
35.00
60.00
60.00
55.00
50.00
63.00
60.00
50.00
50.00
50.00
40.00
40.00
60.00
33.33
33.33
73.00
60.00
60.00
65.00
70.00
10.00
50.00
Vigo Recicla JV
Vilomara II JV
Vinaroz JV
Zamora Limpia JV
Zaragoza Delicias JV
Zarauzko Garbieta JV
Zumaia JV
Zurita II JV
AQUALIA
A.I.E. Costa Brava Abastament Aqualia-Sorea
A.I.E. Itam Delta de la Tordera
A.I.E. Sorea Aqualia
Abastament en Alta Costa Brava Empresa Mixta, S.A.
Aguas y Servicios de la Costa Tropical de Granada, A.I.E.
Empresa Mixta d’Aigües de la Costa Brava, S.A.
Empresa Mixta de Aguas y Servicios, S.A.
Gestión de Servicios Hidráulicos de Ciudad Real, A.I.E.
Consortium O&M Alamein
Abastecimiento Picadas Almoguera JV
Abu Rawash Construccion JV
Agua Santo Domingo JV
Aguas Alcalá JV
Aguas del Doramás JV
Alkhorayef-FCC Aqualia JV
Expansion SWDP Melilla JV
70.00
33.33
50.00
30.00
51.00
60.00
60.00
50.00
50.00
50.00
37.50
26.00
51.00
25.01
41.25
75.00
65.00
95.00
50.00
70.00
50.00
50.00
51.00
50.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 135 of 141
342
Proportional
integration at 31
December 2020
Proportional
integration at 31
December 2020
Badajoz Zona Este JV
Badajoz Zona Oeste JV
Calle Cruz JV
Cap Djinet JV
Cons. Gestor Ptar Salitre JV
Costa Tropical JV
Costa Tropical II JV
Costa Tropical III JV
Depuración Poniente Almeriense JV
Edar A Guarda 2013 JV
Edar Baeza JV
Edar Gijón JV
Edar Tablada JV
Explotación Itam Tordera JV
Gestión Cangas JV
Groupement Solidaire Jerba JV
Guadiana Pueblonuevo JV
Hidc - Hidr. – Inv Do Centr. Ace JV
Ibiza JV
Idam San Antoni JV
Idam Sant Antoni II JV
SWDP Santa Eulalia JV
UTE Idga Saneca
Infilco JV
Louro JV
Mostaganem JV
Obra Edar Argamasilla de Calatrava JV
50.00
50.00
80.00
50.00
30.00
51.00
51.00
51.00
75.00
50.00
50.00
60.00
50.00
50.00
70.00
50.00
51.00
50.00
50.00
50.00
50.00
50.00
70.00
50.00
65.00
50.00
70.00
OYM CAP Djinet JV
OYM Mostaganem JV
Ptar Ambato JV
Puebla Reina JV
SCC Sice JV
SEAFSA Lanzarote JV
Sentinas JV
TSE Riad JV
Vigo Piscinas JV
Zafra JV
CONSTRUCTION
ACE Caet Xxi Construçoes
ACE Ribeiradio-Ermida
Consorcio Cobra – FCC Industrial
Consorcio FCC Construcción-Ferrovial Agroman Ltda.
Fast Consortium Limited LLC
ACP du Port de la Condamine
Asoc. Astaldi-FCC-Salcef-Thales, Lot 2 A
Asoc. Astaldi-FCC-Salcef-Thales, Lot 2 B
Asoc. FCC Azvi Straco S. Atel-Micasasa
Asocierea FCC-Astaldi-Convensa, Tronson 3
Associate FCC Azvi S. Sighisoara - Atel
Astaldi - FCC JV
Atraque Ribera Fondo CS Ute
BSV Mersey Joint Venture Uninc
50.00
50.00
60.00
65.00
50.00
60.00
50.00
51.00
50.00
65.00
50.00
55.00
43.00
50.00
35.92
45.00
49.50
49.50
55.00
50.50
55.00
50.00
50.00
50.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 136 of 141
343
Proportional
integration at 31
December 2020
Proportional
integration at 31
December 2020
CJV-UJV
Consorcio Antioquía al Mar
Consorcio Centenario de Panamá Sociedad Accidental
Consorcio Chicago II
Consorcio CJV Constructor Metro Lima
Consorcio Epc Metro Lima
Consorcio FCC Americas
Consorcio FCC-FI
Consorcio FCC – Corredor de las Playas
Consorcio FCC – Corredor de las Playas II
Consorcio FCC-JJC (Puerto Callao)
Consorcio FCC Meco Santa Fe de Costa Rica
Consorcio Ica – FCC – Meco Pac-4
Consorcio Línea 2
Consorcio Línea 2 Ramal
Consorcio Línea Uno
Consorcio M&S Santa Fe Mca
Consorcio Nueva Esperanza
Consorcio Remos Fase I
Fast 5 – U.J.V.
FCC - Yuksel – Archidoron – Petroserv J.V.
Groupement FCC - Ingenium
J.V. Asocierea Arad-Timisoara FCC-Astaldi
J.V. Astaldi-FCC-UTI-Activ. Magistrala
J.V. Bypass Constata
J.V. Centure Otopeni Overpass
J.V Estension of Line 2 to Antohoupoli
35.92
40.00
50.00
60.00
25.50
18.25
50.00
50.00
51.00
51.00
50.00
50.00
43.00
40.00
40.00
45.00
50.00
63.00
60.00
28.25
50.00
93.00
50.00
37.00
50.00
40.00
50.01
J.V. FCC, Hochtief Un Acb – Aeropuerto Riga
J.V. SFI Leasing Company
Merseylink Civil Contractors J.V.
Metro Bucarest J.V.
RokFCC JV
Shimmick Co. Inc. FCC Co. Impregilo Spa JV
Sisk FCC Gg Ppp
Thv Cafasso Construction
TJV-UJV
2nd Phase Sphinx Dam JV
Accesos a La Estación de La Sagrera JV
Acceso Norte A Vigo Nueva Estación JV
Acceso Puerto Seco Monforte JV
Adif Bancada 2018 JV
Adolfo Suárez Airport JV
Aeropuerto de Castellón JV
Alameda de Cervantes en Lorca JV
Alta Capacidad 2020 JV
Alumbrado Alameda JV
Anaga JV
Andenes L1-L9 Tram Benidorm JV
Aparatos Atocha JV
Arroyo del Fresno JV
Aucosta Conservación JV
Auditorio de Lugo JV
Autovía A-33 Jumilla JV
Autovía el Batán – Coria JV
36.00
30.00
33.33
47.50
80.00
30.00
50.00
50.00
16.16
35.00
37.50
50.00
50.00
50.00
50.00
50.00
60.00
50.00
20.00
33.33
65.00
39.97
50.00
50.00
50.00
65.00
50.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 137 of 141
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Proportional
integration at 31
December 2020
Proportional
integration at 31
December 2020
Autopista Cartagena – Vera JV
Ave Alcántara-Garrovillas JV
Ave Eje Sur JV
Ave Girona JV
Ave Maside JV
Avenoreste1 JV
Avenoreste2 JV
Badajoz Sur JV
Barbados JV
Barcience JV
Belltall JV
Bergara Antzuola JV
Boetticher Clima JV
Boetticher Electricidad JV
Boquilla Sur Túnel Vigo – Das Maceira JV
Bombeo Fuente Alamo JV
Brazatortas JV
C&F Jamaica JV
Cáceres Norte JV
Cáceres Plasencia JV
Calders-Vilaseca JV
Campo Gibraltar JV
Canal Principal de Orbigo JV
Cárcel Marcos Paz JV
Carretera Ibiza - San Antonio JV
Castuera JV
Catlántico JV
50.00
85.00
25.00
40.00
67.00
25.00
25.00
50.00
50.00
50.00
40.00
50.00
50.00
50.00
50.00
60.00
33.34
50.00
50.00
50.00
20.00
80.00
50.00
35.00
50.00
33.34
25.00
Cecoex JV
Centro Salud Tui JV
Chuac JV
Cierre Anillo Insular Tfe JV
Circuito JV
Circunvalación Lucentum JV
Ciutat de la Justícia JV
Conexión Corredor Mediterráneo JV
Conexión Molinar JV
Conservacion Ex-A1 JV
Conservación Malpartida JV
Conservacion Plasencia JV
Construcción Tranvía Zaragoza JV
Control Mogán JV
Club de Mar Mallorca JV
Creaa JV
Suministros Puente Río Ozama JV
Deancentro JV
Dean Plasencia JV
Deansur JV
Desaladora Bajo Almanzora JV
Desarrollo Puerto de Avilés Fase I JV
Desdoblamiento C.V. – 309 en Sagunto JV
Dique Este JV
Dique Torres JV
Districte Administratiu Lot 2 JV
Donostialdea 2014 JV
20.00
50.00
50.00
85.00
70.00
50.00
30.00
40.00
70.00
50.00
50.00
50.00
50.00
33.33
70.00
50.00
50.00
60.00
60.00
60.00
60.00
80.00
50.00
35.00
27.00
99.99
60.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 138 of 141
345
Proportional
integration at 31
December 2020
Proportional
integration at 31
December 2020
Donostialdea 2018 JV
Drenajes Adamuz JV
Duplicacion Calzada N-338 JV
Edificio Terminal JV
Efw South Humber JV
Electrification La Sagrera JV
Encauzamiento Barranco de Fraga JV
ErtMS Rodalíes Bcn JV
Esclusa Sevilla JV
Estación Girona JV
Estacions Line 9 JV
Estacions Terrassa JV
Ezkio Itsaso JV
Facultad de Filosofía JV
Fase II Pabellón Reyno de Navarra JV
FCC Industrial - Aton JV
FCCi-Orbe JV
F.I.F. GNL FB 301/2 JV
Fgv Linea 9 Calp-Teulada JV
Fuente de Cantos JV
Galindo - Beurko JV
Gc – 1 Puerto de Rico – Mogán JV
Girona Norte II JV
Girona Norte 2014 JV
Goián JV
Granadilla II JV
Guadarrama 3 JV
60.00
33.33
60.00
40.00
50.00
50.00
60.00
22.00
70.00
40.00
33.00
36.00
40.00
60.00
50.00
90.00
70.00
35.96
62.50
50.00
60.00
40.00
70.00
70.00
70.00
50.00
33.33
Guadarrama 4 JV
Helios I JV
Helios 2 JV
Hospital Alcázar JV
Hospital Campus de la Salud JV
Hospital de Cartagena JV
Hospital del Sur, Segunda Fase JV
Hospital FCC - Vvo JV
Hospital Norte Tenerife JV
Hospital Son Dureta JV
Hospital Universitario de Murcia JV
Lecisa-FCC / Cpd de Consell Mallorca JV
Lecisa-FCC/Interfonia En Estaciones JV
Impermeabilización Túnel Pajares Norte JV
Instalaciones Madrid Este JV
Instalaciones Metro Málaga JV
Instalaciones Urbanas Este JV
Juan Grande JV
La Aldea JV
La Robla JV
Línea 2 JV
Línea 9 JV
Llovio 2012 JV
Lot 2 Pmi Bcn JV
Lot 3 Pmi Bcn JV
Lot 5 Glories JV
M-407 JV
33.33
74.50
74.50
60.00
80.00
70.00
40.00
80.00
80.00
33.00
50.00
50.00
50.00
50.00
46.25
54.00
50.00
50.00
35.00
30.00
50.00
33.00
70.00
80.00
80.00
37.50
50.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 136 of 141
346
Proportional
integration at 31
December 2020
Proportional
integration at 31
December 2020
Madrid Sevilla Ave JV
Manteniment Rondes 2012 JV
Mantenimiento Aranjuez II JV
Mantenimiento Aranjuez III JV
Mantenimiento Córdoba JV
Mantenimiento Córdoba II JV
Mantenimiento Júcar JV
Mantenimiento Sistemas Metro Málaga JV
Mantenimiento Tdm 2018 JV
Mantenimiento Tranvía Zaragoza JV
Mantenimiento Vía Aranjuez JV
Maquinaria Pesada 2015 JV
Medinaceli JV
Mejora Estructuras Mora JV
Metro Línea 12 JV
Metro Málaga JV
Metro Madrid JV
Miv Centro JV
Miv Sur JV
MOLL ADOSSAT 3ª FASE JV
Monforte JV
Mora - Calatrava JV
Muelle Baleares JV
Muelle de la Química JV
Muelle Poniente Norte de Pto Palma JV
Murcia JV
Mursiya Mantenimiento JV
60.00
70.00
76.00
76.00
49.00
49.00
50.00
35.00
50.00
50.00
50.00
50.00
22.40
39.97
95.00
36.00
70.00
19.00
27.00
37.50
24.00
39.97
70.00
70.00
75.00
40.00
85.00
Nave Frío Cilsa JV
Nudo de Mollet JV
Nuevo Estadio Vcf JV
Nuevo Hospital de Cáceres JV
Nuevo Puerto de Igoumenitza JV
Operadora Termosolar Guzmán JV
Osorno 2019 JV
Pabellón Arena JV
Pabellón Reyno de Navarra JV
Pago de Enmedio JV
Palacio de Congresos de León JV
Parque Tecnológico JV
Pasaia Berri JV
Pasaia Berri Instalaciones JV
Pedralba - Ourense JV
Pizarro JV
Pla de Na Tesa JV
Plataforma Tpte Pbco Castellón JV
Plataforma Tte.Pub. Tramo I Columbretes JV
Pola de Lena JV
Polígono Bobes JV
Pont de Candi JV
Presa Enciso JV
Presas Itoiz JV
Prevención Incendios Patrimonio JV
Prim Barrio San Anton – Elche JV
Proser – Geocontrol JV
50.00
50.00
49.00
50.00
50.00
67.50
60.00
50.00
50.00
75.00
50.00
60.00
50.00
80.00
75.00
99.00
70.00
55.00
55.00
70.00
50.00
75.00
50.00
33.00
20.00
80.00
60.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 140 of 141
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Proportional
integration at 31
December 2020
Proportional
integration at 31
December 2020
Proser – Geocontrol II JV
Psir Castro Urdiales JV
Puente del Rey JV
Puente Río Ozama (Dfc-Cocimar) JV
Puerto de Granadilla JV
Port of Laredo JV
Puertollano JV
Radiales JV
Red Arterial Palencia Fase I JV
Reforma Plaza España JV
Regadíos Río Flumen JV
Rehabilitación Parque la Gavia JV
Ruta Nacional Haití JV
Sagunto JV
Saneamiento Arco Sur JV
Saneamiento de Villaviciosa JV
Santa Maria D’oló-Gurb JV
Sector M-5 2012 JV
Serv. Energ. Piscina Cub. S. Caballo JV
Sica JV
Sica II JV
Simulator APBA JV
Sotiello JV
Ssaa Ap - 7 JV
Tarragona Litoral JV
TF-5 2ª FASE JV
Tindaya JV
62.00
50.00
33.33
35.00
50.00
50.00
50.00
35.00
80.00
80.00
60.00
75.00
55.00
60.00
56.50
80.00
60.00
70.00
50.00
60.00
50.00
50.00
50.00
50.00
70.00
70.00
50.00
Torquemada JV
Torre Don Jimeno JV
TS Villena JV
Túnel Aeroport JV
Túnel Aeroport II JV
Túnel Atocha Chamartín JV
Túnel C.E.L.A. JV
Túnel de Pajares 1 JV
Túnel Fira JV
Tunnel La Aldea JV
Túneles Bolaños JV
Túneles de Barajas JV
Túneles de Guadarrama JV
Túneles de Sorbes JV
Ue 1 Arroyo del Fresno JV
Ue 2 Arroyo del Fresno JV
Unquera – Pendueles JV
Urbanització Girona JV
Urbanización Parc Sagunt JV
Urbanizacion Vara del Rey JV
Urbanización Via Parque Tramo Av. Carb.-P JV
Valdeviviendas II JV
Vandellós JV
Variante Mancha Real JV
Velódromo JV
Vertedero Castañeda JV
Vía Pajares JV
50.00
50.00
88.00
49.00
49.00
40.00
50.00
50.00
49.00
50.00
47.50
50.00
33.33
67.00
50.00
50.00
80.00
40.00
50.00
57.50
60.00
33.33
24.00
67.00
60.00
62.50
50.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Business linesFinancial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report12345A1A2A3 FCC_Annual Report_2020 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 141 of 141
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Viaductos Prefabricados Metro Riyad JV
Vigo-Das Maceiras JV
Vilariño (Via izquierda) JV
Villar - Plasencia JV
Yeltes JV
Yesa JV
OTHER ACTIVITIES
F C y C Harri Iparra JV
Mel 9 JV
Operación Tranvía de Murcia JV
Sagunto Parcela M17-3 JV
Proportional
integration at 31
December 2020
50.00
50.00
90.00
70.00
75.00
33.33
50.00
49.00
50.00
50.00
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Management report
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2020
1
2
3
4
5
6
7
8
9
Status of the entity
Business performance and results
Liquidity and capital resources
Major risks and uncertainties
Acquisition and disposal of own shares
Significant events occurring after the end of the year
Outlook
R&D+I activities
Other relevant information. share performance
and other information
10 Definition of alternative performance measures
according to ESMA regulations (2015/1415en)
_ 350
_ 353
_ 372
_ 373
_ 374
_ 374
_ 374
_ 376
_ 382
_ 383
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1. Status of the entity
The Administration area directs the administrative management of the FCC Group and has the
following duties, among others, in relation to Information Systems and Internal Control:
1.1. Status of the entity: organisational structure and decision-
making process in management
The organisational structure of the FCC Group is based on a first level made up of areas, which
are divided into two large groups: operational and functional.
The operating areas include all those activities related to the productive line. The FCC Group has
the following operating areas, as discussed in greater detail in Note 1 of the notes to the consoli-
dated financial statements and in Section 2.1. of the Non-Financial Information Statement:
i. Environmental Services.
ii. End-to-End Water Management.
iii. Construction.
iv. Cement Business.
v. Concessions.
Each of these operating areas is headed by one or more specialised companies which, depen-
ding on FCC, encompass the Group’s activities.
In addition, there are the functional areas, which carry out support tasks for the operational ones:
1) Administration and Finance: lthe Administration and Finance Division comprises the Admi-
nistration, Information Technologies, Finance, Communication, Purchasing and Human Re-
sources areas.
i. General accounting.
ii. Accounting standardisation.
iii. Consolidation.
iv. Tax advice.
v. Tax procedures.
vi. Tax compliance.
vii. Administrative procedures.
2) Internal Audit and Risk Management: its objective is to provide the Audit and Control Com-
mittee and Senior Management with an independent and objective opinion on the Group’s
ability to achieve its objectives through a systematic and methodological approach for the
assessment, management and effectiveness of internal control and risk management proces-
ses, assessing the effectiveness and reasonableness of the internal control systems, as well
as the functioning of processes according to the procedures, proposing improvements and
providing methodological support to the Division in the process of identifying the main risks
that affect activities and supervising the actions for their management.
3) General Secretary: reporting directly to the Group’s CEO, its main duty is to support the
management of the Group, as well as management support for the heads of the other areas
of FCC, by providing the services detailed in the corresponding sections of the divisions and
departments that make up the Group, which are promoted and supervised by the General
Secretary.
It is made up of the following areas: Legal Advice Department, Quality Management, Corpo-
rate Security and General Services and Corporate Responsibility.
The areas, on a second level, can be divided into Sectors, the operational ones, and Divisions,
the functional ones, establishing areas that allow greater specialisation when considered ne-
cessary.
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The structure of the main decision-making bodies is set out below:
Environmental Services
• Board of Directors: is the body that holds the broadest powers, without any limitation,
except those that are expressly reserved, by the Spanish Corporate Enterprises Act or the
Articles of Association, for the jurisdiction of the General Shareholders’ Meeting.
• Audit And Control Committee: its main function is to support the Board of Directors in its
supervisory duties by periodically reviewing the process for preparing economic and finan-
cial information, its internal controls and the independence of the external auditor.
• Appointments and Remuneration Committee: supports the Board of Directors in relation
to proposals for the appointment, re-election, ratification and removal of Directors, establi-
shes and controls the policy for the remuneration of the company’s Directors and senior
managers and the fulfilment of their duties by Directors, particularly in relation to situations
of conflict of interest and related-party transactions.
• Managing Committee: each of the business units has a Managing Committee with similar
duties.
Further information on the duties of the FCC Group’s decision-making bodies is provided in
Section 1 of the Internal Financial Reporting Control System (IFRS) and in Section 2.3 of the
Non-Financial Information Statement.
1.2. Status of the entity: Business model and company strategy
FCC is one of the leading European groups specialising in the environment, water, infrastructure
development and management, with a presence in over 30 countries worldwide and nearly 40.3%
of its turnover generated in international markets, mainly Europe (28.5%), the Middle East (4.7%),
Latin America (2.8%), North Africa (2.8%) and the United States (1.3%).
The Environmental Services area has a strong presence in Spain, having maintained a leadership
position in the provision of urban environmental services for over 110 years.
At a national level, FCC provides environmental services in municipalities and bodies in all the
autonomous communities, serving a population of over 22 million inhabitants. Waste collection
and street cleaning are two of the most important services in this sector, representing 64% of
revenue. They are followed, in order of importance, by disposal of wastes with 14%, cleaning and
maintenance of buildings, parks and gardens and, to a lesser extent, sewage. In terms of client
types, more than 86% of the activity is carried out with public clients.
The Covid-19 pandemic has had a very limited impact on the business in 2020, since most of its
services are classified as “essential”, with the focus mainly being on specific problems of falls in
tonnage. Nonetheless, the COV-2020/0173 certification of action protocols, for our activities to
help reduce the spread of Covid-19, has been obtained as a reinforcement measure. We have
also been awarded the seal of the Ministry for Ecological Transition and Demographic Challenge’s
(MITECO) “Register of carbon footprint, offsetting and CO2 absorption projects”.
The international business is mainly conducted in the United Kingdom, Central Europe and the
USA. For years, the Group has held a leadership position in the United Kingdom and Central
European markets in the integrated management of municipal solid wastes, as well as in the
provision of a wide range of environmental services. The various services provided in this sector
include treatment and recycling, disposal, waste collection and the generation of renewable ener-
gy. With a growing emphasis on treatment, recycling and renewable energy generation activities
and a gradual reduction of disposal in controlled landfills.
In Central and Eastern Europe, FCC provides services to a population of 4.8 million inhabitants,
1,360 municipalities and almost 55,000 industrial clients. The range of services provided and the
geographical dispersion is very diverse and balanced. It includes municipal and industrial collec-
tion, mechanical and biological treatment, incineration, landfill, street cleaning, snow clearance,
recycling, outsourcing, building cleaning, soil decontamination works, etc. This broad diversifi-
cation ensures a large degree of business stability and is one of the reasons why the economic
impact of Covid-19 on the organisation has not been so pronounced.
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The Environmental Services area also specialises in the integrated management of industrial and
commercial waste, the recovery of by-products and soil decontamination, through the FCC Ám-
bito brand, which encompasses a group of companies with a wide network of management and
revaluation facilities. All of this enables proper waste management, ensuring the protection of the
environment and people’s health. In 2020, this activity represented just over 7% of all activity.
At an international level, the growth in the US stands out, where urban solid waste collection,
management and treatment activities are carried out. This was the first year of activity in the co-
llection service of Volusia County (Florida) in Daytona Beach, and the one of the largest contract
in the country in Omaha (Nebraska) that will also act as a regional base to open up the Mid-West
market. Despite the delay that Covid-19 has caused in the bidding processes, in the last quarter
of 2020 a resumption of these processes has already been noticed and it is expected that in 2021
there will be a continuation in the growth of the business, the backlog and the geographical ex-
pansion. FCC Environmental Services has managed to position itself, in a very short time, as one
of the main operators in the US, where it already serves more than 8 million people.
As it has already done for a number of years now, the strategy in Spain will focus on maintaining
competitiveness and a leadership position, combining technical knowledge and the development
of innovative technologies, offering respectful, inclusive and sustainable services (combating cli-
mate change and reducing the carbon footprint).
The incorporation of new technologies will enable the company to gain a foothold in the waste
recycling and revaluation markets in Europe and to position itself as a key player in the circular
economy. As far as the United States is concerned, in the coming years the consolidation of the
company’s presence will continue through growth in more residential contracts and the streng-
thening of commercial collection activity.
In general, there is a broad commitment to climate change, for example with the issuance of
green bonds to finance the operation and acquisition of assets developed with the activity.
End-to-End Water Management
FCC Aqualia serves over 23 million users and provides services in over 1,100 municipalities in
21 countries, offering the market all the solutions for the needs of public and private entities and
organisations in all stages of the end-to-end water cycle and for all uses: human, agricultural or
industrial.
FCC Aqualia’s activity focuses on concessions and services, including distribution network con-
cessions, BOT (“Build-Operate-Transfer”), operation and maintenance services and irrigation, as
well as technology and network activities, including EPC (“Engineering-Procurement-Construc-
tion”) contracts and industrial water treatment activities.
In 2020 the market in Spain represents 66% of revenue. The impact of the pandemic has led to
a 2.4% drop in the volumes of water billed and 1.4% in the amounts, with particular incidence in
tourist and coastal areas. The reduction in the volume of consumption has been partially offset
by an improvement in Operation and Maintenance (O&M) activities, efficiency improvements in
operations and a greater volume of execution of various works related to concession contracts.
In the public sector, there is still a low level of bidding for hydraulic infrastructure concessions,
which increases the deficit in the renovation and expansion of existing infrastructure. Despite this,
tenders have been won and contracts have been extended for the end-to-end cycle concessions;
such as that in Vigo, FCC Aqualia’s largest contract. The contract renewal loyalty rate remains at
very high levels (close to 100%) in those municipalities where it operates In addition, Aqualia has
worked hard to expand its presence in the O&M and facilities market (WWTP, DWTP, desalination
and network management).
The international market reached a turnover of 34%. FCC Aqualia focuses its activity in Europe,
North Africa, the Middle East and the Americas, with ongoing contracts in more than 15 countries
at present.
The year 2020 also presented an operational challenge for Aqualia throughout Europe due to the
impact of Covid-19 on end-to-end water cycle management. Despite the impact on non-residen-
tial consumption, which was more marked in the Czech Republic, the business remained at very
high levels in terms of activity, quality and continuity of service. In addition to the management
of the municipal concession services in the Czech Republic, Italy and Portugal, works were also
carried out to integrate the new business in France.
FCC Aqualia seeks to maintain its competitive position in those comprehensive water mana-
gement markets where it has an established presence (Europe) and to take advantage of the
opportunities that arise in this activity. In other expanding markets, it plans to boost growth via
BOT and O&M (North Africa, Latin America and the Middle East), along with comprehensive cycle
management, while the study of possibilities in others (such as the USA) will continue. In addition,
FCC Aqualia will use its extensive experience in comprehensive water cycle management for
business opportunities in countries with a stable political and social balance.
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Construction
FCC Construcción focuses its activity on the design, development and construction of large civil,
industrial and building infrastructure projects. The presence in public works of complex elements
such as railways, tunnels and bridges stands out, which together with those involving installation
and industrial maintenance, form a large part of the activity.
2. Business performance and results
2.1. Operating performance
Its teams have the experience, technical training and innovation to participate in the entire project
value chain, from the definition and design, to its complete execution and subsequent operation.
2.1.1. Significant events
In 2020, 47% of the total income comes from abroad, namely the execution of large infrastructure
works such as lines 4, 5 and 6 of the Riyadh Metro, Haren prison complex (Belgium), line 2 of the
Lima Metro, Grangegorman University (Dublin-Ireland), the A-9 motorway Badhoevedorp-Holen-
drecht (Netherlands), the Bacau airport runway (Romania) and the Gurasada-Simeria railway line
(Romania) – Sectors 2a, 2b and 3.
Highlights in the 2020 business year, were the awarded contracts for the design, construction
and maintenance of section 2 of the Maya Train (Mexico) for an amount of 339.2 million euros,
the extension of the A-465 motorway in Wales (UK) for an amount of 667 million euros, the design
and construction of the E-6 Ulsberg-Vidasliene motorway (Norway) for an amount of 238.8 million
euros, as well as the construction of the Mapocho Río Park (Chile) for an amount of 53.8 million
euros.
Cement
The FCC Group carries out its cement activity through the Cementos Portland Valderrivas Group.
Its main activity is the manufacturing of cement, which in 2020 accounted for approximately 91%
of the Group’s total income. The remaining percentage was contributed by the concrete, mortar
and aggregates businesses.
In terms of geographical diversification, by 2020, 38% of income came from international markets.
The Cementos Portland Valderrivas Group is present in Spain, Tunisia and the United Kingdom.
In addition, the Group also exports from these three countries to Africa, Europe and America.
The Cementos Portland Valderrivas Group has a leading position both in its main market, Spain,
and in the Tunisian market.
The main objective of the Cementos Portland Valderrivas Group is to maintain a competitive edge
both regarding costs and in the markets in which it operates, seeking to remain a leader in the
sector in all the countries in which it is present.
FCC Medio Ambiente is the most highly rated company for the Barcelona cleaning
and collection contract
Last October, FCC Medio Ambiente was the highest-rated company in terms of technical criteria in
the tender for the cleaning and waste collection for the city of Barcelona. In this tender, the ie-Ur-
ban, a new internally developed, 100% electric, modular chassis-platform electric collection truck,
played a key role in the proposal to enhance urban sustainability and minimise environmental im-
pact. If this award is confirmed, the contract will represent more than 800 million euros in revenues
not included in the backlog at the end of 2020.
FCC Aqualia renews several end-to-end water cycle contracts in Spain
Among the various renewals obtained, last December the municipality of Vigo approved the con-
cession to FCC Aqualia of a five-year extension of the supply and sanitation management con-
tract, for 259.6 million euros. This expansion is linked to the implementation of an investment
plan that will improve the current high levels of service. In addition, all the renewals obtained have
allowed us to enjoy a good loyalty rate in 2020, which remains at very high levels (close to 100%).
The operational stability of this area resulted in a “positive” annual credit rating perspective on
behalf of Fitchratings, obtained last July.
FCC Construcción will build a new hospital in the United Kingdom for 590 million euros
Last September, a consortium in which FCC Construcción participates was awarded the contract
for the design and construction of a new hospital in Jersey. The design is valued at 26.4 million
euros and the execution period will be one and a half years. The construction phase will then
begin, valued at a further 550 million euros.
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Among other important projects, the company was awarded the E6 motorway in Norway for
238.8 million euros, which includes the design and construction of a new 25-kilometre section of
the E6 motorway, with an execution period of 47 months. Special mention should go to the award
this year of the design, construction and maintenance of section 2 of the Maya Train (Mexico),
jointly with Carso Infraestructuras y Construcción. The project consists of a 200-kilometre section
valued at close to 700 million euros with an execution period of 28 months to which a further five
years of maintenance has been added.
FCC Medio Ambiente finalises the entry of a minority financial partner in the UK
Last July, an agreement was reached with the investment group Icon Infrastructure Partners for
the purchase of 49% of the capital of the new subsidiary company Green Recovery Projects
Limited (GRP), header and owner of five energy recovery plants (“EfW”) of FCC Medio Ambiente
subsidiary in the United Kingdom (located in Kent, Nottinghamshire, Buckinghamshire, Edinburgh
and Lincolnshire), for an amount totalling 198 million pounds sterling. This meant an enterprise
value of the company, at 100%, of 650 million pounds including its debt. The transaction was
completed last November.
The head of the area, FCC Servicios Medio Ambiente Holding, maintains control of GRP and its
global consolidation, as well as a 50% stake in the incinerator in Mercia and a 40% stake in the
one in Lostock.
FCC as licensee for the construction and operation of a motorway in the United Kingdom
FCC, through its company FCC Concesiones, has been selected for the extension of the A465
motorway in Wales (United Kingdom). FCC is part of the Future Valleys consortium along with
other local and international partners in the project, which will be developed under the PPP mo-
del. The project is key to improving connectivity and development in the region and has a planned
investment of more than 600 million euros.
FCC has agreed to the sale of certain infrastructure
concessions for more than 400 million euros
On 3 October, FCC agreed to sell its entire stake in three concessions located in Spain to Vau-
ban Infrastructure Partners, within its policy of rotation and selective development of projects in
this activity. These three concessions are included in the portfolio of the FCC Group, which has
a stake in 14 transport infrastructure concessions. When signed, the agreement will mean the
transfer of 51% in the Cedinsa Group, which manages the concession of four dual carriageways
in Catalonia, 49% in Ceal 9, the concessionaire of the stations on section 1 of line 9 of the Barce-
lona Metro, and 29% in Urbicsa, the operator for the Ciudad de Justicia (City of Justice), also in
Barcelona. The price to be paid by Vauban for all of FCC’s stakes in these concessions amounts
to 409.3 million euros, enabling the deconsolidation of 690.7 million euros of net financial debt
at the close of the third quarter and will improve the Group’s treasury position. The closure of the
agreement is pending obtaining the usual authorisations for this type of transaction.
2.1.2. Executive Summary
•
In 2020 as a whole, the FCC Group achieved 6.158 million euros in revenues, 1.9% lower
than in 2019. This sustained level of revenues was supported by the good performance of the
Utilities activities (Environment and Water), thanks to their being considered essential services,
which alleviated the decline in the Construction and Cement areas, which were affected by
the restrictions taken by the government since last March to combat the health crisis. This
is in addition to a higher contribution of revenues in Concessions due to the change in the
consolidation method of the concession company Cedinsa.
• Gross operating profit increased by 2.1%, reaching 1.047.5 million euros. This increase is due
to the higher contribution in the Concessions area, together with the increase in profits from
the sale of surplus emission rights in the Cement area, which offset the fall in Construction.
Adjusted for the sale of CO2 rights, Ebitda for the business year was only 3.1% lower than the
previous year.
• Attributable net income reached 262.2 million euros, 1.7% lower than the previous business
year. Again, as throughout the business year, it includes the differential behaviour of the ex-
change differences recorded, -51.3 million euros this year compared with a positive contribu-
tion of 14.8 million euros in 2019.
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• The Group’s financial debt fell by 21.8% compared to the end of the previous year, mainly due
to the exclusion of the debt linked to the transport infrastructure concession assets, the sale
of which was agreed last October, from the GRP minority stake sale in UK, and the early partial
repayment of the debt linked to the Cement area. As a result, the net financial debt balance
amounted to 2.797.8 million euros in December 2020.
2.1.3. Summary by business area
Area
Dec. 20
Dec. 19
Chg. (%)
% s/ 20
% s/ 19
(Millions of Euros)
REVENUE BY BUSINESS AREA
355
• Net assets increased substantially by 17.6% to 2.908.7 million euros at business year-end,
thanks to the stability of net profit and the very high percentage of shareholders who once
again chose to reinvest their annual scrip dividend in new shares in the entity.
• At the end of December 2020, the Group’s revenue portfolio stood at 29.411.7 million euros,
which still does not include significant contracts provisionally awarded mainly in the Environ-
ment area.
Environment
Water
Construction
Cement
Concessions
2,888.2
2,915.2
1,188.3
1,186.9
1,611.0
1,719.3
-0.9%
0.1%
-6.3%
-7.4%
382.6
123.5
413.2
49.8
148.0%
Corporate serv. and others
(35.6)
(8.2)
n/a
46.9%
19.3%
26.2%
6.2%
2.0%
-0.6%
46.4%
18.9%
27.4%
6.6%
0.8%
-0.1%
KEY FIGURES
(Millions of Euros)
Total
6,158.0
6,276.2
-1.9%
100.0%
100.0%
Net turnover (NT)
Gross Operating Profit (EBITDA)
EBITDA Margin
Net Operating Profit (EBIT)
EBIT Margin
Income attributable to the parent company
Equity
Net financial debt
Backlog
Dec. 20
Dec. 19
Var. (%)
6,158.0
1,047.5
17.0%
572.7
9.3%
262.2
2,908.7
2,797.8
6,276.2
1,025.8
16.3%
511.6
8.2%
266.7
2,473.8
3,578.7
29,411.7
31,038.4
-1.9%
2.1%
0.7 p.p
11.9%
1.1 p.p
-1.7%
17.6%
-21.8%
-5.2%
REVENUE BY GEOGRAPHICAL AREA
Spain
3,672.3
3,465.6
Rest of Europe and Others
United Kingdom
Middle East & Africa
Czech Republic
Latin America and USA
803.0
668.6
467.4
285.2
261.5
733.9
734.9
576.8
286.8
478.2
6.0%
9.4%
-9.0%
-19.0%
-0.6%
-45.3%
59.6%
13.0%
10.9%
7.6%
4.6%
4.2%
55.2%
11.7%
11.7%
9.2%
4.6%
7.6%
Total
6,158.0
6,276.2
-1.9%
100.0%
100.0%
EBITDA
Environment
Water
Construction
Cement
Concessions
Corporate serv. and others
450.9
282.9
53.6
139.9
94.6
25.6
492.5
281.7
100.2
86.4
31.8
33.2
-8.4%
0.4%
-46.5%
61.9%
197.2%
-22.9%
43.0%
27.0%
5.1%
13.4%
9.0%
2.4%
48.0%
27.5%
9.8%
8.4%
3.1%
3.2%
Total
1,047.5
1,025.8
2.1%
100.0%
100.0%
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(Millions of Euros)
2.1.4. Income Statement
356
Area
Dec. 20
Dec. 19
Chg. (%)
% s/ 20
% s/ 19
OPERATING PROFIT/(LOSS)
Environment
Water
Construction
Cement
Concessions
Corporate serv. and others
215.7
167.4
20.9
106.8
55.4
6.5
258.5
180.2
77.3
(20.0)
12.0
3.6
-16.6%
-7.1%
-73.0%
n/a
n/a
80.6%
37.7%
29.2%
3.6%
18.6%
9.7%
1.1%
50.5%
35.2%
15.1%
-3.9%
2.3%
0.7%
Total
572.7
511.6
11.9%
100.0%
100.0%
101.6
(12.8)
-893.7%
3.6%
-0.4%
1,330.2
1,332.2
1,177.6
1,214.5
0.0
173.7
14.7
0.0
293.0
751.8
-0.2%
-3.0%
n/a
-40.7%
-98.0%
47.5%
42.1%
0.0%
6.2%
0.5%
37.2%
33.9%
0.0%
8.2%
21.0%
2,797.8
3,578.7
-21.8%
100.0%
100.0%
Net turnover (NT)
Gross Operating Profit (EBITDA)
EBITDA Margin
(Millions of Euros)
Dec. 20
Dec. 19
Chg. (%)
6,158.0
1,047.5
17.0%
6,276.2
1,025.8
-1.9%
2.1%
16.3%
0.7 p,p
Provision for amortisation of fixed and non-current assets
(488.9)
(458.4)
6.7%
Other operating income
Net Operating Profit (EBIT)
EBIT margin
Financial income
Miscellaneous financial results
P/L of companies accounted for by the equity method
Profit/(loss) before tax from continuing activities
Company tax on profits
Income from continuing operations
Net Income
Non-controlling interests
Income attributable to the parent company
2.1.4.1. Net Revenue
14.1
572.7
9.3%
(55.8)
-125.3%
511.6
8.2%
11.9%
1.1 p,p
(154.0)
(144.7)
6.4%
(51.1)
1.5
-3506.7%
62.1
429.9
120.6
489.0
-48.5%
-12.1%
(86.3)
(149.1)
-42.1%
343.6
343.6
(81.4)
262.2
339.9
339.9
(73.2)
266.7
1.1%
1.1%
11.2%
-1.7%
9,184.3
10,366.2
-11.4%
15,025.9
15,018.3
5,155.8
5,623.2
45.7
30.7
0.1%
-8.3%
49.0%
31.2%
51.1%
17.5%
0.2%
33.4%
48.4%
18.1%
0.1%
29,411.7
31,038.4
-5.2%
100.0%
100.0%
Consolidated Group income amounted to 6.158 million euros for the entire year, 1.9% lower than
in the previous year. All activities reflect, to a varying degree, the measures decreed by govern-
ments since the middle of last March in most of the countries in which the Group operates to ad-
dress the health crisis caused by COVID-19. However, the Concessions area recorded an increa-
se in its contribution as a result of the acquisition of a majority in the Cedinsa group in November
last year, together with very stable performance experienced in the Water and Environment areas
due to its clear nature as an essential service for its customers.
NET FINANCIAL DEBT
With Recourse
Without Recourse
Environment
Water
Construction
Cement
Concessions
Total
BACKLOG
Environment
Water
Construction
Real Estate
Total
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According to the different business areas, the largest contributor, Environment, has enjoyed sus-
tained performance levels, recording a slight contraction in revenues of 0.9%, centred on the
impact of lower volumes in the waste treatment area in the United Kingdom. This, however, is
combined with the good performance in the waste collection, treatment and street cleaning acti-
vity in most geographical areas, with a greater contribution from the USA.
Revenues in the Water area remained stable, with an increase of 0.1%, due to the greater contri-
bution of the new concession contracts incorporated abroad, which compensated for the lower
activity in Technology and Networks due to the slower pace of execution of construction projects,
also mainly in the international area.
In Construction, turnover declined by 6.3%, due to delays and project stoppages caused by strict
lockdown measures, mainly in Latin America and the Middle East. In Spain and Europe, a higher
level of activity in new contracts remained stable, which largely made it possible to compensate
for the stoppage intervals registered in the year in this geographical area.
By business area in Spain, revenues increased their contribution by 6% to 3.672.3 million euros.
Environment had an increase of 0.8%, due to stability in the municipal waste management cycle
as a whole, which compensated for the decrease in non-essential urban services in certain pe-
riods due to the measures taken by the government to combat the pandemic. Water recorded
a 2.5% decline due to a slight reduction in amounts invoiced as a result of a drop in activity
in non-residential customers, together with lower contribution from Technology and Networks
associated with concessions. The Construction area rose by a remarkable 27.6%, where the
good pace in the development of projects awarded in the previous year allowed it to overcome
the effect of the reduced activity recorded between March and May. Similarly, the Cement area,
which was affected in the same period by the restriction measures, leading to a decrease in the
amounts invoiced, partially recovered its pace of activity, with a drop of 4.6% for the year as a
whole. Lastly, it is worth mentioning the increase in the contribution of the Concessions area, up
to 121.5 million euros, due to the effect of incorporating the Cedinsa subgroup into the scope
using the full consolidation method.
Likewise, in the Cement area, revenues decreased by 7.4%, due to lower volumes shipped in the
local markets of Spain and Tunisia, mainly in the months of March and April, which was partially
offset by the recovery recorded in the last months of the year.
Revenue Breakdown by Geographical Area
Spain
Rest of Europe and Others
United Kingdom
Middle East & Africa
Czech Republic
Latin America and USA
Total
Dec. 20
3,672.3
Dec. 19
3,465.6
803.0
668.6
467.4
285.2
261.5
733.9
734.9
576.8
286.8
478.2
6,158.0
6,276.2
(Millions of Euros)
Chg. (%)
6.0%
9.4%
-9.0%
-19.0%
-0.6%
-45.3%
-1.9%
In the other regions, within the EU, there was a 9.4% increase in Rest of Europe and Others to 803
million euros, due to the higher contribution in Construction of a new contract in the Netherlands
and the contribution of Aqualia France acquired in June 2019, together with very stable perfor-
mance in the Central European countries in which the Environment area operates. In the Czech
Republic, there was a small reduction of 0.6% due to a fall in the exchange rate during the period
(-2.9%), with very stable operating conditions both for Environment and Water.
In the United Kingdom, revenues generated mostly in the Environment area fell by 9% to 668.6
million euros, due to lower volumes in the tertiary waste treatment and reduction business, linked
to lockdown measures due to the health crisis and a lower contribution from the Edinburgh treat-
ment and recovery plant following the completion of its construction phase in the middle of the
previous year.
The Middle East and Africa area saw its revenues reduced by 19%, mainly due to the effect of
the strict lockdown measures in those countries where the Construction area operates. This was
mainly in Saudi Arabia, and which mitigated a higher activity in the Water area, both due to the
contribution of two companies acquired in Saudi Arabia and to the increased activity in Techno-
logy and Networks.
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Revenues in Latin America and the US dropped by 45.3%, due to the slower pace of project
execution in both Construction and Water, again as a result of the effect of the strict lockdown
measures implemented to tackle the pandemic. However, in the United States, revenues, con-
centrated in the Environment area, increased significantly due to the entry into operation of new
contracts in Florida for municipal waste collection services, an essential service activity that avoi-
ded the effects caused by lockdowns and their impact on certain economic activities.
% Revenue by Geographical Area
59.6% Spain
10.9% UK
13.1% Rest of Europe & Other
7.6% Middle East & Africa
4.2% Latin America & USA
4.6% Czech Republic
The Water area reached 282.9 million euros, similar to that generated in the previous year, su-
pported by an increased contribution of the concessions and services activity due to the incor-
poration of new contracts which offset the reduced contribution of the Technology and Networks
activity. Overall, the operating margin remained at a similar level (23.8% for the year).
In Concessions, the differential contribution from the Cedinsa concession group, which amounted
to 75.3 million euros, drove up EBITDA to 94.6 million euros. This is compared to 31.8 million
euros in the previous year, when it only contributed to profit for two months.
Meanwhile, the Construction area suffered more strongly from the impact of the aforementioned
general restriction measures. So it totalled 53.6 million euros, compared to 100.2 million euros in
the previous year, mainly as a result of a downturn in activity in some countries in the international
area and the cost structure associated with the projects, with a 3.3% reduction in margins in the
year.
In Cement, it is worth mentioning the contribution from the sale of CO2 rights, totalling 58.9 million
euros compared to 5.8 million euros in the previous year. This, together with a significant drop in
the cost of energy, led to a remarkable 61.9% increase in Ebitda for the period.
% EBITDA by Business Area
2.1.4.2. Gross Operating Profit (EBITDA)
The Gross Operating Profit for the year was 1.047.5 million euros, an increase of 2.1% compared
to the previous year. This increase is largely down to the combination of the higher result from
the sale of emission rights in the Cement area together with the increased contribution from the
Concessions area and the sustained performance of the Water area.
By business area, the most noteworthy developments have been:
Environment decreased by 8.4% to 450.9 million euros, due to lower volumes in treatment plants
and waste reduction, mainly in the United Kingdom, together with the lower price of generated
electricity and other by-products and higher expenses associated with scheduled maintenance
shutdowns and extraordinary repairs.
43.0% Environment
27.0% Water
13.4% Cement
5.1% Constrution
9.0% Concessions
2.5% Corporate
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As a result of the performance in several utilities areas, Environment and Water (together with
Concessions) maintained a high contribution to operating profit reaching 79.1% for the period,
compared to 20.9% from those linked to demand for the construction of infrastructure, building
and other activities.
2.1.4.3. Net Operating Profit (EBIT)
Net operating profit amounted to 572.7 million euros, 11.9% more than in the previous year. Ebit
reflects the effect of the development of the gross operating profit together with two components.
Firstly, the higher provision for amortisation corresponding to the transport concession assets
assigned to the operating activity following their entry into consolidation at the end of 2019, as
well as a contribution from other operating income of 14.1 million euros this year compared to
-55.8 million euros the previous year due to the impairment of 70 million euros that was made to
the value of goodwill of the cement activity in 2019.
2.1.4.4. Earnings before Taxes (EBT) from continuing operations
Profit before tax for continued activities stood at 429.9 million euros, 12.1% down on 2019, due
to the fact that positive developments in operational processes were accompanied by a sustained
negative impact on the exchange rate in 2020 compared to the positive contribution it made in
the previous year. In addition, lower profits were generated by companies accounted for using
the equity method, due to the change in the consolidation method of the Cedinsa subgroup
mentioned above.
2.1.4.4.1. Financial income
The financial result amounted to -154 million euros, compared to -144.7 million euros in the
previous business year. The increase is mainly due to higher project finance expenses in the
Concessions area of the Cedinsa subgroup, since its entry into consolidation in November 2019.
2.1.4.4.2. Miscellaneous financial results
This epigraph includes an amount of -51.1 million euros this year, compared with -1.5 million
euros last year. The difference is mainly due to the impact from developments in the exchange
rate for certain currencies, with negative exchange differences amounting to -51.3 million euros
recorded in this year compared to +14.8 million euros recorded for the previous year.
2.1.4.4.3. Profit/(loss) of equity-accounted affiliates
The contribution from co-managed and investee companies amounted to 62.1 million euros,
compared to 120.6 million euros the previous business year. This is mainly due to the effect of
the change to full consolidation of the Cedinsa subgroup, mentioned above, and the decreased
contribution due to the completion of certain projects in Construction.
2.1.4.5. Income attributable to the parent company
The net attributable profit for the year was 262.2 million euros, a slight decrease o f 1.7% com-
pared to 2019. This profit is accounted for by the contribution to EBT from the following items:
A corporate income tax expense of -86.3 million euros, in line with the profit before tax obtained,
together with profit attributable to minority shareholders of 81.4 million euros compared to 73.2
million euros the previous year, mainly concentrated in the Water area (with 67.9 million euros) and
largely reflecting the participation of a minority shareholder in this area.
2.1.4.6. Profit and loss statement figures on a pro rata basis
A continuación se presentan las magnitudes más relevantes de la cuenta de pérdidas y ganan-
The most significant figures in the income statement, calculated on the basis of the percentage
of effective shareholding in each of the subsidiaries, joint ventures and associates, are as follows.
Net turnover (NT)
Gross Operating Profit (EBITDA)
EBITDA Margin
Net Operating Profit (EBIT)
EBIT margin
Income attributable to the parent company
Dec. 20
6,132.6
1,032.7
16.8%
567.7
9.3%
262.2
Dec. 19
6,368.5
1,132.4
17.8%
597.4
9.4%
266.7
Chg. (%)
-3.7%
-8.8%
-0.9 p.p
-5.0%
-0.1 ,.p
-1.7%
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2.1.5. Balance Sheet
2.1.5.1. Investments accounted for using the equity method
360
Intangible fixed and non-current assets
fixed and non-current assets/Property, Plant and Equipment
Equity-accounted affiliates
Non-current financial assets
Deferred tax assets and other non-current assets
Non-current assets
Non-current assets held for sale*
Inventory
Trade and other receivables
Other current financial assets
Cash and cash equivalents
Current assets
TOTAL ASSETS
Non-controlling interests
Equity
Subsidies
Non-current provisions
Long-term financial debt
Other non-current financial liabilities
Deferred tax liabilities and other non-current liabilities
Non-current liabilities
Liabilities relating to non-current assets held for sale*
Current provisions
Short-term financial debt
Other current financial liabilities
Trade and other payables
Current liabilities
TOTAL LIABILITIES
* See epigraph 5.2
2,437.9
2,810.2
722.8
580.9
578.7
7,130.4
1,392.3
765.6
Dec. 20
Dec. 19
(Millions of Euros)
Chg.
(Mn€)
(1,020.5)
(56.3)
(18.7)
(282.3)
(21.2)
3,458.4
2,866.5
741.5
863.2
599.9
8,529.6
(1,399.2)
0.0
1,392.3
728.8
2,095.6
1,907.7
228.7
1,222.1
5,704.2
189.6
1,218.5
4,044.6
36.8
187.9
39.1
3.6
1,659.6
12,834.6
12,574.1
260.5
337.0
97.9
434.9
(140.8)
(65.8)
(905.4)
(147.6)
(6.3)
620.4
522.5
2,908.7
2,473.8
333.8
1,130.2
4,448.7
581.6
303.0
193.0
1,064.4
3,543.3
434.0
296.7
5,531.3
1,051.3
195.2
705.2
169.2
2,273.7
4,394.6
6,797.2
(1,265.9)
0.0
1,051.3
249.6
538.2
145.4
2,370.0
3,303.2
(54.4)
167.0
23.8
(96.3)
1,091.4
12,834.6
12,574.1
260.5
Equity attributable to shareholders of the parent company
2,288.3
1,951.3
The epigraph entitled investments accounted for using the equity method amounted to 722.8
million euros at the end of the year, with the following breakdown of the most significant invest-
ments in equity:
1) 278.1 million euros for the 36.9% stake in Realia.
2) 74.3 million euros for participation in various transport infrastructure and equipment conces-
sions.
3) 102.3 million euros for the stake in companies in the Environment area (recycling and munici-
pal services, mainly in Spain and the United Kingdom).
4) 35.2 million euros for stakes in companies in the Water area, largely concessionary companies
managing services abroad (North Africa and Mexico).
5) 35.5 million euros from the subsidiaries of the parent company in the Cement area.
This epigraph also includes a further 197.4 million euros for the remaining investments in own
funds for other participations together with loans granted to subsidiaries.
2.1.5.2. Assets held for sale
This epigraph is included in current assets, for an amount of 1.392.3 million euros, with its corres-
ponding counterpart in liabilities, all of the assets corresponding to certain participations in the
concessions activity whose sale was agreed in the third quarter of the business year and until it
leaves the consolidated perimeter when the transaction is closed.
2.1.5.3. ECash, cash equivalents and available lines of credit
The balance for the Cash and cash equivalents epigraph amounted to 1.222.1 million euros as
at the end of the business year, with 72.9% for companies and non-recourse perimeters and the
remaining 27.1% for the Group’s parent company and its recourse perimeter.
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The cash balance has remained very stable and in line with the previous year, so that together with
the available lines of credit, at business year-end the FCC Group had:
2.1.5.5. Financial debt
1) In the recourse perimeter, cash and equivalents of 330.6 million euros and lines of credit of
473.4 million euros, totalling 804 million euros.
2) In the non-recourse perimeters, cash and equivalents of 891.5 million euros and lines of credit
of 389.8 million euros, totalling 1.281.3 million euros.
This took the FCC Group’s total for cash, cash equivalents and available lines of credit at the
end of the business year to 2.085.3 million euros, compared to a total short-term financial debt
(maturing before 12 months) at the same date amounting to 705.2 million euros. This represents
a volume of three times the amount of existing maturities until 31 December 2021.
Epigraph 5.5 details the nature and amounts of short-term financial debt for a better understan-
ding of the Group’s financial position in the short term.
2.1.5.4. Equity
Equity at business year-end amounted to 2.908.7 million euros, compared with 2.473.8 million
euros at the end of the previous business year. This substantial increase is mainly due to the con-
tribution of net attributable profit of 262.2 million euros achieved in the year and to a lesser extent
to the increase in non-controlling interests up to 620.4 million euros.
Bank borrowings
Debt instruments and other loans
Payables due to financial leases
Other financial liabilities
Gross Financial Debt
Treasury and other current financial assets
Net Financial Debt
Net financial debt with recourse
Net financial debt without recourse
361
Dec. 20
Dec. 19
Chg. (Mn€)
(Mililons of Euros
820.0
3,230.3
50.2
148.0
4,248.5
(1,450.7)
2,797.8
101.6
2,696.2
1,474.7
3,125.0
63.8
323.4
4,986.9
(1,408.2)
3,578.7
-12.8
3,591.5
(654.7)
105.3
(13.6)
(175.4)
(738.4)
(42.5)
(780.9)
114.4
(895.3)
With regard to gross financial debt, 16.6% has short-term maturity, equivalent to 705.2 million eu-
ros. 449.4 million of these relates to marketable securities, largely commercial paper issued on the
Irish Stock Exchange by the Group’s parent company and the Environment area. A further 212.4
million euros is due to various credit lines with banks, including both bilateral corporate financing
and non-recourse projects, and another 43.4 million euros of financial debt with third parties.
Almost all of the net financial debt is without recourse and is allocated to business areas, totalling
2.696.2 million euros at the end of the business year. The parent company had a net debt position
of 101.6 million euros, only 3.6% of the Group’s total.
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Breakdown of Net Financial Debt without recourse by Business Area
2.1.6. Cash Flow
49.3% Environment
43.7% Water
0.6% Concessions
6.4% Cement
Net financial debt without recourse to the Group’s parent company is structured as follows:
(i) The Water area accounts for of 1.177.6 million euros, of which, in addition to corporate bond
financing in the parent company, another 189.9 million euros correspond to the Czech Republic
business, and the rest to various concessions of the end-to-end water cycle; (ii) the Cement area
accounts for 173.7 million euros; (iii) the Environment area accounts for 1.330.2 million, most of
which corresponds to long-term bonds issued at the end of 2019 by the area’s parent company,
another 167.2 million euros correspond to the activity in the United Kingdom, and the rest, 55
million euros, to financing three waste processing and recycling plant projects in Spain; (iv) 14.7
million euros is accounted for by the concessions area, after deconsolidation amounting to 698.5
million euros, corresponding to the Cedinsa concessionary group’s project debt.
2.1.5.6. Other current and non-current financial liabilities
The epigraph of other current and non-current financial liabilities totals 603.2 million euros at the
end of the business year. Its balance mainly includes the item suppliers of fixed and non-current
assets for operating leases amounting to 394.9 million euros. It also includes other liabilities that
are not financial liabilities, such as those associated with hedging derivatives, suppliers of fixed
and non-current assets, guarantees and deposits received.
(Millions of Euros)
Dec. 20
Dec. 19
Chg. (%)
Gross Operating Profit (EBITDA)
1,047.5
1,025.8
(Increase)/decrease in working capital
Corporate income tax (paid)/received
Other operating cash flow
Operating cash flow
Investment payments
Divestment receipts
Other investing cash flows
Investing cash flow
Interest paid
(Payment)/receipt of financial liabilities
Other financing cash flow
Financing cash flow
Exchange differences, change in consolidation scope, etc.
Increase/(decrease) in cash and cash equivalents
2.1.6.1. Operating cash flow
(302.0)
(96.7)
(43.7)
605.1
(541.2)
75.9
63.8
(401.5)
(151.4)
(142.6)
155.6
(138.4)
(61.5)
3.6
(183.3)
(173.0)
(39.0)
630.5
(546.6)
28.5
158.9
(359.2)
(136.8)
(97.4)
(111.5)
(345.7)
26.8
(47.7)
2.1%
64.8%
-44.1%
12.1%
-4.0%
-1.0%
166.3%
-59.8%
11.8%
10.7%
46.4%
n/a
-60.0%
n/a
n/a
The operating cash flow generated during the business year amounted to 605.1 million euros,
4% less than in the previous business year. Operating working capital was up 302 million euros
compared to 183.3 million in the last business year, largely due to the elimination of the balance
of non-recourse loan assignments in the Environment area in order to optimise the financial cost.
The epigraph collections/(payment) of company tax shows an outflow of 96.7 million euros com-
pared to 173 million euros at the end of the previous business year. This difference was due to
the payment of 92.1 million euros in the previous year to adjust the tax incentives applied by the
Group in previous business years.
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The epigraph other operating cash flow includes an outflow of 43.7 million euros compared to 39
million euros the previous business year, due to the application of provisions mainly in the Cons-
truction and Environment area.
2.1.6.2. Investing cash flow
The investment cash flow represents an application of 401.5 million euros compared to 359.2
million euros in the previous business year. In the Environment area, in Spain, the investment for
the construction of the Loeches treatment plant in Madrid, for an amount of 54.6 million euros,
stands out. In the international area, among the most significant investments is the one made in
the United Kingdom for the development of the Lostock energy recovery plant for 49.4 million
euros. In the USA, the investment in the contract for the collection of municipal solid wastes in
Omaha, Nebraska, worth 34 million euros, is also worth mentioning.
In the Water area, of particular note are the payments for investments corresponding to the ac-
quisition in Saudi Arabia of 51% of the companies Qatarat and Haaisco, for a combined amount
of 16.1 million euros, as well as the payment of 14.1 million euros for the acquisition of three end-
to-end water cycle companies in the region of Córdoba, in the north of Colombia. In Spain, 23
million euros were invested in the Rambla Morales desalination plant in Almería.
Proceeds from disposals amounted to 75.9 million euros compared to 28.5 million euros the
previous business year, including 30.8 million euros corresponding to the sale of 49% of the long-
term loan of the Edinburgh incineration plant to the investment group Icon, once the sale of 49%
of the capital of the new subsidiary company Green Recovery Projects Limited to this group had
been completed.
The breakdown of net investments by business area, excluding other cash flows from investment
activities, in terms of payments and receipts, is as follows:
Dec. 20
Dec. 19
Chg. (Mn€)
(Millions of Euros)
Environment
Water
Construction
Cement
Concessions
Corporate serv. etc. & adjustments
(283.1)
(134.1)
(7.6)
(10.4)
(24.9)
(5.2)
(301.2)
(124.5)
30.5
(8.3)
(59.0)
(55.6)
Net investments (Payments - Receipts)
(465.3)
(518.1)
18.1
(9.6)
(38.1)
(2.1)
34.1
50.4
52.8
The epigraph other investment flows includes an inflow of 63.8 million euros at the end of the
year, where the most important item in the Environment area is the collection of the concession
right for the Edinburgh incineration plant for an amount of 42.3 million euros, which has been
applied in its entirety to reduce its financial debt. To this we must add movements for smaller
amounts in loans to third parties and investee companies.
2.1.6.3. Financing cash flow
The consolidated cash flow from financing throughout the year represents an application of 138.4
million euros compared to 345.7 million euros in the previous business year. The interest payment
item shows an outflow of 151.4 million euros, mainly concentrated in the Environment, Water and
Concessions areas.
The epigraph Proceeds from/(payments on) financial liabilities includes an application of 142.6
million euros in the year, compared to 97.4 million euros in the previous year. The most significant
item was the decrease in the financial debt of the Cement area, entirely without recourse to the
Group’s parent company, amounting to 118.5 million euros, of which 108 million euros corres-
pond to the early partial repayment of the main credit facility for the area.
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Other financing cash flows amounted to an inflow of 155.6 million euros compared with an out-
flow of 111.5 million euros the previous business year. The most significant item was the payment
of the sale of a minority stake to a financial partner of 49% of the capital of the new subsidiary
Green Recovery Projects Limited, head of five energy recovery plants of the Environment subsi-
diary in the UK, for 188.4 million euros. Lastly, it is worth mentioning the payment of dividends to
shareholders of the Group’s parent company and minority third parties amounting to 36.6 million
euros.
2.1.6.4. Exchange differences, change in consolidation scope, etc
This epigraph recorded an application of 61.5 million euros and includes two main items. Firstly,
the transfer of the cash of the concession subgroup Cedinsa for 38.1 million euros to the epigraph
“assets held for sale”, following the sale agreement reached in the fourth quarter of the year and
until its exit from the consolidated scope at the close of the transaction. This is in addition to the
effect on cash of the variation in the exchange rate of various currencies against the euro, mainly
concentrated in the Construction area.
2.1.6.5. Change in cash and cash equivalents
As a result of the development of the different components of the cash flow, FCC Group’s cash
position closed with an increase of 3.6 million euros compared to the end of the previous period,
reaching a balance of 1.222.1 million euros at the end of the business year.
2.1.7. Analysis by business área
2.1.7.1. Environment
The Environment division contributed 43% of the Group’s EBITDA in 2020. Some 79.9% of its ac-
tivity is focused on the provision of essential waste collection, treatment and disposal services, as
well as street cleaning. The remaining 20.1% corresponds to other types of urban environmental
activities, such as the conservation of green areas or sewage systems.
In Spain, the management of municipal wastes and street cleaning are the most important activi-
ties, while in the United Kingdom the focus is on the processing, retrieval and disposal of munici-
pal wastes. In central Europe, mainly Austria and the Czech Republic, FCC is present right across
the waste management chain (collection, processing and disposal). FCC’s activities in the USA
include both the collection and comprehensive retrieval of municipal wastes.
2.1.7.1.1. Earnings
Turnover
Waste collection and street cleaning
Waste processing
Other services
EBITDA
EBITDA Margin
EBIT
EBIT margin
Dec. 20
2,888.2
1,428.6
879.0
580.6
450.9
15.6%
215.7
7.5%
(Millions of Euros)
Dec. 19
2,915.2
1,379.7
960.1
575.4
492.5
16.9%
258.5
8.9%
Chg. (%)
-0.9%
3.5%
-8.4%
0.9%
-8.4%
-1.3 p.p
-16.6%
-1.4 p.p
Turnover for the Environment area remained at similar levels to the last business year and amoun-
ted to 2.888.2 million euros in the period. The waste collection and street cleaning activity increa-
sed by 3.5% to 1.428.6 million euros, where a greater contribution from the USA after the entry
into operation of new contracts stands out, together with very stable performance in all other
regions.
Waste treatment activity declined by 8.4% to 879 million euros, because of a lower contribution
in the United Kingdom due to the decreased volume of treatment activity of private customers, as
well as a reduced contribution from the development of new plants, together with good perfor-
mance in Spain and Central Europe.
Breakdown of revenue by geographical area
(Millions of Euros)
Spain
United Kingdom
Central Europe
US and others
Total
Dec. 20
1,715.8
605.3
464.6
102.5
Dec. 19
1,701.7
682.0
466.9
64.6
2,888.2
2,915.2
Chg. (%)
0.8%
-11.2%
-0.5%
58.6%
-0.9%
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By geographical area, revenues in Spain increased by 0.8% compared to the previous business
year to 1.715.8 million euros, due to stability in municipal waste collection and street cleaning
activities deemed to be essential. This is together with higher revenues linked to the development
phase of treatment plants that have offset the decrease in non-essential municipal services due
to the measures taken by the government to combat the pandemic during the first half of the
business year.
In the United Kingdom, turnover decreased by 11.2% to 605.3 million euros, due to lower volu-
mes in the waste treatment and reduction activity, concentrated in tertiary clients and the decrea-
sed contribution of the treatment and recovery plant in Edinburgh, following the completion of the
construction phase and the start of the operational phase since mid last year (which resulted in a
reduction of 25.7 million euros).
In Central Europe, revenues remained stable at 464.6 million euros, where the increase in acti-
vity in Poland has almost entirely offset lower levels of activity in countries such as Bulgaria and
Slovakia.
Lastly, turnover in the USA and other markets increased by a remarkable 58.6% due to a greater
contribution from the Palm Beach and Volusia contracts, both in Florida.
The net operating profit (EBIT) decreased by 16.6% over the previous year to 215.7 million euros,
thanks to the development of the different components mentioned in the Ebitda.
Breakdown of Backlogs by Geographical Area
(Millions of Euros)
Spain
International
Total
Dec. 20
4,872.2
4,312.1
Dec. 19
5,354.5
5,011.7
9,184.3
10,366.2
Chg. (%)
-9.0%
-14.0%
-11.4%
At the end of December, the backlog for the area fell by 11.4% to 9.184.3 million euros. In
Spain, it amounts to 4.872.2 million, where a significant number of contracts are still being
extended, although an increase in bidding activity is now being noted. The awarding of the
eight-year urban sanitation contract for Barcelona is worth mentioning, with an estimated value
of more than 800 million euros, after FCC Medioambiente was deemed the entity with the best
technical qualification. In the international area, the backlog declined 14%, largely due to the
depreciation of sterling and the dollar against the euro at the end of the business year.
Breakdown of Revenue by Geographical Area
2.1.7.1.2. Financial Debt
59.4% Spain
21.0% UK
16.1% Central Europe
3.5% USA & Others
Gross operating profit (EBITDA) decreased by 8.4% to 450.9 million euros, caused by the deve-
lopments in revenue described above together with decreased performance in the incineration
plants in the United Kingdom due to shutdowns scheduled in their maintenance together with
extraordinary repairs.
Net Financial Debt without recourse
(Millions of Euros)
Dec. 20
1,330.2
Dec. 19
1,332.2
Chg. (Mn€)
(2.0)
There was no appreciable variation to Net financial debt without recourse to the header at the
end of the business year. The main balance corresponds to the issue of two green bonds in the
amount of 600 million euros and 500 million euros by the parent company in the fourth quarter
of 2019 and that have obtained confirmation of its investment grade in its annual revision. Of
the rest, 167.2 million euros correspond to activity in the United Kingdom together with another
55 million euros mainly linked to funding of three waste treatment and recycling plant projects in
Spain.
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2.1.7.2. End-to-End Water Management
Breakdown of revenue by geographical area
(Millions of Euros)
The Water area contributed 27% of FCC Group EBITDA in the period. 85.6% of its activity is focu-
sed on public service concession management related to the end-to-end water cycle (collection,
treatment, storage and distribution) and the operation of different types of water infrastructures;
the remaining 14.4% corresponds to Technology and Networks, which is responsible for the
design, engineering and equipment of hydraulic infrastructures, related to a great extent to the
development of new concessions and ancillary works for operations.
In Spain the area serves over 13 million inhabitants in more than 850 municipalities. In Central
Europe, it serves 1.3 million users, mainly in the Czech Republic, while in the rest of the continent
it is present in Italy, Portugal and France. In Latin America, the Middle East and Africa it is present
through the design, equipping and operation of processing plants. All in all, the Water area provi-
des supply and/or sanitation services to more than 25 million inhabitants.
2.1.7.2.1. Earnings
Turnover
Concessions and services
Technology and networks
EBITDA
EBITDA Margin
EBIT
EBIT margin
Dec. 20
1,188.3
1,016.6
171.7
282.9
23.8%
167.4
14.1%
(Millions of Euros)
Dec. 19
1,186.9
982.2
204.7
281.7
23.7%
180.2
15.2%
Chg. (%)
0.1%
3.5%
-16.1%
0.4%
0.1 p.p
-7.1%
-1.1 p.p
Revenues remained stable and reached 1.188.3 million euros. The Concessions and Services
business increased by 3.5% year-on-year to 1.016.6 million euros, due to the increased contri-
bution of activity and contracts in France, Colombia and Saudi Arabia and despite the decrease
in consumption in Spain due to the impact of the pandemic. However, Technology and Networks
decreased by 16.1%, due to the slower pace of execution of both construction projects associa-
ted with national concessions and international projects
Spain
Middle East, Africa and Others
Central Europe
Rest of Europe (France, Portugal and Italy)
Latin America
Total
Dec. 20
Dec. 19
Chg. (%)
784.3
163.1
105.0
78.5
57.4
804.4
113.3
111.7
71.2
86.3
1,188.3
1,186.9
-2.5%
44.0%
-6.0%
10.3%
-33.5%
0.1%
By geographic area, revenues in Spain amounted to 784.3 million euros, 2.5% less than at the
end of the previous business year, due to a decrease in amounts invoiced to non-domestic cus-
tomers and in tourist areas, together with the entry into operation of new contracts, such as the
peripheral sewerage contract in Madrid. Technology and Networks has experienced lower activity
due to the slower pace of execution of some projects associated with concessions.
In the international arena, in the Middle East, Africa and Others, revenues increased by an outs-
tanding 44% to 163.1 million euros, due both to the good pace of execution in the construction
of a wastewater treatment plant in Egypt, and to the increase in concession activity resulting from
the contribution of the companies acquired in Saudi Arabia during the business year.
Central Europe saw its revenues fall by 6% to 105 million euros, mainly due to the reduced activity
of Technology and Networks regarding the completion of projects in Montenegro and Serbia.
End-to-end cycle activity in the Czech Republic remained stable due to an update in rates that
largely offset the slight fall in consumption caused by the health crisis.
In the Rest of Europe, revenues increased by 10.3% to 78.5 million euros as a result of the
contribution by the company Aqualia France acquired in June 2019, which compensated for a
downturn in infrastructure activity in the Caltanisetta concession in Italy.
In Latin America, revenues fell by 33.5% to 57.4 million euros, due to the completion or slower
pace of construction of plants in Ecuador and Colombia, which were not offset by the contribution
of new contracts, such as in Mexico.
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Breakdown of Revenue by Geographical Area
2.1.7.2.2. Financial Debt
367
66.0% Spain
13.8% M. East, Africa & Others
8.8% Central Europe
4.8% Latin America
6.6% Rest of Europe
Gross operating profit (EBITDA) slightly increased by 0.4% and totalled 282.9 million euros, where
the incorporation of new contracts in concessions and services helped to offset the aforemen-
tioned decrease in volumes and activity in Technology and Networks, due to the interruption and
delay in the progress of some projects due to the health crisis. The margin, at 23.8%, remained
stable compared to 2019.
The net operating profit (EBIT) decreased 7.1% compared to the previous business year, to 167.4
million euros, mainly due to the increase in the amortisation provision allocated due to an increase
in the asset base and new areas of operations.
2.1.7.3.1 Earnings
Turnover
EBITDA
Breakdown of Backlogs by Geographical Area
Spain
International
Total
Dec. 20
7,224.7
7,801.2
Dec. 19
7,813.1
7,205.2
15,025.9
15,018.3
(Millions of Euros)
EBITDA Margin
Chg. (%)
EBIT
EBIT margin
-7.5%
8.3%
0.1%
Figures for the backlog were similar to those to December of the previous year, totalling 15.025.9
million euros, due to new contracts in the international area, mainly in Colombia, Mexico, Saudi
Arabia and Qatar, which compensated for the downturn in Spain, caused by delays in the renewal
of some contracts.
Net Financial Debt without recourse
(Millions of Euros)
Dec. 20
1,177.6
Dec. 19
1,214.5
Chg. (Mn€)
(36.9)
Net financial debt, entirely without recourse to the Group’s parent company, decreased by 36.9
million euros compared to December the previous year, totalling 1.177.6 million euros. Most of the
debt balance is for long-term bonds issued by the area’s parent company, with a gross balance
of 1.346.4 million euros.
2.1.7.3. Construction
The Construction area contributed 5.1% of the Group’s EBITDA in the business year. Activities
were focused on the design and construction of large civil engineering, industrial and complex
building works. Special mention should go to participation in major works like railways, tunnels,
bridges and football stadiums that constituted a major part of the activity.
Dec. 20
1,611.0
53.6
3.3%
20.9
1.3%
(Millions of Euros)
Dec. 19
1,719.3
100.2
5.8%
77.3
4.5%
Chg. (%)
-6.3%
-46.5%
-2.5 p.p
-73.0%
-3.2 p.p
The area’s revenues decreased by 6.3% to 1.611 million euros due to the slower pace of execu-
tion and the suspension that temporarily affected some ongoing projects, mainly in Latin America
and the Middle East. This could not be fully offset by a higher volume of activity linked to contracts
won and developed in Europe, which overall experienced a lower level of disruptions during the
business year.
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Breakdown of revenue by geographical area
(Millions of Euros)
Breakdown of revenue by geographical area
Spain
Europe and others
Middle East and Africa
Latin America and USA
Total
Dec. 20
Dec. 19
Chg. (%)
848.8
390.0
246.2
126.0
665.3
313.1
401.5
339.4
1,611.0
1,719.3
27.6%
24.5%
-38.7%
-62.9%
-6.3%
By geographical area, in Spain turnover increased by 27.6% to 848.8 million euros, due to the
good pace sustained in the development of projects. The most significant of these is the remo-
delling of the Santiago Bernabéu football stadium, as well as in other minor projects recently
awarded, which to a large extent compensated for the effects of the temporary measures taken
to suspend the activity in its planned course of development.
Similarly, in Europe and other markets, turnover grew by 24.5% over the previous business year
to 390 million euros, thanks to increased activity in new projects started in EU countries, including
the A-9 motorway in the Netherlands, the A-6 in Norway, the modernisation of the Bacau airport
runway in Romania and the pace of progress in the development of the Haren prison complex in
Belgium.
In the Middle East and Africa, revenues decreased by 38.7% to 246.2 million euros, mainly due
to the lower activity registered in the construction of the Riyadh metro in Saudi Arabia as a result
of the strict lockdown measures decreed because of the pandemic together with the high degree
of progress of the work as a whole.
52.7% Spain
15.3% Middle E. & Africa
24.2% Europe & Others
7.8% Latin America & USA
The gross operating profit (EBITDA) decreased by 46.5% compared to the previous business year
and amounts to 53.6 million euros. This development is the result of the combined effect in the
international area of higher provisions, as a preventive measure, as well as higher costs, all in an
environment marked by a temporary slowdown in activity stemming from the exceptional situa-
tion created by the health emergency measures. However, the higher level of activity executed in
Europe mitigated this impact and the operating margin was 3.3%.
Net operating profit stands at 20.9 million euros compared to 77.3 million euros for the previous
year, reflecting developments already commented on at the gross operating income level.
Breakdown of Backlogs by Geographical Area
(Millions of Euros)
In Latin America and the USA, turnover fell by 62.9% at business year-end, mainly due to the
lower contribution from the completion of Line 2 of the Panamá Metro and the Gerald Desmond
Bridge in Los Angeles (USA), together with the slowdown in the development of other projects
underway in various countries, due to the strict lockdown measures decreed in these countries.
Spain
International
Total
Dec. 20
1,628.4
3,527.4
5,155.8
Dec. 19
2,010.3
3,612.9
5,623.2
Chg. (%)
-19.0%
-2.4%
-8.3%
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The area’s income backlog decreased 8.3% at the end of December compared to the previous
business year, to 5.155.8 million euros. In Spain, it fell to 1.628.4 million euros, as a good pace in
terms of project progress was not matched by the addition of new contracts in a business year
that saw a low level of public tenders. In the international area, the backlog decreased by 2.4%,
mainly due to the decline in the contract of the “Ciudad de la Salud” Health Centre in Panama,
together with a reduction in the scope of works on other projects, which was largely offset by
other contracts obtained in Europe and Mexico.
2.1.7.4.1. Earnings
Turnover
Cement
Other
EBITDA
Breakdown of the Backlog by Activity Segment
Civil engineering works
Building
Industrial Projects
Total
Dec. 20
4,121.5
695.0
339.3
5,155.8
Dec. 19
3,991.6
1,251.6
380.0
5,623.2
3.3%
-44.5%
-10.7%
-8.3%
(Millions of Euros)
EBITDA Margin
Chg. (%)
EBIT
EBIT margin
By type of activity, the civil engineering works backlog accounted for 80% of the total and
increased by 3.3%, due to new contracts in the international area, mainly in Europe, which
offset the low public tenders in Spain, reaching 4.121.5 million euros. Building activity declined
significantly, due both to the aforementioned adjustment in the Panama backlog and to the
aforementioned drop in activity as a result of the health crisis.
2.1.7.4. Cement
The Cement area contributed 13.4% of the FCC Group’s EBITDA in the business year. This activi-
ty was undertaken by the CPV Group, which focusses on the manufacturing cement and by-pro-
ducts, with 7 main production centres in Spain and 1 in Tunisia, in addition to a minority stake
of 44.6% in Giant Cement, which operates a number of factories on the east coast of the USA.
369
Dec. 20
Dec. 19
Chg. (%)
(Millions of Euros)
382.6
345.2
37.4
139.9
36.6%
106.8
27.9%
413.2
374.5
38.7
86.4
20.9%
(20.0)
-4.8%
-7.4%
-7.8%
-3.4%
61.9%
15.7 p.p
n/a
32.8 p.p
Revenues for the area decreased by 7.4% to 382.6 million euros compared to December of the
previous year, due to a decrease in volumes invoiced in local markets in Spain and Tunisia, as
a consequence of the lockdown measures applied due to the pandemic, as well as a drop in
exports from both markets.
Breakdown of revenue by geographical area
(Millions of Euros)
Spain
Tunisia
Miscellaneous (exports)
Total
Dec. 20
Dec. 19
Chg. (%)
237.9
57.8
87.0
382.6
249.4
57.9
105.9
413.2
-4.6%
-0.2%
-17.9%
-7.4%
By geographic area, revenues in Spain declined by 4.6% to 237.9 million euros, as the lockdown
measures decreed due to the pandemic caused a decrease in volumes in the first half of the year,
which was mitigated by good price performance. It should be noted that in the second half of
the year there was a progressive recovery of activity with a more stable performance in terms of
demand.
In the Tunisian local market, revenues remained stable at 57.8 million euros, where the decrease
in volumes was offset by both price increases and the appreciation of the Tunisian dinar. Similarly,
there was a progressive improvement in activity levels in the second part of the business year.
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Export earnings fell by 17.9% amounting to 87 million euros due to a decrease in shipments made
both from Spain and from Tunisia.
Breakdown of revenue by geographical area
62.2% Spain
15.1% Tunisia
22.7% Others
The gross profit income increased by a remarkable 61.9% to 139.9 million euros, due to two main
factors. The sale of CO2 rights amounted to 58.9 million euros in the business year, compared to
5.8 million euros the previous year, and the aforementioned drop in volumes and revenues was
offset by the fall in energy prices, both for fuels and electricity. Therefore, without taking into ac-
count the CO2 component in both business years, Ebitda would have improved slightly by 0.4%
in 2020 compared to the previous business year.
The net operating profit amounted to 106.8 million euros, as a result of the aforementioned deve-
lopment of the gross operating profit.
2.1.7.4.2. Financial Debt
Net financial debt without recourse
(Millions of Euros)
Dec. 20
173.7
Dec. 19
Chg. (Mn€)
293.0
-119.3
2.1.7.5. Concessions
As a result of a sale agreement reached in October 2020 and in accordance with accounting
standards (IFRS 5), the assets and liabilities relating to the investees to be transferred from the
concession activity have been classified as held for sale in the FCC Group’s balance sheet. The
consolidation method is maintained in the income statement in the same way, until the operation
is closed and the shares transferred.
The Concessions area accounts for 9% of the Group’s EBITDA in the year as a whole. Its activi-
ties focussed on the development, operation and maintenance of transport and non-residential
infrastructures. At the close of the business year, the Cedinsa subgroup maintained its contribu-
tion to turnover, which together with other smaller entities represents a total of 18 concessionary
companies in the portfolio and with different degrees of participation.
2.1.7.5.1. Earnings
Turnover
EBITDA
EBITDA Margin
EBIT
EBIT margin
Dec. 20
Dec. 19
Chg. (%)
(Millions of Euros)
123.5
94.6
76.6%
55.4
44.8%
49.8
31.8
63.9%
12.0
24.1%
148.0%
197.2%
12.7 p.p
n/a
20.8 p.p
The area’s revenues were 123.5 million euros this business year, as compared to 49.8 million eu-
ros for the first half of the previous business year. This change is mainly due to the contribution of
the Cedinsa subgroup, after acquiring control of the majority of its capital in November 2019 and
incorporating it since then through full consolidation.
Breakdown of revenue by geographical area
(Millions of Euros)
Net financial debt, entirely without recourse to the Group’s parent company, decreased signifi-
cantly by 119.3 million euros to 173.7 million euros, of which 108 million euros correspond to the
early partial repayment of the area’s main credit facility, which has no significant ordinary maturity
until 2022.
Spain
Mexico
Total
Dec. 20
Dec. 19
Chg. (%)
121.5
2.1
123.5
47.5
2.3
49.8
155.7%
-11.3%
148.0%
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By geographical area, almost all of the revenues are concentrated in Spain, revenues totalling
121.5 million euros, 76.5% of which was contributed by the Cedinsa subgroup. The Coatza-
coalcos Tunnel concession in Mexico remains practically unchanged compared to the previous
business year and its contribution reflects the depreciation effect of the Mexican peso during this
period (-12.1%).
Breakdown of revenue by geographical area
98.3% Spain
1.7% Mexico
Gross operating income totalled 94.63 million euros, 79.6% corresponding to the Cedinsa con-
cession group.
2.1.7.5.2. Financial Debt
Dec. 20
Dec. 19
Chg. (Mn€)
(Millions of Euros)
Net financial debt without recourse
14.7
751.8
-737.1
At the end of last December, consolidated net financial debt had suffered a substantial reduction
to 14.7 million euros compared to the balance at the end of 2019. This was due to the afore-
mentioned effect from the application of accounting regulations, which after the sale agreement
reached by various concessionary companies led to the reclassification of its gross financial debt
under the single epigraph of liabilities held for sale amounting to 736.6 million euros.
2.2. Business performance. Environment
The information relating to the FCC Group’s environmental policy is set out in greater detail in
note 30 to the consolidated financial statements and in section 7 of the Non-Financial Information
Statement.
The FCC Group carries out its activities on the basis of business commitment and responsibility,
compliance with applicable legal requirements, respect for the relationship with its stakeholders
and its ambition to generate wealth and social well-being.
Aware of the importance to the FCC Group of preserving the environment and using available
resources responsibly, and in line with its vocation to serve through activities with a clear envi-
ronmental focus, the FCC Group promotes and enhances the following principles, on which its
contribution to sustainable development is based, throughout the organisation:
• Continuous improvement: Promote environmental excellence by establishing objectives for
the continuous improvement of performance, minimising the negative impacts of the FCC
Group’s processes, products and services, and enhancing the positive impacts.
• Monitoring and control: establish environmental indicator management systems for the ope-
rational control of processes, which provide the necessary knowledge for the monitoring, eva-
luation, decision-making and communication of the FCC Group’s environmental performance
and compliance with the commitments undertaken.
• Climate change and pollution prevention: Lead the fight against climate change through the
implementation of processes with lower greenhouse gas emissions, and by promoting energy
efficiency and renewable energies. Preventing pollution and protecting the natural environ-
ment through the responsible management and consumption of natural resources and by
minimising the impact of emissions, discharges and waste generated and managed by the
FCC Group’s activities.
• Observation of the environment and innovation: To identify the risks and opportunities of acti-
vities in the face of the changing landscape of the environment in order, among other things,
to promote innovation and the application of new technologies, as well as the generation of
synergies between the various activities of the FCC Group.
• Life cycle of products and services: enhancing environmental considerations in business plan-
ning, procurement of materials and equipment, and relations with suppliers and contractors.
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• The necessary participation of all parties: promote the knowledge and application of environ-
mental principles among employees and other stakeholders. To share experience of the best
practices with the different agents in order to promote alternative solutions to those currently
in place, which contribute to the achievement of a sustainable environment.
2.3. Business performance. Personnel
Details are attached of the FCC Group’s staff at year-end, by business area:
In order to improve the Group’s liquidity position, active collection management is carried out with
customers to ensure that they meet their payment commitments.
To ensure liquidity and meet all payment commitments arising from the business, the Group has
cash flows as shown in the balance sheet (see note 17 to the consolidated financial statements)
and detailed financing (see note 20 to the consolidated financial statements).
Note 30 to the consolidated financial statements sets forth the policy implemented by the FCC
Group to manage liquidity risk and the factors mitigating said risk.
372
Spain
Abroad
Total
%/Total
Capital resources
Areas
2020
Environment
Water Management
Construction
Cement
Concessions
Central Services and Others
33,206
6,675
3,944
785
154
306
7,126
3,849
3,379
251
71
0
40,332
10,524
7,323
1,036
225
306
68%
18%
12%
2%
0%
1%
TOTAL
45,070
14,676
59,746
100%
3. Liquidity and capital resources
Liquidity
In order to optimise its financial position, the FCC Group maintains a proactive liquidity manage-
ment policy with daily cash monitoring and forecasts.
The FCC Group covers its liquidity needs through the cash flows generated by the businesses
and through the financial agreements reached.
The Group manages its capital to ensure that its member companies will be able to continue as
profitable and solvent businesses.
As part of its capital management operations, the Group obtains financing through a wide range
of financial products.
During the 2019 business year, two simple bonds were issued by FCC Servicios Medioambiente
Holding, S.A.U. for an amount of 1,100 million euros; FCC Aqualia, S.A. had previously done the
same in 2017.
In November 2018, FCC, S.A. registered a 300 million euros promissory notes programme, which
was subsequently expanded to 600 million euros in March 2019. In 2019, new funding facilities
were arranged in the form of credit facilities and bilateral loans. In 2020, FCC Servicios Medioam-
biente Holding, S.A.U., also registered a 300 million euros promissory notes programme.
Likewise, in 2020, Cementos Portland Valderrivas, S.A. repaid debt of 119 million euros, of which
108 million euros were voluntarily repaid (note 20 of Non-current and current financial liabilities of
the notes to the 2020 financial statements).
These operations have made it possible to complete the process of debt reduction and financial
reorganisation initiated five years ago and to continue with the policy of diversifying financing
sources; all this contributing to achieving a much more stable and efficient capital structure, with
amounts, terms and financing costs suitable according to the nature of the different business
areas.
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In order to optimise the cost of capital resources, the FCC Group maintains an active policy of
interest rate risk management, constantly monitoring the market and taking different positions
depending mainly on the assets financed.
4. Major risks and uncertainties
The performance of interest rates in recent years is shown below.
373
3.00%
2.70%
2.40%
2.10%
1.80%
1.50%
1.20%
0.90%
0.60%
0.30%
0.00%
-0.60%
Dec.16 Mar.17
Jun.17
Sep.17
Dec.17
Mar.18
Jun.18
Sep.18
Dec.18 Mar.19 Jun.19 Sep.19 Dec.19 Jan.20 Feb.20 Mar.20 Apr.20 May.20 Jun.20 Jul. 20Aug. 20 Sep.20 Oct.20 Nov.20 Dec.20
EURIB 6M
GBP-LIBOR 6M
USD-LIBOR 6M
This section is discussed in greater detail in note 30 to the consolidated financial statements.
4.1. Risk Management Policy and System
The FCC Group Risk Management Model has been designed with the aim of identifying and
assessing the potential risks that could affect the Group’s different units, as well as establishing
mechanisms incorporated into the organisation’s processes that make it possible to manage risks
within the accepted levels, providing the Board of Directors and Senior Management with reaso-
nable assurance regarding the achievement of the main objectives defined. This Model applies to
all FCC Group companies, as well as to those affiliates where FCC has effective control, promo-
ting the development of work frameworks that enable suitable risk control and management in
those companies where effective control is not available.
This model is essentially based on the integration of a risk-opportunity vision and the assignment
of responsibilities that, together with the segregation of duties, enable the follow-up and control
of risks, consolidating a suitable control environment.
The activities included in the FCC Group’s Risk Management Model include the assessment
of risks, including tax risks, in terms of impact and probability of occurrence, giving rise to Risk
Maps, and subsequently the establishment of prevention and control activities to mitigate the
effect of such risks. In addition, this Model includes the establishment of reporting flows and
communication mechanisms at different levels, which allow both decision-making and its review
and continuous improvement.
The system covers the risk scenarios considered, which have been classified into four groups:
Operational, Compliance, Strategic and Financial.
The risk management duties and responsibilities at the different levels of the organisation are
detailed in section E on the Risk Management and Control System of the Annual Corporate Go-
vernance Report.
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4.2. Major risks and uncertainties
The FCC Group operates worldwide and in different sectors and, therefore, its activities are sub-
ject to a variety of environmental, socio-economic environments and regulatory frameworks, as
well as to different risks inherent to its operations and risks arising from the complexity of the
projects in which it participates, which could affect the achievement of its objectives.
Details of the main strategic, operational and compliance risks that could affect the Group’s ac-
tivities, as well as a description of the systems used to manage and monitor them, can be found
in section E of the Annual Corporate Governance Report, as well as in section 6.2 of the Non-Fi-
nancial Information Statement.
With regard to financial risks, which are considered to be the changes in the financial instruments
arranged by the FCC Group due to political, market and other factors, and their repercussions on
the financial statements, the risk management philosophy is consistent with the business strate-
gy, seeking maximum efficiency and solvency at all times. To this end, strict financial risk control
and management criteria have been established, consisting of identifying, measuring, analysing
and controlling the risks incurred by the Group’s operations, with the risk policy being correctly
integrated into the Group’s organisation. The financial risks to which the Group is exposed are dis-
cussed in greater detail in note 30 to the consolidated financial statements, in section E of the An-
nual Corporate Governance Report and in section 6.2 of the Non-Financial Information Statement
In addition, the FCC Group is also subject to certain risks relating to environmental and social
issues, the management of which is described in greater detail in sections 6.2 and 7 of the
Non-Financial Information Statement.
5. Acquisition and disposal of own shares
6. Significant events occurring
after the end of the year
There have been no significant events between the end of the year and the date of preparation of
these financial statements.
7. Outlook
The outlook for the performance of FCC Group’s main business areas in 2021 is given below.
Environmental Services
In the countries where it operates, the sector is undergoing a major process of transformation,
due to the environmental requirements of each country deriving from the European Directives
(new opportunities based on the ambitious targets set by the European Union in relation to the
circular economy and climate change). The new services will focus on energy efficiency, urban
mobility and smart cities.
In Spain, moderate growth is expected in the start up of operations of the disposal facilities that
were under construction and the initial operation of newly awarded contracts. No significant chan-
ges are expected in the domestic market, the aim being focused on gradually replacing the linear
production model with circular models (Plan PEMAR 2016-2022, España Circular 2030 [State
Waste Framework Plan for Spain’s Circular Economy]).
At 31 December 2020, the FCC Group owned, directly and indirectly, a total of 1,544,773 shares
of FCC S.A. (0.38% of the company’s capital stock).
In Portugal, business opportunities related to soil decontamination activities and new urban sani-
tation contracts stand out.
Transactions involving the acquisition and disposal of own shares during the year are detailed in
note 18 to the consolidated financial statements.
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In the United Kingdom in 2020, the economic forecasts for 2021 are marked by the impact of its
departure from the EU and the effects of the Covid-19 pandemic, which will continue to weigh
down its performance during the first half of 2021. To respond to this uncertainty, the UK Govern-
ment has announced an extension of financial aid until at least March 2021. In the environmental
area, once its membership of the EU ends, the UK will nevertheless remain committed to the EU’s
circular economy objectives and recycling goals, therefore no sudden changes are expected.
Additionally, the Government is promoting new measures to encourage the recycling of plastics
with the introduction of a tax on packaging and supporting measures to reduce CO 2 emissions.
The sector, strongly conditioned by environmental legislation, will continue to await legislative
developments in these aspects. In the short term, the market for recycled products has become
more restrictive, prioritising quality and experiencing price volatility; the export of refuse-derived
fuel (RDF) to Europe will be affected by trade barriers and by the development of new treatment
plants, a process in which our division in the United Kingdom is already involved, continuing with
its production strategy of energy through waste treatment.
Moderate organic growth is expected in Central and Eastern Europe. Although the economic
indicators show significant growth compared to 2020, a lower budget allocation is expected
in many municipalities (in activities such as street cleaning, gardening, pruning, winter services)
due to the need to allocate funds to other activities due to Covid-19. The start of several major
soil decontamination projects will probably also be delayed for the same reason. Similarly, many
businesses will suffer the financial consequences of the end of public aid and it is very likely that
normal economic activity will not restart again until the second semester since, even with the exis-
tence of vaccines, the logistical challenge of their application will probably include new periods of
restrictions in almost all territories.
In relation to the implementation of the business model, Austria is a mature and fully developed
market while the other three most important countries, the Czech Republic, Slovakia and Po-
land, must gradually transform their business model, reducing volumes in landfills and increasing
treatment and recycling activities in order to adapt to European Union directives. In principle, this
process is more medium term (2026-2030) but, given that the obtaining of permits and the final
construction of treatment plants or incinerators is long term, various projects that could be started
in the short term have already begun to be analysed.
As far as the USA is concerned, it represents a market with high development potential for a com-
pany with the know-how, experience and use of the most advanced and efficient technologies in
providing quality environmental services, as FCC has.
End-to-End Water Management
Expectations for 2021 are for a growing recovery in the levels of activity that have been affected
by the Covid-19 pandemic, mainly in regions where demand is more closely linked to tourism and
second homes. In this regard, we expect a recovery from the second half of the 2021 business
year, which will be reinforced by the new contracts added to the scope during 2020, as well as
by the maintenance of the high contract renewal rates that Aqualia consistently achieves at their
expiration. This increase in revenues will lead to an improvement in profits, reinforced by the
continuation of cost optimisation actions and operational optimisation measures in the contracts
included in the management scope.
In Spain in the area of Service concessions for the End-to-end Water Cycle, for 2021 it is worth
mentioning the expectation of maintaining similar renewal rates to those of 2020, exceeding 90%,
although many new contracting opportunities are not expected due market apathy.
With regard to Europe, in Portugal, prospects of a slight reactivation of the concession business
is expected after the legislative elections held in 2019 and based on the high budget deficit of the
Municipalities and the need for infrastructure investment. Similarly, a further increase in the growth
of operation and maintenance contracts is expected to be promoted by the public companies
belonging to Aguas de Portugal. It is expected that the proper authorities will continue with the
search for solutions to the management of sludge from the country’s wastewater treatment plants.
In France new tenders are expected for the assignment of public services due to the termination
of the contractual deadline for some of the existing contracts in the country.
In Saudi Arabia the process of modernisation and provision of the country’s hydraulic infras-
tructures will continue, promoted by the Government in the Vision 2030 programme, by means
of public-private collaboration. The infrastructure concession contracts tendered in 2020 will be
definitively awarded and the bid for new BOT projects in the field of desalination and purification
is expected to take place. Bids for operation and maintenance contracts for water and sanitation
services in the six regions into which the Saudi kingdom has been divided will also begin.
In 2021, Aqualia will consolidate the operation of the new sanitation contract for Abu Dhabi and
that for the WWTP in Al Dhakira, in Qatar.
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In LATAM, the construction phase of the Guaymas SWDP (Sonora, Mexico), will be completed,
giving way to a 20-year period of operation, and of the PTAR Salitre (Colombia). In both countries,
new concessions for desalination hydraulic infrastructure will be tendered in the states of Baja
California and Sonora and for purification within the Bogotá river decontamination programme.
Finally, in Peru the preparation of the significant private initiatives declared in favour of Aqualia will
continue (5 treatment plants and 1 desalination plant) and in the USA, there will be a presentation
of the projects currently under study to their corresponding clients under the formula of “unsolicited
proposals”, for their evaluation and, if accepted, for subsequent execution.
According to the Association of Infrastructure Contractors and Concessionaires (Seopan), it is es-
timated that public contracting fell by 39.7% in 2020. According to Oficemen, the trend in cement
market consumption in 2021 will be in range of between -3.0% and 3%. In Tunisia, growth of 5%,
up to 6.1 million tonnes, is estimated in the domestic market for 2021, after the strong contraction
suffered in 2020 where it fell by 10% to around 5.8 million tonnes.
In this context, the Cementos Portland Valderrivas Group will continue to develop its cost con-
tainment and investment optimisation policies and to adapt all its organisational structures to the
reality of the various markets in which it operates, with the aim of improving the generation of
resources.
Construction
In the international market, FCC focuses on countries and markets with a stable presence and on
the execution of projects with guaranteed financing.
8. R&D+I activities
The search for contracts in the domestic and international markets is one of the Group’s objec-
tives, although this is done through demanding risk management that must provide access to a
selective backlog of projects that ensure the company’s profitability and cash flow generation.
Taking into account the above, it is estimated that in 2021, the turnover obtained in Spain will
remain similar to that obtained in 2020.
The FCC Group’s R&D&I activities in 2020 have resulted in more than 40 projects.
These projects seek to respond to the challenges of each business area while maintaining overall
coordination between the different business areas of the FCC Group.
The activities of the different Business areas and the main projects developed throughout 2020
are detailed below.
Cement
The Bank of Spain forecasts a fall of 11% in the Spanish economy for 2020, demonstrating its
permeability to major international crises. The economic outlook is conditioned by how the situa-
tion with the virus evolves and although the progress in obtaining vaccines significantly reduces
the unknowns, uncertainty remains about when the pandemic will be completely overcome. The
Bank of Spain in its intermediate scenario forecasts that the Spanish economy will grow by 6.8%
in 2021 and 4.2% in 2022 with unemployment rates of 18.3% and 15.6%, respectively. The Spa-
nish economy will not recover its pre-pandemic levels until 2023.
Environmental services
In the environmental services activity, we have continued with the development of projects started
in previous years, such as:
• VISION.
• BICISENDAS.
•
INSECTUM.
• H2020 SCALABLE TECHNOLOGIES FOR BIO-URBAN WASTE RECOVERY (SCALI-
BUR).
• LIFE 4 FILM.
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In addition, new ones have been launched during 2020, which are summarised below:
End-to-end Water Management
• DEEP-PURPLE: it consists of the conversion of complex molecules present in the organic
matter of urban solid waste into sustainable materials and products in bio-refineries through
the metabolism of the “Purple Photosynthetic Bacteria”. Thermal hydrolysis is used to extract
the organic matter from the separate collection and incorporate it into the liquid phase.
• RECYGAS: it delves into the research of waste gasification and enables the use of clean syn-
thetic gas obtained from the gasification process to initiate chemical synthesis routes (whose
products would no longer have the status of waste) or its use in high-efficiency electricity
generation cycles. The technology that the project incorporates would allow it to climb up the
waste management hierarchy towards recycling.
• B-FERTS: the main aim is to integrate the revaluation of bio-waste in agriculture by creating
new value chains of bio-based circular economy, coming from municipal solid wastes and
the agricultural industrial sector and aimed at the production of mineral and organo-mineral
fertilisers, developing the nutrient mixes suitable for their application. Its aim is to change the
traditional value chain of fertiliser production and evolve from a linear manufacturing system to
a lean manufacturing system, based on a circular economy that will be developed in B-FERST.
• LIFE-PLASMIX: the main objective is the practical demonstration on a semi-industrial scale
of an innovative recovery and recycling process of the MIX fraction of MSW, the revaluation of
polypropylene (PP) and polystyrene (PS) in the form of high quality pellets ready to be used in
the manufacture of new products, such as packaging.
• LIFE- LANDFILL BIOFUEL: this project pursues the technical demonstration of a profitable
system for the production of vehicular biomethane from landfill biomethane through the imple-
mentation of new techniques for the exploitation of landfill cells and the use of an innovative
upgrading technique that combines filtering with membranes and the PSA vacuum adsorption
system. This holistic approach implies the revaluation of landfill biogas as an alternative fuel for
light and heavy lorries, carrying out break-in tests on them.
FCC Aqualia’s innovation activity is in line with European policies for the transition to a circu-
lar economy with a zero carbon footprint, seeking the development of new smart management
tools and new proposals for sustainable services. In this way, the Department of Innovation and
Technology (DIT) supports the company in achieving the United Nations Sustainable Develop-
ment Goals (SDGs), towards an affordable and high quality water and sanitation service (SDG 6),
optimising its energy balance (SDG 7) and avoiding its impact on the climate (SDG 13) through
sustainable production and consumption (SDG 12).
The projects developed by the DIT during 2020 seek to strengthen FCC Aqualia’s technological
proposal in four lines of work: Quality, Eco-Efficiency, Smart Management and Sustainability.
The major projects in 2020 are listed below:
• RIS3 VALORASTUR: with the aim of achieving eco-efficient wastewater treatment, the RIS-3
programme of the Institute of Economic Development of the Principality of Asturias (IDEPA)
has supported FCC Aqualia’s collaboration with two large public companies and the SME
Ramso. Together with the Institute of Carbon Science and Technology (INCAR - part of the
Spanish National Research Council (CSIC) in Oviedo), new low-cost adsorption materials (at
less than €500/t) have been developed from dried sewage sludge, with activation by pyrolysis.
The project also implemented the optimisation of the nutrient removal process at the San
Claudio WWTP. The reduction in electricity costs, in the minimisation of the purchase of iron
salts (by optimising the biological elimination of phosphorus), and in mud production, is close
to 30k €/year, which means that the costs of improving the automated control system can be
amortised in less than a year.
•
INTERCONECTA ADVISOR: co-financed by the CDTI with FEDER funds, the project has
implemented new pre-treatment and co-digestion methodologies for meat waste (Maguisa) at
the WWTP managed by FCC Aqualia in Guijuelo, supported by municipality and with the co-
llaboration of AINIA. A new digester control system based on LIDAR (Laser Imaging Detection
and Ranging) technology is also being developed to detect foams.
ADVISOR has been selected as one of 101 business actions of the 2020 #PorElClima (For
The Climate) community, and its CO2 reduction impact has been certified by the Carbon Fund
for a Sustainable Economy (FES-CO2) of the CLIMA Programme of the Ministry for the Ecolo-
gical Transition (Miteco).
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• LIFE ICIRBUS: led by the Intromac technology centre and with six other partners from Extre-
madura, the project has developed a prototype at the wastewater treatment plant in Lobón
(Extremadura), managed by FCC Aqualia, to demonstrate the adsorption of metals contained
in some wastewater treatment plant sludge by biomass fly ashes from the company ENCE.
The process was protected with a utility model, and the treated ashes are integrated as ag-
gregates in building materials, while the residual sludge reduces its odours, and is added to a
compost that was used for different crops.
• LIFE METHAMORPHOSIS: as part of this project led by FCC Aqualia, together with five
other entities (Área Metropolitana de Barcelona AMB, FCC Medio Ambiente, Naturgy, Icaen
and SEAT), two biomethane production demonstration plants were implemented.
Development continues with the LIFE Infusion project to prepare design parameters for future
AMB resource recovery plants, and to evaluate technologies in Asturias with another waste
management contractor (Cogersa).
• H2020 MIDES: the project, with eleven partners from seven countries, has led to the setting
up of two demonstration units of a new biological desalination technology, patented by FCC
Aqualia and IMDEA Agua, in plants operated by FCC Aqualia in Dénia/Alicante and Guía de
Isora/Tenerife. This microbial desalination cell (MDC) reduces the energy cost of desalination
by up to ten times compared to traditional seawater reverse osmosis. Instead of electrical
energy, residual organic matter from effluents is used to activate bacteria that generate a
difference in power without external energy input, to move salts through ion exchange mem-
branes, at the same time as the treatment of wastewater effluent that serves as fuel.
The project has also contributed to the construction of the Desalination Innovation Centre in
Denia, where a platform has been built to evaluate various pre-treatments, with multi-mem-
brane and media filtration pilots. In addition, re-mineralisation post-treatments and alternative
disinfection methods without resorting to hypochlorite are optimised.
• RIS3 RE-CARBÓN: financed by IDEPA with FEDER funds, and led by the engineering com-
pany INGEMAS with two SMEs (Biesca and InCo), Aqualia supports the MCAT institutes
(Microwaves and Carbons for Technological Applications) of the INCAR (Institute of Carbon
Science and Technology) of the CSIC and the CTIC (Information and Communication Tech-
nology Centre Foundation) in the investigation of methods of adsorption of pollutants by re-
generated activated carbon and biochar. The aim is the cost-effective supply of a sustainable
adsorbent for water or gas applications.
The feasibility of cleaning biogas at the Jerez, Chiclana and Lleida WWTPs and deodorisation
at the San Claudio and Luarca WWTPs is being tested. The adsorption of micro-pollutants
and new sensors that allow real-time monitoring at the Grado WWTP and the Cabornio DWTP
are also being studied.
• JPI MARADENTRO: the project “Managed Aquifer Recharge: Addressing The Risks of Re-
generated Water” is led by the Institute of Environmental Assessment and Water Research
in the European Horizon 2020 ERA-NETs Cofund WaterWorks2018 programme, with the
participation of partners in France, Italy and Sweden.
A 400 m2 infiltration system will be built at the Medina del Campo WWTP for the advanced
treatment of treated water and its reuse in recharging aquifers. With the scientific institutes,
system design and simulation tools will be developed, optimising the operation and costs of
processing contaminant removal compared to conventional tertiary treatment.
• H2020 SABANA: the University of Almeria leads eleven partners from five countries (inclu-
ding the Czech Republic and Hungary) with three large companies: FCC Aqualia, Westfalia
(Germany) and the Italian food group Veronesi. The project optimises the production of new
biofertilisers and bio-stimulants from algae, and work is nearing completion on two cultivation
units totalling five hectares and corresponding bio-refineries at the WWTPs of Mérida and
Hellín (Albacete).
• H2020 RUN4LIFE: led by FCC Aqualia, a consortium of fifteen entities in seven countries
implements in four demonstration sites (Sneek/Netherlands, Ghent/Belgium, Helsing-borg/
Sweden and Vigo/Spain) new concepts of nutrient retrieval from the separation of grey and
black waters.
In Vigo’s Free Trade Zone, FCC Aqualia operates an MBR in an office building for grey waters,
which is reused in the toilets, and an AnMBR in black waters to produce bioenergy. Various
nutrient recovery options are tested, followed by advanced oxidation to remove viruses and
processing contaminants, and by evaluating the quality and safety of effluents and by-pro-
ducts as fertilisers through greenhouse cultivation trials.
A larger installation is being prepared at the Balaídos industrial estate with effluent from Ci-
troën, and the bioelectrochemical FBBR technology (Elsar patented process) is being eva-
luated for the direct treatment of sewage, using the inoculum from the Guijuelo reactor as
biomass.
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An important part of the project is the dialogue with the users of new services and by-pro-
ducts to optimise services and water and energy consumption through decentralised mana-
gement of these systems and to assess the effect of new fertilisers.
• H2020 SCALIBUR: the project led by the Itene technology centre and involving twenty-one
partners from ten countries, reached its halfway point in 2020. Since the end of 2018 and
with a duration of four years, it has focused on waste reduction and recovery on a European
scale. With the participation of FCC Medio Ambiente, the project focuses on improvements to
waste processing plants in Madrid, Lund (Sweden) and Rome (Italy) to recover resources and
promote the circular economy.
Within this framework, Aqualia has implemented new sludge treatments at the Estiviel WWTP
(Toledo), with improvements in thickening (Orege system) and dual digestion in two stages,
and simplifying mud stabilisation without heated concrete structures. The project has facilita-
ted initial innovation activities at SmVaK in the Czech Republic, to convert organic matter into
by-products and bioenergy.
• BBI DEEP PURPLE: led by FCC Aqualia and supported by thirteen partners from six coun-
tries, the project implements on a demonstration scale a new bio-refinery model, which inte-
grates purple phototrophic bacteria (PPB) in anaerobic carrousel-type systems. These bacte-
ria use solar energy to treat wastewater without aeration, and transform the organic content of
wastewater and municipal wastes into raw materials for biofuels, plastics, cellulose and new
base materials in the chemical and cosmetics industry.
A first FCC Aqualia prototype is operating at Toledo-Estiviel, and a demonstration reactor 10
times larger is planned for the Linares WWTP. Parallel activities are also being prepared at the
SmVaK WWTP in the Czech Republic.
• BBI B-FERST: with Fertiberia as the leader, and with ten partners from six different coun-
tries, FCC Aqualia is involved in the development of new biofertilisers from urban wastewater
and by-products from agri-food industries. The potential of recovered raw materials in the
production of fertilisers in three countries (Spain, Italy and the Czech Republic) is analysed,
and a struvite precipitation system is developed at the Jerez WWTP to incorporate recovered
phosphorus in a new Fertiberia bio-based fertiliser demonstration plant in Huelva.
• LIFE INTEXT: the project is led by FCC Aqualia, with the AIMEN and CENTA technology cen-
tres and the Aarhus University in Denmark supporting SMEs in Germany, Greece and France
to optimise low-cost wastewater treatment technologies in small towns. The aim is to mini-
mise energy costs, carbon footprint and waste, and to provide ecologically and economically
sustainable solutions. The construction of a demonstration platform for these technologies at
the Talavera WWTP operated by FCC Aqualia is in its final phase.
• LIFE ULISES: the project coordinated by FCC Aqualia is supported by three technology cen-
tres, CENTA, EnergyLab and CieSol of the University of Almeria. To optimise and transform
conventional WWTPs into “energy production factories”, eliminating their carbon footprint,
anaerobic pretreatment with the PUSH reactor is being implemented at the El Bobar WWTP
in Almeria, operated by Aqualia, which is also being evaluated at two WWTPs in Portugal. Di-
gestion is improved by hydrolysis and biogas is used as a vehicle fuel with an ABAD BioEnergy
refining system and a biomethane dispenser.
• LIFE INFUSION: after the completion of the Life Methamorphosis project, the Barcelona Me-
tropolitan Area wanted to extend the project to prepare the designs for several new resource
recovery plants. Together with the EureCat technology centre and the operator of Ecoparc2,
EBESA, the leachate digestion system will be optimised with FCC Aqualia, AnMBR and ELAN
technologies, with the addition of an ammonia stripping system from the Belgian SME Detri-
con. Two waste management entities, Cogersa in Asturias and AMIU in the region of Genoa/
Italy are also participating to evaluate the options for implementing the solutions in their plants.
• LIFE PHOENIX: the project, led by FCC Aqualia and supported by the technology centres
CETIM and CIESOL, will optimise tertiary treatment to achieve the most ambitious aims of the
new European regulation on water reuse (EU 2020/741). In order to evaluate various effluents,
from ADP in Portugal, the Almeria Provincial Council and the Guadalquivir Hydrographic Con-
federation, three mobile plants have been designed, a 50 m3/h physical-chemical treatment
plant, a 30 m3/h filtration plant and a 20 m3/h ultrafiltration plant.
• LIFE ZERO WASTE WATER: the project, led by FCC Aqualia, will demonstrate at the Valde-
bebas WWTP, with Canal Isabel II as a partner, the combined treatment of Urban Wastewater
and of Organic Fraction of Municipal Solid Waste (OFMSW) with the AnMBR anaerobic reac-
tor, followed by ELAN in the water line, for 50 m3/d, allowing water treatment with a neutral
carbon footprint. The management of OFMSW at a municipal level and the possibility of con-
nection with the sewer system for the transport of the mixture in a single stream.
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• H2020 SEA4VALUE: led by the EureCat technology centre, and with 14 partners from seven
countries, the project focuses on recovering resources from concentrated brine in seawater
desalination plants (SWDPs), with basic scientific developments funded 100% by the EU. At
its Desalination Innovation Centre in Denia, FCC Aqualia will continue to develop solutions
for the revaluation of brine and new desalination methods, with solar concentration of brine,
selective precipitation of magnesium, obtaining chlorine dioxide, and optimisation of the re-
mineralisation of permeate with micronised calcite, reducing CO2 consumption, turbidity and
the size of the installation. The implementation of pilot units in the various WWTPs operated
by FCC Aqualia will be evaluated, with an analysis of the technical and economic impact.
• H2020 ULTIMATE: in the “Smart Water Economy” call for proposals, FCC Aqualia participa-
tes in two of the five selected consortia, which receive up to 15 million euros of support per
project. In Ultimate, led by the Dutch technology centre KWR, nine demonstrations of syner-
gies between water utilities and industries are implemented with 27 partners.
At the Mahou WWTP in Lleida, operated by FCC Aqualia, the comparison of the FBBR (Elsar)
and AnMBR anaerobic reactors at a 20 m3/h scale is being prepared to recover biomethane
and power a fuel cell. The co-digestion of yeast is also being studied, as well as support for
FCC Aqualia’s other client partner, Aitasa.
• H2020 REWAISE: the Rewaise project has the largest business participation of the five pro-
jects selected in the “Smart Water Economy” call for proposals, and FCC Aqualia leads the
twenty-four partners including water companies from the UK (Severn Trent), Sweden (Vasyd)
and Poland (AquaNet) and 7 SMEs to implement new circular economy and digital mana-
gement solutions in nine “living labs” including FCC Aqualia’s implementations in Badajoz,
Canary Islands, Denia and Vigo.
Construction
FCC Construcción promotes an active policy of technological development, constantly bringing
innovation to its projects, with a strong commitment to research and development, sustainability
and contribution to the quality of life of society as competitive factors. This innovation policy is
coordinated with all other business areas of the FCC Group.
The development and use of innovative technologies to carry out the works is an important con-
tribution to added value and is a differentiating factor in today’s highly competitive and internatio-
nalised market.
The three types of projects developed by FCC Construcción and its investee companies are:
internal projects, projects with other companies in the FCC Group and projects in collaboration
with other companies in the sector or other related sectors, often with technology-based SMEs,
which enables open innovation projects to be carried out with the participation of the value chain
and occasionally in horizontal cooperation. In addition, the presence of universities and technology
centres is essential in almost all projects.
Some of the projects are carried out in a consortium formed with Public Administrations, as is
the case of the European Project LIFE ZERO IMPACT, Development and demonstration of an
anti-bird strike tubular screen for High Speed Rail lines, in which the Administrator of Railway
Infrastructures (Adif) participates.
The projects highlighted in 2020 are listed below:
• ZERO IMPACT: the aim here is the development of a bird anti-collision screen, with a design
based on free-standing tubes.
Rewaise reinforces FCC Aqualia’s strategic lines of technological development, with sustai-
nable desalination and new membranes, the recovery of materials from brine, the reuse of
wastewater and its transformation into energy and by-products, and the simulation of water
quality, processes and networks.
In addition, in 2020, four new patents were granted. The first one related to the Anaerobic Mem-
brane Reactor. The second was granted for the Bio-electrochemical Fluidised Bed. The third on
a Photobioreactor with purple bacteria and finally the fourth on the Microbial Desalination Cell.
• ROBIM: project within the CIEN programme financed by CDTI (Centre for the Development
of Industrial Technology) the objective of which is autonomous robotics for the inspection and
evaluation of existing buildings with BIM integration, with the development of an automated,
active and multidisciplinary technology for the inspection, evaluation and diagnosis of the
composition and state of conservation and energy efficiency of the enclosures of the building
assets, which facilitates obtaining accurate and sufficiently detailed information on the cons-
truction systems and pathologies as well as an in-depth analysis of the building.
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• PWDRON: project financed by CDTI (Centre for the Development of Industrial Technology),
the objective of which is the development of a centralised system for the automated moni-
toring of the execution of infrastructures in linear civil engineering works, using drones with
advanced technological features, as well as the development of a new technological platform
for the exchange, processing and distribution of data in BIM.
• REFORM2: project presented with the help of the Catalan Waste Agency and whose objec-
tive is the recovery of by-product (of 0/6 porphyry, a by-product that originates from the ge-
neration of ballast and gravel) from quarry extraction through its incorporation into thermoset
and thermoplastic matrices for different applications.
• STARPORTS: project of the INNTERCONECTA programme (Canary Islands) of CDTI, which
will develop a Distributed Wireless System of monitoring, prevention and action for Coastal
Management. It consists of the development of a smart platform capable of providing detailed
information on the state of any maritime infrastructure in real time. It is also intended to deve-
lop advanced sensor networks that can be integrated within the same infrastructure and allow
significant and reliable data on the state of the infrastructure to be obtained.
• RESALTO: project financed by CDTI with the aim of researching and developing sustainable
road elements for speed reduction. Three main objectives are investigated; power generation,
safety signalling and environmental connectivity.
• BIMCHECK: innovation project approved by CDTI consisting of the implementation of a se-
cure and automated technological management environment based on BIM and Blockchain
for FCCCO’s quality processes.
• SAFETY 4D: project financed by CDTI and the objective of which is to develop an advanced
and high performance process for occupational hazard prevention in construction with the
implementation of the BIM methodology.
• BICI SENDAS: project within the 2018 CIEN programme from CDTI, the aim of which is the
development of a sustainable, energy self-sufficient, intelligent, decontaminating, integrated
and safe cycle lane.
• ONLYBIM: a Project of the IDEPA of the Principality of Asturias regional programme, the aim
of which is the development of a module for the design and execution of Non-Lineal Works
under BIM methodology
• POTAMIDES: MATINSA project and approved by CDTI whose objective is the development
of a new technologically advanced universal tool that allows the decision-making in the com-
prehensive management of the hydraulic public domain at a hydrographic basin level, with the
purpose of optimising the availability and quality of the resource guaranteeing the satisfaction
of demands.
• PIELSEN: belonging to the Challenges-Partnership programme, seeks to create a homoe-
ostatic 3D wrap-around architecture to create intelligent adaptive sensitive skin on Building
Facades.
• SAFE: project of the Challenges-Partnership programme, where the objective is the Develop-
ment of an Autonomous System for Anchoring Structures in Maritime Construction Work. This
smart system makes it possible to reduce dependence on human resources, minimise risk,
maximise efficiency and increase the safety of field manoeuvres.
• GAUDI: project approved in the call for projects in collaboration with CDTI and consisting of
the development of a Knowledge Management platform based on Artificial Intelligence algori-
thms and Content Curation techniques.
FCC Construcción participates in many European and national R&D organisations that share the
objective of coordinating the company’s role as a driving force for research, development and
technological innovation in the building area, in accordance with the proposals of the European
Union’s current H2020 programme.
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Cement
9. Other relevant information.
In 2020, Cementos Portland Valderrivas Group continued its collaboration in the European R&D
project, BIORECO2VER, in which it is a leading partner.
Share performance and other information
This project aims to obtain alternative processes for the production, on a commercial scale, of
certain chemical products (like isobutene or lactic acid) in a more sustainable way from the cap-
ture of industrial CO2 emissions.
9.1. Share Data
382
The ultimate goal is to use this industrial CO2 as a raw material and stop depending on fossil
resources for the manufacture of these products.
In 2019, Cementos Portland Valderrivas Group made its main contribution, the characterisation of
the emission gases, capturing them “in situ” and sending them to its partners, LTU and Enobraq.
Currently, part of the captured gases remain in custody at the El Alto factory in case new tests,
analysis, etc., are necessary.
Attached is a table detailing the performance of FCC’s shares during the year compared to the
previous year.
Jan. – Dec. 2020
Jan. – Dec. 2019 10.52
Closing price (€)
Change in the period
Maximum (€)
Minimum (€)
Average daily trading (nº of shares)
Average daily trading (million euro)
Capitalisation at end of period (million euro)
8.80
-16.3%
11.96
7.17
74,593
0.7
3,600
10.52
-3.4%
12.80
10.36
46,163
0.5
4,127
No. of shares circulating at closure
409,106,618
392,264,826
9.2. Dividends
The Company’s Board of Directors resolved to execute the decision adopted at FCC’s General
Shareholders’ Meeting on 2 June 2020, under item six on the Agenda, to distribute a scrip divi-
dend. On 24 June, a cash payment of 0.40 euros gross per share was made to those sharehol-
ders who requested it. On 2 July, the bonus issue of 16.841,792 shares was registered, bringing
the capital stock to 409.106,618 shares, which were listed on 10 July 2020.
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10. Definition of alternative
performance measures according
to ESMA regulations (2015/1415en)
Ebitda
We define EBITDA as earnings from continuing operations before tax, results of companies ac-
counted for using the equity method, financial result, depreciation and amortisation charges, im-
pairment, gains or losses on disposals of non-current assets, subsidies, net changes in provisions
and other non-recurring revenues and expenses. The reconciliation of EBITDA to the income
statement headings is as follows:
Operating profit/(loss)
Depreciation of fixed and non-current assets and allocation of grants
for non-financial fixed and non-current assets, and other assets
Impairment and gains/(losses) on disposal of fixed and non-current
assets
Other gains/(losses)
EBITDA
Ebit
Dec. 2020
Dec. 2019
572.7
477.3
(6.9)
4.4
1,047.5
511.6
449.1
59.8
5.3
1,025.8
This corresponds to the operating profit/(loss) in the consolidated income statement presented in
the accompanying consolidated financial statements.
Backlog
As at any given date, the backlog reflects pending production, that is, amounts under contracts or
customer orders, net of taxes on production, less any amounts under those contracts or orders
that have already been recognised as revenue. We value pending production according to the
expected number of units at current prices as at the date of calculation. We include in backlog
only amounts to which clients are obligated by a signed contract or firm order.
In the Environment area, we recognise the backlog for our waste management contracts only
when the relevant contract grants us exclusivity in the geographical area where the plant, landfill
or other facility is located.
In our Water business area, we calculate initial backlog on the basis of the same long-term volume
estimates that serve as the basis for our contracts with customers and for the tariffs set in those
contracts.
In our Construction business area, we recognise the backlog only when we have a signed con-
tract with, or a firm order from, the end customer.
Once we have included a contract in our backlog, the value of pending production under that
contract remains in backlog until fulfilled or cancelled. However, we do adjust the values of orders
in the backlog as needed to reflect price and schedule changes that are agreed with clients. For
example, after the date of calculation, a price may increase or decrease as a result of changes
in contractual production due to additional works to be performed. Due to a number of possible
factors, we could fail to realise as revenue part or all of our calculated backlog with regard to a
given contract or order. Our backlog is subject to adjustments and project cancellations and is,
therefore, an uncertain indicator of future earnings.
In the Real Estate area, the FCC Group calculates the backlog as the amount of the collection
corresponding to the sales of homes pending completion at year-end.
Net financial debt
Como deuda financiera neta se considera el total de la deuda financiera bruta (corriente y no
corriente), menos los activos financieros corrientes, la tesorería y otros activos financieros corrien-
tes. El cálculo de la deuda neta se facilita en la nota 29 de la Memoria consolidada.
The FCC Group uses backlog as an extra accounting measure in certain areas of our businesses.
We calculate the backlog for our Environment, Water and Construction business areas because
these businesses are characterised by medium- and long-term contracts. Because of its typically
short-term purchase cycle, we do not calculate backlog for our Cement business area.
Voluntary turnover rate
Ratio of voluntary departures during the year to staff. Both voluntary departures and leaves of
absence are considered to be low.
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385
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386
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387
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388
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389
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390
Fomento
de Construcciones
y Contratas, S.A.
Balance sheet at closure of the 2020 _ 391
Income statements corresponding
to the business _ 393
Statement of changes in net equity
for business _ 394
Cash flow statement for the business _ 396
Notes to the financial statements
at 2020 year-end _ 398
Management Report _ 444
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Balance sheet at closure of the 2020
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 December 2020 (in thousands of euros)
ASSETS
NON-CURRENT ASSETS
Intangible assets (Note 5)
Property, plant and equipment (Note 6)
Land and buildings
Other intangible assets
Long-term investments in Group and associates (Notes 9.a and 19.b)
Equity instruments
Loans to companies
Long-term financial investments (Note 8.a)
Deferred tax assets (Note 16)
CURRENT ASSETS
Inventories
Commercial debtors and other receivables
Trade receivables for sales and services (Note 10)
Clients, Group companies and associates (Note 19.b)
Receivables from the public administrations (Note 16)
Other loans
Short-term investments in Group and associates (Notes 9.b and 19.b)
Short-term financial investments (Note 8.b)
Cash and other cash equivalents
TOTAL ASSETS
31/12/2020
31/12/2019
3.430.846
3.320.421
11,811
18,438
2,936,096
379,683
2,126
17,419
78,620
254
7,198
30,249
3,315,779
22,950
54,670
257,961
364
98,419
149,785
1,166
8,227
3,688,807
11,870
91,005
2,775,433
283,581
10,283
33,925
66,258
2,489
34,452
102,875
3,059,014
23,161
100,919
168,096
537
112,955
42,968
1,173
10,463
3,488,517
Notes 1 to 22 and the attached annexes I to III form an integral part of the financial statements and, together with these, make up the financial statements for the 2020 business year.
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Balance sheet at closure of the 2020
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 December 2020 (in thousands of euros)
EQUITY AND LIABILITIES
EQUITY (Note 11)
Shareholders’ equity
Capital
Issued capital
Share premium
Reserves
Shares and equity interests
Accumulated losses
Profit/(loss) for the year
NON-CURRENT LIABILITIES
Long-term provisions (Note 12)
Non-current payables (Note 13)
Bank borrowings
Other financial liabilities
Long-term payables to Group and associated companies (Note 9.c)
Deferred tax liabilities (Note 16)
CURRENT LIABILITIES
Short-term provisions
Current payables (Note 13)
Debt instruments and other marketable securities
Bank borrowings
Other financial liabilities
Short-term payables to Group companies and associates (Notes 9.d and 19.b)
Trade and other payables
Suppliers
Suppliers, Group companies and associates (Note 19.b)
Other payables to public administrations (Note 16)
Other payables
TOTAL EQUITY AND LIABILITIES
31/12/2020
31/12/2019
2,084,142
2,084,142
409,107
1,673,477
2,161,520
(18,012)
(2,392,774)
250,824
985,512
137,849
40,799
806,479
385
619,153
1,623
464,343
127,631
25,556
409,107
20,000
20,799
302,300
155,228
6,815
4,713
2,736
720
17,387
1,847,777
1,847,777
392,265
1,673,477
1,949,424
(16,068)
(2,392,774)
241,453
1,080,136
182,740
88,269
806,485
2,642
560,604
1,675
342,625
188,687
27,617
392,265
61,667
26,602
300,000
25,528
17,097
4,048
3,393
1,332
18,844
3,688,807
3,488,517
Notes 1 to 22 and the attached annexes I to III form an integral part of the financial statements and, together with these, make up the financial statements for the 2020 business year.
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FCC_Annual Report_2020 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Income statements corresponding to the business
Income statements corresponding to the business
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 December 2020 (in thousands of euros)
31/12/2020
31/12/2019
CONTINUING OPERATIONS
Revenue (Note 18)
Trade receivables for sales and services
Income from interests in Group companies and associates (Note 19.a)
Financial income from marketable securities and other financial instruments in Group companies and associates (Notes 18 and 19.a)
Procurements
Other operating income
Staff expenses (Note 18)
Other operating expenses
Fixed and non-current asset amortisation and allocation of subsidies (Notes 5 and 6)
Provision surpluses (Note 12)
OPERATING PROFIT/(LOSS)
Financial income (Note 18)
Interests in equity instruments in third parties
From marketable securities and other financial instruments of third parties
Financial expenses
Payables to Group companies and associates (Note 19.a)
On payables to third parties
Interest cost relating to provisions
Change in fair value of financial instruments (Note 18)
Exchange differences
Impairment losses and gains/(losses) on disposal of financial instruments (Note 9)
FINANCIAL PROFIT/(LOSS)
PROFIT/(LOSS) BEFORE TAX
CORPORATION TAX (Note 16)
PROFIT/(LOSS) FOR THE BUSINESS YEAR FROM CONTINUING OPERATIONS
PROFIT/(LOSS) FOR THE BUSINESS YEAR
336.576
74,465
254,353
7,758
(5,689)
37,969
(33,902)
(59,056)
(8,629)
25,989
293,258
226
29
197
(34,641)
(29,319)
(4,819)
(503)
−
(4,640)
4,600
(34,455)
258,803
(7,979)
250,824
250.824
170.426
84,007
64,534
21,885
(12,168)
41,428
(32,850)
(69,590)
(13,546)
1
83,701
1,281
29
1,252
(78,755)
(31,090)
(43,371)
(4,294)
(7,067)
1,405
230,461
147,325
231,026
10,427
241,453
241.453
Notes 1 to 22 and the attached annexes I to III form an integral part of the financial statements and, together with these, make up the financial statements for the 2020 business year.
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Statement of changes in net equity for business
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 December 2020 (in thousands of euros)
A) Acknowledged income statement
Statement of profit and loss
Income and expenses recognised directly in equity
Write-offs to profit and loss statement
TOTAL RECOGNISED INCOME AND EXPENDITURE
31/12/2020
250,824
−
−
31/12/2019
241,453
−
−
250,824
241,453
Notes 1 to 22 and the attached annexes I to III form an integral part of the financial statements and, together with these, make up the financial statements for the 2020 business year.
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Statement of changes in net equity for business
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 December 2020 (in thousands of euros)
B) Statement of changes in equity
Equity as at 31 December 2018
378,826
1,673,477
1,140,784
(11,723)
(2,392,774)
831,723
6,843
524
1,627,680
Capital stock
(Note 11.a)
Share
premium
(Note 11.b)
Reserves
(Note 11.c)
Own shares
(Note 11.d)
Accumulated
losses
Profit/(loss) for
the year
Valuation
adjustments
Grants
Equity
Total recognised income and expenditure
Transactions with partners or owners
Capital increases (Notes 3 and 11)
Distribution of dividends (Note 11)
Transactions with shares or equity interests (net)
Other changes in net equity
13,439
13,439
(23,083)
(13,517)
(9,566)
831,723
(4,345)
(4,345)
241,453
(831,723)
(6,843)
(524)
Equity as at 31 December 2019
392,265
1,673,477
1,949,424
(16,068)
(2,392,774)
241,453
Total recognised income and expenditure
Transactions with partners or owners
Capital increases (Notes 3 and 11)
Distribution of dividends (Note 11)
Transactions with shares or equity interests (net)
Other changes in net equity (Note 3)
16,842
16,842
(29,357)
(16,921)
(12,436)
241,453
(1,944)
(1,944)
250,824
(241,453)
241,453
(13,989)
(78)
(9,566)
(4,345)
(7,367)
1,847,777
250,824
(14,459)
(79)
(12,436)
(1,944)
Equity as at 31 December 2020
409,107
1,673,477
2,161,520
(18,012)
(2,392,774)
250,824
2,084,142
Notes 1 to 22 and the attached annexes I to III form an integral part of the financial statements and, together with these, make up the financial statements for the 2020 business year. In particular, note 11 “Net equity”
contains further details on this statement.
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Cash flow statement for the business
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 December 2020 (in thousands of euros)
396
Profit/(loss) for the year before tax
Adjustments to profit/(loss)
Depreciation and amortisation (Notes 5 and 6)
Impairment loss allowances (Note 9)
Changes in provisions (Note 12)
Financial income (Note 18)
Financial expenses
Exchange differences
Change in fair value of financial instruments
Other income and expenses
Changes in working capital
Trade and other receivables
Trade and other payables
Miscellaneous current assets and liabilities
Other cash flows from operating activities
Interest paid
Interest and dividend collections
Corporation tax refunded/(paid) (Note 16.i)
Other collections and payments
31/12/2020
31/12/2019
258,803
(240,202)
231,026
(212,458)
8,629
(4,140)
(23,806)
(262,337)
34,642
4,640
–
2,170
2,136
(365)
1,922
(33,834)
230,470
33,031
(23,807)
13,546
(230,348)
7,688
(87,700)
78,754
(1,405)
7,067
(60)
(19,753)
15,064
(77)
(72,408)
78,830
(72,649)
(5,384)
3,693
205,860
(4,766)
(71,611)
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES
228,154
(57,809)
Notes 1 to and the attached annexes I to III form an integral part of the financial statements and, together with these, make up the financial statements for the 2020 business year.
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397
Cash flow statement for the business
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. a 31 de diciembre de 2020 (en miles de euros)
Payments due to investments
Group companies and associates (Note 9)
Intangible fixed and non-current asset and property, plant and equipment (Notes 5 and 6)
Other financial assets
Proceeds from disposals
Group companies and associates (Note 9)
Intangible fixed and non-current asset and property, plant and equipment (Notes 5 and 6)
Other financial assets
TOTAL CASH FLOWS FROM INVESTMENT ACTIVITIES
Proceeds and payments from equity instruments
Issuance of equity instruments (Note 11)
Acquisition of equity instruments (Note 11.d)
Proceeds from (payments on) financial liabilities (Note 13)
Issuance of:
Debt instruments and other marketable securities
Bank borrowings
Payables to Group and associated companies
Other payables
Repayment and amortisation of:
Debt instruments and other marketable securities
Bank borrowings
Payables to Group and associated companies
Other payables
Dividend payments (Note 11)
TOTAL CASH FLOWS FROM FINANCING ACTIVITIES
Effect of changes in exchange rates
NET INCREASE/(DECREASE) IN CASH OR CASH EQUIVALENTS
Cash and cash equivalents at the start of the period
Cash and cash equivalents at the end of the period
31/12/2020
31/12/2019
(221.003)
(141.233)
(214.749)
(6.222)
(32)
4.519
769
226
(79)
(1.944)
780.100
173.320
49.728
1
(777.800)
(85.173)
(134.956)
(4.647)
(118.114)
(22.849)
(270)
1.060.970
172
1.371
(78)
(4.345)
939.000
189.140
47.140
2
(639.000)
(1.324.136)
(117.054)
(4.410)
5.514
(215.489)
(2.023)
573
(12.436)
(13.886)
(1.015)
(2.236)
10.463
8.227
1.062.513
921.280
(4.423)
(909.318)
(9.565)
(923.306)
612
(59.223)
69.686
10.463
Notes 1 to and the attached annexes I to III form an integral part of the financial statements and, together with these, make up the financial statements for the 2020 business year.
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Notes to the financial statements at 2020 year-end
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. a 31 de diciembre de 2020 (en miles de euros)
1
2
3
4
5
6
7
8
9
Company activity
Basis of presentation of the financial statements
Distribution of profit
Recognition and measurement standards
Intangible assets
Property, plant and equipment
Leases
Current and non-current financial assets
Investments and payables to Group companies
and associates
10
Trade receivables for sales and services
11 Equity
12
Long-term provisions
13 Non-current and current payables
_ 399
_ 400
_ 402
_ 402
_ 408
_ 409
_ 411
_ 412
_ 413
_ 418
_ 418
_ 421
_ 423
14
15
Trade payables
Information on the nature and level of risk
of financial instruments
16 Deferred taxes and tax matters
17
Third party guarantees and other contingent liabilities
18 Revenue and expenses
19
Transactions and balances with related parties
20 Environmental information
21 Other information
22 Events after the reporting period
Annex I: Group companies
Annex II: Temporary joint ventures
Annex III: Associates and jointly controlled companies
_ 424
_ 424
_ 428
_ 432
_ 433
_ 434
_ 438
_ 438
_ 439
_ 440
_ 442
_ 443
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1. Company activity
Fomento de Construcciones y Contratas S.A., is a company constituted in Spain in accordance
with the Spanish Limited Liability Companies Law. It is the holding company of FCC Group, which
comprises a wide range of Spanish and foreign subsidiaries and associates performing a range
of business activities, grouped into the following areas:
– Environmental Services. Services related to the collection and processing of solid waste and
sanitation of public roads and drainage, the treatment of industrial waste, including both the
construction and operation of plants, and energy recovery from waste.
–
Integrated Water Management. Services relating to the integrated water cycle: collection,
purification and distribution of water for human consumption; wastewater collection, filtration
and purification; design, construction, operation and maintenance of water infrastructure for
municipal, industrial, agricultural services, etc.
– Construction. Specialising in infrastructure, building and related sectors: motorways, hi-
ghways, roads, tunnels, bridges, hydraulic works, ports, airports, urban developments, hou-
sing, non-residential building, lighting, industrial climate control installations, environmental
restoration, etc.
– Cement. Operation of quarries and mineral sites, the manufacturing of cement, limestone,
plaster and derivate pre-manufactured products and the production of concrete.
– Concessions. Mainly focusing on operation of contracts classified as concession arrange-
ments, particularly motorways, tunnels and a wide range of other infrastructure.
– Real Estate. Its main activity is focused on housing development and the office rental market,
both nationally and internationally.
Its registered office is at C/Balmes 36, Barcelona.
In the 2019 business year, the Company made a contribution to the subsidiary company FCC
Medio Ambiente, S.A. of essential assets (spinoff) and as part of the corporate reorganisation
within the Group of the Environmental Services activity (note 9). The beneficiary company su-
brogated the position of Fomento de Construcciones y Contratas, S.A. in relation to all of the
assets, rights, actions, obligations, holdings, responsibilities and charges relating to the spun off
assets and liabilities by universal succession. FCC Group undertook this operation to streamline
its organisational structure by organising the entire environmental services business line under
an independent entity to optimise commercial, business and financial risk management through
greater specialisation and a sharper individual focus.
The spinoff took effect for accounting purposes on 1 January 2019, and therefore the spinoff
balance sheet included in this transaction was that closed at 31 December 2018, with the net
value of the equity divested amounting to 475,291 thousand euros. There was no effect on the
consolidated financial statements of the FCC Group, since the beneficiary company is 100% ow-
ned directly and indirectly by Fomento de Construcciones y Contratas, S.A. Details of the spinoff,
including the proportional integration of the spun off joint ventures, was as follows:
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ASSETS
NON-CURRENT ASSETS
Intangible fixed and non-current asset and property, plant and equipment (Notes 5
and 6)
Non-current investments in Group companies and associates
Rest of non-current assets
CURRENT ASSETS
Commercial debtors and other receivables
Rest of current assets
TOTAL ASSETS (A)
LIABILITIES
NON-CURRENT LIABILITIES
Long-term provisions
Rest of non-current liabilities
CURRENT LIABILITIES
Current payables
Trade and other payables
Rest of current liabilities
TOTAL LIABILITIES (B)
DIVESTED NET ASSETS (A-B)
Valuation adjustments and grants received
CAPITAL INCREASE IN BENEFICIARY COMPANY
578,168
383,455
139,631
55,082
466,941
406,661
60,280
1,045,109
129,762
69,449
60,313
432,689
124,972
239,266
68,451
562,451
482,658
7,367
475,291
Subsequently, a corporate reorganisation was carried out within the environmental services area
through the incorporation of a holding company, FCC Servicios Medio Ambiente Holding, S.A.U.,
which is 100% owned by Fomento de Construcciones y Contratas, S.A., to which the holding
previously held in FCC Medio Ambiente, S.A., the company that benefited from the spinoff, was
transferred (note 9).
In the corresponding notes of these notes to the financial statements, the most significant chan-
ges in the 2019 business year related to the above will be indicated under the epigraph “Spinoff
of environmental activities”.
2. Basis of presentation
of the financial statements
These financial statements were prepared from the accounting records of Fomento de Construc-
ciones y Contratas, S.A. and of the joint ventures in which it is involved, pursuant to the Code of
Commerce, Legislative Royal Decree 1/2010, of 2 July, approving the Consolidated Spanish Limi-
ted Liability Companies Law and the amendments introduced by Law 31/2014, of 3 December,
and Royal Decree 1514/2007, which introduced the Spanish General Chart of Accounts, together
with its amendment, incorporated by Royal Decree 602/2016, of 2 December. The accounting
policies and standards contained in the regulatory amendments of Royal Decree 1159/2010,
of 17 September, and sector plans, including Order EHA/3362/2010, enacting the accounting
plan of public infrastructure concessionary companies, and all applicable obligatory standards,
resolutions and recommendations of the Spanish Accounting and Audit Institute (ICAC) have also
been included. Accordingly, these financial statements present a fair view the company’s equity,
financial position, results and cash flows in the corresponding business year.
In particular, it should be noted that as a result of the publication in 2009 by the ICAC of a con-
sultation relating to the accounting recognition of income from holding companies, “Income from
investments in Group companies and associates” and “Finance income from marketable secu-
rities and other financial instruments of Group companies and associates” are recognised under
“Revenue” in the accompanying income statement.
These financial statements, which have been prepared by the Company’s Board of Directors, will
be submitted for approval by Annual Shareholders’ Meeting, and it is deemed that they will be
approved without any modification. The 2019 financial statements were approved by the share-
holders at the Annual General Meeting held on 2 June 2020.
The financial statements are expressed in thousands of euros.
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Joint ventures and similar entities
Going concern
The balance sheets, income statements, statements of changes in equity and cash flow state-
ments of the joint ventures in which the company participates were incorporated by the propor-
tional consolidation method, based on the shareholding of each joint venture.
The joint ventures were included through adjustments to unify the accounting period and the
valuation methods, together with the reconciliations and reclassifications required and the appro-
priate eliminations, both of the asset and liability balances and of the reciprocal revenue and
expenses. In the notes to the financial statements, the corresponding amounts are broken down
when they are significant.
The balance sheet and income statement include the balance sheet aggregates at the sharehol-
ding in the joint ventures shown below:
Revenue
Operating profit/(loss)
Non-current assets
Current assets
Non-current liabilities
Current liabilities
2020
53
11
28
2,939
2
2,946
2019
1,864
68
29
2,915
2
2,869
The joint ventures and shareholdings are listed in Annex II.
Grouping of epigraphs
Certain balance sheet, income statement and cash flow statement epigraphs have been grouped
together so that they may be more easily understood; in any event, all significant information is
broken down separately in the corresponding notes to the financial statements.
At 31 December 2020, the Company has a negative working capital of 361,192 thousand euros,
mainly as a result of the following debts: (i) with its subsidiary companies (127,631 thousand eu-
ros), (ii) from the issue of a Euro Commercial Paper Programme (ECP) on the Irish stock exchange
(Euronext Dublin) for 302,300 thousand euros and (iii) relating to bank financing (credit facilities
and others) of the Company (155,228 thousand euros). Despite this, the directors of Fomento
de Construcciones y Contratas, S.A. prepare these financial statements on a going concern
basis as there are no doubts as to the ability of the Group of companies, of which the Company
is the parent, to continue to generate funds from its operations (consolidated operating profit of
572,740 thousand euros and cash position of 1,222,109 thousand euros). This is in addition to
the ability to finance itself in the event of working capital requirements, as the promissory note
issue programme (ECP) was extended to 600,000 thousand euros in March 2019, of which
only the aforementioned 302,300 thousand euros have been drawn. This is further bolstered by
the confidence deriving from the renewal of bank credit facilities granted amounting to 537,500
thousand euros, of which only 114,054 thousand euros had been drawn as at 31 December. The
company also has the capital and financial support of its equity holders.
Consolidated financial statements
Fomento de Construcciones y Contratas, S.A. is the head of a group of companies forming FCC
Group, so its directors are obliged to prepare separate consolidated financial statements. These
consolidated financial statements were prepared in accordance with International Financial Re-
porting Standards (IFRS-EU), as set forth in Regulation (EC) No. 1606/2002 of the European Par-
liament and of the Council of 19 July 2002 and all enacting provisions and interpretations. These
2020 consolidated financial statements of FCC Group, which have been prepared by its directors,
will likewise be submitted for approval at the General Shareholders’ Meeting.
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The consolidated financial statements of Fomento de Construcciones y Contratas, S.A., prepa-
red in accordance with International Financial Reporting Standards (IFRS) show a total volume of
assets amounting to 12,835 million euros (12,574 million euros at 31 December 2019) and net
equity attributable to the company’s shareholders of 2,288 million euros (1,951 million euros at 31
December 2019). Likewise, consolidated sales amount to 6,158 million euros (6,276 million euros
at 31 December 2019). Lastly, attributable consolidated profit was 262 million euros (267 million
euros at 31 December 2019).
4. Recognition and measurement standards
The main recognition and measurement bases used by the company in the preparation of the
2020 financial statements, in accordance with the Spanish General Chart of Accounts, were as
follows:
Restatements
a) Intangible assets
No restatements were made in the current financial statements.
a.1) Concession arrangements
3. Distribution of profit
The Board of Directors of Fomento de Construcciones y Contratas, S.A. decided to make the
mandatory allocation of profit to the legal reserve in the amount of 3,368 thousand euros, alloca-
ting the remaining profit for 2020 of 247,456 thousand euros to retained earnings; accordingly, it
was not proposed to distribute or apply this profit to any other account.
In the 2019 business year, the Company made a profit of 241,453 thousand euros, broken down
as follows: 2,688 thousand euros to the legal reserve and 238,765 thousand euros to voluntary
reserves. After the preparation of these financial statement, the Ordinary General Shareholders’
Meeting approved the distribution of a scrip dividend with an impact on voluntary reserves of
29,357 thousand euros (note 11).
Concession arrangements are recognised pursuant to Order EHA/3362/2010, approving the ru-
les for adapting the Spanish General Chart of Accounts to public infrastructure concessionary
companies.
The Company has assets classified as concession agreements corresponding to assets from
contracts operated jointly through temporary joint ventures, all of which are intangible assets
under the intangible asset model, given that the demand risk is assumed by the concessionary
company and this company does not have an unconditional entitlement to receive anything from
the granting authority.
a.2) Other intangible assets
The remaining intangible assets, basically software applications, are recognised at their acquisi-
tion or production cost And, subsequently, at cost less any accumulated amortisation and any
accumulated impairment losses. At year-end, no signs of losses in value were identified in any of
the company’s intangible assets related with this epigraph.
Maintenance costs are recognised in the income statement for the period in which they are in-
curred.
Generally, intangible assets are amortised over their useful lives on a straight-line basis.
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b) Property, plant and equipment
c) Impairment of intangible assets and property, plant and equipment
Items of property, plant and equipment are measured initially at acquisition or production cost
when the company has performed in-house work on its non-current assets, and are subsequently
carried net of accumulated depreciation and any impairment losses. Upkeep and maintenance
costs relating to property, plant and equipment are taken to the income statement in the business
year in which they are incurred. However, the costs of improvements leading to increased capaci-
ty or efficiency or to a lengthening of the useful lives of the assets are capitalised.
For property, plant and equipment that necessarily takes a period of more than twelve months to
get ready for their intended use, the capitalised costs include such borrowing costs as might have
been incurred before the assets are ready for their intended use and which have been charged
by the supplier or relate to loans or other specific-purpose or general purpose borrowings directly
attributable to the acquisition or manufacturing of the assets.
The company’s in-house work on property, plant and equipment is recorded at the accumulated
cost resulting from external costs, in-house costs determined on the basis of the in-house con-
sumption of materials, direct labour costs and general manufacturing overheads.
All of the company’s intangible assets and property, plant and equipment have a finite useful life
and it therefore performs impairment tests to estimate the possible existence of losses that cause
their recoverable amount to fall below their carrying amount.
Recoverable amount is determined as the greater of fair value less costs to sell and value in use.
To calculate the recoverable amount of assets subject to impairment tests, the present value of
the net cash flows originating from the associated cash-generating units (CGUs) is estimated, and
a pre-tax discount rate is used to discount cash flows; this discount rate includes the current mar-
ket assessments of the time value of money and the risks specific to each cash-generating unit.
Where an impairment loss on the assets is subsequently reversed, the carrying amount of the
asset or cash-generating unit is increased to the revised estimate of its recoverable amount, up to
the limit of the carrying amount that would have been determined had no impairment loss been
recognised in prior business years. The reversal of an impairment loss is recognised as income in
the income statement.
The company depreciates essentially all of its property, plant and equipment on a straight-line
basis, using annual rates based on the years of estimated useful life of the assets, as follows:
d) Leases
Buildings and other constructions
Technical installations and machinery
Other installations, tools and furniture
Other property, plant and equipment
Years of estimated useful life
25 – 50
5 – 15
8 – 12
4 – 10
Leases are classified as finance leases whenever the terms of the lease transfer substantially all of
the risks and rewards incidental to ownership of the leased asset to the lessee. Other leases are
classified as operating leases.
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d.1) Finance leases
e) Financial instruments
Fomento de Construcciones y Contratas, S.A., has finance lease contracts for cleaning and was-
te collection contracts in the USA. With regard to these contracts that could not be transferred in
the spinoff carried out in 2019 (note 1), a negotiation process was initiated with the various awar-
ding administrations to change the ownership of the contracts to the various American 100%-ow-
ned subsidiary companies of the FCC Group. At year-end almost all of these contracts had been
transferred and with them all the associated assets and liabilities. However, in some cases it has
not been possible to transfer the lease debt. In these cases, sublease agreements have been
signed between the Company and the subsidiary companies so that these companies bear the
actual payment for the assets. For this reason, in the balance sheet of Fomento de Construc-
ciones y Contratas, S.A., the debt with the company that owns the assets under finance leases
appears, together with a credit with the corresponding American subsidiary company to which
the actual assets have been subleased under the lease agreement, which are recognised in the
balance sheet of the subsidiary company that receives the profits and assumes the risks deriving
from their use.
d.2) Operating leases
e.1) Financial assets
Classification
The financial assets held by the Company are classified in the following categories:
– Loans and receivables: Loans and receivables: financial assets arising on the sale of goods or
the rendering of services in the course of the company’s trade operations, or financial assets
that are neither equity instruments nor derivatives, not arising on trade transactions, with fixed
or determinable payments, and which are not traded in an active market.
– Equity investments in Group companies, associates and jointly controlled companies: Group
companies are deemed to be those related to the company as a result of a control relationship
and associates are companies over which the company exercises significant influence. Jointly
controlled entities include companies over which joint control is exercised with one or more
partners through an agreement.
When the company acts as lessee, it recognises the expenses from operating leases in profit or
loss in the business year in which they accrue.
– Financial assets available for sale: debt securities and equity instruments of other companies
that are not classified in any of the previous categories.
When the company acts as lessor, revenue and expenses from operating leases are recognised in
profit or loss in the year in which they accrue. The acquisition cost of the leased asset is presented
in the balance sheet in accordance with the nature of the asset, increased by the amount of the in-
vestments arising from the directly attributable lease arrangements, which are expensed over the
term of such arrangements, using the same method as applied for recognition of lease income.
Any collection or payment that may arise when an operating lease is concluded is treated as a
collection or prepayment that is allocated to profit or loss over the leasing term as the benefits of
the leased asset are transferred or received.
Initial recognition
Financial assets are initially recognised at the fair value of consideration given, plus the directly
attributable transaction costs, except in the case of assets held for trading and investments in
Group companies granting control, the costs of which are taken directly to the income statement.
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Subsequent measurement
– Loans and accounts receivable are measured at their amortised cost.
–
Investments in Group companies, associates and jointly controlled companies are measured
at cost, deducting any accumulated impairment losses. The impairment loss is measured as
the difference between the carrying amount and the recoverable amount. The recoverable
amount is the higher of fair value less costs to sell and the present value of the future cash
flows from the investment. The investee’s equity is taken into consideration, consolidated
where appropriate, corrected for any unrealised gains at the measurement date, including any
goodwill, unless better evidence of the recoverable amount of the investment is available.
– Available-for-sale financial assets are measured at fair value. Fair value net gains and losses
are recognised in equity until the asset is disposed of, at which point the cumulative gains or
losses previously recognised in equity are taken to the income statement, or until it is deter-
mined that they have become impaired, in which case, once the pre-existing profit previously
recognised in equity has been written off, such assets are taken to profit or loss.
At least at the end of each reporting period, the company books the related impairment loss
allowances for financial assets that are not carried at fair value when there is objective evidence of
impairment if this value is lower than its carrying amount, in which case, the impairment is recog-
nised in the income statement. In particular, the company calculates impairment loss allowances
for trade and other receivables by carrying out a case-by-case analysis of the insolvency risk of
each account receivable.
Borrowing costs are recognised on an accrual basis in the income statement using the effective
interest method and are added to the amount of the instrument to the extent that they are not
settled in the year in which they arise.
Bank borrowings and other current and non-current financial liabilities maturing within no more
than twelve months from the balance sheet date are classified as current liabilities and those ma-
turing within more than twelve months as non-current liabilities.
The Company derecognises financial liabilities when the obligations giving rise to them are extin-
guished.
e.3) Equity instruments
An equity instrument represents a residual interest in the company’s equity after deducting all
of its liabilities from its assets, and the securities issued are recognised in equity at the amount
received, after deducting the issue charges, net of taxes.
Own shares acquired by the company during the business year are recognised at the value of the
consideration paid and are deducted directly from equity. Any gains or losses on the purchase,
sale, issue or redemption of own equity instruments are recognised directly in equity and never in
the income statement.
f) Inventories
The Company derecognises financial assets when the rights to the cash flows from the financial
asset expire or have been transferred and substantially all the risks and rewards of ownership
have been transferred.
Inventories are stated at the lower of acquisition or production cost or net realisable value. Trade
discounts, rebates, other similar items and interest included in the nominal amount for the paya-
bles are deducted when determining the acquisition cost.
e.2) Financial liabilities
Financial liabilities are those payables and accounts payable that the Company has and that have
resulted from the purchase of goods and services as a result of the Company’s trade transactions,
or those that, without having a commercial origin, cannot be considered as financial instruments.
Production cost includes the costs of direct materials and, where applicable, direct labour costs
and manufacturing overheads incurred.
Net realisable value represents the estimated selling price less all estimated costs of completion
and the costs to be incurred in the marketing, sale and distribution of the product.
Accounts payable are initially measured at the fair value of the consideration received. These
financial liabilities are subsequently measured at amortised cost.
The Company posts impairment allowances, recognising an expense in the income statement
when the purchase price or production cost of inventories exceeds the net realisable value.
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g) Foreign currency transactions
i) Revenue and expenses
The Company’s functional currency is the euro. Consequently, transactions in other currencies
are considered to be denominated in foreign currency and are translated at the exchange rates
prevailing at the transaction date.
Income and expenses are allocated on an accrual basis, i.e. when the actual flow of goods and
services they represent takes place, regardless of when the resulting monetary or financial flow oc-
curs. Revenue is measured at the fair value of the consideration received, less discounts and tax.
At each reporting date, monetary assets and liabilities denominated in foreign currencies are
translated to euros at the closing exchange rate. Obvious profits or losses are directly recorded in
the profit and loss account the business year they occur.
h) Corporation tax
The expense for corporation tax is calculated on the basis of profit before tax, increased or de-
creased, as appropriate, by the permanent differences between taxable profit and accounting
profit. The corresponding tax rate based on the applicable legislation is applied to this adjusted
accounting profit. The tax relief and tax credits earned in the year are deducted and the positive or
negative differences between the estimated tax charge calculated for the prior year’s accounting
close and the subsequent tax settlement at the payment date are added to or deducted from the
resulting tax charge.
The temporary differences between accounting profit and taxable profit for corporate income tax
purposes, together with the differences between the carrying amounts of assets and liabilities re-
cognised in the balance sheet and their tax bases, give rise to deferred taxes that are recognised
as non-current assets and liabilities. These amounts are measured at the tax rates that are expec-
ted to apply in the business years in which they will foreseeably be reversed, without performing
financial discounting at any time.
The company capitalises deferred tax assets corresponding to temporary differences and tax
losses pending offset, except in cases in which reasonable doubts exist regarding their future
recovery or such recovery extends over a period exceeding ten years.
Interest received on financial assets is recognised using the effective interest method, while divi-
dends are recognised when the shareholder’s right to receive payment has been established. In
any case, interest and dividends on financial assets accrued subsequent to acquisition are recor-
ded as income in the profit and loss account.
In keeping with the accounting principle of prudence, the company only recognises realised in-
come at year-end, whereas foreseeable contingencies and losses, including possible losses, are
booked as soon as they become known, through the posting of the appropriate provisions.
j) Provisions and contingencies
The company recognises provisions on the liability side of the accompanying balance sheet for
present obligations arising from past events for which the company considers it probable that
there will be an outflow of funds to settle them on maturity
These provisions are recognised when the related obligation arises and the amount recognised
is the best estimate, at the date of the accompanying financial statements, of the present value
of the future expenditure required to settle the obligation. The change in the year relating to the
discount to present value has an impact on financial profit/(loss).
Provisions are classified as current or non-current in the accompanying balance sheet on the ba-
sis of the estimated maturity date of the obligation covered by them, and non-current provisions
are considered to be those whose estimated maturity date exceeds the average cycle of the
activity giving rise to the provision.
Contingent liabilities resulting from possible obligations that might arise from past events, whose
existence will be confirmed only by the occurrence or non-occurrence of one or more future
events not wholly within the control of the company are not recognised in the financial statements,
as the probability that such obligation will have to be met is remote.
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k) Capital assets of an environmental nature
m) Use of estimates
As indicated in Note 1, following the spinoff of its environmental activities in the 2019 business
year, the company is now practically a holding company and the parent company of the FCC
Group. It therefore has hardly any assets of an environmental nature on its balance sheet.
In the preparation of these financial statements, estimates were made by the company’s directors
to measure certain of the assets, liabilities, income, expenses and obligations reported herein.
These estimates relate basically to the following:
l) Pension and similar obligations
The Company has not established any pension plans to supplement the social security pension
plans. Under the Consolidated Pension Plans and Pension Funds Law, in those specific cases
in which similar obligations exist, the company outsources its commitments to its employees in
this area.
The company has taken out insurance to cover death, permanent employment disability, reti-
rement bonuses and pensions and other concepts for some executive directors and company
officers. Specifically, the contingencies giving rise to compensation are those involving the termi-
nation of the employment relationship for any of the following reasons:
– The recoverability of deferred tax assets (notes 4.h and 16).
– The recoverability of investments in Group companies and associates, and loans and receiva-
bles with these, as well as financial assets with third parties (notes 4.e, 8 and 9).
– The measurement of possible impairment losses on certain assets (notes 4.c, 5 and 6).
– The useful life of property, plant and equipment and intangible assets (notes 4.a and 4.b).
– The calculation of certain provisions (notes 4.j and 12).
Although these estimates were drawn up on the basis of the best information available as at 31
December 2020, future events may require adjustments in coming years, where appropriate to
be made in advance.
– Unilateral decision of the company.
– Dissolution or disappearance of the Parent company for any reason, including mergers or
n) Related-party transactions
disposals.
– Death or permanent disability.
– Other causes of physical or legal incapacitation.
– Substantial modification of professional conditions.
The company carries out all transactions with related parties at arm’s length.
Note 19 “Related party transactions and balances” to these financial statements details the main
transactions with the company’s significant shareholders, its directors and senior executives, and
between Group companies or entities.
– Termination after reaching the age of 60, at the request of the officer and in agreement with
the company.
ñ) Cash flow statement
– Termination after reaching the age of 65 at the officer’s sole discretion.
The following terms are used in the statement of cash flows with the meanings specified:
Contributions made by the company are recognised under “Staff expenses” in the income sta-
tement.
– Cash flows: cash entries and withdrawals and their equivalents.
– Cash flows from operating activities: payments and collections from the company’s principal
revenue-producing activities and other activities that are not classified as investing or financing
activities.
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– Cash flows used in investing activities: payments and collections resulting from purchases and
divestments of non-current assets.
– Cash flows from financing activities: payments and collections from the placement and settle-
ment of financial liabilities, equity instruments and dividends.
5.
Intangible assets
Changes in this epigraph in the accompanying balance sheet in the 2020 and 2019 business
years were as follows:
Concession
agreements
Software
applications
Other
intangible
assets
Accumulated
amortisation
Total
Balance at 31/12/18
137,375
49,772
37,850
(117,655)
107,342
—
—
3,973
(733)
1,189
—
(3,937)
733
1,225
—
(137,322)
(3,309)
(36,690)
79,017
(98,304)
Receipts or endowments
Release, removals and
transfers
"Divestment of
environmental activities"
(Note 1)
Transfers (Note 6)
Balance at 31.12.19
24,113
24,166
97
—
(21)
49,800
2,349
(41,863)
24,189
34,452
(1,213)
(26,041)
Receipts or endowments
—
Release, removals and
transfers
(24,113)
1,875
(160)
(168)
(2,170)
(2,920)
402
Balance at 31.12.20
53
51,515
11
(44,381)
7,198
The epigraph “Concession agreements” included the assets related to the waste collection busi-
ness in Houston (USA) amounting to 24,096 thousand euros. The contract associated with this
asset has been assigned, with the consent of the assigning body, to the subsidiary company
FCC Environmental Services Texas LLC (note 6) in 2020, which has been subrogated to the
rights and obligations under it. Subsequently, Fomento de Construcciones y Contratas, S.A. and
the aforementioned company agreed to purchase and sell the assets linked to the contract. This
transaction has not generated any capital gains in the income statement.
The balance for “Software applications” relates mainly to implementation, development and im-
provement costs for the corporate information system, and costs related to information techno-
logy infrastructure.
The detail of intangible assets and of the related accumulated amortisation at 31 December 2020
and 2019 is as follows:
2020
Concession agreements
Software applications
Other intangible fixed and non-current
assets
2019
Concession agreements
Software applications
Other intangible fixed and non-current
assets
Cost
53
51,515
11
Accumulated
amortisation
(26)
(44,344)
(11)
Net
27
7,171
—
51,579
(44,381)
7,198
24,166
49,800
2,349
(24)
(41,526)
(313)
24,142
8,274
2,036
76,315
(41,863)
34,452
With regard to net intangible assets, only 28 thousand euros (29 thousand euros at 31 December
2019) relate to assets arising from arrangements operated jointly through joint ventures.
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All intangible assets at year-end were used in production processes; however, some such intan-
gible assets, basically software applications, had been fully amortised, in the amount of 39,431
thousand euros (31,464 thousand euros at 31 December 2019). The amount corresponding to
joint ventures was insignificant.
At 31 December 2020, the company did not own any significant intangible assets pledged as
security or purchase commitments of a significant amount.
6. Property, plant and equipment
Changes in this epigraph in the accompanying balance sheet in the 2020 and 2019 business
years were as follows:
Other intangible assets
Land and buildings
Technical
installations and
other PP&E
Advance payments
and PP&E under
construction
Accumulated
amortisation
Impairment
Total
Balance at 31/12/18
101,595
1,007,273
Receipts or endowments
Release, removals and transfers
"Divestment of environmental activities" (Note 1)
Transfers (Note 5)
Balance at 31.12.19
Receipts or endowments
Release, removals and transfers
Transfers
Balance at 31.12.20
57
—
(81,351)
(2,397)
17,904
206
(267)
—
17,843
38,093
(11,799)
(908,620)
(4,453)
120,494
12,652
(100,815)
2,070
34,401
22,300
2,883
—
(7,816)
(17,367)
—
2,203
—
(2,070)
133
(744,563)
(5,145)
(10,102)
11,651
712,579
—
(30,435)
(5,733)
19,128
—
(17,040)
—
—
57
—
(5,088)
—
—
—
(5,088)
381,460
30,931
(148)
(285,151)
(24,217)
102,875
9,328
(81,954)
—
30,249
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In the spinoff process carried out in 2019 (note 1), there were a number of cleaning and waste
collection contracts in the USA that could not be transferred. With regard to these contracts,
a negotiation process was initiated with the various awarding authorities to obtain a change of
ownership of the contracts to various American subsidiary companies of the FCC Group. In the
2020 business year, almost all of these authorisations have been obtained and, as a result, the
Company and the aforementioned subsidiary companies have agreed to purchase and sell the
assets linked to the contracts, and these transactions have not generated any capital gains in
the income statement. This accounted for the major part of the write-off of fixed and non-current
assets in the 2020 business year for a net amount of 81,954 thousand euros. With regard to the
2019 business year, the additions of 37,708 thousand euros relating to the aforementioned con-
tracts in the USA are worth mentioning.
The detail of property, plant and equipment and of the related accumulated depreciation at 31
December 2020 and 2019 is as follows:
Cost
Accumulated
amortisation
Impairment
Net
The company owns buildings, whose value separated from the net depreciation of said buildings
and the value of land, at year-end, was as follows:
Land
Buildings
2020
10,500
1,311
11,811
2019
10,293
1,577
11,870
At the end of the 2020 and 2019 business years there are no significant assets from contracts
operated jointly through joint ventures.
In the 2020 and 2019 business years, the company had not capitalised any finance costs under
“Property, plant and equipment”. It did not have any significant commitments to acquire property,
plant and equipment. It also has no assets subject to significant ownership restrictions.
Most of the items of property, plant and equipment, at the closing date, are used in the various
production processes. Part of said property, plant and equipment, however is fully depreciated,
amounting to 2,677 thousand euros (1,569 thousand euros at 31 December 2019).
17,843
34,401
133
(944)
(5,088)
(16,096)
—
—
—
11,811
18,305
133
The Company takes out insurance policies to cover the possible risks to which its property, plant
and equipment are subject. At year-end, all items of property, plant and equipment had been fully
insured against these risks.
52,377
(17,040)
(5,088)
30,249
2020
Land and buildings
Technical installations and other PP&E
Advance payments and PP&E under
construction
2019
Land and buildings
17,904
(946)
(5,088)
Technical installations and other PP&E
120,494
(29,489)
—
11,870
91,005
138,398
(30,435)
(5,088)
102,875
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7. Leases
a) Finance leases
As explained in note 4.d.1, the company has transferred the finance leases signed with com-
panies engaged in this activity, which could not be transferred to the aforementioned subsidiary
companies, to American subsidiary companies of the FCC Group through sublease contracts.
The debt with the company owning the leased assets, recognised under “Other non-current
and current financial liabilities”, is associated with receivables from the aforementioned subsidiary
companies and the actual leasing assets assigned to the contract are recognised in the subsidiary
company’s balance sheet. Note 13.b provides information on the balance and maturity of finance
lease payables.
b) Operating lease
The amount recognised in the 2020 business year for operating lease expenses totalled 11,068
thousand euros (12,064 thousand euros at 31 December 2019).
Noteworthy among the operating lease arrangements signed by Fomento de Construcciones y
Contratas, S.A., due to their size, were those relating to FCC Group’s corporate headquarters:
– Office building in Las Tablas, Madrid.
On 19 December 2010, the owner and the company signed a lease agreement on this buil-
ding, with the rental arrangement beginning, once the building had been completed, on 23
November 2012. This arrangement has an 18-year term, extendable at the company’s discre-
tion by two periods of five years each, with annual rent adjusted annually in line with the CPI.
On 21 September 2018, a non-extinguishing modifying Addendum to the original agreement
was signed with the new owner, “Las Tablas 40 Madrid, S.L.U.”. The modified terms and con-
ditions mainly lead to a 5.6% reduction in rent and the possibility of sub-letting to third parties
without the consent of the owner, provided that certain requirements are met.
– Office buildings at Federico Salmón 13, Madrid and Balmes 36, Barcelona.
On 29 December 2011, the owners of these buildings and Fomento de Construcciones y
Contratas, S.A. had signed two lease agreements for them, for a minimum committed period
of 30 years, extendable, at the company’s discretion, by two periods of five years each, with
initial annual rent adjustable in line with the CPI. These buildings were transferred by the com-
pany to their current owner through a sale and leaseback arrangement. The owners, in turn,
granted a purchase option to Fomento de Construcciones y Contratas, S.A., which can only
be exercised at the end of the lease period, at fair value or at the amount of the sale adjusted
by the CPI, if this is higher.
On 1 June 2016, the company ceded its contractual position to Fedemes, S.L., wholly owned
by it, which signed sub-lease agreements with the FCC Group companies that occupied the
buildings, including Fomento de Construcciones y Contratas, S.A., with the same duration
conditions as the original arrangement as indicated previously.
At year-end, there were non-cancellable future payment commitments amounting to 148,037
thousand euros (159,411 thousand euros in 2019). Details, by maturity, of the non-cancellable
future minimum payments at 31 December 2020 and 2019 were as follows:
Up to one year
Between one and five years
After five years
2020
10,413
40,494
97,130
148,037
2019
10,835
41,901
106,675
159,411
As the lessor, when it is the holder of the lease arrangements, the company invoices FCC Group
investees based on the use they make of such arrangements, recognising such revenue as
operating income.
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8. Current and non-current financial assets
Loans and receivables
The breakdown, by maturity, of loans and receivables is as follows:
a) Long-term financial investments
2022
2023
2024
2025
2026 and
beyond
Total
The balance of “Non-current financial assets” at 2020 and 2019 year-end is as follows:
Loans and receivables
11
—
—
—
22,828
22,839
2020
Loans and receivables
Available-for-sale assets
2019
Loans and receivables
Available-for-sale assets
Equity
instruments
Loans to third
parties
Other financial
assets
Total
—
111
111
—
117
117
1,488
—
1,488
1,488
—
1,488
21,351
—
21,351
21,556
—
21,556
22,839
111
22,950
23,044
117
23,161
The most significant amount recognised under “Loans and receivables” was the 17,555 thousand
euro escrow deposit in relation to the sale of Global Vía Infraestructuras, S.A., formalised in the
2016 business year, the maturity of which was “2026 and beyond” in view of its indeterminate na-
ture, since it was tied to the release of the collateral provided by the aforementioned company to
third parties to meet financial commitments. This heading also includes guarantees and deposits
for legal or contractual obligations in the development of the company’s activities.
Available-for-sale assets
Virtually all of this corresponds to a 15.71% holding in the company Port Torredembarra S.A. for
a value of 110 thousand euros (116 thousand euros at 31 December 2019).
b) Short-term financial investments
The amount shown under this epigraph corresponds to guarantees and deposits for legal or
contractual obligations.
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9.
Investments and payables to
Group companies and associates
a) Non-current investments in Group companies and associates
The detail of the non-current investments in Group companies and associates at 31 December
2020 and 2019 is as follows:
2020
Equity instruments in Group companies
4,129,025
(1,214,136)
2,914,889
Cost
Accumulated
impairment
Total
Equity instruments of associates
Loans to Group companies
Loans to associates
2019
261,834
416,868
24
(240,627)
21,207
(37,209)
379,659
—
24
4,807,751
(1,491,972)
3,315,779
Equity instruments in Group companies
3,715,699
(1,220,103)
2,495,596
Equity instruments of associates
Loans to Group companies
Loans to associates
519,851
320,411
27
(240,014)
(36,857)
—
279,837
283,554
27
4,555,988
(1,496,974)
3,059,014
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Details of changes in these epigraphs is as follows:
Equity instruments of
Group companies
Equity instruments
of associates
Loans to Group
companies
Loans to associates
Impairment
Total
Saldo a 31.12.18
Receipts or endowments
Disposals and reversals
“Divestment of environmental activities” (Note 1)
Transfers
Balance at 31.12.19
Receipts or endowments
Disposals and reversals
Transfers
Balance at 31.12.20
5,221,459
739,260
(2,283,029)
(61,991)
100,000
3,715,699
135,126
—
278,200
4,129,025
539,805
—
—
(19,954)
—
519,851
20,183
—
(278,200)
261,834
552,112
1,337,058
(1,386,792)
(81,967)
(100,000)
320,411
96,457
—
—
416,868
841
28
—
(842)
—
27
—
(3)
—
24
(3,053,003)
(45,787)
1,576,693
25,123
—
(1,496,974)
(66,631)
71,633
—
3,261,214
2,030,559
(2,093,128)
(139,631)
—
3,059,014
463,335
(206,570)
—
(1,491,972)
3,315,779
Spinoff of environmental activities
In the 2019 business year, the changes in equity instruments, loans to companies and impairment
were particularly significant, derived from the corporate reorganisation in the environmental servi-
ces area (note 1) and detailed below:
– Subscription of new shares in FCC Medio Ambiente, S.A. for a value of 475,291 thousand
euros in consideration for the spinoff of the environmental services activity.
– Sale to FCC Servicios Medio Ambiente Holding, S.A.U. of 99.99% of FCC Medio Ambiente,
S.A. for an amount of 510,393 thousand euros, generating a credit right.
– Assignment to FCC Servicios Medio Ambiente Holding, S.A.U. of the debtor position in the
loan of 136,606 thousand euros held by the company with FCC Medio Ambiente, S.A.
– Contribution of 14,530 thousand euros to FCC Servicios Medio Ambiente Holding, S.A.U.. to
offset losses.
– As a result of the capitalisation of part of the credits generated in the operations indicated in
the previous points, the Company subscribed new shares in FCC Servicios Medio Ambiente
Holding, S.A.U. for a value of 200,571 thousand euros (115,101 thousand euros and 85,470
thousand euros corresponding to the sale and assignment of credits to FCC Servicios Medio
Ambiente Holding, S.A.U., respectively), by capitalisation through the offseting of credits.
– Sale to FCC Servicios Medio Ambiente Holding, S.A.U. of 94.48% and to International Ser-
vices Inc., S.A. of 5.5% of FCC Austria Abfall Service AG for 219,034 and 12,751 thousand
euros respectively, generating credit rights for Fomento de Construcciones y Contratas, S.A.
with the purchasing companies. The company’s credit right for the company International Ser-
vices Inc. SA, together with a loan for 5,000 thousand euros extended to FCC Austria Abfall
Service AG was subsequently assigned to FCC Servicios Medio Ambiente Holding, S.A.U.
– Assignment to FCC Servicios Medio Ambiente Holding, S.A.U. of the debtor position in the
8,000 thousand euro principal loan between the company and FCC Environment CEE Gmbh
(the lender). The amount assigned was 8,999 thousand euros, including accrued and unpaid
interest.
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– Sale to FCC Medio Ambiente Reino Unido, S.L.U. of 100% of the companies FCC PFI Hol-
dings Limited, Enviropower Investments Limited, Azincourt Investment, S.L.U., for a total pri-
ce of 245,576 thousand euros, generating a credit right for the Company.
– Assignment to FCC Medio Ambiente UK, S.L.U. of credit rights totalling 333,735 thousand
euros with the companies FCC PFI Holdings Limited, Azincourt Investment, S.L.U., FCC Re-
cycling (UK) Limited, FCC Lostock Holdings Limited and Enviropower Investments Limited.
– Assignment to FCC Servicios Medio Ambiente Holding, S.A.U. of a credit right for the amount
of 579,311 thousand euros in relation to FCC Medio Ambiente UK, S.L.U., arising from the
sale of shares and assignments of credits detailed in the previous two points.
– Assignment to FCC Servicios Medio Ambiente Holding, S.A.U. of a credit right amounting to
44,646 thousand euros in relation to FCC Ámbito, S.A.U.
– Granting of a 275,376 thousand euro subordinated loan to FCC Servicios Medio Ambiente
Holding, S.A.U.
– Contribution to strengthen the equity of FC y C, S.L.U. and FCC Construcción, S.A. of 98,914
and 24,024 thousand euros, respectively.
With regard to the 2019 business year, in addition to the reorganisation operations in the en-
vironmental services area described above, the following significant changes took place:
– Subscription of shares in the capital increase by Cementos Portland Valderrivas, S.A., as
compensation for the 100,000 thousand euro subordinated loan granted by the company.
– Acquisition of shares in FC y C, S.L. (Unipersonal) belonging to FCC Construcción, S.A. for
the amount of 48,780 thousand euros.
Details by company of the “Investments in Group companies and associates” headings are pre-
sented in Annexes I and III, respectively, indicating the following details for each company in which
direct ownership interests are held: name, registered office, activity, share of capital directly or
indirectly owned, amount of equity (capital, reserves and others), profit or loss, dividends received
and whether the company is listed on the stock market, together with its carrying amount.
– Repayment of the 1,020,000 thousand euro debt that FCC Servicios Medio Ambiente Hol-
ding, S.A.U. had to the company (excluding the subordinated loan mentioned in the previous
point), which originated mainly from the corporate restructuring operations mentioned in the
previous points. This was repaid with funds from the issuance of two bonds by FCC Servicios
Medio Ambiente Holding, S.A.U. for a total amount of 1,100,000 thousand euros (Note 13.b).
Equity instruments of associates
The following significant changes occurred in the 2020 business year
–
Increase of the holding in Realia Business, S.A. (from 34.40% to 36.98%) as a result of the
following acquisitions from other FCC Group companies:
Equity instruments in Group companiesupo
• 2.22% owned by Asesoría Financiera y de Gestión, S.L.U. for 17,024 thousand euros.
The following significant changes occurred in the 2020 business year:
• 0.36% owned by Per Gestora, SLU for 2,776 thousand euros.
– Purchase from Per Gestora, S.L.U., 100% owned, of:
• 56.16% of Asesoría Financiera y de Gestión, S.A. for 11,002 thousand euros, thereby rea-
ching a 100% holding.
• 7.33% of Fedemes, S.L. for 1,018 thousand euros, which also represents a 100% holding.
– Subscription of the capital increase of FC y C, S.L.U. by means of a non-monetary contri-
bution consisting of a 36.98% holding in the capital stock of the associated company Realia
Business, S.A., valued in the balance sheet at 278,200 thousand euros.
– Derecognition of the entire backlog of Realia Business, S.A., representing 36.98% of its capi-
tal stock, contributed to the capital increase of the 100% owned subsidiary company FC y C,
S.L.U., as mentioned in the previous point.
– Purchase of 50% of Sigenera S.L. from Per Gestora, S.L.U. Sole-shareholder company for
377 thousand euros.
The changes in 2019 corresponds to the spinoff of activity (Note 1).
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Long-term loans to Group companies
The most significant balances were as follows:
FCC Servicios Medio Ambiente Holding S.A.U.
FCC Versia, S.A.U
FCC Environmental Services Florida, LLC
Rest
GROSS TOTAL
Impairment:
FCC Versia, S.A.U.
NET TOTAL
2020
352,619
45,000
19,107
142
2019
275,376
45,000
—
35
416,868
320,411
(37,209)
379,659
(36,857)
283,554
The following are noteworthy with regard to the balance at 31 December 2020:
– Loans granted to FCC Servicios Medio Ambiente Holding, S.A.U. for a total of 352,619 thou-
sand euros.
• Subordinated loan for a nominal value of 275,376 thousand euros granted in 2019 in con-
nection with the corporate restructuring operations in the environmental services area dis-
cussed at the beginning of this note. As at 31 December 2020, the closing balance inclu-
ding interest is 282,261 thousand euros.
• Subordinated loan of 69,827 thousand euros, generated in the 2020 business year from the
transfer of assets from contracts in the USA (notes 5 and 6). FCC Servicios Medio Ambiente
Holding, S.A.U. has been subrogated to the debtor position that the American subsidiary
companies had with Fomento de Construcciones y Contratas, S.A. for the aforementioned
transfer.
Both loans have a final maturity of 2034, no partial repayments and a fixed interest rate of 2.5%
p.a., which will be capitalised. Any amount, whether interest or principal, to be collected by the
lender will be subordinated to the full repayment of the bonds issued by the borrower (note 13).
– Participating loan of 45,000 thousand euros to FCC Versia, S.A., due to transformation of an
ordinary loan on 25 November 2015. The initial maturity, 31 January 2018, could be tacitly
extended for successive additional two-year periods, provided that neither of the parties sta-
ted their wish to terminate it at least two months in advance Since neither of the parties did
this, its current maturity date is 31 January 2022. It is therefore classified under non-current
assets in the balance sheet. The fixed interest rate is 1%. The interest rate also has a variable
part calculated based on indicators of the borrower’s profitability. The total maximum interest
rate (fixed + variable) has a ceiling and will not exceed 10%. At year-end, interest of 450 thou-
sand euros had accrued (the same as at 31 December 2019). This loan suffered impairment
of 37,209 thousand euros at 31 December 2020 (36,857 thousand euros at 31 December
2019).
Impairment
The following significant changes have taken place:
– Reversal of the impairment of the holding in Cementos Portland Valderrivas, S.A. amounting
to 67,833 thousand euros, mainly due to the Cementos Group’s results for the period. In
2019, 45,250 thousand euros were provided for the decrease in equity due to the impairment
of Uniland’s commercial fund.
– Reversal of the impairment of the investment in FCC Construcción, S.A. amounting to 3,798
thousand euros in the 2020 business year (reversal of 165,704 thousand euros in 2019), due
to the earnings for the period, among other factors.
–
–
–
Impairment of Per Gestora, S.L.U.’s holding of 64,960 thousand euros in 2020 (reversal of 991
thousand euros in 2019), due to the distribution of voluntary reserves in the company in 2020.
Impairment of FM Green Power Investments, S.L. amounting to 612 thousand euros (reversal
of 9,847 thousand euros in 2019).
In 2019 reversal of the impairment of FCC Servicios Medio Ambiente Holding, S.A.U. amoun-
ting to 85,863 thousand euros.
– The most significant events in 2019 in relation to the corporate reorganisation of environmen-
tal services include the derecognition of the impairment on the holding in Azincourt Invest-
ment, S.L.U., amounting to 1,300,109 thousand euros, and the derecognition of impairment
of credits in FCC Medio Ambiente Holding SAU for 14,180 thousand euros.
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b) Current investments in Group companies and associates
This section includes mainly the loans and other non-trade credits granted to Group compa-
nies and associates, among others, in line with certain specific cash situations, as well as other
temporary financial assets, measured at the lower of cost or market value, increased by interest
earned at a market rate. It also includes the balances generated by tax effects with the subsidiary
companies in the tax consolidation Group, as well as outstanding dividends.
The most significant balances in this regard were as follows:
– Payment of annual interest when the borrower and its subsidiary companies, excluding the
FCC Aqualia subgroup, hold “available cash” at 30 September which is not less than the
amount of the accrued interest. Any unpaid matured interest will be capitalised and accrue
interest, as regulated in article 317 of the Code of Commerce.
– Collateral: the guarantees mentioned in note 17 continued to be granted.
The aforementioned loan has accrued interest of 29,107 thousand euros in the business year
(29,028 thousand euros at 31 December 2019).
FCC Servicios Medio Ambiente Holding S.A.U.
FM Green Power Investments, S.L.
FC y C, S.L.U.
FCC Concesiones e Infraestructuras, S.L.U.
Fedemes, S.L.U.
Cementos Portland Valderrivas, S.A.
Rest
2020
43,236
26,411
23,113
22,824
13,724
11,533
8,944
2019
21,727
—
11,461
—
6,247
400
3,133
149,785
42,968
c) Non-current payables to Group companies and associates
The balance at 31 December 2020 corresponded completely to the loan extended by FCC Aqua-
lia, S.A. (806,479 thousand euros) to the company, with the following characteristics:
– Loan amount: 806,479 thousand euros.
– Maturity: 28 September 2048.
–
–
Interest periods: annual periods, except the final period which will end on 28 September 2048.
Interest rate: 3.55%.
d) Current payables to Group companies and associates
Payables to Group and associated companies include loans received by the Company which are
remunerated at market prices, as well as the balances generated by the tax effect with the sub-
sidiary companies of the tax consolidation Group. The most significant balances on the liabilities
side of the accompanying balance sheet are as follows:
FCC Construcción, S.A.
Fedemes, S.L.U.
Asesoría Financiera y de Gestión, S.A.U.
FC y C, S.L.U.
Cementos Portland Valderrivas, S.A.
Per Gestora Inmobiliaria, S.L.U.
Rest
2020
39,172
34,674
17,750
15,815
4,354
61
15,805
127,631
2019
23,636
25,453
57,159
14,211
11,112
50,413
6,703
188,687
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10. Trade receivables for sales and services
11. Equity
The breakdown of this epigraph in the accompanying balance sheet includes the value of the
company’s sales and services, as follows.
Outstanding Invoiced Production
Production not yet invoiced
Trade receivables for sales and services
Customer advance payments
Total net customer balance
2020
1,357
769
2,126
—
2,126
2019
6,222
4,061
10,283
—
10,283
The Ordinary General Shareholders’ Meeting held on 2 June 2020 resolved to distribute a scrip
dividend by issuing new ordinary shares with a nominal value of 1 euro each, without a share
premium, of the same class and series as the shares already in circulation. This resolution also
included an offer by the company to acquire the free allocation rights at a guaranteed price.
At its meeting on 2 June 2020, following the General Shareholders’ Meeting, the Board of Di-
rectors of Fomento de Construcciones y Contratas, S.A. resolved to execute the scrip dividend
distribution resolution adopted by the Shareholders’ Meeting, the most significant characteristics
of which are described below:
– Maximum value of the scrip dividend: 156,905,930.40 euros, equivalent to 0.40 euros per
share.
The total shown corresponds to the net balance of trade receivables, net of the item “Custo-
mer advance payments” included under the epigraphs “Other payables” and “Trade and other
non-current accounts payable” on the liabilities side of the accompanying balance sheet.
– Shareholders received the corresponding allocation rights and could choose between three
options: receiving the new shares released, transferring their rights in the market or selling
their rights to the company for the guaranteed price of 0.40 euros per share.
The decrease in the balance between business years is almost entirely due to the transfer of the
US contracts to American subsidiary companies (notes 5 and 6).
Of the total net trade receivables balance, 7 thousand euros (190 thousand euros at 31 Decem-
ber 2019) relate to balances arising from arrangements operated jointly through joint ventures.
The company did not have a significant volume of commercial operations in default that were not
provisioned at 31 December 2020 and 2019. The company considers all balances overdue that
have not been paid by the counterparty to be in default.
– The number of free allotment rights required to receive a new share was set at 23. Sharehol-
ders who chose this option also received a compensatory cash dividend of 0,624 euros for
each new bonus share received, to make this financially equivalent to transferring their rights
to the company.
– At the end of the trading period for the free allocation rights on 22 June 2020, holders of
387,361,229 (98.75%) rights had chosen to receive new shares, while shareholders holding
4,903,597 rights had opted to accept the company’s offer to acquire their rights at the gua-
ranteed price. Accordingly, the final number of 1 euro bonus shares issued was 16,841,792
shares, corresponding to 4.29% of the capital stock prior to the increase, resulting in a cash
outflow for the compensatory dividend, as well as for the rights acquired by the Company of
12,436 thousand euros.
– On 2 July 2020, the public deed to increase the Company’s paid-up capital with a charge to
voluntary reserves was registered at the Barcelona Mercantile Registry.
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In addition, at the Ordinary General Shareholders’ Meeting held on 8 May 2019 a decision was
taken to distribute a scrip dividend, with the following characteristics:
a) Capital
– Maximum value of the scrip dividend: 151,530,202.40 euros, equivalent to 0.40 euros per
share.
– Shareholders received the corresponding allocation rights and could choose between three
options: receiving the new shares released, transferring their rights in the market or selling
their rights to the company for the guaranteed price of 0.40 euros per share.
– The number of free allotment rights required to receive a new share was set at 28. Sharehol-
ders who chose this option also received a compensatory cash dividend of 0,638 euros for
each new bonus share received, to make this financially equivalent to transferring their rights
to the company.
– At the end of the trading period for the free allocation rights on 28 May 2019, holders of
376,300,974 (99.33%) rights had chosen to receive new shares, while shareholders holding
2,524,532 rights had opted to accept the company’s offer to acquire their rights at the gua-
ranteed price. Accordingly, a total of 13,439,320 bonus shares with a nominal value of 1 euro
were issued, representing 3.55% of the capital stock prior to the increase.
The following table shows the effect of distribution of the scrip dividend on the equity of Fomento
de Construcciones y Contratas, S.A. in both business years:
Capital stock increase
Capital stock
Capital stock increase
Costs, net of tax
Acquisition rights at guaranteed price
Compensatory dividend
Voluntary reserves
Change in equity
2020
2019
16,842
16,842
(16,842)
(79)
(1,961)
(10,475)
(29,357)
(12,515)
13,439
13,439
(13,439)
(78)
(1,010)
(8,556)
(23,083)
(9,644)
The capital of Fomento de Construcciones y Contratas, S,A. comprises 409,106,618 ordinary
shares represented through book entries with a nominal value of 1 euro each.
All shares are fully subscribed and paid and carry the same rights.
The securities representing the capital stock of Fomento de Construcciones y Contratas, S.A. are
admitted to official listing on the four Spanish stock exchanges (Madrid, Barcelona, Bilbao and
Valencia) via Spain’s Continuous Market.
On 10 June 2020, Samede Inversiones 2010, S.L., a company 100% owned by Esther Koplowitz
Romero de Juseu, transferred the 100% holding it held in Dominum Dirección y Gestión, S.L.,
which in turn held shares in Fomento de Construcciones y Contratas, S.A. representing 15.43%
of the capital stock at that date, to Control Empresarial de Capitales, S.A. de C.V.
On 27 November 2020, Dominum Dirección y Gestión, S.L. transferred shares in FCC represen-
ting 7% of its capital stock to Finver Inversiones 2020, S.L.U.
Following the aforementioned changes, in relation to the part of the capital held by other com-
panies, directly or through its subsidiary companies, when it is more than 10%, according to the
information provided, the company Control Empresarial de Capitales, S.A. de C.V. (acquiring
company of Inversora Carso, S.A. de C.V.), controlled by the Slim family, holds 69.61% directly
and indirectly, at the date of preparation of these statements. Furthermore, as indicated in the
previous paragraph, the company Finver Inversiones 2020, S.L.U., 100% owned by Inmobiliaria
AEG, S.A. de C.V., which in turn is controlled by Carlos Slim Helú, has a 7% holding. Finally, the
company Nueva Samede Inversiones 2016, S.L.U. has a direct holding of 4,536% of the capital.
Esther Koplowitz Romero de Juseu also holds 133,269 direct shares in Fomento de Construc-
ciones y Contratas, S.A.
b) Share premium
The Spanish Limited Liability Companies Law, as amended, expressly permits the use of the sha-
re premium account balance to increase capital and does not establish any specific restrictions
as to its use for other purposes.
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c) Reserves
d) Own shares
El desglose de este epígrafe para los ejercicios 2020 y 2019 es el siguiente:
Movements in the “Own shares” heading in the 2020 and 2019 business years were as follows:
420
Legal reserve
Other reserves
2020
78,453
2019
75,765
Balance at 31 December 2018
Sales
2,083,067
1,873,659
Acquisitions
2,161,520
1,949,424
Balance at 31 December 2019
In accordance with the Spanish Limited Liability Companies Law, as amended, 10% of net profit
for each business year must be transferred to the legal reserve until the balance of this reserve
reaches at least 20% of the capital stock. The legal reserve cannot be distributed to shareholders
except in the event of liquidation.
The legal reserve may be used to increase capital provided that the remaining reserve balance is
greater than 10% of the increased capital.
Otherwise, until it exceeds 20% of capital stock and provided there are no sufficient available
reserves, the legal reserve may only be used to offset losses.
Noteworthy under “Other reserves” were restricted reserves amounting to 6,034 thousand euros,
equivalent to the nominal value of the own shares redeemed in the 2002 and 2008 business years
which, pursuant to article 335.c of the Spanish Limited Liability Companies Law, is restricted,
except with the same requirements as for the capital reduction.
Sales
Acquisitions
Balance at 31 December 2020
Details of own shares at 31 December 2020 and 2019 were as follows:
2020
2019
Number of shares
Amount
Number of shares
1,250,837
At 31 December 2020, the company’s shares represented 0.38% of the capital stock (0.32% at
31 December 2019).
(11,723)
—
(4,345)
(16,068)
—
(1,944)
(18,012)
Amount
(16,068)
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12. Long-term provisions
The changes in the business year were as follows:
Procedures
related to
infrastructure Litigation
Liabilities and
contingencies
Contractual
and legal
guarantees
and obligations
Rest
Total
35,383
93,169
76,325
48,325
9,712
262,914
—
—
3,015
6,813
—
(20,813)
—
—
1,402
11,230
(1,142)
(21,955)
(35,383)
(166)
—
(29,170)
(4,730)
(69,449)
—
—
—
—
96,018
62,325
19,155
5,242
182,740
503
52,164
(96,521)
(1,693)
—
—
1,072
6,243
(146)
(51,134)
—
112,526
19,155
6,168
137,849
Balance at
31/12/18
Provisions
Applications/
reversals
“Divestment of
environmental
activities” (Note 1)
Balance at
31.12.19
Provisions
Applications/
reversals
Balance at
31.12.20
Provisions for procedures related to infrastructure
This provision relates to infrastructure that was linked to the environmental services activity that
was spun off in 2019 (note 1).
Provisions for litigation
These provisions cover the company’s risks as the defendant in certain disputes relating to liabi-
lities arising from its activities.
The amount shown at 31 December 2019 corresponds in full to the challenged proceedings for
the sale of Alpine Energie, which was closed in May 2020. The following paragraphs discuss the
situation in more detail with the bankruptcy process of the Alpine subgroup, which is legally de-
pendent on FCC Construcción, S.A.
In 2006, the FCC Group acquired an absolute majority in Alpine Holding GmbH, hereinafter AH,
and thereby, indirectly in its operating subsidiary company, Alpine Bau GmbH, hereinafter AB. Se-
ven years later, on 19 June 2013, AB filed for insolvency before the Commercial Court of Vienna,
but after the unfeasibility of the reorganisation proposal was established, the insolvency adminis-
trator filed for, and the court decreed, the bankruptcy, closure and liquidation of the company. On
25 June 2013, the liquidation of the company was initiated. As a consequence of the bankruptcy
of AB, its parent company, AH filed for bankruptcy before the Commercial Court on 2 July 2013,
which declared the bankruptcy and liquidation of AH.
As a result of both bankruptcies, FCC Construcción, S.A. loses control over the Alpine Group,
interrupting its consolidation.
On the reporting date, the administrators recognised liabilities of approximately EUR 1,669 million
in AB and EUR 550 million in AH as part of the corresponding receivership proceedings. The
share of the bankrupt estate in AB currently amounts to 15% whereas for AH’s bankruptcy, the
bankruptcy administrator has not been able to estimate and determine the share.
Immediately after the bankruptcy of both companies, in July 2013, a bondholder filed a complaint
with the Central Public Prosecutor’s Office for Economic Crimes and Corruption (Wirtschafts- und
Korruptions-Staatsanwaltschaft). This not only gave rise to the opening of criminal proceedings
in July 2013 (for alleged fraud, criminal act of bankruptcy, and concealment of assets) in which
some 480 private prosecutions, mainly relating to bondholders, (Privatbeteiligte) were filed, alle-
ging damages totalling 378 million euros plus legal interest, but also other proceedings brought by
the insolvency administrators against the auditors, against FCC Construcción S. A. and against
various executives and proceedings brought by the bondholders against the banks mediating in
the acquisition of bonds. In 2010, 2011 and 2012, AH carried out three issues of bonds admitted
to trading on the Luxembourg and Vienna stock exchanges for a combined nominal value of 290
million euros.
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In the context of all these legal proceedings, various reports were issued in order to determine the
date on which AB and AH were presumed bankrupt. Therefore, in September 2014, the firm BDO
Financial Advisory Services GmbH issued a report at the request of the insolvency administrators
of AH and AB, according to which AB had been insolvent since at least October 2010. Subse-
quently, in July 2015, the court dealing with AB’s bankruptcy granted the insolvency administra-
tor’s request to commission the preparation of a report to determine the date on which it should
be understood that AB became over-indebted. The expert appointed was Mr Schima who, on
the basis of the report from BDO, a firm of which he was still a partner at the date of the report,
came to the same conclusions, stating that AB would have been insolvent since October 2010.
Contrary to these conclusions maintained by the bankruptcy administrators and used in various
legal proceedings, other expert reports were issued in the various proceedings, such as that of
Mr Konecny for the Public Prosecutor’s Office for Combating Economic Crimes and Corruption,
that of AKKT for the Banks, Ms Ponesch Urbanek as an expert witness in the lawsuit brought by
the banks against the Austrian tax authorities for the loans given to Alpine under State guarantee,
Mr Wundsam as court expert in the proceedings brought by the bankruptcy administrator against
Deloitte Audit Wirtschaftsprüfungs GmbH, Mr Rohatschek for this company and E&Y for FCC, all
of which differ from the conclusions reached by BDO/Schima.
In particular, in 2017, the anti-corruption prosecutor’s expert, a Doctor of Law and an Audit Ex-
pert, issued his fourth and final report. The expert’s reports concluded that (i) there had been no
concealment of assets; (ii) it could not be said that there had been fraud in the individual financial
statements of AB and AH and the consolidated financial statements of AH; and (iii) the date of
definitive date of insolvency of AB and AH was 18 June 2013. Together with the 3 reports that
preceded it, this report contributed to a large extent to the dismissal of the criminal proceedings
opened by the Public Prosecutor’s Office for Combating Economic Crimes and Corruption.
In July 2019, the Vienna Supreme Court of Justice dismissed in their entirety the various appeals
lodged by bondholders and other private prosecutors against the termination of the preliminary
proceedings.
During the refinancing of the Alpine Group between October 2012 and June 2013, FCC Construc-
ción, S.A. provided corporate guarantees to enable AB and a selection of its operating subsidiary
companies to bid for and/or be awarded construction work. At 31 December 2020, the amount
provisioned for these items in FCC Construcción, S.A. amounts to 24,384 thousand euros.
Since AH and AB were declared bankrupt up until the preparation of financial statements for the
2020 business year, a number of proceedings were instigated the Group and directors of AH and
AB. As at 31 December 2020, two (2) commercial proceedings and one (1) set of labour procee-
dings are still in progress, insofar as FCC may be directly or indirectly affected:
1. In April 2015, the administrator of Alpine Holding GmbH filed a claim for 186 million euros
against FCC Construcción, S.A. and other ex-executive of AB considering that these parties
should compensate Alpine Holding GmbH for the amounts collected through two issues of
bonds in 2011 and 2012 that were allegedly provided by this company to its subsidiary com-
pany, Alpine Bau GmbH, without the necessary guarantees and complying with a “manda-
te-order” from FCC Construcción S.A. On 31 July 2018, the ruling dismissing the claim was
handed down and the claimant ordered to pay the costs. The bankruptcy administrator filed
an appeal for procedural defects in September 2018, which was challenged by FCC Cons-
trucción S.A. in October 2018.
2. In April 2019, the Provincial Court of Vienna handed down a decision in which it upheld the
procedural defect in the taking of testimony given by the claimant, referring the cases back
to the courts with the indication that said testimony be taken and that a judgment be handed
down in accordance with the result. In May 2019, FCC lodged an appeal against this ruling
before the Supreme Court, which confirmed in April 2020 the need to return the proceedings
to the Court of First Instance so that the testimony could be taken in person before the Judge
of First Instance. This testimony has been scheduled for June 2021, unless the development
of the pandemic caused by COVID-19 makes transportation and courtroom proceedings
inadvisable.
3. In April 2017, a Group company, Asesoría Financiera y de Gestión, S.A. was notified of a
suit in which the bankruptcy administrator made a joint and several claim against the former
finance director at Alpine Bau GmbH and against Asesoría Financiera y de Gestión S.A. for
the payment of 19 million euros for the alleged violation of corporate and bankruptcy law,
considering that Alpine Bau GmbH, on making a deposit at Asesoría Financiera y de Gestión
S.A., allegedly made payments charged against equity, considered to be a capital refund,
and therefore prohibited by law The proceedings are still at the evidentiary phase, the court
expert having issued his report according to which the deposit and the factoring transactions
between subsidiary companies of AB and Asesoría Financiera y de Gestión S.A. would not
have caused any damage to AB. This report is currently being examined by the parties.
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Also in April 2017, a former FCC employee and former executive at AH and AB was notified
of a claim filed by the insolvency administrator of Alpine Bau GmbH in the Labour Court for 72
million euros. The claimant argues that this amount represents the damage to the bankruptcy
estate caused by the alleged delay in initiating insolvency proceedings. A hypothetical con-
viction of the administrator could in a remote scenario involve a subsidiary liability for the FCC
Group, given that letters of indemnity were granted to certain executives with management
and administration duties.
In terms of these disputes, the FCC Group and its legal advisors do not believe there will be any
future outflows of cash or prior to the issuance of the financial statements; therefore, no provisions
have been set aside, as the Group believes that they represent contingent liabilities.
Provision for third-party liability
This item includes the risks arising for the company in the performance of its activities that are
not included in other categories. These include the risks arising from international expansion, as
well as tax risks. In the 2019 business year, the company applied provisions amounting to 20,186
thousand euros as part of the procedure initiated by the tax authorities for the recovery of state aid
through the adjustment of the tax incentives applied by the FCC Group in previous years related
to the tax amortisation of financial goodwill from the acquisitions of foreign shareholdings resulting
from the indirect acquisition of shares (Note 16.g).
Provisions for guarantees and contractual and legal obligations
13. Non-current and current payables
The balance of “Non-current payables” and “Current payables” was as follows:
2020
Debt instruments and other marketable securities
Bank borrowings
Finance lease payables (Note 7.a)
Other financial liabilities
2019
Debt instruments and other marketable securities
Bank borrowings
Finance lease payables (Note 7.a)
Other financial liabilities
Long-term
Short-term
—
20,000
19,215
1,584
40,799
—
61,667
24,650
1,952
88,269
302,300
155,228
4,774
2,041
464,343
300,000
25,528
10,429
6,668
342,625
This heading includes the provisions to cover the expenses arising from contractual and legal
obligations of a non-environmental nature.
Details of “Non-current payables”, by maturity, are as follows:
Other provisions
This heading includes the items not classified in the foregoing accounts, such as provisions to
cover environmental risks and risks arising from its procedures as the insurer itself.
Bank borrowings
Finance lease payables
Other financial liabilities
Maturity
2022
20,000
4,902
640
25,542
2023
—
5,032
366
5,398
2024
—
7,341
366
7,707
2025
—
1,940
212
2,152
2026 and
beyond
—
—
—
—
Total
20,000
19,215
1,584
40,799
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a) Bonds and other current marketable securities
14. Trade payables
Fomento de Construcciones y Contratas, S.A has had a promissory note programme, Euro Com-
mercial Paper Programme (ECP), registered since November 2018 on the Irish stock exchange
(Euronext Dublin) for a maximum amount of 600 million euros as at December 2020, at a fixed
interest rate and with a maximum maturity of one year, which allows issuance with maturities of
between 1 and 364 days from the date of issue, in order to meet general financial needs.
As at 31 December 2020 the outstanding amount is 302,300 thousand euros spread over diffe-
rent maturities, from 2.5 to 6 months.
In relation to the Spanish Accounting and Audit Institute (ICAC) Resolution dated 29 January
2016, enacted in compliance with the Second final provision of Law 31/2014, of 3 December,
which amends the Third additional provision of Law 15/2010, of 5 July, stipulating measures to
combat late payment in commercial transactions, the following table provides information on the
average payment period to suppliers for commercial transactions arranged since the date of entry
into force of Law 31/2014, i.e. 24 December 2014:
b) Non-current and current bank borrowings
All of the syndicated financing arranged in 2018, amounting to 1,200 million euros, was repaid
early and in full on 5 December 2019.
This repayment was largely financed with the funds obtained from the issuance of bonds in the
investee company FCC Servicios Medioambiente Holding, S.A.U. (note 9.a) and funds from new
bilateral facilities arranged.
This enabled Fomento de Construcciones y Contratas, S.A. and the FCC Group to successfully
complete the debt reduction and financial reorganisation process initiated six years ago, resulting
in a much more robust and efficient capital structure, with amounts, maturities and financing
costs appropriate to the nature of its business areas.
At 31 December 2020, this epigraph mainly includes financing facilities in the form of credit fa-
cilities and bilateral loans with a maximum limit of 648.5 million euros with a number of financial
institutions. At 31 December 2020, the drawn down balance of this financing amounts to 175
million euros.
Average payment period to suppliers
Ratio of paid operations/transactions
Ratio of operations/transactions pending payment
Total payments made
Total payments pending
2020
Days
56
55
64
Amount
59,408
6,453
2019
Days
50
54
31
Amount
49,496
8,915
15. Information on the nature
and level of risk of financial instruments
The concept of financial risk refers to changes in the financial instruments arranged by Fomento
de Construcciones y Contratas, S.A., as a result of political, market and other factors and their
impact on the financial statements. The risk management philosophy of the company and of FCC
Group is consistent with their business strategy, and seeks to achieve maximum efficiency and
solvency at all times. To this end, strict financial risk management and control criteria have been
established, consisting of identifying, measuring, analysing and controlling the risks incurred in
the Group’s operations. The risk policy has been integrated into the Group’s organisation in the
appropriate manner.
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In view of the company’s activities and the transactions through which it carries on its business, it
is currently exposed to the following financial risks:
b) Foreign currency risk
a) Capital risk
To manage capital, the main objective of the company and of FCC Group is to reinforce its finan-
cial-equity structure, in order to improve the balance between borrowed funds and shareholders’
equity, and the Group endeavours to reduce the cost of capital and, in turn, to preserve its solven-
cy status, in order to continue managing its activities and to maximise shareholder value, not only
at Group level, but also at the level of the parent, Fomento de Construcciones y Contratas, S.A.
The essential base considered by the company to be capital is recognised under “Equity” in
the balance sheet. Given the sector in which they operate, the company and the Group are not
subject to external capital requirements, although this does not prevent the frequent monitoring
of equity to guarantee a financial structure based on compliance with the prevailing regulations
of the countries in which it operates, also analysing the capital structure of each of the subsidiary
companies to enable an adequate distribution between debt and capital.
Proof of the foregoing are the extensions made in 2014 for 1,000,000 thousand euros and in 2016
for 709,519 thousand euros, both aimed at strengthening the capital structure of the Company.
In addition, in December 2019, two straight bonds were issued by the investee company FCC
Servicios Medioambiente Holding, S.A.U. for 1,100 million euros. The resulting funds were mainly
used for the voluntary early repayment of the syndicated financing of Fomento de Construcciones
y Contratas, S.A., amounting to 1,200 million euros, arranged in September 2018. In Novem-
ber 2018, the company registered a 300 million euro promissory notes programme, which was
subsequently expanded to 600 million euros in March 2019 (Note 13.a). In 2020, new funding
facilities were arranged in the form of credit facilities and bilateral loans (Note 13.b).
These operations have enabled completion of the debt reduction and financial reorganisation
process initiated five years ago and continuation of the policy of diversifying sources of funding.
These measures have contributed to achieving a much more robust and efficient capital structure,
with suitable volumes, terms and financing costs for the nature of the FCC Group.
The General Finance Department, which is responsible for the management of financial risks,
regularly reviews the debt-equity ratio and compliance with financing covenants, together with the
capital structure of the subsidiary companies.
A noteworthy consequence of FCC Group’s positioning in international markets is the exposu-
re resulting from net positions in foreign currencies against the euro or in one foreign currency
against another when the investment and financing of an activity cannot be arranged in the same
currency.
Although the benchmark currency in which the company and FCC Group mainly operate is the
euro, they also hold financial assets and liabilities accounted for in currencies other than the euro.
Exchange rate risk is primarily located in borrowings denominated in foreign currencies, invest-
ments in international markets and payments received in currencies other than the euro.
FCC Group’s general policy is to mitigate the adverse effect on its financial statements of ex-
posure to foreign currencies as much as possible, with regard to both transactional and purely
equity-related movements. The Group therefore manages the effect that foreign currency risk can
have on the balance sheet and the income statement.
c) Interest rate risk
Fomento de Construcciones y Contratas, S.A. and FCC Group are exposed to interest rate fluc-
tuations due to the fact that the Group’s financial policy aims to ensure that its current financial
assets and debt are partially tied to variable interest rates. The benchmark interest rate for debt
arranged with credit entities in euros is mainly the Euribor.
Any increase in interest rates could give rise to an increase in financing costs associated with
its borrowings at variable interest rates, and could also increase the cost of refinancing the bo-
rrowings and the issue of new debt.
In order to ensure a position that is in the best interests of the company and of FCC Group, an
interest rate risk management policy is actively implemented, with on-going monitoring of markets
and assuming different positions depending primarily on the asset financed.
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The table below summarises the effect on the Company’s income statement of increases in the
interest rate curve with regard to gross debt:
e) Liquidity risk
Impact on profit or loss
d) Solvency risk
+25 pb
575
+50 pb
1.150
+100 pb
2.299
The most suitable ratio for measuring solvency and debt repayment ability is Net debt/Ebitda.
The following table shows the development of the net financial indebtedness shown in the ac-
companying balance sheet.
Bank borrowings (note 13)
Debt instruments and other marketable securities (Note 13)
Financial payables to Group and associated companies (notes 9.c
and 9.d)
Other interest-bearing financial debt (note 13)
Financial loans with Group and associated companies (note 9.b)
Other current financial assets (note 8.b)
Treasury and cash equivalents
2020
2019
175,228
302,300
886,640
25,679
(120,759)
(1,166)
(8,227)
87,194
300,000
971,965
41,415
(29,086)
(1,172)
(10,463)
1,259,695
1,359,853
Fomento de Construcciones y Contratas, S.A. performs its business in industrial sectors requiring
a high level of financing, having so far obtained adequate financing for its operations. However,
the company cannot guarantee that these circumstances relating to obtaining financing will con-
tinue in the future.
The ability of the company and of FCC Group to obtain new financing lines depends on many
factors, a lot of which are beyond their control, such as general economic conditions, the availa-
bility of funds in financial institutions and the monetary policy of the markets in which they opera-
te. Adverse effects in debt and capital markets may hinder or prevent adequate financing being
available to develop the company’s activities
Historically, FCC Group has always been able to renew its loan arrangements, and it expects
to continue doing so in the coming twelve months. However, FCC Group’s ability to renew loan
arrangements depends on various factors, many of which are outside the control of FCC Group,
such as general economic conditions, the availability of funds for loans from private investors
and financial institutions, and the monetary policy of the markets in which it operates. Negative
conditions in debt markets could hinder or prevent FCC Group’s capacity to renew its financing.
Accordingly, FCC Group cannot guarantee its ability to renew its loan arrangements on econo-
mically attractive terms. The inability to renew such loans or to ensure adequate financing under
acceptable terms may have a negative impact on the liquidity of Fomento de Construcciones y
Contratas, S.A. and its Group companies, and on its ability to meet its working capital needs.
To adequately manage this risk, the Group performs exhaustive monitoring of the repayment da-
tes of all loans and credit facilities of each Group company, in order to conclude all renewals in the
best market conditions sufficiently in advance, analysing the suitability of the funding and studying
alternatives if the conditions are unfavourable on a case-by-case basis. The Group is also present
in several markets, which facilitates obtaining credit facilities and mitigating liquidity risk.
Notes 2 and 13 provide additional disclosures in relation to the Group’s liquidity position.
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f) Concentration risk
g) COVID-19 risk
The risk arising from the concentration of lending transactions with common characteristics is
distributed as follows:
– Funding sources: in order to diversify this risk, the company and FCC Group work with a large
number of Spanish and foreign financial entities to obtain funds.
– Markets/geography (domestic, foreign): The Company and the FCC Group have a significant
position in the domestic market, so the debt is mainly concentrated in euros.
– Products: the company uses various financial products, such as loans, credit facilities, pro-
missory notes, syndicated loans, assignments and discounting.
FCC Group’s strategic planning process identifies the objectives to be attained in each of the
areas of activity, based on the improvements to be implemented, the market opportunities and
the level of risk deemed acceptable. This process serves as a base for preparing operating plans
that specify the goals to be reached each business year.
Credit risk
The provision of services or the acceptance of client engagements, whose financial solvency
was not guaranteed at the acceptance date, situations not known or unable to be assessed and
unforeseen circumstances arising during the provision of the service or the execution of the enga-
gement that could affect the client’s financial position could generate a payment risk with respect
to the amounts owed.
The company and FCC Group request commercial reports and assess the financial solvency of
clients before doing business and perform on-going monitoring, and have put in place a procedu-
re to be adopted in the event of insolvency. In the case of public-sector clients, the Group does
not accept engagements that do not have an assigned budget and financial approval. Offers that
exceed a certain payment period must be authorised by the Finance Division. Likewise, on-going
monitoring is performed of debt delinquency in various managing committees.
With regard to credit ratings, the Company and the FCC Group apply its best judgement to impair
financial assets on which it expects to incur credit losses over their entire lives. The Group regu-
larly analyses changes in the public ratings of the entities to which it is exposed.
The COVID-19 pandemic has had a series of impacts on the financial statements of the Company
and the FCC Group, both in terms of operations and liquidity, which has also led to the updating
of the main estimates affecting them.
In operational terms, the impact of the COVID-19 crisis on the FCC Group has been limited,
given that the Water and Environment areas, which represent the most substantial part of the
Group’s revenues and earnings, include activities that the various national authorities have con-
sidered essential without significant interruptions in activity or loss of profitability for most of the
assets. In relation to other activities, such as Construction, which has a smaller weighting in the
Group’s total activity, the pandemic has led to the temporary interruption of part of the backlog of
construction contracts in progress as well as, where applicable, some inefficiencies in the supply
chain, circumstances that inevitably have an impact on project costs as well as on project delivery
times. Measures have been taken to adapt costs to the new levels of activity and to date virtually
all activity has resumed, so no significant non-provisioned impairment losses are expected. The
Cement division performed well, especially in the second half of the business year, with a certain
slowdown in growth, but contributing positive EBITDA.
In terms of liquidity, new financing lines have been closed, securing its financial position against
possible liquidity tensions. Notes 2 and 13 incorporate additional disclosures on this issue.
The Company and the FCC Group, in light of the situation created by the COVID-19 crisis, have
carried out an analysis of the main estimates affecting the individual and consolidated financial
statements. In relation to the estimates affecting the individual financial statements (note 4.m), the
notes to these financial statements detail the effects in terms of impairments and provisions that
the COVID-19 crisis has had on the financial information for the 2020 business year.
Taking into account the limited impact, the measures to secure the assets undertaken as well as
the existing liquidity gaps, these individual financial statements have been prepared on a going
concern basis, since the continuity of the company is not in doubt.
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16. Deferred taxes and tax matters
a) Balances with public administrations and deferred taxes
The management of Fomento de Construcciones y Contratas, S.A., the parent of the Tax Group
18/89 (Note 16.h), has assessed the recoverability of deferred tax assets by estimating future tax
bases relating to the aforementioned Group, concluding that no doubts exist with respect to their
recovery in a period not exceeding ten years. The projections used are based on the Group’s
estimated “Consolidated accounting profit for the year before tax from continuing operations”,
adjusting for the related permanent and temporary differences expected to arise each year. The
projections show increased profit, as a result of continuing the measures taken to reduce costs
and the reinforcement of the Group’s financial structure, which have enabled a reduction in finan-
cial debt and lower interest rates, resulting in a significant reduction in finance costs.
a.1) Tax receivables
Non-current
Deferred tax assets
Current
Current tax assets
Other receivables from the public administrations
2020
2019
a.2) Payable balances
54,670
54,670
77,946
674
78,620
Non-current
Deferred tax liabilities
Current
Other government/public administration credits/loans:
Withholdings
VAT and other indirect taxes
Social Security bodies
Other concepts
2020
2019
385
385
251
138
330
1
720
2,642
2,642
249
230
851
2
1,332
100,919
100,919
65,385
873
66,258
2019
63,180
17,228
18,978
1,533
100,919
The breakdown of the “Deferred tax assets” heading is as follows:
Capitalisation of tax loss carryforwards
Non-deductible provisions
Non-deductible finance costs
Rest
2020
48,719
4,432
—
1,519
54,670
The “Capitalisation of tax loss carryforwards” item mainly arises from the state aid recovery pro-
cedure mentioned in section g of this note.
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a.3) Changes in deferred tax assets and liabilities
b) Reconciliation of accounting profit and taxable income
Movements in deferred tax assets and liabilities in the 2020 and 2019 business years were as
follows:
The reconciliation between accounting profit and the taxable income for corporate income tax
purposes is as follows:
Taxable temporary differences
Balance at 31/12/18
Originating in previous business years
Other adjustments
Balance at 31.12.19
Arising in prior years (note 16.b)
Other adjustments
Balance at 31.12.20
Temporary differences arising in the balance sheet
Balance at 31/12/18
Other adjustments
Balance at 31.12.19
Other adjustments
Balance at 31.12.20
Deferred tax
assets
Deferred tax
liabilities
72,160
(17,230)
45,989
100,919
(24,827)
(21,422)
54,670
271
(271)
–
–
–
27,620
–
(24,978)
2,642
–
(2,257)
385
103
(103)
–
–
–
Total balance at 31.12.20
54,670
385
“Other adjustments” in the 2020 business year mainly include the allocation to FCC Construcción,
S.A. of the part of the tax credit corresponding to this company that arose in 2019 as a result of
the events and circumstances described in section g) of this note.
Accounting profit/
(loss) before tax for
the year
2020
2019
258,803
231,026
Permanent differences
76,002
(341,628)
(265,626)
60,116
(342,420)
(282,304)
Additions
Reductions
Additions
Reductions
Adjusted accounting
profit/(loss)
Temporary differences
– Arising in prior
years (note 16.a)
Tax base (taxable
profit/(loss)
(6,823)
(51,278)
–
(99,306)
(99,306)
–
(68,920)
(68,920)
(106,129)
(120,198)
Noteworthy in the table above were the permanent differences relating to both business years.
which basically arise from:
–
Impairment on investments of the Tax Group 18/89 and at the remaining investees (note 9).
– The exemption to avoid the double taxation of dividends. Corporation Tax Law 27/2014, of 27
November, applicable from 2015, eliminated the tax credit for double taxation of dividends,
replacing it with the aforementioned exemption (note 19.a).
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c) Tax recognised in equity
f) Tax loss carryforwards and unused tax credits
The taxes recognised in equity at year-end 2020 and 2019 were not significant.
At year-end, the company had tax loss carryforwards from prior years pending offset amounting
to 306,788 thousand euros, as a member of Tax Group 18/89, detailed as follows, by year:
430
d) Reconciliation of accounting profit to the corporate income tax
expense
The reconciliation of accounting profit to the corporate income tax expense was as follows:
Adjusted accounting profit/(loss)
Corporate income tax charge
Other adjustments
Corporate income tax expense/(income)
2020
(6,823)
(1,706)
9,685
7,979
2019
(51,278)
(12,820)
2,393
(10,427)
“Other adjustments” in the 2020 business year basically include the adjustment made to reverse
non-activated deferred tax assets in prior years, together with the non-capitalisation of prepaid
taxes and negative taxable amounts in the business year.
e) Breakdown of the corporate income tax expense
Deductions
Reinvestment
R+D+I Activities
The breakdown of Corporate Income Tax expense for the 2020 and 2019 business years was as
follows:
Internal double taxation relief
Rest
Current tax
Deferred tax
Total tax expense
2020
2019
(21,582)
29,561
7,979
(22,573)
12,146
(10,427)
2013
2014
2016
2019
Total
Amount
194,998
47,860
58,389
5,541
306,788
The company has only recognised a deferred tax asset for the tax loss carryforwards from 2013
(section g) of this same note).
The company also has non-activated unused tax credits pending application from previous years
amounting to 8,728 thousand euros. The breakdown is as follows:
Application
deadline
15 years
18 years
Indefinite
15 years
Amount
4,668
2,197
770
1,093
8,728
The company also has a potential uncapitalised tax asset, totalling 333 million euros, correspon-
ding to the impairment test performed in prior years on its holding in Azincourt, S.L., the holding
company for the shares of the British company FCC Environment (UK). The impairment, which
was not deemed to be deductible from the taxable income for corporate income tax purposes,
amounted to 1,333 million euros. This amount could be deducted for tax purposes in the future,
in the event that Azincourt Investment, S.L. is wound up.
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g) Financial years pending verification and inspection actions
Fomento de Construcciones y Contratas, S.A. has all the business years not yet statute-barred
open for review by the tax authorities for the taxes applicable to them. In June 2020, the tax au-
thorities notified the start of corporate income tax audits of the tax group headed by Fomento de
Construcciones y Contratas, S.A., 2015 to 2017, the VAT corresponding to the period from June
2016 to December 2017 of Fomento de Construcciones y Contratas, S.A., FCC Construcción,
S.A., FCC Aqualia, S.A., FCC Industrial e Infraestructuras Energéticas, S.A. and Cementos Port-
land Valderrivas, S.A., as well as withholdings/payments on account for employment income and
income from professional services for the period from June 2016 to December 2017 of Fomento
de Construcciones y Contratas, S.A., FCC Construcción, S.A. and FCC Aqualia, S.A. and for the
period from January to December 2017 for Cementos Portland Valderrivas, S.A. In relation to the
business years and taxes open to inspection, contingent tax liabilities could arise, the amount of
which cannot be objectively quantified at present as the proceedings are at a very early stage.
However, Group management considers that the liabilities resulting from this situation would not
have a significant effect on the Group’s equity.
In May 2019, the tax authorities completed a procedure to recover state aid, arising from Euro-
pean Commission Decision 2015/314/EU, of 15 October 2014, relating to the tax amortisation of
financial goodwill from the indirect acquisition of foreign holdings. This procedure aims to adjust
the tax incentives applied by the company and FCC Group in prior business years as a result of
the acquisition of the Alpine, FCC Environment (formerly the WRG Group) and FCC CEE (formerly
the ASA Group) Groups. The tax authorities filed a claim in 2019 for a total of 111 million euros,
that included 19 million euros in interest, from Fomento de Construcciones y Contratas, S.A.,
parent company of the FCC Group (Note 18). Of the remaining 63 million euros, negative taxable
amounts arising from the adjustment made by the tax authorities were capitalised (49 million
euros in Fomento de Construcciones y Contratas, S.A. and the remainder in the Group company
FCC Construcción, S.A. following the allocation made in 2020 as indicated in section a) of this
note), deferred tax liabilities were reversed amounting to 9 million euros and a provision of 20
million euros was applied at the end of 2018 (note 12). The company has settled this tax debt
but has also filed an economic-administrative appeal against it, which is pending resolution. The
legal advisors of Fomento de Construcciones y Contratas, S.A. consider it likely that the amounts
already paid in this recovery procedure will be returned. In addition, within the framework of this
procedure and as indicated above, the tax authorities have recognised tax credits in favour of the
FCC Group amounting to 63.2 million euros (see section f) of this note).
In relation to the rest of the business years and taxes open for review, as a result of the criteria
that the tax authorities may adopt in the interpretation of the tax regulations, the outcome of the
inspections currently under way, or those that may be performed in the future for the years open
for review, could generate contingent tax liabilities whose amount cannot currently be quantified
objectively. However, Group management considers that the liabilities resulting from this situation
would not have a significant effect on the Group’s equity.
h) Tax Group
In accordance with file 18/89, as the parent, Fomento de Construcciones y Contratas, S.A. files
consolidated income tax returns, including all the Group companies that comply with the require-
ments of the tax legislation.
i) Other tax information
The following table includes the details of the “Corporation tax refunded/(paid)” heading in the
statement of cash flows for the 2020 and 2019 business years.
Collections from/payments to Group companies for prior years'
corporation tax charge and corporation tax prepayments in the
year
Prior years' corporation tax
Prepayments
Recovery procedure for state aid
Withholdings and other
2020
2019
44,448
25,183
29,558
(40,766)
—
(209)
33,031
32,277
(38,008)
(92,034)
(67)
(72,649)
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17. Guarantee commitments to third
parties and other contingent liabilities
At 31 December 2020, Fomento de Construcciones y Contratas, S.A. provided guarantees visà-
vis public bodies and private clients, mainly to secure the proper performance of the services
under contracts in the United States of America, for 20,924 thousand euros (31,588 thousand
euros at 31 December 2019). The decrease in the business year is mainly due to the transfer of
part of the guarantees for certain contracts transferred to the American subsidiary companies
(notes 5 and 6).
Also, at year-end, the company had provided securities and guarantees to third parties with res-
pect to certain Group companies, totalling 83,816 thousand euros (237,148 thousand euros at
31 December 2019), essentially companies belonging to the Environmental Services division. The
decrease in the business year is due to the transfer of guarantees to companies in the aforemen-
tioned activity, as a result of the spinoff process that took place in 2019 and that is discussed in
note 1.
Fomento de Construcciones y Contratas, S.A. has also appeared as the respondent in some
lawsuits. However, the company’s directors consider that the resulting liabilities would not have a
material effect on the company’s equity.
The possible financial effects of the main contingent liabilities derived from the bankruptcy of the
Alpine subgroup would be the cash outflows indicated in the respective lawsuits detailed in Note
12 of this report, a risk not considered likely.
In addition to the disputes related with Alpine, on 15 January 2015 the Competition Chamber of
the Spanish National Markets and Competition Commission handed down a ruling with respect
to proceedings S/0429/12, for an alleged breach of article 1 of Law 15/2007 on the Defence of
Competition. This ruling affects various companies and associations in the waste sector, including
Fomento de Construcciones y Contratas, S.A. and other companies that also belong to FCC
Group. The Group has filed an administrative appeal before the Spanish National Appellate Court.
At the end of January 2018, notification was received of the decisions handed down by the Spa-
nish National Appellate Court, upholding the administrative appeals filed by Gestión y Valorización
Integral del Centro S.L. and BETEARTE, both FCC Group investees, against the CNMV ruling
imposing various penalties for alleged collusive practices. In both decisions, the argument put
forward by these companies that no single, on-going breach existed was upheld. In April 2018,
we were notified of the agreement initiating new legal proceedings for the same conduct inves-
tigated in the previous proceedings forming the scope of the upholding decision, commencing
an 18-month examining period. In September 2019, an agreement was issued suspending these
legal proceedings until the National Court’s decision on appeals filed by other companies that had
been penalised.
In April 2019, the National Court issued a judgment in relation to the price of EUR 6 per share
applied in the takeover bid made in 2017 by Fomento de Construcciones y Contratas, S.A. for
Cementos Portland Valderrivas, S.A., with the National Securities Market Commission (CNMV)
asking for the price to be recalculated. The aforementioned ruling was appealed by the Company
and also by the CNMV, as it did not agree with the outcome. In November 2020, the Supreme
Court ruled in favour of Fomento de Construcciones y Contratas, S.A. and the CNMV, overturning
the ruling of the Spanish National Court and validating the takeover bid procedure and the price
set.
As a result of an internal investigation in May 2019 in application of its compliance policy and
regulations, the Group has become aware of the existence of payments between 2010 and 2014
initially estimated at 82 million dollars that might not be justified and may therefore be illegal. These
acts were uncovered as a result of application of the procedures in the FCC Group’s compliance
rules. The company has informed prosecutors in Spain and Panama about these acts, and has
been providing the utmost cooperation since then to clarify what happened, applying the “zero
tolerance” principle for corruption that permeates the entire FCC Compliance System.
In the context of this cooperation, on 29 October 2019, the National Court’s Central Court of
Instruction No. 2 resolved to investigate FCC Construcción, S.A. and two of its subsidiary com-
panies, FCC Construcción América, S.A. and Construcciones Hospitalarias, S.A. in the context
of Preliminary Measures 34/2017. Proceedings are still ongoing and it is not yet possible to de-
termine at this stage whether charges will eventually be filed against these companies, and, if so,
what their scope will be. These actions may therefore have a financial impact, although we do not
have the information needed to qualify this impact.
Additionally, the 2018 agreement for the sale of the FCC Aqualia holding envisages certain varia-
ble prices that depend on the resolution of contingent procedures. Accordingly, the company did
not recognise any assets due to their contingent nature, nor has it recognised liabilities for claims
that may arise against their interests, since it was not considered probable that material losses
would occur and given their insignificant amount with respect to the transaction price.
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This sale led to the formation of the companies FCC Topco, s.a.r.l. and its subsidiary company
FCC Midco, S.A., with the latter having received securities representing 10% of the shares of FCC
Aqualia, which is owned by the company. These shares are pledged to secure certain obligations
to FCC Aqualia, primarily the repayment of the 806,479 thousand euro loan that the latter exten-
ded to Fomento de Construcciones y Contratas, S.A. (note 9.c). At the date of authorisation for
issue of these financial statements, the company believes that there is no risk that these guaran-
tees will be enforced.
The company is involved in other lawsuits and legal procedures aside from those already des-
cribed that it considers will not generate significant cash outflows.
The company’s stake in joint operations managed through joint ventures, joint ownership, partici-
pation accounts and other similar arrangements means that participants share joint and several
liability for the activities performed.
Details of “Staff expenses” are shown below:
Wages and salaries
Labour costs
2020
28,051
5,851
33,902
2019
29,840
3,010
32,850
“Finance income from marketable securities and other financial instruments of Group companies
and associates” includes the accrued interest arising from the financing granted to investees
(Note 9), including most notably:
The company has not obtained any significant assets as a result of the guarantees enforced in its
favour or released.
FCC Servicios Medio Ambiente Holding S.A.U.
18. Revenue and expenses
FCC Versia, S.A.U.
Azincourt Investments, S.L.U.
FCC Medio Ambiente, S.A.
Grupo FCC-PFI Holding
Enviropower Investments, Limited
In addition to sales and services, revenue includes dividends and accrued interest arising from
finance extended to investees (Note 2).
Rest
2020
6,898
450
—
—
—
—
410
7,758
2019
7,186
793
4,540
3,965
2,526
1,957
918
21,885
Of the total for “Sales and services”, 17,388 thousand euros corresponds to contracts for envi-
ronmental services located abroad, specifically in the USA (37,159 thousand euros at 31 Decem-
ber 2019), the contracts for which could not be transferred in the spinoff as their legal ownership
was retained by Fomento de Construcciones y Contratas, S.A. (note 1). With regard to these
contracts, on 25 September 2019, the company and FCC Medio Ambiente, S.A. signed an
agreement for the assignment of economic rights and obligations to FCC MA, which was novated
on 1 October. This agreement will remain in force until the effective transfer of the contracts once
authorisations are obtained from the granting authorities, which occurred in 2020 (notes 5 and
6). The rest of the amount classified as sales and services relate to the invoicing of management
support services provided to other Group companies.
Additionally, in 2019 “Financial expenses for loans with third parties” includes 18,837 thousand
euros in delay payment surcharges related to the state aid recovery procedure (Note 16.g).
Finally, in 2019, there was a loss of 8,280 thousand euros under the epigraph “Change in the fair
value of financial instruments” due to an adjustment to the sale price of the company FCC Global
Insurance Services, S.A. in 2009.
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19. Transactions and balances
with related parties
b) Balances with related parties
The detail of the balances with related parties at year-end was as follows:
a) Transactions with related parties
2020
Details of transactions with related parties in the 2020 and 2019 business years are as follows:
Current investments (note 9.b)
2020
Provision of services
Receipt of services
Dividends
Financial expenses
Financial income
2019
Provision of services
Receipt of services
Dividends
Financial expenses
Financial income
(wholly owned)
Group
Companies
Joint ventures
Associates
Total
93,676
11,721
226,941
29,319
7,758
83,218
14,570
53,761
31,085
21,885
304
—
26,410
—
—
311
—
9,368
5
—
137
157
1,002
—
—
83
162
1,405
—
—
94,117
11,878
254,353
29,319
7,758
83,612
14,732
64,534
31,090
21,885
In addition to the above, during the 2020 business year the Company has sold certain intangible
assets and property, plant and equipment to various subsidiary companies of the FCC Group
located in the USA, as indicated in notes 5 and 6.
Long-term financial investments
(note 9.a)
Current payables (note 9.c)
Non-current payables (note 9.d)
Trade receivables
Trade payables
2019
Current investments (note 9.b)
Long-term financial investments
(note 9.a)
Current payables (note 9.c)
Non-current payables (note 9.d)
Trade receivables
Trade payables
(wholly owned)
Group Companies
Joint
ventures
Associates
Total
123,374
3,294,548
127,628
806,479
17,341
2,736
42,968
2,779,150
188,685
806,485
33,854
3,391
26,411
16,463
—
149,785
4,768
3,315,779
2
—
50
—
—
1
—
28
—
127,631
806,479
17,419
2,736
—
42,968
17,075
262,789
3,059,014
2
—
52
1
—
—
19
1
188,687
806,485
33,925
3,393
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The details of trade receivables from and trade payables to Group companies and associates are
as follows:
2020-2019
Company
Receivables
Payable
Receivables
Payable
2020
2019
FCC Medio Ambiente, S.A.
FCC Aqualia, S.A.
Hidrotec Tecnología del Agua, S.L.U.
Fedemes, S.L.U.
FCC Construcción, S.A.
FCC Environmental Services (USA) Llc.
Rest
10,466
3,243
1,382
614
181
—
1,533
17,419
394
91
3
725
27
1,004
492
2,736
10,834
1,987
3,149
1,840
1,235
15,667
—
1,200
33,925
188
5
912
105
—
196
3,393
c) Transactions with directors of the company and senior executives
of the Group
The directors of Fomento de Construcciones y Contratas, S.A. accrued the following amounts at
the company, in thousands of euros:
Fixed remuneration
Other payments
2020
525
1,147
1,672
2019
525
1,041
1,566
The senior executives listed below, who are not members of the Board of Directors, received total
remuneration of 1,832 thousand euros (1,819 thousand euros in the 2019 business years).
Marcos Bada Gutierrez
Felipe B. García Pérez
Miguel A. Martínez Parra
Félix Parra Mediavilla
General manager of Internal Audit
General Secretary
Managing Director of Administration and Finance
General Manager of FCC Aqualia
The company had previously taken out insurance and paid a premium to settle contingencies
related to the death, permanent employment disability, retirement bonuses and other items for
certain executive directors and officers of Fomento de Construcciones y Contratas, S.A. (Note
4.l). No new contributions were made in the form of premiums for this insurance in the 2020 and
2019 business years, while in the 2019 business year, 3,459 thousand euros in revenue was
received in the form of rebates on previously paid premiums.
Under article 38.5 of the Articles of Association, the company has taken out a third-party liability
insurance policy covering directors and executives. This is a collective policy covering all the
Group’s executives, with a premium of 1,474 thousand euros being paid in 2020.
The company has taken out an accident insurance policy for its directors, encompassing both the
exercise of their functions and their private life, comprising coverage in the event of death, total
and absolute permanent incapacity and severe disability. The premium paid in the business year
amounted to 6 thousand euros.
Except as indicated in the preceding paragraphs, no other remuneration, advance payments,
loans or guarantees were granted to the Board of Directors, nor were any obligations assumed
in terms of pensions and life insurance policies by current and former members of the Board of
Directors.
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Details of Board members who hold posts at companies in which Fomento de Construcciones y
Contratas, S.A. has a direct or indirect ownership interest were as follows:
Name or corporate name of
the director
Company name of the
Group entity
EAC INVERSIONES
CORPORATIVAS, S.L.
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
Position
CHAIRMAN
Name or corporate name of
the director
Company name of the
Group entity
Position
MR ANTONIO GÓMEZ
GARCÍA
FCC AMERICAS, S.A.
DE CV
ALTERNATE DIRECTOR
436
REALIA BUSINESS, S.A.
DIRECTOR
MR PABLO COLIO ABRIL
FCC AQUALIA, S.A.
INMOBILIARIA AEG, S.A.
DE C.V.
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
DIRECTOR
MR GERARDO KURI
KAUFMANN
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
CHIEF EXECUTIVE OFFICER
REALIA BUSINESS, S.A.
CHIEF EXECUTIVE OFFICER
MR JUAN RODRÍGUEZ
TORRES
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
DIRECTOR
FCC AQUALIA, S.A.
DIRECTOR
REALIA BUSINESS, S.A.
NON-EXECUTIVE CHAIRMAN
MR ÁLVARO VÁZQUEZ DE
LAPUERTA
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
DIRECTOR
MR ALEJANDRO ABOUMRAD
GONZÁLEZ
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
FCC AQUALIA, S.A.
FCC SERVICIOS
MEDIOAMBIENTALES
HOLDING, S.A.U.
REPRESENTATIVE OF THE
DIRECTOR INMOBILIARIA AEG, SA
DE CV
DIRECTOR AND CHAIRMAN OF THE
BOARD OF DIRECTORS
CHAIRMAN
BOARD MEMBER, MEMBER OF THE
AUDIT AND CONTROL COMMITTEE,
MEMBER OF THE INVESTMENT
COMMITTEE AND MEMBER OF
THE REGULATORY COMPLIANCE
COMMITTEE
FCC CONSTRUCCIÓN, S.A.
CHAIRMAN
FCC ENVIRONMENT (UK)
LIMITED
FCC MEDIO AMBIENTE
REINO UNIDO, S.L.U.
DIRECTOR
DEPUTY CHAIRMAN
FCC MEDIO AMBIENTE, S.A.
CHAIRMAN
FCC SERVICIOS MEDIO
AMBIENTE HOLDING, S.A.U.
DEPUTY CHAIRMAN
FCC CONCESIONES, S.A.U.
CHAIRMAN
GUZMAN ENERGY O&M, S.L. CHAIRMAN
FCC AUSTRIA ABFALL
SERVICE AG
MEMBER OF THE SUPERVISORY
BOARD
These directors hold posts or exercise functions and/or hold ownership interests of less than
0.01% in any case in other FCC Group companies, in which Fomento de Construcciones y Con-
tratas, S.A. holds the majority of the voting rights, directly or indirectly.
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d) Situations of conflicts of interest
No direct or indirect conflicts of interest arose in respect of the company’s activities, under the
applicable regulations (article 229 of the Spanish Limited Liability Companies Law), without preju-
dice to the company’s transactions with its related parties set forth in these notes to the financial
statements or, where appropriate, agreements related to remuneration matters or appointments.
In this regard, when specific conflicts of interest have taken place with certain directors, they have
been resolved in accordance with the procedure stipulated in the Board of Directors’ Rules, with
the directors involved abstaining from the corresponding debates and votes.
e) Transactions with related parties
During the business year, a number of transactions took place involving companies in which
shareholders of Fomento de Construcciones y Contratas, S.A. own equity interests, the most
significant of which were as follows:
– Execution of construction and service contracts by FCC Construcción, S.A. and FCC Indus-
trial e Infraestructuras Energéticas, S.A.U. relating to companies in the Realia subgroup, as
follows:
Corporate name of the
significant shareholder
Corporate name of the Group
company
Realia Business, S.A.
FCC Construcción, S.A.
Realia Patrimonio, S.L.U.
FCC Industrial e Infraestructuras
Energéticas S.A.U.
Valaise S.L.U.
FCC Construcción, S.A.
2020
23,911
1,397
—
25,308
2019
12,373
1,209
4,899
18,481
– Agreements between FC y C, S.L. Unipersonal and Realia Business, S.A. for the management
and marketing of three real estate developments: Plot “10B” in Badalona, Barcelona, for the
construction of 141 collective dwellings available for resale and parking spaces; Plot “RCL 1B”
in Tres Cantos, Madrid, for the construction of 85 collective dwellings available for resale and
parking spaces: Plot “RLU 2ª” in Tres Cantos, Madrid, for the construction of 30 single-family
homes, for a total amount of 1,954 thousand euros. Signing between FC y C, S.L. Uniper-
sonal and Realia Business, S.A. of the following exclusive marketing contracts: Plot RU2A in
Tres Cantos (marketing of 30 single-family dwellings), Plot RC1B in Tres Cantos (marketing of
85 dwellings available for resale), Plot 10 in Badalona (marketing of 141 collective dwellings
available for resale), Plot in Arroyo Fresno, Madrid (marketing of 144 collective dwellings avai-
lable for resale), Plot in Arroyo Fresno, Madrid (marketing of 42 single-family dwellings), Plot in
El Berzal (marketing of 40 single-family dwellings).
– Service provision agreements between FCC Industrial e Infraestructuras Energéticas, S.A.U.
and Realia Patrimonio, S.L.U. for annual preventive maintenance of generator sets in buil-
dings: Offices on Calle Acanto 22 and 4 units in office buildings at Avda. Del Sur del Aero-
puerto de Barajas, 28, 30, 32 and 34 in Madrid (Eisenhower Business Center in Madrid) for
an amount of 3 thousand euros, basic annual preventive maintenance of the equipment of
the Uninterruptible Power Supply of the buildings: Offices at Paseo de la Castellana 216 in
Madrid; Offices on Calle Acanto 22, and 2 units in office buildings on Avda. Del Sur del Aero-
puerto de Barajas, 28 and 34, Madrid, for an amount of 2 thousand euros.
– Service provision agreement between Fomento de Construcciones y Contratas, S.A. with
Vilafulder Corporate Group, S.L.U. for a total annual amount of 338 thousand euros.
– Service provision contract between Cementos Portland Valderrivas, S.A. and Mr Gerardo Kuri
Kaufmann, for an amount of 175 thousand euros.
–
In the framework of the debt refinancing associated with the Spanish activities of the Cemen-
tos Portland Valderrivas Group in 2016, a subordinated loan agreement was entered into with
Banco Inbursa, S.A., Institución de Banca Múltiple, with carrying amount at 31 December
2020 of 69,857 thousand euros. The finance costs incurred in the business year totalled
2,076 thousand euros.
– Financing provided by the financial group Inbursa to FCC Construcción, S.A. for line 2 of
the Panama underground, through the acquisition of construction certificates, amounting to
3,818 thousand euros.
Furthermore, other transactions are carried out under market conditions, mainly telephone and
internet access services, with parties related to the majority shareholder for a non-significant
amount.
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f) Mechanisms established to detect, determine and resolve possible
conflicts of interests between the parent and/or its Group and its
directors, executives or significant shareholders
21. Other information
FCC Group has established specific mechanisms to determine and resolve any possible conflicts
of interest between the Group companies and their directors, executives and significant sharehol-
ders, as indicated in article 20 and thereafter of the Board of Directors’ Rules.
a) Personnel
The average number of people employed by the company in the 2020 and 2019 business years
was as follows:
20. Environmental information
As indicated in Note 1 to these financial statements, Fomento de Construcciones y Contratas,
S.A. is the parent of FCC Group, which carries out diverse activities that, due to their characteris-
tics, specifically focus on controlling environmental impact. These aspects are described in detail
in the “Corporate Social Responsibility” document published annually by the Group through va-
rious channels, including the www.fcc.es website. Readers are advised to refer to this information
as the best representation of this Note.
Directors and managers
Managers
Technicians
Clerical Staff
Sundry trades
2020
2019
62
36
140
53
4
295
62
35
131
56
3
287
The table below details the average number of people with a disability of 33% or more in 2020
and 2019, pursuant to Royal Decree 602/2016, of 2 December, which introduced new disclosure
requirements for companies’ financial statements:
Technicians
Clerical Staff
Sundry trades
2020
2019
2
2
1
5
2
1
—
3
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The numbers of employees, directors and senior executives at the company at 31 December
2020 and 2019, broken down by gender, were as follows:
b) Remuneration to auditors
439
Men
Women
Total
The fees incurred for auditing and other professional services provided to the company by the
principal auditor, Deloitte, S.L., and other participating auditors in 2020 and 2019 are as follows:
2020
Directors
Senior executives
Directors and managers
Managers
Technicians
Clerical Staff
Sundry trades
2019
Directors
Senior executives
Directors and managers
Managers
Technicians
Clerical Staff
Sundry trades
10
4
37
22
65
16
2
4
—
17
11
63
36
2
156
133
14
4
54
33
128
52
4
289
Men
Women
Total
10
4
39
23
71
18
3
4
—
17
13
71
33
—
168
138
14
4
56
36
142
51
3
306
2020
2019
Principle
auditor
Other
auditors
Total
Principle
auditor
Other
auditors
Total
Audit services
Other assurance
services
Total audit and
related services
Tax advisory services
Other services
Total professional
services
TOTAL
252
22
274
–
–
–
274
–
–
–
8
143
151
151
252
22
274
8–
143
151
425
181
359
540
–
–
–
–
81
81
–
519
519
181
440
621
–
519
519
540
600
1,140
22. Subsequent events
As of the date of preparation of these financial statements, no matters of a nature that could mo-
dify them or be the subject of additional information to that included in them had been disclosed.
The average number of employees, directors and senior executives of the company, distributed
by men and women, was as shown below in the 2020 and 2019 business years:
Men
Women
2020
2019
170
137
307
162
137
299
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440
Annex I Group companies
Company
Assets
Impairment
Holding %
Book value
Asesoría Financiera y de Gestión, S.A.U.
Federico Salmón, 13 - Madrid
-Holding company-
Bvefdomintaena Beteiligungsverwaltung GmbH
Nottendorfer, 11 – Viena (Austria)
-Instrumental-
Cementos Portland Valderrivas, S.A.
Dormilatería, 72 – Pamplona
-Cement-
Egypt Environment Services SAE
El Cairo – Egipto
-Urban sanitation-
FCC Aqualia, S.A.
Federico Salmón, 13 – Madrid
-Water management-
FCC Concesiones, S.A.U.
Avenida Camino de Santiago, 40 – Madrid
-Holding company-
FCC Concesiones de Infraestructuras, S.L.U. Avenida
Camino de Santiago, 40 – Madrid
-Concessions-
FCC Construcción, S.A.
Balmes, 36 – Barcelona
-Construction-
FCC Servicios Medioambiente Holding, S.A.U.
Federico Salmón.13 - Madrid
-Environmental Services-
14,010
–
100
185
185
100
1,016,869
164,977
99.21
7,760
3,277
91,115
61
3
–
2
–
dir. 97.00
indt. 3.00
dir. 41.00
indt. 10.00
100
100
1,752,075
911,525
100
Capital
Reserves
6,843
12,749
35
(1,584)
Profit/(loss) for the 2020
business year
Other net equity
line items
Operating
profit or loss
Continuing
operations
–
–
526
(3,831)
–
(396)
233,955
359,302
14,290
38,223
486
Dividends
received
–
–
–
805
36,400
(Leg)(*)
3,942
–
(5,211)
(Leg)(*)
(3,146)
(Leg)(*)
145,000
325,871
8,289
66,570
112,365
–
–
–
–
3
3
__
(1)
220,000
396,180
–
–
–
–
(2)
(2)
1,819
1,371
18,618
(12,661)
(508)
170,034
300,964
–
100
160,000
10,000
39,892
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Company
FCC TopCo S.à.r.l
48, Boulevard Grande-Duchesse Charlotte Luxembourg
-Holding company-
FCC Versia, S.A.U
Avenida Camino de Santiago, 40 – Madrid
-Management company
FC y C, S.L.U.
Federico Salmón, 13 – Madrid
-Real estate-
Fedemes, S.L.U.
Federico Salmón, 13 – Madrid
-Real estate-
Per Gestora, S.L.U.
Federico Salmón, 13 – Madrid
-Instrumental-
TOTAL
(*) (Leg): Egyptian pounds.
Book value
Assets
Impairment
Holding %
22,263
85
100
62,624
62,624
100
777,761
11,782
–
–
100
100
Dividends
received
–
–
–
–
Capital
Reserves
50
22,154
120
(36,977)
44,613
587,119
10,301
11,440
71,553
71,461
100
66,136
60
(488)
Profit/(loss) for the 2020
business year
Other net equity
line items
Operating
profit or loss
Continuing
operations
–
–
–
–
–
(21)
(26)
(12)
(352)
(3,780)
(13,471)
1,981
1,502
(7)
520
4,129,025
1,214,136
226,941
NOTE:
During the business year, the company made the required notifications, pursuant to Art. 155 of the Consolidated Text of the Capital Companies Act, to the acquired companies where it directly or indirectly holds more than
10%.
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Annex II Temporary joint ventures
442
ALCANTARILLADO MADRID LOTE D
AQUALIA-FCC-VIGO
BOMBEO ZONA SUR
CANGAS DE MORRAZO
CENTRO DEPORTIVO GRANADILLA DE ABONA
CONSERVACION GETAFE
CUERVA WWTP
REINOSA WWTP
SAN VICENTE DE LA BARQUERA WWTP
FCC – ACISA - AUDING
LOTE 4 CULEBRO A
MANCOMUNIDAD DE ORBIGO
NIGRAN
PERIFÉRICO LOTE 3
REDONDELA
SANTOMERA
Holding %
0,01
0.01
1.00
0.01
1.00
1.00
5.00
1.00
1.00
45.00
1.00
1.00
1.00
50.00
0.01
0.01
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Annex III Associates and jointly controlled companies
Company
Book value
Assets
Impairment
Holding %
FM Green Power Investments, S.L.
Paseo de la Castellana, 91 – Madrid
-Energy-
Sigenera, S.L.
Avenida Linares Rivas, 1 bajo – La Coruña
-Management Company-
Suministros de Agua de Queretaro S.A. de C.V.
Santiago de Queretaro (Mexico)
-Water management-
257,090
240,627
377
4,367
–
–
Dividends
received
Capital
Reserves
26,410
54,482
37,345
–
433
321
49
50
dir. 24.00
indt. 2.00
1,002
347,214
(Pm)(*)
407,072
(Pm)(*)
443
Other net
equity line
items
Profit/(loss) for the 2020
business year
Operating
profit or loss
Continuing
operations
–
–
–
62
6
62
7
235,506
(Pm)(*)
127,310
(Pm)(*)
TOTAL
261,834
240,627
27,412
(*) (Pm): Mexican pesos.
NOTE:
During the business year, the company made the required notifications, pursuant to Art. 155 of the Consolidated Text of the Capital Companies Act, to the acquired companies where it directly or indirectly holds more than
10%.
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Management report
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 December 2020
1
2
3
4
5
6
7
8
9
Status of the entity
Business performance and results
Liquidity and capital resources
Major risks and uncertainties
Acquisition and disposal of own shares
Significant events occurring after the end of the year
Outlook
R&D+I Activities
Other relevant information. share performance
and other information
10 Definition of alternative performance measures
according to ESMA Regulations (2015/1415en)
_ 445
_ 448
_ 467
_ 468
_ 469
_ 469
_ 469
_ 471
_ 477
_ 478
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1. Status of the entity
Fomento de Construcciones y Contratas, S.A. is the Parent Company of the FCC Group and
holds direct or indirect ownership of the interests in the Group’s business and activity areas.
Therefore, to provide information on the economic, financial, social and environmental events that
occurred during the year and place them in their proper context, the FCC Group’s Consolidated
Management Report, which includes the consolidated Statement of Non-Financial Information, is
reproduced below. The company’s non-financial information can be found in the aforementioned
report.
1.1. Status of the entity: Organisational structure and decision-
making process in management
The organisational structure of the FCC Group is based on a first level made up of areas, which
are divided into two large groups: operational and functional.
The operating areas include all those activities related to the productive line. The FCC Group has
the following operating areas, as discussed in greater detail in Note 1 of the notes to the consoli-
dated financial statements and in Section 2.1. of the Non-Financial Information Statement:
i. Environmental Services
ii. End-to-End Water Management
iii. Construction
iv. Cement Business
v. Concessions
Each of these operating areas is headed by one or more specialised companies which, depen-
ding on FCC, encompass the Group’s activities.
In addition, there are the functional areas, which carry out support tasks for the operational ones:
1) Administration and Finance: : the Administration and Finance Division comprises the Ad-
ministration, Information Technologies, Finance, Communication, Purchasing and Human Re-
sources areas.
The Administration area directs the administrative management of the FCC Group and has the
following duties, among others, in relation to Information Systems and Internal Control
vi. General accounting
vii. Accounting standardisation
viii. Consolidation
ix. Tax advice
x. Tax procedures
xi Tax compliance
xii. Administrative procedures
2) Internal Audit and Risk Management: ts objective is to provide the Audit and Control Com-
mittee and Senior Management with an independent and objective opinion on the Group’s
ability to achieve its objectives through a systematic and methodological approach for the
assessment, management and effectiveness of internal control and risk management proces-
ses, assessing the effectiveness and reasonableness of the internal control systems, as well
as the functioning of processes according to the procedures, proposing improvements and
providing methodol ogical support to the Division in the process of identifying the main risks
that affect activities and supervising the actions for their management.
3) General Secretary: reporting directly to the Group’s CEO, its main duty is to support the
management of the Group, as well as management support for the heads of the other areas
of FCC, by providing the services detailed in the corresponding sections of the divisions and
departments that make up the Group, which are promoted and supervised by the General
Secretary.
It is made up of the following areas: Legal Advice Department, Quality Management, Corpo-
rate Security and General Services and Corporate Responsibility.
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The areas, on a second level, can be divided into Sectors, the operational ones, and Divisions,
the functional ones, establishing areas that allow greater specialisation when considered ne-
cessary.
The structure of the main decision-making bodies is set out below:
• Board of Directors: is the body that holds the broadest powers, without any limitation,
except those that are expressly reserved, by the Spanish Corporate Enterprises Act or the
Articles of Association, for the jurisdiction of the General Shareholders’ Meeting.
• Audit And Control Committee: its main function is to support the Board of Directors in its
supervisory duties by periodically reviewing the process for preparing economic and finan-
cial information, its internal controls and the independence of the external auditor.
• Appointments and Remuneration Committee: supports the Board of Directors in relation
to proposals for the appointment, re-election, ratification and removal of Directors, establi-
shes and controls the policy for the remuneration of the company’s Directors and senior
managers and the fulfilment of their duties by Directors, particularly in relation to situations
of conflict of interest and related-party transactions.
• Managing Committee: each of the business units has a Managing Committee with similar
duties.
Further information on the duties of the FCC Group’s decision-making bodies is provided in
Section 1 of the Internal Financial Reporting Control System (IFRS) and in Section 2.3 of the
Non-Financial Information Statement.
1.2. Status of the entity: Business model and company strategy
FCC is one of the leading European groups specialising in the environment, water, infrastructu-
re development and management, with a presence in over 30 countries worldwide and nearly
40.3% of its turnover generated in international markets, mainly Europe (28.5%), the Middle East
(4.7%), Latin America (2.8%), North Africa (2.8%) and the United States (1.3%).
Environmental Services
The Environmental Services area has a strong presence in Spain, having maintained a leadership
position in the provision of urban environmental services for over 110 years.
At a national level, FCC provides environmental services in municipalities and bodies in all the
autonomous communities, serving a population of over 22 million inhabitants. Waste collection
and street cleaning are two of the most important services in this sector, representing 64% of
revenue. They are followed, in order of importance, by disposal of wastes with 14%, cleaning and
maintenance of buildings, parks and gardens and, to a lesser extent, sewage. In terms of client
types, more than 86% of the activity is carried out with public clients.
The COVID-19 pandemic has had a very limited impact on the business in 2020, since most of
its services are classified as “essential”, with the focus mainly being on specific problems of falls
in tonnage. Nonetheless, the COV-2020/0173 certification of action protocols, for our activities to
help reduce the spread of COVID-19, has been obtained as a reinforcement measure. We have
also been awarded the seal of the Ministry for Ecological Transition and Demographic Challenge’s
(MITECO) “Register of carbon footprint, offsetting and CO2 absorption projects”.
The international business is mainly conducted in the United Kingdom, Central Europe and the
USA. For years, the Group has held a leadership position in the United Kingdom and Central
European markets in the integrated management of municipal solid wastes, as well as in the
provision of a wide range of environmental services. The various services provided in this sector
include treatment and recycling, disposal, waste collection and the generation of renewable ener-
gy. With a growing emphasis on treatment, recycling and renewable energy generation activities
and a gradual reduction of disposal in controlled landfills.
In Central and Eastern Europe, FCC provides services to a population of 4.8 million inhabitants,
1,360 municipalities and almost 55,000 industrial clients. The range of services provided and the
geographical dispersion is very diverse and balanced. It includes municipal and industrial collec-
tion, mechanical and biological treatment, incineration, landfill, street cleaning, snow clearance,
recycling, outsourcing, building cleaning, soil decontamination works, etc. This broad diversifi-
cation ensures a large degree of business stability and is one of the reasons why the economic
impact of COVID-19 on the organisation has not been so pronounced.
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The Environmental Services area also specialises in the integrated management of industrial and
commercial waste, the recovery of by-products and soil decontamination, through the FCC Ám-
bito brand, which encompasses a group of companies with a wide network of management and
revaluation facilities. All of this enables proper waste management, ensuring the protection of the
environment and people’s health. In 2020, this activity represented just over 7% of all activity.
At an international level, the growth in the US stands out, where urban solid waste collection,
management and treatment activities are carried out. This was the first year of activity in the co-
llection service of Volusia County (Florida) in Daytona Beach, and the one of the largest contract
in the country in Omaha (Nebraska) that will also act as a regional base to open up the Mid-West
market. Despite the delay that COVID-19 has caused in the bidding processes, in the last quarter
of 2020 a resumption of these processes has already been noticed and it is expected that in 2021
there will be a continuation in the growth of the business, the backlog and the geographical ex-
pansion. FCC Environmental Services has managed to position itself, in a very short time, as one
of the main operators in the US, where it already serves more than 8 million people.
As it has already done for a number of years now, the strategy in Spain will focus on maintaining
competitiveness and a leadership position, combining technical knowledge and the development
of innovative technologies, offering respectful, inclusive and sustainable services (combating cli-
mate change and reducing the carbon footprint).
The incorporation of new technologies will enable the company to gain a foothold in the waste
recycling and revaluation markets in Europe and to position itself as a key player in the circular
economy. As far as the United States is concerned, in the coming years the consolidation of the
company’s presence will continue through growth in more residential contracts and the streng-
thening of commercial collection activity.
In general, there is a broad commitment to climate change, for example with the issuance of
green bonds to finance the operation and acquisition of assets developed with the activity.
End-to-End Water Management
FCC Aqualia serves over 23 million users and provides services in over 1,100 municipalities in
21 countries, offering the market all the solutions for the needs of public and private entities and
organisations in all stages of the end-to-end water cycle and for all uses: human, agricultural or
industrial.
FCC Aqualia’s activity focuses on concessions and services, including distribution network con-
cessions, BOT (“Build-Operate-Transfer”), operation and maintenance services and irrigation, as
well as technology and network activities, including EPC (“Engineering-Procurement-Construc-
tion”) contracts and industrial water treatment activities.
In 2020 the market in Spain represents 66% of revenue. The impact of the pandemic has led to
a 2.4% drop in the volumes of water billed and 1.4% in the amounts, with particular incidence in
tourist and coastal areas. The reduction in the volume of consumption has been partially offset
by an improvement in Operation and Maintenance (O&M) activities, efficiency improvements in
operations and a greater volume of execution of various works related to concession contracts.
In the public sector, there is still a low level of bidding for hydraulic infrastructure concessions,
which increases the deficit in the renovation and expansion of existing infrastructure. Despite this,
tenders have been won and contracts have been extended for the end-to-end cycle concessions;
such as that in Vigo, FCC Aqualia’s largest contract. The contract renewal loyalty rate remains at
very high levels (close to 100%) in those municipalities where it operates In addition, Aqualia has
worked hard to expand its presence in the O&M and facilities market (WWTP, DWTP, desalination
and network management).
The international market reached a turnover of 34%. FCC Aqualia focuses its activity in Europe,
North Africa, the Middle East and the Americas, with ongoing contracts in more than 15 countries
at present.
The year 2020 also presented an operational challenge for Aqualia throughout Europe due to the
impact of COVID-19 on end-to-end water cycle management. Despite the impact on non-resi-
dential consumption, which was more marked in the Czech Republic, the business remained at
very high levels in terms of activity, quality and continuity of service. In addition to the management
of the municipal concession services in the Czech Republic, Italy and Portugal, works were also
carried out to integrate the new business in France.
FCC Aqualia seeks to maintain its competitive position in those comprehensive water mana-
gement markets where it has an established presence (Europe) and to take advantage of the
opportunities that arise in this activity. In other expanding markets, it plans to boost growth via
BOT and O&M (North Africa, Latin America and the Middle East), along with comprehensive cycle
management, while the study of possibilities in others (such as the USA) will continue. In addition,
FCC Aqualia will use its extensive experience in comprehensive water cycle management for
business opportunities in countries with a stable political and social balance.
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Construction
FCC Construcción focuses its activity on the design, development and construction of large civil,
industrial and building infrastructure projects. The presence in public works of complex elements
such as railways, tunnels and bridges stands out, which together with those involving installation
and industrial maintenance, form a large part of the activity.
2. Business performance and results
2.1. Operating performance
Its teams have the experience, technical training and innovation to participate in the entire project
value chain, from the definition and design, to its complete execution and subsequent operation.
2.1.1. Significant events
In 2020, 47% of the total income comes from abroad, namely the execution of large infrastructure
works such as lines 4, 5 and 6 of the Riyadh Metro, Haren prison complex (Belgium), line 2 of the
Lima Metro, Grangegorman University (Dublin-Ireland), the A-9 motorway Badhoevedorp-Holen-
drecht (Netherlands), the Bacau airport runway (Romania) and the Gurasada-Simeria railway line
(Romania) – Sectors 2a, 2b and 3.
Highlights in the 2020 business year, were the awarded contracts for the design, construction
and maintenance of section 2 of the Maya Train (Mexico) for an amount of 339.2 million euros,
the extension of the A-465 motorway in Wales (UK) for an amount of 667 million euros, the design
and construction of the E-6 Ulsberg-Vidasliene motorway (Norway) for an amount of 238.8 million
euros, as well as the construction of the Mapocho Río Park (Chile) for an amount of 53.8 million
euros.
Cement
The FCC Group carries out its cement activity through the Cementos Portland Valderrivas Group.
Its main activity is the manufacturing of cement, which in 2020 accounted for approximately 91%
of the Group’s total income. The remaining percentage was contributed by the concrete, mortar
and aggregates businesses.
In terms of geographical diversification, by 2020, 38% of income came from international markets.
The Cementos Portland Valderrivas Group is present in Spain, Tunisia and the United Kingdom.
In addition, the Group also exports from these three countries to Africa, Europe and America.
The Cementos Portland Valderrivas Group has a leading position both in its main market, Spain,
and in the Tunisian market.
The main objective of the Cementos Portland Valderrivas Group is to maintain a competitive edge
both regarding costs and in the markets in which it operates, seeking to remain a leader in the
sector in all the countries in which it is present.
FCC Medio Ambiente is the most highly rated company
for the Barcelona cleaning and collection contract
Last October, FCC Medio Ambiente was the highest-rated company in terms of technical criteria
in the tender for the cleaning and waste collection for the city of Barcelona. In this tender, the
ie-Urban, a new internally developed, 100% electric, modular chassis-platform electric collection
truck, played a key role in the proposal to enhance urban sustainability and minimise environmen-
tal impact. If this award is confirmed, the contract will represent more than 800 million euros in
revenues not included in the backlog at the end of 2020.
FCC Aqualia renews several end-to-end water cycle contracts in Spain
Among the various renewals obtained, last December the municipality of Vigo approved the con-
cession to FCC Aqualia of a five-year extension of the supply and sanitation management con-
tract, for 259.6 million euros. This expansion is linked to the implementation of an investment
plan that will improve the current high levels of service. In addition, all the renewals obtained have
allowed us to enjoy a good loyalty rate in 2020, which remains at very high levels (close to 100%).
The operational stability of this area resulted in a “positive” annual credit rating perspective on
behalf of Fitchratings, obtained last July.
FCC Construcción will build a new hospital in the United Kingdom for 590 million euros
Last September, a consortium in which FCC Construcción participates was awarded the contract
for the design and construction of a new hospital in Jersey. The design is valued at 26.4 million
euros and the execution period will be one and a half years. The construction phase will then
begin, valued at a further 550 million euros.
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Among other important projects, the company was awarded the E6 motorway in Norway for
238.8 million euros, which includes the design and construction of a new 25-kilometre section of
the E6 motorway, with an execution period of 47 months. Special mention should go to the award
this year of the design, construction and maintenance of section 2 of the Maya Train (Mexico),
jointly with Carso Infraestructuras y Construcción. The project consists of a 200-kilometre section
valued at close to 700 million euros with an execution period of 28 months to which a further five
years of maintenance has been added.
a stake in 14 transport infrastructure concessions. When signed, the agreement will mean the
transfer of 51% in the Cedinsa Group, which manages the concession of four dual carriageways
in Catalonia, 49% in Ceal 9, the concessionaire of the stations on section 1 of line 9 of the Barce-
lona Metro, and 29% in Urbicsa, the operator for the Ciudad de Justicia (City of Justice), also in
Barcelona. The price to be paid by Vauban for all of FCC’s stakes in these concessions amounts
to 409.3 million euros, enabling the deconsolidation of 690.7 million euros of net financial debt
at the close of the third quarter and will improve the Group’s treasury position. The closure of the
agreement is pending obtaining the usual authorisations for this type of transaction.
FCC Medio Ambiente finalises the entry of a minority financial partner in the UK
Last July, an agreement was reached with the investment group Icon Infrastructure Partners for
the purchase of 49% of the capital of the new subsidiary company Green Recovery Projects
Limited (GRP), header and owner of five energy recovery plants (“EfW”) of FCC Medio Ambiente
subsidiary in the United Kingdom (located in Kent, Nottinghamshire, Buckinghamshire, Edinburgh
and Lincolnshire), for an amount totalling 198 million pounds sterling. This meant an enterprise
value of the company, at 100%, of 650 million pounds including its debt. The transaction was
completed last November.
The head of the area, FCC Servicios Medio Ambiente Holding, maintains control of GRP and its
global consolidation, as well as a 50% stake in the incinerator in Mercia and a 40% stake in the
one in Lostock.
FCC as licensee for the construction and operation of a motorway in the United Kingdom
FCC, through its company FCC Concesiones, has been selected for the extension of the A465
motorway in Wales (United Kingdom). FCC is part of the Future Valleys consortium along with
other local and international partners in the project, which will be developed under the PPP mo-
del. The project is key to improving connectivity and development in the region and has a planned
investment of more than 600 million euros.
FCC has agreed to the sale of certain infrastructure
concessions for more than 400 million euros
On 3 October, FCC agreed to sell its entire stake in three concessions located in Spain to Vau-
ban Infrastructure Partners, within its policy of rotation and selective development of projects in
this activity. These three concessions are included in the portfolio of the FCC Group, which has
2.1.2. Executive Summary
•
In 2020 as a whole, the FCC Group achieved 6.158 million euros in revenues, 1.9% lower
than in 2019. This sustained level of revenues was supported by the good performance of the
Utilities activities (Environment and Water), thanks to their being considered essential services,
which alleviated the decline in the Construction and Cement areas, which were affected by
the restrictions taken by the government since last March to combat the health crisis. This
is in addition to a higher contribution of revenues in Concessions due to the change in the
consolidation method of the concession company Cedinsa.
• Gross operating profit increased by 2.1%, reaching 1.047.5 million euros. This increase is due
to the higher contribution in the Concessions area, together with the increase in profits from
the sale of surplus emission rights in the Cement area, which offset the fall in Construction.
Adjusted for the sale of CO2 rights, Ebitda for the business year was only 3.1% lower than the
previous year.
• Attributable net income reached 262.2 million euros, 1.7% lower than the previous business
year. Again, as throughout the business year, it includes the differential behaviour of the ex-
change differences recorded, -51.3 million euros this year compared with a positive contribu-
tion of 14.8 million euros in 2019.
• The Group’s financial debt fell by 21.8% compared to the end of the previous year, mainly due
to the exclusion of the debt linked to the transport infrastructure concession assets, the sale
of which was agreed last October, from the GRP minority stake sale in UK, and the early partial
repayment of the debt linked to the Cement area. As a result, the net financial debt balance
amounted to 2.797.8 million euros in December 2020.
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450
• Net assets increased substantially by 17.6% to 2.908.7 million euros at business year-end,
thanks to the stability of net profit and the very high percentage of shareholders who once
again chose to reinvest their annual scrip dividend in new shares in the entity.
• At the end of December 2020, the Group’s revenue portfolio stood at 29.411.7 million euros,
which still does not include significant contracts provisionally awarded mainly in the Environ-
ment area.
KEY FIGURES
(Millions of Euros)
Net turnover (NT)
Gross Operating Profit (EBITDA)
EBITDA Margin
Net Operating Profit (EBIT)
EBIT Margin
Income attributable to the parent company
Equity
Net financial debt
Backlog
Dec. 20
Dec. 19
Chg. (%)
6,158.0
1,047.5
17.0%
572.7
9.3%
262.2
2,908.7
2,797.8
6,276.2
1,025.8
16.3%
511.6
8.2%
266.7
2,473.8
3,578.7
29,411.7
31,038.4
-1.9%
2.1%
0.7 p.p
11.9%
1.1 p.p
-1.7%
17.6%
-21.8%
-5.2%
2.1.3. Summary by business area
Area
Dec. 20
Dec. 19
Chg. (%)
% s/ 20
% s/ 19
(Millions of Euros)
REVENUE BY BUSINESS AREA
Environment
Water
Construction
Cement
Concessions
2,888.2
2,915.2
1,188.3
1,186.9
1,611.0
1,719.3
-0.9%
0.1%
-6.3%
-7.4%
382.6
123.5
413.2
49.8
148.0%
Corporate serv. and others
(35.6)
(8.2)
n/a
46.9%
19.3%
26.2%
6.2%
2.0%
-0.6%
46.4%
18.9%
27.4%
6.6%
0.8%
-0.1%
Total
6,158.0
6,276.2
-1.9%
100.0%
100.0%
REVENUE BY GEOGRAPHICAL AREA
Spain
3,672.3
3,465.6
Rest of Europe and Others
United Kingdom
Middle East & Africa
Czech Republic
Latin America and USA
Total
EBITDA
Environment
Water
Construction
Cement
Concessions
Corporate serv. and others
803.0
668.6
467.4
285.2
261.5
733.9
734.9
576.8
286.8
478.2
6.0%
9.4%
-9.0%
-19.0%
-0.6%
-45.3%
59.6%
13.0%
10.9%
7.6%
4.6%
4.2%
55.2%
11.7%
11.7%
9.2%
4.6%
7.6%
6,158.0
6,276.2
-1.9%
100.0%
100.0%
450.9
282.9
53.6
139.9
94.6
25.6
492.5
281.7
100.2
86.4
31.8
33.2
-8.4%
0.4%
-46.5%
61.9%
197.2%
-22.9%
43.0%
27.0%
5.1%
13.4%
9.0%
2.4%
48.0%
27.5%
9.8%
8.4%
3.1%
3.2%
Total
1,047.5
1,025.8
2.1%
100.0%
100.0%
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(Millions of Euros)
2.1.4. Income Statement
451
Area
Dec. 20
Dec. 19
Chg. (%)
% s/ 20
% s/ 19
OPERATING PROFIT/(LOSS)
Environment
Water
Construction
Cement
Concessions
Corporate serv. and others
215.7
167.4
20.9
106.8
55.4
6.5
258.5
180.2
77.3
(20.0)
12.0
3.6
-16.6%
-7.1%
-73.0%
n/a
n/a
80.6%
37.7%
29.2%
3.6%
18.6%
9.7%
1.1%
50.5%
35.2%
15.1%
-3.9%
2.3%
0.7%
Total
572.7
511.6
11.9%
100.0%
100.0%
101.6
(12.8)
-893.7%
3.6%
-0.4%
1,330.2
1,332.2
1,177.6
1,214.5
0.0
173.7
14.7
0.0
293.0
751.8
-0.2%
-3.0%
n/a
-40.7%
-98.0%
47.5%
42.1%
0.0%
6.2%
0.5%
37.2%
33.9%
0.0%
8.2%
21.0%
2,797.8
3,578.7
-21.8%
100.0%
100.0%
Net turnover (NT)
Gross Operating Profit (EBITDA)
EBITDA Margin
(Millions of Euros)
Dec. 20
Dec. 19
Chg. (%)
6,158.0
1,047.5
17.0%
6,276.2
1,025.8
-1.9%
2.1%
16.3%
0.7 p.p
Provision for amortisation of fixed and non-current assets
(488.9)
(458.4)
6.7%
Other operating income
Net Operating Profit (EBIT)
EBIT margin
Financial income
Miscellaneous financial results
P/L of companies accounted for by the equity method
Profit/(loss) before tax from continuing activities
Company tax on profits
Income from continuing operations
Net Income
Non-controlling interests
Income attributable to the parent company
2.1.4.1. Net Revenue
14.1
572.7
9.3%
(55.8)
-125.3%
511.6
8.2%
11.9%
1.1 p.p
(154.0)
(144.7)
6.4%
(51.1)
1.5
-3506.7%
62.1
429.9
120.6
489.0
-48.5%
-12.1%
(86.3)
(149.1)
-42.1%
343.6
343.6
(81.4)
262.2
339.9
339.9
(73.2)
266.7
1.1%
1.1%
11.2%
-1.7%
9,184.3
10,366.2
-11.4%
15,025.9
15,018.3
5,155.8
5,623.2
45.7
30.7
29,411.7
31,038.4
0.1%
-8.3%
49.0%
-5.2%
31.2%
51.1%
17.5%
0.2%
33.4%
48.4%
18.1%
0.1%
100.0%
100.0%
Consolidated Group income amounted to 6.158 million euros for the entire year, 1.9% lower than
in the previous year. All activities reflect, to a varying degree, the measures decreed by govern-
ments since the middle of last March in most of the countries in which the Group operates to ad-
dress the health crisis caused by COVID-19. However, the Concessions area recorded an increa-
se in its contribution as a result of the acquisition of a majority in the Cedinsa group in November
last year, together with very stable performance experienced in the Water and Environment areas
due to its clear nature as an essential service for its customers.
NET FINANCIAL DEBT
With Recourse
Without Recourse
Environment
Water
Construction
Cement
Concessions
Total
BACKLOG
Environment
Water
Construction
Real Estate
Total
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According to the different business areas, the largest contributor, Environment, has enjoyed sus-
tained performance levels, recording a slight contraction in revenues of 0.9%, centred on the
impact of lower volumes in the waste treatment area in the United Kingdom. This, however, is
combined with the good performance in the waste collection, treatment and street cleaning acti-
vity in most geographical areas, with a greater contribution from the USA.
Revenues in the Water area remained stable, with an increase of 0.1%, due to the greater contri-
bution of the new concession contracts incorporated abroad, which compensated for the lower
activity in Technology and Networks due to the slower pace of execution of construction projects,
also mainly in the international area.
In Construction, turnover declined by 6.3%, due to delays and project stoppages caused by strict
lockdown measures, mainly in Latin America and the Middle East. In Spain and Europe, a higher
level of activity in new contracts remained stable, which largely made it possible to compensate
for the stoppage intervals registered in the year in this geographical area.
By business area in Spain, revenues increased their contribution by 6% to 3.672.3 million euros.
Environment had an increase of 0.8%, due to stability in the municipal waste management cycle
as a whole, which compensated for the decrease in non-essential urban services in certain pe-
riods due to the measures taken by the government to combat the pandemic. Water recorded
a 2.5% decline due to a slight reduction in amounts invoiced as a result of a drop in activity
in non-residential customers, together with lower contribution from Technology and Networks
associated with concessions. The Construction area rose by a remarkable 27.6%, where the
good pace in the development of projects awarded in the previous year allowed it to overcome
the effect of the reduced activity recorded between March and May. Similarly, the Cement area,
which was affected in the same period by the restriction measures, leading to a decrease in the
amounts invoiced, partially recovered its pace of activity, with a drop of 4.6% for the year as a
whole. Lastly, it is worth mentioning the increase in the contribution of the Concessions area, up
to 121.5 million euros, due to the effect of incorporating the Cedinsa subgroup into the scope
using the full consolidation method.
Likewise, in the Cement area, revenues decreased by 7.4%, due to lower volumes shipped in the
local markets of Spain and Tunisia, mainly in the months of March and April, which was partially
offset by the recovery recorded in the last months of the year.
Revenue Breakdown by Geographical Area
Spain
Rest of Europe and Others
United Kingdom
Middle East & Africa
Czech Republic
Latin America and USA
Total
Dec. 20
3,672.3
Dec. 19
3,465.6
803.0
668.6
467.4
285.2
261.5
733.9
734.9
576.8
286.8
478.2
6,158.0
6,276.2
(Millions of Euros)
Chg. (%)
6.0%
9.4%
-9.0%
-19.0%
-0.6%
-45.3%
-1.9%
In the Czech Republic, there was a small reduction of 0.6% due to a fall in the exchange rate
during the period (-2.9%), with very stable operating conditions both for Environment and Water.
In the United Kingdom, revenues generated mostly in the Environment area fell by 9% to 668.6
million euros, due to lower volumes in the tertiary waste treatment and reduction business, linked
to lockdown measures due to the health crisis and a lower contribution from the Edinburgh treat-
ment and recovery plant following the completion of its construction phase in the middle of the
previous year.
The Middle East and Africa area saw its revenues reduced by 19%, mainly due to the effect of
the strict lockdown measures in those countries where the Construction area operates. This was
mainly in Saudi Arabia, and which mitigated a higher activity in the Water area, both due to the
contribution of two companies acquired in Saudi Arabia and to the increased activity in Techno-
logy and Networks.
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Revenues in Latin America and the US dropped by 45.3%, due to the slower pace of project
execution in both Construction and Water, again as a result of the effect of the strict lockdown
measures implemented to tackle the pandemic. However, in the United States, revenues, con-
centrated in the Environment area, increased significantly due to the entry into operation of new
contracts in Florida for municipal waste collection services, an essential service activity that avoi-
ded the effects caused by lockdowns and their impact on certain economic activities.
% Revenue by Geographical Area
59.6% Spain
10.9% UK
13.1% Rest of Europe & Other
7.6% Middle East & Africa
4.2% Latin America & USA
4.6% Czech Republic
2.1.4.2. Gross Operating Profit (EBITDA))
The Gross Operating Profit for the year was 1.047.5 million euros, an increase of 2.1% compared
to the previous year. This increase is largely down to the combination of the higher result from
the sale of emission rights in the Cement area together with the increased contribution from the
Concessions area and the sustained performance of the Water area.
By business area, the most noteworthy developments have been:
Environment decreased by 8.4% to 450.9 million euros, due to lower volumes in treatment plants
and waste reduction, mainly in the United Kingdom, together with the lower price of generated
electricity and other by-products and higher expenses associated with scheduled maintenance
shutdowns and extraordinary repairs.
The Water area reached 282.9 million euros, similar to that generated in the previous year, su-
pported by an increased contribution of the concessions and services activity due to the incor-
poration of new contracts which offset the reduced contribution of the Technology and Networks
activity. Overall, the operating margin remained at a similar level (23.8% for the year).
In Concessions, the differential contribution from the Cedinsa concession group, which amounted
to 75.3 million euros, drove up EBITDA to 94.6 million euros. This is compared to 31.8 million
euros in the previous year, when it only contributed to profit for two months.
Meanwhile, the Construction area suffered more strongly from the impact of the aforementioned
general restriction measures. So it totalled 53.6 million euros, compared to 100.2 million euros in
the previous year, mainly as a result of a downturn in activity in some countries in the international
area and the cost structure associated with the projects, with a 3.3% reduction in margins in the
year.
In Cement, it is worth mentioning the contribution from the sale of CO2 rights, totalling 58.9 million
euros compared to 5.8 million euros in the previous year. This, together with a significant drop in
the cost of energy, led to a remarkable 61.9% increase in Ebitda for the period.
% EBITDA by Business Area
43.0% Environment
27.0% Water
13.4% Cement
5.1% Constrution
9.0% Concessions
2.5% Corporate
As a result of the performance in several utilities areas, Environment and Water (together with
Concessions) maintained a high contribution to operating profit reaching 79.1% for the period,
compared to 20.9% from those linked to demand for the construction of infrastructure, building
and other activities.
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2.1.4.3. Net Operating Profit (EBIT)
2.1.4.4.3. Profit/(loss) of equity-accounted affiliates
Net operating profit amounted to 572.7 million euros, 11.9% more than in the previous year. Ebit
reflects the effect of the development of the gross operating profit together with two components.
Firstly, the higher provision for amortisation corresponding to the transport concession assets
assigned to the operating activity following their entry into consolidation at the end of 2019, as
well as a contribution from other operating income of 14.1 million euros this year compared to
-55.8 million euros the previous year due to the impairment of 70 million euros that was made to
the value of goodwill of the cement activity in 2019.
2.1.4.4. Earnings before Taxes (EBT) from continuing operations
Profit before tax for continued activities stood at 429.9 million euros, 12.1% down on 2019, due
to the fact that positive developments in operational processes were accompanied by a sustained
negative impact on the exchange rate in 2020 compared to the positive contribution it made in
the previous year. In addition, lower profits were generated by companies accounted for using
the equity method, due to the change in the consolidation method of the Cedinsa subgroup
mentioned above.
2.1.4.4.1. Financial income
The financial result amounted to -154 million euros, compared to -144.7 million euros in the
previous business year. The increase is mainly due to higher project finance expenses in the
Concessions area of the Cedinsa subgroup, since its entry into consolidation in November 2019.
2.1.4.4.2. Miscellaneous financial results
This epigraph includes an amount of -51.1 million euros this year, compared with -1.5 million
euros last year. The difference is mainly due to the impact from developments in the exchange
rate for certain currencies, with negative exchange differences amounting to -51.3 million euros
recorded in this year compared to +14.8 million euros recorded for the previous year.
The contribution from co-managed and investee companies amounted to 62.1 million euros,
compared to 120.6 million euros the previous business year. This is mainly due to the effect of
the change to full consolidation of the Cedinsa subgroup, mentioned above, and the decreased
contribution due to the completion of certain projects in Construction.
2.1.4.5. Income attributable to the parent company
The net attributable profit for the year was 262.2 million euros, a slight decrease of 1.7% com-
pared to 2019. This profit is accounted for by the contribution to EBT from the following items:
A corporate income tax expense of -86.3 million euros, in line with the profit before tax obtained,
together with profit attributable to minority shareholders of 81.4 million euros compared to 73.2
million euros the previous year, mainly concentrated in the Water area (with 67.9 million euros) and
largely reflecting the participation of a minority shareholder in this area.
2.1.4.6. Profit and loss statement figures on a pro rata basis
The most significant figures in the income statement, calculated on the basis of the percentage
of effective shareholding in each of the subsidiaries, joint ventures and associates, are as follows.
Net turnover (NT)
Gross Operating Profit (EBITDA)
EBITDA Margin
Net Operating Profit (EBIT)
EBIT margin
Income attributable to the parent company
Dec. 20
6,132.6
1,032.7
16.8%
567.7
9.3%
262.2
Dec. 19
6,368.5
1,132.4
17.8%
597.4
9.4%
266.7
Chg. (%)
-3.7%
-8.8%
-0.9 p.p
-5.0%
-0.1 p.p
-1.7%
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2.1.5. Balance Sheet
2.1.5.1. Investments accounted for using the equity method
455
Intangible fixed and non-current assets
fixed and non-current assets/Property, Plant and Equipment
Equity-accounted affiliates
Non-current financial assets
Deferred tax assets and other non-current assets
Non-current assets
Non-current assets held for sale*
Inventory
Trade and other receivables
Other current financial assets
Cash and cash equivalents
Current assets
TOTAL ASSETS
(Millions of Euros)
Dec. 20
Dec. 19
Chg. (Mn€)
2,437.9
2,810.2
722.8
580.9
578.7
7,130.4
1,392.3
765.6
3,458.4
2,866.5
741.5
863.2
599.9
(1,020.5)
(56.3)
(18.7)
(282.3)
(21.2)
8,529.6
(1,399.2)
0.0
1,392.3
728.8
2,095.6
1,907.7
228.7
1,222.1
5,704.2
189.6
1,218.5
4,044.6
36.8
187.9
39.1
3.6
1,659.6
12,834.6
12,574.1
260.5
Equity attributable to shareholders of the parent company
2,288.3
1,951.3
Non-controlling interests
Equity
Subsidies
Non-current provisions
Long-term financial debt
Other non-current financial liabilities
Deferred tax liabilities and other non-current liabilities
Non-current liabilities
Liabilities relating to non-current assets held for sale*
Current provisions
Short-term financial debt
Other current financial liabilities
Trade and other payables
Current liabilities
TOTAL LIABILITIES
* See epigraph 5.2
337.0
97.9
434.9
(140.8)
(65.8)
(905.4)
(147.6)
(6.3)
620.4
522.5
2,908.7
2,473.8
333.8
1,130.2
4,448.7
581.6
303.0
193.0
1,064.4
3,543.3
434.0
296.7
5,531.3
1,051.3
195.2
705.2
169.2
2,273.7
4,394.6
6,797.2
(1,265.9)
0.0
1,051.3
249.6
538.2
145.4
2,370.0
3,303.2
(54.4)
167.0
23.8
(96.3)
1,091.4
12,834.6
12,574.1
260.5
The epigraph entitled investments accounted for using the equity method amounted to 722.8
million euros at the end of the year, with the following breakdown of the most significant invest-
ments in equity:
1) 278.1 million euros for the 36.9% stake in Realia.
2) 74.3 million euros for participation in various transport infrastructure and equipment conces-
sions.
3) 102.3 million euros for the stake in companies in the Environment area (recycling and munici-
pal services, mainly in Spain and the United Kingdom).
4) 35.2 million euros for stakes in companies in the Water area, largely concessionary companies
managing services abroad (North Africa and Mexico).
5) 35.5 million euros from the subsidiaries of the parent company in the Cement area.
This epigraph also includes a further 197.4 million euros for the remaining investments in own
funds for other participations together with loans granted to subsidiaries.
2.1.5.2. Assets held for sale
This epigraph is included in current assets, for an amount of 1.392.3 million euros, with its corres-
ponding counterpart in liabilities, all of the assets corresponding to certain participations in the
concessions activity whose sale was agreed in the third quarter of the business year and until it
leaves the consolidated perimeter when the transaction is closed.
2.1.5.3. Cash, cash equivalents and available lines of credit
The balance for the Cash and cash equivalents epigraph amounted to 1.222.1 million euros as
at the end of the business year, with 72.9% for companies and non-recourse perimeters and the
remaining 27.1% for the Group’s parent company and its recourse perimeter.
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The cash balance has remained very stable and in line with the previous year, so that together with
the available lines of credit, at business year-end the FCC Group had:
2.1.5.5. Financial debt
1) In the recourse perimeter, cash and equivalents of 330.6 million euros and lines of credit of
473.4 million euros, totalling 804 million euros.
2) In the non-recourse perimeters, cash and equivalents of 891.5 million euros and lines of credit
of 389.8 million euros, totalling 1.281.3 million euros.
This took the FCC Group’s total for cash, cash equivalents and available lines of credit at the
end of the business year to 2.085.3 million euros, compared to a total short-term financial debt
(maturing before 12 months) at the same date amounting to 705.2 million euros. This represents
a volume of three times the amount of existing maturities until 31 December 2021.
Epigraph 5.5 details the nature and amounts of short-term financial debt for a better understan-
ding of the Group’s financial position in the short term.
2.1.5.4. Equity
Equity at business year-end amounted to 2.908.7 million euros, compared with 2.473.8 million
euros at the end of the previous business year. This substantial increase is mainly due to the con-
tribution of net attributable profit of 262.2 million euros achieved in the year and to a lesser extent
to the increase in non-controlling interests up to 620.4 million euros.
Bank borrowings
Debt instruments and other loans
Payables due to financial leases
Other financial liabilities
Gross Financial Debt
Treasury and other current financial assets
Net Financial Debt
Net financial debt with recourse
Net financial debt without recourse
Dec. 20
Dec. 19
Chg. (Mn€)
(Millions of Euros)
820.0
3,230.3
50.2
148.0
4,248.5
(1,450.7)
2,797.8
101.6
2,696.2
1,474.7
3,125.0
63.8
323.4
4,986.9
(1,408.2)
3,578.7
-12.8
3,591.5
(654.7)
105.3
(13.6)
(175.4)
(738.4)
(42.5)
(780.9)
114.4
(895.3)
With regard to gross financial debt, 16.6% has short-term maturity, equivalent to 705.2 million eu-
ros. 449.4 million of these relates to marketable securities, largely commercial paper issued on the
Irish Stock Exchange by the Group’s parent company and the Environment area. A further 212.4
million euros is due to various credit lines with banks, including both bilateral corporate financing
and non-recourse projects, and another 43.4 million euros of financial debt with third parties.
Almost all of the net financial debt is without recourse and is allocated to business areas, totalling
2.696.2 million euros at the end of the business year. The parent company had a net debt position
of 101.6 million euros, only 3.6% of the Group’s total.
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Breakdown of Net Financial Debt without recourse by Business Area
2.1.6. Cash Flow
49.3% Environment
43.7% Water
0.6% Concessions
6.4% Cement
Net financial debt without recourse to the Group’s parent company is structured as follows:
(i) The Water area accounts for of 1.177.6 million euros, of which, in addition to corporate bond
financing in the parent company, another 189.9 million euros correspond to the Czech Republic
business, and the rest to various concessions of the end-to-end water cycle; (ii) the Cement area
accounts for 173.7 million euros; (iii) the Environment area accounts for 1.330.2 million, most of
which corresponds to long-term bonds issued at the end of 2019 by the area’s parent company,
another 167.2 million euros correspond to the activity in the United Kingdom, and the rest, 55
million euros, to financing three waste processing and recycling plant projects in Spain; (iv) 14.7
million euros is accounted for by the concessions area, after deconsolidation amounting to 698.5
million euros, corresponding to the Cedinsa concessionary group’s project debt.
(Millions of Euros)
Dec. 20
Dec. 19
Chg. (%)
Gross Operating Profit (EBITDA)
1,047.5
1,025.8
(Increase)/decrease in working capital
Corporate income tax (paid)/received
Other operating cash flow
Operating cash flow
Investment payments
Divestment receipts
Other investing cash flows
Investing cash flow
Interest paid
(Payment)/receipt of financial liabilities
Other financing cash flow
Financing cash flow
Exchange differences, change in consolidation scope, etc.
Increase/(decrease) in cash and cash equivalents
(302.0)
(96.7)
(43.7)
605.1
(541.2)
75.9
63.8
(401.5)
(151.4)
(142.6)
155.6
(138.4)
(61.5)
3.6
(183.3)
(173.0)
(39.0)
630.5
(546.6)
28.5
158.9
(359.2)
(136.8)
(97.4)
(111.5)
(345.7)
26.8
(47.7)
2.1%
64.8%
-44.1%
12.1%
-4.0%
-1.0%
166.3%
-59.8%
11.8%
10.7%
46.4%
n/a
-60.0%
n/a
n/a
2.1.5.6. Other current and non-current financial liabilities
2.1.6.1. Operating cash flow
The epigraph of other current and non-current financial liabilities totals 603.2 million euros at the
end of the business year. Its balance mainly includes the item suppliers of fixed and non-current
assets for operating leases amounting to 394.9 million euros. It also includes other liabilities that
are not financial liabilities, such as those associated with hedging derivatives, suppliers of fixed
and non-current assets, guarantees and deposits received.
The operating cash flow generated during the business year amounted to 605.1 million euros,
4% less than in the previous business year. Operating working capital was up 302 million euros
compared to 183.3 million in the last business year, largely due to the elimination of the balance
of non-recourse loan assignments in the Environment area in order to optimise the financial cost.
The epigraph collections/(payment) of company tax shows an outflow of 96.7 million euros com-
pared to 173 million euros at the end of the previous business year. This difference was due to
the payment of 92.1 million euros in the previous year to adjust the tax incentives applied by the
Group in previous business years.
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The epigraph other operating cash flow includes an outflow of 43.7 million euros compared to 39
million euros the previous business year, due to the application of provisions mainly in the Cons-
truction and Environment area.
The breakdown of net investments by business area, excluding other cash flows from investment
activities, in terms of payments and receipts, is as follows:
458
2.1.6.2. Investing cash flow
The investment cash flow represents an application of 401.5 million euros compared to 359.2
million euros in the previous business year. In the Environment area, in Spain, the investment for
the construction of the Loeches treatment plant in Madrid, for an amount of 54.6 million euros,
stands out. In the international area, among the most significant investments is the one made in
the United Kingdom for the development of the Lostock energy recovery plant for 49.4 million
euros. In the USA, the investment in the contract for the collection of municipal solid wastes in
Omaha, Nebraska, worth 34 million euros, is also worth mentioning.
In the Water area, of particular note are the payments for investments corresponding to the ac-
quisition in Saudi Arabia of 51% of the companies Qatarat and Haaisco, for a combined amount
of 16.1 million euros, as well as the payment of 14.1 million euros for the acquisition of three end-
to-end water cycle companies in the region of Córdoba, in the north of Colombia. In Spain, 23
million euros were invested in the Rambla Morales desalination plant in Almería.
Proceeds from disposals amounted to 75.9 million euros compared to 28.5 million euros the
previous business year, including 30.8 million euros corresponding to the sale of 49% of the long-
term loan of the Edinburgh incineration plant to the investment group iCON, once the sale of 49%
of the capital of the new subsidiary company Green Recovery Projects Limited to this group had
been completed.
Dec. 20
Dec. 19
Chg. (Mn€)
(Millions of Euros)
Environment
Water
Construction
Cement
Concessions
Corporate serv. etc. & adjustments
(283.1)
(134.1)
(7.6)
(10.4)
(24.9)
(5.2)
(301.2)
(124.5)
30.5
(8.3)
(59.0)
(55.6)
Net investments (Payments - Receipts)
(465.3)
(518.1)
18.1
(9.6)
(38.1)
(2.1)
34.1
50.4
52.8
The epigraph other investment flows includes an inflow of 63.8 million euros at the end of the year,
where the most important item in the Environment area is the collection of the concession right
for the Edinburgh incineration plant for an amount of 42.3 million euros, which has been applied
in its entirety to reduce its financial debt. To this we must add movements for smaller amounts in
loans to third parties and investee companies.
2.1.6.3. Financing cash flow
The consolidated cash flow from financing throughout the year represents an application of 138.4
million euros compared to 345.7 million euros in the previous business year. The interest payment
item shows an outflow of 151.4 million euros, mainly concentrated in the Environment, Water and
Concessions areas.
The epigraph Proceeds from/(payments on) financial liabilities includes an application of 142.6
million euros in the year, compared to 97.4 million euros in the previous year. The most significant
item was the decrease in the financial debt of the Cement area, entirely without recourse to the
Group’s parent company, amounting to 118.5 million euros, of which 108 million euros corres-
pond to the early partial repayment of the main credit facility for the area.
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Other financing cash flows amounted to an inflow of 155.6 million euros compared with an out-
flow of 111.5 million euros the previous business year. The most significant item was the payment
of the sale of a minority stake to a financial partner of 49% of the capital of the new subsidiary
Green Recovery Projects Limited, head of five energy recovery plants of the Environment subsi-
diary in the UK, for 188.4 million euros. Lastly, it is worth mentioning the payment of dividends to
shareholders of the Group’s parent company and minority third parties amounting to 36.6 million
euros.
2.1.6.4. Exchange differences, change in consolidation scope, etc
This epigraph recorded an application of 61.5 million euros and includes two main items. Firstly,
the transfer of the cash of the concession subgroup Cedinsa for 38.1 million euros to the epigraph
“assets held for sale”, following the sale agreement reached in the fourth quarter of the year and
until its exit from the consolidated scope at the close of the transaction. This is in addition to the
effect on cash of the variation in the exchange rate of various currencies against the euro, mainly
concentrated in the Construction area.
2.1.6.5. Change in cash and cash equivalents
As a result of the development of the different components of the cash flow, FCC Group’s cash
position closed with an increase of 3.6 million euros compared to the end of the previous period,
reaching a balance of 1.222.1 million euros at the end of the business year.
2.1.7. Analysis by business área
2.1.7.1. Environment
The Environment division contributed 43% of the Group’s EBITDA in 2020. Some 79.9% of its ac-
tivity is focused on the provision of essential waste collection, treatment and disposal services, as
well as street cleaning. The remaining 20.1% corresponds to other types of urban environmental
activities, such as the conservation of green areas or sewage systems.
In Spain, the management of municipal wastes and street cleaning are the most important activi-
ties, while in the United Kingdom the focus is on the processing, retrieval and disposal of munici-
pal wastes. In central Europe, mainly Austria and the Czech Republic, FCC is present right across
the waste management chain (collection, processing and disposal). FCC’s activities in the USA
include both the collection and comprehensive retrieval of municipal wastes.
2.1.7.1.1. Earnings
Turnover
Waste collection and street cleaning
Waste processing
Other services
EBITDA
EBITDA Margin
EBIT
EBIT margin
Dec. 20
2,888.2
1,428.6
879.0
580.6
450.9
15.6%
215.7
7.5%
(Millions of Euros)
Dec. 19
2,915.2
1,379.7
960.1
575.4
492.5
16.9%
258.5
8.9%
Chg. (%)
-0.9%
3.5%
-8.4%
0.9%
-8.4%
-1.3 p.p
-16.6%
-1.4 p.p
Turnover for the Environment area remained at similar levels to the last business year and amoun-
ted to 2.888.2 million euros in the period. The waste collection and street cleaning activity increa-
sed by 3.5% to 1.428.6 million euros, where a greater contribution from the USA after the entry
into operation of new contracts stands out, together with very stable performance in all other
regions.
Waste treatment activity declined by 8.4% to 879 million euros, because of a lower contribution
in the United Kingdom due to the decreased volume of treatment activity of private customers, as
well as a reduced contribution from the development of new plants, together with good perfor-
mance in Spain and Central Europe.
Breakdown of revenue by geographical area
(Millions of Euros)
Spain
United Kingdom
Central Europe
US and others
Total
Dec. 20
1,715.8
605.3
464.6
102.5
Dec. 19
1,701.7
682.0
466.9
64.6
2,888.2
2,915.2
Chg. (%)
0.8%
-11.2%
-0.5%
58.6%
-0.9%
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By geographical area, revenues in Spain increased by 0.8% compared to the previous business
year to 1.715.8 million euros, due to stability in municipal waste collection and street cleaning
activities deemed to be essential. This is together with higher revenues linked to the development
phase of treatment plants that have offset the decrease in non-essential municipal services due
to the measures taken by the government to combat the pandemic during the first half of the
business year.
In the United Kingdom, turnover decreased by 11.2% to 605.3 million euros, due to lower volu-
mes in the waste treatment and reduction activity, concentrated in tertiary clients and the decrea-
sed contribution of the treatment and recovery plant in Edinburgh, following the completion of the
construction phase and the start of the operational phase since mid last year (which resulted in a
reduction of 25.7 million euros).
In Central Europe, revenues remained stable at 464.6 million euros, where the increase in acti-
vity in Poland has almost entirely offset lower levels of activity in countries such as Bulgaria and
Slovakia.
Lastly, turnover in the USA and other markets increased by a remarkable 58.6% due to a greater
contribution from the Palm Beach and Volusia contracts, both in Florida.
The net operating profit (EBIT) decreased by 16.6% over the previous year to 215.7 million euros,
thanks to the development of the different components mentioned in the Ebitda.
Breakdown of Backlogs by Geographical Area
(Millions of Euros)
Spain
International
Total
Dec. 20
4,872.2
4,312.1
Dec. 19
5,354.5
5,011.7
9,184.3
10,366.2
Chg. (%)
-9.0%
-14.0%
-11.4%
At the end of December, the backlog for the area fell by 11.4% to 9.184.3 million euros. In Spain,
it amounts to 4.872.2 million, where a significant number of contracts are still being extended,
although an increase in bidding activity is now being noted. The awarding of the eight-year urban
sanitation contract for Barcelona is worth mentioning, with an estimated value of more than 800
million euros, after FCC Medio Ambiente was deemed the entity with the best technical qualifica-
tion. In the international area, the backlog declined 14%, largely due to the depreciation of sterling
and the dollar against the euro at the end of the business year.
Breakdown of Revenue by Geographical Area
2.1.7.1.2. Financial Debt
59.4% Spain
21.0% UK
16.1% Central Europe
3.5% USA & Others
Net Financial Debt without recourse
(Millions of Euros)
Dec. 20
1,330.2
Dec. 19
1,332.2
Chg. (Mn€)
(2.0)
There was no appreciable variation to Net financial debt without recourse to the header at the
end of the business year. The main balance corresponds to the issue of two green bonds in the
amount of 600 million euros and 500 million euros by the parent company in the fourth quarter
of 2019 and that have obtained confirmation of its investment grade in its annual revision. Of the
rest, 167.2 million euros correspond to activity in the United Kingdom together with another 55
million euros mainly linked to funding of three waste treatment and recycling plant projects in
Spain.
Gross operating profit (EBITDA) decreased by 8.4% to 450.9 million euros, caused by the deve-
lopments in revenue described above together with decreased performance in the incineration
plants in the United Kingdom due to shutdowns scheduled in their maintenance together with
extraordinary repairs.
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2.1.7.2. End-to-End Water Management
Breakdown of revenue by geographical area
(Millions of Euros)
The Water area contributed 27% of FCC Group EBITDA in the period. 85.6% of its activity is focu-
sed on public service concession management related to the end-to-end water cycle (collection,
treatment, storage and distribution) and the operation of different types of water infrastructures;
the remaining 14.4% corresponds to Technology and Networks, which is responsible for the
design, engineering and equipment of hydraulic infrastructures, related to a great extent to the
development of new concessions and ancillary works for operations.
In Spain the area serves over 13 million inhabitants in more than 850 municipalities. In Central
Europe, it serves 1.3 million users, mainly in the Czech Republic, while in the rest of the continent
it is present in Italy, Portugal and France. In Latin America, the Middle East and Africa it is present
through the design, equipping and operation of processing plants. All in all, the Water area provi-
des supply and/or sanitation services to more than 25 million inhabitants.
2.1.7.2.1. Earnings
Turnover
Concessions and services
Technology and networks
Ebitda
EBITDA Margin
EBIT
EBIT margin
Dec. 20
1,188.3
1,016.6
171.7
282.9
23.8%
167.4
14.1%
(Millions of Euros)
Dec. 19
1,186.9
982.2
204.7
281.7
23.7%
180.2
15.2%
Chf. (%)
0.1%
3.5%
-16.1%
0.4%
0.1 p.p
-7.1%
-1.1 p.p
Revenues remained stable and reached 1.188.3 million euros. The Concessions and Services
business increased by 3.5% year-on-year to 1.016.6 million euros, due to the increased contri-
bution of activity and contracts in France, Colombia and Saudi Arabia and despite the decrease
in consumption in Spain due to the impact of the pandemic. However, Technology and Networks
decreased by 16.1%, due to the slower pace of execution of both construction projects associa-
ted with national concessions and international projects.
Spain
Middle East, Africa and Others
Central Europe
Rest of Europe (France, Portugal and Italy)
Latin America
Total
Dec. 20
Dec. 19
Chg. (%)
784.3
163.1
105.0
78.5
57.4
804.4
113.3
111.7
71.2
86.3
1,188.3
1,186.9
-2.5%
44.0%
-6.0%
10.3%
-33.5%
0.1%
By geographic area, revenues in Spain amounted to 784.3 million euros, 2.5% less than at the
end of the previous business year, due to a decrease in amounts invoiced to non-domestic cus-
tomers and in tourist areas, together with the entry into operation of new contracts, such as the
peripheral sewerage contract in Madrid. Technology and Networks has experienced lower activity
due to the slower pace of execution of some projects associated with concessions.
In the international arena, in the Middle East, Africa and Others, revenues increased by an outs-
tanding 44% to 163.1 million euros, due both to the good pace of execution in the construction
of a wastewater treatment plant in Egypt, and to the increase in concession activity resulting from
the contribution of the companies acquired in Saudi Arabia during the business year.
Central Europe saw its revenues fall by 6% to 105 million euros, mainly due to the reduced activity
of Technology and Networks regarding the completion of projects in Montenegro and Serbia.
End-to-end cycle activity in the Czech Republic remained stable due to an update in rates that
largely offset the slight fall in consumption caused by the health crisis.
In the Rest of Europe, revenues increased by 10.3% to 78.5 million euros as a result of the
contribution by the company Aqualia France acquired in June 2019, which compensated for a
downturn in infrastructure activity in the Caltanisetta concession in Italy.
In Latin America, revenues fell by 33.5% to 57.4 million euros, due to the completion or slower
pace of construction of plants in Ecuador and Colombia, which were not offset by the contribution
of new contracts, such as in Mexico.
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Breakdown of Revenue by Geographical Area
2.1.7.2.2. Financial Debt
66.0% Spain
13.8% M. East, Africa & Others
8.8% Central Europe
4.8% Latin America
6.6% Rest of Europe
Gross operating profit (EBITDA) slightly increased by 0.4% and totalled 282.9 million euros, where
the incorporation of new contracts in concessions and services helped to offset the aforemen-
tioned decrease in volumes and activity in Technology and Networks, due to the interruption and
delay in the progress of some projects due to the health crisis. The margin, at 23.8%, remained
stable compared to 2019.
The net operating profit (EBIT) decreased 7.1% compared to the previous business year, to 167.4
million euros, mainly due to the increase in the amortisation provision allocated due to an increase
in the asset base and new areas of operations..
Breakdown of Backlogs by Geographical Area
(Millions of Euros)
Spain
International
Total
Dec. 20
7,224.7
7,801.2
Dec. 19
7,813.1
7,205.2
15,025.9
15,018.3
Chg. (%)
-7.5%
8.3%
0.1%
Figures for the backlog were similar to those to December of the previous year, totalling 15.025.9
million euros, due to new contracts in the international area, mainly in Colombia, Mexico, Saudi
Arabia and Qatar, which compensated for the downturn in Spain, caused by delays in the renewal
of some contracts.
Net Financial Debt without recourse
(Millions of Euros)
Dec. 20
1,177.6
Dec. 19
1,214.5
Chg. (Mn€)
(36.9)
Net financial debt, entirely without recourse to the Group’s parent company, decreased by 36.9
million euros compared to December the previous year, totalling 1.177.6 million euros. Most of the
debt balance is for long-term bonds issued by the area’s parent company, with a gross balance
of 1.346.4 million euros.
2.1.7.3. Construction
The Construction area contributed 5.1% of the Group’s EBITDA in the business year. Activities
were focused on the design and construction of large civil engineering, industrial and complex
building works. Special mention should go to participation in major works like railways, tunnels,
bridges and football stadiums that constituted a major part of the activity.
2.1.7.3.1 Earnings
Turnover
EBITDA
EBITDA Margin
EBIT
EBIT margin
Dec. 20
1,611.0
53.6
3.3%
20.9
1.3%
(Millions of Euros)
Dec. 19
1,719.3
100.2
5.8%
77.3
4.5%
Chg. (%)
-6.3%
-46.5%
-2.5 p.p
-73.0%
-3.2 p.p
The area’s revenues decreased by 6.3% to 1.611 million euros due to the slower pace of execu-
tion and the suspension that temporarily affected some ongoing projects, mainly in Latin America
and the Middle East. This could not be fully offset by a higher volume of activity linked to contracts
won and developed in Europe, which overall experienced a lower level of disruptions during the
business year.
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Breakdown of Revenue by Geographical Area
(Millions of Euros)
Breakdown of revenue by geographical area
463
Spain
Europe and others
Middle East and Africa
Latin America and USA
Total
Dec. 20
Dec. 19
Chg. (%)
848.8
390.0
246.2
126.0
665.3
313.1
401.5
339.4
1.611.0
1.719.3
27.6%
24.5%
-38.7%
-62.9%
-6.3%
By geographical area, in Spain turnover increased by 27.6% to 848.8 million euros, due to the
good pace sustained in the development of projects. The most significant of these is the remo-
delling of the Santiago Bernabéu football stadium, as well as in other minor projects recently
awarded, which to a large extent compensated for the effects of the temporary measures taken
to suspend the activity in its planned course of development.
Similarly, in Europe and other markets, turnover grew by 24.5% over the previous business year
to 390 million euros, thanks to increased activity in new projects started in EU countries, including
the A-9 motorway in the Netherlands, the A-6 in Norway, the modernisation of the Bacau airport
runway in Romania and the pace of progress in the development of the Haren prison complex in
Belgium.
In the Middle East and Africa, revenues decreased by 38.7% to 246.2 million euros, mainly due
to the lower activity registered in the construction of the Riyadh metro in Saudi Arabia as a result
of the strict lockdown measures decreed because of the pandemic together with the high degree
of progress of the work as a whole.
In Latin America and the USA, turnover fell by 62.9% at business year-end, mainly due to the
lower contribution from the completion of Line 2 of the Panamá Metro and the Gerald Desmond
Bridge in Los Angeles (USA), together with the slowdown in the development of other projects
underway in various countries, due to the strict lockdown measures decreed in these countries.
Spain
International
Total
52.7% Spain
15.3% Middle E. & Africa
24.2% Europe & Others
7.8% Latin America & USA
The gross operating profit (EBITDA) decreased by 46.5% compared to the previous business year
and amounts to 53.6 million euros. This development is the result of the combined effect in the
international area of higher provisions, as a preventive measure, as well as higher costs, all in an
environment marked by a temporary slowdown in activity stemming from the exceptional situa-
tion created by the health emergency measures. However, the higher level of activity executed in
Europe mitigated this impact and the operating margin was 3.3%.
Net operating profit stands at 20.9 million euros compared to 77.3 million euros for the previous
year, reflecting developments already commented on at the gross operating income level.
Breakdown of Backlogs by Geographical Area
(Millions of Euros)
Dec. 20
1,628.4
3,527.4
5,155.8
Dec. 19
2,010.3
3,612.9
5,623.2
Chg. (%)
-19.0%
-2.4%
-8.3%
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The area’s income backlog decreased 8.3% at the end of December compared to the previous
business year, to 5.155.8 million euros. In Spain, it fell to 1.628.4 million euros, as a good pace in
terms of project progress was not matched by the addition of new contracts in a business year
that saw a low level of public tenders. In the international area, the backlog decreased by 2.4%,
mainly due to the decline in the contract of the “Ciudad de la Salud” Health Centre in Panama,
together with a reduction in the scope of works on other projects, which was largely offset by
other contracts obtained in Europe and Mexico.
Breakdown of the Backlog by Activity Segment
(Millions of Euros)
Civil engineering works
Building
Industrial Projects
Total
Dec. 20
4,121.5
695.0
339.3
5,155.8
Dec. 19
3,991.6
1,251.6
380.0
5,623.2
Chg. (%)
3.3%
-44.5%
-10.7%
-8.3%
By type of activity, the civil engineering works backlog accounted for 80% of the total and increa-
sed by 3.3%, due to new contracts in the international area, mainly in Europe, which offset the low
public tenders in Spain, reaching 4.121.5 million euros. Building activity declined significantly, due
both to the aforementioned adjustment in the Panama backlog and to the aforementioned drop
in activity as a result of the health crisis.
2.1.7.4. Cement
The Cement area contributed 13.4% of the FCC Group’s EBITDA in the business year. This activi-
ty was undertaken by the CPV Group, which focusses on the manufacturing cement and by-pro-
ducts, with 7 main production centres in Spain and 1 in Tunisia, in addition to a minority stake
of 44.6% in Giant Cement, which operates a number of factories on the east coast of the USA.
2.1.7.4.1. Earnings
Turnover
Cement
Other
EBITDA
EBITDA Margin
EBIT
EBIT margin
Dec. 20
Dec. 19
Chg. (%)
(Millions of Euros)
382.6
345.2
37.4
139.9
36.6%
106.8
27.9%
413.2
374.5
38.7
86.4
20.9%
(20.0)
-4.8%
-7.4%
-7.8%
-3.4%
61.9%
15.7 p.p
n/a
32.8 p.p
Revenues for the area decreased by 7.4% to 382.6 million euros compared to December of the
previous year, due to a decrease in volumes invoiced in local markets in Spain and Tunisia, as
a consequence of the lockdown measures applied due to the pandemic, as well as a drop in
exports from both markets.
Breakdown of revenue by geographical area
(Millions of Euros)
Spain
Tunisia
Miscellaneous (exports)
Total
Dec. 20
Dec. 19
Chg. (%)
237.9
57.8
87.0
382.6
249.4
57.9
105.9
413.2
-4.6%
-0.2%
-17.9%
-7.4%
By geographic area, revenues in Spain declined by 4.6% to 237.9 million euros, as the lockdown
measures decreed due to the pandemic caused a decrease in volumes in the first half of the year,
which was mitigated by good price performance. It should be noted that in the second half of
the year there was a progressive recovery of activity with a more stable performance in terms of
demand.
In the Tunisian local market, revenues remained stable at 57.8 million euros, where the decrease
in volumes was offset by both price increases and the appreciation of the Tunisian dinar. Similarly,
there was a progressive improvement in activity levels in the second part of the business year.
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Export earnings fell by 17.9% amounting to 87 million euros due to a decrease in shipments made
both from Spain and from Tunisia.
Breakdown of revenue by geographical area
62.2% Spain
15.1% Tunisia
22.7% Others
The gross profit income increased by a remarkable 61.9% to 139.9 million euros, due to two main
factors. The sale of CO2 rights amounted to 58.9 million euros in the business year, compared to
5.8 million euros the previous year, and the aforementioned drop in volumes and revenues was
offset by the fall in energy prices, both for fuels and electricity. Therefore, without taking into ac-
count the COs component in both business years, Ebitda would have improved slightly by 0.4%
in 2020 compared to the previous business year.
The net operating profit amounted to 106.8 million euros, as a result of the aforementioned deve-
lopment of the gross operating profit.
2.1.7.4.2. Financial Debt
Deuda financiera neta sin recurso
(Millions of Euros)
Dec. 20
173,7
Dec. 19
Chg. (Mn€)
293,0
-119,3
2.1.7.5. Concessions
As a result of a sale agreement reached in October 2020 and in accordance with accounting
standards (IFRS 5), the assets and liabilities relating to the investees to be transferred from the
concession activity have been classified as held for sale in the FCC Group’s balance sheet. The
consolidation method is maintained in the income statement in the same way, until the operation
is closed and the shares transferred.
The Concessions area accounts for 9% of the Group’s EBITDA in the year as a whole. Its activi-
ties focussed on the development, operation and maintenance of transport and non-residential
infrastructures. At the close of the business year, the Cedinsa subgroup maintained its contribu-
tion to turnover, which together with other smaller entities represents a total of 18 concessionary
companies in the portfolio and with different degrees of participation.
2.1.7.5.1. Earnings
Turnover
EBITDA
EBITDA Margin
EBIT
EBIT margin
Dec. 20
Dec. 19
Chg. (%)
(Millions of Euros)
123.5
94.6
76.6%
55.4
44.8%
49.8
31.8
63.9%
12.0
24.1%
148.0%
197.2%
12.7 p.p
n/a
20.8 p.p
The area’s revenues were 123.5 million euros this business year, as compared to 49.8 million eu-
ros for the first half of the previous business year. This change is mainly due to the contribution of
the Cedinsa subgroup, after acquiring control of the majority of its capital in November 2019 and
incorporating it since then through full consolidation.
Breakdown of revenue by geographical area
(Millions of Euros)
Net financial debt, entirely without recourse to the Group’s parent company, decreased signifi-
cantly by 119.3 million euros to 173.7 million euros, of which 108 million euros correspond to the
early partial repayment of the area’s main credit facility, which has no significant ordinary maturity
until 2022.
Spain
Mexico
Total
Dec. 20
Dec. 19
Chg. (%)
121.5
2.1
123.5
47.5
2.3
49.8
155.7%
-11.3%
148.0%
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By geographical area, almost all of the revenues are concentrated in Spain, revenues totalling
121.5 million euros, 76.5% of which was contributed by the Cedinsa subgroup. The Coatza-
coalcos Tunnel concession in Mexico remains practically unchanged compared to the previous
business year and its contribution reflects the depreciation effect of the Mexican peso during this
period (-12.1%).
Breakdown of revenue by geographical area
98.3% Spain
1.7% Mexico
Gross operating income totalled 94.63 million euros, 79.6% corresponding to the Cedinsa con-
cession group.
2.1.7.5.2. Financial Debt
Dec. 20
Dec. 19
Chg. (Mn€)
(Millions of Euros)
Net financial debt without recourse
14.7
751.8
-737.1
At the end of last December, consolidated net financial debt had suffered a substantial reduction
to 14.7 million euros compared to the balance at the end of 2019. This was due to the afore-
mentioned effect from the application of accounting regulations, which after the sale agreement
reached by various concessionary companies led to the reclassification of its gross financial debt
under the single epigraph of liabilities held for sale amounting to 736.6 million euros.
2.2. Business performance. Environment
The information relating to the FCC Group’s environmental policy is set out in greater detail in
note 30 to the consolidated financial statements and in section 7 of the Non-Financial Information
Statement.
The FCC Group carries out its activities on the basis of business commitment and responsibility,
compliance with applicable legal requirements, respect for the relationship with its stakeholders
and its ambition to generate wealth and social well-being.
Aware of the importance to the FCC Group of preserving the environment and using available
resources responsibly, and in line with its vocation to serve through activities with a clear envi-
ronmental focus, the FCC Group promotes and enhances the following principles, on which its
contribution to sustainable development is based, throughout the organisation:
• Continuous improvement: Promote environmental excellence by establishing objectives for
the continuous improvement of performance, minimising the negative impacts of the FCC
Group’s processes, products and services, and enhancing the positive impacts.
• Monitoring and control: establish environmental indicator management systems for the ope-
rational control of processes, which provide the necessary knowledge for the monitoring, eva-
luation, decision-making and communication of the FCC Group’s environmental performance
and compliance with the commitments undertaken.
• Climate change and pollution prevention: Lead the fight against climate change through the
implementation of processes with lower greenhouse gas emissions, and by promoting energy
efficiency and renewable energies. Preventing pollution and protecting the natural environ-
ment through the responsible management and consumption of natural resources and by
minimising the impact of emissions, discharges and waste generated and managed by the
FCC Group’s activities.
• Observation of the environment and innovation: To identify the risks and opportunities of acti-
vities in the face of the changing landscape of the environment in order, among other things,
to promote innovation and the application of new technologies, as well as the generation of
synergies between the various activities of the FCC Group.
• Life cycle of products and services: enhancing environmental considerations in business plan-
ning, procurement of materials and equipment, and relations with suppliers and contractors.
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• The necessary participation of all parties: promote the knowledge and application of environ-
mental principles among employees and other stakeholders. To share experience of the best
practices with the different agents in order to promote alternative solutions to those currently
in place, which contribute to the achievement of a sustainable environment.
2.3. Business performance. Personnel
Details are attached of the FCC Group’s staff at year-end, by business area:
In order to improve the Group’s liquidity position, active collection management is carried out with
customers to ensure that they meet their payment commitments.
To ensure liquidity and meet all payment commitments arising from the business, the Group has
cash flows as shown in the balance sheet (see note 17 to the consolidated financial statements)
and detailed financing (see note 20 to the consolidated financial statements).
Note 30 to the consolidated financial statements sets forth the policy implemented by the FCC
Group to manage liquidity risk and the factors mitigating said risk.
467
Spain
Abroad
Total
% s/Total
Capital resources
Areas
2020
Environment
Water Management
Construction
Cement
Concessions
Central Services and Others
33,206
6,675
3,944
785
154
306
7,126
3,849
3,379
251
71
0
40,332
10,524
7,323
1,036
225
306
68%
18%
12%
2%
0%
1%
TOTAL
45,070
14,676
59,746
100%
3. Liquidity and capital resources
Liquidity
In order to optimise its financial position, the FCC Group maintains a proactive liquidity manage-
ment policy with daily cash monitoring and forecasts.
The FCC Group covers its liquidity needs through the cash flows generated by the businesses
and through the financial agreements reached.
The Group manages its capital to ensure that its member companies will be able to continue as
profitable and solvent businesses.
As part of its capital management operations, the Group obtains financing through a wide range
of financial products.
During the 2019 business year, two simple bonds were issued by FCC Servicios Medioambiente
Holding, S.A.U. for an amount of 1,100 million euros; FCC Aqualia, S.A. had previously done the
same in 2017.
In November 2018, FCC, S.A. registered a 300 million euros promissory notes programme, which
was subsequently expanded to 600 million euros in March 2019. In 2019, new funding facilities
were arranged in the form of credit facilities and bilateral loans. In 2020, FCC Servicios Medioam-
biente Holding, S.A.U., also registered a 300 million euros promissory notes programme.
Likewise, in 2020, Cementos Portland Valderrivas, S.A. repaid debt of 119 million euros, of which
108 million euros were voluntarily repaid (note 20 of Non-current and current financial liabilities of
the notes to the 2020 financial statements).
These operations have made it possible to complete the process of debt reduction and financial
reorganisation initiated five years ago and to continue with the policy of diversifying financing
sources; all this contributing to achieving a much more stable and efficient capital structure, with
amounts, terms and financing costs suitable according to the nature of the different business
areas.
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In order to optimise the cost of capital resources, the FCC Group maintains an active policy of
interest rate risk management, constantly monitoring the market and taking different positions
depending mainly on the assets financed.
4. Major risks and uncertainties
The performance of interest rates in recent years is shown below.
468
3.00%
2.70%
2.40%
2.10%
1.80%
1.50%
1.20%
0.90%
0.60%
0.30%
0.00%
-0.60%
Dec.16 Mar.17
Jun.17
Sep.17
Dec.17
Mar.18
Jun.18
Sep.18
Dec.18 Mar.19 Jun.19 Sep.19 Dec.19 Jan.20 Feb.20 Mar.20 Apr.20 May.20 Jun.20 Jul. 20Aug. 20 Sep.20 Oct.20 Nov.20 Dec.20
EURIB 6M
GBP-LIBOR 6M
USD-LIBOR 6M
This section is discussed in greater detail in note 30 to the consolidated financial statements.
4.1. Risk Management Policy and System
The FCC Group Risk Management Model has been designed with the aim of identifying and
assessing the potential risks that could affect the Group’s different units, as well as establishing
mechanisms incorporated into the organisation’s processes that make it possible to manage risks
within the accepted levels, providing the Board of Directors and Senior Management with reaso-
nable assurance regarding the achievement of the main objectives defined. This Model applies to
all FCC Group companies, as well as to those affiliates where FCC has effective control, promo-
ting the development of work frameworks that enable suitable risk control and management in
those companies where effective control is not available.
This model is essentially based on the integration of a risk-opportunity vision and the assignment
of responsibilities that, together with the segregation of duties, enable the follow-up and control
of risks, consolidating a suitable control environment.
The activities included in the FCC Group’s Risk Management Model include the assessment
of risks, including tax risks, in terms of impact and probability of occurrence, giving rise to Risk
Maps, and subsequently the establishment of prevention and control activities to mitigate the
effect of such risks. In addition, this Model includes the establishment of reporting flows and
communication mechanisms at different levels, which allow both decision-making and its review
and continuous improvement.
The system covers the risk scenarios considered, which have been classified into four groups:
Operational, Compliance, Strategic and Financial.
The risk management duties and responsibilities at the different levels of the organisation are
detailed in section E on the Risk Management and Control System of the Annual Corporate Go-
vernance Report.
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4.2. Major risks and uncertainties
The FCC Group operates worldwide and in different sectors and, therefore, its activities are sub-
ject to a variety of environmental, socio-economic environments and regulatory frameworks, as
well as to different risks inherent to its operations and risks arising from the complexity of the
projects in which it participates, which could affect the achievement of its objectives.
Details of the main strategic, operational and compliance risks that could affect the Group’s ac-
tivities, as well as a description of the systems used to manage and monitor them, can be found
in section E of the Annual Corporate Governance Report, as well as in section 6.2 of the Non-Fi-
nancial Information Statement.
With regard to financial risks, which are considered to be the changes in the financial instruments
arranged by the FCC Group due to political, market and other factors, and their repercussions on
the financial statements, the risk management philosophy is consistent with the business strate-
gy, seeking maximum efficiency and solvency at all times. To this end, strict financial risk control
and management criteria have been established, consisting of identifying, measuring, analysing
and controlling the risks incurred by the Group’s operations, with the risk policy being correctly
integrated into the Group’s organisation. The financial risks to which the Group is exposed are dis-
cussed in greater detail in note 30 to the consolidated financial statements, in section E of the An-
nual Corporate Governance Report and in section 6.2 of the Non-Financial Information Statement
In addition, the FCC Group is also subject to certain risks relating to environmental and social
issues, the management of which is described in greater detail in sections 6.2 and 7 of the
Non-Financial Information Statement.
5. Acquisition and disposal of own shares
6. Significant events occurring
after the end of the year
There have been no significant events between the end of the year and the date of preparation of
these financial statements.
7. Outlook
The outlook for the performance of FCC Group’s main business areas in 2021 is given below.
Environmental Services
In the countries where it operates, the sector is undergoing a major process of transformation,
due to the environmental requirements of each country deriving from the European Directives
(new opportunities based on the ambitious targets set by the European Union in relation to the
circular economy and climate change). The new services will focus on energy efficiency, urban
mobility and smart cities.
In Spain, moderate growth is expected in the start up of operations of the disposal facilities that
were under construction and the initial operation of newly awarded contracts. No significant chan-
ges are expected in the domestic market, the aim being focused on gradually replacing the linear
production model with circular models (Plan PEMAR 2016-2022, España Circular 2030 [State
Waste Framework Plan for Spain’s Circular Economy]).
At 31 December 2020, the FCC Group owned, directly and indirectly, a total of 1,544,773 shares
of FCC S.A. (0.38% of the company’s capital stock).
In Portugal, business opportunities related to soil decontamination activities and new urban sani-
tation contracts stand out.
Transactions involving the acquisition and disposal of own shares during the year are detailed in
note 18 to the consolidated financial statements.
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In the United Kingdom in 2020, the economic forecasts for 2021 are marked by the impact of its
departure from the EU and the effects of the COVID-19 pandemic, which will continue to weigh
down its performance during the first half of 2021. To respond to this uncertainty, the UK Govern-
ment has announced an extension of financial aid until at least March 2021. In the environmental
area, once its membership of the EU ends, the UK will nevertheless remain committed to the EU’s
circular economy objectives and recycling goals, therefore no sudden changes are expected.
Additionally, the Government is promoting new measures to encourage the recycling of plastics
with the introduction of a tax on packaging and supporting measures to reduce CO 2 emissions.
The sector, strongly conditioned by environmental legislation, will continue to await legislative
developments in these aspects. In the short term, the market for recycled products has become
more restrictive, prioritising quality and experiencing price volatility; the export of refuse-derived
fuel (RDF) to Europe will be affected by trade barriers and by the development of new treatment
plants, a process in which our division in the United Kingdom is already involved, continuing with
its production strategy of energy through waste treatment.
Moderate organic growth is expected in Central and Eastern Europe. Although the economic
indicators show significant growth compared to 2020, a lower budget allocation is expected
in many municipalities (in activities such as street cleaning, gardening, pruning, winter services)
due to the need to allocate funds to other activities due to COVID-19. The start of several major
soil decontamination projects will probably also be delayed for the same reason. Similarly, many
businesses will suffer the financial consequences of the end of public aid and it is very likely that
normal economic activity will not restart again until the second semester since, even with the exis-
tence of vaccines, the logistical challenge of their application will probably include new periods of
restrictions in almost all territories.
In relation to the implementation of the business model, Austria is a mature and fully developed
market while the other three most important countries, the Czech Republic, Slovakia and Po-
land, must gradually transform their business model, reducing volumes in landfills and increasing
treatment and recycling activities in order to adapt to European Union directives. In principle, this
process is more medium term (2026-2030) but, given that the obtaining of permits and the final
construction of treatment plants or incinerators is long term, various projects that could be started
in the short term have already begun to be analysed.
As far as the USA is concerned, it represents a market with high development potential for a com-
pany with the know-how, experience and use of the most advanced and efficient technologies in
providing quality environmental services, as FCC has.
End-to-End Water Management
homes. In this regard, we expect a recovery from the second half of the 2021 business year,
which will be reinforced by the new contracts added to the scope during 2020, as well as by the
maintenance of the high contract renewal rates that Aqualia consistently achieves at their expira-
tion. This increase in revenues will lead to an improvement in profits, reinforced by the continua-
tion of cost optimisation actions and operational optimisation measures in the contracts included
in the management scope
In Spain in the area of Service concessions for the End-to-end Water Cycle, for 2021 it is worth
mentioning the expectation of maintaining similar renewal rates to those of 2020, exceeding 90%,
although many new contracting opportunities are not expected due market apathy.
With regard to Europe, in Portugal, prospects of a slight reactivation of the concession business
is expected after the legislative elections held in 2019 and based on the high budget deficit of the
Municipalities and the need for infrastructure investment. Similarly, a further increase in the growth
of operation and maintenance contracts is expected to be promoted by the public companies
belonging to Aguas de Portugal. It is expected that the proper authorities will continue with the
search for solutions to the management of sludge from the country’s wastewater treatment plants.
In France new tenders are expected for the assignment of public services due to the termination
of the contractual deadline for some of the existing contracts in the country.
In Saudi Arabia the process of modernisation and provision of the country’s hydraulic infras-
tructures will continue, promoted by the Government in the Vision 2030 programme, by means
of public-private collaboration. The infrastructure concession contracts tendered in 2020 will be
definitively awarded and the bid for new BOT projects in the field of desalination and purification
is expected to take place. Bids for operation and maintenance contracts for water and sanitation
services in the six regions into which the Saudi kingdom has been divided will also begin.
In 2021, Aqualia will consolidate the operation of the new sanitation contract for Abu Dhabi and
that for the WWTP in Al Dhakira, in Qatar.
In LATAM, the construction phase of the Guaymas SWDP (Sonora, Mexico), will be completed,
giving way to a 20-year period of operation, and of the PTAR Salitre (Colombia). In both countries,
new concessions for desalination hydraulic infrastructure will be tendered in the states of Baja
California and Sonora and for purification within the Bogotá river decontamination programme.
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Finally, in Peru the preparation of the significant private initiatives declared in favour of Aqualia will
continue (5 treatment plants and 1 desalination plant) and in the USA, there will be a presentation
of the projects currently under study to their corresponding clients under the formula of “unsolici-
ted proposals”, for their evaluation and, if accepted, for subsequent execution.
Construction
In the international market, FCC focuses on countries and markets with a stable presence and on
the execution of projects with guaranteed financing.
The search for contracts in the domestic and international markets is one of the Group’s objec-
tives, although this is done through demanding risk management that must provide access to a
selective backlog of projects that ensure the company’s profitability and cash flow generation.
Taking into account the above, it is estimated that in 2021, the turnover obtained in Spain will
remain similar to that obtained in 2020.
In the foreign market, it is estimated that turnover in 2021 will be similar to that obtained in 2020,
with the development of large infrastructure works obtained between 2018 and 2020 and the
contribution of markets in America (Central America, Mexico, Chile, Peru, Colombia), the Middle
East (Saudi Arabia) and Europe (the Netherlands, the United Kingdom, Norway and Romania).
Cement
The Bank of Spain forecasts a fall of 11% in the Spanish economy for 2020, demonstrating its
permeability to major international crises. The economic outlook is conditioned by how the situa-
tion with the virus evolves and although the progress in obtaining vaccines significantly reduces
the unknowns, uncertainty remains about when the pandemic will be completely overcome. The
Bank of Spain in its intermediate scenario forecasts that the Spanish economy will grow by 6.8%
in 2021 and 4.2% in 2022 with unemployment rates of 18.3% and 15.6%, respectively. The Spa-
nish economy will not recover its pre-pandemic levels until 2023.
According to the Association of Infrastructure Contractors and Concessionaires (Seopan), it is es-
timated that public contracting fell by 39.7% in 2020. According to Oficemen, the trend in cement
market consumption in 2021 will be in range of between -3.0% and 3%. In Tunisia, growth of 5%,
up to 6.1 million tonnes, is estimated in the domestic market for 2021, after the strong contraction
suffered in 2020 where it fell by 10% to around 5.8 million tonnes.
In this context, the Cementos Portland Valderrivas Group will continue to develop its cost con-
tainment and investment optimisation policies and to adapt all its organisational structures to the
reality of the various markets in which it operates, with the aim of improving the generation of
resources.
8 R&D+I activities
The FCC Group’s R&D&I activities in 2020 have resulted in more than 40 projects.
These projects seek to respond to the challenges of each business area while maintaining overall
coordination between the different business areas of the FCC Group.
The activities of the different Business areas and the main projects developed throughout 2020
are detailed below.
Environmental services
In the environmental services activity, we have continued with the development of projects started
in previous years, such as:
• VISION.
• BICISENDAS.
•
INSECTUM.
• H2020 SCALABLE TECHNOLOGIES FOR BIO-URBAN WASTE RECOVERY (SCALIBUR).
• LIFE 4 FILM.
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In addition, new ones have been launched during 2020, which are summarised below:
End-to-end water management
• DEEP-PURPLE: it consists of the conversion of complex molecules present in the organic
matter of urban solid waste into sustainable materials and products in bio-refineries through
the metabolism of the “Purple Photosynthetic Bacteria”. Thermal hydrolysis is used to extract
the organic matter from the separate collection and incorporate it into the liquid phase.
• RECYGAS: it delves into the research of waste gasification and enables the use of clean syn-
thetic gas obtained from the gasification process to initiate chemical synthesis routes (whose
products would no longer have the status of waste) or its use in high-efficiency electricity
generation cycles. The technology that the project incorporates would allow it to climb up the
waste management hierarchy towards recycling.
• B-FERTS: the main aim is to integrate the revaluation of bio-waste in agriculture by creating
new value chains of bio-based circular economy, coming from municipal solid wastes and
the agricultural industrial sector and aimed at the production of mineral and organo-mineral
fertilisers, developing the nutrient mixes suitable for their application. Its aim is to change the
traditional value chain of fertiliser production and evolve from a linear manufacturing system to
a lean manufacturing system, based on a circular economy that will be developed in B-FERST.
• LIFE-PLASMIX: the main objective is the practical demonstration on a semi-industrial scale
of an innovative recovery and recycling process of the MIX fraction of MSW, the revaluation of
polypropylene (PP) and polystyrene (PS) in the form of high quality pellets ready to be used in
the manufacture of new products, such as packaging.
• LIFE- LANDFILL BIOFUEL: this project pursues the technical demonstration of a profitable
system for the production of vehicular biomethane from landfill biomethane through the imple-
mentation of new techniques for the exploitation of landfill cells and the use of an innovative
upgrading technique that combines filtering with membranes and the PSA vacuum adsorption
system. This holistic approach implies the revaluation of landfill biogas as an alternative fuel for
light and heavy lorries, carrying out break-in tests on them.
FCC Aqualia’s innovation activity is in line with European policies for the transition to a circu-
lar economy with a zero carbon footprint, seeking the development of new smart management
tools and new proposals for sustainable services. In this way, the Department of Innovation and
Technology (DIT) supports the company in achieving the United Nations Sustainable Develop-
ment Goals (SDGs), towards an affordable and high quality water and sanitation service (SDG 6),
optimising its energy balance (SDG 7) and avoiding its impact on the climate (SDG 13) through
sustainable production and consumption (SDG 12).
The projects developed by the DIT during 2020 seek to strengthen FCC Aqualia’s technological
proposal in four lines of work: Quality, Eco-Efficiency, Smart Management and Sustainability.
The major projects in 2020 are listed below:
• RIS3 VALORASTUR: with the aim of achieving eco-efficient wastewater treatment, the RIS-3
programme of the Institute of Economic Development of the Principality of Asturias (IDEPA)
has supported FCC Aqualia’s collaboration with two large public companies and the SME
Ramso. Together with the Institute of Carbon Science and Technology (INCAR - part of the
Spanish National Research Council (CSIC) in Oviedo), new low-cost adsorption materials (at
less than €500/t) have been developed from dried sewage sludge, with activation by pyrolysis.
The project also implemented the optimisation of the nutrient removal process at the San
Claudio WWTP. The reduction in electricity costs, in the minimisation of the purchase of iron
salts (by optimising the biological elimination of phosphorus), and in mud production, is close
to 30k €/year, which means that the costs of improving the automated control system can be
amortised in less than a year.
•
INTERCONECTA ADVISOR: co-financed by the CDTI with FEDER funds, the project has
implemented new pre-treatment and co-digestion methodologies for meat waste (Maguisa) at
the WWTP managed by FCC Aqualia in Guijuelo, supported by municipality and with the co-
llaboration of AINIA. A new digester control system based on LIDAR (Laser Imaging Detection
and Ranging) technology is also being developed to detect foams.
ADVISOR has been selected as one of 101 business actions of the 2020 #PorElClima (For
The Climate) community, and its CO2 reduction impact has been certified by the Carbon Fund
for a Sustainable Economy (FES-CO2) of the CLIMA Programme of the Ministry for the Ecolo-
gical Transition (Miteco).
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• LIFE ICIRBUS: led by the Intromac technology centre and with six other partners from Extre-
madura, the project has developed a prototype at the wastewater treatment plant in Lobón
(Extremadura), managed by FCC Aqualia, to demonstrate the adsorption of metals contained
in some wastewater treatment plant sludge by biomass fly ashes from the company ENCE.
The process was protected with a utility model, and the treated ashes are integrated as ag-
gregates in building materials, while the residual sludge reduces its odours, and is added to a
compost that was used for different crops.
• LIFE METHAMORPHOSIS: as part of this project led by FCC Aqualia, together with five
other entities (Área Metropolitana de Barcelona AMB, FCC Medio Ambiente, Naturgy, Icaen
and SEAT), two biomethane production demonstration plants were implemented.
Development continues with the LIFE Infusion project to prepare design parameters for future
AMB resource recovery plants, and to evaluate technologies in Asturias with another waste
management contractor (Cogersa).
• H2020 MIDES: the project, with eleven partners from seven countries, has led to the setting
up of two demonstration units of a new biological desalination technology, patented by FCC
Aqualia and IMDEA Agua, in plants operated by FCC Aqualia in Dénia/Alicante and Guía de
Isora/Tenerife. This microbial desalination cell (MDC) reduces the energy cost of desalination
by up to ten times compared to traditional seawater reverse osmosis. Instead of electrical
energy, residual organic matter from effluents is used to activate bacteria that generate a
difference in power without external energy input, to move salts through ion exchange mem-
branes, at the same time as the treatment of wastewater effluent that serves as fuel.
The project has also contributed to the construction of the Desalination Innovation Centre in
Dénia, where a platform has been built to evaluate various pre-treatments, with multi-mem-
brane and media filtration pilots. In addition, re-mineralisation post-treatments and alternative
disinfection methods without resorting to hypochlorite are optimised.
• RIS3 RE-CARBÓN: financed by IDEPA with FEDER funds, and led by the engineering com-
pany INGEMAS with two SMEs (Biesca and InCo), Aqualia supports the MCAT institutes
(Microwaves and Carbons for Technological Applications) of the INCAR (Institute of Carbon
Science and Technology) of the CSIC and the CTIC (Information and Communication Tech-
nology Centre Foundation) in the investigation of methods of adsorption of pollutants by re-
generated activated carbon and biochar. The aim is the cost-effective supply of a sustainable
adsorbent for water or gas applications.
The feasibility of cleaning biogas at the Jerez, Chiclana and Lleida WWTPs and deodorisation
at the San Claudio and Luarca WWTPs is being tested. The adsorption of micro-pollutants
and new sensors that allow real-time monitoring at the Grado WWTP and the Cabornio DWTP
are also being studied.
• JPI MARADENTRO: the project “Managed Aquifer Recharge: Addressing The Risks of Re-
generated Water” is led by the Institute of Environmental Assessment and Water Research
in the European Horizon 2020 ERA-NETs Cofund WaterWorks2018 programme, with the
participation of partners in France, Italy and Sweden.
A 400 m2 infiltration system will be built at the Medina del Campo WWTP for the advanced
treatment of treated water and its reuse in recharging aquifers. With the scientific institutes,
system design and simulation tools will be developed, optimising the operation and costs of
processing contaminant removal compared to conventional tertiary treatment.
• H2020 SABANA: the University of Almeria leads eleven partners from five countries (inclu-
ding the Czech Republic and Hungary) with three large companies: FCC Aqualia, Westfalia
(Germany) and the Italian food group Veronesi. The project optimises the production of new
biofertilisers and bio-stimulants from algae, and work is nearing completion on two cultivation
units to talling five hectares and corresponding bio-refineries at the WWTPs of Mérida and
Hellín (Albacete).
• H2020 RUN4LIFE: led by FCC Aqualia, a consortium of fifteen entities in seven countries
implements in four demonstration sites (Sneek/Netherlands, Ghent/Belgium, Helsing-borg/
Sweden and Vigo/Spain) new concepts of nutrient retrieval from the separation of grey and
black waters.
In Vigo’s Free Trade Zone, FCC Aqualia operates an MBR in an office building for grey waters,
which is reused in the toilets, and an AnMBR in black waters to produce bioenergy. Various
nutrient recovery options are tested, followed by advanced oxidation to remove viruses and
processing contaminants, and by evaluating the quality and safety of effluents and by-pro-
ducts as fertilisers through greenhouse cultivation trials.
A larger installation is being prepared at the Balaídos industrial estate with effluent from Ci-
troën, and the bioelectrochemical FBBR technology (Elsar patented process) is being eva-
luated for the direct treatment of sewage, using the inoculum from the Guijuelo reactor as
biomass.
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An important part of the project is the dialogue with the users of new services and by-pro-
ducts to optimise services and water and energy consumption through decentralised mana-
gement of these systems and to assess the effect of new fertilisers.
• H2020 SCALIBUR: the project led by the Itene technology centre and involving twenty-one
partners from ten countries, reached its halfway point in 2020. Since the end of 2018 and
with a duration of four years, it has focused on waste reduction and recovery on a European
scale. With the participation of FCC Medio Ambiente, the project focuses on improvements to
waste processing plants in Madrid, Lund (Sweden) and Rome (Italy) to recover resources and
promote the circular economy.
Within this framework, Aqualia has implemented new sludge treatments at the Estiviel WWTP
(Toledo), with improvements in thickening (Orege system) and dual digestion in two stages,
and simplifying mud stabilisation without heated concrete structures. The project has facilita-
ted initial innovation activities at SmVaK in the Czech Republic, to convert organic matter into
by-products and bioenergy.
• BBI DEEP PURPLE: led by FCC Aqualia and supported by thirteen partners from six coun-
tries, the project implements on a demonstration scale a new bio-refinery model, which inte-
grates purple phototrophic bacteria (PPB) in anaerobic carrousel-type systems. These bacte-
ria use solar energy to treat wastewater without aeration, and transform the organic content of
wastewater and municipal wastes into raw materials for biofuels, plastics, cellulose and new
base materials in the chemical and cosmetics industry.
A first FCC Aqualia prototype is operating at Toledo-Estiviel, and a demonstration reactor 10
times larger is planned for the Linares WWTP. Parallel activities are also being prepared at the
SmVaK WWTP in the Czech Republic.
• BBI B-FERST: with Fertiberia as the leader, and with ten partners from six different coun-
tries, FCC Aqualia is involved in the development of new biofertilisers from urban wastewater
and by-products from agri-food industries. The potential of recovered raw materials in the
production of fertilisers in three countries (Spain, Italy and the Czech Republic) is analysed,
and a struvite precipitation system is developed at the Jerez WWTP to incorporate recovered
phosphorus in a new Fertiberia bio-based fertiliser demonstration plant in Huelva.
• LIFE INTEXT: the project is led by FCC Aqualia, with the AIMEN and CENTA technology cen-
tres and the Aarhus University in Denmark supporting SMEs in Germany, Greece and France
to optimise low-cost wastewater treatment technologies in small towns. The aim is to mini-
mise energy costs, carbon footprint and waste, and to provide ecologically and economically
sustainable solutions. The construction of a demonstration platform for these technologies at
the Talavera WWTP operated by FCC Aqualia is in its final phase.
• LIFE ULISES: the project coordinated by FCC Aqualia is supported by three technology cen-
tres, CENTA, EnergyLab and CieSol of the University of Almeria. To optimise and transform
conventional WWTPs into “energy production factories”, eliminating their carbon footprint,
anaerobic pretreatment with the PUSH reactor is being implemented at the El Bobar WWTP
in Almeria, operated by Aqualia, which is also being evaluated at two WWTPs in Portugal. Di-
gestion is improved by hydrolysis and biogas is used as a vehicle fuel with an ABAD BioEnergy
refining system and a biomethane dispenser.
• LIFE INFUSION: after the completion of the Life Methamorphosis project, the Barcelona Me-
tropolitan area wanted to extend the project to prepare the designs for several new resource
recovery plants. Together with the EureCat technology centre and the operator of Ecoparc2,
EBESA, the leachate digestion system will be optimised with FCC Aqualia, AnMBR and ELAN
technologies, with the addition of an ammonia stripping system from the Belgian SME Detri-
con. Two waste management entities, Cogersa in Asturias and AMIU in the region of Genoa/
Italy are also participating to evaluate the options for implementing the solutions in their plants.
• LIFE PHOENIX: the project, led by FCC Aqualia and supported by the technology centres
CETIM and CIESOL, will optimise tertiary treatment to achieve the most ambitious aims of the
new European regulation on water reuse (EU 2020/741). In order to evaluate various effluents,
from ADP in Portugal, the Almeria Provincial Council and the Guadalquivir Hydrographic Con-
federation, three mobile plants have been designed, a 50 m3/h physical-chemical treatment
plant, a 30 m3/h filtration plant and a 20 m3/h ultrafiltration plant.
• LIFE ZERO WASTE WATER: the project, led by FCC Aqualia, will demonstrate at the Valde-
bebas WWTP, with Canal Isabel II as a partner, the combined treatment of Urban Wastewater
and of Organic Fraction of Municipal Solid Waste (OFMSW) with the AnMBR anaerobic reac-
tor, followed by ELAN in the water line, for 50 m3/d, allowing water treatment with a neutral
carbon footprint. The management of OFMSW at a municipal level and the possibility of con-
nection with the sewer system for the transport of the mixture in a single stream.
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• H2020 SEA4VALUE: led by the EureCat technology centre, and with 14 partners from seven
countries, the project focuses on recovering resources from concentrated brine in seawater
desalination plants (SWDPs), with basic scientific developments funded 100% by the EU. At
its Desalination Innovation Centre in Dénia, FCC Aqualia will continue to develop solutions
for the revaluation of brine and new desalination methods, with solar concentration of brine,
selective precipitation of magnesium, obtaining chlorine dioxide, and optimisation of the re-
mineralisation of permeate with micronised calcite, reducing CO2 consumption, turbidity and
the size of the installation. The implementation of pilot units in the various WWTPs operated
by FCC Aqualia will be evaluated, with an analysis of the technical and economic impact.
• H2020 ULTIMATE: in the “Smart Water Economy” call for proposals, FCC Aqualia participa-
tes in two of the five selected consortia, which receive up to 15 million euros of support per
project. In Ultimate, led by the Dutch technology centre KWR, nine demonstrations of syner-
gies between water utilities and industries are implemented with 27 partners.
At the Mahou WWTP in Lleida, operated by FCC Aqualia, the comparison of the FBBR (Elsar)
and AnMBR anaerobic reactors at a 20 m3/h scale is being prepared to recover biomethane
and power a fuel cell. The co-digestion of yeast is also being studied, as well as support for
FCC Aqualia’s other client partner, Aitasa.
• H2020 REWAISE: the Rewaise project has the largest business participation of the five pro-
jects selected in the “Smart Water Economy” call for proposals, and FCC Aqualia leads the
twenty-four partners including water companies from the UK (Severn Trent), Sweden (Vasyd)
and Poland (AquaNet) and 7 SMEs to implement new circular economy and digital mana-
gement solutions in nine “living labs” including FCC Aqualia’s implementations in Badajoz,
Canary Islands, Dénia and Vigo.
Construction
FCC Construcción promotes an active policy of technological development, constantly bringing
innovation to its projects, with a strong commitment to research and development, sustainability
and contribution to the quality of life of society as competitive factors. This innovation policy is
coordinated with all other business areas of the FCC Group.
The development and use of innovative technologies to carry out the works is an important con-
tribution to added value and is a differentiating factor in today’s highly competitive and internatio-
nalised market.
The three types of projects developed by FCC Construcción and its investee companies are:
internal projects, projects with other companies in the FCC Group and projects in collaboration
with other companies in the sector or other related sectors, often with technology-based SMEs,
which enables open innovation projects to be carried out with the participation of the value chain
and occasionally in horizontal cooperation. In addition, the presence of universities and technology
centres is essential in almost all projects.
Some of the projects are carried out in a consortium formed with Public Administrations, as is
the case of the European Project LIFE ZERO IMPACT, Development and demonstration of an
anti-bird strike tubular screen for High Speed Rail lines, in which the Administrator of Railway In-
frastructures (Adif) participates.
The projects highlighted in 2020 are listed below:
•
IMPACTO CERO: the aim here is the development of a bird anti-collision screen, with a de-
sign based on free-standing tubes.
Rewaise reinforces FCC Aqualia’s strategic lines of technological development, with sustai-
nable desalination and new membranes, the recovery of materials from brine, the reuse of
wastewater and its transformation into energy and by-products, and the simulation of water
quality, processes and networks.
In addition, in 2020, four new patents were granted. The first one related to the Anaerobic Mem-
brane Reactor. The second was granted for the Bio-electrochemical Fluidised Bed. The third on
a Photobioreactor with purple bacteria and finally the fourth on the Microbial Desalination Cell.
• ROBIM: project within the CIEN programme financed by CDTI (Centre for the Development
of Industrial Technology) the objective of which is autonomous robotics for the inspection and
evaluation of existing buildings with BIM integration, with the development of an automated,
active and multidisciplinary technology for the inspection, evaluation and diagnosis of the
composition and state of conservation and energy efficiency of the enclosures of the building
assets, which facilitates obtaining accurate and sufficiently detailed information on the cons-
truction systems and pathologies as well as an in-depth analysis of the building.
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• PWDRON: project financed by CDTI (Centre for the Development of Industrial Technology),
the objective of which is the development of a centralised system for the automated moni-
toring of the execution of infrastructures in linear civil engineering works, using drones with
advanced technological features, as well as the development of a new technological platform
for the exchange, processing and distribution of data in BIM.
• REFORM2: project presented with the help of the Catalan Waste Agency and whose objec-
tive is the recovery of by-product (of 0/6 porphyry, a by-product that originates from the ge-
neration of ballast and gravel) from quarry extraction through its incorporation into thermoset
and thermoplastic matrices for different applications.
• STARPORTS: project of the INNTERCONECTA programme (Canary Islands) of CDTI, which
will develop a Distributed Wireless System of monitoring, prevention and action for Coastal
Management. It consists of the development of a smart platform capable of providing detailed
information on the state of any maritime infrastructure in real time. It is also intended to deve-
lop advanced sensor networks that can be integrated within the same infrastructure and allow
significant and reliable data on the state of the infrastructure to be obtained.
• RESALTO: project financed by CDTI with the aim of researching and developing sustainable
road elements for speed reduction. Three main objectives are investigated; power generation,
safety signalling and environmental connectivity.
• BIMCHECK: innovation project approved by CDTI consisting of the implementation of a se-
cure and automated technological management environment based on BIM and Blockchain
for FCCCO’s quality processes.
• SAFETY 4D: project financed by CDTI and the objective of which is to develop an advanced
and high performance process for occupational hazard prevention in construction with the
implementation of the BIM methodology.
• BICI SENDAS: project within the 2018 CIEN programme from CDTI, the aim of which is the
development of a sustainable, energy self-sufficient, intelligent, decontaminating, integrated
and safe cycle lane.
• ONLYBIM: a project of the IDEPA of the Principality of Asturias regional programme, the aim
of which is the development of a module for the design and execution of Non-Lineal Works
under BIM methodology
• POTAMIDES: MATINSA project and approved by CDTI whose objective is the development
of a new technologically advanced universal tool that allows the decision-making in the com-
prehensive management of the hydraulic public domain at a hydrographic basin level, with the
purpose of optimising the availability and quality of the resource guaranteeing the satisfaction
of demands.
• PIELSEN: belonging to the Challenges-Partnership programme, seeks to create a homoe-
ostatic 3D wrap-around architecture to create intelligent adaptive sensitive skin on Building
Facades.
• SAFE: project of the Challenges-Partnership programme, where the objective is the Develop-
ment of an Autonomous System for Anchoring Structures in Maritime Construction Work. This
smart system makes it possible to reduce dependence on human resources, minimise risk,
maximise efficiency and increase the safety of field manoeuvres.
• GAUDI: project approved in the call for projects in collaboration with CDTI and consisting of
the development of a Knowledge Management platform based on Artificial Intelligence algori-
thms and Content Curation techniques.
FCC Construcción participates in many European and national R&D organisations that share the
objective of coordinating the company’s role as a driving force for research, development and
technological innovation in the building area, in accordance with the proposals of the European
Union’s current H2020 programme.
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Cement
9. Other relevant information.
In 2020, Cementos Portland Valderrivas Group continued its collaboration in the European R&D
project, BIORECO2VER, in which it is a leading partner.
Share performance and other information
This project aims to obtain alternative processes for the production, on a commercial scale, of
certain chemical products (like isobutene or lactic acid) in a more sustainable way from the cap-
ture of industrial CO2 emissions.
9.1. Share Data
477
The ultimate goal is to use this industrial CO2 as a raw material and stop depending on fossil
resources for the manufacture of these products.
In 2019, Cementos Portland Valderrivas Group made its main contribution, the characterisation of
the emission gases, capturing them “in situ” and sending them to its partners, LTU and Enobraq.
Currently, part of the captured gases remain in custody at the El Alto factory in case new tests,
analysis, etc., are necessary.
Attached is a table detailing the performance of FCC’s shares during the year compared to the
previous year.
Closing price (€)
Change in the period
Maximum (€)
Minimum (€)
Average daily trading (nº of shares)
Average daily trading (million euro)
Capitalisation at end of period (million euro)
Jan. – Dec. 2020
Jan. – Dec. 2019
8.80
-16.3%
11.96
7.17
74,593
0.7
3,600
10.52
-3.4%
12.80
10.36
46,163
0.5
4,127
No. of shares circulating at closure
409,106,618
392,264,826
9.2. Dividends
The Company’s Board of Directors resolved to execute the decision adopted at FCC’s General
Shareholders’ Meeting on 2 June 2020, under item six on the Agenda, to distribute a scrip divi-
dend. On 24 June, a cash payment of 0.40 euros gross per share was made to those sharehol-
ders who requested it. On 2 July, the bonus issue of 16.841,792 shares was registered, bringing
the capital stock to 409.106,618 shares, which were listed on 10 July 2020.
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10. Definition of alternative performance
measures according to ESMA regulations
(2015/1415en)
Ebitda
We define EBITDA as earnings from continuing operations before tax, results of companies ac-
counted for using the equity method, financial result, depreciation and amortisation charges, im-
pairment, gains or losses on disposals of non-current assets, subsidies, net changes in provisions
and other non-recurring revenues and expenses. The reconciliation of EBITDA to the income
statement headings is as follows:
Operating profit/(loss)
Depreciation of fixed and non-current assets and allocation of grants
for non-financial fixed and non-current assets, and other assets
Impairment and gains/(losses) on disposal of fixed and non-current
assets
Other gains/(losses)
EBITDA
Ebit
Dec 2020
Dec 2019
572,7
477.3
(6.9)
4.4
1,047,5
511,6
449.1
59,8
5,3
1,025.8
This corresponds to the operating profit/(loss) in the consolidated income statement presented in
the accompanying consolidated financial statements.
Backlog
As at any given date, the backlog reflects pending production, that is, amounts under contracts or
customer orders, net of taxes on production, less any amounts under those contracts or orders
that have already been recognised as revenue. We value pending production according to the
expected number of units at current prices as at the date of calculation. We include in backlog
only amounts to which clients are obligated by a signed contract or firm order.
In the Environment area, we recognise the backlog for our waste management contracts only
when the relevant contract grants us exclusivity in the geographical area where the plant, landfill
or other facility is located.
In our Water business area, we calculate initial backlog on the basis of the same long-term volume
estimates that serve as the basis for our contracts with customers and for the tariffs set in those
contracts.
In our Construction business area, we recognise the backlog only when we have a signed con-
tract with, or a firm order from, the end customer.
Once we have included a contract in our backlog, the value of pending production under that
contract remains in backlog until fulfilled or cancelled. However, we do adjust the values of orders
in the backlog as needed to reflect price and schedule changes that are agreed with clients. For
example, after the date of calculation, a price may increase or decrease as a result of changes
in contractual production due to additional works to be performed. Due to a number of possible
factors, we could fail to realise as revenue part or all of our calculated backlog with regard to a
given contract or order. Our backlog is subject to adjustments and project cancellations and is,
therefore, an uncertain indicator of future earnings.
In the Real Estate area, the FCC Group calculates the backlog as the amount of the collection
corresponding to the sales of homes pending completion at year-end.
Net financial debt
Net financial debt is defined as total gross financial debt (current and non-current) less current
financial assets, cash and other current financial assets. The calculation of net debt is provided in
note 29 to the consolidated financial statements.
The FCC Group uses backlog as an extra accounting measure in certain areas of our businesses.
We calculate the backlog for our Environment, Water and Construction business areas because
these businesses are characterised by medium- and long-term contracts. Because of its typically
short-term purchase cycle, we do not calculate backlog for our Cement business area.
Voluntary turnover rate
Ratio of voluntary departures during the year to staff. Both voluntary departures and leaves of
absence are considered to be low.
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Fomento de Construcciones y
Contratas, S.A.
Financial Statements for the year ended
31 December 2020 and Directors' Report,
together with Independent Auditor's
Report
Translation of a report originally issued in
Spanish based on our work performed in
accordance with the audit regulations in
force in Spain. In the event of a discrepancy,
the Spanish-language version prevails.
Deloitte, S.L.
Plaza Pablo Ruiz Picasso, 1
Torre Picasso
28020 Madrid
España
Tel: +34 915 14 50 00
www.deloitte.es
Translation of a report originally issued in Spanish based on our work performed in accordance with the
audit regulations in force in Spain. In the event of a discrepancy, the Spanish-language version prevails.
INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS
To the Shareholders of Fomento de Construcciones y Contratas, S.A.,
Report on the Financial Statements
Opinion
We have audited the financial statements of Fomento de Construcciones y Contratas, S.A. (the
Company), which comprise the balance sheet as at 31 December 2020, and the statement of
profit or loss, statement of changes in equity, statement of cash flows and notes to the financial
statements for the year then ended.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
equity and financial position of the Company as at 31 December 2020, and its results and its cash
flows for the year then ended in accordance with the regulatory financial reporting framework
applicable to the Company (identified in Note 2 to the financial statements) and, in particular,
with the accounting principles and rules contained therein.
Basis for Opinion
We conducted our audit in accordance with the audit regulations in force in Spain. Our
responsibilities under those regulations are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the ethical requirements, including those
pertaining to independence, that are relevant to our audit of the financial statements in Spain
pursuant to the audit regulations in force. In this regard, we have not provided any services other
than those relating to the audit of financial statements and there have not been any situations or
circumstances that, in accordance with the aforementioned audit regulations, might have
affected the requisite independence in such a way as to compromise our independence.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Deloitte, S.L. Inscrita en el Registro Mercantil de Madrid, tomo 13.650, sección 8ª, folio 188, hoja M-54414, inscripción 96ª. C.I.F.: B-79104469
Domicilio social: Plaza Pablo Ruiz Picasso, 1, Torre Picasso, 28020, Madrid.
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480
Impairment of ownership interests in Group companies and associates
Recoverability of deferred tax assets
Description
Procedures applied in the audit
Description
Procedures applied in the audit
The Company has ownership interests in the
share capital of Group companies and
associates, the carrying amount of which at
31 December 2020 was EUR 2,936 million
net of accumulated impairment losses.
The determination of the recoverable
amount of the Company's ownership
interests requires the use of significant
judgements and estimates by management,
with regard to both the method for
determining the recoverable amount
(equity adjusted by the unrealised gains
existing at the date of measurement or,
where appropriate, discounted cash flows),
and the consideration of the key
assumptions established for each method in
question.
The aforementioned matters, and the
significance of the ownership interests held,
led us to determine the situation described
to be a key matter in our audit.
Our audit procedures included, among
others, obtaining and analysing the
recoverability tests conducted by Company
management on the ownership interests,
and verifying the clerical accuracy thereof
and the appropriateness of the valuation
method used in relation to the investment
held. Also, we analysed the recovery
assumptions used by management and the
consistency thereof with the historical data
on the investees. In addition, we reviewed
the sensitivity analyses of the key
assumptions identified.
Lastly, we focused our work on reviewing
the disclosures made by the Company in
relation to these investments. Notes 4-e.1
and 9 to the financial statements contain
the disclosures relating to these matters
required by the applicable accounting
regulations.
The Company’s balance sheet as at 31
December 2020 includes deferred tax assets
of EUR 55 million, which must be considered
in the context of the tax group headed by
the Company.
At year-end, Company management
prepares financial models to assess the
recoverability of the deferred tax assets,
taking into account the applicable
regulatory framework and the most recent
business plans approved for the various
entities forming part of the consolidated tax
group, in addition to the estimated reversal
periods for the temporary differences
recognised in the balance sheet. We
identified this matter as key in our audit,
since the preparation of these models
requires a significant level of judgement,
basically in connection with the projections
of business performance and the estimation
of the reversal periods for the temporary
differences recognised, which affect the
assessment of the recoverability of the
deferred tax assets recognised in the
balance sheet.
Our audit procedures to address this matter
included, among others, the performance of
tests on the design and implementation of
the relevant controls that mitigate the risks
associated with the process of assessing the
recoverability of deferred tax assets, as well
as verification that the aforementioned
controls operate effectively.
In addition, we performed substantive tests
based on the obtainment of the financial
models prepared by the Company to assess
the recoverability of the deferred tax assets
and the supporting documentation used as
the basis for their preparation. We reviewed
the financial models obtained, analysing,
among other matters, the consistency of the
pre-tax profits projected for the coming
years with the historical and actual data for
the current year. Also, we analysed the
estimated reversal periods for the
temporary differences recognised in the
balance sheet and involved our internal tax
experts in analysing the complex estimates
that might affect income tax for the current
year.
Notes 4-h and 16 to the accompanying
financial statements contain the disclosures
relating to the Company’s deferred taxes.
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481
Provisions and contingent liabilities relating to Alpine
Description
Procedures applied in the audit
As a result of the process of liquidating the
Alpine Group that started in 2013, a series
of lawsuits were initiated against the FCC
Group headed by the Company, some of
which are for a significant amount.
Company management has to assess
whether these claims constitute contingent
liabilities or whether, on the other hand, a
provision should be recognised in the
balance sheet. This was a key matter in our
audit, since this assessment requires
Company management to make significant
judgements, especially regarding the
probability of there being an outflow of
resources in the future or the possibility of
measuring the amount of the obligation
reliably. These judgements and estimates
are made by Company management based
on the opinions of the internal legal
advisory department and its external legal
counsel, and are submitted to controls
designed to ensure the consistency and
reasonableness of the criteria applied.
Our audit procedures included, among
others, the review of the evolution of each
of the lawsuits affecting the Company as a
result of the liquidation of the Alpine Group.
To this end, we obtained confirmations
from its internal and external legal counsel
in order to analyse the current status of the
proceedings in progress and discussed with
Company management its assessment of
the related risk, classifying the risk as
"remote", "possible" or "probable". Also, we
evaluated whether the Company's
disclosures in the financial statements in
relation to the claims currently in progress
were adequate, in accordance with the
applicable regulatory framework, and
checked whether the details thereof were
consistent with the evidence gathered in
the course of our tests.
Notes 4-j, 12 and 17 to the accompanying
financial statements contain the detail of
the provisions and disclosures regarding the
contingent liabilities relating to the claims
associated with Alpine.
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Other Information: Directors' Report
The other information comprises only the directors’ report for 2020, the preparation of which is
the responsibility of the Company’s directors and which does not form part of the financial
statements.
Our audit opinion on the financial statements does not cover the directors’ report. Our
responsibility relating to the directors’ report, in accordance with the audit regulations in force,
consists of:
a) Solely checking that the non-financial information statement and certain information included
in the Annual Corporate Governance Report, to which the Spanish Audit Law refers, have been
furnished as provided for in the applicable legislation and, if this is not the case, reporting this
fact.
b) Evaluating and reporting on whether the other information included in the directors’ report is
consistent with the financial statements, based on the knowledge of the entity obtained in the
audit of those financial statements, as well as evaluating and reporting on whether the content
and presentation of this section of the directors’ report are in conformity with the applicable
regulations. If, based on the work we have performed, we conclude that there are material
misstatements, we are required to report that fact.
Based on the work performed, as described above, we observed that the information described
in section a) above was furnished as provided for in the applicable legislation and that the other
information in the directors’ report was consistent with that contained in the financial statements
for 2020 and its content and presentation were in conformity with the applicable regulations.
Responsibilities of the Directors and of the Audit and Control Committee for the
Financial Statements
The directors are responsible for preparing the accompanying financial statements so that they
present fairly the Company's equity, financial position and results in accordance with the
regulatory financial reporting framework applicable to the Company in Spain, and for such
internal control as the directors determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company's
ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the directors either intend to liquidate the
Company or to cease operations, or have no realistic alternative but to do so.
The audit and control committee is responsible for overseeing the process involved in the
preparation and presentation of the financial statements.
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Auditor's Responsibilities for the Audit of the Financial Statements
Additional Report to the Audit and Control Committee
The opinion expressed in this report is consistent with the content of our additional report to the
Company's audit and control committee dated 25 February 2021.
Engagement Period
The Annual General Meeting held on 8 May 2019 appointed us as auditors for a period of one
year from the year ended 31 December 2019.
Previously, we were designated pursuant to a resolution of the General Meeting for the period of
one year and have been auditing the financial statements uninterruptedly since the year ended
31 December 1990, taking into account the content of Article 17.8 of Regulation (EU) No 537/2014
on specific requirements regarding statutory audit of public-interest entities.
DELOITTE, S.L.
Registered in ROAC under no. S0692
Raquel Martínez Armendáriz
Registered in ROAC under no. 20755
25 February 2021
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with the audit regulations in force in Spain will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is included in
the Appendix to this auditor's report. This description forms part of our auditor's report.
Report on Other Legal and Regulatory Requirements
European Single Electronic Format
We have examined the digital file in European Single Electronic Format (ESEF) of Fomento de
Construcciones y Contratas, S.A. for 2020, which comprises an XHTML file including the financial
statements for 2020, which will form part of the annual financial report.
The directors of Fomento de Construcciones y Contratas, S.A. are responsible for presenting the
annual financial report for 2020 in accordance with the format requirements established in
Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 (“ESEF Regulation”). In
this regard, the Annual Corporate Governance Report was incorporated by reference in the
directors’ report.
Our responsibility is to examine the digital file prepared by the Company’s directors, in
accordance with the audit regulations in force in Spain. Those regulations require that we plan
and perform our audit procedures in order to ascertain whether the content of the financial
statements included in the aforementioned file corresponds in full to that of the financial
statements that we have audited, and whether those financial statements were formatted, in all
material respects, in accordance with the requirements established in the ESEF Regulation.
In our opinion, the digital file examined corresponds in full to the audited financial statements,
and these are presented, in all material respects, in accordance with the requirements established
in the ESEF Regulation.
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We also provide the entity's audit and control committee with a statement that we have complied
with relevant ethical requirements, including those regarding independence, and we have
communicated with it to report on all matters that may reasonably be thought to jeopardise our
independence, and where applicable, on the related safeguards.
From the matters communicated with the entity's audit and control committee, we determine
those matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter.
Appendix to our auditor’s report
Further to the information contained in our auditor’s report, in this Appendix we include our
responsibilities in relation to the audit of the financial statements.
Auditor's Responsibilities for the Audit of the Financial Statements
As part of an audit in accordance with the audit regulations in force in Spain, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the use by the directors of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
We communicate with the entity's audit and control committee regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
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FCC_Annual Report_2020
484
A
2
FCC Group
2020
Sustainability
Report
FCC Group non-financial information
report, in compliance with Law 11/2018
on non-financial information and diversity
Letter from the CEO_ 485
The FCC Group: more than 120 years at the service
of society _ 487
The context of the FCC Group in 2020 _ 499
Sustainability in FCC’s business model _ 505
FCC, committed to dialogue _ 520
Ethics and integrity at the FCC Group _ 527
Respect for the environment at FCC _ 537
Committed to the FCC Group Human Resources team _ 561
FCC and its commitment to society _ 582
FCC’s commitment to its clients and suppliers _ 590
The FCC Group: innovation for sustainable
development _ 595
Annexes _ 599
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FCC’s future
commenced 120 years ago
485
Pablo Colio Abril
CEO of the FCC Group
As CEO, it is an honour to provide you with the consolidated
Sustainability Report of the FCC Group as an international ref-
erence company in Citizen Services, corresponding to 2020,
which is part of the Directors’ Report included with the Financial
Statements, authorised for issue by FCC’s Board of Directors.
This pandemic era has coincided with the 120th anniversary
of our company showing, once again, our ability to resist and
adapt to all types of contingencies, thanks to that human and
technological experience that we have accumulated for more
than a century.
Allow me to begin these lines by recalling that with this 2020
edition we are celebrating the XV anniversary of that first FCC
Group social responsibility report published in 2005, demon-
strating our Group’s commitment to the transparency and com-
munication of our performance in social, environmental and
good governance matters.
We are all aware that the Sustainability Report that I present to
you is encompassed within an unprecedented global context,
marked by the health and socioeconomic crisis derived from
COVID-19, which continues to be one of the greatest challeng-
es, not only of our business journey as Group, but of global
society as a whole.
Together we have demonstrated, once again, that we are ca-
pable of successfully facing any challenge on a global scale,
lending our human and service capital to the needs of the cities
in which we operate. This is only possible with the dedication
and loyalty of our teams,which have always been distinguished
by their commitment, high level of professionalism and excel-
lent customer service. Throughout 2020, we have maintained
and strengthened essential citizen services in the communities
in which we operate, at a time that has been critical for the
well-being of citizens and for the viability of the cities them-
selves.
Thanks to the almost 60,000 people that make up the FCC
Group, we have established ourselves as a world benchmark
in the area of environmental services, end-to-end water man-
agement and infrastructures, obtaining a total turnover of 6,158
million euros in 2020.
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Our international presence, in more than 30 countries, in whose
markets we have obtained 40.37% of revenues in the last year,
guarantee the globality and expansion that we have experi-
enced as a centenary group.
Likewise, our balanced and diversified business model, sup-
ported by committed and consolidated shareholder support,
has placed us on the path of profitable and sustainable growth
and has allowed us to fulfil our commitment to offer a global
service to the citizen, along with our cooperation in the consol-
idation of socially integrated cities.
In our 120-year history, the responsibility to improve people’s
well-being and respond successfully and effectively to urban
challenges has characterized us from day one: demograph-
ic, economic, environmental and social changes, in search of
greater daily sustainability.
We are living in a time in which it is urgent to review the growth
models of the past, to embark on a new phase of prosperi-
ty, more sustainable and inclusive, which allows us to act with
greater coordination and effectiveness in the face of these glob-
al challenges.
We have a decade ahead of us to materialise the 2030 Agenda,
through the attainment of the Sustainable Development Goals
(SDGs), which guide the efforts of the public and private sectors
to respond to the main global challenges. Let no one doubt that,
as a benchmark company in citizen services, we will continue to
contribute to maintaining and consolidating the sustainable de-
velopment of the societies in which we operate, promoting the
contribution to the SDGs through our strategy and responsible
management. To this end, we have renewed our commitment
to the United Nations Global Compact and its ten principles, an
initiative of which we have been a part for more than 10 years.
In this direction, our stakeholders will find in this 2020 Sustain-
ability Report, the social, environmental and good governance
performance of the FCC Group, which will allow them to un-
derstand how we integrate care for the environment, respect
for people and integrity into our business model through our
Compliance Model, at the top of which is our Code of Ethics
and Conduct updated in 2018 by the FCC Group’s Board of
Directors.
The content of the Report has been prepared in accordance
with the main international sustainability standards, such as the
Global Reporting Initiative (GRI) framework, after having carried
out a prior exhaustive analysis of the Group’s materiality.
Throughout the 2020 business year, we have led various mile-
stones in the area of sustainability, foreseen in the latest 2018-
2020 CSR Master Plan approved by the Board, the implemen-
tation of which is detailed in full in this Report.
Lastly, rest assured that we will continue working every day to
offer innovative, global and social impact solutions that allow
the efficient management of resources and the improvement of
infrastructures, helping to increase the quality of life of citizens
and reinforce the sustainable progress of society.
We face the coming years with great optimism, as I trust in our
solid experience to build a business future, according to the bril-
liant socially responsible record that precedes us and that, with
total security, will ensure that we overcome this hard time that we
have had to live.
I have no doubt that our culture of constant innovation and our
commitment to integrity and rigor with social welfare, will allow
us to consolidate ourselves at the forefront of the development
of the communities of tomorrow and to continue to be an inter-
national benchmark group in the provision of Citizen Services.
We have an added advantage - that for the last 120 years we
have been building FCC’s future day by day.
Pablo Colio Abril
CEO of the FCC Group
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The FCC Group:
more than 120 years at the service of society
FCC, creating sustainable cities
The FCC Group is currently one of the international benchmark
groups in the provision of citizen services, with activity in nearly
30 countries. Since its inception, and given the type of activities
that it carries out, the company has worked to improve peo-
ple’s quality of life, promote the well-being of the communities
in which it operates and to promote their socioeconomic de-
velopment.
The following are the FCC Group’s main activities:
Environment
• Waste collection.
• Urban solid waste treatment
and recycling.
• Ground maintenance.
• Maintenance of sewerage
networks.
• Recovery of contaminated soils.
• Street cleaning.
Cement
• Cement.
• Trading.
• Other businesses
(concrete, aggregates and
mortars).
Construction
• Civil works.
• Construction.
• Infraestructure maintenance.
• Industrial.
• Concessions.
• Prefabricated construction.
• Brand image.
Water
• Design, construction and financing
of water infrastructures.
• Operation, maintenance and
technical assistance services.
• Comprehensive management of
public services.
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The FCC Group’s vision provides a purpose for the entire com-
pany, guiding the Group’s actions and allowing the establish-
ment of a goal shared by all members of the organisation. Thus,
a transversal culture is consolidated which, regardless of the
different business lines, is applied in the performance of its ac-
tivities, contributing to the economic, social and environmental
development of society as a whole.
Through its constant work and its business strategy, the FCC
Group has managed to position itself as one of the most im-
portant citizen services groups on an international scale. Thus,
the Group strives to offer global and innovative solutions for the
efficient management of resources and the improvement of in-
frastructures, thus contributing to the sustainable progress of
society.
488
FCC celebrates 120 years of history
The mission, values, vision and business model of the FCC
Group have been forged since its foundation in 1900. The
effort, dedication, and technical and human quality of the
people who, at some point, have worked and continue to
work for this Group, has made it possible to build its history
and its great achievements throughout all these years, be-
coming a world leader in the field of environmental services,
end-to-end water management, infrastructures and the ce-
ment sector.
For the FCC Group, the beginning of the last century fo-
cused on the construction of cities, playing a fundamental
role in improving social well-being, through waste, water
and sanitation management. Over the years, the natural leap
was to favour the connection between these cities, begin-
ning the construction of kilometres of highways, railway and
underground lines, at the same time as the management
and cleaning of parks and gardens began to be assumed.
During the 70s and 80s, work began in the international are-
na, while the importance of rationalising water management
was valued. Since then, FCC has continued to adapt to so-
cial demands and new trends, betting on the conservation
of the environment in all its projects, always with the aim of
improving the well-being of citizens.
In recent years, the entry of the new reference sharehold-
er into the company has meant a change in the cycle in
the financial, operational and governance spheres. Thus,
through a solid financial structure, the company faces the
coming years with great optimism, based on pillars that are
persistent enough that the future is as bright as the past.
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489
Transversal model of value creation
Urban areas are undergoing a profound transformation, which
means responding to a series of global social and environ-
mental challenges. Population growth, the scarcity of natural
resources, climate change or the existence of social and eco-
nomic inequalities are some of the challenges that these types
of environments will have to adapt to.
In response to these challenges, the FCC Group’s business
model, so closely linked to the development of cities, promotes
innovative and cross-cutting solutions to contribute to the resil-
ience and sustainability of urban environments.
In this regard, to promote the sustainable evolution of cities and
position itself at the forefront of its competitive environment,
the FCC Group has developed its cross-cutting value creation
model. This model, shared by all the Group’s businesses, is
based on:
Being an operator with vast experience in this business,
with differentiated technical specialisation, capable of lead-
ing large consortiums in complex projects.
Having a highly specialised and committed team of people,
whose priorities include the protection of safety and health.
Having local roots in the places where it undertakes its op-
erations. This makes it an essential part of the communities
in which it operates, allowing the development of trusting
relationships.
Having a solid international position with broad develop-
ment prospects in markets with great opportunities.
In this way, the FCC Group is aware that the creation of the cit-
ies of the future is a challenge that requires the joint efforts of its
different businesses, seeking synergies and finding sustainable,
innovative and efficient solutions that generate a real impact on
society.
FCC Medio Ambiente
Environmental services
Cementos Portland Valderrivas
Sustainable and efficiente
infrastructure
Aqualia
End-to-end water management
FCC Construcción
A business model at the forefront in creating the cities
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Our mission, vision
and values
This philosophy, transferred from Senior Management to all em-
ployees, is common to all companies, establishing a guide that
should orientate the actions of all staff towards the vision’s joint
goal. Furthermore, it involves compliance with the strictest pa-
rameters of operational excellence and ethical principles, thus
ensuring the long-term sustainability of the FCC Group.
490
These principles are included in the Group’s Code of Ethics and
Conduct, which guarantees the responsible management of
FCC’s activity with the different stakeholders, ensuring compli-
ance and ethical behaviour. In addition to the Code, the FCC
Group has other control tools, initiatives, due diligence proce-
dures and certain Compliance policies that guarantee complete
and effective management, with the Compliance Committee be-
ing the internal body responsible for overseeing the monitoring
of these policies.
The FCC Group’s mission as a supplier of Citizen Services is to
efficiently and sustainably design, perform and manage envi-
ronmental services, end-to-end water management and large
infrastructure construction projects to improve the lives of cit-
izens.
In accordance with its vision for the future, the FCC Group is
working towards becoming an international benchmark for Citi-
zen Services offering global, innovative solutions for the efficient
management of resources and the improvement of infrastruc-
tures, contributing to improving the quality of life of citizens and
the sustainable progress of society as a whole.
The FCC Group contributes, through the different sectors in
which it is present (environmental services, infrastructures and
the end-to-end management of the water cycle) to the trans-
formation of the cities and municipalities in which it operates,
thus promoting social welfare and sustainable development. Its
values define the identity and culture of the FCC Group, and
constitute the basis of the ethical behaviour that should guide
the actions of the Group.
Honesty and respect
We want to be recognised for honest and
honourable behaviour, worthy of the trust of
collaborators, clients and suppliers as
long-term and leading partners
3
2
4
Our values
1
5
Well-being and community
development
Aware of the value that our services bring to
society, we are committed to the protection of
the natural environment, the development and
well-being of communities
Loyalty and commitment
We favour diversity, promote
professional development and
recognise merit ant creativity as a
stimulus to productivity and progress
Results-driven
We pursue the improvement and
achievement of goals, to make FCC a
leader in profitability and
competitiveness
Rigour and professionalism
We work with exemplarity and a
service-minded approach, developin
our capabilities to look for efficient and
innovate solutions
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Corporate governance model
491
The Spanish National Securities Market Commission (CNMV)
includes in its “Code of good governance for listed companies”
a series of recommendations for the business sector in line with
the best international corporate governance practices. Aware
of the importance of corporate governance in the organisation’s
performance, the FCC Group fully or partially complies with
86.44% of the applicable recommendations.
In addition, in order to provide greater details on the company’s
corporate governance practices, the FCC Group prepares the
“Annual Corporate Governance Report” and the “Annual Re-
muneration Report” on an annual basis, following the reporting
guide of the CNMV. Both reports are available on the Group’s
corporate website.
Governance Structure
As can be observed in the following diagram, the General Share-
holders’ Meeting is the Company’s overriding decision-making
body, specifying its competences in the Regulations of the
FCC’s General Shareholders’ Meeting.
For its part, and for matters that are not attributed to the General
Shareholders’ Meeting, the Board of Directors has the highest
powers and faculties to manage, direct, administer and repre-
sent the Company. This, in turn, has set up three commissions
for more effective management and supervision: The Executive
Committee, the Audit and Control Committee and the Appoint-
ments and Remuneration Committee.
General Shareholders’ Meeting
It is governed by the provisisions of the Law, the Company’s
Baylaws, and the Regulations laid down by the General
Meeting.There is a guarantee of equal treatment for all
shareholders in terms of information participation and the
right to vote at the General Meeting.
Board of Directors
It is responsible for the management and representation of
the FCC Group. It is the body responsible for the
supervision and control of the company’s management,
entrusted to the CEO and Senio Management.
Executive Committee
Audit and Control Committee
Permanently delegated body, designated
by the Board of Directors, which in turn
defines the responsibilities that are
attributable to it, as well as the Directors
who are members of ti.
It is responsible for taking decisions with
regard to FCC Group Investments, access
to credit, loans, guarantee, lines of
collateral and other financial instruments.
It supports the Board by reviewing the
preparation of economic-financial and
non-financial information, the internal control
and independence of the external auditor.
Its members need to have technical
knowledge of the Group’s activity sectors.
Furthemore, at least one of the members
must have suitable knowledge of
accounting and/or auditing.
Appointments and
Remuneration Committee
It is the body responsible for: information,
advising and proposals regarding the
appointment, re-election, ratification and
dismissal of directors, remuneration of the
directors and senior executives of the FCC
Group, as well as the control of possible
conflicts of interest and related operations,
without prejudice to any other functions,
whatever their nature, attributed by Law, the
Company’s Bylaws or the Regulations of the
Board of Directors.
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Below is the composition of the Board of Directors and its Committees:
Executive Committee
Audit Committee
Appointments and
Remunerations Committee
How it works
492
Esther Alcocer Koplowitz(1)
Chairwoman (Proprietary)
Esther Koplowitz Romero de Juseu(2)
Deputy Chairwoman (Proprietary)
Pablo Colio Abril
CEO
Alicia Alcocer Koplowitz(3)
Proprietary
Carmen Alcocer Koplowitz(4)
Proprietary
Gerardo Kuri Kaufmann
Executive
Álvaro Vázquez de Lapuerta
Independent
Carlos Slim Helú(5)
Proprietary
Alejandro Aboumrad González
Proprietary
C
Alfonso Salem Slim
Proprietary
Juan Rodríguez Torres
Proprietary
Antonio Gómez García
Proprietary
Manuel Gil Madrigal
Independent
Henri Proglio
Independent
The Board of Directors’ Regulations establish that it must meet
as often as necessary to effectively carry out its functions and,
at least once a quarter, or whenever the interest of FCC requires
it. The company’s Articles of Association also stipulate that “The
Board of Directors shall meet at least once a quarter, and when-
ever agreed by the President, or whoever is acting as such, or
when requested by the Executive Committee or at least one
third of the members of the Board.”
During the 2020 business year, the Board met nine times, with
an average attendance of 90.48%, thus complying with the
aforementioned requirements.
C
C
C: Committee President
(1) Representing Dominum Desga, S.A.
(2) Representing Samede Inversiones 2010, S.L.U.
(3) Representing EAC Inversiones Corporativas, S.L.
(4) Representing Dominum Dirección y Gestión, S.A.
(5) Representing Inmobiliaria AEG, S.A. de CV.
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493
Remuneration of the Administrators
Pursuant to the Articles of Association, the remuneration sys-
tem applicable to the directors must be aimed at promoting
the long-term profitability and sustainability of the Company and
incorporate the necessary precautions to avoid excessive risk
taking and the rewarding of unfavourable results.
Thus, as is reflected in article 38.7 of the Company’s Articles of
Association, and in article 28.2 of the Board of Directors’ Reg-
ulations, the remuneration of the directors must be in accord-
ance with the importance of society, the economic situation and
the market standards of comparable companies.
For its part, the General Shareholders’ Meeting is in charge of
agreeing on said remuneration considering the functions and
responsibilities of each member. Aside from fixed remuneration,
allowances are also awarded for personal attendance at meet-
ings of the Board and internal Committees that are convened
during the year, as well as another variable amount for executive
directors depending on compliance with social objectives.
For further information on FCC’s Remuneration Policy, as well
as on remuneration accrued by each of the directors, the Annu-
al Remuneration Report can be consulted, available on the FCC
Group’s corporate website.
Principles and criteria for setting remunerations
Relationship with the
market standards and
the economic position
of the company
Motivation and retention
of the most qualified
professionals
Remuneration linked
to attendance at
meetings
Promotion of
long-term profitability
and sustainability
Transparency
Link with professional
performance and
qualifications
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Diversity in the Board of Directors
Gender diversity on the Board of Directors
Diversity is an essential principle for all FCC Group employees,
including its governing bodies. For this reason, the functions of
the Appointments and Remuneration Committee include ensur-
ing that the selection processes favour diversity of gender, ex-
perience and knowledge, and that they do not present implicit
bias that could lead to any type of discrimination.
Hence, the percentage of female directors on the FCC Board of
Directors at 31 December 2020 was 28.57 percent.
Regarding other diversity indicators with respect to FCC’s gov-
erning bodies, on the Board of Directors, 50% of the members
are of Spanish nationality and the other 50% are of other na-
tionalities (Mexico and France). The following is a graphic rep-
resentation of the Board’s composition:
14 directors
71%
men
29%
women
FCC Board of Directors
Nationalities of the Board of Directors
64% Propietary
22% Independent
14% Executives
50% Spanish
50% Foreign
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The FCC Group
in figures
2020 has been a challenge for the whole of society. The COVID-
19 pandemic has completely changed the global landscape,
forcing a rapid adaptation of all companies to face the new
challenges that have emerged. However, FCC has continued
to organise and participate in a large number of social, environ-
mental and good governance (ESG) projects, supporting the
sustainable development of the communities in which it partic-
ipates, creating employment and promoting economic growth.
In order to respond to new needs, many of the initiatives have
focused on health security and economic recovery as a result of
the crisis. Innovation projects that seek to improve the quality of
life of all the people who receive FCC products or services, as
well as of the communities in which it operates, have not been
neglected either. Some of the Group’s initiatives and recognition
in 2020 were as follows:
495
January
March
May
July
FCC Indrutrial becomes the
first construction company to
obtain a “Zero Waste”certifica-
te awarded by AENOR.
Aqualia achieves total
energy autonomy for two
desalination plants.
FCC Medio Ambiente
receives the Gold Medal of
Merit from the Las Palmas de
Gran Canaria Fire Brigade for
its collaboration in
extinguishing the fire that
devastated the island in 2019.
4
3
5
Aqualia reopens its customer
services offices, applying all the
necessary safety protocols.
FCC Medio Ambient is shortlisted
for the European Business Awards
for the Environment (EBAE) for its
sustainable mobility Project.
FCC participates in
FORUM, a virtual meeting
to promote a new vision
and strategy for the
future after the 2020
crisis.
2
1
6
8
7
September
FCC Construcción
becomes the first
Spanish construction
company to verify its
carbon footprint in
70% of its activities
worldwide.
FCC participates in
the #SupporttheSDG
campaign, celebrating
the fifth anniversary of
its aproval.
10
November
FCC Group celebrates
International Day for Tolerance,
International Day for the
Elimination of Violenve against
Women and World Science Day
for Peace and Development.
The FCC Group updates its
Harassment Prevention and
Eradication Protocol.
9
11
12
April
June
February
FCC migrates all its
websites to a Liferay
DXP Cloud technology
environment, Improving
efficiency and data
management.
The FCC Group launches a
charity campaign for food
Banks,”No home without
food” and joins the campaign
ot the Ministry of Equality
“We are with you; we will
stop gender violence
together”.
The FCC Group Collaborates with
the Ministry of Foreign Affairs in the
preparation of the report: Contribution
of Spanish companies to sustainable
development in Latin America.
Cementos Portland Valderrivas begins
its process for using biomass as a fuel.
August
FCC celebrates its 120th
anniversary of incorporation at
the services of the people.
The FCC Group contributes to
the country’s social
reconstrution after the impact
of the COVID-19 pandemic.
October
Cementos Portland Valderrivas
renews its EMAS
Eco-Management and Audit
Scheme registration for the
eleventh year.
The FCC Group celebrates the
International Day of Climate
Action on 24 October.
The FCC Group celebrates World
Cities Day by demonstrating its
commitment to the social and
economic progress of cities.
December
FCC Medio Ambiente
certifies its protocols
against COVID-19 with
AENOR.
FCC Construcción signs its
III Equality Plan.
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496
In order to contribute to the Group’s commitments in terms
of transparency and accountability, the direct economic value
generated and distributed by the Group in all the countries in
which it operates is reported below, following the international
reporting standard Global Reporting Initiative (GRI).
Economic value generated and distributed
(thousands of euros)
Economic value generated
Turnover
Other income
Economic value distributed
Operating costs
Employee cost
Capital suppliers
Taxes
Community
Economic value retained
6,484,798
6,158,023
326,775
5,766,796
3,466,576
1,971,110
238,513
86,273
4,324
718,002
FCC holds its 2020 General Shareholders Meeting
The FCC Group’s General Shareholders’ Meeting was
held in June 2020 with the aim of analysing the results
of the 2019 business year and approving the financial
statements, directors’ reports, as well as the distribution
of the flexible dividend. In accordance with Law 11/2018,
the report on non-financial information was presented as a
separate item on the agenda, for approval by the General
Shareholders’ Meeting. Due to the COVID-19 pandemic,
the event took place electronically in line with the recom-
mendations of the CNMV, the WHO and the relevant au-
thorities.
The Board was chaired by Esther Alcocer Koplowitz,
president of FCC, and Pablo Colio Abril, CEO, who high-
lighted and expressed their gratitude for the important
work that FCC professionals have carried out during the
pandemic, leading essential services. During the seminar,
emphasis was placed on the great effort made in recent
years to renew the FCC Group, adapting to new trends
and needs, and managing to enter the path of profitability
and sustainability.
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Environment area
The Environmental Services area of the FCC Group has been
providing municipal services and end-to-end waste manage-
ment for over a hundred years and serves almost 60 million
people in nearly 5,000 municipalities.
The company operates in a total of 12 countries providing a va-
riety of services that reflect its extensive experience in the sec-
tor, including: collection, processing, recycling, energy recovery
and disposal of municipal solid waste; cleaning of public roads;
maintenance of sewage networks; maintenance and protection
of green areas; processing and disposal of industrial waste; and
recovery of contaminated land.
The Environment area is made up of four geographical divisions:
Iberia: FCC Medio Ambiente Spain (Including the industrial
waste business) and FCC Environment Portugal
United Kingdom: FCC Environment UK
Central and Eastern Europe: FCC Environment CEE
United States: FCC Environmental Services
In 2020, the area’s turnover reached 2,900 million euros, which
represents a reduction of just 0.9% compared to 2019, with a
Pre-Tax Income of 155.2 million euros, equivalent to 5.4% of the
turnover, a noteworthy performance taking into account the dif-
ficult socioeconomic circumstances caused by the COVID-19
pandemic in 2020. Contracting stood at 2,108.8 million euros,
which places portfolio volume at 9,184.3 million euros.
The Environment area annually manages about 25 million tons
of waste and produces about 3.5 million tons of secondary raw
materials (SRM) and refuse-derived fuel (RDF). The company
has approximately 700 waste management operations facilities,
of which about 200 are environmental complexes dedicated to
processing and recycling waste, including 11 waste energy re-
cycling projects with a capacity of 3.2 million tons per year and
360 MW of non-fossil fuel electricity.
Aqualia
Aqualia is the water management company owned by the citi-
zen services group FCC (51%) and by IFM Investors (49%).
The company is Europe’s fourth largest private water company
in terms of population served and ranks amongst the top ten
worldwide Global Water Intelligence (August 2019).
It currently provides services to over 25 million users(1) in 17
countries: Algeria, Saudi Arabia, Colombia, Chile, Ecuador,
Egypt, United Arab Emirates, Spain, France, Italy, Mexico,
Oman, Portugal, Qatar, Czech Republic, Romania and Tunisia.
The company reported 1,188 million euros of revenue in 2020,
with an order back log of nearly 15,000 million euros.
Aqualia is a benchmark in the sector and stands at the van-
guard as a specialised, transparent and innovative entity. We
have reached this position thanks to the commitment and ex-
tensive experience of our team of professionals who are con-
stantly striving to improve efficiency in production processes
and optimise resources, while placing citizens clearly at the core
of our actions and policies.
This work approach and the continuous progress in innova-
tion and in the use of new technologies have enabled us to
bolster the company’s leadership in the Spanish market and
make headway in this regard in international markets, based on
an ambitious but moderate strategy defined to consolidate the
company’s international presence. Sustainable development
has a distinctively intrinsic role in Aqualia’s business model:
combining the generation of social benefits with a fair profit yield
from activities puts the company in a privileged situation in the
water management sector.
Aqualia’s commitment and responsibility vis-à-vis the munici-
palities in which it carries out its activities go beyond merely
rendering a service: Aqualia has always sought to contribute to
improving the well-being of people, particularly the most vulner-
able groups.
Aqualia assumes the role played by the private sector to
achieve Sustainable Development Goals and shows this in its
daily commitment to promoting this culture within the compa-
ny and amongst its stakeholders. For this reason, as well as
promoting campaigns to publicise the SDGs, it has identified
and prioritised those to which the company contributes through
its activity and its corporate commitments. And, through ac-
tive listening, it knows the importance that stakeholders give to
Aqualia’s contribution to the different SDGs.
(1) Global Water Interlligence, The world’s top 50 private water
operators, 2019.
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498
Cementos Portland Valderrivas
The cement activity of the FCC Group is undertaken by Cemen-
tos Portland Valderrivas, S.A. and subsidiaries, whose business
line is mainly the manufacture of cement, which accounted for
more than 90.23% of total revenues in 2020. The remaining
percentage for this business model (9.77%) involved concrete,
aggregates and mortar.
In the last business year, taking the geographical diversification
of the company into account, more than 29% of revenues came
from Tunisia and the United Kingdom. However, the Group’s in-
ternational presence is not limited to these countries because it
also exports to North Africa, Central America and several coun-
tries in Europe.
The company’s operating structure is based on the cycle for
the cement business. The consists of the extraction of raw
materials (aggregates), the process for manufacturing clinker,
cement, concrete, dry mortar and special products, and final
distribution.
Cementos Portland Valderrivas is the largest cement group in
Spain by productive capacity and directly or indirectly owns
production centres in a number of regions in the country: Can-
tabria, Basque Country, Navarra, La Rioja, Castile-León, Ma-
drid, Aragon, Andalusia and Catalonia. Its products are distrib-
uted in all 17 Autonomous Regions.
FCC Construcción
The FCC Group’s construction business has more than 120
years’ experience and it has a presence in a total of 26 coun-
tries. It is a benchmark in the management and execution of civil
works (roads, railways, airports, hydraulic and maritime works,
tunnels, bridges, underground networks, treatment plants) and
building construction (residential and non-residential: hospitals,
football stadiums, museums, offices) and its activities cover all
areas of engineering and construction.
During the 2020 business year, the construction area recorded
a total aggregate attributable backlog of 5,155.8 million euros.
Gross earnings (EBITDA) reached 53.6 million euros and rev-
enue dropped by 6.3% over the previous year and stood at
1,611 million euros. In 2020, the international project backlog
decreased by 2.1% and the income from domestic activity in-
creased by 27.6% compared to the previou s year, standing at
over 848 million euros.
It is currently the fourth most important construction company
in Spain and is one of the top 40 in the world. It has proven
experience in undertaking projects under concession and it has
a group of companies dedicated to the industrial sector and
grouped under the FCC Industrial brand, as well as other activ-
ities relating to the construction sector (Matinsa, Megaplas and
Delta Prefabricados).
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The context of the FCC Group in 2020
499
FCC and global
challenges
In turn, unstoppable technological development is allowing
the emergence of new techniques and tools, at the service
of companies and society, applicable to all sectors of activity.
Technology helps to respond to the different global challenges
that we currently face, and will be key in future urban develop-
ment. Among others, these innovations have enabled a rapid
response to the pandemic, and allow the development of new,
more efficient processes with less environmental impact, con-
tributing to the fight against climate change and enabling the
application of a circular economy model.
For the FCC Group, it is essential to analyse the socioeconomic
context on the performance of its activity, and based on this
study, the company has identified six interconnected global
trends, which have a direct impact on its business model and
its main stakeholders.
During its 120-year history, the FCC Group has shown that
it knows how to adapt to its environment, offering the citizen
services that society requires at all times. Along these lines, in
order to meet social expectations and effectively overcome the
challenges that it faces, the Group constantly analyses trends
that may affect its business, as well as the way it relates to its
different stakeholders.
Over time, the FCC Group has contributed to the development
of cities that, according to forecasts, will continue to expand
even more in the future. The Group firmly believes that this
growth must be carried out in a sustainable way, limiting the
impact of these areas on their surroundings and adapting them
to the risks of the future. Through its commitment to the circu-
lar economy, the company aims to help limit the environmental
impact of cities, while also contributing to the fight against cli-
mate change and promoting the sustainable consumption of
resources.
In 2020, urban environments have not been immune to the ef-
fects of the pandemic caused by COVID-19. Its citizens have
suffered an event that has had, on a global scale, the great-
est health, economic and social impact in recent decades.
COVID-19 has affected cities and their inhabitants, transform-
ing, among other factors, relationships, consumption habits
and mobility patterns.
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500
Expansion of cities
and sustainable urbanisation
Currently, 4,200 million people, 55% of the world’s population,
live in cities, and this percentage is expected to continue to in-
crease. By 2050, cities are expected to host 68% of the world’s
population, which means that 1.2 million km2 will be urbanised
in the next three decades.(2)
The increase in population and its settlement in urban centres
means that the towns are transformed into cities, which will ex-
pand geographically, increasing their population density. This
represents new challenges for the FCC Group with regard to
land and natural resource management so that cities continue
to be functional, which will require the optimisation of resources
and infrastructures, in the short, medium and long term.(3)
The expansion of cities will require a huge investment in infra-
structure in the coming decades, which should allow the main-
tenance of large urban centres. In this context, social demands
are increasing for this urbanisation to be sustainable.
The sustainability of construction, both of buildings and of in-
frastructures, mainly concerns the technological field, and the
choice of materials to be used on site. For the FCC Group,
constant innovation in the use of primary and recycled materials
means an increase in efficiency and a reduction of construction
costs. The Life Cycle Analysis of the civil works elements paves
the way as a fundamental factor to consider, both when building
new infrastructures and when adapting existing infrastructure.(4)
The FCC Group faces this expansive trend in cities by betting
on the development of Smart Cities and sustainable urban ac-
cessibility, minimising the environmental impact of its processes
and services.
Sustainable use of natural resources
In the last twenty years, the material footprint or, what is the
same, the amount of raw material necessary to satisfy basic
needs has increased continuously throughout the world. This
indicator measures the pressure that economic development
exerts on the environment, consumption and production of
natural resources. A clear example of the challenges that we
face due to the unsustainable use of resources can be found in
water management, since it is estimated that, if not addressed
correctly, the scarcity of water itself could involve the displace-
ment of around 700 million people by 2030.(5)
The circular economy model is a way to protect natural resourc-
es, making a more efficient use of them, also trying to reinforce
awareness of current consumption patterns. This model, driv-
en by the public and private environment and widely accepted
by society, also contributes to the fight against climate change
and, at the same time, allows the generation of new jobs.
The efficient and responsible management of urban solid waste
(USW) and the reuse of water are some of the global priorities
of the 2030 Agenda, in which the FCC Group has specialised
business lines. Regarding waste management, the Environment
area carries out different R&D&i projects to extend the life cycle
of resources, supports public initiatives to promote the transi-
tion towards a circular economy model and raises the aware-
ness of its collaborators in environmental matters.
For its part, Aqualia, specialised in the management of the end-
to-end water cycle, is committed to continuous investment in
innovative projects that allow it to detect new opportunities and
implement more efficient processes. This, together with the
commitment to the recovery of residual water, allows this re-
source to be used more efficiently, reducing water stress.
(2) Source: World Bank.
(3) Source: Cities in the World, OECD Urban Studies.
(4) Source: World Cities Report 2020, UN Habitat.
(5) The Sustainable Development Goals Report 2020, United Nations.
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Climate change
The fight against climate change is one of the greatest challeng-
es on a global scale. The impacts derived from this phenome-
non include changes in weather patterns, as well as a greater
probability of extreme events, such as floods or droughts, in
different regions of the world.
According to the World Economic Forum, this phenomenon is
considered to be one of the most significant risks, taking into
account both its impact and the probability of occurrence. The
transition to a low-carbon economy is high on the public sector
agenda, a transition in which the private sector plays a key role
in setting emission reduction targets.
This will be a particularly relevant challenge for urban areas,
since, according to the United Nations, cities consume 78% of
the world’s energy, producing more than 60% of greenhouse
gas emissions. In this scenario, the International Energy Agency
estimates that reducing these emissions into the atmosphere
will involve significant investments over a long period of time.
For the FCC Group, it is a priority to contribute to reducing the
effects of global warming, which is why it has its own specific
strategy in the matter of Climate Change, and directs its efforts
at progressively implementing the ISO 50001 Standard on en-
ergy efficiency and the commitment to clean energy and the
control of GHG emissions.
501
COVID-19
The pandemic caused by the COVID-19 disease has generated
an unprecedented impact on society and the world economy,
affecting different sectors and geographies across the board.
Managing it has meant a response and involvement at all levels
and from all areas political, health, legal, social and business.
The FCC Group, aware of the importance of its activity for the
proper functioning of urban areas and to minimise the impact
on the well-being of citizens, has continued to provide the re-
quired services even in the most critical moments of the crisis.
In addition, aligned with the policies, practices and recommen-
dations in the fight against the spread of the disease, it has
contributed through its services, to promoting greater hygiene
in public spaces in cities and in detecting the presence of the
virus in urban wastewater, which allows earlier detection of in-
fections.
The pandemic has increased the urgency when facing some
sanitary and urban challenges, such as the distribution of pub-
lic space, the recreation of people and housing and sanitation
conditions. These new challenges motivate the FCC Group to
maintain its work approach towards improving citizen well-be-
ing and towards increasing people’s health and safety.
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502
The FCC Group contributes to
the country’s social reconstruction
after the impact of the COVID-19
pandemic
The FCC Group has actively collaborated, through all its
business areas, in different social initiatives, in an exercise
of solidarity and responsibility, where its own collaborators
have also participated, positioning itself as a significant
player at the forefront of the country’s social reconstruction.
In line with the social commitment that characterizes the
Group, a solidarity campaign has been carried out in favour
of food banks, under the “No home without food” initiative,
in collaboration with the La Caixa Foundation and Caixa-
Bank, with the aim of to help the most vulnerable families
affected by the crisis caused by COVID-19.
Staff solidarity that has materialised in the form of dona-
tions, together with the company’s economic contribu-
tion, added a total of 131,000 euros to this campaign, an
amount that has been allocated to the 54 Food Banks in
Spain, so that they could buy supplies and satisfy the social
demand of the most disadvantaged families.
FCC joins Madrid Future, an initiative
to promote social and economic
recovery in the capital after the
health crisis
FCC has joined Madrid Future, the new non-profit associa-
tion founded as a result of the health crisis, with the aim of
promoting and encouraging projects aimed at the social and
economic reactivation of Madrid, due to the effects of the
COVID-19 pandemic.
Within the framework of this social initiative, it is expected
that projects in the area of sustainability and digital trans-
formation will be developed around three fundamental axes:
Spanish language and culture, health and well-being, and
sport.
About 30 large companies and entities have signed the as-
sociation’s charter, as well as its status, in a collaborative
project that generates hope for the economic and social re-
covery of the city.
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The FCC Group responds to the COVID-19
in a cross-cutting way through its different business areas
Since the beginning of the COVID-19 pandemic, the FCC
Group has carried out various actions to ensure the operation
of its business, with many of its main activities being key and
essential, such as: street cleaning, waste collection, infrastruc-
ture maintenance and end-to-end water cycle management.
In accordance with its different business lines and to mitigate
the effects of the health crisis, the following actions have been
carried out:
Environment business: to maintain basic services for the
cities, this line of business has reinforced the means of
protecting its workers in order to carry out their essential
tasks. Among them, priority has been given to disinfection
with flushers, hydro-cleaning vehicles or fumigators, and
selfless work has been carried out such as the disinfection
of town halls or other public buildings that lacked resourc-
es.
503
Aqualia: to guarantee the continuity of an essential ser-
vice such as the management of the end-to-end water cy-
cle, Aqualia has immediately reinforced its protocols with
the ultimate aim of protecting its employees and custom-
ers. In addition, among other actions, all planned water
cuts have been suspended, guaranteeing the supply of
water to all homes.
Construction business: to cover the demand of patients
in the midst of the COVID-19 crisis, FCC Construcción
has fitted out some health units of the hospital projects it
executes.
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The support of the private sector is essential in the development
of social action initiatives that contribute and promote equal op-
portunities, favour inclusion and provide responses to the needs
of vulnerable groups, at risk or in a situation of social exclusion.
FCC’s commitment to social equality materialises every year
through participation in initiatives together with NGOs and col-
laborating entities of the Group, through participation in differ-
ent social projects, which improve the employability of people,
promoting educational plans and training, fostering the labour
insertion of different groups and the development of communi-
ties and social inclusion.
These initiatives, which reflect the FCC Group’s commitment
to local communities, stakeholders and society as a whole, are
aligned with its principles on equality, diversity and inclusion,
and its commitment to a diverse work environment, in which the
talent of each person is valued, regardless of their race, gender,
age or other factors. This diversity, both within the staff and on
the Board of Directors, is a reality that more and more investors
are turning their attention to.
The Group values diversity, in a broad sense (age, race, nation-
ality, religion, culture, etc.), including the you_diverse initiative
within its talent strategy.
Technological development
The technological revolution is a fact that is observed in the day-
to-day life of cities. Big Data, Internet of Things (IoT) or Block-
chain systems are placed at the service of cities to completely
modify the existing infrastructure. The digitisation of key sys-
tems for cities, in which the FCC Group participates, represents
a turn of the page in the way of managing urban resources.
The digitisation of cities implies a structural modification of the
citizen’s relationship with their environment, from their con-
sumption patterns to the form in which they do business. This
transformation reaffirms the empowerment of citizens and con-
tributes to their greater involvement in decision-making, which
indirectly affects the development of the cities in which they live.
The citizen is, after all, the greatest resource of cities, since they
propose new ideas of innovation and act as the drivers of the
city.
Citizens are increasingly demanding, requiring more quality in-
formation on the different products and services offered, taking
advantage of interconnectivity and easy access to smart devic-
es. To respond to this need, the Group has set up a compre-
hensive multichannel service that establishes its own real-time
information follow-up systems and even participates in round
tables to detect its stakeholders’ possible expectations.
The FCC Group, aware of the importance of being at the fore-
front, annually invests resources in the development of R&D& i
projects, with the aim of being a benchmark in new technolo-
gies and thus offering continuous improvements to citizens that
have an impact on their quality of life.
Inequalityand social exclusion
Despite the economic and social progress of the last decades,
there is, more and more, a greater disparity in the distribution
of wealth. With each generation, the income and opportunity
gap is more pronounced and, due to the crisis resulting from
COVID-19, existing inequalities within and between countries
have increased. The pandemic is particularly affecting the most
vulnerable groups, and is making it difficult for certain sectors of
the population to access education.(6)
(6) The Sustainable Development Goals Report 2020, United Nations.
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Sustainability in FCC’s business model
505
Since the founding of the FCC Group, the social and economic
development of cities has enabled the business to progress.
FCC considers that the role of sustainability will be fundamental
to ensure that the cities of the future can face the main global
challenges, such as climate change, population growth, poverty
and equal opportunities, among others.
For the FCC Group, the progress of cities must guarantee the
well-being of their citizens, respect for human rights and the
preservation of the environment. Throughout its history, FCC
has accompanied the constant evolution and transformation of
cities, providing sustainable solutions and launching projects
and initiatives in the area of corporate social responsibility.
In this sense, in 2005 the Group’s Board of Directors decid-
ed to publish the first CSR and sustainability report, informing
stakeholders of FCC’s involvement with people’s well-being and
respect for the environment, and thereby reflecting their socially
responsible actions. This initiative was subsequently replicated
by all the Group companies, with each business publishing its
CSR report on a regular basis.
In 2020, the health crisis has posed a new challenge for the
functioning of cities. New needs have emerged to prevent the
spread of COVID-19, such as greater hygiene measures in
public spaces, while it was necessary to maintain basic servic-
es. The FCC Group, aware of the importance of its role in the
well-being of citizens, has focused its efforts on continuing with
its business activities, such as supplying water to the population
or urban cleaning tasks, among others.
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506
The FCC Group’s
CSR policy
Throughout its history, the development of the FCC Group’s
activity has been based on fostering long-lasting, transparent
and mutually beneficial relationships with the stakeholders with
which it interacts. Through its Corporate Social Responsibility
Policy (hereinafter, CSR Policy), approved in 2016 by the Board
of Directors, the Group includes all its commitments related to
integrity and business ethics, respect for the environment and
the contribution of value to society.
CSR policy governance
FCC’s Board of Directors is the body responsible for ensuring
compliance with the Group’s CSR Policy, through the Executive
Committee, thus aligning itself with recommendations 53 and
54 of the CNMV’s Code of Good Governance.
There are also Corporate Responsibility or Sustainability com-
mittees in the different business divisions, which act as those
responsible for the development, implementation and compli-
ance with the CSR Policy in each unit.
For its part, integrated within the General Secretariat, is the
Compliance and Corporate Responsibility Department, which
develops the results monitoring systems, related to the social
responsibility practices of the FCC Group, identifying the asso-
ciated risks, designing the strategy for its control, and coordi-
nating the FCC Corporate Responsibility Committee.
The following graph represents the structure for responsibilities
in matters of Corporate Social Responsibility, attributable to
each of the governing bodies involved:
Board of Directors
Executive Coomittee
Regular monitoring
of CSR perfomance
CR Committee
Aqualia CSR Committee
FCC Medio Ambiente
Sustainability Committee
FCC Construcción
Sustainability Committee
CPV CSR Commitee
Sustainability Report
(presented to the AGM annually)
CSR Master Plan
Compliance and RC Directorate
included in General Secretariat
Proposal for CSR Master Plan
Development of follow-up systems
Development of CSR Policy
Identification of CSR risks and oportunities
Coodination of the FCC Response Committee
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Principles of action
Quality and innovation
Management efficiency
507
In accordance with the CSR Policy, the principles of action that
guide the behaviour of the FCC Group are:
Both FCC and all of its collaborators continually strive to
identify, satisfy and even anticipate the needs of their cus-
tomers (internal and external), being aware of the conse-
quences of their actions and decisions.
In addition, innovation and improvement is continuous
within the different business lines.
The FCC Group always prioritises simplicity and austerity,
facilitating the attainment of its business objectives while
striving to optimise the use of resources and cash.
Likewise, it protects and optimises the use of resources
that are more difficult to measure, such as the structure
and management systems of the company, its knowledge
and experiences, its brand and the relationships that the
company maintains with its external stakeholders (clients,
suppliers, etc.).
Integrity in its actions
Proximity and commitment
FCC’s Code of Ethics and Conduct aims to encourage all
individuals linked to any FCC Group company to be orient-
ed by guidelines requiring the highest level of commitment
to comply with legislation, regulations, contracts, proce-
dures and ethical principles.
The Code enacts, in a practical fashion, the values shared
at the FCC Group, strengthening the commitment to peo-
ple, respecting their rights and dignity, and demonstrat-
ing zero tolerance towards discrimination based on race,
religion or gender. The FCC Group is also committed to
respecting the environment, acting under the principles of
precaution and efficiency in the use of natural resources
and to biodiversity.
The FCC Group’s social responsibility is understood as a
business management model that pursues not only the
creation of value added for the shareholder, but also a joint
effort with the communities to promote their well-being and
development, transforming them into smarter, more inclu-
sive and cleaner environments.
The FCC Group is committed to the priority objective of
achieving the employment well-being of its employees, also
promoting their professional development.
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The CSR Master Plan
CSR 2020 MASTER PLAN
508
In November 2017 the FCC Group’s Board of Directors ap-
proved its IV CSR Master Plan 2018-2020, the result of an in-
depth analysis of the sustainability needs and trends detected
by the Group in the medium and long term, and in compliance
with the CSR Policy approved in 2016.
The CSR Master Plan, aligned with the Sustainable Develop-
ment Goals, has positioned the company as a leading player
in social, economic and environmental challenges, focusing its
responsible management on 15 action programmes that are
structured around three strategic pillars: connecting with citi-
zens, smart services and exemplary conduct.
The FCC Group’s CSR Action Plan was concluded during this
business year after three years of intense work in which out-
standing efforts were made to meet the expectations and de-
mands of stakeholders, to respond to the global challenges of
sustainable development and to contribute to fulfilling the Unit-
ed Nations 2030 Agenda.
The backbone that supports the responsible management of
the FCC Group, through its three strategic pillars, contributes in
a cross-cutting manner to bring to fruition its vision, improving
the lives of citizens and the sustainable progress of society.
Smart
Services
FCC is a leader
in designing the
sustainable cities
of the future
FCC
Connected
FCC ia a catalyst for
citizens to play a leading
role in a sustainable city.
FCC Ethics
FCC is an example
of authenticity in its
commitment.
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Below are details of some of the FCC Group’s sustainability
initiatives during its 2018-2020 Master Plan, as well as some
outstanding projects for the 2020 financial year.
Axis I. Connecting with citizens:
Citizens as protagonists
of sustainable cities
The FCC Group is aware that to respond to the challenges
posed by cities in the XXI century and to promote sustainable
development, it is necessary to understand and analyse the real
expectations of citizens. For this reason, the company, through
its different lines of business, promotes constant dialogue and
active listening.
Likewise, with the aim of maximising the positive social impact
on the communities in which it operates, the FCC Group pro-
motes intelligent and inclusive progress in cities, launching vari-
ous actions and promoting social dialogue with administrations
in urban centres, to meet the needs of stakeholders at all times.
In this regard, to respond to the social demands of citizens in
this area, the FCC Group implements initiatives encompassing
the following lines of action:
FCC + Action: the objective of this line of action is based
on providing a coordinated and aligned response in those
places in which the company detects an accentuated so-
cial need that has not yet been met. In this regard, each
business line implements social action projects, through
collaborations with non-profit organisations and solidarity
actions, with the aim of contributing to improve people’s
quality of life.
The FCC Group has contributed in a coordinated manner
to improving the living conditions of the most vulnerable
groups through training programs for women, volunteer
activities or social and labour insertion projects. Like-
wise, alliances have been established through collabora-
tion agreements with non-profit entities such as Caritas,
ACNUR or the Spanish Red Cross, to cover the social
needs in the different communities in which it operates.
FCC Educates: the FCC Group, aware of the technical
knowledge and capacities of its professionals, tries to pro-
mote and provide, through this axis, training programmes
to society, to bring about the company’s internal strengths.
Throughout the implementation of the Master Plan, FCC
has improved knowledge management and contributed to
education, providing social value through its own collab-
orators. As examples of initiatives, it is worth highlighting
the creation of web portals to raise awareness about the
use of water, to the participation of professionals in national
and international forums and conferences on CSR matters,
in working groups, as well as in professional training pro-
grammes and partnership agreements with schools and
universities.
FCC + Action
FCC “Gives away kilos of generosity”
to the Pan y Peces Foundation
For yet another year, and in line with the solidarity intrinsic
to FCC’s business, a collaboration campaign was launched
together with the Pan y Peces Foundation under the slogan
‘Give kilos of generosity’, during the Christmas holidays.
Thanks to the initiative and generosity of FCC employees,
the solidarity campaign amassed personal hygiene prod-
ucts, non-perishable food and Christmas sweets and toys
for the most vulnerable families.
FCC Educates
Aqualia and the University of Almería sign
an agreement approving the “Aqualia of the
End-to-End Water Cycle” Chair
In 2020, as part of the FCC Group’s collaboration in envi-
ronmental education, the “Aqualia of the End-to-End Water
Cycle” Chair was approved, in which joint research will be
carried out to apply solar energy in the different processes
of the end-to-end water cycle. The Chair’s work team will be
made up of both University teaching staff and Aqualia repre-
sentatives from different areas, including the Department of
Innovation and Technology.
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2025 city
Aqualia, building the circular economy
master plan for Castilla-La Mancha
Aqualia is collaborating with the Castilla-La Mancha Com-
munity Council to implement the circular economy mas-
ter plan for the region. Within this context, the Castilla-La
Mancha Sustainable Development Department counted on
Aqualia to participate in the Technology and Circular Econ-
omy conference, at which the company had the opportuni-
ty to present its strategy and projects in this area.
During this conference, the solutions implemented by the
company in Spain were also described. In this regard, since
2015, Aqualia has implemented twelve innovative initiatives
in the region, thus contributing to the design of the cities
of the future.
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City 2025: in this pillar, the company works as a facilitator
of dialogue between the different stakeholders to build, in
a collaborative way, a sustainable, inclusive and humane
city. To this end, the company participates and collaborates
with different municipalities in defining the Vision of the sus-
tainable city, by organising roundtables in which the main
urban challenges are addressed.
During the years of the Master Plan, work has been carried
out on roundtables, debates, expert panels, conferences
and informative breakfasts, with the aim of promoting so-
cial dialogue between stakeholders, making them partic-
ipate in the sustainable challenges of cities of the future:
such as sustainable mobility, the need for new and resilient
infrastructures, efficient water and waste management or
the humanisation of cities.
Measurement of the socioeconomic impact: it is essen-
tial for the company to ascertain and measure the scope of
the social, economic and environmental impact of its activ-
ity, to improve two-way communication with stakeholders
and to adapt the message to each of them, allowing value
added to be contributed to Group projects and proposals.
In this regard, the FCC Group has worked with public, pri-
vate and third sector entities in projects to measure the
socio-economic, climate or social responsibility impact. In
addition, metrics have been developed internally to cate-
gorise projects and environmental risks and opportunities
have been identified.
Measurement of the socioeconomic
impact
The FCC Group collaborates with
the Ministry of Foreign Affairs in
the preparation of the Report:
Contribution of Spanish companies
to sustainable development in Latin
America
The FCC Group has participated in the Contribu-
tion Report of companies to sustainable develop-
ment in Latin America, prepared by the General
Directorate of Economic Diplomacy (Secretary of
State for Global Spain), in collaboration with sixteen
other Spanish companies present in Latin America.
With the aim of analysing the contribution of these
companies to sustainable development in Latin
America, the report reviews the main projects and
most outstanding programmes in the area of ESG
(environmental, social and good governance), as
well as an analysis of the challenges and perspec-
tives of Spanish companies in terms of sustainabil-
ity in the coming years.
With the inclusion of the private sector on the 2030
Agenda, and, consequently, of the FCC Group,
more and more stakeholders are echoing the main
social responsibility initiatives of companies. Along
these lines, the Report refers to the Group’s good
practices in relation to its environmental manage-
ment, the incorporation of the circular economy in
its business model or the environmental aware-
ness that it tries to transmit to its workers.
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FCC plan for a circular economy
The Deep Purple project,
turning urban waste into
valuable resources
One of the many projects in which FCC partic-
ipates is Deep Purple. Coordinated by Aqualia,
with the participation of FCC Medio Ambiente,
and financed by the public-private association
Bio-Based Industries (BBI JV), it investigates, on
a pilot scale, the application of innovative tech-
niques in the management of effluents to recov-
er by-products. Urban waters present valuable
components such as cellulose and other nutri-
ents that can serve as raw materials for numer-
ous applications. The by-products obtained from
the Deep Purple Project can be used both as fer-
tilisers, as construction materials, bioplastics and
cosmetic products.
Axis II. Smart services:
Designing the sustainable cities
of the future
The FCC Group, in its commitment to continuous improvement
both in its internal processes and in the offering of its services,
works on the implementation of innovative initiatives, projects
and procedures in order to design sustainable solutions in its
three business areas: end-to-end management of the water
cycle, infrastructure development and environmental services.
From the design, execution, operation and maintenance phas-
es, the company works on the creation of new capacities to
address global warming, waste management, water supply or
the preservation of the environment, among others.
FCC plan for a circular economy: circularity is inherent to
the FCC Group’s business model, mainly at Aqualia and the
Environment area, as the company contributes through the
end-to-end water cycle and waste treatment respectively,
to the transition to a circular production model. By applying
continuous innovation in its processes, the company could
position itself as a benchmark in this matter, which is in-
creasingly in demand by society as a whole.
Since the implementation of the Master Plan, the company
has worked from its different business lines in the transition
to a circular production model, leading European projects,
participating in conferences and work groups of this na-
ture, optimising the consumption of resources through in-
novative processes or by certifying its waste management
systems.
511
Climate change and eco-efficiency: aware of the en-
vironmental impact of its activity on its surroundings, the
company has a 2050 Climate Change Strategy which,
aligned with its commitment to reduce emissions, defines
the climate goals for each business line and their different
measurement indicators.
The FCC Group works to mitigate its impact on the nat-
ural and urban environment. For this reason, during its
sustainability journey, the company has launched various
initiatives such as: the Group’s 2050 Climate Change Strat-
egy, the promotion of electric vehicles, the development of
R&D&i projects or the registration of the carbon footprint by
business line. In addition, environmental training sessions
have been promoted for employees and their participation
in working groups on innovation and climate change has
been encouraged.
Climate change and eco-efficiency
FCC Construcción, the first Spanish
construction company to verify its carbon
footprint in 70% of its activities
Since 2010, FCC Construcción has a Climate Change
Strategy, and annually prepares and verifies its emissions
reports. Within the framework of this strategy, FCC Con-
strucción has expanded the scope of the verification of
emissions derived from its activity. During the 2020 busi-
ness year, the CO2 emissions reports of 12 countries in
which the company operates have been verified, which
represents 70% of its national and international activities
carried out in 2019.
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512
Response to water stress: the FCC Group is aware of
the increasingly accentuated scarcity of natural resources,
including water. In this regard, water stress has a direct im-
pact on the development of communities, so its effective
management is especially significant for the Group as it is
a leading supplier in the management of the integral water
cycle.
In order to reduce water stress in the communities in which
it operates, the FCC Group, through the water business,
has implemented processes to minimise its consumption,
promoting the reuse of this scarce resource. Likewise, in
recent years, the company has launched various public
awareness campaigns on the responsible use of water and
it has participated in various sectoral actions. In this re-
gard, Aqualia’s efforts to achieve greater efficiency in the
consumption of water resources, through better use of
wastewater, are also noteworthy, such as the H2020 Run-
4life project.
Protecting biodiversity: the activities carried out by the
company through its different business lines directly and
indirectly affect the natural environment. To mitigate this im-
pact and promote biodiversity conservation, the company
establishes alliances, develops ecosystem protection pro-
jects and maps areas of interest for biodiversity, etc.
The FCC Group’s commitment to protecting and caring for
biodiversity has led the company to implement, within the
framework of its CSR Master Plan, the following initiatives:
collaboration with public entities to recover the population
of certain endangered species, identification of protected
areas in operational perimeters, environmental awareness
campaigns or innovative projects to maintain the balance
between the urban environment and its co-existing spe-
cies.
FCC InnovaRSC: the FCC Group carries out cross-cutting
innovation projects in each of its business areas and at the
Group level, which contributes to generating a competitive
advantage and being more efficient in its processes. In this
regard, sustainable innovation has become a common
commitment for the company.
The R&D&i efforts and investment by the FCC Group during
the years of the Master Plan show its commitment to con-
tribute to the creation of the sustainable cities of the future.
In this regard, the company has participated in different
sustainable innovation working groups and has motivated
its employees to develop innovative solutions through its
Avanza Awards.
Protecting biodiversity
FCC Construcción adapts
the facade of a building
for the nesting of swifts
In line with its commitment to the SDGs and, spe-
cifically, to biodiversity (SDG 15, life of terrestri-
al ecosystems), FCC Construcción adapted the
facades of the IES María Espinalt, in collabora-
tion with the Barcelona City Council to protect
the swifts in their migratory passage through the
region. For this, items that facilitate the nesting
of these birds were incorporated, taking into ac-
count the location of the building, since it is lo-
cated in an area of migratory transit during the
spring season.
FCC Medio Ambiente Iberia
will hand over its Avanza Awards
The Avanza Awards were devised to channel all know-how
in the area of innovation of FCC employees, and to rec-
ognise their effort and willingness to participate through
initiatives that materialise in improvements to increase the
company’s competitiveness. Thus, for yet another year,
FCC Medio Ambiente Iberia celebrated the delivery of the
II edition of the Avanza Awards, in which six projects were
awarded in the categories of Social Initiatives, Quality Im-
provement, Respect for the Environment and Innovative
Solutions.
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Axis III. Exemplary conduct:
Cross-cutting ethical commitment
The FCC Group’s Code of Ethics is the company’s starting point
in terms of integrity, to work with the highest standards of con-
duct with stakeholders and society as a whole. Internally, we are
working to strengthen the control and supervision systems to
be a benchmark company in this area, prioritizing the health and
safety of employees and integrating the ESG (environmental,
social and good governance) commitments in the value chain.
FCC Culture: employees are the main intangible asset
of the FCC Group. For this reason, the company works
to consolidate and promote a solid corporate culture that
covers each business line, to turn employees into brand
ambassadors and increase, at the same time, their pride of
belonging.
The FCC Group’s corporate culture reflects the company’s
cross-cutting and aligned commitment to the mission, vi-
sion and values, contributing to its exemplary performance
motivated by various training programmes in all geogra-
phies. Likewise, the company has worked on the revision of
the Code of Ethics and Conduct and the Criminal Preven-
tion Manual. A corporate Compliance Committee has been
set up and internal controls and tools have been designed
for their management and certification.
Responsible procurement: the company applies social,
environmental and good governance criteria in its supply
chain, in its firm commitment to introduce sustainability in
the processes of contracting goods and services, through
its commitment to responsible purchasing.
In order to comply with this action plan, the FCC Group has
reviewed its Purchasing Manual and approved the Supplier
Approval Procedure, for which a CSR questionnaire and
the parameterisation of the tool have been prepared. Fur-
thermore, compliance controls have been designed and
clauses have been introduced in the general conditions of
all the Group’s contracts in matters of ethics, anti-corrup-
tion and compliance with the Global Compact.
FCC culture
FCC360, the new internal communication
application of the FCC Group
The FCC Group has launched its new FCC360 App, rein-
forcing its firm commitment to innovation and new tech-
nologies. One more step to enrich internal communication
between work teams and promote corporate culture at
mainstream level, in each business line.
The FCC360 application allows you to optimise and stream-
line many common management processes and keep all
your employees informed and connected. Likewise, the
application serves employees as a means to internalise and
share the corporate culture of the organisation, through a
deeper understanding of the mission, vision and values.
For the first time in FCC’s history, the company is able to
connect all employees online, sharing initiatives, challeng-
ing projects and, ultimately, the future path of the organi-
sation.
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514
XHumanRights: the FCC Group promotes respect for hu-
man rights in all the communities in which it operates, pro-
moting a quality, respectful and dignified work environment
through training actions and internal awareness of employ-
ees, prevention mechanisms and the approval of human
rights policies.
The route that the FCC Group has taken in this matter has
mainly consisted of the following activities: an analysis of
the impact of the company’s activity on human rights has
been carried out, which has been approved and dissemi-
nated internally and included in the Compliance Model and
in the Code of Ethics and Conduct of the FCC Group. In
addition, to detect possible abuses in this matter, an inter-
nal complaints mailbox has been set up.
Talent2: skills + leadership: the professional development
of employees at the FCC Group is essential to achieve
greater productivity, obtain better results in the medium
and long term and optimise the company’s efficiency. The
FCC Group, in its commitment to talent management, en-
courages the growth of its employees according to their
needs and skills.
To contribute to the professional development of its em-
ployees, the FCC Group promotes transformational lead-
ership. To this end, the FCC Campus has been launched,
which has four corporate schools: speed, values, digital
and compliance have been defined as competences at
mainstream level, applicable to all Group employees.
Talent2: skills + leadership
The FCC Group promotes
the training of its employees
in all professional categories
In the last year, the FCC Group has launched some in-
itiatives in the area of training and leadership among its
different professional categories. In this regard, it is worth
highlighting the III Edition of the International Programme
for Young Talents in the Construction area or the imple-
mentation of pilot programmes for Mentoring and Col-
lective Coaching to improve team management and the
integration of different generations.
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515
Diversity and equality: for the company, attracting and
retaining talent are fundamental aspects both internally and
externally. For this reason, the FCC Group works to offer
employment, promotion and remuneration opportunities
under equal conditions for all its employees, promoting
equality and diversity in all its activities, through various
specific action plans.
Throughout the course of its Master Plan and to respond
to this action plan, the FCC Group has launched projects in
three areas of action:
1) Equality. Communication campaigns on equality mat-
ters; renewal of the “Equality at the company” emblem
and the signing of new Equality Plans.
2) Diversity. Compliance with the “Principles for the em-
powerment of women” of the Global Compact; renew-
al of the Diversity Charter; collaboration with non-profit
organisations such as the ONCE-Incorpora Foundation
for the employment of groups at risk of social exclusion;
accessibility measures at the Las Tablas headquarters.
3) Gender violence. Commitment of the FCC Group
against gender violence through collaboration agree-
ments with the ONCE-Incorpora Foundation, the Integra
Foundation or the Red Cross, to promote the labour in-
sertion of female victims of gender violence.
Diversity and Equality
The FCC Group has updated its “Harassment Prevention and Eradication Protocol”
The FCC Board of Directors, in order to reinforce its com-
mitment to the principles set out in the Code of Ethics and
Conduct and in its Compliance Model, approved a new
version of the “Harassment Prevention and Eradication
Protocol”, extending the responsibility and ethical conduct
to all the people who work at the Group.
Thus, to promote a fair and diverse work environment,
the protocol contemplates, among other aspects, certain
measures, the most noteworthy of which were as follows:
not tolerate any conduct that involves discrimination,
promote a culture of respect and awareness campaigns
against harassment, offer specific training in this regard,
ensure the agility of complaint mechanisms, adopt discipli-
nary measures and guarantee the labour rights and social
protection of female victims.
In this regard, the FCC Group undertakes to avoid any con-
duct that may generate an intimidating or hostile work envi-
ronment for employees, establishing procedures for action
against harassment, guaranteeing the maximum confiden-
tiality of the process and the prohibition of retaliation in this
regard.
Code of Ethics
and Conduct
V
ersion Approv
ed
by the FCC Group
Board of Directors
on 10 September 2019
Copyright 2018. All rights reserved.
FCC | Code of Ethics and Conduct 1
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Health and Safety comes first: the FCC Group works
to disseminate a culture of prevention of occupational
risks, health, safety and the well-being of employees
at the company, to position itself as a leading player
in this area. To do this, improvement plans are imple-
mented and health and safety policies are reviewed,
which allow us to visualise the performance of FCC as
a healthy company.
Health and safety is a matter of global relevance for the
FCC Group. The activities that have marked the posi-
tioning of the company with the well-being of its collabo-
rators during the implementation of the Master Plan are
based on: updating the FCC Group’s Risk Prevention
Policy; the creation of the Live Healthy Project and the
ISO 45001 Certification on Health and Safety Manage-
ment Systems in the different areas.
The FCC Group holds the Sustainability Conference
with the objective set in the new ESG 2025 Master Plan
The FCC Group Sustainability Conference, which
took place on 28 October, was held with the aim of
setting out the sustainable roadmap to be followed
by the company in line with the new Master Plan.
During the seminar, the importance that ESG (en-
vironmental, social and good governance) aspects
have acquired in recent years, and their trend to
become a fundamental piece of its business mod-
el, was highlighted. Likewise, a review was made
of the main milestones of the FCC Group and the
route towards sustainability from 2005 to now.
Once the respective presentations had been com-
pleted, the sustainability managers of each busi-
ness line of the company participated in a dialogue
table to establish jointly and in a coordinated man-
ner the pillars of the Group’s next Master Plan,
aligned with the SDGs and aimed at satisfying the
demands and expectations of its stakeholders.
516
Next steps in the sustainable path of the FCC Group: towards the
ESG 2025 Master Plan
With the aim of ensuring the FCC Group’s sustainable commitment
in the coming years, the company held a Sustainability Conference
in which all business lines participated, to jointly define the new ESG
2025 Master Plan:
In this regard, the exhaustive materiality study carried out in a main-
stream manner will be the starting point for the definition of the new
ESG 2025 Master Plan, allowing the main axes on which to work to be
established in the short, medium and long term, to continue offering
the best services to citizens and contribute to socio-economic devel-
opment.
Health and Safety comes first
FCC Medio Ambiente Iberia receives the AENOR
certificate of protocols against COVID-19
The company has certified its protocols with AENOR with re-
spect to COVID-19 at its corporate headquarters in Las Tablas
(Madrid). The awarding of this certificate constitutes significant
recognition, not only of the company’s commitment to the safety
of its employees in matters of prevention and hygiene, but also
of the effectiveness of the measures applied in the workplace
in the context of the international health crisis. It also highlights
the effort made by the entity to comply with current legislation.
As assessment was made of occupational health management;
training and communication in this matter; organisational and
protection measures, as well as the business continuity plan,
among others.
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The FCC Group’s track record in CSR matters highlights the
link between the SDGs and the company’s strategy, which has
internalised the commitments to the 2030 Agenda, integrating
them into its business model. At the Group level, the company
contributes across the board to the following Sustainable De-
velopment Goals:
FCC’S Contribution to the attainment
of sustainable development goals
Since its approval in 2015, the Sustainable Development Goals
(SDGs) have marked the 2030 Agenda, involving the collabora-
tion of both the public and private sectors. These 17 objectives,
made up of 169 specific goals, seek to guide global efforts to
solve the main challenges, such as the eradication of poverty,
the protection of the planet and the design of cities, among
others.
With a decade to go, the SDGs are increasingly present in
today’s society, bringing together the efforts of governments,
companies and individuals, requiring urgent action to make this
roadmap a reality.
Aware of the importance of achieving the SDGs, the FCC Group
is firmly committed to complying with the 2030 Agenda, ex-
pressing this commitment in the development and implemen-
tation of its Corporate Social Responsibility Policy. The compa-
ny actively participates in contributing to this global roadmap,
therefore, both the FCC Group’s CSR programmes and its
2020 CSR Master Plan are aligned with the 17 SDGs.
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Taking into account the different sectors in which it operates,
the FCC Group’s contribution to the SDGs is detailed below,
broken down by each of the business lines.
Contribution to the FCC Group's Sustainable Development Goals by business
Aqualia, by providing water and sanitation management services, allows citizens to enjoy
healthy conditions, helping to avoid infections and the spread of diseases.
The Environment area, has a Special Employment Centre (FCC Equal) that helps people
with disabilities to integrate and access employment.
Aqualia's activity generates solutions to water supply, sanitation and purification needs.
Therefore, it is aimed at facilitating and improving access to water and the quality of this
resource, working to improve the efficiency of water resources.
For its part, the Construction business also contributes to achieving this objective,
through the construction of infrastructures dedicated to water management.
The Construction business develops energy efficient facilities, and contributes to the
provision of energy services through the construction of infrastructures.
The Environment area, together with the rest of the Group's business lines, generate
employment for tens of thousands of people, thus contributing to economic development
in the areas in which they operate.
The Environment area, constantly applies technological innovations that allow it to
optimise waste management, making the most of it.
The Construction business invests annually in research, considering it a fundamental axis
to build and develop sustainable infrastructures.
For its part, Aqualia tries to improve the end-to-end management of water resources
through the application of innovative technologies. Therefore, it considers that innovation
is the basis for improving the efficiency and reliability of its processes, while guaranteeing
the highest quality of service.
Cementos Portland Valderrivas uses and applies the best available techniques,
promoting digital transformation and exploring the application of technologies that allow it
to manufacture resilient and sustainable products.
Aqualia, through its activity, contributes to ensuring access to basic services such as
water and sanitation.
The Construction business contributes, from its activity, to the development of more
sustainable and resilient cities and communities that can face global challenges.
Regarding Cementos Portland Valderrivas, the company is constantly researching
solutions that allow it to reduce water and energy consumption at its facilities, using
waste as raw materials or as fuels.
The activity of the Environment area contributes directly to achieving this objective,
through the recovery of waste, turning it into resources that can be used. In addition,
the company carries out different initiatives to achieve a more efficient use of natural
resources.
In relation to Aqualia, different actions are carried out to allow efficient use of water
resources, as well as to promote the reuse of waste water, applying circular economy
techniques.
The Construction business applies circular economy techniques, promoting the
responsible corporate management of resources and waste.
As for Cementos Portland Valderrivas, the company encourages the efficient use
of natural resources by replacing them with industrial by-products and, in addition, it
uses alternative fuels such as biomass.
The Construction area promotes a business model and the performance of energy
efficient activities to adapt to an economy with low carbon emissions.
For its part, Cementos Portland Valderrivas collaborates with its stakeholders to
seek innovative solutions that reduce CO2 emissions derived from its activity. These
emissions are continuously monitored and, on an annual basis, the company
establishes targets for their reduction.
To promote the continuous improvement of its processes, Aqualia frequently collabo-
rates with universities and research centres, developing technology that can be
applied worldwide.
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The FCC Group joins the #SupporttheSDG campaign
on the 5th anniversary of its approval by the United Nations
In line with FCC’s commitment to the Sustainable Development
Goals, and on the occasion of the 5th anniversary of the approv-
al of the 2030 Agenda, the FCC Group has participated in the
#SupporttheSDG campaign, promoted by the Spanish Global
Compact Network to promote the enactment of the United Na-
tions 2030 Agenda from the private sector. Some of the projects
that participate in the promotion and development of the SDGs
carried out during 2020 are:
Environment business - Innovation: ie-urban project
The Environment area makes a strategic commitment to tech-
nological innovation through the launch of a new 100% elec-
tric collection vehicle designed to improve safety and reduce
emissions, thus increasing its useful life. Thanks to this initiative,
among many others, the Environment area contributes to SDG
9 (Industry, innovation and infrastructure), 11 (Sustainable cities
and communities), 12 (Responsible consumption and produc-
tion) and 13 (Climate Action).
Aqualia - Development of Local Communities
Aqualia, in line with the Group’s commitment to contribute to the
communities in which it operates, works to improve and expand
the capacity and efficiency of a Wastewater Treatment Plant in
Colombia, one of the largest wastewater sanitation projects re-
siduals that have been implemented in the country. The new
infrastructure will bring with it a significant social, environmental
and economic impact in the area, contributing to SDG 6 (Clean
water and sanitation) and 17 (Partnerships for the goals).
Construction business - Sustainable Leadership
FCC Construcción participates significantly in various working
groups aimed at developing sustainable construction stand-
ards, allowing the company to keep abreast of the latest trends
and contribute in parallel to their development and dissemina-
tion. Along these lines, FCC Construcción chairs those work
commissions related to the establishment of sustainability prin-
ciples and aspects for their evaluation in civil works. Thanks to
this effort, we are working towards the fulfilment of SDG 9 (In-
dustry, innovation and infrastructure), 11 (Sustainable cities and
communities), 12 (Responsible consumption and production),
13 (Climate action) and 17 (Partnerships for the goals).
Cementos Portland Valderrivas - Energy efficiency
Cementos Portland Valderrivas, in its pledge for a circular econ-
omy, began to work on energy recovery in the production of
cement. The objective is to replace fossil fuels with energy ob-
tained from biomass, allowing GHG emissions to be reduced
by 40%. These actions would contribute directly to SDG 12
(Responsible Consumption and Production) and 13 (Climate
Action).
519
FCC Construcción is the
first construction company
in the world to join the
UN’s “Sustainable Finance
and Investments” group
FCC Construcción, the first construction com-
pany present in the CFO Taskforce led by the
Global Compact network, has participated in
the publication of the principles for the integra-
tion of sustainable investments and finance.
This working group was founded in 2019 with
the purpose of addressing the challenge of
sustainability and the attainment of the Sus-
tainable Development Goals (SDGs). Its main
mission is to create an efficient market for
investments and capital flows in the SDGs,
guiding companies to align their sustainable
development commitments with financing
strategies that generate a real impact on the
SDGs.
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FCC, committed to dialogue
The FCC Group is aware of the importance of its stakeholders
for the normal operation of its activity. For this reason, all the
Group’s businesses promote a fluid and transparent relationship
with its stakeholders based, in turn, on a constant dialogue.
Furthermore, for each of its businesses, the FCC Group iden-
tifies the most relevant matters, taking into account both the
expectations of its stakeholders and the organisation’s objec-
tives. For the Group, the definition of materiality is a strategic
issue, which is why, in 2020, an exhaustive update of this study
has been carried out, which will constitute one of the bases on
which the future CSR Master Plan will be designed.
Fostering dialogue:
Stakeholder communication channels
As established in its vision, the FCC Group focuses its efforts
on improving the quality of life of citizens, contributing to the
sustainable progress of society. In this way, the Group’s activi-
ty generates impacts on the communities in which it operates,
and the different FCC businesses, in order to make its objec-
tives and commitments reality, and in line with its principles of
professionalism and honesty, it establishes channels of commu-
nication and dialogue with its different stakeholders, which al-
low the company to meet and respond to social, environmental
and good governance demands.
In 2006, the FCC Group, since the preparation of its first ma-
teriality analysis, and in accordance with the approval of its first
Master Plan 2007-2008, worked on the identification of the dif-
ferent stakeholders to ascertain their needs and expectations.
In the identification process, all those internal or external stake-
holders that impact or are impacted by the Group’s activity were
considered. The following graph shows the list of stakeholders
identified as a result of said analysis, as well as the main dia-
logue tools that have been established therewith.
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FCC's stakeholders and tools for dialogue
521
Customers
Satisfaction surveys.
UNE ISO 9001 certified
business lines to
guarantee the best quality
products and services.
Different channels for
dialogue based on
business area.
Partners
Communication channels
are established with other
companies in the sector.
They highlight the figure
of the interlocutor, the
collaboration agreements,
alliances, sponsorship,
business forums,
symposia and publications.
Communities
FCC's various business
areas promote dialogue
with local communities
to understand their
expectations and
maximise the social
benefits created by
its projects.
Public
administrations
and regulators
Voluntary participation
in sectoral self-regulation
and legislation
development initiatives.
Suppliers
and contractors
Information and awareness
raising sessions.
Obligatory compliance with
FCC's Code of Ethics and
Conduct.
Commitment to comply
with the ten Principles of
the UN Global Compact.
Shareholders
and investors
Shareholders' office.
Corporate website with
information relating to
economic performance.
Employees
FCC one – Corporate
intranet.
Periodic in-person
meetings on information
of interest.
Employee portal.
Somos FCC: quarterly
online magazine.
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The FCC Group establishes a continuous dialogue with its
stakeholders, through a wide number of communication chan-
nels, among which the following stand out: FCC One, the main
internal communication channel for employees available in the
FCC360 application; Sustainability and environmental commu-
nication reports, to present the Group’s ESG performance; di-
rect dialogue with clients; satisfaction surveys; web pages and
social networks such as Linkedin, Instagram or Youtube; pres-
ence at fairs, forums and conferences to share expertise and
collaboration with sector associations, educational and profes-
sional entities.
To achieve the objectives and commitments, each business
area establishes different channels adapted to its needs and
peculiarities in the relationship and response to stakeholders.
At the Environment area, activities must connect with the real
needs of citizens and, for this, we try to maintain a constant di-
alogue that helps them to ascertain their different expectations
at all times.
The different departments and business offices that make up
FCC Medio Ambiente Iberia have specific identification mecha-
nisms and communication channels through which they inter-
act with the organisation’s stakeholders.
In the UK, communications with local communities are man-
aged at each location, depending on the circumstances of each
one. Regular meetings with the communities are held at all land-
fill facilities and power plants.
Likewise, FCC Environmental Services maintains a fluid rela-
tionship with the representatives of the contracts and with the
members of the service areas, organising meetings with them
on a routine basis; For its part, FCC Environment CEE uses dif-
ferent channels to communicate with local communities, such
as social networks, local press, etc.
522
Aqualia developed a strategic materiality at the end of 2019,
reviewing its brand purpose, identifying the strategic lines for re-
sponsible business, and determining the communication guide-
lines for each of its stakeholders. This process has involved ac-
tively listening to more than 18,000 people who are part of the
company’s stakeholders.
The Construction business identifies and evaluates, for all its
projects and centres, the environmental and social aspects that
may be relevant to local communities. Based on this evaluation,
a programme of actions is established, and environmental con-
trol measures are communicated to stakeholders.
During the execution of the works, the company involves the lo-
cal community by establishing communication channels, on the
one hand, so that they can transmit complaints and claims, and
on the other, to be able to inform them about the progress of
the project and about the measures adopted to minimise pos-
sible adverse impacts. In this way, participation processes are
developed that reflect the needs and concerns of stakeholders,
increasing their influence in decision-making related to projects.
Cementos Portland Valderrivas considers that the legitimacy
of its activity is based on trust and the quality of the relationships
maintained with the local communities in which the company is
a member. For this reason, communication and dialogue chan-
nels are maintained with institutions, social players and local
groups, such as company publications, participation in semi-
nars or participation in colloquia and interviews, among others.
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FCC Group
materiality
study
In 2020, the FCC Group carried out an exhaustive update of
the previous materiality study, in order to identify the most rel-
evant social, environmental and governance issues for each
of its business lines (Environment, Aqualia, Construction and
Cementos Portland Valderrivas). This identification of the main
non-financial matters fulfils a double function, since it allows the
definition of the contents of this report in accordance with the
indications of the Global Reporting Initiative (GRI) while, at the
same time, serving as support for the definition of the future
Master Plan of the FCC Group. In order to reflect in greater de-
tail the priorities of each of the FCC Group’s business lines, this
update has involved the redefinition of the matters evaluated
with respect to the previous study, which have gone from 12 to
a total of 23. These matters are aligned with the main sustain-
ability reporting frameworks, as well as with the legal require-
ments to which the FCC Group is subject.
This study has incorporated, through a documentary analysis,
information related to the following stakeholders: investors,
competitors, industry associations, clients7 and society. Like-
wise, internally, the management team of each of the business-
es has been involved, as well as mainstream Central Services
departments. The results of this study reflect the most important
issues for the Group’s stakeholders and those with the greatest
significance and impact on each of the FCC Group’s business
lines. In the case of Aqualia, a specific materiality analysis has
been conducted, and its results have been adapted to the is-
sues identified at FCC Group level.
For the rest of the business lines, the study has been structured in the following phases:
External assessment: To determine the significance that
stakeholders grant to the issues, information on competi-
tors, main industrial associations, ratings and ESG invest-
ment analysts has been analysed for each of the business
lines, together with the information available from business
customers of Construction, press and social networks, as
well as the material matters identified by SASB and GRI.
(7) The information available from clients has only corresponded to the
Construction area.
Internal assessment: The significance and impact of the
issues on the different business lines of the FCC Group have
been established. This phase has involved, through inter-
views and the launching of questionnaires, members of the
Management Committee of the different lines of business,
as well as a selection of executives from Central Services,
with a cross-cutting vision of the FCC Group. In addition to
assessing the double materiality of the impacts of each ESG
issue, the presence of said issues in the strategy of each
business and the selection of the three most relevant issues
according to the perception of the respondents were tak-
en into account. To identify future engagement areas, work
was also performed to identify the medium-term trend (3-5
years) and the current performance of the Group in such
ESG matters.
Determination of material matters: Once the previous
phases have been completed, each of the stakeholders
has been weighted, taking into account the significance
of the information analysed. Subsequently, the results of
the internal and external evaluations have been added, de-
termining the material issues, and the materiality matrices
have been designed for each business line. These matri-
ces represent, on the vertical axis, the importance given
by the company’s stakeholders and, on the horizontal axis,
the relevance and impact on the different lines of business.
Material matters are understood as those that exceed the
average score on both axes.
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The following table shows the correspondence of material matters for each of the businesses:
Material matters for business
Environment
Water
Construction
Cement
Ethics, integrity, compliance and good governance
524
Risk control and management systems
Quality of service and client satisfaction
Innovation and digital transformation
Cybersecurity and data protection
Fiscal transparency and tax contribution
Pollution prevention
Circular economy and waste
Management of water resources
Material consumption
Energy consumption and energy efficiency
Climate change
Biodiversity
Food waste
Attracting and retaining talent
Professional training and development
Diversity, equality and inclusion
Health, safety and well-being
Contribution and social commitment
Human rights promotion and respect
Relationship with local communities
Liability to contractors
Sustainable supply chain
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The materiality matrices for each of the FCC Group’s business
lines are shown below, framing the material issues in the high-
lighted tables.
As can be seen from the results of the study, for the Environ-
ment area, the most important issue for stakeholders is ethics,
integrity, compliance and good governance. Internally, the issue
with the most relevance and impact is innovation, a cross-cut-
ting issue that makes it possible to address other company
challenges, such as the fight against climate change and the
transition towards a circular economy. With regard to employ-
ment matters, the importance of health and safety, as well as
the management of the Environment area staff, stands out.
For the Construction business, the most important issue for
stakeholders is ethics, integrity, compliance and good govern-
ance, also being the one that has the most relevance and im-
pact on this line of business. For stakeholders, the fight against
climate change constitutes a work priority, while internally the
significance and impact of the health and safety of workers
should be stressed, given the activity that is carried out. Also
noteworthy is the importance of innovation- and risk manage-
ment-related issues, which contribute across the board to the
attainment of the Construction business’s objectives.
Aqualia’s stakeholders consider material consumption, climate
change and pollution prevention to be the most important is-
sues. Internally, it highlights the importance given to the safety
and health of workers, as well as to the management of water
resources, closely linked to the company’s activity. It is worth
noting the importance, both internally and for stakeholders, of
the social contribution initiatives carried out by Aqualia.
For Cementos Portland Valderrivas’s stakeholders, climate
change is the most relevant issue, while internally the impor-
tance of ethics, integrity, compliance and good governance
should be highlighted. More than half of the material issues are
related to the environment, which highlights the importance of
environmental management for this line of business of the FCC
Group. With regard to employment matters, the importance of
the health and safety of employees is especially significant.
As can be seen in the matrices, some material issues are iden-
tified across the FCC Group, regardless of the business line
evaluated:
Ethics, integrity, compliance and good governance.
Health, safety and well-being.
Circular economy and waste.
Additionally, it is necessary to highlight the importance that some
environmental issues, such as energy and climate change, have
had for the FCC Group’s stakeholders. These matters have
been considered to be of significance regardless of the activity
carried out by the different business lines
For its part, the internal relevance of the issues varies between
the FCC Group’s business lines, since the study reflects the
different nature of the activities of each of them.
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Environment
Aqualia
526
e
c
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t
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e
c
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E
100
80
60
40
20
0
100
80
60
40
20
0
20
40
60
80
100
Internal significance
Construction
20
40
60
80
100
Internal significance
e
c
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l
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e
t
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x
E
100
80
60
40
20
0
100
80
60
40
20
0
20
40
60
80
100
Internal significance
Cementos Portland Valderrivas
20
40
60
80
100
Internal significance
Food waste
Material consumption
Management of wáter resources
Biodiversity
Energy consumption and energy efficiency
Pollution prevention
Climate change
Cicular economy and waste
Fiscal transparency and tax contribution
Cybersecurity and data protection
Quality of service and client satisfaction
Risk control and management system
Innovation and digital transformation
Ethics, integrity, compliance and good governation
Liability to contractors
Sustainable supply chain
Contribution and social commitment
Relationship with local communities
Human rights promotion and respect
Professional training and development
Diversity, equalty and inclusión
Attracting and retaining talent
Health, safety and well-being
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Ethics and integrity at the FCC Group
Compliance and
due diligence
The FCC Group has a Compliance Model, whose review pro-
cess began in 2018, to prevent conduct that may lead to the
commission of crimes, and which comprises the following reg-
ulatory block:
During 2020, the most significant actions carried out regarding
this FCC Group Compliance Model, aimed at establishing an
ethical and compliance culture that guarantees due diligence,
have consisted of:
Through its Compliance Model, the FCC Group guarantees that
all the companies and employees of the company are governed
in accordance with the principles established in the Code of
Ethics and Conduct, at the same time strengthening internal
control so as not to commit any criminal breach.
Code of ethics and conduct.
Criminal Offence Prevention Manual.
Anti-corruption policy.
Review and update of the criminal risk map, fo-
cused on risk assessment following the impact of
COVID-19.
Approval of new regulatory developments.
Partner relationship policy in the area of Compli-
Review of the design of controls in the area of inter-
ance.
national anti-corruption.
Investigation and response procedure.
Procedure for the Whistleblowing Channel.
Human Rights Policy.
Compliance Committee Regulations.
Agent policy.
Gift policy.
FCC Group participation policy in bidding pro-
cesses for goods or services.
Harassment Prevention and Eradication Protocol.
Deployment of the International Compliance Model
at Cementos Portland Valderrivas, and progress in
its implementation for the international subsidiaries
of the Environmental activities and Aqualia.
Coordination of the supervision of the Compliance
Model by Internal Audit.
Performance of two self-assessments and certifica-
tions in the compliance tool.
Design and launch of new online training, related to
the Code of Ethics and Conduct, and in the area of
Criminal Prevention.
Definition, together with the Group’s Purchasing De-
partment, of the supplier approval procedure.
Performance of 195 third-party due diligence evalua-
tions.
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To ensure the proper functioning of the Model, the Compliance
Committee is the Group’s Criminal Prevention body, with au-
tonomous powers of initiative and control. Currently, it is com-
posed of:
The Corporate Compliance Officer (president)
The Legal Advice Department General Manager (voting
member)
The Human Resources Director (voting member)
Additionally, for the cases in which their participation is required
to carry out the investigations, the Internal Audit managing di-
rector participates as a member with an attendance and voting
right. Lastly, and as guests, the Compliance Officers of the busi-
nesses (FCC Medio Ambiente, Aqualia, FCC Construcción and
Cementos Portland Valderrivas) also attend.
Compliance Committee Meetings
During the 2020 business year, and in order to fulfil the tasks
and powers designated by the Compliance Committee, 11 or-
dinary meetings were held, plus seven extraordinary sessions.
Twelve annual meetings could not be held since the March ses-
sion had to be postponed due to the COVID-19 pandemic.
FCC Group Ethics Channel
The FCC Group has numerous effective reporting mechanisms,
which allow workers and other stakeholders to report events
if breaches are detected. These mechanisms are essential to
be able to guarantee compliance with the Code of Ethics and
Conduct, as well as the regulations that derive from it.
In 2020, online training on the Code of Ethics and Conduct
continued, with a total of 419 employees completely said train-
ing successfully. In this way, since its launch in 2019, 7,998
employees have taken this course, with a completion rate of
88%. Additionally, by including this training in the company’s
Welcome pack, 1,229 new hires have successfully completed
this course.
During the business year 2020, a total of 117 notifications were
received by the FCC Group’s Ethical Channel, through the cor-
porate intranet, email, or post office box, 34 notifications more
than in 2019, mostly of an employment nature.
In addition, during 2020, five online training courses on Compli-
ance were given through Campus FCC, the Group’s new train-
ing platform, with 18,321 students finishing the programme,
representing a total of 11,633 hours of training.
At the closing date of this report, a total of 101 notifications had
been resolved, 86.3% of the notifications received, the remain-
der being processed or investigated with a resolution expected
in the first quarter of 2021.
Training and dissemination of the Compliance Model
The FCC Group carries out different training and communica-
tion programmes on the Code of Ethics and Conduct, and the
policies and procedures that enact it, to foster employee com-
mitment and performance, in accordance with the company’s
ethical principles.
In this regard, in 2020, two especially significant projects have
been carried out. Firstly, the online training course on the Code
has been translated and adapted into six new languages (Ger-
man, Czech, Slovakian, French, Portuguese and Romanian),
allowing the scope of this initiative to be expanded internation-
ally. Secondly, in Spain, the “Compliance coffee” project has
been launched, to train and raise the awareness of employees,
through sketches and audio-visual content, on the acceptance
of gifts, conflicts of interest and the proper use of the company’s
assets.
With respect to the publication of the Compliance Model, the
entire regulatory blockis available to the whole workforce on the
corporate intranet, and both the FCC Group’s Code of Ethics
and Conduct and the Compliance policies are available to the
public through the corporate website.
Compliance Model Certifications
To guarantee the operation and effectiveness of the Compliance
Model, those responsible for the controls designed to prevent
criminal risks must carry out a semi-annual self-assessment.
Hence, certification is provided that the controls performed
have been executed and documented, reporting any changes
to them.
During 2020, two certifications of the Compliance Model were
provided through the Group’s tool, evaluating around 3,000
controls in both cases. Based on these evaluations, corrective
measures are applied, which allows the Model to continue to
be improved.
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529
Due diligence with Human Rights
FCC fully rejects child labour, forced labour and work in painful,
extreme, subhuman or degrading conditions while, at the same
time, guaranteeing freedom of association and collective bar-
gaining, as well as the rights of ethnic minorities and indigenous
peoples in all areas in which the Group operates.
The FCC Group guarantees, within its catchment area, respect
for human rights and public freedom, based on the legal frame-
work of each country. This responsibility, in accordance with the
provisions of the Code of Ethics and Conduct, is transmitted to
all company employees, who must comply with these principles
at all times.
The company’s commitment to human rights is further rein-
forced by the FCC Group’s compliance with the main interna-
tional frameworks, such as the United Nations Global Compact,
the Universal Declaration of Human Rights Framework, the
Declaration of the Rights of the Child, the different ILO conven-
tions and other agreements of the International Federation of
Construction and Wood Workers (BWINT).
In 2020, no complaints were received regarding the violation of
human rights.
The FCC Group approved the
“Harassment Prevention and
Eradication Protocol”
In order to reinforce its commitment to the prin-
ciples set out in the Code of Ethics and Conduct
and in its Compliance Model, FCC’s Board of
Directors approved the “Harassment Preven-
tion and Eradication Protocol”. Thus, to promote
a fair diverse work environment, the protocol
contemplates, among other aspects, certain
measures, the most noteworthy of which were
as follows: not tolerate any conduct that involves
discrimination, promote a culture of respect and
awareness campaigns against harassment, offer
specific training in this regard, ensure the agili-
ty of complaint mechanisms, adopt disciplinary
measures and guarantee the labour rights and
social protection of female victims.
Alliance to achieve the universal
right to water and sanitation in
Europe
The United Nations General Assembly has recognised, since
2010, the Human Right to Water and Sanitation and, since
2015, the Right to Sanitation independently. For this reason,
Aqualia, together with other European organisations, com-
panies and institutions, has participated in the issuance of
a joint declaration, calling on the EU institutions to consider
water and sanitation as a human right within the European
legislative system, thus guaranteeing these services for all
citizens.
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Due diligence with bribery and corruption
Additionally, the FCC Group has other policies related to the
fight against corruption and bribery:
Regarding the procedures related to the control of bribery and
corruption, the following are worthy of mention:
Agent Policy, which establishes the general principles that
should govern the relationship between the FCC Group
and any agent or business developer, in order to guarantee
their compliance with ethical principles in line with those of
the FCC Group.
Gift Policy, which establishes the principles relating to the
making or acceptance of gifts and hospitalities, guarantee-
ing that they are always made in a transparent and occa-
sional way.
At FCC, we adopt zero tolerance against corruption and bribery,
thereby promoting a culture to tackle it. The prevention and mit-
igation of crimes related to corruption, bribery, influence ped-
dling, fraud, money laundering and swindling is a priority for the
Group. Given the possible crimes to be avoided, a risk event is
associated in which it could materialise, designing the neces-
sary processes and controls to guarantee regulatory compli-
ance.
Through its Compliance Model, the FCC Group guarantees
compliance with the laws and regulations in the places in which
it operates, generating trust among its customers, sharehold-
ers, employees and business partners.
The Code of Ethics and Conduct constitutes the basis of the
Compliance Model, although it is supported by the approval of
various policies that enact it. One of the complementary policies
to the Code is the Anti-Corruption Policy, which includes the
following principles:
Compliance with legality and ethical values.
Zero tolerance against bribery and corruption
practices.
Property surveillance and data confidentiality.
Rigour in control, reliability and transparency.
Prevention of money laundering and transparent
communication.
Extension of commitment to partners in the busi-
ness.
Promotion of continuous education on ethics and
compliance.
Transparent relationship with the community.
Conflicts of interest.
Control applied to sponsorships and donations,
through a request to be reviewed and approved by
the Corporate Communication Department.
The employee selection procedure based on a skills
system to ensure transparency and equality in all se-
lection processes.
The annual training plan in matters of criminal pre-
vention and anti-corruption.
The approval of travel and representation expenses.
The Purchasing Manual and the procedure for the
communication and approval of the purchase re-
quired.
The reconciliation of bank statements for the detec-
tion of outstanding or unreasonable movements.
The management of the legal representatives for
each company.
The Due Diligence required before recruiting certain
partners and agents.
When assessing exposure to crimes related to anti-corruption,
analyses have been carried out in operations for all the coun-
tries in which the Group operates. In this way, the matrix of risks
and controls in anti-corruption matters has been implemented
in Spain and in most foreign geographies.
Finally, given the significance of this subject, specific training
on corruption prevention has been devised, aligned with the
principles established in the Code of Ethics and Conduct and
in the Anti-Corruption Policy. This training, launched in February
2020, has been successfully completed by 3,200 FCC Group
employees.
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531
Measures to fight money laundering
During the process of preparing the crime, risk and control ma-
trices, a series of risk events have been identified for the Group
in the area of money laundering: non-compliance in the review
of control and identification procedures for clients indicated
in the Law on the Prevention of Money Laundering (LPBC in
Spanish), non-compliance with obligations regarding informa-
tion collected in the application of the LPBC and the non-ap-
plication of the established internal control measures for those
subject to the LPBC.
Transparency and accountability
In tax matters, the company complies with the Tax Authority’s
Code of Good Tax Practices, which establishes the principles of
transparency and mutual trust, as well as good faith and loyalty
between the parties, guaranteeing a more effective relationship
without legal uncertainty.
Additionally, to minimise the risks derived from tax breaches,
FCC has its own Code of Tax Conduct, which is mandatory for
all persons linked to any Group company. This document, in line
with the values established in the Code of Ethics and Conduct,
establishes the basic principles of the FCC Group in tax mat-
ters, including compliance with the applicable tax regulations,
respect for the “Framework Regulation on the Control of the Tax
Area”, and ensuring that senior management reviews significant
decisions on tax matters and the promotion of transparency.
Annex IV shows the details of the profit after tax and the income
tax paid by country in 2020 in those countries in which FCC has
a presence, together with the public subsidies received.
For each of these risk events, a series of controls have been
planned, aimed at guaranteeing regulatory compliance by the
FCC Group. In this regard, the following procedures have been
established to control this area:
Including a Money Laundering Prevention clause
in real estate promotion marketing contracts.
The review of contracts for sale of goods, lease
and lease with option to purchase.
The review of legal representatives for the revoca-
tion of powers for those who have left the compa-
ny.
The existence of an internal advisory and whis-
tle-blower line.
A Money Laundering Prevention Manual.
Creation of a body for the supervision and moni-
toring of money laundering preventive measures.
The identification of the parties concerned in a
real estate asset, in order to assess the opera-
tion’s risk.
Training employees on Money Laundering.
As a result of its efforts in this area, the FCC Group has not
received any money laundering complaints.
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532
Risk management
at the FCC Group
The FCC Group has a Risk Management Model that is designed
to identify and assess the potential risks that could affect the
Group’s different units. Mechanisms have also been included in
the organisation processes that enable risks to managed and
kept within acceptable levels, providing the Board of Directors
and Senior Management with reasonable security with regard
to the achievement of the main objectives defined. The Model
is applied to all FCC Group companies, as well as to those affil-
iates where FCC has effective control, promoting the develop-
ment of work frameworks that enable suitable risk control and
management in those companies where effective control is not
available.
The Risk Management Model is based on the integration of a
risk-opportunity vision and the assignment of responsibilities
that, together with the segregation of duties, enable the fol-
low-up and control of risks, consolidating a suitable control en-
vironment. To achieve this, a three-tier system of risk manage-
ment and internal control was established, the first two located
in the business units and the third in the corporate areas.
The main risk scenarios can be grouped into four categories:
operational, compliance, strategic and financial.
First level
Third level
Located in the business unit's operating lines,
that act as risk generators and have the res-
ponsibility for managing, monitoring and suita-
bly reporting the risk generated, including tax
risk.
Also located in the business units, it consists of support, control
and supervision teams, ensuring effective control and suitable risk
management, including tax. Within this level, the management
area of each business unit is responsible for the implementation of
the Risk Management Model, including those risks related to finan-
cial information. The Business Compliance Officer assists the Cor-
porate Compliance Officer in the dissemination of the Criminal Pre-
vention Model, in the identification of risks and in the definition, and
proposes action plans, within its scope, in cases where breaches
or inefficiencies in the functioning of controls have been detected,
submitting these proposals to the Corporate Compliance Officer.
Second level
Consisting of corporate duties that report to Senior Management and/or to the Audit
and Control Committee.
The following are within this level:
• Tax Division: responsible for defining the tax policies, procedures and criteria applica-
ble to the FCC Group
• Corporate Compliance Officer: duties include the implementation of the Criminal Pre-
vention Model, the identification of risks in this area, and the definition and follow-up
of the corresponding controls, as well as the management of the Whistleblowing
Channel and proposals for action plans in cases of non-compliance o inefficiency in
the operation of the controls.
• Risk Management Function: responsible for coordinating the Risk Management
Model, defining a has-methodology for identifying, assessing and reporting risks, pro-
viding support to those responsible for its implementation.
• Internal Audit Function: as the final control, it is responsible for assessing whether the
policies, methods an procedures are suitable and for verifying their effective implemen-
tation.
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OPERATIONAL RISKS
Termination or unilateral modification of a contract
contractual issues and legal disputes
Uncertainty in pricing and optimisation of the supply
chain, raw materials, energy and outsourced services
- Unilateral termination of contracts
- Price fluctuations
Risks associated with digital transformation
- Lack of updating in related matters, at both a
human and infrastructure level
- Related economic losses
- Difficulties in optiminsing the supply of godos
- Disruptions in operations
- Costly legal or arbitration proceedings
- Discrepancies in the interpretation of
contractual requirements
Project rescheduling
- Lack of land availability
- Delays in obtaining licences
and services
- Impact on the Group’s results
Cyber attacks
Labour conflict
- Non-compliance with labour legislation in the
various countries in which the Group operates
- Conflicts that harm the company’s productive
- Effects on tangible and intangible
- Assets Prolonged interniption of operations
- Uncontrolled access to sensitive information
- Information and data leakage and/or hijacking
capacity
Heath and safety risks
- Health and/or environmental restrictions
- Reputational problems
- Supply chain disruption
Loss of human capital
Risks arising from links with third parties
- Adverse project circumstances
- Reputational and/or economic problems
- Setbacks in ongoing projects
- Impact on project development
- Changes in project outcomes
- Health crises, incidents and/or accidents in the
course of their activity
- Damage to operations
Environmental damage
- Damage in the form of spills, emissions, etc.
- Impact on project and contract development
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COMPLIANCE RISKS
Regulatory or contractual non-compliance
Non-Compliance with the Code of Ethics
- Occasional non-compliance with regulatory
- Potential non-compliance with regulations
aspects
- Difficulties in complying with contractual
requirements
- Legal, economic and reputational damage
STRATEGIC RISKS
Regulatory changes and political, financial and socio-
economic instability in countries and/or regions
Loss of market share
Cut in investment and demand forecasts
- Difficulty in developing competitive and cost-
- Negative impacts on projects
- Decreased business opportunities
effective bids
- Related economic imbalances and problems
- Fall in project profitability
- Entry of new competitors
- Regulatory and/or trade barriers
Global climate or health crises, natural disasters and
regional armed conflicts
- Restrictions for environmental or health reasons
- Loss of market share
- Affect on towns and territories in which
activities are carried out
- Decrease in demand for goods and services
- Decrease in activity level and operations
- Damage to built infrastructure
- Increased costs due to ecological and/or
health transition policies
- Obstruction of mobility
- Interruption in the supply chain of goods and
services
Damage to reputational image
- Reputational impact
- Loss of projects
- Economic damage to the different business lines
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FINANCIAL RISKS
Credit risk and liquidity risk
Impairment of the commercial fund
Fluctuation of exchange rates
- Customer credit risk exposure
- Liquidity line setbacks
Restricted access to financial markets
- Losses and/or adjustments to goodwill on the
- Debt denominated in foreign currency
balance sheet
- Impact on the FCC Group’s financial results
- Loss of investment in international markets
- Payment received in currencies other than the
euro
- Difficulty in obtaining or renewing funding
- Increased requirements or guarantees
requested by financiers
- Impacts on the viability of economic models
supporting the repayment of funds
- Loss of business opportunities
- Effect on the normal course of business
Recoverability of deferred tax assets
- Lack of recoverability of deferred taxes due to
the cyclical nature of the Tax Group’s profit
- Lack of recoverability of deferred taxes due to
changes in corporate income tax in Spain
Fluctuation of interest rates
- Increase in financial costs linked to variable
interest rates
- Increase in debt refinancing costs
- New debt issuance
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536
Both the FCC Group’s Risk Management Model and its Com-
pliance Model establish comprehensive frameworks to identify,
assess and manage risks in their respective areas of application.
Once the risks have been identified and prioritised, it is expected
to establish control mechanisms through the Risk and Control
Matrices that will include key controls aimed at preventing and/
or mitigating the risks and the definition of persons in charge
of these control activities. For those risks that exceed the ac-
cepted level of risk or when non-compliances or inefficiencies
are detected in the operation of the controls, specific Action
Plans will be established taking into account their operational
viability, their possible effects, as well as the cost-profit ratio of
implementation.
The Risk Management Model is supervised by the Business Di-
visions with the support of the Risk Management area, while
the Ethics and Compliance programmes are supervised by the
Compliance Committee, chaired by the Corporate Compliance
Officer with the support of the Compliance Officers of the busi-
nesses, following the certification of controls and processes by
their owners.
For more information, see the FCC Group Annual Corporate
Governance Report for 2020.
In 2020, the following risks have materialised:
Reduced activity as a result of measures de-
creed to curb the COVID-19 health crisis.
Inefficiencies in the supply chains of goods and
services and in the mobility of human resources
assigned to projects.
Rescheduling of certain projects, especially in
the infrastructure area.
Contract and legal disputes.
Fluctuations in the exchange rates of the curren-
cies in which the Group operates.
New regulatory framework following the UK’s
exit from the EU.
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Respect for the environment at FCC
Care and protection of the environment
Throughout its 120-year history, the FCC Group has contrib-
uted, through its various business lines, to the transformation
of cities. Two of its business lines, the Environment area and
Aqualia, have worked to provide citizens with a cleaner and
more liveable environment, while preserving the value of natural
resources such as water or biodiversity. For its part, the Group’s
Construction and Cement area has designed the infrastructures
of today and tomorrow, seeking to optimise resources, mini-
mise the waste generated and protect the environment.
In short, the Group has generated solutions that promote urban
resilience, improving people’s quality of life and continually striv-
ing to reduce the current and foreseeable effects that its activity
may have on the environment, ensuring environmental protec-
tion and care. Each of the Group’s business lines continuously
analyses its activities and processes to identify and manage the
possible environmental impacts caused by them.
The FCC Group Environmental
Management System
One of FCC’s priority objectives is the implementation of an En-
vironmental Management System that is certified in accordance
with internationally accepted regulations, such as the UNE-EN
ISO 14001:2015 standard (hereinafter, ISO 14001), the Europe-
an EMAS Regulation (“Eco-Management and Audit Scheme”)
or the UNE-EN ISO 50001:2018 regulation (hereinafter, ISO
50001) for energy management systems, among others.
These certificates allow the Group’s activities to be performed in
line with the highest environmental management quality stand-
ards. In 2020, the percentage of certified activity stood at 83%.
537
The following graph shows the trend in the percentage of certi-
fied activity at the Group in the last three years:
FCC activity with environmental certification
(%)
88
86.8
82.7
2018
2019
2020
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By type of certification, all FCC Group businesses have Environ-
mental Management Systems certified in accordance with the
ISO 14001 Standard. Certification under said standard guar-
antees the correct management of significant environmental
aspects, compliance with legislation and the establishment of a
commitment to continuous improvement.
With regard to the Environment area, it has ISO 14001 certifica-
tion in a total of ten countries and ISO 50001 certification in five
countries. These certifications cover most of the area’s activity
in Spain, Portugal, the United Kingdom and central Europe (Slo-
vakia, Hungary, Poland, Czech Republic, Poland, Romania and
Serbia). As in the cement business, FCC Medio Ambiente Iberia
companies are certified and registered in the EMAS.
For its part, Aqualia has ISO 14001 and ISO 50001 environ-
mental certification. Throughout 2020, the Aguas de Guadix of
Aqualia facilities have been certified under ISO 14001.
In the Construction area, for example, the certification incorpo-
rates a total of 24 countries. Other companies in the area such
as FCC Industrial, Matinsa, Megaplas and Prefabricados Delta
have environmental certification under ISO 14001 at centres lo-
cated in Spain.
Lastly, Cementos Portland Valderrivas in Spain has ISO 14001
certification covering the activity of 75% of its cement factories.
In the same manner, the same percentage of cement facto-
ries are certified and registered at EMAS, a voluntary tool de-
signed by the European Commission for the registration and
public recognition of those companies and organisations that
have implemented an environmental management system that
allows them to evaluate, manage and minimise their environ-
mental impacts.
has its carbon footprint certified under the ISO 14064 Stand-
ard, while FCC Construcción carried out the verification under
the same standard in 2020 at most of its centres. In this re-
gard, FCC Construcción verified the emissions corresponding
to the previous year at the centres located in Spain, Portugal,
Romania, United Kingdom, Nicaragua, Costa Rica, Panama, El
Salvador, Mexico, Colombia, Chile and Peru, which represent
53.8% of the revenue and 67.3% of the GHG emissions of the
area in said year. Furthermore, in 2020, FCC Industrial renewed
the “Zero Waste” certificate granted by AENOR.
FCC Group environmental policy
In 2009, the FCC Group, through the Board of Directors, ap-
proved its Environmental Policy, a policy applicable to all Group
companies. The Policy is an integral part of the Environmental
Management System and establishes the principles in the area of
environmental conservation and the use of natural resources that
each of the Group’s businesses must follow.
The policy establishes the following commitments:
Control and monitoring of significant
environmental impacts.
Pollution prevention, adaptation and mitigation
of climate change.
Observation of the environment and innovation.
Consideration of the life cycle of its products and
Each business line may establish its own environmental policies
that reflect the specific characteristics of the activities that it
carries out, provided that they incorporate the principles and
commitments established in the Group’s Environmental Policy.
The commitments that every environmental policy must con-
template are the protection of the environment, compliance with
legal requirements, the promotion of continuous improvement
of environmental performance, establishing additional commit-
ments in each of the businesses:
At the Environment area, FCC Medio Ambiente Iberia also
has an Integrated Policy that incorporates principles of ac-
tion on health and safety in the workplace, a healthy work
environment and interaction with the environment. The pol-
icy focuses on the promotion of R&D&i and energy efficien-
cy, the use of renewable energies, the reduction of pollution
and Greenhouse Gas emissions. At an international level,
the activity in the Environment area in the United Kingdom
has specific environmental commitments and in the envi-
ronmentally certified countries at FCC Environment CEE,
locally adapted environmental policies are in place.
Aqualia has an integrated Management System, whose
scope includes quality management, the competence of
testing laboratories, environmental and energy manage-
ment, occupational health and well-being and information
security. The Integrated Policy incorporates, among oth-
ers, principles of action to ensure the achievement of the
Sustainable Development Goals, the quality of treated and
distributed water and, at environmental level, principles that
reduce the consumption of resources, improve the man-
agement of biodiversity and of Aqualia’s energy and climate
performance.
Taking into account other environmental certifications, Aqualia
services.
Commitment to continuous improvement.
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539
The Construcción area has an Integrated Policy that ad-
ditionally incorporates the analysis of environmental inci-
dents, the involvement of interested parties and the estab-
lishment of a plan to reduce the significant impacts of the
activities of the works and the company’s centres.
Cementos Portland Valderrivas has its own environmen-
tal policy that incorporates commitments related to its ac-
tivity, such as reducing wastewater discharges, minimising
waste, prioritising energy recovery, or restoring any adverse
impact caused by extraction activities.
The management of environmental aspects and impacts within the Group
Taking into account the heterogeneity of the activities carried
out by the Group with its four business lines, the environmental
aspects and impacts derived from the activities carried out are
different and, therefore, must be managed taking into account
the specific features of each one of them.
In general, each of the company’s business lines monitors each
of the processes, trying to identify, evaluate and manage the
impacts produced, to adopt the necessary practices to mini-
mise them.
In this regard, FCC Medio Ambiente Iberia has procedures to
identify and assess environmental aspects that could cause an
impact on its surroundings. The main environmental aspects
identified are related to the consumption of resources, waste
management, noise, discharges and emissions into the atmos-
phere. For all aspects, actions are established focused on the
elimination or mitigation of the associated impacts, whether on
the environment or the health and safety of workers.
FCC Environment UK, in addition to the review of environmental
aspects at operational level, carries out an annual review of the
aspects and impacts at corporate level. For its part, the activity
in the Environment area in the United States, despite not hav-
ing a certified management system, directs its actions to the
periodic maintenance of equipment, the inspection of facilities
and the training of its collaborators in spill prevention and the
management of emergency situations.
In the case of Aqualia, the environmental impact of its activity is
related mainly with the consumption of reagents, the generation
of hazardous and non-hazardous waste and energy consump-
tion. The main actions of the company are aimed at the search
for energy efficiency and the use of reagents, including improve-
ments in the precision of measurements, calculations of the en-
ergy performance of pumps, optimisation and improvement of
processes, facilities and production equipment, optimisation of
the purchase of energy, etc.
In the Construction business, environmental management fo-
cuses on identifying the environmental aspects likely to cause
an impact during the project, and on determining their prob-
ability of occurrence. In this regard, a series of guidelines are
established to direct efforts towards those aspects that may
entail a more intense impact.
There are certain environmental aspects that are considered to
be significant throughout the Construction area, such as those
linked to the generation of waste, the consumption of resources
and the generation of noise and vibrations. Specifically for FCC
Construcción’s activity, the main environmental aspects would
be the effects on the territory, largely due to movements on and
offsite due to the work itself or the fall of granular material during
transportation, as well as dust emissions into the atmosphere.
With regard to the Group company Matinsa, the environmental
aspects related to atmospheric emissions, from the fuel con-
sumption of vehicles and machinery have been identified as the
most significant.
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To limit the impact on the environment, Construction estab-
lishes a process to identify, assess and manage environmental
risks associated with infrastructures, pledging on innovation to
address these risks. Simultaneously and with the same objec-
tive, the area focuses its efforts on adequate management and
on the minimisation and reuse of the waste generated.
For the activity of Cementos Portland Valderrivas in Spain and
Tunisia, the identification of environmental aspects is based
on an analysis of the processes, facilities and products likely
to generate environmental impacts with a life cycle approach.
This objective and quantitative analysis takes into account the
possible interactions of the Cement business activity with the
environment, considering the different operating conditions that
may arise: normal and abnormal circumstances, as well as po-
tential accidental or emergency situations.
The most significant environmental issues identified for the Ce-
ment business are related to the extraction of natural resources
from quarries to obtain raw materials, the emission of green-
house gases (GHG), particles and polluting gases NOX and
SO2 or the consumption of fossil fuels and electrical energy.
Other significant issues are also identified, such as the genera-
tion of noise and hazardous and non-hazardous waste and the
consumption of water.
Cementos Portland Valderrivas’ response focuses on mitigating
greenhouse gas emissions through the use of decarbonated
materials to replace virgin raw materials, the use of alternative
fuels such as biomass instead of fossil fuels or the energy re-
covery of waste whose initial destination would have been its
deposit at a landfill.
Application of the precautionary principle
and resources dedicated to the prevention
of environmental risks
At FCC, the precautionary principle is applied through the de-
sign and implementation of its Group Environmental Risk Man-
agement Model, as well as through risk prevention activities in
each of the businesses.
The FCC Group’s environmental risk management model has
several independent management levels to achieve greater effi-
ciency in the Group’s risk management. In the event of detect-
ing a threat or risk that may affect the environment or health,
regardless of scientific uncertainty, the Group takes the appro-
priate proactive measures to prevent possible damage.
In this regard, the FCC Construcción System of Good Environ-
mental Practices® stands out, its own model, a pioneer in the
sector since 2009, which allows the establishment of preven-
tive measures in a proactive way in each company project. To
enhance the positive impact of FCC Construcción on the en-
vironment, this System defines a set of environmental actions
based on the initial identification of the environmental aspects
that may impact the project, the assessment of its potential
magnitude and its risk of occurrence. In this way, by directing
efforts to aspects with a greater impact, this System allows
more demanding environmental objectives to be defined than
those established by legislation or by customer requirements,
bringing about the company’s commitment to minimise its en-
vironmental impact.
540
In the case of FCC Medio Ambiente Iberia, the international
standards on which the company’s environmental management
systems are based are an instrument to prevent environmental
damage in itself. Hence, the requirements under which these
standards are governed, which are implemented in the organ-
isation’s management, are endowed with a preventive nature
that is consistent with risk management. In turn, this risk man-
agement is aimed at product and service conformity, so the im-
plementation of these management systems involves the appli-
cation of the precautionary principle. Risks are considered and
managed in each modification to the system, endeavouring to
prevent them from appearing, and at the same time evaluating
their probability of occurrence and their consequences. This is
how serious or irreversible damage to the environment is avoid-
ed, imposing preventive measures to those projects or events
in which there is no certainty regarding the effect that an activity
may have on natural resources.
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Similarly, regardless of whether or not they have a certified En-
vironmental Management System, the Environment area ap-
plies the precautionary principle in all the countries in which
it operates. For example, FCC Environmental Services (USA)
implements preventive measures to reduce the probability of
occurrence of environmental risks, as well as those related to
the health and safety of its employees.
For its part, some examples of preventive measures by Aqualia
would be the establishment of chlorine gas leak detection sys-
tems or the correct storage of chemicals and hazardous waste.
These, according to the application regulation, must be cov-
ered, identified, with protective buckets and absorbents, to be
used in a possible spillage.
Monetary resources dedicated to environmental
risk prevention (€) (8)
Resources dedicated to the prevention of envirnonmental
risks (€)
2019
2020
Cementos Portland Valderrivas
3,687,187
4,088,682
Construction Area
Environment Area
Total
22,357,762
21,443,566
4,552,007
18,211,325
30,596,956
43,743,573
Cementos Portland Valderrivas applies the precautionary princi-
ple by establishing a series of preventive measures to minimise
the risks of damage to the environment. The main measures
carried out in the cement business include the installation of
particle filters in kilns and mills, water purification systems, ad-
equate waste storage or techniques to reduce the emission of
greenhouse gases, among others.
This amount includes 24 million euros invested in the renewal of
the fleet of vehicles and more efficient machinery, 6.8 million eu-
ros for environmental consulting, 3 million euros in R&D projects
related to environmental improvement and more than 300 thou-
sand euros in environmental certifications. More than 8 million
euros have also been earmarked to other expenses and invest-
ments aimed at environmental protection and improvement.
The establishment of measures to identify and mitigate the
impact of environmental risks involves, annually, significant in-
vestments by FCC Group companies. Accordingly, in 2020, the
FCC Group dedicated more than 43 million euros to environ-
mental risk prevention, as shown below.
The increase in the amount allocated to the prevention of en-
vironmental risks with respect to 2019 is motivated by an im-
provement in the compilation of information from FCC Medio
Ambiente Iberia that has allowed the incorporation of invest-
ment into energy efficiency measures, environmental consulting
expenses or annual expense certification. Monetary resources
broken down by type are detailed below.
Moreover, over 200 Group professionals work full or part time
in environmental management and nearly 23,000 hours of envi-
ronmental training have been provided.
(8) The investment for the prevention of environmental risks is not
provided by Aqualia as it does not have homogeneous and
disaggregated information on said investments.
55% Annual investment in renewal of the vechicle
fleet and more energy-efficient machinery
(hybridor renwable)
1% Annual investment in energy efficient
measures
8% Investments in R&D projects related to
environmental improvement/environmental
impact reduction
1% Annual environmental certification costs
(ISO 14001 ISO 50001, EMAS, etc.)
16% Environmental consulting expenses
19% Other expenses and investments relating to
environmental protection and improvement
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Number of FCC Group provisions
and guarantees for environmental risks
All FCC Group companies have a general third-party liability pol-
icy to cover accidents, damage or risks caused in the form of
accidental contamination of the environment. The Group also
holds an environmental third-party liability policy that ensures
coverage for to 60 million euros in case of accidents and acci-
dental contamination. Both policies have global coverage, and
this can be complemented with policies contracted locally by
each of the businesses.
In 2019, in order to comply with the obligations expressed in
Law 26/2007 of 23 October on Environmental Responsibility,
FCC Medio Ambiente Iberia analysed specific environmental
risks related to treatment plants and landfills. As a result of this
process, none of the 33 facilities analysed has had to establish
a financial guarantee.
Additionally, the activities of the Environment area in the Unit-
ed States, the United Kingdom, Slovakia, the Czech Republic,
Romania and Serbia have specific guarantees through policies
contracted to cover environmental risks.
In this sense, Cementos Portland Valderrivas has a policy that
covers, for its cement business, up to 15 million euros per claim
and 30 million euros for accidental contamination.
Regarding environmental provisions, the Group has a provision
of 12.43 million euros provisioned in the Cementos Portland
Valderrivas division. For their part, FCC Medio Ambiente, FCC
Construcción and Aqualia do not have specific provisions to
deal with environmental contingencies, as the existence of sig-
nificant eventualities in the matter is not considered.
FCC’S contribution
to the circular
economy
The circular economy for the FCC Group
To make its vision reality, offering innovative solutions that con-
tribute to sustainable progress, the FCC Group has designed
a roadmap, integrating the circular economy into its business
strategy.
For FCC, the circular economy constitutes an opportunity to
expand its contribution to sustainable development, while al-
lowing the adaptation and resilience necessary for mitigation
and adaptation to climate change. For this reason, circularity is
integrated into two of its business lines, the Environment area
and Aqualia, specialising in waste and water management, re-
spectively. Regarding its Construction and Cement businesses,
the integration of the circular economy allows it to broaden its
horizon of contribution, helping it to advance towards a more
sustainable economic model.
To formalise its pledge to circularity as a means to progress in
sustainable development and in mitigating the effects associ-
ated with climate change, in 2017, the FCC Group signed the
Pact for a circular economy, promoted by the Spanish Govern-
ment’s Ministry of Agriculture and Fisheries, Food and Environ-
ment in conjunction with the Ministry of Economy, Industry and
Competitiveness. This initiative aims to involve all signatories in
the transition towards a new economic model that is more sus-
tainable and environmentally friendly.
To promote the FCC Group’s positioning in the circular econo-
my model, a preliminary analysis of the European Union’s pack-
age of measures was carried out and monitored by the Group’s
business lines. Through the development of master or business
sustainability plans, the lines of work and the roadmap have
been formulated in the area of reduction, reuse and recovery,
leading to a reduction in their environmental impact.
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Taking into account the different nature of FCC’s business activ-
ities, this application of a model based on the circular economy
is carried out in different ways:
The Environment area’s activity is based on waste man-
agement, carrying out a treatment of urban and industrial
waste and, therefore, promoting circularity from its collec-
tion and recycling activities to their recovery. Likewise, re-
duction measures are established within the facilities and
contracts generated, establishing waste minimisation plans
in some of their contracts. Environment area, pledging for
the circular economy, tries to convert waste into resourc-
es, optimising its use. In this regard, this business encour-
ages research and technological application, through the
implementation of various innovative projects. Some of
these projects are Life Methamorphosis, regarding the use
of biomethane production from waste treatment plants,
Life4Film, whose objective is to avoid incineration and the
dumping of plastic film waste or Deep Purple, a pilot project
in the management of the effluents generated at the organ-
ic waste treatment facility. On an international scale, other
examples of initiatives would be the energy use of waste at
the UK facilities, the application of robotics to improve the
classification of waste at the FCC Environmental Services
facility in Houston or the creation of a reuse centre, in the
city of Trnava, Slovakia.
For its part, Aqualia’s business model incorporates the
concept of circular economy, by providing catchment,
treatment, storage, distribution, sanitation and purifica-
tion services, including the reuse and reinsertion of water
into the natural cycle. Additionally, and to reduce negative
impacts on the environment, the water resources used in
operations are purified, eliminating waste and guarantee-
ing the best conditions when returning said resources to
the environment. In this way, and given the scarcity of this
resource, Aqualia plays a fundamental role in the use and
sustainable management of water.
With regard to the Construction business, the main con-
tribution in the field of circular economy is based on the
commitment to innovation, promoting the use of new sus-
tainable and reusable materials. In this context, FCC Con-
strucción has a circular economy strategy based on six
areas of action defined by the ReSOLVE framework. This
framework encourages the identification of business op-
portunities linked to the transition process towards a cir-
cular economy as a production model. Among the specific
measures that FCC Construcción has carried out would
be the reuse of inerts from other works, effluents and
wastewater from processes or removed topsoil. Likewise,
the use of recoverable elements is maximised, such as re-
movable walls or the use of portable treatment plants for
their use in different projects, as well as the use of recycled
materials. Additionally, FCC Construcción promotes digiti-
sation as a key element in its strategy to reduce resource
consumption, through the application of the Building Infor-
mation Modelling (BIM) research line. This line, promoted
by FCC Construcción and developed several years ago,
encourages the reduction and responsible consumption of
natural resources.
Lastly, the Cement business applies circular economy tech-
niques by implementing energy and waste material recovery
strategies, in order to improve production efficiency and the
sustainability of its activities. Also, to avoid the extraction
of mineral resources, Cementos Portland Valderrivas uses
secondary raw materials during different phases of the
production process, thus re-using resources from other in-
dustries, such as ashes, slag, construction and demolition
waste, sludge from papermaking processes, etc. Cementos
Portland Valderrivas also replaces fossil fuels with alternative
fuels, such as unused tyres, meat meal, sludge, vegetable
oil extract and other plant biomass materials, etc.
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544
The activity in the Environment area, contributing
to the circular economy of plastic
One of the main objectives of the Environment area is the im-
plementation of innovative recycling processes, which make it
possible to avoid landfill disposal and the energy recovery of
plastics present in urban waste.
For this reason, the area leads two projects co-financed within
the EU’s LIFE programme, located in the Ecocentral waste
treatment plant in Granada:
Plasmix: This programme aims to optimise the recovery
of certain plastics present in municipal waste, such as
polypropylene, polystyrene and expanded polystyrene.
Avoiding their incineration and landfill, these materials will
be recycled into high-quality granules, which can be used
in new products, including food packaging.
Life4Film: The objective of this project is to implement
an innovative recycling process, aimed at avoiding incin-
eration and the dispatch to landfills of plastic film (LDPE)
present in urban waste. By installing a 10,000t/year re-
covery line, the aim is to demonstrate the profitability of
the system and the possibility of replicating it at Europe-
an level.
Life Infusion, turning leachate treatment
plants into production and resource
recovery factories
Through EBESA, FCC Medio Ambiente participates in the
Life Infusion project, the objective of which is to convert
leachate treatment plants into factories for the production
and recovery of valuable resources, such as biomethane
and bio-based fertilizers.
This project, co-financed by the European LIFE programme
and approved in 2020, is the continuation of the Life Meth-
amorphosis project, in which FCC Medio Ambiente also
participated.
Life Infusion aims to demonstrate the economic, technical
and environmental feasibility of recovering high-value re-
sources from municipal wastewater.
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Reduction of waste generated
Responsible waste management is a particularly relevant issue
for the Group, given the nature and activities carried out by its
business lines. Through the circular economy, the FCC Group
promotes the reduction of its own waste, carrying on its activity
while, at the same time, promoting social, economic and envi-
ronmental sustainability. In this vein, the nature of the company’s
activities is inspired by the principles of the circular economy, its
maxim being ‘closing the life cycle’ of resources, guaranteeing
their subsequent incorporation into the production process.
Below are the variations(9) in the total waste generated, as well
as a breakdown by each FCC Group business line. The de-
crease in waste generated in 2020 is mainly due to project
phases with less waste generation in the Construction area. In
2019, the generation of waste in this area was especially signifi-
cant, as a result of the commencement of several projects that,
in their initial phases, involve a greater movement of earth and
generate a greater volume of inert waste. Likewise, the impact
of COVID-19 on the normal performance of activities has been
reflected in most of the environmental indicators.
Development of total waste generated (T)
(T)
4,078,233
3,211,360
2,323,266
(9) The waste generated in 2019 has been recalculated due to a
review in the reporting criteria.
(10) The waste admitted at centres that is kept stored on the site prior
to treatment is not considered in the calculation.
2018
2019
2020
545
Regarding the destination of waste, approximately 52%(10) of
the waste that is generated is recycled, reused, composted or
energetically recovered.
Breakdown of waste generated by destination (T)
Non-hazardous waste
Reuse
Recycling
Compost
Recovery, including energy recovery
Incineration (mass burning)
Landfill
On-site storage
Other
Hazardous waste
Reuse
Recycling
Compost
Recovery, including energy recovery
Incineration (mass burning)
Landfill
On-site storage
Other
33,486
632,969
41,219
236,767
23,493
800,329
213,998
96,472
23
153,485
7
1,579
254
73,978
513
14,694
2,323,266
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Most of the waste generated originates from the Construction
area and is non-hazardous, as shown in the following tables:
Distribution of total waste generated
List of hazardous and non-hazardous waste generated
(%)
(%)
Environment Area
14.6
Construction Area
12.9
Cementos Portland
Valderrivas
23.4% Aqualia
0.3% Cementos Portland Valderrivas
Aqualia
51.1% Construction Area
25.1% Environment Area
2.8
1.1
85.4
87.1
97.2
98.9
546
FCC Industrial, the first construction
company to obtain a “Zero Waste”
certificate
In the Construction business, FCC Industrial has be-
come the first construction company to obtain the
“Zero Waste” certificate, granted by AENOR. This cer-
tificate determines the existence of an internal tracea-
bility system in waste management, guaranteeing its
recovery and therefore avoiding the deposit of waste
in a landfill.
The pilot project in which this initiative has been ap-
plied, in Guadalajara (Spain), led to the recovery of
99.99% of the waste generated in building, industrial
and civil engineering works. To achieve this, the com-
pany has carried out a detailed study of the fractions
of waste generated, redesigning its procedures to cor-
rectly manage them.
To implement this system, FCC Industrial has required
the deployment of training programmes in waste man-
agement for all the personnel involved, a correct sepa-
ration of waste at source and the use of large-volume
containers.
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The management of waste by
the activity of Environment area
FCC, through its Environmental Servicess activity, is one of the
leading companies in the collection, treatment and recovery of
urban and industrial waste. The objective of this area is to treat
waste as a resource, reusing and recycling it as far as possible,
and taking advantage of the energy value in waste, when this
is feasible.
FCC collects both urban and industrial waste in thousands
of municipalities, including the world’s most important cities,
reaching approximately nine million tons per year. Depending
on the needs of each city and industry, we employ different
collection systems, each with vehicles and containers chosen
to maximise efficiency and minimise inconvenience for citizens
and companies.
Furthermore, FCC has hundreds of national and international
treatment, recycling and disposal centres that manage more
than 17 million tons of waste per year. This waste is treated
through thermal processes, composting, biomethanisation, re-
cycling, incineration, controlled sanitary landfills and tips, com-
bining multiple technologies to ensure the most thorough use.
With regard to the recovery of waste, a strategic activity that
makes it possible to reduce landfill disposal, FCC has special-
ised facilities in the United Kingdom, Austria and Spain.
Waste collected (T)
Municipal waste
Hazardous industrial waste
Non-hazardous industrial waste
Other waste (hazardous and non-hazardous)
TOTAL
Waste admitted at FCC centres (T)
Municipal waste
Hazardous industrial waste
Non-hazardous industrial waste
TOTAL
Treatment of hazardous waste
Hazardous waste (T)
Recovery
Stabilisation/Landfill
Transferred to end manager/other destinations
Other destinations
TOTAL
Treatment of non-hazardous waste
The tons of waste collected, admitted and treated throughout
2020 are detailed below.
Non-hazardous waste (T)
Recovery
Controlled landfill disposal/stabilisation
Transferred to end manager
Other destinations
TOTAL
547
2020
6,058,676
453,365
2,470,360
5,529
8,987,930
2020
7,123,021
667,166
9,699,244
17,489,432
2020
278,641
510,275
37,368
20,923
847,206
2020
3,729,815
9,895,784
2,644,518
42,971
16,313,089
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548
Efficient use
of resources
Due to the growing demand for natural resources globally, the
FCC Group bases its strategy on their efficient management. In
this regard, each of the Group’s businesses implements a series
of specific measures to minimise the impact of the activities car-
ried out, establishing protocols to protect the natural resources
necessary to perform its activities.
Damage to the environment, together with the possible scenar-
io involving the depletion of resources, has propelled the FCC
Group to implement increasingly more efficient management
models that are compatible with sustainable development, and
which reflect the company’s solid commitment to environmental
conservation and to the circular economy.
Water consumption and management
within the Group
Forecasts of change in the distribution of rainfall mean that wa-
ter resources may be scarce in many places. The FCC Group
works to ensure efficient water management in each of its activ-
ities, taking into account the water infrastructure and availability
in the area.
The FCC Group puts into practice all the available mechanisms
to ensure the most efficient management of this resource pos-
sible, guaranteeing compliance with the territorial limits of urban
water consumption, applicable to each business line.
The following table shows the trend in total water extraction
over the last three business years at the FCC Group.
The increase in water extraction registered in 2020 is due to the
extended scope of the information reported, since FCC Envi-
ronment UK has been able to collect information from a greater
number of locations compared to previous years.
As can be seen in the following figure, and taking into account
the extraction of water by business, 94% of water consump-
tion11 corresponds to Environment area.
Water abstraction (m3)
Distribution of water consumption (%)
13,016,152.0
13,848,749.4
14,579,492.7
5.0% Cementos Portland
Valderrivas
6.6% Construction Area
93.7% Environment Area
(11) This is not considered to be consumption by Aqualia because
the water monitored by the company is the water managed at
its facilities. On the other hand, the Construction business does
not have systems to measure the consumption of rainwater
or from desalination plants, as this consumption is residual
compared to the rest.
2018
2019
2020
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The FCC Group’s businesses favour the rational and efficient
consumption of this resource, carrying out different measures
to optimise it.
Aware of the weight it has on the Group’s total consumption,
the Environment area is committed to the use of technologies
and equipment that allow greater efficiency in the use of water,
both during the provision of its services and at its facilities. Like-
wise, the rational use of this resource is encouraged among op-
erating personnel, and the use of water from alternative sources
is promoted. Regarding this last point, it is worth noting, in the
United Kingdom, the project for the collection of rainwater in
the Harborough contract, which allowed the capture of 11,000
litres of water in 2020.
For their part, all the companies in the Construction business
work to guarantee a rational consumption of this resource, bet-
ting on the awareness of their collaborators to recall the impor-
tance of making a sustainable use of water. At the same time, in
2020, Cementos Portland Valderrivas continued to work on the
549
optimisation of water consumption by making improvements to
the water networks at the facilities to reduce losses caused by
breakages in old or damaged pipes.
Aqualia, specialised in the design and construction of all types
of hydraulic infrastructures, efficiently manages the end-to-end
water cycle, to guarantee the optimisation of public and private
resources and promote the sustainable development of com-
munities.
By managing each of the phases that make up the end-to-end
water cycle, Aqualia controls the process in detail, which in-
cludes the collection, treatment and purification, distribution
and collection of urban water, and its subsequent purification
for its return to the natural environment in optimal conditions,
providing a comprehensive service to consumers.
DRINKING
WATER
TREATMENT
Aqualia designs and builds
drinking water treatment sta-
tions, using a wide variety of
technologies, depending on
the quality of the source
water, to ensure the maxi-
mum guarantees in terms of
drinking water.
In 2020,
Aqualia treated 643.4 million
m3 of water.
END-TO-END
WATER CYCLE
INDUSTRY
The main figures related to the end-to-end management of wa-
ter by Aqualia are shown below:
DESALINATION
REUSE
To face the challenge posed
by the scarcity of water,
Aqualia offers
complete
water desalination solutions
to the industry, to generate a
greater quantity of water re-
sources. Aqualia designs
and
desalination
plants for seawater and brac-
kish water, including pum-
ping and sewerage plants.
builds
PURIFICATION
Aqualia has extensive experien-
ce in the design and construc-
tion of wastewater treatment
plants with mostly domestic po-
llution, currently purifying the wa-
ters produced by millions of in-
habitants. In 2020, Aqualia puri-
fied about 665 million m3 of
water.
Aqualia has plants that treat
the water after it is purified to
improve its physical and sani-
tary
This
characteristics.
water, more than 15.6 million
m3 in 2020, is intended to irri-
gate parks, gardens or golf
courses, clean roads, rechar-
ge aquifers or recover ecologi-
cal flows in degraded river
courses.
Aqualia provides all kinds of
water solutions for the
industrial sector and its
processes. Hence, it has
numerous facilities in
operation and offers the
right type of supply for each
case, both turnkey plants,
as well as the supply of
equipment accompanied by
the technical assistance
required.
Natural capital: input (m3)
Drinking water produced
Treated water
Raw water purchased
Total water consumed in the purification and
desalination processes
2020
643,416,868
665,830,462
201,161,827
174,980,591
Amount of water distributed
666,335,239
Re-use of WWTP outlet water (m3)
Total volume of water treated in WWTP
Volume of water reused
% total re-used
2020
682,243,654
15,632,168
2.3%
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Consumption of raw materials
Some of the activities carried out by the FCC Group involve a
necessary consumption of raw materials. For this reason, the
management of these types of resources is a priority issue, and
the Group encourages their optimisation to ensure their respon-
sible use, taking into account the specificities of each business.
Aqualia mainly consumes reagents used in water management
during the purification process. In line with the limitations es-
tablished by the regulation, the treatment plants have analytical
control procedures for the process, guaranteeing a minimum
and necessary consumption of this type of products.
Regarding the amount of raw materials reflected in the previ-
ous table, it should be noted that in the Construction area, the
consumption of land and gravel increased very considerably in
2020, mainly due to the progress of the large projects com-
menced in 2018 and 2019.
The activity of FCC Construcción, in addition to land occupa-
tion, involves the movement of large volumes of land for execu-
tion. To reduce the consumption of land, the company imple-
ments different actions, such as the use, as backfill in the work
itself, of the material extracted in the clearing of cuttings and
embankments. In this way, it is possible to reduce the volume
of material loans required compared with the volume initially
planned in the project.
Because of the very nature of its activity, Cementos Portland
Valderrivas is a large consumer of natural raw materials. This is
why it has an Environmental Policy to promote the sustainability
of natural resources, by introducing the circular economy princi-
ple and promoting the use of alternative raw materials and fuels.
Simultaneously, and promoting the responsible consumption
of natural resources, the company’s activity allows significant
waste recycling from other industries. Through the recovery of
materials, obtained from waste and by-products, natural raw
materials are replaced, saving non-renewable natural resources
and thus avoiding the impact of their exploitation on the natural
environment. In this regard, the main alternative raw materials
consumed by the Cement business include fly ash, blast fur-
nace slag, foundation sands, paper mill carbonates, industrial
sludge, concrete remains, olive stones, recycled fuel oil and re-
covered hydrocarbon.
The activity of Environment area works to reduce the use of
non-renewable natural resources, reusing the materials con-
tained in the waste as secondary raw materials in the produc-
tion cycle, provided that people’s health and the protection of
the environment are guaranteed. In this regard, the use, at var-
ious facilities managed by FCC Medio Ambiente Iberia, of re-
cycled materials to replace raw materials is worthy of mention.
In addition to raw materials, each of the FCC Group businesses
consumes other types of materials associated with the activity
that it carries out.
The consumption of raw materials, process materials, lubri-
cants and reagents, semi-finished products and container and
packaging materials throughout 2020 is detailed below.
Materials used (T)
2020
Raw materials (metals, minerals, wood, etc.)
41,396,446
Process materials, lubricants and reagents
Semi-finished products
Container and packaging material (paper,
cardboard, plastics)
TOTAL
96,849
3,726,276
8,671
45,228,241
FCC Construcción announces the
incorporation of Blockchain technology
through the BIMCheck project
FCC Construcción has notified its stakeholders of its par-
ticipation in the creation of BIMCheck, a platform whose
main objective is to improve the company’s productivity
through the automation of quality control and manage-
ment processes. The application allows the improvement
of the traceability of the materials and the documentary
control of the works. It has been applied in a pilot building
project in 85 homes in Tres Cantos (Spain), constituting
the first experience worldwide that combines the applica-
tion of BIM and Blockchain in a project.
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Energy consumption
Both energy efficiency and the substitution of fossil fuels with
renewable energy sources are fundamental points to turn FCC
into a more sustainable business. Aware of this, the Group in-
cludes the implementation of these measures in its business
model as part of its strategy.
The FCC Group, through its business lines, carries out different
measures to increase the energy efficiency of the organisation.
In this way, both the Environment area and Aqualia have an
Energy Management System certified in accordance with the
ISO 50001 Standard, which implies the establishment of energy
efficiency objectives and measures.
In addition, FCC’s businesses work on improving the energy ef-
ficiency of its facilities and processes, through different projects,
such as the replacement of luminaires with LED technology, the
renewal of equipment, training in efficient driving or the installa-
tion of presence detectors, among others.
It should be noted that FCC Medio Ambiente received a prize in
the 2019/2020 edition of the European Business Environmental
Awards (EBAE Awards), for a project aimed at implementing
affordable electric mobility in urban services. In this way, FCC
Medio Ambiente Iberia has been working throughout 2020 on
the adaptation of this technology, which entails enormous envi-
ronmental benefits, such as the reduction of polluting emissions
and noise, the reduction of the carbon footprint and the maxi-
misation of energy efficiency.
The Group’s energy consumption in the last three years is
shown below, reflecting the company’s efforts in this area:
Direct and indirect energy consumption (GJ)
43,456,989
48,431,483
43,103,946
Other examples of the FCC Group’s commitment to the use of
renewable energies would be the project to install photovoltaic
solar energy at 26 Aqualia consumption points, which repre-
sents an expected annual production of 5GWh (18GJ) per year;
the PPA (Power Purchase Agreement) for this business line,
which aims to acquire 76GW per year of renewable energy for
the next 10 years; or the use of landfill gas to generate electricity
and hot water, by FCC Environmental Services in the United
Kingdom and Hungary.
The consumption of renewable energy in the last three years is
shown below:
Renewable energy consumption
2018
2019
2020
10,786,857.0
13,107,941.6
11,606,735.8
The decrease in energy consumption compared to 2019 is mo-
tivated by the effects of the pandemic on the normal develop-
ment of the activity, mainly in the Cement area.
Furthermore, the FCC Group’s business lines endeavour to use
an increasing percentage of energy from alternative sources
in their processes. In this connection, the efforts of Cementos
Portland Valderrivas to replace fossil fuels with alternative fuels,
such as biomass, in processes requiring a high energy con-
sumption, such as the manufacture of cement, are worthy of
mention.
2018
2019
2020
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w
Aqualia, researching for the future of desalination
Aqualia leads the MIDES project, which has achieved total
energy autonomy for two desalination plants, in Racons (Ali-
cante) and in Fonsalía (Santa Cruz de Tenerife).
and the supply of drinking water from salt water, exploiting
the synergies between both processes, achieving autonomy
in energy terms.
Over five years it has gone from a small laboratory cell, which
could treat a few millilitres of water a day, to the present, where
almost 4 m3 is being desalinated daily, enough to supply 25
people at each plant. This project provides a solution, simul-
taneously and sustainably, to the purification of wastewater
Thanks to the development and start-up of these projects,
Aqualia contributes to defining the future of desalination
plants, contributing at the same time to sustainable develop-
ment, by integrating the fight against climate change and cir-
cular economy criteria at these types of facilities.
552
Cementos Portland Valderrivas is
committed to using renewable energy for
cement production and renews its EMAS
Environmental Management and Audit
System
Cementos Portland Valderrivas began, at its facilities in Al-
calá de Guadaira, the largest cement manufacturing centre
in Andalusia, the transition to the use of biomass as fuel.
This energy source, widely used in the production of re-
newable energy, will reduce its greenhouse gas emissions
by up to 40%.
In addition, Cementos Portland Valderrivas maintains a very
demanding environmental policy, and its factory in Alcalá
de Guadaira has renewed for the eleventh year its regis-
tration in the EMAS Environmental Management and Audit
System, a voluntary EU mechanism that identifies and val-
ues companies committed to the environment and to com-
pliance with current legislation.
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FCC, facing
the climate change
challenge
Climate change is one of the greatest threats of our century, ac-
cording to experts. According to the Global Risks Report of the
World Economic Forum, published in 2021, the influence of en-
vironmental risks remains, confirming the trend of recent years.
In a context marked by climate uncertainty, those entities ca-
pable of reacting and anticipating possible risks related to cli-
mate change and the environment are particularly important.
The FCC Group is aware, taking into account the opinion of
experts and international trends, that the sustainable develop-
ment of cities entails responding to great challenges, among
which is the fight against climate change. In line with its mission,
the Group promotes the development of innovative solutions to
transform the present and future of cities, bringing about the
sustainability of its business model.
In this vein, the FCC Group, in line with its commitment to inte-
grate climate change management at all its operational levels,
as well as in each of its business lines, has taken into account
the recommendations of the Task Force on Climate-Related
Financial Disclosures (TCFD) established by the Financial Sta-
bility Board (FSB), in relation to the disclosure of climate-re-
lated information. These recommendations are structured in
four blocks: governance model, strategy, risk management
and metrics and objectives, with the ultimate aim of making
investors and other stakeholders aware of the management
and integration of risks and opportunities derived from climate
change in their business model.
Governance model
Stakeholders are increasingly demanding the greater involve-
ment of companies to promote more ambitious policies that
allow the impacts and risks derived from their activities to be
managed, including non-financial issues that directly affect the
natural environment, such as those related to climate change.
The FCC Group, as a world benchmark in citizen services, spe-
cialised in the end-to-end management of water, environmental
services and the infrastructure sector, is aware of the important
role it plays in this task. For this reason, the company has an
across-the-board governance model for all ESG aspects, in-
cluding climate change management, as explained in section
The Group’s CSR Policy.
Strategy
In accordance with the values of integrity, transparency and
professionalism that characterise the FCC Group, the company
tries to inform its stakeholders, including investors, about the
effect of climate change on the organisation’s different lines of
business, strategy and financial planning.
Monitoring
Comunication
Reduction
Pillars of the
Climate Change
strategy
Innovation
Adaptation
The company is aware that its main activities as a business,
such as cement production or waste management, among oth-
ers, involve the emission of greenhouse gases. With the aim of
reducing these emissions to the maximum, the FCC Group has
a Climate Change Strategy, which establishes the strategic lines
and the roadmap until 2050, defining quantitative objectives
and selecting KPIs for monitoring and reporting. This Strategy
is based on the following pillars:
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Monitoring: despite the Group’s long journey to measure
the carbon footprint, the objective of this pillar is to ad-
vance in the improvement and scope of the quantification
of greenhouse gas emissions.
Reduction: based on the information obtained, reduction
goals and actions are envisaged to attain these objectives.
In this connection, the FCC Group devotes numerous ef-
forts to the development of products and services with a
lower environmental impact.
Adaptation: the activities of the Group and its clients are
exposed to the impacts derived from climate change, in-
cluding both physical risks and the risks of transition to a
low-carbon economy. The former include impacts derived
from extreme weather events, for example, while the latter
comprise regulatory changes that may occur in the future.
Innovation: the new challenges that arise on a global scale
will require the Group to be able to adapt to the new en-
vironment. In this way, FCC must develop innovations that
allow it to reduce its environmental impact and to help its
clients in the transition to a low-carbon economy.
Communication: the FCC Group must maintain a trans-
parent and open relationship with its stakeholders, re-
porting on the objectives set, the actions carried out and
other initiatives that contribute to the fight against climate
change.
In this way, FCC has been able to consider the impact that is-
sues related to climate change have on its business and strat-
egy, specifically on its products and services, its value chain,
adaptation and mitigation activities, investment in research and
development and company operations.
The impact that issues related to climate change have on its business and strategy
Products and services
Research and development (R&D&i)
In this regard, for example, the impact of climate change
has led to the development of innovative and more sustain-
able initiatives that have made it possible to provide more
efficient products and services in each business line, in-
corporating circular economy projects and mitigating, on a
parallel basis, the effects of their activities on the environ-
ment.
Likewise, in this strategy, the FCC Group has a pillar related
to innovation applicable to each of the business lines in a
cross-cutting manner, the objective of which is to design
new products that are more efficient and less dependent
on coal, based mainly on continuous improvement and on
the circular economy as priority axes, in the design, execu-
tion, operation and maintenance phases.
Value chain
Continuing
Risks associated with climate change, as well as ESG de-
mands, have prompted the company to expand the scope
of social and environmental criteria in its value chain. To
this end, during the 2020 business year, the Purchasing
Manual has been reviewed and the supplier approval pro-
cedure has been authorised, which includes financial and
non-financial aspects.
Adaptation and mitigation
The company, aware that its main activities, such as ce-
ment production or waste management, among others,
generate greenhouse gases, has incorporated two fun-
damental lines of action into its Climate Change Strategy
that focus on mitigation and adaptation, to reduce these
emissions, and include technical, management and energy
consumption improvements.
Taking into account the possible climatic impacts derived
from global warming in the company’s operations, the
FCC Group focuses its efforts on being part of the solu-
tion, maintaining its leadership in the management of the
end-to-end water cycle, environmental services and infra-
structure development and management and promoting
synergies between the different business lines, to enhance
profitability, mitigate climate events across the board and
promote the Group’s sustainable development.
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Risk management
Metrics and objectives
The FCC Group is aware that its business lines are exposed
to risks derived from climate change, therefore different action
plans are implemented at the organisation based on the ac-
tivity carried out by each of them. In addition, depending on
the trends and performance of each sector, each business line
annually identifies the possible opportunities derived from cli-
mate change, such as, for example, the integration of the circu-
lar economy into its operations, with significant savings and a
reduction in GHG emissions.
Climate-related risks and opportunities are included within the
FCC Group’s Risk Management Model, as well as any other
type of risk that may affect FCC. In this way, its periodic evalua-
tion is guaranteed, together with the establishment of appropri-
ate controls for its prevention and detection.
The main risks related to climate change identified by the FCC
Group include exposure to extreme weather events, water scar-
city, the establishment of new limits on GHG emissions or the
appearance of new regulations regarding the energy recovery
of waste or the energy certification of buildings, among others.
However, the FCC Group also considers that the transition to-
wards a low-carbon economy implies the emergence of new
needs in urban environments. As a result of its efforts in inno-
vation and in mitigating its environmental impact, FCC is posi-
tioned as a leading player to respond to these needs, contrib-
uting to the sustainable development of the cities of the future.
In the FCC Group’s desire to advance in measuring the impact
of the Group’s activities, one of the fundamental pillars is the an-
nual calculation of the carbon footprint of each business line. To
contemplate the particularities derived from the different activi-
ties carried out, each of them has developed its own methodol-
ogies, always endorsed by the Spanish Climate Change Office.
Next, the greenhouse gas emissions of the FCC Group are de-
tailed, including scopes 1 and 2. For their calculation, different
methodologies have been used for each activity sector of the
Group, all of them aligned with the GHG Protocol.
FCC Group direct and indirect GHG emissions (tCO2e)
731,600
7.870,743
604,073
6,900,204
768,792
5,165,274
2018
2019
2020
Indirect (scope 2) GHG emissions t eq CO2
Direct (scpote 1) GHG emissions t eq CO2
Additionally, the FCC Group’s direct biogenic GHG emissions
amounted to 2,006,143 tCO2 in 2020. The decrease in GHG
emissions with respect to 2019, like that indicated with respect
to energy consumption, is motivated by the effects of the pan-
demic on the normal performance of activities, mainly in the
Cement area.
As part of its Climate Change Strategy, in 2019, the FCC Group
approved the objectives to be met by the 2050 horizon. In this
way, based on the individual objectives of the different busi-
nesses, the FCC Group has established two different emission
reduction targets, differentiating between Cementos Portland
Valderrivas and the rest of the Group’s business lines. This is
so due to the peculiar characteristics of the cement sector, in
which most of the emissions are linked to its own activity, with
no possibility of reduction if not due to lower production.
The Group’s GHG emission reduction targets are detailed be-
low, including scopes 1 and 2, and excluding the cement busi-
ness. For these objectives, 2017 is taken as the base year:
Year
2030
2040
2050
Group Objective
(without cement)
-10%
-15%
-20%
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For Cementos Portland Valderrivas, the following objectives
have been established, in terms of emissions intensity:
Year
2030
2040
2050
Cementos Portland
Valderrivas target
(kg CO2/T Clinker)
768
754
740
To measure the degree of attainment of the FCC Group with
regard to the goals described, a series of indicators have been
defined for each of the business lines that make up the Group,
as well as a series of intermediate objectives, calculated based
on the year 2017.
Aqualia continues its innovation process by creating
new solutions to fight climate change
The ABAD Bioenergy technology, patented by Aqualia, is
a comprehensive biogas cleaning, improvement and purifi-
cation system that allows a higher quality of biomethane to
be obtained at a lower price. Aqualia has 4 treatment plants
with this technology installed, so it obtains enough biom-
ethane to supply 200 vehicles. The ABAD programme,
which began in 2018 and will run until 2026, has been se-
lected in 2020 for the Climate Project call. Thanks to its
operation, the Ministry for Ecological Transition has certi-
fied and subsidised 100% of the tons of CO2 avoided by
Aqualia during 2018.
The Run4Life project, led by Aqualia, proposes a wastewa-
ter treatment system that does not require a connection to
sewerage networks, re-using 100% of grey water. In 2020,
after its application for two years in the Porto do Molle Busi-
ness Centre, the results have been presented for this pro-
ject, which is being developed on a large scale in Europe.
FCC Environment UK, supporting its clients towards a zero carbon footprint
FCC Environment UK offers innovative waste management
solutions to more than 60 local authorities, to support them
in their transition towards carbon neutrality. For this, it is
necessary to carry out initiatives in addition to recycling
practices, which contribute to the fight against climate
change.
An example is the use of fully electric vehicles for waste col-
lection in both urban and rural areas. Given the thousands
of kilometres of waste disposal routes across the UK, the
switch to electric mobility could have a major impact by
helping to reduce emissions from its customers, supporting
their transition towards a zero-carbon footprint.
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557
The minimisation
of pollution
The FCC Group, in accordance with its environmental commit-
ment, aims to reduce polluting atmospheric emissions (mainly
NOX, SOX and particles) associated with its business activities.
These emissions, which do not contribute to climate change,
are not related to GHG emissions, which are detailed in the pre-
vious section of this report.
In this regard, activities at the facilities of certain of the Group’s
business lines have fixed source emission limit values, mainly.
This is the case of Cementos Portland Valderrivas, as well as
the industrial waste management activity of FCC Medio Ambi-
ente Iberia or certain facilities of FCC Environment UK. In these
cases, to control pollutant emissions, the facilities have gas
purification and filtering systems, among others, using different
techniques depending on the characteristics of the pollutant
generating process.
The main atmospheric emissions by type of pollutant are de-
tailed below:
Atmospheric emissions (T)
Aqualia
Cementos Portland
Valderrivas
Construction
Area
Environment
Area
NOx
SOx
Persistent organic pollutants (POPs)
Volatile Organic Compounds (VOCs)
Particles (MP)
HCL
HF
Emissions of ozone-depleting substances
(ODS)
72
5,988
0
–
–
–
–
–
1
717
0
144
125
8
1
–
437
6
–
21
1,264
–
–
–
5,303
495
0
142
53
54
1
–
Total
11,801
1,218
0
306
1,443
62
2
1
With regard to NOx, SOx and particles, the main emissions
resulting from the activities, the proportion existing in each of
them is detailed below:
Emissions of NOx, SOx and Particles (T)
82% NOx
8% SOx
10% Particles
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558
These NOx, SOx and particle emissions are in line with the infor-
mation provided in previous years, without detecting significant
variations. The rest of the atmospheric emissions have been
compiled for the first time in this report.
The specific measures adopted in each Group business with
regard to atmospheric emissions vary significantly depending
on the activity carried out:
At Cementos Portland Valderrivas, cement manufac-
turing produces significant emissions into the atmosphere
from Clinker furnaces. To ensure strict compliance with the
emission limits, sleeve and electrostatic filters are installed
to reduce concentrations in channelled sources. Other
measures include the installation of filters in the transport
and transfer of powder materials, the use of closed stor-
age, wind-proofing screens, the irrigation of tracks and the
use of sweepers and vacuum vehicles to avoid widespread
emissions.
The Construction business, for its part, establishes pre-
ventive measures, ranging from the roof of the trucks that
transport powdery material, to the use of pipelines to trans-
port debris from a height. Additionally, other measures are
established, such as the irrigation of roads and stockpiles
or the use of machinery with a humidifier system to reduce
the emissions derived from drilling.
The Environment business is committed to favouring the
active degasification of the landfills it manages. In the case
of landfills, the pertinent measures are established to con-
trol widespread emissions, especially in the transport of
powdery material. With the aim of minimising said emis-
sions derived from transport vehicles and machinery inside
the facility, it is guaranteed that the particles deposited on
the roads are not dispersed, necessary cleaning is carried
out or accumulations of dust are removed, among other
measures.
Additionally, in relation to spillages, the preventive measures
taken by the FCC Group include, among others, the installation
of water purification systems, complying, in any case, with reg-
ulatory inspections; the neutralisation of effluents with basic pH
or the placement of containment elements near water bodies.
In relation to noise pollution and in order to avoid a direct impact
on communities, the FCC Group ensures that local regulations
on noise are respected, carrying out different types of actions,
such as the installation of acoustic screens at Construction and
Cement businesses, the performance of tasks at times that
minimise the impact and the use, as far as possible, of more
modern and silent machinery.
Then, with the aim minimising the impact from light pollution,
some FCC Group businesses took different measures, such as
the installation of timers and presence detection systems, or the
use of directional light, which illuminates only the area required
without impacting the environment.
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Protecting
biodiversity
The activities undertaken by the company require a certain use
of natural resources, a fact that may have an impact on the eco-
systems and the species that live in them. For this reason, the
different businesses that make up the Group should guarantee
the care, preservation and restoration of biodiversity in those
areas where the company operates.
The following table shows the surface area in hectares of vul-
nerable protected areas, together with the affected surface are-
as restored by the Group in the last three years.
Measures taken to preserve or restore biodiversity
Protection of vulnerable
areas (ha)
2018
534
2019
1,127
2020
1,142
Restored affected areas (ha)
544
604
700
As can be seen, there is an ongoing increase in the number of
vulnerable areas protected in 2020 compared to previous years.
Given the different nature of the activities undertaken by the
FCC Group’s businesses, their impacts on biodiversity vary
widely, as do the measures taken to protect them:
At Cementos Portland Valderrivas, the impact on bio-
diversity consists of the exploitation of natural resources
in quarries for the supply of raw materials. To be able to
measure this impact, an assessment is made of the effect
on the landscape that involves observing the exploited sur-
face compared to the restored surface. Restoration work
in all the quarries during the last year consisted of morpho-
logical repair and revegetation of the exploited area. This
involved applying suitable sowing and planting techniques,
and using native species adapted to the particular condi-
tions of the soil and the climate in the region, such as holm
oaks, pine trees, broom and others.
The Construction business has an impact on biodiversity
inherent to its activity, since works may be located on land
adjacent to or within protected areas. With regard to this,
during the execution of the works the most valuable areas
are protected, physically delimiting them, and it is important
to use existing roads rather than opening new roads. Also,
when the works are finished the affected areas are restored
by cleaning and removing elements, de-compacting the
land and adapting it morphologically to the environment,
and finally planting trees and shrubs.
With regard to the Environment business, the company
operates in natural environments where biodiversity is pres-
ent, and the company’s activity contributes to its preser-
vation, through maintenance and protection services for
parks and gardens, cleaning services for beaches, and
specific initiatives developed in waste treatment and dis-
posal installations. Landfills are also usually restored with
different plant species, which is very beneficial and includes
the stabilisation of the waste mass and the reduction of
odours.
Globally, 145 of Aqualia’s 6,881 installations are located
in areas with a potential impact on biodiversity. For the
correct management of these impacts, all the information
on this type of installations is included in the company’s
management system, as well as on any incidents that may
have occurred. in 2020 there were 7 incidents with a slight
impact on biodiversity and occurring as a result of waste-
water discharges, of which 3 occurred in protected areas.
Additionally, and to achieve its environmental objectives,
Aqualia is undertaking a number of projects for the recov-
ery of ecosystems.
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However, the FCC Group’s commitment to biodiversity is not
limited to mitigating the impacts that its activities may cause.
In this regard, a number of initiatives deserve special mention,
including collaboration with nature protection groups for the
maintenance and control of biodiversity in quarries outside op-
erations; actions such as the physical protection of specimens,
relocation of plant and animal species, all undertaken by FCC
Construcción; and the involvement of FCC Medio Ambiente
Iberia in environmental awareness initiatives, such as collabo-
ration with the SeoBird Life non-profit organisation. The follow-
ing table details the number of construction jobs and the area
affected for those that are located in areas with some type of
official biodiversity protection status.
Protected vulnerable areas and affected areas
Location in natural protected areas or with a high biodiversity value
Location where the landscape is catalogued as significant
Impact on a natural watercourse in a protected area
Impact on a natural watercourse in areas with a high biodiversity value
Impact on watercourses of high or significant value for local or indigenous communities
Impact on catalogued or protected flora
Impact on catalogued or protected fauna
Number of
installations
Surface area
(ha)
154
8
2
5
9
13
12
835
955
12
848
878
1,459
1,394
FCC Environment UK to relocate voles
to the Greengairs landfill
As part of its restoration project at the Greengairs landfill (Scotland), FCC Environ-
ment UK will relocate colonies of voles to a new location. Voles are an endangered
species in the United Kingdom, so their protection is a priority and their habitats
are protected.
For their relocation, a customised habitat with 425 metres of water banks was
designed in advance, leaving these rodents enough land to dig, shelter and breed.
The habitat also includes open water channels to give them access to food sourc-
es. The transfer will take place once there is enough vegetation in the area, and this
event will provide an opportunity to check their health, weight, sex and probability
of reproduction.
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Committed to the FCC Group human resources team
The DNA of the human resources team in the FCC Group
The FCC Group considers its human resources team a strate-
gic asset, and therefore, the management of human resources
and labour relations in the companies within the FCC Group is
governed by the following principles:
a Respect for human and labour rights recognised in nation-
al and international legislation, for diversity, equal opportu-
nities and non-discrimination.
f A work environment in the Group that is safe and healthy
and that promotes physical and psychological well-being
in the workforce and its areas of influence.
b The design of a value offer that favours the selection, con-
tracting and retention of talent in all the countries in which
the Group operates, always with respect for the specific
nature of both the area and of each business area.
c The proposal to guarantee the training and ongoing devel-
opment of its workforce worldwide, in line with the needs
of each business.
g We need to be immersed in the digital transformation
process to be able to add value to the FCC Group, lead-
ing analysis and adaptation to the changes involved in a
connected society, social networks, big data, machine
learning, communication channels, the internet of things,
etc. We also need to provide suitable data processing that
enables the optimisation and management of processes,
and analysis to make it easier to take the most appropriate
decisions in Human Resources Management.
d A remuneration system that enables the attraction and re-
tention of the best professionals and that aligns its objec-
tives with those of the Group.
e A suitable labour relations framework and dialogue mech-
anisms for adapting the organisation to business and so-
cial requirements, promoting business competitiveness
and efficiency.
h Encourage transparency and communication, generating
channels of dialogue and communication between the
Group’s different professionals by means of specialised
work committees, surveys, the corporate website, and the
Group’s different intranets.
i Alignment of the professionals with the Group’s strategic
objectives, always acting in an exemplary manner in ac-
cordance with the Code of Ethics and Conduct, the princi-
ples, values and other established standards.
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562
The people in
the centre: you_
People are a priority for FCC. For this reason, in 2020 “you_”
was founded, the FCC Group brand in Human Resources Man-
agement. “you_” sums up the essence of who we are. It is our
new way of being, of doing, of growing, of innovating, of feeling
and of planning our future.
With regard to “you_”, a series of projects have been initiated in
the FCC Group that include a number of initiatives linked to the
Group’s outlook and values, including the following:
you_diverse: diversity is part of FCC’s talent strategy (age,
race, nationality, religion, culture, etc.) and we are commit-
ted to it in each phase of the professional cycle.
you_health: culture of a healthy lifestyle, fostering an or-
ganisation supported and represented by healthier, happi-
er, more capable and more accomplished people.
you_digital, which consists of a collection of training ac-
tions linked to the optimisation of processes and the digital
transformation of those working for the FCC Group.
By the peopleand for the people
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Human capital profile
Diversity in the workforce
Distribution of the workforce by sex
Distribution by age range
A total of 59,747 people work in the FCC Group. The distribu-
tion by gender and age range at the end of the business year is
shown in the following tables.
FCC also operates in over 30 countries. The distribution of the
workforce in each of these countries and by geographical area
is detailed in Annex II as follows:
Distribution of the workforce by geographic area
22.3%
77.7%
men
Spain
75.44%
Rest of E.U.
10.58%
Rest of
world
10.76%
USA
and Canadá
0.98%
Latin
America
2.24%
< 35 years old
1,850
6,788
7,501
35-54 years old
24,043
>54 years old
15,570
3,995
Female
Male
Workforce by business area
67% Environmental Services
18% Aqualia
12% Construction
2% Cement
1% Central Services
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Organisational structure
Appreciation of job positions
Recruitment and dismissals
The FCC Group understands that it is essential to have a suitable,
coherent organisation based on the strategy of each business
area and its operational requirements, which enables a clear, sim-
plified vision of the organisational structure, and which clarifies
the distribution of responsibilities among the job positions and
profiles required in each case.
The organisation enables the management of people in areas
such as selection, functional mobility, training and the assess-
ment of different job positions.
In the 2020 business year, FCC was completing the process of
reviewing its organisational structure to adapt it to the current
context. This involved an analysis of both the organisational level
and the family, mission and duties of each job position within the
organisation.
The above-mentioned review gave the following result for distri-
bution by gender and functional level at the close of 2020:
The FCC Group is currently developing a methodology for the
appreciation of work positions that will make it possible not only
to adapt work positions to the strategy and production for each
area, but also to express the Group’s commitment to the crite-
ria of suitability, totality and objectivity, making it easier both to
improve the allocation of duties, the distribution of works and to
defend the principle of equality.
The corresponding employment contracts were formalised in
accordance with the most suitable modality. This depended on
the specific needs for each of the activities undertaken in the
different business areas.
Of the total workforce, 43,028 people have an indefinite con-
tract and 16,719 a temporary contract. It should be pointed out
that a large number of the above-mentioned temporary con-
tracts enjoy very stable employment if we take into account that
many contracts are assigned in sectors in which there is an
obligation for contractual subrogation. Also, 7,997 people have
a part-time contract and 51,750 have a full-time contract.
The data by gender are as follows:
Distribution by gender and functional level
Workforce by gender and type of contract
Workforce by gender and type of working day
DIrectors
and Managers
82
437
Supervisors
Technicians
Clerical Staff
Sundry trades
551
,067
1,660
3,898
1,975
1,004
9,078
Female
Male
32,975
10,053
13,426
Male
Female
3,293
42,271
Mal
Female
9,479
4,130
3,867
37,995
Open-ended
Temporary
Full-time
Part-time
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The annual average amounts to a total of 60,127 contracts of
which 42,962 correspond to indefinite contracts (10,010 wom-
en and 32,952 men), while 17,165 contracts are temporary
contracts (3,112 women and 14,053 men).
Of this annual average, 7,831 contracts are part-time (of which
3,614 correspond to women and 4,217 to men), while 52,296
are full-time (9,508 women and 42,788 men).
The following table is a breakdown of the annual average by
type of contract, type of working day and age range:
Average by type of contract and age range
Average by type of working day and age range
25,220
Open-ended
Temporary
29,922
Full-time
Part-time
5,730
4,593
13,149
13,391
8,302
8,983
3,133
3,601
2,890
1,340
< 35 years old
35-54 years old
> 54 years old
< 35 years old
35-54 years old
> 54 years old
Por otro lado, y en cuanto a la distribución por nivel funcional:
Average by type of contract and functional level
DIrectors
and Managers
544
5
Supervisors
Technicians
Clerical Staff
3.238
538
4.403
994
2.272
598
Sundry trades
15.030
Open-ended
Temporary
32.505
With regard to the calculation of the average by type of con-
tract, type of working day, age range and functional level, active
workers in the month were counted, taking as a reference the
twelve months corresponding to the 2020 business year.
Average by type of working day and functional level
DIrectors
and Managers
542
8
Supervisors
Technicians
Clerical Staff
3,616
159
5,143
255
2,695
175
Sundry trades
7,234
Full-time
Part-time
40,300
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566
In 2020 dismissals for the entire FCC Group, classified by gen-
der, age and functional level, were as follows:
No. of dismissals by gender 2020
Commitment
to talent
Responsible leadership
Managing by skills
The FCC Group has opted for management by skills, promoting
talent and the continuous development of professionals. These
are transversal skills regardless of the position occupied and
this to the extent that at FCC it is not only important what ob-
jectives are met but also how they are met.
The six transversal skills applicable throughout the FCC Group
and that will be applied in key processes such as selection and
training, are detailed as follows:
156
Women
532
Men
No. of dismissals by age range 2020
143
368
177
<35 years
35- 54 years
> 54 years
No. of dismissals by functional level 2020
24
63
Directors and Managers
Supervisors
114
Technicians
37
450
Administrative
Clerks
Sundry trades
In the FCC Group, both the CEO and the rest of the managers
do not only need to be managers of objectives and results, but
also leaders in people management.
In this regard, a training plan is being developed for the entire
management team, focused on the levers of self-awareness,
responsible leadership, personal inspiration, the promotion of
talent and innovation.
At an international level, training actions were also designed and
implemented in 2020 aimed at management personnel.
Focus on
Results
Client
Oriented
Flexibility
Teamwork Comunication Alignement
In the 2021 business year, a training plan for the skills model
will be launched, focusing on the levers of self-knowledge and
awareness, interpersonal skills and a strategic and systemic
outlook.
In the FCC Group, the focus on results is an essential part of the
skills and values that guide the performance of our employees.
In this regard, meeting objectives (budgets, deadlines, projects,
etc.) is essential. In the Group there is a culture of dialogue with
employees with regard to their performance at work.
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567
During 2020, a total of 693 internal
mobility processes were published
through the Epreselec tool.
Join FCC
The long-term success of the Group depends on our ability to
attract, motivate and develop people, and for this reason, the
following commitments are made in this regard:
Applying the principle of equal opportunities and non-dis-
crimination to any selection, promotion or mobility process,
taking the aptitude, achievements, worth and personal and
professional capacity of the candidates as the criteria dur-
ing the objective selection process.
Anyone joining any company in the FCC Group will need
to participate in the corresponding selection process, en-
suring that the candidate meets the conditions of suitabil-
ity defined for the position, going through the phases and
passing the tests that are part of the corresponding selec-
tion process.
Prioritising internal promotion for vacancies before recruit-
ing other professionals externally in order to offer oppor-
tunities for our employees to grow and develop, providing
they have the professional profile defined for the vacancy in
question.
Ensuring that new recruits receive a Welcome Programme
with a training itinerary that favours rapid integration into
the position and the company. In the 2021 business year
the programme opens with on boarding on Campus with
this in mind.
In accordance with the FCC Group’s principles and val-
ues, there should be promotion of young people’s access
to their first job through programmes and other agree-
ments. Preference should also be given to groups at risk
of exclusion and those with different capabilities. Training
programmes for new talent developed by the company’s
different business lines are also of special interest. These
include:
– The III International Programme for Young Talent in the
Construction area with training aimed at fostering the de-
velopment of recent graduates to enable easy coverage
of the positions in the company’s international projects.
2020 saw the participation of 8 young talents.
– Collaboration agreement with the EOI (School of Indus-
trial Organisation) signed by Aqualia in 2016. In 2020 the
company recruited 3 people as interns in the Engineering
and Water Master course.
– As part of its ongoing commitment to young talent, in
2020 FCC participated in SONDERSLAND, the largest
meeting of young talent in the world.
Guaranteeing absolute confidentiality of the process for all
candidates and respect for and observance of data protec-
tion regulations at all times.
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New ways of learning
The data with regard to hours of training in Spain by functional
level and business area are as follows:
Directors and
Managers
Supervisors
Technicians
Clerical Staff
Sundry trades
Total
National
Environmental Services
Water Management
Construction
Cement
Central Services
5,686
4,890
1,944
339
2,077
Subtotal for Spain
14,936
International
Environmental Services
Water Management
Construction
Cement
946
2,246
International Subtotal
3,192
32,828
17,035
11,588
833
1,284
63,568
11,216
2,949
524
14,689
33,064
9,750
36,004
1,943
6,439
87,200
12,399
16,734
1,521
646
31,301
Total
18,128
78,257
118,501
18,364
132,096
222,038
6,386
4,016
674
2,516
9,890
26,522
2,264
53
47,951
80,074
6,054
12,369
31,955
170,826
368,485
7,788
3,237
741
212
11,978
43,933
106,222
1,639
937
36
138,571
23,856
6,147
1,418
108,833
169,992
279,659
538,477
One of the essential features of global talent management is the
promotion of training and professional development, which in
the FCC Group is undertaken in accordance with the following
inspirational principles:
The implementation of training programmes and plans
adapted to the different groups and that favour profession-
al development for good performance of the job position.
Combining the use of different methodologies for making
the best use of time and scope (online, face-to-face, virtual
face-to-face and blended learning).
FCC is at the forefront in the most advanced training man-
agement tools. An example of the importance of online
training is CAMPUS, the FCC University, a challenge that
the company has been facing for a number of years and
that has been successfully met. Campus consists of sever-
al schools, and due to their transversal nature, the following
deserve special mention:
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FCC maintains its commitment to
the Diversity Charter in Spain, in
recognition of its equality policies,
its commitement to social inclusion
and to becoming a diverse and
socially responsible company
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Diversity and equality
Experiencing diversity first-hand
FCC is projected as a Group that is committed to diversity, with
services provided by a total of 59,747 workers of 120 nation-
alities.
To promote this and make it our driving force, our work is based
on three essential pillars:
Gender: The aim is to achieve the best gender balance and
possibilities for professional development in the Group’s
different departments and roles, with powerful training pro-
grammes in female leadership, and participation in external
initiatives.
Personnel with disabilities: a prominent feature is the
Group’s deep awareness for including people with disabili-
ties, with a number of inclusion programmes for this group
to increase the variety of talents in our teams.
Generational: there is promotion of inclusion and cooper-
ation between the different generations that coexist in each
Company, with consolidation of the subsequent incorpora-
tion of young talent into the Group.
In 2020, a number of pilot schemes were implemented for
collective Mentoring and Coaching programmes to meet
the challenge of team management and the integration of
different generations.
Special mention should also go to the transversal training
given in the following subjects, in line with our culture for
values, innovation and excellence:
Diversity and
DisABILITY
1,505
people
Office 365
tools
3,283
people
Comunication
in remote work
1,062
people
Anti-corruption
3,177
people
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570
Gender equality
The principle of equal opportunities is for FCC an inalienable
commitment to act included in the Code of Ethics and Conduct
and in each of the Company’s Equality Plans affecting practi-
cally 100% of the workforce in Spain, regardless of whether or
not there is a legal obligation. However, special mention should
go to the existence of an Equality Plan in force in the United
Kingdom.
In 2020, actions in the field of equality included the signing by
FCC Construcción of the III Equality Plan, extending the ongo-
ing commitment to equality demonstrated by the more than 12
years which have elapsed since the First Plan signed.
Finally, four of the Group’s main companies have been recog-
nised and periodically renew the Seal of Excellence in Equality,
awarded to the company by the Ministry with the portfolio for
Equality.
Promotion of women to
management positions
As a result of the FCC Group’s firm convic-
tion in favour of the promotion of women, at
the end of 2020 the percentage of women
occupying management positions reached
15.80% of the total number of positions of
these characteristics.
The FCC Group develops and participates
in training programmes aimed at creating an
enriching work environment, free from dis-
crimination and favouring diversity, with spe-
cial mention for the following two training and
development initiatives for women in manage-
ment positions.
Specifically, in 2020 FCC celebrated Inter-
national Women’s Day with a firm commit-
ment to gender-free talent, to diversity and to
equality within the FCC Group.
Iniciatives that encourage
collaboration and the
development of female talent
Development programme
Designed for women with high potential
at the “Escuela de Organización
Industrial” (EOI).
In 2020, 9 women participated, bringing
the total to 76 women from the different
business since 2015.
Proyect promociona
Specialises in preparing women to
access senior management positions and
boards of directors (CEOE-ESADE).
In 2020, 2 women participated anda total
of 16 since 2014.
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Non-discrimination and the prevention
of harassment
Furthermore, as a complement to the whistleblower channel
included in the Code of Ethics and Conduct, the Group has a
Protocol for the Prevention and Eradication of Harassment that
was reviewed and approved in 2020, and aims to prevent, re-
solve and penalise cases of workplace, sexual or gender-based
harassment, thus reflecting the FCC Group’s commitment to
non-toleration of the abuse of authority or any type of harass-
ment.
The protocol is binding and includes a declaration of principles,
the definition of harassment, the procedure for action against
harassment, a guarantee of confidentiality throughout the pro-
cess and the prohibition of retaliation.
In 2020, training was provided through Campus and involved a
total of 6,013 workers in Spain.
Inclusion and non-discrimination
Commitment against gender violence
Disability
The FCC Group is especially committed to combatting gender
violence in all its dimensions, based on two essential principles
of action: zero tolerance of gender violence and support for the
social and professional integration of its victims.
To achieve this, the company closely collaborates with the net-
work of “Companies for a Society Free of Gender Violence” in
the dissemination and promotion of awareness, as well as sup-
porting job insertion for women suffering from its after-effects.
FCC’s commitment to diversity and workplace inclusion for this
group involves a number of actions and management strate-
gies, including the following:
It also collaborates with a number of foundations and entities to
promote labour insertion and the integration of victims, such as
the Incorpora Foundation (La Caixa), the Adecco Foundation,
the Once Foundation and the Red Cross.
Direct contracting
and through
specialised
entities
Promoting
purchases and
contracting of
servies with Special
Employment
Centres
This year FCC joined the campaign promoted by the Ministry
of Equality against gender violence in the face of the COVID-19
crisis: “We are with you, we will put a stop to gender violence
together”, is an inescapable commitment to support actions
aimed at raising awareness about the need to eradicate these
acts of violence and to alleviate the impact they have on the
victims.
FCC also participated in one of the conferences organised by
the Once Foundation Programme, specifically, the “Women On
VG mode” Project for women with disabilities who are victims
of gender violence.
As it does every year on 25 November, the FCC Group made
an appeal both inside and outside the company by launching
information and awareness actions in the work centres to re-
mind everyone that the company remains firmly in favour of the
eradication of this type of violence.
Supporting
education and
entrepreneurship
programmes
Working of the
accesibility of our
buildings, adapting
their spaces and
making them suitable
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The high number of workers with recognised disabilities in the
FCC Group, amounting to 1,440 in Spain, 160 more than in
the 2019 business year, shows that there has been continuous
growth over the last 3 years as can be seen in the following:
As for the rest of the countries, because the concept of disabil-
ity is not homogeneous and because there are legal restrictions
in force in some countries that prohibit employers from access-
ing such information, no data can be extrapolated.
The Group actively collaborates with specialist organisations
that assess the management of recruitment and labour support
for people with disabilities. The main organisations with which
there is collaboration in Spain are the following:
FCC is also a member of the National Advisory Council for the
Responsible Inserta Forum of the ONCE Foundation that met
this year, with the aim of drawing up an Inclusive Reconstruction
Pact, given the new social and economic challenges arising for
Companies as a result of COVID-19, which pursues sustainable
and inclusive reconstruction “leaving no one behind”.
Developments in the number of workers with disabilities in Spain
INSERTA PROGRAMME
INCORPORA FOUND
FAMILY PLAN
DOWN SYNDROME
RECYCLE LIVES
1,135
1,280
1,440
2018
2019
2020
ONCE FOUNDATION
LA CAIXA
ADECCO
FOUNDATION
ECOEMBES
FCC supports a number
of projects and
promotes social and
labour inclusion through
workshops, training
courses and other
actions such as
awareness campaigns.
Environmental services
maintain a collaboration
agreement with
Incorpora for the
insertion of those
groups with the
greatest difficulties in
labour insertion.
An action programme
with a presence in
Construcción, CPV and
Aqualia, focused on
increasing the autonomy,
integration and
subsequent insertion in
the labour market of
disabled family
members.
Aqualia has an
agreement with the
foundation for the
incorporation of
workers with intellectual
disabilities into its
workforce.
Environmental Services
have been collaborating
with the insertion
programme for people
disconnected from the
world of work (social
sustainahility).
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573
Accessibility
FCC is aware that accessibility is a key factor for the social in-
clusion of people with disabilities. Therefore, each year one of
the Company’s main challenges focuses on designing solutions
that favour the creation of a work environment free of obstacles
and barriers to guarantee the full participation and integration of
all the Group’s employees with disabilities.
FCC is working on a number of lines that are expected to mate-
rialise as a Universal Accessibility Management System and the
award of UNE 170001 certification that certifies that the com-
pany guarantees universally accessible access and services in
its buildings.
In this regard, in the 2020 business year new improvements
were made in terms of accessibility in several of the FCC fa-
cilities, as well as making workers aware of the scope of the
concept of Universal Design as a strategic factor and of the
principles on which the concept of “Design for All” is based.
With this in mind FCC participated in a training action entitled
“An introduction to universal accessibility and design for all”.
(12) Including variable remuneration, allowances, indemnity and
payments to long-term savings pension systems.
Salary system
FCC works in a wide variety of productive sectors (construc-
tion, water, cement, concessions, services, real estate) in OVER
40 countries and in general, the remuneration of its workers is
subject to the applicable collective agreements (in the case of
Spain there were over 900 collective agreements with different
scopes in 2020).
The FCC Group remunerates employees in accordance with
criteria such as sector and geographical competitiveness, inter-
nal equity and the level of responsibility.
Average salaries are shown in Annex II.
for
the management
Average salary12
team stands at
113,100.13 euros, broken down by gender as follows: (i) aver-
age salary for women: 82,970.03 euros, and (ii) average salary
for men: 118,480.51 euros.
The management team includes both senior management (re-
porting directly to the Managing Director) and those who hold
management and responsible positions within the FCC Group.
With regard to the average salary for directors, the information is
included in the Annual Remuneration Report, section C. Detail
of the individual remuneration corresponding to each of the di-
rectors published each year on the company’s website (https://
www.fcc.es/informe-anual-sobre-remuneraciones). The total
remuneration received by the 14 members of the board of di-
rectors throughout 2020 was 1,833 thousand euros.
The FCC Group is also working on and developing the neces-
sary tools to comply with the legal provisions governing the reg-
istration and auditing of remunerations, as well as the Group’s
firm commitment to equal opportunities so that they will effec-
tively comply with the principle of transparency with regard to
remuneration.
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Wage gap
FCC’s remuneration management is based on the criteria of ob-
jectivity, external competitiveness and internal equity. FCC does
not differentiate by gender, so remuneration is equitably based
on the level of contribution to the business (functional level) and
responsibility and value in each job.
In Spain, FCC has developed a salary analysis methodology
based on best practices that enables us to make a granular
identification of any possible cases of remuneration inequality
between women and men.
This year, all business areas have been included in the calcula-
tion of the wage gap: Central Services, Cement, Construction,
Water Management and Environmental Services.
In Spain, two types of wage gap, adjusted and gross, are taken
into account for calculation.
The adjusted wage gap
The adjusted wage gap is calculated by taking
into account all those aspects that compare men
and women in a similar situation. In addition to the
gender of the employees, this comparison takes
into account some of the key factors relating to
remuneration for the position (functional level,
seniority, applicable collective agreement).
Gross wage gap
Gross wage gap is calculated by obtaining the
percentage difference between the average total
salary for men and women. This data omits key
factors when making the comparison, such as
functional level, seniority and the applicable col-
lective agreement.
In any case, it should be pointed out that the percentage differ-
ence does not imply the existence of gender-based remunera-
tion discrimination, since factors that fall outside the Company’s
scope of action and that contribute significantly to increasing
gender-based remuneration inequality may be involved, such
as the masculinisation of the majority of the sectors in which the
Group’s activity is undertaken, working conditions arising from
cases of subrogation, individual performance, economic crises,
the political situation, socio-cultural reasons, academic training,
experience in the position held, etc.
With regard to the salary gap in the rest of the countries in which
FCC operates, in most of them there is no definition nor is there
a specific concept of the gap. However, in the United Kingdom
there is consolidated legislation regarding the wage gap, and
the two companies in the Environment area have a wage gap of
9.96% (in favour of women) and 0.26% respectively.
2020
adjusted
wage gap
5.85%
2020
gross
wage gap
18.62%
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575
Work
organisation
The organisation of working time in the different companies in
the FCC Group responds to the productive requirements for
each activity, in accordance with the standards and rules appli-
cable in each sector and location.
To guarantee the well-being of its employees, the FCC Group
considers that the proper management of work organisation is
essential and a number of initiatives have been taken to achieve
this aim. Of the different actions taken, the Group makes spe-
cial mention of work-life balance, flexibility, co-responsibility and
disconnection, all adapted to the different organisational and
productive realities and requirements for each centre, function
and activity. Here are some of them:
In Aqualia, the certification awarded by AENOR for a Family Re-
sponsible Company was maintained for continuing to promote
measures with the aim of achieving balance between the per-
sonal and professional life of its employees.
Digital disconnection
In 2019, FCC proceeded to approve the Policy for the Use of
Technological Means applicable throughout the Group, and
continues to implement it in the international area. It involves
the recognition and guarantee of working people’s right to dig-
ital disconnection, adapted to the nature and characteristics of
each job position.
In 2020, a training action was undertaken to publicise the rules
regarding the use of technological means and the responsible
use of the equipment that the company makes available to its
employees. This training was completed by 8,781 employees
throughout the Group.
The Group also took training and awareness-raising actions
on the reasonable use of technological tools, promoting digital
disconnection to achieve better organisation of working time in
order to respect personal and family life. This training was un-
dertaken by 1,430 employees throughout the Group.
Of the different actions taken, the
Group makes special mention of work-life
balance, flexibility, co-responsibility
and disconnection
Flexible working
arrangements
Extension in
reserving the
position: leave
of absence
Flexibility
in taking
holidays
WORK-LIFE
BALANCE
Complement
to paternity/
maternity leave
Improved birth,
sickness and
death leave
Continuous
working day,
summer periods
and Fridays
Baby nursing
leave, reduction
of working
hours and leave
of absence
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576
Social relationships
FCC understands that social dialogue and direct communi-
cation with its workers, their legal representatives, unions and
other social agents are required to create a bond with its em-
ployees, for the purpose of encouraging new agreements to
be signed as a result of collective bargaining, and that different
processes of a collective nature need to be established that
involve transparency, the creation of follow-up committees and
providing employees and their representatives with all the nec-
essary information.
In 2020, the areas had a presence at a large number of bar-
gaining tables for collective and work centre agreements, and
they actively participated in collective bargaining for the sector.
The company is also a member of the international Construc-
tion and Wood Workers (BWI) collective that covers all civil-en-
gineering works in the sectors in which it operates.
As for the percentage of workers covered by collective agree-
ments, this varies depending on applicable legislation, the exist-
ence of collective agreements and even worker representation.
In any case a commitment was made to comply with all appli-
cable legislation and/or collective regulations.
The percentage of workers covered by Collective Bargaining
Agreements in the different countries where the FCC Group has
a presence is broken down in Annex II.
More than 800
collective bargaining
agreements in Spain
Participation in sector
bargaining tables in
all areas and in
Cement work centres
Fluid dialog with
trade unions and
worker
Special mention should be made of occupational health
and safety in collective agreements
In a great number of collective agreements that are applicable
in Spain, there is special mention for occupational health and
safety in its broadest sense.
Specific preventive measures such as personal protective
equipment for use in emergency situations and work in-
volving special risks.
The following are the clauses most frequently included in col-
lective agreements signed with regard to occupational health
and safety:
Communication and dialogue with prevention services.
Health surveillance aspects: regular medical check-ups.
Existence of prevention plans: risk assessment and techni-
cal-preventive action.
Allusions to continuous improvement in the general condi-
tions in work centres.
Rules regarding workers’ rights: participation, training and
information.
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577
Safety health
and well-being
Strategy and Culture
FCC has established a strategy with regard to the safety, health
and well-being of its workforce and other stakeholders, such
as contractors and suppliers, based on its policy in this field
approved in 2019 by the Board of Directors.
Strengthening the preventive culture and the promotion of health
is one of the company’s main lines of action. This objective is
supported by a number of factors including the process of con-
tinuous improvement in the health and safety management sys-
tems, certification in all areas and countries in accordance with
recognised international standards such as ISO 45001. This in-
volves the certified coverage of over 95% of the total workforce.
Real integration of risk
prevention in all processes
ornd with all stakeholders.
Adaptation, follow-up and
certification of standards.
Promotion of health and healthy
work environments as an
individual and collective value,
from both a physical and an
emotional perspective.
Control and guarantee
of legal compliance and
with internal regulations.
Maintenance of a
continuous improvement
cycle based on participation.
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Developments in the main indexes
Developments in Accident Rate Indexes
Throughout 2020, there were 1,776 work accidents involving
sick leave in the FCC Group. In Spain, a total of 1,495 work
accidents with sick leave were registered, of which 1,113 were
men and 246 women.
A significant fact is that in 2020 the global accident frequency
index fell by more than 28%, standing at 17.07. The severity
index also decreased by 26%, standing at 0.67. With the aim
of meeting the FCC Group’s “0 accidents” objective, each busi-
ness area establishes annual targets for reducing accident rates
at a global level and by geographical area.
Details of developments in the main accident13 rate and absen-
teeism rates are as follows:
Table of Contents
Frequency
Severity
Accident Rate Indexes by geographical location
2019
2020
17.07
0.67
2018
24.08
0.82
2019
23.98
0.91
2020
Scope
Spain
Global
Acc. Freq.
Severity
Acc. Freq.
Severity
32.06
23.98
1.27
0.91
22.93
17.07
0.97
0.67
Accident Rate Indexes by gender in Spain
2019
2020
Gender
Acc. Freq.
Severity
Incidence
Acc. Freq.
Severity
Incidence
Women
Men
25.58
33.52
0.74
0.9
3.5
4.94
16.57
25.97
0.84
1
Indexes for absenteeism, occupational accidents and common illness
Type
Work Accident
Comm. Illness
Fatal occupational accidents
Type
FCC
Subcontractor
Professional occupational illness by gender
Gender
Women
Men
(13) The frequency and severity rates are calculated on 1,000,000
and 1,000 hours worked respectively.
2.26
3.76
2020
0.44
4.05
2018
0.54
7
2019
0.71
5.63
2018
2019
2020
4
4
0
2
3
1
2019
2020
9
3
5
6
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579
Healthy Living constitues our brand, our motto
and our commitment to personal, collective and
individual well-being.
Within the framework og the Be Aqualia
project, Aqualia has launched an initiative
linked to psychosocial risk with the provision
of an emotional health self-assessment
programme and free psychosocial assistance.
Healthy Living Project
Participation and influence
Throughout 2020 in the Environment area, the Healthy Com-
pany Management System (SIGES in Spanish) migrated to
the new Healthy Organisation Management System (SIGOS
in Spanish), and were awarded the corresponding certification
from AENOR. Management undertaken included numerous
programmes on a healthy lifestyle, alcoholism, the fight against
hypertension, healthy eating and the fight against a sedentary
lifestyle, heart-healthy habits, physical activity, giving up smok-
ing and emotional well-being.
In 2020 in the Cement area, health promotion actions contin-
ued with the development of specific campaigns on sleep hab-
its, emotionally coping with COVID-19 and road safety, the latter
focused on the consumption of alcohol, weather conditions and
cycling.
As in previous years, FCC Construcción prepared and pub-
lished a document in 2020 with the best health and safety prac-
tices specific to the construction activity, as well as others of a
general nature, relating to measures against COVID-19.
In Aqualia a specific channel was launched for Health and
Well-Being that will serve as a channel of communication in
this field with all workers throughout the company. In 2020, the
following options were implemented: A system for the instan-
taneous reporting of incidents or dangers, recommendations
against COVID-19 and videos with warm-up and stretching ex-
ercises depending on the job position.
FCC’s different business areas have participatory bodies that
comply with legal requirements at local level, such as the Health
and Safety Committees whose function is to channel consulta-
tions and the collaboration of workers in this field.
The company has several communication channels where
workers can report dangers or situations where there is occu-
pational hazard. This can also be done through their represent-
atives in this field and there is also a whistleblower channel that
can be anonymous if the person affected so wishes. It consists
of an ad hoc form that can be filled in online and sent by e-mail
or by post.
Externally, FCC Construcción is a member of the Seopan, and
Aecom associations and organisations such as CNSST, CNC,
AEC, AENOR on the Health and Safety Committee, and is
also represented in the Spanish Association for Quality, via the
vice-presidency of the Health and Safety Committee. FCC Con-
strucción represents construction companies in Europe (FIEC)
chairing the Social Dialogue Table and is also a member of the
Encord platform, the European platform for construction com-
panies.
FCC Medio Ambiente collaborates with the National Institute for
Occupational Health and Safety (INSST in Spanish) through the
Spanish Network of Healthy Companies. It also participates in
the Spanish Association for Quality (AEC in Spanish) of which
it is a member company, with active participation in Health and
Well-Being forums and in working groups. Since 2020 it has
also been a participant in “Forética”, in the Health and Sustain-
ability Action Group.
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COVID-19
In view of developments in the situation with regard to the health
crisis in China and its initial impact on the European continent,
in the first quarter of 2020 the FCC Group set up a Crisis Com-
mittee, consisting of the company’s first executive level, to
adopt agile and effective measures in this regard. It has mainly
been responsible for:
Guiding and directing the Business Continuity Committees
set up in each area of the FCC Group.
Dictating the policies and protocols for mitigating the im-
pact caused by the COVID-19 pandemic, as well as dis-
seminating general measures for the prevention of conta-
gion and the protection of workers.
Following-up and controlling developments regarding coro-
navirus and workers in isolation as a measure to prevent
contagion.
In its worth highlighting the essential
role played by the FCC Group’s Medi-
cal Services. They have carried out an
enormous amount of work in providing
advice and support in the detection and
management of the risks derived from
the virus in orden to protect the health
of all workers. Without this, it would be
difficult to image the activity continuing
in such exceptional circumstances.
Within the abundant documentation and processes developed
to deal with the extraordinary situation resulting from the pan-
demic, there should be special mention for the action protocols
at both Corporate and Area level, and that are the focal point
for instructions, communications and the definition of the pre-
ventive measures to be adopted in this situation, always based
on the criteria established at all times by the Health Authority.
In this regard it should be taken into account that a large part
of the activity undertaken by the Group is considered to be an
essential service under the different regulations adopted, which
means that a majority of workers has remained at work provid-
ing services to citizens during the entire period of lockdown,
doing so with commitment and dedication and their profession-
alism has been publicly acknowledged by different entities.
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Following on from the above, from the point of view of the pro-
vision of services by workers, the need to activate labour meas-
ures was restricted to specific cases.
As a result of the health containment measures arising from
COVID-19, the Group launched a contingency mobility plan that
enabled working remotely.
And finally, in line with FCC’s Live Healthy strategy, and as a
consequence of the pandemic caused by COVID-19, numer-
ous technological resources were generated to provide different
initiatives in an online format in the new work contexts:
581
Training activities
and health
recommendations
for remote work
Workshops on
emotional well-being,
stress management
and mindfulness
Healthy eating
works hops
Resources and
publications on
healthy habits
Physical activity
promotion workshops
Health and safety
recommendations and
guidelines for
COVID-19, inside and
outside workplaces
Internal magazine “The
positive window” with
interesting content,
practices and advice on
health, cooking, culture,
sport, etc.
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FCC and its commitment to society
582
The FCC Group, as a provider of citizen services, works for
development and social well-being. This is included in the Code
of Ethics and Conduct under the principle of “Well-Being and
Development in Cities”. This principle serves as the basis for
collaborators in all business lines to understand and resolve the
expectations and needs of the communities in which the FCC
Group undertakes its activity. This connection with local com-
munities fosters the trust that society places in the Group and
gives the organisation a leading role in the sustainable develop-
ment of cities.
With the aim of being a key player in sustainable progress, the
FCC Group incorporates social action into its business strategy,
thus contributing to the creation of employment and wealth in
the communities in which it operates. At the same time, the
company encourages its collaborators to participate in volun-
teer activities that have a direct and positive impact on the com-
munities, generating pride of belonging and contributing social
value.
The social activity undertaken by the FCC Group with the local
community is part of a collection of initiatives whose ultimate
aim is to promote the welfare of the beneficiaries, covering two
areas of action, both internally, by means of actions aimed at
employees, as well as externally, by means of support projects
for the local community.
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Social initiatives with
employees in the FCC Group
This collection of social initiatives undertaken by the FCC Group
at an internal level has a positive social impact on employees,
improving relationships between the different teams and de-
partments and increasing their pride of belonging.
At an internal level, projects are directed towards the Group’s
own employees and are a reflection of FCC’s commitment to
its human capital via the social and labour integration of vul-
nerable groups, support for family members of employees,
respect for the environment through environmental awareness
programmes and the promotion of a spirit of solidarity with col-
laborators.
Environmental awareness
of employees
The FCC Group’s responsibility with sustainable development
and the protection of the environment is inherent in its busi-
ness model, especially with regard to environmental and water
services. However, its commitment is not based solely on mit-
igating the environmental impact arising from its activities, but
on using environmental awareness to build a culture based on
respect for the environment, with the aim of guaranteeing the
resilience of the cities of the future.
The FCC Group makes training, awareness-raising and volun-
teering actions in matters of environmental education availa-
ble to the workforce. The company also produces an internal
Group newsletter, which acts as a communication channel to
highlight the importance to employees of those environmental
projects promoted by the Group, enabling the dissemination of
good practices to each business line and making their imple-
mentation possible at a transversal level.
The company developed the FCC plan for a circular economy
within the framework of the 2020 CSR Master Plan, establish-
ing the commitment and that of its employees to the care and
protection of the environment. This Plan contains a line of edu-
cation and awareness aimed at collaborators with regard to the
circular economy, with the aim of accelerating the transition to a
new, more sustainable and profitable model and positioning the
company as a benchmark in the fight against climate change,
especially with regard to its response to water stress and the
protection of biodiversity.
It should be specially noted that Aqualia participated in the Net-
flix documentary “Brave Blue World” through All-Gas, a project
in which the company and its partners produce biofuels from
algae, thus contributing to the environmental awareness of the
type of audience than can be expected for a platform that is a
leader in audio-visual content.
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FCC collaborates with the
Melior Foundation in its
campaign to collect textbooks
and school material
For the second year in a row FCC collaborated with the
Melior Foundation in the “Not without my textbooks” sol-
idarity campaign, with the aim of collecting books and
school material amongst its collaborators for the neediest
families with school-age children.
This initiative, within the framework of the Group’s social
responsibility policy, managed to collect approximately a
thousand books for an unprecedented “back to school”
campaign affected by the COVID-19 health crisis.
Solidarity in FCC
With the aim of strengthening the commitment of its employees
to social causes and giving them an opportunity to dedicate
their time to the most vulnerable groups, the FCC Group en-
courages their participation in solidarity and volunteering activi-
ties. This is how the company promotes the progress of society,
within the framework of socially responsible commitment and
thanks to the proactivity, energy and spirit of solidarity of its
workers.
With this in mind, during the last business year, FCC employees
participated in a number of solidarity actions, thus contributing
to building a corporate citizenship culture within the Group and
supporting FCC’s mission to create social value and contribute
to the well-being of people. These actions are based on the
open social dialogue that the company maintains with public
and private institutions, social entities and associations that are
part of its environment, directing efforts in the local areas clos-
est to the communities in which it operates.
FCC Environment CEE in Poland, supported by the social voca-
tion of its employees, collaborated in solidarity actions, involv-
ing its teams in the #gaszynchallenge campaign, to contribute
to the well-being of hospitalised children through donations to
foundations and through entertaining children’s and collabora-
tive games.
Last but not least, the campaign once again deserves special
mention, together with the Pan y Peces Foundation under the
slogan ‘Give away kilos of generosity’. Thanks to the initiative
and generosity of FCC employees, the solidarity campaign col-
lected personal hygiene products, non-perishable food, Christ-
mas sweets and toys at Christmas time for the most vulnerable
families.
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FCC Group social initiatives
within the community
Actions within in the community enable an assessment of the
FCC Group’s social and environmental impact, to provide ac-
cess to basic services and promote education. They have a
direct impact on social progress and an improvement in the
quality of life of citizens.
The FCC Group makes its commitment to local communities
a reality by undertaking projects based on 4 social axes that
extend right across the company:
Integration of vulnerable groups.
Social inclusion and access to services.
Value creation in the communities.
Assessment of the social and environmental impact of op-
erations.
Cooperation in education and environmental awareness.
ACTIONS IN THE COMMUNITY
Integration of
vulnerable
groups, social inclusion
and access to
essential services
Value creabon
in the
communities
Assessment of
the social and
environmental impact
of operations
Coopration in
education and
Environmental
Awareness
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Integration of vulnerable groups
In 2008, the FCC Group signed a collaboration agreement with
the Adecco Foundation with the aim of promoting the social
and labour integration of people with disabilities. As a result of
this, each year family members of company employees with
disabilities can access leisure activities, training, job orientation
actions and employment itineraries to enable their future incor-
poration into the professional world. With this in mind, work is
being done on the development of skills and social attitudes,
as well as on taking part in leisure activities to stimulate their
cognitive, physical and emotional development.
In line with labour integration, in 2010 the ONCE Foundation
and the FCC Group signed the Inserta Agreement for the first
time, with the aim of filling new job positions in the company by
hiring people with disabilities. This collaboration agreement was
renewed and this has led a total of 425 people being contract-
ed since the beginning of the collaboration. The FCC Group
also continues to be committed to the employment of young
people (under 30 years of age) with disabilities, maintaining col-
laboration with the “Never Give Up Plan”, and is a member of
the Socially Responsible Public Contracting Forum (Forum with
R). FCC is currently a partner in the ONCE Foundation “Inserta
Responsable” Forum, as a member of the National Advisory
Council.
FCC Group’s commitment to the social and labour integration
of different vulnerable groups is clearly demonstrated in the dif-
ferent projects launched by the different business lines.
A total of 252 people with disabilities were recruited in FCC Me-
dio Ambiente Iberia in the 2020 business year and there were a
total of 204 new recruits via the Incorpora-La Caixa Foundation.
At the national level, the Environmental Services business col-
laborated with a number of foundations and non-profit organi-
sations, with the aim of promoting diversity, social inclusion and
improving the quality of life of groups at risk of exclusion.
Aqualia was responsible for organising Diversity Week, taking
a number of initiatives under the slogan #PorLaInclusiónJuga-
mosTodos (WeAreAllPlayingForInclusion), with the aim of rais-
ing awareness and involving all employees to help improve the
quality of life of these groups.
At FCC Construcción the commitment to the strategy of di-
versity and inclusion is clearly demonstrated in the collaboration
with Adecco Foundation’s “La Diversidad Suma” (A Plus for Di-
versity) initiative, by raising awareness among professionals in
this area, and integrating people with disabilities into the com-
pany.
Social inclusion and access to services
The FCC Group’s business model and the activities favour ac-
cess to essential services, such as electricity, drinking water
and sanitation, enabling the economic and social development
of the communities in which it operates.
Aqualia provides a vital service for communities by guarantee-
ing universal and equitable accessibility to a resource as essen-
tial as water. With the emergence of the health crisis resulting
from COVID-19, Aqualia focussed its efforts on continuing to
provide services relating to the management of the end-to-end
water cycle, as well as on continuing to maintain its social initi-
atives with people at risk of social exclusion to make sure that
nobody is left behind.
The activities of the Construction area are contributing to the
sustainable development of the communities in which it oper-
ates, through improved access to essential services and the
construction of water infrastructures, buildings, and communi-
cation routes.
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Value creation in the communities
The services and infrastructures provided by the FCC Group
contribute to the creation of value in the communities in which
it operates and have a positive impact on their socio-economic
development. As a result of the contracting processes for local
suppliers and subcontractors, the FCC Group also contributes
to the creation of jobs, growth and prosperity in its environment.
In 2020, FCC Medio Ambiente Iberia made a collaboration of
2.7 million euros to the development and implementation of so-
cial and environmental initiatives. With regard to suppliers, the
company also made sure that they were mostly local or from
municipalities near to where the company operates.
In Austria, FCC Environmental Services developed a pilot pro-
ject at its headquarters to promote the use of regional products.
In this way, the company reduces the environmental impact of
the products for daily use, while contributing to the develop-
ment of local communities, promoting the indirect creation of
jobs.
A prominent feature of the company’s commitment to society
is the over one hundred cultural, sporting and environmental
collaboration events that reflect the company’s efforts to be rec-
ognised as an agent for change and involvement in the territory
by establishing a relationship with citizens to create a more eq-
uitable society.
The Construction business has integrated the SDGs into its
activity and into its value creation model in order to promote the
socio-economic growth of society. The main contribution of this
business to progress in the communities is through the creation
of direct and indirect employment. With this in mind, the Con-
struction business prioritises the contracting of local suppliers,
which account for more than 90% of the contracts made.
To contribute to community development, Cementos Portland
Valderrivas tries to guarantee equal opportunities in its suppli-
er selection processes, based on an objective bidding process
and the transparency of the process.
Assessment of the social and
environmental impact of operations
The FCC Group is aware that its activities generate an impact
on the environment and on the communities in which it oper-
ates. For this reason, the company is working to try to foster
the positive impacts, while reducing the effect of the possible
negative impacts that may arise.
Specifically in FCC Construcción, a series of metrics have been
established to assess the social and environmental sustainability
of projects at the bidding stage. These metrics assess applica-
ble aspects in projects with regard to sustainability, where early
identification enables the risk to be defined as high, average or
minimal. Works which may involve local communities being af-
fected by the development of a project are also identified. In this
regard, the main impacts on the communities involve expro-
priation, the occupation of agricultural land, effluent discharge
into water channels, noise generation, dust emissions, vibra-
tion, damage to flora and fauna, relocation of local residents or
disruption to local tourist activity.
Once this study has been made, taking into account both the
assessment metrics and any possible impact on the environ-
ment, FCC Construcción implements different actions and
plans to improve the social conditions of the local communities
on which an impact may be caused, taking into account the
specific features of each project and geographical area.
FCC Communities Foundation,
in the United Kingdom
The FCC Communities Foundation is a non-profit organi-
sation founded in 1997, whose aim is to allocate funds to
projects. FCC Environment UK uses this organisation to
make contributions to projects with a social impact, related
to biodiversity and in the area of heritage protection, thus
contributing to community development.
In the 2020 business year, the entity managed to donate
more than 6.1 million pounds to a total of 134 projects un-
dertaken in the United Kingdom. The FCC Communities
Foundation is currently contributing and channelling funds
to two programmes:
FCC Community Action Fund, for financing projects in
England.
FCC Scottish Action Plan, for requests from Scotland.
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Cooperation in education
and environmental awareness
The FCC Group is working together with different educational
institutions, specifically in the field of cooperation, to promote
issues such as environmental protection and the social, cultural
and sustainable development of cities.
One of FCC Construcción’s main lines of contribution to the
community is cooperation in education through partnerships
with educational institutions, as well as by participating in edu-
cational events and one-off forums.
Within the Environment area, several countries have undertak-
en environmental education programmes, including Slovakia,
with the participation of FCC Environment CEE in “Smietko”,
an educational project aimed at collecting paper and education
in environmental affairs, which saw the participation of over 50
primary schools from a number of the country’s regions, and
in which the company collaborated with school and municipal
representatives.
In this regard, Aqualia has undertaken a number of initiatives in
the field of education and environmental awareness, highlight-
ing a campaign to disseminate its educational platforms with
the dual objective of raising awareness among children of the
value of water and helping parents to reconcile remote working
in full confinement. Visits to the aqualiaeduca.com online chan-
nel increased by over 112%, which goes to verify its consolida-
tion as a source of educational consultation not only in Spain,
but also internationally.
Aqualia undertook environmental awareness actions such as
the delivery of 215,000 comics to children in 800 education-
al centres, with the aim of raising children’s awareness of the
end-to-end water cycle and the SDGs. In 2020 the company
also launched an educational video entitled “The Sustainable
Development Goals as they have never been explained to you”,
which aimed to bring the SDGs closer to all audiences, and
which had nearly 85,000 views.
Aqualia, a main player in
the StepbyWater alliance
Aqualia participates in the StepbyWater alliance
supported by the Government of Spain, the
Spanish Federation of Municipalities and Prov-
inces (FEMP in Spanish) and other private organ-
isations with the aim of addressing responsible
water management and thus collaborating in
compliance with SDG 6 (Clean water and sani-
tation). With this in mind, a number of suprana-
tional initiatives have been promoted, such as the
Decade of Action for Water, and Climate Summit
Agreements, with the aim of positioning itself as
a leading player in achieving sustainable water
management.
Another line of action involves establishing the
participation of the organisations involved in
StepbyWater in European innovation projects,
sharing their knowledge and experience with re-
gard to water management.
Towards a more sustainable
waste management model in
the United Kingdom
FCC Environment UK contributed to the report entitled “No
Time to Waste: Resources, recovery & the road to net-zero
“, which highlights the importance and benefits of obtain-
ing energy from waste. According to this report, allocating
the 27.5 million tons of non-recyclable waste to the pro-
duction of green energy is better both for the economy and
for the environment than current methods, which involve
exporting this waste or allocating it to landfills. This has led
to a proposal for a more sustainable waste management
system.
FCC Environment UK is one of the largest producers of
energy from waste in the United Kingdom, it considers that
this type of practice has the potential to supply hundreds
of thousands of homes and businesses in this country.
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The FCC Group’s socio-economic
contribution to sustainable development
The tertiary sector, NGOs and non-profit associations and or-
ganisations now require more than ever the joint collaboration
of society, companies, administrations and the public sector.
They should create alliances and invest their time and efforts in
making this type of entity more resilient as they are an essential
part of making the world more just and equitable for all.
In this context, the FCC Group is aware of the many social and
economic demands that exist in the societies in which it op-
erates, mainly those made by non-profit entities, which work
every day for the well-being of those who are most vulnera-
ble. In addition to promoting sustainable development through
its own activities arising in the different lines of business, the
company also makes monetary contributions to these types of
social entities for them to be able to meet the socio-econom-
ic requirements of the most disadvantaged communities and
groups.
For this purpose, in the last business year and taking the conse-
quences of the pandemic at a social level into account, the FCC
Group allocated a total amount of 4 million euros by means of
contributions and donations to non-profit organisations, foun-
dations and associations. At the same time in the United King-
dom, more than 6.1 million pounds were donated via the FCC
Communities Foundation in 2020.
The following is a breakdown of the contributions made:
• Spanish Association for Desalination and Re-use (AEDyR).
• Spanish Urban Water Supply Services Association (AGA).
• Spanish Capital Goods Manufacturers Association (SERC-
The FCC Group's contribution in 2020
OBE).
•
Infrastructure Construction and Concessionary Company
Association (SEOPAN).
1,025,289 Donations to
• National Association of Water and Sanitation Utilities in Mex-
non-profit
organisations
and foundations
ico (ANEAS).
• Water Environment Federation (WEF).
1,384,406 Sponsorships
• CEMBUREAU European Association of Cement Manufac-
1,443,666 Contributions
to associations
154,843 Other contributions
These contributions reinforce the Group’s commitment to the
2030 Agenda and enable the company to actively contribute
to the achieving the SDGs related to economic progress, the
reduction of inequalities and the social development of commu-
nities in the present and in the future.
The main associations in which the FCC Group participates, na-
tionally and internationally, are the following:
turers.
• ANEFHOP National Association of Prepared Concrete Man-
ufacturers.
• CIMENT CATALÁ Cement manufacturers Association in
Catalonia.
• Spanish Institute of Cement and its Applications.
• GREMI D’ARIDS Association of Catalan companies dedi-
cated to the extraction and treatment of aggregates.
• CEMA State labour foundation for cement and the environ-
ment.
• FLACEMA Andalusian Cement and Environment Labour
Foundation.
• Association of Public Cleaning Companies (ASELIP).
• OFICEMEN Spanish Cement Manufacturers Association.
• Spanish Association of Parks and Gardens Companies
• European Construction Industry Federation.
(ASEJA).
• Spanish Association of Waste Management Contractors
(ASEGRE).
•
International association with Aquafed.
• Spanish Technological Platform for Water Supply and Sani-
tation Association (AEAS).
• Spanish Quality Association (AEC in Spanish).
• AECOM Association of Infrastructure Construction and
Concessionary Companies.
• National Construction Confederation (CNC.)
• European Construction Technology Platform (ECTP).
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FCC’s commitment to its clients and suppliers
590
FCC’S commitment to its clients
The FCC Group’s clients are the focus of its activity. This com-
mitment, reflected in the Code of Ethics and Conduct and
shared by all the organisation’s personnel, involves the FCC
Group striving to get to know the client, providing products
and services in accordance with their needs, and making their
satisfaction a priority. In this way, the Group aims to maintain
long-lasting relationships, based on mutual trust, honesty,
professional responsibility and value contribution. This is the
perspective through which the FCC Group aims to achieve ex-
cellence in service, seeking to offer the highest quality, and con-
tributing differential value compared with competitors.
Due to the wide variety of goods and services offered, the type
of clients is different for each of the FCC Group’s business lines.
In FCC Environmental Services, clients are public and
private entities that entrust the company with services in-
cluding the management of urban and building cleaning,
the maintenance of sewage networks and waste manage-
ment.
Aqualia manages the end-to-end water cycle, so its clients
vary depending on the service offered, the company’s main
activity focussing on the supply of clean water for all users.
FCC Construcción is responsible for the execution of civil
engineering and building works, which means that it has a
wide range of clients, both in the public and private sectors.
The business of Cementos Portland Valderrivas involves
the manufacture and sale of cement and its derivatives, so
there is a direct relationship with the client. For this reason,
special emphasis is placed on commercial and sales work,
as well as ensuring that the product that goes on the mar-
ket is of the highest quality and respects all safety stand-
ards.
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Client and user health and safety
The commitments made by the Environment area with re-
gard to its clients are based on guaranteeing the provision of
the contracted services in accordance with the commitments
made, those established by the organisation and any legal re-
quirements that affect the activities undertaken. By complying
regulations, the safety and health of end users is guaranteed,
ensuring that services are provided in the safest way possible.
It should also be noted that FCC Environment UK has software
that enables the recording, investigation and resolution of inci-
dents relating to the health and safety of clients and users.
Aqualia, the health and safety of consumers is guaranteed
through a comprehensive quality control system for treated wa-
ter. In 2020, a total of 1,688,087 verifications were made in the
European countries where Aqualia is active and non-fulfilment
was detected in 1,196 cases. The company also has eight lab-
oratories to assess water quality, within the Aqualia LAB net-
work, having been granted accreditation in 2020 in accordance
with the UNE-EN ISO/IEC 17025 standard for the Badajoz lab-
oratory to conduct tests in the environmental field.
Following FCC Construcción’s policy, the companies in this
business pay special attention to customer relationship man-
agement, while at the same time having the utmost respect and
consideration for the affected communities, indigenous peoples
and cultural heritage. In all cases the safety and health of users
is guaranteed through compliance with the legal requirements
in the construction area that are applicable to each element,
whether in the construction or maintenance phase. Both FCC
Construcción and FCC Industrial have a certified Information
Security Management System based on the ISO 27001 stand-
ard whose purpose is to guarantee the availability, confidential-
ity and integrity of information in the exercise of their activities.
In undertaking its activities, Cementos Portland Valderrivas
has management systems that ensure the quality of its prod-
ucts, guaranteeing the safety and health of end-clients and
complying with all legal requirements. The company evaluates
100% of the impacts on the health and safety of its products
and services in accordance with the legislation in each country
for the purpose of making improvements throughout their life
cycle. All products are also labelled in accordance with Europe-
an regulations, and are registered with the National Institute of
Toxicology and Forensic Sciences.
Management of Claims and Complaints
In the management of claims and complaints, each of the
Group’s businesses has specific tools and procedures to suita-
bly handle correspondence with clients and users.
FCC Medio Ambiente Iberia’s integrated management system
includes a procedure that establishes the methodology for the
management of claims and complaints. These are registered
and processed via the VISIÓN computer programme. In this re-
gard, FCC Medio Ambiente Iberia received about 1,700 claims
and complaints from clients in 2020, of which over 90% were
resolved.
FCC Environmental Services has a reporting system that re-
cords complaints from clients and assigns those who will be
responsible for their resolution.
In FCC Environment CEE, the registration and management of
591
claims and complaints is undertaken at country level, establish-
ing specific procedures for each. At a consolidated level, in FCC
Environment CEE, the resolution and management of claims in
the Group has risen to a total of 7,871.
In the case of Aqualia, throughout 2020 it received at a national
and international level (Czech Republic, Italy, France, Colombia
and Portugal) 16,180 claims and complaints from clients and
users.
In the Construction area they have a management system to
attend to requests received. This tool enables actions to be
monitored, improvement plans to be identified and follow-up
verified. Throughout 2020, the company received a total of 105
claims and complaints, 80% of which had been resolved by the
end of the business year.
ln Cement, the activity in Spain and Tunisia is certified under
the ISO 9001 Standard, with specific requirements for handling
these claims and complaints. The company has a consultation
procedure through which a total of 15 claims and complaints
were received during the last business year, of which 100%
were managed and 60% resolved. In this regard, at a national
level, the company’s aim is to receive less than one claim or
complaint for every 50,000 tons sold.
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Customer service and satisfaction
Clients have been the basis of the Group’s success throughout
its 120-year history. The Group’s journey in all these years re-
flects the importance of understanding the needs of clients and
listening to their concerns in order to be able to adapt quickly
and appropriately to a changing environment.
Each business has different tools for customer service, as well
as for measuring satisfaction so as to be able to assess how we
are perceived by those we serve.
This is especially the case for Aqualia, a Group activity that,
given the importance and heterogeneity of its clients and users,
seeks to offer a hands-on, personalised customer service that
enables it to provide solutions quickly, simply and effectively.
Aqualia has a number of customer-service channels, including:
Customer service by telephone. In 2020 the Customer
Service Centre received 1,240,216 telephone calls.
Virtual office, aqualiacontact. In 2020, 163,814 interac-
tions were managed, including 32.34% for the modification
of data, 23.77% for electronic invoicing and 19.85% for
payment via bank card.
Application for mobile devices. In 2020 a total of 62,562
interactions were managed via the APP made available to
our clients, with 20.99% involving the modification of data
and 64.08% payment via bank card.
Twitter @aqualiacontact. Messages sent by users are
handled and managed through the @aqualiacontact ac-
count. SMS messages are also managed for the notifica-
tion of invoices with incidents and warnings regarding net-
work breakdowns.
It should be noted that Aqualia made 6,287 surveys of aquali-
acontact user clients in 2020 obtaining an index of satisfaction
that was 96.80% positive.
The company also received 3,325 replies to a survey sent spe-
cifically to end and institutional clients, obtaining a rating be-
tween good and excellent in 82% of the surveys.
The Environment area in Spain and Portugal sent out a total
of 854 surveys throughout the business year. Of the surveys
received, 81% of clients rated the company’s work as satisfac-
tory or very satisfactory. The industrial waste activity in the area
made a client satisfaction study by sending out a Satisfaction
Questionnaire and received a very favourable average score of
8.6 out of 10.
In most of the countries where FCC Environment CEE operates,
client satisfaction surveys were also made in 2020:
In Austria, the company obtained an increase of 5 percent-
age points in average client satisfaction, after sending out
2,886 surveys.
Of the 149 surveys received in Slovakia, almost 90%
showed “very good” or “excellent” results.
With regard to Hungary, due to the health crisis, in this busi-
ness year only a small number of voluntary opinions were
collected and analysed.
Due to the epidemic, Poland did not receive any satisfac-
tion surveys this year as they are usually handed out in cus-
tomer service offices.
In the Czech Republic, 143 surveys were received and the
result was “excellent” in 97.5% of the cases.
592
In the Construction business there is a position called the cli-
ent’s interlocutor, who is responsible for dealing with any sug-
gestions received, processing any issues raised, managing col-
laboration, and notifying any actions to be taken.
Final surveys of the works are also made, in which clients evalu-
ate the service received. Most of the clients surveyed were very
satisfied with the performance of the companies in the Con-
struction business, and confirmed that they would contract ser-
vices with them again. In this regard, a total of 350 surveys were
sent out in the last business year, of which 88.6% returned a
rating of “excellent”. At a general level, the aspects best valued
by clients included the works team’s capabilities and technical
knowledge, their availability to meet the client’s needs, and their
ability to resolve unforeseen issues.
In the case of Cementos Portland Valderrivas, the company
maintains suitable, ongoing customer service through different
communication channels. Special mention should go to the
Digital Channel for clients that is accessible via the corporate
website, and direct customer service provided by the commer-
cial team. With the aim of determining the degree of client satis-
faction, the company sent out a total of 1,008 quality surveys to
end customers in 2020, obtaining an average rating of 4.11 out
of 5 in the product, services, degree of trust and digital-com-
mercial services categories.
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FCC’S commitment to its suppliers
593
FCC is also working continuously on the application and inclu-
sion of sustainability criteria in its purchasing processes and
services provided, including binding ethical, social and environ-
mental issues with regard to sustainability.
The FCC Code of Ethics and Conduct also includes the basic
principles that all partners, collaborators and suppliers have to
respect: These principles state that business partners should:
Clearly reject corruption, bribery and fraud and be seen to
behave ethically in all their business relationships.
Defend and protect human rights and essential labour
rights recognised internationally in the Universal Decla-
ration of Human Rights, as well as the Agreements and
Declaration of the International Labour Organisation (ILO)
relating to the principles and essential rights of workers.
Show a high level of commitment to compliance with occu-
pational health and safety standards, guaranteeing a safe
and healthy work environment.
Establish sustainable environmental management that
respects the environment in all their activities, not only in
terms of compliance with legislation, but also when under-
taking activities in order to minimise negative environmental
impacts.
In 2019 the ethical clauses in the General Conditions for
Contracting that suppliers have to accept were reformulat-
ed, including references to a declaration that the supplier fully
understands the content and scope of the new FCC Group An-
ti-Corruption Policy.
The FCC Group also has a Purchasing Manual that is based
on three key principles: transparency, competitiveness and ob-
jectivity. With a view to promoting stable and lasting business
relationships, FCC aims to implement balanced and beneficial
collaboration frameworks with suppliers, contractors, partners
and collaborators.
In 2020, the FCC Group updated the Purchasing Manual within
the framework of the CSR Master Plan. In this context, work
was undertaken to analyse and update the map of environmen-
tal, social and governance risks for suppliers and contractors,
taking into account issues such as:
Identification of potential risks regarding sustainability.
Inclusion of sustainability criteria in the definition of a critical
supplier.
Strengthening the monitoring and control system for those
suppliers presenting the highest risk.
The Group also worked on the supplier official approval process
by updating the Supplier Management procedure. The aim of
the present procedure is to establish a unique methodology to
standardise suppliers in the Purchasing Department’s database,
as well as to define a unique methodology for their assessment.
For the FCC Group, control of the value chain is critical and
the success of the company depends on managing it correct-
ly. Suppliers and contractors are a very significant stakeholder
group given their size: in Spain alone, the Group established
business relationships with more than 32,500 suppliers in 2020.
Proof of the Group’s commitment to local suppliers in Spain is
that 98.7% of its suppliers are Spanish and 97.9% of the vol-
ume of purchases was contracted with them.
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The official approval process is based on a risk analysis based
in accordance with the information provided by the supplier and
from a subsequent analysis, that leads to a final resolution on
official approval by FCC.
For a supplier to be officially approved, they should first register
on the Group’s corporate platform and answer a series of ques-
tionnaires which include sustainability issues. The following are
some of these issues:
Signing an affidavit with regard to anti-corruption.
References to documentation relating to the identifica-
tion, risk assessment and certifications of the Anti-Brib-
ery and Compliance systems implemented in the com-
pany.
Certifications and information relating to the Quality and
Environmental Management systems established in the
company.
Information relating to the Prevention of Risks at Work
System.
Information regarding customer service and satisfac-
tion, as well as process control, official approval and
assessment of suppliers.
Workforce data, including diversity indicators such as
the percentage of women, average age and average
seniority of workers.
Information on the promotion of Corporate Social Re-
sponsibility in the company, including, where applica-
ble, a declaration of respect for human rights, anti-dis-
crimination policies, adherence to the United Nations
Global Compact, certifications of the ethical/social
management system, sanctions or judicial processes
for violation of human rights, communication of the sus-
tainability policy, assessment of employee satisfaction
and conciliation policies.
Information regarding regulatory compliance, including
references to their own Code of Ethics, acceptance of
the FCC Group’s Code of Ethics, information on the
criminal prevention model, the reporting channel, the
existence of a Compliance Officer, the policies for the
prevention of money laundering and financing of terror-
ism, as well as any possible sanctions or convictions for
corruption, bribery or influence peddling.
594
Once the questionnaires have been filled in, the responses are
weighted using a points system that categorises the level of
risk, assigning a degree of compliance between “A” and “D”,
with “A” being the level with the highest compliance. This score
is notified to the supplier once it has been approved through an
official approval certificate together with recommendations for
improving the score, where this is of interest.
During the 2020 business year, a total of 382 suppliers com-
pleted the official approval process. Looking ahead to 2021, the
Group aims to officially approve 100% of the suppliers assigned
in the purchasing processes initiated throughout the year, as
well as 80% of the suppliers that represent the top 20% of ex-
penses incurred during the business year.
In the event that a supplier is classified as high risk (D), a process
of Due Diligence for third parties will be undertaken to analyse in
detail any possible risks that may materialise should a commer-
cial relationship be established with this provider. Depending on
the results obtained in Due Diligence, the official approval of
the supplier by the Purchasing Department will be accepted or
rejected. Of all the suppliers submitted to the official approval
process in 2020, none had any features that resulted in them
being categorised as high-risk suppliers.
There is regular assessment of suppliers that involves sending
satisfaction assessment surveys to the corresponding areas
within the Group. The result of these assessments is useful for
negotiations, decision-making in future assignments or even to
decide whether to maintain or cancel official approval. With the
aim of keeping the system constantly updated, the assessment
questionnaire is resent regularly and at different intervals after
the contract has been awarded, provided it is still in force.
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The FCC Group: innovation for sustainable development
595
Since it was founded in 1900, the FCC Group has always
considered innovation as a priority, adapting to different tech-
nological developments to provide services with the highest
standards of technical excellence. From building cities at the
beginning of the century, to the development of motorways and
railway and metro lines, park management and water distribu-
tion over the following decades, FCC has always participated in
the development of state-of-the-art infrastructures and services
within its sector.
This ongoing effort to innovate on the part of the Group has
enabled FCC to enjoy a journey lasting more than 120 years.
The search for innovation is part of the history and way of life in
the FCC Group and can be seen in the numerous initiatives in
which the different lines of business participate.
The FCC Group is aware that the future must be linked to sus-
tainable development, so each business is looking for inno-
vative solutions so as to be able to minimise their impact on
the environment and increase the efficiency of their processes.
These solutions are aimed at meeting global challenges, like the
fight against climate change and transition to a circular econo-
my model, all of which will affect the global agenda in the com-
ing years.
FCC Environmental is committed to technological innovation
in order to improve the well-being of citizens and make cities
increasingly sustainable. Its R&D&I projects focus on five main
areas: e-mobility, machinery, circular economy, sustainable de-
velopment and “VISION” and Information and Communication
Technologies. In this way, the activities of FCC Environmental
Services include electric sweepers, advanced urban pruning
systems, and innovative projects such as, for example, Life-
4Film, aimed at avoiding incineration and sending plastic film to
landfills, and Insectum, that aims to improve the revaluation of
wastes by using insects.
In this regard, Aqualia is now considered to be as an avant-gar-
de entity, a benchmark in the sector as a result of continuous
progress in innovation and in the use of new technologies. The
company has developed an R&D&i strategy, both in the produc-
tion processes and in the optimal use of resources, assuming its
responsibility to society and the environment and improving the
quality of life of citizens, including vulnerable groups. Aqualia’s
innovation projects are based on identifying opportunities in
issues such as quality, sustainability, smart management and
eco-efficiency in which the whole workforce participates. With
the aim of providing projects with better resources, the compa-
ny also participates in European, national and regional R&D&I
programmes relating to water management and that are co-fi-
nanced by the Spanish Administration or the European Union
(FP7, LIFE, H2020, Eco-Innovation, etc.).
The Group’s construction area also actively promotes innova-
tion through its main activities, as it is aware of the importance
for the company as a differentiating factor in a highly compet-
itive market. The innovation projects in the FCC Group’s con-
struction area are aligned with its R&D&i policy, with efforts fo-
cussed on providing added value in terms of sustainability. As a
complement to this and with the aim of ensuring the maximum
guarantees for quality and safety, the Group’s construction area
uses modern and innovative machinery in its operations, result-
ing in a reduction of atmospheric emissions and impact from
noise and an increase in energy efficiency.
The Cement business is committed every year to applying
R&D&i processes involving research and development for new
products, and there is great awareness of social demands in
environmental matters. With the aim of adapting to the chang-
ing context and guaranteeing the competitiveness of its activi-
ties in the market, the company is working for the technological
innovation of products and materials to extend the useful life
of infrastructures. Meanwhile, the Cement business is apply-
ing innovative techniques involving alternative manufacturing
processes and eco-efficient materials to make progress in the
sustainable construction of cities.
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596
Artificial Intelligence, the key
to optimising electricity costs
in the cement sector
The cost of electricity cost in a cement works
represents about 37 percent of variable costs, so
energy efficiency is a key competitive factor for
this industry. In Spain, the cement industry also
faces reduced energy replacement rates, a new
scenario for the CO2 Emissions Trading System,
and the cost of electricity is higher than the Euro-
pean average.
This need has led to a collaboration agreement
between the University of Seville and Flacema,
with the participation of a number of companies
in the cement sector operating in Andalusia, such
as Cementos Portland Valderrivas. In this context,
an industrial research process will be launched,
with the aim of developing a digital tool to opti-
mise electricity costs. This tool will include neural
networks, genetic algorithms and other Artificial
Intelligence tools and will enable the former to lay
the ground for the mathematical theories while the
latter will see an improvement in competitiveness.
Life Phoenix, the project led by Aqualia
for the regeneration of wastewater
and the treatment of microplastics
Within a context of ecological crisis and water stress arising
from the effects of climate change, the re-use of water is vital-
ly important so as to be able to face the challenges presented
by food production and water policy in the European Union.
Faced with this scenario, Aqualia will be the entity responsi-
ble for leading the European Life Phoenix innovation project
for the next four years. This project is a challenge that will
address the problems arising from the re-use of wastewater,
as well as the threat posed by emerging pollutants and mi-
croplastics.
The project lies within the framework of the European LIFE
programme and has a budget of more than three million
euros. It seeks to transform the use of wastewater into an
element of high added value to be re-used for irrigation in
the agricultural sector, in compliance with the current Euro-
pean directive.
The project lies within the framework of the European LIFE
programme and has a budget of more than three million
euros. It seeks to transform the use of wastewater into an
element of high added value to be re-used for irrigation in
the agricultural sector, in compliance with the current Euro-
pean directive.
AWA:
water measurement for smart
management
Industry 4.0 is already a new reality in the business of end-to-
end water management, and it has accelerated digitisation
and the adoption of new technologies in industrial processes.
As a result of this, Aqualia uses the Aqualia Water Analytics
(AWA) platform for the smart, more efficient management of
the end-to-end water cycle and has completely transformed
the way it operates. AWA is an analytical tool that provides
the company with transversal analysis of the end-to-end
water cycle, and it covers the complete data cycle from
abstraction onwards. The technological environment was
designed under the principle of creating solutions adapt-
ed to each process and specific needs “Any solution does
not have to be the best solution”. With regard to security, it
is about generating a framework of trust, complying at all
times with cybersecurity policies.
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The FCC Group, innovating to contribute
to sustainable mobility
Both Aqualia and FCC Environmental participated in the
Methamorphosis project, co-financed by the European
LIFE program, and which ended in 2020. This project is an
example of the synergies existing within the FCC Group,
and aimed at developing a new system for the treatment of
effluents and obtaining biofuel (biomethane) from municipal
and agro-industrial waste. As a result of this project, two
prototypes were built:
UMBRELLA (FCC Medio Ambiente and Aqualia - Besòs
Ecopark Municipal Wastes Plant): This prototype aims
to use organic waste from water treatment to generate
biogas.
METHAGRO (Porgaporcs - Ecobiogas agro-industrial
waste plant): This prototype focuses on obtaining bio-
gas from organic waste from the Porgaporcs agri-food
plant.
FCC also plays a leading role in the LIFE Landfill Biofuel
project, in collaboration with six other organisations. This
project aims to obtain and produce biomethane suitable
to be used by vehicles from the enrichment of biogas from
landfills. Once completed, the intention is to reproduce this
project in other FCC landfills in Europe, thus contributing to
the use of biomethane as an energy alternative.
Smart platform for the provision of services to citizens
ICT technologies (Information and Communication
Technologies) are increasingly important in the provi-
sion of truly smart services in cities and urban centres.
Administración
Administration
Companies
Citizens
In order to provide effective, efficient, sustainable
and comprehensive services, systems need to be in
place that enable the capitalisation of best practices
in processes and communications, also providing all
agents (administration, citizens and companies) with
collaborative tools that enable the management of in-
formation for optimal service provision.
With this in mind, FCC Medio Ambiente Iberia de-
veloped the VISION platform, a tool that integrates
all aspects of FCC Medio Ambiente Iberia’s manage-
ment in the same environment, sharing information,
processes, validations and services that facilitate pro-
gress towards excellence.
With the deployment of VISIÓN in all contracts, the
tool enables all departments to work together to de-
sign and maintain a unified and updated work envi-
ronment.
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FCC Environment CEE, innovating for the citizens of Slovakia
FCC Environment CEE has developed a new applica-
tion available in Slovakia, for the purpose of notifying
users when the different types of waste will be col-
lected. This practical tool will modernise the municipal
waste collection system in Slovakia, which was previ-
ously managed by printed calendars in which citizens
had to verify and review the timetable for taking out
their waste to be collected.
The Vylož Smeti app: FCC, which has been available
since 1 December 2020, enables users to access the
collection calendar, simply by showing their address
on their tablet or mobile phone.
In line with the FCC Group’s strategy in the field of
digitization, FCC Environment CEE in Slovakia has
also developed the online tool OdpadOnline.sk. With
this tool it takes users 5 minutes to request a contain-
er and ensure the safe disposal of their waste.
Gaudí Project, a new platform for
knowledge management in the construction
sector
Gaudí project, a new platform for knowledge management
in the construction sector
The Gaudí project, executed by FCC Construcción and
Vass, and financed by the Centre for Industrial Technological
Development, the European Regional Development Fund
(ERDF) and the Ministry of Science and Innovation, aims to
create a platform for the management of knowledge in the
field of construction.
This platform will enable the acquisition, storage, processing
and dissemination of know-how in construction companies.
By developing Artificial Intelligence, Machine Learning and
Deep Learning algorithms, this platform will also enable the
capture, storage, processing and dissemination of informa-
tion through a shared platform.
This project will create a new Knowledge Management
model for the construction sector, based on the study of
the business processes established in the Management
Systems in the companies participating, taking traditional
knowledge processes into account (creation, storage and
retrieval, transfer and application).
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Annexes
Annex I: about this report
Regulatory Context
This Sustainability Report provides information on the manage-
ment of key aspects (environmental, social and governance) for
the company and its businesses in the period between 1 Janu-
ary and 31 December 202014.
The dissemination of non-financial information or that relating to
corporate social responsibility contributes towards the meas-
urement, monitoring and management of the performance of
companies and their impact on society, and constitutes a com-
mon practice within the FCC Group. The information on FCC’s
ethical, environmental and social performance was prepared in
accordance with the Exhaustive option in the GRI Standards
(Global Reporting Initiative).
The FCC Group also includes in this Report the non-financial
information requested by Law 11/2018, of 28 December, on
non-financial information and diversity. This Report, therefore,
is a constituent part of the FCC Group’s Consolidated Man-
agement Report, corresponding to the 2020 business year, be-
tween 1 January and 31 December 2020.
Throughout this document, information is provided on environ-
mental and social issues, respect for human rights and the fight
against corruption and bribery, as well as information on the
Group’s employees.
Principles for preparing the Report
In the preparation of this Report, the FCC Group followed the
principles of the Global Reporting Initiative for the preparation
of reports: Inclusion of stakeholders, context of sustainability,
material value and comprehensiveness.
To identify material issues, FCC updated its materiality study
for 2020, described in point correspondent of this report and
taking the company’s main stakeholders into account. In the
event that any indicator is not material for the Group or for any
of its businesses, this will be expressly stated in the text. The
scope of the material topics and their coverage was developed
sufficiently to reflect significant economic, environmental and
social impacts and to enable stakeholders to assess FCC’s per-
formance in 2020.
The Group also took care to ensure the quality of the document,
respecting the following principles: accuracy, balance, clarity,
comparability, reliability and timeliness.
To ensure the reliability of the information, the Group verified
its Sustainability Report independently. A guarantee report that
includes the objectives and scope of the process, as well as
review procedures used and their conclusions, is attached as
an annex to this report.
Scope
The scope of the information provided in this report corre-
sponds to the integration perimeter used for the financial con-
solidation of Fomento de Construcciones y Contratas, S.A. and
subsidiaries, taking into account the data for 100% of the sub-
sidiaries over which management is controlled, regardless of
the shareholding.
The list of FCC Group companies as at 31 December 2020, and
a description of each one, appear in the annexes to the annual
accounts.
(14) Due to the impossibility of providing year-end data, Aqualia
reports non-financial information related to environmental issues
for the period from 1 December 2019 to 30 November 2020.
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600
The FCC Group, distinguished by its geographical and activity
diversity, is working to extend the scope of the information to
all the companies that make up the group. However, the follow-
ing is a list of companies excluded from this scope for which
non-financial information for the 2020 business year has not
been included:
Business
Excluded from the Scope
Environment Area
Construction Area
Cementos Portland Valderrivas
Other activities
FCC Abfall Service Betriebs GmbH, FCC Centrum Nonprofit Kft., FCC Magyarorzág Kft, FCC EKO
Polska sp. z.o.o., FCC EKO Polska sp. z.o.o., FCC Environment Romania S.R.L.
ACE Scutmadeira Sistemas de Gestao e Controlo de Tràfego, Áridos de Melo, S.L., Colombiana
de Infraestructuras, S.A.S., Concesiones Viales S. de R.L. de C.V., Concretos Estructurales, S.A.,
Conservial Infraestructuras, S.L., Consorcio FCC Iquique Ltda., Construcción Infraestructuras y
Filiales de México, S.A. de C.V., Construcciones Hospitalarias, S.A., Constructora Meco-Caabsa,
S.A. de C.V., Constructora Túnel de Coatzacoalcos, S.A. de C.V., Desarrollo y Construcción
Deyco CRCA, S.A., Edificadora MSG, S.A. (Panama), Edificadora MSG, S.A. de C.V. (El Salvador),
Edificadora MSG, SA de C.V. (Nicaragua), FCC Américas, S.A. de C.V., FCC Américas Colombia,
S.A., FCC Américas Panamá, S.A., FCC Colombia, S.A.S., FCC Construcción Costa Rica, S.A.,
FCC Construcción de México, S.A. de C.V., FCC Construcción Perú, S.A.C., FCC Construçoes
do Brasil Ltda., FCC Constructii Romania, S.A., FCC Construcción International B.V., FCC
Construcción Northern Ireland Limited, FCC Edificadora CR, S.A., FCC Electromechanical Llc.,
FCC Elliott Construction Limited, FCC Industrial de Panamá, S.A., FCC Industrial Perú, S.A., FCC
Industrial UK Limited, FCC Inmobilien Holding GMbH, FCC Servicios Industriales y Energéticos
México, S.A. de C.V., FCC Soluciones de Seguridad y Control, S.L., Fomento de Construcciones
Colombianas, S.A.S., Fomento de Construcciones y Contratas Canadá Ltd., Impulsora de
Proyectos Proserme, S.A. de C.V., Meco Santa Fe Limited, Megaplás Italia, S.p.A., Participaciones
Teide, S.A., Servicios Dos Reis, S.A. de C.V., FCC Construcción Australia Pty Ltd.
Canteras de Alaiz, S.A., Carbocem, S.A., Dragon Alfa Cement Limited, Dragon Portland Limited,
Hormigones de la Jacetania, S.A., Prebesec Mallorca, S.A., Uniland Acquisition Corporation,
Uniland International B.V., Uniland Trading B.V., Áridos de Navarra, S.A., Pedrera de l’Ordal, S.L.,
Tratamiento Escombros Almoguera S.L.
Autovía Conquense, S.A., Bvefdomintaena Beteiligungsverwaltung GmbH, Cemark - Mobiliario
Urbano e Publicidade, S.A., Concesionaria Atención Primaria, S.A., Concesionaria Túnel
de, Coatzacoalcos, S.A. de C.V., Costa Verde Habitat, S.L., F-C y C, S.L. Unipersonal,
FCC Concesiones, S.A. Unipersonal, FCC Concesiones de Infraestructuras, S.L., Geneus
Canarias, S.L., PPP Infraestructure Investments B.V., Per Gestora, S.L., Vela Boravica Koncern
d.o.o., Vialia Sociedad Gestora de Concesiones de Infraestructuras, S.L., Grupo Cedinsa
Concessionària, Cedinsa Concessionària, S.A., Cedinsa Conservació, S.L. Unipersonal, Cedinsa
d’Aro Concessionària de la Generalitat de Catalunya, S.A.Unipersonal, Cedinsa Eix Llobregat
Concessionària de la Generalitat de Catalunya, S.A.Unipersonal, Cedinsa Eix Transversal
Concessionària de la Generalitat de Catalunya, S.A.Unipersonal, Cedinsa Ter Concessionària de la
Generalitat de Catalunya, S.A.Unipersonal.
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The non-inclusion of non-financial information on these compa-
nies is due to the fact that most of them are inactive or being
wound up, holding companies, companies without productive
activity or incorporated during the second half of the business
year. The FCC Group’s non-financial reporting procedure allows
those companies incorporated in the second half of the busi-
ness year to make non-financial reporting on a voluntary basis,
in order to have a reasonable amount of time to adapt to the
management systems implemented in the Group. However, if
the information is available, it is included in the data provided by
each business line.
Despite the above-mentioned corporate exclusions, the non-fi-
nancial information presented in this Report covers between 90
and 95% of the FCC Group’s turnover, unless expressly indicat-
ed below, guaranteeing a true image of the company’s non-fi-
nancial performance.
With regard to specific indicators, in addition to what is express-
ly indicated throughout the document in other sections, those
excluded from the scope of environmental indicators are de-
tailed below:
Indicator
Excluded from the Scope
Monetary resources dedicated to the prevention of
environmental risks
Aqualia
Atmospheric emissions
Prefabricados Delta (COVs), Megaplas (NOx, Sox)
Water discharges
Generated waste
Water consumption
Energy consumption
Direct GHG emissions
Indirect GHG Emissions
Aqualia15
FCC Construcción (Saudi Arabia)
FCC Construcción (Saudi Arabia)
FCC Construcción (Saudi Arabia), FCC Environmental Services
FCC Construcción (Saudi Arabia)
FCC Construcción (Saudi Arabia), FCC Environmental Services
This year, basic environmental indicators for the two corporate
headquarters of the FCC Group in Madrid (energy consump-
tion, water consumption, waste generated and GHG emissions)
were included for the first time. These indicators, with a very low
weighting with regard to the FCC Group, are the significant for
the environmental management of both centres.
With regard to the exclusions from scope in the specific indi-
cators mentioned above, these omissions are justified due to
the impossibility of providing exhaustive and good quality infor-
mation as at the closing date for the submission of this report.
With regard to the above-mentioned omissions concerning the
FCC Group’s turnover, Aqualia contributes 19.3%, FCC Con-
strucción (Saudi Arabia) 2.8% and FCC Environmental Services
1.2%. The rest of the omissions mentioned do not in any case
exceed 1% of the Group’s turnover.
(15) Since Aqualia’s activity is to manage the end-to-end water
cycle, the amounts of water discharged as a result of the
purification and reuse processes are shown in the section
“Water consumption and management at the Group”.
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Annex II: tables relating to social and personnel affairs
602
Developments in the distribution of the workforce
by gender (31/12)
Developments in the distribution of the workforce by age range and gender (31/12)
Men
Women
Total
2019
77.8%
22.2%
100%
2020
77.7%
22.3%
100%
< 35 years
35-54 years
> 54 years
Subtotal
Total
2019
2020
Men
8,413
26,945
10,789
46,147
Women
1,876
8,180
3,111
13,167
Men
6,788
24,043
15,570
46,401
Women
1,850
7,501
3,995
13,346
59,314
59,747
Developments in the distribution of the workforce
by business area (Percentage)
Developments in the distribution of the workforce by functional level and gender (31/12)
Environmental Services
Water Management
Construction
Cement
Central Services
Total
2019
67%
16%
14%
2%
1%
2020
67%
18%
12%
2%
1%
100%
100%
Directors and Managers
Supervisors
Technicians
Administrative Clerks
Sundry trades
Subtotal
Total
2019
2020
Men
Women
475
3,233
3,545
1,074
37,820
46,147
90
610
1,629
1,805
9,033
13,167
Men
437
3,067
3,898
1,004
37,995
46,401
Women
82
551
1,660
1,975
9,078
13,346
59.314
59.747
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Developments in the distribution of the workforce by country gender (31/12)
No. of new contracts by gender, age and functional level:
603
Countries
Spain
Czech Republic
United Kingdom
Romania
Austria
Poland
Portugal
Slovakia
Italy
Hungary
Serbia
USA
Panama
Colombia
Egypt
Tunisia
Saudi Arabia
United Arab Emirates
Rest of the World
Total
Men
33,584
2,161
2,045
556
530
382
373
361
207
127
100
372
484
240
1,025
239
2,294
326
741
2019
Women
10,781
655
348
144
162
94
88
93
37
52
34
50
88
51
3
19
195
6
267
Total
44,365
2,816
2,393
700
692
476
461
454
244
179
134
422
572
291
1,028
258
2,489
332
1,008
Men
33,956
2,196
2,152
554
532
423
443
323
217
132
94
501
266
666
1,340
215
1,684
307
401
2020
Women
11,115
648
350
134
165
108
95
91
35
51
36
76
42
147
3
17
134
5
94
Total
45,071
2,844
2,502
687
697
531
538
414
252
183
130
577
308
813
1,343
232
1,818
312
495
46,147
13,167
59,314
46,401
13,346
59,747
No. of new contracts by gender
Men
Women
Total
No. of new contracts by age and gender
Hombre
Mujer
< 35 years
35-54 years
> 54 years
Total
2,766
3,847
1,090
7,703
894
1,365
281
2020
7,703
2,540
10,243
Total
3,660
5,212
1,371
2,540
10,243
No. of new contracts by functional level and gender
Directors and Managers
Supervisors
Technicians
Administrative Clerks
Sundry Trades
Total
Men
Women
Total
11
203
789
122
6,578
7,703
3
73
185
218
14
276
974
340
2,061
2,540
8,639
10,243
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Developments in the number of workers by type of con-
tract and gender
Developments in the number of workers by type of work-
ing day and gender
Annual average by contract and age range
2019
2020
2019
2020
2019
2020
604
Men
Women
Men
Women
Men
Women
Men
Women
Open-ended
32,214
10,165
32,975
10,053
13,933
3,002
13,426
3,293
46,147
13,167
46,401
13,346
Full-time
Part-time
Subtotal
41,908
4,239
9,420
3,747
42,271
4,130
9,479
3,867
46,147
13,167
46,401
13,346
59,314
59,747
Total
59,314
59,747
Temporary
Subtotal
Total
Open-
ended
4,603
26,236
10,375
41,214
Temporary
5,895
8,967
3,001
Open-
ended
4,593
25,220
13,149
Temporary
5,730
8,302
3,133
17,864
42,962
17,165
< 35 years
35-54 years
> 54 years
Subtotal
Total
59,078
60,127
Annual average for contract and gender
Average by type of contract and functional level
2019
2020
2019
2020
Open-
ended
Temporary
Open-
ended
Temporary
31,599
14,719
32,952
14,053
9,615
3,144
10,010
3,112
41,214
17,864
42,962
17,165
59,078
60,127
Men
Women
Subtotal
Total
Open-
ended
565
3,339
3,858
2,081
Temporary
4
608
1,013
758
Open-
ended
544
3,238
4,403
2,272
Temporary
5
538
994
598
Directors and
Managers
Supervisors
Technicians
Administrative
Clerks
Sundry trades
31,372
15,480
32,505
15,030
Subtotal
41,215
17,863
42,962
17,165
Total
59.078
60.127
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Annual average for working hours and gender
Average by type of working day and functional level
Developments in dismissals by functional level
2019
2020
2019
2020
2019
2020
Full-time
Part-time
Full-time
Part-time
Full-time
Part-time
Full-time
Part-time
Men
Women
Subtotal
Total
41,947
9,296
51,243
4,372
3,463
7,835
42,788
9,508
52,296
4,217
3,614
7,831
59,078
60,127
Directors and
Managers
Supervisors
Technicians
Administrative
Clerks
Sundry trades
Subtotal
Total
565
4
542
3,780
4,607
2,666
167
264
173
3,616
5,143
2,695
8
159
255
175
39,625
51,243
7,227
7,835
40,300
52,296
7,234
7,831
59,078
60,127
Directors and Managers
Supervisors
Technicians
Administrative Clerks
Sundry trades
Total
13
37
107
46
612
815
24
63
114
37
450
688
Annual average by working hours and age range
Developments in dismissals by gender
Developments in the wage gap in Spain
2019
2020
Full-time
Part-time
Parcial
Full-time
Part-time
< 35 years
9,128
35-54 years
31,406
> 54 years
Subtotal
10,709
51,243
1,370
3,797
2,667
7,835
8,983
29,922
13,391
52,296
1,340
3,601
2,890
7,831
Total
59,078
60,127
Men
Women
Total
2019
2020
662
153
815
532
156
688
Adjusted wage gap
Gross wage gap
2019
6.59%
2020
5.85%
17.42%
18.62%
Developments in dismissals by age range
< 35 years
35-54 years
> 54 years
Total
2019
2020
260
427
128
815
143
368
177
688
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Average salaries by functional level and gender
Spain:
606
Men
Directors and Managers
Supervisors
Technicians
Clerical Staff
Sundry Trades
Women
Directors and Managers
Supervisors
Technicians
Clerical Staff
Sundry Trades
International
Saudi Arabia
Colombia
Egypt
2019
2020
Total Average Remuneration
Total Average Remuneration
Under 35 years old
From 35 to 54 years old
Over 54
Under 35 years old
From 35 to 54 years old
Over 54
60,375.36 €
29,251.61 €
28,498.51 €
23,867.52 €
23,989.51 €
53,855.97 €
26,886.49 €
24,391.86 €
20,873.69 €
19,211.29 €
107,200.54 €
147,318.51 €
45,086.22 €
43,127.14 €
30,319.11 €
26,342.57 €
87,100.64 €
36,604.46 €
35,679.30 €
25,063.85 €
19,991.23 €
50,693.67 €
51,944.87 €
36,504.92 €
27,694.37 €
83,920.64 €
39,305.68 €
42,562.62 €
27,821.19 €
19,138.44 €
55,734.89 €
30,498.07 €
28,316.74 €
22,343.23 €
23,277.26 €
–
27,810.07 €
25,128.80 €
21,872.00 €
18,850.39 €
99,168.29 €
45,952.00 €
42,163.90 €
29,502.52 €
27,232.33 €
85,111.11 €
38,705.44 €
36,154.10 €
26,135.65 €
20,263.39 €
136,326.39 €
53,031.57 €
50,197.31 €
35,470.45 €
29,484.30 €
70,589.89 €
40,878.50 €
40,968.08 €
28,782.08 €
20,392.96 €
Men
Women
57,384.35 SAR
52,712.74 SAR
24,544,260.05 COP
31,347,442.47 COP
120,620.20 EGP
160,272.00 EGP
United Arab Emirates
34,139.27 AED
51,600.00 AED
Italy
Panama
Portugal
27,859.81 EUR
31,812.75 EUR
18,472.29 USD
26,093.70 USD
22,892.88 EUR
28,468.91 EUR
Czech Republic
419,010.66 CZK
378,919.91 CZK
Tunisia
55,218.81 TND
48,780.97 TND
FCC defined a remuneration policy for each of the countries in
which it operates, so the aggregate average remuneration for
which the remuneration data for those countries in which we are
established is added, it is not representative of the remunera-
tion management undertaken in each of the business units and
countries in which FCC operates.
The information required to provide breakdowns by professional
classification and age range is currently not available. In this
regard, the FCC Group is working to be able to provide this
information.
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Percentage of workers covered by collective agreement by country
Parental Leave (Spain)
607
No. of employees entitled to
paternity/maternity leave
No. of employees who took paternity/
maternity leave
No. of employees who returned to
work after paternity/maternity leave
ended
Men
803
803
757
Women
173
173
169
Countries
Saudi Arabia
Algeria
Australia
Austria
Belgium
Brazil
Bulgaria
Canada
Chile
Colombia
Costa Rica
Ecuador
USA
Egypt
El Salvador
United Arab Emirates
Slovakia
Spain
France
Guatemala
Holland
Total % of workers covered by
collective agreement
Countries
Total % of workers covered by
collective agreement
2019
0%
–
–
6%
–
–
0%
–
0%
0%
–
–
0%
–
–
0%
36.83%
100%
100%
–
–
2020
0%
93.44%
0%
0.10%
100%
100%
0%
0%
0%
0%
0%
0%
14.37%
0%
0%
0%
Hungary
Ireland
Italy
Kosovo
Mexico
Montenegro
Nicaragua
Norway
Oman
Panama
Peru
Poland
Portugal
Qatar
United Kingdom
Czech Republic
33.73%
Dominican Republic
100%
100%
0%
100%
Romania
Serbia
Tunisia
2019
0%
–
100%
–
0%
–
–
–
0%
30.45%
–
25%
48.26%
–
7.13%
36.58%
–
22.85%
10.56%
100%
2020
0%
0%
100%
0%
0%
0%
0%
0%
0%
65.55%
0%
20%
13.85%
16.07%
7.10%
36.38%
100%
20.52%
13.86%
100%
(*) In 2020 all countries and all areas where the FCC Group operates
were included.
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Annex III: tables relating to environmental issues
608
Noncompliance with environmental laws and regulations
(307-1)
Noncompliance with environmental laws and
regulations
Total monetary value of fines (€)
Total number of non-monetary sanctions (No.)
Cases subject to mechanisms for the resolution
of law suits (No.)
2020
304,256
23
53
Spills (306-3) and discharges (303-4)
Import, export and transport of waste (306-4)
Import of waste (T)
Amount of imported hazardous waste
Exported hazardous waste (T)
Amount of exported hazardous waste
Transported hazardous waste (T)
Amount of hazardous waste transported to other
countries
2020
54,685
2020
666
2020
57
Derrames
Total no. of significant spills (no.)
Total volume of significant spills (m3)
Water discharges by destination (m3)
Surface water
Groundwater
Sea water
Third party water (total): municipal network and
treatment plants
Third-party water transferred for use by other
organisations (where applicable)
TOTAL
2020
18
23
2020
1,954,567
75,832
62,170
1,481,451
–
3.574.020
Total water discharges for fresh water or other
waters (m3)
2020
Fresh water (total dissolved solids ≤ 1000 mg/l)
1,508,526
Other waters (total dissolved solids> 1000 mg/l)
Not typified
TOTAL
Water discharges in areas under water stress (m3)
Fresh water (total dissolved solids ≤ 1000 mg/l)
Other waters (total dissolved solids> 1000 mg/l)
TOTAL
117,439
1,948,056
3,574,020
2020
592,343
100
592.443
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Water abstraction (303-3)
Consumption of materials (301-1) (301-2) (301-3)
609
Water abstraction (m3)
2020
Materials used (T)
Municipal water supply or by other water
companies
Surface waters (wetlands, rivers, lakes, captured
rainwater and other water streams)
9,521,108
850,832
Raw materials (metals, minerals,
wood, etc.)
Process materials, lubricants and
reagents
Groundwater
1,992,512
Semi-finished products
Rainwater captured and stored by
the organisation
218,934
Container and packaging material
(paper, cardboard, plastics)
Water recycled or re-used
1,996,106
TOTAL
TOTAL
14,579,493
Origin of the materials used (T)
Renovable*
2020
Recycled consumables (T)
41,396,446
Recycled/re-used materials
Retrieved packaging products
and materials (T)
Packaging products and materials
collected, re-used or recycled at the
end of their useful life
Packaging products/material sold in
the period
96,849
3,726,276
8,671
45,228,241
Non
renovable**
2020
10,121,571
2020
1,356
1,336,408
Water abstraction from areas WITH water
stress (m3)
2020
Municipal water supply or by other water companies
5,681,748
Surface waters (wetlands, rivers, lakes, and other
water streams)
Groundwater
Rainwater captured and stored by the organisation
Water recycled or re-used
TOTAL
470,964
620,075
3,515
1,895,215
8,671,517
Water abstraction by water type (m3)
2020
Fresh water (total dissolved solids ≤ 1000 mg/l)
14,579,493
Other waters (total dissolved solids> 1000 mg/l)
–
TOTAL
14,579,493
Raw materials (metals, minerals,
wood, etc.)
Process materials, lubricants and
reagents
Semi-finished products
Container and packaging material
(paper, cardboard, plastics)
257,475
41,138,971
191
96,658
–
3,726,276
4,327
4,343
TOTAL
261,993
44,966,248
(*) Renewable: materials from abundant resources that are quickly
replenished through ecological cycles or agricultural processes,
so that they remain available for future generations. For example,
wood and biomass.
(**) Non-renewable: Resource that is not renewed within short periods
of time, for example; minerals, metals, oil, gas and coal.
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Consumption of renewable fuels in fixed sources
and mobile sources under operational control
(GJ)
Biogas burned in boilers without electricity
generation
Consumption of self-produced renewable
energy (GJ)
2020
549,888
From wind turbines
From photovoltaic panels
Biogas burned in engines or turbines with electricity
generation
1,086,822
Waste (biomass fraction)
Biomethane
Landfill gas
Biomass
TOTAL
8,487,487
549
4,552
1,364,247
11,493,546
TOTAL
Indirect energy consumption (GJ)
Indirect non-renewable consumption
Indirect renewable consumption
TOTAL
Energy consumption outside the organisation
(GJ)16
Purchased items and services
Activities relating to fuel and energy that are not
included in scope 1 and 2
Business travel
TOTAL
Energy consumption (302-1) (302-2)
Consumption of fossil fuels in fixed sources and
mobile sources under operational control (GJ)
Petrol
Diesel/Diesel oil
Boiler oil (Diesel C)
Fuel Oil
LPG (Liquefied Petroleum Gas)
Natural gas
Compressed natural gas (CNG)
Kerosene
Coal (domestic)
Propane
Waste (fossil fraction)
Butane
Conventional fossil fuels in clinker kilns
Alternative fossil fuels in clinker kilns
TOTAL
GJ
97,236
3,766,750
18,320
8,954
2,094
118,346
473,421
662
1,082
3,439
7,207,458
15
12,214,421
1,509,222
25.421.421
(16) This energy consumption is only calculated at FCC
Construcción, Cementos Portland Valderrivas and FCC
Environment UK.
610
2020
255
753
1,009
2020
6,075,789
112,181
6,187,970
2020
318,186
6,701
9,069
333,955
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611
Annex IV: tax information
Profits by country and tax paid on profits
Pre-Tax Profit
2020 (thousands
of €)
Tax paid on 2020
profit (thousands
of €)
1,236.05
11,398.51
26,090.55
0.00
-751.22
9,478.00
1,093.00
-0.15
-2,164.77
1,192.00
-2,398.11
-1,965.52
154.87
-1,987.39
178.24
8,022.55
377.49
6,687.52
2,446.89
136.42
0.06
0.10
49.28
-21.13
404.56
155.55
705.34
120.54
Germany (*)
Saudi Arabia
Algeria
Argentina (*)
Austria
Australia
Belgium
Bosnia and
Herzegovina (*)
Brazil
Bulgaria
Canada (*)
Chile
Colombia
Costa Rica (*)
Croatia (*)
Ecuador
Egypt
El Salvador
(*) Countries that did not report any taxes. This was due to one or
more of the following reasons: accumulated losses, negative
results, negative tax bases from previous business years, profit was
very small or Corporate Income Tax was not payable on profit in
the country in question.
Pre-Tax Profit
2020 (thousands
of €)
Tax paid on 2020
profit (thousands
of €)
Pre-Tax Profit
2020 (thousands
of €)
Tax paid on 2020
profit (thousands
of €)
United Arab Emirates
(*)
Slovakia
Spain
United States (*)
Finland (*)
France
Greece (*)
Guatemala
Haiti (*)
Honduras (*)
Hungary
Ireland (*)
Italy
Latvia (*)
Luxembourg (*)
Morocco
Mexico
Montenegro (*)
Nicaragua
Norway
Oman (*)
Netherlands (*)
Panama
Peru
Poland
2,785.33
2,599.00
390,710.12
-28,859.51
-43.00
3,383.60
0.00
355.54
1,188.00
-21.50
2,971.00
-11,584.78
4,292.56
-51.00
-46.82
-1,455.00
-223.04
-362.37
604.78
234.00
256.19
1,183.31
-36,065.71
10,206.12
3,355.00
952.57
73,172.30
317.29
6.58
86.47
1766.30
0.28
7,271.02
34.50
9,252.40
769.44
-14.40
Portugal
Qatar
United Kingdom
Czech Republic
Dominican Republic
(*)
Romania
Serbia
Sweden (*)
Tunisia
Uruguay (*)
TOTAL
2,275.60
7,367.00
-1,622.80
23,476.43
803.00
-13,302.04
649.44
-8.00
14,540.62
328.28
1,892.09
282.99
2,452.49
5,135.23
194.84
12.26
5,848.86
429,873.45
120,118.61
Public grants received (thousands of €)
Construction
Environmental Services
Water
Cement
Concessions
Real Estate
Central Services
TOTAL
2018
2019
–
3,137
11,397
135
4,772
–
–
3,726
10,725
–
4,610
–
–
2020
–
3,997
8,418
–
7,154
–
–
19,441
19,061
19,569
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Annex V: GRI content table
The following is the table of contents for GRI content. It shows
general GRI 102 content, as well as each of the material issues
identified in any of the FCC Group businesses, along with de-
tails of the corresponding GRI thematic standards. For each of
the issues considered in the materiality analysis, the businesses
in which they are material are identified (Environment, Water,
Construction and Cement). For example, the issue regarding
relationship with local communities is material for the Construc-
tion area.
The thematic GRI standards were selected taking into account
the definition of each of the material issues for the FCC Group.
Since this Report was prepared in accordance with the exhaus-
tive option of Global Reporting Initiative, it responds to all the
content that is part of the selected standards.
Content and materiality of the issues by business
Report section/Direct response
GRI 101: Fundamentals 2016
General content
GRI 102: Contenidos Generales 2016
102-1 Name of the organisation
Fomento de Construcciones y Contratas, S.A. and subsidiaries.
102-2 Activities, brands, products, and services
FCC, creating sustainable cities.
102-3 Location of headquarters
102-4 Location of operations
102-5 Ownership and legal form
102-6 Markets served
102-7 Size of the organisation
Av. Del Camino de Santiago 40, 28050 Madrid, Spain.
FCC, creating sustainable cities.
Corporate Governance Report, section A. Ownership structure.
FCC, creating sustainable cities.
FCC’s commitment to its clients.
FCC, creating sustainable cities.
The FCC Group in figures.
Annex II: Tables relating to social and personnel affairs.
102-8 Information on employees and other workers
Annex II: Tables relating to social and personnel affairs.
102-9 Supply chain
102-10 Significant changes in the organisation and its supply chain
FCC's commitment to its suppliers.
Letter from the CEO.
The FCC Group in figures.
Page
number
Omission
–
Not applicable
487-489
Not applicable
–
Not applicable
487-489
Not applicable
–
487-489;
590-592
487-489;
495-498;
602-607
602-607
593-594
485-486;
495-498
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
102-11 Precautionary principle or approach
The management of environmental aspects and impacts within the Group.
539-542
Not applicable
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Content and materiality of the issues by business
Report section/Direct response
102-12 External initiatives
The CSR Master Plan.
Due diligence with Human Rights.
Accountability and transparency.
The circular economy for the FCC Group.
102-13 Membership of associations
The FCC Group’s socio-economic contribution to sustainable development.
102-14 Statement from senior executives responsible for decision-making
Letter from the CEO.
102-15 Key impacts, risks and opportunities
Risk management in the FCC Group.
102-16 Values, principles, standards and rules of conduct
102-17 Mechanisms for advising and ethical concerns
102-18 Governance structure
102-19 Delegating authority
Our mission, vision and values.
Compliance and due diligence.
Governance structure.
CSR Policy Governance.
102-20 Executive-level responsibility for economic, environmental and social issues.
CSR Policy Governance.
Page
number
508; 529;
531;
542-544
589
485-486
532-536
490
527-531
491-492
506
506
Omission
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
102-21 Consulting stakeholders on economic, environmental and social issues.
FCC, committed to dialogue.
520-522
Not applicable
102-22 Composition of the highest governance body and its committees
Governance structure.
Diversity on the Board of Directors.
102-23 President of the highest governance body
Corporate Governance Report, section C. Structure of the company’s administration.
102-24 Nominating and selecting the highest governance body
102-25 Conflicts of interest
Corporate Governance Report, section C. Structure of the company’s administration
Diversity on the Board of Directors.
Corporate Governance Report, section D. Related transactions and intra-group
transactions.
102-26 Role of the senior governing body in setting objectives, values and strategy
CSR Policy Governance.
102-27 Collective knowledge of the highest governance body
CSR Policy Governance.
102-28 Assessing the highest governance body’s performance
Corporate Governance Report, section C. Structure of the company's administration.
491-492;
494
–
494
–
506
506
–
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
102-29 Identifying and managing economic, environmental and social impacts
Risk management in the FCC Group.
532-536
Not applicable
102-30 Effectiveness of risk management processes
Corporate Governance Report, section E. Risk control and management systems.
–
Not applicable
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Content and materiality of the issues by business
Report section/Direct response
102-31 Assessment of economic, environmental and social issues
Corporate Governance Report, section E. Risk control and management systems.
102-32 Highest governance body’s role in the preparation of sustainability reports
CSR Policy Governance.
102-33 Reporting critical concerns
102-34 Nature and total number of critical concerns
102-35 Remuneration policies
102-36 Process for determining remuneration
102-37 Stakeholders’ involvement in remuneration
102-38 Ratio of total annual salary
Compliance and due diligence.
Compliance and due diligence.
Administrators' Remuneration.
Administrators' Remuneration.
Administrators' Remuneration.
No information is provided.
102-39 Percentage increase ratio of the total annual salary
No information is provided.
102-40 List of stakeholder groups
102-41 Collective bargaining agreements
102-42 Identifying and selecting stakeholders
102-43 Approach to stakeholder engagement
102-44 Key topics and concerns raised
Fostering dialogue: Main stakeholder reporting channels.
Annex II: Tables relating to social and personnel affairs.
FCC Group Materiality Study.
FCC Group Materiality Study.
FCC Group Materiality Study.
102-45 Entities included in the consolidated financial statements
Annex I: About this report.
102-46 Defining report content and coverage of the topic
102-47 List of material topics
102-48 Restatements of information
102-49 Changes in the preparation of reports
102-50 Period covered in the report
102-51 Date of latest report
102-52 Report preparation cycle
FCC Group Materiality Study.
FCC Group Materiality Study.
Reduction of waste generated.
FCC Group Materiality Study.
Annex I: About this report.
2017
Annual
102-53 Contact points for questions regarding the report
rcorporativa@fcc.es
102-54 Declaration of having prepared the report in accordance with GRI Standards
Annex I: About this report.
102-55 GRI content table
102-56 External verification
Annex IV: GRI content table.
Independent verification report attached.
Page
number
–
506
527-531
527-531
493
493
493
–
–
520-522
602-607
523-526
523-526
523-526
599-601
523-526
523-526
545-546
523-526
599-601
–
–
–
Omission
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Confidential
information.
Confidential
information.
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
599-601
Not applicable
611
–
Not applicable
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Content and materiality of the issues by business
Report section/Direct response
Ethics, integrity, compliance and good governance
Environment, Water, Construction and Cement
GRI 103: 2016 management approach
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
GRI 307: Environmental compliance 2016
Corporate Governance Model.
Compliance and due diligence.
Corporate Governance Model.
Compliance and due diligence.
Corporate Governance Model.
Compliance and due diligence.
615
Page
number
Omission
491-494;
527-531
491-494;
527-531
491-494;
527-531
Not applicable
Not applicable
Not applicable
307-1 Noncompliance with environmental laws and regulations
Annex III: Tables relating to environmental issues.
608-610
Not applicable
GRI 419: Socio-economic compliance 2016
419-1 Noncompliance with laws and regulations in the social and economic area
In 2020, FCC Construcción received a fine in this area amounting to 5.5 million dollars.
–
Not applicable
GRI 205: Anti-corruption 2016
205-1 Transactions assessed for risks relating to corruption
Compliance and due diligence.
205-2 Reporting and training with regard to anti-corruption policies and procedures
Compliance and due diligence.
527-531
527-531
205-3 Confirmed incidents of corruption and actions taken
There is no record of confirmed cases of corruption in the FCC Group throughout 2020.
–
Not applicable
Not applicable
Not applicable
Risk control and management systems
Environment, Construction and Cement
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
Risk management in the FCC Group.
Risk management in the FCC Group.
Risk management in the FCC Group.
532-536
532-536
532-536
Not applicable
Not applicable
Not applicable
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Content and materiality of the issues by business
Report section/Direct response
Quality of service and client satisfaction
Environment and Construction
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
GRI 416: Client health and safety
FCC's commitment to its clients.
FCC's commitment to its clients.
FCC's commitment to its clients.
616
Page
number
Omission
590-592
590-592
590-592
Not applicable
Not applicable
Not applicable
416-1 Assessment of the health and safety impacts of the product and service
categories
FCC’s commitment to its clients.
590-592
Not applicable
416-2 Incidents of noncompliance concerning the health and safety impacts of
products and services
No cases of significant non-compliance were detected regarding the impacts on the
health and safety of products and services.
–
Not applicable
Innovation and digital transformation
Environment and Construction
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
The FCC Group: Innovation for sustainable development.
103-2 The management approach and what it consists of
The FCC Group: Innovation for sustainable development.
103-3 Assessment of the management approach
The FCC Group: Innovation for sustainable development.
595-598
595-598
595-598
Not applicable
Not applicable
Not applicable
Fiscal transparency and tax contribution
Water
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
The FCC Group in figures.
Accountability and transparency.
The FCC Group in figures.
Accountability and transparency
The FCC Group in figures.
Accountability and transparency
495-498
Not applicable
495-498
Not applicable
495-498
Not applicable
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Content and materiality of the issues by business
Report section/Direct response
GRI 201: Economic performance
201-1 Direct economic value generated and distributed
The FCC Group in figures.
201-2 Financial implications and other risks and opportunities due to climate change
Risk management in the FCC Group.
Risk management.
201-3 Defined benefit plan obligations and otherretirement plans
Both Cementos Portland Valderrivas and some of the FCC Environmental Services
contracts have this type of benefit.
In the rest of the organisation, there is no company Pension Plan, there is a Retirement
Savings Insurance.
Page
number
Omission
495-498
Not applicable
532-536;
555
Not applicable
–
Not applicable
201-4 Government financial assistance received
Annex IV: Tax information
611
Not applicable
Pollution prevention
Environment and Cement
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
GRI 303: Water and effluents 2018
303-4 Water discharges
GRI 305: Emissions 2016
Pollution management.
Pollution management.
Pollution management.
557-558
557-558
557-558
Not applicable
Not applicable
Not applicable
Annex III: Tables relating to environmental issues
608-610
Not applicable
305-6 Emissions of ozone-depleting substances (ODS).
305-7 Nitrogen oxides (NOx), sulphur oxides (SOx) and other significant atmospheric
emissions.
Pollution management.
Pollution management.
557-558
557-558
Not applicable
Not applicable
GRI 306: Effluents and waste 2016
306-3 Significant spills
Circular economy and waste
Environment, Water, Construction and Cement
GRI 103: Management approach 2016
Annex III: Tables relating to environmental issues.
608-610
Not applicable
103-1 Explanation of the material issue and its coverage
FCC’s contribution to the circular economy.
103-2 The management approach and what it consists of
FCC’s contribution to the circular economy.
103-3 Assessment of the management approach
FCC’s contribution to the circular economy.
542-547
542-547
542-547
Not applicable
Not applicable
Not applicable
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Content and materiality of the issues by business
Report section/Direct response
Page
number
Omission
618
GRI 306: Effluents and waste 2016
306-2 Waste by type and disposal method
GRI 306: Effluents and waste 2016
306-4 Transport of hazardous wastes
Management of water resources
Water
GRI 103: Management approach 2016
FCC’s contribution to the circular economy.
542-547
Not applicable
Annex III: Tables relating to environmental issues
608-610
Not applicable
103-1 Explanation of the material issue and its coverage
Water consumption and management within the Group.
103-2 The management approach and what it consists of
Water consumption and management within the Group.
103-3 Assessment of the management approach
Water consumption and management within the Group.
GRI 303: Water and effluents 2018
303-1 Interaction with water as a shared resource
Water consumption and management within the Group.
303-2 Management of impacts related to water discharges
Water consumption and management within the Group.
303-3 Water abstraction
303-5 Water consumption
Consumption of materials
Water and Construction
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
GRI 301: Materials
301-1 Materials used by weight or volume
301-2 Recycled consumables
Annex III: Tables relating to environmental issues
Water consumption is obtained from the difference between abstracted water and
discharged water, this is 11 million m3.
Consumption of raw materials.
Consumption of raw materials.
Consumption of raw materials.
Consumption of raw materials.
Annex III: Tables relating to environmental issues.
301-3 Products re-used and their packaging materials
Annex III: Tables relating to environmental issues.
548-549
548-549
548-549
548-549
548-549
608-610
–
550
550
550
550
608-610
608-610
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Business linesFinancial StatementsFCC Group Sustainability Report12345A1A2A3Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2020Annual CorporateGovernance Report
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Content and materiality of the issues by business
Report section/Direct response
Energy consumption and energy efficiency
Water and Cement
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
GRI 302: Energy 2016
302-1 Energy consumption within the organisation
302-2 Energy consumption outside the organisation
302-3 Energy intensity
302-4 Reduction of energy consumption
Energy consumption.
Energy consumption.
Energy consumption.
Annex III: Tables relating to environmental issues.
Annex III: Tables relating to environmental issues.
717 GJ/collaborator (average workforce).
Each of the FCC Group areas undertakes initiatives in favour of saving energy and using it
efficiently with different results. For example, the replacement of lamps with more energy
efficient models has led to a saving of 587,000 kWh in Cementos Portland Valderrivas and
5,000 kWh in Matinsa.
619
Page
number
Omission
551-552
551-552
551-552
608-610
608-610
–
–
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
302-5 Reducción de los requerimientos energéticos de productos y servicios
Energy consumption.
551-552
Not applicable
Climate change
Environment, Construction and Cement
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
FCC, facing the challenge of climate change.
103-2 The management approach and what it consists of
FCC, facing the challenge of climate change.
103-3 Assessment of the management approach
FCC, facing the challenge of climate change.
GRI 305: Emissions 2016
305-1 Direct GHG emissions (scope 1)
305-2 Indirect GHG emissions when generating energy (scope 2)
305-3 Other indirect GHG emissions (scope 3)
Metrics and objectives.
Metrics and objectives.
With regard to indirect Scope 3 emissions, as one of its objectives in the Climate Change
Strategy, the company is working every year to quantify them in all its businesses, in order
to establish specific action plans for their reduction. Despite the fact that some areas
calculate these Scope 3 emissions, work is underway to standardise calculation criteria
throughout the Group.
553-556
553-556
553-556
555-556
555-556
–
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
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Content and materiality of the issues by business
Report section/Direct response
305-4 GHG emissions intensity
305-5 Reduction of GHG emissions
Attracting and retaining talent
Environment and Construction
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
GRI 401: Employment 2016
125 tCO2e GJ/collaborator (Scopes 1 + 2 and average workforce).
Distintas iniciativas de reducción de emisiones de GEI han tenido como resultado evitar
21.000 tCO2e en Aqualia y 18.000 tCO2e en el área de Construcción en 2020.
Commitment to talent.
Salary system.
Work organisation.
Social relations.
Commitment to talent.
Salary system.
Work organisation.
Social relations.
Commitment to talent.
Salary system.
Work organisation.
Social relations.
401-1 Employee recruitment and staff turnover
Annex II: Tables relating to social and personnel affairs.
401-2 Benefits provided to full-time employees that are not available for temporary or
part-time employees
Generally speaking, there are no benefits provided for full-time employees that are not
available for part-time or temporary employees.
620
Page
number
Omission
–
–
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
566-569;
573-574;
575; 576
566-569;
573-574;
575; 576
566-569;
573-574;
575; 576
602-607
Not applicable
–
Not applicable
401-3 Parental leave
GRI 402: Employee-company relations
402-1 Minimum notice to be given regarding operational changes
Annex II: Tables relating to social and personnel affairs.
602-607
Not applicable
The notice to be given for operational changes varies depending on the country and the
applicable regulations, as well as the significance of these changes. These usually vary
between one week and 30 days.
–
Not applicable
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Content and materiality of the issues by business
Report section/Direct response
Professional training and development
Professional training and development Construction
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
GRI 404: Training and teaching 2016
Managing by skills.
New ways of learning.
Managing by skills.
New ways of learning.
Managing by skills.
New ways of learning.
404-1 Average hours of training per year per employee
New ways of learning.
404-2 Programmes for improving employee aptitudes and transition aid programmes Managing by skills.
New ways of learning.
404-3 Percentage of employees receiving regular performance and career
development assessment
The percentage of employees receiving regular performance and career development
assessment is not available.
Diversity, equality and inclusion
Water
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
GRI 405: Diversity and equal opportunities 2016
405-1 Diversity in governing bodies and employees
Diversity and equality.
Diversity and equality.
Diversity and equality.
Diversity in the Board of Directors.
Annex II: Tables relating to social and personnel affairs.
405-2 Ratio for basic salary and remuneration for women vs men
Salary system.
621
Page
number
Omission
566;
568-569
566;
568-569
566;
568-569
568-569
566;
568-569
–
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Information not
available.
569-573
569-573
569-573
494;
602-607
573-574
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
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Content and materiality of the issues by business
Report section/Direct response
GRI 406: Non-discrimination
406-1 Cases of discrimination and corrective actions taken
Safety, health and well-being
Environment, Water, Construction and Cement
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
GRI 403: Occupational health and safety 2018
Reports of a labour nature received on the Ethics Channel are processed and investigated
in accordance with the Whistleblowing Channel Procedure in the Group’s Compliance
Model, and use the Protocol for the prevention and eradication of harassment, and
the Code of Ethics and Conduct as a reference. In 2020 no reports were received that
concluded in the existence of discrimination.
Safety, health and well-being.
Safety, health and well-being.
Safety, health and well-being.
403-1 Occupational health and safety management system
Strategy and Culture.
403-2 Hazard identification, risk assessment and the investigation of incidents
Participation and influence.
403-3 Occupational health services
Participation and influence.
403-4 Worker participation, consultation and communication on occupational health
and safety
403-5 Training of workers on health and safety at work
Numerous health and safety committees have been set up in the company in accordance
with legal requirements, including joint bodies between the company and workers’
representatives to inform, communicate, treat and follow up the preventive activity arising
from the implementation of the management systems. The latter also provide for the
existence of similar bodies in those cases where it is not legally required.
The management systems define the training to be received in accordance with the
different profiles in matters of health and safety, which results in the detection of training
needs and requirements annually, which in turn and once approved is reflected in the
corresponding training plans. The essential features are as follows: Preventive training for
the job position, training courses (to undertake responsibilities defined in the system) and
technical training (for prevention technicians and those with basic or intermediate training
in the performance of preventive duties).
Page
number
Omission
–
Not applicable
577-579
577-579
577-579
Not applicable
Not applicable
Not applicable
577
579
579
–
Not applicable
Not applicable
Not applicable
Not applicable
–
Not applicable
403-6 Promoting the health of workers
Healthy Living Project.
579
Not applicable
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Content and materiality of the issues by business
Report section/Direct response
403-8 Workers covered by a management system for health and safety at work
Healthy Living Project.
Developments in the main indexes.
The most common accident in the FCC Group is related to injuries to the musculoskeletal
system.
Developments in the main indexes.
The vast majority of occupational illness is related to problems with the musculoskeletal
system.
623
Page
number
579
578
Omission
Not applicable
Not applicable
578
Not applicable
403-9 Work-related injuries
403-10 Occupational illness and diseases
Contribution and social commitment
Water
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
GRI 204: Procurement practices 2016
FCC and its commitment to society.
FCC and its commitment to society.
FCC and its commitment to society.
582-589
582-589
582-589
Not applicable
Not applicable
Not applicable
204-1 Proportion of spending on local suppliers
FCC’s commitment to its suppliers.
593-594
Not applicable
Promotion of and respect for human rights
Water and Construction
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
103-2 The management approach and what it consists of
103-3 Assessment of the management approach
GRI 407: Freedom of association and collective bargaining
Due diligence with Human Rights.
Due diligence with Human Rights.
Due diligence with Human Rights.
Operations and suppliers in which the right to freedom of association and collective
bargaining may be at risk
Compliance and due diligence.
GRI 408: Child labour
529
529
529
Not applicable
Not applicable
Not applicable
527-531
Not applicable
408-1 Operations and suppliers considered to involve significant risk of child labour
Compliance and due diligence.
527-531
Not applicable
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Content and materiality of the issues by business
Report section/Direct response
GRI 409: Forced or compulsory labour
409-1 Operations and suppliers considered to involve significant risk of forced or
compulsory labour
Compliance and due diligence.
GRI 411: Rights of indigenous peoples
Page
number
Omission
527-531
Not applicable
411-1 Incidents of violations involving rights of indigenous peoples
In 2020, no reports were received regarding violations of the rights of indigenous peoples.
–
Not applicable
GRI 412: Human rights assessment
412-1 Operations subject to human rights reviews or impact assessment
Compliance and due diligence.
412-2 Employee training on human rights policies and procedures
Compliance and due diligence.
412-3 Significant investment agreements and contracts that include human rights
clauses or are subject to human rights assessment
Compliance and due diligence.
Relationship with local communities
Construction
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage
Fostering dialogue: Main stakeholder reporting channels.
103-2 The management approach and what it consists of
Fostering dialogue: Main stakeholder reporting channels.
103-3 Assessment of the management approach
Fostering dialogue: Main stakeholder reporting channels.
GRI 413: Local communities
413-1 Operations with local community engagement, impact assessments and
development programmes.
Within the framework of the assessments made on the management systems for each
of the businesses, possible impacts on local communities are taken into consideration
before work starts on the operations. This analysis includes the participation of local
communities in the process.
413-2 Operations with significant actual or potential negative impacts on local
communities
No operations with significant actual or potential negative impacts on local communities
were detected.
527-531
527-531
527-531
Not applicable
Not applicable
Not applicable
520-522
520-522
520-522
Not applicable
Not applicable
Not applicable
–
–
Not applicable
Not applicable
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Annex VI: table of indicators law 11/2018
625
Law 11/18 Requirement
GENERAL INFORMATION
Business model
Brief description of the group business model (including business environment, organisation
and structure)
Geographical presence
Organisation's objectives and strategies
Reacted GRI standard
Page number
102-1 Name of the organisation.
102-2 Activities, brands, products and services.
102-5 Ownership and legal status.
102-7 Size of the organisation.
102-18 Governance structure.
102-22 Members of the senior governing body and its committees.
102-23 President of the senior governing body.
102-45 Entities included in consolidated financial statements
102-3 Location of headquarters.
102-4 Location of operations.
102-6 Markets served.
102-26 Role of the senior governing body in setting objectives, values and
strategy
491-498; 599-601; 612
497-498; 612
487-490
499-504
Main factors and trends that may affect future growth and development
103-2 The management approach and what it consists of
Company policies
A description of the policies applied by the group regarding these issues [environmental and
social issues, respect for human rights and the fight against corruption and bribery, those
relating to personnel, including measures adopted, where applicable, to promote the principle
of equal treatment and opportunities for women and men, non-discrimination and the inclusion
of persons with disabilities and universal accessibility]
Risk management
103-2 The management approach and what it consists of
Refers throughout the document.
The main risks relating to these issues [environmental and social issues, respect for human
rights and the fight against corruption and bribery, those relating to personnel, including
measures adopted, where applicable, to promote the principle of equal treatment and
opportunities for women and men, non-discrimination and the inclusion of persons with
disabilities and universal accessibility]
102-15 Main impacts, risks and opportunities.
102-29 Identification and management of economic, environmental and
social impacts.
102-30 Effectiveness of risk management processes.
102-31 Appraisal of economic, environmental and social issues.
532-536; 613
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Law 11/18 Requirement
Other
Reacted GRI standard
Page number
Mention in the report of the national, European and international reporting framework used for
the selection of key indicators for the non-financial results included in each of the sections
102-54 Declaration of having prepared the report in accordance with GRI
Standards.
599
1. ENVIRONMENTAL ISSUES
Detailed general information
On current and foreseeable effects of the company's activities on the environment and, where
applicable, health and safety
103: Management Approach.
On environmental assessment and certification procedures
On resources dedicated to the prevention of environmental risks
103: Management Approach.
103: Management Approach.
On the application of the precautionary principle
102-11 Precautionary principle or approach.
On the amount of provisions and guarantees for environmental risks
307-1 Noncompliance with environmental laws and regulations.
539-540
537-538
542
540-541
542
Pollution
Measures to prevent, reduce or repair carbon emissions that seriously affect the environment
(also includes noise and light pollution)
305-6 Emissions of substances that deplete the ozone layer (ODS).
305-7 Nitrogen oxides (NOX), sulphur oxides (SOX) and other significant air
emissions.
303-4 Water discharges.
306-3 Significant spills.
557-558; 608
With regard to noise pollution, the FCC
Group received four sanctions in 2020.
Circular economy, waste prevention and management
Measures for prevention, recycling, re-use, other forms of retrieval and disposal of waste
Actions to combat food waste
301-2 Recycled inputs.
306-2 Waste by type and disposal method.
103: Management Approach.
542-547; 609-610
Due to the type of activity undertaken
by the FCC Group, this has not
been identified as a material issue.
Nevertheless, in those Group centres
that have a dining room for employees,
the external company providing the
service takes measures to optimise
estimates for requirement and reduce
food waste.
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Law 11/18 Requirement
Sustainable use of resources
Water consumption and water supply in accordance with local limitations
Reacted GRI standard
Page number
303-1 Interaction with water as a shared resource.
303-2 Management of impacts related to water discharges.
303-3 Water abstraction.
303-5 Water consumption.
548-549; 609; 618
Raw material consumption and measures taken to improve the efficiency of its use
301-1 Materials used by weight or volume.
Direct and indirect energy consumption
Measures taken to improve energy efficiency
Use of renewable energy
Climate change
Important elements of greenhouse gas emissions generated as a result of the company's
activities, including the use of the goods and services it produces
Measures taken to adapt to the consequences of climate change
302-1 Energy consumption within the organisation.
302-4 Reduction of energy consumption.
302-5 Reduction of energy requirements for products and services.
302-1 Energy consumption within the organisation.
305-1 Direct GHG emissions (scope 1).
305-2 Indirect GHG emissions when generating energy (scope 2).
Recommendations from the Task Force on Climate-Related Financial
Disclosures (TFCD).
201-2 Financial implications and other risks and opportunities due to climate
change.
Recommendations from the Task Force on Climate-Related Financial
Disclosures (TFCD).
550; 609
551-552; 610
551-552; 519
551-552; 610
555-556
553-554
Reduction goals established voluntarily in the medium and long term to reduce greenhouse gas
emissions and the measures adopted for this purpose.
305-5 Reduction of GHG emissions.
Recommendations from the Task Force on Climate-Related Financial
Disclosures (TFCD).
555-556; 619-620
Protecting biodiversity
Measures taken to preserve or restore biodiversity
103: Management Approach.
559-560
Impacts caused by activities or operations in protected areas
304-2: Significant impacts of activities, products and services on biodiversity. 560
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Law 11/18 Requirement
Reacted GRI standard
Page number
2. SOCIAL AND PERSONNEL AFFAIRS
Employment
Total number and distribution of employees by gender, age, country and professional
classification
102-8 Information on employees and other workers.
405-1 Diversity in governing bodies and employees.
563-566; 603-606
Total number and distribution of employment contract modalities
Annual average for indefinite, temporary and part-time contracts by gender, age and
professional classification
Number of dismissals by gender, age and professional classification;
401-1 Employee recruitment and staff turnover.
Average remuneration and developments separated by gender, age and professional
classification or equal value;
102-35 Remuneration policies.
102-36 Processes to determine remuneration.
103: Management Approach.
566; 603-605
606
Salary gap, remuneration for the same job position or the average within the company
405-2 Ratio for basic salary and remuneration for women vs men
573-574; 606
Average remuneration for directors and managers, including variable income, allowances,
compensation, contributions to long-term savings systems and any other income broken down
by gender
102-38 Ratio of total annual salary
Implementation of work disconnection policies
103: Management Approach.
Employees with disabilities
Work organisation
Organisation of working time
Hours lost through absenteeism
405-1 Diversity in governing bodies and employees.
103: Management Approach.
403-2 Types of injury and the frequency rate of accidents, occupational
illness, days lost, absenteeism and the number of fatalities relating to
accidents at work or occupational illness.
Measures aimed at facilitating work-life balance and encouraging the co-responsibility of both
parents
401-3 Parental leave.
103: Management Approach.
Health and safety
Occupational health and safety conditions
403-1 Occupational health and safety management system.
403-2 Hazard identification, risk assessment and the investigation of
incidents.
Work-related accidents, particularly their frequency and severity by gender
403-9: Work-related injuries.
Occupational illness by gender
403-10: Occupational illness and diseases.
573-574
575
572
575-576
578
575-576; 607
577; 579-581
578
578
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Law 11/18 Requirement
Social relationships
Reacted GRI standard
Page number
Organisation of social dialogue, including procedures for informing and consulting personnel
and negotiating with them
402-1 Minimum notice to be given regarding operational changes.
576; 620
Percentage of employees covered by collective agreement by country
102-41 Collective bargaining agreements.
Balance of collective agreements, particularly in the field of health and safety at work
403-4 Worker participation, consultation and communication on
occupational health and safety.
607
577; 622
Training
Policies implemented in the field of training
404-2 Programmes for improving employee aptitudes and transition aid
programmes.
566-569
Total number of hours of training by professional category
404-1 Average hours of training per year per employee.
Accessibility
Universal accessibility for people with disabilities
405-1 Diversity in governing bodies and employees.
Equality
Measures taken to promote equal treatment and opportunities for women and men
Equality plans (Chapter III of Organic Law 3/2007 of 22 March for the effective equality of
women and men), measures adopted to promote employment, protocols against gender
bullying and prejudice; integration and universal accessibility for people with disabilities
103: Management Approach.
405-1 Diversity in governing bodies and employees.
103: Management Approach.
405-1 Diversity in governing bodies and employees.
568
573
569
570
Policy against all types of discrimination and, where applicable, for diversity management
406-1 Cases of discrimination and corrective actions taken.
571; 621
3. NFORMATION ON RESPECT FOR HUMAN RIGHTS
Application of due diligence procedures in human rights matters
Prevention of risks of violation of human rights and, where applicable, measures to mitigate,
manage and repair possible abuses committed
Cases reported involving violation of human rights
102-16 Values, principles, standards and norms of conduct.
02-17 Advisory mechanisms and ethical concerns.
412-2 Training of employees in human rights policies and procedures.
527-529
412-1 Operations subject to human rights reviews or impact assessment.
528-529
102-17 Mechanisms for advising and ethical concerns.
06-1 Cases of discrimination and corrective actions taken.
528-529;
623-624
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Law 11/18 Requirement
Reacted GRI standard
Page number
Promotion of and compliance with the provisions of the essential ILO agreements relating to
respect for freedom of association and the right to collective bargaining
412-1: Operations subject to human rights reviews or impact assessment.
529
Elimination of discrimination in employment and occupation
Elimination of forced or compulsory labour
Effective abolition of child labour
4. INFORMATION CONCERNING THE FIGHT AGAINST BRIBERY AND CORRUPTION
Measures taken to prevent bribery and corruption
Measures to fight money laundering
102-16 Values, principles, standards and norms of conduct.
102-17 Advisory mechanisms and ethical concerns.
205-1 Operations assessed for corruption-related risks.
205-2 Communication and training on anti-corruption policies and
procedures.
205-3 Cases of corruption confirmed and measures taken.
102-16 Values, principles, standards and norms of conduct.
102-17 Advisory mechanisms and ethical concerns.
Contributions to foundations and non-profit organisations
102-13 Membership of associations.
530-531; 615
531
589
5. INFORMATION ABOUT THE COMPANY
The company’s commitments to sustainable development
Impact of the company's activity on employment and local development
Impact of the company's activity on local populations and on the territory
Relationships maintained with those playing a role in local communities and how dialogue is
established with them
413-1 Operations with local community participation, impact assessments
and development programmes.
413-2 Operations with significant real or potential negative impacts on local
communities.
413-1 Operations with local community participation, impact assessments
and development programmes.
413-2 Operations with significant real or potential negative impacts on local
communities.
587-589; 624
584-585; 624
102-43 Approach to stakeholder participation.
413-1 Operations with local community participation, impact assessments
and development programmes.
520-522; 624
Partnership and sponsorship actions
102-12 External initiatives.
590
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Law 11/18 Requirement
Subcontracting and suppliers
Reacted GRI standard
Page number
Inclusion in purchase policy of social, gender equality and environmental issues
103: Management Approach.
In relationships with suppliers and subcontractors, taking their social and environmental
responsibility into account
103: Management Approach.
Supervisory systems, audits and their results
103: Management Approach.
593-594
593-594
The Group has not currently
implemented a supervision or auditing
system for suppliers and contractors on
social, environmental or gender equality
issues. This system is expected to
be developed in the coming business
years.
Consumers
Measures for the health and safety of consumers
Claim systems
Complaints received and their resolution
Tax information
Profits obtained country by country
Corporate income tax paid on profit
Public grants received
416-1 Assessment of the health and safety impacts of the product and
service categories.
103: Management Approach.
103: Management Approach.
103: Management Approach.
103: Management Approach.
201-4 Government financial assistance received.
591
591
592
611
611
611
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632
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A.
1994/0241/VNOF-2021
▪▪
1994/0241/VNOF-2021
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633
▪▪
▪▪
▪▪
▪▪
▪▪
▪▪
▪▪
▪▪
▪▪
▪▪
1994/0241/VNOF-2021
1994/0241/VNOF-2021
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634
A
3
Annual
Corporate
Governance
Report
End date business year in question: 2020
CIF (Tax ID): A-28037224
Corporate Name:
Fomento de Construcciones y Contratas, S.A.
Registered address:
C/ Balmes, 36. 08007 Barcelona
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A. Ownership structure
A.2
List the direct and indirect holders of significant shares as at the reporting date,
excluding directors:
A.1
Fill in the following table about the Company’s capital stock:
Date of most recent
change
Capital stock (€)
Number of shares
Number of voting
rights
09-07-2020
409,106,618
409,106,618
409,106,618
Remarks
Name or corporate name
of the shareholder
% voting rights
attributed to the shares
% voting rights through
financial instruments
Direct
Indirect
Direct
Indirect
Gates III, William H.
-
5.736
Control Empresarial de
Capitales S.A. de C.V.
Nueva Samede
2016, S.L.U.
Esther Koplowitz Romero
de Juseu
61.157
12.993
4.536
-
0.033
4.537
Carlos Slim Helú
-
7.000
-
-
-
-
-
-
-
-
-
-
Total %
of voting
rights
5.736
74.150
4.536
4.570
7.000
Indicate whether there are different share classes with different associated rights:
Yes
No
Remarks
Class
-
Number of
shares
Face value per
share
Number of voting
rights per share
Rights and
obligations
conferred
-
-
-
-
Remarks
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List of indirect holdings:
Indicate the most significant changes in the shareholding structure during the business
year:
636
Most significant changes
On 10 June 2020, Esther Koplowitz Romero de Juseu cancelled, on maturity, all of its debt for a
total amount of 843.4 million euros, which had 60.54 million FCC shares as its guarantee.
Following this agreement, Inversora Carso’s shareholding in FCC is 76.6%, while Esther Koplowitz
holds a 4.6% shareholding and retains four seats on the Board of Directors.
On 15 December 2020, Control Empresarial de Capitales, S.A. de C.V. acquires Inversora Carso,
S.A. de C.V.
Finver Inversiones 2020, S.L.U buys 7% from Control Empresarial de Capitales, S.A. de C.V. of
FCC.
Finver Inversiones 2020, S.L.U. is 100% owned by Inmobiliaria AEG, S.A. de C.V, which in turn is
controlled by Carlos Slim Helú.
Name or corporate
name of the indirect
shareholder
Name or corporate
name of the direct
shareholder
% voting
rights
attributed to
the shares
% voting
rights through
financial
instruments
Total % of
voting rights
Gates III,
William H.
Gates III,
William H.
Cascade
Investment, LLC.
Bill & Melinda
Gates Fundation
Trust
Control Empresarial
de Capitales, S.A.
de C.V.
Dominum Dirección
y Gestión, S.A.
Esther Koplowitz
Romero de Juseu
Nueva Samede
2016, S.L.U.
Carlos Slim Helú
Finver Inversiones
2020, S.L.U
3.986
1.750
8.456
4.536
7.000
-
-
-
-
-
3.986
1.750
8.456
4.536
7.000
Remarks
Regarding the position of CONTROL EMPRESARIAL DE CAPITALES, S.A. DE C.V. (CEC):
Regarding the holdings through intermediaries (i) 18,558,896 shares in Fomento de Construc-
ciones y Contratas S.A. (“FCC”) owned by Nuevas Samede 2016 S.L.U. representing 4.536%
of FCC’s capital stock, this is hereby is stated for the exclusive purposes of art. 24.2.B of RD
1362/2007. In spite of this, CEC does not hold any right to vote on this 4.536%. Therefore, CEC
holds directly and indirectly, only 69.61% of FCC’s voting rights.
Concerning the position of ESTHER KOPLOWITZ ROMERO DE JUSEU:
Esther Koplowitz Romero de Juseu directly controls 0.033% of FCC and 4.537% indirectly
through Nueva Samede 2016, S.L.U., Dominum Desga, S.A. and Ejecución y Organización de
Recursos, S.L.
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A.3
Fill in the following tables on the members of the Company’s Board of Directors,
who have voting rights through their shares in the Company:
Remarks
Name or corporate
name of the director
% voting rights
attributed to the
shares
% voting rights
through financial
instruments
Direct
Indirect
Direct
Indirect
Aboumrad González,
Alejandro
0.074
Colio Abril, Pablo
0.007
Dominum Desga, S.A.
0.000
Dominum Dirección y
Gestión, S.A.
EAC Inversiones
Corporativas, S.L.
8.456
0.000
-
-
-
-
-
Gil Madrigal, Manuel
0.000
0.008
Inmobiliaria AEG, S.A.
de C.V.
Kuri Kaufman,
Gerardo
Proglio, Henri
Rodriguez Torres,
Juan
Samede Inversiones
2010, S.L.U.
Vazquez Lapuerta,
Álvaro
Gómez García,
Antonio
0.000
0.067
0.001
0.077
0.000
0.001
0.005
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
% voting rights
that can be
transferred
through financial
instruments
Direct
Indirect
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total %
of voting
rights
0.074
0.007
0.000
8.456
0.000
0.008
0.000
0.067
0.001
0.077
0.000
0.001
0.005
Total % of voting rights held by the Board of Directors
8.696
List of indirect holdings:
Name or
corporate
name of the
director
Gil Madrigal,
Manuel
Name or
corporate
name of
the direct
shareholder
Tasmania
Inmuebles,
S.L.
% voting
rights
attributed to
the shares
% voting
rights through
financial
instruments
Total % of
voting rights
% voting
rights that
can be
transferred
through
financial
instruments
0.008
-
0.008
-
Remarks
A.4
Indicate, as applicable, the family, commercial, contractual or corporate relations
between the holders of significant shares, insofar as that they are known by the
company, unless they are immaterial or are part of ordinary commercial traffic, with
the exception of those reported in section A.6:
Related name or company
name
Type of relationship
Brief description
-
-
-
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A.5
Indicate, as the case may be, the commercial, contractual or corporate relations be-
tween the holders of significant shares, and the company and/or its group, unless
they are immaterial or are part of ordinary commercial traffic:
Related name or company
name
FCC Construcción y
Carso Infraestructura y
Construcción S.A.B. de C.V.
Type of relationship Brief description
Corporate
Collaboration agreement to jointly
undertake projects in the Americas,
excluding the United Mexican States,
through the constitution of a special
purpose vehicle (SPV): “FCC Américas”.
A.6
Describe the relationships, unless they are immaterial to the two parties, between
significant shareholders or parties represented on the Board and directors, or their
representatives, in the case of corporate directors.
Explain, as applicable, how significant shareholders are represented. Specifically, indicate
the directors appointed on behalf of significant shareholders whose appointment was
promoted by significant shareholders, or who were linked to significant shareholders and/
or entities in their group, specifying the nature of these relationships. In particular, include
the existence, identity and position of Board members, or representatives of directors, of
the listed company, who are, in turn, members of the governing body, or their represent-
atives, in companies that hold significant holdings in the listed company or in entities of
the group of these significant shareholders.
638
Name or company
name of the director
or representative
Name or corporate
name of the related
significant shareholder
Corporate name of the
company of the significant
shareholder group
Alejandro Aboumrad
González
Control Empresarial de
Capitales, S.A. de C.V.
Several subsidiaries of the
shareholder
Antonio Gómez
García
Control Empresarial de
Capitales, S.A. de C.V.
Grupo Carso SAB de C.V.
Relationship
description/
position
Administrator
Alternate
Director
and General
Manager.
Grupo Frisco SAB de CV
Director
Grupo Elementia SAB de
CV
Gerardo Kuri
Control Empresarial de
Capitales, S.A. de C.V.
Several subsidiaries of the
shareholder
Juan Rodríguez
Torres
Control Empresarial de
Capitales, S.A. de C.V.
Minera Frisco
Telesites
Carso Infraestructura y
Construcción S.A.B. de C.V.
(CICSA)
Alfonso Salem Slim
Control Empresarial de
Capitales, S.A. de C.V.
Several subsidiaries of the
shareholder
Director
Director
Director
Non-executive
chairman
Director
Managing
director and/
or director
of various
subsidiary
companies of the
aforementioned
company.
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A.7
Indicate whether the Company has been informed of shareholders’ agreements
that affect it as established in Articles 530 and 531 of the Spanish Corporate En-
terprises Act. If applicable, briefly describe them and list the shareholders affected
by the agreement:
Yes
No
Participants of the shareholders'
agreement
% of capital stock
affected
Brief description
of the agreement
Esther Koplowitz Romero de
Juseu and Control Empresarial
de Capitales, S.A. de C.V.
Control Empresarial de
Capitales, S.A. de C.V., Nueva
Samede 2016, S.L.U., Inversora
Carso S.A. de C.V. and Esther
Koplowitz Romero de Juseu
50.16
72.36
Relevant fact of
27/11/2014 (see
note)
Relevant fact of
05/02/2016 (see
note)
End date of the
agreement, if
applicable
Open-ended
Open-ended
FCC_Annual Report_2020 | Annual Corporate Governance Report | Page 5 of 101
Name or company
name of the director
or representative
Name or corporate
name of the related
significant shareholder
Corporate name of the
company of the significant
shareholder group
Relationship
description/
position
Pablo Colio Abril
Control Empresarial de
Capitales, S.A. de C.V.
Carso Infraestructura y
Construcción S.A.B. de C.V.
(CICSA)
Cafig Constructores, S.A.
de C.V.
Constructora Terminal Valle
de México, S.A. de C.V.
Servicios Terminal Valle de
México, S.A. de C.V.
Servicios CTVM, S.A.
de C.V.
Finver Inversiones 2020,
S.L.
Soinmob Inmobiliaria
Española
Dominium Dirección y
Gestión, S.A.
Director
Director
Director
Director
Director
Director
Director
Director
Inmobiliaria AEG,
S.A. de CV
Control Empresarial de
Capitales, S.A. de C.V.
Samede Inversiones
2010, S.L.,
Nueva Samede 2016,
S.L.U.
EAC Inversiones
Corporativas, S.L.
Nueva Samede 2016,
S.L.U.
Dominum Dirección
y Gestión, S.A.
Nueva Samede 2016,
S.L.U.
Dominum Desga,
S.A.
Nueva Samede 2016,
S.L.U.
-
-
-
-
-
Remarks
-
-
-
-
-
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Remarks
Remarks
Relevant Fact of 27/11/2014: FCC’s controlling shareholder reported that negotiations with Con-
trol Empresarial de Capitales S.A. de C.V., a company owned by Inmobiliaria Carso S.A. de C.V.,
which in turn is controlled by the Slim family, have been successfully completed.
Relevant Fact of 05/02/2016: For the purposes of continuing with the recapitalisation process of
Fomento de Construcciones y Contratas, S.A. (“FCC” or the “Company”) through a new capital
increase of €709,518,762 announced by the Company on 17 December 2015 (the “New Capital
Increase”), the Company has been informed that, Esther Koplowitz Romero de Juseu (“EK”) (and
the companies related to her, Dominum Direccion y Gestión, S.A. (“Dominum”) and Nueva Sa-
mede 2016, S.L.U. (“Nueva Samede”)) have entered into a non-extinguishing modifying novation
contract with Inversora Carso S.A. de C.V. (“I. Carso”) and its subsidiary Control Empresarial de
Capitales, S.A. de C.V. (“CEC”) of the Investment Agreement signed on 27 November 2014 (the
“Novation of the Investment Agreement”).
The Investment Agreement was included in the relevant fact published on 27 November 2014 and
subsequently deposited in the Companies Register of Barcelona.
The main aspects of the Novation of the Investment Agreement are to establish the terms and
conditions for: (a) the incorporation of Nueva Samede into the Novation as a future shareholder of
FCC following the New Capital Increase, (b) the continuation of the FCC recapitalisation process
through the New Capital Increase regulating the subscription commitment of both I. Carso as
Nueva Samede and (c) the modification of certain provisions regarding Corporate Governance, the
share transfer system as well as the removal of the provision regarding the maximum participation
of the parties in the Company’s capital shares.
Indicate whether the Company is aware of the existence of coordinated actions between
its shareholders. If applicable, describe them briefly:
If there has been any change or termination of these agreements or coordinated actions
during the year, expressly indicate:
A.8
Indicate whether there is any natural or legal person who exercises or may exercise
control over the Company pursuant to Article 5 of the Securities Market Law. If
applicable, identify this person:
Yes
No
Name or corporate name
Control Empresarial de Capitales, S.A. de C.V.
Remarks
Yes
No
A.9
Fill in the following tables about the company’s treasury shares:
Participants of
coordinated action
% of capital stock
affected
Brief description
of the coordinated
action
End date of the
coordinated action, if
applicable
-
-
-
-
At year-end:
Number of direct shares
Number of indirect shares (*)
Total % of capital stock
1,544,773
-
Remarks
0.378
(*) Through:
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641
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Name or company name of the direct holder of
the shareholding
-
Total:
Number of direct shares
-
Remarks
Explain any significant changes during the year:
Explain the significant changes
A.10 Describe the conditions and term of the current mandate of the Shareholders’
Meeting to the Board of Directors to issue, repurchase or transfer own shares.
Ordinary General Meeting Resolution of 28 June 2018 (item seven on the agenda):
Fomento de Construcciones y Contratas, S.A. was authorised, as were the Group companies meet-
ing any of the circumstances set out under Article 42.1 of the Code of Commerce, to proceed with
the derivative acquisition of own shares, through purchase and sale transactions swaps or any
others allowed by law, at the price resulting from their stock market price on the day of acquisition,
falling between the maximum and minimum values listed below:
The maximum value shall be calculated by increasing the maximum price for the three months prior
to the moment at which the acquisition takes place by 20 percent.
The minimum value shall be calculated by deducting 20 percent from the minimum price for the three
months prior to the moment at which the acquisition takes place.
In light of this authorisation, the Board, the Executive Committee and the Chief Executive Officer may,
interchangeably, acquire their own shares, under the terms provided for in Article 146 of the Spanish
Corporate Enterprises Act.
The Board of Directors, the Executive Committee and the Chief Executive Officer may also, inter-
changeably, allocate all or part of their own shares acquired as part of the execution of remuneration
schemes that seek or involve the delivery of shares or option rights over shares, pursuant to the
provisions of Article 146.1 of the Spanish Corporate Enterprises Act.
This authorisation is granted for the maximum period legally permitted, pursuant to the limit of the
capital stock applicable according to the regulations in force at the time of acquisition.
The acquisition of shares, which shall be fully paid up, must allow FCC Group companies, who, as
applicable, have acquired them, to set aside provisions for the restricted reserve set out in Article
148.c) of the Spanish Corporate Enterprises Act.
This authorisation voids the authorisation approved by the Board on 23 May 2013.
A.11 Estimated floating capital.
Estimated floating capital
%
12.74
Remarks
A.12
Indicate whether there are any restrictions (statutory, legislative or of any kind) on
the transferability of securities and/or any restrictions on the right to vote.
Specifically state whether there are any type of restrictions that may make it difficult to as-
sume control of the Company through the acquisition of its shares on the market, as well
as those prior authorisation or communication systems that, concerning the acquisition
or transfer of the Company’s financial instruments, are applicable on account of sector
regulations.
Yes
No
Description of the restrictions
-
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A.13
Indicate whether the General Meeting has agreed to adopt neutralisation measures
against a takeover bid under the provisions of Law 6/2007.
Yes
No
If applicable, explain the approved measures and the terms in which the restrictions will
be deemed ineffective:
Explain the measures approved and the terms under which ineffectiveness will occur
A.14
Indicate whether the company has issued securities that are not traded on a regu-
lated market in the European Union.
Yes
No
If applicable, indicate the different classes of shares and, for each class of shares, the
corresponding rights and obligations.
Indicate the different classes of shares
-
Note:
On 8 July 2020, FCC Servicios Medio Ambiente Holding, S.A.U., a company 100% owned by FCC,
issued a Euro-Commercial Paper Programme (ECP) promissory note programme for a maximum
amount of 300 million euros with the following characteristics:
1. Issuer: FCC Servicios Medio Ambiente Holding, S.A.U.
2. Maximum value of the programme: €300 million.
3. Stock Market: Main Securities Market of the Irish Stock Exchange (Euronext Dublin).
4. Programme Dealers: Banca March, Bred Banque Populaire, Société Générale and Crédit Agricole.
642
On 27 November 2019, it was reported as a relevant fact that FCC Servicios Medio Ambiente
Holding, S.A.U., a company fully owned by FCC, approved the issuance of two simple bond (the
“Bonds”) as part of an agreement taken by the Board of Directors on 13 November 2019. The Com-
pany successfully completed the pricing of the two Bond issues, amounting to €600 million paying
annual interest of 0.815% and maturing in 2023; and the amount of €500 million, paying annual
interest of 1.661% and maturing in 2026, respectively.
On 21 March 2019, FCC approved the extension of the Euro-Commercial Paper Programme (ECP)
promissory note programme amount limit from 300 million euros to a maximum amount of 600 mil-
lion euros, with the following characteristics:
1. Issuer: Fomento de Construcciones y Contratas, S.A.
2. Maximum value of the programme: €300 million. €600 million.
3. Stock Market: Main Securities Market of the Irish Stock Exchange (Euronext Dublin).
4. Programme Dealers: Bankia, S.A. and Banco Sabadell, S.A., Santander and Banca March.
On 16 November 2018, FCC reported the registration of a Euro-Commercial Paper Program (ECP)
for a maximum amount of €300 million with the following characteristics as relevant fact number
271621:
1. Issuer: Fomento de Construcciones y Contratas, S.A.
2. Maximum value of the program: €300 million.
3. Stock Market: Main Securities Market of the Irish Stock Exchange (Euronext Dublin).
4. Program Dealers: Bankia, S.A. and Banco Sabadell, S.A.
On 1 June 2017, it was reported as relevant fact and as a continuation to relevant facts Nos. 249540
and 252375, the pricing of two single bond issues by FCC Aqualia, S.A. (subsidiary of Fomento de
Construcciones y Contratas, S.A.), for the sum of €700,000,000 paying annual interest of 1.413%
and maturing in 2022 and for the sum of €650,000,000, paying annual interest of 2.629% and ma-
turing in 2027, respectively. Both issues were secured against specific assets of the FCC Aqualia
Group. Upon approval and registration of the corresponding prospectus, the Bonds were accepted
to trading on the unregulated market (Global Exchange Market) of the Irish Stock Exchange.
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B. General shareholders’ meeting
B.1
Indicate and, where appropriate, describe, whether there are differences with the
system of minimum quorums provided for in the Spanish Corporate Enterprises Act
(LSC) with respect to the quorum of the General Meeting of Shareholders.
Yes
No
% quorum other than the
figure established in Art.
193 Spanish Corporate
Enterprises Act for general
situations
% quorum other than the
figure established in Art.
194 Spanish Corporate
Enterprises Act for the special
cases set out in Art. 194
of the Spanish Corporate
Enterprises Act
Quorum required at 1st call
Quorum required at 2nd call
50.00%
45.00%
50.00%
45.00%
643
Description of the differences
Consolidated Text of the Corporate Bylaws. Resulting text approved by the Ordinary Gen-
eral Meeting of 2 June 2020 and registered in the Barcelona Mercantile Registry in July
2020.
Art. 17. - Constitution of the Meeting
1. The Ordinary or Extraordinary General Shareholders’ Meeting shall be validly constituted, at
the first call, when the shareholders present or represented account for at least fifty percent
(50%) of the subscribed capital with the right to vote; and at the second call, the constitution
of the Meeting shall be valid when the shareholders present or represented account for at least
forty-five percent (45%) of the subscribed capital with the right to vote. Exceptions to the fore-
going are those cases in which, in accordance with the items included on the Agenda, it is not
legally possible to require a higher percentage of capital for the General Meeting to be validly
constituted than what is established by the applicable regulations.
2. Likewise, the percentages mentioned in the previous paragraph shall also be those applicable
so that the Ordinary and Extraordinary General Meeting can validly resolve on the issue of bonds
which, in accordance with the regulations applicable at any given time, are within the powers of
the General Meeting, the increase or reduction of capital, the transformation, merger or spin-off
of the Company, the general assignment of assets and liabilities, the suppression or removal
of the right of first refusal on new shares, the transfer of address abroad and, in general, any
modification of the Articles of Association.
3. If, to validly adopt an agreement with respect to any, or several, items on the agenda of the Gen-
eral Shareholders’ Meeting, pursuant to the applicable legal or statutory regulations, a certain
percentage of the capital stock must be in attendance and this percentage is not reached, or
the consent of the specific shareholders affected is required and they are not present or repre-
sented, the General Shareholders’ Meeting shall be limited to discussing and deciding on items
on the agenda that do not require the attendance of this percentage of the capital stock or the
aforementioned shareholders.
B.2
Indicate and, where appropriate, describe whether there are differences with the
system provided for in the Spanish Corporate Enterprises Act (LSC) for the adoption
of corporate resolutions:
Yes
No
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Describe the differences from the system provided for in the LSC.
644
In particular, the issuance of shares or bonds or securities convertible into shares with the exclusion
of the first right of refusal in favour of the shareholders of the Company shall be approved when more
than fifty percent (50%) of the subscribed capital stock present or represented with voting rights vote
in favour”.
Super majority other than the
figure established in Article
201.2 LSC for the hypotheses
provided for in 194.1 LSC
Other cases of super majority
Therefore, the Company’s internal rules do not contain any provisions relating to the modification of
the Bylaws, other than those provided for by Law.
% established by the entity for
the adoption of resolutions
50.01%
0.00%
Describe the differences
Consolidated Text of the Corporate Bylaws approved at the Ordinary General Meeting on 2
June 2020 and registered with the Mercantile Registry of Barcelona in June 2020.
Art. 26. - Deliberations. Adoption of resolutions. Proceedings
3 […] In particular, the issuance of shares or bonds or securities convertible into shares with the
exclusion of the first right of refusal in favour of the shareholders of the Company shall be approved
when more than fifty percent (50%) of the subscribed capital stock present or represented with
voting rights vote in favour.
Note:
50.01% is calculated against the subscribed capital stock with voting rights.
B.3
Indicate the rules applicable to the modification of the Company’s Bylaws. In par-
ticular, indicate the majorities required to modify the Bylaws, as well as, where ap-
plicable, the rules in place to protect the rights of shareholders in the modification
of the Bylaws.
Pursuant to article 26, section 3, of the Consolidated Text of the Corporate Bylaws approved at the
General Shareholders’ Meeting of 2 June 2020 and registered in the Barcelona Mercantile Registry
in June 2020, the following is established:
“Art. 26. - Deliberations. Adoption of resolutions. Proceedings
[…]
3. Resolutions shall be adopted by a simple majority of the votes of the shareholders present or rep-
resented at the Meeting. A resolution shall be deemed adopted when it obtains more votes in favour
than against the capital present or represented, except in cases where the Act or these Articles of
Association require a qualified majority.
B.4
Indicate the attendance details at the general meetings held in the year to which
this report refers and those in the preceding years:
Date of the
general meeting
2-06-2020
Of which,
Floating capital:
%
attendance
in person
0.205%
0.096%
% by proxy
61.760%
9.732%
8-05-2019
20.082%
70.735%
Of which,
Floating capital:
0.115%
9.223%
28-06-2018
20.119%
69.418%
Of which,
Floating capital:
0.062%
8.307%
28-06-2017
20.261%
68.631%
Of which,
Floating capital:
0.238%
7.520%
Attendance details
% remote voting
Electronic
voting
0.005%
0.005%
0.004%
0.004%
0.001%
0.001%
0.004%
0.004%
Other
Total
28.170%
90.140%
0.007%
9.840%
0.005%
0.005%
0.003%
0.003%
0.030%
0.030%
90.826%
9.347%
89.541%
8.373%
88.926%
7.792%
Remarks
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B.5
Indicate whether there have been any items on the agenda at general meetings
held during the business year that, for any reason, have not been approved by
shareholders.
Explanation of the resolutions that must be submitted to the General Shareholders’ Meeting,
other than those established by Law
Decisions not provided for by Law, and which, according to the Corporate Bylaws, must be taken
by the General Meeting, are as follows:
Yes
No
Article 14 of the Bylaws, sections e), f), l) and o):
Items on the agenda that have not been approved
% vote against (*)
(*) If the non-approval of the item can be traced to a cause other than a vote against,
an explanation shall be provided in the text section and in the “% vote against” column,
“N/A” shall be inserted.
“e) The issuance or creation of new classes or series of shares.”
“f) The issuance of bonds and other securities that, pursuant to the applicable regulations at any
time, are the responsibility of the General Shareholders’ Meeting and the delegation to the
Board of Directors of the power to issue them.”
“l) Transactions whose effect is equivalent to the winding up of the Company.”
“o) The authorisation to acquire own shares within the legal limits.”
B.6
Indicate whether there are any statutory restrictions that establish a minimum
number of shares necessary to attend the General Shareholders’ Meeting, or to
vote remotely:
B.8
Indicate the address and manner of accessing the company’s website for infor-
mation on Corporate Governance and other information on general shareholders’
meetings that must be made available to shareholders on the Company’s website.
Yes
No
Number of shares required to attend the General Shareholders' Meeting
Number of shares required to vote remotely
Remarks
B.7
Indicate whether it has been established that certain resolutions, other than those
established by law, involving an acquisition, disposal, contribution of essential as-
sets to another company or other similar corporate transactions, must be submit-
ted for approval by the General Shareholders’ Meeting.
Yes
No
The FCC website (www.fcc.es) has a section dedicated to Corporate Governance, accessible from
the home page, through the “Shareholders and investors” and “Responsibility and Sustainability”
sections. This website contains information regarding the Company’s regulations on Corporate Gov-
ernance, governing bodies, annual Corporate Governance and remuneration reports, shareholders’
meetings, shareholder agreements, and Ethics and Integrity. Furthermore, using these tabs, under
the heading “General Shareholders’ Meeting”, shareholders can access information on electronic
voting and the electronic forum of shareholders, pursuant to the provisions of Article 539.2 of the
consolidated text of the Spanish Corporate Enterprises Act.
The website is just two clicks from the home page. Its contents are structured and hierarchised,
under quick access headings and all its pages can be printed out.
The pages of this website have been developed pursuant to Level AA of UNE Standard 139803:2012,
which, in turn, is based on the W3C 2.0 Web Content Accessibility Guidelines.
All Priority 1 and Priority 2 requirements have been checked by expert accessibility analysts using
manual accessibility analyses, complemented by different semi-automatic tools, user agents and
technical aids.
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C. Structure of the company’s administration
Name or
corporate
646
C.1
Board of Directors
C.1.1 Maximum and minimum number of directors provided for the Bylaws and the num-
ber defined by the General Shareholders’ Meeting:
Maximum number of directors
Minimum number of directors
Number of directors defined by the Shareholders' Meeting
15
9
14
Remarks
C.1.2 Fill in the following table with Board members:
Name or
corporate
name of the
Represent-
Director
Position on
First appoint-
Last appoint-
Election
director
ative
category
the Board
ment date
ment date
procedure
Date of birth
Proprietary Chairwoman 27-09-2000 02-06-2020 General
10/11/1970
Sharehold-
ers’ Meeting
Resolution
Proprietary Deputy
13-04-2015 08-05-2019 General
10/08/1950
Sharehold-
ers’ Meeting
Resolution
Dominum
Desga, S.A
Esther
Alcocer
Koplowitz
Samede
Inversiones
2010, S.L.U.
Esther
Koplowitz
Romero de
Juseu
Pablo Colio
Abril
Chairwoman
Executive
Chief
Executive
Officer
name of the
Represent-
Director
Position on
First appoint-
Last appoint-
Election
director
ative
category
the Board
ment date
ment date
procedure
Date of birth
Alejandro
Aboumrad
González
Proprietary
Vice
chairman
13-01-2015 08-05-2019 General
26/02/1980
Sharehold-
ers’ Meeting
Resolution
Dominum
Dirección y
Gestión, S.A.
Carmen
Alcocer
Koplowitz
EAC
inversiones
corporativas
Alicia
Alcocer
Koplowitz
Manuel Gil
Madrigal
Antonio
Gómez
García
Inmobiliaria
AEG, S.A.
de CV
Carlos Slim
Helú
Gerardo Kuri
Kaufmann
Proprietary Director
26-10-2004 08-05-2019 General
01/01/1974
Sharehold-
ers’ Meeting
Resolution
Proprietary
Director
30-03-1999 28-06-2017 General
10/10/1971
Sharehold-
ers’ Meeting
Resolution
Independent Director
27-02-2015 08-05-2019 General
1/05/1960
Sharehold-
ers’ Meeting
Resolution
Proprietary
Director
29-06-2016 02-06-2020 General
21/02/1961
Sharehold-
ers’ Meeting
Resolution
Proprietary
Director
13-01-2015 08-05-2019 General
28/01/1940
Sharehold-
ers’ Meeting
Resolution
Executive
Director
13-01-2015 08-05-2019 General
17/12/1983
Sharehold-
ers’ Meeting
Resolution
Henri Proglio
Independent Director
27-02-2015 08-05-2019 General
29/06/1949
Sharehold-
ers’ Meeting
Resolution
12-09-2017 28-06-2018 General
8/06/1968
Sharehold-
ers’ Meeting
Resolution
Juan
Rodríguez
Torres
Proprietary
Director
7-10-2015
02-06-2020 General
5/08/1939
Sharehold-
ers’ Meeting
Resolution
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Name or
corporate
C.1.3 Fill in the following tables on the Board members and their different categories:
name of the
Represent-
Director
Position on
First appoint-
Last appoint-
Election
director
ative
category
the Board
ment date
ment date
procedure
Date of birth
EXECUTIVE DIRECTORS
647
Alfonso
Salem Slim
Álvaro
Vázquez de
Lapuerta
Proprietary
Director
29-06-2016 02-06-2020 Acuerdo
3/11/1961
Junta
General
Accionistas
Independent Director
27-02-2015 08-05-2019 Acuerdo
30/04/1957
Name or corporate
name of the director
Pablo Colio Abril
Junta
General
Accionistas
Total number of directors
14
Indicate any departures, either by resignation or through an agreement reached by the
general meeting, that have occurred on the Board of Directors during the reporting pe-
riod:
Name or
corporate
name of the
director
Category of
the director
at the time of
departure
Date of
most recent
appointment
Departure date
Special
commissions
of which he/
she was a
member
Indicate
whether the
departure
occurred
before the end
of the term
-
-
-
-
-
-
Cause of departure, if before the end of the term of office and other remarks; information on
whether the director has sent a letter to the other members of the board and, regarding depar-
tures of non-executive directors, an explanation or the opinion of the director who has been
dismissed by the general meeting
Position in the
company's
organisational chart
CEO of FCC, Chairman
of FCC Construcción,
Chairman of FCC
Medio Ambiente,
Deputy Chairman
of FCC Servicios
Medioambientales
Holding, S.A.U and
Deputy Chairman of FCC
Medio Ambiente Reino
Unido S.L.U.
Profile
Architect, graduating from the Higher Techni-
cal School of Madrid. He has spent most of
his professional career at FCC, a company to
which he has dedicated more than 25 years.
Within the Group, he has been responsible for
the international expansion of the Industrial
area. Positions he has previously held include
Managing Director of FCC Construcción and
Managing Director of FCC Industrial.
He is the CEO of the FCC Group and a mem-
ber of its Executive Committee, functions that
he combines with those of the Chairman of
FCC Construcción, Chairman of FCC Medio
Ambiente and Deputy Chairman of FCC Servi-
cios Medioambiental Holding, S.A. He is also
a director of the Mexican firm Carso Infrae-
structuras y Construcción (CICSA).
Industrial Engineer graduate from the Univer-
sity of Anáhuac (Mexico). From 2008 to 2010,
he served as purchasing director at Carso In-
fraestructuras y Construcción, S.A.B. de C.V.
From the incorporation of Inmuebles Carso,
S.A.B de C.V., he has been in charge of its
General Management. He is a member of
the board of directors of Minera Frisco SAB.
de C.V., Elementia, S.A., Philip Morris Méxi-
co, S.A. de C.V. and Inmuebles Carso, S.A.B
de C.V. He is the CEO of Cementos Portland
Valderrivas, S.A. and Realia Business, S.A.
Gerardo Kuri
Kaufmann
CEO of Cementos
Portland Valderrivas and
Realia Business
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Total number of executive directors
% of the total Board
2
14.29
Remarks
EXTERNAL PROPRIETARY DIRECTORS
Name or
corporate
name of the
director
Dominum
Desga, S.A.
(Represented
by Esther
Alcocer
Koplowitz)
Name or
corporate name
of the significant
shareholder that he/
she represents or
that has proposed
his/her appointment
Profile
Dominum Dirección
y Gestión, S.A.
Degree in Law, she has completed the Senior Business
Management Program (PADE) at the IESE in Madrid.
Since January 2013, she has served as Chairwoman of
the FCC Group, a member of its Executive Committee and
the Appointments and Remuneration Committee.
She is also a director at Cementos Portland Valderrivas, on
behalf of EAC Medio Ambiente, S.L., Realia, on behalf of
EAC Inversiones Corporativos, S.L., and CaixaBank-Ban-
ca Privada.
The representatives of Dominum Desga, S.A., Samede
Inversiones 2010, S.L.U., Dominum Direction and Man-
agement, S.A. and EAC Inversiones Corporativas, S.L.
maintain a parent-subsidiary relationship.
(See Section A.6 of this Report for a description of the re-
lationships between the director and the significant share-
holders).
648
Name or
corporate name
of the significant
shareholder that he/
she represents or
that has proposed
his/her appointment
Dominum Dirección
y Gestión, S.A.
Name or
corporate
name of the
director
Samede
Inversiones
2010, S.L.U
(Represented
by Esther
Koplowitz
Romero de
Juseu)
Profile
Shareholder in FCC, S.A. through Dominum Dirección y
Gestión, S.A. she is a member of the Board of Directors of
FCC, S.A., and the company’s Deputy Chairwoman. She
is also a director at FCC Environment.
She holds a degree in Philosophy and Arts from the Uni-
versity of Madrid; she has developed her business expe-
rience in the international field as a Director of Veolia and
Vivendi.
She is founder and chairwoman of the Esther Koplowitz
Foundation. Among other acknowledgements, she has
been awarded: the Grand Cross of Civil Merit, the Gold
Medal of the Region of Madrid, the Gold Medal and the
title of Academic of Honour of the Royal Academy of His-
tory, the distinction of Honorary Citizen by the Valencia City
Council, the City of Barcelona Coat of Arms, the Business
Leader of the Year award, granted by the Spanish Cham-
ber of Commerce in the USA, the Blanquerna Prize of the
Generalitat of Catalonia, Madrid Grand Cross of Health-
care, the Gold and Diamond Insignia of the Police Orphans
Foundation, Légion d’Honneur of the French Republic and
The Grand Cross of the Civil Order of Environmental Merit,
awarded by the Spanish Council of Ministers.
The representatives of Dominum Desga, S.A., Samede
Inversiones 2010, S.L.U., Dominum Direction and Man-
agement, S.A. and EAC Inversiones Corporativas, S.L.
maintain a parent-subsidiary relationship.
(See Section A.6 of this Report for a description of the re-
lationships between the director and the significant share-
holders).
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649
Name or
corporate name
of the significant
shareholder that he/
she represents or
that has proposed
his/her appointment
Control Empresarial
de Capitales, S.A.
de C.V.
Name or
corporate
name of the
director
Alejandro
Aboumrad
González
Profile
Industrial Engineer graduate from the University of Anáhu-
ac (Mexico). He has worked in subsidiaries and compa-
nies related to Grupo Carso during the last 15 years, of
which five years he worked at Grupo Financiero Inbursa
in the area of Project Evaluation and Risk Assessment. He
is member of the board of directors of Inmuebles Carso,
S.A.B. of C.V. and Minera Frisco, S.A.B. of C.V., holding
the post of General Manager with the latter. He is a director
at Cementos Portland Valderrivas, S.A. on behalf of Inmo-
biliaria AEG, S.A. de C.V., and Chairman of the Board of
Directors of FCC Aqualia, Chairman of FCC Servicios Me-
dioambiental Holding, S.A.U and Deputy Chairman of the
Board of FCC and Chairman of its Executive Committee.
(See Section A.6 of this Report for a description of the re-
lationships between the director and the significant share-
holders).
Dominum
Dirección y
Gestión, S.A.
(Represented
by Carmen
Alcocer
Koplowitz)
Dominum Dirección
y Gestión, S.A.
Graduate in Law from the Francisco de Vitoria University of
Madrid. She is a director at FCC, S.A.
She is a director at B-1998, S.L. and sits on the Board of
Directors of Cementos Portland Valderrivas, S.A., on be-
half of Meliloto, S.L.
She is a board member of the Esther Koplowitz Foundation.
The representatives of Dominum Desga, S.A., Samede
Inversiones 2010, S.L.U., Dominum Direction and Man-
agement, S.A. and EAC Inversiones Corporativas, S.L.
maintain a parent-subsidiary relationship.
(See Section A.6 of this Report for a description of the re-
lationships between the director and the significant share-
holders).
Name or
corporate name
of the significant
shareholder that he/
she represents or
that has proposed
his/her appointment
Dominum Dirección
y Gestión, S.A.
Name or
corporate
name of the
director
EAC
Inversiones
Corporativas,
S.L.
(Represented
by Alicia
Alcocer
Koplowitz)
Antonio
Gómez García
Control Empresarial
de Capitales, S.A.
de C.V.
Profile
A Law graduate, she started her professional career at
Banco Zaragozano, where she worked for four years in
the Finance Department, at the bank’s treasury desk and
served as a director.
She is a director at FCC and a member of its Executive
Committee. In turn, she is chairwoman of Cementos
Portland Valderrivas, S.A. and a member of its Executive
Committee and its Appointments and Remuneration Com-
mittee.
She is a member of the Innovation Committee, under the
Secretary of State for Science, Technology, and Innova-
tion.
She is also a member of the Board of the Esther Koplowitz
Foundation and the Valderrivas Foundation.
The representatives of Dominum Desga, S.A., Samede
Inversiones 2010, S.L.U., Dominum Direction and Man-
agement, S.A. and EAC Inversiones Corporativas, S.L.
maintain a parent-subsidiary relationship.
(See Section A.6 of this Report for a description of the re-
lationships between the director and the significant share-
holders).
He is a graduate in Industrial Engineering from the Univer-
sidad Iberoamericana. He has been Managing Director of
Grupo Porcelanite, S.A. de C.V., of US Commercial Corp.,
S.A.B. de C.V., and currently holds the position of Manag-
ing Director of Grupo Carso, S.A.B. de C.V. He is a director
of Grupo Frisco S.A.B. de C.V., and a director of Grupo
Elementia S.A.B. de C.V.
(See Section A.6 of this Report for a description of the re-
lationships between the director and the significant share-
holders).
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Name or
corporate name
of the significant
shareholder that he/
she represents or
that has proposed
his/her appointment
Control Empresarial
de Capitales, S.A.
de C.V.
Name or
corporate
name of the
director
Inmobiliaria
AEG, S.A.
de CV
(Represented
by Carlos Slim
Helú)
Profile
Civil Engineer from the National Autonomous University of
Mexico (UNAM). Founder of Grupo Carso, S.A.B. de C.V.,
América Móvil, Grupo Financiero Inbursa, and Inversora
bursátil. He is the owner of Teléfonos de México (Telmex).
He has been Vice-President of the Mexican Stock Ex-
change and President of the Mexican Association of Bro-
kerage Houses.
He was the first Chairman of the Latin American Commit-
tee of the New York Stock Exchange Board of Directors.
He is currently Chairman of the Board of Directors of Car-
so Infraestructuras y Construcción (CICSA), Minera Frisco
and President of Fundación Carlos Slim de la Educación,
A.C. and Fundación Telmex, A.C. In addition, he is a mem-
ber of the Board of Directors of Inmuebles Carso and IDE-
AL.
(See Section A.6 of this Report for a description of the re-
lationships between the director and the significant share-
holders).
Name or
corporate name
of the significant
shareholder that he/
she represents or
that has proposed
his/her appointment
Control Empresarial
de Capitales, S.A.
de C.V.
Name or
corporate
name of the
director
Juan
Rodríguez
Torres
Alfonso Salem
Slim
Control Empresarial
de Capitales, S.A.
de C.V.
650
Profile
Civil Engineer from the Autonomous University of Mexi-
co. He has a full Master’s degree in Operational Planning
and Research from UNAM. He has also completed ad-
ministration studies at IPADE and obtained a diploma in
prestressed concrete in Paris. He founded the Mexican
Business Generation Association. He has been Produc-
tion Manager and Controller of Preesforzados Mexicanos,
S.A. de ICA, and Managing Director of Domit Group in the
footwear sector.
He is currently a director of Minera Frisco, S.A.B. de S.A.
de CV. and of Carso Infraestructura y Construcción, S.A.B.
de C.V. (CICSA) and non-executive chairman of Telesites.
He is a director of Cementos Portland Valderrivas, S.A.,
representing Inmuebles Inseo, S.A. de C.V., a director of
FCC Aqualia and non-executive chairman of Realia.
(See Section A.6 of this Report for a description of the re-
lationships between the director and the significant share-
holders).
He graduated in Civil Engineering from University of An-
ahuac in the class of 80-84. Throughout his profession-
al career, Salem Slim has performed the role of assistant
director of Expansion at Sanborns Hermanos; director of
Shopping Centres at Grupo CARSO; director of Real-Es-
tate at INBURSA; Managing Director of Hoteles Calinda,
Managing Director of Grupo PC Constructores; Managing
Director of IDEAL, and he is currently Deputy Chairman
of the Board of Directors of IDEAL and Chairman of the
Board of Directors and Managing Director of Inmuebles
CARSO. He is also a member of the Board of Directors of
Grupo CARSO; IDEAL; CICSA; Carso Real Estate; Gigante
Grupo Inmobiliario; ELEMENTIA and Gas Natural Fenosa.
(See Section A.6 of this Report for a description of the re-
lationships between the director and the significant share-
holders).
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Total number of proprietary directors
% of the total Board
9
64.29
Remarks
Remarks
INDEPENDENT EXTERNAL DIRECTORS
Name or corporate
name of the director
Manuel Gil Madrigal
Henri Proglio
Álvaro Vázquez de
Lapuerta
Profile
He holds a degree in Law and Business Sciences (E-3) by ICADE and
is a founding partner of the company Tasmania Gestión. In 2000 he
was also founder of the financial company N+1 and has been a board
member of Ezentis, Funespaña, General de Alquiler de Maquinaria
(GAM) and Campofrío, among other companies. During his career he
has also been director of Capital Markets for AB Asesores Bursátiles,
partner of Morgan Stanley and auditor of Arthur Andersen.
A graduate of the Higher School of Business Administration (HEC) in
Paris. He is currently a director of Natixis Banque and of Dassault Avi-
ation. He has also served as Chairman of the energy giant Électricité
de France (2009-2014) and Veolia Environnement (2003-2009), as well
as a board member of FCC, Lagardère Group and Vinci, among other
companies.
He holds a degree in Law and Business Studies (E-3) by ICADE and
is currently a partner of the firms Akiba Partners and Meridia Capital
Partners. He was General Manager for Spain and Portugal at Dresdner
Kleinwort, and CEO and head of Investor Relations at securities firm
BBVA Bolsa. Previously he held various positions at JP Morgan in Mex-
ico, New York, London and Madrid.
Total number of independent directors
% total of the Board
3
21.43
Indicate whether any director qualified as independent receives any amounts or benefits
for any concept other than director remuneration from the company or its group, or main-
tains or has maintained, during the last tax year, a business relationship with the company
or with any company in its group, either in its own name or as a significant shareholder,
director or senior manager of an entity with which he/she maintains or has maintained
this relationship.
None
As applicable, a reasoned statement by the Board shall be included providing the reasons
why it believes that this director can perform his/her duties as an independent director.
Name or corporate name of
the director
Description of the relationship
Reasoned statement
OTHER EXTERNAL DIRECTORS
The other external directors shall be identified and the reasons they cannot be considered
proprietary or independent and their relationships, whether with the Company, its direc-
tors, or its shareholders, shall be detailed:
Company, executive
or shareholder
with whom he/
she maintains a
relationship
Profile
Name or corporate
name of the director
Reasons
Total number of other external directors
% total of the Board
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Remarks
Indicate the changes to the category of each director that, as appropriate, have occurred
during the period:
Name or corporate
name of the director
Change date
Previous category
Current category
-
-
-
-
Remarks
C.1.4 Fill in the following table with information regarding the number of female di-
rectors at the end of the past 4 business years, as well as the category of these
female directors:
Number of female directors
% of the total number of directors for
each category
Business
year t
Business
year t-1
Business
year t-2
Business
year t-3
Business
year t
Business
year t-1
Business
year t-2
Business
year t-3
Executive
Proprietary
Independent
Other External
Total:
0
4
0
0
4
0
4
0
0
4
0
4
0
0
4
0
4
0
0
4
0
0
44.44
44.44
0
0
0
0
0
40
0
0
0
40
0
0
28.57
28.57
26.66
26.66
Remarks
C.1.5 Indicate whether the company has diversity policies in place in relation to the
company’s Board of Directors in terms of issues including age, gender, disability, or
professional training and experience. SMEs, pursuant to the definition contained
in the Account Audit Law, shall report, as a minimum, the policy established in
relation to gender diversity.
Yes
No
Partial policies
If so, describe these diversity policies, their objectives, the measures and the way in
which they were applied and their results during the business year. The specific measures
adopted by the Board of Directors and the Appointments and Remuneration Committee
to achieve a balanced and diverse presence of directors shall also be indicated.
In case the company has no diversity policy in place, explain the reasons for this.
Description of the policies, objectives, measures and manner in which they have been applied,
as well as the results obtained
Article 38.4.h of the Rules of the Board establishes, in accordance with the duties of the Appoint-
ments and Remuneration Committee, the following: “Assist the Board in its role of ensuring that
the selection procedures of its members favour diversity of gender, experience and knowledge
and do not suffer from implicit biases that may imply any discrimination and, in particular, that facili-
tate the selection of female Directors, so that the Company deliberately seeks and includes among
the potential candidates, women who meet the intended professional profile, with the Board hav-
ing to explain, where applicable, through the Annual Corporate Governance Report, the reason
for the scant or non-existent number of female Directors and the initiatives taken to correct this
situation. For the purposes of the foregoing, it must establish a representation objective for the less
represented gender in the Board of Directors and prepare guidelines on how to achieve this aim”.
In 2019, FCC renewed its commitment to the Diversity Charter for the period 2019-2021, a vol-
untary code for the promotion of the core Equality principles. The initiative, promoted by the
Directorate of Justice at the European Commission as part of the development of its anti-dis-
crimination policies, contemplates the implementation of inclusion policies and non-discrimination
programmes at signatory companies.
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C.1.6 Explain the measures that, where appropriate, the Appointments Committee may
have agreed to ensure the selection procedures do not suffer from implicit biases
that prevent the selection of female directors, and to ensure the company delib-
erately seeks and includes among the potential candidates, women who meet the
professional profile sought and make it possible to achieve a balanced presence of
women and men. Also indicate whether these measures include encouraging the
company to have a significant number of female senior executives:
Explanation of the measures
Article 38.4.h of the Rules of the Board establishes, in accordance with the duties of the Appoint-
ments and Remuneration Committee, the following: “Assist the Board in its role of ensuring that
the selection procedures of its members favour diversity of gender, experience and knowledge
and do not suffer from implicit biases that may imply any discrimination and, in particular, that
facilitate the selection of female Directors, so that the Company deliberately seeks and includes
among the potential candidates, women who meet the intended professional profile, with the
Board having to explain, where applicable, through the Annual Corporate Governance Report, the
reason for the scant or non-existent number of female Directors and the initiatives taken to correct
this situation. For the purposes of the foregoing, it must establish a representation objective for
the less represented gender in the Board of Directors and prepare guidelines on how to achieve
this objective”.
The Appointments and Remuneration Committee has not established, to date, specific additional
measures to those contained in Article 38.4.h of the Board’s Regulation, nor objectives other than
those pertaining to the current situation. The percentage of female directors (4) on the Board of
Directors is 28.57 percent.
C.1.7 Explain the conclusions of the Appointments Committee on the verification of
compliance with the director selection policy. And in particular, on how this policy
promotes the objective that in 2020, female directors will account for at least 30%
of the total members of the Board of Directors.
At the General Shareholders’ Meeting of 28 June 2016, four new directors were appointed at the
proposal of the controlling shareholder, Inversora Carso, in use of the powers granted in the share-
holder agreement of 25 February 2016. The mandates of two other directors were also renewed at
the aforementioned meeting.
On 12 September 2017, the Board of Directors appointed Pablo Colio Abril as CEO by co-option.
Subsequently, on 28 June 2018, the General Shareholders’ Meeting agreed to appoint Pablo Colio
Abril, a member of the Board of Directors, as an executive director.
In all six cases, the Appointments and Remuneration Committee issued a favourable report to the
Board of Directors on the suitability of the directors.
To this end, the Appointments and Remuneration Committee has not established, to date, objectives
other than those pertaining to the current situation or additional measures to those contained in
Article 38.4.h of the Board’s Regulation.
As at 31 December 2020, the representation of female directors on the Board of Directors of FCC,
came to 28.57 percent, with Esther Alcocer Koplowitz serving as its non-executive Chairwoman.
C.1.8 Explain, where appropriate, the reasons that proprietary directors have been ap-
pointed at the request of shareholders whose shareholding is less than 3% of
capital stock:
When, despite the measures adopted, as applicable, the number of female directors or
senior executives is low or zero, explain the reasons that justify this:
Name or corporate name of the shareholder
Justification
-
-
Explanation of the reasons
In the 2020 business year, no vacancy has been filled in any senior management position in the
FCC Group, which is why it has not been feasible to hire or appoint any senior executives.
Indicate whether formal requests for presence on the Board from shareholders whose
shareholding is equal to or greater than that of others, at whose request proprietary di-
rectors have been appointed, have not been met. If applicable, explain the reasons that
they have not been addressed:
Yes
No
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Name or corporate name of the shareholder
Explanation
C.1.9 Indicate, whether any powers have been delegated by the Board of Directors to
directors or Board Committees and what these entail:
Name or company name of the director or committee
Brief description
Pablo Colio Abril
All except those that are non-delegable
C.1.10 Identify, as the case may be, the members of the Board that assume the positions
of administrators, representatives of administrators or directors at other compa-
nies that are part of the listed Company’s group:
Name or corporate
name of the director
Corporate name of the
Group company
EAC, Inversiones
Corporativas, S.L.
Cementos Portland
Valderrivas S.A.
Position
Chairmanship
Inmobiliaria AEG, S.A.
de C.V.
Cementos Portland
Valderrivas
Director
Entrusted
with
executive
functions?
No
No
Gerardo Kuri
Kaufmann
Cementos Portland
Valderrivas
Chief Executive Officer
Yes
Juan Rodríguez Torres Cementos Portland
Director
Valderrivas
FCC Aqualia
Álvaro Vázquez de
Lapuerta
Cementos Portland
Valderrivas
Director
Director
Alejandro Aboumrad
González
Cementos Portland
Valderrivas, S.A.
Representative of Inmobiliaria
AEG, S.A.
FCC Aqualia, S.A.
FCC Servicios
Medioambientales
Holding S.A.U
Director and Chairman of the
Board of Directors
Chairman
No
No
No
No
No
Yes
654
Entrusted
with
executive
functions?
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Name or corporate
name of the director
Corporate name of the
Group company
Position
Antonio Gómez García
FCC Américas
Alternate director
Pablo Colio Abril
FCC Aqualia, S.A.
Board Member, Member
of the Audit And Control
Committee, Member of the
Investment Committee and
Member of the Regulatory
Compliance Committee.
FCC Construcción, S.A. Chairman
FCC Environment (UK)
limited
FCC Medio Ambiente
Reino Unido, S.L.U
FCC Medio Ambiente,
S.A.U
FCC Servicios
Medioambientales
Holding, S.A.U
FCC Concesiones,
S.A.U
Guzman Energy O&M,
S.L.
Administrator
Vice chairman
Chairman
Vice chairman
Chairman
Chairman
FCC Austria Abfall
Service AG
Member of the Supervisory
Board
Remarks
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C.1.11 If applicable, list the directors or representatives of corporate directors of your Company,
who are members of the Board of Directors or representatives of corporate directors of
other companies listed on official securities markets other than your Group, of which the
Company has been informed:
Name or corporate name of the
director
Corporate name of the
listed company
EAC Inversiones Corporativas, S.L.
(represented by Esther Alcocer
Koplowitz)
Realia Business
Position
Director
Gerardo Kuri Kaufmann
Realia Business
Chief Executive Officer
Manuel Gil Madrigal
Barón de Ley, S.A.
External director-other
Juan Rodríguez Torres
Realia Business
Non-executive chairman
C.1.13 Indicate the amounts of the following concepts relating to the global remuneration
of the Board of Directors:
Remuneration accrued during the business year in favour of the Board of Directors
(thousands of euros)
Amount of rights accrued by current directors for pension benefits (thousands of
euros)
Amount of rights accrued by former directors for pension benefits (thousands of
euros)
1,945
0
3,151
Remarks
-
Remarks
C.1.14 Identify members of senior management who are not executive directors, and in-
dicate the total remuneration accrued in their favour during the business year:
C.1.12 Indicate and, if applicable, explain whether the Company has established rules on the maxi-
mum number of Boards of Directors on which its directors may sit, identifying, where appro-
priate, where this provision is regulated:
Yes
No
Explanation of the rules and identification of the document where this is regulated
Name or corporate name
Position(s)
Marcos Bada Gutiérrez
Felipe B. García Pérez
Miguel Ángel Martínez Parra
Managing Director of Internal Audit
General secretary
Managing Director of Administration and
Finance
Félix Parra Mediavilla
Managing Director of Aqualia
Number of women in senior management 0
Position(s)
Percentage of total members of senior
management 0%
-
Total Senior Management remuneration (thousands of euros)
1,831.73
Remarks
-
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C.1.15 Indicate whether there has been any change in the Board’s regulation during the
business year:
Yes
No
Description of the changes
The Regulations of the Board of Directors were updated as a result of the amendment of Article
28 of the Corporate Bylaws agreed by the Ordinary General Meeting on 2 June 2020, setting the
minimum number of members of the Board of Directors at nine (9) and the maximum at fifteen (15),
with the General Shareholders’ Meeting being responsible for determining the specific number of
its members.
The minimum and maximum number determined in the Bylaws, set at the aforementioned meet-
ing, establishes that the number of members of the Company’s Board of Directors must be four-
teen (14)
As a consequence of the above, the Board Resolution 26/2020, with a favourable report by the
Audit and Control Committee, amended article 5 of the Board Regulations, setting the number
of members of the Board of Directors of the company at 14, with said article being worded as
follows: “Article 5. Quantitative composition: The Board of Directors will have fourteen (14) mem-
bers”.
C.1.16 Indicate the procedures for the selection, appointment, re-election and removal of
directors. List the competent bodies, the procedures to be followed and the criteria
to be used in each of the procedures:
The General Shareholders’ Meeting is responsible for the appointment and removal of directors. Di-
rectors may be re-elected indefinitely, one or more times, for maximum periods of four years (Article
30.3 of the Bylaws).
Pursuant to Article 29.4 of the Bylaws, in its proposals for the appointment, re-election, ratification
or removal of directors submitted to the General Shareholders’ Meeting and in the appointment
decisions adopted by the Board in the use of its legally attributed powers of co-option, the Board of
Directors shall follow the criteria and guidelines established in this regard in the Rules of the Board
of Directors.
Chapter IV of the Rules of the Board on the “Appointment and Removal of Directors” regulate these
cases:
Article 16. Appointment, ratification or re-election of directors. 1. Proposals for the appointment
or re-election of directors submitted by the Board of Directors for consideration by the General
656
Shareholders’ Meeting and the appointment decisions adopted by the Board in the use of its legally
attributed powers of co-option, shall fall on persons of recognised prestige, solvency, technical com-
petence and experience, and shall be approved by the Board at the proposal of the Appointments
and Remuneration Committee, in the case of independent directors, and after a report from the
Appointments and Remuneration Committee, in the case of other directors. 2. All proposals shall be
accompanied by a justifying report from the Board assessing the competence, experience and mer-
its of the proposed candidate, which shall be attached to the minutes of the General Shareholders’
Meeting or the Board meeting. 3. If a legal person is appointed as a Director, it shall be required to
appoint one natural person to permanently exercise the corresponding duties, who shall be subject
to the requirements of prestige, solvency, technical competence and experience and the system of
prohibitions and incompatibilities indicated in these Rules and the duties of the Director established
in these Rules shall be enforceable in a personal capacity. Corporate directors cannot revoke the
appointment of a representative until they designate a replacement. Likewise, the proposed rep-
resentation by a natural person shall be subject to a report by the Appointments and Remuneration
Committee. 4. From the moment at which the announcement of the General Shareholders’ Meeting
is published, the Board of Directors shall publish, on its website, the following information on the
persons proposed for the appointment or ratification as Directors and, where appropriate, on the
natural person representing the corporate director: (i) their professional and biographical profile; (ii)
other Boards of Directors on which they sit, whether they are listed companies or not; (iii) indication
of the category of director to which they belong as appropriate, indicating, in the case of proprietary
directors, the shareholder promoting their appointment, re-election or ratification or with whom they
have ties; (iv) date of their initial appointment as a director at the Company, as well as subsequent ap-
pointments; (v) shares in the Company and derivative financial instruments whose underlying objects
are shares in the Company, held by the director who is being ratified or re-elected or the candidate
nominated to occupy the position for the first time. This information shall be kept up to date; and (vi)
the reports and proposals from the competent bodies in each case. 5. The secretary of the Board
of Directors shall provide each new director with a copy of the Bylaws, of these Rules, of the FCC
Group’s Code of Ethics, of the Internal Code of Conduct for the Stock Market, the latest individual
and consolidated annual accounts and management reports, approved by the General Sharehold-
ers’ Meeting, the corresponding audit reports and the latest financial and economic information
submitted to the markets. They shall also be provided with the identification of the current account
auditors and their representatives. 6. Each director shall sign a document confirming receipt of this
documentation, that they are aware of its contents and that they faithfully fulfil their duties as a direc-
tor. 7. The Company shall establish orientation programmes that provide new directors with fast and
sufficient knowledge of the Company and its Group as well as the Corporate Governance rules, in
addition to imparting knowledge refresher courses when the circumstances so require.
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Article 17. Duration of the position
1. Directors shall serve in their post during the term established in the Bylaws. 2. Directors appointed
by co-option shall hold their position until the date on which the first General Shareholders’ Meeting
is held. Furthermore, if the vacancy arises once the General Shareholders’ Meeting has been called
and before it is held, the Board of Directors may appoint a director until the next General Sharehold-
ers’ Meeting is held. 3. A director whose mandate is coming to an end or who, for any other reason,
ceases to hold office, may not provide services at a competitor of FCC for a period of two (2) years.
4. The Board of Directors, if deemed appropriate, may dispense with this obligation or shorten its
duration.
Article 18. Re-election of directors
In addition to satisfying the established requirements in terms of appointments established in Article
16 above, prior to any re-election of directors that is submitted to the General Shareholders’ Meet-
ing, the Appointments and Remuneration Committee must issue a report in which the quality of work
and dedication to the position of the proposed directors during the previous term.
Article 19. Departure of directors.
1. Directors shall step down from their posts when the period for which they were appointed comes
to an end or when the General Shareholders’ Meeting decides so in the use of its legally and stat-
utorily conferred powers. 2. Directors shall make their position available to the Board of Directors
and formalise, if the Board deems appropriate, their resignation in the following cases: a) When they
step down from their positions, posts or functions to which their appointment as executive directors
was associated. b) In the case of proprietary directors, when the shareholder at whose request they
were appointed transfers their entire shareholding in FCC or reduces their shareholding to a level
that requires the reduction of the number of proprietary directors. c) When they are affected by any
of the cases of incompatibility or prohibition provided by Law. d) When approved by at least two
thirds (2/3) of the members of the Board: - if, having infringed their obligations as directors, they
are seriously reprimanded by the Board, at the proposal or subject to a report by the Appointments
and Remuneration Committee, or - when their permanence on the Board may place the credit and
reputation of the Company at risk. In this regard, the directors must inform the Board of criminal
cases in which they are named as defendants and the subsequent legal proceedings. In any case,
if any Director is prosecuted or tried for any of the corporate crimes established in Article 213 of
the Spanish Corporate Enterprises Act, the Board shall examine the case as soon as possible and,
based on the specific circumstances, decide whether the director should submit his resignation or
not, providing a reasoned account of this in the Annual Corporate Governance Report. 3. In the
event that a natural person representing a corporate director is affected by any of the cases provided
for in the previous section, this person shall be disqualified from exercising this representation. 4. The
Board of Directors may not propose the removal of any independent director before the end of the
statutory period for which they were appointed, unless there is just cause, identified by the Board
following in a report from the Appointments and Remuneration Committee. In particular, it shall be
understood that there is just cause when the Director had breached the duties inherent to their po-
sition or incurred in any of the circumstances described in Article 6.2.a) of these Regulations, which
657
prevent their appointment as an independent director. The removal of independent directors may
also be proposed as a result of takeovers, mergers or similar corporate transactions that involve a
change in the capital structure of the Company, when these changes in the structure of the Board are
attributable to the proportionality of the number of proprietary directors and independent directors
in relation to the capital represented by the proprietary directors and the remainder of the capital
stock. 5. When either by resignation or for any other reason, a director steps down from his/her post
before the end of the corresponding term, an explanation shall be provided in writing sent to all the
members of the Board, notwithstanding his/her resignation being communicated as a relevant fact
and the reason for the resignation being reported in the Annual Corporate Governance Report. In
particular, if the resignation of the Director is due to the fact that the Board has taken significant or
repeated decisions, concerning which the director has made serious reservations and as a conse-
quence of which, he/she decides to resign, in the letter of resignation addressed to other members,
this circumstance shall be expressly stated.
C.1.17 Explain the extent to which the annual assessment of the Board has resulted in
significant changes to your internal organisation and the procedures applicable to
your activities:
In 2020, no shortcomings have been detected that make an action plan necessary.
Description modifications
Describe the assessment process and the areas assessed by the Board of Directors
assisted, where appropriate, by an external consultant, regarding the functioning and
composition of the Board and its committees and any other area or aspect that has been
subject to assessment.
The Board of Directors of Fomento de Construcciones y Contratas, S.A. (hereinafter, the Compa-
ny) issued a report assessing the quality and efficiency of its functioning, and the functioning of its
Committees, during the 2020 business year, with a view to complying with the duties imposed by
Article 34.9 of the Rules of the Board of Directors, through which recommendation 36 of the Code of
Good Governance for Listed Companies published by the CNMV on 18 February 2015, Article 529
nonies of the Spanish Corporate Enterprises Act and the instructions of Technical Guide 3/2017 of
the CNMV published in June 2017 was introduced.
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The report was examined and approved by the Company’s Board of Directors, which in accordance
with the aforementioned Article 34.9 of the Regulations of the Board is the body responsible for
assessing the quality and efficiency of its own functioning, at its meeting on 19 January 2021. In pre-
paring the report, all the members of the Board of Directors were involved and actively participated,
taking into consideration the comments, assessments, opinions and suggestions expressed as part
of this process by all of them.
For the 2020 financial report, the self-assessment process was performed assessing the different
aspects that affect the functioning, efficiency and quality of the actions taken and decisions made by
the Board of Directors, as well as the contribution of its members to the exercise of the duties and
achievement of the aims assigned to the Board.
Furthermore, the respect and compliance by the Board of Directors and its members for the statu-
tory precepts, the Rules of the Board of Directors and, in general, the rules of Good Governance of
Listed Companies have been taken into account.
C.1.18 Breakdown, for business years in which the assessment has been aided by an
external consultant, of the business relationships that the consultant or any com-
pany in its Group maintains with the Company or any company in its Group.
The information and advice of the internal services of the Company has been provided, without
such advice being received from external consultants.
C.1.19 Indicate the cases in which directors are required to resign.
Consolidated text of the Regulation of the Board of Directors following the modifications of 2 June
2020 and registered in the Mercantile Registry on 13 November 2020).
Article 19. Departure of directors
1. Directors shall step down from their posts when the period for which they were appointed comes
to an end or when the General Shareholders’ Meeting decides so in the use of its legally and
statutorily conferred powers.
2. Directors shall make their position available to the Board of Directors and formalise, if the Board
deems appropriate, their resignation in the following cases:
a) hen they step down from their positions, posts or functions to which their appointment as
executive directors was associated.
b) In the case of proprietary directors, when the shareholder at whose request they were ap-
pointed transfers their entire shareholding in FCC or reduces their shareholding to a level that
requires the reduction of the number of proprietary directors.
658
c) When they are affected by any of the cases of incompatibility or prohibition provided by Law.
d) When approved by at least two thirds (2/3) of the members of the Board: - if, having infringed
their obligations as directors, they are seriously reprimanded by the Board, at the proposal
or subject to a report by the Appointments and Remuneration Committee, or - when their
permanence on the Board may place the credit and reputation of the Company at risk. In
this regard, the directors must inform the Board of criminal cases in which they are named as
defendants and the subsequent legal proceedings. In any case, if any director is prosecuted
or tried for any of the corporate crimes established in Article 213 of the Spanish Corporate
Enterprises Act, the Board shall examine the case as soon as possible and, based on the
specific circumstances, decide whether the director should submit his resignation or not,
providing a reasoned account of this in the Annual Corporate Governance Report.
3. In the event that a natural person representing a corporate director is affected by any of the
cases provided for in the previous section, this person shall be disqualified from exercising this
representation.
4. The Board of Directors may not propose the removal of any independent director before the end
of the statutory period for which they were appointed, unless there is just cause, identified by the
Board following in a report from the Appointments and Remuneration Committee. In particular, it
shall be understood that there is just cause when the director had breached the duties inherent
to their position or incurred in any of the circumstances described in Article 6.2.a) of these Regu-
lations, which prevent their appointment as an independent director. The removal of independent
directors may also be proposed as a result of takeovers, mergers or similar corporate transac-
tions that involve a change in the capital structure of the Company, when these changes in the
structure of the Board are attributable to the proportionality of the number of proprietary directors
and independent directors in relation to the capital represented by the proprietary directors and
the remainder of the capital stock.
5. When either by resignation or for any other reason, a director steps down from his/her post before
the end of the corresponding term, an explanation shall be provided in writing sent to all the mem-
bers of the Board, notwithstanding his/her resignation being communicated as a relevant fact
and the reason for the resignation being reported in the Annual Corporate Governance Report. In
particular, if the resignation of the Director is due to the fact that the Board has taken significant
or repeated decisions, concerning which the Director has made serious reservations and as a
consequence of which, he/she decides to resign, in the letter of resignation addressed to other
members, this circumstance shall be expressly stated.
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C.1.20 Are super majorities, other than those provided for by law, required for any type of
decision?
C.1.23 Indicate if the Bylaws or rules of the Board establish a limit on mandates or other
more stringent requirements in addition to those legally provided for independent
directors, with the exception of those established in the regulations:
Yes
No
If applicable, describe the differences.
Description of the differences
-
Yes
No
Additional requirements and/or maximum number of mandates.
C.1.21 Explain whether there are specific requirements, other than those applicable to all
directors, to be appointed as Chairman of the Board of Directors.
Yes
No
C.1.24 Indicate whether the Bylaws or rules of the Board of Directors establish specific
rules for the delegation of the votes of directors to other directors, the applicable
procedure and, in particular, the maximum number of delegations that may be
made to the same director, as well as if any limits have been established on the
categories to which it is possible to delegate, beyond the limits imposed by the
legislation. As applicable, describe these rules briefly.
Description of the requirements
There are no formal procedures for the delegation of votes on the Board of Directors.
C.1.22 Indicate whether the bylaws or the rules of the board establish a limit on the age
of directors:
Yes
No
Age limit
Chairman
Chief Executive Officer
Director
Remarks
C.1.25 Indicate the number of meetings held by the Board of Directors during the busi-
ness year. Furthermore, indicate, where appropriate, the times that the Board has
met without the presence of the Chairman. In this calculation, proxies granted with
specific instructions shall be considered as attendance.
Number of Board meetings
Number of Board meetings without the Chairman's attendance
9
0
Remarks
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660
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Indicate the number of meetings held by the coordinating director with other directors,
without the attendance or representation of any executive director:
Number of meetings
-
In terms of the number of meetings held, only face-to-face attendance has been taken into
account, since no proxies were made with specific instructions.
Remarks
Remarks
the Board for preparation have been certified previously:
C.1.27 Indicate whether the individual and consolidated annual accounts submitted to
Indicate the number of meetings held by the different Board Committees during the busi-
ness year:
Number of executive committee meetings
Number of audit committee meetings
Number of appointments and remuneration committee meetings
Number of committee meetings ______
8
8
7
-
Yes
No
Identify, where appropriate, the person(s) who has/have certified the company’s individual
and consolidated annual accounts for their preparation by the Board:
Name
Pablo Colio Abril
Miguel Martínez Parra
Juan José Drago Masiá
Position
Chief Executive Officer
Managing Director of Administration and Finance
Managing Director of Administration
Remarks
Remarks
C.1.26 Indicate the number of meetings held by the Board of Directors during the year
and the attendance details of its members:
Number of meetings at which at least 80% of directors were in attendance
% of face-to-face attendance divided by total votes during the business year
Number of meetings with the face-to-face attendance, or proxies made with
specific instructions, of all directors
% of votes cast with face-to-face attendance and proxies made with specific
instructions, divided by total votes during the business year
9
90.48%
0
90.48%
C.1.28 Explain the mechanisms, if any, established by the Board of Directors to ensure
that the financial statements submitted by the Board of Directors to the general
shareholders’ meeting are drawn up in accordance with accounting regulations.
The duties of the Audit and Control Committee include, but are not limited to, reviewing
the preparation of the financial and economic information that FCC Group publishes pe-
riodically. This duty acquires special relevance in the case of annual information, in such
a way that, prior to the preparation of the annual accounts by the Board of Directors,
the Audit and Control Committee examines these accounts extensively and requests the
external auditor’s participation on the Committee to present the conclusions of its review
work.
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Thus, once prepared by the Board, the external auditor’s report will not contain any res-
ervations.
C.1.29 Does the secretary of the Board have director status?
Yes
No
If the secretary does not have director status, fill in the following table:
Name or corporate name of the secretary
Francisco Vicent Chuliá
Representative
_
Remarks
C.1.30 Indicate the specific mechanisms established by the Company to preserve the
independence of the external auditors, as well as, if applicable, the mechanisms
to preserve the independence of financial analysts, investment banks and rating
agencies, including how they have implemented the legal provisions in practice.
To this end, Article 37. 5 of the Rules of the Board states that “The primary duty of the Audit and
Control Committee shall be to support the Board of Directors in its oversight tasks, by periodically
reviewing, among others, the process of preparing financial and economic information., its internal
controls and the independence of the external auditor. In particular, by way of example, and without
prejudice to other tasks entrusted to it by the Board of Directors, the Audit and Control Committee
shall be responsible for:
a) Informing the General Shareholders’ Meeting about the issues raised in relation to the matters
within its remit and, in particular, the outcome of the audit, explaining how it has contributed to the
integrity of the financial information and the role that the Committee has played in that process.
b) Serve as a channel of communication between the Board of Directors and the Company’s external
auditor, assessing the results of each audit. The external auditor shall also: (i) submit proposals
for the selection, appointment, re-election and replacement of the account auditor to the Board
of Directors, assuming responsibility for the selection process, pursuant to the provisions of EU
regulations, as well as the conditions under which they were contracted; (ii) regularly gather infor-
mation from the external auditor on the audit plan and the results of its performance, in addition
661
to maintaining its independence in the performance of its duties and verifying that Senior Man-
agement takes its recommendations into account; (iii) discuss the significant weaknesses of the
internal control system detected in the development of the audit with the Company’s external
auditor, without compromising its independence. To this end, and where appropriate, the Audit
and Control Committee may submit recommendations or proposals to the Board of Directors
and the corresponding monitoring period. (iv) establish the appropriate relationships with the Ex-
ternal Auditor to receive information on issues that may pose a threat to their independence, for
consideration by the Committee, and any other relating to the process of performing Accounts
Audits and, where appropriate, the authorisation of services other than those prohibited, under
the terms provided for in the regulations governing Account Auditing activities on the system of
independence, as well as any other communications provided for in the Account Auditing legisla-
tion and in the audit regulations; (v) ensure the independence of the external auditor, establishing,
in particular, appropriate measures: 1) so that the contracting of advisory and consulting services
with the auditor or companies in its Group does not pose a risk to its independence, to which end
the Committee shall request and receive from the auditor each year a declaration of its independ-
ence in relation to the Company or entities linked to it directly or indirectly, as well as the detailed,
individual information of any type of additional services provided and the corresponding fees re-
ceived from these entities by the external auditor or by the persons or entities linked to it, pursuant
to the provisions of the regulatory regulations on Account Auditing activities, and 2) so that the
Company can communicate the change in auditor as a relevant fact to the CNMV and accompany
this communication with a statement on any possible disagreements with the outgoing auditor
and, as applicable, their nature, and in case of the resignation of the external auditor, examine the
underlying circumstances; and (vi) encourage the Company’s auditor to assume responsibility for
audits of other Group companies.
c) Each year, prior to the issuance of the account auditing report, issue a report that expresses an
opinion on whether the independence of the auditors or audit firms has been compromised. This
report shall contain, in any case, a reasoned assessment on the provision of each and every one of
the additional services referred to in section b)v)1) above, taken individually and as a whole, other
than the legal audit and in relation to the system of independence or the regulations governing the
account auditing activities.
d) The supervision of the Company’s Internal Audit services that ensure the proper functioning of
the information and internal control systems, with the person responsible for the Internal Audit
function being required to present his/her annual work plan to the Committee and directly inform
this body of any incidents that occur in the performance of his/her duties and submit a report on
his/her activities at the end of each year.
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C.1.31 Indicate whether during the business year, the Company has changed its external
auditor. If applicable, identify the incoming and outgoing auditor:
Yes
No
Outgoing auditor
Incoming auditor
The General Shareholders’ Meeting approved at its meeting of 2 June 2020, at the proposal of the
Board of Directors, the appointment of Ernst&Young, S.L. as auditors of FCC and its consolidated
group for the business years 2021, 2022 and 2023.
Remarks
If there have been disagreements with the outgoing auditor, explain the nature of these:
Yes
No
Explanation of disagreements
C.1.32 Indicate whether the audit firm performs other work for the Company and/or its
Group other than those inherent to audits and, in that case, state the fees received
for this work and the percentage they represent of the fees billed to the Company
and/or its Group:
Yes
No
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e) Supervise and analyse the effectiveness of the Company’s internal control and of the risk control
and management policy approved by the Board of Directors, ensuring that it identifies, as a min-
imum: (i) the different types of risks faced by the Company, including financial or economic risks,
contingent liabilities and other off-balance sheet risks; (ii) the determination of the level of risk that
the Company considers acceptable; (iii) the measures planned to mitigate the impact of the risks
identified, should they materialise; and (iv) the information and internal control systems that will be
used to control and manage the aforementioned risks, including contingent liabilities or off-bal-
ance sheet risks, and submit this to the Board for approval.
f) Supervise the process of preparing and presenting individual and consolidated annual accounts
and management reports, and the periodic financial information that is disclosed to the markets,
and submit recommendations or proposals to the Board of Directors with a view to safeguarding
their integrity; ensuring compliance with the legal requirements and the correct application of gen-
erally accepted accounting principles, informing the Board of Directors, before the adoption by the
latter of the following resolutions: (i) financial information that, given its status as a listed company,
the Company is required to publish periodically, ensuring that the interim accounts are prepared
using the same accounting criteria as annual accounts and, to that end, consider the suitability of
a limited review of the Company’s external auditor; and (ii) the creation or acquisition of interests
in special purpose entities or those registered in countries or territories that are considered tax ha-
vens, as well as any other transactions or operations of a similar nature that, given their complexity,
could undermine the transparency of the FCC Group.
g) In relation to information and internal control systems: (i) supervise the preparation process and
the integrity of the Company’s financial information and, where appropriate, the Group’s financial
information, ensuring compliance with regulatory requirements, the adequate definition of the con-
solidation perimeter and the correct application of accounting criteria; (ii) periodically supervise the
internal control and risk management systems, including tax risks, ensuring that the main risks are
properly identified, managed and disclosed; (iii) ensure the independence and effectiveness of the
Internal Audit function, proposing the selection, appointment, re-election and removal of the head
of the Internal Audit service, as well as the budget of this service, receiving periodic information
about its activities and verifying that Senior Management takes into account the conclusions and
recommendations in its reports; periodically receive information from the Response Committee
and the Management Control and Risk Management Division, respectively, on the performance of
their activities and the operation of internal controls; and (v) ensure that internal codes of conduct
and corporate governance rules comply with regulatory requirements and are appropriate for the
Company, in addition to reviewing compliance, by people affected by these codes and rules of
governance, of their obligations to inform the Company.
h) Issue the reports and proposals requested by the Board of Directors or by the Chairman of the
Board of Directors and those deemed appropriate in the proper performance of their duties and,
in particular, (i) issue a report on the proposed modification of this Regulation, pursuant to the
provisions of Article 4.3; (ii) make decisions in relation to the requests for information that directors,
pursuant to the provisions of Article 26.3 of these Rules, submit before this Committee; and (iii)
request, where appropriate, the inclusion of items on the agenda of Board meetings under the
conditions and deadlines provided for in Article 34.3 of these Rules.”
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Company
Group
companies
Value of work other than audits (thousands of
euros)
Value of work other than audits/Value of audit
works (in %)
0
0.00
20
0.57
Total
20
0.53
Number of business years audited by the
current audit firm/Number of business years
that the Company or its Group have been
audited (in %)
Individual
61.29%
Consolidated
61.29%
Remarks
The Company and the FCC Group has been audited by Deloitte, S.L. since 2002. Previously,
starting in 1990, the Company and the Group was audited by Arthur Andersen, a firm that
disappeared worldwide in 2002, becoming part of Deloitte.
Remarks
C.1.33 Indicate whether the audit report of the previous year’s annual accounts includes
reservations or qualifications. As applicable, indicate the reasons given to share-
holders at the General Shareholders’ Meeting by the Chairman of the Audit Com-
mittee to explain the content and scope of these reservations or qualifications.
C.1.35 Indicate and, as applicable, describe if there is a procedure for directors to receive
the necessary information to prepare meetings with administrative bodies with
sufficient time:
Yes
No
Explanation of reasons and direct link to the document made available to shareholders at the
time of the call in relation to this matter
C.1.34 Indicate the number of business years that the current audit firm has been con-
tinuously auditing the Company’s individual and/or consolidated financial state-
ments. Furthermore, indicate the percentage that the number of years audited by
the current audit firm accounts for in terms of the total number of years in which
the annual accounts have been audited:
Number of uninterrupted business years
19
19
Individual
Consolidated
Yes
No
Describe the procedure
Rules of the Board of Directors. Article 26. Information and inspection powers
“1. In the performance of their duties, every director has the duty to demand and the right to ob-
tain from the Company, the adequate and necessary information that will allow them to fulfil their
obligations concerning all aspects of FCC and its subsidiaries and investees, whether national
or foreign. To this end, they may examine the documentation deemed necessary, make contact
with those responsible for the affected departments and visit the corresponding facilities. 2. To
refrain from disturbing the ordinary management of the FCC Group, the exercise of the powers
of information shall be channelled through the Chairman, who shall respond to the director’s re-
quests, directly providing the information or offering the details of the corresponding contacts at
the corresponding organisational level. 3. If the request for information is denied, delayed or incor-
rectly responded to, the requesting director may repeat their request before the Audit and Control
Committee, and, once the Chairman and the requesting director have provided their reasons, this
Committee shall decide how to proceed for the purposes mentioned above. 4. The requested
information may only be denied when, in the opinion of the Chairman and the Audit and Control
Committee, it is unnecessary or harmful to the Company’s corporate interests. This refusal shall
not apply when the request has been supported by the absolute majority of the Board members”.
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C.1.36 Indicate whether the company has established rules obliging requiring directors to
disclose and, where appropriate, to resign when situations arise that affect them,
whether or not this is related to their actions in the company itself, which could be
harmful to the credit and reputation of the company:
Yes
No
Explain the rules
Rules of the Board of Directors. Article 25. Information duties of Directors.
Directors shall inform the FCC Appointments and Remuneration Committee, through the Corpo-
rate Responsibility Department or any other that may replace it, of the following points: d) Legal,
administrative or other claims that, given their importance, could seriously affect the reputation of
FCC. e) In general, any circumstance or situation that may be relevant to their performance as an
FCC Director.
Article 19. Departure of the Director.
1. Directors shall step down from their posts when the period for which they were appointed
comes to an end or when the General Shareholders’ Meeting decides so in the use of its legally
and statutorily conferred powers.
2. Directors shall make their position available to the Board of Directors and formalise, if the Board
deems appropriate, their resignation in the following cases: a) When they step down from their
positions, posts or functions to which their appointment as executive directors was associat-
ed. b) In the case of proprietary directors, when the shareholder at whose request they were
appointed transfers their entire shareholding in FCC or 18 reduces their shareholding to a level
that requires the reduction of the number of proprietary directors. c) When they are affected by
any of the cases of incompatibility or prohibition provided by Law. d) When approved by at least
two thirds (2/3) of the members of the Board: - if, having infringed their obligations as directors,
they are seriously reprimanded by the Board, at the proposal or subject to a report by the
Appointments and Remuneration Committee, or - when their permanence on the Board may
place the credit and reputation of the Company at risk. In this regard, the directors must inform
the Board of criminal cases in which they are named as defendants and the subsequent legal
proceedings. In any case, if any Director is prosecuted or tried for any of the corporate crimes
established in Article 213 of the Spanish Corporate Enterprises Act, the Board shall examine
the case as soon as possible and, based on the specific circumstances, decide whether the
director should submit his resignation or not, providing a reasoned account of this in the Annual
Corporate Governance Report.
Explain the rules
3. In the event that a natural person representing a corporate director is affected by any of the
cases provided for in the previous section, this person shall be disqualified from exercising this
representation.
4. The Board of Directors may not propose the removal of any independent director before the
end of the statutory period for which they were appointed, unless there is just cause, identified
by the Board following in a report from the Appointments and Remuneration Committee. In
particular, it shall be understood that there is just cause when the director had breached the
duties inherent to their position or incurred in any of the circumstances described in Article
6.2.a) of these Regulations, which prevent their appointment as an independent director. The
removal of independent directors may also be proposed as a result of takeovers, mergers or
similar corporate transactions that involve a change in the capital structure of the Company,
when these changes in the structure of the Board are attributable to the proportionality of the
number of proprietary directors and independent directors in relation to the capital represented
by the proprietary directors and the remainder of the capital stock.
5. When either by resignation or for any other reason, a director steps down from his/her post
before the end of the corresponding term, an explanation shall be provided in writing sent to
all the members of the Board, notwithstanding his/her resignation being communicated as a
relevant fact and the reason for the resignation being reported in the Annual Corporate Gov-
ernance Report. In particular, if the resignation of the director is due to the fact that the Board
has taken significant or repeated decisions, concerning which the director has made serious
reservations and as a consequence of which, he/she decides to resign, in the letter of resigna-
tion addressed to other members, this circumstance shall be expressly stated”.
C.1.37 Indicate, unless special circumstances have arisen which have been recorded in
the minutes, whether the board has been informed or has otherwise become
aware of any situation affecting a director, whether or not this is related to his or
her performance in the company itself, which could be harmful to the credit and
reputation of the company:
Yes
No
Director's name
Nature of the situation
Remarks
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27 July, the National Securities Market Commission communicated, through a relevant fact, that the
takeover proposed by Control Empresarial de Capitales, S.A. de C.V. involving 100% of the capital
stock of Fomento de Construcciones y Contratas, S.A., had been accepted for 97,211,135 shares
representing 48.30% of the shares included in the bid and 25.66% of the capital stock of Fomento
de Construcciones y Contratas, S.A.
On 3 December 2020, the CNMV was informed by means of a Notification of Major Holdings of the
reverse merger by absorption dated 30 June 2020, through which Inversora Carso, S.A. de C.V. is
acquired by Control Empresarial de Capitales, S.A. de C.V. (CEC). CEC controls 100% of Dominum
Dirección y Gestión, S.A.
On 3 December 2020, the CNMV was informed by means of a Notification of Major Holdings that the
company Nueva Samede 2016, S.L.U. is 100% controlled by Esther Koplowitz Romero de Juseu.
On 3 December 2020, by means of a Notification of Major Holdings to the CNMV, it was reported
that Esther Koplowitz Romero de Juseu directly controls 0.033% of FCC and 4.536% of FCC indi-
rectly through Nueva Samede 2016, S.L.U.
On 15 December 2020, the CNMV was informed by means of a Notification of Major Holdings that
Finver Inversiones 2020, S.L.U. indirectly owns 7% of FCC. This company is 100% owned by Inmo-
biliaria AEG, S.A. de C.V. which in turn is controlled by Carlos Slim Helú.
C.1.39 Identify individually, when referring to directors, and on an aggregate basis for
other cases and indicate, in detail, the agreements between the Company and its
administrative and management positions or employees concerning compensation,
guarantee or shield clauses, when they resign or are dismissed improperly or if
the contractual relationship comes to an end as a result of a takeover bid or other
transactions.
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In the above case, indicate whether the Board of Directors has examined the case. If the
answer is yes, state the reasons why, in light of the specific circumstances, it has taken
any action, such as opening an internal investigation, requesting the resignation of the
director or proposing the director’s dismissal.
Also indicate whether the board’s decision has been subject to a report from the appoint-
ments committee.
Yes
No
Decision taken/action performed
Reasoned explanation
C.1.38 Detail the significant agreements that the Company has entered into and that
come into force, are modified or terminated in the event that control of the Com-
pany is handed over following a takeover, and their effects.
On 5 February 2016, Nueva Samede 2016, S.L.U. (hereinafter “Nueva Samede”) and I. Carso (here-
inafter “I. Carso”) entered into an options contract to buy shares in Fomento de Construcciones y
Contratas, S.A. (hereinafter, “FCC”) before Madrid Notary Jaime Recarte Casanova, recorded un-
der his notary protocol No. 285 (“Purchase Option”), by virtue of which Nueva Samede irrevocably
granted I. Carso an option to purchase 9,454,167 ordinary shares of FCC, representing 2.496% of
its capital stock and of which Nueva Samede is the proprietor after the subscribing and paying in of
the capital increase of FCC as entered on record in the Barcelona Mercantile Registry on 4 March
2016 (the “Affected Shares”).
It is hereby stated for the record that the Affected Shares form part of the 7.028% of FCC’s capital
stock owned by Nueva Samede which are attributed to I. Carso for the exclusive purposes of article
5.1.d of the Royal Decree regulating takeover bids and over which I. Carso has no direct or indirect
voting rights.
In relation to the foregoing, as at 22 July 2016, I. Carso exercised the Purchase Option held over all
the Shares Affected and effective 14 June 2016. However, the formal arrangement of the exercise
of the Purchase Option was subject to the condition precedent which, cumulatively, results in the
following: (i) the authorisation by the National Securities Market Commission of the Bid submitted by
CEC, approved on 29 June 2016, and (ii) the presence on the FCC Board of Directors of a majority
of directors appointed at the request of I. Carso and/or CEC or any company associated with I.
Carso (the, “Condition Precedent”), which was fulfilled following the appointments of Miguel Martin-
ez Parra, Alfonso Salem Slim, Antonio Gomez García, and Carlos Manuel Jarque Uribe on 28 June
2016. As at 22 July 2016, pursuant to the provisions of Article 36 of Royal Decree 1066/2007, of
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Number of beneficiaries
2
Type of beneficiary
Description of the agreement
666
Type of beneficiary
Description of the agreement
Chief Executive Officer
And if the contractual relationship is terminated at the will of the CEO
for any of the following causes:
General Secretary
- Substantial changes in working conditions that are notoriously detri-
mental to his professional training, that are detrimental to his dignity,
or that are decided with serious transgression of good faith, by the
Company.
- Failure to pay for three consecutive months or six alternate months,
or continued delay in the payment of the remuneration agreed under
the contract.
- Succession of a company or significant change in ownership of the
same, which has the effect of a renewal of its governing bodies or
the content of its main activity, provided that the termination occurs
within three months of the occurrence of such changes.
- Any other serious breach of the contractual obligations by the Com-
pany, with the exception of force majeure budgets, in which the pay-
ment of compensation shall not be applicable.
As in the case of free and unilateral termination from the Company, he
will have the right to receive compensation resulting from the sum of
the following two items:
a The amount resulting from the termination of the employment rela-
tionship that the CEO previously held with FCC Construcción or with
any other company of the FCC Group using 12 September 2017 as
the calculation date (and in accordance with the applicable regula-
tions on that date).
The amount resulting from multiplying 7 days wages by the number
of years that have elapsed from 12 September 2017 until the contract
expires.
Concerning the general secretary, an executive director up until 13
January 2015, the Company, having received authorisation from the
Executive Committee, took out and paid up the insurance premium
to cover the payment of contingencies relating to death, permanent
incapacity for work, retirement pensions and benefits or other con-
cepts to be paid, in addition to others, to certain executive directors
and executives.
Specifically, the contingencies giving rise to compensation are those
involving the termination of the employment relationship for any of the
following reasons:
a) Unilateral decision of the Company.
b) Winding up or disappearance of the Parent Company for any rea-
son, including a merger or spin-off.
c) Death or permanent disability.
d) Other causes of physical disability or legal incapacitation.
e) Substantial modification of professional conditions.
f) Resignation, having reached the age of 60, at the request of the
executive and with the agreement of the Company.
g) Resignation, having reached the age of 65, by unilateral decision of
the executive.
As at 31 December 2020, the Secretary General is entitled to a net
amount equivalent to 3.5 times his annual gross remuneration.
Indicate whether, beyond the assumptions provided for in the regulations, these con-
tracts must be communicated and/or approved by the corresponding bodies of Com-
pany or its Group. If so, specify the procedures, expected cases and the nature of the
bodies responsible for their approval or communication:
Body authorising the clauses
X
Board of Directors
General Shareholders'
Meeting
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Is the General Shareholders’ Meeting aware of the clauses?
YES
X
NO
Remarks
Remarks
C.2
Board Committees
C.2.1 Provide details of all the Board Committees, their members and the proportion
of executive, proprietary, independent and other external directors who serve on
them:
EXECUTIVE COMMITTEE
Name
Alejandro Aboumrad González
Position
Chairman
Dominum Desga, S.A. (representada por Esther
Alcocer Koplowitz)
Voting member
EAC Inversiones Corporativas, S.L. (representada
por Alicia Alcocer Koplowitz)
Voting member
Category
External proprietary
director
External proprietary
director
External proprietary
director
Gerardo Kuri Kaufmann
Juan Rodríguez Torres
Pablo Colio Abril
% of executive directors
% of proprietary directors
% of independent directors
% of other external directors
Voting member
Executive director
Voting member
External proprietary
director
Voting member
Executive director
33.33
66.67
0
0
Explain the functions delegated or attributed to this Committee other than those already
described in section C.1.10, and describe the procedures and rules for its organisation
and functioning. For each of these functions, indicate its most important actions during
the year and how it have exercised each of the functions attributed in practice, whether
by law, in the Bylaws or in other corporate agreements.
Rules of the Board of Directors.
Article 36. The Executive Committee.
1. The Board may permanently delegate all its powers to the Executive Committee, with the excep-
tion of those whose competence is reserved by Law, the Bylaws or these Rules. In particular, the
Executive Committee shall be responsible, unless otherwise provided for in the delegation of powers
granted by the Board, to rule on matters of investments, divestments, credits, loans, guarantees
or deposits or any other financial facility, when the unit amount of which does not exceed the fig-
ure established in Article 7.2.o). Furthermore, the Executive Committee may exercise, for reasons
of urgency, the powers attributed to the Board of Directors, in accordance with Article 8 of these
Rules. 2. The Board of Directors, pursuant to a report issued by the Appointments and Remuner-
ation Committee, shall appoint the directors to serve on the Executive Committee, ensuring that
the shareholding structure in the different director categories is similar to that of the Board itself. Its
Secretary shall be the Secretary to the Board of Directors. 3. The Executive Committee shall consist
of a minimum of four (4) and a maximum of ten (10) members. 4. The members of the Executive
Committee shall step down from their posts when they step down in their capacity as Director or
when the Board so agrees. Vacancies that occur shall be filled as soon as possible by the Board of
Directors. 5. The Chairman of the Executive Committee shall be appointed from among its mem-
bers by the Committee itself. In the absence or if it is impossible for the Chairman of the Executive
Committee to attend a meeting, or if this position has been vacated, the corresponding functions
shall be exercised by the member elected to this post by the majority of those in attendance at the
meeting. 6. The Executive Committee shall hold ordinary meetings each month in which the Board of
Directors is not due to hold a meeting, excluding the month of August, and may meet on an extraor-
dinary basis whenever required on account of the company’s corporate interests. 7. The Executive
Committee shall be called to meet by its Chairman, at his/her own initiative or at the request of at
least two (2) of its members, by letter, telegram, email or fax, addressed to each of the Committee’s
members at least forty-eight (48) hours in advance of the date of the meeting; however, it may be
called 24 (twenty-four) hours in advance of the date and time of the meeting on urgent grounds, in
which case, the agenda of the meeting shall be limited to the urgent items on which grounds it was
called. Along with the announcement of each meeting, the corresponding documentation will be
sent to the members of the Executive Committee so that they can form an opinion and cast their
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vote. 8. In the absence or if it is impossible for the Chairman of the Executive Committee to attend a
meeting, or if this position has been vacated, the meeting may be called by the member of the Com-
mittee who has served in his/her position the longest and, in the event of a tie, the oldest in age. For
legal persons, the age of the natural person representing the company shall be taken into account
for this purpose. 9. Meetings shall be held at the registered office or at any place designated by the
Chairman as indicated in the announcement. 10. The Executive Committee shall be validly consti-
tuted when at least a majority of its members are in attendance, counting those present and those
represented. Those absence may be represented by another member of the Executive Committee.
In any case, non-executive Directors may only be represented by another non-executive Director. 11.
Deliberations shall be guided by the Chairman, who shall hand the floor over to attendees who ask
to speak. 12. Resolutions shall be adopted by an absolute majority of the Committee’s members.
In case of a tie, the matter shall be submitted to the Board of Directors, to which end the members
of the Executive Committee shall ask for it to meet pursuant to the provisions of Article 34 of these
Rules, unless it was already due to meet in the following thirty (30) calendar days, in which case the
Committee will ask the Chairman of the Board to include the items resulting in a tie on the agenda
of the meeting. 13. The Executive Committee, through its Chairman, shall inform the Board of the
matters discussed and the resolutions adopted by the Committee, sending a copy of the meeting
minutes to all directors.
At a meeting held on 19 January 2021, a report was issued on the functioning of the Committee
and the performance of its duties in 2020, concluding that the Executive Committee responsibly as-
sumes and performs the duties and powers delegated to it by the Board of Directors, diligently and
effectively handling the Company’s affairs that require constant attention and monitoring.
Regarding the most important actions carried out by the aforementioned Committee, worth note
is that the Committee has met eight times over the course of the 2020 business year, and with the
appropriate frequency to perform its duties.
A total of 37 resolutions have been adopted during these meetings, which have dealt with the
approval of the Self-Assessment Report of the Executive Committee for the 2019 business year
and authorisations for: the incorporation of new companies, dissolution and liquidation of other
companies, the sale of certain companies and acquisition of others, sale of shares at public auction,
capital increases and reductions, opening and closing of branches, and offsetting losses, among
other matters.
668
AUDIT AND CONTROL COMMITTEE
Name
Manuel Gil Madrigal
Juan Rodriguez Torres
Henri Proglio
Position
Chairman
Category
Independent director
Voting member
External proprietary director
Voting member
Independent director
Álvaro Vázquez de Lapuerta
Voting member
Independent director
% of proprietary directors
% of independent directors
% of other external directors
25
75
0
Remarks
Explain the duties, including, where appropriate, those in addition to those defined by
law, which are attributed to this Committee, and describe the procedures and rules for its
organisation and functioning. For each of these functions, indicate its most important ac-
tions during the year and how it have exercised each of the functions attributed in practice,
whether by law, in the Bylaws or in other corporate agreements.
Rules of the Board of Directors.
Article 37. Audit and Control Committee
1. The Board of Directors at FCC shall establish a permanent Audit and Control Committee, with-
out executive functions and with powers of information, advice and proposal within its scope
of action, consisting of a minimum of three (3) and a maximum of six (6) directors who shall be
appointed by the Board of Directors taking into account their knowledge and experience in ac-
counting, auditing or risk management matters. All its members shall be non-executive directors
and a majority shall be independent, with the Committee itself choosing its Chairman, and op-
tionally a Deputy Chairman, from among the independent directors sitting on the Committee. The
mandate of the members of the Committee shall not exceed their mandate as directors, without
prejudice to them being re-elected indefinitely, insofar as they remain directors. Notwithstanding
the foregoing, the term of office of the Chairman and Deputy Chairman, as the case may be, may
not exceed four (4) years or their terms as members of the Committee, and may be re-elected
after at least one year has elapsed since the end of their term.
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2. At least one of the independent members of the Audit and Control Committee shall be appointed
taking into account their knowledge and experience in accounting, auditing or both. As a whole,
the members of the Committee shall have relevant technical knowledge in relation to the activity
sector of the Company.
3. The Audit and Control Committee shall regulate its own functioning in accordance with the Bylaws
and these Regulations. Voting members who have held the position of Chairman may not return
to that position until at least one year has elapsed since the end of their term. The Audit and
Control Committee shall appoint a secretary, and as applicable a deputy secretary, who shall not
be a member of the Committee, who shall assist the Chairman and ensure the proper functioning
of the Committee, taking care to accurately reflect the progress of meetings the nature of deliber-
ations and the resolutions adopted in the minutes. From each meeting, the secretary or whoever
exercises their duties shall prepare the minutes, which shall be signed by the members of the
Committee who have attended the meeting.
4. The Audit and Control Committee shall be validly constituted when the majority of its members are
in attendance, whether in person or represented, adopting its resolutions by an absolute majority
of its members present or represented; in case of a tie, the Chairman shall cast the deciding vote.
5. The primary function of the Audit and Control Committee shall be to support the Board of Di-
rectors in its oversight tasks, by periodically reviewing, among others, the process of preparing
financial and economic information, its internal controls and the independence of the external
auditor In particular, by way of example, and without prejudice to other tasks entrusted to it by
the Board of Directors, the Audit and Control Committee shall be responsible for:
a) Inform the General Shareholders’ Meeting about the issues raised in relation to the matters with-
in its remit and, in particular, the outcome of the audit, explaining how it has contributed to the
integrity of the financial information and the role that the Committee has played in that process.
b) Serve as a channel of communication between the Board of Directors and the Company’s
external auditor, assessing the results of each audit. The external auditor shall also: (i) submit
proposals for the selection, appointment, re-election and replacement of the account auditor
to the Board of Directors, assuming responsibility for the selection process, pursuant to the
provisions of EU regulations, as well as the conditions under which they were contracted; (ii)
regularly gather information from the external auditor on the audit plan and the results of its
performance, in addition to maintaining its independence in the performance of its duties and
verifying that Senior Management takes its recommendations into account; (iii) discuss the
significant weaknesses of the internal control system detected in the development of the audit
with the Company’s external auditor, without compromising its independence. To this end,
and where appropriate, the Audit and Control Committee may submit recommendations or
proposals to the Board of Directors and the corresponding monitoring period. (iv) establish the
appropriate relationships with the external auditor to receive information on issues that may
pose a threat to their independence, for consideration by the Committee, and any other relat-
ing to the process of performing accounts audits and, where appropriate, the authorisation of
services other than those prohibited, under the terms provided for in the regulations governing
669
account auditing activities on the system of independence, as well as any other communica-
tions provided for in the account auditing legislation and in the audit regulations; (v) ensure the
independence of the external auditor, establishing, in particular, appropriate measures: 1) so
that the contracting of advisory and consulting services with the auditor or companies in its
Group does not pose a risk to its independence, to which end the Committee shall request and
receive from the auditor each year a declaration of its independence in relation to the Company
or entities linked to it directly or indirectly, as well as the detailed, individual information of any
type of additional services provided and the corresponding fees received from these entities by
the external auditor or by the persons or entities linked to it, pursuant to the provisions of the
regulatory regulations on account auditing activities, and 2) so that the Company can commu-
nicate the change in auditor as a relevant fact to the CNMV and accompany this communica-
tion with a statement on any possible disagreements with the outgoing auditor and, as applica-
ble, their nature, and in case of the resignation of the external auditor, examine the underlying
circumstances; and (vi) encourage the Company’s auditor to assume responsibility for audits
of other Group companies. c) Each year, prior to the issuance of the account auditing report,
issue a report that expresses an opinion on whether the independence of the auditors or audit
firms has been compromised. This report shall contain, in any case, a reasoned assessment
on the provision of each and every one of the additional services referred to in section b)v)1)
above, taken individually and as a whole, other than the legal audit and in relation to the system
of independence or the regulations governing the account auditing activities. d) The supervision
of the Company’s Internal Audit services that ensure the proper functioning of the information
and internal control systems, with the person responsible for the Internal Audit function being
required to present his/her annual work plan to the Committee and directly inform this body
of any incidents that occur in the performance of his/her duties and submit a report on his/
her activities at the end of each year. e) Supervise and analyse the effectiveness of the Com-
pany’s internal control and of the risk control and management policy approved by the Board
of Directors, ensuring that it identifies, as a minimum: (i) the different types of risks faced by
the Company, including financial or economic risks, contingent liabilities and other off-balance
sheet risks; (ii) the determination of the level of risk that the Company considers acceptable;
(iii) the measures planned to mitigate the impact of the risks identified, should they materialise;
and (iv) the information and internal control systems that will be used to control and manage the
aforementioned risks, including contingent liabilities or off-balance sheet risks, and submit this
to the Board for approval. f) Supervise the process of preparing and presenting individual and
consolidated annual accounts and management reports, and the periodic financial information
that is disclosed to the markets, and submit recommendations or proposals to the Board of
Directors with a view to safeguarding their integrity; ensuring compliance with the legal require-
ments and the correct application of generally accepted accounting principles, informing the
Board of Directors, before the adoption by the latter of the following resolutions: (i) financial
information that, given its status as a listed company, the Company is required to publish peri-
odically, ensuring that the interim accounts are prepared using the same accounting criteria as
annual accounts and, to that end, consider the suitability of a limited review of the Company’s
external auditor; and (ii) the creation or acquisition of interests in special purpose entities or
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670
those registered in countries or territories that are considered tax havens, as well as any other
transactions or operations of a similar nature that, given their complexity, could undermine
the transparency of the FCC Group. g) In relation to information and internal control systems:
(i) supervise the preparation process and the integrity of the Company’s financial information
and, where appropriate, the Group’s financial information, ensuring compliance with regulatory
requirements, the adequate definition of the consolidation perimeter and the correct application
of accounting criteria; (ii) periodically supervise the internal control and risk management sys-
tems, including tax risks, ensuring that the main risks are properly identified, managed and dis-
closed; (iii) ensure the independence and effectiveness of the Internal Audit function, proposing
the selection, appointment, re-election and removal of the head of the Internal Audit service,
as well as the budget of this service, receiving periodic information about its activities and veri-
fying that Senior Management takes into account the conclusions and recommendations in its
reports; periodically receive information from the Response Committee and the Management
Control and Risk Management Division, respectively, on the performance of their activities and
the operation of internal controls; and (v) ensure that internal codes of conduct and corporate
governance rules comply with regulatory requirements and are appropriate for the Company, in
addition to reviewing compliance, by people affected by these codes and rules of governance,
of their obligations to inform the Company. h) Issue the reports and proposals requested by the
Board of Directors or by the Chairman of the Board of Directors and those deemed appropriate
in the proper performance of their duties and, in particular, (i) issue a report on the proposed
modification of this Regulation, pursuant to the provisions of Article 4.3; (ii) make decisions in
relation to the requests for information that directors, pursuant to the provisions of Article 26.3
of these Rules, submit before this Committee; and (iii) request, where appropriate, the inclusion
of items on the agenda of Board meetings under the conditions and deadlines provided for in
Article 34.3 of these Rules.
6. The Audit and Control Committee shall have access to the information and documentation re-
quired for the exercise of its functions and may seek the 41 advice of external professionals who,
in the capacity of advisors and up to a maximum of two (2) for each member of the Committee,
they believe appropriate, to which end the provisions of Articles 27.3 and 35.4 of these Regula-
tions shall apply. These advisors shall attend meetings with the right to speak but not to vote.
7. The Audit and Control Committee shall meet at least once per quarter and, in addition, every time
its Chairman calls a meeting, or at the request of two (2) of its members. Each year, the Commit-
tee shall draw up an action plan for the year to be reported to the Board of Directors, as well as a
report on its activity during the year, which will serve as the basis for the evaluation that the Board
of Directors will carry out. In the absence or if it is impossible for the Chairman of the Audit and
Control Committee to attend a meeting, or if this position has been vacated, the meeting may be
called by the member of the Committee who has served in his/her position the longest and, in
the event of a tie, the oldest in age. For legal persons, the age of the natural person representing
the company shall be taken into account for this purpose.
8. Deliberations shall be guided by the Chairman, who shall hand the floor over to attendees who
ask to speak. In the absence or if it is impossible for the Chairman of the Audit and Control Com-
mittee to attend a meeting, or if this position has been vacated, the corresponding functions shall
be exercised by the member elected to this post by the majority of those in attendance at the
meeting.
9. Any member of the management team and the staff of the FCC Group shall be obliged to attend
Committee meetings and to provide their collaboration and access to the information available to
them when so required; to this end, the provisions of Article 35.6 of these Rules shall apply. The
same shall be required of the Company’s Accounts Auditors.
10. Any aspects not expressly regulated in this Article regarding the functioning of the Audit and
Control Committee, shall be regulated by the Audit and Control Committee itself.
Over the course of 2020, in the performance of said powers, the Committee has performed, by
way of example, the following duties:
– Serve as a channel of communication between the Board of Directors and the Company’s
external auditor, assessing the results of each audit, as well as submitting proposals for the
selection, appointment, re-election and replacement of the account Auditor, assuming re-
sponsibility for the selection process, pursuant to the provisions of EU regulations, as well as
the conditions under which they were contracted.
– Discuss the significant weaknesses of the internal control system detected in the develop-
ment of the audit with the Company’s external auditor, without compromising its independ-
ence Receive information from the external Auditor on issues that may pose a threat to their
independence and, where appropriate, the authorisation of services other than those prohib-
ited, under the terms provided for in the regulations governing account auditing activities on
the system of independence.
– Ensure the independence of the external Auditor, establishing the corresponding measures to
this end.
–
Inform the General Shareholders’ Meeting about the issues raised in relation to the matters
within its remit and, in particular, the outcome of the audit, explaining how it has contributed
to the integrity of the financial information and the role that the Committee has played in that
process.
– Each year, prior to the issuance of the account auditing report, issue a report that expresses
an opinion on whether the independence of the auditors or audit firms has been compro-
mised. This report shall contain, in any case, a reasoned assessment on the provision of
each and every one of the additional services referred to in Article 37.5 section b)v)1) of the
Rules of the Board, taken individually and as a whole, other than the legal audit and in relation
to the system of independence or the regulations governing the account auditing activities.
Supervise the Company’s internal audit services, as well as its control and risk management
policy, reviewing the identification of the most relevant risks and the adoption of the necessary
measures to mitigate their impact.
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– Report favourably to the Board on the FCC Non-Financial Information report for the 2019
business year.
– Report favourably on the changes in the Compliance Model, as well as the approval of the
modification of the FCC Group’s Protocol for the prevention and eradication of harassment
(workplace and sexual).
– Approve the FCC Group Safety and Crisis Management Regulations. The appointment of its
members: FCC General Secretary, FCC Managing Director of Administration and Finance,
FCC Director of Security and FCC Director of Human Resources. The first manager of the
business affected by the incident will also be a member of this Committee, if applicable. To
propose Mr Alejandro Aboumrad González as Liaison Director of the Safety and Crisis Com-
mittee with the Board of Directors.
On 19 January 2021, the Audit and Control Committee issued its report on its activities and opera-
tions throughout 2020, for assessment by the Board.
Therefore, during 2020, the Audit and Control Committee reached a total of 14 resolutions in its eight
meetings, which dealt with the approval of the self-assessment report on the functioning of the Com-
mittee for 2019 business year, the approval of the report on the independence of the auditors for the
2019 business year, providing favourable information to the Board on: the Annual Corporate Gov-
ernance Report, the preparation of the Financial Statements, the Non-Financial Information Report,
the approval of the FCC Group’s Bidding Policy, the approval of the FCC Group’s Safety and Crisis
Management Regulations, the distribution of dividends, the changes in the regulatory section of the
Compliance Model, the modification of the Board Regulations, as well as the process of preparing
the different financial and management information reports for the 2020 business year.
Based on the foregoing, it can be concluded that the Audit and Control Committee assumes and
efficiently and diligently complies with the powers attributed to it in the Company’s different corporate
texts.
FCC_Annual Report_2020 | Annual Corporate Governance Report | Page 37 of 101
– Supervise the process of preparing and submitting individual and consolidated financial state-
ments and management reports, and the financial information that is regularly disclosed to the
markets, and submit recommendations or proposals to the Board of Directors with a view to
safeguarding their integrity; ensuring compliance with the legal requirements and the correct
application of generally accepted accounting principles.
– Report favourably on the process of preparing the individual and consolidated annual ac-
counts and management reports for 2019, and that they have been prepared in compliance
with the legal requirements and applying generally accepted accounting principles.
– Report favourably on the 2019 Annual Corporate Governance Report.
– Supervise the Company’s compliance with the internal codes of conduct and the Corporate
Governance rules.
– Report favourably on the adequacy of the information contained in the “Interim Statement”,
referring to the first and third quarters of 2020, in accordance with the provisions of article
20, section 1, of Royal Decree 1362/2007, of 19 October, and the provisions that develop it,
recommending its approval by the Board of Directors and its submission to the CMNV and
Stock Exchanges.
– Report, globally, on communications through the “Internal Communication Channel” and the
actions carried out to this end. An internal whistleblowing channel and procedure is in place
that allows employees and third parties to send their questions and report irregular behaviours
confidentially.
– Propose the appointment of Ernst & Young, S.L. as the account auditors for FCC and its con-
solidated group for the 2021, 2022 and 2023 business years to the FCC Board of Directors,
for its submission to the Ordinary General Shareholders’ Meeting.
–
In relation to the proposal of a flexible dividend (scrip dividend) before the FCC Board of Direc-
tors, for submission to the Ordinary General Shareholders’ Meeting. The review performed by
members of the Committee of the shareholder remuneration mechanism has been particularly
important, ensuring the economic equivalence of the options of (i) transferring free allocation
rights to FCC under the Purchase Commitment and (ii) receiving this amount in New Shares,
that is, without any of these options being promoted or penalised in economic terms.
– Approve, pursuant to the provisions of Article 34.9 of the Rules of the Board, the self-as-
sessment report on the functioning of the FCC Audit and Control Committee during the 2019
business year, to be submitted to the Board of Directors.
– Report favourably to the Board on the approval of the FCC Group’s Bidding Policy.
– Report favourably on the adequacy of the information contained in the financial statements
of the first half of 2020 (“Abridged financial statements” and “Interim Management Report”) in
terms of the provisions of Article 11 et seq. of Royal Decree 1362/2007, of 19 October, and
its implementing provisions.
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Identify the members of the Audit Committee that have been appointed taking into ac-
count their knowledge and experience in accounting, auditing or both, and report on the
date on which the Chairman of this Committee was appointed to the position.
Names of directors with experience
Manuel Gil Madrigal
Date of appointment of the Chairman to the
position
The chairman of this Committee is Manuel Gil
Madrigal, appointed on 8 May 2019.
Remarks
APPOINTMENTS AND REMUNERATION COMMITTEE
Name
Position
Category
Álvaro Vázquez de Lapuerta
Chairman
Independent director
Dominum Desga, S.A. represented by Esther
Alcocer Koplowitz
Voting member
External proprietary director
Juan Rodríguez Torres
Manuel Gil Madrigal
Voting member
External proprietary director
Voting member
Independent director
% of proprietary directors
% of independent directors
% of other external directors
50
50
0
Remarks
672
Explain the duties, including, where appropriate, those in addition to those defined by
law, which are attributed to this Committee, and describe the procedures and rules for its
organisation and functioning. For each of these functions, indicate its most important ac-
tions during the business year and how it have exercised each of the functions attributed
in practice, whether by law, in the Bylaws or in other corporate agreements.
Rules of the Board of Directors.
Article 38. Appointments and Remuneration Committee
1. The Board of Directors of FCC shall constitute a permanent Appointments and Remuneration
Committee without executive functions and with powers of information, advice and proposal
within its scope of action, which will be composed of a minimum of four (4) and a maximum of
six (6) directors, appointed by the Board of Directors, consisting exclusively of non-executive di-
rectors, of which at least two (2) must be independent directors and two (2) proprietary directors.
The Committee shall appoint the Chairman from among its independent members. The mandate
of the members of the Appointments and Remuneration Committee shall not exceed their man-
date as directors, without prejudice to them being re-elected indefinitely, insofar as they remain
directors.
2. The Appointments and Remuneration Committee shall regulate its own functioning in accordance
with the Bylaws and these Regulations. The Committee shall appoint a secretary who shall not
be a member of the Committee, who shall assist the Chairman and ensure the proper function-
ing of the Committee, taking care to accurately reflect the progress of meetings, the nature of
deliberations and the resolutions adopted in the minutes, which shall be signed by the members
of the Committee attending the meeting in question. The members of the Appointments and
Remuneration Committee shall step down from their posts when they do so in their capacity as
directors or when the Board of Directors so agrees.
3. The Appointments and Remuneration Committee shall be validly constituted when the majority
of its members are in attendance, whether in person or represented, adopting its resolutions by
an absolute majority of its members present or represented; in case of a tie, the Chairman shall
cast the deciding vote.
4. The Appointments and Remuneration shall have the powers of information, assessment and
proposal within its powers, corresponding to it, in addition to the functions established by law,
the Company Bylaws or in accordance with these Rules, the following: a) Evaluate the necessary
skills, knowledge and experience in the Board of Directors. For this purpose, it will define the
functions and skills necessary in the candidates who must fill each vacancy and will evaluate the
time and dedication required so that they can effectively carry out their duties. Any Director may
request the Appointments and Remuneration Committee to take into consideration, if it considers
them suitable, potential candidates to fill the vacancies of Director. b) Examine and organise the
succession of the Chairman and the CEO and, where appropriate, make proposals to the Board
of Directors so that said succession occurs in an orderly and planned manner. c) Submit to the
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673
Board of Directors proposals for the appointment and re-election of independent Directors for ap-
pointment by co-option or for submission for a decision by of the General Shareholders Meeting,
as well as proposals for the re-election or removal of said Directors by the General Shareholders
Meeting. d) Report on the proposals for appointment and re-election of the remaining Directors
for their appointment by co-optation or for submission for a decision by the General Shareholders
Meeting, as well as the proposals for their re-election or removal by the General Shareholders
Meeting. e) Report on the proposals for the appointment and removal of senior executives and the
basic conditions of their contracts, which the CEO proposes to the Board, proposing the persons
or positions that should be considered senior executives of the Company, in addition to those
provided for in Article 2.2 of these Rules and preparing the proposals for reprimands referred to
its Article 19.2.d). Likewise, it will previously report on appointments for the holding of positions
or posts that have an annual remuneration equal to or higher than the figure established by the
Committee itself in each case, which must be reported to the Board of Directors. f) Propose to
the Board of Directors the remuneration policy of the Directors and of the general directors or of
those who carry out their senior management duties under the direct authority of the Board, the
Executive Committee or the Chief Executive Officer, as well as the individual remuneration and
the remaining contractual conditions of executive Directors, ensuring their observance. Likewise,
inform and make proposals about the incentive plans of a multi-year nature that affect the Com-
pany’s senior executives and in particular, those that may be established in relation to the value
of the shares. Likewise, to propose to the Board of Directors the distribution among the Directors
of the remuneration derived from their status as Directors agreed by the General Shareholders
Meeting, in accordance with the provisions of the Company Bylaws and in this Regulation. g)
Prepare and keep a record of the situations of directors and senior managers at FCC. h) Assist
the Board in its role of ensuring that the selection procedures of its members favour the diver-
sity of gender, experience and knowledge and do not suffer from implicit biases that may imply
any discrimination and, in particular, that facilitate the selection of female Directors, so that the
Company deliberately seeks and includes among the potential candidates, women who meet the
intended professional profile, with the Board having to explain, if applicable, through the Annual
Corporate Governance Report, the reason for the scant or non-existent number of female Direc-
tors and the initiatives taken to correct this situation. For the purposes of the foregoing, it must
establish a representation objective for the less represented gender in the Board of Directors and
prepare guidelines on how to achieve this objective. i) Report on the proposed appointment of
the members of the Committees of the Board of Directors. j) Report the appointment and removal
of the Secretary of the Board. k) Verify the classification of the Directors as established in Article
6.3. l) Report, in advance, to the Board of Directors on all the matters provided in the Law, the
Company Bylaws and these Rules and, in particular, related-party transactions. m) Receive and
keep a register of situations referred to in section g) above and the personal information provided
by the directors, as established in Article 25 of these Rules n) Request, where appropriate, the
inclusion of items on the agenda of Board meetings under the conditions and deadlines provided
for in Article 34.3 of these Rules. In the case of matters relating to the executive directors and
senior executives, the Appointments and Remuneration Committee will consult the Chairman
and the Company’s CEO.
5. The Appointments and Remuneration Committee shall regulate its own functioning in all matters
not provided for in the Bylaws and in these Rules.
6. The Appointments and Remuneration Committee shall have access to the information and doc-
umentation necessary for the performance of its duties. The members of the Appointments and
Remuneration Committee may be assisted, at Committee meetings, by the persons who, in their
capacity of advisors and up to a maximum of two (2) for each Committee member, they deem
appropriate. These advisors shall attend meetings with the right to speak, but not vote and the
provisions of Article 27 of these Rules shall apply.
7. The Committee shall meet with the established frequency and each time a meeting is called by
the Chairman or requested by two (2) of its members and at least once a quarter. Each year, the
Committee shall draw up an action plan for the year to be reported to the Board, as well as a
report on its activity during the year, which will serve as the basis for the evaluation that the Board
of Directors will carry out.
8. In the absence or if it is impossible for the Chairman of the Appointments and Remuneration
Committee to attend a meeting, or if this position has been vacated, the meeting may be called
by the member of the Committee who has served in his/her position the longest and, in the event
of a tie, the oldest in age. For legal persons, the age of the natural person representing the com-
pany shall be taken into account for this purpose.
9. Deliberations shall be guided by the Chairman, who shall hand the floor over to attendees who
ask to speak.
10. In the absence or if it is impossible for the Chairman of the Appointments and Remuneration
Committee to attend a meeting, or if this position has been vacated, the corresponding functions
shall be exercised by the member elected to this post by the majority of those in attendance at
the meeting.
The Appointments and Remuneration Committee of Fomento de Construcciones y Contratas, S.A.
has issued a report on its functioning and the performance of its duties at its meeting of 19 January
2021.
As a result of the assessment process that the Committee performed on its own functioning, positive
conclusions were reached, both in terms of its composition and internal organisation and the exer-
cise of the powers assigned to it.
During 2020, it exercised, among others, the following competences:
– Assess skills, knowledge and experience necessary in the Board are evaluated, defining the nec-
essary candidate functions and qualifications that each vacancy should entail, and assessing the
time and dedication needed to discharge their duties properly.
– Report on the proposal for the appointment and re-election of directors and members of the
Committees of the Board of Directors, as well as the proposed representatives of corporate
directors.
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674
– Ensure compliance with the remuneration policy established by the Group, proposing the remu-
neration policy for directors and senior managers to the Board of Directors, in addition to the
basic conditions of senior managers’ contracts.
– Approve the content of the documents named: Appointments and Remuneration Committee Re-
port on the Chairman of the Board of Directors and Appointments and Remuneration Committee
Report on the CEO, for assessment by the Board of Directors in terms of the performance of their
duties during the 2020 business year, submitted to the Board of Directors for this body to perform
the assessment referred to in Article 34.9 of its Regulations.
– Approve the Report on the functioning of the Appointments and Remuneration Committee during
the 2020 business year, as well as the Report ratifying the current categories (proprietary, inde-
pendent or executive) of the members of the Board.
– Report on the appointment of Senior Managers and other positions that fall within the first three
levels, in addition to those with remuneration equal to or greater than €75,000.
– Propose the Annual Report on the remuneration of the Directors at Fomento de Construcciones
y Contratas, S.A., corresponding to the 2020 business year to the Board of Directors, for its
subsequent submission at the Ordinary General Shareholders’ Meeting.
– Approve the Report containing the proposed statutory remuneration of the Board for the 2020
business year.
– Report on the critical aspects relating to the general salary policy for the 2020 business year at
the FCC Group.
– Propose the remuneration policy for executive directors, the terms and conditions of the CEO’s
contract and ensure compliance with the company’s remuneration policy to the Board of Direc-
tors.
During the seven meetings held by this Committee in the 2020 business year, a total of
16 resolutions were reached, which have addressed: the approval of the Report on the
functioning of the Appointments and Remuneration Committee during the 2019 business
year, the report ratifying the categories of directors, the Report of the Appointments and
Remuneration Committee on the Chairman of the Board of Directors, the Report of the
Appointments and Remuneration Committee on the CEO, as well as the implementation
of the 2019 Variable Remuneration Plan and approval of the 2020 Plan. A favourable
report has also been issued on: the 2020 Salary Policy, the 2019 Annual Report on the
Remuneration of FCC Directors, on proposed appointments of directors and on various
contractual transactions.
Based on the foregoing, it can be concluded that the Appointments and Remuneration
Committee assumes and efficiently and diligently complies with the powers attributed to
it in the Company’s different corporate texts.
C.2.2 Fill in the following table with information regarding the number of female direc-
tors that sit on the Committees of the Board of Directors at the end of the last four
years:
Number of female directors
Business year t
Number %
Business year
t-1 Number %
Business year
t-2 Number %
Business year
t-3 Number %
Executive Committee
33.33% (2)
33.33% (2)
33.33% (2)
33.33% (2)
Audit Committee
Appointments and
Remuneration
Committee
0% (0)
25% (1)
0% (0)
25% (1)
0% (0)
25% (1)
0% (0)
25% (1)
Remarks
C.2.3 Indicate, where appropriate, the existence of Rules applicable to Committees of
the Board, their location for the purposes of consultation, and any modifications
made during the business year. In turn, indicate whether an annual report on the
activities of each committee has been prepared voluntarily.
• Rules of the FCC Group Board of Directors (Chapter IX. Board Committees).
• Reports of the Commissions to assess their functioning in 2020.
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Amount
(thou-
sands of
euros)
1,954
FCC_Annual Report_2020 | Annual Corporate Governance Report | Page 41 of 101
D. Transactions with related parties
and intra-group transactions
Name or
corporate
name of the
significant
shareholder
Name or
company name
of the company
or group entity
Nature
of the
relationship
Transaction type
D.1
Explain, as appropriate, the procedure and competent bodies for the approval of
transactions with related parties and intra-group transactions.
Procedure for confirming approval of related transactions
Article 24 of FCC’s Regulations of the Board of Directors states that:
Transactions with significant shareholders
“1. The Board of Directors shall approve, upon a report from the Appointments and
Remuneration Committee, any transaction performed by the Company or its Group companies
with holders, whether individually or jointly, of a significant shareholding, including shareholders
represented on the Board of Directors of the Company or other Group companies or with
persons associated with them or their directors. The directors representing or associated with
the affected shareholders shall refrain from participating in the deliberation and voting process
concerning the resolution in question. 2. Only transactions that simultaneously satisfy the three
characteristics indicated in section 6 of the previous Article with respect to the transactions
made by the Company with its directors or persons associated with them shall be exempted
from this approval”.
D.2 Describe significant transactions based their amount or relevance on account of
their subject matter performed between the company or Group companies and sig-
nificant shareholders in the company:
Realia
Business, S.A.
FC y C, S.L.
Unipersonal
Contractual Management and marketing of
three property developments: Plot
“10B”
in Badalona, Barcelona,
(141 collective dwellings available
for resale and parking spaces);
Plot “RCL 1B” in Tres Cantos, Ma-
drid, (85 collective dwellings avail-
able for resale and parking spac-
es): Plot “RLU 2ª” in Tres Cantos,
Madrid (30 single-family homes)
Realia
Business, S.A.
FCC
Construcción,
S.A.
Contractual Construction contracts
23,911
Realia
Business, S.A.
FC y C, S.L.
Unipersonal
Contractual
-
Exclusive marketing: Plot RU2A in
Tres Cantos (marketing of 30 sin-
gle-family dwellings), Plot RC1B
in Tres Cantos (marketing of 85
dwellings available for resale), Plot
10A in Badalona (marketing of 141
collective dwellings available for
resale), Plot in Arroyo Fresno, Ma-
drid (marketing of 144 collective
dwellings available for resale), Plot
in Arroyo Fresno, Madrid (market-
ing of 42 single-family dwellings),
Plot in El Berzal (marketing of 40
single-family dwellings).
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676
Name or
corporate
name of the
significant
shareholder
Realia
Patrimonio,
S.L.U.
Name or
company name
of the company
or group entity
FCC
Industrial e
Infraestructuras
Energéticas
S.A.U.
FCC
Industrial e
Infraestructuras
Energéticas
S.A.U.
Cementos
Portland
Valderrivas
Realia
Patrimonio,
S.L.U.
Banco
Inbursa, S.A.
Banco
Inbursa, S.A.
Amount
(thou-
sands of
euros)
5
Nature
of the
relationship
Transaction type
Contractual Annual preventive maintenance
of generator sets in the buildings:
Offices on Calle Acanto 22 and 4
units in office buildings at Avda.
Del Sur del Aeropuerto de Bara-
jas, 28, 30, 32 and 34 in Madrid
(Eisenhower Business Center in
Madrid), basic annual preventive
maintenance of the equipment of
the Uninterruptible Power Supply
of the buildings: Offices at Paseo
de la Castellana 216, Madrid; offic-
es at Calle Acanto 22, and 2 units
in office buildings at Avda. del Sur
del Aeropuerto de Barajas, 28 and
34, Madrid.
Contractual Service provision contract
1,397
Contractual Accrual interest on subordinated
2,076
financing.
FCC
Construcción,
S.A.
Contractual Acquisition of certificates pertain-
ing to works on Metro line 2 in
Panama
3,818
D.3 Describe the significant transactions based their amount or relevance on account
of their subject matter performed between the company or Group companies and
company directors or executives:
Name or company
name of directors or
executives
Name or company
name of the related
party
Alejandro Aboumrad
González
FCC
Relationship
Director
Nature of the
transaction
Provision of
services
Gerardo Kuri
Kaufmann
Cementos Portland
Valderrivas
Chief Executive
Officer
Provision of
services
Amount
(thousands
of euros)
338
175
Remarks
-
D.4
Provide details of the significant operations carried out by the company with oth-
er companies belonging to the same Group, provided they are not eliminated in
the process of preparing consolidated financial statements and are not part of the
Company’s routine business in terms of its purpose and conditions.
In any case, any intra-group transactions carried out with companies established in coun-
tries or territories that are considered a tax haven shall be reported:
Corporate name of the Group
company
Brief description of the
transaction
Amount (thousands
of euros)
-
-
-
Remarks
Remarks
There are numerous transactions between Group companies that are part of their routine busi-
ness and that, in any case, are eliminated in the process of preparing the consolidated financial
statements.
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FCC_Annual Report_2020 | Annual Corporate Governance Report | Page 43 of 101
D.5 Describe the significant transactions carried out between the Company or Group
Companies and other related parties, which have not been reported on in the above
sections.
Corporate name of the related
party
Brief description of the
transaction
Amount (thousands of euros)
-
-
-
Remarks
D.6 Describe the mechanisms established to detect, determine and resolve possible
conflicts of interests between the Company and/or its Group and its directors, ex-
ecutives or significant shareholders.
Article 23 of the Rules of the Board of Directors states that:
1. As part of his/her duty to avoid the conflicts of interests indicated in section 2.e) of the preced-
ing article, the Director shall refrain from: a) Undertaking transactions with the Company or with
Group Companies, except in the case of ordinary transactions, carried out under standard con-
ditions for customers and of limited relevance, including those for which information is not neces-
sary to express the true image of equity, of the financial situation and the results of the Company.
b) Using the name of the Company or invoking his/her status as a director to unduly influence the
execution of private transactions. c) Making use of social assets, including confidential informa-
tion on the Company, for private purposes. d) Taking advantage of the Company’s business op-
portunities. e) Obtaining advantages or remuneration from third parties other than the Company
and its Group associated with the performance of their duties, unless they are a mere courtesy.
f) Performing activities on their own account or on behalf of others that involve effective compe-
tition, whether current or potential, with the Company or that, in any other way, place them in a
permanent conflict with the interests of the Company.
2. The above provisions shall also apply in the event that the beneficiary of the prohibited acts or
activities is a person linked to the director.
3. In any case, directors shall notify the Board of Directors, through the Corporate Responsibility
Department or any other department that may replace it, with sufficient notice, of any direct or
indirect conflict of interests that they or persons linked to them may have with the interests of
the Company or those of the group of companies that comprise the FCC Group or its related
companies.
4. The Company may waive the prohibitions contained in this article in unique cases, allowing the
director or related person to perform a specific transaction with the Company, the use of certain
social assets, the use of a specific business opportunity, obtaining an advantage or remuneration
from a third party.
5. This authorisation shall be agreed by the General Shareholders’ Meeting when the intention is
to waive the prohibition on obtaining an advantage or remuneration from third parties, involves a
transaction worth more than ten percent (10%) of the Company’s social assets or concerns the
obligation to not compete with the Company. In the latter case, the waiver may only be offered in
the event that the Company is expected to suffer no damages or that the damages will be offset
by the advantages expected to be obtained from the waiver, and the waiver shall be granted by
express and separate consent of the General Shareholders’ Meeting.
6. In the other cases to which the prohibitions in this article apply, authorisation may also be granted
by the Board of Directors, subject to a favourable report from the Appointments and Remuner-
ation Committee, provided that the independence of the members granting this authorisation
is guaranteed with respect to the relieved director or the related person. In addition, it will be
necessary to ensure that the authorised transaction protects social assets from harm or, where
appropriate, they are undertaken subject to market conditions, and the transparency of the pro-
cess. The affected directors or those representing or associated with the affected shareholders
shall refrain from participating in the deliberation and voting process concerning the resolution
in question. Only transactions that simultaneously meet the three (3) following characteristics
shall be exempted from the authorisation required from the Board of Directors referred to in the
paragraph above: a) that are undertaken as part of contracts whose conditions are standardised
and are applied en masse to a high number of customers; b) that are executed at generally es-
tablished prices or tariffs by those who act as suppliers of the asset or service in question; and c)
that its value does not exceed one percent (1%) of the Company’s annual income.
7. In any case, conflicts of interest incurred by the directors shall be included in the report, under the
terms established by Law.
8. For the purposes of this provision, related persons are understood as those included in the Span-
ish Corporate Enterprises Act.
D.7
Indicate whether the company is controlled by another entity within the meaning
of Article 42 of the Commercial Code, whether listed or not, and has, directly or
through its subsidiary companies, business dealings with that entity or any of its
subsidiary companies (other than those of the listed company) or engages in activ-
ities related to any of their subsidiary companies.
Yes
No
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There is a collaboration agreement between FCC Construcción (FCC Group) and Carso Infrae-
structuras S.A.B de CV (a company related to Control Empresarial de Capitales) to jointly under-
take projects in the Americas (excluding the United Mexican States), through a special purpose
vehicle (SPV) “FCC Américas”.
Indicate whether the respective areas of activity and any business relationships between
the listed company or its subsidiary companies and the parent company or its subsidiary
companies have been accurately publicly disclosed:
Yes
No
Report on the respective areas of activity and any business relationships between the listed
company or its subsidiary companies and the parent company or its subsidiary companies, and
identify where these aspects have been publicly disclosed
Collaboration agreement between FCC Construcción (FCC Group) and Carso Infraestructuras (a
company related to Control Empresarial de Capitales) to jointly undertake construction projects
in the Americas (excluding the United Mexican States), through a special purpose vehicle (SPV)
“FCC Américas”.
These aspects have not been publicly disclosed.
Identify the mechanisms planned to resolve possible conflicts of interests between the
parent company of the listed company and the other Group companies:
Mechanisms to resolve potential conflicts of interests
A joint executive committee has been set up for the company FCC Américas to resolve any
disputes that may arise. Regarding the FCC’s Board of Directors, for the adoption of resolutions
in view of the tender for a project in the Americas, directors with a potential conflict of interest
abstained.
E. Risk control and management systems
E.1
Explain the scope of the Company’s Risk Control and Management System, includ-
ing those of a fiscal nature.
The FCC Group Risk Management Model has been designed with the aim of identifying
and assessing the potential risks that could affect the Group’s different units, as well
as establishing mechanisms incorporated into the organisation’s processes that make
it possible to manage risks within the accepted levels, providing the Board of Directors
and Senior Management with reasonable assurance regarding the achievement of the
main objectives defined. This Model applies to all FCC Group companies, as well as
to those affiliates where FCC has effective control, promoting the development of work
frameworks that enable suitable risk control and management in those companies where
effective control is not available.
This model is essentially based on the integration of a risk-opportunity vision and the
assignment of responsibilities that, together with the segregation of duties, enable the
follow-up and control of risks, consolidating a suitable control environment.
The activities included in the FCC Group’s Risk Management Model include the assess-
ment of risks, including tax risks, in terms of impact and probability of occurrence, giving
rise to Risk Maps, and subsequently the establishment of prevention and control activities
to mitigate the effect of such risks. In addition, this Model includes the establishment of
reporting flows and communication mechanisms at different levels, which allow both de-
cision-making and its review and continuous improvement.
The FCC Group also has a Criminal Prevention Model, developed, among other aspects,
through a specific matrix of risks and controls. Its integration into the organisation’s pro-
cesses contributes to strengthening the control environment. This is in addition to a Tax
Code of Conduct and a Tax Control Framework Standard, in which the process of identi-
fying and assessing tax risks and assigning responsibilities for both the management and
reporting of these risks is implemented.
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E.2
Identify the bodies at the Company responsible for the development and execution
of the Risk Management System, including the tax risk management system.
cases where breaches or inefficiencies in the functioning of controls have been detected,
submitting these proposals to the Corporate Compliance Officer.
The Board of Directors is responsible for approving the FCC Group control and risk man-
agement policy, identifying the main risks identified by the company and implementing and
monitoring the appropriate internal control and information systems, with a view to ensur-
ing both the future viability and competitiveness of the Group, adopting the most relevant
resolutions to implement them in the best possible way.
Furthermore, it is the responsibility of the Audit and Control Committee to supervise and
analyse the effectiveness of the internal control and risk control and management policy,
ensuring that it identifies:
– The different types of risks to which the Group is exposed, including financial or eco-
nomic risks, contingent liabilities and other off-balance sheet risks.
– The definition of the level of risk that the Group considers acceptable.
– The measures planned to mitigate the impact of the risks identified, should they mate-
rialise.
– The information and internal control systems that will be used to control and manage
the aforementioned risks, including contingent liabilities or off-balance sheet risks, and
submit them to the Board for approval.
In this connection, the FCC Group Risk Management Model is based on the establish-
ment of three levels of risk management and internal control, the first two residing with the
business units and the third with the corporate areas.
The first level is assumed by the operating lines of the business unit, which act as risk
generators and have the responsibility of managing, monitoring and adequately reporting
the risk generated, including tax risk.
The second level, also assumed by the business units, consists of support, control and
supervision teams, ensuring effective control and adequate risk management, including
tax. Within this level, the management area of each business unit is responsible for the
implementation of the Risk Management Model, including those risks related to financial
information. The Business Compliance Officer assists the Corporate Compliance Officer
in the dissemination of the Criminal Prevention Model, in the identification of risks and in
the definition and monitoring of controls, and proposes action plans, within its scope, in
The third level consists of corporate areas that report to Senior Management and/or to
the Audit and Control Committee. This third level encompasses the Tax Division, respon-
sible for the definition of tax policies, procedures and criteria generally applied to the FCC
Group and the Corporate Compliance Officer, whose duties include the implementation
of the Crime Prevention Model, the identification of risks in this area, and the definition
and follow-up of the relevant controls, as well as the management of the Whistleblowing
Channel and the proposal of action plans in cases in which breaches or inefficiencies
have been detected in the operation of the controls. The Internal Audit and Risk Manage-
ment areas, which report to the Audit and Control Committee, are also part of this third
level. The Risk Management area is responsible for coordinating the Risk Management
Model, defining a baseline methodology for identifying, assessing and reporting risks,
providing support to those responsible for its implementation, and the Internal Audit area,
in its capacity as the final level of control, ensures that the policies, methods and proce-
dures are adequate and verifies their effective implementation.
E.3
Indicate the main risks, including tax risks and the extent to which those involving
corruption are significant (the latter being understood within the scope of Royal
Decree Law 18/2017), which may affect the achievement of business objectives.
Below, details are provided of the main risk scenarios, grouped by categories: strategic,
operational, compliance and financial.
Strategic Risks
Regulatory changes and political and socio-economic instability in countries and/
or regions. Possible regulatory changes in social, tariff, commercial, labour, corporate,
health, environmental and tax matters, etc., as well as changes in the public models for
the development and management of environmental services, the end-to-end water cy-
cle and infrastructures, or periods of economic, political or social instability in countries/
regions in which the FCC Group operates or could operate, may lead to a reduction in
business opportunities or a decline in the profitability of projects.
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Global climate or health crises, natural disasters and regional armed conflicts.
Short- and medium-term climate disruptions, extreme weather phenomena, epidemics
and pandemics, armed conflicts or terrorist activities that would affect the areas and ter-
ritories in which the FCC Group operates and, consequently, the demand for goods and
services, the operations and level of activity, and the infrastructures built and operated by
the group. In addition, costs could increase due to ecological transition policies or health
constraints, and mobility and optimisation of supply chains for goods and services could
be hampered, affecting the achievement of the group’s objectives.
Cut in investment and demand forecasts. A decline in GDP in the countries in which
the group operates, the increase in public and private debt and changes in the forecasts
and investment priorities of current and potential customers may have different negative
impacts on the FCC Group. Furthermore, the revenues the Business Areas for Environ-
mental Services, Water, Concessions and Real Estate are, to some extent, dependent
on the level of demand, which is subject to change as a result of conditions beyond the
control of the FCC Group.
Loss of market share. The FCC Group works in highly competitive markets. Any difficul-
ty in developing competitive and profitable bids, as well as the entry of new competitors
in mature markets or regulatory and commercial barriers or restrictions for environmental
or health reasons, could lead to a loss of market share.
Damage to reputational image. The FCC Group may be involved in certain internal
or external circumstances that could adversely affect its reputational image and conse-
quently its business.
Operational Risks
Termination or unilateral modification of a contract, contractual issues and legal
disputes. Clients may unilaterally modify or terminate certain contracts before their com-
plete execution. The compensation that the FCC Group would receive in these cases
may not be sufficient to cover the damages caused and, in addition, the FCC Group may
need to resort to legal or arbitration procedures to collect it, thus increasing costs and
delaying the actual receipt of the compensation. Furthermore, different interpretations of
contractual and regulatory requirements may lead to discrepancies that could have an
impact on the outcome of the projects.
680
Project reprogramming. A situation of political and/or financial economic instability in
certain markets in which the FCC Group operates, together with other circumstances
outside FCC’s control, such as the lack of availability of land for infrastructure projects, or
a delay in obtaining licences, health or environmental restrictions, disruption of the supply
chain for goods and services or other things, could lead to the rescheduling of projects
underway with an impact on their results.
Risks arising from links with third parties. The FCC Group could undertake its busi-
ness activities jointly with public authorities or private entities through different forms of
association. However, adverse circumstances in the project, or in a partner’s economic or
reputational situation, could lead to a situation that could adversely affect the FCC Group.
Uncertainty in pricing and optimisation of the supply chain, raw materials, energy
and outsourced services. In the course of its activities, the FCC Group consumes con-
siderable volumes of raw materials and energy, as well as working with a great number of
subcontractors and manufacturers. Changing economic, environmental, health and reg-
ulatory conditions could lead to price fluctuations and difficulties in optimising the supply
of goods and services, which could affect the FCC Group’s results.
Labour conflict. Some of FCC Group’s activities are labour intensive, with considerable
geographical diversity (each with their respective labour laws), that for different reasons
could lead to conflicts that will would the company’s productive capacity and reputation.
Loss of human capital. The success of the FCC Group’s business operations depends
largely on key personnel with technical and managerial experience, so a substantial loss
of such personnel could affect the completion and results of certain projects.
Risks associated with digitisation. Increased digitisation of operations and the rise of
remote working could lead to disruptions in an ever-changing environment with continu-
ous innovation.
Cyber attacks. The existence of threats of a cybernetic nature could affect tangible and
intangible assets and lead to prolonged interruption, uncontrolled access and information
and data leaks and/or hijacking.
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Health and safety risks. One of the FCC Group’s priority aims is to perform its activities
with a high level of health and safety for all personnel, and to comply strictly with legal reg-
ulations in the field, which is reflected in the Prevention of Risks at Work Policy approved
by the Board of Directors. Even so, the FCC Group could be affected by the health crisis
and incidents or accidents in the development of its activity that could harm and interfere
with operations.
Environmental damage. CC’s environmental commitment is mirrored in the Group’s En-
vironmental Policy approved by the Board of Directors. The Group has environmental
management systems in place, implemented in projects and contracts that are audited
and certified in accordance with the UNE-EN-ISO 14001 Standard. However, due to the
nature of the Group’s activities, there may be circumstances under which damage may
occur in the form of spills, emissions, etc., that have an impact on projects and contracts.
Compliance Risks
Regulatory or contractual non-compliance. The FCC Group’s operations should re-
spect all applicable regulations and these will vary from one jurisdiction to another and
even from one municipality to another, as well as being subject to modifications. However,
under certain circumstances, there may be short-term non-compliance with regulations,
especially in the phase of adaptation to new legislation that could be enacted. Also, in
certain projects it may be difficult to comply with all contractual requirements.
Non-Compliance with the Code of Ethics. The FCC Group has a Code of Ethics and
Conduct, a Manual for Criminal Prevention and, among others, Anti-Corruption, Human
Rights, Tenders, Agents, Gifts and partner relationship Policies regarding Compliance
that have been approved by the Board of Directors, as well as a protocol for the preven-
tion and eradication of bullying, all of which are binding on anyone linked to any company
in the FCC Group. The high level body entrusted with promoting and supervising the
Compliance Model is the Compliance Committee, chaired by the Corporate Compliance
Officer.
Nevertheless, in the course of operations and relationships with clients, partners and
suppliers, situations could arise that could lead to potential non-compliance with these
regulations, resulting in legal, economic and reputational damages for the Group.
Financial Risks
Credit risk and liquidity risk. Both risks are mainly attributable to accounts receivable
and are therefore related to the Group’s exposure to the credit risk of its clients and the
liquidity lines available to them. The Group monitors the credit quality of its clients, the
liquidity and financing lines for each of the companies to mitigate this risk.
Restricted access to financial markets. In specific circumstances, there may be some
difficulty in obtaining or renewing corporate financing or for the execution of certain pro-
jects, due to situations of general instability that cause temporary disruption for the capital
markets, requirements or guarantees requested by financiers, as well as the viability of the
economic models that justify the repayment of funds. All this could affect regular funding,
normal business, or result in the loss of business opportunities.
Impairment of the commercial fund. The FCC Group’s commercial fund has a sig-
nificant positive balance. FCC cannot guarantee that the Group will not incur losses/
adjustments as a result of impairment of the commercial account or any other of the
Group’s material assets. If this should occur it could significantly affect the FCC Group’s
economic result.
Recoverability of deferred tax assets. At a consolidated level in the FCC Group there is
a certain volume of deferred taxes, mostly corresponding to the Spanish tax group. Their
recoverability could be affected by the cyclical nature of the Fiscal Group’s profit, or by
future changes in tax rates, especially corporate tax in Spain.
Fluctuation of exchange rates. Exchange rate risk is primarily located in borrowings
denominated in foreign currencies, investments in international markets and payments
received in currencies other than the euro.
Fluctuation of interest rates. The purpose of the Group’s financial policy is to make
sure that exposure of its debt is partially linked to variable interest rates. Any increase in
interest rates could give rise to an increase in the FCC Groups’s financial costs associated
with borrowings at variable interest rates and could also increase the cost of refinancing
the FCC Groups’s borrowings and the issue of new debt.
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E.4
Identify whether the entity has risk tolerance levels, including for tax risk.
– Inefficiencies in the supply chains of goods and services and in the mobility of
According to the Risk Management Model, the level of tolerance to risk assumed by the
FCC Group shall be dynamic over time, and shall vary depending on internal and/or ex-
ternal factors. It shall be defined by the Board of Directors and aligned with the strategy.
The elements that shall define the risk appetite of the FCC Group are as follows:
human resources assigned to projects
FCC has contracts in various countries around the world and optimises its supplies
and work teams globally. Restrictions on the mobility of people, goods and services
decreed by various countries for health reasons during 2020 have altered the logistics
planned for certain projects carried out by the group.
– A general profile of medium-to-low and predictable risk, based on a diversified busi-
– Rescheduling of certain projects, especially in the infrastructure area
ness model.
– A stable and recurring policy for the generation of income.
– Intense participation of Senior Management that guarantees a culture of risk manage-
ment focused on the protection and assurance of an adequate return on capital.
– A management model that ensures a global and interrelated vision of all risks, as part
of a robust risk control environment, with responsibilities at different levels.
– The undertaking of its activity based on a behavioural model that protects the interests
of its clients and shareholders.
– Zero tolerance against bribery and corruption.
– Concerning tax risk, the Tax Control Framework Standard defines the general tax risk
management policy and the levels of tax risk that can be assumed.
E.5
Indicate the risks, including tax risks, that have materialised during the business
year.
In 2020, the following risks have materialised:
– Reduced activity as a result of measures decreed to curb the COVID-19 health
crisis
Despite the fact that the group’s main activities are the provision of services classified
as essential, such as waste management, water supply, urban sanitation and infra-
structure management, and the stability of demand for these services, the measures
decreed for health reasons due to the pandemic declared by the WHO have had some
impact on activity levels.
Various operational, technical and design circumstances, the availability of work are-
as, contractual interpretation, and especially the measures decreed to deal with the
COVID-19 pandemic declared by the WHO, have made it necessary to reschedule
certain projects. The FCC Group carries out various initiatives, such as including con-
tractual clauses that allow the costs arising from said rescheduling to be passed on,
in addition to an active commercial relationship with the client in search of satisfactory
solutions for both parties. The year’s economic environment, however, has entailed
added difficulties for negotiations in this area.
– Contract and legal disputes
The high number of contracts with customers, suppliers and partners, as well as the
possible requirements of authorities in different jurisdictions, means that the FCC
Group is a party to civil, employment, criminal, arbitration, administrative, regulatory
and similar proceedings that arise during the course of its ordinary business.
– Changes in exchange rates of currencies with which the Group operates
The volatility in the different currencies that affect the FCC Group’s businesses con-
tinued this business year, with the devaluation of the US dollar and the Mexican peso
having a significant impact. FCC Group’s general policy is to mitigate the adverse ef-
fect on its financial statements of exposure to foreign currencies as much as possible,
with regard to both transactional and purely equity-related movements. Therefore, the
FCC Group manages the exchange rate risk that may affect both the Balance Sheet
and the Income Statement, through natural coverage whenever possible, or by con-
tracting different financial instruments.
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- New regulatory framework following the UK’s exit from the EU
Following the entry into force of the United Kingdom’s Withdrawal Agreement from
the European Union, the FCC Group continues to monitor the potential effects on its
businesses, especially in the Environmental Services area, and has developed plans to
adapt to possible changes.
E.6
Explain the response and supervision plans for the company’s main risks, including
tax risks, as well as the procedures followed by the company to ensure that the
Board of Directors responds to any new challenges that arise.
Both the FCC Group ‘s Risk Management Model and its Compliance Model establish
comprehensive frameworks for the identification, assessment and management of risks
in their respective fields of application.
Once the risks have been identified and prioritized, it is expected to establish control
mechanisms through the Risk and Control Matrices that will include key controls aimed
at preventing and/or mitigating the risks and the definition of persons in charge of these
control activities. For those risks that exceed the accepted level of risk or when non-fulfil-
ment or inefficiencies are detected in the operation of the controls, specific Action Plans
will be established taking into account their operational viability, their possible effects, as
well as the cost-profit ratio of implementation.
The supervision of the Risk Management Model is carried out by the Business Divisions
with the support of the Risk Management area, while supervision of the Ethics and Com-
pliance programmes is carried out by the Compliance Committee, chaired by the Corpo-
rate Compliance Officer with the support of the Compliance Officers of the businesses,
following certification of controls and processes by their owners.
In light of potential political and socio-economic uncertainties, and especially in light of
the increase in national deficits and public debt, the FCC Group will continue to focus
on consolidating its diversified international positioning, maintaining its market share in
mature markets, and on seeking new formulas for public-private partnerships for the
development of the end-to-end water cycle, environmental services and infrastructures,
included in medium and long-term contracts.
Faced with risks caused by climate and health crises, the FCC Group maintains its posi-
tion as a leading provider of services classified as essential, such as waste collection and
treatment and street cleaning, the end-to-end water cycle service and the management
and maintenance of transport infrastructures, which are business areas with low flexibil-
ity in demand and stable and predictable medium- and long-term cash flows. FCC has
created its own strategy to adapt to climate change in Horizon 2050 that integrates all its
business lines, and which is aimed at mitigating the risks associated with climate change
by taking advantage of the business opportunities it represents, based on five pillars:
communication with stakeholders, reduction of carbon footprint, innovation in products
and services integrating their businesses in the circular and low-carbon economy, moni-
toring of emissions and adaptation to regulatory changes.
In relation to the risk of termination or modification of contracts and the rescheduling of
projects, the FCC Group continuously monitors contractual contingencies, the planning
and budgeting of operations and pursues an active negotiation policy.
Furthermore, the FCC Group monitors its key suppliers to avoid the risks of inefficiencies
in the supply chain, both due to financial difficulties of suppliers and supply problems and
stock depletion owing to alterations in the production chain and in the normal transit of
goods due to the impact of restrictions for health or regulatory reasons. To mitigate risks
involving the uncertainty and volatility of the prices of raw materials, energy and subcon-
tracted services, before which purchasing procedures are applied preventively, also using
deviation analysis as an indicator to detect deviations.
FCC’s business units also have quality assurance, environmental management and oc-
cupational risk prevention systems, certified in accordance with international standards.
Some of these units are part of the European Commission’s Eco-Management and Audit
Scheme, which is all designed to address these types of operational and compliance
risks.
With regard to the risk of vulnerability to natural disasters, in addition to implementing
different preventive actions, the FCC Group’s policy sets to take out the necessary in-
surance policies to cover the possible risks to which the various elements of its property,
plant and equipment and the activities carried out are subject.
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To address the risks related to cyber attacks and information security, the FCC Group
has an operational unit responsible for preventing, detecting, analysing and mitigating
factors related to security events, such as intrusion, attacks, etc., as well as an Informa-
tion Security Management System designed in line with international standards, and that
has received third party certification for certain business areas. The FCC Group also has
an internal policy for complying with the requirements of the data protection regulations,
in addition to those responsible for this function both in the business units and at a cor-
porate level.
In terms of other compliance risks, the FCC Group has a Code of Ethics and Conduct,
which aims to ensure all persons linked to any FCC Group company are guided by the
strictest behavioural guidelines in compliance with laws, regulations, contracts, proce-
dures and ethical principles, being binding on all these persons. The FCC Group’s Com-
pliance Model also has, among other elements, documented policies on relationships
with partners in matters of compliance, anti-corruption, agents, gifts and tenders, and is
complemented by a Criminal Prevention Manual, compliance committee regulations, and
documented procedures for investigation and response and the Whistleblowing Channel,
as well as other procedures that further develop the different principles of action included
in the Code of Ethics and Conduct.
Regarding financial risks, they are controlled by specialist departments at the business
units, together with the General Administration and Finance Division, whose tasks include
reaching decisions on risk transfer mechanisms (insurance), covering interest rate varia-
tions, and managing asset risks.
684
F. Internal risk control and management
systems in relation to the financial
information reporting process (IFRS)
Describe the mechanisms that make up the risk management and control systems in
relation to the process of reporting your institution’s financial information (IFRS).
F.1
Institution’s control environment.
State, indicating their main characteristics, at least:
F.1.1. The bodies and/or areas responsible for: (i) the existence and maintenance of
adequate and effective IFRS; (ii) its implementation; and (iii) its supervision.
The Internal Financial Reporting Control System (hereinafter IFRS) shall provide the Audit
and Control Committee and Senior Management with reasonable assurance about the
reliability of the financial information submitted for approval to the Board and that is peri-
odically disclosed to regulators and the market.
The bodies and areas at the FCC Group responsible for ensuring the existence, mainte-
nance, implementation and supervision of an adequate and effective IFRS, as well as the
responsibilities attributed to these bodies are as follows:
Board of Directors.
The duties of this Governing Body include:
– Ultimate responsibility for the approval of the Risk Control and Management Policy,
including tax risks, identifying the main risks faced by the Company and implementing
and monitoring the appropriate internal control and information systems, as well as the
supervision of internal information and control systems.
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– Defining the information and communication policies with shareholders, markets and
public opinion, ensuring the quality of the information provided, approving the financial
information that, due to its listed status, the Company must publish periodically.
Audit and Control Committee.
In relation to the Information and Internal Control Systems, the Audit and Control Com-
mittee is responsible for:
– Periodically reviewing, among other aspects, the process of preparing economic-fi-
nancial information, its internal controls and the independence of the external auditor.
– The supervision of the Company’s Internal Audit services that ensure the proper func-
tioning of the information and internal control systems, with the person responsible for
the Internal Audit function being required to present his or her annual work plan to the
Committee and directly inform this body of any incidents that occur in the performance
of his/her duties and submit a report on his or her activities at the end of each business
year.
– The supervision and analysis of the effectiveness of the Company’s internal control
and of the risk control and management policy approved by the Board of Directors,
ensuring that it identifies, as a minimum:
• The different types of risks to which the Group is exposed, including financial or
economic risks, contingent liabilities and other off-balance sheet risks.
• Setting the level of risk that the Company considers acceptable.
• The measures planned to mitigate the impact of the risks identified, should they
materialise.
• The information and internal control systems that will be used to control and man-
age the aforementioned risks, including contingent liabilities or off-balance sheet
risks.
– The supervision of the preparation process and the integrity of the financial information
related to the Company and its Group, reviewing compliance with regulatory require-
ments, the adequate definition of the consolidation perimeter and the correct applica-
tion of accounting criteria.
– The supervision of the process of preparing and submitting individual and consolidat-
ed annual accounts and management reports, and the periodic financial information
that is disseminated to the markets, ensuring compliance with the legal requirements
and the correct application of generally accepted accounting principles, informing the
Board of Directors of the financial information that, given its status as a listed company,
the Company is required to publish periodically.
– The supervision of the auditor and his/her independence, including the reception of
reports and the authorisation of certain services that could pose a threat to his/her
independence.
– The supervision of the proper functioning and effectiveness of the Crime Prevention
Model.
Senior Management.
The Senior Management of each of the units is ultimately responsible for the implemen-
tation of the Risk Management and Internal Control Model; its duties include the imple-
mentation of an effective and efficient control system for risks, including those associated
with financial information.
General Administration and Finance Division.
The General Administration and Finance Division performs its duties in the areas of Ad-
ministration, Information Systems and Technologies, Finance, Purchasing and Human
Resources.
The Administration area directs the administrative management of the FCC Group and
has the following duties, among others, in relation to Information Systems and Internal
Control: general accounting, accounts standardisation, consolidation, tax advice, and tax
procedures, tax compliance and the management of administrative procedures.
The Finance area, in relation to the Information and Internal Control Systems, its aims and
actions are structured around financing the Group’s activities, the management of its debt
and financial risks, the optimisation of the treasury and financial assets, financial manage-
ment and control, the management of markets and CNMV, the analysis and financing of
investments, the management, monitoring and control of guarantees and collateral, the
management of insurance and industrial and property risks and management control.
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The Information Systems and Technologies area of the FCC Group ensures that adequate
technological support is provided to the Group’s management processes, optimising the
level of service provided to users, and ensuring the confidentiality and integrity of in-
formation systems. Reporting to this area, the FCC Group has an Information Security
Department responsible for defining, and implementing internal controls to verify proper
compliance with corporate information security policies, including those that support the
processes of preparing and publishing financial information, and that assume responsibil-
ity for data protection matters.
General Internal Audit and Risk Management Division.
Its objective is to provide the Audit and Control Committee and Senior Management
with an independent and objective opinion on the Group’s ability to achieve its objectives
through a systematic and methodological approach for the assessment, management
and effectiveness of internal control and risk management processes, assessing the ef-
fectiveness and reasonableness of the internal control systems, as well as the functioning
of processes according to the procedures, proposing improvements and providing meth-
odological support to the Division in the process of identifying the main risks that affect
activities and supervising the actions for their management.
The responsibilities in relation to the Financial Information Control Systems of the General
Internal Audit and Risk Management Division include the supervision of the process of
preparing and submitting the Group’s financial information before it is issued to the mar-
ket, as well as contributing, together with the other areas involved, the development of
internal controls by monitoring compliance with the policies, standards, procedures and
activities that constitute the internal control model to ensure the correct management
and reduction of risks, issuing recommendations for their improvement. Its responsibilities
also include the supervision of projects and processes, performing a risk identification
and an assessment of the control environment.
Compliance Committee.
This high-level internal management committee, with autonomous initiative and control
powers entrusted by the Board of Directors, through its Audit and Control Committee, is
responsible for promoting a culture of ethics throughout the Organisation and ensuring
both internal and external regulatory compliance. Its duties and competencies include
the monitoring and supervision of ethics and compliance programmes, as well as the
Code of Ethics and Conduct, existing policies, rules, procedures and controls aimed,
686
among other objectives, at preventing unlawful conduct. It is chaired by the Corporate
Compliance Officer.
F.1.2. Whether the following elements are in place, especially in relation to the process
of preparing financial information:
• Departments and/or mechanisms in charge of: (i) designing and reviewing the
organisational structure; (ii) of clearly defining the lines of responsibility and au-
thority, with an adequate distribution of tasks and functions; and (iii) ensuring
there are sufficient procedures for its correct dissemination throughout the insti-
tution.
The highest authority for the design and review of the organisational structure as well
as the definition of the lines of responsibility and authority is the CEO, appointed by the
Board of Directors. Each Corporate or Business Division must define the organisational
structure and the lines of responsibility of its management.
The process of determining the organisational structure is regulated by section 10 of the
Group’s General Standards Manual, which regulates the bodies that directly report to the
Board of Directors, the distribution of the Group’s management duties, and the appoint-
ment of managerial positions.
The first-level organisational structure is available on the corporate intranet, with the dif-
ferent business units having their own organisational structures associated with specific
projects and contracts.
The Appointments and Remuneration Committee is responsible for examining and or-
ganising the succession of the Chairman of the Board of Directors and the CEO of the
Company and, where appropriate, making proposals to the Board of Directors for this
succession to take place in an orderly and planned manner. This is in addition to report-
ing on proposals for the appointment and dismissal of senior executives and the basic
conditions of their contracts.
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Among its specific responsibilities in terms of the Internal Financial Reporting Control
System, the Administration area of the General Administration and Finance Division is
responsible for the assumption of high-level executive functions in the management of
the IFRS, the execution of control activities relating to the consolidation subprocess and
the normalisation of the processes relating to the preparation of the information. The Risk
Management areas responsibilities include methodological support in the identification
of risks and controls in the process of preparing financial information. Finally, the Internal
Audit area supervises the process of preparing and submitting the Group’s financial infor-
mation before it is issued to the market.
• Code of conduct, approval body, degree of dissemination and awareness, prin-
ciples and values included (indicating whether there are specific mentions to the
register of operations and preparation of financial information), body in charge
of analysing non-fulfilment and proposing corrective actions and sanctions.
The Board of Directors, as a non-delegable power, is responsible for approving the FCC
Group’s Regulations or Internal Codes of Conduct. The Audit and Control Committee,
in accordance with the aforementioned Regulations, is responsible for ensuring that the
Internal Codes of Conduct and the Corporate Governance Rules comply with the regu-
latory requirements and are adequate for the Company, as well as reviewing compliance
by those affected by these codes and rules of governance with their duties to inform the
Company.
The FCC Group has a Code of Ethics and Conduct, the last update of which was ap-
proved by the Board of Directors in September 2019, which aims to ensure all persons
linked to any FCC Group company, regardless of the type of contract applicable to their
employment relationship, position or geographical area in which they perform their work,
are guided by the strictest behavioural guidelines in compliance with laws, regulations,
contracts, procedures and ethical principles, being binding on all these persons.
This Code is published both on the corporate intranet, as well as the Group’s website, in
14 languages, where it can be read, performing awareness raising and communication
campaigns and encouraging employees’ compliance through different internal means, in
both physical and electronic formats, with a view to strengthening the personal commit-
ment of employees to the company’s ethical compliance system. Likewise, training on the
Code of Ethics and Conduct, and on its implementing policies and procedures, is a key as-
pect, present in the annual training plans of the FCC Group and its subsidiary companies.
687
In line with previous business years, in 2020 various training activities were carried out
on the Code of Ethics and Conduct, mainly online, through the company’s new training
platform “FCC Campus”, due to the social and health crisis affected all the Group’s regions
due to COVID-19 since March.
Specifically, during the business year, five new online training courses were provided as
part of the FCC Campus Compliance and Values schools: training on the Code of Eth-
ics and Conduct; Anti-Corruption training; training on the use of technological resourc-
es; training on workplace and sexual harassment; and training on bidding processes, in
order to ensure alignment with the Code of Ethics and Conduct. A total of 18,321 FCC
Group students successfully completed these ethics training courses in 2020, amounting
to 11,633 hours of training.
Among the principles of action included in this Code are respect for the law and ethical
values, zero tolerance for bribery and corruption, the prevention of money laundering and
financing terrorist activities, protection of free competition and good practices in the mar-
ket, ethical behaviour on the stock market, avoidance of conflicts of interest, rigour in the
control, reliability and transparency of information, protection of the Group’s reputation and
image, the efficient and safe use of the company’s resources and assets, the monitoring
of property and the confidentiality of data and information, a customer orientation, the
prioritisation of people’s health and safety, the promotion of diversity and fair treatment,
the commitment to our environment, a transparent relationship with the community and
extending the commitment to ethics and compliance to business partners.
The FCC Group’s Compliance Model has, among others, documented policies on rela-
tionships with partners in matters of compliance, anti-corruption, Human Rights, agents,
gifts and tenders, and is complemented by a Criminal Prevention Manual, Compliance
Committee regulations, and documented procedures for investigation and response and
the Whistleblowing Channel, as well as other procedures that further develop the different
principles of action included in the Code of Ethics and Conduct.
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Regarding the registration of transactions and the preparation of financial information, the
current Code of Ethics and Conduct, under “Rigour in control, reliability and transparency”,
specifies “The information of the FCC Group must be prepared with the maximum relia-
bility, complying with the applicable regulations and company rules and be duly guarded
and conserved”, stating that the process of accounting, registering and adequately and
comprehensively documenting all transactions, income and expenses, at the time they
occur, should be monitored without omitting, hiding or altering any data or information, so
that the accounting and operational records faithfully reflect reality and can be verified by
the control areas and by internal and external auditors. Failure to follow these premises
could be considered to be fraud. The circumvention of the company’s internal controls will
be grounds for sanction”. In addition, the FCC Group has a Tax Code of Conduct, which
also includes a commitment to transparent behaviour in tax matters and an Internal Code
of Conduct in the area of the FCC Group’s Securities Market.
The Board of Directors has entrusted the Compliance Committee with the task of pro-
moting an ethical culture throughout the organisation, ensuring both internal and external
regulatory compliance. Its main duties and competencies include the management of the
Whistleblowing Channel and the surveillance and supervision of ethics and compliance
programmes, as well as the Code of Ethics and Conduct, and of policies, rules, proce-
dures and controls. The Corporate Compliance Officer is the Chairman of the Compliance
Committee and informs this Committee, at least monthly, about the performance of its
duties and the level of regulatory compliance.
Furthermore, each of the Group’s businesses has its own Business Compliance Officer,
who assists the Corporate Compliance Officer in the implementation of the Crime Preven-
tion Model, in the identification of risks, in the definition and monitoring of controls and in
the handling of complaints and investigations relating to crimes and reported breaches
of the Code of Ethics and Conduct. Furthermore, the Business Compliance Committees
have been set up as a Crime Prevention body that supports, in this connection, both the
Board of Directors or the equivalent decision-making body and the Corporate Compliance
Committee itself.
688
• Whistleblowing channel, which allows for the reporting to the audit committee of
irregularities of a financial and accounting nature, in addition to possible breach-
es of the code of conduct and irregular activities in the organisation, stating, if
applicable, whether it is confidential in nature and whether it allows for anony-
mous reporting, respecting the rights of the complainant and the reported party.
The FCC Group has a Whistleblowing Channel, through which it is possible to confiden-
tially report activities and behaviours that may involve a breach of any of the aspects of
the Code of Ethics and Conduct, including potential irregularities that could have criminal
consequences.
Communications can be made in three ways:
– Via the corporate intranet.
– Sending an email to a specific email address.
– Sending a letter addressed to a specific post box.
All communications are received and analysed confidentially by the Compliance Commit-
tee, and a clear protocol will apply to them comprehensively, so as to respond to them
and handle them in an organised fashion. The management of the Whistleblowing Chan-
nel is regulated in the Whistleblowing Channel Procedure. The guidelines, procedures,
tools and mechanisms for managing the different types of investigations within Com-
pliance Model Monitoring are governed by the Investigation and Response Procedure,
which guarantees the rights of the parties.
The functioning of the Whistleblowing Channel is described in the Whistleblowing Chan-
nel Procedure, available on the corporate intranet, in the “Policies, procedures and man-
uals” section, as well as in the Code of Ethics and Conduct itself, which specifies the
obligation of all persons linked to FCC Group companies to report any breach of the Code
of Ethics and Conduct of which they become aware.
In accordance with current data protection regulations, notifications through the Whistle-
blowing Channel can be either identified or anonymous, bearing in mind, in any case, that
the system established guarantees the confidentiality of the complainant and takes into
account the principle of non-retaliation against the person who has made a complaint.
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• Training and periodic update programmes for staff involved in the preparation
and review of financial information, as well as in the assessment of the IFRS,
covering at least accounting standards, audits, internal control and risk man-
agement.
Training plans, both for the business units and at a Corporate level, include different
training actions focussing on the acquisition, updating and recycling of economic-finan-
cial, regulatory, control and risk management knowledge, as well as other regulatory and
business aspects, knowledge of which is necessary for the proper preparation and su-
pervision of the Group’s financial information. During 2020, 16,082 hours of specific train-
ing were provided on these subjects, among which the following training actions stand
out: development of accounting treatments in International Financial Reporting Stand-
ards, investment analysis and financial modelling, reporting and budget control in project
management, taxation, analysis of financial projections, asset and project financing, data
protection, etc.
F.2 Assessment of financial information risks
Report, at least:
F.2.1. The main characteristics of the risk identification process, including error or fraud,
in terms of:
• Whether the process exists and is documented.
The FCC Group Risk Management Model establishes a comprehensive framework for
the identification, assessment and management of risks at all levels of the organisation,
assigning responsibilities in different areas and levels of the Organisation.
Based on a cross-cutting risk matrix, the business units identify and assess the different
risks, in terms of probability of occurrence and impact. This risk matrix includes risks
relating to errors in the preparation of financial information under different perspectives.
Section E of this Annual Corporate Governance Report details the activities, responsibili-
ties and functioning of the FCC Group Risk Management Model.
689
• Whether the process encompasses all the financial information objectives (ex-
istence and occurrence; integrity; appreciation; presentation, breakdown and
comparability; and rights and obligations),whether it is updated and how often.
The FCC Group’s Risk Matrix contemplates, from different perspectives, risks related to
the most relevant financial information objectives. On the one hand, as part of Operational
and Financial Risks, different aspects relating to the analysis, monitoring and efficiency
in the management of different financial information are considered. As part of Compli-
ance Risks, the repercussions of non-compliance with the regulatory requirements in
accounting, commercial and corporate matters are contemplated. The risk of fraud is
contemplated in the Crime Prevention Model. Finally, as part of Reporting Risks, several
risks relating to shortcomings in reporting models and systems are considered, including
but not limited to aspects of reliability, timeliness and transparency.
Both the identification process and the risk assessment process include periodic up-
dates, taking into account both business needs and external factors. In addition, there
are regular reports on the most significant risks of the different business units as well as
the corporate functions.
• The existence of a consolidation perimeter identification process, taking into
account, among other aspects, the possible existence of complex corporate
structures or special purpose entities.
Each of the areas into which the FCC Group is organised is responsible for maintaining
and updating the consolidation perimeter corresponding to its area of activity. Docu-
mented procedures are also in place for the reporting of consolidated economic and
financial information to the Administration Area, for the creation of consolidation perime-
ters and the execution of the consolidation process. The Accounting Consolidation and
Standardisation Department carries out accounting standardisation duties to ensure that
the accounting reflection of operations is correct and uniform in all the companies that
make up the FCC Group and carries out the consolidation process to obtain the Group’s
consolidated financial statements. Additionally, periodic controls are performed on the
correct accounting treatment of companies that make up the consolidation perimeter.
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• Whether the process takes into account the effects of other types of risks (op-
erational, technological, financial, legal, reputational, environmental, etc.) to the
extent that they affect the financial statements.
The FCC Group’s Risk Matrix includes different operational, technological, information
security, financial, legal, environmental and reputational risks, in addition to others, which
are divided into the following five broad categories: strategic, operational, compliance,
financial and reporting risks. These risks are valued considering their potential impact on
the financial statements should they materialise.
• Which governing body at the entity supervises the process.
The Audit and Control Committee is responsible for the regular supervision of the inter-
nal control and risk management systems, including tax risks, so that the main risks are
properly identified, managed and disclosed. This is with the support of the Internal Audit
function in the review of controls, the General Administration and Finance Department
and the Corporate Compliance Officer, whose responsibilities include the review of risk
maps and controls related to the Criminal Prevention Model.
In addition, the business unit managements also supervise the risk identification process,
their main duties and responsibilities being the implementation of the Risk Management
Model, the analysis and monitoring of risks, the design of alert indicators and communi-
cation with the Risk Management function.
F.3
Control activities
Report, indicating their main characteristics, whether at least the following are in place:
690
F.3.1. Procedures for reviewing and authorising the financial information and description
of the IFRS, to be disclosed to the securities markets, indicating those in charge of
them, as well as descriptive documentation concerning the flows of activities and
controls (including those relating to fraud risk) of the different types of transac-
tions that may materially affect the financial statements, including the year-end
accounting procedure and the specific review of the relevant resolutions, esti-
mates, measurements and projections.
The high-level functions regarding the Internal Financial Reporting Control System are
assumed by the General Administration and Finance Division of the FCC Group, which
certifies the consolidated accounts in terms of their integrity and accuracy, with the ap-
proval of the CEO.
The conclusions of the internal control assessment performed by the external auditor as
part of the audit of accounts, together with the supervision performed by the General
Internal Audit and Risk Management Division, are submitted to the Audit and Control
Committee as part of reports containing the recommendations considered necessary.
Finally, the favourable report of the Audit and Control Committee is a preliminary step as
part of the preparation of the Annual Accounts and the Management Report by the Board
of Directors.
In addition, as part of the process of disclosing financial information to the securities mar-
kets, either quarterly or on an exceptional basis, or when a relevant fact is issued, those
responsible for each area review the information reported for the purposes of consolida-
tion. This information is consolidated by the Group’s General Administration and Finance
Division, which performs specific control activities as part of the year-end accounting
process to ensure the reliability of this information. The Internal Audit area supervises the
process of preparing and submitting the Group’s financial information before it is issued
to the market.
Additionally, the specific review of the relevant resolutions, estimates, measurements and
projections to quantify certain assets, liabilities, income, expenses and commitments re-
corded and/or broken down in the Annual Accounts, is also carried out by the General
Administration and Finance Division with support from the other divisions. Hypotheses
and estimates based on the evolution of the business are reviewed and analysed in co-
operation with the corresponding Business Divisions.
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For each of the business units, as well as for corporate services, the FCC Group has a
series of controls to regulate, supervise and monitor, among other aspects, business
management processes, the aim of which is to prevent and detect breaches of the FCC
Group’s policies and procedures and potential fraud risk situations.
In addition to the bases established in Articles 10, 11 and 14 of the Rules of the Board of
Directors, which describe the specific duties relating to the Annual Accounts, the Man-
agement Report and the relationship with the securities market, the FCC Group has
defined procedures in place on year-end and maintenance processes concerning the ac-
counts plan, including procedures to ensure the correct identification of the consolidation
perimeter. Specifically, the Economic-Financial Manual covers the accounting treatment
of the different types of processes and transactions that may affect Financial Statements
(accounting, tax, insurance, treasury, etc.), and includes a series of rules that make it
possible to obtain information of an economic-financial nature in a standardised manner,
including procedures to make economic and financial information available to the Ad-
ministration and IT areas, obtain consolidated information, tax reporting, submission of
financial statements, accounting, transactions with related parties, etc.
F.3.2. Internal control policies and procedures on information systems (among others, on
access security, change control, their operation, operational continuity and segre-
gation of duties) that support the institution’s relevant processes in relation to the
preparation and publication of financial information.
FCC has an Information Security Policy in place that defines the company’s information
security model, the regulatory body, organisation and responsibilities when it comes to
the security, classification of information, the information security areas, the risk analysis
model and the information auditing procedure. Internal control policies and procedures
on information systems cover all the Group’s information management processes, in-
cluding the processes for preparing and publishing financial information. Certain part of
the activities performed by Infrastructure (construction and Industrial) and Water have an
international certified ISO-27001 Information Security Management System.
Worth particular mention from among the Information Security System documentation
are the specific rules on database security, encryption, access control, equipment con-
figuration control, mobile device security, backup copies, incident management, systems
laboratories, networks, password security, privacy, security in developments, documents
691
and outsourcing services to external companies, physical security, roles and responsi-
bilities in information security, return of technological resources and compliance with the
requirements of the General Data Protection Regulation. This is in addition to the Policy
for the Use of Technology and the Information Management Policy. These regulations are
published on the corporate intranet.
In addition, the Information Technology area has procedures in place for managing the
life cycle of user access, managing changes to platforms and systems and managing
security incidents and breaches.
Information and application security is monitored continuously through an SOC (Security
Operations Centre) service, and periodic internal reviews of the computer control envi-
ronment are also performed.
In addition, the Centre of Expertise that provides the support and maintenance service
to the FCC Group’s ERP has obtained the SAP “Customer Center of Expertise Primary
Certification” certificate.
Lastly, in order to ensure a suitable separation of duties in the entity’s important processes
in relation to the preparation and publication of financial information, the FCC Group has
various tools, including role matrices and approval work flows.
F.3.3. Internal control policies and procedures aimed at supervising the management
of activities outsourced to third parties, as well as those aspects of assessments
calculations or measurements entrusted to independent experts, which may ma-
terially affect the financial statements.
The FCC Group’s Purchasing Regulations include a specific procedure for supplier man-
agement, applicable to all subcontracted activities that regulates official approval and
evaluation processes, among other matters. The Purchasing Manual, which was updated
in July 2020, describes these processes.
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With respect to the significant activities outsourced with an impact on the financial state-
ments, the FCC Group has outsourced the provision of management services for its
IT and telecommunications infrastructures, as well as support for the main corporate
applications. The Information Systems and Technologies Division has a standard that
defines the security criteria in terms of outsourcing to external companies, and specific
procedures for the control of outsourced services through the contractual regulation of
the following aspects:
– Governance mechanisms and service monitoring
– Audits, inspections and service reviews
– Service level management
– Monitoring and control of services performed by third parties that affect ISO 27001
certifications
The main outsourced activities relating to the execution or processing of transactions
reflected in the Group’s Financial Statements are the measurement of derivative financial
products, the performance of actuarial calculations and the appraisal of certain fixed as-
sets. These activities are controlled by the Administration and Finance Division.
The economic information prepared in certain projects by business partners is supervised
by the FCC Group’s management teams for standardisation prior to consolidation in ac-
cordance with the guidelines of the procedures on the economic and financial reporting
system and forms part of the auditable environment within the annual audit plans and the
scope of consolidation.
F.4
Information and communication
Report, indicating their main characteristics, whether at least the following are in
place:
F.4.1. A specific area in charge of defining, keeping accounting policies up to date (ac-
counting policies area or department) and resolving queries or conflicts concerning
their interpretation, maintaining fluid communication with those responsible for
operations across the organisation, as well as an up-to-date accounts policy man-
ual communicated across the units through which the company operates.
Responsibility for the application of the accounting policies at the FCC Group is central-
ised through the General Administration and Finance Division, to which the Accounting
Consolidation and Standardisation Department and Administrative Coordination Depart-
ment and Administrative Procedures and Tax Division report. These departments are
responsible for functions including but not limited to:
– Defining the Group’s accounting policies and incorporating them in the Financial Eco-
nomic Manual.
– Issuing the accounting regulations applicable to the Group.
– Resolving queries or conflicts concerning the interpretation or application of the
Group’s accounting policies to any company included in the perimeter and specifying,
clarifying or extending the instructions and regulations issued.
– Analysing single operations and transactions carried out or that the Group plans to
carry out with a view to ensuring their adequate accounting treatment in line with the
Group’s accounting policies.
– Interpretation of new developments in accounting regulations and their consistent ap-
plication in all the companies that form part of the Group.
– Resolution of tax queries and incidents and preparation of tax returns and compliance
with other tax obligations.
The Financial and Economic Manual that includes the accounting regulations is available
on the Group’s Intranet. It is updated and maintained by the different departments under
the General Administration and Finance Division. The FCC Group also has a Tax Code
and a Tax Control Framework Standard.
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F.4.2. Mechanisms for obtaining and preparing financial information in homogeneous for-
mats, for application and use by all units of the company or Group, which support
the main financial statements and notes, as well as the information provided on
the IFRS.
F.5
Supervision of the system’s functioning
State, indicating their main characteristics, at least:
The FCC Group has implemented SAP environment tools for the consolidation of the
economic-financial information used to respond to the reporting needs of its financial
statements. This tool makes it possible to centralise a significant part of the information
corresponding to the accounting of the individual financial statements of the Group’s
subsidiaries in a single system. The system is centrally managed and uses a single ac-
count plan. Through this tool, the General Administration and Finance Department col-
lects comprehensive information about the FCC Group as a whole, from both Spanish
and foreign companies.
The accounting policies, procedures and internal rules relating to year-end, reporting and
consolidation processes are described in the Group’s Financial and Economic Manual, in
addition to detailing the information that must be provided for the consolidation process
and defining both the reporting deadlines and the base documents and forms to provide
this information. This Manual also includes procedures for obtaining the consolidated in-
formation in SAP FC (creation of consolidation perimeters, execution of the consolidation
process, controls, etc.) and for all reporting phases, as well as other procedures relating
to the processes of applications in the SAP FC environment.
In addition, at year-end and with a view to publishing the annual financial report, the
Administration area of the General Administration and Finance Department sends the
year-end plan, including a series of instructions, to those responsible for providing the
corresponding financial information. The Administrative Coordination Department, speci-
fies, clarifies or extends these instructions when required.
The consolidated accounts follow the guidelines set out in the International Accounting
Standards (IAS) and the International Financial Reporting Standards (IFRS). With a view
to guaranteeing a homogeneous accounting process, the FCC Group has developed a
corporate chart of accounts that is also included in the Financial and Economic Manual.
In 2020, in order to comply with ESEF regulations, the IT tools for XBRL tagging of the
Consolidated Financial Statements and Notes to the Financial Statements have been
adapted with the aim of publishing these statements in XHTML format.
F.5.1. The IFRS supervision activities performed by the audit committee and whether
the company has an internal audit area responsible, in addition to other aspects,
for supporting the committee in its work to supervise the internal control system,
including the IFRS. Furthermore, the scope of the IFRS assessment carried out
during the year and the procedure through which the person in charge of carrying
out the assessment will communicate the corresponding results shall be indicated,
whether the company has an action plan detailing the possible corrective meas-
ures, and whether their impact on financial information has been considered.
The Audit and Control Committee performs the following activities:
– Inform the General Shareholders’ Meeting about the issues raised in relation to the
matters within its remit and, in particular, the outcome of the audit, explaining how it
has contributed to the integrity of the financial information and the role that the Com-
mittee has played in that process.
– Serve as a channel of communication between the Board of Directors and the external
auditor at the Company, assessing the outcome of each audit and ensuring his/her
independence.
– The supervision of the Company’s Internal Audit services to ensure the proper func-
tioning of the information and internal control systems, with the person responsible for
the Internal Audit function being required to present his/her annual work plan to the
Committee and directly inform this body of any incidents that occur in the performance
of his/her duties and submit a report on his/her activities at the end of each year.
– Supervise and analyse the effectiveness of internal control at the Company and the
Risk Control and Management Policy approved by the Board of Directors.
– Supervise the process of preparing and submitting the financial statements and man-
agement reports, both individual and consolidated, and the periodic financial informa-
tion disclosed to the markets, ensuring compliance with legal requirements and the
correct application of generally accepted accounting principles.
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– Periodically supervise the Internal Control and Risk Management Systems, including
tax risks, so that the main risks are properly identified, managed and made known.
The Internal Audit area forms part of the General Internal Audit and Risk Management
Division. Its core mission is to facilitate the Audit and Control Committee in the fulfilment
of its duties and responsibilities, acting with total independence from management areas,
as it functionally reports to the Audit and Control Committee. Among its responsibilities
and competencies relating to IFRS are:
– Collaborating in the supervision of the process for preparing and submitting the
– Collaborating in the supervision of the individual and consolidated financial statements
of FCC, S.A., as well as the six-monthly financial statements reviewed by the external
auditor.
– Collaborating in the supervision of financial and corporate information sent to regula-
tors and markets and supervised by the Audit and Control Committee:
• Annual financial report.
• Management reports.
Group’s financial information before it is issued to the market.
• Six-monthly financial report.
– Contributing, together with the other areas involved, to the development of internal
control by monitoring compliance with the policies, standards, procedures and ac-
tivities that constitute the internal control model to reduce risks, issuing improvement
recommendations.
– Supervising projects and processes, carrying out a risk identification and an assess-
ment of the control environment.
– Act as a third line of defence, conducting reviews of the Compliance Model.
– Performing the internal investigations designated by the Compliance Committee.
The outcome of the reviews performed by the Internal Audit area and the incidents de-
tected are communicated by the General Internal Audit and Risk Management Division to
the Audit and Control Committee.
The Audit and Control Committee is responsible for supervising the work carried out by
the Audit and Risk Management Division, as well as for approving and monitoring the
Annual Activity Plan. During 2020, the following tasks relating to the management and
control of risks and the supervision of the Group’s Financial Information were carried out
by different areas:
– Review of significant applications in the field of the FCC Group’s Information Technol-
ogies, as well as certain aspects of physical and logical security.
– Monitoring of internal control weaknesses detected during both the Internal and Exter-
nal Audit of the IT area.
• Quarterly reports.
• Annual Corporate Governance Report.
– Review of the control environment in relation to the prevention of money laundering
and terrorist financing.
– Pre-approval of services other than audit services provided by audit firms, collaborat-
ing with the Audit and Control Committee in its work of monitoring the independence
of the external auditor.
– Audit of key processes, works and projects/contracts focussing, in addition to other
aspects, on reviewing financial information and contractual risks.
– Audit of procedures for sampling in certain business areas and reviewing support pro-
cesses in certain business areas.
– Supervision of the FCC Group Criminal Compliance Model.
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F.5.2. Whether a discussion procedure is in place, whereby the account auditor (pursuant
to the provisions of the NTA), the internal audit area and other experts can inform
Senior Management and the Audit Committee or the company’s administrators
of significant internal control shortcomings identified during the review of the fi-
nancial statements or those entrusted to them. Furthermore, indicate whether an
action plan is in place that seeks to correct or mitigate the shortcomings identified.
The General Internal Audit and Risk Management Division at the FCC Group periodically
informs the Audit and Control Committee of the significant internal control shortcom-
ings identified during the performance of its work, indicating the recommendations to be
implemented to properly correct them. The Audit and Control Committee also receives
presentations performed by the General Administration and Finance Division and the
Compliance Officer, as well as the different corporate areas in relation to risks that have
materialised.
695
The Rules of the Board of Directors at the FCC Group establish that it is the responsibility
of the Audit and Control Committee to serve as a channel of communication between
the Board of Directors and the Company’s external auditor, assessing the results and
discussing the significant shortcomings in the Control System Internal detected during
the performance of the audit.
The Group’s auditor has direct access to the Group’s Senior Management, holding reg-
ular meetings, both to obtain information required for the performance of his/her work,
and to communicate the control shortcomings detected. External auditors submit the
conclusions of their reviews to the Audit and Control Committee, detailing the internal
control shortcomings identified in the performance of their review of the Group’s financial
statements, including any aspect they deem relevant. In 2020, the External Auditor at-
tended five Audit and Control Committee meetings, presenting five reports.
Furthermore, the Regulations of the Internal Audit area at the FCC Group indicate that the
Audit and Control Committee shall be made aware, through the General Internal Audit
and Risk Management Division, among others, of the most relevant aspects in relation to:
relationships with external auditors, the outcome of the supervision of the reliability and
integrity of the financial and management information of Group companies before being
issued to the market, the fulfilment of internal and external regulatory requirements, the
functioning of the internal control systems, and the development and functioning of risk
management systems.
In addition, the Regulations of the Internal Audit area at the FCC Group establish that the
Audit and Control Committee will be supported by the General Internal Audit and Risk
Management Division in fulfilling its responsibilities and competences, without prejudice
to the support or assistance received from other areas. The Internal Audit area performs
monitoring processes on accounting information (individual and consolidated), manage-
ment reports and financial information that is periodically disclosed to the markets.
F.6 Other relevant information
N/A
F.7
External auditor’s report
Report on:
F.7.1. Whether the IFRS information sent to the markets has been submitted to review by
the external auditor, in which case, the company should attach the corresponding
report as an appendix. Otherwise, the reasons for not doing so shall be indicated.
The information contained here on the Internal Financial Reporting Control System has
been submitted to review by the external auditor, whose report is attached as an appen-
dix to this document. The review has been based on the “Action Guidelines and Report-
ing Model for the auditor regarding information relating to the Internal Financial Reporting
Control System of listed companies” published by the CNMV in 2013.
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G. Degree of compliance with corporate
governance recommendations
Indicate the degree of compliance at the company with the recommendations of the
Code of Good Governance of Listed Companies.
In the event that any recommendation is not followed or is only partially followed, a de-
tailed explanation of the reasons for this shall be included, so that shareholders, investors
and the market in general have sufficient information to assess the company’s behaviour.
General explanations shall not be acceptable.
1. The Bylaws of listed companies do not limit the maximum number of votes that
can be cast by the same shareholder, nor contain other restrictions that make it
difficult to take control of the company by acquiring its shares on the market.
Compliant
Explain
2. Where the listed company is controlled, within the meaning established by Ar-
ticle 42 of the Commercial Code, by another entity, whether listed or not, and
has, directly or through its subsidiary companies, business dealings with that
entity or any of its subsidiary companies (other than those of the listed compa-
ny) or engages in activities related to those of any of them, it should accurately
publicly disclose the following:
a) The respective areas of activity and any business relationships between, the
listed company or its subsidiary companies and the parent company or its
subsidiary companies.
b) The proposed mechanisms for resolving any conflicts of interests that may
arise.
Compliant
Partially compliant
Explain
Not applicable
3. During the ordinary general shareholders’ meeting, in addition to the dissem-
ination in writing of the annual corporate governance report, the Chairman of
the Board of Directors verbally informs shareholders, in sufficient detail, of the
most relevant aspects of the Company’s Corporate Governance and, in particu-
lar:
a) Of the changes that have occurred since the previous Ordinary General
Shareholders’ Meeting.
b) Of the specific reasons that the company does not follow any of the rec-
ommendations in the Corporate Governance Code and, as applicable, any
alternative rules that apply in this regard.
Compliant
Partially compliant
Explain
The Company believes that the provisions of the company’s corporate governance
information to shareholders in the specific report prepared to this end is sufficient; this
report accompanies the information made available before the Meeting is held.
In this connection, the announcement of the General Shareholders’ Meeting is ex-
pressly indicated in the “Right to Information” section that all shareholders are entitled
to obtain from the Company, for consideration at its registered office or for immediate
dispatch free of charge, including the Annual Corporate Governance Report, which is
submitted to shareholders for approval as part of the Management Report.
This Report can be consulted on the Company’s website and in the corporate gov-
ernance section.
4. The company defines and promotes a policy regarding communication and
contact with shareholders, institutional investors in the framework of their in-
volvement in the company, as well as with voting advisors that fully complies
with the standards in force to combat market abuse and addresses sharehold-
ers in the same position equally. The company publishes this policy on its web-
site, including information related to the way in which it has been implemented
and identifying the points of contact or persons responsible for carrying it out.
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And, notwithstanding the legal obligations to disclose inside information and
other types of regulated information, the company should also have a general
policy regarding the communication of economic-financial, non-financial and
corporate information through the channels it deems appropriate (media, social
networks or other channels) that helps to maximise the dissemination and qual-
ity of the information available to the market, investors and other stakeholders.
Compliant
Partially compliant
Explain
The company has drafted its Policy on Communication and Contacts with Share-
holders, Institutional Investors, Analysts, Voting Advisors and Credit Rating Agencies,
which the Board of Directors plans to approve in the 2021 business year.
5. The Board of Directors does not submit a proposal for the delegation of powers
to issue convertible shares or securities excluding the pre-emptive subscription
right, for an amount greater than 20% of the capital at the time of delegation, to
the General Shareholders’ Meeting.
When the Board of Directors approves any issuance of shares or convertible
securities excluding the pre-emptive subscription right, the company immedi-
ately publishes the reports on said exclusion to which trade legislation refers on
its website.
Compliant
Partially compliant
Explain
6. The listed companies that prepare the reports mentioned below, whether they
are mandatory or voluntary, publish them on their website well in advance of the
Ordinary General Shareholders’ Meeting, even when their dissemination is not
mandatory:
a) Report on the independence of the auditor.
b) Reports on the functioning of the audit committee and the appointments
Compliant
Partially compliant
Explain
The company approves the self-assessment reports corresponding to the Audit and
Control Committee and the Appointments and Remuneration Committee at the first
Board meeting of the business year.
These reports are not published when the company considers that information is
already provided to this end in Section C.2.1 on the IAGC Board of Directors commit-
tees, which is available on the Group’s corporate website.
The approval of transactions with related parties lies with the Appointments and Re-
muneration Committee responsible for this specific function.
Also in Section D2 of the IAGC, the significant transactions that have taken place
during the year are listed.
7. The Company broadcasts General Shareholders’ Meetings live, on its website.
And that the company has mechanisms that enable proxy voting and voting by
remote means and even, in the case of large-cap companies and to the extent
appropriate, attendance and active participation at the General Meeting.
Compliant
Partially compliant
Explain
8. The audit committee should ensure that the financial statements submitted by
the Board of Directors to the general shareholders’ meeting are drawn up in
accordance with accounting standards. In those cases in which the auditor has
included an exception in the audit report, the chairman of the audit committee
should clearly explain at the general meeting the audit committee’s opinion on
its content and scope, and a summary of said opinion should be made available
to shareholders at the time of publication of the notice of call to the meeting,
together with the rest of the board’s proposals.
and remuneration committee.
Compliant
Partially compliant
Explain
c) Report of the audit committee on related transactions.
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9. The Company publishes on its website, on a permanent basis, the requirements
and procedures that it shall accept to demonstrate ownership of shares, the
right to attend the general shareholders meeting and the exercise or delegation
of the right to vote.
These requirements and procedures promote the attendance and exercise of
shareholders’ rights and are applied in a non-discriminatory manner.
Compliant
Partially compliant
Explain
10. When a legitimate shareholder has exercised, before the General Shareholders’
Meeting is held, the right to add to the agenda or submit new resolutions, the
Company:
a) Immediately disseminates these additional items and new resolutions pro-
posed.
b) Discloses the attendance card template or vote delegation form or distance
voting form with the necessary modifications so that the new items on the
agenda and alternative resolution proposals can be voted on under the
same terms as those proposed by the Board of Directors.
c) Submits all the alternative points or proposals to a vote and apply the same
voting rules as applied to those prepared by the Board of Directors, includ-
ing, in particular, assumptions or deductions on the meaning of the vote.
d) After the General Shareholders’ Meeting, communicate the breakdown of
the vote on these additional items or alternative proposals.
11. If the company plans to pay out attendance premiums to the General Share-
holders Meeting, a general policy on these premiums is established in advance
and this policy is stable.
Compliant
Partially compliant
Explain
Not applicable
12. The Board of Directors performs its functions with unity of purpose and inde-
pendence of judgment, treats all shareholders in the same position in the same
way and is guided by the social interest, understood as the achievement of a
profitable and sustainable business in the long term, which promotes its conti-
nuity and maximisation of the economic value of the company.
And in the pursuit of social interests, in addition to respect for the laws and
regulations and conduct based on good faith, ethics and respect for commonly
accepted uses and good practices, the company seeks to reconcile its own
social interest with, as appropriate, the legitimate interests of its employees,
its suppliers, its customers and those of the other stakeholders that may be
affected, as well as the impact of the company’s activities on the community as
a whole and on the environment.
Compliant
Partially compliant
Explain
13. The Board of Directors is the correct size to ensure it is effective and participa-
tive, meaning it is advisable to have between five and fifteen members.
Compliant
Explain
Compliant
Partially compliant
Explain
Not applicable
14. The Board of Directors should adopt a policy aimed at encouraging a suitable
Two different systems are used, for practical reasons, to count votes, all pursuant
to the provisions of Article 20 of the Rules of the General Shareholders’ Meeting,
although the Chairman of the Board, in each specific case, may decide to apply the
same counting system (Art. 20, section 4 of the Rules of the General Meeting).
composition for the Board of Directors and it should:
a) be specific and verifiable;
b) ensure that proposed appointments and re-elections are based on a prelimi-
nary analysis of the powers required by the Board of Directors; and
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c) promote the diversity of knowledge, experience, age and gender. For these
purposes, measures that encourage the company to have a significant number
of female senior executives are considered to be conducive to gender diversity.
The result of the preliminary analysis of powers required by the Board of Direc-
tors is included in the explanatory report issued by the Appointments Commit-
tee that is published when the General Shareholders Meeting is called and to
which the ratification, appointment or re-election of each director is submitted.
The Appointments Committee will verify compliance with this policy and will be
informed in the Annual Corporate Governance Report.
Compliant
Partially compliant
Explain
15. Proprietary and independent directors represent a large majority of the Board of
Directors and that the number of executive directors is the minimum necessary,
taking into account the complexity of the corporate group and the shareholding
of the executive directors in the Company’s capital.
And that the number of female directors should account for at least 40% of the
members of the Board of Directors by the end of 2022 and beyond, but no less
than 30% before then.
Compliant
Partially compliant
Explain
With regard to the percentage of female directors, the FCC’s Board of Directors has four
female directors out of a total of 14, entailing a percentage of 28.57.
16. The percentage of proprietary directors compared to the total of non-executive
directors is no greater than the proportion between the capital of the Company
represented by these directors and other capital.
699
This criteria may be relaxed:
a) At companies with a high capitalisation with few shareholdings considered
significant by law.
b) For companies in which there is a large number of shareholders represented
on the Board of Directors who have no links to one another.
Compliant
Explain
17. The number of independent directors represents at least half the total number
of directors.
However, when the company is not highly capitalised or when, even if it is, one
shareholder or more shareholders are acting together, controlling more than
30% of the share capital, the number of independent directors represents at
least one third of the total number of directors.
Compliant
Explain
On its Board of Directors, FCC has three independent directors out of a total of four-
teen members, representing 21 percent of the total number of directors.
FCC believes that this percentage does not require an increase in the number of
independent directors, considering the Company’s very concentrated shareholding
structure and the effective role of the three independent directors.
18. Companies publish the following information about directors on their website,
and keep it up to date:
a) Professional and biographical profile.
b) Other boards of directors to which they belong, whether at listed companies
or not, and the other paid activities they perform, regardless of their nature.
c) Indication of the category of Director to which they belong, indicating, in the
case of proprietary directors, the shareholder they represent or with whom
they have links.
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d) Date of their first appointment as a Director of the Company, as well as sub-
sequent re-elections.
e) Shares in the company, and options on them, that they own.
Compliant
Partially compliant
Explain
The company makes available on its website the professional and biographical profile,
other boards of directors to which the directors belong, the director’s category, the
date of his or her first appointment and the shares in the company, without consid-
ering it necessary, for the time being, to disclose other remunerated activities carried
out by the director, whatever their nature.
19. The Annual Corporate Governance Report, after a check performed by the Ap-
pointments Committee, explains the reasons that proprietary directors have
been appointed at the request of shareholders whose shareholding is less than
3% of the capital stock; and it explains the reasons that formal requests for
presence on the Board from shareholders whose shareholding is equal to or
greater than that of others, at whose request proprietary directors have been
appointed, have not been met.
Compliant
Partially compliant
Explain
Not applicable
20. Proprietary directors submit their resignation when the shareholder they rep-
resent fully transfers their shareholding. They also do so, in the corresponding
number, when said shareholder reduces their shareholding to a level that re-
quires a reduction in the number of their proprietary directors.
Compliant
Partially compliant
Explain
Not applicable
700
21. The Board of Directors does not propose the removal of any independent direc-
tor before the end of the statutory period for which they were appointed, unless
there is just cause, identified by the Board following in a report from the Ap-
pointments and Remuneration Committee. In particular, it shall be considered
that there is just cause when the director first occupies new positions or con-
tracts new obligations that prevent him/her from dedicating the necessary time
to the performance of the duties assigned to the position of director, breaches
the duties inherent to the position in question or incurs in any of the circum-
stances resulting in him/her losing his/her status as an independent director,
pursuant to the provisions of the applicable legislation.
The removal of independent directors may also be proposed as a result of take-
overs, mergers or other similar corporate transactions that involve a change in
the capital structure of the company, when these changes in the structure of the
Board of Directors can be attributed to the criteria of proportionality indicated
in recommendation 16.
Compliant
Explain
22. Companies should establish rules requiring directors to report and, where ap-
propriate, resign when situations arise affecting them, whether or not this is re-
lated to their actions in the company itself, which could be harmful to the credit
and reputation of the company. This is in addition to the specific requirement of
informing the Board of Directors of any criminal proceedings in which they are
under investigation, as well as the progress of any such proceedings.
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And, notwithstanding the fact that all the above is disclosed in the annual cor-
porate governance report, to the extent that it is relevant for investors, the com-
pany should announce the departure as soon as possible, including a sufficient
mention of the reasons or circumstances provided by the director.
Compliant
Partially compliant
Explain
Not applicable
25. The Appointments Committee ensures that non-executive directors have suffi-
cient time available for the proper performance of their duties.
And the Rules of the Board establish the maximum number of Boards on which
its directors may serve.
Compliant
Partially compliant
Explain
In Article 21.4 of the Rules of the Board, the Company establishes that “Directors
must inform the Appointments and Remuneration Committee of their other profes-
sional obligations, should they could interfere with their dedication of the position,
and the Board shall establish, at the proposal of the Appointments and Remuneration
Committee, the number of Boards on which directors may serve”.
Since the aforementioned Committee has not stipulated this number to date, the
Company believes that it is partially compliant with the recommendation.
The Company, for the time being, has not set the maximum number of Boards to
which each director may belong, since the dedication of the directors to the company
has proven to be adequate, without it being necessary, therefore, to define a number.
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And, having been informed of or otherwise having become aware of any of the
situations mentioned in the previous paragraph, the board should examine the
case as soon as possible. It should also, in view of the specific circumstanc-
es, decide, after a report from the appointments and remuneration committee,
whether or not to adopt any measures, such as opening an internal investiga-
tion, requesting the resignation of the director or proposing his or her dismissal.
And to report on the matter in the annual corporate governance report, unless
there are special circumstances justifying this, which should be recorded in the
minutes. This is notwithstanding the information that the company must dis-
close, where appropriate, at the time of adopting the corresponding measures.
Compliant
Partially compliant
Explain
23. All directors clearly express their opposition when they consider that any pro-
posed decision submitted to the Board of Directors may be contrary to the
corporate interest. The same applies, in a special way, to independents and
other directors who are not affected by any potential conflict of interests, in the
case of decisions that may harm shareholders not represented on the Board of
Directors.
When the Board of Directors adopts significant or repeated decisions about
which the director would have made reservations, he/she shall draw the neces-
sary conclusions and, if he chooses to resign, explain his/her reasons for doing
so in the letter indicated in the following recommendation.
This recommendation also applies to the secretary of the Board of Directors,
even if he/she does not have the status of a director.
Compliant
Partially compliant
Explain
Not applicable
24. When, either by resignation or by resolution of the general meeting, a director
steps down before the end of their term of office, they should sufficiently ex-
plain the reasons for their departure or, in the case of non-executive directors,
their views on the reasons for the board’s decision to dismiss them, in a letter
sent to all members of the Board of Directors.
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26. The Board of Directors meets with the necessary frequency to perform its du-
ties effectively and, at least, eight times a year, following the programme of
dates and matters established at the beginning of the year, with each director
allowed to individually propose other items on the agenda not initially provided
for.
Compliant
Partially compliant
Explain
When, exceptionally, for reasons of urgency, the Chairman wishes to submit
decisions or resolutions that do not appear on the agenda for approval by the
Board of Directors, the prior and express consent of the majority of the direc-
tors present shall be required, duly reflected in the minutes.
Compliant
Partially compliant
Explain
27. The absence of directors is limited to indispensable cases and quantified in the
Annual Corporate Governance Report. And should such absences occur, the
directors appoint a proxy with instructions.
32. Directors are periodically informed of changes in the shareholding structure
and of the opinion that significant shareholders, investors and rating agencies
have about the company and its Group.
Compliant
Partially compliant
Explain
Compliant
Partially compliant
Explain
33. The Chairman, as the person responsible for the effective functioning of the
Board of Directors, in addition to exercising the duties assigned to him by Law
and in the Bylaws, prepares and submits a programme of dates and matters to
be discussed to the Board of Directors; organises and coordinates the periodic
assessment of the Board, as well as, where appropriate, the company’s Chief
Executive; is responsible for the direction of the Board and the effectiveness of
its functioning; ensures that sufficient discussion time is devoted to strategic
issues, and agrees and reviews knowledge refresher programmes for each di-
rector, when the circumstances so advise.
Compliant
Partially compliant
Explain
28. When the directors or the secretary express concern about any proposal or, in
the case of directors, about the progress of the company and these concerns
are not resolved by the Board of Directors, at the request of the person express-
ing them, these shall be recorded in the minutes.
Compliant
Partially compliant
Explain
Not applicable
29. The Company establishes the appropriate channels so that directors can obtain
the necessary advice for them to perform their duties, including, if the circum-
stances so require, external advice charged to the company.
Compliant
Partially compliant
Explain
30. Regardless of the knowledge required by directors in the exercise of their du-
ties, the companies also offer the directors knowledge refresher programmes
when the circumstances so advise.
Compliant
Explain
Not applicable
31. The agenda of meetings clearly indicates the points on which the Board of Di-
rectors must adopt a decision or resolution so that the directors can study or
collect, in advance, the information necessary for its adoption.
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703
34. When there is a coordinating director, the Bylaws or the Rules of the Board of
Directors, in addition to the powers that correspond to him by Law, assign the
following powers thereto: preside over the Board of Directors in the absence
of the Chairman and Deputy Chairman, as applicable; echoes the concerns of
non-executive directors; maintains contact with investors and shareholders to
obtain their points of view to form an opinion on their concerns, particularly
in relation to the corporate governance of the company; and coordinates the
Chairman’s succession plan.
Compliant
Partially compliant
Explain
Not applicable
35. The secretary of the Board of Directors ensures that the Board of Directors
takes into account the recommendations on good governance contained in the
Code of Good Governance applicable to company in its actions and decisions.
Compliant
Explain
36. The Board of Directors assesses, once a year, and adopts, where appropriate,
an action plan that corrects any shortcomings detected regarding:
a) The quality and efficiency of the functioning of the Board of Directors.
b) The functioning and composition of its committees.
c) Diversity in the composition and powers of the Board of Directors.
d) The performance of the Chairman of the Board of Directors and the Chief
Executive of the company.
Every three years, the Board of Directors will be assisted by an external con-
sultant in performing the assessment, whose independence shall be verified by
the Appointments Committee.
The business relationships that the consultant or any company in its group may
have with the company or any Group company shall be broken down in the
Annual Corporate Governance Report.
The process and the areas assessed shall be described in the Annual Corporate
Governance Report.
Compliant
Partially compliant
Explain
The Board of Directors internally performs the annual assessment of the efficiency of
its functioning, its committees, as well as that of the Chairman of the Board of Direc-
tors (non-executive) and the CEO.
The Company believes that the conclusions drawn during the internal assessment
make it possible to sufficiently correct any shortcomings detected or improvements in
the functions assigned to the Board.
The assessment with the help of an external consultant has been carried out twice in
the past. The Board shall assess the suitability of requesting such external assistance
each business year.
37. When there is an executive committee, at least two non-executive directors
should sit on it, at least one of whom should be independent and its secretary
should be the secretary of the Board of Directors.
e) The performance and contribution of each director, paying particular atten-
Compliant
Partially compliant
Explain
Not applicable
tion to those responsible for the different Board Committees.
To perform the assessment of the different committees, the report submitted to
the Board of Directors will be used, and for the Board assessment, the report
submitted to the Appointments Committee.
The secretary of the Executive Committee is the same as the secretary to the Board.
However, in the composition of this committee, there are no independent directors,
whereas there are three such directors on the Board.
All decisions taken by the Executive Committee are reported to the Board.
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On this Committee, independent directors may request as many clarifications or com-
ments as they deem appropriate.
42. In addition to those provided by law, the Audit Committee assumes responsibil-
ity for the following functions:
Given the continuous control that the Board exercises over the Executive Commit-
tee, it has not been considered necessary to include independent directors on this
Committee.
38. The Board of Directors is always aware of the matters discussed and the deci-
sions taken by the Executive Committee and that all the members of the Board
of Directors receive a copy of the minutes of the Executive Committee meet-
ings.
Compliant
Partially compliant
Explain
Not applicable
39. Members of the Audit Committee as a whole, and especially its Chairman, are
appointed taking into account their knowledge and experience in accounting,
auditing and risk management matters, both financial and non-financial.
Compliant
Partially compliant
Explain
40. Under the supervision of the Audit Committee, there is a unit that assumes the
internal audit function ensuring the proper functioning of the information and
internal control systems, which functionally reports to the non-executive Chair-
man of the Board or the Audit Committee.
Compliant
Partially compliant
Explain
41. The head of the unit responsible for the internal audit function should present
the annual work plan to the audit committee for approval by the committee or
the board, report directly to it on its implementation, including any incidents
and limitations on scope arising in the course of its implementation, the results
and follow-up of its recommendations, and submit an activities report to it at
the end of each business year.
Compliant
Partially compliant
Explain
Not applicable
1. In relation to information and internal control systems:
a) Supervise and assess the preparation process and the integrity of finan-
cial and non-financial information, as well as the control and manage-
ment systems for financial and non-financial risks relating to the com-
pany and, if applicable, the group, including operational, technological,
legal, social, environmental, political, reputational and corruption-related
risks, reviewing compliance with regulatory requirements, the adequate
definition of the scope of consolidation and the correct application of
accounting criteria.
b) Ensure the independence of the Internal Audit function; propose the
selection, appointment and removal of the head of the Internal Audit
service, as well as the budget of this service; approving or proposing
approval to the Board of the annual internal audit orientation and work
plan, making sure that its activity is mainly focused on relevant risks
(including reputational risks); receive periodic information about its ac-
tivities; and verify that Senior Management takes into account the con-
clusions and recommendations in its reports.
c) Establish and supervise a mechanism that allows employees and other
persons related to the company, such as directors, shareholders, sup-
pliers, contractors or subcontractors, to report potentially significant
irregularities, including financial, accounting or any other irregularities
related to the company that they become aware of within the company
or its group. This mechanism must guarantee confidentiality and, in any
case, provide for scenarios where communications can be made anony-
mously, respecting the rights of the complainant and the reported party.
d) Generally ensure that the policies and systems in place for internal con-
trol are effectively implemented in practice.
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2. In relation to the external auditor:
a) In case of the resignation of the external auditor, examine the circum-
stances that may have led to this.
b) Ensure that the remuneration of the external auditor for his/her work
does not compromise his/her quality or independence.
c) Ensure that the company communicates any change in auditor through
the CNMV and accompanies this with a statement about the possible
existence of disagreements with the departing auditor and, if there were
any disagreements, the nature of them.
d) Ensure that the external auditor holds an annual meeting with the Board
of Directors to inform them about the work undertaken and the develop-
ment of the accounting and risk situation at the company.
e) Ensure that the company and the external auditor respect the rules in
force on the provision of services other than auditing services, the limits
on the concentration of the auditor’s business and, in general, the other
rules applicable to the auditor’s independence.
Compliant
Partially compliant
Explain
The meeting referred to in section 2.d) of this recommendation is not held, since this
responsibility is delegated in full to the Audit and Control Committee, and the external
auditor is responsible for presenting this information to the members of the Board.
43. The Audit Committee may summon any employee or manager at the company,
44. The Audit Committee is informed about the structural and corporate modifica-
tions that the company plans to perform for its analysis and preliminary report
to the Board of Directors on its economic conditions and its accounting impact
and, especially, where appropriate, on the proposed exchange ratio.
Compliant
Partially compliant
Explain
Not applicable
To date, all directors at the company, including independent directors, have voted in
favour of the transactions referred to in this recommendation, meaning that the step
previous to those before the Audit and Control Committee is not considered neces-
sary.
In any case, on the Board of Directors, members of the Audit and Control Committee
may present their reflections and opinions, which will be taken into account by the
Board at the time of making a decision.
45. The risk control and management policy identifies or determines at least:
a) The different types of risk, both financial and non-financial, (including opera-
tional, technological, legal, social, environmental, political and reputational,
including those related to corruption) that the company faces, including fi-
nancial or economic, contingent liabilities and other off-balance-sheet risks.
b) A tiered risk management and control model, including a specialised risk
committee where sectoral rules require this or where the company deems it
appropriate.
c) The level of risk that the Company considers acceptable.
and even arrange for them to appear without any other manager present.
d) The measures planned to mitigate the impact of the risks identified, should
Compliant
Partially compliant
Explain
they materialise.
e) The information and internal control systems that will be used to control and
manage the aforementioned risks, including contingent liabilities or off-bal-
ance sheet risks.
Compliant
Partially compliant
Explain
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706
46. Under the direct supervision of the Audit Committee or, where appropriate, a
specialised committee of the Board of Directors, there is an internal risk control
and management function performed by an internal unit or department at the
company that has been expressly attributed the following functions:
a) Ensure the proper functioning of the control and risk management systems
and, in particular, that all important risks affecting the Company are properly
identified, managed, and quantified.
b) Actively participate in the preparation of the risk strategy and in the impor-
tant decisions about its management.
c) Ensure that control and risk management systems adequately mitigate risks
within the framework of the policy defined by the Board of Directors.
Compliant
Partially compliant
Explain
47. The members of the Appointments and Remuneration Committee, or of the Ap-
pointments Committee and the Remuneration Committee, if they are separate,
should be appointed ensuring that they have the knowledge, skills and experi-
ence suitable for the duties they are called upon to perform and the majority of
the members should be independent directors.
48. Large-cap companies should have a separate appointments committee and a
separate remuneration committee.
Compliant
Explain
Not applicable
The two recommended committees are integrated into a single appointments and
remuneration committee, as the Board of Directors believes that the combination of
the two facilitates the carrying out of the duties assigned to them.
49. The Appointments Committee should consult with the Chairman of the Board
of Directors and the CEO of the Company, especially on matters relating to ex-
ecutive directors.
And any director may request the consideration of potential candidates to fill
vacancies of Director from the Appointments Committee, if it finds them suita-
ble in its opinion.
Compliant
Partially compliant
Explain
50. The Remuneration Committee should carry out its duties independently and, in
addition to the duties assigned by law, should have the following responsibili-
ties:
Compliant
Partially compliant
Explain
a) To propose to the Board of Directors the basic conditions of senior manage-
The Appointments and Remuneration Committee is currently made up of two propri-
etary and two independent directors, one of whom is the Chairman.
FCC believes that the make up of the Appointments and Remuneration Committee,
with two independent members out of a total of four, one of whom is also the Chair-
man, sufficiently guarantees the proper functioning of this Committee”.
ment contracts.
b) To verify compliance with the remuneration policy established by the com-
pany.
c) To regularly review the remuneration policy applied to directors and senior
executives, including the share based remuneration systems and their ap-
plication, and ensure that their individual remuneration is in line with that
paid to the other directors and senior executives at the Company.
d) To ensure that any conflicts of interest do not undermine the independence
of the external advice provided to the committee.
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e) To verify the information on directors’ and senior executives’ remuneration
contained in the various corporate documents, including the annual direc-
tors remuneration report.
Compliant
Partially compliant
Explain
51. The remuneration committee should consult with the company’s chairman and
CEO, especially on matters relating to executive directors and senior execu-
tives.
53. Supervision of compliance with the company’s environmental, social and cor-
porate governance policies and rules, as well as internal codes of conduct,
should be entrusted to one or more committees of the Board of Directors,
which may be the audit committee, the appointments committee, a committee
specialising in sustainability or corporate social responsibility or any other spe-
cialised committee that the Board of Directors, in the exercise of its powers of
self-organisation, has decided to set up. Such a committee should be formed
solely of non-executive directors, the majority of whom should be independent,
and should be specifically attributed at least the duties indicated in the follow-
ing recommendation.
Compliant
Partially compliant
Explain
Compliant
Partially compliant
Explain
52. The rules governing the composition and operation of the supervision and con-
trol committees should be set out in the regulations of the Board of Directors
and be consistent with those applicable to the legally obligatory committees in
accordance with the above recommendations, including:
a) They should be composed exclusively of non-executive directors, with a
majority of independent directors.
b) Their chairmen should be independent directors.
c) The Board of Directors should appoint the members of these committees,
bearing in mind the knowledge, skills and experience of the directors and
the duties of each committee, and should discuss their proposals and re-
ports; and to report, at the first plenary session of the Board of Directors
after its meetings, on its activity and should be accountable for the work
carried out.
d) The committees may seek external advice, when they consider it necessary
for the carrying out of their duties.
e) Minutes should be taken of their meetings and made available to all direc-
tors.
Compliant
Partially compliant
Explain
Not applicable
Although in the operations of the Board of Directors these skills are dealt with in the
agenda of its committees, some of the duties indicated in the Recommendation are
not formally attributed to one of its committees by the Regulations of the Board of
Directors.
54. The minimal duties referred to in the above recommendation are as follows:
a) Overseeing compliance with the company’s corporate governance rules
and internal codes of conduct, and ensuring that the corporate culture is
aligned with its purpose and values.
b) Overseeing the implementation of the general policy on economic-finan-
cial, non-financial and corporate reporting as well as communication with
shareholders and investors, proxy advisors and other stakeholders. The
way in which the institution communicates and interacts with small and me-
dium-sized shareholders will also be monitored.
c) Regular evaluation and review of the Company’s corporate governance sys-
tem and environmental and social policy, in order for them to fulfil their aim
of promoting the corporate interest and taking into account, as appropriate,
the legitimate interests of other stakeholders.
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d) Ensuring that the company’s environmental and social practices are in line
with the established strategy and policy.
e) The supervision and evaluation of the processes of relationship with the
different stakeholders.
Compliant
Partially compliant
Explain
55. Sustainability policies on environmental and social issues should at least iden-
tify and include:
a) The principles, commitments, objectives and strategy with regard to share-
holders, employees, customers, suppliers, social issues, environment, di-
versity, accountability, respect for human rights and prevention of corrup-
tion and other unlawful actions.
b) Methods or systems for monitoring compliance with policies, associated
risks and their management.
57. Variable remuneration linked to the company’s performance and personal per-
formance, as well as compensation in the form of shares, options or rights to
shares or instruments linked to the value of the share and long-term savings
schemes such as pension plans, retirement systems or other social welfare
systems, should be exclusively limited to executive directors.
The delivery of shares may be considered as remuneration to non-executive
directors when it is subject to their remaining on the board. The foregoing shall
not apply to the shares that the director needs to sell, if any, to meet the costs
related to their acquisition.
Compliant
Partially compliant
Explain
58. In the case of variable remuneration, remuneration policies should include the
necessary technical limits and precautions to ensure that said remuneration is
related to the professional performance of its beneficiaries and is not simply a
result of general market or sector trends or other similar circumstances.
c) Mechanisms for monitoring non-financial risk, including those related to
And, in particular, that the variable components of remuneration:
ethical and business conduct issues.
d) Channels of communication, participation and dialogue with stakeholders.
e) Responsible communication practices that avoid the manipulation of infor-
mation and protect integrity and honour.
Compliant
Partially compliant
Explain
56. Directors’ remuneration should be sufficient to attract and retain directors with
the desired profile and to reward the dedication, qualifications and responsibil-
ity required for the position, but should not be so high as to compromise the
independent judgement of non-executive directors.
Compliant
Explain
i. Should be linked to performance criteria that are predetermined and meas-
urable, and these criteria should take into account the risk assumed in order
to obtain a result.
ii. Should promote the sustainability of the company and include non-finan-
cial criteria that are appropriate for the creation of long-term value, such
as compliance with the company’s internal rules and procedures and its
policies for risk control and management.
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709
iii. Should be designed on the basis of a balance between the achievement of
short-, medium- and long-term objectives, allowing performance to be re-
warded for continued achievement over a period of time sufficient to assess
their contribution to sustainable value creation, so that the elements used to
measure that performance do not revolve solely around one-off, occasional
or extraordinary events.
Compliant
Partially compliant
Explain
Not applicable
59. The payment of variable components of remuneration is subject to sufficient
verification that the performance or other conditions set out above have been
effectively met. Entities shall include in the annual directors’ remuneration re-
port the criteria as to the time required and methods for such verification de-
pending on the nature and characteristics of each variable component.
In addition, entities should consider the establishment of a malus clause based
on the deferral for a sufficient period of time of the payment of a part of the
variable components that can lead to their total or partial loss should an event
occur prior to the time of payment that makes this advisable.
Compliant
Partially compliant
Explain
Not applicable
The CEO’s variable is related to EBITDA, operating cash flow and individual objec-
tives. This variable is approved once the Board of Directors has drawn up the ac-
counts and approved the financial objectives.
60. Remuneration related to the Company’s profit and loss should take into ac-
count any qualifications in the external auditor’s report that reduce said profit
and loss.
61. A significant percentage of the variable remuneration of executive directors
should be linked to the delivery of shares or financial instruments tied to their
value.
Compliant
Partially compliant
Explain
Not applicable
The FCC Group’s remuneration policy does not include the delivery of shares or finan-
cial instruments linked to their value to its executive directors, as this is considered
more appropriate.
62. Once the shares, options or financial instruments corresponding to the remu-
neration systems have been attributed, executive directors may not transfer
ownership or exercise them until at least three years have passed.
An exception is made where the director has, at the time of the transfer or
exercise, a net economic exposure to share price changes of a market value
equivalent to an amount of at least twice his or her annual fixed remuneration
through the ownership of shares, options or other financial instruments.
The above will not apply to shares that the director needs to dispose of in order
to meet the costs related to their acquisition or, after a favourable assessment
from the appointments and remuneration committee, to address extraordinary
situations that so require it.
Compliant
Partially compliant
Explain
Not applicable
63. Contractual agreements should include a clause allowing the company to claim
reimbursement of the variable components of remuneration when the payment
has not been in accordance with the performance conditions or when they have
been paid on the basis of data which is subsequently proven to be inaccurate.
Compliant
Partially compliant
Explain
Not applicable
Compliant
Partially compliant
Explain
Not applicable
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Variable remuneration is approved by the Board of Directors once the parameters to
which it is tied have been verified. It has not been considered necessary, both be-
cause of the volume of the remuneration and the time at which it is paid, to establish
additional precautions.
64. Severance payments of payments for contract termination should not exceed a
set amount equivalent to two years’ total annual remuneration and should not
be paid until the company has been able to verify that the director has met the
criteria or conditions established for their receipt.
For the purposes of this recommendation, termination or contractual termina-
tion payments include any payments that accrue or are payable as a result of or
in connection with the termination of the director’s contractual relationship with
the company, including amounts not previously vested in long-term savings
schemes and amounts paid under post-contractual non-compete agreements.
Compliant
Partially compliant
Explain
Not applicable
710
H. Other information of interest
1. If there are any relevant aspects of Corporate Governance in the Company or in the
Group Entities that have not been included in the other sections of this report, but that
are necessary to include in order to obtain more complete and detailed information
on the governance structure and practices in the entity or its group, please briefly
describe them.
2. This section may also include any other information, clarification or detail related to the
previous sections of the report insofar as they are relevant and not repetitive.
Specifically, it shall indicate whether the company is subject to legislation other than
Spanish legislation on corporate governance and, if so, include any information that it
is obliged to provide that is different from that required in this report.
3. The Company may also indicate whether it has voluntarily adhered to other interna-
tional, sectoral or other codes of ethical principles or good practice. If applicable,
the code in question and the date of adhesion shall be specified. In particular, it will
mention whether it has adhered to the Code of Good Tax Practices of 20 July 2010.
VOLUNTARY ADHERENCE TO CODES OR GOOD PRACTICES:
Since 2018, FCC has had a new Code of Ethics and Conduct approved by its Board
of Directors. Likewise, in 2018, the Board of Directors approved a regulatory section on
Compliance and a Group-wide risk control system. In 2019, the Board of Directors slight-
ly updated the Group’s Code of Ethics and Conduct.
The FCC Group provides its employees with a whistleblowing channel for reporting pos-
sible breaches of its Code of Ethics and Conduct and criminal offences.
FCC has been a member of the United Nations Global Compact since 7 May 2007.
Regarding tax matters, on 28 July 2010 the Board of Directors of FCC adopted the deci-
sion to adhere to the Code of Good Tax Practices, thereby effectively complying with the
obligations arising from it each year.
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This annual corporate governance report was approved by the company’s Board of Di-
rectors at its meeting on 25 February 2021.
Indicate whether any directors voted against or abstained from voting on the approval of
this Report.
Yes
No
Name or company name of the director
who voted against the approval of this
report
Reasons (against,
abstention, non-
attendance)
Explain the reasons
Remarks
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ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
712
ISSUER IDENTIFICATION DETAILS
End date of the reference year:
31/12/2020
CIF (Tax ID):
A-28037224
Corporate name:
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A.
Registered address:
BALMES, 36 BARCELONA
A. OWNERSHIP STRUCTURE
A.1. Fill in the following table about the Company's
capital stock:
Date of most recent
change
Capital stock (€)
Number of shares
Number of voting
rights
09/07/2020
409,106,618.00
409,106,618
409,106,618
Indicate whether there are different share classes with different associated rights:
[
]
[ √ ]
YES
No
A.2. List the direct and indirect holders of significant shares as at the reporting date, excluding directors:
Name or corporate
name of the
shareholder
ESTHER KOPLOWITZ
ROMERO DE JUSEU
WILLIAM H. GATES III
CONTROL
EMPRESARIAL DE
CAPITALES, S.A. DE C.V.
CARLOS SLIM HELÚ
NUEVA SAMEDE 2016,
S.L.U.
List of indirect holdings:
% voting rights attributed to the
shares
% voting rights through financial
instruments
Direct
Indirect
Direct
Indirect
Total % of voting
rights
0.03
4.54
0.00
0.00
0.00
5.74
0.00
0.00
4.57
5.74
61.16
12.99
0.00
0.00
74.15
0.00
4.54
7.00
0.00
0.00
0.00
0.00
0.00
7.00
4.54
Name or corporate name
of the indirect
shareholder
Name or corporate name
of the direct shareholder
% voting rights attributed
to the shares
% voting rights through
financial instruments
Total % of voting rights
ESTHER KOPLOWITZ
ROMERO DE JUSEU
NUEVA SAMEDE 2016,
S.L.U.
4.54
0.00
4.54
1 / 44
2 / 44
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713
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
Name or corporate name
of the indirect
shareholder
Name or corporate name
of the direct shareholder
% voting rights attributed
to the shares
% voting rights through
financial instruments
Total % of voting rights
WILLIAM H. GATES III
WILLIAM H. GATES III
BILL & MELINDA GATES
FOUNDATION TRUST
CASCADE INVESTMENT,
LLC.
CONTROL
EMPRESARIAL DE
CAPITALES, S.A. DE C.V.
DOMINUM
DIRECCION Y
GESTION, S.A.
CARLOS SLIM HELÚ
FINVER INVERSIONES
2020, S.L.U
1.75
3.99
8.46
7.00
0.00
0.00
0.00
0.00
1.75
3.99
8.46
7.00
Name or corporate name of
the director
% voting rights attributed
to the shares
% voting rights through
financial instruments
Total % of voting
rights
% voting rights that can be
transferred through
financial instruments
Direct
Indirect
Direct
Indirect
Direct
Indirect
MANUEL GIL MADRIGAL
0.00
0.01
0.00
0.00
0.01
0.00
0.00
ANTONIO GÓMEZ GARCIA
0.01
0.00
0.00
0.00
0.01
0.00
0.00
SAMEDE INVERSIONES 2010,
S.L.U
DOMINUM DIRECCION Y
GESTION, S.A.
0.00
0.00
0.00
0.00
0.00
0.00
0.00
8.46
0.00
0.00
0.00
8.46
0.00
0.00
Total % of voting rights held by the Board of Directors
8.70
A.3. Fill in the following tables on the members of the Company's Board of Directors, who have voting rights through their shares in the
Company:
List of indirect holdings:
Name or corporate name of
the director
% voting rights attributed
to the shares
% voting rights through
financial instruments
Total % of voting
rights
% voting rights that can be
transferred through
financial instruments
Direct
Indirect
Direct
Indirect
Direct
Indirect
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
HENRI PROGLIO
DOMINUM DESGA, S.A.
E.A.C. INVERSIONES
CORPORATIVAS, S.L.
INMOBILIARIA AEG, S.A.
DE C.V.
Name or corporate
name of the director
Name or corporate
name of the direct
shareholder
% voting rights
attributed to the
shares
% voting rights
through financial
instruments
Total % of voting
rights
% voting rights that
can be transferred
through financial
instruments
MANUEL GIL
MADRIGAL
TASMANIA
INMUEBLES, S.L.
0.01
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
A.7.
Indicate whether the Company has been informed of shareholders' agreements that affect it as established in Articles 530 and 531
of the Spanish Corporate Enterprises Act. If applicable, briefly describe them and list the shareholders affected by the agreement:
PABLO COLIO ABRIL
0.01
0.00
0.00
0.00
0.01
0.00
0.00
[ √ ]
]
[
Yes
No
ALEJANDRO
ABOUMRAD
GONZÁLEZ
0.07
0.00
0.00
0.00
0.07
0.00
0.00
Participants of the shareholders'
agreement
% of capital stock
affected
Brief description of the agreement
End date of the agreement, if
applicable
GERARDO KURI KAUFMANN
0.01
0.00
0.00
0.00
0.01
0.00
0.00
JUAN RODRÍGUEZ TORRES
0.08
0.00
0.00
0.00
0.08
0.00
0.00
ÁLVARO VÁZQUEZ
LAPUERTA
0.00
0.00
0.00
0.00
0.00
0.00
0.00
ESTHER KOPLOWITZ ROMERO DE
JUSEU, INVERSORA CARSO S.A. DE
C.V., NUEVA SAMEDE 2016, S.L.U.,
CONTROL EMPRESARIAL DE
CAPITALES, S.A. DE C.V.
72.36 Relevant Fact of 05/02/2016
Indefinite
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714
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
Participants of the shareholders'
agreement
% of capital stock
affected
Brief description of the agreement
End date of the agreement, if
applicable
ESTHER KOPLOWITZ ROMERO DE
JUSEU, CONTROL EMPRESARIAL DE
CAPITALES, S.A. DE C.V.
50.16 Relevant fact of 27/11/2014
Indefinite
Indicate whether the Company is aware of the existence of coordinated actions between its shareholders. If applicable, describe
them briefly:
[
]
[ √ ]
Yes
No
A.8.
Indicate whether there is any natural or legal person who exercises or may exercise control over the Company pursuant to
Article 5 of the Securities Market Law. If applicable, identify this person:
[ √ ]
]
[
YES
No
CONTROL EMPRESARIAL DE CAPITALES, S.A. DE C.V.
Name or corporate name
A.9. Fill in the following tables about the company's treasury shares:
At year-end:
Number of direct shares
Number of indirect shares(*)
Total % of capital stock
1,544,733
0.38
(*) Through:
Name or company name of the direct holder
of the shareholding
Number of direct shares
No data
A.11. Estimated floating capital:
Estimated floating capital
%
12.74
A.14. Indicate whether the company has issued securities that are not traded on a regulated market in the European Union.
[ √ ]
]
[
Yes
No
B. GENERAL SHAREHOLDERS' MEETING
B.4.
Indicate the attendance details at the general meetings of shareholders' held in the business year to which this report refers and
those in the two preceding business years:
Date of the general meeting
% attendance in
person
% by proxy
Attendance details
% remote voting
Electronic voting
other
Total
28/06/2017
Of which, Floating capital:
28/06/2018
Of which, Floating capital:
08/05/2019
Of which, Floating capital:
02/06/2020
Of which, Floating capital:
20.26
0.24
20.12
0.06
20.08
0.12
0.21
0.10
68.63
7.52
69.42
8.31
70.74
9.22
61.76
9.73
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.01
0.03
0.03
0.00
0.00
0.01
0.01
28.17
0.01
88.92
7.79
89.54
8.37
90.83
9.35
90.15
9.85
B.5.
Indicate whether there have been any items on the agenda at general meetings held during the business year that, for any reason,
have not been approved by shareholders.
[
]
[ √ ]
Yes
No
B.6.
Indicate whether there are any statutory restrictions that establish a minimum number of shares necessary to attend the general
shareholders' meeting, or to vote remotely:
[
]
[ √ ]
Yes
No
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ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
715
C. STRUCTURE OF THE COMPANY'S ADMINISTRATION
C.1. Board of Directors
C.1.1 Maximum and minimum number of directors provided for the Bylaws and the number defined by the general shareholders'
meeting:
Maximum number of directors
Minimum number of directors
Number of directors defined by the shareholders'
meeting
15
9
14
C.1.2 Fill in the following table with Board members:
Name or corporate
name of the
director
Representative
Director category
Position on the
Board
First appointment
date
Last appointment
date
Election
procedure
HENRI PROGLIO
Independent
DIRECTOR
27/02/2015
08/05/2019
DOMINUM DESGA,
S.A.
ESTHER ALCOCER
KOPLOWITZ.
Proprietary
CHAIRMAN
27/09/2000
02/06/2020
E.A.C. INVERSIONES
CORPORATIVAS, S.L.
ALICIA ALCOCER
KOPLOWITZ
Proprietary
DIRECTOR
30/03/1999
28/06/2017
INMOBILIARIA
AEG, S.A. DE C.V.
CARLOS SLIM
HELÚ
Proprietary
DIRECTOR
13/01/2015
08/05/2019
PABLO COLIO ABRIL
Executive
CHIEF EXECUTIVE
OFFICER
12/09/2017
28/06/2018
ALEJANDRO
ABOUMRAD
GONZÁLEZ
Proprietary
VICE CHAIRMAN
13/01/2015
08/05/2019
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
7 / 44
Representative
Director category
Position on the
Board
First appointment
date
Last appointment
date
Election
procedure
Name or corporate
name of the
director
GERARDO KURI
KAUFMANN
JUAN RODRÍGUEZ
TORRES
ÁLVARO VÁZQUEZ
LAPUERTA
MANUEL GIL
MADRIGAL
ALFONSO SALEM
SLIM
ANTONIO GÓMEZ
GARCIA
Executive
DIRECTOR
13/01/2015
08/05/2019
Proprietary
DIRECTOR
07/10/2015
02/06/2020
Independent
DIRECTOR
27/02/2015
08/05/2019
Independent
DIRECTOR
27/02/2015
08/05/2019
Proprietary
DIRECTOR
29/06/2016
02/06/2020
Proprietary
DIRECTOR
29/06/2016
02/06/2020
SAMEDE
INVERSIONES 2010,
S.L.U
ESTHER
KOPLOWITZ
ROMERO DE
JUSEU
DOMINUM
DIRECCION Y
GESTION, S.A.
CARMEN ALCOCER
KOPLOWITZ
Proprietary
1ST DEPUTY
CHAIRMAN
13/04/2015
08/05/2019
Proprietary
DIRECTOR
26/10/2004
08/05/2019
Total number of directors
14
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
GENERAL
SHAREHOLDERS'
MEETING
RESOLUTION
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ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
716
Indicate any departures, either by resignation or through an agreement reached by the general meeting, that have occurred on the
Board of Directors during the reporting period:
Name or corporate
name of the director
Category of the
director at the time of
departure
Date of most recent
appointment
Cancellation date
Special
commissions of
which he/she was a
member
Indicate whether the
departure occurred
before the end of the
term
No data
C.1.3 Fill in the following tables on the Board members and their different categories:
Name or corporate name
of the director
Position in the
company's
organisation chart
EXECUTIVE DIRECTORS
Profile
PABLO COLIO ABRIL
Chief Executive Officer of FCC
GERARDO KURI
KAUFMANN
Chief Executive Officer of
Cementos Portland
Valderrivas
Architect, graduating from the Higher Technical School of Madrid. He has spent most of
his professional career at FCC, a company to which he has dedicated more than 25 years.
Within the Group, he has been responsible for the international expansion of the
Industrial area. Positions he has previously held include Managing Director of FCC
Construcción and Managing Director of FCC Industrial. He is the CEO of the FCC Group
and a member of its Executive Committee, functions that he combines with those of the
Chairman of FCC Construcción, Chairman of FCC Medio Ambiente and Deputy Chairman
of FCC Servicios Medioambiental Holding, S.A. He is also a director of the Mexican firm
Carso Infraestructuras y Construcción (CICSA).
Industrial Engineer graduate from the University of Anáhuac (Mexico). From 2008 to
2010, he served as purchasing director at Carso Infraestructuras y Construcción,
S.A.B. de C.V. From the incorporation of Inmuebles Carso, S.A.B de C.V., he has been
in charge of its General Management. He is a member of the board of directors of
Minera Frisco SAB. de C.V., Elementia, S.A., Philip Morris México, S.A. de C.V. and
Inmuebles Carso, S.A.B de C.V. He is the CEO of Cementos Portland Valderrivas, S.A.
and Realia Business, S.A.
EXTERNAL PROPRIETARY DIRECTORS
Name or corporate
name of the director
Name or corporate name of
the significant shareholder
that he/she represents or
that has proposed his/her
appointment
Profile
DOMINUM DESGA, S.A.
DOMINUM DIRECCION Y
GESTION, S.A.
E.A.C. INVERSIONES
CORPORATIVAS, S.L.
DOMINUM DIRECCION Y
GESTION, S.A.
Degree in Law, she has completed the Senior Business Management Program (PADE)
at the IESE in Madrid. Since January 2013, she has served as Chairwoman of the FCC
Group, a member of its Executive Committee and the Appointments and Remuneration
Committee. She is also a director at Cementos Portland Valderrivas, on behalf of EAC
Medio Ambiente, S.L., Realia, on behalf of EAC Inversiones Corporativos, S.L., and
CaixaBank-Banca Privada. The representatives of Dominum Desga, S.A., Samede
Inversiones 2010, S.L.U., Dominum Direction and Management, S.A. and EAC
Inversiones Corporativas, S.L. maintain a parent-subsidiary relationship. (See Section
A.6 of this Report for a description of the relationships between the director and the
significant shareholders).
A Law graduate, she started her professional career at Banco Zaragozano, where she
worked for four years in the Finance Department, at the bank's treasury desk and
served as a director. She is a director at FCC and a member of its Executive Committee.
In turn, she is chairwoman of Cementos Portland Valderrivas, S.A. and a member of its
Executive Committee and its Appointments and Remuneration Committee. She is a
member of the Innovation Committee, under the Secretary of State for Science,
Technology, and Innovation. She is also a member of the Board of the Esther Koplowitz
Foundation and the Valderrivas Foundation. The representatives of Dominum Desga,
S.A., Samede Inversiones 2010, S.L.U., Dominum Direction and Management, S.A. and
EAC Inversiones Corporativas, S.L. maintain a parent-subsidiary relationship. (See
Section A.6 of this Report for a description of the relationships between the director
and the significant shareholders).
Civil Engineer from the National Autonomous University of Mexico (UNAM). Founder
of Grupo Carso, S.A.B. de C.V., América Móvil, Grupo Financiero Inbursa, and Inversora
bursátil. He is the owner of Teléfonos de México (Telmex). He has been Vice-President
of the Mexican Stock Exchange and President of the Mexican Association of Brokerage
Houses. He was the first Chairman of the Latin American Committee of the New York
Stock Exchange Board of Directors. He is currently Chairman of the Board of Directors
of Carso Infraestructuras y Construcción (CICSA), Minera Frisco and President of
Fundación Carlos Slim de la Educación, A.C. and Fundación Telmex, A.C. In addition, he
is a member of the Board of Directors of Inmuebles Carso and IDEAL. (See Section A.6
of this Report for a description of the relationships between the director and the
significant shareholders).
Total number of executive directors
% of the total Board
2
14.29
INMOBILIARIA AEG, S.A.
DE C.V.
CONTROL EMPRESARIAL DE
CAPITALES, S.A. DE C.V.
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717
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
EXTERNAL PROPRIETARY DIRECTORS
EXTERNAL PROPRIETARY DIRECTORS
Name or corporate
name of the director
Name or corporate name of
the significant shareholder
that he/she represents or
that has proposed his/her
appointment
Profile
ALEJANDRO ABOUMRAD
GONZÁLEZ
CONTROL EMPRESARIAL DE
CAPITALES, S.A. DE C.V.
JUAN RODRÍGUEZ
TORRES
CONTROL EMPRESARIAL DE
CAPITALES, S.A. DE C.V.
ALFONSO SALEM SLIM
CONTROL EMPRESARIAL DE
CAPITALES, S.A. DE C.V.
Industrial Engineer graduate from the University of Anáhuac (Mexico). He has worked
in subsidiaries and companies related to Grupo Carso during the last 15 years, of which
five years he worked at Grupo Financiero Inbursa in the area of Project Evaluation and
Risk Assessment. He is member of the board of directors of Inmuebles Carso, S.A.B. of
C.V. and Minera Frisco, S.A.B. of C.V., holding the post of General Manager with the
latter. He is a director at Cementos Portland Valderrivas, S.A. on behalf of Inmobiliaria
AEG, S.A. de C.V., and Chairman of the Board of Directors of FCC Aqualia, Chairman of
FCC Servicios Medioambiental Holding, S.A.U and Deputy Chairman of the Board of FCC
and Chairman of its Executive Committee. (See Section A.6 of this Report for a
description of the relationships between the director and the significant shareholders).
Civil Engineer from the Autonomous University of Mexico. He has a full Master's degree
in Operational Planning and Research from UNAM. He has also completed
administration studies at IPADE and obtained a diploma in prestressed concrete in
Paris. He founded the Mexican Business Generation Association. He has been
Production Manager and Controller of Preesforzados Mexicanos, S.A. de ICA, and
Managing Director of Domit Group in the footwear sector. He is currently a director of
Minera Frisco, S.A.B. de S.A. de CV. and of Carso Infraestructura y Construcción, S.A.B.
de C.V. (CICSA) and non-executive chairman of Telesites. He is a director of Cementos
Portland Valderrivas, S.A., representing Inmuebles Inseo, S.A. de C.V., a director of FCC
Aqualia and non-executive chairman of Realia. (See Section A.6 of this Report for a
description of the relationships between the director and the significant shareholders).
He graduated in Civil Engineering from University of Anahuac in the class of 80-84.
Throughout his professional career, Salem Slim has performed the role of Deputy
Manager of Expansion at Sanborns Hermanos; director of Shopping Centres at Grupo
CARSO; director of Real-Estate at INBURSA; managing director of Hoteles Calinda,
managing director of Grupo PC Constructores; managing director of IDEAL, and he is
currently deputy chairman of the Board of Directors of IDEAL and chairman of the Board
of Directors and managing director of Inmuebles CARSO. He is also a member of the
Board of Directors of Grupo CARSO; IDEAL; CICSA; Carso Real Estate; Gigante Grupo
Inmobiliario; ELEMENTIA and Gas Natural Fenosa. (See Section A.6 of this Report for a
description of the relationships between the director and the significant shareholders).
Name or corporate
name of the director
Name or corporate name of
the significant shareholder
that he/she represents or
that has proposed his/her
appointment
ANTONIO GÓMEZ
GARCIA
CONTROL EMPRESARIAL DE
CAPITALES, S.A. DE C.V.
SAMEDE INVERSIONES
2010, S.L.U
DOMINUM DIRECCION Y
GESTION, S.A.
DOMINUM DIRECCION Y
GESTION, S.A.
DOMINUM DIRECCION Y
GESTION, S.A.
Profile
He is a graduate in Industrial Engineering from the Universidad Iberoamericana. He has
been Managing Director of Grupo Porcelanite, S.A. de C.V., of US Commercial Corp.,
S.A.B. de C.V., and currently holds the position of Managing Director of Grupo Carso,
S.A.B. de C.V. He is a director of Grupo Frisco S.A.B. de C.V., and a director of Grupo
Elementia S.A.B. de C.V. (See Section A.6 of this Report for a description of the
relationships between the director and the significant shareholders).
Shareholder in FCC, S.A. through Dominum Dirección y Gestión, S.A. she is a member
of the Board of Directors of FCC, S.A., and the company's Deputy Chairwoman. She is
also a director at FCC Environment. She holds a degree in Philosophy and Arts from the
University of Madrid; she has developed her business experience in the international
field as a Director of Veolia and Vivendi. She is founder and chairwoman of the Esther
Koplowitz Foundation. Among other acknowledgements, she has been awarded: the
Grand Cross of Civil Merit, the Gold Medal of the Region of Madrid, the Gold Medal and
the title of Academic of Honour of the Royal Academy of History, the distinction of
Honorary Citizen by the Valencia City Council, the City of Barcelona Coat of Arms, the
Business Leader of the Year award, granted by the Spanish Chamber of Commerce in
the USA, the Blanquerna Prize of the Generalitat of Catalonia, Madrid Grand Cross of
Healthcare, the Gold and Diamond Insignia of the Police Orphans Foundation, Légion
d’Honneur of the French Republic and The Grand Cross of the Civil Order of
Environmental Merit, awarded by the Spanish Council of Ministers. The representatives
of Dominum Desga, S.A., Samede Inversiones 2010, S.L.U., Dominum Direction and
Management, S.A. and EAC Inversiones Corporativas, S.L. maintain a parent-subsidiary
relationship. (See Section A.6 of this Report for a description of the relationships
between the director and the significant shareholders).
Graduate in Law from the Francisco de Vitoria University of Madrid. She is a director at
FCC, S.A. She is a director at B-1998, S.L. and sits on the Board of Directors of Cementos
Portland Valderrivas, S.A., representing Meliloto, S.L. She is a board member of the
Esther Koplowitz Foundation. The representatives of Dominum Desga, S.A., Samede
Inversiones 2010, S.L.U., Dominum Direction and Management, S.A. and EAC
Inversiones Corporativas, S.L. maintain a parent-subsidiary relationship. (See Section
A.6 of this Report for a description of the relationships between the director and the
significant shareholders).
Total number of proprietary directors
% of the total Board
9
64.29
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ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
718
Name or corporate name
of the director
INDEPENDENT EXTERNAL DIRECTORS
Profile
HENRI PROGLIO
A graduate of the Higher School of Business Administration (HEC) in Paris. He is currently a director of Natixis Banque
and of Dassault Aviation. He has also served as Chairman of the energy giant Électricité de France (2009-2014) and
Veolia Environnement (2003-2009), as well as a board member of FCC, Lagardère Group and Vinci, among other
companies.
ÁLVARO VÁZQUEZ
LAPUERTA
He holds a degree in Law and Business Studies (E-3) by ICADE and is currently a partner of the firms Akiba Partners
and Meridia Capital Partners. He was Managing Director for Spain and Portugal at Dresdner Kleinwort, and CEO and
head of Investor Relations at securities firm BBVA Bolsa. Previously he held various positions at JP Morgan in Mexico,
New York, London and Madrid.
MANUEL GIL MADRIGAL
He holds a degree in Law and Business Sciences (E-3) by ICADE and is a founding partner of the company Tasmania
Gestión. In 2000 he was also founder of the financial company N+1 and has been a board member of Ezentis,
Funespaña, General de Alquiler de Maquinaria (GAM) and Campofrío, among other companies. During his career he
has also been director of Capital Markets for AB Asesores Bursátiles, partner of Morgan Stanley and auditor of Arthur
Andersen.
Total number of independent directors
% of the total Board
3
21.43
Indicate whether any director qualified as independent receives any amounts or benefits for any concept other than director
remuneration from the company or its group, or maintains or has maintained, during the last business year, a business relationship
with the company or with any company in its group, either in its own name or as a significant shareholder, director or senior
manager of an entity with which he/she maintains or has maintained this relationship.
As applicable, a reasoned statement by the Board shall be included providing the reasons why it believes that this director can
perform his/her duties as an independent director.
Name or corporate name
of the director
No data
Description of the relationship
Reasoned statement
The other external directors shall be identified and the reasons they cannot be considered proprietary or independent and their relationships,
whether with the Company, its directors, or its shareholders, shall be detailed:
OTHER EXTERNAL DIRECTORS
Name or corporate name
of the director
Reasons
No data
Total number of other external directors
% of the total Board
N/A
N/A
Company, executive or
shareholder with whom
he/she maintains a
relationship
Profile
Indicate the changes to the category of each director that, as appropriate, have occurred during the period:
Name or corporate name
of the
director
No data
Change date
Previous category
Current category
C.1.4 Fill in the following table with information regarding the number of female directors at the end of the past 4 business years, as
well as the category of these female directors:
Number of female directors
% of the total number of directors for
each category
2020
2019
2018
2017
2020
2019
2018
2017
Executive
Proprietary
4
4
4
4
Independent
Other External
0.00
44.44
0.00
0.00
0.00
44.44
0.00
0.00
0.00
40.00
0.00
0.00
0.00
40.00
0.00
0.00
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ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
Number of female directors
% of the total number of directors for
each category
Total Senior Management remuneration (thousands of euros)
1,831
2020
2019
2018
2017
2020
2019
2018
2017
C.1.15 Indicate whether there has been any change in the Board's regulation during the business year:
Total
4
4
4
4
28.57
28.57
26.66
26.66
C.1.11 If applicable, list the directors or representatives of corporate directors of your Company, who are members of the Board of
Directors or representatives of corporate directors of other companies listed on regulated markets other than your Group, of
which the Company has been informed:
Name or corporate name
of the
director
Corporate name of the listed
company
Position
E.A.C. INVERSIONES CORPORATIVAS, S.L.
Realia Business, S.A.
DIRECTOR
GERARDO KURI KAUFMANN
JUAN RODRÍGUEZ TORRES
MANUEL GIL MADRIGAL
Realia Business, S.A.
Realia Business, S.A.
Barón de Ley, S.A.
CHIEF EXECUTIVE OFFICER
CHAIRMAN
DIRECTOR
[ √ ]
]
[
Yes
No
C.1.21 Explain whether there are specific requirements, other than those applicable to all directors, to be appointed as Chairman of the
Board of Directors.
[
]
[ √ ]
Yes
No
C.1.23 Indicate if the Bylaws or rules of the Board establish a limit on mandates or other more stringent requirements in addition to
those legally provided for independent directors, with the exception of those established in the regulations:
[
]
[ √ ]
Yes
No
C.1.12 Indicate and, if applicable, explain whether the company has established rules on the maximum number of Boards of Directors on
which its directors may sit, identifying, where appropriate, where this provision is regulated:
C.1.25 Indicate the number of meetings held by the Board of Directors during the business year. Furthermore, indicate, where
appropriate, the times that the Board has met without the presence of the Chairman. In this calculation, proxies granted with
specific instructions shall be considered as attendance.
]
[
[ √ ]
Yes
No
C.1.13 Indicate the amounts of the following concepts relating to the global remuneration of the Board of Directors:
Remuneration accrued during the business year in favour of the Board of Directors (thousands of euros)
1,945
Amount of rights accrued by current directors for pension benefits
(thousands of euros)
Amount of rights accrued by former directors for pension benefits (thousands
of euros)
3,151
C.1.14 Identify members of senior management who are not executive directors, and indicate the total remuneration accrued in their
favour during the business year:
Name or corporate name
Position(s)
FELIPE BERNABÉ GARCÍA PÉREZ
General Secretary
MIGUEL MARTINEZ PARRA
Managing Director of Administration and Finance
FELIX PARRA MEDIAVILLA
Managing Director of Aqualia
MARCOS BADA GUTIÉRREZ
Managing Director of Internal Audit
Number of women in senior management
Percentage of total members of senior management
0.00
Number of Board meetings
Number of Board meetings without the
Chairman's attendance
9
0
Indicate the number of meetings held by the coordinating director with other directors, without the attendance or
representation of any executive director:
Number of meetings
0
Indicate the number of meetings held by the different Board Committees during the business year:
Number of Audit and Control Committee
meetings
Number of Appointments and
Remuneration Committee meetings
Number of Executive Committee
meetings
8
7
8
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C.1.26 Indicate the number of meetings held by the Board of Directors during the business year and the attendance details of its
C.1.31 Indicate whether during the business year, the Company has changed its external auditor. If applicable, identify the
members:
Number of meetings at which at least
80% of directors were in attendance
% of face-to-face attendance divided by
total votes during the business year
Number of meetings with the face-to-
face attendance, or proxies made with
specific instructions, of all directors
% of votes cast with face-to-face
attendance and proxies made with
specific instructions, divided by total
votes during the business year
9
90.48
90.48
C.1.27 Indicate whether the individual and consolidated financial statements submitted to the board for preparation have
been certified previously:
[ √ ]
]
[
Yes
No
Identify, where appropriate, the person(s) who has/have certified the company's individual and consolidated financial
statements for their preparation by the Board:
Name
JUAN JOSÉ DRAGO MASÍA
Position
Managing Director of
Administration
PABLO COLIO ABRIL
Chief Executive Officer
MIGUEL MARTINEZ PARRA
Managing Director of
Administration and Finance
C.1.29 Does the secretary of the Board have director status?
]
[
[ √ ]
Yes
No
If the secretary does not have director status, fill in the following table:
Name or corporate name
of the secretary
Representative
FRANCISCO VICENT CHULIA
incoming and outgoing auditor:
Yes
No
If there have been disagreements with the outgoing auditor, explain the nature of these:
Yes
No
[
]
[ √ ]
]
[
[ √ ]
C.1.32 Indicate whether the audit firm performs other work for the Company and/or its Group other than those inherent to audits and,
in that case, state the fees received for this work and the percentage that the aforementioned amount represents of the fees
billed for audit work to the Company and/or its group:
[
]
[ √ ]
Yes
No
C.1.33 Indicate whether the audit report of the previous business year's financial statements includes qualifications. As applicable,
indicate the reasons given to shareholders at the General Shareholders' Meeting by the Chairman of the Audit Committee to
explain the content and scope of these qualifications.
[
]
[ √ ]
Yes
No
C.1.34 Indicate the number of business years that the current audit firm has been continuously auditing the Company's individual
and/or consolidated financial statements. Furthermore, indicate the percentage that the number of business years audited by
the current audit firm accounts for in terms of the total number of business years in which the financial statements have been
audited:
Number of uninterrupted business years
19
19
Individual
Consolidated
Number of business years audited by the
current audit firm/Number of business years
that the Company or its Group have been
audited (in %)
Individual
Consolidated
61.29
61.29
C.1.35 Indicate and, as applicable, describe if there is a procedure for directors to receive the necessary information to
prepare meetings with administrative bodies with sufficient time:
[ √ ]
]
[
Yes
No
Describe the procedure
Rules of the Board of Directors. Article 26. Information and inspection powers
“1. In the performance of their duties, every director has the duty to demand and the right to obtain from the Company, the adequate and necessary information that will allow
them to fulfil their obligations concerning all aspects of FCC and its subsidiaries and investees, whether national or foreign. To this end, they may examine the documentation
deemed necessary, make contact with those responsible for the affected departments and visit the corresponding facilities. 2. To refrain from disturbing the ordinary
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PUBLIC LIMITED COMPANIES
management of the FCC Group, the exercise of the powers of information shall be channelled through the Chairman, who shall respond to the director's requests, directly
providing the information or offering the details of the corresponding contacts at the corresponding organisational level. 3. If the request for information is denied, delayed or
incorrectly responded to, the requesting director may repeat their request before the Audit and Control Committee, and, once the Chairman and the requesting director have
provided their reasons, this Committee shall decide how to proceed for the purposes mentioned above. 4. The requested information may only be denied when, in the opinion of
the Chairman and the Audit and Control Committee, it is unnecessary or harmful to the Company's corporate interests. This refusal shall not apply when the request has been
supported by the absolute majority of the Board members".
C.1.39 Identify individually, when referring to directors, and on an aggregate basis for other cases and indicate, in detail, the
agreements between the Company and its administrative and management positions or employees concerning compensation,
guarantee or shield clauses, when they resign or are dismissed improperly or if the contractual relationship comes to an end
as a result of a takeover bid or other transactions.
Number of beneficiaries
Type of beneficiary
2
Description of the agreement
CEO and General Secretary
CHIEF EXECUTIVE OFFICER: And if the contractual relationship is terminated at the
will of the CEO for any of the following causes: - Substantial changes in working
conditions that are notoriously detrimental to his professional training, that are
detrimental to his dignity, or that are decided with serious transgression of good
faith, by the company. - Failure to pay for three consecutive months or six alternate
months, or continued delay in the payment of the remuneration agreed under the
contract. - Succession of a company or significant change in ownership of the same,
which has the effect of a renewal of its governing bodies or the content of its main
activity, provided that the termination occurs within three months of the occurrence
of such changes. - Any other serious breach of the contractual obligations by the
Company, with the exception of force majeure budgets, in which the payment of
compensation shall not be applicable. As in the case of free and unilateral
termination from the Company, he will have the right to receive compensation
resulting from the sum of the following two items: a) The amount resulting from the
termination of the employment relationship that the CEO previously held with FCC
Construcción or with any other company of the FCC Group using 12 September 2017
as the calculation date (and in accordance with the applicable regulations on that
date). The amount resulting from multiplying 7 days wages by the number of years
that have elapsed from 12 September 2017 until the contract expires. GENERAL
SECRETARY: Concerning the general secretary, an executive director up until 13
January 2015, the Company, having received authorisation from the Executive
Committee, took out and paid up the insurance premium to cover the payment of
contingencies relating to death, permanent incapacity for work, retirement pensions
and benefits or other concepts to be paid, in addition to others, to certain executive
directors and executives. Specifically, the contingencies giving rise to compensation
are those involving the termination of the employment relationship for any of the
following reasons: a) Unilateral decision of the Company. b) Winding up or
disappearance of the parent Company for any reason, including merger or spinoff.
c) Death or permanent disability. d) Other causes of physical or legal incapacitation.
e) Substantial modification of professional conditions. f) Resignation, having reached
the age of 60, at the request of the executive and with the agreement of the
Company. g) Resignation, having reached the age of 65, at the executive's sole
discretion. As at 31 December 2020, the General Secretary is entitled to a net
amount equivalent to 3.5 times his annual gross remuneration.
approved by the corresponding bodies of company or its group. If so, specify the procedures, expected cases and the nature
of the bodies responsible for their approval or communication:
Board of Directors
General Shareholders' Meeting
Body authorising the clauses
Is the General Shareholders' Meeting
aware of the clauses?
C.2. Board of Directors Committees
√
Yes
√
No
C.2.1 Provide details of all the Board of Directors Committees, their members and the proportion of executive, proprietary,
independent and other external directors who serve on them:
Audit and Control Committee
Name
Position
Category
HENRI PROGLIO
JUAN RODRÍGUEZ TORRES
ÁLVARO VÁZQUEZ LAPUERTA
MANUEL GIL MADRIGAL
VOTING MEMBER
Independent
VOTING MEMBER
Proprietary
VOTING MEMBER
Independent
CHAIRMAN
Independent
% of executive directors
% of proprietary directors
% of independent directors
% other external directors
0.00
25.00
75.00
0.00
Explain the duties, including, where appropriate, those in addition to those defined by law, which are attributed to this
committee, and describe the procedures and rules for its organisation and functioning. For each of these functions, indicate
its most important actions during the business year and how it have exercised each of the functions attributed in practice,
whether by law, in the Bylaws or in other corporate agreements.
Identify the director members of the audit committee that have been appointed taking into account their knowledge and
experience in accounting, auditing or both, and report on the date on which the Chairman of this Committee was appointed
to the position.
Names of directors with experience
MANUEL GIL MADRIGAL
Date of appointment of the Chairman to the
position
08/05/2019
Indicate whether, beyond the assumptions provided for in the regulations, these contracts must be communicated and/or
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PUBLIC LIMITED COMPANIES
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PUBLIC LIMITED COMPANIES
722
C.2.2 Fill in the following table with information regarding the number of female directors who sit on the Committees of the
Board of Directors at the end of the last four business years:
Number of female directors
2020
2019
2018
2017
Number
%
Number
%
Number
%
Number
%
0
1
2
0.00
25.00
33.33
0
1
2
0.00
25.00
33.33
0
1
2
0.00
25.00
33.33
0
1
2
0.00
25.00
33.33
Audit and Control
Committee
Appointments and
Remuneration
Committee
Executive
Committee
Appointments and Remuneration Committee
Name
Position
Category
DOMINUM DESGA, S.A.
JUAN RODRÍGUEZ TORRES
ÁLVARO VÁZQUEZ LAPUERTA
MANUEL GIL MADRIGAL
VOTING MEMBER
VOTING MEMBER
CHAIRMAN
Proprietary
Proprietary
Independent
VOTING MEMBER
Independent
% of executive directors
% of proprietary directors
% of independent directors
% other external directors
0.00
50.00
50.00
0.00
Explain the duties, including, where appropriate, those in addition to those defined by law, which are attributed to this
committee, and describe the procedures and rules for its organisation and functioning. For each of these functions, indicate
its most important actions during the business year and how it have exercised each of the functions attributed in practice,
whether by law, in the Bylaws or in other corporate agreements.
Name
Position
Category
Executive Committee
DOMINUM DESGA, S.A.
E.A.C. INVERSIONES CORPORATIVAS, S.L.
PABLO COLIO ABRIL
VOTING MEMBER
VOTING MEMBER
Proprietary
Proprietary
VOTING MEMBER
Executive
ALEJANDRO ABOUMRAD GONZÁLEZ
CHAIRMAN
Proprietary
GERARDO KURI KAUFMANN
JUAN RODRÍGUEZ TORRES
VOTING MEMBER
Executive
VOTING MEMBER
Proprietary
% of executive directors
% of proprietary directors
% of independent directors
% other external directors
33.33
66.67
0.00
0.00
Explain the functions delegated or attributed to this Committee other than those already described in section C.1.9, and
describe the procedures and rules for its organisation and functioning. For each of these functions, indicate its most
important actions during the business year and how it have exercised each of the functions attributed in practice,
whether by law, in the Bylaws or in other corporate agreements.
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PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT OF LISTED
PUBLIC LIMITED COMPANIES
D. TRANSACTIONS WITH RELATED PARTIES AND INTRA-GROUP TRANSACTIONS
D.2. Describe significant transactions based their amount or relevance on account of their subject matter performed between the
company or Group companies and significant shareholders in the company:
Name or corporate
name
of the
significant
shareholder
Name or company
name
of the company or
group entity
Nature of the relationship
Transaction
type
Amount
(thousands of euros)
REALIA BUSINESS, S.A.
FC y C, S.L. Unipersonal
Contractual
Receipt of services
REALIA BUSINESS, S.A.
FCC Construcción, S.A.
Contractual
Provision of services
REALIA BUSINESS, S.A.
FC y C, S.L. Unipersonal
Contractual
Receipt of services
BANCO INBURSA, S.A.
Cementos Portland
Valderrivas, S.A.
Contractual
Interest charged
BANCO INBURSA, S.A.
FCC Construcción, S.A.
Contractual
Financing agreements:
other
REALIA PATRIMONIO,
S.L.U
REALIA PATRIMONIO,
S.L.U
FCC Industrial e
Infraestructuras
Energéticas S.A.U.
FCC Industrial e
Infraestructuras
Energéticas S.A.U.
Contractual
Provision of services
Contractual
Provision of services
1,954
23,911
2,076
3,818
1,397
5
D.3. Describe the significant transactions based their amount or relevance on account of their subject matter performed between the
company or group companies and company directors or executives:
D.4. Provide details of the significant operations carried out by the company with other companies belonging to the same Group,
provided they are not eliminated in the process of preparing consolidated financial statements and are not part of the
Company's routine business in terms of its purpose and conditions.
In any case, any intra-group transactions carried out with companies established in countries or territories that are considered a tax
haven shall be reported:
of
Corporate name
the Group
company
No data
Brief description of the transaction
Amount
(thousands of euros)
N/A
D.5. Describe the significant transactions carried out between the Company or Group Companies and other related parties, which
have not been reported on in the above epigraphs.
Corporate name
of the
related party
No data
Brief description of the transaction
Amount
(thousands of euros)
N/A
Relationship
Nature of the transaction
Amount
(thousands of euros)
Name or company
of directors or
name
executives
Name or company
name
of the company or
group entity
ALEJANDRO
ABOUMRAD GONZÁLEZ
FOMENTO DE
CONSTRUCCIONES Y
CONTRATAS SA
Director
Provision of services
GERARDO KURI
KAUFMANN
CEMENTOS PORTLAND
VALDERRIVAS SA
Chief Executive
Officer
Provision of services
338
175
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PUBLIC LIMITED COMPANIES
G. DEGREE OF COMPLIANCE WITH CORPORATE GOVERNANCE RECOMMENDATIONS
Indicate the degree of compliance at the company with the recommendations of the Code of Good Governance of Listed Companies.
In the event that any recommendation is not followed or is only partially followed, a detailed explanation of the reasons for this shall be included,
so that shareholders, investors and the market in general have sufficient information to assess the company's behaviour. General explanations
shall not be acceptable.
1.
The Bylaws of listed companies do not limit the maximum number of votes that can be cast by the same shareholder, nor contain
other restrictions that make it difficult to take control of the company by acquiring its shares on the market.
Compliant [X]
Explain [
]
2. Where the listed company is controlled, within the meaning of Article 42 of the Commercial Code, by another entity, whether listed
or not, and has, directly or through its subsidiary companies, business dealings with that entity or any of its subsidiary companies
(other than those of the listed company) or engages in activities related to those of any of them, it should accurately publicly
disclose the following:
a)
The respective areas of activity and any business relationships between, the listed company or its subsidiary companies and
the parent company or its subsidiary companies.
b)
The proposed mechanisms for resolving any conflicts of interests that may arise.
Compliant [X]
Partially compliant [
]
Explain [
]
Not applicable [
]
3.
During the ordinary general shareholders' meeting, in addition to the dissemination in writing of the annual corporate governance
report, the Chairman of the Board of Directors verbally informs shareholders, in sufficient detail, of the most relevant aspects of the
company's corporate governance and, in particular:
a)
b)
Of the changes that have occurred since the previous ordinary general shareholders' meeting.
Of the specific reasons that the company does not follow any of the recommendations in the Corporate Governance Code and,
as applicable, any alternative rules that apply in this regard.
Compliant [ ]
Partially compliant [
]
Explain [ X ]
The Company believes that the provisions of the company's corporate governance information to shareholders in the specific report prepared to this end is sufficient; this report
accompanies the information made available before the Meeting is held.
In this connection, the announcement of the General Shareholders' Meeting is expressly indicated in the "Right to Information" section that all shareholders are entitled to obtain from
the Company, for consideration at its registered office
shareholders for approval as part of the Management Report.
This Report can be consulted on the Company's website and in the corporate governance section.
or for immediate dispatch free of charge, including the Annual Corporate Governance Report, which is submitted to
4.
The company defines and promotes a policy regarding communication and contact with shareholders, institutional investors in
the framework of their involvement in the company, as well as with voting advisors that fully complies with the standards in
force to combat market abuse and addresses shareholders in the same position equally. The company publishes this policy on its
website, including information related to the way in which it has been implemented and identifying the points of contact or
persons responsible for carrying it out.
And, notwithstanding the legal obligations to disclose inside information and other types of regulated information, the company should
also have a general policy regarding the communication of economic-financial, non-financial and corporate information through the
channels it deems appropriate (media, social networks or other channels) that helps to maximise the dissemination and quality of the
information available to the market, investors and other stakeholders.
Compliant [ ]
Partially compliant [
]
Explain [ X ]
The company has drafted its Policy on Communication and Contacts with Shareholders, Institutional Investors, Analysts, Voting Advisors and Credit Rating Agencies, which the Board of
Directors plans to approve in the 2021 business year.
5.
The Board of Directors does not submit a proposal for the delegation of powers to issue convertible shares or securities excluding
the pre-emptive subscription right, for an amount greater than 20% of the capital at the time of delegation, to the General
Shareholders' Meeting.
When the Board of Directors approves any issuance of shares or convertible securities excluding the pre-emptive subscription right,
the company immediately publishes the reports on said exclusion to which trade legislation refers on its website.
Compliant [X]
Partially compliant [
]
Explain [
]
6.
The listed companies that prepare the reports mentioned below, whether they are mandatory or voluntary, publish them on their
website well in advance of the Ordinary General Shareholders' Meeting, even when their dissemination is not mandatory:
a)
b)
c)
Report on the independence of the auditor.
Reports on the functioning of the audit committee and the appointments and remuneration committee.
Report of the audit committee on related transactions.
Compliant [ ]
Partially compliant [ X ]
Explain [
]
The Company approves the self-assessment reports corresponding to the Audit and Control Committee and the Appointments and Remuneration Committee at the first Board meeting
of the business year.
These reports are not published when the company considers that information is already provided to this end in Section C.2.1 on the IAGC Board of Directors committees, which is
available on the Group's corporate website.
The approval of transactions with related parties lies with the Appointments and Remuneration Committee responsible for this specific function. Also in Section D2 of the IAGC,
the significant transactions that have taken place during the business year are listed.
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PUBLIC LIMITED COMPANIES
7.
The Company broadcasts General Shareholders' Meetings live, on its website.
Two different systems are used, for practical reasons, to count votes, all pursuant to the provisions of Article 20
the Chairman of the Board, in each specific case, may decide to apply the same counting system (Art. 20, section 4 of the Rules of the General Meeting).
of the Rules of the General Shareholders' Meeting, although
And that the company has mechanisms that enable proxy voting and voting by remote means and even, in the case of large-
cap companies and to the extent appropriate, attendance and active participation at the General Meeting.
Compliant [X]
Partially compliant [
]
Explain [
]
8.
The audit committee should ensure that the financial statements submitted by the Board of Directors to the general shareholders'
meeting are drawn up in accordance with accounting standards. In those cases in which the auditor has included an exception in
the audit report, the chairman of the audit committee should clearly explain at the general meeting the audit
on its content and scope, and a summary of said opinion should be made available to shareholders at the time of publication of
the notice of call to the meeting, together with the rest of the board's proposals.
committee's opinion
Compliant [X]
Partially compliant [
]
Explain [
]
9.
The Company publishes on its website, on a permanent basis, the requirements and procedures that it shall accept to demonstrate
ownership of shares, the right to attend the general shareholders meeting and the exercise or delegation of the right to vote.
These requirements and procedures promote the attendance and exercise of shareholders' rights and are applied in a non-discriminatory
manner.
Compliant [X]
Partially compliant [
]
Explain [
]
10. When a legitimate shareholder has exercised, before the General Shareholders' Meeting is held, the right to add to the agenda or
submit new resolutions, the Company:
a)
b)
c)
d)
Immediately disseminates these additional items and new resolutions proposed.
Discloses the attendance card template or vote delegation form or distance voting form with the necessary modifications
so that the new items on the agenda and alternative resolution proposals can be voted on under the same terms as those
proposed by the Board of Directors.
Submits all the alternative points or proposals to a vote and apply the same voting rules as applied to those prepared by
the Board of Directors, including, in particular, assumptions or deductions on the meaning of the vote.
After the General Shareholders' Meeting, communicate the breakdown of the vote on these additional items or alternative
proposals.
Compliant [
]
Partially compliant [ X ]
Explain [
]
Not applicable [
]
11.
If the company plans to pay out attendance premiums to the General Shareholders Meeting, a general policy on these premiums is
established in advance and this policy is stable.
Compliant [
]
Partially compliant [
]
Explain [
]
Not applicable [ X ]
12. The Board of Directors performs its functions with unity of purpose and independence of judgment, treats all shareholders in the same
position in the same way and is guided by the social interest, understood as the achievement of a profitable and sustainable business
in the long term, which promotes its continuity and maximisation of the economic value of the company.
And in the pursuit of social interests, in addition to respect for the laws and regulations and conduct based on good faith, ethics and
with, as appropriate,
respect for commonly accepted uses and good practices, the company seeks to reconcile its own social interest
the legitimate interests of its employees, its suppliers, its customers and those of the other stakeholders that may be affected, as well
as the impact of the company's activities on the community as a whole and on the environment.
Compliant [X]
Partially compliant [
]
Explain [
]
13. The Board of Directors is the correct size to ensure it is effective and participative, meaning it is advisable to have between five and
fifteen members.
Compliant [X]
Explain [
]
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14. The Board of Directors should adopt a policy aimed at encouraging a suitable composition for the Board of Directors and it
17. The number of independent directors represents at least half the total number of directors.
should:
a)
b)
c)
Is specific and verifiable.
ensure that proposed appointments and re-elections are based on a preliminary analysis of the powers required by the
Board of Directors; and
promote the diversity of knowledge, experience, age and gender. For these purposes, measures that encourage the company
to have a significant number of female senior managers are considered to be conducive to gender diversity.
The result of the preliminary analysis of powers required by the Board of Directors is included in the explanatory report issued by the
Appointments Committee that is published when the General Shareholders Meeting is called and to which the ratification,
appointment or re-election of each director is submitted.
The Appointments Committee will verify compliance with this policy and will be informed in the Annual Corporate Governance
Report.
Compliant [X]
Partially compliant [
]
Explain [
]
15. Proprietary and independent directors represent a large majority of the Board of Directors and that the number of executive
directors is the minimum necessary, taking into account the complexity of the corporate group and the shareholding of the
executive directors in the Company's capital.
And that the number of female directors should account for at least 40% of the members of the Board of Directors by the end
of 2022 and beyond, but no less than 30% before then.
Compliant [
]
Partially compliant [ X ]
Explain [
]
With regard to the percentage of female directors, the FCC's Board of Directors has four female directors out of a total of 14, giving a percentage of 28.57.
16. The percentage of proprietary directors compared to the total of non-executive directors is no greater than the proportion
between the capital of the Company represented by these directors and other capital.
This criteria may be relaxed:
a)
b)
At companies with a high capitalisation with few shareholdings considered significant by law.
For companies in which there is a large number of shareholders represented on the Board of Directors who have no
links to one another.
Compliant [X]
Explain [
]
However, when the company is not highly capitalised or when, even if it is, one shareholder or more shareholders are acting
together, controlling more than 30% of the share capital, the number of independent directors represents at least one third of the
total number of directors.
Compliant [
]
Explain [ X ]
On its Board of Directors, FCC has three independent directors out of a total of fourteen members, representing 21 percent of the total number of directors.
FCC believes that this percentage does not require an increase in the number of independent directors, considering the Company's very concentrated shareholding structure and the
effective role of the three independent directors.
18. Companies publish the following information about directors on their website, and keep it up to date:
a)
b)
c)
d)
e)
Professional and biographical profile.
Other Boards of Directors to which they belong, whether at listed companies or not, and the other paid activities they
perform, regardless of their nature.
Indication of the category of Director to which they belong, indicating, in the case of proprietary directors, the
shareholder they represent or with whom they have links.
Date of their first appointment as a Director of the Company, as well as subsequent re-elections.
Shares in the company, and options on them, that they own.
Compliant [
]
Partially compliant [ X ]
Explain [
]
The company makes available on its website the professional and biographical profile, other boards of directors to which the directors belong, the director's category, the
date of his or her first appointment and the shares in the company, without considering it necessary, for the time being, to publicise other remunerated activities carried out
by the director, whatever their nature.
19. The annual corporate governance report, after a check performed by the Appointments Committee, explains the reasons that
proprietary directors have been appointed at the request of shareholders whose shareholding is less than 3% of the capital stock; and
it explains the reasons that formal requests for presence on the Board from shareholders whose shareholding is equal to or greater
than that of others, at whose request proprietary directors have been appointed, have not been met.
Compliant [
]
Partially compliant [
]
Explain [
]
Not applicable [ X ]
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20. Proprietary directors submit their resignation when the shareholder they represent fully transfers their shareholding. They also
23. All directors clearly express their opposition when they consider that any proposed decision submitted to the Board of Directors may
do so, in the corresponding number, when said shareholder reduces their shareholding to a level that requires a reduction in the
number of their proprietary directors.
be contrary to the corporate interest. The same applies, in a special way, to independents and other directors who are not affected by
any potential conflict of interests, in the case of decisions that may harm shareholders not represented on the Board of Directors.
Compliant [X]
Partially compliant [
]
Explain [
]
Not applicable [
]
21. The Board of Directors does not propose the removal of any independent director before the end of the statutory period for which
they were appointed, unless there is just cause, identified by the Board following in a report from the Appointments and
Remuneration Committee. In particular, it shall be considered that there is just cause when the director first occupies new positions
or contracts new obligations that prevent him/her from dedicating the necessary time to the performance of the duties assigned to
the position of director, breaches the duties inherent to the position in question or incurs in any of the circumstances resulting in
him/her losing his/her status as an independent director, pursuant to the provisions of the applicable legislation.
The removal of independent directors may also be proposed as a result of takeovers, mergers or other similar corporate
transactions that involve a change in the capital structure of the company, when these changes in the structure of the Board of
Directors can be attributed to the criteria of proportionality indicated in recommendation 16.
Compliant [X]
Explain [
]
22. Companies should establish rules requiring directors to report and, where appropriate, resign when situations arise affecting them,
whether or not this is related to their actions in the company itself, which could be harmful to the credit and reputation of the
company. This is in addition to the specific requirement of informing the Board of Directors of any criminal proceedings in which
they are under investigation, as well as the progress of any such proceedings.
And, having been informed of or otherwise having become aware of any of the situations mentioned in the previous paragraph,
the board should examine the case as soon as possible. It should also, in view of the specific circumstances, decide, after a report
from the appointments and remuneration committee, whether or not to adopt any measures, such as opening an internal
investigation, requesting the resignation of the director or proposing his or her dismissal. And to report on the matter in the
annual corporate governance report, unless there are special circumstances justifying this, which should be recorded in the
minutes. This is notwithstanding the information that the company must disclose, where appropriate, at the time of adopting the
corresponding measures.
Compliant [X]
Partially compliant [
]
Explain [
]
When the Board of Directors adopts significant or repeated decisions about which the director would have made reservations,
he/she shall draw the necessary conclusions and, if he chooses to resign, explain his/her reasons for doing so in the letter indicated
in the following recommendation.
This recommendation also applies to the secretary of the Board of Directors, even if he/she does not have the status of a director.
Compliant [X]
Partially compliant [
]
Explain [
]
Not applicable [
]
24. When, either by resignation or by resolution of the general meeting, a director resigns before the end of their term of office, they
should sufficiently explain the reasons for their resignation or, in the case of non-executive directors, their views on the reasons for
the board's decision to remove them, in a letter sent to all members of the Board of Directors.
And, notwithstanding the fact that all the above is disclosed in the annual corporate governance report, to the extent that it is
relevant for investors, the company should publish the resignation as soon as possible, including a sufficient reference to the reasons
or circumstances provided by the director.
Compliant [X]
Partially compliant [
]
Explain [
]
Not applicable [
]
25. The Appointments Committee ensures that non-executive directors have sufficient time available for the proper performance of
their duties.
And the Rules of the Board establish the maximum number of Boards on which its directors may serve.
Compliant [
]
Partially compliant [ X ]
Explain [
]
In Article 21.4 of the Rules of the Board of Directors, the Company establishes that "Directors must inform the Appointments and Remuneration Committee of their other
professional obligations, should they could interfere with their dedication of the position, and the Board shall establish, at the proposal of the Appointments and Remuneration
Committee, the number of Boards of Directors on which directors may serve".
Since the aforementioned Committee has not stipulated this number to date, the Company believes that it is partially compliant with the recommendation.
The Company, for the time being, has not set the maximum number of Boards to which each director may belong, since the dedication of the directors to the company has proven to
be adequate, without it being necessary, therefore, to define a number.
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26. The Board of Directors meets with the necessary frequency to perform its duties effectively and, at least, eight times a year, following
the programme of dates and matters established at the beginning of the business year, with each director allowed to individually
propose other items on the agenda not initially provided for.
Compliant [X]
Partially compliant [
]
Explain [
]
27. The absence of directors is limited to indispensable cases and quantified in the annual corporate governance report. And should such
absences occur, the directors appoint a proxy with instructions.
Compliant [X]
Partially compliant [
]
Explain [
]
28. When the directors or the secretary express concern about any proposal or, in the case of directors, about the progress of the
company and these concerns are not resolved by the Board of Directors, at the request of the person expressing them, these shall
be recorded in the minutes.
Compliant [X]
Partially compliant [
]
Explain [
]
Not applicable [
]
29. The Company establishes the appropriate channels so that directors can obtain the necessary advice for them to perform their
duties, including, if the circumstances so require, external advice charged to the company.
Compliant [X]
Partially compliant [
]
Explain [
]
30. Regardless of the knowledge required by directors in the exercise of their duties, the companies also offer the directors knowledge
refresher programmes when the circumstances so advise.
Compliant [X]
Explain [
]
Not applicable [
]
31. The agenda of meetings clearly indicates the points on which the Board of Directors must adopt a decision or resolution so that the
directors can study or collect, in advance, the information necessary for its adoption.
When, exceptionally, for reasons of urgency, the Chairman wishes to submit decisions or resolutions that do not appear on the
agenda for approval by the Board of Directors, the prior and express consent of the majority of the directors present shall be
required, duly reflected in the minutes.
Compliant [X]
Partially compliant [
]
Explain [
]
32. Directors are periodically informed of changes in the shareholding structure and of the opinion that significant shareholders, investors
and rating agencies have about the company and its Group.
Compliant [X]
Partially compliant [
]
Explain [
]
33. The chairman, as the person responsible for the effective functioning of the Board of Directors, in addition to exercising the duties
assigned to him by law and in the bylaws, prepares and submits a programme of dates and matters to be discussed to the Board of
Directors; organises and coordinates the periodic assessment of the board, as well as, where appropriate, the company's chief
executive; is responsible for the direction of the board and the effectiveness of its functioning; ensures that sufficient discussion
time is devoted to strategic issues, and agrees and reviews knowledge refresher programmes for each director, when the
circumstances so advise.
Compliant [X]
Partially compliant [
]
Explain [
]
34. When there is a coordinating director, the Bylaws or the Rules of the Board of Directors, in addition to the powers that correspond to
him by Law, assign the following powers thereto: preside over the Board of Directors in the absence of the Chairman and Deputy
Chairman, as applicable; echoes the concerns of non-executive directors; maintains contact with investors and shareholders to
obtain their points of view to form an opinion on their concerns, particularly in relation to the corporate governance of the company;
and coordinates the Chairman's succession plan.
Compliant [
]
Partially compliant [
]
Explain [
]
Not applicable [ X ]
35. The secretary of the Board of Directors ensures that the Board of Directors takes into account the recommendations on good
governance contained in the Code of Good Governance applicable to company in its actions and decisions.
Compliant [X]
Explain [
]
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36. The Board of Directors assesses, once a year, and adopts, where appropriate, an action plan that corrects any shortcomings
39. Members of the Audit Committee as a whole, and especially its Chairman, are appointed taking into account their knowledge and
detected regarding:
experience in accounting, auditing and risk management matters, both financial and non-financial.
The quality and efficiency of the functioning of the Board of Directors.
Compliant [X]
Partially compliant [
]
Explain [
]
40. Under the supervision of the Audit Committee, there is a unit that assumes the internal audit function ensuring the proper
functioning of the information and internal control systems, which functionally reports to the non-executive Chairman of the Board
or the Audit Committee.
Compliant [X]
Partially compliant [
]
Explain [
]
41. The head of the unit responsible for the internal audit function should submit the annual work plan to the audit committee for
approval by the committee or the board, report directly to it on its implementation, including any incidents and limitations on scope
arising in the course of its implementation, the results and follow-up of its recommendations, and submit an activities report to it at
the end of each business year.
Compliant [X]
Partially compliant [
]
Explain [
]
Not applicable [
]
a)
b)
c)
d)
e)
The functioning and composition of its committees.
Diversity in the composition and powers of the Board of Directors.
The performance of the Chairman of the Board of Directors and the Chief Executive of the company.
The performance and contribution of each director, paying particular attention to those responsible for the different Board
Committees.
To perform the assessment of the different committees, the report submitted to the Board of Directors will be used, and for the Board
assessment, the report submitted to the Appointments Committee.
Every three years, the Board of Directors will be assisted by an external consultant in performing the assessment, whose independence
shall be verified by the Appointments Committee.
The business relationships that the consultant or any company in its group may have with the company or any Group company shall be
broken down in the Annual Corporate Governance Report.
The process and the areas assessed shall be described in the Annual Corporate Governance Report.
Compliant [ ]
Partially compliant [ X ]
Explain [
]
The Board of Directors internally performs the annual assessment of the efficiency of its functioning, its committees, as well as that of the Chairman of the Board of Directors
(non-executive) and the CEO.
The Company believes that the conclusions drawn during the internal assessment make it possible to sufficiently correct any shortcomings detected or improvements in the
functions assigned to the Board.
The assessment with the help of an external consultant has been carried out twice in the past. The Board shall assess the suitability of requesting such external assistance each
business year.
37. When there is an executive committee, at least two non-executive directors should sit on it, at least one of whom should be
independent and its secretary should be the secretary of the Board of Directors.
Compliant [ ]
Partially compliant [ X ]
Explain [
]
Not applicable [
]
The secretary of the Executive Committee is the same as the secretary to the Board. However, in the composition of this committee, there are no independent directors, whereas
there are three such directors on the Board.
All decisions taken by the Executive Committee are reported to the Board.
On this Committee, independent directors may request as many clarifications or comments as they deem appropriate.
Given the continuous control that the Board exercises over the Executive Committee, it has not been considered necessary to include independent directors on this Committee.
38. The Board of Directors is always aware of the matters discussed and the decisions taken by the Executive Committee and that all the
members of the Board of Directors receive a copy of the minutes of the Executive Committee meetings.
Compliant [X] Partially compliant [
]
Explain [
]
Not applicable [
]
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42.
In addition to those provided by law, the Audit Committee assumes responsibility for the following functions:
The meeting referred to in section 2.d) of this recommendation is not held, since this responsibility is delegated in full to the Audit and Control Committee, and the external
auditor is responsible for presenting this information to the members of the Board.
1.
In relation to information and internal control systems:
a)
b)
c)
Supervise and assess the preparation process and the integrity of financial and non-financial information, as well as the
control and management systems for financial and non-financial risks relating to the company and, where applicable, the
group, including operational, technological, legal, social, environmental, political, reputational and corruption-related
risks, reviewing compliance with regulatory requirements, the adequate definition of the scope of consolidation and the
correct application of accounting criteria.
Ensure the independence of the Internal Audit function; propose the selection, appointment and removal of the head of
the Internal Audit service, as well as the budget of this service; approving or proposing approval to the Board of the
annual internal audit orientation and work plan, making sure that its activity is mainly focused on relevant risks
(including reputational risks); receive periodic information about its activities; and verify that Senior Management takes
into account the conclusions and recommendations in its reports.
Establish and supervise a mechanism that allows employees and other persons related to the company, such as
directors, shareholders, suppliers, contractors or subcontractors, to report potentially significant irregularities, including
financial, accounting or any other irregularities related to the company that they notice within the company or its
group. This mechanism must guarantee confidentiality and, in any case, provide for cases in which communications can
be made anonymously, respecting the rights of the complainant and the reported.
d) Generally ensure that the policies and systems in place for internal control are effectively implemented in
practice.
2.
In relation to the external auditor:
a)
In case of the resignation of the external auditor, examine the circumstances that may have led to this.
b)
c)
d)
e)
Ensure that the remuneration of the external auditor for his/her work does not compromise his/her quality or independence.
Ensure that the company communicates any change in auditor through the CNMV and accompanies this with a
statement about the possible existence of disagreements with the departing auditor and, if there were any
disagreements, the nature of them.
Ensure that the external auditor holds an annual meeting with the Board of Directors to inform them about the work
undertaken and the evolution of the accounting and risk situation at the company.
Ensure that the company and the external auditor respect the rules in force on the provision of services other than
auditing services, the limits on the concentration of the auditor's business and, in general, the other rules
applicable to the auditor's independence.
Compliant [ ]
Partially compliant [ X ]
Explain [
]
43. The Audit Committee may summon any employee or manager at the company, and even arrange for them to appear without
any other manager present.
Compliant [X]
Partially compliant [
]
Explain [
]
44. The Audit Committee is informed about the structural and corporate modifications that the company plans to perform for its
analysis and preliminary report to the Board of Directors on its economic conditions and its accounting impact and, especially, where
appropriate, on the proposed exchange ratio.
Compliant [
]
Partially compliant [
]
Explain [ X ]
Not applicable [
]
To date, all directors at the company, including independent directors, have voted in favour of the transactions referred to in this recommendation, meaning that the step previous
to those before the Audit and Control Committee is not considered necessary.
In any case, on the Board of Directors, members of the Audit and Control Committee may present their reflections and opinions, which will be taken into account by the Board at
the time of making a decision.
45. The risk control and management policy identifies or determines at least:
a)
b)
c)
d)
e)
The different types of risk, both financial and non-financial, (including operational, technological, legal, social, environmental,
political and reputational, including those related to corruption) that the company faces, including financial or economic,
contingent liabilities and other off-balance-sheet risks.
A tiered risk management and control model, including a specialised risk committee where sectoral rules require this or
where the company deems it appropriate.
The level of risk that the Company considers acceptable.
The measures planned to mitigate the impact of the risks identified, should they materialise.
The information and internal control systems that will be used to control and manage the aforementioned risks, including
contingent liabilities or off-balance sheet risks.
Compliant [X]
Partially compliant [
]
Explain [
]
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46. Under the direct supervision of the Audit Committee or, where appropriate, a specialised committee of the Board of Directors, there
is an internal risk control and management function performed by an internal unit or department at the company that has been
expressly attributed the following functions:
a)
b)
c)
Ensure the proper functioning of the control and risk management systems and, in particular, that all important risks
affecting the Company are properly identified, managed, and quantified.
Actively participate in the preparation of the risk strategy and in the important decisions about its management.
Ensure that control and risk management systems adequately mitigate risks within the framework of the policy defined
by the Board of Directors.
Compliant [X]
Partially compliant [
]
Explain [
]
47. The members of the Appointments and Remuneration Committee, or of the Appointments Committee and the Remuneration
Committee, if they are separate, should be appointed ensuring that they have the knowledge, skills and experience suitable for the
duties they are called upon to perform and the majority of the members should be independent directors.
Compliant [ ]
Partially compliant [ X ]
Explain [
]
The Appointments and Remuneration Committee is currently made up of two proprietary and two independent directors, one of whom is the Chairman.
FCC believes that the make up of the Appointments and Remuneration Committee, with two independent members out of a total of four,
sufficiently guarantees the proper functioning of this Committee".
one of whom is also the Chairman,
50. The Remuneration Committee should carry out its duties independently and, in addition to the duties assigned by law, should have
the following responsibilities:
a)
b)
c)
d)
e)
To propose to the Board of Directors the basic conditions of senior management contracts.
To verify compliance with the remuneration policy established by the company.
To regularly review the remuneration policy applied to directors and senior executives, including the share based
remuneration systems and their application, and ensure that their individual remuneration is in line with that paid to the other
directors and senior executives at the Company.
To ensure that any conflicts of interest do not undermine the independence of the external advice provided to the
committee.
To verify the information on directors' and senior executives' remuneration contained in the various corporate documents,
including the annual directors remuneration report.
Compliant [X]
Partially compliant [
]
Explain [
]
51. The remuneration committee should consult with the company's chairman and CEO, especially on matters relating to executive
directors and senior executives.
Compliant [X]
Partially compliant [
]
Explain [
]
48.
Large-cap companies should have a separate appointments committee and a separate remuneration committee.
Compliant [ ]
Explain [ X ]
Not applicable [
]
52. The rules governing the composition and operation of the supervision and control committees should be set out in the
regulations of the Board of Directors and be consistent with those applicable to the legally obligatory committees in
accordance with the above recommendations, including:
The two recommended committees are integrated into a single appointments and remuneration committee, as the Board of Directors believes that the combination of the two
facilitates the carrying out of the duties assigned to them.
49. The Appointments Committee should consult with the Chairman of the Board of Directors and the CEO of the Company, especially on
matters relating to executive directors.
And any director may request the consideration of potential candidates to fill vacancies of Director from the Appointments
Committee, if it finds them suitable in its opinion.
Compliant [X]
Partially compliant [
]
Explain [
]
a)
b)
c)
d)
e)
They should be composed exclusively of non-executive directors, with a majority of independent directors.
Their chairmen should be independent directors.
The Board of Directors should appoint the members of these committees, bearing in mind the knowledge, skills and
experience of the directors and the duties of each committee, and should discuss their proposals and reports; and to report,
at the first plenary session of the Board of Directors after its meetings, on its activity and should be accountable for the work
carried out.
The committees may seek external advice, when they consider it necessary for the carrying out of their duties.
Minutes should be taken of their meetings and made available to all directors.
Compliant [
]
Partially compliant [
]
Explain [
]
Not applicable [ X ]
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53.
Supervision of compliance with the company's environmental, social
and corporate governance policies and rules, as well as
internal codes of conduct, should be entrusted to one or more committees of the Board of Directors, which may be the audit
committee, the appointments committee, a committee specialising in sustainability or corporate social
responsibility or any
other specialised committee that the Board of Directors, in the exercise of its powers of self-organisation, has decided to set
up. Such a committee should be composed solely of non-executive directors, the majority of whom should be independent,
and should be specifically attributed the minimum functions indicated in the following recommendation.
Compliant [ ]
Partially compliant [ X ]
Explain [
]
Although in the operations of the Board of Directors these skills are dealt with in the agenda of its committees, some of the duties indicated in the Recommendation are not
formally attributed to one of its committees by the Regulations of the Board of Directors.
55.
Sustainability policies on environmental and social issues should at least identify and include:
a)
b)
c)
d)
e)
The principles, commitments, objectives and strategy with regard to shareholders, employees, customers, suppliers,
social issues, environment, diversity, accountability, respect for human rights and prevention of corruption and other
unlawful actions.
Methods or systems for monitoring compliance with policies, associated risks and their management.
Mechanisms for monitoring non-financial risk, including those related to ethical and
business conduct issues.
Channels of communication, participation and dialogue with stakeholders.
Responsible communication practices that avoid the manipulation of information and protect integrity and honour.
54. The minimum duties referred to in the above recommendation are as follows:
Compliant [X]
Partially compliant [
]
Explain [
]
a)
b)
c)
d)
e)
Overseeing compliance with the company's corporate governance rules and internal codes of conduct, and ensuring that the
corporate culture is aligned with its purpose and values.
Overseeing the implementation of the general policy on economic-financial, non-financial and corporate reporting as well as
communication with shareholders and investors, proxy advisors and other stakeholders. The way in which the institution
communicates and interacts with small and medium-sized shareholders will also be monitored.
Regular evaluation and review of the Company's corporate governance system and environmental and social
for them to fulfil their aim of promoting the corporate interest
of other stakeholders.
and taking into account, as appropriate, the legitimate interests
policy, in order
Monitoring that the company's environmental and social practices
are in line with the strategy and policy.
The supervision and evaluation of the processes of relationship with the different stakeholders.
Compliant [X]
Partially compliant [
]
Explain [
]
56. Directors' remuneration should be sufficient to attract and retain directors with the desired profile and to reward the dedication,
qualifications and responsibility required for the position, but should not be so high as to compromise the independent judgement of
non-executive directors.
Compliant [X]
Explain [
]
57. Variable remuneration linked to the company's performance and personal performance, as well as compensation in the form of
shares, options or rights to shares or instruments linked to the value of the share and long-term savings schemes such as
pension plans, retirement systems or other social welfare systems, should be exclusively limited to executive directors.
The delivery of shares may be considered as remuneration to non-executive directors when it is subject to their remaining on
the board. The foregoing shall not apply to the shares that the director needs to sell, if any, to meet the costs related to their
acquisition.
Compliant [X]
Partially compliant [
]
Explain [
]
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58.
In the case of variable remuneration, remuneration policies should include the necessary technical limits and precautions to ensure
that said remuneration is related to the professional performance of its beneficiaries and is not simply a result of general market or
sector trends or other similar circumstances.
And, in particular, that the variable components of remuneration:
a)
b)
c)
Should be linked to performance criteria that are predetermined and measurable, and these criteria should take into account
the risk assumed in order to obtain a result.
Should promote the sustainability of the company and include non-financial criteria that are appropriate for the creation of
long-term value, such as compliance with the company's internal rules and procedures and its policies for risk control and
management.
Should be designed on the basis of a balance between the achievement of short-, medium- and long-term objectives,
allowing performance to be rewarded for continued achievement over a period of time sufficient to assess their
contribution to sustainable value creation, so that the elements used to measure that performance do not revolve
solely around one-off, occasional or extraordinary events.
Compliant [X] Partially compliant [
]
Explain [
]
Not applicable [
]
59. The payment of variable components of remuneration is subject to sufficient verification that the performance or other conditions
set out above have been effectively met. Entities shall include in the annual directors' remuneration report the criteria as to the
time required and methods for such verification depending on the nature and characteristics of each variable component.
In addition, institutions should consider the establishment of a malus clause based on the deferral for a sufficient period of time of
the payment of a part of the variable components that entails their total or partial loss should an event occur prior to the time of
payment that makes it advisable to do so.
Compliant [
]
Partially compliant [
]
Explain [ X ] Not applicable [
]
The CEO's variable is related to EBITDA, operating cash flow and individual objectives. This variable is approved once the Board of Directors has drawn up the accounts and
approved the financial objectives.
60. Remuneration related to the Company's profit and loss should take into account any qualifications in the external auditor's
report that reduce said profit and loss.
Compliant [X] Partially compliant [
]
Explain [
]
Not applicable [
]
61. A significant percentage of the variable remuneration of executive directors should be linked to the delivery of shares or
financial instruments tied to their value.
Compliant [
]
Partially compliant [
]
Explain [ X ] Not applicable [
]
The FCC Group's remuneration policy does not include the delivery of shares or financial instruments linked to their value to its executive directors, as this is considered more
appropriate.
62. Once the shares, options or financial instruments corresponding to the remuneration systems have been attributed, executive
directors may not transfer ownership or exercise them until at least three years have elapsed.
An exception is made where the director has, at the time of the transfer or exercise, a net economic exposure to share price
changes of a market value equivalent to an amount of at least twice his or her annual fixed remuneration through the ownership of
shares, options or other financial instruments.
The above will not apply to shares that the director needs to dispose of in order to meet the costs related to their acquisition or,
after a favourable assessment from the appointments and remuneration committee, to address extraordinary situations that so
require it.
Compliant [
]
Partially compliant [
]
Explain [
]
Not applicable [ X ]
63. Contractual agreements should include a clause allowing the company to claim reimbursement of the variable components of
remuneration when the payment has not been in accordance with the performance conditions or when they have been paid on
the basis of data which is subsequently proven to be inaccurate.
Compliant [
]
Partially compliant [
]
Explain [ X ] Not applicable [
]
Variable remuneration is approved by the Board of Directors once the parameters to which it is tied have been verified. It has not been considered necessary, both because of the
volume of the remuneration and the time at which it is paid, to establish additional precautions.
64.
Severance payments of payments for contract termination should not exceed a set amount equivalent to two years' total annual
remuneration and should not be paid until the company has been able to verify that the director has met the criteria or conditions
established for their receipt.
For the purposes of this recommendation, termination or contractual termination payments include any payments that accrue or
are payable as a result of or in connection with the termination of the director's contractual relationship with the company,
including amounts not previously vested in long-term savings schemes and amounts paid under post-contractual non-compete
agreements.
Compliant [X] Partially compliant [
]
Explain [
]
Not applicable [
]
Indicate whether any directors voted against or abstained from voting on the approval of this Report.
[
]
[ √ ]
Yes
No
I hereby declare that the data included in this statistical annex match and are consistent with the descriptions and data included in the
annual corporate governance report published by the Company.
43 / 44
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