Annual Report
2021
_ 2
Index
1.
2.
3.
4.
5.
Letter from the Chairwoman _ 3
Letter from the CEO _ 5
Corporate governance and ethics _ 9
Strategy and value creation _ 22
FCC in 2021 _ 80
Business lines _ 88
A1. Appendix I. Financial Statements _ 254
A2. Appendix II. FCC Group Sustainability Report _ 543
A3. Appendix III. Annual Corporate Governance Report _ 703
FCC _ Annual Report 2021 | Letter from the Chairwoman | Page 1 of 2
_ 3
Letter from the Chairwoman
Dear shareholders,
2021 was a year of intense work, as shown by the main data
and milestones that mark this year, the details of which are pro-
vided in the pages of this annual report.
The data and milestones show that we have continued to in-
crease our operational capacity and flexibility, features which
– together with our team spirit – set us apart in the competitive
market that we move in. The facts allow us to proudly state that
the FCC Group remains a worldwide benchmark in environmen-
tal services, in end-to-end water management, in developing
infrastructure, in producing associate materials and in real es-
tate management. Sustainability stands out as the competitive
element that clearly distinguishes all these business activities.
Our diverse business model, backed by committed shareholder
support, allowed us last year to continue along the solid growth
path that we have been following for several years, responding
to our client’s demands and to our shareholders expectations
with the excellence for which we are renowned.
Together we are
building a better future
Esther Alcocer Koplowitz
Chairwoman of the FCC Group
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Letter from the Chairwoman | Page 2 of 2
_ 4
Our figures support
a job well done
FCC is today even
stronger than ever
Our figures support a job well done. We closed 2021 with 580.1
million euros in profit, doubling the figure for the previous year.
The Group’s consolidated turnover rose by 8.1% from 2020, to
6.6 billion euros. Our gross profit from operations (EBITDA)
rose by 7.6% from the previous year, to 1.1 billion euros. And
net operating profit (EBIT) stood at 802.2 million euros, 40.1%
more than the previous year. Our order book closed last year at
30.2 billion euros and FCC’s net equity recorded strong growth
at 4.4 billion euros, 52.7% higher than in 2020.
We should also note the strengthening of our international pres-
ence in more than 25 countries, with a turnover that under-
scores this growth: revenue abroad accounted for 2.7 billion
euros, or 40.8% of the FCC Group’s total revenue.
These results are what has permitted us to meet the objective
just announced at our Annual General Meeting, for the fourth
consecutive year: a scrip dividend of 0.40 euros per share.
The key to this success lies in the work of our teams, who are
the real foundation that will allow us to continue growing and
responding to the global challenges ahead, and the strong sup-
port of the FCC Group’s shareholders, with the engineer Carlos
Slim and the Carso Group as the leading examples. Various
operational, structural and financial measures taken by the new
FCC shareholding structure since 2015 have given the Group
great strength and undeniable resilience.
We knew that 2021 was going to be a demanding year, and it
was. It was a year in which we proved the Group’s great ability
to convert every challenge into an opportunity and to continue
serving society. Service based on hard work, a passion for do-
ing things well and excellent teamwork. These are the essential
values in our Group’s know-how, to which we have been re-
sponding positively for over 120 years.
Because of all this, FCC is now even stronger than ever. We are
a company in an unbeatable position to tackle the challenges
of the new times, with a vision of the future that will overcome
uncertainty and despair. A company that definitely deserves to
continue to receive your support.
Dear shareholders, as I am confident of having an extraordinary
human team, the ongoing trust of our clients and the support of
all of you, I wish to thank you for your commitment to wanting
to continue building a better future for all.
Esther Alcocer Koplowitz
Chairwoman of the FCC Group
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Letter from the CEO | Page 1 of 4
_ 5
Letter from the CEO
Dear shareholders,
The Annual Report 2021 is published at a time of recovery char-
acterised still by latent uncertainty, but also by strength, hope
and, above all, an admirable focus of collective efforts towards
common goals. We are leaving behind a 2020 that was espe-
cially difficult and forced us to be agile in reformulating the way
we act. In fact, almost two years after COVID-19 emerged on
the scene, and despite great progress made, our circumstanc-
es are still particularly difficult, affecting different areas of our
lives.
But progress towards this new normality is more and more
tangible. We must therefore persevere, learning from the wise
lessons of the pandemic with the perspective time affords us.
Resilience, a proactive attitude, mutual trust and solidarity are
intangible assets we must maintain during this new phase. Now
more than ever, we must join forces and move forward towards
a fairer and more inclusive society, as a key factor in achieving
sustainable development. The time is now, we must act.
Pablo Colio Abril
CEO of the FCC Group
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Letter from the CEO | Page 2 of 4
_ 6
We have doubled
our net profit
and increased our
EBIT by 7.6%
Faced with this scenario, companies are responsible for setting
an example with our response. How we react to this situation
will surely determine the course of the next decade. So we must
favour cooperation, creating lasting synergies and partnerships
to help us resist an unfavourable environment.
FCC Group is aware of the opportunities and challenges posed
by this new approach. We are certain of the added value we
can contribute and we want to make it a reality. Our tireless
work in providing basic services during an especially com-
plex health and socio-economic context is our endorsement.
We were capable of adapting to changes, learning from them,
growing when faced with difficulties and, ultimately, guarantee-
ing our business continuity. In fact, during 2021 each area of
the FCC Group has shown its best version, facing all difficulties.
Adversity has strengthened us.
This capacity for adaptation is due to the strength of our busi-
ness model, exponential and diversified. Our robust corporate
culture, commitment to human capital, irreproachable behav-
iour and the excellent management of each of our services have
enabled us to obtain truly positive results, which I will present
below. Once again this year, with activities such as waste col-
lection and treatment, street cleaning, end-to-end water cycle
management, infrastructure development and management,
production of associated materials and real estate manage-
ment, we have worked to meet the needs of our clients and
build smarter and more sustainable cities.
The Group has continued to reinforce its global leadership, con-
solidating its presents in more than 25 countries. At year-end
2021 we have achieved total revenues of almost 6.66 billion
euros, 8.1% up on the previous year. One aspect worthy of note
is the positive evolution of many business activities, equalling
or exceeding pre-pandemic income levels. I particularly want
to highlight the Environment area which has seen a 12.4% in-
crease.
During 2021, the Group improved gross operating profit, up by
7.6% to close to 1.13 billion euros. Similarly, our attributable
net profit reached 508.1 million euros, more than double the
previous year. This rise is due mainly to the good evolution of
operating profit in the different Group areas and the effects of
the full consolidation of Realia.
The Group’s gross operating profit (EBITDA) rose by 7.6% to al-
most 1.13 billion euros in 2021. The reason behind this behav-
iour is the growth in operating margins in most business areas,
primarily Construction, and by Realia and Jezzine entering full
consolidating in the Real Estate Area since 1 November 2021.
On the other hand, CO2 sales in Cement in 2020 and the sale of
Cedinsa had a significant adverse effect. Adjusted by non-op-
erating factors, EBITDA recorded an increase of 17.9% in 2021.
Net operating
profit stood at
802.2 million euros,
40.1% more than the
previous year
Net operating profit (EBIT) stood at 802.2 million euros, 40.1%
more than the previous year. This rise reflects the positive evo-
lution of EBITDA and the accounting impact of the full consol-
idation of Realia, as well as valuation adjustments to property,
plant and equipment assets and goodwill in Cement.
At the end of the year, net interest-bearing debt stood at close
to 3.23 billion euros, 427.9 million more than in 2020. This in-
crease is caused by the full consolidation of Realia and Jezzine
debt in the Real Estate Area, with an added sum of 889.7 million
euros at year end. Finally, net equity registered a notable rise
with 4.44 billion euros, 52.7% up on year end 2020.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Letter from the CEO | Page 3 of 4
_ 7
We have created a business
model based on transparency
and good governance,
proving that it is possible
to combine excellence
and due diligence
These results are partly the result of advances in various as-
pects of our Group; our risk management system analyses,
assesses, identifies and prioritised the various risks inherent in
our activity. We have also created a business model based on
transparency and good governance, proving that it is possible
to combine excellence and due diligence.
Moreover, we have listened to the needs and expectations of
our stakeholders, opening up to their participation. Finally, we
have fostered alliances to achieve a connected, supportive
community.
One of the keys to our success is the strong backing of our FCC
Group shareholders, with the Carso Group as a benchmark.
The various measures implemented at operating, structural and
financial levels promoted by the new FCC shareholder structure
since 2015 have forged undoubted resilience for the Group.
This is highlighted by the Group’s profitability and profit in 2021
compared to the situation prior to the change in shareholder
structure. Thanks to these actions, FCC has a solid structure,
so our Group is prepared to manage the challenges and difficul-
ties that the future may bring with guarantees of success.
The most relevant milestones in 2021 that I would like to high-
light are:
The Real Estate Area has grown, reinforcing its competitive
position with an agreement to acquire 13.12% of the capital
stock of Realia, for 83.9 million euros, and 50.1% stake. The
area has also incorporated 100% of the capital of Jezzine, a
rental holding company fully owned by a CEC subsidiary. This
operation means we maintain control of FCC Inmobiliaria with a
stake 80.03% in the capital of the reinforced Group Real Estate
Area’s flagship subsidiary. Realia also acquired 37.11% of its
subsidiary Hermanos Revilla, S.A. For a significant sum of 189
million euros, taking its stake up to 87.76% of the capital stock
and gaining full control over the company.
I also want to note the reinforced geographic presence of the
Environment Area in the US and Central Europe, as well as
a 17% rise in its portfolio. This is due, among other factors, to
FCC Environmental Services spending 34 million USD to pur-
chase Premier Waste Services in Dallas (Texas) and Wellington
City Council (Florida) awarding its urban solid waste collection
tender to the same business for a period of 10 years and with a
portfolio in excess of 110 million euros. Relevant developments
in Spain include the incorporation of major contracts, such as
waste collection and street cleaning in Barcelona or several
awards in Madrid for a sum of close to 1.59 billion euros/year.
Meanwhile, the Water Area has significantly increased its port-
folio to over 15 billion euros, with a 2.2% increase at year end.
Note that, in 2021, Aqualia agreed to purchase 80% of the wa-
ter activity of Georgia Global Utilities (GGU) for 180 million USD.
FCC has a solid structure
so our Group is prepared
to manage the challenges
and difficulties that the future
may bring with guarantees
of success
The same company was also awarded a six-year contract to
supply water to 16 towns around Mantes-la-Ville (France) for an
approximate sum of 30 million euros.
The Group’s Construction Area saw its revenues increase by
3% compared to 2020 with a notable rise in Europe (mainly in
the United Kingdom and the Netherlands), and has strength-
ened its position with a strong pipeline of projects in the United
States, Canada and Latin America.
For the Cement Area, the main activity accounted for approx-
imately 91% of total revenues, with 39,4% coming from inter-
national markets, mainly Tunisia and the United Kingdom. A
notable 13.4% rise in revenues for the year is mainly due to
increased sales in Spain and rising exports.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Letter from the CEO | Page 4 of 4
_ 8
There will be no future if it’s not
sustainable
We are well aware that sustainability is a long-term force for
change. That is why we have strived to be part of the solution
by incorporating sustainability into our business model, pro-
gressively reinforcing our sustainable DNA.
This vision is reflected in our commitment to complying with
and promoting the Agenda 2030. Since 2016, year in which the
FCC Group Board of Directors approved our Corporate Social
Responsibility Policy, alignment with the Sustainable Develop-
ment Goals has been an integral part of Group operations.
We endeavour to maximise our positive impact, especially in
the communities where we operation, and we are committed
to protecting the environment, striving each day to support the
fight against climate change.
Exploring new sustainable paths in the search for innovative
solutions to the challenges we face is another of our concerns.
Our goal is to continue fostering a business culture that focuses
on continuous technology updating, research and generating
ideas. We view sustainable development as a cross-cutting
principle capable of transforming society while also creating re-
sponsible solutions that last and improve the lives of people. We
believe in and are strongly committed to this type of innovation.
With each of the programmes included in the Group’s CSR
Master Plan, we play our modest part in the fight against en-
vironmental, social and governance challenges outlined in in-
creasingly changing global settings. As a result of this work,
we are proud to once again present our Sustainability Report
as part of our commitment to accountability. The document
has been drafted according to the international framework of
the Global Reporting Initiative (GRI), verified externally and ap-
proved by the Board of Directors.
The horizon of sustainability continues to grow and we want to
continue leading change. With the conclusion of the 4th CSR
Master Plan 2018-2020, in 2021 we have worked to develop
our FCC ESG Framework, which will be the starting point for the
new ‘ESG Plan 2025’ under the motto ‘Together we build a bet-
ter future’. This Plan will consider the lessons learned, enable
us to anticipate future challenges, and will focus on long-term
global goals.
The challenge is considerable and we are ready to face it, but
we need to face it together. Investments in technologies for de-
carbonisation, promoting water infrastructures that mitigating
increasingly more frequent water scarcity, or the need to circu-
larise the world we live in require a joint response.
Last, but certainly not least, I would like to mention the invalu-
able effort and commitment of everyone who forms part of this
great Group. All of you, our main capital, who have adapted
to a pandemic with hope, showing your best side; you are the
driving force behind the FCC Group and I you have all my rec-
ognition and admiration.
We wanted to incorporate
sustainability in our business
model. This vision is reflected
in our commitment to complying
with and promoting the
Agenda 2030
Our capacity to adapt in the face of adversity, the unstoppable
road toward a more sustainable future, and results that confirm
the good health of our Group, are the result of a strong corpo-
rate culture that aspires to add value to society.
But we are well aware that progress does not end here. We are
committed to continue adding, working and growing. The future
is in our hands and we have the ability to change our reality. We
accept the challenge.
Pablo Colio Abril
CEO of the FCC Group
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021
_ 9
2
Corporate
governance
and ethics
Good Governance _ 10
The FCC Group’s due diligence _ 14
The FCC Group’s Risk Management Model _ 18
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Corporate governance and ethics | Good Governance | Page 1 of 4
_ 10
Good Governance
In its commitment to Good Governance, the FCC Group aligns
its Corporate Governance guidelines with the recommenda-
tions 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 recommen-
dations that include Sustainability amongst the competen-
cies of the Board of Directors. Aware of the roll that corporate
governance plays in the organisation’s performance, the FCC
Group complies, in whole or in part, with 84.48% of the recom-
mendations that applied to it in 2021.
To provide a greater definition of the company’s corporate gov-
ernance practices – and in line with its commitment to trans-
parency – the FCC Group prepares its “Corporate Governance
Report” and “Remuneration Report” each year following the
guidelines of CNMV report. Both reports are available on the
Group’s corporate website.
Through its Articles of Association and the Board of Direc-
tors Regulations, the company has a formal definition of the
governing body’s responsibilities. In 2021, the Board of Direc-
tors agreed to amend the Board of Directors Regulations, hav-
ing agreed at the General Meeting to amend the Articles of As-
sociation, the Regulations of the General Shareholders’ Meeting
and the approval of the directors’ Remunerations policy.
The FCC Group fully or partially complies with 84.48% of the
CNMV recommendations that apply to it
A benchmark governance
system in the sector,
as an essential means to
strengthen the FCC Group's
values and sustainability.
Common and sustainable project
Strategic vision
Balanced and transparent governance
Culture of integrity
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Corporate governance and ethics | Good Governance | Page 2 of 4
_ 11
The FCC Group’s Governing Bodies
In line with the company’s Articles of Association, the FCC
Group’s Corporate Governance structure consists of five es-
sential bodies: the General Shareholders’ Meeting; the Board
of Directors; the Executive Committee; the Audit and Control
Committee; and the Appointments and Remunerations Com-
mittee.
The General Shareholders’ Meeting is the Company’s high-
est decision-making body, establishing its competencies in the
Regulations of the FCC General Shareholders’ Meeting. The
Board of Directors is the body that works to duly manage,
administer and represent the FCC Group, with the exception
of certain powers reserved to the Shareholders’ Meeting. For
more effective management and supervision, three specific
committees have also been established: the Executive Com-
mittee, the Audit and Control Committee, and the Appoint-
ments and Remunerations Committee.
Board of Directors
Executive Committee
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.
General Shareholders' Meeting
It is governed by the provisions of Law, the
Company's Articles of Association,
and the Regulations of the General
Shareholders' Meeting.
It guarantees equality amongst all
shareholders in terms of information,
participation and the right to vote in
the General Meeting.
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.
Audit and Control Committee
Supports the Board, reviewing the preparation of economic-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 Associa-
tion or the Board of Directors Regulations.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Corporate governance and ethics | Good Governance | Page 3 of 4
_ 12
Composition and operation
of the Board of Directors and its Committees
There are 14 members of the Board of Directors, elected by the
General Shareholders’ Meeting, based on the principle of rep-
resentativeness for the structure and balance of its governance.
In compliance with the provisions of articles 34.1 and 31.2 of
the Board of Directors Regulations and the Articles of Associ-
ation the Board of Directors met a total of eleven times in
2021, with an average attendance of 90.26%.
Additionally, each of the Board’s committees has held the
corresponding meetings to ensure the Group’s proper man-
agement. The Executive Committee and the Audit and Control
Committee each held ten meetings, and the Appointments and
Remunerations Committee met six times.
During 2021, the Board
of Directors met a total of
11 times, with an average
attendance of 90.26%
Esther
Koplowitz Romero
de Juseu(2)
(Deputy Chairwoman)
Pablo
Colio Abril
(CEO)
Alejandro
Aboumrad González
Carmen
Alcocer Koplowitz(3)
Alicia
Alcocer Koplowitz
Manuel
Gil Madrigal
Antonio
Gómez García(*)
P
P
Board of Directors
P
Álvaro
Vázquez de Lapuerta
Alfonso
Salem Slim
Juan
Rodríguez Torres
Esther Alcocer
Koplowitz(1)
(Chairwoman)
Carlos
Slim Helú(4)
Henri
Proglio
Gerardo
Kuri Kaufmann
Nature of position
Executive
Proprietary
Independent
Type of Committee
Audit and Control Committee
Appointments and Remunerations Committee
Executive Committee
P
Chairperson
On behalf of
(1) Dominum Desga, S.A.
(2) Samede Inversiones 2010, S.L.U.
(3) Dominum Dirección y Gestión, S.A.U.
(4) Inmobiliaria AEG, S.A. de CV.
(*) The director resigned at his own request in March 2022.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Corporate governance and ethics | Good Governance | Page 4 of 4
_ 13
Plurality on the
FCC Group’s Board
of Directors
The company is committed to a plural composition of its Board
of Directors, strengthening its business model, broadening its
strategic vision and understanding of the markets in which it op-
erates. Diversity and equality are considered essential principles
in the FCC Group, which make it possible to create an attractive
business culture of growth and social progress.
At the end of 2021, 28.57% of the FCC Group’s directors
were women. In addition to this, the Board of Directors reflects
its plurality and international nature through three nationalities:
Mexican, Spanish and French.
WOMENS
28.57%
MENS
71.43%
Remunerations policy
Each year, the FCC Group prepares its “Annual Report on the
remuneration of directors of listed companies”, a document
that individually breaks down the amounts received by the di-
rectors during their tenure that financial year. This document
can be viewed on the company’s corporate website.
In 2021, FCC’s General Shareholders’ Meeting approved the
Directors’ Remunerations Policy – valid for three years – that,
on one hand, gives continuity to the previous one on the princi-
ples, structure and content of the directors’ remuneration pack-
age and, on the other, introduces new features from the Capital
Companies Act (due to the reform made by Law 5/2021 of 12
April amending the consolidated text).
The General Shareholders’ Meeting is tasked with determining
the remuneration, and considers the following principles and
criteria:
Principles and criteria in
determining remuneration
Guaranteeing the long-term performance and
sustainability of the FCC Group
Ensuring the principle of transparency
Encouraging motivation
Retaining talent as a commitment to the future
Establishing competitive amounts, according to that
established by companies of a similar size and activity
Rewarding dedication, qualifications
and responsibility that the position demands
Taking the necessary precautions to avoid results that
do not convey the creation of value and that could
potentially put FCC at risk
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Corporate governance and ethics | The FCC Group’s due diligence | Page 1 of 4
_ 14
The FCC Group’s due diligence
Compliance Model
Since its outset, the FCC Group has been characterised by the
development of lasting relationships of trust and mutual ben-
efit, governed by the principle of transparency and exempla-
ry behaviour. Reflecting this commitment, the company has a
Compliance Model, which intends to prevent and detect risks
of non-compliance with a particular focus on behaviours that
could lead to criminal offences.
Within the Compliance Model, the Code of Ethics and Con-
duct is considered the central axis of the culture, values and
principles that govern the behaviour of the FCC Group’s em-
ployees. This Code lays the foundations for honest conduct,
unifying and integrating a common commitment to respect the
due diligence in the practices carried out directly by FCC or
through its subsidiaries, and throughout its entire supply chain.
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.
• Crime Prevention Manual.
• Anti-corruption Policy.
• Policy on relationships with partners
in Compliance issues.
• FCC Group participation policy in bidding
processes for goods or services.
• Gift Policy.
• Agent Policy.
• Human Rights Policy.
• Whistle-blowing Channel Procedures.
• Compliance Committee Regulations.
• Investigation and Response Procedure.
• Harassment Prevention and Eradication
Protocol.
REGULATORY
BLOCK
THAT MAKES UP
THE FCC GROUP’S
COMPLIANCE
MODEL
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Corporate governance and ethics | The FCC Group’s due diligence | Page 2 of 4
_ 15
In addition to having robust regulations, the FCC Group has
established a Compliance Committee – the Group’s Crime
Prevention body with autonomous powers of initiative and con-
trol – whose functions include being responsible for promoting
an ethical culture throughout the organisation; ensuring regula-
tory compliance, internally and externally; and guaranteeing the
oversight and control of the Model.
To guarantee the rigour, efficiency and commitment to the per-
formance of the Compliance Model, managers are assigned to
each of the controls designed to prevent risks. Their objective is
to carry out these controls throughout the year, and to self-as-
sess and certify their operation every six months.
In 2021, the Group’s Compliance Committee met nineteen
times (twelve ordinary and seven extraordinary meetings). The
most significant due diligence actions on the Group’s Compli-
ance Model were:
COMPLIANCE
COMMITTEE
COMPRISED OF:
Chairperson
Member
Member
Invitees
Corporate
Compliance Officer
General Manager
of Legal Counsel
Human Resources
Director
Business
Compliance Officers
When their participation is required:
General Manager of Internal Audit
Member with voice and vote
Directly reporting to:
Audit and Control Committee
(Board of Directors)
MEETINGS
COMPLIANCE COMMITTEE
19
meetings
12
7
Ordinary
meetings
Extraordinary
meetings
MOST SIGNIFICANT ACTIONS
• Closing the annual review of the criminal risks
assessment.
• Testing the design and effectiveness of the Crime
Prevention Model’s controls.
• Completing the implementation of the Compliance Model
in international subsidiaries.
• Two half-yearly self-assessments and certification
of the criminal risks controls (more than 3,000 self-
assessed controls per certification).
• Approving the 2021-2023 Compliance Training Plan.
• Training through FCC Campus (13 courses) on the
Group’s Code of Ethics and Conduct, the anti-corruption
policy and Criminal Prevention, in Spain and international
subsidiaries.
• Assessing the risk of suppliers in terms of Compliance.
A total of 870 suppliers have been approved (34 requiring
actions by Compliance).
• Conducting 220 due diligence evaluations on third
parties (partners, agents and suppliers), from the
Group’s businesses.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Corporate governance and ethics | The FCC Group’s due diligence | Page 3 of 4
_ 16
Ethics Channel
Respect for Human Rights
in the FCC Group
The FCC Group’s staff have the right and the duty to report on
possible breaches of the Code of Ethics and Conduct, through
the Ethics Channel, which is accessible in three ways: post box,
email, and a form on the corporate intranet.
The Ethics Channel is managed by the FCC Group’s Compli-
ance Committee, as approved by the Board of Directors, in the
Ethics Channel procedure of the Group’s Compliance Model.
A total of 192 notifications (63 non-relevant) were received
thought the Group’s Ethics Channel in 2021. Of the 129 rel-
evant notifications, 68% were of a labour nature.
Since 2019, the FCC Group has been governed by the Hu-
man Rights Policy – approved by its Board of Directors – and
aligned with the Guiding Principles for Companies and Human
Rights. Pursuant to its policy, FCC undertakes to guarantee
freedom of association and collective bargaining as a basis for
cooperation, dialogue and the creation of positive synergies be-
tween the company and its workforce. The company also cre-
ates relationships based on mutual trust, respect and collabora-
tion with the local communities in which it operates, generating
employment, well-being and wealth within them.
Likewise, the FCC Group rejects child labour and forced labour,
favours decent and paid employment in a healthy environment
and is committed to diversity, rejecting any type of discrimina-
tion and promoting more inclusive environments.
To reinforce its commitment and capacity to act, the FCC Group
adheres to different international Human Rights instruments:
United Nations Global Compact; Universal Declaration of Hu-
man Rights Framework; Declaration on the Rights of the Child;
various ILO conventions; and other agreements of the Interna-
tional Federation of Building and Wood Workers (BWINT).
The FCC Group adheres
to different international
Human Rights instruments
Within Strategic Risks, the FCC Group identifies the “inade-
quate management of aspects related to Human Rights”, to
guarantee a high level of control over it. Aspects such as a ma-
jority geographic location in developed countries, the globali-
sation of the Group’s Human Rights Policy, human resources
policies, purchasing policies and the Compliance Model – with
specific controls in this area – significantly reduce the probability
of impacting against these essential rights.
The Group currently focuses its attention on the supply chain
and has approved a new supplier management procedure,
which defines the approval processes and responsible declara-
tions that include mandatory aspects related to the protection
of Human Rights prior to contracting products and services.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Corporate governance and ethics | The FCC Group’s due diligence | Page 4 of 4
_ 17
Against corruption and laundering
The FCC Group
categorically rejects fraud,
corruption and, naturally, all
forms of bribery
As acting with integrity and honesty benefits both stakehold-
ers and the company itself, the FCC Group categorically rejects
fraud, corruption and, naturally, all forms of bribery.
FCC’s Anti-Corruption Policy is particularly significant in this
matter as it establishes the guiding principles on its activity and
is complemented and reinforced by additional procedures,
such as the Agents, Gifts, and Bid Policies. Other measures
also implemented are specific staff training actions related to
preventing corruption that were completed by 319 workers in
2021, with nearly a total of 3,400 people trained since it was
launched.
In relation to the assessment of exposure to corruption-related
crimes, the Group periodically analyses all its operations and
has a risks and controls matrix that functions nationally and in-
ternationally.
In line with its Code of Ethics and Conduct, FCC also shows
zero tolerance to money laundering and works to deal with
practices of this type. The company continuously assesses
the objectives of good governance, risk control and regulatory
compliance in terms of money laundering. Through risk anal-
ysis, various risk events have been identified, – particularly in
those companies that are reporting parties pursuant to the pro-
visions of Law 10/2010 of 28 April on the Prevention of Money
Laundering – and specific action procedures have been estab-
lished to control these risk events.
Accountability
and tax transparency
The FCC Group complies with the tax regulations in all jurisdic-
tions where it is present, contributing to the development of so-
cial welfare, the generation of value and economic development
wherever it operates.
The FCC Group’s tax strategy is currently defined in its Tax
Code of Conduct and its Tax Control Framework Standard;
both documents were approved by FCC’s Board of Directors.
As established in the Tax Code of Conduct, all staff within the
FCC Group’s Tax department are obliged to work in a transpar-
ent and ethical manner with the tax authorities of the country
where they work.
On this issue, the FCC Group adheres to the Tax Agency’s
Code of Good Tax Practices based on the principles of trans-
parency and mutual trust, and which aspires to reduce the legal
uncertainty of companies and existing litigation in tax matters.
Resulting from the commitment assumed by the Group in this
framework, the Group submits a Tax Transparency Report to
the Tax Agency each year.
In addition, the FCC Group’s Audit and Control Committee re-
views litigation and tax risks every six months, which are identi-
fied and controlled on a recurring basis using internal manage-
ment tools.
The Group’s Sustainability Report, attached to this document,
details the profits after taxes, taxes on profits and public subsi-
dies received by country in 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Corporate governance and ethics | The FCC Group’s Risk Management Model | Page 1 of 4
_ 18
The FCC Group’s Risk Management Model
As a benchmark international group in providing citizen servic-
es, FCC is subject to a wide range of environmental, socio-eco-
nomic 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 geopolitical develop-
ments at local and global levels.
The FCC Group must manage the risks and opportunities that
arise from a series of global and interconnected trends which,
despite their ability to affect its business model, also open up
possibilities for development and contribution of value by devel-
oping competitive, technologically advanced solutions that are
aligned with the Sustainable Development Goals (SDGs) and
the 2030 Agenda, and channelled through the specialisation of
its synergistic business areas connected to the design, execu-
tion and management of infrastructures related to the environ-
ment, water and mobility.
To this end, the FCC Group has a Risk Management Model and
a Compliance Model that establish comprehensive frameworks
to identify, assess and manage risks in their respective areas of
application.
Analysis of the environmental, economic, social and institutional context, and 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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Corporate governance and ethics | The FCC Group’s Risk Management Model | Page 2 of 4
_ 19
Organisational
structure for risk
management
The risk management process requires the involvement of the
entire organisation, establishing different coordinated levels to
maximise its efficiency, enhance its effectiveness and consoli-
date the control environment.
In this sense, the Management Model is based on establishing
three risk management and internal control levels, the first two
of which are located in the business units and the third in the
corporate areas.
Senior Management is ultimately responsible for implementing
the Risk Management Model.
The Audit and Control Committee is responsible for supervising
and analysing the effectiveness of internal control and the Risk
Management Model.
Finally, the Board of Directors, is responsible for approving the
Risk Management Model that allows those risks that are con-
sidered the most important by the Company to be identified
and to implement and adequately monitor the internal control
and information systems, to ensure both the Group’s future vi-
ability and competitiveness, adopting the most relevant deci-
sions so that it thrives.
Board of Directors
Audit and Control Committee
Senior Management
First level
of Risk Management
Second level
of Risk Management
Third level
of Risk Management
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 Management Model
at this second 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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Corporate governance and ethics | The FCC Group’s Risk Management Model | Page 3 of 4
_ 20
Significant risk scenarios
Strategic risks
Operational risks
• Political and regulatory instability.
• Cuts in forecasts for investment and
• Climate and environmental risks.
• Health and humanitarian crises.
• Regional war conflicts and terrorism.
• Loss of market share.
demand.
• Reputational harm.
Response plans
• Consolidation of the diversified international
position as a provider of those services
classified as essential.
• Maintaining market share in mature
markets.
• Internal strategy for adaptation to climate
change in Horizon 2050.
• Integrating the businesses into the circular
and low-carbon economy and alignment
with the SDGs.
• Search for new public-private collaboration
• Investment in technology, innovation and
formulas to develop the end-to-end
water cycle, environmental services and
infrastructure.
process control.
• Unilateral termination or modification of
the contract, contractual controversies
and litigation.
• Labour conflicts.
• Loss of human capital.
• Rescheduling of projects.
• Risks associated with digitisation.
• Valuation of real estate investments.
• Cyberattacks.
• Increase in prices and lack of availability
of raw materials and subcontracted
services.
• Risks arising from relations with third
parties.
Response plans
• Formal economic and technical, and
contractual management planning
systems with clients and third parties,
applying an active negotiation policy.
• Application of purchasing procedures,
monitoring key suppliers and periodic
analysis of deviations.
• Risks for the safety and health
of people.
• Environmental damage.
• Operational unit and information security
management system also according to
international standards.
• Monitoring plans for specific project risks.
• Appropriate insurance coverage.
• Training, coordination and development
of the Group’s human resources.
• Active management of labour relations.
• Periodic valuations of real estate assets
by independent experts.
• Development of Sustainability Plans.
• Inclusion of price review mechanisms in
contracts.
• Quality management systems,
environmental management and
occupational risk prevention in
accordance with international standards.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Corporate governance and ethics | The FCC Group’s Risk Management Model | Page 4 of 4
_ 21
Significant risk scenarios ( continued)
Compliance risks
Financial risks
• Discrepancies in regulatory compliance.
• Discrepancies in contractual compliance.
• Potential breach of the Code of Ethics
and Conduct.
• Credit risk.
• Liquidity risk.
• Exchange rate fluctuation.
• Interest rate fluctuation.
• Limitations on access to financial
markets.
• Impairment of goodwill.
• Recoverability of deferred tax assets.
Response plans
Response plans
• Widely disseminated Code of Ethics and
• Update programmes in different regulatory
Conduct.
areas.
• Structured, formalised and periodically
• Regulated systems with detailed
reviewed Compliance Model.
procedures.
• Organisational structure of Compliance
at different levels and for the different
businesses, coordinated by the
Compliance Committee.
• Training programmes on ethics in
the Compliance and Values schools
of Campus FCC.
• Monitoring of contractual and regulatory
requirements in project management 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 third-party funds.
• Optimisation of floating-rate debt
exposure and analysis of hedging
instruments on interest rate fluctuations.
• Control of equity risk management and
updating and monitoring goodwill values
and deferred tax assets.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021
_ 22
3
Strategy
and value
creation
FCC Group’s mission, vision and values _ 23
Strengths of the business _ 26
Strategic responsibility.
A responsible manifesto _ 29
Response to future challenges _ 50
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | FCC Group’s mission, vision and values | Page 1 of 3
_ 23
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, infrastruc-
tures and associated products and real-estate management
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 activ-
ities.
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 wa-
ter 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 Cit-
izen Services, offering global and innovative solu-
tions 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | FCC Group’s mission, vision and values | Page 2 of 3
_ 24
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 form part of the Code of Ethics and Conduct of
the FCC Group and are intended to transmit and instil the prin-
ciples in all company employees.
WE SHARE a common
WE ARE more than
WE FOLLOW the same
challenge: improve the
59,000 professionals
path guided by the
quality of life of citizens
operating in more than
principles of the FCC’s
and contribute to
sustainable progress.
25 countries.
Code of Ethics and
Conduct.
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
Oriented
towards results
We pursue improvement
and goals to make the
FCC Group a leader in
profitability and
competitiveness.
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.
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | FCC Group’s mission, vision and values | Page 3 of 3
_ 25
Principles
of action of
the FCC Group
Honesty and Respect
1 We respect legality and ethical values.
2 Zero tolerance towards bribery and corruption practices.
3 We act against money laundering and the financing of
terrorist activities.
4 We protect free competition and good market practices.
Rigour and Professionalism
5 We behave ethically on the stock market.
6 We avoid conflicts of interest.
7 Rigour in control, reliability and transparency.
8 We protect the reputation and image of the Group.
9 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 Our customers are at the centre.
12 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strengths of the business | Page 1 of 3
_ 26
Strengths of the business
Experience
More than 120 years of experience, creating value for citizens. A service structured around specialist
and quality work by the best professionals in each of the areas that make up the FCC Group.
Ethics and Integrity
An ethical, responsible culture that encompasses the Compliance Model, in addition to the plans
and strategies of the FCC Group and its business lines.
Quality and Innovation
Continuous improvement to identify, satisfy and anticipate the needs of its customers (internal and external)
and stakeholders.
Health and Safety
Care for the maximum health, safety and well-being of professionals, in particular for activities that
represent an added risk.
Care for the Environment
Caring for and protecting the environment by implementing the circular economy model in the business.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strengths of the business | Page 2 of 3
_ 27
Keys to a diversified business
Environment
• Waste collection.
• Street cleansing.
• Handling and recycling
of municipal waste.
• Ground and gardens
maintenance.
• Maintenance of sewerage
networks.
• Handling and recycling
of industrial waste.
End-to-end Water
Management cycle
• Municipal concessions for
the management of the
end-to-end public water
service.
• Infrastructure concessions
under the BOT model
(Built, Operate and Transfer).
• O&M services (operation
and maintenance of
infrastructures).
• Recovery of polluted soils.
• EPC models (Engineering,
• Facility management.
Procurement and
Construction).
Infrastructure
Cement
Real estate
• Cement.
• Trading.
• Other businesses
(concrete, aggregate
and mortar).
• Leased equity.
- Services sector (offices,
shopping centres and
retail premises and
others).
- Residential (BtR).
• Real estate development.
• Land backlog
management.
• Civil engineering (bridges,
tunnels, highways, rail
projects, etc.).
• Residential construction.
• Non-residential
construction (sporting,
health and cultural
infrastructures, etc.).
• Industrial.
• Concessions.
• Infrastructure maintenance.
• Prefabricated materials.
• Brand image.
i
i
i
i
i
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strengths of the business | Page 3 of 3
_ 28
International presence in 2021
Saudi Arabia
Algeria
Austria
Belgium
Czech Republic
Chile
Colombia
US A.
Egypt
United Arab Emirates
Slovakia
Spain
France
Netherlands
Hungary
Italy
Libya
Mexico
Norway
Panama
Peru
Poland
Portugal
United Kingdom
Romania
Serbia
Tunisia
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 1 of 21
_ 29
Strategic responsibility.
A responsible manifesto
Sustainability
in FCC’s
business model
The extensive performance of the FCC Group in the provi-
sion of services to residents over the years has positioned the
company as a leader and reference its industry, both in Spain
and internationally. The FCC Group considers its fundamental
purpose and long-term commitment as being reflected in its
leadership of the creation and restructuring of cities as potential
smart, sustainable, inclusive and responsible environments.
The company strives to improve people’s quality of life, re-
sponding to their expectations and needs of the surroundings
they live in, harnessing its consolidated experience as a socially
responsible company. FCC’s commitment to the 2030 Agenda
and its contribution to the Sustainable Development Goals; to
the Paris Agreement on climate change; to the United Na-
tions Global Compact and the transition to a circular economy
model, are just a few examples of the company’s roadmap to
overcoming the challenges posed by climate change and soci-
oeconomic imbalances on a global scale.
Furthermore, the FCC Group is committed to making collective
efforts in relation to cooperation and solidarity to make progress
towards a more resilient, fair and inclusive society, without leav-
ing anybody behind, convinced of the role that the company
must perform to support the economic reactivation, generating
high-quality jobs in the community in which it operates.
Over the course of this year, FCC has continued to explore new
frontiers in terms of sustainability, considering the needs and
expectations of stakeholders and incorporating citizens at the
heart of its business.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 2 of 21
_ 30
Sustainable governance
Board of Directors
In line with recommendations 53 and 54 of the Code of Good
Governance of the Spanish Securities Market Commission
(CNMV), the Board of Directors oversees compliance with the
FCC Group’s CSR Policy.
Sustainability Committee
It liaises with the business Areas, and receiving support from the
business committees (CSR Committee at Aqualia, FCC Medio
Ambiente’s Sustainability Committee, FCC Construcción’s Sus-
tainability Committee, CPV’s CSR Committee), coordinates the
different sustainability actions at the FCC Group. In particular, it
assumes responsibility for developing, implementing and ensur-
ing compliance with the CSR Policy.
Compliance and Sustainability Division
Reporting to the General Secretary, it supports the corporate
Sustainability Committee in the performance of its functions,
mainly in determining the ESG risks (Environmental, Social and
Governance) and those in the design of the Sustainability strat-
egy, establishing systems for monitoring and following up on
results, in terms of ESG practices at the FCC Group.
Sustainability
Governance
and Policy
The Corporate Social Responsibility Policy (RSC) of the
FCC Group establishes the commitments assumed by the
Group, in particular in relation to its business integrity and ethics
framework, respect for the environment and its social contribu-
tion. It represents the framework of action that governs the per-
formance of the Group’s different activities where it operates.
The CSR Policy is inherent to the commitment and action of all
members that make up the Group, in line with the demands of
customers and society as a whole.
The FCC Group is committed to a strong governance structure
when it comes to sustainability and as a result, this year, it has
changed the name of the corporate division responsible for this
area, which is now known as the Compliance and Sustaina-
bility Division. The team responsible for coordinating the cor-
poration and business Areas in this area has also been renamed
the Sustainability Committee.
Sustainability in the FCC Group is led by the Board of Directors,
through its Executive Committee.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3Executive CommitteeCompliance and Sustainability DivisionSustainability Committee*Sustainability Committee/CSR in businessesApproving rolePromoting roleReporting to General SecretaryDeciding role* The Sustainability Committee is made up of:• General Secretary.• Compliance and Sustainability Division.• Corporate HR Management.• Sustainability divisions/CSR in businesses.Executing roleBoard of Directors FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 3 of 21
_ 31
Managing the
Group’s social,
environmental
and governance
future
Focussed on the material
During 2021, the FCC Group, aware of the strategic need to
analyse and respond to the demands and expectations of its
stakeholders, reviewed and updated its materiality study,
which allows the company to determine which are the most
relevant social, employment, environmental and governance
matters in each of the Group’s businesses.
Stakeholders have participated in updating the study, estab-
lishing direct consultations with the suppliers and internal and
external customers of the Group’s different businesses. Fur-
thermore, as part of the study, the perspective of shareholders,
communities and partners has been analysed, in addition to the
perspective of the members of the Management Committees of
the different businesses, in addition to other sources.
The outcome of the materiality study has demonstrated the
cross-cutting relevance of three matters: Ethics, Integrity, Com-
pliance and Good Governance; Circular Economy and Waste;
and Safety, Health and Well-Being.
ESG Ambition and SDG Contribution
After the achievements of the most recent CSR Master Plan,
in 2021, work was undertaken to develop FCC’s ESG Frame-
work, as a roadmap for structuring the Group’s activities from
a sustainable perspective, under the motto “Together we are
building a better future”.
FCC’s ESG Framework has been undertaken placing a focus
on the objectives, challenges and milestones of the global strat-
egies, the 2030 Agenda and the 2050 horizon, anticipating
trends, assuming more ambitious challenges and applying les-
sons learned, as a step prior to the strategy that will define the
Group’s 5th Master Plan.
FCC ESG FRAMEWORK
| Together we are building a better future
E
INNOVATION,
COMMUNICATION
AND PARTNERSHIPS
S
G
INNOVATION
Generate knowledge synergies to
foster innovation, technology and
digitalisation.
COMMUNICATION
Foster the information we
provide on sustainability.
PARTNERSHIPS
Create strong collaborations to
contribute to the 2030 Agenda.
ENVIRONMENTAL
SOCIAL
GOVERNANCE
Climate action
Moving towards a competitive, low-carbon economy.
Circular economy
Apply these principles to the efficient use of resources.
Water management
Reduce water stress where we operate.
Protection of biodiversity
Contribute to maintaining natural capital.
Human rights
Ensure their protection internally and throughout the value chain.
Social action
Contribute to development in the communities in which we
operate.
Human capital
Promote talent and empower our professionals.
Health and well-being
Care for people’s health through their physical and mental
well-being.
Diversity and equality
Generate a real culture of respect, tolerance and equity.
ESG risk management
Minimise the impact of non-financial risks on results.
Value chain
Transfer our ESG commitments throughout the value chain.
Ethics, integrity and compliance
Maintain a robust model that guarantees responsible conduct.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 4 of 21
_ 32
Once the commitments of the 2030 Agenda were approved,
the FCC Group strengthened its business model with sustain-
able development, through strategies in favour of people, the
planet and progress, progressively adapting its internal proce-
dures and action plans to the 17 Sustainable Development
Goals (SDGs).
Through each business line, the Group identifies the SDGs that
it considers a priority based on their direct contribution:
FCC Servicios Medio Ambiente
| Committed to environmental care and health
Aqualia
| Incorporating sustainability in the end-to-end water cycle
FCC Construcción
| Creating works that connect cities
Cementos Portland Valderrivas
| Transforming raw materials
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 5 of 21
_ 33
Dialogue with stakeholders
The FCC Group’s activities have always been enhanced by effi-
cient communication, continuous dialogue and a major interest
in building transparent, long-lasting relations with its stakehold-
ers.
Responding to and contributing value to society is an essential
part of the Group’s sustainable management, in addition to be-
ing a key factor both in its socially responsible positioning and
the performance of its business strategy.
Along this line, the FCC Group employs communication chan-
nels and procedures that are progressively more fluid, with a
view to understanding the needs and concerns of its stake-
holders.
For a more immediate response, both the FCC Group and its
business Areas are present on social media, ensuring direct
contact with each different audience: Facebook, Twitter, You-
Tube, Instagram or LinkedIn.
Furthermore, on its website www.fcc.es, FCC has a contact
form, Sustainability mailbox and provides the public with in-
formation on its environmental, social and governance perfor-
mance, periodically, through the Group’s Sustainability Report
and the reports issued by the different businesses.
STAKEHOLDERS AND CHANNEL FOR DIALOGUE AND COMMUNICATION
Shareholders, investors and rating agencies
Communities
• Company website and business Area websites to publish
• As per FCC Group lines of business as parties responsible for
financial performance contents.
dialogue with local communities.
• Board of Directors and Committee presentations.
Shareholders
• General Shareholders’ Meeting.
• Shareholders’ office.
• Channels of communication with other institutions.
• Collaboration agreements, sponsorships and donations.
• Roadshows with investors to raise awareness of the company.
• Alliances.
• Surveys and interviews with agencies to rate the company and
• Business forums.
its performance.
Employees
• FCC ONE – Corporate intranet.
• Ethics channel.
• FCC Te escucha – FCC’s app.
• FCC360 – FCC’s app.
• Publications and presentations.
• Due diligence procedures.
Clients
• Satisfaction surveys.
• Figure of the contact person.
• Channels of dialogue used by each line of business.
• Periodic meetings on information of interest.
• Dissemination and awareness raising campaigns.
• Employee portal.
• Somos FCC: quarterly online magazine.
Trade unions
• Committee meetings.
• Agreements.
• Work inspections.
• FCC newsletter in poster format translated into 13 languages.
Certificate and accreditation bodies
Suppliers and contractors
• Information and awareness raising sessions.
• NALANDA platform for supplier approval.
• Obligatory compliance with FCC’s Code of Ethics and
Conduct and Anti-Corruption Policy.
• Commitment to fully comply with the ten Principles of the UN
Global Compact.
Public administrations and regulators
• Voluntary participation in sectoral self-regulation and legislation
development initiatives.
• External audits.
• External verifications.
• Participation in work groups.
Financial institutions
• Surveys.
• Meetings.
• Green bonds (FCC Medio Ambiente Iberia).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 6 of 21
_ 34
The persons
at the centre
Recognising talent
Human capital profile
This year, the FCC Group has faced all the challenges that have
arisen during the pandemic and has continued to pursue its
goal of being the best place to work, boosting people’s quality
of life.
To this end, it has defined a global strategy, translated into its
value proposition in terms of people, which is structured around
three fundamental pillars: talent, diversity and equality and
health and well-being.
FCC operates in 39 countries around the globe, with a work-
force of around 60,000 professionals. The company is known
for its job stability, with 74% of its staff on permanent contracts.
DISTRIBUTION OF THE WORKFORCE BY GENDER
DISTRIBUTION BY GENDER AND FUNCTIONAL LEVEL
Woman
Man
Direction and
management
Middle
Management
Technical
staff
84
444
634
3,205
1,847
4,092
Administrative
staff
2,039
1,142
Various
trades
9,009
37,051
WOMEN
22.9%
MEN
77.1%
DISTRIBUTION OF THE WORKFORCE BY GEOGRAPHICAL AREA
USA and
Canada
0.99%
Other EU
11.22%
Spain
76.74%
Latin America
2.38%
Rest
of the world
8.67%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 7 of 21
_ 35
Managing knowledge
As part of the FCC Group’s professional development model,
there is no let up in the efforts to promote the development of
each person that forms part of the company.
In 2021, the Board of Directors
approved the FCC Group’s
Selection Policy, renewing
the bases and principles
to inspire our processes,
with a view to attracting,
selecting and ensuring the
loyalty of the best talent
In relation to professional development, the FCC Group’s
cross-cutting training plan includes the following most notewor-
thy objectives:
• Providing management with new powers and team manage-
ment knowledge.
• Developing interpersonal relation skills (individual and team
coaching, development event, conflict management, etc.).
• Digitalisation aimed at optimising processes and acquiring an
agile, digital mentality.
• Awareness raising in relation to diversity and equality.
• Training in Compliance matters associated with the FCC
Group’s Compliance Model.
In 2021, a total of 563,971 hours of training were imparted
across the Group. The breakdown of the training hours by pro-
fessional category, gender and business Area can be consult-
ed in the FCC Group’s Sustainability Report, attached to this
report.
The aim of the corporate university, Campus FCC, is to serve
as a global reference for continuous, agile learning that re-
sponds to the business’ training needs (Upskilling) and makes
it possible to develop new capacities that will be required in the
positions of the future (Reskilling), thus achieving an increase in
versatility and employability of FCC Group employees.
In 2021, Campus FCC has launched 125 online modules cov-
ering different topics as part of 205 training drives. Furthermore,
120 development events have been organised for members of
management.
In 2021, efforts were made to consolidated
the On Boarding programme for new recruits,
with a training schedule that encourages their swift
integration into the position and company.
Valores y
cumplimiento
Diversidad
e Igualdad
Digital
Liderazgo
y Desarrollo
Acceder
Acceder
Acceder
Acceder
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 8 of 21
_ 36
Progress in order to make
diversity a reality
The FCC Group encourages a business culture amongst its
employees based on diversity and equal opportunities.
In 2021, FCC renewed its commitment to the Diversity Char-
ter for the 2021-2023 period, in line with its equality and so-
cial inclusion policies, promoting initiatives and projects that
encourage diversity, social responsibility, inclusion and equality
through employment.
Gender equality
For FCC the principle of equal opportunities is a commitment
to action that cannot be waived, as set out in its Code of Eth-
ics and Conduct and in each of its Equality Plans. All business
heads have received acknowledgement in the form of the Busi-
ness Equality Distinction, a mark of excellence granted by
the Spanish Ministry responsible for Equality, with the Group
currently boasting five distinctions.
As a result of the FCC Group’s conviction to promoting women,
the percentage of women holding management positions
at the end of 2021 increased to 15.9% of all these types of
positions. Furthermore, once again, the Group has participated
in training programmes aimed at creating an enriching work en-
vironment, free from discrimination and which favours diversity,
with two training and development initiatives for women in lead-
ership positions worth highlighting: the Promociona Project
and the EOI Development Programme.
Against gender violence
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.
To this end, the Company collaborates closely with the “Com-
panies for a Society free from Gender Violence” and actively
collaborates with different foundations and institutions to pro-
mote the insertion and inclusion of victims in the job market.
Event to commemorate International Day for the Elimination
of Violence Against Women at the corporate headquarters in
Las Tablas (Madrid) and delivery of the prize by the Compliance
and Sustainability Division.
Against the backdrop of this fight against gender violence, and
in commemoration of the International Day dedicated to this
fight, FCC organised the 4th Edition of the awards recognising
the work of the organisations and associations that fight against
gender violence and are dedicated to the women who suffer
from this evil. The awards have been delivered to: UN Wom-
en as an international institution dedicated to the fight against
abuse; and the Spanish Royal Federation of Winter Sports
(RFEDI), for its efforts against gender violence suffered by wom-
en and girls in sport.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 9 of 21
_ 37
Non-discrimination and prevention
of harassment
People with disabilities and vulnerable
groups
As part of the Compliance Model, and as a complement to the
whistleblowing channel, the Group has a Protocol to Prevent
and Eradicate Harassment, which is mandatory and aims to
prevent, resolve and punish any cases of occupational, sexual
or gender harassment.
As part of FCC’s commitment to preventing occupational har-
assment, and promoting respectful working environments, as
part of which dialogue and organisational and professional de-
velopment prevail, in 2021, specific training was launched on
interpersonal conflict management.
As part of FCC’s commitment to diversity and inclusion in the
workplace, the Group actively collaborates with specialist or-
ganisations who advise on the recruitment and occupational
support for people with disabilities and vulnerable groups.
In 2021, the FCC renewed its Inserta Agreement with Fun-
dación ONCE, with a view to recruiting a further 125 people
with disabilities over the coming three years, bringing the total
number of recruits since the start of this collaboration to 900
people with disabilities..
The number of workers at FCC with a recognised disability
comes to 1,498 individuals in Spain.
By promoting the workplace integration of particularly vulnera-
ble groups or at risk of social exclusion, during 2021, a total of
170 were recruited.
Furthermore, the company, aware that accessibility is a key
factor in guaranteeing full participation and inclusion, continues
to design solutions that promote the creation of a working envi-
ronment free from obstacles and barriers.
As part of its progress towards its Universal Accessibility certi-
fication, in 2021, the company performed a diagnostics study
pursuant to the DALCO requirements (Ability to walk, Aware-
ness, Location and Communication) established for UNE
170001-1:2007.
The number of
workers at FCC with
a recognised disability
comes to 1,498
individuals in Spain
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 10 of 21
_ 38
Security, health and well-being
CLAUSES MOST COMMONLY INCLUDED IN COLLECTIVE BARGAINING AGREEMENTS
FCC structures its strategy around its Security, Health and
Well-being Policy, which applies to its workforce as well as
contractors and suppliers.
One of the company’s main areas of action is to strengthen the
culture of prevention and promotion of health; this objective is
supported, in addition to other factors, by the certification of its
health and safety systems pursuant to recognised international
standards, such as ISO 45001, covering more than 95% of
the total workforce.
As part of the Live Healthy project, dedicated to promoting
cross cutting actions that encourage healthy habits, in 2021,
activities were promoted that were dedicated to the psycho-
logical and emotional well-being of the workforce, with actions
aimed at their emotional well-being, pandemic fatigue and dig-
ital disconnection.
FCC structures its strategy
around its Security, Health
and Well-being Policy, which
applies to its workforce as well
as contractors and suppliers
PREVENTION PLANS
Risk assessment and preventive-technical action.
REGULATIONS
WORKERS’ RIGHTS
Participation, training and information.
HEALTH OVERSIGHT
Regular doctor’s check ups.
CONTINUOUS IMPROVEMENT
General conditions in work
centres.
PREVENTIVE MEASURES
PPEs and emergency situations or
working with special risks.
COMMUNICATION AND LIAISON
with prevention services.
Work organisation
The organisation of time at work in the FCC Group’s various
companies responds to the productive needs of each activity
pursuant to the standards and regulations applicable in each
sector and location.
To guarantee the well-being of employees, the FCC Group
believes it is essential to appropriately manage the organisation
of work and the different actions undertaken place an emphasis
on striking a work/life balance, flexibility, joint responsibility and
disconnection.
A significant number of collective bargaining agreements that
apply in Spain place particular focus on occupational health and
safety, with recurring clauses on prevention plans, communica-
tion, health oversight and regulations on workforce training and
participation.
Evolution of accident
and absenteeism rates
In 2021, the global accident frequency rate stood at 1.36
and the severity rate at 0.71, meaning that they remained be-
low the equivalent rates published by the Ministry of Employ-
ment for each activity sector.
As regards the absenteeism rate due to common illness, this
stood at 4.63 and the absenteeism rate due to work accidents,
this stood at 0.37, down by 16% year on year.
One relevant figure is that in 2021, no fatal accidents were re-
corded that were directly attributable to the company’s activi-
ties.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 11 of 21
_ 39
Data boutique
With a view to ensuring that decisions are adopted based on
reliable indicators, significant efforts have been dedicated to
creating the Data Boutique, a new information management
platform that pursues the following objectives:
• Providing solutions to business problems, offering support in
the decision-making process and encouraging corporate col-
laboration.
• Increasing the integration of information systems and data-
bases, employing reliable data to construct appropriate met-
rics.
EMPLOYEE MANAGEMENT
REMUNERATION
HEALTH AND SAFETY
Organisational structure
Functional level
Families
Disability
Salary log
Average remuneration
Collective bargaining agreements
Accident rates
Hours of absenteeism
Accident and illness rates
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 12 of 21
_ 40
Environmental management and care
Environmental policy and the management of environmental
aspects
To ensure compliance with environmentally responsible practic-
es and compliance with the environmental regulations in force,
the FCC Group has a corporate Environmental Policy reflect-
ing its principles in terms of environmental conservation and the
responsible use of natural resources. This Policy, in turn, has
resulted in the creation of other policies specific to each busi-
ness depending on their singular nature.
The series of businesses that make up the FCC Group have
ISO 14001 certified environmental management systems in
place, in addition to other environmental certifications in line
with the different risks its activities pose. From a global per-
spective, 83.09% of the Group’s activities are certified pursuant
to different environmental quality standards.
When establishing measures to detect and mitigate the en-
vironmental impact, in 2021, around 64 million euros have
been invested to prevent environmental risks. This amount
includes but is not limited to: investments to renew the fleet of
vehicles and in more efficient machinery; environmental con-
sultancy services; R&D project development and environmental
certifications.
AVE Madrid-Extremadura, section between Embalse
de Alcántara– Garrovilla, winner of the Premios Fomento
2021 in the civil engineering category, awarded by FCC
Construcción’s Sustainability Committee, in recognition
of the most noteworthy teams in the implementation
of quality and innovation principles, application of best
practices and excellence in implementation and processes.
Climate footprint
Climate change represents a major environmental challenge
that today’s society must face, with clear consequences on so-
ciety and the economy. The FCC Group makes significant ef-
forts to include climate change management across all its levels
of operations and considers the recommendations of the Task
Force on Climate-Related Financial Disclosures (TCFD), es-
tablished by the Financial Stability Board (FSB) in relation to the
dissemination of climate information.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 13 of 21
_ 41
Emissions and
prevention of pollution
With a view to reducing greenhouse gas emissions and adapt-
ing to the effects caused by climate change, the FCC Group has
its own Climate Change Strategy. Furthermore, climate-relat-
ed risks and opportunities form part of the FCC Group’s Risk
Management Model, performing a periodic assessment and
analysis via controls to prevent and detect them.
FCC GROUP’S DIRECT AND INDIRECT GHG EMISSIONS
(tCO2e)
731,600
7,870,743
604,073
6,359,764
549,838
6,624,839
Furthermore, each year, the FCC Group voluntarily reports in-
formation on climate-related risks and opportunities via the
Carbon Disclosure Project (CDP) initiative and calculates its
annual carbon footprint, following the criteria set out in the GHG
Protocol.
The measures adopted to minimise pollution and prevent the
negative impact of activities include:
• Measures to minimise emissions (mainly NOX, SOX and
particles): applying methods to trap and manage biogas; ac-
tive degasification; controlling and minimising diffuse emis-
sions generated by transport or handling dusty material; pro-
moting alternative, less polluting forms of transport; installing
electrostatic and sleeve filters to reduce concentrations in
channelled sources; applying selective non-catalytic reduc-
tion techniques; installing low-emission NOX burners; con-
trolling fuel doses; leak detection systems; etc.
• Measures to prevent noise pollution: acoustic insulation
of machinery; installing panels, noise screens and moving
screens; silencers; replacing equipment with soundproofed
equipment; implementing inspection point programmes;
monitoring noise and noise pollution surveys; prioritising the
use of electrical equipment; training staff on driving and con-
trolling inappropriate noise generation, etc.
2019
2020
2021
Indirect GHG emissions (scope 2)
Direct GHG emissions (scope 1)
Slight increase, in 2021, of direct GHG emissions, as a result of the
increase in Cement activities.
Cementos Portland Valderrivas factory in Alcalá
de Guadaíra (Seville) came into operation in 1964.
As part of its production processes, it uses the best
techniques available to ensure a high level of
environmental protection, by implementing
management systems, procedures to reduce GHG
emissions and the potential use of non-recyclable waste.
NOX, SOX AND PARTICULATE emissions (T)
6%
10%
84%
NOx
SOx
Particulates
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 14 of 21
_ 42
• Measures to minimise light pollution: installation of move-
ment sensors and sectioning of outdoor lighting; replacing
lightbulbs to reduce the impact on the environment; using
timers and presence detectors; installing more efficient night
light systems and directional lighting; etc.
• Measures to minimise spills and discharges: authorisa-
tion of discharges and analysis of water quality by accredited
external laboratories; inventory of wastewater flows; inverse
osmosis system; treating water by means of purification, de-
canting and neutralising the pH; adaptation of storage; an-
alytical control of the process and discharges; emergency
plans, etc.
FCC Medio Ambiente’s ie-Urban, an electric collection
vehicle developed in-house with a modular platform
chassis, 100% electrical, to promote urban sustainability
and minimise the environmental impact.
Awarded the 2021 Industrial Eco-Vehicle Award, in the
mixed category at the National Transport Awards.
Facilities run by Aqualia’s Czech subsidiary, SmVaK, which
produces clean energy from mini-hydro plants located in
its water purifying generators.
Thanks to its cogeneration plans powered using biogas
obtained from its water purifying generators, the company
produces 80% of the energy consumed in the towns
in which it operates and thanks to its renewable energy
generation facilities, avoids releasing tonnes of CO2 into
the atmosphere.
Energy consumption
and energy efficiency
FCC has developed specific measures for improving energy effi-
ciency and replacing fossil fuels with renewable energy sources,
helping to mitigate climate change and the impact of business
activities on the environment.
Worth particular note is the ISO 50001 Energy saving and
management certification obtained for specific Group activ-
ities, which make it possible to continuously improve energy
performance and identify additional opportunities for reducing
energy consumption.
The actions undertaken to increase the energy efficiency of
facilities include the following: replacing light bulbs with LED,
low-consumption technology; installing presence detectors;
renewing equipment using low-consumption alternatives; or
purchasing and developing more energy efficient machinery.
Furthermore, depending on the activity, software has been in-
stalled to monitor energy consumption; energy performance
calculation and measurement systems are being improved; pro-
cess, facility and production equipment optimisation; energy ef-
ficiency criteria are applied during the project design phase, etc.
Developing measures and projects to increase the use of re-
newable energy is one of the main pillars of the Group’s com-
mitment in this Area. Thus, the Group promotes waste energy
reuse projects or the installation of solar panels on warehouse
roofs, with the energy generated used by the company itself
and put up for sale.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 15 of 21
_ 43
Self-consumption solar panels at the corporate
headquarters in Las Tablas (Madrid). Horizontal
installation on the building’s roof, with an estimated
production of 43,800 KWh/year.
The installation of solar panels and other measures
to improve energy efficiency have reduced energy
consumption-related CO2 emissions by 9%.
DIRECT AND INDIRECT ENERGY CONSUMPTION (GJ)
RENEWABLE ENERGY CONSUMPTION (GJ)
48,431,483
43,103,946
45,962,587
13,107,942
13,029,179
11,606,736
2019
2020
2021
2019
2020
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 16 of 21
_ 44
Waste management
The FCC Group has proactively encouraged the integration of
circular economy principles in its business management mod-
els as a path to the company’s sustainable development.
The company establishes measures to reduce the environmen-
tal impact of its waste and is committed to harnessing and sub-
sequently reintroducing waste in the chain of value, in line with
the Circular Economy principles.
The main initiatives implemented as part of the Group’s different
activities include:
• Reuse of inert materials, effluents and process wastewater.
• Consumption of alternative sources of fuel, such as biomass,
replacing fossil fuels.
• Consumption of secondary raw materials in different phases
of the production process.
• Reduction of the volume of waste sent to landfill, transforming
it into resources and new products.
• Production of certified secondary fuel from selected waste.
• Obtaining added value products as part of water treatment
processes and implementation of agreements in the value
chain for the reuse of products.
• Energy generation via the management or the municipal wa-
ter cycle.
• Innovation projects to design new sustainable and reusable
materials.
The Environment Area, which mainly focusses on management,
treatment and safe removal of residues, participates in certain
lines of research to promote and develop the circular econ-
omy:
• EU LIFE programmes to transform waste treatment centres
into fuel producing centres (biomethane) for its use in different
types of vehicles.
• Innovative processes for promoting the recycling of plastic.
• Optimisation of composting by means of bioconversion with
insects to harness municipal by-products and biological
waste.
• Creation of new by-products and biomaterials by recovering
organic waste.
• Innovation in the management of industrial waste to decrease
and replace the use of fluorinated gases, recover waste and
isolate contaminating waste.
Centre for the reuse of articles, Back2life, at FCC
Environment CEE in Trnava (Slovakia), whose objective
is to give products a second life so that they can continue
to be used.
This responds to a model for transitioning to the circular
economy, extending the useful life of items, reducing waste
and protecting the environment. The income generated
is dedicated to community projects and green spaces
for the city.
EVOLUTION OF TOTAL WASTE GENERATED (T)
4,078,233
2,323,266
2,506,693
2019
2020
2021
The increase in the value of waste generated by the Group can
mainly be attributed to the reactivation of construction projects,
during the phases in which most waste is generated.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 17 of 21
_ 45
Responsible raw material and water management and consumption
Each and every day, the Group strengthens its commitment
to responsible water management and consumption, ensuring
compliance with the territorial municipal supply limits of this re-
source, in addition to implementing measures for its rational,
efficient use.
The business unit specialising in end-to-end water manage-
ment, Aqualia, promotes the sustainable development of com-
munities within its area of action by optimising public and pri-
vate water resources. The company exhaustively controls all
phases that make up the end-to-end water cycle: collection,
purification, desalination, distribution, collection, treatment and
reuse.
WATER EXTRACTION (M3)
13,848,749
14,568,563
14,492,901
FCC Group’s activities entail the inevitable use of raw materials.
As part of its management activities, measures are implement-
ed for the optimisation of its consumption; for its responsible
use; for harnessing materials generated by the reuse of waste
and replacement by-products; in addition to the use of alterna-
tive raw materials, such as: waste paper carbonates, industrial
sludge, concrete debris, recycled fuel, recovered hydrocarbons
or flying ash, thus reducing the consumption of non-renew-
able natural resources.
Materials used (T)
Raw materials (metals, minerals,
wood, etc.)
Process materials, lubricants and reagents
Semi-manufactured products
Packing and packaging material
(paper, cardboard, plastics)
Total
2021
70,629,672
113,303
2,015,821
9,600
72,768,396
The volume of materials consumed reflects the resumption of major
construction projects this year and the expansion of the scope of dif-
ferent projects.
2019
2020
2021
Water extraction data concerning Aqualia is not
considered, as this consumption is considered residual.
Drinking Water Treatment Plant (DWTP) in Oviedo
(Spain), located in Cabornio. The plant is equipped with
modern systems that guarantee the highest quality in
the treatment of water, such as ozone use, or different
data control and alarm systems, 24 hours a day.
Data Processing Centre, managed by FCC Industrial, in
Torija (Guadalajara, Spain). The management and execution
of the construction project, which has encompassed civil
engineering, construction and installations, structured
around the circular economy and recovery of waste, has
helped to achieve the AENOR Zero Waste certificate.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 18 of 21
_ 46
In 2021, a total of 1,237
hectares of sensitive areas
received some form of
protection from the FCC Group
and 940 hectares of affected
space have been restored
Protecting biodiversity
The FCC Group promotes the performance of its activities bear-
ing in mind the conservation of natural capital, in line with its
affiliation to the Spanish Business and Biodiversity Initiative
(IEEB) and the Biodiversity Pact, both promoted by the Bio-
diversity Foundation at the Spanish Ministry for the Ecological
Transition and the Demographic Challenge.
Given the specific characteristics of the different activities per-
formed by the FCC Group, its impact on biodiversity vary, as
do the initiatives and programmes undertaken by each of them.
The actions undertaken include: revegetation of landfills with
native species; the conservation of ecosystems by planting
trees; habitat creation; developing plans to rescue wild plantlife;
protecting and limiting areas of natural interest; prioritising the
use of existing paths rather than creating new ones; promoting
agreements with associations that protect nature; etc.
Finca de El Porcal. Old mining operation owned by Cementos Portland
Valderrivas, in Rivas Vaciamadrid (Madrid, Spain), converted back into a
natural ecosystem and declared a protected space in 1994.
The estate is home to more than 180 animal species, and its lakes are
sheltered by rich wetland vegetation, making it into a rich, productive
ecosystem on account of its great biological diversity.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 19 of 21
_ 47
Encouraging social
and environmental
progress
The FCC Group is known for its local roots, contributing to im-
proving the living conditions in the regions in which it operates,
committing to close relationships of mutual trust with the com-
munity and a search for positive synergies that help to design
cutting-edge solutions.
Social action
The FCC Group participates in the development of in-house
initiatives that enhance social cohesion, involving both society in
general and its own employees as agents of change.
Since the very beginning, implementing projects with a social
commitment has formed part of the company’s DNA, The FCC
Group supports particularly vulnerable groups, which repre-
sents progress towards the construction of a more resilient,
caring society. The company dedicates its efforts to the work-
place integration of people with disabilities, women who have
suffered from gender-based violence and other groups at risk
of social exclusion, facilitating their access to employment and
collaborating with entities specialising in supporting the most
vulnerable individuals.
The company plays an important role in its communities, with
the creation of jobs, recruiting employees and prioritising the
selection of local suppliers of materials and services. The diver-
sification of services that this facilitates, in addition to covering
the demand of customers, promotes the transformation of cit-
ies into inclusive, distinctive and innovative environments,
under the premise of guaranteeing access to basic supplies,
which ensure individual survival, health and dignity.
Aware that environmental awareness raising and education
are key aspects of social progress and development, FCC fo-
cusses its efforts on achieving full awareness amongst future
generations. Education at an early age represents a priority
area of action; with this in mind, the Group’s different business-
es have consolidated a network of academic institutions with
which they collaborate in a range of conferences, seminars and
courses.
The company promotes and encourages visits by the educa-
tional community to the facilities housing the Group’s different
activities. This measure is reflected in the creation of a climate
of transparency and increases environmental awareness raising
and knowledge of young people on matters that are particularly
relevant, such as energy efficiency, the ecological transition and
industrial sustainability.
Buckinghamshire Council and FCC Environment
(United Kingdom) collect more than 500 tonnes of
items for their reuse at domestic recycling centres,
with the funds generated from their sale donated to
South Bucks Hospice, at Butterfly House.
In line with the commitment to enhancing economic progress,
reducing inequalities and the social development of cities, the
FCC Group also makes monetary contributions to social insti-
tutions to satisfy the needs of the most underprivileged groups,
and establishes strategic alliances and collaborative working
models with a series of associations that help the company to
continue guaranteeing, year after year, that it makes progress
with community development.
In 2021, the company donated around one million euros to
non-profit organisations and foundations, and has dedicated
around four million euros to sponsorships and contributions
to associations. Furthermore, FCC Communities Foundation,
in the United Kingdom, has contributed more than 6.6 million
pounds to a total of 151 projects related to supporting local
communities and protecting heritage and the environment.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 20 of 21
_ 48
FCC’s commitment
to its customers
and suppliers
Customers: service excellence
As set out in the FCC Group Code of Ethics and Conduct, the
company is dedicated to promoting a culture focussed on the
commitment to and care for its customers, investing year after
year on perfecting its range of distinguished products and
services, across all lines of business, with a view to satisfying
demands and anticipating the needs of its customers.
The commitment to customers is reflected in adequate care and
anticipating needs, and through the diversification of products
and services, adapting to the different types of needs they have.
The FCC Group strives to maintain the highest standard of qual-
ity for which its products and services are known, responding to
health and safety criteria, and communication with its custom-
ers, which is essential in achieving continuous improvements.
PUBLIC SECTOR
PRIVATE SECTOR
Cities of the future must be the result of collaboration with a wide
range of public institutions and organisations.
The wide range of FCC services also encompasses projects
designed for the private sector.
MARKETING AND SALES
Guarantees the marketing of a high-quality product, in line with all
the corresponding safety standards.
END USER
With a view to being an agent of change and developing the
cities of tomorrow, the FCC Group undertakes a series of
activities that ultimately aim to achieve the full satisfaction of its
end users.
One key condition for instilling trust is also guaranteeing the pri-
vacy of information; to this end, the company works under the
principles of applicable European legislation and through ISO
9001 certification across all its lines of business.
Given the different types of customers served by the company,
for the purposes of adequate and effective management, each
business applies methodologies adjusted to different circum-
stances, with a view to appropriately listening to the concerns
of the institutions and individuals it serves.
Furthermore, each line of business develops its own tools to
proactively listen and respond, assuming responsibility for mon-
itoring the satisfaction of its own customers.
The different communication mechanisms used include:
• Personalised care and communication services, through
in-person online and over-the-phone options.
• Mobile app and platform to perform virtual office functions.
• Liaison to process suggestions and information received and
handle customer collaboration.
• Direct communication with commercial departments.
• Registration of complaints received via IT apps for their study
and analysis.
• Satisfaction surveys.
• Social networks.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Strategic responsibility. A responsible manifesto | Page 21 of 21
_ 49
Sustainable procurement
The FCC Group, with a view to establishing long-lasting, strong
relationships with its stakeholders, including its suppliers and
contractors, work placing particular attention on the impact of
its procurement processes on society, including ethical, social
and environmental factors in its supplier approval procedure.
The company employs different tools that govern its activities in
line with its culture of continuous improvement, renewing and
updating the guidelines to be followed based on the social and
environmental context, and in the application of sustainability
criteria.
SUPPLIER APPROVAL PROCESS
As part of the integrated framework to ensure responsible pro-
curement, worth particular mention are:
• The FCC Group Code of Ethics and Conduct: setting out
the basic principles that suppliers, partners and collaborators
must adhere to in terms of corruption, bribery and fraud; oc-
cupational and human rights; commitment to occupational
health and safety and sustainable environmental manage-
ment.
• General procurement conditions: defining the ethics claus-
es that must be accepted by suppliers, including the scope
of the Group’s Anti-Corruption Model.
• Procurement Manual: promoting stable, long-lasting com-
mercial relationships between contractors and providers, un-
der the scope of three principles: transparency, competitive-
ness and objectivity.
• Risk Map: analysis of ESG risks for suppliers and contrac-
tors in relation to questions such as: identification of potential
risks; definition of critical supplier and monitoring; control of
high-risk suppliers.
• Supplier approval procedure: as part of this process, sup-
pliers are analysed and registered and are required to respond
to surveys including social, environmental and governance is-
sues and criteria. They are evaluated and put in order before
they are classified.
Furthermore, the company periodically assesses suppliers
using satisfaction surveys and has defined a compliance au-
dit procedure for suppliers that may pose a greater risk. In
2021, a total of 870 suppliers were approved.
Fill in records and surveys
in line with environmental
and social requirements
Assessment parameters
Authorise approval
(A-B-C rating)
• Issuance of the approval
certificate
• Recommendations aimed
at improving activities
Classifying providers
considered high risk (D)
Due Diligence procedure
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 1 of 30
_ 50
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 provid-
ing citizen services, operating in over 25 countries, providing
extensive experience in environmental services, in end-to-end
water cycle management, the development and management
of infrastructures, the production of associated materials and
real-estate management. Furthermore, in 2021, its real-es-
tate business dedicated to the development of properties has
been enhanced, increasing the lease of offices and commercial
spaces.
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. Thus, a distinguishing culture
is consolidated that, separate from its different lines of business,
is applied to the performance of all its activities.
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 41.1% of the company’s
turnover comes from international markets, mainly in Europe
(30.1%), the Middle East (2.8%), Latin America (3.98%), North
Africa (2%) and the United States (1.8%).
Since the Group was founded, the social, economic and envi-
ronmental development of cities has allowed the business to
progress. Sustainability is essential for cities of the future to face
the main global challenges, such as climate change, population
growth, poverty and equal opportunities.
In 2021, the health crisis that was triggered the year prior re-
mained active in the form of different waves and strains, which
represented a constant challenge for the functioning of cities.
This meant that measures had to remain in place to prevent the
spread of COVID-19, promoting hygiene in public spaces and
maintaining basic services, in addition to others.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 2 of 30
_ 51
Global trends
Population pressure and concentration
of the population in cities
Since the mid-20th century, the world population has increased
at an exponential rate, from 2.5 billion people in 1950 to 7.8 bil-
lion people in 2021. According to forecasts, in 2030, the world’s
population will number 8.5 billion people.
Currently, more than half the world’s population lives in urban
areas and it is estimated by by the middle of the century, cities
will be home to 68% of the world’s population. This would entail
the urbanisation of 1.2 million km (1) between now and 2050.
Current demographic trends and the concentration of the pop-
ulation in major urban areas will require the transformation of
towns into cities, which will expand geographically, increasing
their population density. This will mean new challenges for the
FCC Group regarding the management of land and natural re-
sources so that cities continue to be functional, which will re-
quire resources and infrastructures to be optimised in the short,
medium and long term.
Long-term estimates continue to indicate that in the coming
decades, the world will continue along its path of urbanisation,
although at a slower pace in highly urbanised areas. Thus, in
urban areas, addressing overcrowding and maintaining accept-
able levels of hygiene in homes, shopping areas, offices and on
public transportation were crucial in overcoming the pandemic(2).
The expansion of cities will pose major challenges in relation
to supplying food and drinking water, which will require major
investments in infrastructure over the coming decades, with a
view to facilitating the maintenance of major urban hubs. 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.
(1) Source: World Bank
(2) Source: Cities in the World, OECD Urban Studies
56.2% of the world’s population lives in cities.
By 2030, there are expected to be 43 megacities,
most of them in developing countries.
The total fertility rate (TFR) (number of births
over the course of a woman’s life) is 2.3, still above
the replacement TFR of approximately 2.1 births
per woman, although below the TFR rate of
3.2 in 1990.
It is estimated that India will see the highest
absolute increase in the size of its population
between 2021 and 2050, increasing almost
246 million to 1.64 billion.
75% 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 global energy consumption and 70% of
GHG emissions.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 3 of 30
_ 52
Climate change and water stress
on the global agenda
At the United Nations Climate Change Conference (COP26)
held in Glasgow (Scotland) in 2021, a series of negotiations
took place between more than 200 countries, resulting in cli-
mate change agreements that will mark the direction of the
roadmap in the coming years. The Conference reaffirmed the
aim of the Paris Agreement to limit the increase in average world
temperature to 2 ºC above pre-industrial levels, in addition to
increasing efforts to ensure this increase is limited to 1.5 ºC. At
present, as published by the IPCC (Intergovernmental Panel on
Climate Change) in its Sixth Assessment Report, greenhouse
gas emissions into the atmosphere have caused a 1.1 ºC in-
crease; therefore, the implementation of measures to reduce
these emissions remains insufficient in stopping global warming.
The fight against climate change represents a major environ-
mental challenge that today’s society must face, with clear
consequences on society and the economy. It is important to
emphasise that in 2021, the proportion of CO2 in the atmos-
phere hit a new high of 419 ppm. 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 was
between 10 and 25 metres higher than today. The data gath-
ered in recent years confirm that the concentration of CO2 in the
atmosphere continues to increase and has not been halted by
the decrease in emissions caused by the partial suspension of
activity and the decrease in global transport as a result of the
COVID-19 pandemic.
In 2021, the proportion
of CO2 in the
atmosphere hit a new
high of 419 ppm
The impact generated by this phenomenon include the change
in weather patterns, the increase in seal level, the melting of the
ice caps, a greater likelihood of extreme weather events, such
as those seen in 2021, several heatwaves that resulted in re-
cord temperatures in different parts of the world, extreme rainfall
that caused large-scale flooding, drought or fire.
A quarter of the world’s population is facing 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.
Climate change affects land, coastal, marine and freshwater
ecosystems. Furthermore, the degradation of ecosystems is
advancing at an unprecedented rate and based on forecasts,
will speed up further in the coming decades. The degradation of
ecosystems limits their capacity to promote human well-being
and damages their ability to adapt to create resilience.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 4 of 30
_ 53
As a result, 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 strives to create innovative solutions that
make it possible to reduce its environmental impact and help
its customers in the transition to a low-carbon economy. This
is reflected in the numerous innovation projects related to re-
placing fossil fuels and promoting alternative energies. Some
projects 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); the use of activated clays to replace clinker
(Grupo Cementos Portland Valderrivas); or the use of low-im-
pact materials and the inclusion of energy efficiency systems to
construct more sustainable housing (FCC Inmobiliaria).
FCC strives to create
innovative solutions that
make it possible to reduce its
environmental impact and help its
customers in the transition to a
low-carbon economy
The proportion of CO2 in the atmosphere
reached a record 419 ppm in 2021.
In 2021, the average global temperature
exceeded pre-industrial levels by 1.11 ºC.
2021 wasone of the seven hottest years on
record.
Risingsea levels worldwide have sped up since
2013, reaching a new maximum high in 2021,
combined with higher sea temperatures and the
constant acidification of oceans.
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 5 of 30
_ 54
The circular and sustainable economy
It has been demonstrated that the current straight-line model,
based on extraction, production, consumption and misuse of
resources is not sustainable in the long term. Therefore, it is
necessary to encourage the implementation of a development
and growth model that makes it possible to optimise the use
of the available resources, materials, products and services by
minimising contamination, preserving waste in productive as-
sets and extending the useful life of products.
Applying a circular economy model encourages sustainable,
business and industrial development associated with the opti-
mum use and management of raw materials, increasing inno-
vation and competitiveness. Furthermore, the circular econo-
my plays an essential role in overcoming challenges like climate
change, resource scarcity, waste, biodiversity loss and pollution.
In recent years, the circular economy has become part of the
main national and international policies. The European Green
Deal, pursuing the general objective that the EU will become the
first climate neutral continent by 2050, requires the transition to
a circular economy. In this sense, the Circular Economy Action
Plan, proposed by the European Commission, focuses on pre-
venting and managing waste and is aimed at enhancing growth,
competition and EU world leadership in this field.
As part of the management models of all its business Areas,
the FCC Group encourages applying the principles correspond-
ing to the transition to a circular economy, which promotes the
Group’s sustainable development.
45% of global GHG (greenhouse gases) emissions
can be attributed to the production of material,
products and food, and land management(3).
Industry is responsible for around 21% of global CO2
emissions. The production of four materials (cement,
steel, plastic and aluminium) accounts for 60% of
these emissions.(4)
The construction industry is responsible
for more than 30% of Europe’s carbon footprint
and more than 40% of Europe’s primary energy
consumption.
Construction and demolition waste
(C&DW) account for the highest flow of waste in
the EU: 839 million tonnes, followed by 622 million
tonnes produced by mining and quarrying.(5)
The circular economy could reduce the global CO2
emissions of the main industrial materials by 40%
or 3.7 billion tonnes by 2050.(6)
It is estimated that global demand for materials
has multiplied tenfold since the start of the 20th
century and is expected to double again by 2030.
The transition to a circular economy would
At present, the available resources are being used
reduce GHG emissions by 39% and the use of
virgin resources by 28%, thus helping to achieve
the objectives set in the Paris Agreement(7).
Each year, approximately 2.1 billion tonnes of
municipal waste are generated worldwide, of
which at least 33% are not managed in a way
that is safe for the environment. It is expected
that global waste will increase to 3.4 billion
tonnes in 2050.(8)
50% faster than they can be regenerated by
nature.(9)
(3) Completing the Picture - How the circular economy tackles
climate change.pdf
(4) Completing the Picture - How the circular economy tackles
climate change.pdf
(5) ECESP brochure - final (europa.eu)
(6) Completing the Picture - How the circular economy tackles
climate change.pdf
(7) Report: CGR Global 2022.pdf - Google Drive
(8) World Bank, (2018), Trends in Solid Waste Management
(9) World Economic Forum, (2021), The Global Risks Report 2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 6 of 30
_ 55
The disruption of new technologies
The digital transformation, the use of new technologies and Big
Data represent major opportunities for businesses, improving
their margins and enhancing efficiency, in addition to other fac-
tors; however, they are also closely related to their reputation
and outlook.
Information and communication technologies (ITC) and Big
Data are placed at the service of infrastructures, with a view to
creating economically, socially and environmentally sustainable
cities. Smart cities represent a unique opportunity to limit and
control the environmental and social impacts of urbanisation on
our planet.
It is estimated that by 2050, 85% of the global population will live
in cities. This means that cities must be equipped with appropri-
ate resources to face the social and environmental challenges
of the future. Specifically, they must be capable of reducing en-
ergy consumption, reducing CO2 emissions and enhancing the
well-being of residents.
Furthermore, digitalisation is a key factor in accelerating the
transformation of economies and social models, technologies
like 5G, Cloud, cybersecurity, artificial intelligence (IA), Big Data
or the Internet of Things (IoT) are key parts of this transforma-
tion.
By optimising the potential of technological innovation, it will
be easier to achieve sustainable development goals in terms of
economic growth, environmental conservation and social pro-
gress.
To this end, the FCC Group is committed to the development
and innovation of new technologies that are reflected in signif-
icant investment in R&D&I products undertaken by each Area
to ensure each activity responds appropriately and searches for
innovative solutions that aim to reduce its environmental and
social impact.
It is estimated that the number of IoT devices
In 2030, the virtual reality market could be worth
connected will surpass 75 billion in 2025.
more than 28 billion dollars.
Up to 20 million jobs in the production industry
could be replaced by robots in 2030.
It is expected that the investment in technology
by smart cities will come to 327 billion dollars
in 2025 and will generate business opportunities
worth 2.46 billion dollars.
There are expected to be at least 26 smart cities
en 2025 and that 70% of global investment in
2030 will be made in the USA, Western Europe
sand China.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 7 of 30
_ 56
Increase of public-private collaboration
Public-private collaborations, understood as different forms of
cooperation between public authorities and the business world,
the aim of which is to guarantee funding, construction, renova-
tion, management or maintenance of infrastructures, represent
a real, sustainable option for the future that combine private
efficiency with public supervision and dedication.
Against the volatile backdrop of recovery, in which resources
are limited and the achievement of the Sustainable Develop-
ment Goals is an absolute priority, searching for more efficient
management formulas that act as exponential vectors of inno-
vation appear to be an urgent priority. What’s more, the Eu-
ropean Commission asserts that as part of an economic and
financial crisis, in which the ability of the public treasury to raise
the funds needed and allocate resources to specific projects is
in decline, developing instruments that add shared value, such
as private-public collaborations, is essential.
Private-public collaborations are a genuinely useful tool, as they
offer necessary potential benefits. They allow the long-term
structural development of strategic services and infrastructure,
contributing to the development of competition in the domestic
market, in addition to making it possible to harness the skills of
the private sector and ultimately cooperating to achieve greater
efficiencies, in particular in innovation. This creates a win-win
situation between companies, the Administration and conse-
quently, society, to make it possible to align interests and at the
same time, add the vital experience of the public and private
sector.
Bearing in mind the virtues of private-public collaborations,
the European Union, since the dawn of the 21st century, has
aimed to stimulate positive synergies between the public and
private sectors through this form of cooperation. In particular,
at the present the European Union is particularly committed to
the Next Generation EU (NGEU) programme. The main aim of
this programme is to achieve a resilient post-pandemic future,
transforming our economies and creating opportunities and
employment in Europe by development agile, high-impact pro-
jects that are easy to implement.
In turn, the FCC Group considers private-public collaborations
as a way of joining the necessary forces in terms of funding, de-
signing and implementing national and international infrastruc-
ture projects. From the Group’s perspective, it is essential to
promote real-estate rehabilitation and urban regeneration pro-
jects, water purification and sanitation network projects, public
transport, safe, connected and sustainable mobility, and the
digital and ecological transformation. In this way, the Group
pays particular attention to the implementation of the Recovery
and Resilience Facility (RRF) and internalise the current trend,
with a view to contributing to the reconstruction through its
more than 120 years of expertise.
In 2021, in Europe 40 private-public
The number of projects decreased by just 7%
According to the Spanish government, public
collaborations were undertaken, securing funding
for an aggregate value of 8 billion euros.
In terms of value, the market contracted by 13%
compared to 2020.
compared to 2020, despite a more significant drop
in activity having been forecast on account of the
impact of COVID-19.
The most active markets were Italy in terms of
value and France in terms of number of projects.
investment needs in Spain over the next three
years are expected to come to 6% of GDP per
year, brining the country in line with the ratios of
the most advanced OECD countries (Organisation
for Economic Co-operation and Development).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 8 of 30
_ 57
FCC’s response to the challenges and opportunities posed
FCC Servicios Medio Ambiente
Demographic pressure and concentration of the population in cities
Challenges
Opportunities
1
Managing the waste generated in
cities while protecting the value of
urban ecosystems, requires in-depth
knowledge of the sector to face up
to an increasing population.
FCC Servicios Medio Ambiente is a leading global player in
the collection, storage and treatment of urban and industrial
waste. The company serves more than 60 million people
in almost 5,200 municipalities, managing 24 million tonnes
of waste annually. These capacities put the Environmental
Services Area in a privileged position when it comes to fac-
ing the growth in the waste collection needs of cities. 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.
Climate change and water stress on the global agenda
Challenges
Opportunities
1
Improve architecture and urban
design in light of climate change
and the risks of disasters.
The Environmental Services Area at FCC dedicates a large
part of its efforts to providing municipal services, including
the maintenance of sewerage systems, an activity in which
it has more than 110 years of experience. With a view to
minimising the risk of flooding and the effect of abundant
rainfall, which are increasingly more frequent on account
of climate change, FCC Servicios Medio Ambiente is con-
tinuously introducing environmental and technological im-
provements.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 9 of 30
_ 58
Climate change and water stress on the global agenda (continued)
Challenges
Opportunities
2
Promoting the efficient use of water
and overcoming water stress.
FCC Servicios Medio Ambiente identifies water as a key
factor in performing its activities. To this end, one of the pri-
ority objectives of the organisation is SDG 12 “Responsible
Production and Consumption”, which includes the use of
water resources. Encouraging the rational and efficient con-
sumption of water and promoting the use of this resource
from alternative sources is a priority for FCC Servicios
Medio Ambiente. A number of the actions implemented in-
clude the use of water-efficient machinery and promoting
water saving devices at its facilities.
3
Mitigate the FCC Group’s
contribution to climate change.
FCC Servicios Medio Ambiente works to minimise its con-
tribution to climate change and offer a competitive advan-
tage in the provision of smart and sustainable services. To
this end, it has prepared the 2050 Sustainability Strategy in
which the fight against climate change plays an essential
role, with actions aimed at achieving carbon neutrality, such
as promoting alternative energies in the provision of mu-
nicipal services, harnessing biogas at landfills, converting
waste into electricity or biomethane, or the installation of
solar panels at service facilities, in addition to others.
4
Mitigate the impact that physical
and transition risks related to climate
change may have on the company.
FCC Servicios Medio Ambiente is aware that its services
represent an important pillar for cities during crisis times.
Based on the type of activities performed by this business
area, it must be prepared to face potential adverse weather
events that may occur; to this end, to make the services
offered to citizens adaptive and resilient, it works in line with
the corresponding city contingency plans. Furthermore, dif-
ferent action plans are developed throughout the organisa-
tion with a view to enhancing returns, transversally mitigat-
ing climate events and promoting the Group’s sustainable
development.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 10 of 30
_ 59
The circular and sustainable economy
Challenges
Opportunities
1
Reduce waste generation and
include circularity principles in its
processing and management.
This business area is dedicated to processing and recycling
municipal waste, an activity that is reliant on the European
targets set as part of the Circular Economy Package for
2035. With a dual objective when it comes to recycling:
- 65% of municipal waste.
- 75% of waste packaging.
A binding target has also been set to reduce disposal at
landfills to a maximum of 10% for all waste.
Furthermore, the following initiatives are undertaken:
- Reduction of the volume of waste disposed of at landfills,
by transforming it into resources.
- Development of infrastructures designed to obtain opti-
mum quality from waste and transform it into new prod-
ucts.
- Safe disposal of waste that is impossible to process.
- Production of certified secondary fuel from selected
waste.
- Use of different waste collection methods such as me-
chanical processes, AI equipment and specialist waste
sorting plants.
- Measures for segregating waste.
- Establishing waste minimisation plans.
- Preferable acquisition of vehicles constructed using easi-
ly recoverable elements.
2
3
4
Commitment to adopting a circular
economy system, in line with
national and international objectives.
FCC Servicios Medio Ambiente demonstrates its commit-
ment through initiatives like the LIFE4FILM Project to pre-
vent the incineration and landfill of polyethylene film, apply-
ing innovative recycling technologies.
Furthermore, it has signed up to the Circular Economy Deal,
thus reflecting its commitment to transitioning towards a
more sustainable economic model that is respectful of the
environment.
Awareness raising for the effective
transition towards a circular and
sustainable economy.
This business area’s participation in a wide project portfolio
with a view to promoting the Circular Economy, is worth
particular mention, including the following lines of research:
biomethane, circular economy for plastic, optimising com-
post, creation of new by-products and biomaterials and in-
novation in industrial waste.
Transition to a circular economy
supported by an energy model
based on renewable energies.
FCC Servicios Medio Ambiente contributes to the transition
towards a real circular economy in the wind power industry
by participating in the implementation of wind turbine blade
recycling technologies and increasing recyclability from
85-90% to 100%.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 11 of 30
_ 60
The disruption of new technologies
Challenges
Opportunities
Technological innovations to
guarantee more efficient, sustainable
services.
The Environment Area includes the creation and develop-
ment of innovative technology in its business strategy to
make progress towards the creation of more sustainable,
inclusive cities, with a particular focus on electric mobility,
energy efficiency and the use of alternative energies.
Innovative responses to society’s
new demands.
FCC Medio Ambiente perceives innovation as a catalyst
of progress. In other words, from its perspective, innova-
tion makes it possible to create projects that result in pro-
gress being made to the benefit of society. To this end,
the VALOMASK project is worth particular mention. This
initiative is based on the industrial-scale design of an opti-
mised process to mechanically separate masks, making it
possible to categorise them, classify them, separate them
and, ultimately, recycle them. This project is particularly in-
teresting, as currently, environmental compounds are not
technologically prepared to handle this new form of waste
in a sustainable manner.
The increase of public-private collaboration
Challenges
Opportunities
Enhance the resources that both
sectors can offer to promote
sustainable development, innovation
and research.
From FCC Servicios Medio Ambiente’s perspective, pub-
lic-private collaboration in the sustainable management of
municipal services is essential. As a result, as part of its
2050 Sustainability Strategy, this business emphasises the
need to generate partnerships between the different stake-
holders involved to mobilise and exchange knowledge,
technical capacity, technology and resources. At the same
time, the creation of alliances represents the main pillar in
achieving the commitments established in this strategy.
Harnessing the opportunities for
progress offered by Next Generation
funds.
The Environment Area has managed to obtain European
funds for the H2TRUCK project, the purpose of which is
to develop a 100% electric, heavy-duty chassis fuelled by
a hybrid system consisting of a hydrogen fuel cell and an
ion-lithium battery. This is a veritable success, as the Next
Generation EU funds are considered a cornerstone for
change and FCC has the opportunity to participate in this
transformation.
1
2
1
2
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 12 of 30
_ 61
Aqualia
Population pressure and concentration of the population in cities
Challenges
Opportunities
1
1
2
Creation of infrastructures that
guarantee quality management of
the end-to-end water cycle (capture,
purification, distribution, sanitation,
treatment and reuse) in large cities.
Aqualia, the fourth largest water management company in
Europe and the ninth in the world by population served,
serves nearly 30 million 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 com-
pany’s extensive experience in the design, construction,
financing and operation of treatment plants, as well as its
commitment to developing innovative technologies, posi-
tion Aqualia as a company that can provide solutions that
ensure access to water and its quality in the cities of the
future.
Climate change and water stress on the global agenda
Challenges
Opportunities
To guarantee access to water, in
quantity and quality, for a growing
population, taking measures that
protect the resource.
Aqualia, as an international leader in the end-to-end water
management 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 distribu-
tion network to minimise losses throughout the end-to-end
water cycle and implements awareness-raising measures
to promote responsible consumption.
Facilitate access to water in
developing countries, as well as
develop desalination, treatment
and purification technologies that
respond to the needs of population.
In countries where the availability of fresh water is limited
and is increasingly threatened by climate change, Aqualia
develops desalination solutions that meet the needs of local
populations, as well as projects with very different water
needs, so technological innovation is key to improving effi-
ciency in the use of water.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 13 of 30
_ 62
Climate change and water stress on the global agenda (continued)
Challenges
Opportunities
Mitigate the FCC Group’s
contribution to climate change.
Aqualia assumes a commitment to fighting the effects of
climate change and promoting different initiatives aimed at
reducing water consumption, optimising energy, reducing
emissions, transferring R&D&I projects into production and
restoring the ecosystem.
Transition to a circular economy
supported by an energy model
based on renewable energies.
Aqualia is committed to green hydrogen for promoting a
sustainable, decarbonised economy.
gies to generate green hydrogen, with a view to improving
the environmental sustainability of industry in Spain.
Furthermore, it has developed projects (Zeppelin and Eclo-
sion) structured around the development of new technolo-
Finally, it promotes energy generation via the management
or the municipal water cycle.
Promote circularity by optimising
raw materials, extending their useful
life and encouraging their reuse.
This business encourages obtaining added value products
as part of water treatment processes and implementing
agreements in the value chain for the reuse of products. It
is also committed to using alternative resources to water.
Reduce waste generation and
include circularity principles in its
processing and management.
Aqualia, through its Life Intext project, employs innovative
technologies to recover water resources and control the
wastewater flows and characteristics.
It also includes measures for recovering sludge, mainly put
to agricultural use or for composting.
Commitment to adopting a circular
economy system, in line with
national and international objectives.
Like the other business areas, Aqualia has signed up to the
Circular Economy Deal, reflecting its commitment to transi-
tioning towards a more sustainable economic model that is
respectful of the environment.
3
4
5
6
7
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 14 of 30
_ 63
The disruption of new technologies
Challenges
Opportunities
1
Technological innovations to
guarantee more efficient, sustainable
services.
The Group’s water business strives to serve set the bench-
mark in the industry when it comes to innovation. To achieve
excellence in this field, it has increased its presence in stra-
tegic forums, fairs and debates in the water sector. It has
also expanded its presence in international initiatives and
collaborations with universities and educational institutions.
The investment being made by Aqualia in technological de-
velopment aims to improve the efficiency and competitive-
ness of services; implement digitalisation services in man-
agement projects, communications and operations from a
humane, environmentally friendly perspective; and promote
more sustainable, social and connected towns and cities
with a priority purpose: offering a better service to residents.
The modular, integrated platform, Aqualia Live, houses all
the digital services offered by the company, converting in-
formation into knowledge via what is known as big data and
sound computing.
2
Innovative responses to society’s
new demands.
An example of the innovative vision that Aqualia is known
for is the Advisor project at the Guijuelo treatment plant
(Salamanca). As part of this biofactory project, the waste
generated by the agri-food industry is treated together with
the sludge from the plant and is transformed into energy,
biofuels, bioplastics and biofertilisers. As a result, the 3,000
tonnes of biowaste processed by the biofactory are con-
verted into sustainable biofuel for supplying 50 vehicles.
The increase of public-private collaboration
Challenges
Opportunities
1
Enhance the resources that the
public and the private sector
can offer to promote sustainable
development, innovation and
research.
From Aqualia’s perspective, public-private collaboration fa-
cilitates the development of infrastructures and public ser-
vices that, for specialisation, budget or internal organisation
reasons, the Administration is unable to handle, contribut-
ing to the sustainability of the service. Aqualia has such col-
laborations in place in 22 countries.
Furthermore, with a view to enhancing technological re-
search, Aqualia creates partnerships with universities and
research centres to promote the development and appli-
cation of key technologies. An example of this can be seen
in the agreement entered into between the Autonomous
University of Madrid and Aqualia for the early detection and
treatment of toxic cyanobacteria.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 15 of 30
_ 64
The increase of public-private collaboration (continued)
Challenges
Opportunities
2
Increase the market share in
external public markets.
Each year, the Water Area of the FCC Group, through its
subsidiary on the Arabian peninsula, handles concession
and operating and maintenance agreements, which, for the
most part, are concessional in nature, in response to pub-
lic-private collaboration models. Thanks to these ventures,
the business enhances and increases its presence in the
region, serving six million residents.
3
4
Harnessing the opportunities for
progress offered by Next Generation
funds.
During 2021, Aqualia submitted a series of projects to the
Spanish authorities with a view to receiving funding in the
form of the European Next Generation funds for the ap-
proximate sum of 434 million euros.
Responding to the needs and
uncertainties of the surroundings in
which Aqualia operates
To this end, particular mention must be made of the ac-
knowledgement received by Aqualia and IESE Business
School from the United Nations in relation to reports on
the purification plant in New Cairo (Egypt) and water sup-
ply in El Realito (Mexico). These projects are in the UN
Top 20 when it comes to public-private collaboration and
post-pandemic reconstruction. Furthermore, both studies
have been classed as “People First PPPs” on account of
their contribution to social integration and development.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 16 of 30
_ 65
FCC Construcción
Population pressure and concentration of the population in cities
Challenges
Opportunities
1
2
Creation of sustainable cities,
guaranteeing mobility and interurban
connection, which will require the
development of more complex
urban infrastructures.
FCC Construcción contributes more than 120 years of ex-
perience in executing large-scale international infrastruc-
tures, demonstrating a great capacity for managing public
interest projects that are unique and with a high degree of
specialisation. The company undertakes its projects apply-
ing the highest standards of quality and innovation to en-
sure that the design and implementation of infrastructures
is efficient when it comes to the consumption of more sus-
tainable and resilient materials and resources.
Invest in quality and sustainable
materials that meet new
infrastructure needs, providing
greater durability and resilience and
making them more sustainable.
At FCC Construcción, constant innovation in the use of ma-
terials represents an increase in efficiency and a clear com-
mitment to the circular economy, in which the company is
a pioneer. The Life Cycle Analysis (LCA) of project elements
is a fundamental factor to bear in mind, both when building
new infrastructures and when adapting existing infrastruc-
tures. As a result, at FCC Construcción, innovation and
technology are strategic aspects; therefore, they are en-
couraged to provide improved and more sustainable con-
struction solutions, both for residential and non-residential
buildings and infrastructures. Furthermore, FCC Construc-
ción is committed to innovation in encouraging the use of
new sustainable and reusable materials; harnessing recov-
erable elements and using recycled materials.
Climate change and water stress on the global agenda
Challenges
Opportunities
1
Improve architecture and urban
design in light of climate change and
the risks of disasters.
FCC Construcción develops resilient infrastructures and
promotes the design of urban solutions adapted to the
consequences of climate change and gives due considera-
tion to the possible physical risks of adverse meteorological
phenomena.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 17 of 30
_ 66
Climate change and water stress on the global agenda (continued)
Challenges
Opportunities
2
Mitigate the FCC Group’s
contribution to climate change.
FCC Construcción works to mitigate its contribution to cli-
mate change. For this reason, the company has launched
various initiatives on its path to sustainability such as ap-
proving the Climate Change Strategy for 2050, the imple-
mentation of energy efficiency measures, reduction of ener-
gy consumption, fuel replacement, promotion of renewable
energies, equipment renewal, energy use of waste or car-
bon footprint registration, among others. Likewise, FCC
Construcción develops different R&D projects and give
training sessions to raise awareness, encouraging partici-
pation in working groups on innovation and climate change.
FCC Construcción develops specific measures to improve
its energy efficiency from the design phase of its projects,
applying best practices that reduce the consumption of
energy and use cleaner resources; reducing carbon emis-
sions, both during the construction and operation of infra-
structure by using less intensive processes when it comes
to greenhouse gas emissions. All of this with a view to miti-
gating its contribution to climate change.
FCC Construcción continues working in alignment with
the Group to decrease greenhouse gas emissions and has
achieved its target of verifying 100% of its activity under ISO
14064 on GHG emissions.
Furthermore, FCC Construcción considers training as a
powerful tool in the fight against climate change; therefore,
it encourages training sessions delivered to its employees in
relation to climate change and environmental sustainability
to raise awareness and encourage sustainable practices.
3
Mitigate the impact that physical
and transition risks related to climate
change may have on the company.
FCC Construcción is aware that its activity is exposed to
climate-change related risks and therefore, different action
plans are drawn up depending on the type of activity per-
formed. Bearing in mind the possible impacts related to
climate change on the company’s operations, it focusses
its efforts on being part of the solution and maintaining its
leadership in the development and management of infra-
structures. Its aim is to enhance profitability, transversal-
ly mitigate the impact of climate events and promote the
company’s sustainable development.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 18 of 30
_ 67
The circular and sustainable economy
Challenges
Opportunities
1
Reduce waste generation and
include circularity principles in its
processing and management.
The Construction Area pursues six areas of action defined
in the ReSOLVE framework (Replace, Regenerate, Digital-
ise, Share, Optimize and Close the circle).
Furthermore, this area performs different waste manage-
ment actions in line with circular principles:
- Reuse of inert materials, effluents and process wastewa-
the
recently obtained certification under
It
“Zero
Waste” management traceability system, awarded by
AENOR. As a result, the company has become the first con-
struction company to receive this recognition, reflecting the
implementation of an internal traceability system in waste
management that ensures its recovery and prevents waste
being sent to landfill. The pilot project as part of which this
initiative has been applied prevented 99% of waste gener-
ated as part of construction work being sent to landfill.
ter.
- Harnessing of recoverable elements and use of recycled
materials.
- Use of packaging returnable to the provider.
- Segregation of of waste generated.
- Request of materials with packaging returnable to the
provider or in bulk.
- Management of excavation waste or recovery of debris.
2
Promote circularity by optimising
raw materials, extending their useful
life and encouraging their reuse.
The Construction Area is a pioneer in its commitment to
innovation, encouraging the use of more sustainable, resil-
ient and reusable materials and promoting the responsible
consumption of materials.
The disruption of new technologies
Challenges
Opportunities
1
Adapt technology, processes and
equipment to the future needs of
customers and society as a whole.
The FCC Group’s Construction Area steers its efforts to-
wards developing new technologies in the fields of artifi-
cial intelligence, Big Data and digital DIM or Blockchain
technologies. The Construction Area recently published
its BIM-Digital Construction Implementation Plan for 2022-
2025.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 19 of 30
_ 68
The increase of public-private collaboration
Challenges
Opportunities
Harnessing the opportunities for
progress offered by Next Generation
funds.
FCC Construcción emphasises the importance of the surge
in infrastructure programmes both in Spain and abroad, as
well as the appearance of different funds and lines of fund-
ing, as key pillars for supporting the post-pandemic recov-
ery. To this end, the Next Generation programme and other
European funds are an valuable opportunity for growth and
contributing to the economic recovery of the country to
achieve a net improvement in infrastructures.
Adapt technology, processes and
equipment to the future needs of
customers and society as a whole.
The design and construction of a new university based on a
public private partnership, headed up by the Construction
Area, will provide university services to a total of 10,000
students in Dublin (Ireland). This project demonstrates the
opportunity for progress posed by public private collabora-
tions, thus representing a firm step forwards towards the
development of the local community where the company
operates.
1
2
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 20 of 30
_ 69
Cementos Portland Valderrivas Group
Population pressure and concentration of the population in cities
Challenges
Opportunities
1
Invest in quality and sustainable
materials that meet new
infrastructure needs, providing
greater durability and resilience and
making them more sustainable.
Cementos Portland Valderrivas is a leading producer of
high-quality products adapted to the needs of its custom-
ers and each construction project. It is committed to inno-
vation with a view to improving the quality and increase the
range of its products’ qualities.
Climate change and water stress on the global agenda
Challenges
Opportunities
1
Mitigate the FCC Group’s
contribution to climate change.
The Spanish cement sector has become a key player in the
ecological transition and has the capacity to contribute to
the achievement of national climate neutrality targets. To
this end, roadmaps have been drawn up to decrease CO2
emissions in order to achieve climate neutrality in 2050. The
CPV Group assumes the fight against climate change as
one of its main challenges in the coming years and imple-
ments, through strategic sectoral lines, specific measures
to reduce greenhouse gases.
To this end, the CPV Group focusses its efforts on increas-
ing the renewable energy mix, at solar or wind power plants,
and increase the consumption of plant biomass in the pro-
duction of clinker, whose emissions are lower per tonne of
cement manufactured. The replacement of raw materials
and waste recovery in the Cement Area help to prevent the
emission of hundreds of thousands of tonnes of CO2.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 21 of 30
_ 70
The circular and sustainable economy
Challenges
Opportunities
1
Transition to a circular economy
supported by an energy model
based on renewable energies.
Cementos Portland Valderrivas is committed to the circular
economy model through energy recovery in cement pro-
duction. An example of this can be seen in the implemen-
tation, at 90% of its factories, of new facilities that make it
possible to replace fossil fuels with biomass, thus reducing
CO2 emissions. The aim of these facilities is to reduce net
GHG emissions by 40%, thus contributing to reducing the
impact generated on the environment and reducing effects
related to climate change.
Furthermore, a focus is placed on the energy use of
waste-derived fuels in clinker kilns to reduce the CO2 foot-
print from fossil origins, helping to recover energy that
would otherwise be buried.
2
3
Promote circularity by optimising
raw materials, extending their useful
life and encouraging their reuse.
This business promotes replacing natural raw materials
for fully or partially decarbonated raw materials to reduce
emissions in the production of clinker, with secondary raw
materials employed in different phases of the production
process.
Reduce waste generation and
include circularity principles in its
processing and management.
The CPV Group is committed to energy and waste recov-
ery, thus avoiding sending them to landfill, replacing the use
of fossil fuels with alternative fuels, such as biomass.
It is also committed to recovering waste obtained from
by-products of other industries, using them to produce
crude oil for the production of clinker and in the production
of cement, as an addition to clinker, without affecting its
quality.
4
Awareness raising for the effective
transition towards a circular and
sustainable economy.
This division undertakes awareness campaigns involving
stakeholders in relation to sustainability and the circular
economy.
The CPV Group also ensures that the waste generated at
our factories is managed accordingly, prioritising the pre-
vention of segregation of waste to be stored until it is ulti-
mately handled by an authorised manager, with preference
given to recycling, reuse and/or recovery before it is ulti-
mately sent to landfill.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 22 of 30
_ 71
The disruption of new technologies
Challenges
Opportunities
1
Technological innovations to
guarantee more efficient, sustainable
services.
The Cement Area innovates developing new technologies
in the production of material, such as cement, concrete,
aggregates and mortar, with a view to extending the useful
life of infrastructures and improve mechanical features and
durability.
The increase of public-private collaboration
Challenges
Opportunities
1
Enhance the resources that both
sectors can offer to promote
sustainable development,
innovation, research and
development.
Aware of the potential that public-private associations may
have, and with a view to making activities progressively
more sustainable, the cement business has undertaken dif-
ferent initiatives to restore biodiversity in quarries, in coop-
eration with public institutions and social agents.
Given their activities, businesses in the construction mate-
rials sector are more exposed to biodiversity-related risks.
However, the Cementos Portland Valderrivas Group views
this challenge as an opportunity to demonstrate its com-
mitment to the environment and create long-lasting part-
nerships.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 23 of 30
_ 72
FCC Inmobiliaria
Population pressure and concentration of the population in cities
Challenges
Opportunities
1
Contribute to the efficient use
of available urban land, smart
designing its uses and properties,
in line with growth expectations and
the future needs of residents, in
harmony with preserving the urban
environment.
Undertaking land development and position management
that helps to get the most out of the growing scarcity of
available space, thus avoiding poor land planning, which
fails to respond to the needs of inhabitable and sustainable
spaces for the growing concentration of the population and
demand trends in terms of alternative or multipurpose use.
Ensuring the compatibility of property development and
use, facilitating its coexistence with the environment and
green spaces, which are scarce and necessary to preserve
and improve the quality of life in major cities.
Climate change and water stress on the global agenda
Challenges
Opportunities
1
To guarantee access to water, in
quantity and quality, for a growing
population, taking measures that
protect the resource.
FCC Inmobiliaria is committed to building progressively
more sustainable properties. In this connection, it pursues
greater awareness of sustainability with a view to safe-
guarding natural resources and improving the quality of life
of residents. An example of this can be seen in the use of
water saving systems in properties, which not only cre-
ates environmental benefits, but also social and economic
benefits.
Inclusion of a pioneering water management system in the
province of Valencia (Spain) as part of one of its proper-
ty developments, known as a “storm tank”, which allows
rainwater to be recycled and prevent the risks created by
flooding as a result of strong rainfall.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 24 of 30
_ 73
2
3
1
2
Climate change and water stress on the global agenda (continued)
Challenges
Opportunities
Improve architecture and building
design in light of climate change and
the risks of disasters.
The Real-estate Area is fully committed to promoting and
managing properties that satisfy sustainable construction
principles; as regards the environment, use of low-impact
materials throughout the life cycle and inclusion of ener-
gy efficient materials and designing buildings adapted and
updated to the European regulations on fighting climate
change.
Contribution of FCC Inmobiliaria to
mitigating climate change.
The Real-estate Area has committed to including renewable
energy production systems such as aerothermal technolo-
gy for heating, cooling and domestic hot water, in addition
to heating and cooling distribution systems and underfloor
heating, using automation control, as a critical aspect in
different properties, not only on account of the comfort they
offer, but also on account of their environmental factor, as
by installing these systems, it is possible to optimise energy
consumption and thus generate reductions and savings.
Use of 100% recyclable composite prefabricated materials
that help to reduce water consumption and waste on con-
struction sites.
Circular and sustainable economy
Challenges
Opportunities
Adaptation of holistic
decarbonisation, energy efficiency
and circular economy strategies that
encompass all phases of the life
cycle.
FCC Inmobiliaria was constituted with a view to developing
sustainable properties that are respectful of their surround-
ings and the environment.
An example of this is the exclusive use of FSC (Forest Stew-
ardship Council) certified wood.
Compliance of international
objectives for real-estate companies
in relation to the circular economy
and reducing contamination.
At FCC Inmobiliaria we are committed to responsibly using
such important resources like water and actions that con-
tribute to respecting and caring for the environment and
the planet we live on. We strive to create property devel-
opments that include water-saving systems in properties to
ensure responsible consumption, such as installing grey-
water reuse systems or flow reducers on taps.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 25 of 30
_ 74
Circular and sustainable economy (continued)
Challenges
Opportunities
3
Invest in quality and sustainable
materials that meet new
infrastructure needs, providing
greater durability and resilience and
making them more sustainable.
At FCC Inmobiliaria, the pursuit of our customer’s satisfac-
tion represents a fundamental pillar. There is a growing con-
cern amongst consumers that the materials used are more
sustainable and therefore, more resistant and hard wearing
in their homes and other properties; therefore, the Real-es-
tate Area is committed to innovation, sustainability and so-
cial responsibility in homes, contributing to a world that is
progressively more respectful of society and the environ-
ment. To this end, FCC Inmobiliaria uses materials that are i)
prefabricated, reducing water consumption and generating
less waste, ii) more resilient, hard wearing and sustainable,
100% recyclable on façades and iii) save energy (SATE ex-
terior thermal insulation systems, LED lighting, dry work).
The disruption of new technologies
Challenges
Opportunities
1
Technological innovations to
guarantee more efficient, sustainable
services.
ESG (Environmental, Social, Governance) challenges are
progressively more important as part of the reporting of
real-estate companies, with prudent data management
particularly significant. In response to this reality, the com-
pany will face this challenge focussing its efforts on efficient,
proper management of data and creating robust techno-
logical solutions.
Implementation of automation to make it possible to digital-
ly manage properties remotely for the purposes of climate
control, motorisation and smoke detector, flood and intru-
sion alarm management.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 26 of 30
_ 75
FCC Strategy:
focus on profitable
growth
Over its more than 120 years of history, FCC has demonstrat-
ed sufficient resilience to overcome all of the difficulties it has
come up against. This resilience is anchored in three main com-
ponents: our leadership position in the different businesses;
sustainability as a source of income, focussed on the circular
economy and water; and the strength of its balance sheet and
shareholder structure.
The value creation model at the FCC Group aims to promote
the sustainable evolution of cities, positioning itself at the cutting
edge of its competitive environment, based on the following dif-
ferential features of our own personality, which we use as a sup-
port for creating value: quality and innovation; integrity in its
actions; financial discipline and efficient management; and
proximity and commitment.
VALUE CREATION LEVERS
Quality and innovation
Financial discipline and management efficiency
FCC is an operator that has significant experience in these busi-
ness Areas, with a differentiated technical specialisation, able to
lead large consortia in complex projects. Furthermore, it has a highly
specialised and committed human team numbering almost 60,000
professionals, who prioritise protecting health and safety and who
are capable of providing innovative solutions and taking care of im-
proving people’s lives on a daily basis.
With the aim of preserving long-term profitability and sustaina-
ble 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.
Integrity in its actions
Nearby and commitment
The Group’s Code of Ethics and Conduct establish everyone’s
commitment to the environment and people, respect for rights and
dignity, and demonstrating zero tolerance against discrimination
for reasons of race, religion or gender. Likewise, the Compliance
Model ensures that all the Group’s companies and employees are
governed in accordance with the principles established in the Code
of Ethics and Conduct, while strengthening internal control so as
not to incur in any criminal breach. This Model includes elements
such as the Crime Prevention Manual, crime/risk/control matrices,
Model supervision and certification procedures and a Whistleblow-
ing Channel for communicating potential breaches.
Having a local roots in the places where its operations are car-
ried out, allowing it to develop relationships of trust. FCC seeks
to create value in the communities where it is present, favouring
transforming societies into healthy, inclusive and cutting-edge
environments.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 27 of 30
_ 76
Strategic vectors of the FCC Group
The FCC Group and its businesses focus their strategy on:
Maintain leadership in key markets
• Strengthen their competitive position in key markets in
which it is currently present.
• Selective growth in new markets that are attractive and
aligned with the corporate culture and risks of the company.
Furthermore, promoting sustainable development has been
and will remain one of the Group’s strategic vectors by:
• Promoting the construction and management of sustaina-
ble, resilient infrastructures.
• Promoting the circular economy and harnessing the efficient
use of water.
• Mitigating and adapting the FCC Group 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 and products, which allows it to retain
a competitive 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 of pro-
ject, which translates into a sustained increase in the Group’s
different key geographical areas.
Likewise, FCC intends to be a partner to its customers, es-
tablishing long-term relationships, providing guarantees and the
reliability of a big leading company, while also remaining local
and focused in the long-term on each of the regions where it
operates.
The Environment Area, in the countries where it is present,
operates against a backdrop of a sector under transformation,
mainly due to the environmental requirements of each coun-
try, such as the European Directives with relation to the circular
economy and climate change.
The strategy in Spain is focussed on maintaining competitive-
ness and leadership position, combining technical knowledge
and the development of innovative technologies, offering re-
spectful, inclusive and sustainable services (such as the fight
against climate change and reduction of the carbon footprint).
Furthermore, the aim is to harness potential opportunities gen-
erated by stricter regulations and new services (for example,
those associated with smart cities).
FCC focusses its efforts
on ensuring quality and the
continuity of its products
and services in the countries
in which they are present
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 28 of 30
_ 77
In the EU, specifically in Portugal, there are opportunities in
terms of soil decontamination and municipal cleaning contracts.
In Central Europe, there is expected to be an increase in oppor-
tunities related to the circular economy, mainly in Poland and
Slovakia. Furthermore, in 2021, worth particular mention was
the award of a contract to FCC Environment CEE for municipal
waste transport and processing by the Waste Processing Asso-
ciation of Western Tyrol.
While in the UK, activities are returning to pre-pandemic levels
and opportunities are arising in relation to the country’s ambi-
tious circular economy programme.
Furthermore, the Area is looking to consolidate its position in
markets like the US A. In this line, worth particular mention in
2021 was the acquisition by FCC Environmental Services of
Premier Waste Services en Dallas (Texas), dedicated to the col-
lection of tertiary waste in this Area, in addition to new awards
by Wellington City Council and Hillsborough County (Florida).
The Water Area seeks to maintain its competitive position in
end-to-end water management cycle markets in which it has a
consolidated presence (Europe) and to take advantage of op-
portunities that arise in this activity. In this sense, worth par-
ticular note is the 2021 purchase, completed in February of
this year, of 80% of the water activity of Georgia Global Utilities
(GGU) for 180 million dollars or the award of the water supply
management for 16 towns in Mantes-la-Ville (France).
In Spain, the concession renewal rate is expected to remain
similar to the rate seen in 2021, above 90%, with the same
expected for new awards across the country. In Portugal, it is
expected that the concessions business will resume somewhat
following the legislative elections held in 2019 and in France, it
is expected that new tenders will be held for the delegation of
public services. Furthermore, it is expected that there will be
multiple water infrastructure opportunities in Saudi Arabia, Mex-
ico, Colombia and Peru.
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 afford access
to a selective portfolio of projects that ensure profitability and
cash flow generation for the company. Furthermore, the teams
at FCC Construcción have the experience, technical knowledge
and innovation to participate in the entire value chain of pro-
jects, from their definition and design to execution and subse-
quent operation.
It is worth highlighting the key position of the company in for-
eign markets, which accounted for 47% of income in 2021,
with large projects underway in Saudi Arabia, Belgium, Mexico,
Peru, Colombia, Chile, the Netherlands and Romania, among
others. Also notable is the progress made in the future posi-
tioning of markets with a strong pipeline of infrastructure invest-
ments, with countries like the United States and Canada worth
particular mention.
The Cement Area seeks to maintain its competitive position in
both operational efficiency and the markets in which it opera-
tors, with a view to remaining a benchmark for the sector in the
countries where it is present.
In 2021, increases in official tenders and building licenses in
Spain saw cement consumption increase by 11%. Looking to
2022, growth of between 3% and 5% is expected, taking the
figure past 15 million tonnes. In Tunisia, the significant internal
instability has seen consumption remain at a minimum low and
modest growth in the domestic market is expected in 2022.
Finally, the Real Estate Area, through FCC Inmobiliaria, aims
to consolidate a solid, larger group, with greater management
efficiency as a result of operating and financial synergies, which
makes it possible to harness the growth opportunities provided
by the sector. Furthermore, the aim is to considerably increase
the contribution to the recurring equity activity in Realia and Jez-
zine across FCC Inmobiliaria as a whole.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 29 of 30
_ 78
Selective growth in new markets
Each of the FCC Group business Areas 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 estab-
lish 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.
At 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 ourselves
as key players in the circular economy.
This Area remains immersed in a complex process, the ultimate
aim of which is to replace the straight-line production mod-
el with a circular model that reintroduces waste material into
the production process, supported by a high level of technical
knowledge and the development of new innovative technolo-
gies. In terms of new markets, initially, the company will con-
tinue to expand and consolidate its position, mainly in the U
S by increasing the number of residential contracts it has and
promoting commercial collection activity.
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 expe-
rience in the end-to-end water management cycle in business
opportunities that may arise in countries with a stable political
and social climate.
At FCC Construcción, internationalisation was reflected in
2021 with the award of different contracts. Special mention
must be made of the award of the contract to construct the
RV-555 highway in Sotra (Norway), with a budget of 431 mil-
lion euros, and the Puente Industrial in Chile, with a budget of
approximately 125.6 million euros. Furthermore, in 2022 it is ex-
pected that at an international level, major infrastructure works
will be undertaken that were awarded between 2019 and 2021
and that maintain the contribution of markets in the Americas
(Mexico, Chile, Peru, Colombia) and Europe (mainly the Nether-
lands, United Kingdom and Romania) stable, in addition to the
new positioning in places like the United States and Canada,
with good news expected in the near future.
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. To this end, the Group will continue developing its poli-
cies to seek efficient and optimal investments, as well as adapt-
ing all organisational structures to the situations in the countries
where it operates.
Finally, FCC Inmobiliaria aims to diversify risk and geograph-
ic opportunities to expand its activities to new operating areas
where it currently does not boast a presence. To this end, in
2022 it aims to continue promoting its three business lines at a
national level: leasing offices and shopping centres, residential
developments for sale and, in particular, property development
for lease.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 FCC _ Annual Report 2021 | Strategy and value creation | Response to future challenges | Page 30 of 30
_ 79
In 2021, the FCC ESG Framework
was drawn up, which constitutes
an analysis and study of the
company for the coming years,
which will be reflected in the
Group’s 5th Plan known as
“ESG Plan for 2025”
Contribution to sustainable development
Throughout its more than 120-year 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.
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. With activities in more than 25
countries, the Group strives to improve people’s quality of life,
responding to their expectations and needs of the area in which
they live.
Its consolidated experience as a committed company has
meant its business can continue to share value transversally,
through its strengths. In this sense, and intertwined in the FCC
Group’s general strategy, its sustainability strategy is structured
around the Corporate Social Responsibility Policy, ap-
proved in 2016 by the Board of Directors.
In 2021, the FCC ESG Framework was undertaken, consisting
of a preliminary analysis and study of the company’s Sustain-
ability strategy for the coming years, which is reflected in the
Group’s 5th Plan known as the “ESG Plan for 2025”, with our
sights set on the targets, challenges and goals of the global
strategies, the 2030 Agenda and the 2050 horizon.
To prepare the FCC ESG Framework, we have focussed on
the demands and expectations of the company’s stakeholders,
in addition to the regulations and macrotrends, in addition to
considering the main conclusions drawn at the end of the CSR
Master Plan for 2020, etc. The FCC ESG Framework is the
starting point for steering the future of the FCC Group’s activi-
ties in relation to ESG criteria, with a focus aligned with, interna-
tionally, the 2030 Agenda, the European Green Deal, the Paris
Agreement and the European Climate Law and, nationally, the
Companies and Human Rights Action Plan or the Recommen-
dations of the Code of Good Governance, in addition to others.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report124A1A2A3Business lines5Strategyand value creation3 _ 80
4
FCC in 2021
Highlights of the year 2021 _ 81
Key figures _ 83
FCC _ Annual Report 2021Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | FCC in 2021 | Highligts 2021 | Page 1 of 2
_ 81
Highlights of the year 2021
January
FCC Medio Ambiente reinforces its presence in the
East of Spain with the waste collection and street
cleansing contract in Elche (Alicante, Spain).
FCC Medio Ambiente's ie-Urban wins Spain's Ecological
Industrial Vehicle of the Year 2021 award (Spain).
FCC Environment achieves five-star grading in the
British Safety Council’s Occupational Health and
Safety Audit (United Kingdom).
FCC Environment´s waste collection and street
cleansing contract in the Sousa Valley starts
operations (Portugal).
The Mar de Alborán desalination plant is a technical
and management challenge and becomes the first
large water production infrastructure owned by
Aqualia in Spain.
FCC Construction awards the European PPP
Deal of the Year award for the A465 project in
Wales, United Kingdom.
GCPV has unleashed renewable energy
projects in all its factories with the aim of
installing solar and/or wind power generation
plants, as well as increasing the use of
vegetable biomass when producing clinker.
Beginning of the delivery of keys of the Realia
“Essència de Sabadell Phase I” development.
73 homes in Sabadell (Barcelona, Spain).
March
The Environmental Compound of the East
Madrid Municipalities Association starts
operations (Madrid, España).
FCC Medio Ambiente presents its new
Sustainability Strategy 2050 (Spain).
FCC Medio Ambiente renews the contract
for waste collection with the Municipalities
Association for the region of Pamplona.
Aqualia is selected to operate and
maintain the desalination plant and the
drinking water distribution system in the
Jizan industrial area, in southwestern
Saudi Arabia.
The Minister for Infrastructure and Water
Management of the Netherlands visits the
A9 Badhoevedorp-Holendrecht project.
GCPV encourages participation in sports
through donations to local entities close
to its factories.
Start of marketing of the FCC Real Estate
“Bôrea Portablanca” development.
144 homes in Arroyo del Fresno in
Mirasierra (Madrid, Spain).
May
FCC Medio Ambiente renews the contract
for waste collection and street and beach
cleansing in Mataró (Barcelona, Spain).
FCC Environment receives double
accolade at the International Institute
of Risk and Safety Management (IIRSM)
Excellence Awards 2021 (United
Kingdom).
FCC Environmental Services reinforces
its presence in Florida with a new
contract in the Village of Wellington
(USA).
Aqualia expands its presence in Mexico
after being awarded the comprehensive
improvement project for the Los Cabos
supply network, in Baja California Sur.
The contract includes the modernisation,
equipping, operation and maintenance of
the hydraulic infrastructures for 10 years.
FCC Construction celebrates the
30th anniversary of the conclusion of
the first High Speed station in Spain.
Start of marketing of the Realia “Essència
de Sabadell Phase II” development.
55 homes in Sabadell (Barcelona, Spain).
February
The Spanish Red Cross is thankful for the
commitment and social work of the FCC Group
in times of the pandemic.
FCC Medio Ambiente renews the contract for
waste collection, street cleansing and sewerage
maintenance in Cornellà de Llobregat
(Barcelona, Spain).
FCC Medio Ambiente reinforces its commitment
to Barcelona with a new contract for waste
collection and street cleansing (Spain).
Group
Infrastructures
Environment
End-to-end water
management cyle
Cement
Real Estate
Renewal of the Solidarity Fund Agreement with
the Chipiona City Council and Aqualia for the
allocation of 10,000 euros to pay water, sewage,
discharge and purification bills for people with
economic difficulties.
FCC Construction completes the contract to
modernise the take-off and landing runway at
Bacau airport in Romania.
Expert handling systems have been implemented
in our facilities to achieve greater efficiency in the
processes involved when producing the products.
Start of marketing of the FCC Real Estate
development “Buenavista Tres Cantos Phase IV”.
30 houses in Tres Cantos (Madrid, Spain).
April
FCC Corporate Services obtains the ISO
45001 certification that endorses its
occupational health and safety management.
The First StepbyWater Conference places
water as a key element in Europe's ecological
transition.
FCC renews its commitment to the Diversity
Charter.
FCC Construction completes the "Airbus Futura
Campus" in Madrid.
FCC Medio Ambiente honoured with the
Distinction for Equality at the Company
(Spain).
FCC Environment reinforces its presence in
the UK with the contract for food waste and
recycling collection in East Lothian (Scotland).
FCC Ámbito participates in a wind-turbine
blade recycling project to promote circular
economy (Spain).
FCC Construction completes the design and
construction contract for two buildings of Dublin's
Institute of Technology (DIT) higher education
centre on the Grangegorman campus in Ireland.
AENOR grants the "Certificate of Compliance with
the Production Control of Concrete Manufactured
in the Plant" to our plants in Spain.
Start of marketing of the FCC Real Estate
development “Residencial El Bercial”. 40 homes
in Getafe (Madrid, Spain).
June
FCC Medio Ambiente is awarded the
contract for the refurbishment and operation
of the Valladolid Environmental Centre
(Spain).
FCC Medio Ambiente first entity in the sector
to join the Corporate Network for LGBTI
Diversity and Inclusion (Spain).
FCC Medio Ambiente honoured at the IV
Diversity and Inclusion Awards for Best
practice in labour inclusion by the 4th CSR
Master Plan 2018-2020 (Spain).
FCC Environmental Services reinforces its
leadership position in Florida with a contract
in Hillsborough County (USA.
A report on the detection of COVID-19 in
wastewater wins the 5th Aqualia Journalism
Award.
FCC Construction completes the excavation
work for the tunnel that will join the streets
Bailén and Ferraz, included in the reform of
Plaza de España in Madrid, Spain.
The Group, and its social representatives
and key unions began negotiations for the
Collective Agreements and the Second Equality
Plan that will regulate labour relations in the
coming years.
Start of work on the Valaise subsidiary
development VPPL homes BtR Plot 1.4B.
43 homes in Tres Cantos (Madrid, Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | FCC in 2021 | Highligts 2021 | Page 2 of 2
_ 82
July
The FCC group receives the "COVID-19 Stars"
award from FESBAL for their involvement and
commitment during the health crisis.
FCC Environmental Services obtains Gold Glass
certification for its Dallas and Houston recycling
facilities in the USA.
FCC Environment expands its activities to the West
Tyrol region (Austria).
FCC Ámbito awarded the glass management
contract by Ecovidrio for the Autonomous Regions of
Aragón, La Rioja, Valencia and the provinces of Ávila
and Segovia (Spain).
Aqualia presents its Dénia Technology Centre
(Alicante), based on fully digital management, which
makes the Municipal Water Service a national
benchmark. The control centre unifies all water
management onto a single platform, which can
control 571 million pieces of data per year. In
addition, it has enabled the greatest implementation
of remote meter reading in Spain (96%).
GCPV donates baby food and nappies to the social
services of the City Council of Alcalá de Guadaíra
(Seville, Spain) and joins the "Ultreya" solidarity
movement to help families and local business in
the municipality.
Start of marketing of the Realia “Glòries Bcn”
development. 47 homes in Poblenou (Barcelona,
Spain).
Start of marketing of the Realia “Parque del
Ensanche Phase II” development. 80 homes
in Alcalá de Henares (Madrid, Spain).
Commencement of work on the Valaise subsidiary
development VPPL homes BtR Plot 2.1. 152 homes
in Tres Cantos (Madrid, Spain).
Start of works on the Glòries Bcn development.
47 homes (Barcelona, Spain).
Realia Patrimonio sells a 9,200 m2 building plot
located in Parc Central 22@ for €18.5 million.
September
FCC Medio Ambiente takes charge of the
waste collection and street cleansing
service in Torrejón de Ardoz (Madrid, Spain).
The Guijuelo biofactory is recognised as
runner-up in the first edition of the
Innovation Award of the Spanish Biomass
Association (AVEBIOM), for transforming the
waste generated by the treatment plant
itself and the local agri-food industries into
energy, biofuels, biofertilisers and
biodegradable plastics.
FCC Construction achieves its objective of
verifying 100% of its activity under the ISO
14064 Standard for Greenhouse Gas
emissions.
Completion of the renovation of the Acanto
22 Building Lobby with the incorporation,
among other elements, of a vertical garden
and a large digital screen (Madrid, Spain).
Beginning of the delivery of keys of the
Realia “Valdebebas Único” development.
40 homes in Valdebebas (Madrid, Spain).
Beginning of the delivery of the keys of the
FCC Real Estate development “Les Masies
Residential Area”. 118 homes Sant Joan
Despí (Barcelona, Spain).
November
FCC Medio Ambiente publishes its eighth
Sustainability Report aligned with the SDGs
(Spain).
FCC Environment delivers its 2021 Avanza
Awards for quality, innovation,
environment, and social initiatives (Spain).
Through its French subsidiary, SEFO,
Aqualia is selected to manage the water
supply of 16 municipalities around
Mantes-la-Ville, in the Île-de-France region
(France).
Bradfield Metro Consortium shortlisted for
the Sydney Metro - Western Sydney Airport
expansion project in Australia.
New corporate website www.valderrivas.es
launched.
GCPV holds the Autonomous Committee
to Follow-up on the Agreement on the
Sustainable Use of Resources (CASA) in
several factories.
Start of land decontamination works for
the future FCC Real Estate development
“Portum Badalona” in the marina of
Badalona (Barcelona, Spain).
August
FCC Medio Ambiente renews the
‘Calculo-Reduzco’ (‘Calculate -Reduce’)
seal granted by the Spanish Office for
Climate Change (Spain).
Aqualia reaches 6,000 hours of digital
training with the Children's Digital
Drawing Contest.
Group
Infrastructures
Environment
End-to-end water
management cyle
Cement
Real Estate
FCC Construction chosen by the
Chamber of Commerce of Belgium
and Luxembourg as "2021 Company
of the Year".
GCPV moved its corporate head office
to Torre Realia (Madrid, Spain), a
building owned by the FCC Group.
Start of construction of the Realia
Parque del Ensanche Phase II
development in Alcalá de Henares
(Madrid, Spain).
October
FCC Medio Ambiente renews its
commitment to Madrid city services
(Spain).
FCC Medio Ambiente will build and
operate the new organic material
treatment facility in Valdemingómez,
Madrid (Spain).
FCC Environment is awarded the
contract for the urban waste
collection and treatment services
for the city of Tarnobrzeg (Poland).
Vigo City Council and Aqualia lay the
first stone of the city's new Drinking
Water Treatment Plant (DWTP), an
estimated investment of 23 million
euros, which will apply ultrafiltration
membranes to improve the quality of
the drinking water.
FCC Construction renews its
registration in the Carbon Footprint,
offset and carbon dioxide absorption
projects registry for the ninth time.
GCPV opens the doors of its property
"El Porcal", in Madrid (Spain), to various
groups to offer environmental
education sessions.
GCPV presents the Energy Transition
Climate Neutrality Plan for
the Mataporquera factory to the
Government of Cantabria (Spain).
GCPV adheres to "Companies for
the Climate" and its plan was named
among the 101 best business
initiatives for the climate.
GCPV trains employees in prevention
matters through workshops and
encourages their involvement
in ideas contests.
Torre Realia BCN (Barcelona, Spain)
obtains BREEAM® Certification with
an excellent management rating and
a very good building rating.
December
FCC renews its commitment with the ONCE
Foundation and will hire up to 900 people
with disabilities.
FCC Medio Ambiente takes charge of waste
collection and street cleansing in Pozuelo de
Alarcón (Madrid, Spain).
FCC Medio Ambiente awarded as a business
showcase of best practice and sustainability
in promoting health in the workplace. (Spain).
Aqualia approves the 2023 Strategic Plan
with the clear goal of integrating triple
sustainability as a cross-cutting aspect of
the strategy to be followed in the coming
years and charting and measuring the
company's performance in relation to the
SDGs, establishing targets to be met in the
short, medium and long term.
FFCC Construction publishes its
sustainability report "Environmental
Communications 2021".
GCPV employees take part in the race
of the companies.
GCPV renews its commitment to the
Adecco Foundation's Family Plan in
its fight for the employment or
re-employment of people with
disabilities.
Completion of the construction project
for a 3,015 m2 warehouse in the
La Noria Outlet Shopping Centre in
Murcia (Spain), within the framework
of the lease agreement signed with
Mercadona.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | FCC in 2021 | Key figures | Page 1 of 5
_ 83
Key figures
TURNOVER
Millions of euros
6,276
6,158
%
8
.
4
+
%
9
.
1
-
6,659
%
1
.
8
+
2021 TURNOVER BY ACTIVITY
GROSS OPERATING PROFIT (EBITDA)
%
17.6%
2.2%
6.5%
0.1%
Environmental
Services
Construction
Water
Cement
Real Estate
24.9%
48.7%
Millions of euros
1,026
1,048
%
1
.
9
1
+
%
1
.
2
+
1,127
%
6
.
7
+
2019
2020
2021
Corporate and adjustments
2019
2020
2021
EBITDA 2021 BY ACTIVITY
%
6.5%
3.6%
6.8%
47.5%
9.1%
26.5%
Environmental
Services
Water
Construction
Cement
Real Estate
EBITDA MARGIN
%
INVESTMENTS
Millions of euros
16.3%
17.0%
16.9%
547
541
558
%
7
.
5
2
+
%
1
.
1
-
%
1
.
3
+
Corporate and adjustments
2019
2020
2021
2019
2020
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | FCC in 2021 | Key figures | Page 2 of 5
_ 84
NET FINANCIAL DEBT
Millions of euros
3,579
%
0
.
3
3
+
TOTAL ASSETS
Millions of euros
EARNINGS ATTRIBUTABLE TO THE PARENT
Millions of euros
2,798
%
8
.
1
2
-
%
3
.
5
1
+
3,226
12,574
12,835
%
5
.
9
1
+
%
1
.
2
+
14,242
%
0
.
1
1
+
580
%
2
.
1
2
1
+
267
262
%
0
.
6
+
%
7
.
1
-
2019
2020
2021
2019
2020
2021
2019
2020
2021
BACKLOG
Millions of euros
EQUITY
Millions of euros
31,038
29,412
30,197
%
1
.
7
+
%
2
.
5
-
%
7
.
2
+
%
7
.
2
5
+
2,909
2,474
%
3
.
6
2
+
%
6
.
7
1
+
FINANCIAL LEVERAGE. Net debt / Total assets
%
4,441
28.5%
21.8%
22.7%
2019
2020
2021
2019
2020
2021
2019
2020
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | FCC in 2021 | Key figures | Page 3 of 5
_ 85
2021 Stock Market performance
Stock Market and share price evolution
After 2020 being affected by the start of the pandemic, the start
of the recovery in 2021 came with some volatility in world mar-
kets. A relative and uneven recovery that seemed to stabilise be-
fore the summer. A year also framed by the rise in inflation from
the second half of the year in all countries, which forced central
banks to reorient their roadmaps; with supply chain pressures
hampering global trade; with energy and commodities prices on
the rise; all this challenged companies and governments around
the world when faced with a possible slowdown in the recovery.
International organisations such as the International Monetary
Fund (IMF) started to adjust their annual growth forecasts. The
latest shows that the world economy will have grown by 5.9%
in 2021 (vs -3.1% in 2020) and forecasts 4.9% in 2022. For ad-
vanced economies, after falls of 4.5% in 2020, growth of 5.2%
is forecast for 2021 and 4.5% for 2022. Emerging market and
developing economies expect to see growth of 6.4% in 2021.
The downwards revision for 2021 reflects an impairment in ad-
vanced economies – partly due to supply disruptions – and in
developing countries due to the worsening dynamics created
by the pandemic. This situation is partially offset by better short-
term prospects for some emerging and developing economies
that export raw materials. In general terms, the risks for growth
are tilted downwards.
All in all, and in terms of the markets, the gains in the United
States have been notable. The S&P500 has seen a 27.2% in-
crease in value, the Nasdaq 22.1% and the Dow Jones 18.9%.
Despite the persistence of the pandemic, the continuity in ul-
tra-expansive policies, the recovery of the economy and, above
all, the increase in corporate profits have accelerated positions
being called in US equities.
In Europe, the CAC40 in Paris gained the most (29.2%), fol-
lowed by the Ftse Mib in Milan at 23% and the Euro Stoxx 50
at 21%. The London market closed the year up 14%, half that
of the French CAC. The rally in commodities has worked in its
favour, although momentum has been contained by the force-
fulness of the Bank of England, it becoming the first of the major
central banks to raise interest rates.
The Chinese CSI300 index closed the year as one of the lag-
gards, with annual losses of 5%. The interventionism of the Bei-
jing authorities, the control over the country’s technology com-
panies due to increasing regulation and the crisis of Evergrande,
the world’s largest real estate company, prevented progress.
For its part, the Ibex35 lagged behind Western indices, with a
rise of 7.9%. This decoupling is explained in part by the high
weight of financial companies in our index as well as the de-
layed recovery of figures in sectors related to tourism and gen-
eral mobility.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | FCC in 2021 | Key figures | Page 4 of 5
_ 86
Annual evolution of FCC’s shares
Trading
FCC’s shares performed well, rising 31.9% in the year com-
pared to the fall of 16.3% the previous year. At the end of the
year, the share price was 11.08 euros/share, which is a recov-
ery to pre-pandemic levels.
The maximum price was 11.40 euros per share on 7 Septem-
ber the minimum was 8.80 per share at the start of the year.
FCC ended the year with a market capitalisation of 4,711 million
euros.
Total trading volume this year was over 17.7 million securities,
with a daily average of 71,039 shares; 5% less than in the pre-
vious year. However, the brokered volume is conditioned by the
13% free float and by the type of long-term minority investors,
with a long time as a shareholder and, therefore, a low turnover
ratio.
Variation
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
Volume (shares)
2,400,000
2,000,000
1,600,000
1,200,000
800,000
400,000
0
January
Feb.
March
April
May
June
July
August
Sept.
Oct.
Nov.
Dec.
% Chg. FCC
4.9%
11.4%
2.5%
8.3%
-5.1%
-5.2%
-1.5%
12.1%
-3.1%
5.0%
-10.4%
12.4%
31.9%
% Chg. Ibex35
-3.9%
6.0%
4.3%
2.7%
3.8%
-3.6%
-1.6%
2.0%
-0.6%
3.0%
-8.3%
4.9%
7.9%
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | FCC in 2021 | Key figures | Page 5 of 5
_ 87
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 with CNMV
(Spanish National Securities Market Commission) records, on
the closing date of the year the main shareholders in the com-
pany were:
Main Shareholders
Control Empresarial de Capitales, S.A. de C.V.
Slim Helú, Carlos
William H. Gates III
Koplowitz Romero de Juseu, Esther
Nueva Samede 2016, S.L.U.
% of Share
Capital
74.20%
7.00%
5.73%
4.57%
4.54%
SHARE PRICE: MAXIMUM, MINIMUM AND YEAR END
Euros/share
MAXIMUM
MINIMUM
YEAR END
MARKET CAPITALISATION
Millions of euros
12.40
11.56
11.40
9.96
8.71
10.12
11.08
6.77
8.40
4,711
3.,600
%
9
.
0
3
+
4,284
%
3
.
3
-
%
0
.
6
1
-
2019
2020
2021
2019
2020
2021
2019
2020
2021
2019
2020
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 5
_ 88
Business
lines
Environment _ 89
End-to-end Water Management cycle _ 134
Infrastructure _ 200
Cement _ 223
Real Estate _ 236
FCC _ Annual Report 2021Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment
_ 89
The area’s annual turn over
reached €3.25 billion,
an increase of 12.35% over
the pre vious year, and the
gross operating profit
amounted to €535.1 million,
16.5% on turnover and
an improvement of 18.68%
over 2020.
Environment
Geographical divisions and sector analysis.
Strategy _ 90
Activity in the Environment Area _ 101
Highlights Environment 2021 _ 102
Other highlights _ 103
Excellence and sustainability _ 114
Innovation and technology _ 121
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Geographical divisions and sector analysis. Strategy | Page 1 of 11
_ 90
Geographical divisions and sector analysis.
Strategy
The Environmental Services
Area of the FCC Group has
been delivering municipal
services and end-to-end waste
management, serving today
60 million people in more
than 5,200 municipalities
For over 110 years, the Environmental Services Area of the FCC
Group has been delivering municipal services and end-to-end
waste management, serving today 60 million people in more
than 5,200 municipalities.
In 2021 the company operated in a total of 11 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, street cleansing,
maintenance of sewage systems, ground maintenance, treat-
ment and disposal of industrial waste or the recovery of con-
taminated soil, among others.
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 Portu-
gal and Ámbito (Industrial Waste)
• United Kingdom: FCC Environment UK
a significant part of the population and the subsequent partial
immunisation have enabled an upturn in economic activity, the
pandemic continues to highlight the importance of the services
provided by this entity, services that have been graded 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.
TURNOVER 2021. DIVISIONS
• Central and Eastern Europe: FCC Environment CEE
• USA: FCC Environmental Services
2021
During the financial year 2021, the global pandemic of
COVID-19 has continued to generate very unfavourable soci-
oeconomic circumstances and has affected the development
of all economic activities. While it is true that the vaccination of
57.75%
Iberia (Spain,
Portugal, Ámbito)
21.83%
United Kingdom
16.97%
CEE Central and
Eastern Europe
3.45%
USA
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Geographical divisions and sector analysis. Strategy | Page 2 of 11
_ 91
Under these circumstances, the performance of FCC Servicios
Medio Ambiente has been exceptional. The area’s annual turn-
over reached €3.25 billion, an increase of 12.35% over the pre-
vious year, and the gross operating profit amounted to €535.1
million, 16.5% on turnover and an improvement of 18.68% over
2020. Particularly noteworthy is the profit before tax of €246.3
million, which represents an increase of +58.73% over 2020.
Order intake rose to €4.7 billion (+123.04%) and generated a
record portfolio of €10.75 billion.
Even in adverse conditions, FCC Servicios Medio Ambiente
managed 24 million tonnes of waste in 2021 and produced
nearly 4 million tonnes of secondary raw materials (SRM) and
refuse-derived fuel (RDF). The company has more than 770 op-
erational waste management facilities, of which over 200 are
environmental compounds dedicated to the treatment and re-
cycling of waste, including 11 waste-to-energy projects with a
processing capacity of 3.2 million tonnes per annum and 360
MWe of clean non-fossil electricity.
As a relevant financial milestone for FCC Servicios Medio
Ambiente Holding S.A.U. and as expressed in the recently pub-
lished ‘Second Green Bond Report’, it should be noted that
out of the €1.1 billion in ecological bonds issued according to
the ‘Green Bond Framework’ by the company in November
2019, at the close of 2020 more than €1.025 billion had al-
ready been allocated to projects for prevention and control of
pollution, biodiversity protection, energy efficiency and vehicles
powered by clean energies. These investments have generated
significant environmental benefits in the communities in which
FCC Servicios Medio Ambiente works. In Spain and Portugal,
more than 27 million inhabitants have been served through the
treatment of almost 6 million tonnes of waste and a total of
1,859,252 tonnes of CO2e of greenhouse gas (GHG) emissions
Street cleansing service in A Coruña (Spain).
have been avoided. On the other hand, in United Kingdom,
more than 475,000 tonnes of waste have been processed, gen-
erating 315 GWh of non-fossil energy and avoiding the equiva-
lent of 838,000 tonnes of CO2 of GHG emissions.
Access the second Green Bond Report here
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Geographical divisions and sector analysis. Strategy | Page 3 of 11
_ 92
FCC Medio Ambiente Iberia (Spain, Portugal and Ámbito)
FCC Medio Ambiente provides environmental services in over
3,700 municipalities in Spain and Portugal (FCC Environment),
serving a population of more than 32 million inhabitants with
activities including street cleansing, the collection and transport,
treatment and disposal of waste, ground maintenance, main-
tenance of sewage systems, beach cleaning, and energy effi-
ciency services, among others. During the 2021 financial year,
FCC Medio Ambiente Iberia managed 11.9 million tonnes of
municipal solid waste.
TURNOVER 2021. GEOGRAPHIC LOCATION
2021
22.4%
Catalonia
19.2%
Community of Madrid
11.8%
Valencian Community
9.6%
Andalusia
2.6%
Murcia
2.0%
Portugal
2.0%
Asturias
1.9%
Navarre
6.7%
Basque Country
1.6%
Balearic Islands
5.5%
4.2%
Aragon
Canary Islands
3.8%
Castilla y León
3.0%
Galicia
1.3%
0.8%0.8%
Extremadura
Castilla-La Mancha
0.8%
La Rioja
0.7%
Cantabria
INHABITANTS SERVED 2021
17,611,672
18,423,475
13,617,475
MUNICIPALITIES SERVED 2021
2,159
2,521
5,399,803 4,845,837 4,495,499
4,531,371
2,606,492
283
65
128
105
9
155
Waste
collection
Street
cleansing
Waste
processing
Ground
maintenance
Sewerage
Beach
cleaning
Fountains
Facility
Management
Waste
collection
Street
cleansing
Waste
processing
Ground
maintenance
Sewerage
Beach
cleaning
Fountains
Facility
Management
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Geographical divisions and sector analysis. Strategy | Page 4 of 11
_ 93
The European Next Generation funds of the Spanish Recovery,
Transformation and Resilience Plan (in Spanish, PRTRE) are
playing a key role in alleviating the unfavourable socioeconomic
situation and FCC Medio Ambiente, on its own or in consor-
tium with other entities, has presented in 2021 manifestos of
interest (MOIs) and applications worth €1.5 billion. FCC Medio
Ambiente will accompany its clients in this development oppor-
tunity, contributing value and know-how when addressing their
approaches to the future.
In these circumstances, FCC Medio Ambiente Iberia’s perfor-
mance has been excellent, with the winning of important con-
tracts such as the renewal of the collection and cleansing ser-
vices in Barcelona, which have been provided since 1915 and
represent a portfolio of €830.87 million. Or the contracts for
street cleansing and ground and urban furniture maintenance
in Madrid, with a combined value of €652 million. A record €3.4
billion were contracted, bringing the order book to €6.34 billion.
Annual turnover reached €1.87 billion, an increase of 7.52%
compared to 2020. The gross operating profit grew by 7.11%
to €284.8 million and profit before tax increased by 20.45%
over 2020 to €179.1 million.
In March 2021, FCC Medio Ambiente presented its 2050 Sus-
tainability Strategy, which is an ambitious 30-year business
development project, reflecting the company’s commitment
to support the achievement of the Sustainable Development
Goals (SDGs) and to address economic, social and environ-
mental challenges on a global scale. This roadmap integrates
very demanding environmental, social, excellence and govern-
ance commitments with high added value.
Access here the 2050 Sustainability Strategy video
FCC Medio Ambiente
presented its
2050 Sustainability
Strategy, which
is an ambitious
30-year business
development project
The 2020 Sustainability Report, under the slogan “Actions
showing our commitment”, published at the end of the year and
verified according to the principles of the Global Reporting Initi-
ative, details the progress of the Strategy in the two-year period.
Access here the Sustainability Report 2020 Video-Summary
A fundamental part of this Strategy is innovation, an element
that is in FCC Medio Ambiente’s DNA and is the basis of its
competitive differentiation. In this line, its multi-award-winning
100% electric chassis-platform for urban service vehicles has
continued to add awards in 2021, such as the Ecological In-
dustrial Vehicle of the Year at the National Transport Awards.
Likewise, the award of European funds to the H2TRUCK pro-
ject, which aims to develop a heavy-duty chassis-platform with
100% electric propulsion powered by a hydrogen cell and lithi-
um-ion battery hybrid system.
Although the vaccination of a significant part of the population
and the consequent partial immunisation have allowed an up-
turn in economic activity, the COVID-19 pandemic continues to
have a particular impact in Spain and Portugal, highlighting the
importance of the essential services provided by FCC Medio
Ambiente and the commitment of its people, whose profession-
alism and dedication have made it possible to maintain excel-
lence and a high level of service.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Geographical divisions and sector analysis. Strategy | Page 5 of 11
_ 94
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 econom-
ic sustainability. Overall, it has a total of 39 treatment centres
across Spain and Portugal, with more than 67process 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 2021, and despite the
impact of the pandemic on production and consumption, an
increase of industrial and commercial waste has continued to
be observed. This rise has been driven by increased activity in
certain industrial sectors which have managed to compensate
for the decline in others more related to consumption. As a re-
sult, FCC Ámbito’s activity shows a slight increase of 7% in the
tonnes managed, thus consolidating the previous year trend.
This growth is taking place in a context characterised by the
intense competition established by the waste producers them-
selves and which is facilitated by the absence of subsequent
responsibility of the producer when the waste is handed over to
an authorised manager. Legislative changes coming into force
tend towards greater control of waste traceability by the region-
al governments.
These changes will undoubtedly benefit waste management
companies that have final treatment facilities, such as FCC
Ámbito.
In Portugal, there has also been an increase in activity with the
main recurring customers and a recovery of prices, so that the
year closed above forecasts with an increase of 15% in tonnes.
Along this year, the industrial waste activity will continue to fo-
cus on the efficiency of operations and growing the activity.
The incorporation of new technologies will allow FCC Ámbito
to consolidate its position in the recycling and waste recovery
markets, as that of a key player in the circular economy.
TURNOVER 2021. GEOGRAPHIC LOCATION
2021
18.4%
Catalonia
18.2%
Portugal
4.0%
Asturias
2.6%
Castilla y León
15.5%
Community of Madrid
1.5%
Valencian Community
12.9%
Aragon
1.2%
La Rioja
9.1%
Basque Country
1.2%
Castilla-La Mancha
8.6%
Andalusia
5.2%
Cantabria
0.9%
Extremadura
0.7%
Navarre
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Geographical divisions and sector analysis. Strategy | Page 6 of 11
_ 95
FCC Environment UK
FCC Environment is one of the leading companies in the United
Kingdom for comprehensive waste management and recycling
and continues to focus on releasing the full potential from the
resources it collects, targeting on greater volumes of reuse, re-
cycling and the generation of green energy in line with Govern-
ment policy as well as the regeneration of its landbank, bringing
closed facilities back into positive economic use. The company
has invested in a wide range of waste management facilities that
aim to minimize the amount of waste disposed of at landfill sites
by processing the material to ensure it reaches its full potential
as a valuable resource.
Across the country, FCC Environment serves over 16 million cit-
izens and in 2021 the business managed 6.2 million tonnes of
waste as a resource, generating 117 MW of green energy from
the waste than cannot be recycled.
In a year which saw the UK host COP26, the UN Climate
Change Conference, the focus for the UK businesses has
clearly been on delivering environmental excellence to get the
country to Net Zero. On 20th April 2021, the Government in
the UK announced a plan to reduce emissions 78% by 2035,
compared to 1990 levels, and in October it released its Net Zero
Strategy as part of COP26 commitments.
INHABITANTS SERVED 2021
13,560,000
1,493,600
812,000
93,000
142,000
Waste
collection
Street
cleansing
Waste
processing
Ground
maintenance
Sewerage
Beach
cleaning
Fountains
Facility
Management
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Geographical divisions and sector analysis. Strategy | Page 7 of 11
_ 96
FCC Environment has signed up to support this goal and the
recycling and waste management sector’s supporting plan to
cut 8% of UK total greenhouse gas emissions to net zero by
2040, invest £10 billion and create 40,000 new jobs over the
next decade.
Underpinning the push for Net Zero in the UK is the Environment
Act, which was passed late in 2021 to set new, legally-binding,
long-term national targets for environmental excellence. The
Act regards important measures like a Plastics Tax to drive the
use of recycled content in packaging, set the Extended Pro-
ducer Responsibility ensuring the producer of packaging pays
the full cost of its collection and either recycling or disposal, a
Deposit Return Scheme for packaging and consistent collec-
tions for mandated food waste and a core list of materials and
household-like business waste.
In this context FCC Environment´s performance in 2021 was
excellent, with revenues of €708.3 million and a gross operating
profit of €135 million, which represents increases of 17.02%
and 31.40% respectively, compared to 2020.
As the COVID crisis continued to affect the globe, the UK busi-
ness 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.
FCC Environment UK’s
performance in 2021 was
excellent, with revenues of
€708.3 million and a gross
operating profit of €135 million,
which represents increases of
17.02% and 31.40% respectively,
compared to 2020
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Geographical divisions and sector analysis. Strategy | Page 8 of 11
_ 97
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 ap-
plies innovative systems and the cleanest, most advanced
technologies in the provision of quality services that are sustain-
able on the medium and long term and adapted to customers’
needs.
The year 2021 saw a very successful performance for the Cen-
tral-Eastern European business. Despite the sale of the Bulgar-
ian activity in 2020, the annual turnover grew 18.5% compared
to 2020, reaching €550.7 million, whereas EBITDA reached a
value of €95.4 million and profit before tax €52.8 million, almost
30% and 180% year-to-year increase respectively. Order intake
amounted to €588 million, a raise of nearly 39% on the prior
year.
INHABITANTS SERVED 2021
2,752,797
2,943,596
536,800
467,800
34,000
44,000
205,000
Waste
collection
Street
cleansing
Waste
processing
Ground
maintenance
Sewerage
Beach
cleaning
Fountains
Facility
Management
MUNICIPALITIES SERVED 2021
1,210
1,159
64
43
25
2
16
Waste
collection
Street
cleansing
Waste
processing
Ground
maintenance
Sewerage
Beach
cleaning
Fountains
Facility
Management
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Geographical divisions and sector analysis. Strategy | Page 9 of 11
_ 98
TURNOVER 2021. GEOGRAPHIC LOCATION
2021
42.82%
Czech Republic
27.42%
Austria
13.71%
Poland
7.66%
Slovakia
4.64%
Hungary
2.56%
Romania
1.19%
Serbia
On one hand there was a significant GDP growth versus previ-
ous year, which led the segment of commercial and industrial
waste to develop accordingly in all the countries. On the other
hand, an exponential increase in secondary raw material prices
took place, specially paper, ferrous metals and oil. Prices for
paper thrived annually from an average of €50 per tonne to an
average of €140, due to a high demand and shortage in sup-
ply. FCC Environment CEE marketed approximately 650,000
tonnes of secondary raw materials in 2021. A further boost in
sales & profit was pushed by large-scale remediation projects in
Czech Republic and Slovakia.
Finally, large tenders were awarded to the Group, many of
which already affected this year’s results. Among them, the col-
lection and disposal services for the City of Bytom, in Poland
with approximately 100,000 inhabitants; or the supply of landfill
services to the community of Érd and surroundings, in Hungary,
close to Budapest and with a population of around 100,000
inhabitants. In Austria, a 10-year disposal contract for the ener-
gy recovery facility of Zistersdorf with the Tyrolean Waste Man-
agement Association generated a backlog of €33 million, the
largest single contract ever signed in the country.
During 2022 FCC Environment will continue the adaptation of
the CEE countries business to the upcoming changes in the na-
tional waste management legislations due to the circular econ-
omy recycling and landfill deviation targets from the European
Union, by developing waste-to-energy projects and promoting
selective collections and sorting and bio-treatment plants.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Geographical divisions and sector analysis. Strategy | Page 10 of 11
_ 99
FCC Environmental Services USA
FCC Environmental Services is one of the top 20 companies in
the United States for comprehensive management and recy-
cling of urban solid waste. The company operates in the states
of Texas, Florida and Nebraska. Across these states over 8 mil-
lion inhabitants are served in 15 locations and in 2021 748,000
tonnes of waste and 272,500 tonnes of recyclable 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, 2021 has been exceptional with the award of sev-
eral long-term contracts (up to 20 years) in some of the main
municipalities in Florida, like Wellington and Hillsborough, and
the acquisition of Premier Waste Services LLC, a commercial
collection company in the Dallas-Fort Worth area.
FCC Environmental Services also successfully completed the
startup of these two main contracts, Wellington and Hillsbor-
ough.
The acquisition of Premier Waste has consolidated the commer-
cial business in 2021 and this fact will place FCC as the largest
local commercial company in the Dallas-Fort Worth region.
INHABITANTS SERVED 2021
3,946,135
4,360,000
Waste
collection
Street
cleansing
Waste
processing
Ground
maintenance
Sewerage
Beach
cleaning
Fountains
Facility
Management
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Geographical divisions and sector analysis. Strategy | Page 11 of 11
_ 100
Revenues for 2021
reached €111.9 million,
nearly a 50% increase
on 2020
FCC Environmental Services Commercial Division has a total
of seven locations across three states, including Texas (Hou-
ston and Dallas), Florida (West Palm Beach, Daytona Beach,
Lakeland, and Orlando), and Nebraska (Omaha). Currently, the
commercial business provides service to industrial customers
such as ExxonMobil, Indorama Ventures, major manufacturing
facilities and large universities.
There’s a three-prong growth strategy for the commercial line
of business. First, to sell front-load and roll-off services to small,
medium and large businesses. Second, expanding the current
customer’s portfolio and market all the additional services that
FCC has to offer. Third, bringing new customers in and selling
them profitable business by capitalizing on/off cycle and annual
price increases.
In 2021 the commercial line of business exceeded the budg-
eted revenues and profitability by 95% and 44% respectively.
Commercial sales included over 1,200 new customers from all
FCC’s locations across the US. Regarding demographics of
commercial customers, 60% are retail, 30% manufacturing and
industrial customers and 10% miscellaneous.
Revenues for 2021 reached €111.9 million, nearly a 50% in-
crease on 2020, and the expected figure once all the contract-
ed business is running in 2022 will be around €250 million. In
the second year of the COVID Pandemic the company multi-
plied its EBITDA by 2.3.
2021
FCC
Environmental
Services
Activity
City of Garland recycling material process contract renewal for 5 years (Texas, USA)
Award of the solid waste collection contract for the Village of Wellington for 10
years (Florida, USA)
Start of operations of the solid waste collection contract for the Village of
Wellington (Florida, USA)
Award of the solid waste collection contract for Hillsborough County for 8 years and
8 months (Florida, USA)
Material Recycling Facilities of Houston and Dallas awarded the “gold level-
certification” from the Glass Recycling Coalition of USA
City of Mesquite recycling material process contract renewal for 1 year (Texas, USA)
Expansion of the Omaha gas station (Nebraska , USA)
Acquisition of Premier Waste Disposal (Texas, USA)
Facing 2022, FCC’s strategy in USA is to keep tendering for and
winning waste collection and recycling contracts and to consol-
idate the commercial business. It will also continue its vertical
integration along the value chain, with the incorporation of post
collection contracts and the acquisition of companies that fit in
FCC’s long-term development plan.
Regarding 2022, the Commercial line of business is budget-
ed to grow revenues over 60% YOY. This activity is one of the
fastest growing businesses at FCC Environmental Services with
limitless potential and upsides.
TURNOVER 2021. GEOGRAPHIC LOCATION
47.53%
Florida
29.89%
Texas
22.58%
Nebraska
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Activity Map
_ 101
Activity in the Environment Area
2. SCOTLAND
FCC Environment
East Lothian
Food waste and recyclables collection.
€26.14 million.
3. ENGLAND
FCC Environment
Buckinghamshire
Management of nine Recycling
Centres.
€18 million.
4. AUSTRIA
FCC Environment
West Tyrol Association
Transport and treatment of
municipal solid waste.
€33 million.
5. POLAND
FCC Environment
Zabrze
Waste management.
€11 million.
Tarnobrzeg
Waste management.
€7.5 million.
6. ROMANIA
FCC Environment
Braila County
Management of the Waste
Treatment Plant.
€6.5 million.
.
1
1. USA
FCC Environmental Services
Hillsborough County (Florida)
Waste collection.
€247 million.
Village of Wellington (Florida)
Waste collection.
€119.11 million.
Garland (Texas)
Management of recyclable materials.
€12.35 million.
Mesquite (Texas)
Management of recyclable materials.
Huntsville (Texas)
Management of recyclable materials.
Dallas-Fort Worth (Texas)
Acquisition of Premier Waste
Services LLC.
2
3
4
5
6
7
8
7. SPAIN
FCC Medio Ambiente
Barcelona
Waste collection and street cleansing.
€830.87 million.
Madrid
Street cleansing, ground and urban
furniture maintenance.
€652 million.
Design, Building and operation of the
new Organic Material Processing Plant
at the Valdemingómez Technological
Park.
€33 million.
Pozuelo de Alarcón (Madrid)
Waste collection and street cleansing.
€149.97 million.
Pinto (Madrid)
Disposal site expansion works for the
Southern Municipalities Association.
€26.28 million.
La Ribera Municipal Association
(Navarre)
Street cleansing.
€24.53 million.
Menorca (Balearic Islands)
Beach and coastline cleansing.
€7.26 million.
FCC Ámbito
Aragón, La Rioja, Valencian
Community and the provinces of Ávila
and Segovia
Selective collection and temporary
storage of glass packaging waste
managed by ECOVIDRIO.
€13.5 million.
8. PORTUGAL
FCC Ámbito
San Pedro da Cova
Soil decontamination of an old mine.
Valladolid
Project, construction and operation
of the Environmental Recovery Centre.
€138.43 million.
Torrejón de Ardoz (Madrid)
Waste collection and street cleansing.
€129.58 million.
Cornellà de Llobregat (Barcelona)
Waste collection, street cleansing
and sewerage maintenance.
€101.15 million.
Pamplona Region (Navarre)
Project, construction and
commissioning of the Environmental
Recovery Centre.
€66.19 million.
Waste collection.
€48.6 million.
Mataró (Barcelona)
Waste collection and street cleansing.
€50.86 million.
Torrox (Málaga)
Waste collection, street cleansing and
beach maintenance.
€34.69 million.
Hospitalet de Llobregat (Barcelona)
Ground and trees maintenance and
renovation.
€28.88 million.
Arcos de la Frontera (Cádiz)
Waste collection and ground
maintenance.
€28.24 million.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Highlights 2021
_ 102
Highlights Environment 2021
January
FCC Medio Ambiente reinforces its presence
in the East of Spain with the waste collection
and street cleansing contract in Elche
(Alicante, Spain)
March
The Environmental Compound
of the East Madrid
Municipalities Association starts
operations (Madrid, Spain)
FCC Medio Ambiente's ie-Urban wins
Spain's Ecological Industrial Vehicle of the
Year 2021 award (Spain)
FCC Medio Ambiente presents
its new Sustainability Strategy
2050 (Spain)
FCC Environment achieves five-star grading
in the British Safety Council’s Occupational
Health and Safety Audit (United Kingdom)
FCC Environment´s waste collection and
street cleansing contract in the Sousa Valley
starts operations (Portugal)
FCC Medio Ambiente renews
the contract for waste collection
with the Municipalities
Association for the region of
Pamplona (Navarre, Spain)
May
FCC Medio Ambiente renews the
contract for waste collection and
street and beach cleansing in
Mataró (Barcelona, Spain)
FCC Environment receives double
accolade at the International
Institute of Risk and Safety
Management (IIRSM) Excellence
Awards 2021 (United Kingdom)
FCC Environmental Services
reinforces its presence in Florida
with a new contract in the Village of
Wellington (USA)
July
FCC Environmental Services obtains
Gold Glass certification for its Dallas
and Houston recycling facilities in the
USA
FCC Environment expands its activities
to the West Tyrol region (Austria)
FCC Ámbito awarded the glass
management contract by Ecovidrio for
the Autonomous Regions of Aragón,
La Rioja, Valencia and the provinces of
Ávila and Segovia (Spain)
September
FCC Medio Ambiente takes charge
of the waste collection and street
cleansing service in Torrejón de
Ardoz (Madrid, Spain)
Play
November
FCC Medio Ambiente publishes
its eighth Sustainability Report
aligned with the SDGs (Spain)
FCC Environment delivers its
2021 Avanza Awards for quality,
innovation, environment, and
social initiatives (Spain)
February
FCC Medio Ambiente renews the
contract for waste collection, street
cleansing and sewerage
maintenance in Cornellà de
Llobregat (Barcelona, Spain)
FCC Medio Ambiente reinforces its
commitment to Barcelona with a
new contract for waste collection
and street cleansing (Spain)
April
FCC Medio Ambiente honoured with
the Distinction for Equality at the
Company (Spain)
FCC Environment reinforces its
presence in the UK with the contract
for food waste and recycling
collection in East Lothian (Scotland)
FCC Ámbito participates in a
wind-turbine blade recycling project
to promote circular economy (Spain)
2021
August
FCC Medio Ambiente renews
the ‘Calculo-Reduzco’
(‘Calculate-Reduce’) seal
granted by the Spanish Office
for Climate Change (Spain)
June
FCC Medio Ambiente is awarded the contract
for the refurbishment and operation of the
Valladolid Environmental Centre (Spain)
FCC Medio Ambiente first entity in the
sector to join the Corporate Network
for LGBTI Diversity and Inclusion (Spain)
FCC Medio Ambiente honoured at the
IV Diversity and Inclusion Awards for Best
practice in labour inclusion by the 4th CSR
Master Plan 2018-2020 (Spain)
FCC Environmental Services reinforces its
leadership position in Florida with a contract
in Hillsborough County (USA)
October
FCC Medio Ambiente renews its
commitment to Madrid city services
(Spain)
FCC Medio Ambiente will build and
operate the new organic material
treatment facility in Valdemingómez,
Madrid (Spain)
FCC Environment is awarded the
contract for the urban waste
collection and treatment services
for the city of Tarnobrzeg (Poland)
December
FCC Medio Ambiente takes
charge of waste collection
and street cleansing in
Pozuelo de Alarcón
(Madrid, Spain)
FCC Medio Ambiente
awarded as a business
showcase of best practice
and sustainability in
promoting health in the
workplace (Spain)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Other highlights | Page 1 of 11
_ 103
Other highlights
Distribution table of eligible investments by category in 2020
CATEGORY
SDGs
Investment (Million €)
(%)
Pollution prevention and control
191
94.86%
Energy Efficiency
Clean Transportation
Biodiversity Conservation
TOTAL
0.31%
4.16%
0.66%
0.63
8.38
1.33
201.34
Distribution table of eligible investments by category in 2019
CATEGORY
SDGs
Investment (Million €)
(%)
Pollution prevention and control
744.52
90.35%
Energy Efficiency
Clean Transportation
11.72
1.42%
60.40
7.33%
Biodiversity Conservation
7.37
0.89%
TOTAL
824.01
Second external verification audit
on the Green Bond annual report
of FCC Servicios Medio Ambiente
Holding S.A.U.
During 2021, the company DNV GL Business Assurance España, S.L.
(DNV GL) has carried out the second external verification audit of the
Green Bond annual report of FCC Servicios Medio Ambiente Holding
S.A.U., on the use of the resources from the Bond until 31st December
2020
In November 2019 FCC Servicios Medio Ambiente Holding, S.A.U. pub-
lished its framework for the issuance of sustainable bonds, linked to the
United Nations Sustainable Development Goals (SDGs). Days later, FCC
Servicios Medio Ambiente Holding S.A.U. issued its first green bond for
a total of €1.1 billion.
At the close of 2020 more than €1.025 billion had already been allocated
to projects for prevention and control of pollution, energy efficiency, vehi-
cles powered by clean energies and biodiversity protection.
These investments have generated significant environmental benefits
in the communities in which FCC Servicios Medio Ambiente operates.
Thus, with projects in Spain, Portugal and United Kingdom, 2.7 million
tonnes of CO2e of Greenhouse Gas (GHG) emissions have been avoided.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Other highlights | Page 2 of 11
_ 104
IBERIA
FCC Medio Ambiente Spain
FCC Medio Ambiente takes charge of waste
collection and street cleansing in Pozuelo de
Alarcón (Madrid)
Pozuelo de Alarcón City Council renewed its trust in FCC Me-
dio Ambiente and awarded the company the contract for the
city’s waste collection and street cleansing services, as it has
been doing since 1983. The new contract involves a €150 mil-
lion order book value for a 10-year period. To serve the 83,800
inhabitants of the municipality, the service has a workforce of
around 240 people and a fleet of 96 vehicles and specialised
machinery. The fleet is almost entirely ECO or Zero Emission
environmental label. FCC Medio Ambiente’s commitment to the
city’s sustainable development goes beyond the environmental
sphere, so the company actively collaborates with the Gil Ga-
yarre Foundation, whose mission is to attend to and support
the life projects of people with intellectual disabilities and their
families.
FCC Medio Ambiente renews its commitment to
Madrid city services
Awarded the contract for waste collection and
street cleansing in Torrejón de Ardoz (Madrid)
Madrid City Council has awarded FCC Medio Ambiente the ser-
vice contracts of two lots for street cleansing and another two
for the comprehensive ground maintenance, which will serve
more than one and a half million inhabitants. These services,
together with the recent award of the maintenance of urban fur-
niture service for lots 1 and 2, which cover the seven districts of
the city’s central area, represent a total portfolio of €652 million.
To serve the 1,800,000 inhabitants, cover 2,300 kilometres of
streets, 1,500 hectares and 166,000 trees, the contract has a
fleet of more than 540 vehicles and a staff of more than 1,100
people. It should be noted that a large majority of the street
cleansing vehicles and all of ground maintenance vehicles will
be ECO or Zero Emission electric vehicles, which demonstrates
Madrid City Council’s commitment to a more sustainable and
environmentally friendly city.
Torrejón City Council has awarded a joint venture led by FCC
Medio Ambiente the contract for municipal solid waste collec-
tion and street cleansing for the next 10 years for more than
€142 million. FCC Medio Ambiente has been providing services
in one of the most important towns in the Corredor del Henares
area since 1983. The new service, which has a staff of 204 peo-
ple, is based on greater mechanisation in the provision of ser-
vices and on increasing the human and material resources on
the streets, such as mixed sweeping and washing teams. 80%
of the fleet will be renewed with low-emission hybrid, electric
and Compressed Natural Gas (CNG) vehicles, which will have
their own refuelling facilities.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Other highlights | Page 3 of 11
_ 105
IBERIA
FCC Medio Ambiente Spain
FCC Medio Ambiente will build and operate
the new organic material treatment facility in
Valdemingómez (Madrid)
FCC Medio Ambiente is awarded the contract for
the refurbishment and operation of the Valladolid
Environmental Centre
FCC Medio Ambiente reinforces its commitment to
Barcelona with a new waste collection and street
cleansing contract
The Madrid City Council has awarded a Joint Venture led by
FCC Medio Ambiente the contract for the construction and op-
eration of a new organic material treatment facility at the Valdem-
ingómez Technological Park, which will serve the city’s more
than three million inhabitants. The order book value amounts to
€33 million for a term of 4 years and 9 months with a possible
2-year extension. The plant is expected to be fully operational
in 2023. The technological solution awarded will guarantee a
high-quality level of the more than 37,000 tonnes per year of
compost expected to be obtained in the production process,
which will facilitate its use as class-A compost or fertiliser in
accordance with the legal criteria established for this purpose.
A Temporary Joint Venture led by FCC Medio Ambiente has been
awarded the contract for the refurbishment and operation of the
Domestic Waste Treatment and Disposal Centre (CTR in Span-
ish) by the Valladolid City Council, which serves 521,000 inhab-
itants all over the province. The total contract portfolio amounts
to €138.43 million for a period of 11 years. The investment in
the refurbishment of the environmental complex is around €45
million, it will be carried out along 15 months and aims to adapt
the facility to the new waste management legislation. The new
design is based on five separate lines for processing the corre-
sponding collection fractions: organic or separately collected or-
ganic fraction (in Spanish, FORS), inorganic or residual fraction,
lightweight packages, paper-cardboard, and glass. The new
plant is scheduled to be operational at the end of 2022 and the
contract provides for a 9-year operating period.
Barcelona City Council has signed with FCC Medio Ambiente
the new waste collection and street cleansing contract for the
city centre and Ciutat Vella. The total order book value of the
contract amounts to €830.87 million and is expected to last for
eight years with the possibility of a two-year extension. FCC
Medio Ambiente has been providing environmental services
in Barcelona since 1911, with the first collection and cleaning
contract dating back to 1915. It is worth highlighting the city
council’s commitment to sustainable development and to the
environment, since of the 572 vehicles to be incorporated into
the contract, more than 93% will have a ZERO or ECO environ-
mental label, with 65% electric or electro-hybrid vehicles and
28% Compressed Natural Gas (CNG). The most notable novelty
in waste collection is that the services have been designed to
increase the selective collection rate from the current 36% to
55% by 2025. The service will be staffed by a team of more than
1,081 people.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Other highlights | Page 4 of 11
_ 106
IBERIA
FCC Medio Ambiente Spain
FCC Medio Ambiente renews the contract for
waste collection, street cleansing and sewerage
maintenance in Cornellà de Llobregat (Barcelona)
FCC Medio Ambiente renews the contract
for waste collection with the Municipalities
Association for the region of Pamplona (Navarra)
FCC Medio Ambiente has signed the renewal of the contract for
waste collection, street cleansing and sewerage maintenance in
Cornellà de Llobregat for a period of 10 years. The total order
book value amounts to €100 million. FCC Medio Ambiente has
been linked to the municipality for nearly 35 years. To attend
to the almost 90,000 inhabitants of the city, the service has a
staff of 145 people and a fleet of 61 vehicles and specialised
machinery.
FCC Medio Ambiente signed with the company Servicios de la
Comarca de Pamplona S.A. (SCPSA, Services for the Region of
Pamplona) the renewal of the contract for the collection of solid
urban waste for four years and an order book value of €48.6
million. The relationship with the Municipalities association of
Pamplona, made up of 50 municipalities in Navarre, comes
from September 1985, and the service has been provided un-
interruptedly since that date. The contract provides service to
more than 370,000 inhabitants with a fleet of 109 vehicles, to
which 12 new units will be added, and from 2022 onwards the
entire fleet will begin to be renewed with Compressed Natu-
ral Gas (CNG) vehicles, in line with the association´s concern
to achieve a cleaner and more sustainable environment. The
workforce is formed by 183 people.
“La Campiña” Resource Recovery Centre
in Loeches, for the Eastern Municipalities
Association of the Region of Madrid, starts
operations
‘La Campiña’ comprehensive Resource Recovery Centre (RRC)
owned and promoted by the Eastern Municipalities Associa-
tion of the Region of Madrid, and developed and operated by
ECOMESA, 100% subsidiary of FCC Medio Ambiente, is locat-
ed in the municipality of Loeches. It extends over a 60-hectare
site and serves the more than 735,000 inhabitants of the 31
municipalities that make up the Eastern Association. The entry
into service of the complex, on 1st April 2021, will avoid the
annual emission of 90,000 tonnes of CO2, give a definitive boost
to the Circular Economy model in the Community of Madrid and
meet the demanding recycling and landfill diversion targets of
the European Union.
The facility, which supposed an investment of over €130 million
is at the forefront of waste recovery and recycling technology in
Europe, with the capacity to process up to 265,000 tonnes per
year.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Other highlights | Page 5 of 11
_ 107
FCC Medio Ambiente Spain
FCC Ámbito
IBERIA
Repair work on the Can Caralleu sewerage
collector in Barcelona has been completed
FCC Ámbito awarded the glass management
contract for Ecovidrio
Finalisation of the second phase of soil
decontamination in San Pedro da Cova (Portugal)
FCC Medio Ambiente has repaired the collector of Barcelona’s
sewerage network that collects the water at the top of the Can
Caralleu basin. The company has carried out the necessary ac-
tions and works on the collector and associated structures as a
result of the blockage that caused the retention of the water that
usually flows through the collector and caused serious drainage
problems, including a “cushion” effect on the passage of vehi-
cles. In order to access the collapsed area safely, a structur-
al foundation pit of 75 square metres and 17-metre deep was
built. Some of the main actions carried out were: earth-moving
to prepare the working platform, soundings to locate the col-
lector, repair of the collapsed section of the collector and its
auxiliary structures, and reconstruction of the retaining wall.
FCC Ámbito has been awarded for its glass recycling division
the public contract for the selective collection and temporary
storage of glass packaging waste managed by ECOVIDRIO for
the Autonomous Regions of Aragón, La Rioja, Valencia and the
provinces of Ávila and Segovia, the latter through the Group
company Marepa. The contract represents an order book value
of €13.5 million for a period of eight years from 1st February
2022 in the regions of Aragón and La Rioja, Ávila and Segovia;
and three years for the Valencian Community. FCC Ámbito has
been providing uninterrupted service in these regions for more
than 25 years, reaffirming its commitment to building more sus-
tainable societies and strengthening the environmental values
that unite the firm with ECOVIDRIO, the integrated glass man-
agement system with which it has been collaborating since its
creation. This new contract involves collecting 62,000 tonnes/
year of selective glass, which are placed in more than 20,000
containers (bottle banks) located throughout the country.
FCC Ámbito, through its Portuguese subsidiary ECODEAL, has
executed the second phase of soil decontamination of an old
mine located in the Portuguese town of San Pedro da Cova.
During this phase, 163,000 tonnes of waste and contaminated
soil have been removed. Most of the waste was transported via
the railway network, with the consequent reduction of the car-
bon footprint, calculated at 461,161 kilograms of CO2e.
Waste management contract at the Port of Seville
FCC Ámbito was awarded the waste management contract in
the Port of Seville for a total of €1.2 million. The work was car-
ried out in several phases throughout 2020 and 2021 and near-
ly 11,000 tonnes of various types of waste from an old industrial
facility were managed.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Other highlights | Page 6 of 11
_ 108
IBERIA
FCC Ámbito
UNITED KINGDOM
FCC Environment UK
New waste linked to the energy transition
FCC Ámbito has continued to take firm steps to develop new
lines of business related to the management of emerging waste
linked to the energy transition, such as wind turbine blades,
photovoltaic panels and electric vehicle batteries. During this
year, a project has been launched to recycle wind turbine blades
from the repowering of wind farms or those that have reached
the end of their useful life or are defective, in which FCC Ámbito
contributes its extensive experience in the recycling and com-
mercialization of Secondary Raw Materials (SRM). This industri-
al-scale project would place Spain at the technological forefront
of this industry in Europe and would contribute to the creation
of more than 400 direct jobs and an innovative and exporting
value chain.
Buckinghamshire Council awards Household
Recycling Centres contract to FCC Recycling (UK)
Ltd.
Buckinghamshire Council has awarded the new contract to
manage and operate its nine Household Recycling Centres
to FCC Recycling UK Ltd., FCC Environment UK’s subsid-
iary (which in turn is 100% owned by FCC Servicios Medio
Ambiente) as it has been doing since 2012. This renewal is
worth £15 million (nearly €18 million) for a 5-year period with a
possible extension of 5 years. The contract will serve 221,200
households representing more than 540,000 inhabitants and
started operations on 1st April 2022. The awarded sites cover a
total land area of over 1,500 km2 and handle more than 60,000
tonnes of waste a year.
Five-star grading in the British Safety Council’s
Occupational Health and Safety Audit
FCC Environment has successfully completed the best prac-
tice Five Star Occupational Health and Safety Audit conducted
by the British Safety Council, demonstrating its commitment
towards the continual improvement of their health and safety
management systems. The company underwent a comprehen-
sive, quantified and robust evaluation of its occupational health
and safety policies, processes and practices. The audit pro-
cedure included documentation review, interviews with senior
management, employees and other key stakeholders, together
with sampling of operational activities. They have also demon-
strated to an independent panel of experts that they are ex-
cellent in their health and safety management throughout the
business – from the shop floor to the boardroom.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Other highlights | Page 7 of 11
_ 109
UNITED KINGDOM
FCC Environment UK
FCC Environment UK reinforces its presence in the
UK with the contract for food waste and recycling
collection in East Lothian
East Lothian Council has awarded FCC Environment the con-
tract for food waste and recycling collection for a term of eight
years. The total order book value of the contract amounts to
£22.4 million (€26.14 million); service began on 1st May of this
year. To service around 106,000 inhabitants of East Lothian,
there will be 15 recycling vehicles and a staff of more than 40
people. Approximately 7,255 tonnes of recyclable material and
2,954 tonnes of food waste are collected annually. With the
population expected to grow significantly over the length of the
contract, FCC Environment will have a clear focus on driving
up recycling rates and improving material quality in line with the
Scottish Government’s Household Recycling Charter.
FCC Environment receives double accolade at
the International Institute of Risk and Safety
Management (IIRSM) 2021 Risk Excellence
Awards
FCC Environment has won two prestigious accolades at the
Risk Excellence Awards from the International Institute of Risk
and Safety Management (IIRSM). The company won the Barry
Holt Award for Outstanding Risk Practice and Paul Stokes, its
head of Safety, Health, Environment and Quality, was awarded
the IIRSM President’s commendation. In the past few years,
FCC Environment´s commitment with health and safety has
been recognised with several awards, such as the 2020 Inter-
national Safety Award granted by the British Safety Council or
the Sword of Honour distinction which recognises companies
that achieve excellence in risk management and occupational
safety, among others.
The development of the Lostock Waste-To-Energy
plant continues
Work continues with the first phase of the Energy from Waste
(EfW) plant in Lostock which will be one of the largest EfW
plants in the UK and Europe. It will have an electrical output
of 60MW, enough to meet the needs of 110,000 homes, and
will offset more than 200,000 tonnes of CO2 per year. Located
in the Northwest of England, it will process 600,000 tonnes of
waste per year contributing to the UK government’s strategy to
reduce landfill and waste export. In April 2019, Copenhagen In-
frastructure Partners (CIP) and FCC Environment jointly started
the development of the facility which represents an investment
of €570 million.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Other highlights | Page 8 of 11
_ 110
CENTRAL AND EASTERN EUROPE
FCC Environment CEE
Waste Collection and treatment contract in
Tarnobrzeg (Poland)
Awarded the contract for waste collection and
treatment in Zabrze (Poland)
Awarded the tender for the operation of waste
treatment facilities in Braila County (Romania)
FCC Environment has strengthened its position in Poland with
the award of the waste collection and treatment contract for the
city of Tarnobrzeg. The company has thus secured a turnover
of around €7.5 million for the next three years. The collected
waste will be treated at FCC Environment’s treatment plant in
Tarnobrzeg.
A consortium led by FCC Environment has successfully partici-
pated in the public contracting process for waste collection and
treatment services for the city of Zabrze in Poland. The contract
represents a turnover of €11 million for the next two years and
ensures greater utilisation of the increased capacity of the com-
pany’s treatment plant located in Zabrze.
FCC Environment has won the tender for the operation of waste
treatment facilities in Braila County, Romania. The company has
been appointed to operate a transfer station, a sorting plant and
a landfill in the region for the next eight years, with an order book
value of €6.5 million. Thanks to this success, FCC Environment
significantly expands its geographical reach in Romania.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Other highlights | Page 9 of 11
_ 111
CENTRAL AND EASTERN EUROPE
FCC Environment CEE
FCC Environment Austria expands its activities
to the West Tyrol
FCC Austria Abfall Service AG has been awarded the contract for
the transport and treatment of the municipal waste of the West
Tyrol Waste Disposal Association (ABV Abfallbeseitigungsver-
band Westtirol). The contract, which started on 1st January
2022, has a term of five years, can be extended for up to 5
more years and represents an order book value worth up to €33
million. The waste will be transported from the Roppen transfer
station, which is operated by the Contracting Authority, to the
waste-to-energy facility of FCC Zistersdorf Abfall Service GmbH
(100% subsidiary of FCC Austria Abfall Service AG) where it will
be thermally recycled in accordance with the legal conditions
and official requirements. The transportation of the approximate-
ly 20,000 tonnes of waste per year will be carried out via an
intermodal MOBILER system with 53 m3 containers. Most of the
journey (634 kilometres) will be done by rail. This solution is ex-
tremely environmentally friendly and avoids the emission of more
than 1,400 tonnes of CO2 every year.
Ending of soil remediation works at the
wastewater treatment facility of Mořina (Czech
Republic)
FCC Environment successfully completed in June the soil re-
mediation project at the former wastewater treatment plant in
the city of Mořina, near Prague (Czech Republic). The aim of
the project was to remove soil contaminated by heavy metals
that were a source of pollution for surface water and ground-
water near the Budňanský stream. The area of the remediation
works exceeded 4,000 m2 and a total of 11,603.95 tonnes of
waste was removed. The excavation sites were backfilled with
inert material and covered with humus soil. As part of the land
reclamation, 1,120 broad-leaved trees and 330 shrubs with the
capacity to absorb heavy metals through their root system were
also planted. The total investment of the project was €2.1 mil-
lion.
FCC Environment continues remediation works
at KIV/CIZ sewage lagoon (Czech Republic)
For the decontamination and recovery of the sewage lagoon
of DIAMO s.p FCC’s own patented technology is being used,
based on the formation of an elastic final cover made by shred-
ded end-of-life tyres and other recovery materials, mainly own
certified products from the Hůrka and Temelín facilities. In 2021,
227,000 tonnes of both non-hazardous and hazardous waste
were received at the Hůrka facility and used to produce the cer-
tified material. Approximately 560,000 tonnes of materials were
used in the year in the rehabilitation of the KIV/C1Z lagoon; of
these, 292,000 tonnes were of certified product, 80,000 tonnes
of tyres and 188,000 tonnes of other materials. The project turn-
over was €9.6 million. For the remediation process, 188,000
tonnes of materials were transported to a railway siding, which
has been restored and upgraded together with DIAMO s.p.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Other highlights | Page 10 of 11
_ 112
USA
FCC Environmental Services
FCC Environmental Services acquires a company in
the USA
FCC Environmental Services has made its first acquisition in the
North American market with Premier Waste Services, a compa-
ny that has been providing commercial solid waste collection
services in the Dallas-Fort Worth metropolitan area for more
than 20 years. The company serves over 4,000 contracts with a
fleet of more than 50 lorries. Premier’s historical presence in the
main commercial market in Texas, together with the experience
of its workforce, assets, customer base and synergies with the
existing FCC Environmental Services business, will be a real
catalyst for the growth of FCC’s commercial division in the area.
FCC Environmental Services obtains Gold Glass
certification for its Material Recycling Facilities in
the USA
FCC Environmental Services, has recently obtained the Gold
Glass certification by the Glass Recycling Coalition for its Dallas
and Houston Material Recycling Facilities (MRFs). This certifica-
tion recognises the production of top-quality glass, as well as
the efficient and state-of-the-art technology used for its recov-
ery. It is one of the first companies in the country and the first
in Texas to obtain this certification for material recovery plants.
The US Glass Recycling Coalition evaluated the technology
used and the saleability of the final product according to the
glass quality specifications of the Institute of Scrap Recycling
Industries (ISRI).
Leadership position in Florida with the contract in
Hillsborough County
Hillsborough County (Florida) has awarded FCC Environmental
Services the largest of the three lots in the new contract of res-
idential and commercial solid waste collection. The contract
foresees a term of eight years and eight months, with a po-
tential extension of 4 years, and represents a total order book
value of $280 million (around €230 million). This agreement also
grants FCC the exclusive franchise to provide the commercial
collection service in the area which will add further $100 million
to the backlog. To service the city’s 105,000 residences in the
awarded area and cover the apartment blocks and commercial
collection service, a fleet of 96 Compressed Natural Gas (CNG)
lorries will be put into service. The mentioned fleet will be based
at newly built facilities and will also include the necessary gas
refuelling station.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Other highlights | Page 11 of 11
_ 113
USA
FCC Environmental Services
New contract for the residential urban solid waste
collection service in The Village of Wellington
(Florida)
The Village of Wellington in Palm Beach County (Florida) has
awarded FCC Environmental Services the new contract for the
residential urban solid waste collection service. The contract
foresees a term of 10 years, with a possible five-year extension,
and the order book value amounts up to $135 million (around
€112 million). The service started on 30th December 2021 and
it also includes attending more than 670 commercial business-
es. This contract will be managed from the company’s existing
facilities in the county, taking advantage of operational syner-
gies and demonstrating FCC Environmental Services’ commit-
ment to environmental sustainability.
FCC Environmental Services awarded 3-year
contract with the City of Garland (Texas)
FCC Environmental Services awarded new
contracts and renewals in Texas and Nebraska
FCC Environmental Services has been awarded the city of Gar-
land’s $14 million (about €12.5 million) three-year recyclables
management contract. With this contract, the company will
process nearly 14,000 tonnes of recyclables produced each
year by Garland’s 230,000 residents at its recently opened re-
cycling plant in Dallas, Texas.
FCC Environmental Services strengthens its presence in the
states of Texas and Nebraska with new contract awards and
renewals. On one hand, it has been awarded a new waste
collection contract in Omaha (Nebraska) for one year, and the
contract for the city of Mesquite (Texas) for the management
of recyclables has been extended. On the other hand, it has
renewed for one year the contract for the management of recy-
clables for the city of Huntsville, a service provided at the com-
pany’s recycling plant in Houston, Texas.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Excelence and sustanibility | Page 1 of 7
_ 114
Excelence and sustanibility
AENOR COVID-19 Protocols and even Tourism Quality. Taking
a further step forward in 2021, FCC Medio Ambiente has cer-
tified the information security system, specifically VISION, the
“Smart platform for the delivery of services to cities”, the tool for
comprehensive management which allows to meet objectives
for excellence thus responding to current and future require-
ments from customers, referred to the provision of services.
The following graphic shows the historical evolution of the cer-
tifications or accreditations obtained in Spain by FCC Medio
Ambiente:
Service excellence
FCC Medio Ambiente’s commitment to excellence benefits its
entire value chain, from customers, suppliers, employees and,
of course, all the citizens living in the communities in which the
company provides services, mainly public customers.
For all these reasons, the services offered must have the allianc-
es of all stakeholders and must respond to their expectations
and to the trends in sustainability that mark the environment in
the medium and long term in a constantly evolving context.
Since its implementation nearly 25 years ago, the FCC
Environment Management System has evolved towards a 360º
integrated system model (quality, environment, OHS, R&D&I
and energy efficiency), based on the requirements of the main
international standards of recognised prestige and standardises
the work methodology developed in all the company’s con-
tracts, guaranteeing that the processes are carried out with rig-
our and in accordance with common procedures.
The Management System is an effective tool for assuring ex-
cellence to all stakeholders regarding quality, socially and envi-
ronmentally sustainable and innovative services. The constant
concern for customer satisfaction and the improvement of envi-
ronmental performance is what led FCC Medio Ambiente to im-
plement and certify management systems since 1997. The sys-
tem includes procedures for Quality, Environment, Occupational
Health and Safety, Energy Efficiency, Healthy Organisation, the
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Excelence and sustanibility | Page 2 of 7
_ 115
2021 Excellence Highlights
• Achievement of the certification in information security under
the UNE-ISO/IEC 27001:2014 standard. The VISION com-
prehensive management tool was certified, enabling FCC
Medio Ambiente and all its affiliates to meet the objectives set
and respond to current and future requirements from custom-
ers referred to the provision of services.
• Verification of the carbon footprint corresponding to the previ-
ous year’s data. The Greenhouse Gas (GHG) emissions inven-
tory totalled 2,256,356 tCO2e in 2020, of which 364,836.15
tCO2e corresponded to scopes 1+2. Most of the emissions
in these scopes are due to emissions associated with en-
ergy consumption (45%) and diffuse methane emissions in
landfills (39.8%) under operational control. Biological treat-
ment has a clear advantage over the landfill disposal option
in terms of emissions (15.2%), so a roadmap has been set
out in the 2050 Sustainability Strategy to promote biological
treatment in order to achieve the target of limiting landfilling
to 10% by 2035. In the period 2018-2020, a reduction of
4.28% in the average emission intensity was achieved com-
pared to the previous three-year period, thus obtaining for
the second consecutive year and the third time in its history
the “Calculo-Reduzco” (“I calculate – I reduce”) seal awarded
by the Spanish Office for Climate Change (OECC in Spanish)
belonging to the Ministry for the Ecological Transition and De-
mographic Challenge.
The OECC has recently awarded FCC Medio Ambiente the
2020 “Compenso” (“I compensate”) seal to add to the previ-
ous “Calculo-Reduzco”, for making effective the commitment
to reduce and participate in a CO2 absorption project. Seek-
ing to boost the environmental axis of its 2050 Sustainability
Strategy #ES2050. In order to partially offset its carbon foot-
print, the company is working with the organisation Bosques
Sostenibles on a certified reforestation project for 40 years in
the Sierra de Gredos.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Excelence and sustanibility | Page 3 of 7
_ 116
Sustainability
2021 Sustainability
highlights
Play
There have been several important milestones in terms of sus-
tainability within FCC Medio Ambiente during the year 2021:
• FCC Medio Ambiente launched its Sustainability Strategy
with a vision to 2050, aimed at all activities in Spain and Por-
tugal. It is an ambitious 30-year project, reflecting the com-
pany’s commitment to support the achievement of the Sus-
tainable Development Goals (SDGs) and address economic,
social and environmental challenges at a global scale.
The 2050 Sustainability
Strategy reflects the
commitment to support
the achievement of the
Sustainable Development
Goals and address economic,
social and environmental
challenges at a global scale
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Excelence and sustanibility | Page 4 of 7
_ 117
• Verification of the 2019-2020 Sustainability Report which
publishes the achievements of the Sustainability Action
Plan 20-22. This Plan is based on an integrated and inclu-
sive management model, aligned with the principles of the
2050 Sustainability Strategy and within the framework of the
global challenges that mark the path to achieving the SDGs.
The publication of the report on a biennial basis allows the
company to take stock and report on the progress made in
achieving the goals and targets set for the periods indicated.
• Summary of the progress achieved in these two years. The
pandemic and the economic and social crisis resulting from it
have not allowed the company to meet some of the challeng-
es set for the year 2020, which has led it to extend them until
the year 2022.
The Sustainability
Action Plan 20-22 is based
on an integrated and inclusive
management model
Total:
Referred to categories:
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Excelence and sustanibility | Page 5 of 7
_ 118
Other Sustainability highlights
In terms of climate change, FCC Medio Ambiente achieved an
average emission intensity reduction for the period 2018-2020
of 4.28% compared to the three-year period 2017-2019, fo r
Scopes 1, 2 and 3, on its way to achieving carbon neutrality
by 2050.
• The Eastern Delegation of the Industrial Waste business ad-
hered to Catalonia’s climate action commitments.
equipment for reuse by disadvantaged people in order to re-
duce the digital divide in Spain.
• Joining the “Sustainable Digitalisation” initiative. This sol-
idarity initiative, promoted by the CEOE Foundation and
the SCRAPS, consists of donating electrical and electronic
• FCC Medio Ambiente was awarded the contract for the im-
plementation and support of the ZERO WASTE certification in
Las Tablas building (Madrid), headquarters of the FCC Group.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Excelence and sustanibility | Page 6 of 7
_ 119
AVANZA AWARDS
Innovation Category
Ex aequo for the projects:
Environment Category
• E-mobility Technologies in Building and Facility Mainte-
nance services
• Implementation of Multi-fraction Containers with restrict-
• Energy recovery from combustible waste as a replace-
Delegation: Barcelona Capital City and Balearic Islands
ed access and Smart Collection System
ment for natural gas
Delegation: Catalonia I
Delegation: TRISA, FCC Ámbito East Delegation
Authors: Miquel Boix i Moradell, Francesc Esquerra i Miró,
Carles Gimeno Romero and Julio Arribas Ríos
Authors: Alberto Arense Morales, Judit Ríos Llamas, Laura
Benítez Clemente, Agustí Gil Armengol and Ignasi Oller Corney
In the city of Girona, a new waste collection system has been
implemented, where the usual configuration of containers for
the five fractions has been replaced by a configuration of one
container for the organic fraction, one container for sanitary tex-
tiles and a multi-fraction container, which each day is allocated
to a different fraction (paper/cardboard, packaging, glass and
residual fraction) following a predefined allocation schedule. In
addition, smart containers with access control and volumetric
sensors have been installed.
The project proposes the use of combustible liquid waste as
a fuel in the Evapo-Oxidation Unit, thus replacing natural gas.
This achieves the recovery of waste as opposed to elimination
or disposal, as well as a reduction in CO2 emissions compared
to other types of processes. In economic terms, the consump-
tion of a resource for which we pay (natural gas) is reduced,
compared to a recoverable combustible waste for which we
receive an income, which means increasing the margin in the
management of this waste.
Author: Daniel Sanz Caro
FCC Medio Ambiente is committed to the implementation of
green technologies, which is why 22 units of PHEV KIA NIRO
cars with the Spanish DGT’s environmental Zero-Emission La-
bel have been incorporated, previously adapted for industrial
use. Moreover, additional charging points have been installed
throughout the work area so that the maintenance technicians
can optimise their journeys and thus maximise effective work-
ing times. In this way, employees start their working day at the
customer’s own centre without having to travel to the central fa-
cilities, also helping to minimise polluting emissions and reduce
the CO2 carbon footprint. Finally, a process of total digitalisation
of the service has been carried out.
NEW FLEET WITH THE SPANISH DGT´S ENVIRONMENTAL ZERO-EMISSION LABEL FOR THE CATALAN
HEALTH INSTITUTE AND CHARGING POINT FOR THE NEW ELECTRIC VEHICLES (BARCELONA)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Excelence and sustanibility | Page 7 of 7
_ 120
AVANZA AWARDS
Social Initiatives Category
Quality Category
• FCC Equal Comunidad Valenciana, a place for everyone
Ex aequo for the projects:
Delegation: Levante I
• Industry 4.0 with NODE-RED
• The Street Cleansing Influencers
Authors: Manuel Lage Laredo and Sergio Verner Tarín
Delegation: Andalucía I
Delegation: Levante II
FCC Equal CEE Comunidad Valenciana, S.L. is a Special Em-
ployment Centre, working towards the full integration of people
with functional diversity in the workplace. This project is charac-
terised by its ambitious spirit, something that is clearly reflected
in the growth of production and the number of workers, a figure
that has been multiplied almost fourfold in just two years. FCC
Equal Comunidad Valenciana has a young management team,
almost 60% of whom are under 40 years of age, which provides
great flexibility and learning capacity, and also promotes equal
opportunities for both sexes, by focusing on the presence of
women in positions of responsibility (71.4% of the management
team).
Authors: José María García Peinado, Carmen Cortés Valares,
Miguel Ángel Ávalos Sánchez, Víctor Jesús Martín Ibáñez and
Carlos Saiz Valera
Automation of processes using the Node-Red tool, from which
the PLC of a facility is read and acted upon. The aim is to auto-
matically “read” certain parameters of a facility and, for certain
circumstances, define action guidelines and instructions that
are automatically launched to initiate processes in the facility
without the need for intervention from the site’s operators. The
specific project is for the automation of the leachate treatment
plant at the Ecocentral Plant (Granada), achieving a 46% in-
crease in the volume of leachate treated and an 8% reduction in
energy consumption per m3.
Authors: Jorge García Sánchez, Alfonso Sánchez García and
Ángel Garcillán Fontecha
The aim is to inform citizens and receive their feedback through
social media about the different aspects related to the provided
services. The ultimate goal is to create a constantly growing
network of followers with whom to interact in order to solve their
doubts and complaints, as well as to receive suggestions and
help citizens as far as possible.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 1 of 13
_ 121
Innovation and technology
Throughout 2021 and despite the pandemic situation, FCC
Servicios Medio Ambiente kept on developing innovation
projects.
To alleviate
the unfavourable socio-economic conditions
caused by the pandemic, the Economic and Social Recovery
or Next Generation Funds promoted by the European Union
represented a development opportunity for many municipal-
ities. FCC will bring its customers value and know-how with
the mission of addressing an approach for the future based on
ground-breaking and innovative changes that will set the path
for growth in the coming years.
For another year, FCC Medio Ambiente upheld the certifica-
tion of its R&D&I Management System, in accordance with the
UNE 166002 standard. The projects under development or in
launching phase hosted by the system reached an investment
of €3.77 million in 2021 compared to €2.34 million in 2020,
an increase of 60.87%. They are classified into four areas of
knowledge:
• Vehicles, mobile machinery and facilities
• Management and recycling of waste - Circular Economy
•
Information and Communication Technologies
• Sustainable development
The Economic and
Social Recovery
or Next Generation Funds
represented a development
opportunity for many
municipalities
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 2 of 13
_ 122
Projects under development by line of work
Vehicles, mobile machinery and facilities
Projects associated with
VEHICLES AND MOBILE MACHINERY
As the most important and remarkable milestone of the year
2021, FCC Medio Ambiente has been granted funds for the
development of a new project named “Research and devel-
opment of a new heavy-duty vehicle for urban service ap-
plications with battery-hydrogen fuel cell hybrid technolo-
gy (H2TRUCK)” as part of the PTAS programme (Sustainable
Automotive Technology Programme) in the framework of the
funds granted by the Centre for the Development of Industrial
Technology (CDTI) and supported by the Ministry of Science
and Innovation within the Recovery, Transformation and Resil-
ience Plan funded by the European Union.
The project is being developed by a consortium led by FCC
Medio Ambiente and formed by prestigious companies such
as Irizar, Jema and Calvera, and complemented by important
public research bodies (PRBs) such as Insia, Tecnalia, Cidetec
and the National Hydrogen Centre. It must be completed by
December 2023, with a possible six-month extension, and has
an eligible expenditure of over €5.5 million.
The aim of the project is to manufacture a prototype waste
collection vehicle on a heavy-duty chassis-platform with
100%-electric propulsion powered by a hydrogen cell and
lithium-ion battery hybrid system, with the ambitious objec-
tive that in the future this hybrid chassis can be applied to any
equipment or machine that provides urban services, regardless
of the number and layout of axles or the bodywork installed on
it. Additionally, a mobile hydrogen-compression station will be
developed thus allowing the prototype vehicle to be refuelled
anywhere and therefore to work and be tested at any location.
On the other hand, throughout 2021 FCC Medio Ambiente has
consolidated the new research projects launched in the previ-
ous year and, with the collaboration of its suppliers, it now has
real prototypes under construction that will soon be in opera-
tion.
Rear-loading electric compactor collector.
These include the following:
• New
rear-loading electric compactor collector with
double-compartment bodywork, of 10 m3 capacity and very
small dimensions on a special narrow chassis 2.2 metres
wide. It works in electric mode throughout the collection pro-
cess and has a self-recharging system for the batteries by
means of a CNG engine.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 3 of 13
_ 123
• 100% electric tank vehicle for watering and washing streets,
pavements and pedestrian areas on a 2-metre-wide chassis
with a maximum authorised mass (MAM) of 18 tonnes. FCC
Medio Ambiente has worked with a European manufacturer
of new generation lithium-ion batteries so that they can be
installed in this first prototype.
• First unit of an innovative compressed natural gas compactor
collector, with a 2-metre-wide, side-loading body, on a chas-
sis of very reduced dimensions (2 metres wide and maximum
7 metres long), which allows a legal payload of 5 tonnes of
waste and which covers a range of side-loading collectors
that did not exist to date.
Innovative compressed natural
gas compactor collector on
a chassis of very reduced
dimensions
Pilot testing of the first all-electric urban service vehicle
in Omaha, Nebraska
FCC Environmental Services has tested its first all-electric
collection vehicle in Omaha Nebraska. The pilot test was
conducted in extreme conditions with very low temperatures.
Validation of the European Union project “Assets4Rail” of
FCC Environment Austria
FCC Environment has been taking part in the EU project
“Assets4Rail” which started in December 2018. Assets4Rail
is a 30-month Shift2Rail project for cleaning drainage sys-
tems in railway tunnels without blocking the traffic. The new
technology is able to clean tunnel drainage systems, includ-
ing their slots, and simultaneously provide images of the pipe.
During the validation test in May 2021 in the Pummersdorfer
tunnel in Austria (near Vienna), FCC successfully tested the
system and achieved a cleaning length of 1,024.5 metres.
USA Electric truck.
Drainage system cleaning tank.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 4 of 13
_ 124
Projects associated with FACILITIES
Compressed Natural Gas Station Expansion in Omaha,
Nebraska
Installation of sorting robots at the Dallas and Houston
Plants
Successfully completed in 2020 the new state-of-the-art
Compressed Natural Gas refuelling station in Omaha, with 72
refuelling slots and expecting an increase in customers due
to the signing of several commercial contracts, FCC Environ-
mental Services has planned an expansion to a total of 88
refuelling slots for current lorries and the future fleet, which
has been carried out by TRU STAR in May 2021.
FCC Environmental Services is committed to innovation in
technology as an essential tool to consolidate and develop
its position in the communities in which it operates. Over the
past 6 years, fully automated robots capable of sorting and
separating valuable materials during the final stages of the
waste sorting process have been installed at the Dallas and
Houston Recovery Plants. The technology provided by the
robot is based on a near-infrared (NIR) system that is highly
accurate in identifying materials.
Compressed Natural Gas refuelling station in Omaha.
Fully automated sorting robot.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 5 of 13
_ 125
Management and recycling of waste - Circular economy
Leader in renewable fuels
FCC Medio Ambiente is committed to converting the “waste
treatment centre” into a “producer of renewable fuels”. To this
end, it has opened a line of research through the development
of several projects financed within the framework of the EU’s
LIFE programme and a recently created line in which hydrogen
is generated from bio-waste:
ECLOSION: New materials, technologies and processes
for the generation, storage, transport and integration of
renewable hydrogen and biomethane, generated from bio-
waste (2021-2024)
ECLOSION Scheme.
The ECLOSION project will develop new materials, technolo-
gies and processes for the generation, storage, transport and
integration of renewable hydrogen and biomethane, generat-
ed from bio-waste (urban, agri-food, wastewater and sewage
sludge).
Developed by a consortium of eight Spanish companies, it
has the collaboration of 10 prestigious research organisations,
including research and technology centres (IMDEA Energía,
CSIC, CIEMAT, CARTIF and AICIA) and universities (Valladol-
id, Extremadura, Castilla-La Mancha, Autónoma of Madrid and
Girona).
FCC Medio Ambiente will validate at the Valladolid Waste Treat-
ment and Disposal Centre (WTDC) a novel biological (Dual Fer-
mentation 2.0) and thermochemical (supercritical gasification)
system for the energetic use of the organic fraction of munici-
pal solid waste (MSWOF) and agri-food waste, transforming it
into hydrogen and biomethane at low cost. The resulting gas
mixtures will be purified using innovative polymeric membranes
and membrane contactors. The technical feasibility of using the
plant’s leachates to produce H2 by means of an electrochemical
process (electrolysis) will also be investigated.
The project has a budget of €6.6 million and funding of €4.45
million from the Centre for the Development of Industrial Tech-
nology (CDTI), within the framework of the 2021 call of the
MISIONES CIENCIA E INNOVACIÓN Programme (Recovery,
Transformation and Resilience Plan), and is supported by the
Ministry of Science and Innovation of Spain. The aid granted to
the project is financed by the European Union through the EU
Next Generation Fund.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 6 of 13
_ 126
LIFE INFUSION (LIFE19 ENV/ES/000283: Intensive treat-
ment of waste effluents and conversion into useful sustain-
able outputs: biogas, nutrients, and water) (2020-2024)
For more information: www.lifeinfusion.eu
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.
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
project leader, AMB, AMIU, Aqualia, Cogersa, Detricon BVBA,
EBESA and IRTA), co-financed by the European LIFE pro-
gramme. It has a budget of €3.12 million.
LIFE LANDFILL BIOFUEL (LIFE18 ENV/ES/000256: Integral
management of the biogas from landfills for use as vehicle
fuel) (2019-2022)
For more information: www.landfillbiofuel.eu
Project co-financed by the European LIFE programme and ap-
proved in June 2019. It has a budget of €4.67 million and aims
to enrich landfill biogas to produce biomethane suitable for ve-
hicle use, achieving more efficient management by obtaining
biomethane from a clean and abundant energy source.
Prototype of the valorisation of the liquid fraction of the SSOF from
the Life Infusion project.
LIFE INFUSION Scheme.
Light vehicle powered by biomethane.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 7 of 13
_ 127
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 the Ecocentral Envi-
ronmental Compound in Granada, and in 2021 another project
started at the Domestic Waste Treatment and Disposal Centre
(CTR in Spanish) in Valladolid:
VALOMASK: Design and development of a sustainable
management process for discarded masks (2021-2022)
Project developed by FCC Medio Ambiente with the partic-
ipation of CARTIF to prevent masks from being disposed in
landfills, providing a new solution to one of the major current
environmental challenges arising from the context of COVID-19.
This project will develop a process to characterise, classify sep-
arate and finally recover value from them.
This project has a total budget of €630,000 and will be co-fi-
nanced by the Institute for Business Competitiveness of Castilla
and León, within the R&D Line 2021 projects in the context of
the COVID-19 outbreak.
LIFEPLASMIX (LIFE18 ENV/ES/000045: Plastic Mix Recov-
ery and PP & PS Recycling from Municipal Solid Waste)
(2019-2024)
For more information: www.lifeplasmix.com
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 PP). It has a budget of €5.34 million.
LIFE4FILM (LIFE17 ENV/ES/000229 Post-consumption film
plastic recycling from municipal solid waste) (2018-2022)
For more information: www.life4film.com
Project led by FCC Medio Ambiente, its main objective 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 capacity recovery
line at the Ecocentral Compound in Granada, with the aim of
demonstrating its profitability and replicability at a European
level.
LIFE PLASMIX Scheme.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 8 of 13
_ 128
The sustainable path for waste management
in optimisation of composting
Creation of new by-products and
biomaterials
INSECTUM: (Recovery of urban by-products and biowaste
through bioconversion with insects to generate innovative
products in strategic sectors)
A CIEN (National Business Research Consortium) programme
project from the CDTI (Centre for the Development of Industrial
Technology), 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 high
added value for the industry (human food sector, nutraceuticals/
pharma, animal nutrition, fertilisers and chemicals).
SCALIBUR (Scalable Technologies for Bio-Urban Waste
Recovery)
For more information: www.scalibur.eu
Horizon 2020 project that seeks to make the most of bio-waste,
producing new by-products and biomaterials from it. A complete
study of the quality, logistics and treatment systems for municipal
solid waste and WWTP sludge is carried out in order to obtain
new by-products with high added value.
SCALIBUR Scheme.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 9 of 13
_ 129
Creation of new by-products and
biomaterials (cont.)
B-FERST Bio-based fertilising products as the best prac-
tice for agricultural management sustainability
DEEP PURPLE Domestic Extraction of Emerging Products
with Purple Phototrophic Bacteria
For more information: www.bferst.eu
For more information: www.deep-purple.eu
The main goal of the project is to integrate the recovery of bio-
waste into agriculture by creating new bio-based circular econ-
omy value chains, generating new mineral and organomineral
fertilising products, as well as developing appropriate nutrient
blends for agricultural application.
This project is co-funded by the Bio-Based Industries Joint Un-
dertaking in the European Union’s Horizon 2020 Framework
Programme for Research and Innovation.
The project proposes a synergistic and integrated treatment for
the valorisation of three types of bio-waste: the organic fraction
of municipal solid waste, sludges from wastewater treatment
plants (WWTP) and urban wastewater, by means of a multi-plat-
form photo-biorefinery based on phototrophic purple bacteria.
This new concept will enable the generation of five new bio-
products with commercial applications in the cosmetics, plas-
tics, construction and fertiliser sectors.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 10 of 13
_ 130
Waste gasification
Waste management and recycling:
Use of wastewater for forestry and
agricultural applications
FCC Environment in Czech Republic in cooperation with ex-
perts from Technical University of Ostrava, the Institute of
Environmental Technologies and the University of Ostrava, is
seeking a method for the use of such waste sludge in agricul-
ture and forestry, within the framework of the Sludge-based
Substrate to Agricultural and Forest Land (SSTAFL) research
project.
The aim of the project is to develop and analyse mixed sub-
strates or soil improvers or plant preparations using dewatered,
sanitized, stabilized sludge from municipal wastewater treat-
ment plants. Knowledge and technologies applied in practice
will lead to an increase in agricultural and forestry production
bearing in mind the climate change (especially regarding the
lack of soil water content) as well as to improved soil quality,
consistent with the principles of sustainable soil management.
RECYGAS Urban solid waste recovery through the produc-
tion of recycled Syngas
For more information: https://www.energy.sener/es/proyec-
to/recygas-valorizacion-residuos-solidos-urbanos-median-
te-gas-reciclado
The project studies in more detail waste gasification and en-
ables the use of clean synthetic gas obtained from the gasifi-
cation 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 towards recycling.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 11 of 13
_ 131
Information and communication technologies
VISION
Within the framework of providing services to cities, it is essential
to consolidate ICT (Information and Communication Technolo-
gy) tools or technological systems that allow for the definition
of main challenges and that support the provision of effective,
efficient, sustainable and comprehensive services.
FCC Medio Ambiente has developed “VISION – Smart platform
for the delivery of services to the cities” which allows to meet the
objectives described, responding to the current requirements of
the customers and being prepared for the future challenges that
appear in the provision of the services.
• Analysis of water risk parameters associated with work cen-
tres. Based on graphic and alphanumeric information im-
ported from an international database, it makes it possible to
study the level of exposure to the main water risk parameters
for each work centre.
In order to store and manage production, legal, environmen-
tal, resources (material and human), validations and services
aspects that facilitate the orientation towards excellence in the
work, it is necessary that they are managed together through a
comprehensive system.
During 2021 technological upgrades were undertaken to ensure
performance, security and continuity for the business and spec-
ifications have been created and extended in different modules,
among which the following stand out:
• Integrated management of vehicle insurance. The insurances
generated by the insurance company are obtained, includ-
ing the policies, and their subsequent distribution to the con-
tracts.
• Map reports with VISION backgrounds. Added functionality
to print reference cartography in sector maps according to
user-defined backgrounds.
• Integration with SIRA, eSir and GAIA platforms to comply with
RD 553/2020. Creation of the necessary entities and struc-
tures for the creation of Shipment Preliminary Notes, as well
as Waste Identification Documents.
• Management of each contract’s occupational health and
safety risk assessment and issuance of the legal document,
which is required for all contracts.
• Integration of data associated with waste collection, between
the VISION platform and the management platforms from the
Municipalities Association for the region of Pamplona and
from El Prat de Llobregat City Council.
• Running jointly with Spot Amazon. Thanks to the operational
scale of AWS, Spot instances offer scalability and cost sav-
ings for running workloads.
Collection route with time calculations, distances and bin lifts.
Monthly deposit score card.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 12 of 13
_ 132
FCC ONLINE SOLUTIONS
Sustainable development
In line with the priorities defined in its strategy for the 2018-2022
term, FCC Environment continues to improve the existing online
products and developing and implementing new solutions and
communication channels with its customers.
• “Back2Life” (https://www.back2life.sk/): virtual second-hand
shop that supports the principle of reuse and the circular
economy, giving a second life to waste.
• Moje Smeti (My rubbish): Launch in June of an Innovative
automated electronic container emptying registration system
for cities, municipalities and citizens in Slovakia.
Effective sealing solution for metal mining
waste deposits for the control of potentially
toxic elements
Project initiated in 2021 that develops a novel effective sealing
procedure for mining waste deposits consisting of the instal-
lation of a multi-layer physical barrier based on a technology
proved in a pilot test on a small scale but pending validation at
higher levels to see its industrial viability. In addition, during the
project, the suitability of incorporating materials from waste of
different origins in the formation of granular sealing layers will be
researched, thus combining in the same project the develop-
ment of environmental care solutions with the promotion of the
circular economy.
The project has received funding from the he Centre for the
Development of Industrial Technology (CDTI), with the collabo-
ration of the Polytechnic University of Cartagena. The work will
be carried out in the region of Murcia, in an area with significant
environmental liabilities and it is expected that the project will
provide positive results that can be applied in this region and
contribute to improving its environmental quality.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Environment | Innovation and technology | Page 13 of 13
_ 133
KET4F-Gas
For more information – www.ket4f-gas.eu
In 2021, after three years of development, the Interreg SUDOE
project “KET4F-Gas – Reduction of the Environmental Impact
of Fluorinated Gases in the Sudoe Space through Key Ena-
bling Technologies”, in which FCC Ámbito has participated, has
concluded. As a result, two technologies have been achieved,
which are based on “green chemistry” processes nanotechnol-
ogies, advanced separation materials and processes that are
very easy to apply and have a sufficiently low implementation
cost to make recycling and reuse of refrigerant gase s econom-
ically attractive.
Bici Sendas (Cycle Lane) Project
The importance of this new technology is that, for the first time,
it offers an economical alternative for separating and recovering
refrigerant gases at the end of their useful life, restoring their
purity and therefore their efficiency. This way, it encourages the
recycling and reuse of gases instead of their emission into the
atmosphere, valorising waste and introducing circular economy
principles.
FCC Ámbito takes part in the Bici Sendas (Cycle Lane) CIEN
project, led by FCC Construcción, which aim is the develop-
ment of a new generation of cycle lanes that will be sustainable,
energy self-sufficient, smart, decontaminating, integrated and
safe. They will also be modular, produced with sustainable ma-
terials and can be custom-designed to integrate various tech-
nologies according to the needs to be covered.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 Letter from the Chairperson
and the CEO
Corporate
governance and ethics
Strategy
and value creation
FCC in 2021
Business lines
Financial Statements
FCC Group
Sustainability Report
Annual Corporate
Governance Report
5
FCC _ Annual Report 2021 | Business lines | End-to-end Water Management
_ 134
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.
End-to-end Water
Management cycle
Industry analysis _ 137
Activity in the Water Area _ 143
Highlights End-to-end
water management cycle 2021 _ 145
Service excellence _ 146
Innovation and technology _ 156
People and culture _ 164
Communication, marketing and CSR _ 180
Regulatory compliance _ 192
Digitalisation and cybersecurity _ 196
1234A1A2A3 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Page 1 of 2
_ 135
Aqualia provides technical solutions and provides quality ser-
vices in all phases of the end-to-end water cycle to improve
the well-being of the people and the communities where it op-
erates, preserving water resources and the environment and
improving management efficiency. One of its main references
are the United Nations’ (UN) Sustainable Development Goals
(SDGs), fully in accordance with the existing legal frameworks
in each region.
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 water supply, sanitation and treatment
problems.
Aqualia is one of the main international operators focusing its
management on specific business models and geographic are-
as and is guided by a growth objective that contains profitability
criteria. It also 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.
Aqualia’s most important
activity is the end‑to‑end
water management services
in municipalities
WWTP El Salitre, Bogota (Colombia).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Page 2 of 2
_ 136
These two business models, with significant investments, high
added value and a long duration, are another of Aqualia’s devel-
opment lines, on which part of its growth is based.
Other business models, such as O&M or EPC contracts, are
considered based on the unique opportunity of each project
and with a strategic vision.
In general, Aqualia competes for projects where either the fun-
damental competitive factor is in the technical ability or in the
quality of the services, and not exclusively the price, or are pro-
jects of a significant size, or they have a strategy interest or
potential synergies due to the territory, the technology or the
customer for who the contract is executed.
In EPC contracts, Aqualia takes advantage of the opportunity
afforded by its experience in leading construction companies to
create alliances to construct large infrastructures, which allows
the risk of construction to be reduced and/or transferred.
Aqualia consolidates and develops its activity in certain territo-
ries to avoid excessive dispersion and take advantage of syner-
gies on trade and scale.
In Europe, particularly with municipal concessions, this involves
maintaining the high renewal rates on its contracts and taking
advantage of the opportunities that may arise in both organic
growth and acquisitions that add value.
In LATAM, this is through the consolidation of long-term con-
tracts for municipal concessions, infrastructure concessions or
emblematic design and construction projects.
In MENA, via developing a consolidated position in infrastruc-
ture or O&M concession contracts with high added value.
WWTP El Salitre, Bogota (Colombia).
The most important activity is the end-to-end water manage-
ment services in municipalities through long-term concession
or asset ownership models, in countries with proven regulatory
systems.
Aqualia operates municipal water concessions in Spain, Por-
tugal, Italy, France and Colombia, as well as asset ownership
in the Czech Republic. One of the main aims is to consolidate
growth in these markets and extend its activity to other Eu-
ropean and Latin American countries that have consolidated
regulatory models.
Aqualia also develops alternative and/or complementary busi-
ness models, such as Infrastructure Concessions.
In these cases, Aqualia designs, builds, finances and operates
long-term infrastructures, often treatment plants (treatment, pu-
rification, desalination) through BOT-type contracts and take or
pay mechanisms, in which the recovery of the investment con-
nected to the infrastructure to operate is guaranteed without
taking on the risk of demand.
These formulas, which make it possible to combine technical
know-how with the ability to structure complex financing, are
increasingly in demand by operators or public agencies and in-
dustrial corporations in emerging countries.
Aqualia concentrates its activity through this business model in
Spain, LATAM (Mexico, Peru, Chile) and MENA (Saudi Arabia,
Algeria, Egypt and the United Arab Emirates).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Industry analysis | Page 1 of 6
_ 137
Industry analysis
End-to-end Water
Management Cycle
in Spain
During 2021, the effects
of the COVID‑19 pandemic
that began in Spain in
March 2020 continued
The effects of the COVID-19 pandemic that began in Spain in
March 2020 continued throughout 2021 in a more moderate
manner than in the first months of 2020. The State of Emergen-
cy remained in place throughout the whole country until May
2021. The different autonomous communities then began to
gradually relax the restrictive policies. Despite this, there was a
large fifth wave of infections during the summer that happened
again in December with a sixth wave.
Throughout the year, Aqualia has adapted the contingency
plans in force according to the health situation at any given
time. The current Plan has been adapted to the legal provisions
issued by the health and labour authorities in each territory.
Maintaining the appropriate labour measures (social distancing,
provision of PPE (Personal Protective Equipment), etc.), allows
us to provide our services normally. As a provider of a qualified
essential service, Aqualia did not experience any reduction in its
efficiency and quality standards while preserving occupational
health and safety levels.
No outbreaks of infection occurred in any production centre in
Spain, and activity has continued at all times at the water treat-
ment stations (DWTP), purification stations (WWTP), supply and
sanitation network operations, management of laboratories,
etc., which resulted in a congratulatory letter being received
from the Minister for Ecological Transition and Demographic
Challenge.
Aqualia’s workers during the COVID-19 state of emergency.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Industry analysis | Page 2 of 6
_ 138
Technological solutions have been promoted during the year
that have efficiently enabled teleworking, stock controls of es-
sential products have been reinforced, special action measures
have been implemented in sports centres, non-face-to-face
customer service channels have been strengthened (after spe-
cific communication campaigns with customers and city halls),
as well as implementing all the necessary hygienic-sanitary
measures.
In relation to tariff billing, in the first quarter of 2021 it was noted
– in comparative terms with the same quarter of the previous
year – that the effect of COVID-19 had had hardly any influence
in the first months of the previous year. In 2021, the incidence
was particularly noticeable in contracts in the Canary Islands,
where there were falls in volumes billed in that quarter of up
to 20.2%, mainly linked to the decline in tourism. Subsequent-
ly, consumption has been recovering gradually in all regions,
except in areas where consumption by hotels has a greater
weight (Canary Islands, Balearic Islands and some Mediterra-
nean coastal areas), where they have not yet reached pre-pan-
demic consumption levels. On a constant scope, end-user
water consumption (retail sale of water) has grown by 0.25%
in Spain as a whole in 2021 and the amounts billed by 1.55%
compared to 2020. If compared against 2019, the last year pri-
or to COVID-19, the average volume billed is still 0.8% lower,
although the amounts are similar in terms of tariff income. All
this is despite –throughout the year – consumption levels being
lower than those of the pandemic: 10.1% in the Canary Islands,
6.7% in the Balearic Islands and 2.0% in the province of Cadiz,
in Andalusia, which is estimated to recover in 2022.
Regarding the sale of water in bulk, the volumes supplied re-
covered by 4.9% in 2021 compared to 2020, with 8.9% still
remaining to reach the values of 2019. However, this type of
supply has little weight for Aqualia.
In October 2020, the Government of Spain presented the Euro-
pean Union (EU) with its Recovery, Transformation and Resil-
ience Plan for the Spanish economy, initially allocated 72 billion
euros. In December, the Law that implemented it was approved
and, in April 2021, the final proposal was sent. Finally, in June
the final amount of 69.5 billion euros was approved. Of these
funds, the Ministry of Ecological Transition and Demographic
Challenge (MITECO) has approved 2 billion euros for its WWTP
construction, energy transition and flood prevention projects.
Aqualia is developing proposals for photovoltaic generation,
water reuse and digitalisation. In this final area, the Minister for
Ecological Transition and Demographic Challenge has publicly
announced the approval of a Strategic Project for Economic
Recovery and Transformation (PERTE) for the digitalisation of
water uses in Spain – with a budget of 3 billion euros – in which
the specific urban water sector, where we are a key player, has
been allocated 1.92 billion euros. The first actions should be
awarded in the first half of 2022.
In the institutional and legislative field, the tenders for the Ur-
ban Water Cycle Table have been maintained throughout 2021,
with the presence of the Ministry, business associations, un-
ions and users, and is seen as the embryo of the future Urban
Water Observatory of Spain, included in the aforementioned
PERTE. Also noteworthy is the suspension of the Budget Sta-
bility Law during 2021 and 2022, which will allow municipalities
with a cash surplus to allocate the surpluses to undertake in-
vestments. The Congress approved the Climate Change and
Energy Transition Law, which gives priority to green electricity
sources and the reduction of CO2 emissions. The Government
has also approved the third review of the River Basin Hydro-
logical Plans for 2022–2027, with a planned investment of 21
billion euros. Finally, the Water Laws of Extremadura, Aragón,
Castilla-La Mancha and Galicia are under review, with a strong
commitment to regulating the urban water cycle.
Aqualia’s workers during the COVID-19 state of emergency.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Industry analysis | Page 3 of 6
_ 139
During the state of emergency that was extended until the end
of the year, cutting off the supply of water to vulnerable cus-
tomers who had failed to pay their bills was prohibited, but this
had no material impact on Aqualia’s capacity to generate rev-
enue.
In the year, work was done to reinforce the Spanish Associ-
ation of Urban 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 make society aware of management
companies’ high social commitment, the existence of a very rel-
evant global technological transfer, and the affordability of tariffs
for family economies in Spain, which are still low in comparative
terms relative to other Organisation for Economic Co-operation
and Development (OECD) countries.
The company’s permanent policy is the search for efficiency
in operational management, with the effort made in 2021 to
reduce costs, particularly in reducing variable consumption (en-
ergy and water purchases) has been noteworthy, an action that
has allowed us to improve the efficiency ratios, measured as the
gross result of the activity in relation to turnover.
Since the beginning of the year, the Spanish electricity mar-
ket has undergone a 145% increase in tariffs compared to the
same period the year before. The theoretical impact that this
resource could have had on the company in Spain has been
partially mitigated by efficient energy purchase management,
which was done by combining fixed-price contracts (18%), the
purchase of futures (41%) and PPA (Power Purchase Agree-
ment) (17%) contracting, which left only 23% of consumption
exposed to the market, and transferred to tariffs based on con-
tractual mechanisms.
Likewise, during the year, there has been a greater focus on re-
ducing costs linked to customer management through policies
to prosecute fraud in consumption measurements, the promo-
tion of electronic invoicing, the increase in direct debiting of bills
and control of bank fees, the reduction of on-site assistance
and moving this to other channels (telephone, social networks
and online).
In digitalisation, the technology centres of Dénia (Alicante) and
Toledo – where the comprehensive digital management tool for
Aqualia Live water services is being developed – have start-
ed operations, which allows for the integrated management of
the water networks, incidents, work orders, asset management
and meters. We are in the implementation phase in six other
territorial centres. The progress achieved here will allow us to
face up to the great digitalisation project of the water sector
– promoted by the Government of Spain – in very favourable
conditions.
Aqualia has promoted actions in Spain as a socially committed
company, renewing the agreements in place with ACNUR, Cari-
tas and the environment through several initiatives that seek to
reduce greenhouse gas emissions, prioritising green energies.
Within the social, economic and environmental responsibility
policy, the 2021–2023 Sustainability Plan has been approved.
Likewise, Aqualia, a founding partner of the StepbyWater Alli-
ance, has promoted the development of its founding objectives.
Felix Parra, CEO of Aqualia, presided over the celebration of the
First European Conference of the Alliance, which had the pres-
ence of the Third Vice President of the Government of Spain
and Minister for Ecological Transition and Demographic Chal-
lenge and the European Commissioner for the Environment,
Oceans and Fisheries.
In September, a drought was decreed in the Guadalquivir basin
and it is likely that it will extend to the Guadiana and other Anda-
lusian basins. It is not expected to affect our water distribution
capacity, as urban water is a preferred supply over agricultural,
sports and industrial water.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Industry analysis | Page 4 of 6
_ 140
End-to-end water
management cycle
in International
Internationally, Aqualia concentrated its 2021 activity in Europe,
the Middle East and North Africa (MENA) and Latin America
(LATAM).
Europe
In 2021, the COVID-19 pandemic affected consumption in Eu-
rope, reducing the supply volume to residential and non-resi-
dential customers in Portugal and the wholesale water activity
in the Czech Republic. However, Aqualia was able to maintain
the quality and continuity of service levels without notable op-
erational effects. The company moved forwards with its busi-
ness consolidation in France and its complete cultural and
operational integration in Aqualia to improve the service to the
more than 140,000 citizens who benefit from our water supply
and sanitation network management. In addition to the various
services that the acquired company had in 2019, in 2020 and
2021 new management, operation and renewal contracts for
water and sanitation networks were added, such as the water
distribution contract for Mantes and other municipalities in the
province de Yvelines (55,000 inhabitants), the sanitation con-
tract for Carrières-sous-Poissy and other nearby communities
(27,000 inhabitants) or the first sanitation contract with a large
treatment plant (with a treatment capacity of more than 225,000
m3/year) in Sausseron. On the other hand, the dynamics of the
French market have been largely conditioned by the takeover
bid carried out by two of the largest water and environment
groups in the world.
During 2021 in the Czech Republic, the political and social
debate has continued in regard to public action to guarantee
the water supply; this debate has been ongoing for a number of
years now as a result of the frequent droughts and flooding ex-
perienced 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. Within its
powers, the Ministry of Industry and Commerce and Transport
– for 2022 to 2026 – has approved a review of the tariff frame-
work in line with other provisions on the matter promoted by
different areas of the public sector. The review has focussed
on the adjusted 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, took an active role in the debates, in which
they were able to defend the maintenance of the economic
balance as a consequence of the regulatory amendment. It is
therefore estimated that the regulatory change will not have a
significant impact on the economic sustainability of Aqualia’s
Czech business. On the other hand, Aqualia was awarded new
contracts in the country, such as those for sanitation in No-
vojicinsko, Mosnov and Orlová (wastewater) or the end-to-end
cycle in Frenstat.
In Italy, there were no major developments at the regulatory and
commercial level, and the market is waiting for news on the con-
sequences of the corporate operation between two large global
operators with considerable exposure to the Italian market.
In Portugal, after the municipal elections in autumn 2021, it
is expected that various infrastructure development projects or
improvements to the management of the end-to-end water cy-
cle will gradually materialise within the robust Portuguese con-
cession framework.
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 from the disruptions caused by the pandemic and the sub-
sequent crisis.
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 Prziren project reached the hand over of the work
and is in the guarantee and assisted operation period.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Industry analysis | Page 5 of 6
_ 141
In Saudi Arabia, Aqualia completed the acquisition of 51% of
Qatarat and Haaisco from the prestigious Saudi group, Ali Reza,
in January. Qatarat is the concession holder for the King Ab-
dulaziz de Jeddah International Airport saltwater desalination
plant. Haaisco, in turn, operates the plant and other important
plants in the country, such as the desalination plant at Kaust
University. All plants have been running at full capacity to pro-
vide these essential services to the population during the pan-
demic.
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 Saudi Government, with very com-
petitive bids submitted for different projects.
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, our subsidiary, Aqualia MACE,
has continued to provide the operation and maintenance of the
collector networks, pumping stations and wastewater treat-
ment plants in the geographical areas of Al Ain and Abu Dhabi
without incidents and at full capacity throughout the pandemic.
Desalination plant in Mostaganem (Algeria).
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.
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, and obtained an extension on the contract
until 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 2022.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Industry analysis | Page 6 of 6
_ 142
USA
During 2021, 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
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 2021, Aqualia has consolidated its presence in Mexico, set-
ting a benchmark in the sector with a very diversified asset port-
folio.
The experience obtained in the BOT (Build, Operate, Transfer)
contracts at the Acueducto II project in Querétaro and Realito
in San Luis de Potosí, is providing us 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 2022.
In Colombia, the construction of the El Salitre WWTP (Waste-
water Treatment Plant) in El Salitre continued, with the pandem-
ic having a minimal impact on works thanks to the strict proto-
cols 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 multi-
lateral banking.
Despite the increased difficulties resulting from the COVID-19
pandemic, Aqualia fully integrated the services acquired in the
department of Córdoba, Aguas de Sinú, Uniaguas and OPSA,
as well as the municipality of Villa del Rosario into its manage-
ment in 2020.
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 2021, 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.
Port Sohar Intake (Oman).
During 2021 in Oman, Aqualia has continued with the end-to-
end management of the cycle in the Sohar port area through
its subsidiary Oman Sustainable Services Company, 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/d 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Activity in the Water Area | Page 1 of 2
_ 143
Activity in the Water Area
1. SPAIN
Community of Madrid
Madrid
Contract to renew pipes in the Canal
de Isabel II (Lot 7) supply network for
a period of 4 years.
€34.4 million.
Urgent renewal and repair actions to
the drinking water supply network and
reclaimed water network of Canal de
Isabel II (Lot Tajo) for a period of 4 years.
€26.4 million.
2
Castilla-La Mancha
Toledo
Operation and maintenance services
of the wastewater treatment plants
included in Zone 1 (Toledo) for a period
of 4 years.
€18.3 million.
Almadén and Chillón (Ciudad Real)
Concession for the water treatment
service in the municipalities for a period
of 20 years.
€7.5 million.
Albaladejo, Puebla del Príncipe and
Terrinches (Ciudad Real)
Public treatment service for a period
of 15 years.
€2.4 millions.
Cazalegas (Toledo)
Concession of the public water treatment
service in Cazalegas for a period of
20 years.
€1.5 million.
Piedrabuena (Ciudad Real)
Concession of the drinking water supply
service in Piedrabuena and
El Alcornocal for a period of 5 years.
€1.3 million.
Andalusia
Dos Hermanas (Seville)
Project to construct the Copero
environmental complex for
a period of 1.4 years.
€17 million.
Seville
Cleaning project for sanitation networks
in the territorial areas of EMASESA for a
period of 2.4 years.
2€.9 million.
Vilches (Jaén)
Renovation and expansion of the
wastewater treatment plant at the Vilches
de Aceites Coosur factory, including
operation and maintenance services for
a period of 5 years.
€2.1 million.
Guadahortuna (Granada)
Project and work to group discharges
and the wastewater treatment plant for a
period of 2 years.
€1.9 million.
6
3
1
4
5
Darro (Granada)
Concession of the public drinking
water supply and sewerage service
for a period of 10 years.
€1.3 million.
Malaga
Inspection service, preventive
maintenance and cleaning of the
sanitation network for a period of 1 year.
€0.9 million.
Morelábor (Granada)
Concession of the drinking water
supply and sewerage service for a period
of 10 years.
€0.6 million.
2. MEXICO
Los Cabos
Improved Comprehensive Management
in the Los Cabos area that includes
investment, operations, conservation and
maintenance through the Public-Private
Partnership scheme for a period of
10 years.
€48.3 million.
3. FRANCE
Mantes-la Jolie (Yvelines)
Concession of the public drinking
water service for a period of 6 years.
€29 million.
Puiseux-en-France
Concession of the public drinking water
distribution service of the Syndicat Mixte
d'Alimentation en Eau Potable SMAEP
DAMONA for a period of 8 years.
€6.9 million.
Nesles-la-Vallée (Ile-de-France)
Concession of the public supply service
for a period of 7 years.
€2.3 million.
Carrières-sous-Poissy,
Aulnay-sur-Mauldre, La Falaise, Nézel,
Juziers and Vaux-sur-Seine
Public lease service for the supply
networks and execution of works for
a period of 5 years.
€1.6 million.
Yvelines
Contract for the retail water supply
for a period of 9 years.
€1.3 million.
4. QATAR
Contract to renew assets and improve
the network for a period of 1.4 years.
€11.2 million.
5. SAUDI ARABIA
Jeddah
Design and construction of the drainage
system and storm tanks for the
Formula 1 circuit.
€4.6 million.
Jizan
Contract to operate and maintain a
seawater desalination plant for a period
of 3 years.
€9.3 million.
6. CZECH REPUBLIC
Koprivnice
Contract to operate and maintain the
sanitation system in the municipalities
of Koprivnice, Novy Jicín, Morkov and
Zivotice for a period of 10 years.
€5 million.
Frydek-Mistek (Moravia-Silesia)
Management of the supply service and
sewage network in the city for a period
of 10 years.
€4.7 million.
Frenstat pod Radhostem
Concession of the water and sewerage
service for a period of 10 years.
€1.7 million.
Orlová and Mosnov
Contract to operate and maintain of the
sewerage networks for a period of 5 and
10 years, respectively.
€1 million.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Activity in the Water Area | Page 2 of 2
_ 144
Expansions and
extensions to
already managed
contracts in Spain
Domestically, it is worth noting the renewal of 354 contracts
amounting to 873 million euros, among which the following
stand out:
• Salamanca
• Ibiza (Balearic Islands)
Extension of the management of the water supply, sanitation
Extension of the management of the water and sewerage
and treatment service in the city for a period of 5 years.
service in the city for a period of 1 year.
95.4 million euros
9 million euros
• Güímar (Santa Cruz de Tenerife, Canary Islands)
• Vigo (Pontevedra)
Concession of the drinking water supply and sewerage ser-
vice of the municipality for a period of 25 years.
85.3 million euros
• The Port of Santa María (Cadiz)
Service for the operation, maintenance and conservation of
the city’s wastewater treatment plant, sewage networks and
pumping stations, for a period of 10 years.
51.1 million euros
• Talavera de la Reina (Toledo)
Extension of the water and sewerage service in the city for a
period of 5 years.
40.9 million euros
• Consorcio de Louro (Pontevedra)
Operation, conservation, maintenance and other related ser-
vices of the facilities that are part of the Consortium to man-
age the urban water cycle for a period of 3 years.
94 million euros
Extension of the management of the technical-teaching ser-
vices for the City Council’s indoor swimming pools and gyms
for a period of 1 year.
2.8 million euros
• Bilbao (Vizcaya)
Maintenance service and breakdown management for the
secondary supply networks of the municipalities in Zone A of
the Bilbao Bizkaia Water Consortium for a period of 2 years.
2.6 million euros
• Sollano-Llantada (Zalla, Vizcaya)
Operation, control and maintenance service of the drinking
water treatment station for a period of 2 years.
2.3 million euros.
• Mutxamel (Alicante)
Extension of the operation and maintenance service for the
municipal desalination plant and its water distribution network
for a period of 1 year.
1.3 million euros
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Highligts 2021
_ 145
Highlights End-to-end water
management cycle 2021
January
The Mar de Alborán desalination plant
is a technical and management
challenge and becomes the first large
water production infrastructure owned
by Aqualia in Spain.
March
Aqualia is selected to operate and
maintain the desalination plant and the
drinking water distribution system in
the Jizan industrial area, in
southwestern Saudi Arabia.
May
Aqualia expands its presence in Mexico
after being awarded the comprehensive
improvement project for the Los Cabos
supply network, in Baja California Sur.
The contract includes the
modernisation, equipping, operation and
maintenance of the hydraulic
infrastructures for 10 years.
July
Aqualia presents its Dénia Technology
Centre (Alicante), based on fully digital
management, which makes the
Municipal Water Service a national
benchmark. The control centre unifies
all water management onto a single
platform, which can control 571 million
pieces of data per year. In addition, it
has enabled the greatest
implementation of remote meter reading
in Spain (96%).
September
The Guijuelo biofactory is recognised as
runner-up in the first edition of the
Innovation Award of the Spanish
Biomass Association (AVEBIOM), for
transforming the waste generated by
the treatment plant itself and the local
agri-food industries into energy,
biofuels, biofertilisers and
biodegradable plastics.
November
Through its French subsidiary, SEFO,
Aqualia is selected to manage the water
supply of 16 municipalities around
Mantes-la-Ville, in the Île-de-France
region (France).
February
Renewal of the Solidarity Fund
Agreement with the Chipiona City
Council and Aqualia for the allocation
of 10,000 euros to pay water,
sewage, discharge and purification
bills for people with economic
difficulties.
April
The First StepbyWater Conference
places water as a key element in
Europe's ecological transition.
June
A report on the detection of COVID-19
in wastewater wins the 5th Aqualia
Journalism Award.
August
Aqualia reaches 6,000 hours of
digital training with the Children's
Digital Drawing Contest.
October
Vigo City Council and Aqualia lay the
first stone of the city's new Drinking
Water Treatment Plant (DWTP), an
estimated investment of 23 million
euros, which will apply ultrafiltration
membranes to improve the quality of
the drinking water.
December
Aqualia approves the 2023
Strategic Plan with the clear goal of
integrating triple sustainability as a
cross-cutting aspect of the strategy
to be followed in the coming years
and charting and measuring the
company's performance in relation
to the SDGs, establishing targets to
be met in the short, medium and
long term.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Service excellence | Page 1 of 10
_ 146
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
services adapted to its users’ needs. In 2021, progress contin-
ued in terms of gearing the strategy towards end customers,
particularly focusing on the quality of the channels used to in-
teract with our users, enhancing the investment in technology
particularly during this year that has been so hard hit by the
pandemic.
Customer service channels
In 2021, the main management indicators for our aqualiacon-
tact customer service channels are the following:
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 guarantees.
• The specialised service of our managers, in addition to the
proactive nature and speed in carrying out the telephone ser-
vice using the Presence (Evolution) solution, allows custom-
ers to receive assistance with no downtime via the different
customer service and fault reporting channels, such as; Tele-
phone Customer Service Centre, Virtual Office, App, Twitter
and Email.
• Virtual office, aqualiacontact. In 2021, 177,940 interactions
were handled, 8.16% more than 2020. In total, 31.93% in-
teractions were related to amending data, 22.67% electronic
invoicing and 23.98% bank card payments.
• Telephone customer service. In 2021, 1,203,947 calls
were received by the Customer Service Centre.
The over-the-phone Customer Service Centre was used to
set up an appointment service to prevent waiting times and
• App for mobile devices. In 2021, using the app available
to our customers, 117,439 interactions were processed,
45.42%% up on 2020, with 76.69% of these regarding pay-
ment by bank card and 13.53% to amend data.
Customer viewing the aqualiacontact website.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Service excellence | Page 2 of 10
_ 147
The following objectives have been set for this:
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 at the start of 2022, will enable all
the channels to be interrelated in real time with better ac-
cessibility, availability 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 oth-
er systems, such as the Diversa commercial system, which
provides sufficient flexibility, guarantees availability and agile
and flexible access to information through guided process-
es.
2. A better quality and more pleasant experience for cus-
tomers
• 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.
4. Search for resources and technologies allowing greater
service, with a more streamlined and efficient manage-
ment for our customers, such as:
• WhatsApp professional.
• Click to call from the website.
• Payments through Bizum.
• Electronic invoicing management by mail.
• Customer management web platform for communication
via SMS, mail, bill payment link, etc.
• Electronic signing of documentation.
Aqualia Call Centre, aqualiacontact, Madrid (Spain).
• Twitter Through the @aqualiacontact account, messages
sent by users are managed and dealt with (1,107 in 2021).
SMS messages for notifications of bills and incidents and
warnings of failures in networks are also possible (915,097
SMS messages in 2021).
The efficiency of all customer relationship channels allows for a
very reduced number of claims; 0.43% in 2021 with a max-
imum claim response time set at 15 calendar days. The
maximum average meter installation time (from request) of five
calendar days is also noteworthy.
• Electronic invoicing. In 2021, 87,356 customers asked to
activate the electronic invoicing service, up by 87% year on
year.
To meet the high expectations our customers have of the ser-
vice offered by Aqualia, we will continue making progress to be
able to provide all our customers with a quality omnichannel
experience when they interact with the company.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Service excellence | Page 3 of 10
_ 148
Billing and managing
collections
The Customer Management department has kept the same
strategic vision in the evolution of management tools, as well as
in advancing new utilities in the Business Intelligence tool. New
improvements have been developed regarding fraud informa-
tion, including the type of fraud and the final status of the file.
In large consumers, the average age of the meters is included
and, with respect to the unbilled production, the information
has been improved by adding the overview by service provid-
ed, type of customer, concept and billing cycle. The guarantee
management information control panel has also been devel-
oped, with status values and their evolution. On the other hand,
the gathering of the requirements necessary to implement the
billing and debt management tool for non-rate concepts in ser-
vices in France has been completed.
At December 2021, billing has varied compared to the previous
year with a slight increase in m3 consumption by 0.04%, mainly
due to the increase in non-domestic consumption (4.60%) and
wholesale water consumption (3.95%), with a decrease in do-
mestic (2.07%). This trend means that, at the end of December
2021, there is a 2.43% increase in the billing amount com-
pared to 2020, and a 0.52% increase compared to 2019
prior to pandemic data, which ratifies the recovery of billing
at the end of 2021 (data excludes Colombia).
1. Average collection period and non‑payment
The continuous improvement of management has brought the
average collection period tariff in Spain to 1.93 months and a
total of 2.19, maintaining the trend seen in the previous years.
This has been achieved by stepping of managing has allowed
the correct management of payments, despite the impact of
the pandemic.
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 Rosa-
rio acquired in Colombia in 2020, the acquisition of the French
companies of the SPIE Group in 2019, the acquisition of Qat-
arat and Haaisco (Saudi Arabia) in January 2020 and the take-
over and initial consolidation of Acueducto El Realito (Mexico)
in June 2021. This figure has also been affected by progress
with the works at the Glina WWTP (Romania) and the El Salitre
WWTP (Colombia).
AVERAGE COLLECTION PERIOD. SPAIN
AVERAGE COLLECTION PERIOD. INTERNATIONAL AREA
4.14
3.81
3.26
3.16
2.81 2.74
2.34 2.22 2.35
2.19
5 4.74
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
4.42
3.95
3.78 3.30 3.17
2.89
2.94
3.02
2.82
2.40
2.10
Dec
2011
Dec
2012
Dec
2013
Dec
2014
Dec
2015
Dec
2016
Dec
2017
Dec
2018
Dec
2019
Dec
2020
Dec
2021
Dec
2011
Dec
2012
Dec
2013
Dec
2014
Dec
2015
Dec
2016
Dec
2017
Dec
2018
Dec
2019
Dec
2020
Dec
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Service excellence | Page 4 of 10
_ 149
In the tariff processes, the structural default has been improving
every year, with Spain improving most, and has developed as
follows:
STRUCTURAL DEFAULT. SPAIN
0.76%
0.74%
0.72%
0.78%
0.76%
0.74%
0.72%
0.70%
0.68%
0.66%
0.64%
0.62%
0.60%
0.71%
0.69%
0.68% 0.67%
0.66%
Dec
2014
Dec
2015
Dec
2016
Dec
2017
Dec
2018
Dec
2019
Dec
2020
Dec
2021
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 17.2% increase
in the number of bills issued electronically up to December 2021
compared to the previous year, reaching a global rate of 17.9%
in Spain and a cumulative global rate of 15.9%, contributing to
preserving the environment, with 627,499 customers choosing
to receive this type of bill.
To minimise the difference between the volume of water sup-
plied 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 monitoring
systems and renewing those that become obsolete to prevent
leaks insofar as possible, plans are designed to detect the
fraudulent use or actions involving drinking water. From January
to December 2021, over 20,304 frauds, worth an equivalent
consumption amount of 4.6 million euros, were detected. In
addition to these actions, over 360,913 metering devices were
renewed in many different contracts.
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 (TPL), providing it with
online and offline functions with the current DIVERSA commer-
cial 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 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 in Madrid.
• It was then rolled out in Ávila, Salamanca, Lleida, Lliria, Sant
Josep (Ibiza), Écija, Jaén, Sanlúcar de Barrameda (Cadiz) and
Mérida with satisfactorily results, allowing the mass roll out of
the project.
• At December 2020, it was implemented in:
– 439 services implemented (Spain) and 6 (Italy and Portu-
gal).
– 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.
• The total the roll out was completed in the FIRST QUARTER
(Q1) 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Service excellence | Page 5 of 10
_ 150
3. CRM Microsoft Dynamics
The new customer services module uses Microsoft Dynamics
CRM 365. This solution provides customers with a comprehen-
sive 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 carried out by technical team and the business team
in 2021 saw satisfactory results and production is planned to
start in the first quarter of 2022.
4. Electronic document signature project
The face-to-face contracting process carried out in our offic-
es involves customers signing various documents, which are
scanned and stored in a virtual SharePoint repository.
The advanced electronic signature project has been developed
to optimise this manual process.
The electronic signature project includes two types:
• Biometric signature. Customers sign the document on an
electronic device that collects their signature and biometric
data.
• OTP (One-Time Password) signature. A signature system
with a personal password and one-time code, which is sent
to the customer by SMS to digitally sign documents.
Associated with this process is the “signature operation re-
cord”, which is the document where all the electronic evidence
of the signing process is collected. This record is signed elec-
tronically with a certificate, thereby guaranteeing the integrity of
the record.
The signed documents, the signature and the record are auto-
matically stored in the virtual SharePoint repository.
Tests are currently being conducted by the technical team and
the business team, and it is scheduled to go live in the first
quarter of 2022.
Data protection
In Spain, following the entry into force of Regulation EU
2016/679, GDPR, on 25 May 2018, and the entry into force
of Organic Law 3/2018, on Personal Data Protection and the
Guarantee of Digital Rights (LOPDGDD) on 5 December 2018,
Aqualia embarked on a regulatory adaptation process 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:
As part of the adaptation process, the e-privacy 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.
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Service excellence | Page 6 of 10
_ 151
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.
INITIAL STATUS MAY 2018
RISKS:
LIKELIHOOD
Very high - Maximum
High - Significant
Average - Limited
Low - Immaterial
0
4
132
0
0
171
468
1
0
0
224
0
0
0
0
0
Very low -
Immaterial
Average -
Limited
High -
Significant
Very high -
Maximum
IMPACT
STATUS DECEMBER 2021
RISKS:
LIKELIHOOD
Very high - Maximum
High - Significant
Average - Limited
Low - Immaterial
0
0
10
127
0
0
92
631
0
0
18
203
0
0
0
0
Very low -
Immaterial
Average -
Limited
High -
Significant
Very high -
Maximum
IMPACT
Social action
Although the capacity to set rates and regulate the services pro-
vided in the end-to-end 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.
Information on tariffs and social vouchers has been published
on the Aqualia website and is available to all users. In turn, in the
notifications sent to customers, Aqualia reports on the possibil-
ity of setting up deferred payment plans. During this year, more
than 6,906 payment plans have been agreed.
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
services adapted to its users’ needs. In 2021, progress contin-
ued in terms of gearing the strategy towards end customers,
particularly focusing on the quality of the channels used to in-
teract with our users, enhancing the investment in technology
particularly during this year that has been so hard hit by the
pandemic.
For 2021, the extension of the adaptation work started in 2020
was planned, such as:
• International data transfer project between FCC Group com-
panies.
• Storage terms project for FCC Group data.
• Adaptation of Aqualia’s National Security Framework.
• Review and approval of the data protection clause relating to
vehicles, specifically that relating to geolocation and telemetry
(in addition to retention periods).
• Review of the data protection clause in relation to the use of
personal contact data of employees who hot desk.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Service excellence | Page 7 of 10
_ 152
Efficient and sustainable management
Management systems
As one of its main objectives, Aqualia continues to support
compliance with the United Nations’ Sustainable Development
Goals (SDG), focusing on those that affect the water sector and
its stakeholders:
PRIORITY COMMITMENTS ON ACCOUNT OF ITS ACTIVITIES
No. 3 Promote well-being for all.
No. 6 Sustainable water and sanitation.
No. 7 Non-polluting energy.
No. 8 Promote sustained economic growth.
No. 9 Build resilient infrastructure.
No. 11 Create sustainable cities.
No. 12 Ensure sustainable consumption and production
patterns.
No. 13 Take urgent action to combat climate change.
No. 14 Conserve marine resources sustainably.
No. 15 Combat desertification and protect biodiversity.
No. 17 Alliances to achieve the objectives.
CORPORATE COMMITMENTS
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Service excellence | Page 8 of 10
_ 153
2. Increase in the efficiency of internal audit processes,
publishing integrated reports, and external audit processes
by collaborating with very highly-qualified auditors who per-
form audits on the Quality, Environmental and Energy Man-
agement systems, 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.
• 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.
Aqualia continues with the
strategy of creating shared
value, responding to the
expectations of its stakeholders
and making greater use the
tools that allow the social and
environmental impacts to be
known and measured
Rafael García Meiro, CEO of AENOR, presenting the certificate
as the first operator of the end-to-end water cycle to certify its
contribution to the SDGs, to Félix Parra, CEO of Aqualia.
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. Implementation of the new ISO 45001 in Aqualia’s Man-
agement System, revising and updating all the procedures
and coordinating internal and external audit processes
(AENOR).
• Review of the Plan to Reduce the Carbon Footprint of
6. Participation in AENOR meetings and conferences and in
Aqualia’s activities.
AEC (Spanish Quality Association) work groups
• Verification of the emissions avoided in the CLIMA Project
of the OECC of 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 correspond-
ing controls.
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
stakeholders has been maintained. This consists of incor-
porating the treatment of Aqualia’s stakeholders into the
Management System 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, Corporate Social Responsi-
bility, HR, etc.).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Service excellence | Page 9 of 10
_ 154
Energy management
The energy management of production facilities is a strategic
line of action for the company since it was founded, with the
optimisation of energy consumption an objective of continuous
improvement.
This is reflected in the calculation of the company’s Carbon
Footprint for its operations in Spain, verified based on the guide-
lines of UNE-EN ISO 14064 from AENOR, where the impact of
energy management (Scope 2) can be seen in a 13% reduction
in emissions compared to the previous year.
To this end, several projects were implemented in 2020 that
seek to reduce greenhouse gases (GHGs).
The signing of a PPA (Power Purchase Agreement) for 76 GWh/
year of renewable energy (solar), that came into force in July
will help to reduce emissions by 15,200 tonnes of CO2 eq/year.
Furthermore, the installation project for 3.2 MWp of peak power
in the form of solar panels, supplying 26 consumption points,
with an annual expected production of 5 GWh/year, which
translates into a reduction in GHG emissions of 1,000 tonnes
of CO2 eq/year.
During 2021, the second phase of installing solar panels began,
where the objective is to reduce a further 820 tonnes of CO2eq/
year through the installation of 3.14 MWp of photovoltaic pan-
els, which will supply 52 consumption points.
A special mention should be given to the installation of a 0.84
MWp photovoltaic park in the La Cartuja WWTP, in Jerez de la
Frontera.
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 com-
pany’s total consumption to energy auditors (in accordance
with ISO 50001 - Energy Management Systems). To monitor
the opportunities for improvement detected in the audits, an IT
tool has been launched. This tool is integrated with Aqualia’s
technical analysis/reporting tool (AqualiaRT/AqualiaBI), enabling
the activities and results obtained to be monitored.
Among the actions being carried out is the pilot for an energy
optimisation system for offices and warehouses, to initially be
developed in seven locations with the aim of rationalising the
use of energy for lighting and air conditioning in these admin-
istrative centres. The implementation is expected between the
end of 2021 and the first quarter of 2022.
GREENHOUSE GAS EMISSIONS 2020
GREENHOUSE GAS EMISSIONS. SPAIN 2019
t CO2
t CH4
t N2O
9,984.80
63,437.10
14,571.00
2,233.50
0.00
0.00
24.30
0.00
62.80
GHG 2020
(t CO2e)
78,971.30
63,437.10
31,201.40
%
45.49%
36.54%
17.97%
87,992.90
2,233.50
87.10
173,609.80
Scope 1
Scope 2
Scope 3
Total
t CO2
t CH4
t N2O
Scope 1
Scope 2
Scope 3
Total
7,615.4
94,583.3
13,346.2
2,173.3
0.0
0.0
115,544.8
2,173.3
24.2
0.0
63.3
87.4
GHG 2020
(t CO2e)
74,876.9
94,583.3
30,111.1
199,571.3
%
37.5%
47.4%
15.1%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Service excellence | Page 10 of 10
_ 155
Technical management
Over the course of 2021, 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:
renovation actions and/or the expansion of the infrastructure
operated by the company.
Once installed in different locations in Spain, its roll out in France
and Italy will begin.
Energy management
Approval of hydraulic devices
• Implementation of the monitoring and control platform struc-
tured around improvement proposals and goals under differ-
ent contracts, in relation to energy efficiency, pursuant to ISO
50001-Energy Management Systems.
• Connection of the new electricity billing control platform, Syn-
ergica, with the technical reporting platform, AqualiaRT.
This allows the ratios of the various energy-dependent varia-
bles to be tracked, eliminating the possibility of human error.
• A new Energy Efficiency Working Group began operations,
whose main work will focus on publishing “good practices”
and the approval of high-efficiency devices.
Asset management
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
During this year, a system for approving materials and devices
to be used in supply networks is being implemented.
Whenever the average life of managed networks rises, with very
low renewal rates, it is essential to promote the use of materials
with the best guarantees of durability and performance.
Laboratories and collaborating entities are being studied to start
this activity, as well as preparing the approval flows.
Accredited laboratories
Technology transfer
Over the course of 2020, a new tool was launched to comple-
ment the work performed by the Innovation department: tech-
nology transfer.
During this year, projects such as ABAD (conversion of biogas
from purification into automotive biogas) and Remembrane
(recovery of desalination membranes for reuse) have been ap-
proved for production.
A new drinking water laboratory of the Aqualia Group in Vigo
has achieved accreditation from ENAC (National Accreditation
Entity).
With this new laboratory, Aqualia has a network of ten accred-
ited laboratories 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 National Research Council),
through the signing of an agreement, are analysing the waste-
water of different towns of Levante, Andalusia and the Balearic
Islands.
As part of the same agreement, the company’s staff are receiv-
ing training and comparison exercises for the implementation of
a PCR technique to be included in the range of services offered
by the laboratory in Oviedo (Asturias).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Innovation and technology | Page 1 of 8
_ 156
Innovation and technology
• Five from the European Life programme: IntExt, Ulises, Infu-
sion, Phoenix and Zero Waste Water.
PROJECTS DEVELOPED BY THE DIT
• Two from the EU Common Initiative / Bio-Based Industries
(BBI): B-Ferst and Deep Purple.
Quality
Innovation at Aqualia is guided by European Green Deal policies,
to reduce the carbon footprint to zero, thanks to the transition
to a circular economy with no environmental impact. The Inno-
vation and Technology department (DIT) develops new smart
management tools and new proposals for sustainable services,
supporting the company in achieving the United Nations’ Sus-
tainable Development Goals (SDGs). The priority points are: an
affordable and high-quality water and sanitation service (SDG
6), an optimised energy balance (SDG 7) without affecting the
climate (SDG 13) and the contribution to sustainable production
and consumption (SDG 12).
The following table shows the projects carried out in the Inno-
vation and Technology department in 2021 (in addition to the
completion dates) to strengthen Aqualia’s technological pro-
posal across four lines of work: Quality, Eco-efficiency, Smart
Management and Sustainability.
In 2021, three projects were carried out:
• An Interconecta project (ERDF): Advisor.
• Two projects as part of the EU’s H2020 framework: Sabana
and Run4Life.
Work has continued on the other 14 projects under way:
• A JPI WATERWORKS project MarAdentro (extended until
June 2022).
• Four from the EU’s H2020 programme: Scalibur, Rewaise,
Sea4Value and Ultimate.
• One Marie Sklodowska Curie (MSCA) training project: Rewa-
tergy.
In addition to the technological development, the latter is fo-
cused on scientific training, participating as an industrial partner
in the Rewatergy project under the H2020 Marie Sklodowska
Curie programme for academic networks in Europe, headed
by Rey Juan Carlos University. Two PhD researchers joined in
2021 to carry out practical work at Aqualia:
• From the University of Cambridge (United Kingdom), focus-
sing on the production of hydrogen from the ammonium in
wastewater, in the WWTP in Lerida.
• From the University of Ulster (Northern Ireland), developing
photo disinfection and electro-disinfection processes to re-
move micro-contaminants from drinking water and wastewa-
ter in the Jerez WWTP.
Thanks to the tenders in 2020, has started on two new projects
in 2021:
• A Regional RIS3 Idepa project in Asturias: ReCarbon.
• One from the European Life programme: Reseau.
• One from the EU’s H2020 programme: Nice.
Life Zero Waste Water (2024)
Life Infusion (2024)
Life Reseau (2025)
Intelligent Management
H2020 Run4Life (2021)
H2020 Rewaise (2025)
Eco-efficiency
INTERCONECTA Advisor (2021)
WATERWORKS Maradentro (2022)
RIS3 IDEPA Recarbon (2022)
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)
H2020 Nice (2025)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Innovation and technology | Page 2 of 8
_ 157
Projects completed in 2021
The following results have been obtained from the three pro-
jects completed in 2021:
• Interconecta (ERDF) Advisor
• H2020 Run4Life
With the aim of achieving a circular economy in the agro-in-
dustrial activity of Guijuelo (Salamanca), and avoiding the
cost and impact of waste management from the meat in-
dustry, new recovery solutions have been demonstrated at
the WWTP operated by Aqualia. Adapting co-digestion to
slaughterhouse waste, with the validation of thermal pretreat-
ment and innovative control systems, the treatment plant has
increased its energy self-sufficiency. The increased produc-
tion of biogas, and its enrichment with the ABAD Bioenergy®
process, allows biomethane to be supplied to service vehi-
cles.
The ELSAR process, a new anaerobic reactor with bio-elec-
trochemical intensification, a patent shared with the Univer-
sity of Alcalá (Madrid), has also been demonstrated. In ad-
dition, transforming fatty residues into bioplastics has been
assessed and, in collaboration with farmers in the region, the
fertiliser value of the by-products has been demonstrated.
• H2020 Sabana
Led by The University of Almeria, the consortium of 11 entities
from five countries (including the Czech Republic and Hunga-
ry) includes three major companies: Aqualia, Westphalia (Ger-
many) and the Italian food group Veronesi. The project has
optimised the production of new biofertilisers and biostimu-
lants from algae, and in the WWTPs managed by Aqualia in
Mérida (Badajoz) and Hellín (Albacete) two biorefineries have
been set up from algae cultivation that total five hectares.
Led by Aqualia, this consortium brings together fifteen entities
across seven countries at four demo locations (Sneek (the
Netherlands), Ghent (Belgium), Helsingborg (Sweden) and
Vigo (Spain) to investigate new nutrient recovery concepts
from separating grey and black water. In the Zona Franca of
Vigo, Aqualia operates a membrane reactor (MBR) for grey
water in an office building, which is reused in toilets. Black
water is transformed into bioenergy in an anaerobic MBR. For
effluents, several nutrient recovery options have been test-
ed, followed by advanced oxidation to eliminate viruses and
emerging contaminants to favour reuse. A larger-scale pro-
totype facility has been prepared in the Balaídos neighbour-
hood of Vigo, with effluents from the Citroën industrial estate.
At the other two demonstration sites, grey and black wa-
ter are separated in hundreds of new apartments in Ghent
and Helsingborg, and organic kitchen waste is included in
anaerobic reactors. After opening the homes in 2020, and
the energy and nutrient recovery facilities entering service, the
service has been optimised through talking with users, re-
ducing water and energy consumption through decentralised
management.
Roberto Marín, Mayor of Guijuelo, in Salamanca (Spain), refuelling a vehicle
with the biogas generated in the biofactory of the municipal WWTP.
In Sneek, new vacuum toilets have been installed in about
30 houses, with minimal water consumption, facilitating di-
rect thermophilic digestion of sewage in a novel bioreactor
that allows a fertiliser to be produced directly. A key task was
assessing the effect of new fertilisers, verifying the quality and
safety of the effluents and by-products of the various nutrient
recovery processes through greenhouse cultivation trials.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Innovation and technology | Page 3 of 8
_ 158
Projects due to be completed in 2022
Another three projects, one as part of the RIS3 programme or-
ganised by IDEPA in Asturias, one by JPI WATER cofunded by
the CDTI and two as part of the H2020 programme, are in the
final phase of development in 2021, and are due to be complet-
ed in 2022:
OPTIMISED
ANAEROBIC DIGESTION
PROCESS
“We demonstrate the advantages
of Dual Anaerobic Digestion for
sewage sludge.”
Ledicia Pereira Gomez, Project Manager at Aqualia
30%
more biogas per kg
of dry solids
is the expected result of
the experiment.
• RIS3 ReCarbón
• JPI MarAdentro
• H2020 Scalibur
Financed by the Asturian agency IDEPA using ERDF and led
by INGEMAS, a local engineering company in Gijón (Asturi-
as) with two local SMEs (Biesca and InCo), Aqualia supports
CSIC’s INCAR (Carbon Science and Technology Institute) and
the CTIC (Information and Communication Technology Cen-
tre) in researching contaminant adsorption methods using
regenerated active carbon and biochar. This sustainable and
affordable adsorbent is being assessed for the cleaning of
biogas in the Chiclana de la Frontera (Cadiz), Lérida and Jerez
de la Frontera (Cadiz) WWTPs, as well as in the deodorisation
of the Luarca and San Claudio WWTPs in Oviedo.
Biochar is also being tested in innovative micropollutant ad-
sorption units, for which Aqualia’s accredited laboratory in
Oviedo develops advanced analysis methods, and new sen-
sors have been validated that allow real-time monitoring at
the El Grado WWTP and Cabornio DWTP in Oviedo.
The “Managed Aquifer Recharge: ADrEssiNg The Risks Of re-
generated water” project is led by the Institute of Environmen-
tal Diagnostics and Water Studies (IDAEA-CSIC) as part of
the European Horizon 2020 ERA-NETs Cofund WaterWorks
2018 programme, with the participation of partners in France,
Italy and Sweden, and studies soil as a tertiary treatment unit.
A 400 square metre infiltration system is being constructed at
the Medina del Campo WWTP (Valladolid) for the advanced
treatment of purified water and its reuse in the Groundwater
Recharge process compared to conventional tertiary treat-
ments. The scientific institutes develop system design and
simulation tools to optimise the operation and costs to elimi-
nate emerging contaminants.
The project led by the Itene technology centre brings to-
gether 21 partners from 10 countries, and focuses on the
reduction and recovery of waste on a European scale. 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 treat-
ment processes at the Estiviel WWTP (Toledo), testing im-
provements in the thickness and dual digestion 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, and
prototypes are being constructed at the Karviná WWTP.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Innovation and technology | Page 4 of 8
_ 159
Ongoing projects
Another five projects with European H2020 funding were in full
development in 2021, two in the BBI (Bio-Based Industries) in-
itiative, and two in the H2020 “Water Smart Economy” tender,
in addition to one focused on the recovery of minerals from the
desalination of brine. Also, in the EU’s LIFE programme, four
projects are have been implemented in facilities operated by
Aqualia, and another in cooperation with FCC Environment:
Symbolic start-up of the LIFE INText project in the Talavera de la Reina WWTP, Toledo (Spain).
• BBI Deep Purple
• BBI B-Ferst
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 bac-
teria (PPB) in anaerobic carousels. These bacteria use solar
energy to purify non-aerated wastewater and transform the
organic content of wastewater and urban waste into raw ma-
terials for biofuels, plastics, cellulose and new inputs for the
chemical and cosmetics industry.
Aqualia’s initial prototype is in operation at Toledo-Estiviel
WWTP, and a demonstration reactor ten times the size of this
prototype is being constructed in the Linares WWTP (Jaén).
Parallel activities are also planned for the SmVaK WWTP in
the Czech Republic and another planned demonstration site.
Led by Fertiberia, and with ten partners across six different
countries, Aqualia is involved in the development of new
bio-fertilisers using urban wastewater and by-products from
the agri-food industry. The potential of raw materials recov-
ered from urban waste and effluents to produce fertilisers in
three countries (Spain, Italy and the Czech Republic) is being
studied. A struvite precipitation system has also been built at
the Jerez WWTP to incorporate the recovered phosphorus
into a new Fertiberia biological-based fertiliser demonstration
plant in Huelva.
• LIFE IntExt
The project to optimise low-cost treatment technologies in
small towns is led by Aqualia, with the AIMEN and CENTA
technology centres and the University of Aarhus in Denmark,
supporting SMEs from Germany, Greece and France. The
aim is to minimise the cost of energy, the carbon footprint
and purification residues, providing sustainable solutions from
an ecological and economic perspective to urban centres
with fewer than 5,000 inhabitants. The demonstration plat-
form for 16 technologies was launched at the Talavera de la
Reina WWTP in Toledo, operated by Aqualia, which will offer
a tailor-made solution for isolated urbanisations.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Innovation and technology | Page 5 of 8
_ 160
Valdebebas WWTP, Madrid (Spain).
• LIFE Ulises
• LIFE Infusion
Three technology centres, CENTA, EnergyLab and CieSol of
the University of Almería, support Aqualia coordinating the
transformation of conventional WWTPs into “energy produc-
tion factories”, achieving energy self-sufficiency and elim-
inating their carbon footprint. Anaerobic pre-treatment with
the PUSH reactor has been implemented at the El Bobar
WWTP in Almería, operated by Aqualia, and has also been
successfully assessed at two WWTPs in Portugal. To improve
the energy balance, digestion with hydrolysis is intensified to
use bio-methane as fuel for vehicles with an ABAD BioEnergy
refining system and a dispenser.
After concluding the LIFE Methamorphosis project in Ecoparc
2, the Metropolitan Area of Barcelona (AMB) wanted to ex-
tend the operation of the pilots to prepare the designs of sev-
eral new resource recovery from urban solid waste plants. In
collaboration with the EureCat centre for technology and the
operator of Ecoparc 2, EBESA, the leachate digestion sys-
tem will be optimised with technology developed by Aqualia,
AnMBR and ELAN, adding an ammonium stripping system
produced by Belgian firm Detricon. Two waste management
firms, Cogersa in Asturias and AMIU in the region of Genoa
(Italy) are responsible for assessing the options for imple-
menting the solutions at their plants.
• LIFE Phoenix
Led by Aqualia and supported by the CETIM and CIESOL
technology centres, this project will optimise the tertiary treat-
ment to achieve the most ambitious goals of the new Europe-
an water reuse regulation (EU 2020/741). To assess different
effluents, for ADP in Portugal, the Regional Government of
Almeria and the Guadalquivir Hydrographic Confederation,
are constructing three mobile plants, one with a physical and
chemical treatment capacity of 50 m3/hour, one with a filter-
ing capacity of 30 m3/hour to be combined with various refin-
ing skids for ultra and nanofiltration membranes.
Furthermore, the European subsidiary Newland Entech has
provided ozone (O3) and ultraviolet UV disinfection, which will
allow advanced oxidisation and disinfection. A sensor from
the Dutch SME MicroLan for on-line microbiological measure-
ments is also being tested.
• LIFE Zero Waste Water
The project, led by Aqualia, with Canal de Isabel II as a partner,
is to install a combined treatment unit for Urban Wastewater
(ARU) and Organic Fraction of Urban Solid Waste (FORSU) at
the Valdebebas WWTP (Madrid). A 50 cubic metre3/day an-
aerobic AnMBR reactor will be fed, which will be followed by
the ELAN process at the water line, allowing purification with
a neutral carbon footprint. The use of FORSU at a municipal
level, using the sewerage system for transporting the mixture
in a single flow will be assessed.
In addition to the University of Valencia (co-holder of the
AnMBR patent) and the University of Santiago (Lugo)
(co-holder of the ELAN patent), the Portuguese SME Sim-
biente is involved in developing an advanced management
system, combining with the online microbiology quality mon-
itoring from the Austrian SME VWS (Vienna Water Systems).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Innovation and technology | Page 6 of 8
_ 161
• H2020 Sea4Value
• H2020 Ultimate
The EureCat technology centre coordinates 14 partners
from seven countries to recover resources from concentrat-
ed brines at seawater desalination plants (SWDP). Thanks
to 100% EU funding, at least eight innovative technological
solutions are in development at a basic scientific level. The
aim is to enrich the most valuable components of seawater
(lithium, caesium and rubidium) and recover critical raw ma-
terials (magnesium, boron, scandium, gallium, vanadium, in-
dium, molybdenum and cobalt) to a level of purity that makes
market exploitation feasible.
To analyse the technical and economic impact, pilot units
are to be implemented in the various SWDPs operated by
Aqualia to reinforce the Aqualia Desalination Innovation Cen-
tre in Dénia (Alicante) and develop a new platform in Tener-
ife (Canary Islands), adding the development of solutions to
recover brine to the new desalination methods. Work will be
done on the solar concentration of brine, selective magnesi-
um precipitation, the acquisition of chlorine dioxide and the
optimisation of permeated remineralisation with micronised
limestone, reducing CO2 consumption, cloudiness and the
size of facilities.
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 from the EU per project. In Ul-
timate, the Dutch technology centre KWR will coordinate 27
partners who will implement nine industry and water service
synergy demonstrations.
At the Mahou WWTP in Lérida, operated by Aqualia, an in-
dustrial-scale fluidised anaerobic reactor (FBBR / Elsar) is be-
ing installed, which will later be compared against an AnMBR
to recover biomethane and feed a fuel cell. Yeast co-digestion
is also being studied, as is support for another project part-
ner, Aitasa in Tarragona, where Aqualia is constructing a new
treatment for industrial effluents.
• H2020 Rewaise
Of the five projects financed in the EU’s “Smart Water Econ-
omy” tender, Aqualia leads the one with the largest business
involvement, as the 24 entities in the consortium include
water companies from the United Kingdom (Severn Trent),
Sweden (Vasyd) and Poland (AquaNet). Together with seven
SMEs and various universities in Croatia, Italy, Poland, the
Czech Republic, Sweden and the United Kingdom, new cir-
cular economy and digital management solutions are being
implemented in “living laboratories” including Aqualia opera-
tions in Badajoz, the Canary Islands, Dénia and Vigo.
Rewaise reinforces Aqualia’s technological development stra-
tegic lines, 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 process operation and control and networks
to optimise service efficiency and water quality.
Desalination Innovation Centre in Dénia, Alicante (Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Innovation and technology | Page 7 of 8
_ 162
Projects launched in 2021
In 2021, work began on two new European projects, taking the
Aqualia’s involvement in each of the major European support
programmes, LIFE and H2020, to eleven:
• H2020 Nice
The project, led by the CETIM technology centre with 14
partners from nine countries, focuses on natural solutions for
the purification and recovery of resources from wastewater,
such as wetlands or green belts. These options aimed at
sustainable cities will be implemented in a dozen sites, in-
cluding Aqualia’s facilities in Vigo, Talavera and Algeciras. The
pilots integrate developments by SMEs and Universities from
Denmark, France, Italy and Sweden, and include actions with
partners in Colombia and Egypt.
• LIFE Reseau
The Reseau project seeks to increase the resistance of ex-
isting hydraulic sanitation infrastructure against the impact of
climate change. Aqualia leads this project with the involve-
ment of ITG (Fundación Instituto Tecnológico de Galicia) and
VCS (VandCenterSyd AS) in Odense (Denmark). In Moaña
(Pontevedra), sensors (speeds, flows, etc.) will be installed
in the sanitation network to monitor and model its behaviour.
In addition, a 500 m3 aerobic granular reactor will be built
at the Moaña WWTP (Pontevedra) to treat up to 2,000 m3/
day of wastewater. Compared to conventional activated
sludge technology, this advanced biofilm system multiplies
the biological treatment capacity several times, improving
the WWTP’s ability to react to flow variations, and limiting the
space needed for its implementation. It also significantly re-
duces the environmental impact of the treatment by reduc-
ing energy needs and avoiding the emission of greenhouse
gases.
Drinking water treatment facility in Vigo (Spain).
Moaña WWTP, Pontevedra (España).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Innovation and technology | Page 8 of 8
_ 163
Patents
Throughout 2021, a new European patent, as well as an Amer-
ican one, have been obtained as a PCT extension of European
patents from 2020:
• Bioelectrochemical system that transforms salt and CO2 into
a disinfectant (Bioelectrochemical system for simultaneous
production of water disinfection agents and carbon-neutral
compounds./Device for disinfectant synthesis from salt cou-
pled to methanation of carbon dioxide - DARE, with the Uni-
versity of Girona). EP18382099.2 granted on 19/05/2021.
• Microbial Desalination Cell (MDC, together with IMDEA Agua):
after approving EP 3336064 A1 in 2020, the American patent
was received in March 2021 under no. 10954145
Three trademarks and a utility model were also registered:
• ELSAR (Electro Stimulated Anaerobic Reactor) for the bio-
electrochemical fluidised bed patent process that has been
developed with the University of Alcala. Method for Treating
Waste Water in a Fluidised Bed Bioreactor.
• AQUAVITE for the Struvite/Vivianite-based fertiliser product
obtained from co–o precipitation reactors in B-Ferst (Jerez) or
Run4Life (Guillarei).
• ANPHORA” (Anaerobic PHOtotropic RAceways) for purple
bacteria reactors in DEEP PURPLE (Advansist Patent with
URJC).
• From the LIFE Icirbus project, the process for removing
heavy metals in sludge for agricultural use is protected by
ES1268689.
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).
Publications and events
After the cancellation of many events due to COVID restrictions
in 2020, activities are recovering in terms of publications and
participation in conferences. The following table demonstrates
that the rate of references in various media is already close to
one mention per business day.
The documentary “Brave Blue World” (youtube.com/netflix
trailer BraveBlueWorld) that includes Aqualia DIT activities was
launched on Netflix in October 2020, and has been distributed
in more than 50 countries, winning such awards as “Best of
Show “ at indiefest/winners-feb-2021. In September, the DIT
also participated in a piece by cbsnews.com/Aqualia-commit-
ted-to-water-circularity:
PUBLICATIONS AND EVENTS
Scientific articles
Sector press
General press
International events
National events
Total
2019
2020
2021
12
108
139
24
19
302
5
63
93
14
11
186
6
69
186
30
26
317
Brave Blue World, the documentary that presents the most
sustainable future of water.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 1 of 16
_ 164
People and culture
General action lines
Around the “Be Aqualia” project, the various functions of the
People and Culture department converge under the common
direction and motto: people working for people.
Be Aqualia is the company’s cultural transformation project
through coherent and consistent intervention from human re-
sources. This intervention is in accordance with the company’s
strategic plan and business vision and is supported by people
management led by the company’s directors.
During this year, and with the key objective of becoming a
Healthy Organisation, work has continued on the basis of the
seven blocks of action identified as “health assets” that consti-
tute the different lines of work to be detailed later in the different
sections.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 2 of16
_ 165
Conciliation
Aqualia keeps its efr (family responsible company) certification
obtained in 2017 and recently renewed until 2023. The audit
was carried out by AENOR in February 2021. Aqualia has in-
creased its score since initial certification, and is now a C+ com-
pany.
In the interviews carried out by AENOR with the staff in Febru-
ary, it is noted that:
• 80% consider the work-life balance conditions to have im-
proved since the initial certification.
• 43% consider Aqualia to be above the sector in terms of
work-life balance and 45% say it is within the average.
• 94% consider that senior management and managers sup-
port a work-life balance.
In addition, a series of objectives have been set in terms of
work-life balance for 2021-2023 that have been approved by
the company’s management and are available to employees.
These are:
• Analyse and segment the “Be Aqualia Measures Catalogue”
Diversity and
equality
Diversity and inclusion social
Aqualia maintains its collaboration agreements with different
associations.
In 2021, Aqualia renewed its involvement in the Diversity Char-
ter, which it joined in 2018. By signing this charter, Aqualia
states that it respects current regulations on equal opportuni-
ties and anti-discrimination, and assumes the following basic
principles:
• Raise awareness: the principles of equal opportunities and
respect for diversity must be included in the company’s val-
ues and be disseminated among employees.
• Move forwards with building a diverse workforce.
• Promote inclusion.
to adapt it to the real needs of the different groups.
• Consider diversity in all people management policies.
• Communicate the “Be Aqualia Measures” effectively by
• Promote conciliation through a balance in work, family and
group.
leisure times.
• Extend the culture/ leadership in work-life balance.
• Extend and communicate the commitment to stakeholders.
• Extend the efr culture to the value chain.
Joining the #CEOPorLaDiversidad alliance (signed by Félix
Parra, CEO of Aqualia, in March 2021), a pioneering initiative in
Europe led by the Adecco Foundation and the CEOE Founda-
tion to unite companies and the people who run them around
the values of diversity, equity and inclusion. Aqualia is the only
company in its sector to be part of this agreement.
Within the Leading Programme, aimed at Aqualia managers
(carried out between April and June), a module on the impor-
tance of diversity and inclusion in the business environ-
ment was included.
Training in Diversity and management strategies aimed at
personnel from the people and culture department. The aim
of this course, taught by the Adecco Foundation, was to raise
awareness about co-responsibility in diversity management and
acquire the tools to define a diversity strategy and launch initi-
atives and projects that respond to the goals set. Twenty-four
people underwent this training in May 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 3 of 16
_ 166
Awareness raising in Diversity and Inclusion to the entire
workforce. This awareness raising develops the concepts of
equity, uniqueness and unity to move forwards with the com-
mitment to diversity in Aqualia. Employees with email access do
the course through the FCC Campus and a campaign is being
carried out through posters in different countries for employees
without access to a computer.
In 2021, a total of 1,960 people completed the first part of the
training. This awareness raising will continue throughout 2022
to contribute to the following challenges:
1. To promote an inclusive culture and leadership where diver-
sity is managed taking into account its four dimensions: 1.
Personality. 2. Internal Dimension (age, race, sex, sexual ori-
entation, ethnicity, physical abilities). 3. External Dimension
(family situation, values, beliefs, hobbies, etc.). 4. Corporate
Dimension (category, position, etc.).
2. To extend the culture and inclusive leadership in those
countries where Aqualia carries out its activity, provided that
it is adjusted to the legislation and culture of each country.
3. To reduce unconscious sex and discrimination biases of
people involved in selection processes.
With the Adecco Foundation, Aqualia continues to develop the
Family Plan aimed at children of employees with a certified dis-
ability greater than or equal to 33%. It also maintains the Collab-
oration Agreement with the Down Syndrome Foundation and
with FSC Inserta of ONCE.
Equality
Mentoring/Training
In 2020, the Fourth Mentoring Programme to Promote Female
Talent began. This Programme is aimed at continuing to pro-
mote the presence, visibility and involvement of women in the
organisation of the company and thereby facilitate the develop-
ment of their professional careers. This edition had seven “men-
tees” and three male mentors and four female mentors. This
program ended in November 2021.
Equality Distinction
Aqualia retains its “Equality in the Company” Distinction. In De-
cember 2020, the Third Extension was granted for a period of
three years. This distinction implies recognition of the Compa-
ny’s commitment to diversity and equal opportunities for men
and women from the Ministries of Health, Equality and Inclu-
sion, Social Security, and Migration.
Equality Plan
In 2021, Aqualia continued with its second Equality Plan in
which both the company and the majority state-wide unions re-
iterated their commitment to equal opportunities between men
and women.
On 5 October 2021, Aqualia signed its Third Equality Plan for
the period 2021-2025, thereby renewing its commitment to
guaranteeing equality between sexes (SDG 5) and the reduction
of inequalities (SDG 10).
Participants of the 2021 “Development Programme for Management –
Women with High Potential” by the School of Industrial Organisation (EOI).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 4 of 16
_ 167
Equality campaign developed in 2021 in Lleida (Spain).
Campaign against sex-based violence, developed in 2021 in Colombia.
The Third Equality Plan is adapted to the requirements of R.D
901/2020 of 13 October regulating equality plans and their reg-
istration, and R.D 902/2020 of 13 October on equal pay be-
tween men and women.
This Plan extends its application and thereby links all workers
who provide services in any FCC Aqualia, S.A. work centre,
as well as any subsidiary company with 50 or more workers
and where the Aqualia’s direct or indirect shareholding is greater
than 50% of the capital.
Campaigns:
Women’s Day, Sex‑based Violence, etc.
Executive Development Programme for Women
The company continues to show its commitment against
sex-based violence by launching and participating in different
awareness raising campaigns carried out in different municipal-
ities and with the collaboration of Aqualia’s staff.
In 2021, a new edition of the “Development Programme for
Management – Women with High Potential” by the School of
Industrial Organisation (EOI) was held, with three members of
the Aqualia workforce participating.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 5 of 16
_ 168
Leadership
During 2021, the Leading Programme was held, aimed at all
Aqualia managers, with the aim of developing the new leader-
ship skills that – now more than ever – are necessary to manage
teams in this changing environment.
The contents of the programme have focused on these points:
• The person in the centre.
• Emotions and their place in the work environment.
• The purpose that unites the team.
• Communication and team management.
• The new leadership.
• The importance of diversity and inclusion in the business en-
vironment.
Working environment
Aqualia, within its organisational culture of a commitment to
people, stages a work environment survey every two years. A
specific questionnaire was prepared in 2019 and, at the end of
2021, it was decided to reassess the situations previously stud-
ied and also adding key questions about the current situation
resulting from the international pandemic that began in 2020
and whose effects are still present.
It should be noted that the 2019 study was carried out in Spain,
while the following countries where Aqualia operates were also
included in 2021: Mexico, Colombia, Czech Republic, Egypt,
France, Italy, Oman and Portugal
Overall participation was 51.3% and 10 dimensions were an-
alysed: communication, company vision, culture, work-life
balance, processes, organisation, development, relationships,
management, involvement.
As an overall result, it should be noted that 89% stated that
they feel proud to work at Aqualia and 95.1% like their work. In
addition, 80.3% of those surveyed claimed that they have felt
accompanied and supported by the company during times of
lockdown.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 6 of 16
_ 169
Development
Professional and personal
development
Psicomet
Training
Aqualia makes this tool available to all employees that allows
them to check their mental and emotional well-being levels,
helping employees with the early identification of any psycho-
logical issue they may be experiencing.
Employee Assistance Program (PAE)
Psychological care service offered by expert psychologists to
help employees resolve any possible psychological and emo-
tional discomfort they are experiencing, either personally or at
work. The psychological care service is available 24 hours a
day, 7 days a week, no appointment is necessary and its use
is unlimited.
Interpersonal Conflict Management Procedure
This aims to be an effective tool to manage and resolve conflicts
that arise in the workplace through mediation (a voluntary pro-
cess in which the conflicting parties try to reach an agreement
by themselves with the assistance of an impartial and neutral
third person called a mediator).
Standard Jobs Manual
Throughout 2021, job descriptions in the organisation were
prepared, according to professional families and – within each
position – differentiating the mission, functions/responsibilities
and requirements (academic training, experience, technical
knowledge and languages). This manual is to be a basic tool for
organisational processes such as:
Training at Aqualia is linked to the Company’s strategic objec-
tives, to improving the performance of workers’ roles and to
ensuring health and well-being. Work is being done for this to
develop training adapted to the requirements of each job within
the Company.
In the health crisis that was still present in 2021, Aqualia con-
tinued with coronavirus training for employees who had not
yet received it, and 311 people completed this course this year.
The purpose of this course was to provide the organisation with
specific and up-to-date information on the organisational, hy-
gienic and technical measures implemented by the company
that allow us to create habits for high professional performance
in times of crisis.
The criterion followed by Aqualia for the 2021 Training Plan until
September was mainly to carry out mandatory training and that
which could be delivered effectively virtually and online.
Face-to-face training resumed in September due to the im-
proved COVID-19 health situation.
Overall, in all countries where Aqualia operates, 1,561 training
courses were organised in 2021 and 7,524 (5,769 men and
1,755 women) employees received 141,080 hours of training.
In October 2021, Aqualia published its new Language Training
Policy.
Throughout 2021, courses on the Office 365 Tools required for
the digital transformation process have continued to be taught.
In addition, a course on interpersonal conflict management
was offered and taken by 2,411 people.
To contribute to the well-being of its employees, Aqualia has
maintained the measures included in the Psicopack Be
Aqualia in 2021:
• Job assessment
• Staff selection
• Career plans
• Performance evaluation
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 7 of 16
_ 170
Likewise, in 2021 the training the Code of Ethics and Conduct
continued to be developed. Training has also been carried out
on anti-corruption: the relationship with public officials in
the FCC Group.
In 2021 courses have been
given on the Office 365 Tools
necessary for the digital
transformation process
Training in digital disconnection was also very important in
2021, and 2,496 people took this course that intends to con-
tribute to guaranteeing the right to digital disconnection: the
employee’s right not to use or connect to corporate online
media outside working hours, provided that they do not have
to comply with any urgent obligation or responsibility of their
job during that time. Similarly, it aims to prevent ‘techno-stress’
among employees.
Finally, cybersecurity training must be highlighted, which
makes workers aware of their crucial role in information secu-
rity, creates a culture of security and lays the foundations for
protection, both for our confidential information and that of our
customers and suppliers. Training completed by 2,155 people.
Accreditation of Professional Skills
Aqualia continues to promote and develop processes for the
accreditation of professional skills. In 2021, the second call for
the accreditation process began, registering 45 workers from
Aragón, La Rioja and Navarre (21 workers in Energy and Water
and 24 workers in Safety and Environment).
On the other hand, in 2021 the Department of Education has
published two public calls for staff in Catalonia for Energy and
Water certificates.
In the first call, Aqualia registered 11 workers, of which 10 have
achieved full certification and one worker partial certification.
In the second call, Aqualia registered seven workers. This call is
in the registration phase.
In the Valencian Community there are two public calls in pro-
cess:
• Call aimed at managers of water networks in which 12 Aqualia
workers have registered.
• Call aimed at monitors of Sports Centres in which 13 Aqualia
workers have registered.
It should be noted that two workers from Aqualia, from Aragon,
took the course to qualify as experts in the accreditation pro-
cess, allowing them to participate as advisors and assessors of
the Safety and Environment family and after passing it, the De-
partment of Education enabled them to participate in the next
calls.
Aqualia currently has 19 authorised experts (12 for energy and
water, seven for Safety and the Environment).
Looking ahead to 2022, Aqualia has already begun talks to re-
new the agreement that ends on 31/12/2022 since, due to the
pandemic, there are 535 workers left to be accredited.
Selecting and Attracting
Talent
Aqualia’s Selection and Professional Practices department con-
tinues to work in line with the company’s policies, using different
recruitment methods and sources to attract talent, guaran-
teeing cases objectivity and equal opportunities in the per-
sonnel selection and recruitment processes at all times.
To this end, throughout 2021 the new Personnel Selec-
tion procedures worked on during 2020 have been imple-
mented in Aqualia, in which the necessary amendments have
been contemplated to adapt them to the different areas and to
Aqualia’s business, nationally and internationally, with the aim of
improving selection processes and their quality.
In line with the job map also prepared in 2021, work has been
done on the description and assessment of jobs and pro-
fessional profiles, the application format for opening selec-
tion processes and the publishing style for job offers.
In addition, in 2021 the Employer Brand Image of Aqualia has
been worked on when publishing our job offers, investing in the
Employer Branding service the regular publication channels
and based on the Talent Attraction Project 4.0, especially for
people with a STEM profile (Aqualia’s adaptation to the climate
emergency, new technologies, renewable energies, etc.).
Example Employer Branding Infojobs: https://fcc-Aqualia.ofer-
tas-trabajo.infojobs.net/
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 8 of 16
_ 171
In 2021, the quality of interviews improved with a new Interview
Script, which is still being worked on with a view to its final
implementation in 2022, and in which the curricular profile of
the candidates, their skills and abilities are also analysed, and
ultimately, the adjustment to the company and our values
and key skills, as previously defined by the company.
During 2021, Aqualia once again invested in the major nation-
al and international job portals such as Infojobs and its ATS
E-Preselec or LinkedIn, and in adapting the skills and job map
of the The Key Talent platform tests contracted in 2020.
Aqualia promotes internal mobility as a source of recruitment,
publishing all positions that are required in the company in the
Internal Mobility (MI) channel, to which all FCC Group workers
have access. Likewise, work is being done on action plans to
feed the database extracted from Aqualia’s own website,
redirecting candidates who arrive through other channels.
• External publications: average of about 70 monthly publica-
tions in the national areas and Central Services (national and
international).
• Selection processes: average of 150 selection processes
per year per national zone/Central Services. (data includes
production and structure selection processes).
The number of new people hired throughout 2021 is detailed
below:
ODS 8
New people contracted
Central Services
New people contracted
Spain (Zones)
New people contracted
international
Men
32
541
247
Women
37
124
116
Total
69
665
363
Regarding the recruitment of young talent, we worked on some
amendments in the Professional Practices Procedure in
2021 that will be definitively implemented in 2022 with a dual
purpose:
• Improve the procedure and processes for recruiting in-
terns who will be the talent of the future.
• Collaborate with the employment of young people in pro-
jects with a clear and necessary future to achieve a sustaina-
ble world.
ODS 8
Internship Students
2020/2021
Men
18
Women
18
Total
36
During 2021, Aqualia once
again invested in the major
national and international
employment portals
We are working on a plan to integrate young people into the
company, and with this vision, we have carried out some note-
worthy actions to date:
• All agreements with universities with which Aqualia has
been collaborating for years have been renewed, which
required approval of new validity periods, and others have
been signed with new schools, universities and Vocation-
al Training centres in various regions (CUNEF, University of
Castilla-La Mancha, University of Malaga, among others).
• For the third consecutive year, four interns joined the Instituto
de La Paloma in Madrid for the 2021-2022 academic year of
the Higher Level Qualification in Water Management and
the Intermediate Level Qualification in Water Networks
and Treatment Plants of the Dual Vicational Training, pro-
moted by Canal de Isabel II.
• 70% of the students of the Dual Vocational Training pro-
gramme have joined our workforce through Aqualia to
date, making it one of the companies in the programme
with the greatest involvement and success and with the
best percentage of joining the company after the internship
period. It has been positively appraised by students, the
study centre itself and the other collaborating companies.
• The number of students in full internships who manage to join
the Aqualia workforce once their internship has finished has
also increased.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 9 of 16
_ 172
Health and
Well-Being
The actions and priorities of the Health and Well-being area in
2021 were framed by the current situation, the different sce-
narios and resulting requirements and responsibilities necessary
to limit and minimise the impact of COVID-19 in Aqualia, while
remaining in line with the objectives and guidelines in terms of
health and safety and the continuous need for evolution and
improvement. The following are strategic axes:
• The effective and efficient management of the pandemic to
protect the health and general well-being of people in Aqualia.
• The increase in the integration of preventive activities through
direct collaboration with the production areas of the Zones
and promoting coordinated actions against critical risks (as-
bestos, ATEX, road safety, etc.).
• The establishment of guidelines, actions and tools to promote
organisational learning, thereby improving the effectiveness
of preventive activity through the digitalisation of processes,
means and technical development.
• The improvement of preventive management and specialised
assistance on works projects, which has led to the strength-
ening of the Health and Well-being team.
• The design and implementation of a new policy to manage
contractors and suppliers, from the initial approval process,
to the oversight and control of the development of the work,
with the aim of improving performance in terms of health and
safety.
Among the monitoring of some of the most significant activities
carried out during the year, the following can be highlighted:
Aqualia’s management of COVID‑19
From the beginning of the health crisis, Aqualia’s main goal was
to establish an action line throughout the company to limit and
minimise the impact on Aqualia’s employees, its assets (main-
taining the continuity of the activity) and ensure a proper service
to our users and customers.
The ability to react, plan and organise made it possible to con-
front the health crisis by taking the necessary measures to pro-
tect workers and their families and to ensure the continuity of an
essential service such as end-to-end water management, in the
event of an unexpected and unknown situation.
Now, looking back a year and a half later, we realise that
Aqualia’s strategy enabled huge success in managing this
health crisis, maintaining a very low incidence rate for the entire
workforce, and not having had to interrupt the service at any
time, with the reliability of not having suffered any work-related
outbreak at any time.
Aqualia’s commitment to updating the measures has not
changed since the beginning of the health crisis on 15 March
2020 and, to date, Aqualia has drawn up a total of nine con-
tingency plans and a Preventive Action Protocol to adapt the
technical-sanitary measures proposed to the social situation at
all times.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 10 of 16
_ 173
Each update of the
Company’s Contingency
Plan has responded to the
necessary amendments
to the initial plan to update
the measures implemented
The summary of the documents prepared in chronological order
is:
• COVID-19 Contingency Plan – version 1 (03/13/2020)
• COVID-19 Contingency Plan – version 2 (03/16/2020)
• COVID-19 Contingency Plan – version 3 (04/09/2020)
• COVID-19 Return Plan – version 4 (05/04/2020)
• COVID-19 Return Plan – version 5 (06/05/2020)
• COVID-19 New Normality Plan – version 6 (09/01/2020)
• COVID-19 Contingency Plan – version 7 (11/01/2020)
• COVID-19 Contingency Plan – version 8 (03/22/2021)
• COVID-19 Contingency Plan – version 9 (06/14/2021)
• COVID-19 Preventive Action Protocol – version 1 (12/16/2021)
Each update of the Company’s Contingency Plan has respond-
ed to the amendments needed to the initial plan to update the
measures implemented and adapt them to regulations imple-
mented by Health Authorities, the Ministry of Health, Labour
Inspection and Autonomous Communities as the health crisis
progressed.
Among the major milestones related to Aqualia’s management
of the pandemic, the following can be highlighted:
Definition of contingency plans, guides and protocols, both
those specific to Aqualia and the corresponding corporate ones
and in collaboration with the Insurance Company and with the
FCC Corporate Prevention Service and FCC Medical Services.
1 Bringing a health technician into the department with the
aim of providing support, guidance and personalised mon-
itoring (by telephone) of each reported COVID-19 incident
according to an adapted and personalised protocol for the
detection, notification, study and management of cases and
contacts.
2 Parallel follow-up to the health authority: individualised med-
ical follow-up of each COVID Incident that has been main-
tained throughout the pandemic. At 30 September 2021,
2,549 incidents had been managed.
3 After a period of non exhaustive monitoring of incidents, this
was reactivated during the last fortnight of December 2021
due to the emergence of the new Omicron variant with the
following data (at 4 January 2022): 293 new cases and 137
preventive isolations in Spain, 27 new cases and 13 preven-
tive isolations in Europe and MENA, and 2 new cases and 3
preventive isolations in America.
4 Management of Vulnerable Workers. 84 cases of vulnerabil-
ity were managed.
5 Specific health campaigns based on the needs at each time
such as:
• Different prevention campaigns through serological tests.
The diagnostic tests carried out by the company to date
are:
– Rapid antibodies serological test: 2332
– ELISA serological test: 58
– PDIA (Antigen test): 598
– PCR: 115
• Campaign for the preparation, periodic monitoring and
updating of specific contingency plans by contract or
work centre.
• Campaign on ventilation and indoor air quality.
• Communication and awareness campaigns for the com-
mitment to the personal and individual responsibility of the
workers.
• COVID Preventive Plan – Easter 2021.
• Preventive measures reminder campaign aimed at stop-
ping the outbreak of the new Omicron variant.
• Awareness campaign: Promoting vaccination.
6 Periodic reports to the Board of Directors of the status and
management of the pandemic in Aqualia.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 11 of 16
_ 174
2 Developing specific psychosocial inquiry tools aimed at the
“in situ” assessment of the impact of COVID on our workers,
as well as the possible impact on the work climate or en-
vironment and the corresponding training of all SPM mem-
bers for diagnosis and psychosocial intervention.
3 The generation, provision and invigoration of quality initia-
tives developed by expert psychologists for the individual
approach in favour of emotional health, such as:
• PSICOMET-COVID adaptation: thanks to the advice of
Affor (expert entity in psychosocial well-being), the individ-
ual emotional health status assessment tool was modified
to be able to assess the “COVID-19 impact”. With the
dual purpose of detecting harm early (being able to pro-
mote the implementation of all those measures necessary
for prevention) and that of being a very valuable source of
information regarding the provision of indicators that will
help design strategies to promote emotional well-being
inside the company.
• Extension of the Employee Assistance Program (PAE)
to family members: to facilitate psychological support so
that they can use it whenever they need psychological
advice and/or support resources to resolve any possible
emotional discomfort they are experiencing in their day-
to-day activities, both personally and professionally.
– Information and awareness through TIPs and psy-
choeducational campaigns: multi-channel cam-
paigns, accessible to all workers and run by specialised
psychologists, in which practical resources are provid-
ed for self-care of emotional health.
Finally, the effectiveness of the actions developed to manage
the impact of the pandemic on Emotional Well-being has been
assessed.
1 The results of the Aqualia “Employee Voice” Survey show
that 100% of those interviewed affirm that Aqualia has acted
appropriately in managing the COVID-19 crisis.
2 From the analysis of the Results of the Psychosocial Diag-
noses carried out by the Health and Well-being technicians
in the work centres, it can be concluded that the impact of
COVID-19 is not seriously affecting the psychosocial fac-
tors associated with the different jobs. In addition, based on
the answers and perceptions received during the personal
interviews – representatively focusing only on the Resourc-
es/Help/Emotional and Psychological Support section – we
can determine a high degree of satisfaction in relation to the
results obtained:
• In 63% of work centres, the tools available to take care of
our emotional health are known.
• In 86% of Work Centres, it is known that Aqualia has im-
plemented psychosocial support strategies to manage
the emotional impact of this situation (informative or sup-
port conversations, recognition, provision of specialised
help, etc.).
• In 83% of the cases, workers consider that the company
correctly managed the psychological and emotional sup-
port.
From the analysis of absenteeism due to psycho-emo-
tional health issues, it currently only represents 3% in
Aqualia (with 42 cases identified).
Health and Emotional Well‑being project
“Challenge: COVID‑19”
Making a special commitment to the more humane nature of the
pandemic crisis, the People and Culture area essentially want-
ed to reinforce people’s psychological health care, strengthen-
ing and focusing in a very particular manner on the emotional
well-being of all our workers and that of their closest relatives,
thereby promoting synergies focused both on co-responsibility,
as well as with SDG3 and our corporate social responsibility
given the current health and socio-economic reality.
As a summary, the general actions developed have been aimed
at:
1 Establishing the necessary methods and mechanisms to in-
ternally analyse the situation and the validation of the best
strategies to be developed.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 12 of 16
_ 175
Contractor Management – Use of Nalanda
Based on the preventive and safety culture of our company, a
significant effort was made this year to achieve the objective of
ensuring that contractors with whom Aqualia works have an
excellent health and safety record and that it is monitored from
prior to contracting until the completion of the work.
Given the previous lack of sufficiently clear supervision proto-
cols, the non-monitoring of indicators and the lack of a policy to
extend our health and safety requirements to our contractors,
all of this together with the reinforcement of the implementation
and use of Nalanda (or similar), the strategic guidelines mark
our roadmap in the management of contractors in Aqualia as
summarised below:
For the latest actions in which we are currently included, we
could state that:
• Resources are being dedicated to reinforce the use of Nalan-
da.
• An Implementation Guide for the Coordination of Business
Activities has been prepared.
• A training plan on the use of Nalanda has been designed and
implemented.
• The implementation of specific actions in dangerous activi-
ties has been defined: coordination meetings, access control,
training, etc.
Actions on Management Systems
Throughout 2021, here it is worth mentioning the development
of the country’s Technical Instructions in the international arena
for the integration of health and well-being in the Management
System according to ISO 45001.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 13 of 16
_ 176
Analysis of Absenteeism and Promotion of
organisational learning
Regarding the evolution of the accident rate, in 2021 (data at
year-end), the AFR frequency index (relates the number of acci-
dents with sick leave according to the number of hours worked)
has seen a slight but continuous downwards trend which
seems to stabilise at the end of the year around 8.5AFR; an
improvement compared to the 9.14AFR in 2019.
In 2021, there were three serious accidents involving the com-
pany’s personnel. To date, two of the workers have recovered
and without any consequences of the accidents, with only one
remaining, which occurred in November, and still on medical
leave.
Regarding the different actions related to the analysis of our ab-
senteeism, some of the most relevant throughout the year are:
• The improvement of the action process to investigate inci-
dents through the implementation and application of the new
Communication and Investigation of Accidents Procedure.
• The promotion of organisational learning through the imple-
mentation of, among others, initiatives such as:
– Implementation of general measures and actions such as:
– Detailed analysis based on relevant characteristics
– Development of tools for organisational learning of major
accidents
– Centralised management of measures to prevent incidents
(development of new training, etc.)
– Periodic dissemination of “Lessons learned” and “We must
know” through the Be Aqualia App.
INJURIES WITH SICK LEAVE/AFR
INJURIES REPORTED FROM DECEMBER 2021 TO DATE = 248
e
v
a
e
l
k
c
s
i
h
t
i
w
s
e
i
r
u
n
j
I
35
30
25
20
15
10
5
0
0
29
136
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
R
F
A
83
January
February
March
April
May
June
July
August September October November December
Notifications from employees and contracted staff
Notifications last year
Annual rolling average of the last 12 months
AFR last 12 months
Annual rolling average to date
AFR to date
Riddor 1
Riddor 2
Riddor 3
Injuries with sick leave
(No Riddor)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 14 of 16
_ 177
Job quality:
Collective bargaining,
Labour Relations and
Personnel Administration
In terms of collective bargaining, it is worth highlighting the
agreement reached in December 2020 between the signato-
ries of the Sixth State Water Agreement, by which the increase
planned for 2021 has been amended by 50% due to the impact
of the pandemic on the economy and the sector. This agree-
ment reflects the stability and fluid collaboration between the
most representative trade unions (UGT and CC.OO.) and the
companies that represent the sector at the employer (AGA) and
union level, extending the duration of the Sixth agreement by a
year. The extension provides and demonstrates the stability of
the sector at a union and company level and further strengthens
labour relations between workers and companies in the sector,
keeping disputes in the work centres where it applies to a min-
imum.
As in 2020, the consolidation and extension of the State Water
Agreement has been one of the most significant successes in
terms of Labour Relations, however, the percentage of work
centres with agreements or collective agreements has remained
the same as 2020.
MINOR INJURIES
CURRENT AGREEMENTS AND PACTS 2021
s
e
i
r
u
n
j
i
r
o
n
m
i
f
o
r
e
b
m
u
N
40
35
30
25
20
15
10
5
0
37%
63%
January
February
March
April
May
June
July
August
September October November December
Employees and
Contracted Staff
Employees and
Contracted Staff last year
Annual rolling
average to date
Annual rolling average
of the last 12 months
Agreements
Pacts
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 15 of 16
_ 178
Labour disputes
remained at a
residual level,
as in 2020
Labour disputes have remained at a residual level, as in 2020,
with no declared strikes throughout 2021, and court cases and
Labour Inspections reduced by 28.21% compared to the pre-
vious year.
TRIALS - LABOUR INSPECTIONS
20
13
13
12
5
5
1
1
5
3
4
2
Collective
conflict
Working
day and
schedule
Salary
Sanctions
Social
Security
Subrogation MSCT
Law
Union
freedom
Professional
Class
ITSS
Dismissals
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | People and culture | Page 16 of 16
_ 179
Regarding the quantitative data, the employment stability policy
is kept in 2021, seeing a result of 87.01% permanent contracts
compared to 86.45% in 2020 and, in terms of sex, the propor-
tion of women employed compared to 2020 is the same, with
the distribution by sex being 78% men and 22% women.
Regarding compliance with regulations regarding personnel
with varying abilities, the Aqualia Group fully complies with
these regulations, adhering to the 2% required for staff with var-
ying abilities in companies with more than 50 workers. While
FCC Aqualia S.A. and Aguas de Alcalá UTE comply with the
regulations through the corresponding alternative measures,
having not reached the necessary 2%, the Group obtained its
approval for FCC Aqualia S.A for 2020-2023 in August 2020.
Finally, looking at ERTEs, as a consequence of the impact of
COVID-19 and the restrictive measures initially implemented by
the Government and by the autonomous communities and City
Councils, this led to closures and reduced activity in all Sports
Centres (21 Sports Facilities) affecting 409 workers in March
2020. Currently all have resumed their activity, closing all the
files and there are no workers currently covered by an ERTE.
2021 CONTRACTS
87.01%
Permanent contracts
Other contracts
2021
1.3%
America
Europe
Internacional
MENA
Central
services
Support
Europe/MENA
Zone 1
Zone 2
Zone 3
CONTRACTS ACCORDING TO SEX
78%
Men
Women
2021
22%
International
Central
Services
Zone 1
Zone 2
Zone 3
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Communication, marketing and CSR | Page 1 of 12
_ 180
Communication, marketing and CSR
Communication
COVID‑19 communication
Communication Plan
Carrying out efficient water management not only represents
an essential service for citizens, but also contributes to the
economic and social development of society as a whole. The
tremendous impact of COVID-19 over the last two years has
further highlighted the importance of ensuring sustainable water
services from a social, economic and environmental point of
view, not just as the first prevention barrier against the pandem-
ic, but as a basic element for progress.
Aqualia has faced this particular situation through two axes:
one, developing more active listening oriented towards all its
stakeholders: public administrations, users, employees, con-
sumer organisations, NGOs, suppliers, the media and share-
holders. And two, increasing the information offered to these
stakeholders, especially through its digital channels. In addition
to focusing its efforts on maintaining the water cycle services,
the company has opted to strengthen its strategy of continu-
ous, useful and responsible communication, as befits the oper-
ators of an essential public service.
The uncertainty of the final months of 2020 continued into the
beginning of 2021, which started with the purpose of exiting
from the consequences of the COVID-19 health crisis in a sce-
nario framed by social and health restrictions. In these circum-
stances, the sector has taken on a new way of understanding
and applying the concept of “health and safety”, which is now
more important in all areas. This aspect is in addition to the main
challenges that those involved in the end-to-end water cycle
were already facing prior to the outbreak of the pandemic (fight
against the social gap, climate emergency and technological
disruption).
Arising from this, Aqualia proposed its Communication and
CSR Plan as a response to these significant challenges and as
a roadmap to position the company as a responsible business
from the perspective of the SDGs, the 2030 Agenda and the In-
ternational Decade for the “Water for Sustainable Development
(2018-2028)” Action.
STRATEGIC LINES
01
Achieve a position as a leading compa-
ny with the ability to influence the sector
(social licence).
02
Communicate that the company con-
tributes real value to the municipalities/
country through the management of
the end-to-end water cycle.
03
Give value the company’s technologi-
cal evolution and adaptation to climate
change with a focus on education and
awareness of sustainability.y sensibi-
lización en sostenibilidad.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Communication, marketing and CSR | Page 2 of 12
_ 181
With a view to complying with the roadmap, a total of 681 press
releases were released to both online and offline media through-
out 2021 and 147 meetings held with national, regional, sec-
toral and economic information media.
On World Water Day, held every 22 March, Aqualia chose
an advertising and information campaign that sought a direct,
rapid, bold impact with a clear, forceful message, dedicated to
the work carried out by all professionals in the company. De-
spite the tireless work of Aqualia’s workforce, this effort may
be imperceptible to the rest of society, who may not properly
value the role of water operators. This is summed up in the
campaign’s key phrase: “We are people working for people
providing an essential public service”. For the campaign, a
video was released on Aqualia’s YouTube channel, which had
17,578 views in the first 24 hours and reached 75,000 in one
week. This is an outstanding result, especially considering the
additional competition, as many companies in the sector have
their own campaigns that day.
After analysing the data, users that showed the most interest
were between 25 and 34 years old, followed by those between
35 and 44 years old. Another highlight was that more than half
of those who saw the campaign (52.3%), did so on a Smart
TV, which means fully entering into a new medium. In addition,
there were 741 click-throughs to the Aqualia website, which is
quite an achievement in terms of digital marketing.
In a full surge of online events, Investagua was held in April. This
was a digital meeting that dealt with the main current issues
in the sector, for two weeks, between 12 to 23 April. Aqualia
took part in three key dialogue tables: one on purification and
sanitation between Marta Casao, head of Purification and R&D
of Zone I, and Alejandro Maceira, partner of iAgua. The compa-
ny also participated in a session on Reuse with Zouhayr Arbib,
responsible for Sustainability in the Innovation and Technology
department. Finally, the ‘Top Executive Roundtable’, brought
together some of the senior executives of Acciona, Gestagua,
Miya Water, Almar Water Solutions, Schneider Electric and
Aqualia, which was chaired by Santiago Lafuente, director for
Spain.
The iAgua 2020 Awards were presented during this event,
where Aqualia was awarded “Best Company of 2020” by
the readers and followers of iAgua magazine, the leading me-
dia outlet in the sector in Spain and Latam. Aqualia was in first
place, ahead of other candidates such as Acciona, Schneider
Electric, Ídrica and Hidroconta. This is the fourth time (2015,
2017, 2019 and now 2020) that Aqualia has received this rec-
ognition as the most representative entity in the sector.
The company was also present at the National Environment
Congress, CONAMA 2020, the first major event held in per-
son (delayed by a year delay due to the pandemic) and which
brought together the main players in the environmental sector.
The Minister for Ecological Transition, Teresa Ribera, opened
the Congress, where representatives of Aqualia attended vari-
ous sessions. One was Juan Pablo Merino, director of Commu-
nications and CSR, who took part in the debate dedicated to
communication on essential environmental services during the
COVID-19 health crisis.
In the last half of 2021, certain events have resumed, the major-
ity in a hybrid format. One was the informative breakfast, star-
ing the Mayor of Jerez, Mamen Sánchez. Félix Parra, CEO of
Aqualia, joined the mayor for her speech.
Félix Parra, CEO of Aqualia, presents the first prize of the 5th edition
of Aqualia journalism to Rosa María Domínguez, a journalist from La
Gaceta de Salamanca.
Another important communication milestone was presenting
the 5th Aqualia Journalism Award, at a ceremony held in
June on World Environment Day. A total of 65 journalistic works
from audiovisual, print and digital media were submitted, a re-
cord number since the start of the contest in 2016. Throughout
the five editions of the Award, 230 journalistic works have been
submitted and 175 authors from 133 media outlets have par-
ticipated.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Communication, marketing and CSR | Page 3 of 12
_ 182
One of the company’s
greatest milestones has been
the support and dissemination
of the 1st Stepbywater
European Conference
“Hunting a resurgence of coronavirus in the wastewater of Sala-
manca”, published by the journalist Rosa María Domínguez in
La Gaceta de Salamanca, was the winning work. The report ad-
dresses the common challenge for researchers and water man-
agement companies in detecting traces of COVID-19 in waste-
water. Félix Parra presented the award at a ceremony held at
the head office of the Madrid Press Association (APM) before a
small number of attendees, complying with the health and safe-
ty measures established by the authorities. The event was also
attended by Nemesio Rodríguez, president of the Federation of
Associations of Journalists of Spain (FAPE), who reflected on
the journalism-water binomial.
In July, the Technological Centre of Dénia (Alicante) and the
fully digital management project of the Municipal Water Service
of this town were presented. This allows 571 million pieces of
data per year to be captured, analysed and transformed into
benefits for the City Council and users. This digital control cen-
tre – a pioneer in the services managed by Aqualia in Spain –
unifies all the management of the end-to-end water cycle into
a single platform.
From the associative point of view, one of the company’s great-
est milestones has been the support and dissemination of the
1st Stepbywater European Conference, held on 21 April.
Félix Parra, president of the StepbyWater alliance and CEO
of Aqualia, opened the Conference with a speech in which he
pointed to the need to consider water as a strategic axis for the
recovery and promotion of a more social and sustainable econ-
omy. The event was attended by the EU Commissioner for the
Environment, Oceans and Fisheries, Virginijus Sinkevičius, the
Minister for Ecological Transition and Demographic Challenge,
Teresa Ribera, and MEPs from the European Parliament, Clara
Aguilera and Juan Ignacio Zoido, and those responsible for the
sustainability of public institutions and private companies that
are members of StepbyWater.
To end the year, Aqualia’s head office in Las Tablas (Madrid)
organised a new meeting of the StepbyWater (SbW) alliance on
15 December. The meeting, in a hybrid format, saw the partic-
ipation of representatives from 20 allied entities and served to
define the Alliance’s Action Plan for 2022.
The development of new solutions aimed at optimising the
management of the end-to-end water cycle, which contribute
to decarbonisation and a circular economy, garner significant
attention from the media. Therefore, initiatives developed by
Aqualia to publicise the milestones in its innovation have been
a success from a communication standpoint. An example of
this is the presentation of the biofactory at the Guijuelo treat-
ment plant (Salamanca). In these facilities, the waste generat-
ed by the agri-food industry is treated together with the sludge
from the plant and is transformed into energy, biofuels, bioplas-
tics and biofertilisers. On 16 September, the biofactory was pre-
sented at an in-person event and was also streamed to more
than 200 viewers, with the participation of all those involved in
the project, from representatives of the City Council to compa-
nies and industrialists and producers of the area that will benefit
from the resources generated by this innovative plant.
Another outstanding milestone took place in Talavera de la
Reina (Toledo) on 30 November when the president of the
Castilla-La Mancha Community Board, Emiliano García-Page,
inaugurated the facilities of the Life INText project in the treat-
ment plant there. The event was also attended by the mayor
of the city, Tita García, and Aqualia’s Spain director, Santiago
Lafuente. Numerous local and regional media outlets attended
the event.
Aqualia’s performance in media relations following the strate-
gic lines of the PCOM is reflected in various collaborations with
local, regional, national media or with professional associations.
In this sense, the collaboration between Aqualia and APIA, the
Association of Environmental Information Journalists, at the
14th Congress of Environmental Journalism stands out, held
in Madrid on 22 and 23 November under the title “A question
of global health”. The alliance between both entities reinforces
Aqualia’s role as a qualified source for the dissemination of con-
tent related to the end-to-end water cycle offering meticulous
information from a technical point of view.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Communication, marketing and CSR | Page 4 of 12
_ 183
Other actions of note within the scope of local information in-
clude the management of communication prior to and during
the cold snap and storm “Filomena”, which severely affected
the services in Toledo, Ávila and Madrid in January. In Almería,
the official presentation to the media and Public Administra-
tion of the Mar de Alborán desalination plant project (Almería),
owned by Aqualia, took place. In Vigo, the symbolic act of lay-
ing “the first stone” of the new Drinking Water Treatment Plant
(DWTP) of the city was held. The new customer service of-
fices in Oviedo have stamped the company’s new office style
At the international level, communications have been marked
by the development of an ad hoc Communication Plan for
Colombia, which defines and sets the objectives and the strat-
egy and action plan to achieve them. It also contains an analysis
with the main emphasis on the implementation and consolida-
tion of the brand image and services in the areas where Aqualia
has been providing end-to-end cycle services since last year.
The special emphasis on communication in Colombia is due to
the obsolete state of the water infrastructure and the delicate
social and media situation involved in managing water resourc-
es, particularly in the municipalities of Sahagún and Planeta
Rica, in the district of Córdoba.
In Mexico, active listening was done and communication ma-
terial prepared for the operation of the El Realito aqueduct, a
water infrastructure that carries water from the El Realito dam
(located on the Santa María river, in the north of the state of Gua-
najuato) to the metropolitan area of San Luis Potosí (ZMSLP).
Information was also prepared and disseminated about the
new water supply management contracts in the Jizán industrial
complex (Saudi Arabia) and the improvement of the Los Ca-
bos supply network, in the main tourist area of Baja California
(Mexico).
This year, case studies of New Cairo (Egypt) and El Realito
(Mexico) were carried out by the United Nations Center-IESE
PPP for Cities were given honourable mentions by UNECE
(United Nations Economic Commission for Europe) within the
top 20 worldwide in terms of public-private partnership since
2016. Both projects have been cited as Building-B ack Better
Projects for their contributions to post-pandemic reconstruction
by an international jury of this multilateral organization at the 5th
UNECE International Public-Private Partnerships Forum 2021.
Digital communication
From the outset of the pandemic, Aqualia adopted a contingen-
cy plan that considered communication and promoting the use
of online customer service channels, grouped under the name
Aqualia Contact. A year later, in April, the result was more than
significant: at the end of 2021, the Aqualia.com website record-
ed 2,628,603 visits.
Social networks are an environment where everything is con-
nected and where there is much competition. It is where the
main operators of the urban water cycle and all the compa-
ny’s stakeholders are present and interact. Given this scenario,
Aqualia launched a Usage and Participation Manual for Em-
ployees on social networks with the aim of keeping control of
official channels and the activity of our employees regarding the
Aqualia brand, guaranteeing compliance with both the Code of
Ethics and Conduct and the company’s Brand Manual.
On social networks, the number of followers grew notably
throughout the year: more than 400 new followers on Twitter
(6,546 in total) and more than 8,000 on LinkedIn (25,833 in to-
tal). Aqualia’s channel on YouTube exceeds 1.8 million views
and has grown to 2,880 subscribers.
The collaboration between
Aqualia and APIA for the
14th Congress of Environmental
Journalism under the title
“A question of global health”
During 2021 the new website for the Aguas de Guadix joint
venture became a reality. The migration of all content and ap-
plications of this website by the IT department was carried out
under the corporate image of Aqualia.
The joint venture Aguas de Ubrique needed to have its own
website to host its profile as the contractor for the public ten-
ders that it will carry out. Together with the IT department, the
website www.aguasdeubrique.com was created
Internationally, the French version of the Aqualiaeduca.com
website was adapted and launched under the name Aqualia-
cademie.fr. This adaptation to the language and context of this
country is a powerful training tool on water management and
a good platform for raising awareness of the value and impor-
tance of this resource.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Communication, marketing and CSR | Page 5 of 12
_ 184
Internal communication
The situation caused by the pandemic has made internal com-
munication considerably more important due to the need to
provide the entire Aqualia workforce with all kinds of information
through the different channels and formats available, both on-
line and offline. During the year, 169 informative flash briefings
and 86 briefings were sent by email, in addition to another 42
communications from the Be Aqualia App.
Aqualia again renewed its certificate as a Family-Respon-
sible Company (EFR), which it has held since 2017, for the
2021-2023 period. In its audit report, AENOR highlighted the
advances in communication regarding work-life balance mat-
ters that affect the company
On the other hand, since the launch of the Employee Assis-
tance Programme (PAE) in December 2019, the Communi-
cations and CSR and People and Culture departments have
worked together to promote its use among employees. This is
a free psychological care service that the company makes avail-
able to the entire workforce in Spain. It is accessed by phone
or through the “My psico” App, and is available 24 hours a day,
every day of the week.
Within the framework of the PAE Programme, a series of we-
binars (psycho-educational campaigns) have also been coor-
dinated around emotional health and that extend throughout
the year, at the rate of one thematic event per month. The
campaign, only in Spain, started with the theme “Guidelines for
coping with pandemic fatigue”. These actions are communi-
cated via email and the Be Aqualia App, thereby promoting the
application’s use among employees.
Family Day with family members of the Aqualia Call Centre, at the Estiviel treatment plant, Toledo (Spain).
In 2021, Aqualia launched two exclusively internal campaigns:
Be International and i4U, the First Aqualia Innovation Awards.
The first, promoted by the People and Culture department of
the International Area was to promote the expatriation of inter-
nal talent to other countries where Aqualia has offices. The aim
is for expatriates to share their knowledge and experience of
Aqualia with other local colleagues.
of the company were Pepe Álvarez, Secretary General of the
UGT; Pedro Hojas, president of AGFITEL and general secretary
of UGT FICA; and Félix Parra, CEO of Aqualia. Representatives
of political parties (PSOE, PP and Podemos) then discussed the
“Blue and Green Jobs” as a commitment to the future. Gustavo
Vargas, secretary of the Energy and Water Sector of UGT FICA,
closed the event.
On the other hand, the ‘i4U’ First Aqualia Innovation Awards
sought to find innovative and transformative ideas focused on
sustainability with the involvement of all employees under the
strapline “For a world driven by innovation, for you, an Aqualia
professional, and for the benefit of all society”.
On 7 July, the Communication department organised an event
jointly with UGT to thank workers in the sector. In front of an
audience made up of union delegates and managers and staff
Of note also is the special event organised for family members
of the Aqualia Customer Service Centre (CAC) within the com-
pany’s EFR (Family Responsible Company) plan. The Family
Day involved a visit to the Estiviel treatment plant in Toledo,
where parents and children were shown how the plant works.
The group then participated in various educational tests where
they learned various issues about the water cycle and its care.
The thirty participants viewed the organisation of the event very
positively.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Communication, marketing and CSR | Page 6 of 12
_ 185
Marketing
The Communication Plan (PCOM) for 2021 is focused around
the decade for action “Water for Sustainable Development” with
the Sustainable Development Goals (SDG) as the central axis of
the new strategic umbrella. Getting citizens to perceive Aqualia
as a company that adds value to their municipalities has been
one of the goals of the PCOM 2021 and framed actions carried
out throughout the year.
During the first quarter of the year, the success of another
campaign launched the year before was consolidated. The ad-
vertising campaign “H2Ohh!”, by Aqualia and the Vigo City
Council, was recognised at the 27th edition of the Advertising in
Galician Awards in the radio category.
For another year – with the aim of highlighting the daily work
involved in bringing water from nature to the tap and return-
ing it to the natural environment in optimal condition – Aqualia
launched a new edition of its Children’s Digital Drawing Con-
test around the microsite www.Aqualiayods6.com. Participa-
tion this year grew more than 58% compared to last year, which
shows the consolidation of the initiative and the involvement
of schools, families and children with this educational tool. In
total, www.Aqualiayods6.com received 10,450 jobs providing
5,966 hours of training and entertainment (57% more than the
previous year). The increase in sessions registered on the web-
site is similar to before, with 60% more than in the previous
edition, reaching 42,969, during which children were able to
complete their canvas, in addition to learning much more about
the SDGs.
The Communication Plan
for 2021 is focused around
the decade for action “Water for
Sustainable Development”
In October, the Aqualia Children’s Digital Contest was recog-
nised as “Best Comprehensive Communications Strategy” in
the 12th Edition of the 2021 Ibero-American Co-Responsi-
ble Awards. Juan Royo, from CulturaRSC.com, presented the
Award to Juan Pablo Merino, Director of Communications and
CSR at Aqualia, at a ceremony held at the Ministry of Work and
Social Economy.
These initiatives are an example of Aqualia’s contribution to
education and its support of academic institutions and public
administrations to offer a quality education to all. SDG 4, “Qual-
ity Education”, is of cross-cutting importance in achieving the
2030 Agenda, and is one of the most effective tools to improve
the quality of life of people and the environment. The broad
participation by the public, both internal and external, of
Colombia in both contests stands out.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Communication, marketing and CSR | Page 7 of 12
_ 186
Work was done in
2021 to reinforce
the perception of
Aqualia as a
glocal company
Also during 2021, work was done to reinforce the perception
of Aqualia as a ‘glocal’ company (global management with a
strong local commitment), a close-knit company that provides
local and international value, open to new cultures. The compa-
ny was therefore present at internationally significant events and
strategic forums. From among them all, Aqualia’s involvement
in the first Digital Congress of the Spanish Desalination and
Reuse Association (AEDyR) stands out. On this occasion, the
organisation presented a compilation video of all its R&D activity
in a format akin to a videoconference.
On World Sanitation Day (November 19), action to provide infor-
mation was taken in City Hall square in Oviedo. A marquee was
set up with different technical and technological elements that
the service uses for its sanitation and sewage maintenance work
in the municipality, as well as different tests and “experiments”
related to this service: an inspection robot, samples to see the
degradation of different compounds in the water, screens with
explanatory sanitation and purification videos, roll up displays of
the #nolotires campaign, and different merchandising elements.
Internationally, and together with its French subsidiaries SEFO
and CEG, Aqualia participated in the Salon des Maires et des
Collectivités Locales (SMCL), held in Paris between 22 and 24
November. The event was dedicated to municipal services with
a broad perspective that included sectors such as the environ-
ment, sustainable transport, water treatment or smart services.
On the other hand, in Peru, Aqualia’s involvement in Expoagua
was arranged within the round table “Contributions to forge an
education and culture of appreciating water”. Aqualia was invit-
ed to participate in this event by Sunass (the sector’s regulatory
entity in Peru) following the news published in iAgua about the
Corresponsables Prize for the Best Communication Strategy for
the Children’s Drawing Contest.
Educativa Sunass 2021 was an institutional event aimed at the
educational community in general, mainly headteachers, teach-
ers and students at all levels (nursery, primary, secondary), in
regular, special and alternative education. The table that we or-
ganised and chaired was entitled “Caring for water. A 360 com-
munication action”. Raquel López, representing the Marketing
and CSR department, gave a presentation and was accompa-
nied by Arturo García, head of the Aqualia service in Talavera de
la Reina (Toledo) and councillor of the City Council.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Communication, marketing and CSR | Page 8 of 12
_ 187
Corporate Social Responsibility (CSR)
Sustainability Report
Aqualia’s 2020 Sustainability Report puts conversations with
citizens and other stakeholders at the forefront to continue mov-
ing forwards in compliance with the 2030 Agenda, one of the
company’s main commitments. Under the title of #Conversa,
this year’s report continues the listening process started in
2019, when an in-depth analysis of strategic materiality and
active listening with more than 18,000 people was carried out.
The company points to dialogue and collaboration with all so-
cial agents as the two axes on which to respond to the new
post-pandemic challenges and to continue to contribute to the
Sustainable Development Goals (SDGs), which have been part
of Aqualia’s strategy for many years.
“2020 was a very complicated year where we have had to deal
with the health emergency without neglecting the climate emer-
gency, which is so assuming and worries citizens and institu-
tions,” explains Félix Parra, CEO of Aqualia, in the interview that
opens the Report. In it, the chief executive emphasises the work
carried out by workers, as they were designated as an essen-
tial group during the pandemic. “They have always shown their
great vocation for public service; and today we can say that
– thanks to that spirit – we have managed to respond to one
of the greatest challenges that humanity has faced”, the CEO
underlined.
Aqualia sees CSR as a cross-cutting element in its business
model. As a result, economic profitability and competitiveness
are integrated into the social and environmental factors of its
surroundings, which are so important both for the future of its
business and in contributing to sustainable development.
The climate emergency and the health crisis have framed the
beginning of the decade. In the first months of 2021, Aqualia
launched the 2021-2023 Strategic Sustainability Plan,
aligned with the company’s strategy and the 2030 Agenda. The
Plan establishes the lines of action and proposes specific initi-
atives aimed at maximising Aqualia’s contribution to sustaina-
ble development – including the mitigation of risks – taking into
account the significance that a “water crisis” such as the one
considered by the World Economic Forum in its annual report
on global risks could have.
The definition of the Plan is based on the strategic materiali-
ty analysis Aqualia did in 2020, where the expectations of the
company’s internal and external stakeholders were identified
and prioritised, as well as the SDGs to which Aqualia should
contribute. From the conclusions of this work, a SWOT analysis
emerged, which was the starting point to prepare the Strategic
Sustainability Plan 2021-2023.
The Plan marks the route to progress in Aqualia’s purpose:
to ensure the well-being and advancement of the people and
communities in which it works by providing a public service; the
sustainable management of water. Finally, it ensures the univer-
sal/glocal right to water with pride and commitment.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Communication, marketing and CSR | Page 9 of 12
_ 188
Among its action principles, Aqualia’s Management System
Policy establishes the achievement of the Sustainable Devel-
opment Goals. These also represent a reference framework
in defining a Strategic Sustainability Plan that determines the
SDGs in which it will make a contribution and integrates quan-
tification and reporting. In the audit report issued by AENOR
on the Sustainability Strategy certification process and its
contribution to the SDGs, it highlights the integration of the
different management systems in Aqualia’s international policy
as a strong point and indicates how the company’s activity con-
tributes to achieving the SDGs. In particular, AENOR highlighted
initiatives such as Aqualia’s Internal and External Communica-
tion Plan for disseminating the SDGs through projects such as
#StepbyWater, the www.compromisoreal.com campaign and
the educational website www.Aqualiaeduca.com.
These efforts are reflected in the “Environmental, Social and
Governance ESG Vulnerability Score 100 Utilities” report pre-
pared by the risk rating agency Fitch on the vulnerability of the
utilities sector (electricity and water services), and is considered
‘the world Sustainability ranking’. This index assesses the com-
panies best positioned to face a sustainable transition, measur-
ing their level of risk in terms of financial credit ratings according
to environmental, social and governance (ESG) factors.
There were 100 companies analysed in this report, which was
dominated by European companies, where the Spanish ones
had the best scores. Aqualia and FCC Environment are two
of those that appear in an excellent position. Aqualia’s Sus-
tainability Reports, which have been published since 2006,
reflect the value that the company places on the environ-
mental, social and governance factors analysed by the
Fitch report.
The 2021‑2023 Strategic
Sustainability Plan
Aqualia’s 2021-2023 Strategic Sustainability Plan has
been designed to overcome its weaknesses and enhance its
strengths, so that it is capable of avoiding threats and making
the most of opportunities. Work has been done on the strategic
lines that make up the Plan to establish the projects and actions
required to achieve each goal, as well as defining the corre-
sponding performance indicators.
In November, Aqualia presented its 2021-2023 Strategic
Sustainability Plan, in which sustainability is integrated as a
cross-cutting and implicit aspect. The document integrates the
commitment to sustainability through measurable and quantifi-
able objectives that allow its contribution to the 2030 Agenda to
be known. This new roadmap, approved by the Management
Committee and the ESG Committee for the next 3 years, has
been prepared by the Corporate Social Responsibility depart-
ment jointly with the teams involved and includes the perspec-
tive of all stakeholders, who were previously consulted in an
active listening process that involved 18,000 people.
To publicise this document, the company implemented a dis-
semination plan aimed at both employees and the public as a
whole. A press release was sent to the media and information
agencies and it was disseminated through the company’s so-
cial networks and digital channels. The Plan was communicat-
ed internally through an informative broadcast. Looking ahead
to 2022, face-to-face training is planned at Aqualia offices in
Spain.
STRATEGIC LINES
01
Strategic communication
02
Climate emergency and care for the
environment: mitigation, adaptation to
climate change
03
Technology for integrated
management
04
People management
05
Ethics and compliance
06
Social impact
07
Strategic alliances
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Communication, marketing and CSR | Page 10 of 12
_ 189
#apoyamoslosODS (we support the SDGs) campaign involv-
ing its 10,525 employees around the world. The aim was to
disseminate the SDGs among its stakeholders and publicise
the “Decade of Action”.
All these videos was also disseminated on social networks with
the hashtag #apoyamoslosODS and, on this sixth anniversary,
Aqualia also created a new space on its Aqualia.com website
where it compiled – with multimedia elements adapted to all
audiences – interesting information about the SDGs and the
six main measures to move forwards in the specific fulfilment of
SDG 6, one of the pillars of the 2030 Agenda.
In line with the promotion of initiatives aimed at mitigating and
adapting to climate change, Aqualia – in collaboration with the
Fundación Universidad Autónoma de Madrid (FUAM) – began
a two-year project seeking to develop innovative technolo-
gies for the early warning and efficient elimination of toxic
cyanobacteria in supply waters. The ultimate goal of the
agreement signed between the company and the UAM is
the technology transfer of the results obtained in the re-
search project. In Spain, “blooms”, or uncontrolled growth of
cyanobacteria, are a frequent phenomenon, which is estimated
to regularly affect more than 30% of the reservoirs in our country
(Quesada et al., 2004; Wörmer et al., 2011).
In addition, linked to the dissemination of the company’s inno-
vative actions, Aqualia presented the Deep Purple project in
Linares (Jaén), in an event where the mayor, Raúl Caro-Accino,
and the director of the Aqualia office in Jaén, Jose Colomina,
presided over the signing of the agreement. This agreement es-
tablishes that the town hall cedes the necessary space in the
current treatment plant, next to the Córdoba-Valencia road, to
allow a demonstration plant for the “Deep Purple” project to be
constructed.
CSR actions
Aqualia is committed to being close to and working hand-in-
hand in the communities where it operates and carries out its
activities.
At the local level, in Almería, Servicios Hídricos carried out an
act of thanks this summer for the irrigators who support the
Mar de Alborán project and who had expressed their desire
to receive water from the desalination plant when it starts up.
About 60 representatives of irrigation communities and the
company met to comment on the progress of the project, up-
date dates, resolve doubts and present the experienced team
of professionals chosen to manage it. Thanks to the 20 cubic
hectometres per year that the desalination plant will provide, it
will be possible to manage the water from wells more rationally,
which will enable the recovery of groundwater.
Lastly, on the sixth anniversary of the Sustainable Develop-
ment Goals, held on 25 September, Aqualia launched the
With the goal of improving citizens’ quality of life, Aqualia pre-
sented the H2020 NICE project in June, which aims to demon-
Aqualia is committed to being
close to and working
hand‑in‑hand with the
communities where it operates
and carries out its activities
strate the viability of using natural systems such as green walls
and roofs, infiltration gardens, artificial wetlands and sustainable
drainage in cities, integrating them into the urban water cycle
and into the architectural landscape of large cities.
Among the eleven pilots that will be developed in different Euro-
pean cities, an artificial wetland will be installed in Algeciras to
purify and reuse rainwater within the Lago Marítimo municipal
project. Demo sites of the project will also be implemented in
Vigo (Pontevedra), Talavera de la Reina (Toledo), Benalmádena
(Málaga) and Madrid. This project represents another step by
Aqualia in developing initiatives that contribute to protecting en-
vironmental resources and preserving biodiversity and ecosys-
tems in the territories where it provides services, thereby align-
ing its activity with the United Nations Sustainable Development
Goals. In this case, specifically, H2020 NICE has a direct impact
on SDG 11 “Sustainable Cities and Communities” and SDG 15
“Life on Land”.
During 2021, a wide range of actions were carried out at Aqualia
in its commitment to transfer the culture and ethical values and
compliance to the entire organisation and the supply chain, to-
gether with the action principles that appear in the Code of Eth-
ics, which are articulated around three axes linked to CSR and
the exemplary performance strategic line: honesty and respect;
rigour and professionalism; loyalty and commitment.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Communication, marketing and CSR | Page 11 of 12
_ 190
On the other hand, to help reduce the problems experienced by
refugees, Aqualia launched a new edition of its www.sedsolidar-
ios.com campaign in collaboration with the Spanish UNHCR
Committee. Through this initiative, Aqualia collaborates in the
Spanish UNHCR Committee’s water and sanitation programme
in the refugee camps in Chad, which host 368,781 people
from Sudan. The programme involves the maintenance and re-
pair of water points for the particularly vulnerable population.
In May 2021, Aqualia signed its adherence to the #CEOPor-
LaDiversidad (CEO For Diversity) alliance, personified in its CEO
and General Manager, Félix Parra. The initiative is pioneering
in Europe and is led by the Adecco Foundation and the CEOE
Foundation.
Aqualia also renewed its commitment to the Diversity Char-
ter, which it has been committed to since 2018. This is the
European charter of principles that numerous companies and
organisations in Spain sign on a voluntary basis to make their
commitment to diversity and inclusion in the workplace visible.
In this context, Aqualia contributed to the goals of equality
and diversity with different initiatives during 2021. The aware-
ness campaigns developed for International Women’s Day (8
March) stand out. Under the motto “Who is behind the Man-
agement of the End-to-end Water Cycle?… Them too”, this
year Aqualia wanted to recognise the role of water profession-
als and give them the prominence they deserve. The company
opened the website www.aqualiaigualdad.com so that employ-
ees, professionals in the sector and the public in general could
share their photographs and messages of support for gender
equality, with the hashtag #AqualiaIgualdad.
On this Day, a corporate press release was issued to report on
the aforementioned campaign, participation in the eighth edi-
tion of the #EmpleoParaTodas Report and other actions that
Aqualia carries out to favour equality. Messages were also post-
ed on social networks, with an impact of 21,480 impressions
on Twitter (number of times users saw the tweet) and 6,325
impressions on LinkedIn. Internally, Aqualia organized a virtual
meeting with Matilde Fernández, former Spanish Minister for
Social Affairs and honorary member of UNHCR. Nearly 200 em-
ployees from all territories participated in the event.
The Day for the Elimination of Violence against Women (25 No-
vember) was also promoted. Under the slogan “Take the leap!”,
the company invited all citizens to participate in the equalling
challenge, by jumping the height of the largest waterfall in the
world: the Angel Falls, where the water falls one kilometre. To
participate, people had to share on the website www.Aqualiac-
ontigo.com of them jumping and also share it on Twitter with the
hashtag #AqualiaContigo. The massive response the campaign
has received this year meant that regional governments from
different localities and various countries, with their mayors and
councillors leading citizen participation, joined the proposal and
made it entirely their own.
#Sedsolidarios Campaign.
Aqualia, in collaboration
with the Spanish UNHCR
Committee, launched
a new edition of its
www.sedsolidarios.com
campaign
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Communication, marketing and CSR | Page 12 of 12
_ 191
In addition during 2021, various initiatives have continued to
guarantee access to drinking water and sanitation for citi-
zens who cannot pay their water bills due to economic rea-
sons or social exclusion. Services such as Chipiona (Cádiz),
Llagostera (Girona) or Novelda (Alicante) are some examples of
this initiative that Aqualia intends to transfer to all areas where it
operates. The goal is to ensure that no citizens are deprived of
a domestic water service for economic reasons in collaboration
with the owner of the service (city hall) and its social services.
After several years collaborating on different research projects,
the fruitful relationship between Aqualia and the University
of Almería culminated in the creation of the Aqualia Chair of
the End-to-end Water Cycle. The agreement was signed for
a two-year period, extendable for two more, and focuses on
research to apply solar energy to the various water cycle pro-
cesses. The teaching and research tasks of this initiative seek
to be in alignment with the UN Sustainable Development Goals,
prioritising research that can contribute to achieving them. With
its creation, Aqualia contributes directly to SDG 6, which guar-
antees the availability and sustainable management of water
and sanitation, and to SDG 17 in the search for partnerships
between institutions and companies.
Among other actions carried out in 2021 with a high social
impact, one that stands out is the SOS Gorriones project in
Jerez de la Frontera (Cadiz), where Aquajerez – a subsidiary
company of Aqualia in the city of Cadiz – signed an agreement
with the environmental association FauNatura to implement
a project to help repopulate sparrows in the urban areas and
outskirts of Jerez. Wooden nesting boxes will be manufactured
in collaboration with associations for people with disabilities,
schools or the elderly in the city. These nests, which will have a
brass plate with the Aquajerez logo, are installed in trees in city
schools next to bird feeders.
Presentation of the #SOSGorriones Project, whose goal is to facilitate the proliferation of sparrows and other urban species
in Jerez de la Frontera, Cadiz (Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Regulatory compliance | Page 1 of 4
_ 192
Regulatory compliance
Two self-assessments was carried out during the year by the
control and process owners to verify the execution of the con-
trols aimed at mitigating the Compliance risks that had subse-
quently – through sampling – been monitored by the Compli-
ance Function to detect gaps and find possible improvements
in the system. From the third line of defence, FCC Internal Audit
reviewed the Compliance Model where its proper development
has been verified and recommendations made aimed towards
its continuous improvement.
Among the Compliance department’s goals for 2021 was the
continuation of the extended Compliance Model in some inves-
tee companies within the international activity, thereby contin-
uing with its implementation, especially in MENA where work
is being done to reach agreements with partners on this issue.
It should be noted that 2021 was the year of international ex-
pansion for Compliance, as local Compliance Officers have
been appointed in America, the Czech Republic, France and
Portugal, all reporting to Aqualia’s Chief Compliance Officer.
The supplier approval system was implemented in the FCC
Group in 2021, which is initially in its development phase for the
activity in Spain. Depending on the risk initially determined by
Compliance, reinforced due diligence may be required to verify
the warning signs that could arise during approval.
Based on the approval of the Compliance Risk Assessment
Procedure, the methodology for carrying out the criminal risk
assessment was determined, which allowed it to be updated in
the first quarter of the year.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Regulatory compliance | Page 2 of 4
_ 193
In 2021, the Compliance
Risk Assessment Procedure
was approved, which
establishes the methodology
for performing the
Compliance risk analysis
Compliance policies and
procedures
In 2021, the Compliance Risk Assessment Procedure (Compli-
ance Management) was approved, which establishes the meth-
odology for performing the Compliance risk analysis.
The Procedure for Selecting and Contracting Agents has also
been approved as a development of the Agents Policy that es-
tablishes the categories of agents with whom relationships can
be made and the suitability analysis to be carried out prior to
any contracting with these third parties.
In addition, the following procedures that have an impact on the
Model and the controls aimed at mitigating Compliance risks
have been updated:
• Procedure to manage and control sponsorships and dona-
tions (Communications and CSR management).
• Staff selection procedure (National and International) (People
and Culture management).
• National and International Purchasing Procedure (Purchasing
management).
• Cash Management Procedure (Financial management).
• Purchase Order Generation Procedure/receipt of delivery
note in SAP (Financial management).
• Open Order Management Procedure (Financial manage-
ment).
• Human Consumption Water Quality Incidents Procedure (Op-
erations management).
Work has been done on updating the Due Diligence Procedure
for third parties on Compliance issues to extend due diligence
analyses to private clients, to suppliers that require enhanced
due diligence during the supplier approval process and to M&A
processes.
The FCC Group has also updated both the Selection Policy
(FCC Group Human Resources management) and the Suppli-
er Management Procedure (FCC Group Purchasing manage-
ment), which includes the approval of suppliers by issue, includ-
ing Compliance.
Training and awareness
As a fundamental part of developing the Compliance Model,
a training plan was established for 2021 that allowed online
courses to be taken through the FCC Campus, expanding its
reach internationally arena, as in the case of employee training
on the Code of Ethics and Conduct that were developed and
adapted to each language in Portugal, the Czech Republic and
France. Likewise, the online training on “6 keys for a smooth
tender process” was given through FCC Campus to key em-
ployees directly or indirectly involved in tender processes.
All new employees who joined Aqualia (in the national activity)
who had online access, where trained on the Code of Ethics
and Conduct through FCC Campus. Acque di Caltanissetta
SpA also provided this training in-person for new employees.
As a complement to this, and because of the restrictions due
to COVID-19, digital platforms (Teams) were used for training
given directly to key employees, as in the case of the training
given by the Chief Compliance Officer on the Code of Ethics
and Conduct to the Senior Management of Aqualia France who
attended from their offices in Andrésy (France).
For employees in Spain, Portugal, France, Italy, the Czech Re-
public and Latin America who may have a relationship with pub-
lic officials due to their work, training was carried out whereby
the basic regulatory principles were included (Criminal Code
and international standards: FCPA, UK Bribery Act, World Bank
Integrity Guidelines) for the fight against corruption and bribery.
Anti-corruption training was provided to the new process and
control owners, which also explained the purpose and opera-
tions of the company’s Crime Prevention Model.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Regulatory compliance | Page 3 of 4
_ 194
A training session was also held on the due diligence process-
es from the approval of the Due Diligence Procedure with third
parties on compliance issues for all employees in the Commu-
nications and CSR department, the Legal Advice Area and pro-
duction departments that may have a relationship with business
parties, as they have to know what measures must be taken to
align third parties with Aqualia’s ethical principles and values
before establishing a relationship with them.
As part of raising employees’ awareness on Compliance issues,
the so-called ‘Compliance Tips’ were periodically disseminated
by email – advice with which its main policies have been influ-
enced – where, among other matters, explanations were given
on what the Compliance system is, what is a conflict of interest,
the gifts policy, the measures to prevent and eradicate harass-
ment, the members of the Compliance Committee and what its
functions are, or the proper use of the Aqualia brand.
The intention was also to reach offline personnel by disseminat-
ing the Compliance Tips through the BeAqualia App.
It should be noted that based on the due diligence carried out
on business parties (third parties with whom Aqualia establish-
es a contractual relationship), if a low culture of Compliance
is detected in the analyses, the key employees of those third
parties (who are going to have a relationship with Aqualia) will
undergo training on the Code of Ethics and Code of Conduct
and – in some cases – will also get training on the prevention
of corruption to disseminate the Group’s ethical principles and
values and international anti-corruption standards.
Risk controls assessment
Based on the risk assessment carried out and the controls es-
tablished to mitigate the risks, two certifications on the exe-
cution of controls by their control and process owners were
carried out in 2021, which occurred in May-June and Novem-
ber-December. In both certifications, all the control owners
self-assessed the execution of their controls, ascertaining the
evidence that the activity has been carried out and, therefore,
the corresponding risk being mitigated. Likewise, all the pro-
cess owners verified the information provided by the each con-
trol owner that makes up the different processes.
Based on the information provided by control and process own-
ers in the certification, Compliance management analysed the
data sent by the corresponding process owners to work on the
improvements detected.
The subsidiaries Acque di Caltanissetta SpA, SmVaK and
Aqualia France joined the self-assessment process to execute
anti-corruption controls, which was carried out between No-
vember and December 2021 which verified the activity carried
out between May and October 2021.
At the same time as the certification process, Compliance man-
agement monitored the processes assessed by the control
owners and reviewed by the process owners, analysing wheth-
er the risks have been covered and highlighting any deficiencies
detected, which were passed on in meetings held with process
owners.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Regulatory compliance | Page 4 of 4
_ 195
Due diligence with third
parties in Compliance issues
In 2021, Compliance management continued with Aqualia’s
third-party analysis activities on compliance issues, consolidat-
ing the entire organisation’s application and knowledge of the
due diligence measures considered in the Procedure approved
in June 2020, and also through the call for internal training
courses on this subject aimed at the requesting departments.
The evaluation of third parties is carried out using the principle
of proportionality and with a focus on risk. Having identified the
different types of business party (partners, agents, collabora-
tors, special suppliers, etc.), the third-party’s risk level (high,
medium or low) is determined according to the project, the
sector and the country where the activity will take place. The
analysis scope for evaluating the final risk is established on the
basis of the initial risk from the basic information provided by the
requesting department and includes anything from consulting
lists of sanctions up to requesting a background check by the
FCC Intelligence department.
In terms of the scope of due diligence measures, Compliance
management this year worked on establishing the analysis cri-
teria for Aqualia’s private clients. On the other hand, it began
its involvement in the supplier approval process, which is be-
ing carried out by FCC’s Purchasing department, providing the
minimum requirements for the certification of suitability of these
third parties in terms of compliance.
At 31 December 2021, the due diligence of 116 third parties
identified in 45 projects had been initiated. Of these 116 busi-
ness parties, a final assessment report has been obtained for
71%; some 8% corresponding to projects that were cancelled
before the completion of the due diligence and 22% still in the
analysis phase. Of the final assessment reports issued by Com-
pliance management, 23% of third parties were classified as
high risk; 57%, medium risk and 20%, low risk. Depending on
the risk levels, mitigation measures are applied.
Ethics Channel
(Whistleblowing line)
Until 31 December 2021, a total of 52 alerts were received via
the Ethics Channel on matters related to customer manage-
ment (21%), issues that may cause environmental harm (6%),
labour conflicts between employees (4%), non-compliance with
internal regulations (2%), prevention of occupational risks (2%),
harassment (2%) and not considered relevant due to their being
queries, complaints or claims from clients that need to be man-
aged through Aqualiacontact (63%).
Alerts classified as high or medium risk are analysed in detail
and, where appropriate, an investigation opened to clarify the
facts and, if necessary, their resolution through an action plan.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Digitalisation and cybersecurity | Page 1 of 4
_ 196
Digitalisation and cybersecurity
In recent years, Aqualia has made a clear commitment to dig-
italisation as it is a key tool to confront the various challenges
related to sustainability, reducing the environmental impact and
continuously improving customer service.
For this reason, Aqualia began process to digitally transform the
end-to-end water cycle a few years ago, and it is now a reality.
Our work as a global water operator affords us a privileged po-
sition to offer a comprehensive and flexible solution to current
and future service problems. As expected, this comes with the
highest cybersecurity standards.
Our work as a global water
operator allows us to offer
a comprehensive and flexible
solution to the current and
future problems of the service
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5a FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Digitalisation and cybersecurity | Page 2 of 4
_ 197
AqualiaLive
AqualiaLive includes all the tools needed to manage the end-
to-end water cycle:
• IoT – Management of connected devices (smart
meters, sensors, remotes, etc.).
• Geographic information system.
• Management of the complete life of the Assets (wa-
ter treatment plants, treatment plants, desalination
plants, supply and sanitation networks, etc.)
• Customer management, incorporating all commu-
nications channels with customers (office service,
call centre, virtual office, App, etc.), in addition to all
back office processes (readings, billing, collections,
etc.).
• Laboratory management and integration with certi-
fying entities.
• And, of course the smart management of processes
in AWA – Aqualia Water Analytics is the analytical
platform to manage the water cycle smartly. In-
formation from IoT devices through the use of Big
Data, Cloud Computing, Machine Learning and AI
technologies.
New technologies make it possible to improve connectivity and
therefore accessibility to significant data (IoT), turning informa-
tion into knowledge much faster (Big Data and Cloud Comput-
ing). It also helps decision-making, management and process
monitoring (AI/ML).
AqualiaLive incorporates these technologies to offer a modular
and integrated platform that allows managers of the end-to-end
water cycle to have the most advanced tools to manage the
process in the most efficient and sustainable manner, as well as
providing the best service to citizens.
The platform is made up of independent and fully integrated
modules, to cover all management needs. The design of the
platform is based on Aqualia’s experience in the water sector
and the use of the most advanced technology to benefit the
management of the end-to-end water cycle.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Digitalisation and cybersecurity | Page 3 of 4
_ 198
Continuous digitalisation
Toledo Technology Centre
Toledo was the city chosen to host the first Technological
Centre that Aqualia set up. This is the most advanced facility of
this type in the sector, a fully functional centre that allows cen-
tralised and online access to all Aqualia’s information.
The Toledo Technology Centre came up with Aqualia Water An-
alytics, which is the analytical platform for the smart manage-
ment of the water cycle and is part of the Aqualia Live platform.
This platform captures information from the IoT devices in the
water cycle, and converts it into knowledge and business intel-
ligence through Big Data, Cloud Computing, Machine Learning
and AI technologies.
The platform encompasses the complete data cycle from col-
lection from IoT devices, real-time processing, enrichment and
transformation, and the generation of business intelligence, al-
lowing process automation and integration with the other solu-
tions that make up AqualiaLive.
The platform was designed taking a plural ecosystem of con-
nected devices into account, a range of communications tech-
nologies and a multitude of field technological solutions. As a
result, AWA affords Aqualia greater adaptability and flexibility in
prescribing IoT solutions based on the specific needs of each
location.
AWA is the analytical tool that offers Aqualia a cross-cutting
analysis of the end-to-end water cycle, allowing OT and IT infor-
mation to be analysed, in addition to external information sourc-
es. All of this is done within a secure framework, following strict
cybersecurity policies.
Image of the Aqualia Water Analytics platform.
Applying AI/ML techniques, the AWA platform offers Aqualia’s
users smart management tools in an analytical environment de-
signed to provide the best user experience.
The analytical platform is designed along three key axes:
• Geospatial analytics, which allow user analyses through ge-
opositioning on maps that include navigation features and
interactive data viewing.
• Comparative analytics, which allow users to generate tailored
queries and analyse them on interactive graphs.
• Advanced analytics, through AI/ML, advanced analytics tools
are provided.
Aqualia worker using the company’s digital tools.
Aqualia currently has two technology centre where innovative
initiatives are designed and tested and have their viability veri-
fied, before finally being developed and industrialized for subse-
quent roll out into the rest of Aqualia.
These two centres are both specialised:
• Toledo Technological Centre: specialised in managing supply
and sanitation networks.
• Dénia Technology Centre: specialised in Smart meters.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | End-to-end Water Management | Digitalisation and cybersecurity | Page 4 of 4
_ 199
our country’s main cities at present. In addition, Dénia (Alicante)
combines the most innovative communication technologies,
LoRaWAN and NB-IoT (5G), which is all managed by Aqualia
Water Analytics within AqualiaLive.
As well as being an innovative and efficient remote meter read-
ing system, remote reading improves service management as
it allows users to check their water consumption at any time.
State-of-the-art technology is available for this, which allows
detailed access to online information through Aqualia contact,
the Aqualia App for water management by citizens.
Among other things, this allows citizens to have an alarm sys-
tem for internal leaks to know instantly if they are losing water
as very high consumption will be seen. This allows a solution to
the leak to be anticipated and the possibility of receiving high
consumption bills reduced.
In addition to remote metering, the Dénia technology centre in-
corporates real-time monitoring of the urban water cycle, from
its capture to sanitation. This data is available thanks to sensors
installed across more than 500 kilometres of supply networks
and other facilities.
Digital assessment
In 2021, McKinsey carried out a “digital opportunity assess-
ment” on Aqualia. In this analysis, McKinsey assessed Aqualia’s
digital maturity, rating it above the average for utilities (electrici-
ty, gas and water companies).
Cybersecurity
In 2021, the main cybersecurity initiatives were:
• To identify and develop the necessary cybersecurity skills and
knowledge in the different areas and foster a culture of cyber-
security across all levels of the organisation.
• To implement and prioritise cybersecurity measures based on
an analysis of risks and threats and focusing on the systems
that support critical infrastructure and essential services.
• To establish mechanisms to supervise the cybersecurity sta-
tus in the different areas of the company and guarantee com-
pliance with applicable internal and external regulations.
Presentation of the new Dénia Technological Centre, Alicante (Spain).
Dénia Technology Centre
The municipality of Dénia is a national benchmark for its high
rate of remotely read meters (96% of the meter pool). This clear-
ly exceeds the average of 16.7% of meters read remotely in
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure
_ 200
In 2021, the Infrastructure Area
of the FCC Group recorded an
aggregate total attributable
portfolio of 3.98 billion euros.
The gross operating profit
(EBITDA) reached 102.6 million
euros and turnover increased
3.0% compared to the previous
year to 1.66 billion euros.
Infrastructure
Industry analysis _ 202
Activity in the Infrastructure Area _ 206
Highlights Infrastructure 2021 _ 217
Sustainability and excellence _ 218
Innovation and technology _ 221
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure
_ 201
With cumulative experience of over 120 years, the Infrastruc-
ture Area of the FCC Group is present in 24 countries (Spain,
Canada, United States, Mexico, Brazil, Colombia, Chile, Peru,
Panama, Costa Rica, Dominican Republic, Nicaragua, Guate-
mala, Romania, United Kingdom, Belgium, Norway, the Nether-
lands, Ireland, Portugal, Egypt, Saudi Arabia and Qatar) and its
activities cover all areas of engineering and construction.
It is a leader in implementing transport infrastructure, as
well as residential and non-residential construction. It 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 im-
plementing 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 2021, Infrastructure Area of the FCC Group recorded an ag-
gregate total attributable portfolio of 3.98 billion euros. The
gross operating profit (EBITDA) reached 102.6 million euros
and turnover increased 3.0% compared to the previous year
to 1.66 billion euros. In 2021, the portfolio of international pro-
jects dropped by 22.8% and income from domestic activities
increased by 4.3% compared to the previous year, at over 885
million euros.
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.
North Runway extension, Dublin International airport (Ireland).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Industry analysis | Page 1 of 4
_ 202
Industry analysis
Domestic market
Spain
The construction sector accounts for around 12.5% of Spain’s
GDP and employs more than 1.3 million people. The sector has
had to overcome multiple impacts on its operations and market
structure since 2020.
It is currently facing increased raw materials prices, with the
consequent increase in construction costs of more than 13%,
as well as growing demand for qualified labour to execute the
projects.
All international forecasts project 49% net growth on residen-
tial projects, 20% on non-residential construction projects and
14% on civil engineering projects.
The sector has shown its resilience, which was put to the test
by the sharp global financial crisis of 2008, demonstrating that
it is a fundamental sector for the country. It continues to show
strength and solvency despite the situation of recent months.
A-465. Sections 5-6, Wales (United Kingdom).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Industry analysis | Page 2 of 4
_ 203
International market
Europe
The sector presents an intense economic recovery, which has
normalised demand in a very short period of time and generat-
ed extra demand. On the contrary, strong inflation is driving up
the costs of projects and is compounding the recurring labour
shortage issue.
In 2021, the sector grew 5.6% in Europe, and will retain enough
inertia to grow further in 2022 (3.6%).
Looking at subsectors, residential construction grew strongly
in 2021, standing at 7.3%. During the first months of 2022, the
order book has grown and has stood at 4.5%, a symptom of
greater demand.
Non-residential construction continues to be the subsector
with the greatest difficulty in its recovery, and is not expect-
ed to return to pre-pandemic production levels until 2023. The
growth forecast for 2022 is 4.3%. By market niche, the recov-
ery will come more gradually: in logistics; in offices, healthcare
buildings and industrial buildings.
In civil engineering, upcoming years will be positive for infra-
structure in Europe; the NextGenerationEU funds will allow all
this latent potential to materialise and not be postponed. The
2021 financial year closed with growth of 5.1%. Growth of 4%
is expected in 2022; becoming more expansive in Norway and
the United Kingdom.
In 2021, the sector
grew 5.6% in Europe,
and will retain enough
inertia to grow further
in 2022 (3.6%)
Latin America
Latin America in 2021 presented investment growth in infra-
structures of 2.6%. However, the IDB (Inter-American Develop-
ment Bank) recommends investment of 100 billion dollars per
year for the next few years to improve and strengthen infra-
structure and promote commercial development in the region.
The outlook for infrastructure investment in Latin America
shows full growth:
• Transport infrastructure (33.6 billion dollars).
• Energy infrastructure (6.6 billion dollars).
• Urban planning and services projects (4.2 billion dollars),
with important projects in the tender, design or construction
phase, such as the Agua Negra binational tunnel, which will
connect Argentina and Chile through Los Andes (1.5 billion
dollars), the electric train network of the Greater Metropolitan
Area of Costa Rica (1.6 billion dollars) or the Buenos Aires
Regional Express Network in Argentina (2.3 billion dollars).
Guillermo Gaviria Echeverri tunnel (Colombia).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Industry analysis | Page 3 of 4
_ 204
North America
The outlook is positive. In the near future, the possibilities of
developing projects resulting from the US Infrastructure Devel-
opment Plan will be expanded, which has an amount of 1.2
trillion dollars, of which 550 billion dollars is for civil engineer-
ing projects, including funds for roads, bridges, airports and rail
systems.
The infrastructure development plan is split into the following
items:
• 110 billion dollars (95.2 billion euros) to reconstruct road infra-
structure.
• 46 billion dollars (39.8 billion euros) to rail, including 21.8 bil-
lion to the Washington-New York-Boston corridor.
• 25 billion dollars (21.6 billion euros) to airport infrastructure.
• 17 billion dollars (14.7 billion euros) to ports.
• 55 billion dollars (46.7 billion euros) to improve the supply of
Gerald Desmond Bridge (United States).
drinking water.
• 65 billion dollars (56 billion euros) to expand broadband tele-
communications.
• 65 billion dollars (56 billion euros) to renew the electricity net-
work, with priority given to generation through renewables.
Middle East
Australia
Middle Eastern countries have overcome the difficulties im-
posed by COVID by developing a strict vaccination plan. Work
is currently underway to combat the sharp rise in government
deficits and national debt across all countries in the Middle East.
Although spending and monetary easing will support the poten-
tial growth of the infrastructure sector.
The Australia Infrastructure Plan was published in 2021. The
plan responds to the 180 challenges and opportunities. Infra-
structure Australia’s vision for 2036 is to have an infrastructure
that improves the sustainability of the country’s economic, so-
cial, environmental and governance environments, supports
quality of life for all Australians and is resilient to emerging
stresses.
More than 110 billion dollars of investment in infrastructure, to
provide the backbone of Australia.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Industry analysis | Page 4 of 4
_ 205
FCC Industrial develops
its activity in various
subsectors, from the design and
execution of facilities
and maintenance of
infrastructure, electricity networks
and railways, through
industrial construction to the
development of management
systems for defence, mobility
and infrastructure
Data Processing Centre.
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 in-
vestment and internal consumption curbed by the pandem-
ic, although the 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Activity in the Infrastructure Area | Page 1 of 11
_ 206
Activity in the Infrastructure Area
2
3
4
5
6
Civil engineering
Non-residential construction
Hydraulic works
7
New contracts awarded
In progress
1. SPAIN
Remodelling of Santiago
Bernabéu Stadium in Madrid.
Environmental Centre of the
Pamplona Region (Navarre).
Comprehensive remodelling
of Plaza España in Madrid.
Closure of the circular road in
Tenerife, the Canary Islands.
Remodelling of Nudo Norte
in Madrid.
Mirroring of the R-3 commuter
train line in Barcelona.
11
13
10
12
14
1
8
9
2. CANADA
195 kilometres of
Trans-Canadian motorway.
€205 million (30 years).
3. MEXICO
Tren Maya. Section 2.
€637 million.
4. PANAMA
Line 2 branch of Panama metro
to Tocumen Airport.
€81.8 million.
5. COLOMBIA
Toyo tunnel.
€366.7 million.
"El Salitre" wastewater treatment
plant.
€398 million.
Market 2021
National:
Portfolio of contracts: €1,368.0 million.
Revenue: €885.2 million.
International:
Portfolio of contracts: €2,613.3 million.
Revenue: €774.4 million.
6. PERU
Line 2 and Line 4 branch of the
Lima metro.
€3,900 million.
7. CHILE
Parque Mapocho Río.
€55 million.
Industrial Conception Bridge.
€116 million.
8. PORTUGAL
Modernisation of the Torres Vedras
rail corridor.
€39 million.
Modernisation of the railway line
between Covilhã and Guarda.
€61.4 million.
Extension of the A4 motorway in
Aguas Santas.
€13.4 million.
9. SAUDI ARABIA
Additional stations on Line 4 of
Riyadh Metro. Park and Ride on
Line 4. Science Park on Line 5.
€612 million.
Lines 4, 5 and 6 of the Riyadh Metro.
€7,528 million.
10. NETHERLANDS
Section of the
Badhoevedorp-Holendrecht A9
motorway.
8€45 million.
11. NORWAY
Rv. 555 Sotrasambandet, the Sotra
Connection.
€1,210 million.
12. BELGIUM
Haren prison.
€322 million.
13. UNITED KINGDOM
Section of the A465 dual carriageway.
€665 million.
Design of Jersey hospital.
€32.8 million.
14. ROMANIA
Railway lines in Transylvania and new
railway awards.
€1,480 million.
Design and construction of the
wastewater treatment plant
and sludge incinerator in Glina,
Bucharest.
€113 million.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Activity in the Infrastructure Area | Page 2 of 11
_ 207
Projects in
development
Throughout 2021, the Infrastructure Area was
awarded contracts worth approximately 802.2
million euros.
CONSTRUCTION
Residential construction
Construction of 68 homes, premises and car parks on plot
P1-P2, sector 10 Marina, on Paseo de Zona Franca in Bar-
celona (Spain).
Construction of 142 homes, premises and car parks on plot
P1-P2,, sector 10 Marina, on Paseo de Zona Franca in Bar-
celona (Spain).
Construction of 77 homes, car park and storage in Avenida
de Navarra 18, in Badalona, Barcelona (Spain).
Building at Sousa Martins 21 (Pocoas Belair), Lisbon (Portu-
gal).
Construction of 56 homes (Portugal).
Construction of 48 homes in San Sebastián de los Reyes,
Building at Luis Bivar, 91, Lisbon (Portugal).
Madrid (Spain).
Building at Sousa Martins, 21, Lisbon (Portugal).
Construction of 104 homes in Torremolinos, Málaga (Spain).
116 homes in Alcalá de Henares, Madrid (Spain).
Construction of 114 homes in Cancelada, Málaga (Spain).
Construction of 123 homes in Torremolinos, Málaga (Spain).
Construction of 132 homes in PAU Ciudad Deportiva FC
Barcelona in Sant Joan Despí, Barcelona (Spain).
Remodelling of the Santiago Bernabéu Stadium, Madrid (Spain).
Construction of 86 homes Volpelleres de Sant Cugat del
Awarded
In progress
Complete
Vallès, Barcelona (Spain).
Construction of 108 homes with commercial premises, ga-
rage and storage in calle Almazora 2, Valencia (Spain).
40 homes in Valdebebas, Madrid (Spain).
85 homes in Tres Cantos, Madrid, (Spain).
144 homes in Arroyo Fresno, Madrid (Spain).
42 homes in Arroyo Fresno, Phase I, Madrid (Spain).
80 homes in Alcalá de Henares, Madrid (Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Activity in the Infrastructure Area | Page 3 de 11
_ 208
Non-residential construction
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
Owners’ Association, with the expansion of Phase IV, seal-
ing 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).
Rehabilitation work of Building III “Tercio” of the General
Directorate of the Guardia Civil in Madrid, on the building
located at calle de Guzmán el Bueno, 112 Madrid (Spain).
Construction of an underground building with three base-
ment levels to house the future 132/15KV Electrical Substa-
tion in Plaza de España, Madrid (Spain).
Expansion and renovation of Soria hospital, Soria (Spain).
Salamanca hospital, Salamanca (Spain).
Phase 0 of the Master Plan for La Coruña University Hospi-
Remodelling of the Santiago Bernabéu Stadium, Madrid
tal Complex (Spain).
(Spain).
Construction of the Ensanche de Vallecas Municipal Sports
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-
plex, Madrid (Spain).
Awarded
In progress
Complete
Regional Biocontainment Unit, La Rioja (Spain).
Drafting of the project, execution of the work and commis-
sioning of the Environmental Centre of the Pamplona Re-
gion (CACP), Navarre (Spain).
Expansion of San Juan de Dios Hospital, Seville (Spain).
Refurbishment of Club de Mar de Mallorca in Palma de Mal-
Glòries Tunnel, Barcelona (Spain).
lorca, Balearic Islands (Spain).
Expansion of the “Las Marinas” integrated waste process-
ing plant in El Campello, Alicante (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).
Execution of the works for the tertiary building and car park
for the Digital District on Dock 5 of the Port of Alicante, Ali-
cante (Spain).
Remodeling Facilities of the ASTA Building in the Port of
Barcelona, Barcelona (Spain).
Renovation of the Philosophy and Humanities building of
Office Building on plot P1-P2, sector 10 Marina Paseo de
the University of Zaragoza, Zaragoza (Spain).
Zona Franca in Barcelona (Spain).
Construction of the Business Creation Centre of the Univer-
Authentic Bicas hotel complex, Grândola (Portugal).
sity of Alicante, Alicante (Spain).
Santa Luzia primary school, Elvas (Portugal).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Business lines | Infrastructure | Activity in the Infrastructure Area | Page 4 de 11
_ 209
Trackbed works on the Totana-Lorca section of the Mur-
cia-Almeria high-speed line (Spain).
Works on platforms across Line 12 of
metro.
drid
Madrid (Spain).
Móstoles-Conservatorio
the Ma-
Hospital,
Improvement works to subsection 2.3 (Alfarelos/Pampilho-
sa) of the North railway line (Portugal).
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-Taboadela section, Galicia (Spain).
Adaptation of the Sagunto-Teruel-Zaragoza line. Estivella,
Teruel, Ferreruelas and Cariñena stations (Spain).
Trackbed works on the Níjar-rio Andarax section of the Mur-
cia-Almeria high-speed line (Spain).
Infrastructure maintenance and Conventional Network
Track for ADIF - Lot 1 Centre (Spain).
Execution of the works for the Quisi Viaduct construction
project in the Calp-Teulada section of line 9 of the TRAM
network, Alicante (Spain).
Rehabilitation of the railway between Pinhão and Tua (Por-
Infrastructure maintenance and Conventional Network
tugal)
Track for ADIF - Lot 6 South (Spain).
Modernisation of the railway between Covilhã and Guarda
(Portugal).
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).
Maintenance of the south high-speed line. Hornachuelos,
Cordoba, and Antequera, Malaga, bases (Spain).
Services, infrastructure and track maintenance for ADIF
2021-2022 conventional and metric gauge lines. Lot 2
North Operations Division (Spain).
Services, infrastructure and track maintenance for ADIF
2021-2022 conventional and metric gauge lines. Lot 5 Cen-
tral Operations Division (Spain).
Contrato de servicio para el mantenimiento integral de la
superestructura de vía de Metro de Madrid (Lote 3 aproxi-
madamente el 50% de la red de Metro de Madrid) (España).
Railway bridge. Renovation of railway sections in Transylvania (Romania).
Railways
Lowering and adaptation of platforms L1 and L9 and ren-
ovation of the sidings and railway installations, FGV TRAM
Network, Lot 1, Benidorm, Alicante (Spain).
Execution of the Tunnel and Station works for the Zona Uni-
versitaria-Sagrera Meridiana section of Line 9 of the Bar-
celona Metro – Section III – IVB, Prat de la Riba, Sarrià,
Mandri, Barcelona (Spain).
Improved accessibility and adaptation to the interchange
regulations of Maragall station (L4 and L5 FMB), Phase 1,
Barcelona (Spain).
Awarded
In progress
Complete
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Activity in the Infrastructure Area | Page 5 de 11
_ 210
Services, infrastructure and track maintenance for ADIF
2021-2022 conventional and metric gauge lines. Lot 6
South Operations Division (Spain).
Comprehensive maintenance service contract of the Madrid
Metro track superstructure (Lot 3, approximately 50% of the
Madrid Metro network) (Spain).
Accesses to La Sagrera station, Barcelona (Spain).
Valladolid arterial railway network. East diversion (Spain).
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
Hydraulics
Project and adaptation work of the WWTP. El Endrinal de
Collado Villalba, Madrid (Spain).
Lot 7 of the Pipeline Renovation Works for the Canal de
Isabel II supply network, Madrid (Spain).
Gouvães dam (Vila Pouca de Aguiar, Portugal).
Construction of a storm reservoir in the area of Arbeyal, Gi-
jón (Spain).
Construction of the Castrovido dam, Burgos (Spain)
Heightening of the Yesa dam, Navarre (Spain).
(Portugal).
Construction of the storm tank for the WWTP Galindo, (Viz-
Replacement of the Ciudad Real-Portuguese Border con-
ventional network bridge.
Removal of the level crossing at the entry to Monfragüe lo-
cated on the conventional line (Cáceres, Spain).
Comprehensive track renovation in the Gijón-Laviana sec-
tion of the metric gauge network in Asturias (Spain).
Gauge extension on overpasses, on the route not affected
by the San Julián variant, between Ourense-Monforte-Lugo
(Spain).
New track configuration as a result of the elimination of the
Ferrol-Ortigueira telephone blocks (Spain).
Implementation of standard width in the Mediterranean Cor-
ridor. Castellón-Vinaroz section (Spain).
Execution of the works corresponding to the diversion reno-
vation project (Phase 1) on the Madrid-Seville HSL (Spain).
Modernisation of the Torres Vedras and Caldas Da Rainha
railway line (Portugal).
caya, Spain).
Distribution network works for the Segarra-Garrigues Sys-
tem. Sector 10-11-14. Secondary network Floor C Perime-
ter I, El Cogul, Lleida (Spain).
Gouvães dam (Vila Pouca de Aguiar, Portugal).
Maritime
Expansion of the Port of Playa Blanca, Lanzarote, Canary
Islands (Spain).
Expansion of the esplanade on the Poniente Norte pier in
the Port of Palma de Mallorca, Mallorca, Balearic Islands
(Spain).
Construction using floating caissons of the Balearic Dock in
the Port of Tarragona, Phase I, Tarragona (Spain).
Port Adriano, rehabilitation of the breakwater, Balearic Is-
lands (Spain).
Riad-Al Hamra Metro Station (Saudi Arabia).
Awarded
In progress
Complete
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Activity in the Infrastructure Area | Page 6 de 11
_ 211
Berthing of liquid bulk project on the bottom bank of the
Structural renovation of the Central and South galleries of
South Dock at the Port of Castellón, Castellón (Spain).
the Aguas Santas tunnel (Portugal).
Rehabilitation and functional improvements to the Breakwa-
ter Overhang at the Olympic Port in Barcelona, Barcelona
(Spain).
Tâmega and Oura bridges (Portugal).
Extension of the A4 motorway in Aguas Santas (Portugal).
Roads
Urbanisation
Construction on the remodelling of Calle 30 North inter-
change, Madrid (Spain).
Construction of “Anillo Insular de Tenerife”, Canary Islands
(Spain).
Access to El Altet airport. Dualing of road. N-338, Section:
N-332-A-70, Alicante (Spain).
Emergency Works: damage to infrastructure due to storm
“Gloria”. Lot 2, Repair and Conditioning of Passage and
Slope Works, Cartagena, Murcia (Spain).
Emergency Works: Lot 2 – Works and Installations Medi-
terranean Motorway E-15/AP-7. Section: Almussafes-San
Joan D’Alacant. Valencia (Spain).
Execution works for the Plaça de les Glòries road tunnel, a
Tunnel between Carrer de Badajoz and Rambla del Poblenou.
Lot 5. Barcelona (Spain).
Renovation of the Águas Santas tunnel (Portugal).
Awarded
In progress
Complete
Urbanization of plot T.P.T 10 of the “A. R. Nuevo Tres Can-
tos”, Madrid (Spain).
Urbanisation of stage 1 of U.Z.P. 2.04 Los Berrocales (Ma-
drid, Spain).
Remodelling of Plaza España and its surroundings, Madrid
(Spain).
Renovation of the La Gavia park Phase II, Madrid (Spain).
Urbanisation of A.P.E. 027 Nuevo Mahou-Calderón,
Madrid (Spain).
Sanitation network,
re-
flection centre within the U.Z.P. 2.04 Los Berrocales,
Madrid (Spain).
transformation centre and
Block bounded by Glorietas G-2, G-3, G-4, G-5 and Vial
H-8 within the U.Z.P. 2.04 Los Berrocales (Madrid, Spain).
Earthworks and Sanitation Stage 3 located between the
Gran Vía del Sureste, A3 and M-50 within the U.Z.P. 2.04
Los Berrocales (Madrid, Spain).
Alicante airport access improvement project. Dualing of
N-338, Alicante (Spain).
Industrial
In 2021, FCC Industrial was awarded the following contracts:
220 MW Ciudad Rodrigo photovoltaic farm, Salamanca
(Spain).
Electromechanical installations and systems for the “Refor-
ma Plaza de España” project, Madrid (Spain).
Installations of the building of the General Police Station in
the Canillas Police Complex, Madrid (Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Activity in the Infrastructure Area | Page 7 de 11
_ 212
Fuentes Alcarria Photovoltaic Plant Substation, Guadalajara
(Spain).
MAINTENANCE AND CONSERVATION
Elevated substation in Iglesias, Burgos (Spain).
Microsoft Algete Substation, Madrid (Spain).
Main international projects in progress
Electromechanical Installations Riyadh metro, Riyadh (Saudi
Arabia).
100 MW Puertollano photovoltaic farm, Ciudad Real (Spain).
50 MW Barcience photovoltaic farm, Bargas, Toledo
(Spain).
590 MWp Francisco Pizarro photovoltaic farm, Cáceres
(Spain).
Electromechanical Installations in Santiago Bernabéu Stadi-
um, Madrid (Spain).
Electromechanical Installations in Soria hospital, Soria
(Spain).
Electromechanical Installations in San Juan de Dios Hos-
pital, Seville (Spain).
Maintenance of thermosolar power plants (Spain).
Maintenance of Iberdrola electrical networks (Spain).
Francisco Pizarro Photovoltaic Plant Substation, Cáceres
(Spain).
Maintenance of motorways and roads
Carrying out maintenance on more than 1,200 kilometres of
motorways and 3,000 kilometres of conventional network
roads belonging to several Public Administrations (Ministry of
Transport, SEITT, Gran Canaria City Hall, Autonomous Com-
munities, Provincial Councils, and Concessions). This network
provides service to more than 20 kilometres of tunnels.
The following contracts were obtained in 2021:
• Conservation and operation of the N-330, RN-134 and the
Somport tunnel, in Aragón (Spain).
• Conservation of high capacity roads in Gran Canaria, Canary
Islands (Spain).
• Renewal of the conservation and operations contract for the
BU-03 sector in the province of Burgos (Spain).
• Renewal of the conservation and operations service on the
EX – A1 Regional Motorway and other roads for the Junta de
Extremadura (Spain).
In addition, the provision of the service has continued in anoth-
er 16 conservation contracts for different administrations (MIT-
MA, Guipúzcoa Provincial Council, Palencia Provincial Council,
SEITT and AUCONSA).
Transformation centre of the Segura Hydrographic
Confederation (Spain).
ASTA Installations, Barcelona (Spain).
Electrical installations for the new Alcañiz Hospital, Teruel
(Spain).
Installations in Cuatro Caminos Station, Madrid (Spain).
Comprehensive maintenance, CPD Torija, Guadalajara
(Spain).
Maintenance of high and medium voltage electrical installa-
tions and lines, infrastructure of the Tajo-Segura Post-Trans-
fer (Spain).
Awarded
In progress
Completes
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Business lines | Infrastructure | Activity in the Infrastructure Area | Page 8 de 11
_ 213
Port infrastructure maintenance
Environmental services
In 2021, the conservation, maintenance and small works ser-
vice contract began in the Port of Malaga (Málaga, Spain).
• Control of vegetation in the area surrounding the overhead
electrical lines in western and southern Madrid for Iberdrola.
Hydraulic infrastructure maintenance
cal gardens.
• Management of recycling points in National Heritage histori-
During 2021, two dam maintenance contracts continued in the
Guadiana Hydrographic Confederation:
• Operation, maintenance and conservation of the Cancho del
Fresno, Ruecas, Sierra Brava, Gargáligas, Cubilar, Azud de
Ruecas, Alcollarín and Búrdalo dams.
• Operation, maintenance and conservation of dams in zone 3
of the middle basin of the River Guadiana.
Two-year extension on the service contract to optimise the
functioning, updating, maintenance and joint operation of auto-
matic hydrological data systems and flow volume measurement
station control networks for the Júcar River Authority.
Management of emergency
and forest fire services
The provision of the following services has continued:
• 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 (Valencian Community, Spain).
• Silvo-pastoral plan for the Riofrío forest in San Ildefonso, in
Segovia (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, Spain) for National Heritage.
• Conservation and cleaning of Bosquesur, for the Community
of Madrid (Spain).
• Conservation of the vegetation on the banks of ADIF lines in
the central and southern zones (Spain).
• Control and reduction of the Argentine parrot and Kramer
parrot population in the municipality of Madrid (Spain).
• Execution of the works associated with the competences of
the General Directorate for Water Management and Green
Areas of Madrid (Spain).
• Environmental restoration of mountains affected by the forest
fire in Cortes de Pallás for the Generalitat Valenciana (Spain).
Maintenance operations after the snow from storm Filomena
(Spain).
Maintenance of roads for city councils
In 2021, the maintenance of the roads of the city of Huelva
has continued for two years with the possibility of an extension
for another two years, as well as with the maintenance service
of the roads and their signalling of the municipality of Telde on
Gran Canaria (Canary Islands, Spain).
Maintenance of transport systems
The maintenance contracts for the Zaragoza and Murcia trams
(Spain) have continued.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Activity in the Infrastructure Area | Page 9 de 11
_ 214
In 2021, the following were produced in the Delta
Prefabricated factories:
• More than 51 km of concrete pipe with steel
jacket.
• 18 km of glass-fibre reinforced pipes (GRP).
• 74,200 concrete sleepers of various types.
PREFABRICATED CONSTRUCTION
Supplies for hydraulic conduits
Concrete pipes with steel jacket:
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).
Irrigation of Sector XI of Canal de Monegros, Comunidad de
Regantes de Orillena in Huesca (Spain).
Direct connection channel, Huesca (Spain).
Irrigation modernisation project in the Canal del Páramo Irri-
gation Community. Sectors IV, VI and Matalobos II Regulat-
ing pool, León (Spain).
Irrigation modernisation for the El Molinar Phase II Comuni-
dad de Regantes, Aragón (Spain).
Irrigation modernisation project in the Canal del Páramo Irri-
gation Community. Sectors IV, VI and Matalobos II Regulat-
ing pool, León (Spain).
Actions to improve the intake and transport network of the
Llíria Comunidad de Regantes from intake VII of the main
channel of the Campo del Turia, Valencia (Spain).
Glass-Fibre Reinforced Pipes (GRP):
Updated project for the Irrigation Pumping Station and Net-
work for Sector XV of Subzona de Payuelos, irrigation area
of the Riaño, first phase, León and Valladolid dam (Spain).
Galindo – Beurko storm tank for the Bilbao Bizkaia water
consortium (Spain).
Supply for railway contracts
Supply and transportation of sleepers for the renovation of
the track on the Mérida – Los Rosales Line between kilometre
points 106+00 and 111+000. Llerena – Fuente del Arco Section
(Spain).
Supply of sleepers to the Madrid-Seville high-speed line,
(Spain).
Supply of monobloc concrete sleepers for works and main-
tenance needs on the general interest railway network. Lot
1: Central operational territorial area and Lot 6: Southern
operational territorial area (Spain).
Supply and transport of sleepers for the comprehensive
renovation of infrastructure and track. Section: Calañas –
Peguerillas. Zafra – Huelva Line (Spain).
Riyadh Metro, Lines 4, 5 and 6 (Saudi Arabia).
Awarded
In progress
Complete
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Activity in the Infrastructure Area | Page 10 de 11
_ 215
CORPORATE IMAGE
• Implementation of a new corporate image for Renault Europe
in Spain, Portugal and Italy.
• Implementation of the corporate image in the Dacia dealer
network in Spain, Portugal and Italy.
• Supply of the new Nissan logo for Europe.
• Implementation of the image restyling project for Nissan Eu-
rope in dealerships in Spain, Portugal and Italy.
• Supply of image elements for BP service stations across Eu-
rope.
• Participation in the development of corporate image proto-
types for interior and exterior elements of the new KIA image.
• Supply and installation of the new KIA logo at the brand’s
head office in Alcobendas (Madrid, Spain).
• Supply and installation of the Yamaha image for dealers in
Europe.
CONCESSIONS
In 2021, measures geared towards reducing mobility have been
partially maintained, with an impact on concessions related to:
• Urban public transport, such as the Murcia Tram and the
Zaragoza Tram, in Spain, where the number of passengers
has partially recovered, although passenger figures are
around 70% compared to 2019, prior to the pandemic.
Lima Metro Line 2 (Peru)
• Road transport, including Ibiza-San Antonio motorway and
Conquense motorway concessions (Spain), which have seen
volumes of traffic increase by between 20 and 33% but con-
tinue to be lower than the traffic recorded in 2019, with falls of
between 10 and 14%.
• Office space rental, as in the case of the WTCB, in which
the buildings and facilities are being adapted to ensure social
distancing and implement contactless technologies.
• Construction concessions, such as the Lima metro (Peru)
or Haren prison (Belgium), where, given the number of work-
ers involved in construction, very significant measures have
been taken to avoid infections as much as possible.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Activity in the Infrastructure Area | Page 11 de 11
_ 216
Roads
Metro and Tramways
• Conquense motorway, Spain (100% FCC): a 136-kilometre
shadow toll concession with a duration of 19 years, ending
in December 2026. It is part of the first generation motorway
plan promoted by the Ministry of Public Works in 2007.
• Murcia tramway, Spain (50% FCC): contract awarded in
2009 for the construction and operation until 2049 of line 1 of
the Murcia tramway. It has a fleet of 11 trams, 28 stops and
a total length of 18 kilometres.
• Ibiza - San Antonio motorway, Spain (50% FCC): the con-
tract lasts for 25 years and ends in August 2032. The length
of the concession is 14 kilometres with a 600-metre tunnel.
The payment mechanism is a shadow toll.
• Underwater tunnel in Coatzacoalcos, Mexico (85% FCC):
the concession lasts for 45 years until 2062. 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, maintenance
and operation, on a payment for availability basis. The bridge
opened in October 2017 and serves some 80,000 vehicles
per day.
• A465 dual carriageway, Heads of the Valleys consortium,
in Wales, United Kingdom (42.5% FCC): contract for the
construction, financing, maintenance and operation of the ex-
pansion of the 17.3-km stretch of the A-465 dual carriageway
between Dowlais Top and Hirwaun in Wales, United Kingdom.
Currently under construction, the contract runs until 2055.
• Zaragoza tramway, Spain (16.60% FCC): line 1 of the
Zaragoza tramway consists of 12.8 kilometres, 21 trams and
25 stops. The tramways have a charging and energy accu-
mulation system to travel the 2-kilometre section that runs
through the historic centre. The contract was awarded in
2009 and lasts for 35 years.
• 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 until 2049 on a payment for
availability basis.
Social
• Health centres in Mallorca, Balearic Islands, Spain (82.5%
FCC): reverted to the Health Administration in April 2021 with
complete satisfaction.
Haren prison (Belgium).
• World Trade Centre Barcelona, S.A., Spain (24% FCC): in
December 2021, occupancy was 93.3% in premises and of-
fices.
Ports
• Haren Prison, Belgium (15% FCC): this contract covers the
design, construction and maintenance for 25 years on a pay-
ment for availability basis of a new prison complex in Haren,
near Brussels.
• Torredembarra Port, Spain (17.8% FCC): concession for a
marina in Torredembarra, in Catalonia.
FCC has a minority stake in two tramways in Barcelona (Tranvía
Metropolità del Besòs and Tranvía Metropolità).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Highligts 2021
_ 217
Highlights Infrastructure 2021
January
March
May
July
September
November
FCC Construction awards the
European PPP Deal of the Year
award for the A465 project in
Wales, United Kingdom.
The Minister for Infrastructure and
Water Management of the
Netherlands visits the A9
Badhoevedorp-Holendrecht project.
FCC Construction celebrates the
30th anniversary of the conclusion
of the first High Speed station in
Spain.
All areas of the FCC Group
receive the "COVID-19 Stars"
awards from FESBAL for their
involvement and commitment
during the health crisis.
FCC Construction achieves its
objective of verifying 100% of its
activity under the ISO 14064
Standard for Greenhouse Gas
emissions.
Bradfield Metro Consortium shortlisted
for the Sydney Metro - Western Sydney
Airport expansion project in Australia.
February
April
June
August
October
December
FCC Construction completes
the contract to modernise the
take-off and landing runway at
Bacau airport in Romania.
FCC Construction completes the
"Airbus Futura Campus" in Madrid.
FCC Construction completes the design
and construction contract for two
buildings of Dublin's Institute of
Technology (DIT) higher education
centre on the Grangegorman campus
in Ireland.
FCC Construction completes the
excavation work for the tunnel that will
join the streets Bailén and Ferraz,
included in the reform of Plaza de
España in Madrid, Spain.
FCC Construction chosen
by the Chamber of Commerce
of Belgium and Luxembourg
as "2021 Company of the Year".
FCC Construction renews its
registration in the Carbon
Footprint, offset and carbon
dioxide absorption projects registry
for the ninth time.
FCC Construction publishes its
sustainability report "Environmental
Communications 2021".
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Sustainability and excellence | Page 1 of 3
_ 218
Sustainability and excellence
Sustainability
Aligned with the SDGs
The United Nations 2030 Agenda is a clear and shared path to
eradicate poverty and promote sustainable and equal develop-
ment between 2016-2030. FCC Construction has integrat-
ed the Sustainable Development Goals into its activity and
into its value creation model.
The material aspects of the organisation and the SDGs have
been linked. Likewise, the 2021-2024 Management Objectives
for the Management and Sustainability System are associated
with the SDGs.
We would like to highlight the CEO of FCC Construction’s com-
mitment to the Sustainable Development Goals, which we un-
derstand to be a new, united 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 aware-
ness campaigns.
Sustainable construction.
FCC Construction 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-
struction 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.
On the other hand, FCC Construction has pioneered SAMCEW
its own methodology for evaluating the sustainability of its civ-
il engineering projects – thereby contributing to the adopting
measures that increase the sustainability of its works.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Sustainability and excellence | Page 2 of 3
_ 219
Environmental management
FCC Construction has an Environmental Management System,
certified according to ISO 14001, which covers 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 Construction 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 has the end goal of pre-
venting or minimising the environmental impacts of the projects
and enhancing the benefits of certain actions carried out during
their execution.
Commitment to climate
change
Circular economy
At FCC Construction, 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 Construction 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 En-
vironment and Economy. In 2019, through its subsidiary FCC
Industrial, FCC Construction obtained the “Zero Waste” waste
management traceability system certificate, granted by AE-
NOR, and became the first construction company to receive
this certificate that guarantees the recovery of waste and avoids
its final disposal in landfill. The project where this initiative was
applied recovered 99% of the waste generated in the work. It is
currently in the certification process for its corporate buildings.
We are aware of the importance of integrating s 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 Construction has held
the AENOR “Environment CO2 verified” carbon footprint cer-
tificate.
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. The update to this strate-
gy is currently under development to incorporate the measures
aimed at achieving the goal of zero emissions in 2050 approved
by the Sustainability Committee in 2021.
One of FCC Construction’s Management Objectives is to ex-
tend the verification of the greenhouse gas (GHG) emissions in-
ventory to international level, so that 100% of the activity would
be verified under Standard ISO 14064-1:2012 in 2020. In 2021,
AENOR verified the GHG emissions produced in all countries
where FCC Construction was active during 2020.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Sustainability and excellence | Page 3 of 3
_ 220
Excellence
Service excellence
The participation of FCC Construction in any infrastructure pro-
ject involves offering a company with over 120 years’ experi-
ence in the sector, with great technical ability, and a firm com-
mitment: to efficiently overcoming challenges. This all comes
with absolute respect for the environment, while promoting
development and innovation through the use of the best con-
struction techniques.
In its work, FCC Construction 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.
In line with its objective of continuous improvement, to get rec-
ognition by stakeholders and give greater confidence to its cli-
ents, FCC Construction has its system certificated for almost
100% of its business.
Customer satisfaction
FCC Construction’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.
Clients assess FCC Construction’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.
These excellent results enable us to state that the stringency
and quality of FCC Construction are factors that set us apart
from the competition.
What our customers say:
“Having a work team with extensive experience guarantees op-
timal development of the entire construction process. Undoubt-
edly, an experience to repeat.”
“In this consortium, the consortium of which FCC is part, has
demonstrated that through good project management and the
technical quality and effort of the construction company’s staff,
a project can be executed by improving the deadline forecasts,
without any impairment of quality and maintaining the best con-
ditions for the public service throughout the work (which is the
priority of this Administration).”
“I highlight the professionalism of each person who is part of
FCC’s team. Specifically, I highlight the project management,
the quality of execution, the speed in detecting problems, the
ability to adapt to all changes, the solvency in the development
of constructive solutions according to the criteria of this D.O.,
the coordination with all the agents and the tireless search for
excellence, balancing not only compliance with the scope but
also achieving the customer’s cost and deadline objectives.”
Awards in 2021
Follow this link to see the awards received in 2021.
Management Pioneers
The Management and Sustainability System at FCC Con-
struction is a dynamic system that constantly adapts to the
new challenges and processes required by the market. FCC
Construction 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.
To demonstrate compliance to third parties and greater trans-
parency in its management, the company has its Management
and Sustainability System certified by an accredited external
agency.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Business lines | Infrastructure | Innovation and technology | Page 1 of 2
_ 221
Innovation and technology
FCC Construction 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.
Within its activity, FCC Construction and its invested companies
develop projects in conjunction with other companies in the in-
dustry, often with technology-driven SMEs, which makes it pos-
sible to perform open innovation projects with a participation in
the value chain and, occasionally, on a horizontal cooperation
basis. Some of the projects are also carried out in consortia with
Public Authorities, such has been the case with the European
LIFE “Impacto Cero” project, “Development and demonstration
of an anti-bird strike tubular screen for High Speed Rail lines”,
coordinated by 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.
Nationally, during 2021, work has been done mainly on the following projects:
+
RREEFFOORRMM22
RREESSAALLttOO
OONNLLYYBBIIMM
GGAAUUDDÍÍ
Robótica autónoma para inspección
y evaluación de edificios existentes
con integración BIM
Nº de expediente: IDI-20160843
PROGRAMA ESTRATÉGICO CIEN 2016
Reciclaje de plástico para la
reformulación de hormigón
Elementos viarios sostenibles para la
reducción de velocidad
Nº de expediente: Q0310/2017
Nº de expediente: IDI-20180857
Desarrollo de un módulo para el
diseño y ejecución de obras no
lineales bajo metodología BIM
Nº de expediente: IDE/2019/000381
Nueva plataforma de gestión del
conocimiento basada en algoritmos
de inteligencia artificial y técnicas de
content curation
Nº de expediente: IDI-20200218
AACCUUSSCCOOIINN
CCYYBBEERRSSEECC
Sistema de emisión acústica para la
evaluación de corrosión en
infraestructuras de hormigón
armado
Nº de expediente: IDI-20191315
Research in Emerging technologies
to achieve Cyber Secure and Resilient
Infrastructures
Nº de expediente: CIEN-20200003
Demostrador de Sistema de Realidad
Mixta y Aumentada Multipropósito.
Aplicación a Simulador de RPAS.
Nº de expediente: IDI-20210498
SSAAIIMM
Sistema Automatizado de
Información Marítima
Nº de expediente: IDI - 20211190
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Infrastructure | Innovation and technology | Page 2 of 2
_ 222
FCC Construction, 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.
In 2021, the protection was performed in the following pro-
cesses:
PROCEDIMIENTO DE GUIADO LÁSER PARA CONSTRUCCIÓN
PROCEDIMIENTO DE GESTIÓN INTEGRAL DE UNA CUENCA
HIDROGRÁFICA
CYRENE
PATENTE Nacional
PATENTE Nacional
La presente invención es aplicable en el Sector de Construcción, concretamente, en el
sector de la construcción en Túneles y de Obra Marina, empleando láseres para
proyectar puntos del contorno de una obra.
Permite un guiado a través de un modelo 3D tanto para obra marítima como para
túneles. Se realiza un replanteamiento en secciones situadas en determinados puntos
kilométricos de la obra, proyectando mediante varios láseres y, posteriormente se
toman una serie de medidas que son trasladadas a una base de datos, y se calculan
coordenadas de los puntos reales de la construcción, que son introducidas en una
herramienta de tipo BIM que genera un archivo 3D de la obra.
Titular: FCC Construcción
La presente invención se puede incluir en el campo técnico de la gestión de recursos
naturales, en particular, de los recursos hídricos. El objeto de la invención se refiere a un
procedimiento de gestión integral de una cuenca hidrográfica, que hace uso de 5
módulos: Módulo hidrológico, para simular comportamiento de masas de agua
superficiales y realizar predicción de avenidas; módulo hidrogeológico, para simular
comportamiento de masas de agua subterránea; módulo de gestión de recursos
hídricos para pronosticar el estado de los embalses a futuro, ante determinados
escenarios de aportaciones y desagües; módulo hidromorfológico, para caracterizar
regímenes de 10 caudales ecológicos en ecosistemas fluviales; módulo de calidad del
agua, para modelizar comportamiento de fenómenos de transporte de solutos
contaminantes; todo ello integrado a través de una única plataforma online con base de
datos e interfaz gráfica. El procedimiento constituye un sistema de ayuda a la toma de
decisiones en gestión de una cuenca hidrográfica.
Titulares: MATINSA (85%) y CETEC (15%)
Nuevo sistema para la gestión integral de túneles de carretera que contenga
el control de todas las instalaciones e implemente estrategias optimizadas de
gestión global.
Titular: MATINSA y TELICE
+
MARCA EUIPO
Registro Copyright
Oficina de Propiedad
Intelectual de Estados
Unidos
(USCO)
Internationally, FCC Construction has worked on the comple-
tion of the following project:
+
Pinhão Tua railway line (Portugal).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement
_ 223
The Cementos Portland Valderrivas
Group is a multinational Spanish
firm that is a leader in the
production of cement, concrete,
aggregates and mortar that uses
the most advanced technologies
in all its production processes.
Cement
Products _ 225
Industry analysis _ 226
Group activities by country and business line _ 227
Highlights Cement 2021 _ 230
Environment and research and development
activities _ 231
Service excellence _ 233
Performance in 2021 _ 234
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement
_ 224
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 multina-
tional Spanish firm that is a leader in the production of cement,
concrete, aggregates and mortar. Founded in 1903, the Group
has been around for more than 118 years and has evolved in
response to the changing needs of society and markets. It em-
ploys the most advanced technologies in its production pro-
cesses to achieve cost efficiency and comply with environmen-
tal standards, seeking the commitment to sustainability in all its
undertakings.
In relation to manufacturing cement, it has seven strategically
located factories in Spain covering cover most of the peninsular
including the North, East, Centre and South and three of the
country’s large cities (Madrid, Barcelona and Seville). Outside of
Spain, 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. Finally, cement and clinker trading is
done from the Netherlands.
El Alto cement factory, Morata de Tajuña, Madrid (Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement | Products
_ 225
Products
Cement
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 furnaces.
When the clinker cools, it is mixed with a small amount of plaster
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
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
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.
Its use is varied: concrete, roads, breakwaters, raw materials for
industry (cements, filters, micronised, 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 selected.
White Cement.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement | Industry analysis
_ 226
Industry analysis
increases have been transferred on one hand as interruptions
in supply chains and on the other are the main source of infla-
tionary stresses that have been transferred onto practically all
products and services.
This led to the Bank of Spain revising Spain’s GDP growth for
2021 downwards to 4.5% last December. For 2022, it forecasts
growth of 5.4% with an unemployment rate of 14.2%, slightly
lower than expected for 2021. The Spanish economy will not
recover to pre-pandemic levels until the end of 2022.
According to estimates by the Association of Construction
Companies and Infrastructure Concessionaires (SEOPAN), of-
ficial tenders until November 2021 increased by 80.2% com-
pared to the same period in 2020. New construction building
permits grew by 22% and public procurement is estimated to
increase by 36% compared to 2020.
These increases transfer to consumption of cement, which
reached 14.9 million tonnes in 2021, 11% higher than in 2020
according to data provided by the sector’s association, Ofice-
men (Association of Spanish cement manufacturers). This vol-
ume is similar to that of 2019, the last year not affected by the
pandemic.
On the other hand, total exports (cement and clinker) reached
6.78 million tonnes (6.16 million in 2020). By 2022, the em-
ployers’ association estimates that consumption will close in
a range of between 3% and 5%, exceeding 15 million tonnes.
Tunisia
In Tunisia in 2021, the domestic market reached 5.9 million
tonnes, 2.5% higher than in 2020. The high level of domestic
political instability has kept consumption levels low. Despite the
sharp increase in exports during the year, these have been lim-
ited by the temporary closures of the border with Libya – the
main export destination – due to the COVID-19 pandemic. For
2022, growth of 1.6% has been forecast for the domestic mar-
ket to 6 million tonnes.
In this context, the Cementos Portland Valderrivas Group will
continue to implement its policies to contain expenditure and
optimise investment and adapt all organisational structures to
the reality of the various markets in which it operates, in order to
improve cash flow generation.
Grey clinker.
Spain
Instability in the world economy is the main characteristic left
behind by 2021. The health crisis caused in 2020 by COVID-19
continued throughout 2021, along with the economic conse-
quences caused by the successive waves of the virus. During
the year, there has been a significant rise in maritime freight
and especially in the gas, electricity and CO2 markets. These
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement | Group activities by country and business line | Page 1 of 3
_ 227
Group activities by country and business line
Group sales
The volume of cement and clinker sold in 2021 reached 6.2
million tonnes, 14% up on 2020.
In Spain, 4.6 million tonnes were sold, and 1.4 million were sold
in Tunisia.
The volume of cement
and clinker sold
in 2021 was
14% up on 2020
Cement (t M)
Concrete (m3 k)
Aggregate (t k)
Mortar (t k)
5.5
6.2
+0.7
(+14%)
275
284
1,440
278
288
+9
(+3%)
1,088
-352
(-24%)
+10
(+4%)
2020
2021
2020
2021
2020
2021
2020
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement | Group activities by country and business line | Page 2 of 3
_ 228
DISTRIBUTION OF ACTIVITY BY COUNTRY
9%
10%
62%
16%
61%
2020
2021
13%
Spain
Tunisia
United Kingdom
Other
14%
15%
In 2021, international
sales accounted for 39.4% of
turnover, a slight increase
over 2020 when it
was 37.8% of the total
DISTRIBUTION OF ACTIVITY BY BUSINESS
10%
9%
90%
91%
2020
2021
The product mix has remained
very stable compared
to the previous year.
The cement business accounts
for 90.6% of revenues
Cement
Cement, morter and aggregate
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement | Group activities by country and business line | Page 3 of 3
_ 229
Turnover
Turnover in 2021 increased 13% on 2020 to 433.8 million euros.
In Spain, billings increased 15.3% to 346.9 million euros, mainly
due to the good performance of national volumes and the in-
crease in exports.
Turnover in Tunisia increased 11.7% to reach 70.8 million euros.
In this case, the low demand in the local market has been offset
by a strong increase in exports and a favourable evolution of
prices.
Turnover in 2021
increased 13%
on 2020 to
433.8 million euros
Gross profit/(loss)
from operations
Cash flow
The Group’s EBITDA reached 76.1 million euros, 45% lower
than the previous year. The main impact of the fall has been
the sales operations of greenhouse gas rights. In 2020, sales of
58.9 million euros were made compared to 7.7 million in 2021.
Gross profit/(loss) from operations, without considering income
from CO2, came to 68.3 million euros compared to 80.9 million
in 2020, down by 16%. The positive impact of higher sales vol-
umes and better prices has been offset by the sharp increase in
electricity and fuel costs in the second half of the year.
In 2021, the net cash flow generated by operations was 63.97
million euros, and the flow from investments was -17.2 million
euros, mainly due to the investments made by the Group for
production and environmental improvements in Spain and Tu-
nisia.
During 2021, the syndicated debt of 115.5 million euros was
repaid in full. The repayment was made with cash generated
by the Group during the year – 40.5 million – and new bank
financing – 75 million.
At 31 December 2021, the net debt with third parties stood at
126.6 million euros.
Cantera de Vallcarca, Barcelona (Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement | Highligts 2021
_ 230
Highlights Cement 2021
January
March
June
August
November
December
GCPV has unleashed renewable
energy projects in all its
factories with the aim of
installing solar and/or wind
power generation plants, as well
as increasing the use of
vegetable biomass when
producing clinker.
GCPV encourages participation in
sports through donations to local
entities close to its factories.
The Group, and its social
representatives and key unions
began negotiations for the
Collective Agreements and the
Second Equality Plan that will
regulate labour relations in the
coming years.
GCPV moved its corporate head
office to Torre Realia (Madrid, Spain),
a building owned by the FCC Group.
New corporate website
www.valderrivas.es launched
GCPV holds the Autonomous
Committee to Follow-up on the
Agreement on the Sustainable
Use of Resources (CASA) in
several factories.
GCPV employees take part in
the race
of the companies.
GCPV renews its commitment
to the Adecco Foundation's
Family Plan in its fight for
the employment or
re-employment of people with
disabilities.
February
Expert handling systems have
been implemented in our facilities
to achieve greater efficiency in the
processes involved when
producing the products.
April
July
October
AENOR grants the "Certificate
of Compliance with the Production
Control of Concrete Manufactured
in the Plant" to our plants in Spain.
GCPV donates baby food and
nappies to the social services of the
City Council of Alcalá de Guadaíra
(Seville, Spain) and joins the
"Ultreya" solidarity movement to
help families and local business in
the municipality.
GCPV opens the doors of its property
"El Porcal", in Madrid (Spain), to various
groups to offer environmental education
sessions.
GCPV presents the Energy Transition
Climate Neutrality Plan for
the Mataporquera factory to the
Government of Cantabria (Spain).
GCPV adheres to "Companies for
the Climate" and its plan was named
among the 101 best business initiatives
for the climate.
GCPV trains employees in prevention
matters through workshops and
encourages their involvement
in ideas contests.
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement | Environment and research and development activities | Page 1 of 2
_ 231
Environment and research
and development activities
ture. At the end of 2019 the EU presented the European Green
Deal, , which proposes a new strategy for achieving a prosper-
ous 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, establishing a greenhouse gas
emissions reduction target of 50% by 2030 compared to 1990
levels.
To comply with these European policies, Spain published the In-
tegrated National Energy and Climate Plan 2021-2030 in March
2021, which proposes specific objectives to reduce green-
house 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 climate neutrality by 2050.
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.
• Reduction of 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.
The Cementos Portland Valderrivas Group, as a major part of
the sector, develops specific actions to reduction greenhouse
gases based on the sectoral strategic lines.
In 2021, the Group’s factories in Spain used over 212,500
tonnes of alternative fuels with biomass content, an increase of
13% over the previous year.
Biomass use facility in Alcalá de Guadaira (Seville).
Climate change
action plan
The 2015 Paris Agreement represented a historic milestone in
the global fight against climate change by committing the sig-
natory countries to contain the increase in the earth’s tempera-
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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement | Environment and research and development activities | Page 2 of 2
_ 232
Research and
development
In 2021, there was an extension of the project due to delays
resulting from the COVID-19 pandemic. Therefore, in 2021, the
Cementos Portland Valderrivas Group continued to participate
in the European R&D project in which it is a key partner, known
as “BioRECO2Ver-Horizonte 2020”.
This project’s aim 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 man-
ner 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.
In 2021, several tests were carried out by the technological
partners LTU and Enobraq with the emission gases provided by
Cementos Portland Valderrivas to the consortium of research-
ers. These tests generated conclusive results, so it has not
been necessary to organise new emission gas captures in situ.
The conclusions of the project will be presented in the first quar-
ter of 2022.
Robotic quality control. Cement Factory, Mataporquera, Cantabria (Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement | Service excellence
_ 233
Service excellence
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 wherever it operates. All efforts are fo-
cused on providing quality services guaranteeing close atten-
tion and we tackle our day-to-day commercial activity based on
the principle of customer-oriented trust.
Some of our services are:
1. Commercial consulting service to focus on each project
with the best products.
2. Commercial technical advice to focus on each project
with the best products.
3. Delivery of product at destination.
4. Automatic loading in production centres.
5. 24 hour loading service.
6. Urgent incident resolution.
7. Digital Account Administration Management, through
the Digital Management Channel at www.valderrivas.es.
8. Safety assessment service.
9. International sales with customer support and advice.
Aware that service is everything in this business, we have imple-
mented various communications channels with our stakehold-
ers, facilitating access to all necessary information and docu-
mentation, and seeking to create long-lasting relationships with
high satisfaction levels.
The success of the Cementos Portland Valderrivas Group would
not have been possible without its customers. With them, we
have achieved our biggest milestones, developing products
that are of a progressively higher quality, ensuring the growth
and development of advanced societies.
Alcántara bridge (Cáceres).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement | Performance in 2021 | Page 1 of 2
_ 234
Performance in 2021
Control room. Alcalá de Guadaíra cement factory, Seville
(Spain).
Human Resources
The Group has continued to adapt to the different emergency
scenarios resulting from COVID-19 in all work centres through-
out 2021, promoting the use of healthy habits and safe hygiene,
promoting the use of masks, hand-cleaning gels and clean sur-
faces, carrying out frequent temperature controls and Covid de-
tection tests, as well as adapting to more flexible working hours,
which make the health and safety of people compatible with the
company’s productive activity, and to continue supplying the
different markets with cement and its derivatives.
At 31 December 2021, the Group’s total workforce is 1,041
people spread across three continents, an increase of almost
1% on 2020. This increase in staff is mainly due to covering
partial retirements derived from the Relief Contract.
The Group, its social representatives and its key unions have
begun negotiations for the Collective Agreements that will reg-
ulate labour relations in the coming years. Agreements are ex-
pected to be finalised throughout 2022.
The total workforce
of the Group in 2021 is
made up of 1,041 people
spread over three continents
Additionally, according to the expected schedule, an agree-
ment will be reached with the unions and workers’ representa-
tives on the II Equality Plan in the first quarter of 2022. With this
agreement, the company will complete its adaptation in terms
of Equality, in application of Royal Decree 901/2020 of 13 Oc-
tober regulating equality plans and their registration.
Lastly, the Cementos Portland Valderrivas Group moved its cor-
porate head office to Torre Realia, a building belonging to the
FCC Group, providing better infrastructure, means and com-
munications to the employees who regularly provide their ser-
vices there.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Cement | Performance in 2021 | Page 2 of 2
_ 235
Cement engineering.
Workshop to improve employee leadership.
Equality
Health and Safety
Cementos Portland Valderrivas plans to sign its II Equality Plan in
April 2022, adapting, firstly, to the new regulations, specifically
Royal Decree 901/2020 of 13 October regulating equality plans
and their registration. Second, to make the principle of trans-
parent remuneration contained in RD 902/2020 effective. This
law establishes a series of specific measures to promote equal
treatment and non-discrimination between men and women,
such as: the preparation of the remuneration register before a
salary audit, as well as the job evaluation system. Regarding the
registry, an agreement was signed on 15 September 2021 on
the minimum content to be included in it, with the two majority
unions present in the Group.
The CPV Group’s Occupational Health and Safety Policy estab-
lishes the commitment of ensuring its employees enjoy healthy
and safe working conditions. To development this Policy, ac-
tion plans are prepared with objectives based on continuous
improvement. The Health and Safety Management System –
certified in accordance with ISO 45001 and implemented in all
the Group’s factories – makes it possible to ensure that safety is
effectively integrated into all operations.
In terms of accident rate data, the accident frequency rate re-
sulting in leave in 2022 was 5.22, a 0.57% improvement on
the previous year and below the average for the past five years
(5.65).
A total of 51% of training
hours related to
Occupational Health and
Safety actions
Training
In terms of training, in 2020, 7,454 hours of training were im-
parted at the Group, of which 51% related to occupational
health and safety actions.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate
_ 236
The Real Estate Area of the
FCC Group, whose parent
company is FCC Real Estate,
is made up of Jezzine Uno and
the Realia Group, whose parent
company is a listed company
with more than 30 years of
experience, with the corporate
purpose of developing,
managing and operating
all types of real estate.
Real Estate
Industry analysis _ 238
Activity in the Real Estate Area _ 240
Highlights Real Estate 2021 _ 248
Service excellence _ 249
Innovation and technology _ 251
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate
_ 237
Development of spaces with an integral vision
The Real Estate Area of the FCC Group, whose parent com-
pany is FCC Real Estate, is made up of Jezzine Uno and the
Realia Group, whose parent company is a listed company with
more than 30 years of experience, with the corporate purpose
of developing, managing and operating all types of real estate.
The philosophy that presides over the Real Estate activity is the
generation of value, both for customers, through the offer of
products and services adapted to new habits and trends, and
for shareholders, through the maximisation of profitability.
The professionals who make up the Real Estate team have
extensive experience in the sector and bring solid knowledge
in all phases of the production process and service provision,
combining two types of profiles: the experience of the seniors
and the digital knowledge and skills of the new generations. In
this way, it is possible to carry out all productive activities with
an integral, dynamic and modern vision that creates a “brand”
in all of them.
The commitment to innovation, sustainability, social responsi-
bility and the optimisation of the user experience guides the
design of the spaces planned, built and managed, in the search
for a world that is increasingly respectful of society and the en-
vironment.
FCC’s Real Estate Area carries out its activity in three main lines
of business, either directly or through its investee companies:
EQUITY BUSINESS
DEVELOPMENT
BUSINESS
LAND MANAGEMENT
Development and sale of
real estate products (mainly
housing).
Urban land management
at different stages of
urban development.
• Leasing and management of
office buildings, commercial
premises and shopping
centres.
• Development and operation
of projects aimed at housing
rental.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Industry analysis | Page 1 of 2
_ 238
Industry analysis
The aforementioned forecast of 5% GDP growth in 2022 will
be supported by three main drivers: the recovery of the tour-
ism sector, the impact of the Next Generation European Funds
(NGEU) and the accumulated savings from 2020 and 2021 (es-
timated at €45 billion).
Although not yet reaching pre-pandemic levels, 2021 has been
a year of high positive impact and consolidation in the Span-
ish real estate sector with a solid recovery in the sector as un-
certainty over Covid-19 fades and investor appetite is restored
(+34% vs 2020 in investment volume).
In 2021, home sales (new and used) reached their highest fig-
ure in the last 14 years. According to the Association of Regis-
trars, 564,569 transactions were registered; 34.5% more than
in 2020.
Investment in Spanish residential real estate by foreigners
is also recovering from the pandemic. After a first quarter in
which it fell to 9.7%, it accumulated three consecutive quarters
of improvement and between October and December reached
12.6%; an increase of 1.84 points over the previous quarter,
reaching 17,800 purchases.
The BtR market has shown continuous growth. In 2021, it grew
by 30% compared to 2020, and 10% growth is expected in
2022.
(Sources consulted for the preparation of this section: CBRE
Real Estate Market Outlook Spain 2022 - CG Capital Europe
Year Review 2021- Colegio de Registradores - Asociación Es-
pañola de Centros comerciales (AECC)).
After record year-on-year GDP growth in the first half of 2021
(+14.8%), the Spanish economy slowed down in the second
half, mainly due to the late waves of Covid-19 and the energy
crisis in Europe. As a result, GDP growth for the full year stood
at 5%. With regard to 2022, according to the latest news, the
government will revise its growth forecast downwards to 5%, in
line with national bodies such as the Bank of Spain and inter-
national bodies such as the ECB, thus taking into account the
impact of rising inflation and the effects of the Russia-Ukraine
war and other factors destabilising the global socio-economic
balance.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Industry analysis | Page 2 of 2
_ 239
Prime offices are perceived
by investors as a stable
investment, thanks to
the security of their
cash flows
Rental housing stood at around 25% of total housing stock in
2021, and this segment is estimated to grow to 27% by 2025
(+550 units) driven by socio-economic reasons.
Investment volume in the Spanish office sector in 2021 reached
€2.8 billion (up 40% compared to 2020) due to the dampening
of the impact of the Covid-19 health crisis, which has boosted
transactions that suffered a slowdown in 2020. 59% of the total
investment volume in 2021 corresponds to Barcelona, due to
the strong commitment to 22@.
Prime CBD rents have grown slightly in Madrid and Barcelo-
na (+2% and +3%, respectively), compared to 2020; reaching
rents of 36 and €27.5/m2/month. Prime net yields fell slightly to
3.75% in Madrid and 3.5% in Barcelona (historic low).
2021 closes with total contracted office space slightly above
the forecasts made at the beginning of the year. A total of
414,000 m² have been contracted in Madrid and 300,000 m²
in Barcelona, an increase of 22% and 89%, respectively, com-
pared to 2020. The increase is expected to continue in 2022,
with projected hiring growth of 30-35% in Madrid and 15-20%
in Barcelona, thanks to an increase in employment in sectors
demanding office space.
Prime offices are perceived by investors as a stable investment,
thanks to the security of their cash flows backed by long-term
prime leases, and have accounted for 65% and 53% of total
office investments in Madrid and Barcelona, respectively. Core
and Core Plus assets withstood the impact of Covid-19, while
returns on value-added and opportunistic assets increased
slightly.
In 2021, the shopping centre sector has experienced recov-
ery after the 2020 slump in footfall and sales caused by health
restrictions.
As restrictions have loosened, consumers have regained confi-
dence by returning to the social and leisure activities that are a
key part of what shopping centres and retail parks offer.
During 2021, sales registered growth that has led the sector to
contribute 1% of the country’s GDP and 10.8% of the services
sector, according to data published by the Spanish Association
of Shopping Centres [Asociación Española de Centros Comer-
ciales - AECC].
On a quarterly basis, mall revenues and footfall began to re-
cover from the second quarter (when restrictions were eased);
a period in which sales soared 76.4% compared to the same
months in 2020.
In 2021, footfall to shopping centres and retail parks grew by
19.6%, with 1.52 billion visits, but still fell short of the figures
recorded in 2019.
With respect to transactional investment, it should be noted
that during 2021 the sector was involved in 22 transactions,
exceeding €980 million. The figure for investment in refurbish-
ments is also very relevant, as at least 17 assets were renovated
in 2021, representing 898,000 m2 of GLA (Gross Lettable Area)
in which approximately €240 million were invested. According
to the AECC, the investor profile is quite international with very
diversified portfolios.
According to the Spanish Association of Shopping Centres, the
signs of robustness in the sector also extend to new projects.
Over the next three years, 30 new projects are expected to be
started up at different stages, in contrast to the pace of the last
few years, when only six new projects were started up per year.
These centres and retail parks, planned for the coming years,
will be located in practically all communities and are expected
to exceed 787,068 m2 of new GLA, according to data provided
by the developers themselves. Specifically, there will be eight
new shopping centres and 22 parks, which shows the growing
interest in this second commercial segment.
Spain currently has 570 shopping centres, which account for
16.5 million square metres of gross leasable area and include
more than 33,400 establishments. The sector employs nearly
794,000 workers in the country and receives about 1,520 visits
per year. The weight of shopping centres in Spain’s Gross Do-
mestic Product (GDP) is 1%; contributing 11,454 million euros.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Activity in the Real Estate Area | Page 1 of 8
_ 240
Activity in the
Real Estate Area
The Real Estate Area operates in three main lines of business,
either directly or through its investee companies:
BUSINESS
EQUITY
DEVELOPMENT
BUSINESS
LAND
MANAGEMENT
Torre Realia BCN, Barcelona (Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Activity in the Real Estate Area | Page 2 of 8
_ 241
Equity Business
Leasing and management of office buildings,
commercial premises and shopping centres
Operation of projects aimed at housing
rentalsas
The portfolio of leased offices is concentrated into 26 buildings
that stand out due to their strategic location in Madrid, Barcelo-
na and Seville and, in some cases, due to their iconic or historic
character. In addition, the portfolio of shopping centres consists
of six commercial and leisure assets, located in Madrid city, Le-
ganés (Madrid), Guadalajara (Castilla-La Mancha), Murcia and
Santiago de Compostela (La Coruña).
In addition, in 2021, the company Jezzine Uno was integrated
into the Real Estate Area of the FCC Group, which has led to
the contribution of a significant volume of rental assets focused
on the operation of 405 premises throughout Spain, although
with a greater concentration in Catalonia. This is a long-term
lease, until December 2037, to a single lessee (Caixabank S.A.).
Taking into account the unstoppable trend of residential rental,
given the active demand in this segment and the still scarce
professional supply in Spain, a few years ago the subsidiary
Valaise was strengthened in order to invest in this business seg-
ment. BtR’s activity is currently concentrated into one asset,
already in the operating phase, and two assets in the construc-
tion phase, located in the municipality of Tres Cantos (Madrid).
Between the three of them, they total 280 public housing units.
The asset already in operation is “Jardín de Tres Cantos” Resi-
dential Area, comprising 85 homes, 85 storage rooms and 132
garages. Its lease commenced in July 2020 and was 100%
leased at the end of financial year 2021. This project has in-
volved an investment of 15.6 million euros.
The two projects under construction, Nao (43 homes) and
Provenza (152 homes), will be completed and in operation in
2023, after a total investment of 42.9 million euros.
Feria Plaza shopping centre, Guadalajara (Spain).
Jardín de Tres Cantos (85 homes), Madrid (Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Activity in the Real Estate Area | Page 3 of 8
_ 242
Development Business
Development and sale of real estate products (mainly housing)
In 2021, the marketing of the following developments began:
Buenavista Tres Cantos Phase IV
Bôrea Portablanca
El Bercial Residential Area
FCC Real Estate is developing 30 4-bedroom semi-detached
single-family homes in the town of Tres Cantos, Madrid. This
complex stands out due to its white prefabricated concrete fa-
cades and large terraces, as well as for its location in front of
the Arroyo de Bodonal park. The common areas have green
areas and a swimming pool that encourage residents to enjoy
the outdoors.
FCC Real Estate is developing 144 1-, 2-, 3- and 4-bedroom
homes in Arroyo del Fresno (Mirasierra, Madrid), with large ter-
races, garage and storage room. The development has large
common areas with infinity pool, gym, games room and paddle
tennis court.
FCC Real Estate is developing 40 3-bedroom apartments with
large terraces in the Madrid town of Getafe. It is a housing
complex located in an excellent consolidated area, next to El
Corte Inglés, surrounded by green areas and parks.
Buenavista Tres Cantos Phase IV, in Tres Cantos, Madrid (Spain).
Bôrea Portablanca, in Arroyo del Fresno, Madrid (Spain).
El Bercial Residential Area, in Getafe, Madrid (Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Activity in the Real Estate Area | Page 4 of 8
_ 243
Essència de Sabadell Phase II
Glòries BCN
Ensanche Park Phase II
Realia is developing 55 1-, 2- and 3-bedroom homes in the
centre of Sabadell, in Barcelona. The development stands out
due to its terraces, ventilated façade, landscaped common ar-
eas and swimming pool. Its central location guarantees privi-
leged communications, with direct access to the Gran Vía and
the highways that cross the Vallés region.
Realia is developing 47 2-, 3- and 4-bedroom homes in Plaza
de Glorias, in Barcelona. The building stands out due to the
design of its façade, its spacious terraces, and its communal
rooftop swimming pool with saline purification and spectacular
views of the Agbar Tower, the Barcelona Design Museum, the
new Glorias Park and the Sagrada Familia. It also has land-
scaped areas and a children’s playground.
Realia is developing 80 2-, 3- and 4-bedroom homes in Alcalá
de Henares (Madrid). All of them are pass-through, have 2 bath-
rooms and spacious terraces. The complex has access control,
extensive landscaped areas, a swimming pool for adults and
children and two paddle tennis courts.
Essència de Sabadell Phase II, in Sabadell, Barcelona (Spain).
Glòries BCN, Barcelona (Spain).
Parque del Ensanche Phase II, in Alcalá de Henares, Madrid (Spain).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Activity in the Real Estate Area | Page 5 of 8
_ 244
Land management
More than 2.3 million m2 of buildable land (15,000 homes) in
different stages of urban development.
To ensure the future of real estate activity, it is important to
maintain a balanced land portfolio, both geographically and ur-
banistically. Through internal urban management, the impact of
the cost of land can be reduced while at the same time gener-
ating value due to its greater maturity.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Activity in the Real Estate Area | Page 6 of 8
_ 245
Key figures forecast for 2022
TURNOVER
+250
millions of euros
EBITDA
+110
millions of euros
VALUE OF
EQUITY ASSETS
+of 2,000
millones de euros
DEVELOPMENT & LAND
ASSET VALUE
+of 750
millions of euros
(*) Excluding staff assigned to the Janitor’s Office of rented buildings
GRADO DE OCUPACIÓN ACTIVOS
HUMAN TEAM
90%
74
people as at Dec. 2021 (*)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Activity in the Real Estate Area | Page 7 of 8
_ 246
EXPERIENCE
SCALE
IMPLANTATION
More than 30 years of
experience in the real
estate sector.
More than 500,000 m2
surface area for rent.
National presence in
15 Spanish autonomous
communities.
November 2021
280 BtR homes:
• Integration/Consolidation of
three large estates:
– FCC Real Estate
– Realia Group
– Jezzine One
+
85 housing units in operation
195 homes under construction.
International presence in
Romania, Croatia and Panama.
More than 2.3 million m2 of buildable land
(15,000 homes) in different stages of
urban development.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Activity in the Real Estate Area | Page 8 of 8
_ 247
Relevant events in 2021
OCTOBER
NOVEMBER
DECEMBER
An agreement was reached whereby FCC Real Es-
tate acquired from Control Empresarial de Capitales
(CEC), 13.12% of the capital stock of Realia, for 83.9
million euros. This agreement gives it a controlling po-
sition over Realia and its group of companies, with a
50.1% stake.
FCC Real Estate increased capital and the company So-
inmob Inmobiliaria Española, S.A.U. made a monetary
contribution of 100% of the shares of the holding com-
pany Jezzine Uno, S.L.U. As a result of this transaction,
FCC maintains control of FCC Real Estate, with 80.03%
and the remaining 19.97% is in the hands of Soinmob
S.A.U. (a company belonging to the CEC group, FCC’s
main shareholder).
The Realia Group directly acquired a 37.11% stake in
Hermanos Revilla S.A. for €189.1 million. With this pur-
chase, the Realia Group’s stake in the aforementioned
company amounts to 87.76% of its share capital, and
entails 100% control of the company.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Highligts 2021
_ 248
Highlights Real Estate 2021
January
Beginning of the delivery of keys of the
Realia “Essència de Sabadell Phase I”
development. 73 homes in Sabadell
(Barcelona, Spain).
March
Start of marketing of the FCC
Real Estate “Bôrea Portablanca”
development. 144 homes in
Arroyo del Fresno in Mirasierra
(Madrid, Spain).
May
Start of marketing of the Realia
“Essència de Sabadell Phase II”
development. 55 homes in Sabadell
(Barcelona, Spain).
November
Start of land decontamination
works for the future FCC Real
Estate development “Portum
Badalona” in the marina of
Badalona (Barcelona, Spain).
July
Start of marketing of the Realia “Glòries Bcn”
development. 47 homes in Poblenou
(Barcelona, Spain).
Start of marketing of the Realia “Parque del
Ensanche Phase II” development. 80 homes
in Alcalá de Henares (Madrid, Spain).
Commencement of work on the Valaise
subsidiary development VPPL homes BtR
Plot 2.1. 152 homes in Tres Cantos (Madrid,
Spain).
Start of works on the Glòries Bcn
development. 47 homes (Barcelona, Spain).
Realia Patrimonio sells a 9,200 m2 building
plot located in Parc Central 22@ for €18.5
million.
September
Completion of the renovation of the
Acanto 22 Building Lobby with the
incorporation, among other elements,
of a vertical garden and a large digital
screen (Madrid, Spain).
Beginning of the delivery of keys
of the Realia “Valdebebas Único”
development. 40 homes in
Valdebebas (Madrid, Spain).
Beginning of the delivery of the keys
of the FCC Real Estate development
“Les Masies Residential Area”.
118 homes Sant Joan Despí
(Barcelona, Spain).
February
Start of marketing of the FCC Real
Estate development “Buenavista
Tres Cantos Phase IV”. 30 houses
in Tres Cantos
(Madrid, Spain).
April
Start of marketing of the FCC Real
Estate development “Residencial El
Bercial”. 40 homes in Getafe (Madrid,
Spain).
June
Start of work on the Valaise
subsidiary development VPPL
homes BtR Plot 1.4B.
43 homes in Tres Cantos
(Madrid, Spain).
August
Start of construction of the Realia
Parque del Ensanche Phase II
development in Alcalá de Henares
(Madrid, Spain).
October
Torre Realia BCN (Barcelona, Spain)
obtains BREEAM® Certification with
an excellent management rating and
a very good building rating.
December
Completion of the construction
project for a 3,015 m2
warehouse in the La Noria
Outlet Shopping Centre in
Murcia (Spain), within the
framework of the lease
agreement signed with
Mercadona.
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Service excellence | Page 1 of 2
_ 249
Service excellence
The Real Estate Area carries out its activity with the philoso-
phy of offering its customers high quality products and services,
adapted to new living habits and market trends.
Homebuyers
They are served through an omnichannel network that seeks to
guarantee a good shopping experience.
Face-to-face service is provided at the sales offices of each de-
velopment, the branch offices and the head office, by trained
and experienced professionals who advise customers through-
out the decision-making process, show the properties, explain
the economic and contractual conditions and facilitate the pro-
cess of handing over the homes, whether they are for rent or
for sale.
Customers can also find out about all the real estate on offer in
the area on its websites www.realia.es and www.fccrealestate.
es, where, through their technical data sheets, they can view
images and large-scale plans of the products, 360º virtual tours,
videos, 3D real-world implementations and request virtual ap-
pointments with sales representatives. Customers can request
information about each property by filling out a simple form and
also have a personal online advisor who responds within 24
hours to the questions asked.
The Real Estate Area is committed to eco-sustainability, which
is why the homes developed have an A or B energy rating. This
is described in detail in the technical data sheets available on
the website.
Social networks play an important role as a communication
channel, allowing the promotion and dissemination of valuable
content for customers on topics such as decoration trends,
sustainability, technical aspects and current events in the sec-
tor. Throughout 2021, the company’s presence on social net-
works attracted a remarkable number of followers.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Service excellence | Page 2 of 2
_ 250
Tenants
The Real Estate Area’s philosophy involves offering high quality
spaces, keeping them constantly updated with the latest tech-
nological innovations and sustainability. It also focuses on pro-
viding its tenants with high value-added services that facilitate
the development of their businesses and provide a friendly and
healthy experience for their occupants.
A rigorous building
operating cost
control policy
is applied
Shopping centre users
On the other hand, a rigorous building operating cost control
policy is applied, taking advantage of the data analytics of its
BMS (Building Management System) and the economy of scale
generated by having a portfolio of a relevant size. This cost
control is in the tenants’ best interest by containing the pass-
through costs that they must pay along with the rent. The Real
Estate Area develops building operations with multidisciplinary
professional teams (maintenance, legal, architecture, construc-
tion, commercial, urban planning and economic-financial). In
the case of shopping centres, management is carried out by
specialised consultants coordinated internally.
To ensure a pleasant shopping experience, all complexes have
been designed with functionality and accessibility in mind. Thus,
they combine leisure and commercial areas and have large
common areas and spaces designed to provide a comfortable
stay and fluid circulation.
As part of their commitment to sustainability and corporate
social responsibility, the shopping centres carry out many dy-
namic actions focused on promoting responsible recycling be-
haviours, healthy nutrition, support for local entrepreneurship,
preservation of native flora and fauna, etc.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Innovation and technology | Page 1 of 3
_ 251
Innovation and technology
In 2021, the Real Estate Area maintained its commitment to
caring for the environment, developing its developments in ac-
cordance with the principles of sustainable architecture and
implementing sustainability improvement strategies in its rental
buildings.
Following the basic principles of environmental protection, the
company applies the 3R rule (Reduce, Reuse and Recycle) and
maintains a preventive rather than a corrective approach to its
projects.
Environmental management is articulated in four lines of work:
1
Energy efficiency
The leased buildings underwent an energy audit in 2020 in
compliance with Royal Decree 56/2016 of 12 February, which
transposed Directive 2012/27/EU of the European Parliament
and of the Council of 25 October 2012, regarding energy au-
dits, accreditation of service providers and energy auditors and
promotion of energy supply efficiency. In accordance with the
law, the company will re-audit the buildings after four years have
elapsed since they were last audited.
2 Proper management of waste
Throughout the 2021 financial year, we have continued to eval-
uate consumption and CO2 emissions and to introduce efficien-
cy measures in the buildings. Thanks to this policy, in recent
years there has been a downward trend in both consumption
and the emission of polluting gases.
The Real Estate Area promotes selective waste collection in its
offices and shopping centres, providing tenants with a recycling
point in each building. This system allows the recycling of paper,
cardboard and toner and the separation of waste considered
toxic and hazardous for subsequent collection and delivery to
authorised waste managers.
Additionally, we collaborate with different companies and or-
ganisations in the collection of waste, depending on the type of
material collected.
In construction and rehabilitation activities, the Real Estate Area
applies the 3R criterion (Reduce, Reuse and Recycle), from the
planning of the architectural project to the end of construction,
managing waste efficiently.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Innovation and technology | Page 2 of 3
_ 252
3
Sustainable construction
The buildings constructed comply with the principles of sustain-
able construction: respect for the environment, use of low-im-
pact materials throughout their life cycle and inclusion of ener-
gy efficiency measures. All residential projects comply with the
standards of the Technical Building Code.
In order to achieve a better energy rating for the homes, a series
of constructive and quality improvements are being made to the
materials used, so as to save energy and water consumed by
the homes and minimise the environmental impact.
All residential
projects comply with
the standards of
the Technical
Building Code
4
Promoting responsible behaviour
The Real Estate Area promotes environmentally responsible
conduct, both within the company and among its customers
and in the supply chain, adopting the best habits in the use of
materials and products, energy management, waste treatment
and transportation. At the same time, the company promotes
recycling in the workplace.
In commercial and office spaces, it promotes sustainable be-
haviour among its users through signage and messages on its
digital screens
In retail complexes, maintenance teams inform retailers and
store managers of possible measures to be taken to reduce
energy consumption, such as time adjustments or insulation
improvements.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Business lines | Real Estate | Innovation and technology | Page 3 of 3
_ 253
More sustainable housing
More sustainable buildings
The Real Estate Area is
committed to the design
and construction of
increasingly sustainable
and environmentally
friendly housing
The availability of water and energy saving systems in homes is
becoming increasingly important and valued, providing environ-
mental, social and economic advantages.
The Real Estate Area is committed to the design and construc-
tion of homes that are increasingly sustainable and respectful of
their surroundings and the environment. For this reason, we are
incorporating flow controls, rainwater reuse mechanisms and
consumption control devices at all supply points, both in the
homes and in the common areas of the development through
the programming of irrigation and energy consumption
Water is one of the most necessary and used resources for life,
yet it is one of the most wasted, so we must all focus on the
rational and efficient use of this resource
In addition, the Real Estate Area uses renewable energy pro-
duction systems such as aerothermal energy for heating, cool-
ing and DHW (Domestic Hot Water) and low temperature heat
and cold distribution systems such as underfloor heating. Home
automation is a fundamental aspect in many homes, not only
for the convenience of use (controllable from smartphones) but
also for its environmental factor, since through the installation of
these systems energy consumption can be optimised with the
consequent savings.
An example of all the above is the “Bôrea Portablanca” devel-
opment located in Arroyo del Fresno (Madrid, Spain), which has
incorporated a system where the production of heat, cold and
DHW is generated by a renewable energy system of heat pump
powered by aerothermal energy.
Aerothermal energy consists of extracting free energy from the
outside (ambient) air and the heat pumps used are designed
and built to obtain maximum performance in severe outdoor
climatic conditions, both in winter and summer.
The main advantages of an aerothermal system are the con-
siderable energy savings compared to conventional heat and
domestic hot water production systems, large savings with low
temperature heating systems such as underfloor heating and
renewable energy and the generation of clean energy with low
CO2 emissions.
Obtención y
mantenimiento de la
certificación BREEAM®
Three of the Real Estate Area’s office buildings (Torre Realia
Icon (Madrid), Edificio Acanto 22 (Madrid) and Torre Realia BCN
(Barcelona)) are BREEAM® certified.
The first building to obtain certification in 2019, was Torre Realia\
The Icon. In 2020, the certificate was obtained for the Acanto
22 Building and most of the work was carried out to obtain the
BREEAM certificate for Torre Realia BCN, which was obtained
in 2021. These buildings are benchmarks in sustainability and
energy savings, as they have been recognised with BREEAM®
certification with an “Excellent” level of management.
BREEAM® certification is the international sustainability assess-
ment and certification scheme, operating since 1990 and pres-
ent in more than 77 countries, which allows the evaluation of
the actual performance of a non-residential property through
information on the environmental performance, invoices and
other consumption records of the property.
Obtaining and maintaining BREEAM® certification involves an
in-depth and continuous analysis of all building operating pro-
cesses. Based on this analysis, measures to optimise sustaina-
bility performance in energy, health and wellness, and materials
and waste are implemented on an ongoing basis.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021
_ 254
A 1
Financial
Statements
Consolidated Group _ 255
Fomento de Construcciones y Contratas, S.A. _ 449
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements
_ 255
A 1
Consolidated
Group
Consolidated Balance Sheet _ 256
Consolidated income statement _ 258
Consolidated statements of recognised
income and expense _ 259
Total statement of changes in
the consolidated equity _ 260
Statement of consolidated cash flows
(indirect method) _ 261
Notes to the consolidated
financial statements _ 263
Management Report _ 407
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Consolidated Balance Sheet | Page 1 of 2
_ 256
Consolidated Balance Sheet
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2021 (in thousands of euros)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5ASSETSNotEs31/12/202131/12/2020NON-CURRENT ASSETS 9,074,069 7,130,413 Intangible fixed assets72,445,233 2,437,859 Concessions7 and 111,439,706 1,378,160 Goodwill948,976 1,007,015 Other intangible fixed assets 56,551 52,684 Property, plant and equipment82,862,556 2,810,199 Land and buildings987,119 1,016,848 Plant and other items of property, plant and equipment 1,875,437 1,793,351 Investment property9 2,069,187 –Investments accounted for using the equity method12 533,842 722,786 Non-current financial assets14 604,020 580,874 Deferred tax assets24 559,231 578,695 CURRENT ASSETS 5,168,089 5,704,189 Non-current assets held for sale4 – 1,392,268 Inventory15 1,107,262 765,604 Trade and other receivables162,277,734 2,039,451 Trade receivables for sales and services1,845,214 1,651,094 Other receivables258,165 287,122 Current tax assets24174,355 101,235 Other current financial assets14 184,365 228,652 Other current assets16 63,203 56,105 Cash and cash equivalents17 1,535,525 1,222,109 TOTAL ASSETS 14,242,158 12,834,602 The accompanying Notes 1 to 33 and Annexes I to V form an integral part of the consolidated financial statements, jointly forming the 2021 consolidated income statements. FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Consolidated Balance Sheet | Page 2 of 2
_ 257
Consolidated Balance Sheet
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2021 (in thousands of euros)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5LIABILITIES AND EQUITYNotes31/12/202131/12/2020EQUITY18 4,440,665 2,908,694 Equity attributable to the Parent3,007,094 2,288,313 Shareholders’ equity3,121,227 2,564,012 Capital425,174 409,107 Accumulated earnings and other reserves2,142,592 1,910,738 Shares and equity interests(26,674)(18,012)Profit for the year attributable to the Parent company580,135262,179Valuation adjustments (114,133) (275,699) Non-controlling interests 1,433,571 620,381 NON-CURRENT LIABILITIES 5,565,941 5,531,296 Subsidies 192,185 192,961 Non-current provisions19 1,167,340 1,064,384 Non-current financial liabilities203,732,997 3,977,288 Bonds and other marketable securities1,878,804 2,780,935 Bank borrowings1,284,368 607,599 Other financial liabilities 569,825 588,754 Deferred tax liabilities24 322,219 148,794 Other non-current liabilities21 151,200 147,869 CURRENT LIABILITIES 4,235,552 4,394,612 Liabilities related to non-current assets held for sale4 – 1,051,285 Current provisions19 147,874 195,152 Current financial liabilities201,820,176 874,443 Bonds and other marketable securities1,152,739 449,346 Bank borrowings458,189 212,421 Other financial liabilities 209,248 212,676 Trade and other payables22 2,267,502 2,273,732 Suppliers1,072,129 1,055,643 Other payables1,167,215 1,209,150 Current tax liabilities2428,158 8,939 TOTAL EQUITY AND LIABILITIES 14,242,158 12,834,602 The accompanying Notes 1 to 33 and Annexes I to V form an integral part of the consolidated financial statements, jointly forming the 2021 consolidated income statements. FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Consolidated income statement
_ 258
Consolidated income statement
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2021 (in thousands of euros)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5Notas31/12/202131/12/2020 Net business turnover 276,659,2836,158,023 Self-constructed assets53,323 33,857 Other operating income27247,999 293,305 Changes in finished goods and work in progress inventories(13,631)15,230 Consumables27(2,476,145)(2,300,242)Staff costs27(2,040,229)(1,971,110)Other operating expenses(1,304,013)(1,181,564)Amortisation of fixed assets and allocation of grants for non-financial and other assets7, 8 and 9(443,936)(477,342)Impairment and gains/(losses) on disposal of fixed assets27123,577 6,870 Other gains/(losses)27(4,018)(4,287)OPERATING PROFIT/(LOSS)802,210 572,740 Finance income2724,819 33,470 Finance costs27(135,321)(187,429)Miscellaneous financial results2757,519 (51,057)FINANCIAL PROFIT/(LOSS)(52,983)(205,016)Profit/(loss) of entities valued using the equity method2758,233 62,149 PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS807,460 429,873 Corporate income tax24(130,180)(86,273)PROFIT/(LOSS) FOR THE YEAR FROM CONTINUING OPERATIONS 677,280 343,600 CONSOLIDATED PROFIT/(LOSS) FOR THE YEAR 677,280 343,600 Profit attributable to the Parent 580,135 262,179 Profit attributable to non-controlling interests1897,145 81,421 EARNINGS PER SHARE (euros)18 Basic1.40 0.66 Diluted 1.40 0.66 The accompanying Notes 1 to 33 and Annexes I to V form an integral part of the consolidated financial statements, jointly forming the 2021 consolidated income statements. FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Consolidated statements of recognised income and expense
_ 259
Consolidated statements of recognised income and expense
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2021 (in thousands of euros)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines531/12/202131/12/2020CONSOLIDATED PROFIT/(LOSS) FOR THE YEAR 677,280 343,600 Other comprehensive income - Items that are not reclassified to profit/(loss) for the period 7,002 (3,753)Actuarial profits and losses (*) 8,066 (4,863)Tax effect (1,064) 1,110 Other comprehensive income - items that can subsequently be reclassified to profit/(loss) for the period 203,643 (72,541)Financial assets at fair value with changes in other comprehensive income (26) 17 Valuation gains/(losses)–– Amounts transferred to the statement of profit and loss(26)17 Cash flow hedges 23,086 (14,758)Valuation gains/(losses)28,841 (30,907) Amounts transferred to the statement of profit and loss(5,755)16,149 Translation differences 65,569 (78,254)Valuation gains/(losses)65,569 (79,350) Amounts transferred to the statement of profit and loss–1,096 Participation in other comprehensive profit recognised by investments in joint ventures and associates 122,983 8,952 Valuation gains/(losses)18,049 (6,926) Amounts transferred to the statement of profit and loss104,934 15,878 Tax effect (7,969) 11,502 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 887,925 267,306 Attributable to the Parent Company 755,291 218,605 Attributable to non-controlling interests 132,634 48,701 The accompanying Notes 1 to 33 and Annexes I to V form an integral part of the consolidated financial statements, jointly forming the 2021 consolidated income statements.(*) Amounts that under no circumstances will be charged to the statement of profit and loss. FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Total statement of changes in the consolidated equity
_ 260
Total statement of changes in the consolidated equity
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2021 (in thousands of euros)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5Share capitalShare premium and reservesInterim dividendShares and equity interestsProfit/(loss) for the year attributed to the Parent CompanyOther equity instrumentsValuation adjustmentsEquity attributable to shareholders of the ParentNon-controlling interestsTotal equityNotes18.a18.b 18.c 18.d1818.IIEquity as at 31 December 2019392,265 1,601,284 0 (16,068)266,704 0 (292,923)1,951,262 522,497 2,473,759 Total income and expenses for the year(1,988)262,179 (41,586)218,605 48,701 267,306 Transactions with shareholders or owners16,842 (29,357)0 (1,944)0 0 0 (14,459)(40,917)(55,376)Capital increases/(reductions)16,842 (16,921)(79)366 287 Distribution of dividends(12,436)(12,436)(41,283)(53,719)Transactions with treasury shares or equity instruments (net)(1,944)(1,944)(1,944)Other changes in equity18340,799 (266,704)58,810 132,905 90,100 223,005 Equity as at 31 December 2020 409,107 1,910,738 0 (18,012)262,179 0 (275,699)2,288,313 620,381 2,908,694 Total income and expenses for the year11,364 580,135 163,792 755,291 132,634 887,925 Transactions with shareholders or owners16,067 (25,788)0 (8,662)0 0 0 (18,383)(42,530)(60,913)Capital increases/(reductions)16,067 (16,157)-90 (437)(527)Distribution of dividends(9,631)(9,631)(42,093)(51,724)Transactions with treasury shares or equity instruments (net)(8,662)(8,662)(8,662)Other changes in equity246,278 (262,179)(2,226)(18,127)723,086 704,959 Equity as at 31 December 2021 425,174 2,142,592 0 (26,674)580,135 0 (114,133)3,007,094 1,433,571 4,440,665 The accompanying Notes 1 to 33 and Annexes I to V form an integral part of the consolidated financial statements, jointly forming the 2021 consolidated income statements. FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Statement of consolidated cash flows (indirect method) | Page 1 of 2
_ 261
Statement of consolidated cash flows (indirect method)
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2021 (in thousands of euros)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5Notes31/12/202131/12/2020Profit/(loss) before tax from continuing operations807,460 429,873 Adjustments to profit203,866 538,330 Amortisation of fixed and non-current assets7, 8 and 9452,267 488,907 Impairment and gains/(losses) on disposal of fixed assets7, 8 and 27(123,577)6,870 Other adjustments to profit/(loss) (net)27(124,824)42,553 Changes in working capital16(167,910)(302,060)Other cash flows from operating activities(97,170)(61,069)Dividend collections38,431 35,665 Collections/(Payment) for income tax(135,601) (96,734) TOTAL CASH FLOWS FROM OPERATING ACTIVITIES 746,246 605,074 Investment payments(557,923)(541,275)Group companies, associates and business units(147,897)(95,672)Property, plant and equipment, intangible assets and real estate investments7, 8 and 9(387,392)(407,933)Other financial assets(22,634)(37,670)Divestment receipts568,619 75,920 Group companies, associates and business units478,022 6,214 Property, plant and equipment, intangible assets and real estate investments7, 8 and 952,224 20,223 Other financial assets38,373 49,483 Other cash flows from investing activities182,386 63,807 Interest received13,050 13,675 Other collections/(payments) from investing activities169,336 50,132 TOTAL CASH FLOWS FROM INVESTMENT ACTIVITIES 193,082 (401,548) FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Statement of consolidated cash flows (indirect method) | Page 2 of 2
_ 262
Statement of consolidated cash flows (indirect method)
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2021 (in thousands of euros)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5Notes31/12/202131/12/2020Proceeds from and payments for equity instruments18(200,929)186,374 Issue/(redemption)(524)22 (Acquisition)/disposal of treasury shares(200,405)186,352 Proceeds from (payments on) financial liabilities20(269,321)(142,639)Issuance1,125,829 1,689,907 Repayment and amortisation(1,395,150)(1,832,546)Dividends paid and payments on equity instruments6(63,150)(36,643)Other cash flows from financing activities(94,327)(145,529)Interest paid(99,105)(151,370)Other collections/(payments) from financing activities 4,778 5,841 TOTAL CASH FLOWS FROM FINANCING ACTIVITIES (627,727) (138,437) EFFECT OF VARIATIONS IN EXCHANGE RATES 1,815 (61,524) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 313,416 3,565 Cash and cash equivalents at the start of the period171,222,109 1,218,544 Cash and cash equivalents at the end of the period17 1,535,525 1,222,109 The accompanying Notes 1 to 33 and Annexes I to V form an integral part of the consolidated financial statements, jointly forming the 2021 consolidated income statements. FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 1 of 144
_ 263
Notes to the consolidated financial statements
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2021
1. Group activity
264
20. Non-current and current financial liabilities
2. Basis of presentation and basis of consolidation
of the consolidated income statement
3. Accounting policies
4. Non-current assets held for sale and liabilities related
to non-current assets held for sale and discontinued operations
5. Changes in the scope of consolidation
6. Distribution of profit
7.
Intangible assets
8. Property, plant and equipment
9. Real estate investments
10. Leases
11. Service concession arrangements
12. Investments accounted for using the equity method
13. Joint agreements. joint 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
264
266
277
279
283
284
290
293
295
298
302
309
310
312
314
316
317
322
326
334
334
335
339
343
21. Other non-current liabilities
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 345
27. Income and expenditure
28. Information by activity segments
29. Environmental information
30. Financial risk management policies
31. Information on transactions with related parties
32. Fees paid to auditors
33. Events after the closing date
Annexe I
Fully consolidated subsidiaries
Annexe II Companies jointly controlled with third parties outside
the Group (consolidated using the equity method)
Annexe III Associates consolidated using the equity method
Annexe IV Changes in the scope of consolidation
Annexe V Temporary Joint Ventures and other contracts jointly
managed with third parties outside the Group
346
350
360
362
370
374
374
375
387
390
395
397
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 2 of 144
_ 264
1. Group activity
The FCC Group comprises the parent company Fomento de Construcciones y Contratas, S.A.
and a group of national and international investee companies.
Company identification data
Name of the reporting entity or other means
of identification
Fomento de Construcciones y Contratas, S.A.
tunnels and other similar infrastructures.
Legal form of the entity
Public Limited Company (In Spain: Sociedad Anónima)
Address of the entity's registered office
C. Balmes 36, 08007 Barcelona, Spain
Address of the entity
Country of incorporation
Main place of business
Avenida Camino de Santiago 40, 28050, Madrid, Spain
Spain
Spain
Name of the parent company
Control Empresarial de Capitales, S.A. de C.V.
Name of the controlling parent of the group
Control Empresarial de Capitales, S.A. de C.V.
The Group operates in the following business areas:
− Environmental Services. Services related to urban sanitation, industrial waste management,
green space conservation, including both construction and operation of treatment plants, and
energy recovery from waste. This includes concession agreements related to environmental
services.
− End-to-end Water Management. Services relating to the end-to-end 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. Concession agreements related to the end-to-
end water cycle are also included.
− Construction. Specialised in the construction of infrastructure, buildings and similar facilities:
motorways, motorways, roads, tunnels, bridges, hydraulic works, ports, airports, urban de-
velopments, housing, non-residential building, lighting, industrial climate control installations,
environmental restoration, etc.
− Real Estate. Dedicated to the promotion of housing and the rental of offices and commercial
premises.
− Cement. Dedicated to the operation of quarries and mineral deposits, manufacture of ce-
ment, lime, gypsum and prefabricated derivatives, and also to the production of concrete and
mortar.
− Concessions. Mainly includes concession agreements related to the operation of highways,
International activities account for approximately 41% (40% in 2020) of the FCC Group’s turnover,
mainly in Europe, Latin America, the Middle East and the United States.
2. Basis of presentation and basis
of consolidation of the consolidated
income statement
a) Basis of presentation
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.
The 2021 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 2020 consolidated financial statements were approved
by the General Shareholders’ Meeting of Fomento de Construcciones y Contratas, S.A., held on
29 June 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 3 of 144
_ 265
These consolidated financial statements of the FCC Group show the faithful image of the equity
and the financial situation as of 31 December 2021 and 2020, as well as the results of the oper-
ations, changes in equity and consolidated cash flows that occurred in the Group during those
years.
b) Basis of consolidation
Subsidiaries
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.
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 2021 and 2020, 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.
The consolidated financial statements are expressed in thousands of euros.
Reclassifications made
There were no significant reclassifications in business years 2021 and 2020.
Rules and interpretations issued but not in force
The Group intends to adopt standards, interpretations and amendments to standards issued by
the IASB, which are not mandatory in the European Union, when they become effective, if ap-
plicable to it. Although the Group is currently analysing its impact, based on its analysis to date,
it believes that its initial application will not have a significant impact on its consolidated financial
statements.
The consolidation is carried out using the global integration method for the subsidiaries indicated
in Annexe 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” of the liability side of the accompanying consolidated balance
sheet and the participation in the profit/(loss) is presented under the heading “Profit attributed to
non-controlling interests” of the accompanying consolidated income statement.
Where appropriate, goodwill is determined in accordance with the provisions of Note 3.b) of this
Report.
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:
Significant rules and interpretations applied in 2021
a) Joint operation: When the parties hold rights over the assets and obligations over the liabili-
The standards and interpretations applied in the preparation of these consolidated financial state-
ments are the same as those applied in the consolidated financial statements for the year ended
31 December 2020, as none of the standards, interpretations or amendments that are applicable
for the first time in this business year have had an impact on the Group’s accounting policies.
ties.
b) Joint business: When the parties hold only rights over the net assets.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 4 of 144
_ 266
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
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 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.
Annexe II lists the business jointly controlled with third parties outside the Group and Annexe V
lists the joint operations carried out with third parties outside the Group, mainly through temporary
joint ventures and other entities with similar characteristics.
Associates
The companies listed in Annexe 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 income 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.
Changes in the scope of consolidation
Annexe IV shows the changes made in 2021 in all consolidated companies using global integra-
tion and the equity method. The profit/(loss) of these companies are included in the consolidated
income statement as from the effective acquisition date or until the effective disposal or derecog-
nition 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 inclusions in
and exclusions from 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 obliga-
tions to acquire or build all the items required to provide the concession service over the contract
term.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 5 of 144
_ 267
When the above conditions are met, said concession contracts are registered by the provisions of
IFRIC 12 “Service Concession Arrangement”. In general, there are two clearly differentiated phas-
es, the first one in which the concessionaire provides construction or improvement services 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 accordance with the
provisions of IFRS 15 “Revenue from contracts with customers” (note 3.s).
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 Group’s most important concession businesses are in the water supply and
sanitation business, which depreciates its assets based on water consumption, which, in general,
remains constant over time due, on the one hand, to a reduction in water consumption as a result
of water saving policies and, on the other hand, to an increase in water consumption as a result
of population growth; in the environmental services business, mainly waste recycling and energy
recovery plants, which are depreciated on the basis of the tonnes treated; and in the concessions
business, mainly toll roads and motorways, which are depreciated on the basis of traffic. The
amortisation is completed in the concession period, which is generally between 25 and 50 years.
Concession arrangements recognised as financial assets are measured at the fair value of the
construction or upgrade services rendered. In accordance with the amortised cost method, the
corresponding income is recognised in profit or loss as net turnover based on the effective interest
rate resulting from forecasts of the concession’s cash flows and payments. Finance expenses
arising from the financing of these assets are classified under “Financial expenses” in the consoli-
dated income 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 “Revenue from
contracts with customers”.
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.
When the difference obtained according to the previous paragraph is a negative amount, a bar-
gain purchase occurs. In these situations, the Group reviews the identification and assessment of
the assets and liabilities acquired and if this difference is confirmed, it is recognised as a positive
result in the year under “Impairment and gains/(losses) on disposals of fixed assets”.
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).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 6 of 144
_ 268
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.
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.
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 f) 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
Property, plant and equipment are recorded at their cost price (updated, 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.
Companies depreciate their fixed and non-current assets following the linear method, distributing
the cost thereof between the following years of estimated useful life:
Natural resources and buildings
Plant, machinery and transport items
Furniture and tools
Other fixed and non-current assets
25-100
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 PP&E are reviewed
periodically to ensure that the depreciation method used reflects the pattern in which the revenue
deriving from operating the property, plant and equipment. 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 function-
alities for which they were defined. Subsequently, these internal analyses are compared against
third parties outside the Group, such as manufacturers, installers, etc. to ratify them.
The companies periodically assess, at least at the end of each reporting period, whether there is
any indication of impairment of an asset or group of assets in order to proceed, where appropri-
ate, as indicated in section f) of this note, to the impairment or reversal of the asset or group of
assets in order to adjust its net book value to its value in use, without exceeding in any case the
reversals of previous impairment losses.
e) Real Estate Investments
Real estate investments, or investment property, is land, buildings and other structures that are
held either for rental or for capital appreciation as a result of future increases in their respective
market prices.
Following the acquisition of control of the Realia Group and Jezzine Uno, S.L.U. (note 5), the FCC
Group has included €2,069 million of real estate investments in the accompanying consolidated
balance sheet (no investment property was recognised in 2020).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 7 of 144
_ 269
Investment property is stated at fair value at the reporting date and is not subject to depreciation.
Gains or losses arising from changes in the fair value of investment property are included in profit
or loss for the period in which they arise and are recognised under “Changes in value, impair-
ment and gains/(losses) on disposal of fixed assets” in the accompanying consolidated income
statement.
The Group periodically determines the fair value of investment property so that, at year-end, the
fair value reflects the market conditions of the investment property items at that date. This fair
value is determined half-yearly on the basis of the assessments made by independent experts.
f) Impairment of the property, plant and equipment and intangible
asset value
Intangible assets with finite useful lives and property, plant and equipment items 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 corporate income tax payments, together with those that arise from future improvements or
refurbishments 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.
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.
g) Leasing
All leasing transactions (with certain exceptions due to their small amount or duration) in which the
Group acts as lessee give rise to the recognition of an asset for the right of use, which by its nature
is mainly recorded as a tangible asset, and a liability for the future payment obligations 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 8 of 144
_ 270
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
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.
Substantially all of the agreements in which the Group acts as lessor, which are mostly carried
out in the Real Estate business, are classified as operating leases, as not substantially all the risks
and rewards incidental to ownership of the asset are transferred. The revenue generated by the
agreement is recognised on a straight-line basis over the term of the agreement and is included
as revenue in the profit and loss account to the extent that it is of an operating nature. Direct
costs incurred on entering into a lease agreement are incorporated as an increase in the value
of the leased asset and amortised over the lease term on the same basis as income. Contingent
payments are recognised as income in the period in which they are earned.
h) Investments accounted for using the equity method
Interests in joint ventures and associates are initially assessed at acquisition cost and subse-
quently restated to the amount of the interest with the results generated by these companies that
are not distributed by way 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 translation differences and 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.
i) 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.
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).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 9 of 144
_ 271
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.
Collection rights arising from a service concession arrangement are valued according to the crite-
ria indicated in section a) of this note.
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.
j) 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.
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). The net realisable value
is determined mainly on the basis of end-market references, by calculating the residual value of
the land on the existing market value in the locality in which they are located and, where appro-
priate, when purchase offers have been received, the price of such offers has been used for their
assessment.
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.
k) Foreign currency
k.1) Translation differences
Converting the financial statements of foreign companies denominated in currencies other than
the euro into euros has generally been carried out at the closing rate, except for:
– Capital and reserves, which were converted at historical exchange rates.
– The income statement items of foreign operations that were converted at the average ex-
change rates for the period.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 10 of 144
_ 272
Translation 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 accompanying
consolidated balance sheet, as shown in the accompanying statement of changes in the equity.
k.2) Exchange differences
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 for-
eign companies, with both the investment and the financing being registered in the same curren-
cy, are directly recognised in equity as translation differences that offset the effect of the difference
in conversion to euros of the foreign company.
l) 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.
m) Grants
Grants are recognised according to their nature.
m.1) Capital grants
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.
m.2) Operating subsidies
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.
n) 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.
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 2021 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 11 of 144
_ 273
o) Financial liabilities
The qualitative requirements that must be met are as follows:
Financial liabilities are initially recognised at the fair value of the consideration received, adjusted
by the directly attributable transaction costs. These financial liabilities are subsequently measured
at amortised cost.
– 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
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.
p) 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.
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.
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.
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 quan-
titative 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 12 of 144
_ 274
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:
q) Income tax
, 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).
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:
– 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.
The expense for corporate income tax is calculated on the basis of the consolidated profit before
tax, increased or decreased, as appropriate, by the permanent differences between tax loss/
taxable profit and accounting profit/(loss). The corresponding tax rate based on the legislation ap-
plicable 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.
The temporary differences between accounting profit/loss and taxable profit/tax loss for Cor-
porate Income Tax purposes, together with the differences between the carrying amounts of
assets and liabilities recognised 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 performing 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.
r) 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.
s) 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 13 of 144
_ 275
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, End-
to-end Water Management and Real Estate segments when the Group acts as lessor under lease
agreements, income and expenses are recognised on an accrual basis, i.e. when the actual flow
of the goods and services they represent occurs, regardless of when the resulting monetary or
financial flow arises. These are performance obligations that are satisfied over time as the custom-
er 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.
In the Real Estate activity, the Group recognises the costs passed on to tenants of its investment
property as income under “Other operating income” in the accompanying consolidated income
statement (note 10.b).
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.
With regard to the service concession agreements, it should be noted that the Group recognises
the interest income derived from the collection rights of the financial model as net turnover, since
the value of this financial asset includes both construction and maintenance and upkeep services,
which from an operational point of view are identical to those represented by the intangible model
and, consequently, it is considered that since both models are related to the company’s operat-
ing activity, the true and fair view is better represented by including the income derived from the
financial asset as belonging to operations (note 3.a).
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.
t) 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 14 of 144
_ 276
u) Consolidated statement of cash flows
– The useful life of PP&E and intangible assets (notes 7 and 8).
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:
– The determination of the fair value of investment property (note 9).
– The determination of the recoverable amount of inventory (note 15).
– Cash flows are the inflows and outflows of cash and cash equivalents.
– The assumptions used in the actuarial calculation of liabilities and commitments for post-em-
– Operating activities are the activities that constitute the main source of the company’s ordinary
income, and also other activities that cannot be classified as investment or financing activities.
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.
–
Investing activities are the acquisition and disposal of long-term assets, as well as other in-
vestments not included in cash and cash equivalents.
– 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.
v) Use of estimates
In preparing these 2021 and 2020 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.s 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).
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.
x) 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 15 of 144
_ 277
4. Non-current assets held for sale and
Profit and Loss Account
liabilities related to non-current assets
held for sale and discontinued operations
Assets with sales plans that also meet the requirements of International Financial Reporting
Standard 5 “Non-current assets held for sale and discontinued operations” (note 3.x) are reclas-
sified to this item in the accompanying consolidated balance sheet.
In 2021, there are no assets held for sale and no liabilities linked to non-current assets held for
sale.
In 2020, FCC agreed to sell its entire stake in three concessions located in Spain to Vauban
Infrastructure Partners, a non-Group company, as part of its policy of rotation and selective de-
velopment of projects in this activity. Specifically, the agreement signed included the transfer of
51% in Grupo Cedinsa, the controlled company that manages the concession of four motorways
in Catalonia, and 49% in Concessió Estacions Aeroport L9, S.A. (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 Barcelona. The transaction was completed in March and April 2021 for €377,138 thou-
sand. After deducting the dividends received following the sale agreement.
Assets held for sale, net of their liabilities, have been assessed at their carrying amount, which is
lower than the expected proceeds from their sale net of costs to sell.
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.
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:
2020
Net business turnover
Operating expenses
Operating Profit/(Loss)
Profit/(loss) before tax from
continuing operations
Corporate income tax
Profit/(loss) for the year from
continuing operations
Total
92,913
(47,951)
44,962
Cedinsa
Group
92,913
(47,951)
44,962
oncessió
Estacions
Aeroport L9,
S.A.
Urbs
Iudex et
Causidicus,
S.A.
–
–
–
–
–
–
34,524
19,518
12,789
2,217
(5,523)
29,001
(5,523)
13,995
–
–
12,789
2,217
Profit attributable to the parent
company
Profit attributable to non-controlling
interests
24,390
9,384
12,789
2,217
4,611
4,611
–
–
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 16 of 144
_ 278
Cash flow statement
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:
Balance sheet. Headings of non-current assets and liabilities held for
sale
The different assets and liabilities reclassified as held for sale under the respective headings of the
attached balance sheet are detailed below:
2020
Cedinsa Grou
Profit/(loss) before tax from continuing operations
Adjustments to profit
Changes in working capital
Other cash flows from operating activities
Cash flow from business activities
Investment payments
Divestment receipts
Other cash flows from investing activities
Cash flow from investment activities
Proceeds from and payments for equity instruments
Proceeds from (payments on) financial liabilities
Other cash flows from financing activities
Cash flows for financial activities
Total cash flows
19,518
65,535
13,211
(10,222)
88,042
(8,616)
6,058
–
(2,558)
–
(26,771)
(61,871)
(88,642)
(3,158)
2020
Total
Cedinsa
Group
Concessió
Estacions
Aeroport L9,
S.A.
Urbs
Iudex et
Causidicus,
S.A.
Intangible fixed 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
Liabilities relating to assets
held for sale
848,499
159,404
31,771
11,611
848,499
159,404
31,771
11,611
1,051,285
1,051,285
–
–
–
–
–
–
–
–
–
–
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 17 of 144
_ 279
5. Changes in the scope of consolidation
The composition of the balance sheets for business combinations is detailed below:
The main changes experienced in the scope of consolidation in 2021 are the following:
2021 Financial Year
Realia Business
Group
Jezzine Uno,
S.L.U.
Premier Waste
Services, Llc.
a) Business combinations
–
In October 2021, F C y C, S.L. acquired a stake in Realia Business, S.A., representing 13.12%
of the share capital, in addition to the 37.40% previously held. The aforementioned share-
holding was acquired from Control Empresarial de Capitales, S.A. de C.V. (note 31) for an
amount of €83,941 thousand, which has been recorded under the heading “Payments for
investments” in the accompanying cash flow statement. As a result of the aforementioned
transaction, the FCC Group has gained control of the aforementioned company, recording a
positive operating profit of €241,701 thousand in the business combination (note 27), as the
consideration paid was less than the fair value of the assets acquired. In addition, a negative
result of €58,158 thousand was recorded under “Profit/(loss) of entities valued using the equi-
ty method” as a result of the fair value of the stake held by the aforementioned company prior
to the takeover (note 27).
– Additionally, the company Jezzine Uno, S.L.U., a commercial property rental company, was
incorporated in October (note 31). This transaction was carried out by means of a non-cash
capital increase in F C y C, S.L., fully subscribed by Soinmob Inmobiliaria Española, S.A., a
subsidiary of Control Empresarial de Capitales, S.A. de C.V. Consequently, Soinmob Inmobil-
iaria Española. S.A. now holds 19.97% of the share capital of F C y C, S.L. (note 18).
– On 31 December 2021, the Environment division acquired 100% of Premier Waste Services,
Llc. in the United States for €30,019 thousand. The amount paid has been recorded in the
accompanying cash flow statement under “Payments for investments”.
Non-current assets
1,651,725
608,859
Intangible fixed assets
Property, plant and equipment
Investment property
Investments accounted for using the equity
method
Non-current financial assets
Deferred tax assets
Current assets
Inventory
Trade and other receivables
Other current financial assets
Other current assets
Cash and cash equivalents
Total assets
Equity
Non-current liabilities
Subsidies
Non-current provisions
Non-current financial liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Current provisions
Current financial liabilities
Trade and other payables
77
2,102
1,470,575
59,941
9,526
109,504
465,916
334,828
16,668
21,060
4,796
88,564
2,117,641
–
2
600,404
–
5,263
3,190
13,215
–
305
–
–
12,910
622,074
–
12,019
515,937
183,972
–
46,457
293
5,312
40,852
–
–
320,950
60,301
–
–
18,310
9,817
Total equity and liabilities
2,117,641
622,074
30,350
21,614
8,736
–
–
–
–
1,200
–
980
–
132
88
31,550
–
–
–
–
–
–
–
–
1,531
31,550
1,359,256
212,696
30,019
711,928
381,251
28,127
1,531
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 18 of 144
_ 280
As a result of the aforementioned business combinations, the fair value of the assets acquired
was determined. The following table shows the amounts allocated to assets and liabilities to re-
flect their fair value on the takeover date:
The above business combinations have contributed the following revenues and results to the
accompanying consolidated income statement:
Realia
Business
Group
Jezzine Uno,
S.L.U.
Premier Waste
Services, Llc.
2021 Financial Year
Investment property
Inventory
Total assignments to assets
Non-current liabilities (deferred tax liabilities)
Total assignments to liabilities
–
241,205
28,000
28,000
7,000
7,000
–
241,205
60,301
60,301
Total net assignments
21,000
180,904
2021
Net business turnover
Other income
Operating Profit/(Loss)
Profit/(loss) before tax from continuing
operations
Profit attributable to the parent company
Non-controlling interests
Realia
Business
Group
39,899
3,005
27,659
26,081
7,632
13,011
Jezzine Uno,
S.L.U.
Premier Waste
Services, Llc.
6,284
350
6,176
5,450
3,272
816
–
–
–
–
–
–
–
–
–
–
–
–
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:
If the above companies had been consolidated since 1 January 2021, revenues and profit/(loss)
they would have contributed would have been as follows:
2021 Financial Year
Acquisition value
Fair value Minority interests acquired
Fair value previous interest
– Fair value net assets
Goodwill
Realia
Business
Group
83,941
547,445
236,602
–
–
(1,109,689)
(212,696)
(241,701)
–
Jezzine Uno,
S.L.U.
Premier Waste
Services, Llc.
2021
Net business turnover
212,696
30,019
Other income
–
–
(8,405)
21,614
Operating Profit/(Loss)
Profit/(loss) before tax from continuing
operations
Profit attributable to the parent company
Non-controlling interests
Realia
Business
Group
161,815
18,260
67,676
93,512
23,581
47,843
Jezzine Uno,
S.L.U.
Premier Waste
Services, Llc.
37,743
2,291
28,292
25,169
15,107
3,770
16,066
1,292
1,848
1,517
1,475
–
These initial estimates are provisional and the Group has a period of one year from the control
date to adjust them in line with subsequent more relevant and complete information that it has
been able to obtain.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 19 of 144
_ 281
The following business combinations were carried out in 2020:
FCC Aqualia, S.A. acquired control of the following businesses by acquiring the stakes detailed
below:
–
–
In January 2020, a 51% stake in Qatarat Saqia Desalination Company Ltd., the concession-
aire of the desalination plant at Jeddah International Airport, for €12,914 thousand, acquiring
control. The amount paid was recorded in the accompanying cash flow statement under
“Payments for investments”.
In June 2020, an additional 2% stake in Aquos El Realito, S.A. de C.V., a company that oper-
ates a water treatment plant in San Luis de Potosí, for €355 thousand, in which it previously
held 49% and consolidated using the equity method, bringing its stake and control to 51%.
Consequently, Aquos el Realito, S.A. de C.V. was fully consolidated, which entailed the rec-
ognition of €8,671 thousand under “Minority interests” (note 18) in the accompanying consol-
idated balance sheet. As a result of the transaction, a positive impact of €635 thousand was
recognised under “Profit/(loss) of entities valued using the equity method” due to the fair value
of the pre-transaction shareholdings and the recognition in profit or loss of the assessment
adjustments (note 27).
The composition of the balance sheets drawn up by the business combinations in 2020 is de-
tailed below:
2020 Financial Year
Non-current assets
Intangible fixed 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 receivables
Other current financial assets
Other current assets
Cash and cash equivalents
Total assets
Equity
Non-current liabilities
Subsidies
Non-current provisions
Non-current financial liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Current provisions
Current financial liabilities
Trade and other payables
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
–
–
7,231
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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 20 of 144
_ 282
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:
2020 Financial Year
Intangible fixed 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 Financial Year
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)
–
–
The above business combinations have contributed the following revenues and results to the
accompanying consolidated income statement:
2020
Net business turnover
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 be as follows:
2020
Net business turnover
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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 21 of 144
_ 283
b) Other changes in scope
In March and April 2021, the sale to Vauban Infrastructure Partners, a non-Group company, of the
FCC Group’s entire interest in three concessions located in Spain was completed for €377,138
thousand (note 4), which was recognised under “Proceeds from disposals of investments in
Group companies, associates and business units” in the accompanying cash flow statement.
Specifically, 51% of the Cedinsa group, a controlled company that manages the concession
of four motorways in Catalonia, and 49% of Concessió Estacions Aeroport L9, S.A. were sold.
(consolidated by the equity method), concessionaire of section 1 of line 9 of the Barcelona metro,
and 29% of Urbs Iudex et Causidicus, S.A. (consolidated by the equity method), which operates
the Ciudad de la Justicia (City of Justice), also in Barcelona. This transaction gave rise to a pre-tax
profit before tax of €39,256 thousand for the FCC Group, which includes the allocation to income
of value adjustments for a sum of €(93,029) thousand (note 27).
In April 2021, the Group agreed to sell FM Green Power Investments, S.L. and its investee com-
panies to Plenium Partners, S.L. As a result of the aforementioned sales, the Group received
€93,000 thousand, which was recognised under “Proceeds from Disposals of Group Companies,
Associates and Business Units” in the accompanying cash flow statement, and a current financial
asset of €5,000 thousand for the amount receivable at 31 December 2021. This transaction gave
rise to a gain of €39,464 thousand for the FCC Group under “Profit/(loss) of entities valued using
the equity method” in the accompanying consolidated income statement (refer to note 27).
On 21 December 2021, the Realia Group, through its subsidiary Realia Patrimonio, S.L.U., ac-
quired an additional 37.11% stake in Hermanos Revilla, S.A. for €189,061 thousand, which is
recognised in the accompanying cash flow statement under “Proceeds and payments for equity
instruments”. With this acquisition, the Realia Group’s direct and indirect shareholding in the afore-
mentioned company amounts to 87.76%. Since prior to the acquisition, the Group already had
control of both investees, the difference between the purchase price and the book value of the
minority interests acquired has generated a decrease in reserves of €2,946 thousand (note 18).
In relation to 2020, in July, FCC Medio Ambiente UK, S.L. agreed the sale to Icon Infrastructure
Partners of a minority stake of 49% of the capital of its new subsidiary Green Recovery Projects
Limited, owner of five energy recovery plants (incinerators) following 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, which was recorded under the heading “(Ac-
quisition)/Disposal of own securities” in the accompanying cash flow statement. As control was
not lost, the transaction was recorded as an equity transaction and resulted in the recording of
€60,718 thousand under “Minority interests” and €74,215 thousand in reserves as a result of the
difference between the sale price and the value of the minority interests recorded. In addition,
the assessment adjustments increased by €55,300 thousand due to the attribution of the pro-
portionate share to minority interests of the aforementioned existing adjustments prior to the sale
transaction (note 18).
6. Distribution of profit
Fomento de Construcciones y Contratas, S.A. distributed a scrip dividend in 2021 and 2020,
resulting in a cash outflow of €9,631 thousand (€12,436 thousand in 2020) and the delivery of
16,067,018 shares (16,841,792 shares in 2020) (note 18). Additionally, certain subsidiaries with
minority partners have distributed dividends.
The following table shows the dividends paid to its shareholders by the Group companies as of
31 December 2021 and 2020:
Shareholders of Fomento de Construcciones y Contratas, S.A.
Other non-controlling shareholders of other companies
2021
9,631
53,519
63,150
2020
12,436
24,207
36,643
The increase in the line “Other minority shareholders of other companies” relates mainly to the
payment of dividends to the minority shareholder of FCC Aqualia, S.A. amounting to €29,400
thousand at 31 December 2021. In 2020 FCC Aqualia, S.A. did not distribute dividends.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 22 of 144
_ 284
7.
Intangible assets
a) Concessions
The breakdown of net intangible assets at 31 December 2021 and 2020 is as follows:
Cost
Accumulated
amortisation
Impairment
Net value
2021
Concessions (Note 11)
2,718,925
(1,224,776)
(54,443)
1,439,706
Goodwill
1,922,704
–
Other intangible assets
378,188
(305,143)
(973,728)
(16,494)
948,976
56,551
5,019,817
(1,529,919)
(1,044,665)
2,445,233
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
The changes in this heading of the consolidated balance sheet in 2021 and 2020 were as follows:
Concessions
Accumulated
Depreciation
Impairment
Net value
Balance at 31 December 2019
3,680,629
(1,249,755)
(56,254)
2,374,620
Additions or allocations
Disposals, derecognitions or
reductions
Translation differences
Change in scope, transfers and
other changes
106,578
(29,368)
(61,806)
(1,146,985)
(137,591)
6,901
7,219
257,568
(97)
1,121
–
–
(31,110)
(21,346)
(54,587)
(889,417)
Balance at 31 December 2020
2,549,048
(1,115,658)
(55,230)
1,378,160
Additions or allocations
Disposals, derecognitions or
reductions
Translation differences
Change in scope, transfers and
other changes
60,984
(11,314)
29,597
90,610
(109,918)
6,715
(4,875)
(1,040)
(144)
1,052
2
(123)
(49,078)
(3,547)
24,724
89,447
Balance at 31 December 2021
2,718,925
(1,224,776)
(54,443)
1,439,706
This heading includes the intangible assets corresponding to the service concession arrange-
ments (note 11).
The most significant entries in 2021 within the Environmental Services segment relate to pro-
jects in progress carried out by Ecoparque Mancomunidad del Este S.A. for €23,763 thousand
(€52,226 thousand in 2020) and FCC Medio Ambiente, S.A. for €17,878 thousand (€8,231 thou-
sand in 2020) and, within the Integral Water Management segment, to Acque di Caltanisseta,
S.P.A. for €17,878 thousand (€8,231 thousand in 2020). for €17,878 thousand (€8,231 thousand
in 2020) and, within the End-to-end Water Management segment, Acque di Caltanisseta, S.P.A.
for €5,846 thousand (€4,155 thousand in 2020) and FCC Aqualia, S.A. for €7,350 thousand
(€2,851 thousand in 2020).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 23 of 144
_ 285
Changes in scope, transfers and other movements in the service concession agreements in 2021
include the recognition of future investment commitments included in the tariff as an increase in
the value of intangible assets with a balancing entry in provisions (note 11) in the company FCC
Aqualia, S.A. amounting to €76,306 thousand (€2,629 thousand in 2020)
Changes in scope, transfers and other movements in 2020 also includes a decrease due to the
transfer to assets held for sale of the Cedinsa subgroup (note 4) amounting to €1,308,452 thou-
sand gross value and accumulated depreciation of 291,291,847 thousand euros of accumulated
depreciation, and an increase due to the acquisition of Qatarat Saqia Desalination Company Ltd.
amounting to €76,514 thousand gross value and €22,608 thousand of accumulated depreciation
(notes 5 and 12).
Cash inflows and outflows are recorded in the accompanying cash flow statement as “Payments
for investments” and “Proceeds from disposals” of “Property, plant and equipment, intangible
assets and investment property” respectively.
No interest has been capitalised during business year 2021 (as it was not capitalised in 2020) and
the total capitalised interest amounts to €36,970 thousand (€43,848 thousand in 2020).
b) Goodwill
The breakdown of goodwill in the accompanying consolidated balance sheet at 31 December
2021 and 2020 was as follows:
Cementos Portland Valderrivas, S.A.
FCC Environment Group (UK)
FCC Environment Group (CEE)
FCC Aqualia, S.A.
FCC Ámbito, S.A.
FCC Industrial e Infraestructuras Energéticas, S.L.U.
Premier Waste Services, Llc.
Canteras de Aláiz, S.A.
Cementos Alfa, S.A
Resto
2021
2020
339,386
310,586
136,793
82,764
23,311
21,499
21,614
4,332
3,712
4,979
439,386
290,290
136,793
82,764
23,311
21,499
–
4,332
3,712
4,928
948,976
1,007,015
The movements of goodwill in the attached consolidated balance sheet in 2021 and 2020 were
as follows:
Balance at 31 December 2019
1.023.511
Exchange differences, change in consolidation scope and others:
FCC Environment Group (UK)
(16,455)
Rest
Balance at 31 December 2020
Exchange differences, change in consolidation scope and others:
FCC Environment Group (UK)
Premier Waste Services, Llc.
Cementos Portland Valderrivas, S.A.
Rest
Balance at 31 December 2021
(41)
(16,496)
1,007,015
20,296
21,614
(100,000)
51
(58,039)
948,976
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 24 of 144
_ 286
The item “Changes in the scope of consolidation, translation differences and other movements” in
2021 mainly relates to the impairment of goodwill of Cementos Portland Valderrivas, S.A. amount-
ing to €100,000 thousand, the acquisition of Premier Waste Services, Llc. in the Environmen-
tal Services segment amounting to €19,949 thousand and the effect of the appreciation of the
pound sterling against the euro (depreciation of the pound sterling in 2020).
The impairment analysis policies applied by the Group to its goodwill are described in Note 3.b).
Based on the methods used and on the estimates, projections and assessments available to
Group management, no impairment losses in addition to the impairment referred to in the preced-
ing paragraph have been identified.
The estimates made and the sensitivity analysis of the most significant goodwill impairment tests
are discussed below.
It should be noted that in preparing the impairment tests, cash flows have been estimated on the
basis of Group management’s best estimates and that upward or downward variations in the key
assumptions considered, both in the discount rate and operating margins, among other factors,
may affect the recoverable amount of the cash-generating unit considered.
Cementos Portland Valderrivas
An impairment of goodwill associated with the above purchases amounting to €239,026 thou-
sand was recorded in 2011 as a result of the sharp market contraction in the cement sector,
which was not expected to recover in the short to medium term. An additional impairment of
€187,191 thousand was recognised in 2016 and in 2019 the impairment test was updated to
take into account the slower growth in cement consumption, largely as a result of the slowdown
in the real estate market, whereby future forecasts were adjusted to take into account uncertain
demand scenarios and an additional impairment of €70,011 thousand was recognised.
During business year 2021 the Group has reassessed the impairment test, taking into account
the current economic situation and market circumstances, which inevitably impact the projected
cash flows. As a result of the assessment, an impairment loss of €100,000 thousand was rec-
ognised under “Impairment and gains/(losses) on disposal of fixed assets” in the accompanying
consolidated income statement.
Instability in the global economy is the main characteristic of 2021. The health crisis caused by
COVID-19 in 2020 has continued into 2021 and with it the economic consequences of suc-
cessive waves of the virus. During the year, there has been a significant increase in the cost of
maritime freight and, above all, in the gas, electricity and CO2 markets. These increases have
been passed on as supply chain disruptions on the one hand, and on the other hand are the main
source of inflationary pressures that have been passed on to virtually all products and services.
Composed of two separately identifiable goodwill items recorded in the individual books of Ce-
mentos Portland Valderrivas, S.A.:
The key hypotheses used in this test are detailed below:
– One arising from the merger by absorption of the parent company of the Corporación Uniland
Group and some of its subsidiaries for an amount of €225,881 thousand,
– €113,505 thousand corresponding to the cash generating unit (CGU) comprising 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 shareholding in Uniland was acquired in several stages between 2006 and 2013, until 100%
of the shareholding was acquired for a total amount of €1,898,973 thousand.
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 8.20% has
been used to evaluate goodwill from flows in Spain, and 21.85% for flows from Tunisia. The dis-
count rates used in 2020 were 7.12% and 15.93% respectively. 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 25 of 144
_ 287
According to information from Oficemen, the Spanish cement sector employers’ association,
cement consumption in 2021 has closed at 14.93 million tonnes, 11% higher than the figure
for 2020. This volume is similar to that of 2019, the last year not affected by the pandemic. On
the other hand, total exports (cement and clinker) have reached 6.78 million tonnes (6.16 million
tonnes in 2020). By 2022, the employers’ organisation estimates that consumption will close in a
range of between 3% and 5%, exceeding 15 million tonnes.
Average electricity prices in 2021 have increased by 228% compared to the 2020 average, rising
especially in the second half of the year. The price of CO2 has also maintained the upward trend
that began at the end of 2020, closing the year at record highs, with an average in the month of
December at approximately 80 €/right.
In this context, in 2021 the Company has updated the flows of its “Business Plan” for the period
2022-2031 which serves as the basis for the calculation of the impairment tests in which the
evolution of the cost of electricity, fuels and CO2 are of significant importance.
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 tonnes, 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.
In Tunisia in 2021, the domestic market has reached 5.9 million tonnes, 2.5% higher than in 2020.
High domestic political instability has kept consumption levels low. Despite the strong increase in
exports during the year, exports were limited by the temporary closures of the border with Libya,
the main export destination, due to the COVID-19 pandemic. By 2022, the domestic market is
expected to grow by 1.6% to 6 million tonnes. The strategy focuses on volume growth in the
domestic market and the consolidation of price increases made in recent years.
Costs are estimated on the basis of expected inflation, expectations of the evolution of fuel prices
and the electricity market, and the strategy of increasing the valorisation of alternative fuels.
The variation in working capital included in the analysis for each of the years remains stable in the
way it is calculated and is linked to the general evolution of the unit analysed.
The trend in investment is also linked to the general development of the activity analysed. The
value of the investments reflected in the perpetuity rate presents the value that the company es-
timates should be the target investments to be made in order to maintain the productive activity
at the required sustainable level.
The cash flow estimates made with these inflation assumptions, the increase in costs associated
with the greater environmental pressures that impact on the allowance allocation policy and its
price, the increase in the price of energy and the increase in the discount rate considered, have
resulted in the aforementioned impairment.
The main variables used in the test are listed below:
− Discounted flow period for Uniland Spain and Tunisia: 2022 to 2031
− Discount rate before taxes: 8.20% (Spain) and 21.85% (Tunisia)
− Growth in perpetuity: 0%
− Residual value on the recoverable amount of the CGU as a whole: 46.4%
− Compound annual growth rate Cement Market Spain (without CO2), terminal value for busi-
ness year 2022:
, Turnover domestic market: 4.7%
, Export market turnover: -12.6%
, Gross Operating Profit: 6.5%
− Compound annual growth rate (in dinars) Tunisia Cement Market, terminal value over business
year 2022:
, Turnover domestic market: 5.8%
, Export market turnover: 0%
, Gross Operating Profit: 5.0%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 26 of 144
_ 288
The result of this test is sensitive to variations in the key assumptions; a 10% increase in projected
flows would result in a buffer on the already impaired value of approximately €61,790 thousand
and a 10% decrease would result in an additional impairment of around €61,790 thousand. Fur-
thermore, a 10% increase in the discount rate considered would result in an additional impairment
of around €52,120 thousand and a 10% decrease in the already impaired value of approximately
€63,428 thousand.
Cementos Atlantico’s goodwill test has room to support up to a pre-tax discount rate of approx-
imately 10%, while supporting an annual cash flow decline of approximately 20% from projected
cash 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.
However, the Parent Company’s management considers that the impairment recorded has ad-
justed the value of goodwill to its fair value according to the best estimates available at year-end.
2) Alcalá de Guadaira
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 Guadaira 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.
The main variables used in the test are the following:
− Discount of flows period: 2022 to 2031
− Discount rate before taxes: 8.18%
− Growth in perpetuity: 0%
− Residual value on recoverable amount of the CGU: 57.8%
− Recoverable amount allowance over book value: €35,484 thousand
− Compound annual growth rate (without CO2), terminal value over business year 2021:
, Total turnover: 2.3%
, Gross Operating Profit: 29.6%
The year 2022 is particularly impacted by the percentage of (lower margin) export sales versus
domestic sales in total sales.
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.
It should be noted that during 2020, as a result of the internal reorganisation 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 therefore the composition of the CGU changed with respect to 2019.
In 2021, this organisation and composition of the CGU will be maintained.
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 27 of 144
_ 289
The main assumptions used envisage a slight decrease in revenues in 2022 compared to the
previous year with an expected increase in revenues in the range of approximately 1.3%–3.1%,
except for a growth of 15.9% in 2024 and 11.6% in 2025 as a result of the commissioning of the
Lostock energy recovery plant, currently under construction, which becomes fully operational.
The landfill sector is where the decrease in sales is taking place, following the expected market
evolution, compensated by the diversification of activities. The gross operating margin as a per-
centage of sales will increase from 19.5% in 2022 and decrease to around 13% in the last two
years. The pre-tax discount rate used was 8.71% and a time horizon of 10 years was considered
for the estimates given the structural characteristics of its business and the long useful life of its
assets. A growth rate of 1% has been considered in the calculation of the perpetual income rep-
resenting 41.5% of the total recoverable value. The test result shows an excess of the recoverable
amount over the carrying amount of the cash-generating unit of €237,346 thousand, an increase
of more than 1,300 basis points without incurring impairment, a decrease in the present value
of cash flows of 10% would reduce the excess to €200,359 thousand. If a zero growth rate had
been assumed, the excess would have decreased to €219,716 thousand.
As indicated in note 3.f) of these financial statements, the general criterion is not to consider
growth rates in perpetual income, but in the case of the FCC Environment (UK) subgroup, given
the transformation that is taking place in the mix of activities, it is considered that a growth rate of
1% more accurately reflects the reality of the business in the context of the change that is taking
place in the United Kingdom in the waste management activity, with a drastic fall in the disposal
of waste in landfills and an increase in alternative waste management activities that is expected to
be sustained over a prolonged period of time.
In addition, given the slack shown in the impairment test and the fact that the main assets and
liabilities of its business are referenced in the same currency (pound sterling), no impairment
should be evident.
c) Other intangible assets
The changes in this heading of the consolidated balance sheet in 2021 and 2020 were as follows:
Other intangible
assets
Accumulated
Depreciation
Impairment
Net value
Balance at 31 December 2019
359,776
(285,106)
(14,403)
Additions or allocations
Disposals, derecognitions or
reductions
Translation differences
Change in scope, transfers and
other changes
Balance at 31 December 2020
Additions or allocations
Disposals, derecognitions or
reductions
Translation differences
Change in scope, transfers and
other changes
12,363
(13,188)
(1,767)
2,876
360,060
12,142
(3,237)
2,031
7,192
(20,021)
10,544
1,085
1,280
(292,218)
(11,187)
2,985
(992)
(3,731)
(756)
–
1
–
(15,158)
(1,384)
70
(23)
1
60,267
(8,414)
(2,644)
(681)
4,156
52,684
(429)
(182)
1,016
3,462
Balance at 31 December 2021
378,188
(305,143)
(16,494)
56,551
This heading mainly includes:
– amounts paid to public or private entities as fees for the award of agreements that are not
classified as concessions, within the scope of IFRIC12 “Service Concession Arrangements”,
mainly in the Environmental Services Area,
– amounts recognised on initial recognition of certain business combinations representing items
such as customer portfolios and agreements in place at the time of purchase,
– quarrying rights in the Cement Area, and
– software applications.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 28 of 144
_ 290
8. Property, plant and equipment
The net composition of property, plant and equipment at 31 December 2021 and 2020 is as
follows:
Cost
Accumulated
amortisation
Impairment
Net value
Cost
Accumulated
amortisation
Impairment
Net value
2021
2020
Land and buildings
1,661,173
(572,202)
(101,852)
Land and natural resources
Buildings for own use
694,516
966,657
(172,501)
(399,701)
(87,045)
(14,807)
987,119
434,970
552,149
Land and buildings
1,616,955
(534,345)
(65,762)
1,016,848
Land and natural resources
Buildings for own use
683,055
933,900
(163,737)
(370,608)
(50,816)
(14,946)
468,502
548,346
Plant and other items of property,
plant and equipment
8,185,089
(5,653,086)
(656,566)
1,875,437
Plant and other items of property,
plant and equipment
7,795,156
(5,396,157)
(605,648)
1,793,351
Plant
4,997,778
(3,438,120)
(618,330)
Machinery and vehicles
2,320,002
(1,674,652)
(34,568)
Advances and PP&E under
construction
92,561
–
–
941,328
610,782
92,561
Plant
4,721,372
(3,241,318)
(568,532)
Machinery and vehicles
2,215,724
(1,628,062)
(33,720)
Advances and PP&E under
construction
109,411
–
–
911,522
553,942
109,411
Other PP&E
774,748
(540,314)
(3,668)
230,766
Other PP&E
748,649
(526,777)
(3,396)
218,476
9,846,262
(6,225,288)
(758,418)
2,862,556
9,412,111
(5,930,502)
(671,410)
2,810,199
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 29 of 144
_ 291
The movements in the various fixed and non-current assets headings in 2021 and 2020 were as
follows:
Land and
natural
resources
Buildings for
own use
Terrenos y
Construc-
ciones
Plant
Machinery and
vehicles
Advances and
PP&E under
construction
Other PP&E
Plant and
other items of
property, plant
and equipment
Accumulated
Depreciation
Impairment
Balance at 31 December 2019
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)
Additions or allocations
Disposals, derecognitions or
reductions
Translation differences
Change in scope, transfers and
other changes
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
(131,939)
(32,022)
36,564
130,049
(33,076)
(2,258)
(72,561)
68,607
(35,099)
(3,628)
22,540
402,908
(227,074)
(209,299)
24,097
(330,085)
102,289
123,588
15,922
(7,170)
12,377
32,679
(3,789)
Balance at 31 December 2020
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)
Additions or allocations
Disposals, derecognitions or
reductions
Translation differences
Change in scope, transfers and
other changes
4,930
(993)
2,734
4,790
48,216
(35,409)
7,998
11,952
53,146
(36,402)
10,732
16,742
31,783
(19,043)
205,173
58,493
154,912
(117,319)
34,805
31,880
77,196
(465)
786
(94,367)
54,451
(40,121)
5,347
6,422
318,342
(176,948)
(333,705)
175,889
246,111
(144,145)
2,428
7,175
(51,405)
4,487
(39,843)
(247)
Balance at 31 December 2021
694,516
966,657
1,661,173
4,997,778
2,320,002
92,561
774,748
8,185,089
(6,225,288)
(758,418)
Significant “Additions” in 2021 include investments made for the performance of the agreements
for the Environmental Services activity, mainly in different companies that carry out their activity
in the United States for a total of €36,983 thousand (€110,602 thousand in 2020), in FCC Medi-
oambiente, S.A. (Spain) for a total of €98,249 thousand (€76,877 thousand in 2020), in the FCC
Environment group (UK) for a total of €32,838 thousand (€28,932 thousand in 2020) and in FCC
Environment CEE (Central Europe) for a total of €43,848 thousand (€40,249 thousand in 2020),
as well as those carried out in the End-to-end Water Management activity, mainly in the company
FCC Aqualia,S.A. (Spain) for €22,406 thousand (€19,191 thousand in 2020) and in SmVak (Czech
Republic) for €28,453 thousand (€25,266 thousand in 2020) and in the construction business,
mainly in FCC Construcción, S.A. for €23,190 thousand (€21,107 thousand in 2020).
During 2021, land and natural assets (quarries) of the Cement business have been impaired by
€36,011 thousand (note 27) as a result of the expected shortening of their useful lives.
“Derecognitions, disposals 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.
Inflows and outflows that have resulted in cash inflows or outflows are recorded in the accom-
panying cash flow statement as “Payments for investments” and “Proceeds from disposals” of
“Property, plant and equipment, intangible assets and investment property”, respectively.
No interest has been capitalised during the business years 2021 and 2020 and the total capital-
ised interest at source as at 31 December 2021 amounts to €6,383 thousand (2020: €29,076
thousand).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 30 of 144
_ 292
The restrictions on ownership of these assets arise from the lease agreements explained in note
10 of these notes to the consolidated financial statements, and also from assets assigned to the
operation of certain agreements with characteristics similar to those of concession arrangements,
but to which IFRIC 12 “Concession arrangements” (note 3.a) does not apply.
Purchase commitments
In the course of their activities, the Group companies have entered into purchase commitments
for property, plant and equipment amounting to €24,510 thousand at 31 December 2021 (€4,873
thousand at 31 December 2020).
Land and natural resources
Buildings for own use
Plant
Machinery and vehicles
In-progress property, plant and equipment and advances
Other PP&E
2021
2020
–
–
–
22,075
–
2,435
24,510
–
–
–
4,556
102
215
4,873
As at 31 December 2021, in property, plant and equipment, €8,331 thousand (€11,565 thousand
as at 31 December 2020) has been charged as income from capital grants.
The Group companies take out the insurance policies they consider necessary to cover the pos-
sible risks to which their property, plant and equipment are subject. At year-end, the Parent esti-
mates that there is no hedging deficit related to said risks.
The gross amount of fully depreciated property, plant and equipment which is nevertheless used
in the production activity because it is in a good usable status amounts to €3,023,954 thousand
at 31 December 2021 (31 December 2020: €3,145,430 thousand).
Tangible assets net of depreciation in the accompanying consolidated balance sheet located
outside Spanish territory amount to €1,473,477 thousand at 31 December 2021 (€1,383,491
thousand at 31 December 2020).
Restrictions on title to assets
Of the total tangible assets on the consolidated balance sheet, €790,359 thousand at 31 De-
cember 2021 (€864,639 thousand at 31 December 2020) are subject to ownership restrictions
as follows:
Cost
Accumulated
amortisation
Impairment
Net value
2021
Buildings, plants and equipment
1,419,292
Other property, plant and equipment
163,012
686,066
101,515
(4,364)
728,426
–
61,933
1,582,304
787,581
(4,364)
790,359
2020
Buildings, plants and equipment
1,443,430
(631,338)
(3,762)
808,330
Other property, plant and equipment
163,104
(106,795)
–
56,309
1,606,534
(738,133)
(3,762)
864,639
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 31 of 144
_ 293
9. Real estate investments
–
IRR: interest rate or rate of return offered by an investment, the value of the discount rate that
makes the NPV equal to zero, for a given investment project.
– ERV: Market return on the asset at the assessment date.
In the case of the investment property of Jezzine Uno, S.L.U., given the characteristics of the
agreement, which includes a period of assured rental income until 2037, when the lessee has
the option to repurchase at fair value, the assessment method used was the discounted cash
flow method. Discounted cash flow (“DFC”) is a method generally accepted by valuation experts
from both a theoretical and practical point of view as the method that best incorporates all fac-
tors affecting the value of a business into the valuation result, considering the company as a real
investment project.
This methodology considers the results of the operating activity and also the investment and
working capital policy to calculate the future cash flow generation capabilities of the assets linked
to the business, which are discounted to the assessment date to obtain the present value of the
business.
The sum of the following two components has been considered for the determination of the fair
value:
– Estimated cash flows over the life of the agreement until its completion in 2037: The calcula-
tion is based on the amount of rents expected to be obtained, including the expenses charge-
able to the lessee under the agreement (property tax, community charges and other fees),
less the operating costs incurred for the management of the properties and the corresponding
operating taxes. The cash flows obtained are discounted in line with expected inflation.
As stated in note 3.e), investment property is measured at fair value based on the assessments
made by an independent expert.
In the case of the assessments corresponding to the Realia Business Group, the methodology
for determining the fair value of the investment property is based on the RICS principles, which
basically use discounted cash flows as the valuation method, which consists of capitalising the
net rents of each property and discounting the future flows, applying market discount rates, over a
ten-year time horizon and a residual value calculated by capitalising the estimated rent at the end
of the projected period at an estimated yield. The properties were assessed on an individual basis,
taking into account each of the agreements in force at year-end and their duration. For buildings
with vacant areas, these have been assessed on the basis of estimated future rents, discounting
a marketing period.
The key variables in this method are the determination of the net income, the duration of the lease
agreements, the time period over which the leases are discounted, the approximation of value
at the end of each period and the target internal rate of return used to discount the cash flows.
The key variables used in the assessments using the discounted cash flow method are:
– Current gross income: contractual income of the agreements outstanding at the date of the
assessment, without taking into account bonuses, grace periods and expenses not passed
on.
– Current net income: the revenue generated by each property at the date of the assessment,
net of allowances and deficiencies and taking into account the non-chargeable expenses in
accordance with the agreements and for vacant spaces.
– Estimated revenue for vacant space and/or new leases over the years of the cash flow.
– Exit Yield: required rate of return at the end of the assessment period on the sale of the asset.
At the end of the discount period it is necessary to determine an exit value of the property. At
that point it is not possible to reapply a discounted cash flow methodology and it is necessary
to calculate the sale value according to an exit yield based on the rent being generated by the
property at the time of sale, provided that the cash flow projection assumes a stabilised rent
that can be capitalised in perpetuity.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 32 of 144
_ 294
– Divestment value: An exit value of the property has been estimated at the end of the lease
term. At that point it is not possible to re-apply a discounted cash flow methodology and it is
necessary to calculate the sale value according to an exit yield based on the expected market
rent that the properties could be generating at the time of sale and which can be capitalised
in perpetuity. The market rent in 2037 has been determined on the basis of an analysis of the
possible market rent of the premises, assuming that the market rent will vary annually until
2037 in line with expected annual inflation rates in the future. For the purpose of determining
the net capitalisable income in perpetuity, the total amount of asset-related expenses expect-
ed in 2037 (no longer chargeable in the context of a market sale) has been deducted. It has
also been assumed that minor investments will be necessary to adapt the assets for their
sale on the market, estimating the marketing costs that would be incurred in their sale. The
corresponding tax effect has been deducted from the amount of capital gain thus obtained.
The key variables used in the above assessment are as follows:
2021
Increase of 25 basis points
Decrease of 25 basis points
Assets
(47,305)
52,515
Consolidated profit/
(loss) for the year
(35,479)
39,386
In addition, the sensitivity analysis of a 10% change in the ERV (market rent of the asset at the
assessment date) would be as follows:
2021
10% increase
10% decrease
Assets
113,315
(111,470)
Consolidated profit/
(loss) for the year
84,986
(83,603)
– Amount of net rents during the lease agreement calculated as explained above.
Finally, the sensitivity analysis of a quarter point change in the IRR would be as follows:
– Discount rate: The WACC has been calculated taking as components those corresponding to
the market in which it operates and its debt structure.
2021
– Exit yield: Required rate of return at the end of the lease agreement on the sale of the assets.
Increase of 25 basis points
Decrease of 25 basis points
Assets
(26,610)
27,460
Consolidated profit/
(loss) for the year
(19,958)
20,595
The fair value of investment property amounts to €2,069,187 thousand, at 31 December 2020,
the Group had no investment property recorded.
The following is a sensitivity analysis of the main variables affecting the assessment at fair value of
the Realia Business Group’s real estate inventories.
The effect of the change in the required rates of return (Exit yield), calculated as income on the
market value of the assets, in terms of “Net Asset Value”, on the consolidated assets and the
consolidated profit and loss account, in respect of the investment property in operation, would
be as follows:
In the case of Jezzine Uno, S.L.U.’s investment property, a sensitivity analysis of the main varia-
bles affecting its assessment is provided below.
The impact of a change in the discount rate used to determine the present value of both the con-
tract rents and their divestment value is as follows:
2021
Increase of 25 basis points
Decrease of 25 basis points
Assets
(13,044)
13,487
Consolidated profit/
(loss) for the year
(9,783)
10,116
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 33 of 144
_ 295
The impact of a change in the exit yield is as follows:
10. Leases
2021
Increase of 25 basis points
Decrease of 25 basis points
Assets
(5,535)
5,904
Consolidated profit/
(loss) for the year
(4,151)
4,428
The movements in the various investment property items in the business years 2021 and 2020
were as follows:
Balance at 31 December 2019
Additions
Disposals, derecognitions or reductions
Change in scope, transfers and other changes
Balance at 31 December 2020
Additions
Disposals, derecognitions or reductions
Change in fair value
Change in scope, transfers and other changes
Balance at 31 December 2021
2,798
42
(2,582)
(258)
–
4,836
(23,260)
16,628
2,070,983
2,069,187
As “Change in the scope of consolidation” in 2021, it is worth highlighting the real estate assets
incorporated due to the takeover of Realia Business, S.A., amounting to €1,470,575 thousand,
and Jezzine Uno, S.L.U., a company dedicated to the rental of commercial properties, amounting
to €600,404 thousand (note 5).
In 2020, FCC Inmobilien Holding GmbH sold an office building and a plot of land in Germany
for €3,950 thousand, whose net book value at the time of sale amounted to €2,582 thousand,
generating a capital gain of €1,368 thousand, which is recognised under “Impairment and gains/
(losses) on disposal of fixed assets” (note 27).
Cash inflows and outflows are recorded in the accompanying cash flow statement as “Payments
for investments” and “Proceeds from disposals” of “Property, plant and equipment, intangible
assets and investment property” respectively.
At the end of the 2021 and 2020 business years, the Group had no firm commitments to acquire
or construct any real estate investments.
a) Leases where the Group acts as lessee
As a lessee, the Group has entered into agreements to lease underlying assets of various kinds,
mainly machinery in the Construction business and technical installations and buildings for its own
use in all the Group’s activities.
Among the agreements entered into in previous years, those for the Group’s Central Services
buildings stand out, on the one hand, the agreement for the lease of the office building located in
Las Tablas (Madrid), effective from 23 November 2012 and for 18 years, extendable at the option
of the FCC Group in two periods of five years each, with a rent that can be updated annually in
accordance with the CPI.
Additionally, the agreement signed in 2011 for the buildings located at Federico Salmón 13, Ma-
drid and Balmes 36, Barcelona, for a minimum committed rental period of 30 years, extendable
at the Group’s option in two periods of 5 years each with a rent that can be updated annually
according to the CPI. These buildings were transferred to their current owners by means of a sale
and leaseback agreement. The owners, in turn, have granted a purchase option to Fomento de
Construcciones y Contratas, S.A., exercisable only at the end of the rental period, for the fair value
or the amount of the sale discounted by the CPI, whichever is higher.
In general, the leases entered into by the Group do not include variable payments, only certain
agreements include clauses for the discounting of rent, mainly in line with inflation. In some cases,
these agreements contain restrictions on use, the most common restrictions being those limiting
the use of the underlying assets to geographical areas or to use as office or production premises.
The agreements do not include significant residual value guarantee clauses.
The Group determines the duration of the agreements by estimating the length of time the entity
expects to continue to use the underlying asset based on its particular circumstances, including
extensions that are reasonably expected to be exercised.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 34 of 144
_ 296
The carrying amount of the right-of-use assets amounts to €356,811 thousand at 31 December
2021 (€364,192 thousand at 31 December 2020). The carrying amount, additions and write-
downs during the business years 2021 and 2020 are detailed below by underlying asset class:
2020
Cost
Accumulated
amortisation
Impairment
Net
value
Additions
Amortisation
charge
2021
Cost
Accumulated
amortisation
Impairment
Net
value
Additions
Amortisation
charge
Land and natural
resources
46,940
(5,304)
Land and buildings
428.905
(72.571)
Land and buildings
449,574
(101,577)
Land and natural
resources
53,759
(8,662)
Buildings for own use
395,815
(92,915)
Plant and other items
of property, plant and
equipment
173,634
(71,246)
Plant
5,674
(3,095)
Machinery and vehicles
133,451
(53,746)
Other PP&E
34,509
(14,405)
(602)
(602)
322,495
42,182
(38,283)
33,382
4,800
(3,563)
–
–
–
–
–
289,113
37,382
(34,720)
34,316
20,430
(37,996)
2,579
74
(1,072)
21,548
16,017
(29,746)
10,189
4,339
(7,178)
623,208
(172,823)
(602)
356,811
62,612
(76,279)
Buildings for own use
381,965
(67,267)
Plant and other items
of property, plant and
equipment
198,138
(73,877)
Plant
5,795
Machinery and vehicles 164,889
Other PP&E
27,454
(2,154)
(60,566)
(11,157)
–
–
320.446
22.502
(33.694)
24,430
3,633
(2,995)
296,016
18,869
(30,699)
43,746
56,694
(33,224)
3,640
80
(1,180)
29,266
48,478
(23,240)
10,840
8,136
(8,804)
627,043
(146,448)
–
364,192
79,196
(66,918)
Lease liabilities recognised amount to €432,851 thousand at 31 December 2021 (€445,086 thou-
sand at 31 December 2020), of which €64,870 thousand (€68,599 thousand at 31 December
2020) are classified as current in the accompanying consolidated balance sheet, as they mature
within the next twelve months (note 20). Lease liabilities have generated an interest charge of
€12,905 thousand at 31 December 2021 (€12,645 thousand at 31 December 2020). Lease pay-
ments made during the year amount to €109,301 thousand at 31 December 2021 (31 December
2020: €96,658 thousand) and are recognised under “Receivables and (payments) on financial
liability instruments” and “Interest payments” in the accompanying consolidated cash flow state-
ment. Details of non-current lease liabilities by maturity are shown below:
2021
2023
2024
2025
2026
2027 y
siguientes
Total
Liabilities for non-current
leases
41,433
60,324
27,958
33,211
205,055
367,981
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 35 of 144
_ 297
Certain agreements are excluded from the application of IFRS 16, mainly because they are low
value assets or because their term is less than twelve months (note 3.g), and are recognised as an
expense under “Other operating income” in the accompanying consolidated income statement,
the amount of which is as follows for 2021 and 2020:
Low value assets
Leases with term less than 12 months
2021
1,048
61,738
62,786
2020
2,115
73,677
75,792
b) Leases in which the Group acts as lessor
All lease agreements in which the Group acts as lessor are classified as operating leases, as sub-
stantially all the risks and rewards of ownership of the asset are not transferred.
In its position as lessor, the Group recognises operating income, mainly in the Real Estate busi-
ness, amounting to €25,126 thousand (€3,081 thousand at 31 December 2020), as follows:
Leased assets are mainly recorded under investment property in the accompanying consolidated
balance sheet. The typology of investment property is as follows:
Offices and commercial premises
Banking entities
2021
2020
1,468,782
600,405
2,069,187
–
–
–
In addition, the Group leases tangible fixed assets, mainly machinery in the construction business,
the carrying amount of which is not material.
At 31 December 2021, the Group has contracted minimum lease payments of €856,356 thou-
sand with tenants in the Realia Group and Jezzine Uno, S.L.U., in accordance with the current
agreements in force, without considering the repercussion of common expenses, future CPI in-
creases or future updates of contractually agreed rents, with the following maturities:
Revenue from leases
Revenue from common pass-through expenses
2021
21,887
3,239
25,126
2020
3,081
3,081
Within one year
Between two and five years
After five years
The change between the two years is mainly due to the takeover of Realia Business, S.A. and
Jezzine Uno S.L. (note 5).
2021
101,593
270,975
483,788
856,356
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 36 of 144
_ 298
11. Service concession arrangements
This note presents an overview of the Group’s investments in concession businesses which are
recognised under various asset headings in the accompanying consolidated balance sheet.
The following table sets out the total of such assets held by Group companies under service con-
cession arrangements and included in intangible assets, non-current and current financial assets
and investments in companies accounted for using the equity method (both joint ventures and
associates) in the accompanying consolidated balance sheet at 31 December 2021 and 2020.
Intangible
fixed assets
(Note 7)
Financial
assets
(Note 14)
Joint
concessionary
businesses
Associated
concessionary
companies
Total
investment
2021
Water services
1,795,243
230,770
389,584
–
28,679
8,401
44,627
2,099,319
–
397,985
534,098
235,058
56,025
41,199
866,380
2,718,925
465,828
93,105
85,826
3,363,684
(1,224,775)
(54,444)
–
–
–
–
–
–
(1,224,775)
(54,444)
1,439,706
465,828
93,105
85,826
2,084,465
Water services
1,710,822
223,303
378,515
–
27,454
8,204
46,343
2,007,922
–
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
Motorways and
tunnels
Environment and
Others
TOTAL
Accumulated
Impairment
2020
Motorways and
tunnels
Environment and
Others
TOTAL
Accumulated
Impairment
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 37 of 144
_ 299
Below is a breakdown of the main concessions included in the above categories, detailing their main characteristics:
Water services
791,535
230,771
Net book value as at 31 December 2021
Intangible fixed assets
Financial assets
Granting entity
Collection mechanism
Jerez de la Frontera (Cádiz - Spain)
Caltanissetta (Italy)
Jeddah desalination plant (Saudi Arabia)
Lleida (Spain)
Santander (Cantabria, Spain)
Vigo (Pontevedra, 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
66,397
46,734
43,955
32,779
32,049
28,503
27,571
24,178
23,735
20,207
–
–
445,427
250,383
203,179
47,204
397,788
139,599
112,481
49,130
22,852
21,039
20,440
–
–
–
–
–
32,247
1,439,706
141,974
24,469
6,518
–
–
–
235,057
9,403
–
–
–
–
–
–
–
–
–
–
City Council of Jerez de la Frontera.
Consorzio Ambito Territoriale Ottimale
User based on consumption
User based on consumption
General Authority of Civil Aviation (Saudi Arabia)
User based on consumption
Lleida City Council
Santander City Council
Vigo 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
57,810
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
94,931
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
–
–
29,443
29,701
20,103
19,811
16,938
14,727
465,828
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 38 of 144
_ 300
Water services
774,358
223,303
Net book value as at 31 December 2020
Intangible fixed assets
Financial assets
Granting entity
Collection mechanism
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
–
–
–
–
–
–
–
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
142,275
Algerian Energie Company S.p.a.
State Water Commission
User based on consumption
Cubic meters with guaranteed minimum
Cubic meters with guaranteed minimum
19,083
6,411
–
–
–
227,216
8,830
–
–
Government of the State of Veracruz
Direct toll paid by the user
Ministry for Economic Development
Shadow toll
Buckinghamshire County Council
Fixed amount plus variable amount per ton
Commonwealth of the East
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
According to tons treated
City of Houston
Gipuzkoa Waste Consortium
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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 39 of 144
_ 301
The water services activity is characterised by a very high number of agreements, the most sig-
nificant of which are detailed in the table above. The main activity of the agreements is the end-
to-end water cycle, from the collection, transport, treatment and distribution to urban centres
through the use of distribution networks and complex water treatment facilities for drinking water
purification, to the collection and treatment of wastewater. It includes both construction and main-
tenance of water and sewerage networks, desalination plants, water treatment plants and waste-
water treatment plants. Billing is generally based on subscribers’ use of the service, so in most
cases cash flows depend on water consumption, which is generally constant over time. However,
the agreements usually incorporate periodic tariff review clauses to ensure the recoverability of the
investment made by the concessionaire, in which future tariffs are set on the basis of consump-
tion in previous periods and other variables such as inflation. In order to carry out their activities,
the concessionaires build or receive the right to use the distribution and sewerage networks, as
well as the complex installations necessary for drinking water treatment and purification. The
concession periods for this type of concession range from different periods, up to a maximum of
75 years, and the facilities revert to the concession grantor at the end of the concession period,
without receiving any compensation.
In most of the fully consolidated agreements, the amount of the collections depends on the use
made of the service and is therefore variable, as the concession holder bears the demand risk,
which is why they are recorded as intangible assets. However, in exceptional cases, mainly in the
case of desalination plants, payment is received on the basis of the cubic metres actually desal-
inated, with the grantor guaranteeing a minimum insured level irrespective of volume, whereby
such guaranteed amounts are classified as financial assets as they cover the fair value of the
construction services.
The main activity of the toll road and tunnel concessions is the management, promotion, devel-
opment and operation of land transport infrastructures, mainly toll roads and tunnels. It includes
both the construction and the subsequent conservation and maintenance of the aforementioned
infrastructures over a long concession period, which can range from 25 to 75 years. Invoicing is
usually based on traffic intensity, both through direct vehicle tolls and shadow tolls, so cash flows
are variable in relation to the aforementioned traffic intensity, and generally show an increasing
trend as the concession period progresses, which is why, as the concessionaire bears the de-
mand risk, they are recorded as intangible assets. The agreements generally comprise both the
construction or improvement of the infrastructure over which the concessionaire receives a right
of use, and the provision of maintenance services, with the infrastructure reverting at the end of
its useful life to the grantor, usually without compensation. In certain cases, compensation mech-
anisms exist, 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.
The “Other” activity mainly includes agreements relating to the construction, operation and main-
tenance of waste management facilities in Spain, the United Kingdom and the United States.
The agreements incorporate price revision clauses based on various variables, such as inflation,
energy costs or wage costs. For the classification of concessions as intangible or financial assets,
the contracts have been analysed to determine which part of the agreement bears the demand
risk. In those agreements in which billing is determined solely on the basis of the fixed charge and
a variable amount depending on the tonnes treated, given that the latter is residual and the cost
of construction services is substantially covered by the fixed charge, the entire concession has
been considered as a financial asset, except in the case of the Buckinghamshire and Edinburgh
plants (both in the UK), in which the intangible component is significant and are therefore recorded
as mixed models.
It should also be noted that the concession companies in which the Group has holdings are
obliged, in accordance with the concession agreements, to acquire or construct, during the
concession period, fixed assets for an amount of €176,283 thousand at 31 December 2021
(€124,031 thousand at 31 December 2020).
Finally, it is worth mentioning that the recoverable value of the main concession assets has been
re-estimated in 2021. As a result of the analysis carried out, no impairment was shown to be
necessary given that a substantial part of the concession assets are related to the water and
environment businesses, activities that have generally been considered as “core” in the different
jurisdictions, being particularly resilient to the impacts of the pandemic. In addition, a significant
portion of the concessional asset portfolio corresponds to agreements not subject to demand
risk, which significantly reduces the risk of impairment.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 40 of 144
_ 302
12. Investments accounted
for using the equity method
a) Joint ventures
The breakdown of this caption by company is shown in Annexe II to these annual accounts, which
lists the joint ventures.
This heading includes the value of investments in companies accounted for using the equity
method, as well as non-current loans granted to these companies which, as indicated in note
2.b), is applied to both joint ventures and associates, the breakdown of which is as follows:
Joint ventures
Investment value
Loans
Associates
Investment value
Loans
2021
200,291
72,283
128,008
333,551
133,030
200,521
533,842
2020
181,937
40,842
141,095
540,849
382,126
158,723
722,786
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 41 of 144
_ 303
The movements for the business years 2021 and 2020 by item are as follows:
Balance at 31
December 2020
Profit/(loss) for
the year (note
27.g)
Distributed
Dividends
Changes in the fair
value of financial
instruments allocated
to reserves
Committee
Sociedad Concesionaria Tranvía de Murcia, S.A.
As Cancelas Siglo XXI, S.L.
Orasqualia for the Development of the Waste Treatment
Plant S.A.E.
Zabalgarbi, S.A.
Mercia Waste Management Ltd.
Atlas Gestión Medioambiental, S.A.
Ibisan Sociedad Concesionaria, S.A.
Ecoparc del Besós, S.A.
Construcciones Olabarri, S.L.
Empresa Municipal de Aguas de Benalmádena, S.A.
Aguas de Langreo, S.L.
FM Green Power Investments, S.L.
Constructora Nuevo Necaxa Tihuatlán, S.A. de C.V.
Rest
Total joint ventures
43,222
–
11,977
16,060
11,782
9,808
8,204
7,803
5,735
4,760
4,260
16,462
–
41,864
181,937
1,856
535
1,617
3,024
4,712
1,186
1,889
2,192
86
285
(29)
17,672
(1,136)
1,575
35,464
–
–
–
(3,000)
(8,696)
(2,365)
(2,454)
(2,813)
–
(180)
–
–
–
(2,395)
(21,903)
–
–
–
(2,250)
–
–
808
207
–
–
–
–
–
7,289
6,054
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Conversion
differences
and other
movements
–
36,719
991
–
916
(2)
(46)
–
(1)
(92)
(25)
(41,423)
22,124
(7,335)
11,826
Change in
credits granted
1,195
–
2
–
–
–
–
–
–
(789)
(365)
–
(20,988)
7,858
(13,087)
Balance at
31 December
2021
46,273
37,254
14,587
13,834
8,714
8,627
8,401
7,389
5,820
3,984
3,841
–
–
41,567
200,291
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 42 of 144
_ 304
Balance at
31 December
2019
Profit/(loss) for
the year (note
27.g)
Distributed
Dividends
Changes in the fair
value of financial
instruments allocated
to reserves
Committee
Conversion
differences
and other
movements
Sociedad Concesionaria Tranvía de Murcia, S.A.
FM Green Power Investments, S.L.
Zabalgarbi, S.A.
Orasqualia for the Development of the Waste Treatment
Plant S.A.E.
Mercia Waste Management Ltd.
Atlas Gestión Medioambiental, S.A.
Ibisan Sociedad Concesionaria, S.A.
Ecoparc del Besós, S.A.
Empresa Municipal de Aguas de Benalmádena, S.A.
Constructora Nuevo Necaxa Tihuatlán S.A. de C.V.
OHL CO Canada & FCC Canada Ltd. Individual
North Tunnels Canada Inc.
Rest
Total joint ventures
40,745
17,074
17,234
11,735
10,682
11,933
7,291
6,638
5,700
–
–
6,978
49,422
185,432
1,323
22,329
2,637
1,143
4,307
751
544
2,782
273
(1,565)
(32)
(12)
3,689
38,169
–
(26,410)
(3,000)
–
(2,602)
(2,876)
–
(1,834)
(346)
–
–
–
(2,464)
(39,532)
–
3,022
(811)
–
–
–
369
217
(89)
–
–
–
(376)
2,332
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
447
–
(899)
(605)
–
–
–
–
5,974
(2,317)
120
(990)
1,730
Change in
credits granted
1,154
–
–
(2)
–
–
–
–
(778)
(4,409)
2,349
(7,086)
2,578
(6,194)
Balance at
31 December
2020
43,222
16,462
16,060
11,977
11,782
9,808
8,204
7,803
4,760
–
–
–
51,859
181,937
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 43 of 144
_ 305
In 2021, the column “Translation differences and other movements” includes, on the one hand,
the decrease of €41,423 thousand in FM Green Power Investments, S.L., due to its sale in the
current year (note 5) and, on the other hand, the increase of €36,719 thousand in As Cancelas
Siglo XXI, S.L., owned by the Realia Group, which has been classified as a joint venture in the
same year.
The following are the key financial statement aggregates of the joint ventures in proportion to the
percentage interest held in the joint ventures at 31 December 2021 and 2020.
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Results
Net business turnover
Operating Profit/(Loss)
Profit before tax
Profit attributable to the Parent Company
2021
302,127
161,114
320,000
133,354
2020
783,948
223,706
669,463
311,268
230,669
247,455
49,773
42,469
35,464
44,069
44,078
38,169
The main activities carried out by the joint ventures are the operation of concessions, such as mo-
torways, concessions related to the end-to-end water cycle, urban sanitation activities, tunnels
and passenger transport and the rental of real estate assets.
The change in the balance sheet items between the two years is mainly due to the aforemen-
tioned disposal of FM Green Power Investments, S.L. in the current year.
In relation to joint ventures with third parties outside the FCC Group, guarantees amounting to
€7,564 thousand (€19,885 thousand in 2020) have been provided, mostly to public bodies and
private customers to guarantee the successful completion of the agreements for the Group’s var-
ious activities. The decrease in guarantees between the two years is due to the aforementioned
sale of FM Green Power Investments, S.L. There are no relevant commitments or other significant
contingent liabilities in relation to joint ventures.
In general, the joint ventures consolidated by the Group using the equity method take the legal
form of public or private limited companies and, therefore, as joint ventures, the distribution of
funds to their respective parent companies requires the agreement of the other jointly controlling
shareholders in accordance with the mechanisms established by their corporate agreements.
a) Associates
The breakdown of this caption by company is shown in Annexe III to these annual accounts,
which lists the associated companies.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 44 of 144
_ 306
The movements for the business years 2021 and 2020 by item are as follows:
Balance at
31 December
2020
Profit/(loss)
for the year
(note 27.g)
Distributed
Dividends
Changes in the fair
value of financial
instruments allocated
to reserves
FCC Group PFI Holdings
Realia Business Group
Metro de Lima Línea 2, S.A.
Future Valleys Project Co. Limited
Giant Cement Holding
Aguas del Puerto Empresa Municipal, S.A.
World Trade Center Barcelona, S.A. de S.M.E.
Suministro de Agua de Querétaro, S.A. de C.V.
Tirme Group
Lázaro Echevarría, S.A.
Aigües del Segarra Garrigues, S.A.
A.S.A. Group
Codeur, S.A.
Hormigones y Áridos del Pirineo Aragonés, S.A.
Gestión Integral de Residuos Sólidos, S.A.
Aigües del Vendrell
Cafig Constructores, S.A. de C.V.
Rest
Total associates
82,777
278,104
26,215
24,134
9,973
13,229
10,137
9,135
6,782
8,065
7,182
6,309
6,560
5,940
5,298
5,307
3,518
32,184
540,849
(609)
10,716
3,143
(3,395)
3,132
(371)
443
1,465
3,902
(21)
269
2,421
13
193
33
(19)
2,838
604
24,757
–
–
–
–
–
–
(676)
(1,561)
(2,528)
–
–
(1,485)
(181)
(43)
–
–
(2,079)
(753)
(9,306)
–
901
–
5,423
4,453
–
–
–
–
–
–
(16)
–
–
–
–
–
–
Conversion
differences
and other
movements
1,591
(289,721)
2,326
(98)
769
386
–
286
–
(85)
22
(81)
111
–
–
(19)
220
401
Committee
8,584
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Change in
credits granted
Balance at
31 December
2021
29,152
121,495
–
–
4,909
–
(1,296)
–
–
–
–
–
–
–
–
–
(1)
–
9,034
41,798
–
31,684
30,973
18,327
11,948
9,904
9,325
8,156
7,959
7,473
7,148
6,503
6,090
5,331
5,268
4,497
41,470
333,551
10,761
8,584
(283,892)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 45 of 144
_ 307
Balance at
31 December
2019
Profit/(loss)
for the year
(note 27.g)
Distributed
Dividends
Changes in the fair
value of financial
instruments allocated
to reserves
Realia Business Group
FCC Group PFI Holdings
Metro de Lima Línea 2, S.A.
Aguas del Puerto Empresa Municipal, S.A.
Giant Cement Holding
Suministro de Agua de Querétaro, S.A. de C.V.
Lázaro Echevarría, S.A.
Aigües del Segarra Garrigues, S.A.
Tirme Group
A.S.A. Group
Hormigones y Áridos del Pirineo Aragonés, S.A.
Aigües del Vendrell
N6 (Construction) Limited
Constructora Terminal Valle de México
Concessió Estacions Aeroport L9, S.A.
Aquos El Realito, S.A. de C.V.
Urbs Iudex et Causidicus, S.A.
Rest
Total empresas asociadas
276,540
34,326
25,704
14,548
13,661
10,376
8,041
6,905
7,423
6,264
5,886
5,302
1,035
8,915
63,127
14,483
–
53,556
556,092
2,872
(1,339)
2,882
(385)
(3,737)
1,349
164
277
2,486
1,293
54
19
–
474
12,789
(835)
2,217
2,765
–
–
–
(164)
–
(1,171)
(196)
–
(3,127)
(1,067)
–
–
–
(9,146)
(4,844)
–
–
(808)
23,345
(20,523)
262
–
–
365
1,124
–
56
–
–
16
–
(13)
–
–
(4,140)
–
2,110
20
(200)
Conversion
differences
and other
movements
(1,570)
(525)
(2,371)
–
(1,075)
(1,419)
–
–
–
(197)
–
–
–
178
(9,927)
(6,664)
(4,327)
1,724
Committee
–
14,834
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2
14,836
(26,173)
Change in
credits granted
Balance at
31 December
2020
–
278,104
35,481
–
(1,135)
–
–
–
–
–
–
–
(1)
–
–
(57,005)
(6,984)
–
23,116
(6,528)
82,777
26,215
13,229
9,973
9,135
8,065
7,182
6,782
6,309
5,940
5,307
1,035
421
–
–
–
80,375
540,849
In 2021, in the column “Translation differences and other movements” it is worth highlighting the
decrease of €289,721 thousand generated by the change in the consolidation method of the
Realia Business Group, which, following its takeover (note 5), is now fully consolidated.
In 2020, the “Translation differences and other movements” column includes a decrease of
€9,927 thousand and €4,327 thousand due to the transfer to non-current assets held for sale of
Concessió Estacions Aeroport L9, S.A. and Urbs Iudex et Causidicus, S.A.,respectively (note 4)
and a decrease of € 6,664 thousand as a result of the takeover of control of Aquos El Realito,
S.A. de C.V. (note 4). respectively (note 4) and the decrease of € 6,664 thousand as a result of
the acquisition of control of Aquos El Realito, S.A. de C.V. (note 5). Also, in the column “Variation
in loans granted” there is a decrease of €57,005 thousand in Concessió Estacions Aeroport L9,
S.A. due to the aforementioned transfer to non-current assets held for sale (note 4).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 46 of 144
_ 308
The assets, liabilities, turnover and results for 2021 and 2020 are presented below in proportion
to the percentage interest in the share capital of each associate.
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net business turnover
Operating Profit/(Loss)
Profit before tax
Profit attributable to the Parent Company
2021
568,152
270,297
519,558
171,514
2020
1,463,563
601,179
1,366,879
283,914
375,865
433,155
45,090
33,625
24,757
83,416
42,501
23,345
The variations observed between the two years are mainly due to the change in the consolidation
method of the Realia Business group (note 5) explained above.
With regard to the 37.40% stake in the Realia Business Group at 31 December 2020, it should
be noted that the value of the stake, based on the stock market price, amounted to €206,269
thousand, lower than its book value of €278,104 thousand. However, its recoverable value was
considered to be higher than the stock market value as there were unrealised capital gains on
its real estate assets. The summarised financial information at 31 December 2020 to which the
equity method was applied is presented below:
Non-current assets
Current assets
Cash and equivalents
Other current assets
TOTAL ASSETS
Equity
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
1,013,251
440,637
74,822
365,815
1,453,888
792,231
676,034
196,864
480,813
(7,526)
7,693
(1,810)
116,197
576,698
533,602
43,096
84,959
47,278
37,681
1,453,888
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 47 of 144
_ 309
Revenue
Other income
Operating expenses
Depreciation of fixed and non-current assets
Other operating income/(losses)
Operating Profit/(Loss)
Finance income
Finance costs
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
Corporate 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
–
18,566
(4,005)
14,561
–
14,561
7,693
6,868
13. Joint agreements. joint operations
As indicated in note 2.b), section “Joint arrangements”, the Group companies carry out part of
their activity through participation in contracts that are operated jointly with other non-Group part-
ners, mainly through joint ventures and other entities with similar characteristics, contracts that
have been proportionately included in the accompanying financial statements.
The main aggregates of the jointly operated agreements included under the various headings of
the accompanying consolidated balance sheet and consolidated income statement are present-
ed below, in proportion to the interest held in them, at 31 December 2021 and 2020.
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Results
Net business turnover
Gross Operating Profit/(Loss)
Net Operating Profit/(Loss)
2021
204,452
1,246,213
55,787
2020
208,784
1,206,073
67,603
1,344,532
1,354,315
1,063,186
1,194,580
108,883
69,161
48,541
18,406
Agreements managed through joint ventures, joint ventures and other similar entities imply joint
and several liability for the activity carried out by the participating partners.
In relation to contracts managed jointly with third parties outside the Group, guarantees totalling
€1,429,454 thousand (€1,551,830 thousand in 2020) were provided, mostly to public bodies
and private customers, to guarantee the successful completion of urban sanitation works and
contracts.
The joint ventures have no relevant property, plant and equipment acquisition commitments.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 48 of 144
_ 310
14. Non-current financial assets
and other current financial assets
In 2021 there are no significant changes.
The breakdown of “Equity instruments” at 31 December 2021 and 2020 is shown below:
There are no significant “Non-current financial assets” or “Other non-current financial assets” in
arrears. The most significant items in the accompanying consolidated balance sheet under the
aforementioned headings break down as follows:
2021
Participations equal to or greater than 5%:
a) Non-current financial assets
Non-current financial assets at 31 December 2021 and 2020 are distributed as follows:
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
Rest
Shariket Miyeh Djinet, S.p.a
Cafasso N.V.
Vertederos de Residuos, S.A.
Consorcio Traza, S.A.
Rest
Participations below 5%:
2021
Equity instruments
Derivatives
Collection rights
concession arrangements
Deposits and guarantees
Other financial assets
2020
Equity instruments
Derivatives
Collection rights
concession arrangements
Deposits and guarantees
Other financial assets
–
–
421,883
73,781
73,571
33,700
–
–
–
372
–
621
–
–
–
–
92
–
–
–
33,700
713
421,883
73,781
73,943
569,235
34,072
621
92
604,020
–
–
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
2020
Participations equal to or greater than 5%:
Shariket Miyeh Djinet, S.p.a
Cafasso N.V.
Vertederos de Residuos, S.A.
Consorcio Traza, S.A.
Rest
Participations below 5%:
Resto
% Effective
ownership
Fair value
13.01%
15.00%
16.03%
16.60%
13.01%
15.00%
16.03%
16.60%
10,167
8,777
8,764
3,628
1,869
495
33,700
10,400
8,777
8,764
3,628
1,959
1,112
34,640
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 49 of 144
_ 311
The expected maturities of “Deposits and guarantees”, “Receivables under concession agree-
ments” and “Other financial assets” are as follows:
The details of “Other Current Financial Assets” at 31 December 2021 and 2020 is as follows:
2023
2024
2025
2026
2027 and
beyond
Total
Deposits and guarantees
5,456
2,191
833
1,069
64,232
73,781
Collection rights concession
agreement (notes 3.a)
and 11)
Non-commercial loans and
other financial assets
23,886
23,472
22,989
22,549
328,987
421,883
10,214
8,677
8,989
8,607
37,456
73,943
39,556
34,340
32,811
32,225
430,675
569,607
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 obligations
in the development of the activities of the Group companies, such as deposits for electrical connec-
tions, for the guarantee in the execution of works, for rental of real estate, etc.
b) Other current financial assets
This heading of the accompanying consolidated balance sheet includes the financial deposits
constituted 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
accounted for using the equity method and loans to current third parties.
2021
Derivatives
Collection rights concession
arrangements
Deposits and guarantees
Other financial assets
2020
Collection rights concession
arrangements
Deposits and guarantees
Other financial assets
Financial assets at
amortised cost
Hedging
derivatives
Total
–
43,945
61,643
78,704
184,292
53,252
56,879
118,521
228,652
73
–
–
–
73
–
–
–
–
73
43,945
61,643
78,704
184,365
53,252
56,879
118,521
228,652
Other financial assets mainly comprise current loans and other receivables from joint ventures and
associates amounting to €23,892 thousand (€46,210 thousand in 2020), current loans to third
parties amounting to €29,276 thousand (€30,477 thousand in 2020) and deposits with credit
institutions amounting to €16,654 thousand (€35,417 thousand in 2020).
The average rate of return obtained by these items is in market returns according to the term of
each investment.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 50 of 144
_ 312
15. Inventories
The breakdown of “Inventory net of impairment” at 31 December 2021 and 2020 was as follows:
Real estate
Raw materials and other supplies
804,423
216,302
452,633
225,880
2021
2020
The Group classifies property developments as current on the basis of their production cycle,
distinguishing between property developments in progress and completed developments. Prop-
erty developments in progress are classified as short-cycle when the period to completion is
estimated to be less than twelve months, and as long-cycle otherwise. After the development is
completed, it is classified as a completed property development.
The composition of the balance of the item “Real estate” at 31 December 2021 and 2020 is as
follows:
Construction
Cement
End-to-end Water Management
Environmental Services
Real Estate
Concessions
Corporation
Finished goods
Advances
79,924
80,534
20,469
34,013
6
192
1,164
102,914
71,236
22,474
27,907
–
197
1,152
2021
Land and plots
Short-cycle property developments in progress
Long-cycle property developments in progress
Finished property developments
16,729
69,808
1,107,262
14,813
72,278
765,604
Total
2020
Cost
Impairment
Net value
730,234
44,181
143,819
61,694
979,928
(103,079)
627,155
(800)
(62,537)
(9,089)
43,381
81,282
52,605
(175,505)
804,423
The item “Real estate” includes plots of land for property development, mostly for residential use.
This item also includes property developments in the course of production, for which there are
sales commitments for a final delivery value to customers of €105,518 thousand (€47,100 thou-
sand in 2020). 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.
Land and plots
466,330
(100,393)
365,937
Short-cycle property developments in progress
Long-cycle property developments in progress
Finished property developments
Total
38,074
82,323
40,701
(6,745)
(56,593)
(11,064)
31,329
25,730
29,637
627,428
(174,795)
452,633
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 51 of 144
_ 313
The movements in the various items under the heading “Real estate” in the business years 2021
and 2020 were as follows:
A breakdown of the main real estate products is shown below:
Short-cycle
property
developments
in progresst
Long-cycle
property
developments
in progress
Finished
property
developments
Land and
plots
Estates and promotions Tres Cantos (Madrid)
Estates and promotions Arroyo Fresno (Madrid)
Impairment
Estates and Promotions El Molar (Madrid)
470,828
22,456
84,322
25,921
(238,112)
6,767
17,683
18,249
18,016
(4,615)
Estates and promotions Sant Joan Despí (Barcelona)
Estates and promotions Badalona (Barcelona)
Estates and Promotions Ensanche Vallecas (Madrid)
Estates and Promotions San Gregorio (Zaragoza)
(11,265)
(2,065)
(20,248)
(3,236)
67,932
Estates and Promotions Arroyo Encomienda (Valladolid)
466,330
38,074
82,323
40,701
(174,795)
17,771
40,779
3,686
–
(6,955)
Estates and Promotions Esencia Sabadell (Barcelona)
Estates and Promotions Nueva Condomina Golf (Murcia)
Estates and Promotions Marítimo (Valencia)
Estates and Promotions Valdebebas (Madrid)
Estates and Promotions Torres del Mar (Las Palmas)
(38,243)
(25,592)
2
–
–
–
284,374
(9,080)
57,810
54,496
–
(2)
(716)
(33,503)
6,963
Estates and Promotions Las Glorias (Barcelona)
Other properties and developments
2021
190,411
68,407
53,060
43,180
38,207
25,136
13,800
12,230
12,040
11,610
10,850
9,910
9,330
9,320
2020
200,366
59,406
–
66,889
35,804
–
–
–
–
–
–
–
–
–
296,932
804,423
90,168
452,633
The increases shown in the table above with respect to 2020 are due, on the one hand, to the
balances contributed by the Realia Business Group, as indicated above, and, on the other hand,
to new developments under development and the materialisation of commitments to purchase
plots of land during the year.
Property inventories are valued at the lower of acquisition or production cost adjusted, where
appropriate, to market value.
Balance at 31
December 2019
Additions or
allocations
Disposals,
derecognitions or
reductions
Balance at 31
December 2020
Additions or
allocations
Disposals,
derecognitions or
reductions
Translation
differences
Change in scope,
transfers and other
changes
Balance at 31
December 2021
730,234
44,181
143,819
61,694
(175,505)
In 2021, “Changes in scope, transfers and other movements” mainly includes the incorporation
of the Realia Business Group, following its takeover, amounting to €334,317 thousand (note 5).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 52 of 144
_ 314
In order to determine whether impairment exists, the Group has estimated the fair value of the
main assets comprising its real estate inventory portfolio through independent third parties (TIN-
SA, Aguirre Newman and GESVALT). 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. The Dynamic Residual
Method is the basic, essential and fundamental method used in the assessment of land and
property, and is the most widely accepted method by real estate market participants. However,
as it uses different variables in its operating scheme, the data to be used as variables must be
extracted directly from the market, through the instrumental use of the benchmarking method.
Through the application of the comparison method, the necessary comparable data are obtained
by means of an analysis of the real estate market based on concrete information, which can be
used as variables in the dynamic residual method. In the aforementioned selection, the values of
those variables that are abnormal have been previously checked in order to identify and eliminate
those from transactions and offers that do not meet the conditions required in the definition of fair
value, as well as those that could include speculative elements or those that include particular
conditions specific to a specific agent and which are far removed from the reality of the mar-
ket. After defining, determining and specifying the variables to be used in the dynamic residual
method, the value of the land, discounted to the closing date of the accompanying consolidated
financial statements, is calculated considering the future flows associated with the development
and promotion of this land, both collections and payments, based on market price assumptions
(basically sale and construction prices) and development, construction and marketing periods in
accordance with the circumstances of each specific case.
For the assessments carried out by the independent expert for completed properties, the assess-
ment method used is that of direct comparison with market transactions.
These fair values are extremely sensitive to stress situations or needs to liquidate the asset within
a shorter time frame than the assessment. No significant impairment of real estate assets oc-
curred in 2021, as there was previous comfort in prior years’ assessments.
The key assumptions considered in making the assessments are:
– Temporary deadlines affecting the obtaining of licences and the commencement of urbanisa-
tion and/or construction works.
– Sales range: which affect both a range of sales prices, and the percentage and timing of mar-
keting, and the actual and effective sale of the different properties.
– Discounted rates of cash flows generated that reflect risk and time value of money.
In business year 2021 the total accumulated balance of impairment of property inventories
amounts to €175,505 thousand (€174,795 thousand in 2020).
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.
16. Commercial debtors, other accounts
receivable and other current assets
a) Trade receivables
This heading of the accompanying consolidated balance sheet includes the value of the produc-
tion and services rendered pending collection, valued as indicated in Note 3.s), which provide the
various Group activities and which are the basis of the operating profit.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 53 of 144
_ 315
The following is the breakdown of “Receivables external to the Group” at 31 December 2021 and
2020:
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)
2021
1,046,885
676,371
67,133
54,825
2020
934,499
589,130
67,336
60,129
1,845,214
1,651,094
(357,807)
(403,626)
Total trade receivables for sales and services
1,487,407
1,247,468
The total shown corresponds to the net balance of debtors, after taking into account adjustments
for bad debt risk amounting to €212,501 thousand (€246,764 thousand at 31 December 2020)
and deducting the item for advances received for orders shown under “Trade and other payables”
on the liabilities side of the accompanying consolidated 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
2021
58,238
266,083
115,391
46
439,758
2020
51,739
276,540
113,744
111
442,134
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.
The item “Certified production receivable and sales receivables” mainly includes the amount of
certifications issued to customers for work performed in the Construction segment amounting to
€239,180 thousand (€242,051 thousand at 31 December 2020) and services rendered by the
other segments amounting to €807,705 thousand (€692,448 thousand at 31 December 2020),
pending collection at the consolidated balance sheet date. In general, there are no disputes in
relation to the above.
The difference between the amount of production recorded at inception for each of the works
and contracts in progress, assessed according to the criteria set out in note 3.s), and the amount
certified up to the date of the consolidated financial statements is recorded as “Production exe-
cuted pending certification”.
The heading “Completed production pending certification” includes completed work pending cer-
tification corresponding to the construction agreements carried out by the Group amounting to
€342,375 thousand (€298,199 thousand at 31 December 2020). The aforementioned balance
mainly includes the differences between the production executed, valued at selling price, and the
certification carried out to date in accordance with the contract in force, amounting to €313,075
thousand (€274,844 thousand at 31 December 2020), i.e. production recognised according to
the degree of progress arising from differences between the time at which the production of the
work, covered by the contract signed with the customer and approved by the latter, is executed
and the time at which the latter proceeds to its certification.
In addition, the heading “Production executed pending certification” includes services rendered
mainly in the Environment and Water activities which are invoiced more frequently than month-
ly, basically corresponding to work carried out in the normal course of business amounting to
€249,179 thousand (€232,455 thousand at 31 December 2020).
The amount of customer receivables assigned to financial institutions without recourse against
Group companies in the event of default amounted to €2,187 thousand at year-end (at 31 De-
cember 2020: €111,103 thousand). 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 receivables for sales”. The variation
between the two years is due to the decrease of €107,133 thousand non-recourse disposals of
the End-to-end Water Management activity as a result of financial optimisation policies (note 20).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 54 of 144
_ 316
b) Other receivables
The breakdown of the “Other receivables” at 31 December 2021 and 2020 was as follows:
17. Cash and cash equivalents
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
2021
88,648
61,581
106,264
1,672
2020
108,169
61,896
115,496
1,561
258,165
287,122
This heading mainly includes amounts paid by the Group in relation to certain agreements for
the provision of services, which have not yet been recognised as expenses in the accompanying
income statement as they had not yet been accrued at the end of these financial statements.
This item includes the Group’s cash and cash equivalents, as well as bank deposits and deposits
with an original maturity of three months or less. These balances were remunerated at market
interest rates in both 2021 and 2020.
The breakdown by currency of the cash and cash equivalents position is as follows for the busi-
ness years 2021 and 2020:
Euro
Pound sterling
United States dollar
Romanian leu
Czech koruna
Algerian dinar
Other European currencies
Latin America (various currencies)
Rest
Total
2021
1,041,926
214,423
74,134
49,960
30,318
22,730
3,157
42,746
56,131
2020
754,035
185,751
95,609
21,532
22,322
27,317
1,320
61,544
52,679
1,535,525
1,222,109
Under certain financing agreements, especially project finance, there is an obligation to hold min-
imum amounts as security for obligations under such agreements amounting to €317.1 million.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 55 of 144
_ 317
18. Equity
On 28 July 2021, the public deed to increase the Company’s paid-up capital with a charge to
voluntary reserves was registered at the Barcelona Companies Registry.
The accompanying Statement of Changes in Total Equity at 31 December 2021 and 2020 shows
the evolution of equity attributed to the shareholders of the Parent and non-controlling interests
in the respective years.
In addition, at the Ordinary General Shareholders’ Meeting held on 2 June 2020, a decision was
taken to distribute a scrip dividend, with the following characteristics:
– Maximum value of the scrip dividend: 156,905,960.40 euros, equivalent to 0.40 euros per
The Ordinary General Shareholders’ Meeting held on 29 June 2021 resolved to distribute a scrip
dividend by issuing new ordinary shares with a par value of 1 euro each, without a share premi-
um, of the same class and series as the shares already in circulation, with a charge to reserves.
This resolution also included an offer by the company to acquire the free allocation rights at a
guaranteed price.
At its meeting on 29 June 2021, 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: 163,642,647.20 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 25. Sharehold-
ers who chose this option also received a compensatory cash dividend of 0,416 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 of the free-of-charge allocation rights on 20 July 2021, hold-
ers of 401,675,483 (98.18%) rights opted to receive new shares, while shareholders holding
7,431,135 rights opted to accept the Company’s offer to acquire their rights at a guaranteed
price. Accordingly, the final number of bonus shares with a par value of 1 euro issued was
16,067,018 shares, corresponding to 3.93% of the share capital prior to the increase, result-
ing in a cash outflow for the compensatory dividend and also for the rights acquired by the
Company of €9,631 thousand.
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 23. Sharehold-
ers 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 opted to accept the company’s offer to acquire their rights at the guaranteed
price. Accordingly, a total of 16,841,792 bonus shares with a nominal value of 1 euro were
issued, representing 4.29% of the capital stock prior to the increase.
In October 2021, F C y C, S.L. acquired a stake representing 13.12% of the share capital of
Realia Business, S.A. (note 5) in which it previously held significant influence with 37.40%. This
transaction has enabled the FCC Group to take control of the Realia subgroup, which has led to
an amount of €797,010 thousand being recorded under “Minority interests” in the accompanying
consolidated balance sheet.
Additionally, in October, the company Jezzine Uno, S.L.U. joined the FCC Group through a
non-monetary capital increase in F C y C, S.L., fully subscribed by Soinmob (note 5), so that the
latter now holds 19.97% of F C y C, S.L.’s share capital. Consequently, an amount of €226,200
thousand has been recorded under “Minority interests”.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 56 of 144
_ 318
On 21 December 2021, the Realia Group, through its subsidiary Realia Patrimonio, S.L.U., ac-
quired an additional 37.11% stake in Hermanos Revilla, S.A. (note 5). With this acquisition, the
Realia Group’s direct and indirect shareholding in the aforementioned company amounts to
87.76%. Since prior to the acquisition, the FCC Group already had control of both investees, the
difference between the purchase price and the book value of the minority interests acquired has
generated a decrease in reserves of €2,946 thousand.
On 29 June 2020, the investee company FCC Aqualia, SA 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, S.A. de C.V. to be fully consolidated, which led to the recording of €8,671 thousand under
the heading “Minority interests” in the accompanying 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
transaction resulted in the recording of €60,718 thousand under the heading “Minority inter-
ests” and €74,215 thousand in reserves, additionally the assessment adjustments increased by
€55,300 thousand as the proportional part of the aforementioned existing adjustments prior to
the sale transaction was attributed to the minority interests.
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.
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 to Control Empresarial de Capitales, S.A. de C.V.
On 27 November 2020, Dominum Dirección y Gestión, S.L. transferred shares in Fomento de
Construcciones y Contratas, S.A. representing 7% of its share capital to Finver Inversiones 2020,
S.L.U.
Following the aforementioned movements, in relation to the part of the capital held by other com-
panies, directly or through their subsidiaries, when it exceeds 10%, according to the information
provided, the company Control Empresarial de Capitales, S.A. de C.V., controlled by the Slim
family, holds directly and indirectly, at the date of preparation of these accounts, 69.66%. Further-
more, 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 4.54% of the capital. Esther Koplowitz Romero de Juseu also holds 138,599 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 2021 and 2020 is as follows:
I. Equity attributable to the Parent Company
a) Capital
The share capital of Fomento de Construcciones y Contratas, S,A. comprises 425,173,636 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 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.
Reserves of the Parent
Consolidation reserves
b.1) Reserves of the Parent
2021
1,667,259
475,333
2,142,592
2020
1,442,223
468,515
1,910,738
This corresponds to the series of reserves set up by Fomento de Construcciones y Contra-
tas, S.A., parent of the Group, mainly based on retained profits and capital gains and, where
appropriate, in compliance with the different applicable legal provisions.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 57 of 144
_ 319
The breakdown at 31 December 2021 and 2020 is as follows:
Reserve for redeemed capital
Share premium
Legal reserve
Reserve for redeemed capital
Voluntary reserves and losses from previous years
2021
2020
1,673,477
1,673,477
81,821
6,034
(94,073)
1,667,259
78,453
6,034
(315,741)
1,442,223
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
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 €3,213 thousand as legal reserve in the distribution of 2021 profit.
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.
Voluntary reserves
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.
b.2) Consolidation reserves
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 2021 and 2020 is as
follows:
Environment
Water
Construction
Cement
Real Estate
Corporation
2021
259,873
172,730
37,670
42,441
(31,376)
(6,005)
475,333
2020
130,288
145,213
29,715
36,416
(6,918)
133,801
468,515
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 58 of 144
_ 320
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 2021 and 2020 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.
The movement and balance of treasury shares at 31 December are set out below:
Changes in the fair value of financial instruments
Translation differences
2021
2020
(722)
(113,411)
(125,966)
(149,733)
(114,133)
(275,699)
Balance at 31 December 2019
Acquisitions
Balance at 31 December 2020
Acquisitions
Balance at 31 December 2021
(16,068)
(1,944)
(18,012)
(8,662)
(26,674)
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 comprehen-
sive income (note 14) and of cash flow hedging derivatives (note 23) are included in this heading.
The breakdown of the adjustments due to a change in the fair value of the financial instruments
as at 31 December 2021 and 2020 is as follows:
Fomento de Construcciones
y Contratas, S.A.
2021
2020
Number of
shares
Amount
Number of
shares
Amount
Financial assets at fair value with changes
in other comprehensive income
2,410,758
(26,674)
1,544,773
(18,012)
Vertederos de Residuos, S.A.
Rest
TOTAL
2,410,758
(26,674)
1,544,773
(18,012)
Financial derivatives
As at 31 December 2021, the shares of the Parent Company, owned by it or by subsidiaries,
represent 0.57% of the capital stock (0.38% as of 31 December 2020).
Concessió Estacions Aeroport L9, S.A. (nota 4)
Cedinsa Group (note 4)
Urbs Iudex et Causidicus, S.A. (nota 4)
Future Valleys Project Co. Limited
FCC Group - PFI Holdings
Green Recovery Group
Ibisan Sociedad Concesionaria, S.A.
FM Green Power Investments, S.L.
Rest
2021
2020
7,730
7,785
7,657
73
–
–
–
5,402
(5,391)
(1,937)
(1,668)
–
(4,858)
7,657
128
(8,452)
(133,751)
(83,369)
8,054
(29,749)
–
(9,479)
(7,236)
(2,429)
(2,181)
(7,362)
(722)
(125,966)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 59 of 144
_ 321
The decrease in this heading is mainly due to the sale to Vauban Infrastructure Partners of 51%
of the Cedinsa Group, 49% of Concessió Estacions Aeroport L9, S.A. and 29% of Urbs Iudex et
Causidicus, S.A. (note 4).
d.2) Translation differences
The amounts comprising this item for each of the most significant companies at 31 December
2021 and 2020 are as follows:
United Kingdom:
FCC Environment Group (UK)
Green Recovery Group (Note 5)
Dragon Alfa Cement Limited
Rest
United States of America:
FCC Group Construcción de América
Giant Cement Holding, Inc.
Rest
Egypt:
Orasqualia Devel. Waste T.P. S.A.E.
Egypt Environmental Services, S.A.E.
Rest
Tunisia
2021
2020
(54,249)
(36,687)
(3,084)
(55,100)
(52,281)
(3,453)
(7,563)
(101,583)
(13,566)
(124,400)
5,918
(1,567)
3,738
(5,874)
(3,633)
8,089
11,911
(2,526)
(6,354)
(6,380)
(3,764)
(2,480)
(11,987)
(2,725)
(12,869)
Societé des Ciments d’Enfidha
(25,927)
(25,927)
Rest
Latin America:
(808)
(26,735)
(833)
(26,760)
FCC Group Construcción de América
3,130
11,054
14,184
2,790
9,366
12,156
Rest
Resto Divisas
Resto
4,621
4,621
(891)
(891)
(113,411)
(149,733)
The change in the year is mainly due to the depreciation of the € against the pound sterling and
the US dollar.
The net investment before deducting non-controlling interests in currencies other than the euro
(converted to euros in accordance with note 3.k), grouped by geographic markets is as follows:
United Kingdom
Argelia
Latin America
Czech Republic
United States of America
Rest
e) Earnings per share
2021
517,829
171,624
179,721
78,180
53,077
190,262
1,190,693
2020
407,302
157,335
124,810
70,128
44,161
137,311
941,045
3,031
Basic earnings per share are obtained by dividing the profit attributable to the parent company by
the weighted average number of ordinary shares outstanding during the year, with earnings per
share of €1.40 in 2021 (€0.66 in 2020).
Profit or Loss
Profit attributed to the Parent
Outstanding shares
Weighted average shares
Earnings per share (in euros)
2021
2020
580,135
262,179
414,184,156
399,978,217
1.40
0.66
As at 31 December 2021 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 60 of 144
_ 322
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
2021 and 2020 is as follows:
19. Non-current and current provisions
The detail of the provisions at 31 December 2021 and 2020 is as follows:
Non-current
1,167,340
1,064,384
2021
2020
Liabilities for long-term employee benefits
16,831
Dismantling, removal and restoration of
fixed assets
Environmental actions
Litigation
Contractual and legal guarantees and
obligations
Actuaciones mejora o ampliación
capacidad en concesiones
110,001
290,115
67,705
82,613
246,983
Other provisions for risks and expenses
353,092
24,347
98,586
261,914
53,548
70,769
167,281
387,939
Current
147,874
195,152
Close-outs and losses on construction
contracts
Other provisions
128,271
19,603
175,456
19,696
Equity
Capital
Reserves
Results
Total
11,132
71,050
5
1,196
835,054
331,065
75,699
15,824
14,455
69,988
(1,972)
1,100
860,641
472,103
73,732
18,120
6,197
(10,796)
13,574
8,975
89,580
1,246,846
97,145
1,433,571
2021
F C y C Group (note 5)
FCC Aqualia Group
Green Recovery Group (Note 5)
Cementos Portland Valderrivas
Group
Rest
2020
FCC Aqualia Group
Cedinsa Group
Green Recovery Group (Note 5)
Cementos Portland Valderrivas
Group
71,050
118,912
5
1,869
283,182
(14,260)
59,175
17,955
67,884
4,611
306
2,370
422,116
109,263
59,486
22,194
Rest
6,844
(5,772)
6,250
7,322
198,680
340,280
81,421
620,381
The main change in this heading in 2021 is due to the full consolidation of the Realia Business
subgroup and the entry of a minority shareholder in F C y C, both operations mentioned above
(note 5).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 61 of 144
_ 323
The changes in the provisions heading in 2021 and 2020 were as follows:
Non-current
provisions
Current
provisions
Balance at 31 December 2019
1,130,199
249,581
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
11,180
4,889
86,053
(111,568)
–
–
–
(4,943)
(46,699)
(2,787)
Balance at 31 December 2020
1,064,384
195,152
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
Balance at 31 December 2021
15,117
(7,851)
103,170
(130,728)
–
–
–
(43,617)
(10,448)
6,787
The item “Applications (payments)” includes €38,946 thousand (€9,149 thousand at 31 December
2020) for the application of provisions for risks and expenses related to construction work in the
Construction business. Also included are payments of €22,369 thousand (€20,401 thousand eu-
ros at 31 December 2020), and €11,189 thousand (€13,651 thousand at 31 December 2020) for
environmental actions, and for replacement and major repair actions on concessions, respectively.
The above movements have an impact on the heading “Other adjustments to profit/(loss) (net) in
the consolidated cash flow statement. Additionally, €19,767 thousand (€12,419 thousand at 31
December 2020) and €9,690 thousand (€9,112 thousand at 31 December 2020) are included for
actions to improve or expand capabilities in concessions, and provisions for decommissioning and
retirement of fixed assets, respectively. These amounts have an impact on the consolidated state-
ment of cash flows under “Payments for investment in property, plant and equipment, intangible
assets and investment property”.
The movement in current provisions is mainly due to construction losses in the Construction busi-
ness.
The item “Changes in scope, transfers, translation differences and other movements” in 2020 in-
cludes €59,716 thousand as a result of the transfer to non-current liabilities held for sale of provi-
sions belonging to the Cedinsa subgroup (note 4).
The provisions shown in the accompanying consolidated balance sheet are considered to cover the
liabilities that may arise in the course of the Group’s various activities.
The schedule of expected payments at 31 December 2021, as a result of the obligations covered
by non-current provisions, is as follows:
1,167,340
147,874
Liabilities for long-term employee benefits
The item “Provisions (reversals)” includes provisions for environmental measures amounting to
€37,422 thousand (35,844 thousand euros at 31 December 2020), and also provisions for future
replacement or major repairs to concessions amounting to €15,270 thousand (€23,485 thousand
at 31 December 2020). It also includes provisions for litigation related to Construction activity
works amounting to €29,724 thousand (reversal of €7,051 thousand at December 2020).
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
Other provisions for risks and expenses
Up to 5 years
Up to 5 years
Total
4,697
71,345
53,713
60,099
57,463
12,134
38,656
236,402
7,606
25,150
16,831
110,001
290,115
67,705
82,613
140,632
106,351
246,983
215,921
603,870
137,171
353,092
563,470
1,167,340
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 62 of 144
_ 324
Liabilities for long-term employee benefits
Provisions for litigation
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.
Environmental actions
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.
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
This corresponds to budgeted construction losses in accordance with the assessment principles
set out in note 3.v), and also to the expenses incurred on construction work after completion until
final settlement, systematically determined on the basis of a percentage of the production value
throughout the execution of the work in accordance with experience in the construction activity.
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.
Other provisions for risks and expenses
This heading includes those items not included in the previous denominations, including certain
provisions related to Alpine for €23,832 thousand, which are discussed in greater detail in the
following paragraphs.
The Management of the FCC Group considers that the contingencies relating to the protection
and improvement of the environment at 31 December 2021, 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.
The amount of Other provisions for risks and expenses not related to Alpine covers various risks
arising from the Group’s activity, which in the normal course of business is exposed to claims
mainly due to construction defects or discrepancies in services rendered amounting to €164,238
thousand (€194,964 thousand at December 2020), and also to tax and fiscal claims amounting
to €29,641 thousand (€28,874 thousand at December 2020). 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 constructive obligations in relation to the invest-
ment in the associate, amounting to €37,788 thousand (December 2020: €33,933 thousand), the
remaining provisions being of lesser significance 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, 2021 saw
no significant changes in terms of the amount reported in the Group’s 2020 Financial Statements.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 63 of 144
_ 325
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.
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 com-
pany. On 25 June 2013, the liquidation of the company was commenced. 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.
As of the date of these consolidated financial statements, the insolvency administrators have
reported recognised liabilities of approximately €1,669 million at AB and €550 million at AH in the
respective liquidation 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.
–
Eight years after the bankruptcy of both companies and having definitively closed the criminal
proceedings, won proceedings brought by bondholders and settled a backdating action, two
proceedings brought by the insolvency administrators against Fomento de Construcciones y
Contratas, S.A. and FCC Construcción S.A. are still pending, in addition to other proceedings
against auditors, former directors and banks involved in the acquisition of bonds issued by AH in
2010, 2011 and 2012 and admitted to trading on the Luxembourg and Vienna stock exchanges
for a combined nominal value of €290 million.
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 a selection of its operating
subsidiary companies to bid for and/or be awarded construction work. As of 31 December 2021,
provision for this item amounted to 23,832 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.
At 31 December 2021, and as far as FCC could be directly or indirectly affected, two commercial
proceedings and one labour proceeding are still in progress:
In April 2015, the bankruptcy administrator of Alpine Holding GmbH filed a claim for €186
million 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. Having filed appeals and cassation appeals
for procedural infringement, in April 2020, the Austrian Supreme Court declared the need to
return the Orders to the Court of Instance so that the testimonial evidence could be practiced
in person before the Judge of First Instance. Such testimonial statements took place in June
2021 and, in light of the mandate contained in the Supreme Court Judgment, the judge has
yet to decide whether to consider the procedure closed or whether to agree to the practice of
the expert evidence requested by the bankruptcy trustee AH.
In April 2017, a Group company, Asesoría Financiera y de Gestión S.A. was notified of a suit
in which an AB bankruptcy administrator made a joint and several claim against the former
finance director of Alpine Bau GmbH and against Asesoría Financiera y de Gestión S.A. for the
payment of €19 million 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., alleg-
edly 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 sub-
sidiary companies of AB and Asesoría Financiera y de Gestión S.A. would not have caused
any loss to AB. Given the multiplicity of allegations made by the bankruptcy administrator, the
judge is weighing the request for a complementary expert report.
– 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 claimant argues that this amount represents the damage to the bank-
ruptcy estate caused by the alleged delay in initiating insolvency proceedings. In the event that
the insolvency administrator’s claim is successful and a final judgement is handed down, the
subsidiary liability of the FCC Group could be raised in a remote case due to the explanation
contained in note 16 on contingent liabilities.
In relation to these lawsuits, the FCC Group and its legal advisors have not assessed as probable
future cash outflows prior to the issuance of these consolidated financial statements and, therefore,
no provision has been made, as the Group considers these to be contingent liabilities (note 26).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 64 of 144
_ 326
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
El detalle de las emisiones de obligaciones y empréstitos vigentes es el siguiente:
Non-current
Current
Total
2020
FCC Aqualia, S.A.
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
Severomoravské Vodovody a Kanalizace Ostrava, A.S.
FCC Medio Ambiente Reino Unido, S.A.U.
205,830
130,237
2,460
6,178
302,300
208,290
136,415
2,780,935
449,346
3,230,281
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 in
the amount of €700 million with an annual remuneration of 1,413% and maturing in 2022,
which is why it was reclassified as current in 2021, and the second in the amount of €650
million with an annual remuneration of 2,629% and maturing in 2027.
Non-current
Current
Total
Both issues have the following guarantees:
2021
FCC Aqualia, S.A.
650,598
714,925
1,365,523
FCC Servicios Medio Ambiente Holding, S.A.U.
1,096,168
181,600
1,277,768
Severomoravské Vodovody a Kanalizace Ostrava, A.S.
Fomento de Construcciones y Contratas, S.A.
FCC Environment UK Group
–
–
132,038
219,605
30,000
6,609
219,605
30,000
138,647
, 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 Ai-
gues 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 Tec-
nología 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
1,878,804
1,152,739
3,031,543
extend the pledge to 99.5%; and on 100% of Aqualia Mexico, SA de CV.
, Pledge on the collection rights over certain accounts.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 65 of 144
_ 327
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 22 September 2021, alongside the rating of FCC Aqualia (BBB⁻).
The balance at 31 December 2021 shown for this item amounts to €1,365,523 thousand
(€1,365,301 thousand in 2020), including €15,301 thousand for accrued and unpaid in-
terest (€15,301 thousand in 2020).
At 31 December 2021, the bond prices were 100,263% for the €700 million bond and
109,749% for the €650 million bond.
FCC Aqualia, S.A. was granted a credit line of €900,000 thousand as a contingent credit
facility, which matures on 4 May 2022, extendable at the Company’s discretion for a fur-
ther six months, to cover the amount of FCC Aqualia’s and SmVak’s obligations, which
mature in June and July 2022, respectively. This facility has accrued a structuring fee of
€900 thousand, of which €450 thousand has been recognised and is pending disburse-
ment at 31 December 2021. On 2 February 2022, an extension of the maturity of the credit
facility was signed at the Company’s discretion until 31 January 2023.
– On 4 December 2019, FCC Servicios Medioambiente Holding S.A.U., successfully completed
two simple bond issues. One in the amount of €600 million, with an annual remuneration of
0,815% and maturing in 2023; and the second in the amount of €500 million, with an annual
remuneration of 1,661% and maturing 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 2 December
2021, 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 second anniversary of the issuance, November
2021, the certification body DNV GL confirmed that more than 93% of the total funds raised
were already applied to eligible and environmentally sustainable projects.
The balance at 31 December 2021 shown for this item amounts to €1,097,267 thousand
(2020: €1,096,075 thousand), including €1,100 thousand for accrued and unpaid interest
(2020: €1,207 thousand).
At 31 December 2021, the bond prices were 101,376% for the €600 million bond and
105,152% for the €500 million bond.
FCC Servicios Medioambiente Holding S.A.U. also registered in July 2020 and renewed in
2021 a Euro Commercial Paper Programme (ECP) on the Irish stock exchange (Euronext
Dublin) for €400 million, at a fixed interest rate and with a maximum maturity of one year, which
allows issues 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 2021 the outstanding amount was €180.5 million spread over different ma-
turities from 4 to 6 months.
– Since November 2018, Fomento de Construcciones y Contratas, S.A. has had a Euro Com-
mercial Paper Programme (ECP) registered on the Irish stock exchange (Euronext Dublin) for
an amount of €600 million at December 2021, at a fixed interest rate and with a maximum
maturity of one year, which allows it to issue notes with maturities of between 1 and 364 days
from the issue date, in order to meet the financial needs of the Group’s parent companies.
At 31 December 2021 the outstanding amount was €30,000 thousand (at 31 December
2020: €302,300 thousand), maturing in 2 months.
– The company 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.
The balance at 31 December 2021 shown for this item amounts to €219,605 thousand (at
31 December 2020 it was €208,290 thousand), including €2,598 thousand for accrued and
unpaid interest (€2,460 thousand in 2020).
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 66 of 144
_ 328
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.
6,342 thousand pounds were repaid in 2021.
2020
The guarantees of this issue are detailed in section 3. of this note.
The balance at 31 December 2021 shown for this item amounts to €138,647 thousand
(€136,415 thousand in 2020).
b) Non-current and current payables to credit institutionss
The breakdown at 31 December 2021 and 2020 is as follows:
Non-current
Current
Total
Credits and loans
Debts without recourse to
the parent
Debts with limited
recourse for project
financing:
FCC Medio Ambiente
Reino Unido, S.A.U.
Aquajerez, S.L.
Rest
Non-current
Current
Total
20,011
204,697
382,891
156,079
19,690
36,652
176,090
224,387
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
2021
Credits and loans
Debts without recourse to
the parent
Debts with limited
recourse for project
financing:
FCC Medio Ambiente
Reino Unido, S.A.U.
Aquajerez, S.L.
Rest
–
965,765
318,603
200,322
230,871
26,996
200,322
1,196,636
The previous table shows three different Debt groups:
345,599
1. Credits and loans
180,659
48,574
89,370
11,572
4,839
10,585
192,231
53,413
99,955
1,284,368
458,189
1,742,557
At 31 December 2021, as in 2020, this section mainly includes the financing facilities of FCC, S.A.
in the form of credit facilities and bilateral loans signed for an amount of 400 million (€648.5 mil-
lion at 31 December 2020) with various financial institutions. At 31 December 2021, the balance
drawn down from these loans was €200 million (€175 million at 31 December 2020).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 67 of 144
_ 329
2. Debts without recourse to the parent
This item mainly includes financing corresponding to the Real Estate, Water, Cement and Services
areas.
– Within the Real Estate Area, since October 2021 and as a result of the takeover of the Realia
Group and the company Jezzine Uno S.L.U. (note 5), a debt of €498.2 million and €334.2
million, respectively, has been incorporated.
The Realia Group’s debt comprises a syndicated loan signed by Realia Patrimonio S.L.U. and
several bilateral financings signed by Hermanos Revilla, S.A.
The syndicated loan was signed by Realia Patrimonio on 27 April 2017, for a total amount of
€582 million, with partial maturities and final maturity in April 2024.
On 27 April 2020, it entered into a non-extinguishing modifying novation of the aforemen-
tioned loan, extending the maturity until 27 April 2025 and renegotiating a reduction in the
margin applicable to the reference rate for the calculation of interest and ratifying the current
guarantees. As a consequence of this novation, the applicable interest rate is Euribor plus a
variable margin based on the Loan to Value ratio.
In addition, the aforementioned company entered into an interest rate swap agreement (IRS)
for 70% of the outstanding balance of the loan to reduce the risk of interest rate fluctuations
and their impact on cash flows associated with the hedged financing (note 23).
This financing requires compliance with a series of financial ratios until maturity. At 31 Decem-
ber 2021, the Company is in compliance with the covenants.
At 31 December 2021 the outstanding balance of this loan is €465.2 million, excluding IFRS
9 assessment adjustments and arrangement costs arising from the granting of the loan in the
amount of €14.1 million and accrued interest in the amount of €1.0 million.
Additionally, the Realia Group includes the company Hermanos Revilla, S.A., which at 31 De-
cember 2021 has credit facilities and loans with a limit of €68 million, of which €46 million have
been drawn down. The maturity of the bilateral loans will occur during the years 2022-2024.
The financing of the company Jezzine Uno S.L.U. corresponds to a loan agreement signed on
19 October 2021, amounting to €335 million, with partial maturities and final maturity on 19
October 2026. The interest rate applicable to this loan is a fixed market rate.
At 31 December 2021, the outstanding balance of this loan is €335 million, excluding loan
arrangement fees of €1.6 million and accrued interest of €0.8 million.
–
–
In the Water Area, the total amount of debt in this section is €203.5 million, including a loan
signed by FCC Aqualia S.A. for €200 million, which is fully drawn down at 31 December 2021.
In the Cement Area, on 29 April 2021 Cementos Portland Valderrivas, SA (CPV) proceeded to
the full voluntary repayment of the syndicated loan in the amount of €115.5 million.
For cancellation of part of the debt, on the same date an intra-group loan was signed between
Fomento de Construcciones y Contratas, S.A. as lender and Cementos Portland Valderrivas,
S.A. as borrower in the amount of €82.5 million and maturing on 29 April 2022.
During 2021, the aforementioned intra-group loan was voluntarily repaid in full. To repay part
of this loan, two bilateral financing operations of €25 million and €50 million were concluded,
maturing in June 2026 and July 2024 respectively. Both loans are fully drawn down at 31
December 2021 and bear interest at Euribor plus a market spread.
CPV also has a subordinated financing agreement for an original amount of €79.5 million, ma-
turing on 29 January 2023. On 19 July 2021 an agreement was signed modifying its variable
interest rate to a fixed market rate.
At 31 December 2021 and 2020, the outstanding balance of this loan is €70.4 million.
– The rest of the debt in this section corresponds to debt in the Services Area, mainly of the FCC
Environment CEE subgroup and other national investees.
In addition, at 31 December 2021 FCC Medio Ambiente S.A.U. has signed and undrawn
credit facilities of €115 million (€323.5 million at 31 December 2020); and the FCC Environ-
ment CEE Group has €22.2 million, of which it has drawn down €0.4 million at 31 December
2021 (€32.9 million signed and undrawn at 31 December 2020).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 68 of 144
_ 330
– The financing of Aquajerez, S.L. was signed in 2016 and amounted to €40 million, for a term
of 15 years with half-yearly repayments from January 2017. During 2019, FCC Aqualia, S.A.,
which already held 51% of this company, acquired the remaining 49% and proceeded to
extend the initial loan to €65 million. At 31 December 2021 the amount of this debt is €53.4
million (57.7 million in 2020).
– Other debt with limited recourse for project financing” includes companies with project fi-
nancing in the areas of Water, Aquos El Realito, S.A. de C.V. with €40.0 million; Environmental
Services, Gipuzkoa Ingurumena Bi, S.A. with €23.4 million; and Concessions, Concesionaria
Túnel de Coatzacoalcos, S.A. de C.V. with €7.5 million.
It was cancelled early in 2021: in the Water Area, the debt of Shariket Tahlya Mostaganem, S.p.A.
whose balance at 31 December 2020 was €32.9 million; and in the Concessions area, the debt
with credit institutions of Autovía Conquense, S.A. which at 31 December 2020 had a balance
of €26.9 million.
As at 31 December 2021 there have been no breaches of financial ratios associated with project
financing debts, and they are not expected to be defaulted during 2022.
The guarantees granted on these loans are real and are based on the financed assets that re-
pay the debt with own flows, without additional guarantees granted by the Parent to pledge the
shares in the vehicle companies that own the aforementioned financial assets that may have been
granted.
3. Debts with limited recourse for project financing
These include all financing secured solely by the project itself and its cash-generating capabilities,
which will support the entire debt service payment, and which, under no circumstances, will be
guaranteed by the parent company Fomento de Construcciones y Contratas, S.A. or any other
FCC Group company.
– FCC Medio Ambiente Reino Unido. The FCC Environment (UK) Group currently has a revolv-
ing credit facility of £30 million undrawn at 31 December 2021 and maturing in December
2023.
In 2018, FCC Energy Ltd, whose assets are the Eastcroft and Allington incinerators, issued
£207.4 million of debt. This debt has a 20-year term (final maturity on 17 June 2038) and three
different tranches, two institutional for an initial total amount of 145 million pounds sterling
described in section a) of this note, and a commercial tranche of 62.4 million pounds sterling.
The interest rate of the commercial tranche is a variable rate hedged with an exchange of
interest that makes it fixed plus an upward margin of up to 2.75% during the life of the project.
2.7 million pounds were repaid from commercial tranche in 2021.
The FCC Energy Ltd financing, being project finance, includes the standard guarantees for
this type of financing, such as the pledge of the company’s shares and the rest of its assets,
which include the companies that operate the two waste incineration plants.
Additionally, in October 2016 FCC Environment Developments Ltd. signed a £142 million
agreement to design, finance, build and operate the Millerhill Recycling and Energy Recovery
Centre (RERC), Midlothian, located on the outskirts of Edinburgh. The plant initially had two
syndicated loans, a £75.71 million loan maturing in August 2042 and a £36.9 million loan
maturing in May 2020. The margins on the loan maturing in 2042 range from 3% to 3.5%.
Write-downs during 2021 amounting to £2.6 million have been made. At the end of 2021 the
outstanding debt to be repaid is 70.2 million pounds sterling.
As a result of the foregoing, at 31 December 2021, of the total bank borrowings of FCC Medio
Ambiente Reino Unido, S.L.U., €59.7 million (€58.8 million at 31 December 2020) relate to
FCC Energy Ltd. and FCC E&M (Edinburgh), an investee of FCC Environment Developments
Ltd, €82.6 million (€80.0 million at 31 December 2020); the remaining debt with limited re-
course for project financing, up to a total amount of €192.2 million, corresponds to the debt
of other companies that make up the FCC Group in the United Kingdom.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 69 of 144
_ 331
The credits and loans in US dollars mainly finance assets in the Construction Area and in 2020
also in Services; those contracted in pounds sterling correspond to the financing of assets of
FCC Environment UK; those contracted in Czech crowns financed in 2020 the operations of FCC
Environment CEE in the Czech Republic; and in the rest of the currencies, in 2021 the financing of
Aquos El Realito, S. A. de C.V. in Mexican pesos in the amount of 40,044 thousand and Qatarat
Saquia Desalination in Saudi Arabian riyals in the amount of €14,354 thousand At 31 December
2020, the Other currencies included the debt of Shariket Tahlya Mostaganem, S.p.A. in Algerian
dinars amounting to €32,903 thousand, which was repaid early in 2021.
c) Other non-current financial liabilities
The breakdown of the debts with credit institutions by currency and amounts available at 31 De-
cember 2021 and 2020 is as follows:
Euros
US
dollars
Pounds
Sterling
Czech
koruna
Rest
Total
2021
Credits and loans
200,076
246
Debt without recourse t
o the parent
Debts with limited recourse
for project financing
1,191,109
91,472
–
–
–
–
192,231
1,482,657
246
192,231
200,322
5,527
1,196,636
61,896
345,599
67,423
1,742,557
–
–
–
–
–
2020
Credits and loans
Debt without recourse
to the parent
Debts with limited recourse
for project financing
175,227
206,876
851
507
–
–
12
176,090
Third party financial debts outside the group
8,741
8,263
224,387
Derivative financial liabilities (Note 23)
Deposits and guarantees received
128,376
–
189,402
–
101,765
419,543
Other concepts
510,479
1,358
189,402
8,741
110,040
820,020
Non-current
Lease debt (Note 10)
2021
2020
367,981
99,940
19,640
65,082
17,182
376,487
115,374
38,504
41,995
16,394
569,825
588,754
“Derivative financial liabilities” mainly include financial derivatives for risk hedging, mainly interest
rate swaps. (note 23).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 70 of 144
_ 332
d) Other current financial liabilitiess
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
2021
2020
The schedule of expected due date of debts with credit institutions, obligations and loans and
other non-current financial liabilities, is as follows:
64,870
8,182
23,740
50,817
5,274
2,386
53,845
134
68,599
18,457
22,008
35,002
4,120
5
60,772
3,713
2023
2024
2025
2026
2027 and
beyond
Total
604,176
6,210
7,145
505,656
755,617
1,878,804
136,159
151,098
464,542
299,741
232,828
1,284,368
2021
Bonds and other
marketable securities
Non-current bank
borrowings
Other financial liabilities
68,842
68,614
37,550
77,908
316,911
569,825
209,248
212,676
809,177
225,922
509,237
883,305
1,305,356 3,732,997
“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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 71 of 144
_ 333
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:
Non-current
Bonds and other marketable securities
Bank borrowings
Other financial liabilities
Current
Bonds and other marketable securities
Bank borrowings
Other financial liabilities
Non-current
Bonds and other marketable securities
Bank borrowings
Other financial liabilities
Current
Bonds and other marketable securities
Bank borrowings
Other financial liabilities
Balance at 1
January 2021
3,977,288
2,780,935
607,599
588,754
874,443
449,346
212,421
212,676
Cash flows
from financing
activities
Exchange
differences
(113,779)
1,020
(108,135)
(6,664)
(249,389)
(273,637)
138,355
(114,106)
40,077
15,417
16,086
8,574
14,093
5,686
1,311
7,096
With no impact on cash flows
Change in
fair value
(21,148)
–
–
(21,148)
80
–
–
80
Change
consolidation
method
836,828
–
811,563
25,265
26,967
–
18,437
8,530
Sin impacto en flujos de caja
Other
changes
(986,269)
(918,568)
(42,745)
(24,956)
1,153,982
971,344
87,665
94,972
Balance at 31
December 2021
3,732,997
1,878,804
1,284,368
569,825
1,820,176
1,152,739
458,189
209,248
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
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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 72 of 144
_ 334
In 2021, under the item “Change in consolidation method”, the amount contributed by the Realia
Business Group for €521,169 thousand as a result of being fully consolidated following its takeo-
ver in 2021 and €339,251 thousand contributed by the company Jezzine Uno, S.L.U. as a result
of its entry into the scope of consolidation on the same date (note 5) are noteworthy.
In 2020, the decrease in the column “Other movements” was mainly due to the transfer to non-cur-
rent liabilities held for sale of the Cedinsa subgroup (note 4) amounting to €861,282 thousand.
21. Other non-current liabilities
This heading mainly includes performance obligations under the Buckinghamshire plant con-
cession (note 11) arising from the collection of the intangible component in accordance with the
conditions set out in the agreement amounting to €122,790 thousand at 31 December 2021
(€118,375 thousand at 31 December 2020).
22. Trade and other accounts payable
The breakdown of the “Trade and other payables” heading in the liability side of the balance sheet
as at 31 December 2021 and 2020 is as follows:
Suppliers
Current tax liabilities (Note 24)
Other payables to Public Administrations (Note 24)
Customer advances (Note 16)
Remuneration payable
Other payables
2021
2010
1,072,129
1,055,643
28,158
322,006
357,807
76,518
410,884
8,939
316,883
403,626
69,841
418,800
2,267,502
2,273,732
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 2021 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 2021 in the sectors in
which the Group operates.
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 73 of 144
_ 335
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 contracted lines amounts to €42,795
thousand at 31 December 2021 (€99,270 thousand at 31 December 2020), with a drawn down
balance of €11,999 thousand at 31 December 2021 (€8,478 thousand at 31 December 2020).
The above-mentioned contracts do not modify the main payment conditions (interest rate, dead-
line 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
2021
Days
96
92
108
2020
Days
104
97
126
Amount
Amount
1,788,644
1,429,479
486,798
445,894
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.p) 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.
During business year 2021, an international reform, known as the “IBOR reform”, was implement-
ed, which envisages the replacement of certain benchmark interbank offered rates (IBORs) with
alternative, almost risk-free rates.
The IBOR reform is an aspect of continuous monitoring for the FCC Group, as the indices affected
by it are references in the Group’s financing agreements and derivative financial instruments.
Euribor-linked financial instruments are not exposed to uncertainty at 31 December 2021.
For the rest of the IBOR indices affected by the reform, their publication has ceased on 31 De-
cember 2021 (except in the case of Libor-dollar, for which the cessation of publication for most of
the index maturities has been delayed to June 2023), so that the main market players (regulators,
central banks, banks, institutions, etc.) are working on defining the equivalences between these
indices and the new near risk-free benchmarks (Risk Free Rate benchmarks, hereafter “RFRs”).
In the particular case of the FCC Group, the exposure to IBOR indices affected by the afore-
mentioned reform focuses on its financing and derivatives referenced to LIBOR - GBP (pound
sterling), so this reform has not had a significant impact on the Group’s financial position or
results. However, in view of the uncertainty in the transition period, the Group has identified the
transactions affected, in particular the Libor-GBP indexed financial debt and the accompanying
hedging derivatives.
The Group has made adjustments to the financing agreements and hedging derivatives affected
by the transition.
At 31 December 2021 the FCC Group has contracted hedging transactions with derivative in-
struments in its fully consolidated companies for an aggregate notional amount of €697,981
thousand (€335,672 thousand at 31 December 2020), mainly in the form of interest rate swaps
(IRS), where Group companies pay fixed rates and receive floating rates.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 74 of 144
_ 336
Details of the hedges and their fair value for fully consolidated companies are shown below:
Derived type
Hedging type
% hedge
Notional
31.12.21
Notional
31.12.20
Valuation at 31
December 2021
Valuation at 31
December 2020
Due date
Empresas consolidadas por integración global
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
Realia
Total FCC Environment CEE GMBH
Total global integration
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
IRS
IRS
FX
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
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%
21%
21%
13%
9%
6%
100%
7,164
3,340
7,164
18,439
9,838
61,431
17,265
7,173
7,173
–
–
42,125
42,125
1,575
21,083
16,684
8,946
8,946
10,219
–
3,886
32,458
106,905
106,905
64,178
47,105
31,432
14,422
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
–
–
–
–
(468)
(40)
55
(2,751)
(499)
(3,190)
(3,855)
(550)
(553)
–
–
(1,312)
(1,389)
(36)
(541)
(87)
(560)
(551)
(454)
–
(96)
(420)
(1,401)
(1,401)
(841)
(619)
(412)
125
(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)
–
–
–
–
02/04/2024
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
27/04/2024
27/04/2024
27/04/2024
27/04/2024
27/04/2024
22/11/2023
697,981
335,672
(21,846)
(38,192)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 75 of 144
_ 337
It also shows the maturities of the notional amount for the hedging operations entered into as at
31 December 2021 and broken down in the previous table:
Companies consolidated by
global integration
2022
2023
2024
2025
2026 and
beyond
50,315
44,109
360,250
41,475
201,832
At 31 December 2021 the total notional amount of hedges of companies consolidated using the
equity method is €40,506 thousand (31 December 2020: €186,256 thousand) and their fair value
is €2,842 thousand (31 December 2020: €24,874 thousand).
At 31 December 2020 the derivative hedges of the companies whose assets and liabilities had
been transferred to held for sale (note 4) had a total notional amount of €844,043 thousand and
a fair value of (€294,109) thousand. Details of the hedges and their fair value are shown below:
Derived type
Hedging type
% hedge
Notional
31.12.21
Notional
31.12.20
Valuation at 31
December 2021
Valuation at 31
December 2020
Cedinsa Eix. Llobregat
Cedinsa Eix. Transversal
Cedinsa d’Aro
Total global integration
Urbs Iudex et
Causidicus, S.A.
Concessió Estacions Aeroport L9
Total equity method
IRS
IRS
IRS
IRS
IRS
FE
FE
FE
FE
FE
70%
80%
85%
100%
varios
–
–
114,730
291,800
30,943
437,473
59,432
347,138
(36,561)
(96,946)
(9,777)
–
(143,284)
Due date
01/05/2033
30/10/2033
01/05/2033
(39,666)
(111,159)
30/12/2033
23/12/2033
406,570
–
(150,825)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 76 of 144
_ 338
The following table details the amounts of financial derivatives that the fully consolidated
companies have entered into for hedging purposes, but which cannot be considered as such
for accounting purposes:
Companies consolidated by global integration
FCC Environment CEE GmbH
Total global integration
Derived type
Hedging type
No禾ional
31.12.21
No禾ional
31.12.20
Valuation at 31
December 2021
Valuation at 31
December 2020
Due date
FX SWAP
ESP
–
19,938
19,938
–
22/11/2023
(208)
(208)
The following table provides a reconciliation of the change in the assessment of derivatives, dis-
tinguishing hedging derivatives from speculative derivatives and identifying the amounts of which
have been recorded in the accompanying consolidated income statement and which in “Other
comprehensive income” in the consolidated statement of recognised income and expense:
2021
Hedging
Speculative
2020
Hedging
Speculative
Balance at
1 January
2021
Profit/loss
from valuation
of reserves
Profit/loss
from valuation
of results
Transfers
to the income
statement
Inefficiency of the
hedging
Other
changes
Balance at 31
December 2021
(38,192)
(208)
28,841
–
–
622
(5,755)
–
–
–
(6,740)
(414)
(21,846)
–
Balance at
1 January
2020
Profit/loss
from valuation
of reserves
Profit/loss
from valuation
of results
Transfers
to the income
statement
Inefficiency of the
hedging
Other
changes
Balance at 31
Decembere 2020
(171,010)
(312)
(30,907)
–
–
175
16,149
–
–
–
147,576
(71)
(38,192)
(208)
The column “Other movements” for 2020 mainly includes the reclassification to liabilities held for
sale of the Cedinsa subgroup (note 4).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 77 of 144
_ 339
a) Deferred tax assets and liabilities
Deferred tax assets mainly relate to provisions recognised, losses and impairments of assets held
for sale, non-deductible financial expenses that will be deductible for tax purposes from taxable
income in future years, tax credits and tax loss carry forwards/offsets and differences between
accounting and tax depreciation and amortisation.
Specifically, the FCC Group has recognised deferred tax assets corresponding to tax loss carry-
forwards and deductions pending application, as it considers that there are no doubts as to their
recoverability, amounting to €418,642 thousand (€345,095 thousand at 31 December 2020). The
increase compared to 2020 is mainly due to the incorporation of the Realia tax group, which at 31
December 2021 contributes capitalised tax credits of €72,619 thousand.
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. Based on profit projections, it is
estimated that there will be sufficient positive taxable income to substantially absorb both the tax
losses recognised in the balance sheet and the deferred tax assets over an estimated period of
around eleven years.
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 corporate income 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. Likewise, part of the subsidiaries that carry
out the Water, Real Estate (with regard to the Realia subgroup), Environmental Services in the
United Kingdom and FCC Environment Group in Austria, are also taxed in their own consolidated
tax group.
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 for a total amount (instal-
ment and late payment interest) equal to 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.
In June 2020, the tax authorities notified the start of corporate income tax audits of the tax group
headed by FCC, S.A., business year 2015 to 2017, the VAT corresponding to the period from
June 2016 to December 2017 of FCC, S.A., FCC Construcción, FCC Aqualia, FCC Industrial e
Infraestructuras Energéticas and Cementos Portland Valderrivas, and also the withholdings/re-
ceipts on account for employment income and professional income corresponding to the period
from June 2016 to December 2017 for FCC, S.A., FCC Construcción and FCC Aqualia, and for
the period from January to December 2017 for Cementos Portland Valderrivas. In relation to years
and taxes open to inspection, contingent tax liabilities could arise, the amount of which cannot be
objectively quantified at present. However, the Group’s management considers that the potential
liabilities resulting from this situation would not significantly affect the Group’s equity.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 78 of 144
_ 340
The estimated accounting profit for the year for the tax group headed by Fomento de Construc-
ciones y Contratas, S.A. is based on the Strategic Plan prepared by the Group for the period
2022-2024. Turnover growth of 7.3% in 2022, 1% in 2023 and 4.3% in 2023 is assumed, mainly
due to an improvement in the Cement business, which is expected to increase its contribution,
while the projected EBITDA margin ranges between 13.5% and 15% for the period 2022 to 2024.
In the subsequent periods, a vegetative growth in profit before tax of 2% is projected. For the tax
group headed by FCC Aqualia, S.A., a vegetative growth of 2% has been applied to the profit
before tax. In the case of the tax group headed by Realia, the taxable income is estimated on the
basis of the projected accounting profit up to 2036 adjusted by those temporary and permanent
differences that are expected to reverse in each year.
The deferred tax liabilities recognised by the Group mainly arise from the following:
– 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 corporate income 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 224,506 thousand euros (123,695 thousand euros at 31
December 2020).
The following table shows the breakdown of the main deferred tax assets and liabilities:
ASSETS
2021
2020
Tax
Group
Spain
Realia
Tax
Group
Rest
TOTAL
Tax
Group
Spain
Rest
TOTAL
Provisions and impairments
106,844
4,709
43,071
154,624
119,011 40,219 159,230
Tax loss carryforwards
329,197 72,619
16,826
418,642
332,327 12,768 345,095
Non-deductible financial
expense
6,141
29,926
4,623
40,690
21,817
5,626
27,443
Planes de pensiones
818
–
917
1,735
455
2,214
2,669
Amortisation/depreciation
differences
Other
Otros
Total
LIABILITIES
Fair value assets from
allocation of acquisition
differences (IFRS 3)
Investment property at fair
value (IAS 40)
Accelerated amortisation/
depreciation
11,058
548
13,668
25,274
12,514
9,822
22,336
110,739
1,384
30,648
142,771
112,002 33,615 145,617
564,797 109,186 109,753 783,736
598,126 104,264 702,390
2021
2020
Tax
Group
Spain
Realia
Tax
Group
Rest
TOTAL
Tax
Group
Spain
Rest
TOTAL
53,513
12,604
78,046
144,163
60,907
68,524 129,431
–
79,213
145,336 224,549
–
–
–
2,288
108,266 110,554
1,698
89,242
90,940
Profit/(loss) Temporary Joint
Ventures
13,091
Tax impairment of goodwill
2
Financial leasing
5,270
–
–
–
4,217
17,308
11,914
6,332
18,246
–
2
2,503
7,773
1,175
4,837
–
1,993
1,175
6,830
Other
Total
18,935
1,770
21,670
42,375
19,667
6,199
25,866
93,099
93,587
360,038 546,724
100,198 172,290 272,488
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 79 of 144
_ 341
Below are the expected maturity dates of the deferred taxes:
b) Public administrations
2022
2023
2024
2025
2026 and
beyond
Total
The breakdown at 31 December 2021 and 2020 of the current assets and liabilities included
under the “Public administrations” heading is as follows:
Assets
Liabilities
78,870
36,087
73,759
35,934
65,830
138,895
426,382
783,736
30,967
30,967
412,769
546,724
Current assets
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 244.3
million euros. The estimated maturity of non-activated NTBs is shown below:
Maturity time frame
From 2022 to 2026
From 2027 to 2031
From 2032 onwards
No maturity
Tax credits
(millions of euros)
35.0
15.5
27.9
165.9
244.3
Value Added Tax receivable (Note 16)
Current tax
Other tax items (Note 16)
Current liabilities
Value Added Tax payable (Note 22)
Current tax (note 22)
2021
88,648
174,355
61,581
324,584
2021
83,175
28,158
2020
108,169
101,235
61,896
271,300
2020
93,616
8,939
Social Security payable and other tax items (note 22)
238,831
223,268
Additionally, the Group has unactivated tax credits, corresponding to tax deductions credited and
pending application, totalling €20.4 million.
Deferrals
84
257
350,248
326,080
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 80 of 144
_ 342
c) Corporate income tax expense
The corporation tax expense incurred in the year amounted to 130,180 thousand euros (86,273
thousand euros in 2020), as detailed in the accompanying consolidated income statement. Below
is the reconciliation between expense and accrued tax payment:
2021
2020
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
Consolidated tax base of continuing activities
(taxable profit)
Additions
167,434
Reductions
(497,846)
84,601
145,623
(97,173)
(211,951)
807,460
(330,412)
477,048
(12,572)
(66,328)
398,148
Additions
74,606
Reductions
(123,814)
179,277
112,651
(96,207)
(286,239)
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 payable will
be determined in the tax settlement to be carried out in 2022, so the final settlement may vary as
explained in note 3.q) of these notes to the consolidated financial statements.
In 2021, permanent differences include, as decreases, the positive result arising from the business
combination whereby control of Realia Business, S.A. is taken over in the amount of €241,701
thousand and also the positive results from the disposals mentioned in note 5. Additionally, as
an increase, the amount of the impairment recognised in the goodwill of Uniland (note 7) in the
amount of €100,000 thousand is included.
Profit tax
Tax credits and tax relief
Adjustments for tax rate change
Other adjustments
Corporate income tax
Below is the reconciliation of the expense for corporation tax:
Adjusted consolidated accounting profit/(loss) of continuing activities
477,048
2021
429,873
(49,208)
380,665
83,070
(173,588)
290,147
2020
380,665
(95,802)
3,585
(10)
5,954
(115,308)
1,683
(15,599)
(956)
(130,180)
(86,273)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 81 of 144
_ 343
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 and a tax on profits of
(€5,523) thousand.
c) Death or permanent disability.
d) Other causes of physical or legal incapacitation.
e) Substantial modification of professional conditions.
Tax rate change adjustments include a negative amount of €14,739 thousand in the UK as a result
of the change in tax rate from 19% to 25%.
The main components of the corporate income tax, distinguishing between the current tax, i.e,
tax corresponding 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:
Current tax
Deferred taxes
Corporate income tax
2021
(83,726)
(46,454)
(130,180)
2020
(71,412)
(14,861)
(86,273)
25. Pension plans and similar obligations
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.
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.
In 2021 and 2020, no new premium contributions have been made for this insurance. As at 31
December 2021, the fair value of the premiums provided covers all the actuarial obligations en-
tered into.
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 2021 a premium of 1,751 thousand euros was paid over
(1,474 thousand euros in 2020).
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 €5 thousand (€6 thousand in 2020).
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).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 82 of 144
_ 344
The main benefits referred to in the preceding paragraph are the following:
Actual performance of the fair value of affected assets
– 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 at 31 December 2021, in accordance with the plans
to pay the benefits, whose fair value amounts to 73,815 thousand euros (62,478 thousand
euros at 31 December 2020), with an actuarial value of the accrued obligations of 70,353
thousand euros (70,758 thousand euros at 31 December 2020). The net difference represents
an asset of €3,462 thousand, which is not recognised in the accompanying consolidated bal-
ance sheet as the company is not entitled to repayments or reductions in future contributions.
In the year 2020, a provision of €8,280 thousand was recognised as non-current provisions
in the accompanying consolidated balance sheet. Personnel expenses” in the accompany-
ing consolidated income statement includes a cost of €470 thousand (€420 thousand at 31
December 2020) for the net difference between the cost of services and the return on plan
assets. The average actuarial rate used was 1.8% (1.5% in 2020).
The year’s movement of the obligations and assets associated with pension plans and similar
obligations is detailed below:
2021 Business Year
Affected active balances at the beginning of the year
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
FCC Environment Group (UK)
62,478
962
6,024
4,368
1,879
18
(1,914)
–
73,815
Reconciliation of the actual performance of the obligation less the affected assets and
the balances effectively recognised in the balance sheet
Net balance obligations less affected assets at the
end of the year
FCC Environment Group (UK)
(3,462)
Actual performance of the current value of the obligation
2020 Business Year
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
FCC Environment Group (UK)
Actual performance of the current value of the obligation
70,758
252
1,083
18
(4,887)
4,947
(1,818)
–
–
70,353
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
FCC Environment Group (UK)
64,939
201
1,210
17
9,669
(3,484)
–
25
(1,819)
70,758
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 83 of 144
_ 345
Actual performance of the fair value of affected assets
FCC Environment Group (UK)
Affected active balances at the beginning of the year
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
59,501
1,116
5,202
(3,192)
1,754
16
(1,919)
–
62,478
Reconciliation of the actual performance of the obligation less the affected assets and
the balances effectively recognised in the balance sheet
Net balance obligations less affected assets at the end of the
year
8,280
Grupo FCC Environment (UK)
26. Guarantee commitments to third parties
and other contingent liabilities
At 31 December 2021, 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 3,952,987 thousand euros (3,833,058 thousand euros at 31
December 2020).
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.
In relation to the main contingent liabilities arising from the Alpine subgroup’s bankruptcy pro-
ceedings, it should be noted that the possible financial effects would be the cash outflow of the
amount indicated in the respective lawsuits detailed in note 19 of these notes to the consolidated
financial statements, plus interest and costs, if any.
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, the judgments handed down by the National High
Court were notified, upholding the contentious-administrative appeals filed by Gestión y Valor-
ización Integral del Centro S.L. and BETEARTE, S.A. Unipersonal, both companies owned by
FCC, against the Resolution of the CNMC imposing several sanctions for alleged collusive prac-
tices. 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 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 84 of 144
_ 346
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, which might not be justified and, may, therefore be illegal.
The application of the procedures contained in the FCC Group’s set of compliance rules made it
possible to identify the facts, and the company proceeded to bring them to the attention of the
public prosecutors’ offices in Spain and Panama, to which it has been providing since then the
maximum collaboration for the clarification of the facts within the framework of the “zero toler-
ance” principle against corruption that permeates the entire FCC Compliance System.
In the context of the aforementioned collaboration, on 29 October 2019, the Central Court of
Instruction no. 2 of the National High Court agreed to have FCC Construccion, S.A. and two of
its subsidiaries, FCC Construccion America, S.A. and Construcciones Hospitalarias, S.A., investi-
gated within Preliminary Proceedings 34/2017. The case is still in the investigation period, without
us being able to determine at this time what type of charges could be filed, if any. 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.
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 “Net turnover”, including interest income from the conces-
sion financial model collection rights under IFRIC 12 amounting to €36,374 thousand at 31 December
2021 (31 December 2020: €38,269 thousand), except for work on own property, plant and equipment
and other operating income.
Note 28 “Information by activity segments” shows the contribution of the business segments to consol-
idated net turnover.
Operating income of €32,943 thousand (at 31 December 2020: €35,327 thousand), mainly in the Con-
struction segment, has been recognised in 2021 from performance obligations satisfied or partially sat-
isfied in prior years.
During 2021, €309,111 thousand (at 31 December 2020: €229,065 thousand) previously recognised as
customer advances and pre-certified work (notes 16 and 22), which were recognised as revenue under
“Trade and other payables”, mainly in the Construction segment, have been recognised under liabilities.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 85 of 144
_ 347
The breakdown of the other operating income for 2021 and 2020 is as follows:
b) Procurements
Income from sundry services
CO2 emission allowances (note 29)
Reimbursement from insurance compensation
Grants related to income
Other income
2021
81,297
7,766
4,129
34,497
120,310
247,999
2020
115,526
58,909
6,782
18,130
93,958
293,305
The breakdown of the balance of supplies and other external expenses as of 31 December 2021
and 2020 is as follows:
Subcontracting and work performed by other companies
1,442,802
1,397,896
2021
2020
Purchases and procurements
1,033,343
902,346
2,476,145
2,300,242
“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 pro-
vision of technical assistance to entities accounted for using the equity method. “Other income”
mainly includes excess provisions and rental income when the Group acts as lessor in operating
leases in activities other than real estate.
At year-end 2021, the Group has outstanding performance obligations primarily for services ren-
dered in the Environmental Services segment and arising from construction agreements mainly in
the Construction and Water segments amounting to €14,801,564 thousand (€14,434,994 thou-
sand at year-end 2020) which it expects to recognise as revenue in accordance with the following
schedule:
c) Staff costs
Below is a breakdown of staff expenses for 2021 and 2020:
Wages and salaries
Social security contributions
Other staff costs
2021
2020
1,541,542
1,498,269
447,639
51,048
432,248
40,593
2,040,229
1,971,110
up to 1 year
2 to 5 years
more than 5
years
Total
Information on the number of employees and their distribution by functional level and gender is
provided in the Statement of Non-Financial Information which forms part of the Management
Report accompanying these consolidated financial statements.
Environmental Services
1,694,610
4,078,929
4,972,856
10,746,395
Construction
1,602,978
2,378,347
End-to-end Water Management
37,176
36,668
–
–
3,981,325
73,844
3,334,764
6,493,944
4,972,856
14,801,564
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 86 of 144
_ 348
d) Impairment and gains/(losses) on disposal of fixed assets
e) Financial income and financial expenses
The breakdown of the balance of the Impairment and gains/(losses) on disposal of fixed assets in
the years 2021 and 2020 is as follows:
The breakdown of the financial income, according to the assets that generate said income, in
2021 and 2020 is as follows:
–
–
–
Financial assets at fair value with changes in other comprehensive
income
Financial assets at amortised cost
3,955
Other financial income
The decrease in “Other finance income” is mainly due to the lower pass-through of finance costs
agreed in relation to the deferral of the collection of certain works in the Construction segment
(€710 thousand passed through in 2021 compared to €6,316 thousand passed through in 2020).
The breakdown of financial expenses in 2021 and 2020 is as follows:
2021
2020
Profit/(loss) from takeover of Realia Business, S.A. (notes 5)
Impairment of the commercial fund (note 7)
Changes in fair value of investment property (note 9)
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
241,701
(100,000)
16,628
(49,304)
4,622
9,930
123,577
2,357
558
6,870
The following results are to be highlighted for 2021:
– as a result of the takeover of Realia Business, S.A. following the acquisition in October 2021 of
an additional 13.12% stake by F C y C S.L., a positive operating profit of €241,701 thousand
was recognised as the consideration paid was lower than the fair value of the assets acquired
(note 5).
–
the impairment of goodwill of Corporación Uniland for an amount of €100,000 thousand (note
7) and the impairment of quarries in the Cement business as a result of the expected reduc-
tion in their useful life for an amount of 36,011 (note 8).
Bonds and other marketable securities
Credits and loans
Debts with limited recourse for project financing
Creditors from leases
Assignment of credits
– a positive result due to the change in the fair value of investment property amounting to
€16,628 thousand as a result of the assessment carried out by independent experts of the
Realia Group’s investment property (note 9).
Financial update of provisions and other liabilities
Other financial expenses
– A pre-tax gain of €9,643 thousand from the sale of 51% of the Cedinsa Group, included under
“Other items” (note 5).
There were no notable events in 2020.
The amount of this item is included in the accompanying consolidated cash flow statement under
“Impairment and gains/(losses) on disposal of fixed assets” in the consolidated statement of cash
flows.
2021
1,447
18,218
5,154
24,819
2020
325
16,430
16,715
33,470
2021
52,775
25,975
15,862
12,905
1,440
19,347
7,017
2020
53,761
41,689
24,869
12,644
9,691
23,704
21,071
135,321
187,429
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 87 of 144
_ 349
f) Other financial loss
g) Profit/(loss) of entities valued using the equity method
The breakdown of other financial expenses in 2021 and 2020 is as follows:
The breakdown for this heading is as follows:
Change in fair value of current financial instruments
Exchange gains/(losses)
Impairment and profits/losses on disposal of financial Instruments
2021
6,553
24,482
26,484
57,519
2020
175
(51,259)
27
(51,057)
In 2021, “Change in fair value of current financial instruments” includes a gain of €5,440 thousand
from the contingent collection arising from the sale of 49% of FCC Aqualia, S.A. in 2018 without
loss of control (note 26).
The increase in 2021 in exchange rate differences is mainly due to the appreciation of the US
dollar (in the year 2020 the US dollar depreciated).
In addition, in 2021, €15,999 thousand of the gain on the disposal of the stake in Nalanda Global,
S.A. is included in “Impairment and gains/losses on disposal of financial instruments”.
2021
2020
Profits/(losses) for the year (Note 12)
60,221
61,514
Joint ventures
Associates
Profits/(losses) on disposals and
others
35,464
24,757
38,169
23,345
(1,988)
58,233
635
62,149
In the business year 2021, the line “Gains/losses on disposals and other” includes those from the
following transactions:
– sale of 49% of the companies Concessió Estacions Aeroport L9, S.A. and 29% of Urbs Iudex
et Causidicus, S.A., which gave the FCC Group a pre-tax profit of €17,617 thousand (note 5).
– sale to Plenium Partners, S.L. of FM Green Power Investments, S.L. and its investees, which
The amount of this heading is shown in the accompanying consolidated statement of cash flows
under the heading “Other adjustments of profit/(loss) (net)”.
–
gave rise to a pre-tax gain of €39,464 thousand (note 5).
the acquisition of control of the Realia Business Group, indicated in section d) of this note,
which gave rise to a negative result of €58,158 thousand as a result of the fair value of the
stake held by the aforementioned company prior to the acquisition of control (note 5).
In the year 2020, this item included a positive result of €635 thousand from the acquisition of
control of the company Aquos El Realito, S.A. de C.V.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 88 of 144
_ 350
h) Profit attributable to non-controlling interests
Income statement by segments
In particular, the information reflected in the following tables includes, as profit/(loss) for 2021 and
2020:
– 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.
At 31 December 2021 the result attributable to minority interests amounts to €97,145 thousand
(€81,421 thousand at 31 December 2020), mainly due to the amount corresponding to the 49%
held by the minority shareholder of the Aqualia subgroup, a segment that contributes an amount
of €69,988 thousand at 31 December 2021 (€67,883 thousand at 31 December 2020) (note 28).
In addition, as a result of the incorporation in October 2021 of the company Jezzine Uno, S.L.
through a non-monetary capital increase in F C y C, S.L., subscribed by Soinmob Inmobiliaria
Española, S.A., this company now holds 19.97% of the share capital of F C y C, S.L., the parent
company of the Real Estate activity, a segment that contributes an amount of €14,455 thousand
at 31 December 2021 (note 5).
28. Information by activity segments
a) Activity segments
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 support tasks
for operations and the operation of those companies whose management is not assigned to any
of the business areas.
“Eliminations” includes the elimination of operations between different activity segments.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 89 of 144
_ 351
Environmental
Services
End-to-end Water
Management
Construction
Cement
Real Estate
Concessions
Corporation
Eliminations
(5,834,018)
(2,786,012)
(443,936)
(234,064)
2021
Net business turnover
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 revenue
Finance income
Finance costs
Miscellaneous financial results
Profit companies accounted for using the equity
method
Total Group
6,659,283
6,659,283
–
301,322
301,322
–
119,559
802,210
12.05%
24,819
(135,321)
57,519
58,233
Profit/(loss) before tax from continuing operations
807,460
Corporate 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 of the FCC Group
(130,180)
677,280
677,280
97,145
580,135
580,135
3,244,944
3,238,334
6,610
76,137
74,918
1,219
(15,613)
285,392
8.79%
6,534
(68,887)
4,337
18,922
246,298
(66,041)
180,257
180,257
6,805
173,452
173,452
1,169,450
1,167,521
1,929
73,385
72,076
1,309
(943,924)
(121,021)
3,428
181,318
15.50%
36,927
(49,212)
(332)
2,815
171,516
(42,860)
128,656
128,656
69,987
58,669
58,669
1,659,593
1,615,172
44,421
113,605
114,191
(586)
433,755
427,365
6,390
17,629
17,435
194
147,928
149,148
(1,220)
4,961
4,923
38
(1,670,620)
(375,315)
(112,848)
(30,898)
(31,422)
(55)
(578)
(134,987)
71,102
4.28%
3,497
(2,575)
34,787
1,966
108,777
(27,406)
81,371
81,371
1,352
80,019
80,019
(90,340)
(20.83%)
741
(6,059)
304
3,905
(91,449)
613
(90,836)
(90,836)
1,101
(91,937)
(91,937)
258,327
298,313
201.66%
146
(3,079)
74
(46,006)
249,448
(12,822)
236,626
236,626
14,456
222,170
222,170
54,975
54,975
–
13,947
13,947
–
(31,728)
(7,835)
8,982
38,341
69.74%
6,009
(13,745)
12,773
25,958
69,336
(7,839)
61,497
61,497
3,444
58,053
58,053
66,402
6,768
59,634
41,225
3,832
37,393
(72,224)
(18,822)
–
16,581
24.97%
42,338
(35,116)
(117,764)
–
(117,764)
(39,567)
–
(39,567)
158,653
181
–
1,503
(1.28%)
(71,373)
43,352
167,890
(162,314)
53,973
(3,300)
245,666
(192,132)
26,550
(375)
272,216
(192,507)
272,216
(192,507)
–
–
272,216
(192,507)
272,216
(192,507)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 90 of 144
_ 352
2020
Net business turnover
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 revenue
Finance income
Finance costs
Miscellaneous financial results
Profit companies accounted for using the equity
method
Profit/(loss) before tax from continuing operations
Corporate income tax
Profit/(loss) for the year from continuing operations
343.600
Consolidated profit/(loss) for the year
Non-controlling interests
Profit attributable to the parent company
Contribution to the profit of the FCC Group
343.600
81.421
262.179
262.179
Total Group
Environmental
Services
End-to-end Water
Management
Construction
Cement
Real Estate
Concessions
Corporation
Eliminations
6.158.023
2.888.150
6.158.023
2.882.658
–
327.162
327.162
–
5.492
91.180
89.983
1.197
(5.437.686)
(2.528.479)
(477.342)
(233.826)
2.583
572.740
9.30%
33.470
(187.429)
(51.057)
62.149
429.873
(86.273)
(1.368)
215.657
7.47%
3.403
(74.457)
(4.478)
15.045
155.170
(27.859)
127.311
127.311
6.148
121.163
121.163
1.188.348
1.182.248
6.100
60.833
59.871
962
(966.252)
(117.776)
2.258
167.411
14.09%
37.940
(47.405)
(2.526)
1.707
157.127
(33.338)
123.789
123.789
67.883
55.906
55.906
1.610.990
1.552.026
58.964
189.726
73.214
116.512
382.639
376.232
6.407
64.718
64.680
38
34.810
34.810
–
924
924
(1.747.133)
(307.504)
(39.522)
(34.718)
(32.929)
(4)
–
(3.792)
(10.89%)
5
(116)
106.808
27.91%
705
(10.068)
(14.229)
(1.368)
(2.607)
93.470
(21.858)
71.612
71.612
2.370
69.242
69.242
–
680
(17.336)
4.517
(12.819)
(12.819)
–
(12.819)
(12.819)
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)
123.532
123.532
–
10.911
10.909
2
(39.812)
(39.069)
(166)
55.396
44.84%
10.685
(33.970)
89
20.573
52.773
(9.186)
43.587
43.587
4.539
39.048
39.048
63.545
6.517
57.028
63.897
27.581
36.316
(98.004)
(19.201)
9
10.246
16.12%
163.116
(38.925)
71.678
22.409
(133.991)
–
(133.991)
(155.027)
–
(155.027)
289.020
181
(105)
78
(0.06%)
(206.459)
54.636
(71.633)
3.420
228.524
(219.958)
234
228.758
228.758
–
(44)
(220.002)
(220.002)
–
228.758
(220.002)
228.758
(220.002)
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”. Also included are the financial expenses for debts with credit
institutions detailed in note 20.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 91 of 144
_ 353
Property, plant and equipment
2,862,556
1,567,870
Balance sheet by segments
2021
ASSETS
Non-current assets
Intangible fixed assets
Additions
Additions
Investment property
Additions
Investments accounted for using the equity method
Non-current financial assets
Deferred tax assets
Current assets
Inventory
Trade and other receivables
Other current financial assets
Other current assets
Cash and cash equivalents
Total assets
Total Group
Environmental
Services
End-to-end Water
Management
Construction
Cement
Real Estate
Concessions
Corporation
Eliminations
2,988,252
2,595,915
933,400
2,169,896
403,192
3,717,710
(4,349,148)
9,074,069
2,445,233
73,127
368,094
2,069,187
4,836
533,842
604,020
559,231
5,168,089
1,107,262
2,277,734
184,365
63,203
1,535,525
928,593
48,109
240,204
–
–
199,099
234,742
57,948
889,339
23,165
489,862
65,939
–
–
67,966
1,117,636
31,112
614,852
77,933
46
142,099
45,104
–
–
39,850
4,690
350,280
347,885
29
482,968
15,442
–
–
42,012
3,840
56,695
1,410,000
1,107,069
1,719,351
212,344
38,007
888,935
66,942
35,687
380,429
34,218
387,845
78,684
4,399
601,923
144,874
773,992
446,915
17,548
336,022
93,252
83,755
12,740
1,022
21,575
69
–
2,344
10
2,069,187
4,836
48,126
14,940
35,230
910,279
796,635
16,620
25,272
4,310
67,442
251,164
–
58
28
–
–
6,590
1,778
(56,340)
–
197,930
(20,575)
1,367
–
–
–
–
–
127,234
9,307
248
15,585
3,392,058
(4,179,471)
9,151
56,819
202
6,881
291
86
49,359
111,825
461,787
1,240
165,663
215,958
151
78,775
(93,010)
(709,560)
(1,166)
(45,957)
(662,437)
–
–
14,242,158
4,398,252
3,702,984
2,334,203
1,145,744
3,080,175
460,011
4,179,497
(5,058,708)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 92 of 144
_ 354
2021
LIABILITIES
Equity
Non-current liabilities
Subsidies
Non-current provisions
Non-current financial liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Current provisions
Current financial liabilities
Trade and other payables
Internal relations
Total liabilities
Total Group
Environmental
Services
End-to-end Water
Management
Construction
Cement
Real Estate
Concessions
Corporation
Eliminations
789,434
1,780,671
136,049
2,388,847
(3,055,518)
248,348
1,027,295
265,147
1,079,484
(1,293,596)
–
148,495
4,440,665
5,565,941
192,185
1,167,340
3,732,997
322,219
151,200
4,235,552
147,874
1,820,176
2,267,502
–
689,679
2,784,715
4,882
520,563
1,993,949
117,701
147,620
923,858
5,177
306,990
608,153
3,538
810,664
1,162,409
38,719
198,499
868,744
52,867
3,580
900,839
292,139
–
214,953
60,097
17,089
–
89
22,250
158,961
67,048
–
25,312
837,678
164,305
–
1,729,911
1,141,225
107,962
272,209
13,961
1,189,076
118,978
21,117
526,874
1,001,130
–
–
4,897
21,104
81,961
–
1,798
185,273
85,138
–
39,791
76,846
15
–
58,815
1,366
50,483
6,966
–
–
145,972
–
–
933,129
(1,196,407)
383
–
(97,189)
–
711,166
(709,594)
1,697
–
686,687
(640,554)
26,082
(3,300)
(68,802)
(238)
14,242,158
4,398,252
3,702,984
2,334,203
1,145,744
3,080,175
460,011
4,179,497
(5,058,708)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 93 of 144
_ 355
2020
ASSETS
Non-current assets
Intangible fixed assets
Additions
Property, plant and equipment
Additions
Investment property
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 cash equivalents
Total activo
7,130,413
2,437,859
118,940
836,432
87,847
2,810,199
1,493,773
406,764
242,515
–
42
722,786
580,874
578,695
5,704,189
1,392,268
765,604
2,039,451
228,652
56,105
1,222,109
–
–
163,983
223,597
74,450
1,304,234
–
31,442
841,458
74,420
32,989
323,925
Total Group
Environmental
Services
End-to-end Water
Management
Construction
Cement
Real Estate
Concessions
Corporation
Eliminations
2,792,235
2,541,972
953,282
1,082,897
290,314
388,476
3,920,561
(4,839,324)
870,908
28,670
456,512
116,383
–
42
68,269
1,115,194
31,089
901,514
–
37,449
283,235
90,251
4,458
486,121
77,945
448,025
34
137,603
31,019
–
–
37,860
329,324
370,550
448
527,285
14,019
–
–
35,514
7,545
64,528
–
–
296
23
–
–
253,633
73
45
19
–
–
7,254
1,868
(56,338)
–
212,961
(18,276)
2,786
–
–
–
–
–
278,758
111,913
25,714
775
223
11,037
8,085
14,800
3,555,477
(4,665,286)
1,391,258
185,434
507,014
1,472,069
–
172,914
751,333
125,655
19,261
322,095
–
82,262
79,992
5,442
1,973
15,765
–
1,392,268
445,469
27,609
34,907
(2,980)
2,009
205
11,624
2,165
86
65,721
119,155
261,771
–
1,232
93,219
(100,199)
(319,105)
–
(5,369)
(49,019)
160,529
(264,717)
318
6,473
–
–
12,834,602
4,096,469
3,443,486
2,344,540
1,268,331
797,328
1,860,545
4,182,332
(5,158,429)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 94 of 144
_ 356
2020
LIABILITIES
Equity
Non-current liabilities
Subsidies
Non-current provisions
Non-current financial liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Current provisions
Current financial liabilities
Trade and other payables
Internal relations
Total liabilities
Total Group
Environmental
Services
End-to-end Water
Management
Construction
Cement
Real Estate
Concessions
Corporation
Eliminations
2,908,694
5,531,296
192,961
1,064,384
3,977,288
148,794
147,869
4,394,612
195,152
874,443
2,273,732
–
456,785
2,749,342
4,243
466,145
726,720
2,048,130
44,365
140,026
2,023,120
1,812,827
111,729
144,105
890,342
–
4,900
276,694
598,044
10,704
47,148
3,764
668,636
–
13,273
93,936
561,427
–
796,793
275,622
–
234,302
21,599
19,721
–
876,661
300,127
100
28,321
197,507
74,199
–
708,540
10,769
464,401
2,132,708
(3,253,914)
260,504
1,471,721
(1,584,919)
–
144,253
10,694
75
–
–
39,099
77,137
15
–
–
145,797
–
–
1,325,519
(1,480,496)
405
–
(104,423)
–
1,272,125
91,543
78,019
1,135,640
577,903
(319,596)
–
169,393
39,261
1,063,471
–
–
3,081
19,593
68,869
–
–
1,051,285
1,451
42,483
34,085
–
1,431
76,337
6,587
–
–
1,623
–
–
564,391
(238,252)
22,269
(10,380)
(81,020)
(324)
12,834,602
4,096,469
3,443,486
2,344,540
1,268,331
797,328
1,860,545
4,182,332
(5,158,429)
Liabilities related to non-current assets held for sale
1,051,285
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 95 of 144
_ 357
Cash flows by segment
2021
Operating activities
Investment activities
Financing activities
Other cash flows
Cash flows for the year
2020
Operating activities
Investment activities
Financing activities
Other cash flows
Cash flows for the year
Total Group
Environmental
Services
End-to-end Water
Management
Construction
Cement
Real Estate
Concessions
Corporation
Eliminations
746,246
193,082
(627,727)
1,815
313,416
605,074
(401,548)
(138,437)
(61,524)
3,565
440,012
(282,058)
(112,296)
10,846
56,504
265,343
(221,014)
(6,151)
(7,107)
31,071
95,239
(12,205)
30,010
2,759
115,803
223,652
(75,839)
(83,484)
268
64,597
(42,577)
(285,750)
334,153
8,101
13,927
(53,175)
19,926
(4,273)
(15,319)
(52,841)
70,476
(17,464)
(47,575)
373
5,810
136,557
(3,658)
(132,192)
(603)
104
94,419
51,648
(80,634)
–
65,433
(29,825)
(17,895)
44,933
–
(2,787)
25,474
378,873
(400,445)
(20,263)
(16,361)
117,457
(18,111)
(92,506)
(38,813)
(31,973)
85,662
(14,050)
692
(1)
72,303
208,971
(203,633)
(9,994)
50
(4,606)
(22,459)
374,088
(351,632)
–
(3)
(263,906)
118,676
145,230
–
–
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 96 of 144
_ 358
b) Activities and investments by geographic markets
The Group performs approximately 41% of its activity abroad (40% in 2020).
The net turnover realised abroad by the Group companies for the business years 2021 and 2020
is distributed among the following markets:
2021
United Kingdom
Czech Republic
Rest of Europe and Others
USA and Canada
Latin America
Middle East and Africa
2020
United Kingdom
Czech Republic
Rest of Europe and Others
USA and Canada
Latin America
Middle East and Africa
Total Group
Environmental
Services
End-to-end Water
Management
Construction
Cement
Real Estate
Concessions
Corporation
Eliminations
855,745
346,605
811,555
117,145
258,609
325,804
708,332
235,784
351,759
111,852
–
–
2,715,463
1,407,727
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
–
110,815
83,670
–
48,433
112,363
355,281
–
100,644
83,322
–
57,256
162,809
404,031
79,626
67,787
6
339,667
1,709
207,594
145,784
–
30,197
3,584
281
69,001
774,386
170,850
10,651
52,639
2
379,110
9,866
116,292
246,231
–
27,803
–
941
63,369
762,152
144,752
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,306
–
2,306
–
–
–
–
2,055
–
2,055
–
–
6,381
–
–
–
6,381
–
–
5,845
–
–
–
5,845
–
–
(119)
–
(5)
(1,344)
(1,468)
–
–
(481)
–
54
(5,005)
(5,432)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 97 of 144
_ 359
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
2021
ASSETS
Intangible fixed assets
Property, plant and equipment
Investment property
Deferred tax assets
2020
ASSETS
Intangible fixed assets
Property, plant and equipment
Investment property
Deferred tax assets
c) Personnel
2,445,233
2,862,556
2,069,187
559,231
1,352,303
1,389,079
2,069,187
520,752
2,437,859
2,810,199
–
1,398,446
1,426,708
–
578,695
522,830
487,559
624,145
–
5,717
462,520
619,374
–
25,076
2,336
323,186
–
4,874
2,111
298,248
–
4,251
250,436
320,259
–
16,261
251,362
307,572
–
14,990
46,543
160,345
–
–
22,603
122,881
–
–
262,101
11,646
–
9,551
254,385
16,867
–
8,460
43,955
33,896
–
2,076
46,432
18,549
–
3,088
The average number of people employed in 2021 and 2020 by business areas is as follows:
Environmental Services
End-to-end Water Management
Construction
Cement
Real Estate
Concessions
Corporation
2021
41,206
9,935
7,134
1,041
33
33
360
2020
40,362
10,296
7,936
1,049
–
158
328
59,742
60,129
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 98 of 144
_ 360
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.
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.
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.
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.
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.
b) Impact evaluation criteria.
c) The measures to be taken.
d) A system for measuring the objectives achieved.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 99 of 144
_ 361
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 2021, the acquisition cost of the productive fixed
and non-current assets, net of depreciation, of the Environmental Services Area amounted to
2,496,463 thousand euros (2,330,205 thousand euros at 31 December 2020). Environmental pro-
visions, mainly for landfill sealing and closing costs, amount to 452,963 thousand euros (396,384
thousand euros as of 31 December 2020).
The activities carried out by Aqualia are directly linked to the protection of the environment, as the
guiding thread of its actions, in collaboration with the different Public Administrations, is the efficient
management of the end-to-end water cycle and the search for guarantees for the availability of wa-
ter resources that allow for the sustainable growth of the populations where it provides its services.
One of FCC Aqualia’s fundamental objectives is continuous improvement through an Integrated
Management System, which includes both the quality management of processes, products and
services and environmental 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, optimi-
sation of electricity 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 manage-
ment of processes.
At year-end the Cementos Portland Valderrivas Group has investments related to environmental
activities recorded under intangible assets and property, plant and equipment for a total amount
of €137,742 thousand (€137,178 thousand in 2020), with accumulated amortisation of €103,775
thousand (€98,447 thousand in 2020). In 2021, it also incurred expenses of €2,380 thousand
(2020: €2,437 thousand) to ensure the protection and improvement of the environment, which
were recognised under “Other operating expenses” in the accompanying consolidated income
statement.
For the cement activity, the Group receives free CO2 emission rights in accordance with the cor-
responding national allocation plans. In this regard, it should be noted that in 2021 emission al-
lowances equivalent to 2,710 thousand tonnes per year (5,200 thousand tonnes per year in 2020)
have been received, corresponding to the companies Cementos Portland Valderrivas, S.A. and
Cementos Alfa, S.A.
“Operating income” in the accompanying consolidated income statement includes income from
the sale of greenhouse gas emission allowances in 2021 amounting to €7,766 thousand (€58,909
thousand in 2020).
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, pro-
tection 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 performance code”
that establishes the requirements for subcontractors and suppliers regarding the protection and
defence of the environment.
The Real Estate Area, in carrying out its usual development activities, considers the environmental
impact of its projects and investments as a key aspect. However, it has not been necessary to
incorporate systems, equipment or installations for the protection and improvement of the environ-
ment into tangible fixed assets.
Nor is it considered that there are no significant contingencies related to the protection and im-
provement of the environment as at 31 December 2021 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 100 of 144
_ 362
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.
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
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 Group’s basic capital base is equity in the balance sheet which, for management and mon-
itoring purposes, excludes the item “Changes in fair value of financial instruments” and “Transla-
tion differences”.
The first of these headings is disregarded for management purposes as it is considered as part
of interest rate management, since it is the result of the assessment of instruments that transform
floating-rate debt into fixed-rate debt. Translation 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. Additionally, in July 2020, FCC Servicios Medioambiente Holding S.A.U. registered a
promissory note programme - Euro Commercial Paper Programme (ECP) - on the Irish stock mar-
ket, which it has renewed in 2021 for an amount of €400 million; and Fomento de Construcciones
y Contratas, S. A. has had a Euro Commercial Paper Programme (ECP) registered in the same
market since November 2018 for €600 million, with the balance drawn down at 31 December
2021 amounting to €30 million. In 2021 new financing facilities were also taken out in the form of
lines of credit and bilateral loans.
In addition, in 2021 Cementos Portland Valderrivas S.A. voluntarily repaid in advance all of its
syndicated financing for a total of €115.5 million and arranged new bilateral financing facilities.
These operations have made it possible to continue completing the process of debt reduction
and financial reorganisation and to continue with the policy of diversifying the sources of financing,
all of which has contributed to achieving a much more solid and efficient capital structure, with
amounts, terms and costs of financing appropriate to the nature of the different business areas.
The Finance Division, as responsible for financial risk management, regularly reviews the debt-eq-
uity ratio and compliance with financing covenants, together with the capital structure of the
subsidiaries.
b) The FCC Group is exposed to currency exchange risk
A noteworthy consequence of the Group’s positioning in international markets is the exposure re-
sulting 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 cur-
rency.
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 101 of 144
_ 363
The following shows the composition by currencies of the Group’s gross debt at 31 December
2021:
CONSOLIDATED (thousands of euros)
Euro
Dollar
Pound
Rest of
Europe
non-
euro
Latin
America
Czech
Koruna
Rest
TOTAL
Gross debt
4,254,887
25,475
358,263
219,113
5,559
62,275
19,955
4,945,527
Financial assets
(1,117,040)
(88,676)
(235,384)
(54,949)
(55,043)
(64,424)
(104,302)
(1,719,818)
Total
consolidated
net
indebtedness
% Net Debt of
the total
3,137,847
(63,201)
122,879
164,164
(49,484)
(2,149)
(84,347)
3,225,709
97.3%
(2.0%)
3.8%
5.1%
(1.5%)
(0.1%)
(2.6%)
100.0%
Note 17 of these financial statements provides a breakdown of cash and cash equivalents by
currency, where 67.9% is denominated in Euros (61.7% at 31 December 2020).
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.
A summary table of the sensitivity to exchange rate changes in the translation of foreign currency
financial statements in the main currencies in which the Group operates is shown below (note 18):
Pound sterling
US Dollar
Algerian dinar
Czech koruna
Corona checa
Total
Pound sterling
US Dollar
Algerian dinar
Czech koruna
Corona checa
Total
10%
Profit and
Loss
(449)
(748)
1,386
3,067
3,256
-10%
Profit and
Loss
449
748
(1,386)
(3,067)
(3,256)
Equity
41.525
5.308
17,162
7,818
71,813
Equity
(41.525)
(5.308)
(17,162)
(7,818)
(71,813)
The impact on sterling is mainly due to the translation of the net assets corresponding to the
investment held in the FCC Environment UK subgroup.
c) The FCC Group is exposed to interest rate risk
The 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 102 of 144
_ 364
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 85.4% 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 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 31.12.21
Coberturas y Financiaciones a tipo fijo a 31.12.21
Total variable rate debt
Ratio: Variable-rate debt / Gross External
Debt at 31.12.21
Total Group
Construction
Environmental
Services
Cement
End-to-end Water
Management
Concessions
Real Estate
Corporation
4,945,527
(4,225,908)
719,619
14.6%
18,307
(1,779)
16,528
90.3%
1,735,400
(1,705,509)
29,891
1.7%
148,174
(72,947)
75,227
1,922,238
(1,654,527)
267,711
49,955
(47,482)
2,473
838,448
(713,664)
124,784
233,005
(30,000)
203,005
50.8%
13.9%
5.0%
14.9%
87.1%
The following table summarises the effect on the Group’s income statement of upward move-
ments in the interest rate curve on gross borrowings, after excluding fixed-rate debt and debt
associated with hedging agreements:
Impact on profit or loss
Gross indebtedness
+25 pb
1,799
+50 pb
3,598
+100 pb
7,196
In view of the uncertainty in the transition period imposed by the “IBOR Reform” (note 23), the
Group has initiated an action plan with the objective of minimising any potential negative impact
by first identifying the affected operations, quantifying their notional and reviewing the wording of
the agreements.
The Group currently uses interest rate derivatives (interest rate swaps) as cash flow hedging
instruments (note 23), which are indexed to floating interest rates, namely Euribor, GBP LIBOR,
TIIE28D and SAIBOR. Similarly, some of the Group’s bank financing is linked to these reference
rates. At 31 December 2021, the Group has adjusted all its financing agreements and hedging
derivatives that have been affected by the transition to RFR rates.
In view of any developments by the authorities on IBOR indices, the Group will make the appro-
priate contractual amendments to incorporate the new replacement benchmark interest rate into
its financing and hedging derivatives agreements.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 103 of 144
_ 365
d) Solvency risk
At 31 December 2021 the Group’s net financial indebtedness shown in the accompanying bal-
ance sheet amounted to €3,225,709 thousand as shown in the table below:
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
2021
2020
1,742,556
820,021
3,031,543
3,230,281
171,428
(184,293)
198,225
(228,652)
(1,535,525)
(1,222,109)
3,225,709
2,797,766
3,551,740
2,696,161
(326,031)
101,605
The increase in net financial debt and also in net debt with limited recourse is mainly due to the
acquisition of control of the Realia Business Group and Jezzine Uno, S.L.U. (notes 5 and 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 Group’s capabilities to obtain financing depend on many factors, many of which are beyond
its control, such as general economic conditions, the availability of funds at financial institutions,
the depth and availability of capital markets and the monetary policy of the markets in which it
operates. 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 mo nths. However, FCC Group’s ability to renew its fi-
nancing depends on various factors, many of which are outside the control of the 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 Group’s capacity to renew its financing. Therefore, the
Group cannot guarantee its ability to renew credit agreements and bond issues under economi-
cally attractive 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 2021, the Group had the following schedule of maturities of external gross debt,
which amounts to 1,653,984 thousand euros for 2022:
2022
1,653,984
2023
781,020
2024
2025 and beyond
TOTAL
170,769
2,339,754
4,945,527
A significant part of the gross financial debt, amounting to €4,694,215 thousand, has no recourse
to the parent company, of note being the debt of the End-to-end Water Management segment
amounting to €1,922,238 thousand, and of the Environmental Services segment amounting to
€1,735,400 thousand at 31 December 2021.
At 31 December 2021, the Group had working capital of 932,537 thousand euros (1,309,577
thousand euros at 31 December 2020).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 104 of 144
_ 366
In order to manage liquidity risk, at 31 December 2021, the Group had 394.5 million euros in un-
drawn bilateral financing lines, and 1,525,272 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
Other current financial
assets
184,293
23,392
10,222
5,509
145,170
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 2021 the
weight of the external activity has been 41% of total sales, with special importance in the activities
of Environmental Services and Infrastructure Construction.
During 2021, the acquisition of a controlling position in the Realia subgroup and the incorporation
of Jezzine Uno S.L.U. (note 5), enabled the creation of a solid, large-scale real estate holding
company, which diversified its risk and geographic opportunities by extending its activity to new
areas of operations in which it was not present.
Thousands of euros
Cash equivalents
Amount
10,253
1 month
1-2 months
2-3 months
763
–
9,490
g) Credit risk
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.
– Products: The Group uses various financial products: loans, credit facilities, obligations, syn-
dicated loans, assignments and discounting, etc.
– Currency: The Group is financed through many different currencies according to the country
of the investment.
The Group’s strategic planning process identifies the objectives to be attained in each of the are-
as 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.
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 of 31 December 2021 as shown in the following table:
Financial credits granted
Trade and other receivables (note 16)
Derivative financial assets (note 23)
Cash and cash equivalents (Note 17)
Guarantees granted (Note 26)
TOTAL
945,708
2,277,734
180
1,535,525
3,952,987
8,712,134
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 105 of 144
_ 367
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
concessions 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.
With respect to credit quality, the Group applies its best judgement to impair financial assets for
which lifetime credit losses are expected to be incurred (note 3.i). The Group regularly analyses
changes in the public ratings of the entities to which it is exposed.
The amounts in thousands of euros obtained in relation to derivatives outstanding at year-end
with an impact on equity (note 23), after applying, where applicable, the percentage of ownership
interest, are shown below.
Impact on Equity:
Global consolidation
Equity method
Hedging derivatives
+25 pb
+50 pb
+100pb
4,982
3,056
10,190
5,995
21,224
11,444
During 2021, despite the impact of COVID-19, there was no significant increase in the risk of bad
debts, with the Group’s average collection periods remaining in line with historical levels.
h) Brexit risk
Risk hedging financial derivatives
In general, the financial derivatives contracted by the Group are treated for accounting purposes
in accordance with the accounting hedging regulations set out in these financial statements. The
main financial risk hedged by the Group through derivative instruments relates to changes in the
floating interest rates to which the financing of Group companies is linked. The financial deriva-
tives 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 interest rate curve of
the Euro, coming in at around 0.05% in the medium/long term as at 31 December 2021, assum-
ing an increase of 25 bp, 50 bp and 100 bp.
Exposure to Brexit is mitigated by the natural hedge of keeping assets and liabilities in the same
currency. At the close of these consolidated financial statements, the Group’s activities in the
country were not affected by Brexit.
The Group’s activity in the United Kingdom is primarily concentrated in the Environmental Servic-
es business area, mainly through its shareholding in the FCC Environment UK subgroup, which
engages in the treatment, disposal and collection of waste, and also in the management of waste
recovery and incineration plants. In addition, although to a lesser extent, the FCC Group maintains
a presence in the country by exporting cement and carrying out construction projects. At the end
of the current year, the FCC Group has recorded €855,745 thousand in turnover (€668,618 thou-
sand in 2020) (note 28) and holds assets totalling €1,765,509 thousand (€1,712,455 thousand in
2020) in the United Kingdom.
The net investment held in pounds sterling amounts to €517,829 thousand at year-end 2021
(€407,302 thousand in year 2020) (note 18.d). A sensitivity analysis is provided below showing
the potential impact on the Group’s results and equity in the event that the exchange rate of the
pound sterling against the euro were to increase or decrease by 10%:
+ 10%
- 10%
Profit and Loss
(449)
449
Equity
41,525
(41,525)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 106 of 144
_ 368
The gross financial debt held in pounds sterling at 31 December 2021 amounts to €358.3 million
(€364.9 million in 2020) and is concentrated in the aforementioned FCC Environment UK sub-
group, comprising various loans and project finance bonds at fixed or variable rates hedged with
hedging derivatives that transform it into a fixed rate at a weighted average rate of 4.5%, so there
is no interest rate risk in the cash flows arising from the debt denominated in pounds sterling.
In the light of the status created by the COVID-19 crisis, the Group has carried out an analysis of
the main estimates affecting the accompanying consolidated financial statements:
– Goodwill: The Group has updated the various impairment tests for goodwill recognised. Al-
though the goodwill corresponding to Corporación Uniland’s cash-generating unit has been
impaired, this impairment did not arise from the impact of COVID-19 (note 7).
i) COVID-19 risk
The COVID-19 pandemic has had a series of impacts on the accompanying consolidated finan-
cial 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 Group has been limited given that
the Water and Environment segments, which represent the most substantial part of the Group’s
revenues and results, include activities that the various national authorities have considered as
essential without relevant interruptions in activity or loss of profitability in most of the assets. In re-
lation to the other activities, such as Construction, which has a smaller weight in the Group’s total
activity, the pandemic has led to the temporary interruption of part of the portfolio of construction
contracts in progress, and also, where appropriate, to some inefficiencies in the supply chain,
circumstances which inevitably have an impact on project costs and delivery times. Measures
have been taken to bring costs in line with the new activity levels and as of today all activity has
resumed, so no material unprovisioned impairments are expected. The Cement Area shows a
similar evolution in relation to COVID-19 risk, although it has been adversely affected by the rise
in energy prices.
In this regard, as shown in the accompanying consolidated income statement, the Group main-
tains a positive “Profit from operations” of €802,210 thousand (€572,740 thousand in 2020), which
represents 12.0% of turnover (9.3% in 2020). “Cash flows from operating activities” amounted to
€746,246 thousand (€605,074 thousand in 2020), as can be seen in the accompanying consol-
idated cash flow statement.
– Real estate investments: Following the acquisition of control of the Realia Business Group
and the company Jezzine Uno, S.L.U., the FCC Group has included €2,069,187 thousand of
investment property in its accompanying consolidated balance sheet, which is measured at
fair value at the end of the period, with no decrease in fair value (notes 3 and 9).
– Rest of fixed assets. The recoverable value of the main fixed and non-current assets that
could show signs of impairment has been reviewed, in particular, those associated with the
concession businesses (Notes 7 and 8). The only significant impairment that has occurred
during the year has been that corresponding to quarries of the Cement activity as a result of
the expected reduction of their useful life for an amount of €36,011 thousand (note 27).
– Financial instruments: The recoverable value of the main financial instruments has been re-
viewed, with special attention paid to investments accounted for using the equity method
(Note 12).
– Furthermore, with regard to trade sales ledgers, no significant non-payment 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 2020, 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.
– Provisions: The level of provisions (note 19) is considered suitable to cover all risks considered
probable.
– Real estate inventory assessment: The heading “Inventories” includes real estate assets with a
net book value of €804,423 thousand at year-end 2021 (€452,633 thousand at the end of the
previous year). In this regard, during the year the fair value estimates of some of the main real
estate inventories were updated by independent third parties and there were no significant
impairment losses (note 15).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 107 of 144
_ 369
– 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,
In view of the above, considering the limited impact, the measures undertaken to secure the as-
sets as well as the existing liquidity buffers, the Group has prepared its financial statements on a
going concern basis, as there are no doubts about the Group’s continuity.
j) Climate change risks
The Group’s activities may be impacted by adverse weather conditions, such as floods or other
natural disasters, and in some cases by decreases in temperature that may make it difficult, or
even impossible in extreme cases, to carry out its activities, such as in the case of severe frost in
the construction activity.
The Group takes all appropriate measures to adapt to the effects of climate change and to mit-
igate its possible effects on its business and fixed assets, as shown by the environmental provi-
sions set aside for this purpose (note 19).
The Group is committed to the decarbonisation of the activities it carries out, for which it uses
the most efficient technologies in the fight against climate change and, due to the very nature of
some of the activities it carries out, it promotes the circular economy. In order to achieve these
objectives, the Group implements specific policies in its activities.
The Construction Area has an Integrated Policy to analyse environmental incidents, the involve-
ment of the interested parties and the establishment of a plan to reduce the significant impacts of
the activities of the works, emphasising the mitigation of the generation of waste, the consump-
tion of resources, the generation of noise and vibrations, promoting the use of sustainable and
reusable materials and the sustainable use of water. It has environmental certifications in several
of the countries in which it operates, as well as environmental certification according to ISO 14001
at the centres located in Spain at some of its main investees.
The very nature of the Environmental Services Area aims to protect and conserve the environment
and contribute to the circular economy by treating waste as a resource, through its reuse and
energy recovery. Likewise, it uses technologies and equipment to optimise water consumption,
promoting a rational use and the use of water from alternative sources, such as the use of rainwa-
ter. As for policies aimed at optimising energy consumption, Spain has an Energy Management
System certified in accordance with the ISO 50001 standard and projects for the use of landfill
gas to generate electricity and hot water.
In 2021, the Water Area was the first company in the sector to certify the Strategy for the Contri-
bution of the Sustainable Development Goals, by AENOR. Likewise, the Area has implemented
energy management policies with the aim of optimising energy consumption at its facilities, a poli-
cy that is reflected in the calculation of the company’s Carbon Footprint at its operations in Spain,
verified in accordance with the guidelines of the UNE-ISO 14064 Standard by AENOR, where the
impact of energy management (Scope 2) can be seen in the 13% reduction in emissions com-
pared to the previous year. The Area has also implemented policies to reduce greenhouse gas
emissions, through the signing of a PPA (Power Purchase Agreement) contract for renewable en-
ergies (photovoltaic) and projects to install renewable energy (photovoltaic) at some of its facilities.
The Cement Area takes measures that are specified at each facility, taking into account the
current context of each one, its technological, human and economic resources, the applicable
legislation and the expectations of the interested parties. The objectives of such measures are to
promote the circular economy and to reduce greenhouse gas emissions by increasing material
and energy recovery with a greater use of decarbonised raw materials, recoverable waste and
biomass fuels, increasing energy efficiency through the optimisation of the fuel mix and the use
of expert systems in the manufacturing process and transition to LED lighting and increasing the
mix of renewable energies through solar and/or wind energy facility projects and boosting the
consumption of biomass in clinker manufacturing.
As a result of the above, the Group has prepared its financial statements on a going concern
basis, as there are no doubts about the Group’s continued existence.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 108 of 144
_ 370
31. Information on transactions
The senior executives listed below, who are not members of the Board of Directors, received total
remuneration of 1,908 thousand euros (1,832 thousand euros in 2020).
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 2021 and 2020, to be paid by the latter or any of the
Group companies, jointly managed or associated, are as follows:
Fixed remuneration
Other payments
2021
525
1,933
2,458
2020
525
1,420
1,945
2021
Marcos Bada Gutiérrez
Felipe B. García Pérez
Miguel A. Martínez Parra
Félix Parra Mediavilla
2020
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
Note 25 “Pension plans and similar obligations” describes the insurance taken out in favour of
certain executive directors and senior managers.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 109 of 144
_ 371
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
Position
Name or corporate name of
the director
Company name
of the Group entity
Position
ALICIA ALCOCER KOPLOWITZ CEMENTOS PORTLAND
DIRECTOR
VALDERRIVAS, S.A.
REALIA BUSINESS, S.A.
DIRECTOR
GERARDO KURI KAUFMANN
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
CHIEF EXECUTIVE OFFICER
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
ALEJANDRO ABOUMRAD
GONZÁLEZ
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
FCC AQUALIA, S.A.
DIRECTOR
REPRESENTATIVE OF THE
DIRECTOR INMOBILIARIA AEG,
S.A. DE C.V.
DIRECTOR AND CHAIRMAN OF
THE BOARD OF DIRECTORS
FCC SERVICIOS
MEDIOAMBIENTE HOLDING,
S.A.U.
CHAIRMAN
ANTONIO GÓMEZ GARCÍA
FCC AMÉRICAS, S.A. DE C.V.
ALTERNATE DIRECTOR
PABLO COLIO ABRIL
FCC MEDIO AMBIENTE, S.A.U. CHAIRMAN
FCC AQUALIA, S.A.
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.
DEPUTY CHAIRMAN
DEPUTY CHAIRMAN
GUZMAN ENERGY O&M, S.L.
CHAIRMAN
FCC AUSTRIA ABFALL
SERVICE AG
CHAIRMAN
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 2021, no significant transactions were performed entailing a transfer of assets or liabilities be-
tween Group companies and their executives and directors.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 110 of 144
_ 372
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 140,983 thousand euros
(180,131 thousand euros in 2020) from Group companies billing associates and joint ventures.
Likewise, purchases made from associates and joint ventures amounting to 31,194 thousand
euros (22,714 thousand euros in 2020) 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:
– Granting of a loan by Fomento de Construcciones y Contratas, S.A. to Realia Business, S.A.
amounting to €120,000 thousand.
– Execution of construction and service provision contracts between Group companies and
investees by other parties related to the controlling shareholder, as follows:
Buyer
Seller
Realia Patrimonio, S.L.U.
FCC Industrial e Infraestructuras
Energéticas S.A.U.
FCC Medio Ambiente,S.A.
Servicios Especiales de
Limpieza,S.A.
Fedemes,S.L.
Realia Business, S.A.
FCC Industrial e Infraestructuras
Energéticas S.A.U.
2021
1,193
162
496
13
2
2020
1,197
134
467
13
–
FCC Construcción, S.A.
12,001
23,938
Fomento de Construcciones y
Contratas,S.A.
Fedemes,S.L.
F C Y C , S.L. Unipersonal
Aridos de Melo,S.L.
FCC Construcción, S.A.
FCC Medio Ambiente,S.A.
Fomento de Construcciones y
Contratas,S.A.
Fedemes,S.L.
Realia Business, S.A.
FCC Construcción, S.A.
FC Y C , S.L. Unipersonal
142
101
296
21,383
9
54
112
2,371
2
90
11
120
101
–
–
–
–
–
–
–
–
34
38,438
26,004
– Acquisition of shares of Realia Business, S.A. representing 13.11% of its share capital by the
Company FC y C, S.L. Sole-Shareholder Company, amounting to 83,941 thousand euros.
Cementos Portland
Valderrivas,S.A.
Realia Patrimonio, S.L.U.
– Capital increase of FC y C, S.L. Unipersonal through the non-monetary contribution of all the
shares of Jezzine Uno, S.L.U. by Soinmob Inmobiliaria Española, S.A. for €226,200 thousand.
Fomento de Construcciones y
Contratas,S.A.
Realia Patrimonio, S.L.U.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 111 of 144
_ 373
In addition, the following balance sheet balances are maintained:
– Agreement for the provision of IT services by Claro Enterprise Solutions, S.L. to Fomento de
Construcciones y Contratas, S.A. for €13,446 thousand.
– Agreement between FCC Industrial e Infraestructuras Energeticas, S.A.U. and Realia Patrimo-
nio S.L.U., relating to the supply and installation of intercoms by FCC Industrial, S.S. in Torre
Fira de Barcelona, owned by Realia, for €13 thousand.
– Construction contract for FCC Construcción, S.A. for 80 homes, garages, storage rooms and
sports areas, Phase 2 of PP41 in Alcalá de Henares (Madrid) as a client of Realia Business,
S.A. for €12,740 thousand (excluding VAT).
In addition, other transactions are carried out on an arm’s length basis, mainly telephone and in-
ternet access services, with related parties related to the majority shareholder for an insignificant
amount.
e) eMechanisms established to detect, determine and resolve possible
conflicts of interest between the Parent Company and/or its Group
and its directors, executives or significant shareholders.
The FCC Group has established precise mechanisms to detect, determine and resolve possible
conflicts of interest between Group companies and their directors, executives and significant
shareholders, as indicated in article 20 et seq. of the Board Regulations.
Receivable
Payable
Realia Patrimonio, S.L.U.
Cementos Portland Valderrivas,S.A.
Fomento de Construcciones y
Contratas,S.A.
Realia Business, S.A.
Fedemes,S.L.
Fomento de Construcciones y
Contratas,S.A.
F C Y C , S.L. Unipersonal
Asesoria financiera y de gestión,S.A.
Fomento de Construcciones y
Contratas,S.A.
2021
140
24
38
120,000
21
32,258
2020
–
24
38
–
–
–
Fomento de Construcciones y
Contratas,S.A.
Realia Patrimonio, S.L.U.
2,664
2,716
Realia Business, S.A.
FC Y C , S.L. Unipersonal
FCC Medio Ambiente,S.A.
Realia Patrimonio, S.L.U.
44
23,017
–
22
–
3
178,206
2,803
– Agreement for the provision of services between Fomento de Construcciones y Contratas,
S.A. and Vilafulder Corporate Group, S.L.U. for a total annual amount of €338 thousand.
– Agreement for the provision of services between Cementos Portland Valderrivas, S.A. and
Gerardo Kuri Kaufmann for €175 thousand.
– Agreement for the provision of services between Realia Business, S.A. and Gerardo Kuri Kau-
fmann for €175 thousand.
– As part of the refinancing of the debt associated with the Spanish activities of the Cementos
Portland Valderrivas Group carried out in 2016, a subordinated financing agreement was
entered into with Banco Inbursa, S.A., Institución de Banca Múltiple, with a carrying amount
at 31 December 2021 of €70,085 thousand. The finance costs incurred in the business year
totalled €1,764 thousand.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 112 of 144
_ 374
32. Fees paid to auditors
33. Events after the closing date
The fees for audit services accrued in 2021 and 2020 for audit services and other assurance ser-
vices, as well as other professional services, provided to the various Group and jointly managed
companies comprising the FCC Group by the principal auditor and other auditors participating in
the audit of the various Group companies, and also by entities related to them, both in Spain and
abroad, are shown in the following table:
On 2 February 2022, FCC Aqualia, S.A. acquired a 65% stake in Georgia Global Utilities JSC for
USD 180 million, a water and renewable energy utility in Georgia. This acquisition is the first step
in a global operation in which FCC Aqualia, S.A. will end up holding 80% of the water utilities
business when a second phase of the agreement is completed, still subject to the fulfilment of
suspensive conditions, which basically consists of the spin-off of the renewable energy business.
2021
Principal
auditor
Other
auditors
3,375
336
613
1,037
Total
3,988
1,373
2020
Principal
auditor
Other
auditors
3,386
261
718
1,220
Total
4,104
1,481
3,711
1,650
5,361
3,647
1,938
5,585
4
5
9
1,545
1,011
2,556
1,549
1,016
2,565
–
20
20
1,887
610
2,497
1,887
630
2,517
Audit services
Other assurance
services
Total audit and
related services
Tax advisory services
Other services
Total professional
services
TOTAL
3,720
4,206
7,926
3,667
4,435
8,102
On 25 January 2022, FCC Aqualia, S.A. cancelled in advance the loan agreement for variable
interest provisions amounting to 200,000 thousand Euros which was fully drawn down and in
cash at 31 December 2021 (note 20). Also, on 25 January 2022, FCC Aqualia, S.A. signed a new
loan agreement for variable interest provisions maturing on 31 March 2023 for the same amount.
This new contract can be used for the Company’s cash requirements and for the redemption of
the GGU bonds mentioned above.
There have been no further significant events between the end of the reporting period and the
date of authorisation of these financial statements.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 113 of 144
_ 375
Annexe I. Fully consolidated subsidiaries
Registered office
% Effective
ownership
Auditor
Company
ENVIRONMENTAL SERVICES
Alfonso Benítez, S.A.
Aparcamientos Concertados, S.A.
Armigesa, S.A.
Azincourt Investment, S.L.
Castellana 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
Federico Salmón, 13 – Madrid
Av. Camino de Santiago, 40 – Madrid
Ctra. Puebla Albortón a Zaragoza Km. 25– Zaragoza
Ecodeal-Gestao Integral de Residuos Industriais, S.A.
Portugal
Ecogenesis Societe Anonime Rendering of Cleansing and Waste Management Services
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.
FCC Environmental Services (USA) Llc.
FCC Equal CEE, S.L.
FCC Equal CEE Andalucía, S.L.
FCC Equal CEE Baleares, S.L.U.
FCC Equal CEE C. Valenciana, S.L.
United Kingdom
Federico Salmón, 13 – Madrid
Federico Salmón, 13 – Madrid
Portugal
United Kingdom
USA
USA
USA
USA
Federico Salmón, 13 – Madrid
Av. Molière, 36 – Málaga
Riu Magre, 6 P.I. Patada del Cid – Quart de Poblet (Valencia)
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Capital Auditors
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Atenea
100.00
100.00
51.00
100.00
100.00
100.00
60.00
53.63
51.00
100.00
100.00
66.60
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 114 of 144
_ 376
Company
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. Unipersonal
Gamasur Campo de Gibraltar, S.L.
Gandia Serveis Urbans, S.A.
Geneus Canarias, S.L.
Registered office
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.
Portugal
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 Česká Republika s.r.o.
FCC České Budějovice s.r.o.
FCC Dačice s.r.o.
FCC Eko d.o.o.
FCC EKO Polska sp. z.o.o.
FCC Eko-Radomsko sp. z.o.o.
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
Hungary
Czech Republic
Austria
Austria
Czech Republic
Slovakia
Hungary
Czech Republic
Czech Republic
Czech Republic
Serbia
Poland
Poland
Austria
Austria
Romania
Austria
Austria
% Effective
ownership
Auditor
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
100.00
100.00
100.00
100.00
100.00
Ernst & Young
Ernst & Young
Ernst & Young
Vaciero Auditores
Centium
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 115 of 144
_ 377
Company
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 Prostějov s.r.o.
FCC Regios a.s.
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 Žabčice s.r.o.
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.
Registered office
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
Czech Republic
Austria
Czech Republic
Slovakia
Poland
Czech Republic
% Effective
ownership
Auditor
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
89.00
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
100.00
Ernst & Young
49.66
85.00
80.00
100.00
Ernst & Young
Ernst & Young
Ernst & Young
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 116 of 144
_ 378
Company
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
Finstop Limited
Focsa Services (UK) Limited
Hykeham O&M Services Limited
Integrated Waste Management Limited
Landfill Management Limited
Lincwaste Limited
Norfolk Waste Limited
Registered office
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
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
% Effective
ownership
Auditor
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
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 117 of 144
_ 379
Company
Registered office
% Effective
ownership
Auditor
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.
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
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
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
51.00
51.00
51.00
51.00
51.00
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 118 of 144
_ 380
Company
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.
Manipulación y Recuperación MAREPA, S.A.
Premier Waste Services, LLC.
Recuperació de Pedreres, S.L.
Serveis Municipals de Neteja de Girona, S.A.
Servicio de Recogida y Gestión de Residuos Sólidos Urbanos del
sConsorcio Vega Sierra Elvira, S.A.
Servicios de Levante, S.A.
Servicios Especiales de Limpieza, S.A.
Sistemas y Vehículos de Alta Tecnología, S.A.
Telford & Wrekin Services Limited
Tratamientos y Recuperaciones Industriales, S.A.
Valoración y Tratamiento de Residuos Urbanos, S.A.
Valorización y Tratamiento de Residuos, S.A.
Registered office
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 (Baleares)
Av. San Martín de Valdeiglesias, 22 – Alcorcón (Madrid)
USA
Balmes, 36 Entresuelo – Barcelona
Pl. del Vi, 1 - Girona
% Effective
ownership
Auditor
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
100.00
80.00
75.00
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Cataudit Auditors
Associats
Antonio Huertas Remigio, 9 – Maracena (Granada)
60.00
Capital Auditors
Camino Pla de Museros, s/n – Almazora (Castellón)
Federico Salmón, 13 – Madrid
Federico Salmón, 13 – Madrid
United Kingdom
Balmes, 36 Entresuelo – Barcelona
Riu Magre, 6 – P.I. Patada del Cid – Quart de Poblet (Valencia)
100.00
100.00
100.00
65.91
100.00
75.00
80.00
Ernst & Young
Ernst & Young
Ernst & Young
Vaciero Auditores
Ernst & Young
Capital Auditors
Capital Auditors
Alameda de Mazarredo, 15-4º A – Bilbao (Vizcaya)
100.00
Vaciero Auditores
Societat Municipal Mediambiental d’Igualada, S.L.
Pl. de l’Ajuntament, 1 – Igualada (Barcelona)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 119 of 144
_ 381
Company
AQUALIA
Abrantaqua – Serviço de Aguas Residuais Urbanas do
Municipio De Abrantes, S.A.
Acque di Caltanissetta, S.p.A.
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 Gestión Los Cabos SACV
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.
Aqualia Intech, S.A.
Aqualia Latinoamérica, S.A.
Registered office
Portugal
Italy
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 (Sevilla)
Portugal
Portugal
Cristalería, 24 – Cádiz
Av. Camino de Santiago, 40 – Madrid
Mexico
France
Mexico
Serbia
Bosnia-Herzegovina
Czech Republic
Montenegro
Kosovo
Av. Camino de Santiago, 40 – Madrid
Colombia
Aqualia Mace Contracting, Operation & General Maintenance Llc.
Emiratos Árabes Unidos
Aqualia Mace Qatar
Aqualia México, S.A. de C.V.
Aqualia New Europe B.V.
Aqualia Portugal, S.A.
Aqualia Villa del Rosario, S.A.
Aquamaior – Aguas de Campo Maior, S.A.
Qatar
Mexico
Netherlands
Portugal
Colombia
Portugal
% Effective
ownership
Auditor
30.60
50.22
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
51.00
51.00
51.00
26.01
26.01
51.00
51.00
51.00
51.00
51.00
Oliveira, Reis &
Asociados
Ernst & Young
Capital Auditors
Centium Auditores
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
SNR Audit
CMC Audit s.r.o.
Ernst & Young
Ernst & Young
Deloitte
Mazars
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 120 of 144
_ 382
Company
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.L.
Empresa Mixta de Conservación de la Estación Depuradora de Aguas Residuales
de Butarque, S.A.
Entemanser, S.A.
FCC Aqualia, S.A.
FCC Aqualia América, S.A.Unipersonal
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
Registered office
Mexico
France
Portugal
Av. Martín Alonso Pinzón, 8 – Huelva
Federico Salmón, 13 – Madrid
Madre Rafols, 2 – Zaragoza
Mexico
Federico Salmón, 13 – Madrid
Princesa, 3 – Madrid
Castillo, 13 – Adeje (Santa Cruz de Tenerife)
Av. Camino de Santiago, 40 – Madrid
Uruguay, 11 – Vigo (Pontevedra)
USA
Urbanización Las Buganvillas, 4 – Vera (Almería)
Arabia Saudí
Pincel, 25 – Sevilla
Infraestructuras y Distribución General de Aguas, S.L.U.
La Presa, 14 – Adeje (Santa Cruz de Tenerife)
Qatarat Saquia Desalination
Servicios Hídricos Agricultura y Ciudad, S.L.U.
Severomoravské 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.
Arabia Saudí
Alfonso XIII – Sabadell (Barcelona)
Czech Republic
Argelia
Jacometrezo, 4 – Madrid
Federico Salmón, 13 – Madrid
France
Federico Salmón, 13 – Madrid
Czech Republic
Urbanización Las Buganvillas, 4 – Vera (Almería)
% Effective
ownership
Auditor
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
26.01
51.00
51.00
13.01
51.00
51.00
51.00
51.00
51.00
30.60
Ernst & Young
SNR Audit
Oliveira, Reis &
Asociados
Ernst & Young
Capital Auditors
CTS Consultores
Ernst & Young
Ernst & Young
Berkowitz Pollack
Brant
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Samir Hadj Ali
Ernst & Young
SNR Audit
Ernst & Young
CMC Audit s.r.o.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 121 of 144
_ 383
Company
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.
Consorcio FCC Meco y Santa Fe de Costa Rica y Nicaragua, S.A.
Desarrollo y Construcción DEYCO CRCA, S.A.
Edificadora MSG, S.A. (Panamá)
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.
Registered office
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
El Salvador
Nicaragua
Mexico
Colombia
Panama
Colombia
Balmes, 36 – Barcelona
Costa Rica
Chile
Costa Rica
% Effective
ownership
Auditor
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
100.00
100.00
50.00
50.00
50.00
100.00
100.00
100.00
100.00
100.00
Ernst & Young
Capital Auditors
ASTAF Auditores y
Consultores
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Deloitte
Ernst & Young
ASTAF Auditores y
Consultores
Ernst & Young
Ernst & Young
Ernst & Young
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 122 of 144
_ 384
Company
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
FCC Construction Northern Ireland Limited
FCC Construçoes do Brasil Ltda.
FCC Edificadora CR, S.A.
FCC Electromechanical Llc.
FCC Elliott Construction Limited
FCC Industrial de Panamá, S.A.
Registered office
Mexico
Peru
Romania
Australia
USA
Netherlands
Ireland
United Kingdom
Brazil
Costa Rica
Arabia Saudí
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.
FCC Soluciones de Seguridad y Control, S.L.
Fomento de Construcciones Colombianas, S.A.S.
Fomento de Construcciones y Contratas Canadá Ltd.
Guzmán Energy O&M, S.L.
Impulsora de Proyectos Proserme, S.A. de C.V.
Mantenimiento de Infraestructuras, S.A.
Meco Santa Fe Limited
Megaplás, S.A. Unipersonal
Megaplás Italia, S.p.A.
Participaciones Teide, S.A.
Prefabricados Delta, S.A. Unipersonal
Peru
United Kingdom
Germany
Mexico
Federico Salmón, 13 – Madrid
Colombia
Canada
Av. Camino de Santiago, 40 – Madrid
Mexico
Federico Salmón, 13 2a planta – Madrid
Belize
Hilanderas, 4-14 – La Poveda – Arganda del Rey (Madrid)
Italy
Av. Camino de Santiago, 40 – Madrid
Federico Salmón, 13 – Madrid
% 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
52.13
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Ernst & Young
BPB
Mazars
Mazars
Ernst & Young
Mazars
Ernst & Young
Mazars
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Collegio Sindicale
Ernst & Young
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 123 of 144
_ 385
Company
Ramalho Rosa Cobetar Sociedade de Construçoes, S.A.
Servicios Dos Reis, S.A. de C.V.
Registered office
Portugal
Mexico
CEMENT
Áridos de Navarra, S.A.
Canteras de Alaiz, 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.
REAL ESTATE
Costa Verde Habitat, S.L.
F C y C, S.L.
FCC Real Estate (UK) Limited
Grupo Realia Business
Boane 2003, S.A. Unipersonal
Guillena Golf, S.L. Unipersonal
Hermanos Revilla, S.A.
Inversiones Inmobiliarias Rústicas y Urbanas 2000, S.L.
Planigesa, S.A.
Realia Business, S.A.
Realia Contesti, S.R.L.
Estella, 6. Pamplona (Navarra)
Dormilatería, 72 – Pamplona (Navarra)
María Tubau, 9 – 4 planta – Madrid
Dormilatería, 72 – Pamplona (Navarra)
United Kingdom
United Kingdom
Conradors (P.I. Marratxi) – Marratxi (Baleares)
Tunisia
Tunisia
María Tubau, 9 - 4 planta - Madrid
USA
Netherlands
Netherlands
Av. Camino de Santiago, 40 – Madrid
Federico Salmón, 13 – Madrid
United Kingdom
Paseo de la Castellana, 41 – Madrid
Paseo de la Castellana, 216 – Madrid
Paseo de la Castellana, 41 – Madrid
Av. Camino de Santiago, 40 – Madrid
Av. Camino de Santiago,40– Madrid
Av. Camino de Santiago, 40 – Madrid
Romania
% Effective
ownership
Auditor
100.00
100.00
Ernst & Young
65.66
69.66
87.61
99.49
87.61
99.49
67.97
87.31
87.41
50.77
99.49
99.49
99.49
80.03
80.03
80.03
51.00
40.76
35.77
27.18
30.97
40.76
40.76
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 124 of 144
_ 386
Company
Realia Patrimonio, S.L.U.
Servicios Índice, S.A.
Valaise, S.L. Unipersonal
Vela Borovica Koncern d.o.o.
OTHER ACTIVITIES
Asesoría Financiera y de Gestión, S.A.
Autovía Conquense, S.A.
Cemark - Mobiliario Urbano e Publicidade, S.A.
Concesionaria Atención Primaria, S.A.
Registered office
Av. Camino de Santiago, 40 – Madrid
Av. Camino de Santiago, 40 – Madrid
Av. Camino de Santiago, 40 – Madrid
Croatia
Federico Salmón, 13 – Madrid
Av. Camino de Santiago, 40 – Madrid
Portugal
Gremi de Sabaters, 21 (Loc. A. 15.2) – Palma de Mallorca (Baleares)
Concesionaria Túnel de Coatzacoalcos, S.A. de C.V.
Mexico
FCC Concesiones Al Ansar, 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.
Jezzine Uno, S.L. Unipersonal
PPP Infraestructure Investments B.V.
Federico Salmón, 13 – Madrid
Av. Camino de Santiago, 40 – Madrid
Luxembourg
Luxembourg
Av. Camino de Santiago, 40 – Madrid
Federico Salmón, 13 – Madrid
Av. Camino de Santiago, 40 – Madrid
Netherlands
Vialia Sociedad Gestora de Concesiones de Infraestructuras, S.L.
Av. Camino de Santiago, 40 – Madrid
% Effective
ownership
Auditor
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Baker & Tilly
Ernst & Young
Crowe
40.76
20.58
40.76
80.03
100.00
100.00
100.00
82.50
85.60
100.00
100.00
100.00
100.00
100.00
100.00
80.03
100.00
100.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 125 of 144
_ 387
Annexe II. Companies jointly controlled with third parties outside the Group
(consolidated using the equity method)
Company
Registered office
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 (Girona)
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 (Girona)
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.
Servicios Urbanos de Málaga, S.A.
Severn Waste Services Limited
Ctra. BV – 1224 Km. 6,750 – El Pont de Vilomara i
Rocafort (Barcelona)
Calle El Matorral (Parque Actividades Medioambientales) –
Aznalcóllar (Sevilla)
Av. Camino de Santiago, 40 – Madrid
United Kingdom
Carrying amount
of the backlog
2021
2020
% Effective
ownership
Auditor
8,627
1,334
7,389
121
1,319
326
305
179
372
4,209
619
8,714
(2,660)
614
3,129
3,191
213
9,808
1,250
7,803
138
1,284
360
316
165
322
4,210
359
11,781
(1,969)
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
Ernst & Young
Deloitte
Castellà Auditors
Consultors S.L.P.
Audinfor
Audinfor
Audinfor
Auditoria i Control
Auditors S.L.P.
Capital Auditors
Deloitte
Deloitte
Hispanobelga
Economistas Auditores,
S.L.P.
211
50.00
1,924
3,216
199
50.00
KPMG
51.00
50.00
Deloitte
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 126 of 144
_ 388
Company
Registered office
Tratamiento Industrial de Residuos Sólidos, S.A.
Rambla Cataluña, 91 – Barcelona
Carrying amount
of the backlog
2021
1,037
2020
1,580
% Effective
ownership
Auditor
33.33
Castellà Auditors
Consultors, S.L.P.
Camino Artigabidea, 10 – Bilbao (Vizcaya)
13,834
16,060
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 – Girona
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.
Travesia del carril, 2 – Girona
HA Proyectos Especiales Hidráulicos S. de R.L. de C.V.
Orasqualia Construction, S.A.E.
Orasqualia for the Development of the Waste Water Treatment Plant S.A.E.
Orasqualia for Operation and Maintenance S.A.E.
CONSTRUCTION
ACS FCC Canada Inc.
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.
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.
Elaboración de Cajones Pretensados, S.L.
Mexico
Egypt
Egypt
Egypt
Canada
Mexico
Panama
Mexico
Ripa, 1 – Bilbao (Vizcaya)
Mexico
Mexico
Mexico
Mexico
Mexico
Av. Camino de Santiago, 40 – Madrid
−
853
308
162
299
(2,995)
1,596
1,650
1,045
(100)
14,552
1,153
–
115
−
−
5,820
−
1,479
(9,006)
1,446
−
2
−
909
237
162
296
(2,996)
1,583
1,701
992
(100)
11,943
1,130
–
108
−
8
5,735
−
1,403
(29,993)
1,114
−
2
Baker & Tilly
Capital Auditors
Kreston Iberaudit
Deloitte
Audinfor
Cataudit Auditors
Associats, S.L.
Grant Thornton SC
KPMG
Deloitte
Deloitte
Deloitte
Charman Auditores
Deloitte
Deloitte
Grant Thornton SC
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
50.00
49.00
24.50
51.00
40.00
50.00
50.00
50.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 127 of 144
_ 389
Company
Registered office
Integral Management Future Renewables, S.L.
A Condomiña, s/n – Ortoño (La Coruña)
North Tunnels Canada Inc.
OHL Co Canada & FCC Canada Ltd. Partnership
Operaciones y Servicios para la Industria de la Construcción, S.A. de C.V.
Servicios Empresariales Durango-Mazatlán, S.A. de C.V.
Canada
Canada
Mexico
Mexico
Carrying amount
of the backlog
2021
2020
−
−
(71,126)
−
124
3,488
(1,674)
(65,044)
−
119
% Effective
ownership
Auditor
50.00
50.00
50.00
50.00
51.00
Ctra. N 340 km. 1229,5 – Subirats (Barcelona)
1,750
3,243
49.64
Ernst & Young
CEMENT
Pedrera de l’Ordal, S.L.
REAL ESTATE
Realia Group
As Cancelas Siglo XXI, S.L.
MDM-Teide, S.A.
Teide-MDM Quadrat, S.A.
OTHER ACTIVITIES
Av. Camino de Santiago, 40 – Madrid
Panama
Panama
Ibisan Sociedad Concesionaria, S.A
Av. Isidor Macabich, s/n. Sant Rafel de Sa Creu (Baleares)
Sociedad Concesionaria Tranvía de Murcia, S.A.
Paseo de la Ladera, 79– Murcia
Grupo FM Green Power Investments
Enestar Villena, S.A.
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
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
TOTAL VALUE OF CONSOLIDATED COMPANIES USING
THE EQUITY METHOD (JOINT VENTURES)
72,283
40,842
37,254
172
30
8,401
24,427
−
−
−
−
−
−
−
−
−
161
60
8,204
22,572
16,462
−
−
−
−
−
−
−
20.38
40.02
40.02
50.00
50.00
49.00
49.00
49.00
49.00
49.00
34.30
49.00
49.00
Ernst & Young
Deloitte
Deloitte
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Ernst & Young
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 128 of 144
_ 390
Annexe 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.Unipersonal
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.R.K. Technicke Sluzby s.r.o.
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.
Tev-Akva Kft.
FCC Group - PFI Holdings
CI III Lostock Efw Limited
Lostock Power Limited
Lostock Sustainable Energy Plant Limited
Pedro Lafayo, 6 - Ibiza
Slovakia
Hungary
Czech Republic
Hungary
Slovakia
Austria
Austria
Austria
Austria
Slovakia
Hungary
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Carrying amount
of the backlog
2021
2020
% Effective
ownership
Auditor
1,203
13
608
144
5,331
1
7,148
−
−
−
−
−
−
−
−
−
−
−
1,117
12
609
(91)
5,298
−
6,310
−
−
−
−
−
−
−
−
−
−
−
32,333
22,766
−
−
−
−
−
−
Menéndez Auditores
CGM Auditores, S.L.y
Villalba, Envid y Cia.
Auditores, S.L.P.
DULA Auditores, S.L.P.
Interauditor
Interauditor
Rittmann
Lázár Enikő
32.17
12.00
33.00
33.33
49.00
20.00
50.00
25.50
49.00
50.00
50.00
49.00
49.00
50.00
50.00
50.00
8.67
40.00
40.00
40.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 129 of 144
_ 391
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.
Carrying amount
of the backlog
Registered office
Cr. de Sóller Km. 8,2 – Palma de Mallorca (Baleares)
P.I. Ses Veles, (Cl. Romaní), 2 – Bunyola (Baleares)
Cr. de Sóller Km. 8,2 – Palma de Mallorca (Baleares)
Ctra. Soller Km. 8,2 Camino de Son Reus – Palma de
Mallorca (Baleares)
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)
2021
8,156
−
−
−
−
475
24
427
419
(66)
2020
6,783
−
−
−
−
499
62
440
179
(33)
Aguas del Puerto Empresa Municipal, S.A.
Aurora, 1 – El Puerto de Santa María (Cádiz)
3,924
3,910
Aigües de Blanes, S.A.
Aigües del Segarra Garrigues, S.A.
Aigües del Vendrell, S.A.
Codeur, S.A.
Canigó, 5 – Blanes (Girona)
C/ Mas d’en Colom, 14 – Tárrega (Lleida)
Vella, 1 – El Vendrell (Tarragona)
Mayor, 22 – Vera (Almería)
Concesionaria de Desalación de Ibiza, S.A.
Rotonda de Santa Eulalia, s/n – Ibiza (Baleares)
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)
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.
Av. Bartolomé Roselló, 18 – Ibiza (Baleares)
Oma n
Mexico
51
−
471
6,503
1,203
(5,396)
255
81
35
163
290
108
101
1,220
279
38
−
509
6,560
1,208
(5,396)
320
77
13
153
198
92
83
953
278
% Effective
ownership
Auditor
20.00
14.00
15.00
20.00
30.00
24.48
16.83
20.40
24.99
24.98
8.40
0.52
24.99
13.26
25.50
12.50
24.99
24.99
24.99
24.99
24.99
24.99
20.40
24.99
7.65
Deloitte
Deloitte
Centium Auditores
Audinfor
Deloitte
Deloitte
Acordia ACR, S.L
Deloitte
Gm Auditors SL
Deloitte
BDO Auditores
Deloitte
Vaciero Auditores
Vaciero Auditores
Kreston Iberaudit
Centium Auditores
Vaciero Auditores
Deloitte
Ernst & Young
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 130 of 144
_ 392
Company
Registered office
Prestadora de Servicios Acueducto El Realito, S.A.de C.V.
Mexico
Proveïments d’Aigua, S.A.
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.
Astúries, 13 – Girona
Colombia
Mexico
Nicaragua
C/ Mas d’en Colom, 14 – Tárrega (Lleida)
Mexico
Panama
Constructora de Infraestructuras de Aguas de Potosí, S.A. de C.V.
Mexico
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.
Euroconcretos de Nicaragua, S.A.
FCC Tarrio TX-1 Construçao Ltda
M50 (D&C) Limited
N6 (Construction) Limited
OHL-FCC GP Canada Inc.
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.
Costa Rica
Costa Rica
Mexico
Mexico
Mexico
Nicaragua
Brasil
Ireland
Ireland
Canada
Mexico
Anglesola, 6 - Barcelona
Ireland
Mexico
Mexico
Terminal Polivalente de Huelva, S.A.
La Marina, 29. Huelva
Carrying amount
of the backlog
2021
2020
1
637
6
1
603
8
9,325
9,136
2,239
7,473
4,497
4
(5)
(1,681)
(68)
1,096
6
406
−
−
2,194
7,193
3,518
4
(4)
(1,548)
(60)
422
6
319
−
−
(3,273)
(38,413)
(3,273)
(38,413)
−
1
1
212
3
34
−
−
1
1
951
2
32
−
% Effective
ownership
Auditor
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
40.00
70.00
42.50
42.50
50.00
24.50
25.00
50.00
14.28
14.28
31.50
GPM Auditors Associats
Deloitte
Deloitte
Deloitte
Deloitte
Deloitte
Ernst & Young
Deloitte
Deloitte
Deloitte
Mazars
Deloitte
Deloitte
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 131 of 144
_ 393
Company
CEMENT
Aplicaciones Minerales, S.A.
Canteras y Hormigones VRE, S.A.
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.
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.
Hormigones Castro, S.A.
Hormigones de la Jacetania, S.A.
Hormigones del Baztán, S.L.
Hormigones Delfín, S.A.
Registered office
Carrying amount
of the backlog
2021
2020
% Effective
ownership
Auditor
Camino Fuente Herrero - Cueva Cardiel (Burgos)
Berroa (P.I. La Estrella)- Tanojar (Navarra)
479
(312)
18,327
504
(370)
9,973
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
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)
−
−
−
−
−
−
−
−
−
−
−
−
−
−
283
820
432
870
2,390
158
899
6,090
−
−
−
−
−
−
−
−
−
−
−
−
−
−
303
1,327
414
857
2,369
146
833
5,941
34.39
49.74
44.77
44.77
44.77
44.77
44.77
44.77
44.77
44.77
44.77
44.77
44.77
44.77
44.77
44.77
35.04
62.18
49.74
49.74
39.80
43.80
49.74
49.74
Deloitte
KPMG
KPMG
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)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 132 of 144
_ 394
Company
Lázaro Echevarría, S.A.
Navarra de Transportes, S.A.
Novhorvi, S.A.
Portcemen, S.A.
Terminal Cimentier de Gabes-Gie
Vescem-LID, S.L.
REAL ESTATE
Grupo Realia Business
Las Palmeras de Garrucha, S.L.
OTHER ACTIVITIES
Future Valleys Project Co Limited
Future Valley Hold Co Limited
Metro de Lima Línea 2, S.A.
Sigenera, S.L.
Registered office
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
Tunisia
Valencia, 245 - Barcelona
Mayor, 19 – Garrucha (Almería)
United Kingdom
United Kingdom
Peru
Av. Linares Rivas, 1 – La Coruña
World Trade Center Barcelona, S.A. de S.M.E.
Moll Barcelona (Ed. Este), s/n – Barcelona
TOTAL VALUE OF CONSOLIDATED COMPANIES
USING THE EQUITY METHOD (ASSOCIATED COMPANIES)
133.030
Carrying amount
of the backlog
2021
7,959
607
108
1,092
34
27
−
−
970
−
1,944
−
31,684
260
9,904
382,126
2020
8,065
525
125
1,195
33
27
−
278,103
971
−
13
−
26,215
380
10,137
% Effective
ownership
27.86
33.16
33.16
33.09
29.13
24.82
16.01
42.50
42.50
18.25
50.00
24.01
Auditor
KPMG
KPMG
Ernst & Young
Grant Thornton SC
Grant Thornton SC
Ernst & Young
Ernst & Young
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 133 of 144
_ 395
Annexe IV. Changes in the scope of consolidation
ADDITIONS
Company
Registered office
GLOBAL CONSOLIDATION
Aqualia Gestión Los Cabos SACV
Mexico
FCC Equal CEE Baleares, S.L.U.
Camino Fondo,27 - Palma (Illes Balears)
Jezzine Uno S.L. Unipersonal
Premier Waste Services, LLC.
Aqualia Gestión Los Cabos SACV
Av. Camino de Santiago, 40 – Madrid
USA
Mexico
FCC Equal CEE Baleares, S.L.U.
Camino Fondo,27 - Palma (Illes Balears)
PROPORTIONAL
Lúcios & RRC, ACE
JOINT VENTURES
Portugal
Future Valley Hold Co Limited
United Kingdom
DERECOGNITIONS
Company
GLOBAL CONSOLIDATION
Registered office
Agua y Gestión del Ciclo Integral, S.L.U. (1)
Av. Diego Martínez Barrio, 4 – Sevilla
Beootpad d.o.o. Beograd (2)
Bvefdomintaena Beteiligungsverwaltung GmbH (2)
Serbia
Austria
Carbocem, S.A. (2)
Cedinsa Concessionària, S.A. (3)
María Tubau, 9 – 4 planta – Madrid
Av. Josep Tarradellas, 38 – Barcelona
Cedinsa Conservació, S.L. Unipersonal (3)
Ctra. C-16 – Puig-Reig (Barcelona)
Cedinsa d’Aro Concessionària de la Generalitat de
Catalunya, S.A.Unipersonal (3)
Av. Josep Tarradellas, 38 – Barcelona
DERECOGNITIONS
Company
Registered office
Cedinsa Eix Llobregat Concessionària de la Generalitat
de Catalunya, S.A.Unipersonal (3)
Av. Josep Tarradellas, 38 – Barcelona
Cedinsa Eix Transversal Concessionària de la
Generalitat de Catalunya, S.A.Unipersonal (3)
Cedinsa Ter Concessionària de la Generalitat de
Catalunya, S.A.Unipersonal (3)
Av. Josep Tarradellas, 38 – Barcelona
Av. Josep Tarradellas, 38 – Barcelona
Compañía Catalana de Servicios, S.A. (4)
Balmes, 36 – Barcelona
Per Gestora, S.L. (2)
JOINT VENTURES
A.I.E. Itam Delta de la Tordera (2)
ACE Ribeiradio-Ermida (2)
ASSOCIATES
Federico Salmón, 13 – Madrid
Berlín, 38-48. Barcelona
Portugal
Concessió Estacions Aeroport L9, S.A. (5)
Av. Carrilet, 3 Edificio D – L’Hospitalet de
Llobregat (Barcelona
Helios Operación y Mantenimiento, S.L. (5)
Av. Camino de Santiago, 40 – Madrid
Integral Management Future Renewables, S.L. (5)
A Condomiña, s/n – Ortoño (La Coruña)
North Tunnels Canada Inc. (6)
Port Premià, S.A (2)
Urbs Iudex et Causidicus, S.A. (5)
Villena O&M, S.L. (5)
Canadá
Balmes, 36. Barcelona
Av. Carrilet, 3. L’Hospitalet de Llobregat
(Barcelona)
Av. Camino de Santiago, 40 – Madrid
(1) Derecognition by merger with FCC Aqualia, S.A.
(2) Derecognition by liquidation
(3) Derecognition by disposal of the Cedinsa Concessionària Group.
(4) Derecognition by absorption with FCC Environment
(5) Derecognition by disposal
(6) Derecognition by dissolution
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 134 of 144
_ 396
CHANGES IN THE SCOPE OF CONSOLIDATION
Change in the consolidation
method (current method)
Change in the consolidation
method (previous method)
Company
Realia Contesti, S.R.L.
Realia Business, S.A.
Global
Global
Boane 2003, S.A. Unipersonal
Global
Guillena Golf, S.L. Unipersonal
Global
Hermanos Revilla, S.A.
Inversiones Inmobiliarias
Rústicas y Urbanas 2000, S.L.
Planigesa, S.A.
Realia Patrimonio, S.L.U.
Servicios Índice, S.A.
Valaise, S.L. Unipersonal
Global
Global
Global
Global
Global
Global
Equity method
Equity method
Equity method
Equity method
Equity method
Equity method
Equity method
Equity method
Equity method
Equity method
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 135 of 144
_ 397
Anexo V Temporary consortia (joint ventures), economic interest groups
and other enterprises jointly managed with third parties outside the group
Proportional
integration at 31
December 2021
Proportional
integration at 31
December 2021
ENVIRONMENTAL SERVICES
UTE Absa – Perica
UTE Absa – Perica II
UTE A Coruña Limpieza
UTE Aeropuerto VI
UTE Agarbi
UTE Agarbi Bi
UTE Agarbi Interiores
UTE Aizmendi
UTE Akei
UTE Alcantarillado Melilla
UTE Alella
UTE Alumbrado Tias
UTE Arazuri 2016
UTE Arazuri 2020
UTE Arcos
UTE Artigas
UTE Arucas II
UTE Bailin Etapa 2
UTE Baix Ebre-Montsià
UTE Berango
UTE Bilboko Saneamendu
UTE Bilboko Saneamendu Bi
UTE Bilketa 2017
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
50.00
50.00
60.00
UTE Biocompost de Álava
UTE Bizkaiko Hondartzak
UTE Bizkaiko Hondartzak 2021
UTE Boadilla
UTE Cabrera de Mar
UTE Cana Putxa
UTE Carma
UTE Chipiona
UTE CMG2 Lanak
UTE CMG2 Kudeaketa
UTE Complejo Ambiental Copero
UTE Contenedores las Palmas
UTE Contenedores Madrid
UTE Contenedores Madrid 2
UTE CTR – Vallès
UTE Ctr. de l’alt Empordà
UTE CTR Valladolid
UTE Cua
UTE Donostiako Garbiketa
UTE Dos Aguas
UTE Eco A Coruña
UTE Ecogondomar
UTE Ecoparque Cáceres
UTE Ecourense
50.00
50.00
50.00
50.00
50.00
20.00
50.00
50.00
82.00
82.00
67.00
30.00
38.25
36.50
20.00
45.00
80.00
50.00
70.00
35.00
85.00
70.00
50.00
50.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 136 of 144
_ 398
Proportional
integration at 31
December 2021
Proportional
integration at 31
December 2021
UTE Eco-Tri
UTE Efic. Energ. Puerto del Rosario
UTE Elche
UTE Energía Solar Onda
UTE Enllumenat Sabadell
UTE Envases Ligeros Málaga
UTE Epeleko Konposta
UTE Epeleko Planta
UTE Epremasa Provincial
UTE Eretza
UTE Es Vedra
UTE Etxebarri
UTE FCC Caviclum
UTE FCC – Ers Los Palacios
UTE FCC Perica I
UTE FCC – SuFI Majadahonda
UTE FCC-Mcc Santiago del Teide
UTE F.L.F. La Plana
UTE F.S.S.
UTE Fuentes las Palmas
UTE Gestió Integral de Runes del Papiol
UTE Gestión Instalación III
UTE Giref
UTE Goierri Garbia
UTE Guipuzkoako Hondartzak 2020
UTE Guipuzkoako Portuak 2019
UTE Icat Lote 7
UTE Icat Lote 11
50.00
60.00
50.00
25.00
50.00
50.00
60.00
35.00
55.00
70.00
25.00
60.00
80.00
50.00
60.00
50.00
80.00
47.00
99.00
25.00
40.00
34.99
20.00
60.00
60.00
40.00
50.00
50.00
UTE Icat Lote 15
UTE Icat Lote 20 y 22
UTE Interiores Bilbao
UTE Interiores Bilbao II
UTE Jardineras 2019
UTE Jardines Boadilla
UTE Jardines Pto del Rosario
UTE Jardines UJI
UTE Jard. Universitat Jaume I
UTE Jerez
UTE Jundiz II
UTE Kimaketak Hiru
UTE Kimeketak Bi
UTE la Lloma del Birlet
UTE Lagunas II
UTE Lagunas de Arganda
UTE Las Caldas Golf
UTE Legio VII
UTE Lekeitioko Mantenimendua
UTE Lezo Garbiketa 2018
UTE Limpieza Santa Coloma
UTE Limpieza y RSU Lezo
UTE Logroño Limpio
UTE Luze Vigo
UTE LV Lote IV
UTE LV Ribera
UTE LV RSU Muszik
UTE LV RSU Vitoria-Gasteiz
50.00
70.00
80.00
70.00
60.00
70.00
78.00
50.00
50.00
80.00
51.00
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
65.00
90.00
60.00
60.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 137 of 144
_ 399
Proportional
integration at 31
December 2021
Proportional
integration at 31
December 2021
UTE LV Zumaia
UTE LV Zumarraga
UTE Mant. Edificios Valencia
UTE Manteniment Lot 12
UTE Manteniment Reg Cornellà
UTE Mantenimiento Breña Alta
UTE Marepa – Carpa Pamplona
UTE Melilla
UTE Mnto. Mediterranea FCC
UTE Mnto. Edifici Mossos Esquadra
UTE Muérdago
UTE Muskiz
UTE Neteja Illes Balears
UTE Neumática Casco Antiguo
UTE Onda Explotación
UTE Pájara
UTE Pamplona
UTE Parla
UTE Parques Infantiles LP
UTE Pasaia
UTE Plan Residuos
UTE Planta Estabilizac. Tudela
UTE Planta Materia Orgánica
UTE Planta Rsi Tudela
UTE Planta Transferencia FTV 2
UTE Planta Tr. Fuerteventura
UTE Planta Tratamiento Valladolid
UTE Playas Gipuzkoa III
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
65.00
33.33
70.00
80.00
50.00
50.00
70.00
47.50
55.00
40.00
60.00
70.00
70.00
90.00
55.00
UTE Poniente Almeriense
UTE Portmany
UTE PTMR
UTE Puerto II
UTE Puerto de Pto del Rosario
UTE RBU Els Ports
UTE RBU Villa-Real
UTE Recollida Segrià
UTE Reg Cornellà
UTE Residuos 3 Zonas Navarra
UTE RSU Bilbao II
UTE RSU Chipiona
UTE RSU Inca
UTE RSU LV S. Bme. Tirajana
UTE RSU y LV Torrejón de Ardoz
UTE RSU Málaga
UTE RSU Sestao
UTE RSU Tolosaldea
UTE S.U. Alicante
UTE S.U. Benicassim
UTE S.U. Bilbao
UTE S.U. Oropesa del Mar
UTE Saneamiento Urbano Castellón
UTE Saneamiento Vitoria-Gasteiz
UTE Sanejament Cellera de Ter
UTE San Miguel-Anaka
UTE SAV – FCC Tratamientos
UTE Seguretat Urbicsa
50.00
50.00
50.00
70.00
70.00
50.00
47.00
60.00
60.00
60.00
60.00
50.00
80.00
50.00
60.00
50.00
60.00
60.00
33.33
35.00
60.00
35.00
65.00
60.00
50.00
50.00
35.00
60.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 138 of 144
_ 400
UTE Selectiva Urola Kosta II 2017
UTE Selectiva las Palmas
UTE Selectiva Sanlucar
UTE Selectiva San Marcos II
UTE Selectiva Urola Kosta
UTE Solares Ceuta
UTE Son Espases
UTE Tolosako Garbiketa
UTE Tolosako Garbiketa 2020
UTE Tolosaldea RSU 2018
UTE Transp. y Elim. RSU
UTE Transporte RSU
UTE Txingudiko Garbiketa
UTE Urola Erdia
UTE Urretxu Garbiketa
UTE Urretxu y Zumarraga
UTE Vertedero Gardelegui III
UTE Vertresa
UTE Vidrio Melilla
UTE Vigo Recicla
UTE Vilomara II
UTE Zamora Limpia
UTE Zaragoza Delicias
UTE Zarautz Garbia
UTE Zarauzko Garbieta
UTE Zumaia
UTE Zumarraga Garbia
UTE Zurita II
Proportional
integration at 31
December 2021
Proportional
integration at 31
December 2021
60.00
55.00
50.00
63.00
60.00
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
70.00
33.33
30.00
51.00
60.00
60.00
60.00
60.00
50.00
AQUALIA
A.I.E. Costa Brava Abastament Aqualia-Sorea
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
UTE Abastecimiento Picadas Almoguera
UTE Abu Rawash Construcción
UTE Agua Santo Domingo
UTE Aguas Alcalá
UTE Aguas del Doramás
UTE Alkhorayef-FCC Aqualia
UTE Ampliacion Idam Melilla
UTE Badajoz Zona Este
UTE Badajoz Zona Oeste
UTE Calle Cruz
UTE Cap Djinet
UTE Cons. Gestor Ptar Salitre
UTE Costa Tropical
UTE Costa Tropical II
UTE Costa Tropical III
UTE Depuración Poniente Almeriense
UTE Depuradoras Lote 1
UTE Edar A Guarda 2013
UTE Edar Baeza
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
50.00
50.00
80.00
50.00
30.00
51.00
51.00
51.00
75.00
95.00
50.00
50.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 139 of 144
_ 401
Proportional
integration at 31
December 2021
Proportional
integration at 31
December 2021
UTE Edar Gijón
UTE Edar Tablada
UTE Gestión Cangas
UTE Groupement Solidaire Jerba
UTE Guadiana Pueblonuevo
UTE Hidc – Hidr. – Inv Do Centr. Ace
UTE Ibiza
UTE Idam San Antoni
UTE Idam Sant Antoni II
UTE Idam Santa Eulalia
UTE Idam Santa Eulalia II
UTE Idam Santa Eulalia III
UTE Idga Saneca
UTE Infilco
UTE Louro
UTE Mostaganem
UTE Obra Edar Argamasilla de Calatrava
UTE OYM CAP Djinet
UTE OYM Mostaganem
UTE Ptar Ambato
UTE Puebla Reina
UTE Qatar
UTE SCC Sice
UTE SEAFSA Lanzarote
UTE Sentinas
UTE Sollano-Zalla
UTE TSE Riad
UTE Vigo Piscinas
UTE Zafra
60.00
50.00
70.00
50.00
51.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
70.00
50.00
65.00
50.00
70.00
50.00
50.00
60.00
65.00
51.00
50.00
60.00
50.00
50.00
51.00
50.00
65.00
CONSTRUCTION
ACE Caet XXI Construçoes
Consorcio Cobra – FCC Industrial
Consorcio FCC Construcción-Ferrovial Agroman Ltda.
Fast Consortium Limited Llc
Lúcios & RRC, ACE
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
Asocierea FCC Azvi S. Sighisoara - Atel
Atraque Ribera Fondo CS Ute
BSV Mersey Joint Venture Uninc
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 Ica – FCC – Meco Pac-4
Consorcio Línea 2
Consorcio Línea 2 Ramal
Consorcio Línea Uno
50.00
43.00
50.00
35.92
50.00
45.00
49.50
49.50
55.00
50.50
55.00
50.00
50.00
35.92
40.00
50.00
60.00
25.50
18.25
50.00
50.00
51.00
51.00
50.00
43.00
40.00
40.00
45.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 140 of 144
_ 402
Proportional
integration at 31
December 2021
Proportional
integration at 31
December 2021
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-Webuild
J.V. Astaldi-FCC-UTI-Activ. Magistrala
J.V. Bypass Constata
J.V. Centure Otopeni Overpass
J.V Estension of Line 2 to Antohoupoli
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
Webuild – FCC JV (Basarab)
UTE 2ª Fase Dique de la Esfinge
UTE Accesos a La Estación de La Sagrera
UTE Acceso Norte A Vigo Nueva Estación
UTE Acceso Puerto Seco Monforte
UTE Adif Bancada 2018
UTE Aeropuerto Adolfo Suárez
UTE Aeropuerto de Castellón
50.00
63.00
60.00
28.25
50.00
93.00
50.00
37.00
50.00
40.00
50.01
36.00
30.00
33.33
47.50
80.00
30.00
50.00
50.00
16.16
50.00
35.00
37.50
50.00
50.00
50.00
50.00
50.00
UTE Aguas Madrid 2021
UTE Alameda de Cervantes En Lorca
UTE Alta Capacidad 2020
UTE Alumbrado Alameda
UTE Andenes L1-L9 Tram Benidorm
UTE Aparatos Atocha
UTE Arroyo del Fresno
UTE Aucosta Conservación
UTE Auditorio de Lugo
UTE Autovía el Batán – Coria
UTE Autopista Cartagena – Vera
UTE Ave Alcántara-Garrovillas
UTE Ave Eje Sur
UTE Ave Girona
UTE Ave Maside
UTE Avenoreste1
UTE Avenoreste2
UTE Badajoz Sur
UTE Barbados
UTE Barcience
UTE Belltall
UTE Bergara Antzuola
UTE Boetticher Clima
UTE Boetticher Electricidad
UTE Bombeo Fuente Alamo
UTE Bosque de la Herrería
UTE Brazatortas
UTE C&F Jamaica
70.00
60.00
50.00
20.00
65.00
39.97
50.00
50.00
50.00
50.00
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
60.00
40.00
33.34
50.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 141 of 144
_ 403
Proportional
integration at 31
December 2021
Proportional
integration at 31
December 2021
UTE Cáceres Norte
UTE Cáceres Plasencia
UTE Calders-Vilaseca
UTE Campo Gibraltar
UTE Cárcel Marcos Paz
UTE Carretera Ibiza – San Antonio
UTE Castuera
UTE Catlántico
UTE Cecoex
UTE Centro Salud Tui
UTE Chuac
UTE Cierre Anillo Insular Tfe
UTE Circuito
UTE Circunvalación Lucentum
UTE Ciutat de la Justícia
UTE Conexión Corredor Mediterráneo
UTE Conexión Molinar
UTE Conservacion Ex-A1
UTE Conservacion Plasencia
UTE Conservación Telde
UTE Construcción Tranvía Zaragoza
UTE Control
UTE Control Mogán
UTE Club de Mar Mallorca
UTE Creaa
UTE de Suministros Puente Río Ozama
UTE Deancentro
UTE Deansur
50.00
50.00
20.00
80.00
35.00
50.00
33.34
25.00
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
80.00
33.33
70.00
50.00
50.00
60.00
60.00
UTE Desarrollo Puerto de Avilés Fase I
UTE Dique Este
UTE Dique Torres
UTE Districte Administratiu Lot 2
UTE Donostialdea 2018
UTE Duplicacion Calzada N-338
UTE Efw South Humber
UTE Electrificación la Sagrera
UTE Encauzamiento Barranco de Fraga
UTE ErtMS Rodalíes Bcn
UTE Esclusa Sevilla
UTE Estación Girona
UTE Estacions Línea 9
UTE Estacions Terrassa
UTE Ezkio Itsaso
UTE Facultad de Filosofía
UTE Fase II Pabellón Reyno de Navarra
UTE FCC Industrial - Aton
UTE FCCi-Orbe
UTE F.I.F. GNL FB 301/2
UTE Fuente de Cantos
UTE Galibos Monforte
UTE Galindo-Beurko
UTE Gc – 1 Puerto de Rico – Mogán
UTE Girona Norte 2014
UTE Goián
UTE Granadilla II
UTE Guadarrama 3
80.00
35.00
27.00
99.99
60.00
60.00
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
50.00
50.00
60.00
40.00
70.00
70.00
50.00
33.33
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 142 of 144
_ 404
Proportional
integration at 31
December 2021
Proportional
integration at 31
December 2021
UTE Guadarrama 4
UTE Helios I
UTE Helios 2
UTE Hospital Alcázar
UTE Hospital Campus de la Salud
UTE Hospital del Sur, Segunda Fase
UTE Hospital FCC – Vvo
UTE Hospital Norte Tenerife
UTE Hospital Son Dureta
UTE Hospital Universitario de Murcia
UTE Iecisa-FCC/Interfonia En Estaciones
UTE Impermeabilización Túnel Pajares Norte
UTE Instalaciones Madrid Este
UTE Instalaciones Metro Málaga
UTE Instalaciones Urbanas Este
UTE Juan Grande
UTE la Aldea
UTE Línea 2
UTE Línea 9
UTE Llovio 2012
UTE Lote 1 Centro
UTE Lot 2 Pmi Bcn
UTE Lot 3 Pmi Bcn
UTE Lot 5 Glories
UTE Lote 4 Hospital de Alcañiz
UTE Lote 6 Sur
UTE M-407
UTE Madrid Sevilla Ave
33.33
74.50
74.50
60.00
80.00
40.00
80.00
80.00
33.00
50.00
50.00
50.00
46.25
54.00
50.00
50.00
35.00
50.00
33.00
70.00
50.00
80.00
80.00
37.50
55.00
50.00
50.00
60.00
UTE Manteniment Rondes 2012
UTE Mantenimiento Júcar
UTE Mantenimiento Tdm 2018
UTE Mantenimiento Tranvía Zaragoza
UTE Mantenimiento Vía Aranjuez
UTE Maquinaria Pesada 2015
UTE Medinaceli
UTE Mejora Estructuras Mora
UTE Metro Línea 12
UTE Metro Málaga
UTE Metro Madrid
UTE Miv Centro
UTE Miv Centro 2021-2022
UTE Miv Sur
UTE Miv Sur Lote 6
UTE Monforte
UTE Montaje Vía Mollet – Girona
UTE Mora - Calatrava
UTE Mto Postr Tajo-Segura
UTE Muelle Baleares
UTE Muelle de la Química
UTE Muelle Poniente Norte de Pto Palma
UTE Muelles Comerciales
UTE Murcia
UTE Navalmoral
UTE Nave Frío Cilsa
UTE Nudo de Mollet
UTE Nuevo Estadio Vcf
70.00
50.00
50.00
50.00
50.00
50.00
22.40
39.97
95.00
36.00
70.00
19.00
22.50
27.00
22.50
24.00
50.00
39.97
60.00
70.00
70.00
75.00
60.00
40.00
55.00
50.00
50.00
49.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 143 of 144
_ 405
Proportional
integration at 31
December 2021
Proportional
integration at 31
December 2021
UTE Nuevo Hospital de Cáceres
UTE Nuevo Puerto de Igoumenitza
UTE Obras Alumbrado Madrid
UTE Operadora Termosolar Guzmán
UTE Osorno 2019
UTE Pabellón Arena
UTE Pabellón Reyno de Navarra
UTE Pago de Enmedio
UTE Palacio de Congresos de León
UTE Parque Tecnológico
UTE Pasaia Berri
UTE Pasaia Berri Instalaciones
UTE Pizarro
UTE Pla de Na Tesa
UTE Pont de Candi
UTE Presa Enciso
UTE Presas Itoiz
UTE Prim Barrio San Anton – Elche
UTE Proser – Geocontrol
UTE Proser – Geocontrol II
UTE Psir Castro Urdiales
UTE Puente del Rey
UTE Puente Río Ozama (Dfc-Cocimar)
UTE Puerto de Granadilla
UTE Puertollano
UTE Radiales
UTE Red Arterial Palencia Fase I
UTE Reforma Plaza España
50.00
50.00
50.00
67.50
60.00
50.00
50.00
75.00
50.00
60.00
50.00
80.00
99.00
70.00
75.00
50.00
33.00
80.00
60.00
62.00
50.00
33.33
35.00
50.00
50.00
35.00
80.00
80.00
UTE Regadíos Río Flumen
UTE Rehabilitación Parque la Gavia
UTE Renovación Desvíos Fase 1
UTE Ruta Nacional Haití
UTE Sagunto
UTE Saneamiento Arco Sur
UTE Saneamiento de Villaviciosa
UTE Santa Maria D’oló-Gurb
UTE Sector M-5 2012
UTE Serv. Energ. Piscina Cub. S. Caballo
UTE Sica
UTE Sica II
UTE Sistemas Tunel Plaza de España
UTE Sotiello
UTE Ssaa Ap – 7
UTE Tecsacon 2017
UTE TF-5 2ª FASE
UTE Torquemada
UTE Torre Don Jimeno
UTE Tratamientos Selvícolas 2020
UTE TS Villena
UTE Túnel Aeroport
UTE Túnel Aeroport II
UTE Túnel Atocha Chamartín
UTE Túnel C.E.L.A.
UTE Túnel de Pajares 1
UTE Túnel Fira
UTE Túnel la Aldea
60.00
75.00
25.00
55.00
60.00
56.50
80.00
60.00
70.00
50.00
60.00
50.00
50.00
50.00
50.00
20.00
70.00
50.00
50.00
50.00
88.00
49.00
49.00
40.00
50.00
50.00
49.00
50.00
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Notes to the consolidated financial statements | Page 144 of 144
_ 406
REAL ESTATE
C.B.Turó del Mar
OTHER ACTIVITIES
UTE F C y C Harri Iparra
UTE Mel 9
UTE Operación Tranvía de Murcia
UTE Sagunto Parcela M17-3
Proportional
integration at 31
December 2021
20.38
50.00
49.00
50.00
50.00
UTE Túneles Bolaños
UTE Túneles de Barajas
UTE Túneles de Guadarrama
UTE Túneles de Sorbes
UTE Ue 1 Arroyo del Fresno
UTE Ue 2 Arroyo del Fresno
UTE Unquera – Pendueles
UTE Urbanització Girona
UTE Urbanización Parc Sagunt
UTE Urbanizacion Vara del Rey
UTE Urbanización Via Parque Tramo Av. Carb.-P
UTE Vandellós
UTE Variante Mancha Real
UTE Velódromo
UTE Vertedero Castañeda
UTE Vía Pajares
UTE Viaducto Quisi
UTE Vigo-Das Maceiras
UTE Vilariño (Via izquierda)
UTE Yeltes
UTE Yesa
Proportional
integration at 31
December 2021
47.50
50.00
33.33
67.00
50.00
50.00
80.00
40.00
50.00
57.50
60.00
24.00
67.00
60.00
62.50
50.00
65.00
50.00
90.00
75.00
33.33
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 _ 407
Management report
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND SUBSIDIARIES at 31 December 2021
1. Status of the entity
2. Business performance and results
3.
Liquidity and capital resources
4. Major risks and uncertainties
5. Acquisition and disposal of own shares
6. Significant events occurring after the end of the year
7. Outlook
8. RD&I Activities
9. Other relevant information. share and other information
10. Definition of alternative performance measures according
to esma regulations (2015/1415en)
408
412
431
432
433
433
433
436
442
443
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 1 of 42Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 2 of 42
_ 408
1. Status of the entity
The Administration area directs the administrative management of the Group, and has, among
others, the following functions in relation to the Information and Internal Control Systems:
1.1. Status of the entity:
Organisational structure and decision-making
process in management
The Group's organisational structure is based on a first level consisting of Areas, which are divid-
ed into two main groups: operational and functional.
The operating Areas include all those activities related to the productive line. The following oper-
ating areas exist within the Group, as discussed in more detail in note 1 of the Notes to the con-
solidated financial statements, and also in section 2.2 of the Non-Financial Information Statement:
i. General accounting.
ii. Accounting standardisation.
iii. Consolidation.
iv. Tax advice.
v. Tax procedures.
vi. Tax compliance.
vii. Administrative procedures.
i. Environmental Services.
ii. End-to-end Water Management.
iii. Construction.
iv. Cement Business.
v. Concessions
vi. Real Estate.
Each of these operating Areas is headed by one or more specialised companies which, depend-
ing 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 Admin-
istration, Information Technologies, Finance, Communication, Purchasing and Human Re-
sources areas.
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 pro-
cesses, 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 the Group, 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 Gen-
eral 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 nec-
essary.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 3 of 42
_ 409
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, estab-
lishes 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 Group's decision-making bodies is provided in Section 1
of the Internal Financial Reporting Control System (IFRS) and in Section 2.1 of the Non-Financial
Information Statement.
1.2. Status of the entity:
Business model and company strategy
The Group is one of the leading European groups specialising in environment, water, development
and infrastructure management with a presence in more than 30 countries around the world and
with 41.1% of its turnover generated in international markets, mainly Europe (30.1%), the Middle
East (2.8%), Latin America (3.98%), North Africa (2%), and the United States. (1.8%).
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 120 years.
At the national level, the Group provides environmental services in more than 3,500 municipalities
and organisations in all the Autonomous Communities, serving a population of more than 31
million inhabitants. Waste collection and street cleaning are two of the most important services in
this sector, representing 48% of revenue. They are followed, in order of importance, by disposal
of wastes with 33%, 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 limited impact of the COVID-19 pandemic, with most of the services provided being so-called
"essential", has practically disappeared in 2021, returning to normal levels of activity. The Group is
still engaged in a complex process whose ultimate goal is to replace the linear production model
with a circular model that reincorporates waste materials into the production process, relying on
its high level of know-how and the development of new innovative technologies.
Moreover, international business is mainly conducted in the United Kingdom, Central Europe and
the USA. For years, the Group has held a leading 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, the Group provides services in seven countries (Austria, Czech
Republic, Slovakia, Poland, Hungary, Romania and Serbia) to a total population of 4.3 million in-
habitants, 1,401 municipalities and more than 51,600 industrial customers. The range of services
provided and the geographical dispersion is very diverse and balanced, including municipal and
industrial collection, mechanical and biological treatment, incineration, landfill, street cleaning,
snow collection, recycling, outsourcing, building cleaning, soil decontamination work, etc. This
broad diversification ensures great business stability and is one of the reasons why the economic
impact of COVID has been irrelevant. The significant increase in recycling prices during 2021
(with revenues representing around 13% of total revenues) has led to significant improvements in
profitability in absolute and relative terms.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 4 of 42
_ 410
The Environmental Services Area also specialises in the end-to-end management of industrial and
commercial waste, recovery of by-products and soil decontamination, through the FCC Ámbito
brand, which encompasses a group of companies with an extensive network of management
and recovery facilities. This enables proper waste management, ensuring the protection of the
environment and people's health. This activity accounted for more than 4% of all activity in 2021.
Internationally, growth in the US stands out, where sales growth in 2021 compared to the previ-
ous year was 49% and is expected to be even higher by 2022, the pandemic has not affected the
strong growth rate in the slightest. FCC now ranks among the Top 15 companies in the sector in
the USA, with expectations of being in the Top 10 in the next two years. FCC Environmental Ser-
vices already serves more than 8.5 million Americans, is the largest recycler in Texas, and has a
very important presence in Florida in cities as important as Orlando, Tampa, Palm Beach, Daytona
Beach, Lakeland and Wellington. Growth continues to be exponential and the company now em-
ploys more than 1,000 people. The Wellington contract kicked off in the last month of 2021 and
the Hillsborough County contract will also start in the first month of 2022, both in Florida, adding
even more to FCC's leading position in that status.
In December 2021, the Group's first acquisition in the US market was completed with the pur-
chase of Premier Waste Services, Llc. in Dallas (Texas). Premier is one of the leading commercial
waste collection operators in the Dallas-Fort Worth metropolitan area, which will further enhance
the Group's significant growth in the commercial collection market, which will already account
for more than 10% of revenues by 2022, as well as bring significant synergies to the Group's
recycling facility in the Texas city.
As has been the case for years, the strategy in Spain will focus on maintaining competitiveness
and a leading position, combining know-how and the development of innovative technologies,
offering respectful, inclusive and sustainable services (combating climate change and reducing
the carbon footprint). Additionally, the potential opportunities created by stricter regulation and
new services (smart cities) will be exploited.
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. In the United States, the company will continue to consolidate its presence in the
coming years by growing more residential contracts and boosting commercial collection activity.
In general, there is a broad commitment to climate change, materialised for example in the is-
suance of green bonds to finance the operation and acquisition of assets developed with the
activity.
End-to-end Water Management
FCC Aqualia serves nearly 30 million users and provides services in 17 countries, offering the
market all the solutions to the needs of public and private entities and organisations in all phases
of the end-to-end water cycle and for all uses: human, agricultural or industrial.
FCC Aqualia's activity is focused on Concessions and Services, encompassing distribution net-
work concessions, BOT, operation and maintenance services and irrigation; as well as Technol-
ogy and Networks activities encompassing EPC contracts and industrial water risk management
activities.
In 2021 the market in Spain represents 70% of revenue. On a like-for-like basis, water consump-
tion at the end user level (downstream water) has grown in Spain as a whole in 2021 by 0.25%
and the amounts billed by 1.55% with respect to 2020. Compared to 2019, the last year prior
to COVID-19, the average volume billed is still 0.8% lower, although in terms of tariff revenue the
amounts are similar. This was despite the lower consumption levels for the year as a whole than
during the pandemic: 10.1% in the Canary Islands, 6.7% in the Balearic Islands and 2.0% in the
province of Cadiz, which we estimate will gradually recover in 2022. 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 higher volume of execution of various
works linked to concession contracts.
In the public sector, there is still a low level of tendering for water infrastructure concessions,
despite which 2021 can be considered a successful exercise. We have been awarded new con-
tracts, and renewals and extensions of existing contracts, in 354 municipalities, with a contracted
portfolio volume of over €873 million. The contract renewal loyalty rate remains at very high levels
(above 90%) in the municipalities in which 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 30%. FCC Aqualia focuses its activity in Europe,
North Africa, the Middle East and the Americas, with ongoing contracts in 16 countries at present.
The year 2021 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 manage-
ment of the municipal concession services in the Czech Republic, Italy and Portugal, work was
carried out to integrate the new business in France.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 5 of 42
_ 411
FCC Aqualia seeks to maintain its competitive position in those end-to-end water management
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 end-to-end 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 end-to-end water cycle management for business opportuni-
ties in countries with a stable political and social balance.
Construction
The Construction Area focuses its activity on the design, development and construction of large
civil, industrial and building infrastructure projects. The presence in public works of complex el-
ements such as railways, tunnels and bridges stands out, which together with those involving
installation and industrial maintenance, form a large part of the activity.
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.
In 2021, 47% of total revenues will come from abroad, including the execution of major infrastruc-
ture projects such as lines 4, 5 and 6 of the Riyadh Metro, Haren Penitentiary Centre (Belgium),
Tren Maya (Mexico), A-465 (Wales), Lima Metro (Peru), Toyo Tunnel (Colombia), Mapocho River
Park (Chile), A-9 Badhoevedorp-Holendrecht motorway (Netherlands), and the Gurasada-Simeria
railway line (Romania) - Sectors 2a, 2b and 3.
In 2021, the contract for the construction of the "Industrial Bridge" in Chile, with a budget of ap-
proximately €125.6 million, was awarded.
Cement
The Group carries out its cement activity through the Cementos Portland Valderrivas group. Its
core business is cement manufacturing, which accounted for 91% of its Group turnover in 2021.
The remaining percentage was contributed by the concrete, mortar and aggregate businesses.
In terms of geographical diversification, by 2021, 39% of income came from international mar-
kets. The Cementos Portland Valderrivas Group is present in Spain, Tunisia and the United King-
dom. Exports from these three countries also go 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 competitive tension
both in terms of costs and in the markets in which it operates, trying to remain a reference in the
sector in all the countries in which it is present.
Real Estate
After October 2021, Real Estate becomes a relevant Area of the Group, following the corporate
transactions described below.
The Group is present in the real estate sector, mainly in housing development and office rental
through the company F C y C, SLU ("FCC Inmobiliaria") of which it controls 80.03%, a company
that holds 50.35% of Realia Business S.A., after the acquisition of 13.12% of the same in 2021,
taking control and proceeding to its full consolidation from 1 November 2021. Likewise, in No-
vember 2021, F C y C incorporated, through a non-monetary contribution, 100% of the company
Jezzine Uno, S.L.U., the purpose of which is to lease properties to Caixabank distributed in Spain,
under a framework lease agreement with a term until 2037. Finally, in December 2021, Realia ac-
quired 37.11% of Hermanos Revilla, S.A., reaching 87.86% of its share capital. These operations
have increased the size of FCC Inmobiliaria with the following objectives:
• Consolidate a solid, large-scale real estate group, with greater management efficiency derived
from operational and financial synergies that will enable it to take advantage of growth oppor-
tunities in the sector.
• Diversify FCC Inmobiliaria's risk and geographic opportunities by extending its activity to new
areas of operations in which it was not already present.
• Significant increase in the contribution of Realia's and Jezzine's recurring rental property ac-
tivity to FCC Inmobiliaria as a whole, whose asset assessments at December 2021 accounted
for more than [70%] of the area's total.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 6 of 42
_ 412
2. Business performance and results
2.1. Operating performance
2.1.1. Significant Events
FCC Aqualia agrees to purchase 80% of GGU's water business for USD 180 million
Last December FCC Aqualia agreed to acquire 80% of the water business of Georgia Global
Utilities (GGU) for USD 180 million. The purchase process with GGU, the proprietor of water utility
and power generation assets, will be carried out in two phases: (i) a first phase, which has been
completed, where FCC Aqualia has acquired 65% of the current GGU, which includes water and
renewable energy assets, for a price of USD 180 million. (ii) a second phase, in which GGU will
spin off the renewable energy assets, leaving in the perimeter of GGU only the water assets (with
four hydroelectric plants associated with the water cycle), with FCC Aqualia then holding 80% of
GGU and its former sole shareholder holding the remaining 20%.
FCC Inmobiliaria increases in size and strengthens its competitive position
On 8 October, FCC Inmobiliaria, parent company of the Real Estate Area of FCC Group, reached
an agreement with Control Empresarial de Capitales (CEC) to acquire 13.12% of the capital stock
of Realia for an amount of 83.9 million euros, whereby FCC Inmobiliaria now holds a majority
share (50.1%) and, as a result, has achieved its global consolidation within the FCC Group. In
addition, it acquired the capital stock of Jezzine, an asset holding company 100% owned by So-
inmob, a subsidiary of CEC. As a result of this operation, control of FCC Inmobiliaria is retained,
with 80.03% of the capital of the head subsidiary company of the strengthened Real Estate Area
of the FCC Group, leading to significant strengthening of its competitive position, operating syn-
ergies, and presence in the rental property business.
Subsequently, last December, Realia, through Realia Patrimonio, acquired 37.11% of its subsid-
iary company Hermanos Revilla, S.A. for a price of €189 million. After this purchase, the Realia
Group's direct and indirect stake in the company rose to 87.76% of its share capital, and it now
controls 100% of the company.
FCC Medio Ambiente expands its presence in the USA and Central Europe
Last December, FCC Environmental Services made its first acquisition in the USA with the pur-
chase of Premier Waste Services in Dallas (Texas), a company specialising in tertiary waste col-
lection in that area, for USD 34 million. This operation enhances the service offering and increases
operational efficiency in the existing collection and treatment activities in the state of Texas. In
addition, the city of Wellington (Florida) awarded the municipal solid waste collection service for
ten years (with a possible extension for another five years), with a portfolio of more than €110
million. This was in addition to the residential and commercial solid waste collection contract in
Hillsborough County, also in Florida, awarded for eight years (with a possible extension for four
years) with a portfolio of €230 million.
FCC Environment Austria was awarded with the municipal waste treatment and transport con-
tract of the West Tyrol Waste Treatment Association, which will begin in January 2022, with a
5-year duration, extendable for another 5 years and with a backlog worth €33 million.
FCC Aqualia is awarded three contracts in France
Last November, FCC Aqualia, through its subsidiary SEFO, was awarded the water supply man-
agement of 16 municipalities around Mantes-la-Ville in the Yvelines department located in the Île-
de-France region, very close to Paris. This award consists of the concession of the drinking water
supply for a period of six years for around €30 million. As a result, the portfolio of future revenues
of the end-to-end water management area exceeds €15,000 million, an increase of 2.2% at the
end of the business year.
FCC Medio Ambiente increases its contracting and boosts its backlog by 17% in the business
year
The volume of future revenues secured by the FCC Medio Ambiente Area grew by 17% at year-
end, after increasing revenues by 12.4% in the year, thanks to the incorporation of important
contracts in Spain and, to a lesser extent, those mentioned previously in the USA. Among others,
the contract for street collection in Barcelona stands out, and in the fourth quarter the awarding of
two street cleaning contracts in Madrid, as well as another two for the end-to-end management
of green areas and two for the maintenance of urban furniture. This group of contracts contributed
a combined contract amount of €1,585 million for the year.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 7 of 42
_ 413
Lastly, in terms of treatment and recycling activity, the joint venture led by FCC Medio Ambiente
won the contract for the design, development, and operation of the Valladolid Household Waste
Treatment and Disposal Centre. It has a duration of 11 years and a portfolio of more than €110
million. Also in the recovery activity, the new contract for the selective collection and temporary
storage of glass packaging waste for ECOVIDRIO in various regions of Spain, with a portfolio of
€13.5 million and a duration of 8 years, stands out.
2.1.2. Executive Summary
KEY FIGURES
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. 21
6,659.3
1,126.6
16.9%
802.2
12.0%
580.1
4,440.7
3,225.7
(Millions of euros)
Dec. 20
Chg. (%)
6,158.0
1,047.5
17.0%
572.7
9.3%
262.2
2,908.7
2,797.8
8.1%
7.6%
-0.1 p.p
40.1%
2.7 p.p
121.2%
52.7%
15.3%
2.7%
30,196.9
29,411.7
In the 2021 business year, the FCC Group increased its revenues to €6,659.3 million, 8.1% higher
than in 2020. It is worth highlighting the positive development of most of the business activities,
which equalled or exceeded the revenue levels recorded in 2019 (prior to the pandemic), with a
notable contribution by the Environment Area with a 12.4% increase.
Gross operating profit (EBITDA) grew 7.6%, to reach €1,126.6 million. This can be explained by
a number of factors. Operating margins rose in most business areas, particularly in Construction.
Cement was impacted by high CO2 sales in 2020, €51.1 million more than in 2021 and, lastly,
the effects of consolidation, with the exit of the concession subgroup Cedinsa from April 2021, in
contrast to the entry into full consolidation, in the Real Estate Area, of Realia and Jezzine, from 1
November last year. Adjusted for the impact of CO2 and changes in the scope of consolidation,
EBITDA grew 17.9% in the business year.
Operating profit (EBIT) includes the described development of EBITDA together with the account-
ing impact of Realia's full consolidation, by raising the previous level of recorded value of its rental
property assets by €241.7 million. This is mitigated by the adjustment of €136.0 million in the
value of property, plant and equipment and goodwill linked to various assets in the Cement Area.
This together allowed EBIT to increase by 40.1% in the business year.
Attributable net income reached €580.1 million, more than twice as much as last year's figures.
This increase largely represents operational developments together with a positive performance
of the financial result, which includes a reduction in net financial expenses of €43.5 million in the
year together with a positive impact of €24.5 million from exchange differences recorded, com-
pared to a negative contribution of €51.3 million in 2020.
Net financial debt amounted to €3,225.7 million at the end of the business year, €427.9 million
more than in 2020. This increase is due to the consolidation of the financing of Realia's and
Jezzine's rental assets in the Real Estate Area, with a combined amount of €889.7 million at year-
end. Meanwhile, the performance of all the operating and investment activities accounts for the
rest of the financial debt amount.
Equity rose considerably at year-end, with a figure of €4,440.7 million, 52.7% higher than at the
end of 2020, explained by the substantial increase achieved by the net profit for the year and the
effect of the full consolidation of Realia and Jezzine.
The FCC Group's revenues stood at €30,196.9 million as at 31 December 2021, up 2.7% on the
balance at year-end 2020, with the new contracts of the Environmental Area being a particular
highlight.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 8 of 42
_ 414
2.1.3. Summary by Business area
Area
Dec. 21
Dec. 20
Chg. (%)
(Millions of euros)
% of 2021
total
% of 2020
total
Area
Dec. 21
Dec. 20
Chg. (%)
(Millions of euros)
% of 2021
total
% of 2020
total
REVENUE BY BUSINESS AREA
OPERATING PROFIT/(LOSS)
Environment
Water
Construction
Cement
Real Estate*
Corporate serv. and others
3,244.9
2,888.2
1,169.5
1,188.3
1,659.6
1,611.0
433.8
147.9
3.6
382.6
34.8
53.1
12.4%
-1.6%
3.0%
13.4%
n/a
-93.2%
48.7%
17.6%
24.9%
6.5%
2.2%
0.1%
46.9%
19.3%
26.2%
6.2%
0.6%
0.9%
Environment
Water
Construction
Cement
Real Estate*
Corporate serv. and others
Total
6,659.3
6,158.0
8.1%
100.0%
100.0%
Total
285.4
181.3
71.1
(90.3)
298.3
56.4
802.2
215.7
167.4
20.9
32.3%
8.3%
n/a
35.6%
22.6%
8.9%
106.8
-184.6%
-11.3%
(3.8)
65.7
n/a
-14.2%
37.2%
7.0%
37.7%
29.2%
3.6%
18.6%
-0.7%
11.5%
572.7
40.1%
100.0%
100.0%
REVENUE BY GEOGRAPHICAL AREA
Spain
United Kingdom
Rest of Europe and Others
Latin America and the USA
Czech Republic
Middle East & Africa
Total
EBITDA**
Environment
Water
Construction
Cement
Real Estate*
Corporate serv. and others
3,943.8
3,672.3
855.6
811.5
376.0
346.6
325.8
668.6
803.0
261.5
285.2
467.4
7.4%
28.0%
1.1%
43.8%
21.5%
-30.3%
59.2%
12.8%
12.2%
5.6%
5.2%
4.9%
59.6%
10.9%
13.0%
4.2%
4.6%
7.6%
6,659.3
6,158.0
8.1%
100.0%
100.0%
535.1
298.9
102.6
76.1
40.0
73.9
450.9
282.9
53.6
139.9
-3.8
18.7%
5.7%
91.5%
-45.6%
n/a
124.0
-40.4%
47.5%
26.5%
9.1%
6.8%
3.6%
6.6%
43.0%
27.0%
5.1%
13.4%
-0.4%
11.8%
NET FINANCIAL DEBT**
Corporate
With recourse
Without recourse
Areas
Environment
Water
Cement
Real Estate*
Total
BACKLOG**
Environment
Water
Construction
Real Estate*
(326.0)
0.5
101.6
14.7
n/a
-10.1%
-96.6%
0.0%
1,289.7
1,330.2
1,247.6
1,177.6
-3.0%
5.9%
124.4
889.7
173.7
-28.4%
0.0
n/a
40.0%
38.7%
3.9%
27.6%
3.6%
0.5%
47.5%
42.1%
6.2%
0.0%
3,225.7
2,797.8
15.3%
100.0%
100.0%
10,746.4
9,184.3
15,361.1
15,025.9
17.0%
2.2%
3,981.3
5,155.8
-22.8%
108.1
45.7
n/a
35.6%
50.9%
13.2%
0.4%
31.2%
51.1%
17.5%
0.2%
Total
1,126.6
1,047.5
7.6%
100.0%
100.0%
Total
30,196.9
29,411.7
2.7%
100.0%
100.0%
* Real Estate presents its consolidated key figures for both business years separately. .
** Véase definición de cálculo en página 27, según exigencia de la normativa ESMA (2015/1415es).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 9 of 42
_ 415
2.1.4.
Income Statement
Net turnover (NT)
Gross Operating Profit (EBITDA)
EBITDA Margin
Dec. 21
6,659.3
1,126.6
16.9%
Dec. 20
6,158.0
1,047.5
17.0%
Provision for amortisation of fixed and non-current
assets
(452.3)
(488.9)
Other operating income
Net Operating Profit (EBIT)
EBIT margin
Financial income
Miscellaneous financial results
P/L Entities accounted for using 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
127.9
802.2
12.0%
(110.5)
57.5
58.2
807.5
(130.2)
677.3
677.3
(97.1)
580.1
14.1
572.7
9.3%
(154.0)
(51.1)
62.1
429.9
(86.3)
343.6
343.6
(81.4)
262.2
Consolidated revenues grew to €6,659.3 million in the business year, up 8.1% on the previous
year. The development reflects the gradual strengthening of the recovery of the different activities
after the distortions and impacts caused by the healthcare crisis in 2020. The strength and com-
petitive position of the business areas has therefore enabled the revenue levels recorded in 2019
to be surpassed by over 6%.
By business area, Environment recorded an increase of 12.4%, thanks to the general recovery
in its various operating platforms, mainly due to the combination of the entry into service of new
(Millions of euros)
treatment contracts and street cleaning activity in Spain and collection in the USA, together with
the increase in revenues in Central Europe and the UK, especially linked to waste treatment and
recovery activities.
Chg. (%)
8.1%
7.6%
-0.1 p,p
-7.5%
n/a
40.1%
2.7 p,p
-28.2%
n/a
-6.3%
87.8%
50.9%
97.1%
97.1%
19.3%
121.2%
Revenues in the Water Area declined by 1.6%, but this was entirely due to the lower contribu-
tion expected in the year from the Technology and Networks business, due to the entry into the
completion phase of some one-off international projects. Moreover, the main concessions activity
maintained a sustained increase of 3.6%, while the area's revenues grew by 3.1% during the
period without a reduction in T&N.
EIn Construction, revenues were 3% higher than in 2020, with a significant increase in Europe
(mainly the UK and the Netherlands), together with various contracts in different Latin American
countries, which was mitigated by other contracts that were completed or nearing completion,
especially in the Middle East, including Saudi Arabia.
In the Cement Area, revenues had double-digit growth of 13.4% for the year, due both to the
increase in sales in Spain and the rise in exports, which was more pronounced in the first half of
the year.
The Real Estate Area, which is presented separately, experienced a notable increase in revenues
to €147.9 million, compared to €34.8 million in the previous year. This is due both to the entry into
full consolidation of Realia and Jezzine since last November, and to the increase in revenues from
the development and sale of properties. Without this consolidation, revenues for the year would
have risen significantly to €102.4 million.
Revenue breakdown by geographical area
(Millions of euros)
Spain
United Kingdom
Rest of Europe and Others
Latin America and the USA
Czech Republic
Middle East & Africa
Total
Dec. 21
3,943.8
855.6
811.5
376.0
346.6
325.8
Dec. 20
3,672.3
668.6
803.0
261.5
285.2
467.4
6,659.3
6,158.0
Chg. (%)
7.4%
28.0%
1.1%
43.8%
21.5%
-30.3%
8.1%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 10 of 42
_ 416
In terms of the geographical areas, Spain's contribution stood at 59.2% of revenues, totalling
€3,943.8 million, an increase of 7.4%. With regards to the different areas of activity, the Envi-
ronmental Area's revenues rose by 7.1% due to the increase in all main activities of the waste
management chain, especially collection and street cleaning. The Water Area's revenues rose by
3.8%, due to a progressive recovery in the volumes invoiced in end-to-end cycle concessions and
water network actions. The Construction Area's revenues increased by 4.3%, with the develop-
ment of projects in progress being somewhat higher than the expected execution rates planned
for the period. The demand increased moderately in the Cement Area when compared to the
figures of 2020; there was more prominent growth in the first half of the year, with revenues up
by 10.5%. The Real Estate activity, which is concentrated entirely in Spain, has seen its revenues
increase substantially (by €113.1 million), due both to the aforementioned integration of the Realia
and Jezzine groups within its parent company, FCC Inmobiliaria, and to its increased activity in
the sale of properties this business year. Lastly, it is worth mentioning that the Concessions area
(included in the Corporate Services and Others heading, after completing the sale of some of its
most significant concessions at the end of March 2021) reduces its contribution to only the first
quarter of this business year, with €52.7 million in revenues this year, compared to €121.5 million
the previous business year.
In the EU area, a 1.1% increase was recorded in the area of Rest of Europe and Others, amount-
ing to €811.5 million. This is largely due to an increase in revenues linked to treatment activity in
Central Europe. In Construction, the level of activity increased, thanks to a higher contribution,
especially in the Netherlands, which compensated for the completion and progress of other pro-
jects (Ireland and Romania).
Developments in the Czech Republic, which is of particular relative importance within the EU,
increased substantially by 21.5% to €346.6 million, with a larger increase in waste management
services in the Environment Area and a more moderate increase in the end-to-end water cycle
activity in the Water Area.
Revenues in Latin America and the USA increased significantly by 43.8% to €376 million, largely
due to the faster pace of project performance in the Construction Area, especially in Mexico,
Chile, and Colombia. In the USA, revenues concentrated in the Environment Area in municipal
waste collection services such as recycling increased significantly (38.2%), thanks to a new con-
tract coming into force in Nebraska and other contracts in Florida for municipal waste collection
and green space services.
Lastly, in the Middle East and Africa, activity fell by 30.3%, due to the very high level of progress
and reduced contribution from some very significant contracts in Saudi Arabia in the Construction
Area and for the same reason, although with less of an impact, in the Water Area, especially due
to the termination of a Technology and Networks activity contract on the north coast of Egypt.
% REVENUE BY GEOGRAPHICAL AREA
12.6%
4.9%
5.6%
5.2%
12.8%
58.9%
Spain
UK
Rest of Europe & Others
Middle East & Africa
Latin America and USA
Czech Rep.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 11 of 42
_ 417
2.1.4.2. Gross Operating Profit (EBITDA)
The Gross Operating Profit for the business year amounted to €1,126.6 million, an increase of
7.6% compared to the previous year. It should be noted that this amount represents a 16.9%
margin over income, almost identical to the 17.0% achieved in 2020, but with three significant
key components: (i) the sale of a large amount of CO2 rights in the Cement Area in 2020, with a
lower contribution of €51.1 million this year, (ii) the deconsolidation, by sale, of certain transport
concession assets at 31 March 2021, which has led to a lower contribution of €55.1 million and
(iii) the entry into consolidation of the Realia and Jezzine group assets from 1 November 2021,
with a contribution of €16.7 million in the business year. Adjusted for these three components,
those exceptional in nature and the change in scope, EBITDA in 2021 would have grown by
17.9%. Similarly, with both business years being adjusted for the aforementioned effects, the
gross operating margin would have increased significantly to 16.8% in 2021 compared to 15.3%
in the previous year.
By business area, the most noteworthy developments have been:
The Environment Area reached €535.1 million, a 18.7% increase, which is higher than the reve-
nues distributed across all activities of the value chain. The operating margin was 16.5%, com-
pared to 15.6% the previous business year, thanks to the impact of higher treatment/recycling
activity volumes and the increase in related prices, in particular, in the UK and Central Europe.
The Water Area reported €298.9 million, up by 5.7% when compared to last year's figures, sup-
ported by an increased contribution from concessions and services in all the jurisdictions where
it is present, and which offset the lower contribution made by the Technology and Networks seg-
ments internationally. The margin therefore grew to 25.6% compared to 23.8% in 2020.
Moreover, the Construction Area reported €102.6 million, a significant increase of 91.5% when
compared to 2020, in line with the scheduled projects and with a substantial improvement in the
recovery of the development pace compared to the downtime in 2020 and concentrated in the
first half of the last business year in international projects. This allowed operating profit to increase
to 6.2% compared to 3.3% in the previous year.
In the Cement Area, it reached €76.1 million, a substantial reduction of 45.6% compared to
€139.9 million in the previous year. This mainly reflects the aforementioned effect of lower reve-
nues from CO2 sales of €51.1 million this year, together with a more moderate increase in demand
in the local and export markets in the second half of the year and increases in energy prices in
the same period.
Real Estate activity recorded a notable increase to €40 million, compared to a negative figure of
€3.8 million in 2020, due to the contribution of Realia and Jezzine (€16.7 million) since last No-
vember, as well as the higher profitability generated by the sale of properties by the head of the
Area, FCC Inmobiliaria.
It should be noted that the Corporate Services and Others heading includes the Infrastructure
Concessions activity, to which the Cedinsa subgroup's activity contributed until the end of the
first quarter of this business year.
% EBITDA BY BUSINESS AREA
6.8%
9.1%
3.6%
6.5%
26.5%
47.5%
Environment
Water
Cement
Construction
Real Estate
Corporate
The performance of the utilities areas of Environment and Water maintained their high contribution
to operating profit of 74% for the year as a whole
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 12 of 42
_ 418
2.1.4.3. Net Operating Profit (EBIT)
2.1.4.4.3. Profit/(loss) of equity-accounted investees
El resultado neto de explotación alcanzó 802,2 millones de euros, un 40,1% más que el ejercicio
Net operating profit amounted to €802.2 million, 40.1% more than in the previous year. This in-
crease reflects, in addition to the changes in gross operating profit, two other significant factors
in Other Operating Income/(Losses), namely: (i) the accounting impact of the full consolidation of
Realia, by raising the previously recorded level of the value of its rental real estate assets, with
a positive result of €241.7 million and (ii) the negative adjustment of €136 million in the value of
property, plant and equipment and goodwill in the Cement Area.
2.1.4.4. Earnings before Taxes (EBT) from continuing operations
Profit before tax from continuing operations amounted to €807.5 million, up significantly from
€429.9 million in 2020. This was due to the combined good performance of operating activities
and a positive impact from financial results.
Thus, the performance was as follows for the various components:
2.1.4.4.1. Financial income
The net financial result amounted to €-110.5 million, compared to €-154 million the previous year,
a reduction of 28.2%. This reflects the effect of the contraction in the average volume of financial
debt recorded during the year, as well as reduction in its cost, and the elimination of the sale of
collection rights without recourse.
2.1.4.4.2. Miscellaneous financial results
This heading, which has no impact on cash flow, amounted to €57.5 million during the business
year, compared to €-51.1 million last year. The is mainly due to the differential behaviour of the
exchange rate of certain currencies, representing a positive impact of €24.5 million this year, com-
pared to the negative impact of €51.3 million during the same period of 2020. A positive effect
of €26.6 million is added to this, resulting from the sale of various concession and Construction
Area investees.
The contribution from investee companies amounted to €58.2 million, similar to figure from the
previous business year of €62.1 million. In addition to the increase in the contribution from various
investees in the different operating areas of the business, this slight reduction was the result of a
contrasting number of factors compared to the previous year, the most significant of which were
on the positive side of the balance sheet: (i) the 45 million euro profit from the sale of most of the
energy assets in which the Group has an interest, which includes both the gain up to the time
of sale and the gain on disposal, (ii) the 17.6 million euro effect of the closing of the sale of the
Ceal 9 and Urbicsa transport concessions and, also, (iii) the 46.7 million euro adjustment for the
acquisition of control of Realia and its change of consolidation from the equity method to the full
consolidation method.
2.1.4.5. Income attributable to the parent company
Attributable net income for the business year 2021 amounts to 580.1 million euros, a significant
increase compared to 262.2 million euros in the previous business year. This performance is
down to the increase in pre-tax profit described above. A corporation tax expense of 130.2 million
euros was also recorded, in line with the pre-tax profit obtained, together with profit attributable to
non-controlling interests of 97.1 million euros, compared to 81.4 million euros in the previous year,
reflecting the increase in the Group's consolidated profit attributable to those interests, mainly in
the Water Area and to a lesser extent in the Real Estate 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. 21
Dec. 20
Chg. (%)
6,475.4
1,066.0
16.5%
775.9
12.0%
580.1
6,132.6
1,032.7
16.8%
567.7
9.3%
262.2
5.6%
3.2%
-0.4 p.p
36.7%
2.7 p.p
121.2%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 13 of 42
_ 419
2.1.5. Balance Sheet
2.1.5.1. Property, plant and equipment and investment property
Intangible fixed and non-current assets
Property, Plant and Equipment and Real Estate Investments
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. 21
Dec. 20
2.445,2
4.931,7
533,8
604,0
559,2
2.437,9
2.810,2
722,8
580,9
578,7
Chg.
(Mn€)
7,3
2.121,5
(189,0)
23,1
(19,5)
9.074,1
7.130,4
1.943,7
0,0
1.392,3
(1.392,3)
1.107,3
2.340,9
184,4
765,6
2.095,6
228,7
1.535,5
1.222,1
341,7
245,3
(44,3)
313,4
5.168,1
5.704,2
(536,1)
Property, plant and equipment and investment property at year-end amounted to €4,931.7 mil-
lion, an increase of €2,121.5 million. This increase is largely due to the increase in real estate
investments, with rental assets of €1,470.5 million acquired through the takeover of Realia and
those of Jezzine, amounting to €600.4 million.
2.1.5.2. Investments accounted for using the equity method
The epigraph entitled investments accounted for using the equity method amounted to €533.8
million at the end of the year, with the following breakdown of the most significant investments in
equity:
1) €108.3 million for the stake in companies in the Environment Area (recycling and municipal
services, mainly in Spain and the UK).
2) €83.8 million for the stakes held in various transport infrastructure and equipment conces-
sions.
3) €38.7 million for stakes held in companies in the Water Area, largely concessionary compa-
14.242,2
12.834,6
1.407,6
nies that manage services abroad (North Africa and Spain).
Equity attributable to shareholders of the parent company
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
3.007,1
1.433,6
4.440,7
192,2
1.167,3
3.294,3
438,7
473,4
Non-current liabilities
5.565,9
5.531,3
Liabilities relating to non-current assets held for sale
0,0
1.051,3
(1.051,3)
Current provisions
Short-term financial debt
Other current financial liabilities
Trade and other payables
Current liabilities
TOTAL LIABILITIES
147,9
1.651,2
169,0
195,2
705,2
169,2
2.267,5
2.273,7
(47,3)
946,0
(0,2)
(6,2)
4.235,6
4.394,6
(159,0)
14.242,2
12.834,6
1.407,6
2.288,3
620,4
718,8
813,2
2.908,7
1.532,0
4) €42.0 million from the subsidiaries of the parent company in the Cement Area.
5) €38.4 million from investee companies in the Real Estate Area.
193,0
1.064,4
3.543,3
434,0
296,7
(0,8)
102,9
(249,0)
4,7
176,7
34,6
The reduction in the balance of this heading during the year is mainly due to the change in Realia's
consolidation method, following its takeover in the last quarter of the year.
This epigraph also includes a further €222.6 million for the remaining investments in own funds for
other participations together with loans granted to subsidiaries.
2.1.5.3. Assets held for sale
This heading reduces its balance to zero compared to the €1,392.3 million recorded at the end of
2020. Its complete reduction is due to the disposal of certain infrastructure concessions located
in Spain, following their sale at the end of the first quarter of the business year.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 14 of 42
_ 420
2.1.5.4. Cash and cash equivalents
The balance of the Cash and cash equivalents heading amounts to €1,535.5 million at the end
of the business year, €313.4 million more than the figure at the end of last year, distributed as
follows:
1) In the perimeter with recourse, cash and equivalents totalled €414.8 million.
2) In the perimeter without recourse, cash and equivalents amounted to €1,120.7 million.
2.1.5.5. Equity
Equity at the end of the period amounted to €4,440.7 million, compared to €2,908.7 million at
the end of 2020. The notable increase of 52.7% is mainly due to the contribution of the net profit
achieved in the period of €677.3 million and the effect of the increase in non-controlling interests
due to the full consolidation of Realia.
2.1.5.6. Financial Debt
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
(Millions of euros)
Dec. 21
Dec. 20
Chg. (M€)
1,742.6
3,031.5
37.3
134.1
820.0
3,230.3
50.2
148.0
4,945.5
4,248.5
(1,719.8)
3,225.7
(326.0)
3,551.7
(1,450.7)
2,797.8
101.6
2,696.2
922.6
(198.8)
(12.9)
(13.9)
697.0
(269.1)
427.9
(427.6)
855.5
At year-end, gross financial debt increased by 16.4% to €697 million.
This increase is largely due to the entry into consolidation in the fourth quarter of the Realia Group
and Jezzine in the Real Estate Area, with an overall balance of €966.6 million at the end of the
year.
Regarding its temporary structure, it should be noted that 33.4% has a short-term maturity, worth
€1,651.2 million. Most of this corresponds to the principal amount of the bonds issued for €700
million by the head of the Water Area and another €217.2 million by its subsidiary in the Czech
Republic, maturing in June and July 2022, respectively. Another 210.5 million of short-term debt
corresponds to marketable securities, largely commercial paper issued on the Irish Stock Ex-
change by the Group's parent company and that of the Environment Area.
The balance of net financial debt increased by 15.3% in the period to €3,225.7 million. This is
largely explained by the aforementioned increase in the Real Estate Area, which generated a
balance of €889.7 million at year-end. This effect was mitigated by the greater contribution of
cash generated by the Group's operations, which includes the effect of the reduction of €109.1
million in non-recourse credit assignments in the year, mainly in the Water Area, which meant their
complete elimination at the end of the first half of the year for the consolidated Group as a whole.
All of the net financial debt is without recourse and is mostly allocated to the Water Utilities and
Environment Areas (its Market debt is rated as "Investment Grade") and in the recurrent activity of
rental property in Real Estate. As a result, the Group's parent company had a net cash position of
€326.0 million at the end of the year.
BREAKDOWN OF NET FINANCIAL DEBT WITHOUT RECOURSE BY BUSINESS AREA
22.4%
3.6%
37.6%
Environment
Water
Cement
Real Estate
Net financial debt without recourse to the Group's parent company is structured as follows:
36.4%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 15 of 42
_ 421
(i) The Water Area accounts for €1,247.6 million, of which, in addition to the financing of corporate
bonds at the parent company, another €203.2 million correspond to the business in the Czech
Republic and the rest to various concessions of the end-to-end water cycle; (ii) the Environment
Area accounts for €1,289.7 million, most of which corresponds to long-term bonds issued at the
end of 2019 by the area's parent company, another €143.9 million to the activity in the UK, and
the rest mainly to the project financing of three waste treatment and recycling plants in Spain
(iii) the Real Estate Area has €889.7 million, concentrated in its rental property activity; (iv) the
Cement Area accounted for €124.4 million; (iv) and a remaining €0.5 million associated with the
concessions activity.
2.1.5.7. Other current and non-current financial liabilities
The epigraph of other current and non-current financial liabilities totals €607.7 million at the end
of the period. The balance mainly includes the item suppliers of fixed and non-current assets for
operating leases, amounting to €395.5 million. 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.
2.1.6. Cash Flow
Gross Operating Profit (EBITDA)
1,126.6
1,047.5
7.6%
(Millions of euros)
Dec. 21
Dec. 20
Chg. (%)
(Increase)/decrease in working capital
Corporation 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
(167.9)
(135.6)
(76.9)
746.2
(557.9)
568.6
182.4
193.1
(99.1)
(269.3)
(259.3)
(627.7)
(302.1)
-44.4%
(96.7)
(43.6)
605.1
(541.2)
75.9
63.8
40.2%
76.4%
23.3%
3.1%
n/a
185.9%
(401.5)
-148.1%
(151.4)
(137.7)
150.7
(138.4)
-34.5%
95.6%
n/a
n/a
Exchange differences, change in consolidation scope,
etc.
1.8
(61.5)
-102.9%
Increase/(decrease) in cash and cash equivalents
313.4
3.6
n/a
2.1.6.1. Operating cash flow
The operating cash flow generated in the year business amounted to €746.2 million, 23.3% more
than in the previous year. It is noteworthy that this figure is obtained even though the current
operating working capital was up €167.9 million, which includes in this year the elimination of the
balance of non-recourse loan assignments for €109.1 million, most of them in the Water Area, as
was done in the Environment Area in the previous year, with the common aim of optimising and
reducing the Group's financial costs.
The heading collections/(payment) of corporation tax shows an outflow of €135.6 million com-
pared to €96.7 million in 2020, a variation that is explained by the increase in net income during
this business year and in line with the accounting basis affecting the accrual of taxes.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 16 of 42
_ 422
The heading other operating cash flow includes an outflow of €76.9 million compared to €43.6
million the previous business year, due to the application of provisions mainly in the Construction
and Environment Area.
2.1.6.2. Investing cash flow
The investment cash flow represents a generation of €193.1 million euros compared to an appli-
cation of €401.5 million in the previous business year.
The most significant item of this first period corresponds to earnings for transport concession
divestment transactions, for a cash entry of 377.1 million euros, so proceeds from disposals
amounted to 568.6 million euros, when compared to 75.9 million euros of the last business year.
In addition, last July, 93 million euros were collected from the sale of various energy assets, to-
gether with others distributed among other areas, such as Construction and Real Estate, which
added the remaining 98.5 million euros.
With regards to payments for investments totalling 557.9 million euros, these are similar to those
during the last year. By business area, the Environment Area's investments represented 299.4
million euros, highlighting the investment required for the construction and expansion of the
Loeches and Campello treatment plants, for a combined amount of 42.8 million euros. In the UK,
among the most significant investments is the one made in the progress of the development of
the Lostock energy recovery plant for 28.6 million euros, as well as the investment of 30 million
euros in the USA, out of a total of 69.6 million euros invested in the country, for the purchase of
an urban waste collection company in the state of Texas last December.
In the Water Area, payments for investments amounted to 107.1 million euros, of which 24.3
million euros are for new contracts, among which Mexico, Colombia, and Spain stand out, dis-
tributed among different concession contracts for the operation of hydraulic plants and the end-
to-end cycle.
Lastly, included in the Real Estate heading is 83.9 million euros invested in the acquisition of an
additional 13.12% of the Realia Group's capital by the parent company in the Real Estate Area,
FCC Inmobiliaria, which allowed it to gain control and full consolidation.
The breakdown of net investments by business area, excluding other cash flows from investment
activities, in terms of payments and collections, is as follows:
Environment
Water
Construction
Cement
Real Estate
Corporate serv. etc. & adjustments
Net investments (Payments - Collections)
(Millions of euros)
Dec. 21
Dec. 20
Chg. (Mn€)
(291.8)
(86.8)
0.5
(10.9)
(64.9)
464.6
10.7
(283.1)
(134.1)
(7.6)
(10.4)
0.0
(30.1)
(465.3)
(8.7)
47.3
8.1
(0.5)
(64.9)
494.7
476.0
Other investment flows amounted to 182.4 million euros, of which 116.4 million euros came from
the Real Estate Area, largely due to the entry of the balance of cash and cash equivalents from
the consolidation of the Realia Group and Jezzine, as well as a further 36.9 million euros in Water
from the cancellation and recovery of deposits and cash linked to various projects.
2.1.6.3. Financing cash flow
The consolidated cash flow from financing in the year represents an application of 627.7 million
euros compared to 138.4 million euros in the previous business year. Interest payments amount-
ed to 99.1 million euros, mainly in the Water and Environment Areas, with a substantial reduction
compared to the previous year, in line with the reduction in the average balance of financial debt
this year.
The heading "Proceeds from/(payments on) financial liabilities" includes an application of the fi-
nancing flows, with a net reduction worth 269.3 million euros in the business year, extending and
increasing the 137.7 million euros recorded in the previous year. In addition, the heading other
financing flows includes an application of 259.3 million euros, which essentially includes the pay-
ment of 189 million euros for the acquisition of non-controlling interests in companies in the Real
Estate Area (Hnos. Revilla in Realia) and the payment of dividends to shareholders of the parent
company and minority shareholders of the rest of the consolidated group for a total amount of
63.1 million euros.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 17 of 42
_ 423
2.1.6.4 Change in cash and cash equivalents
As a result of the performance of the different cash flow components, the FCC Group's cash
position increased by 313.4 million euros since December 2020, with a balance of 1,535.5 million
euros at the close of the business year.
2.1.7. Analysis by Business Areas
2.1.7.1. Environment
The Environment division contributed 47.5% of the Group's EBITDA in the 2021 business year.
Some 80.7% of its activity is focused on the provision of essential waste collection, treatment and
disposal services, as well as street cleaning. The remaining 19.3% corresponds to other types
of urban environmental activities, such as the conservation of green areas or sewage systems.
In Spain, it provides services in more than 3,500 municipalities and serves a population of more
than 31 million inhabitants. It is worth mentioning the important weight of the urban waste man-
agement and street cleaning services. In the UK, it focuses on urban waste treatment, recovery
and disposal activities and serves more than 22 million people. In Central Europe, mainly Austria
and the Czech Republic, FCC is present across the entire waste management chain (collection,
treatment and disposal). FCC's activities in the US include both the collection and end-to-end
retrieval of municipal waste.
Revenues at the Environment Area were up 12.4% to reach 3,244.9 million euros at the end of the
business year. The waste collection and street cleaning activity's revenues rose by 8.5% to 1,550
million euros, thanks to the new contracts, especially in Spain and the US, as well as the greater
contribution in the activity of street cleaning and other similar services in Spain. Waste treatment
activity was up 21.4% to €1,067.5 million, largely due to the recovery of the activities in the UK
and the increase in activity in Central Europe, alongside the activity of a new plant in the USA.
Breakdown of revenue by geographical area
(Millions of euros)
Spain
United Kingdom
Central Europe
US and others
Total
Dec. 21
Dec. 20
Chg. (%)
1,837.2
1,715.8
708.3
550.7
148.7
605.3
464.6
102.5
3,244.9
2,888.2
7.1%
17.0%
18.5%
45.1%
12.4%
By geographical area, revenues in Spain were up 7.1% compared to the previous year to reach
1,837.2 million euros, due to an increased contribution from the Campello treatment plant, plus
the contribution made by the new street cleaning and waste collection contracts. Also significant
has been the increased activity in cleaning and green areas due to a return to normal after the
partial disruptions suffered in certain periods of last year.
2.1.7.1.1. Earnings
Turnover
Waste collection and street cleaning
Waste processing
Other services
EBITDA
EBITDA Margin
EBIT
EBIT margin
(Millions of euros)
Dec. 21
Dec. 20
Chg. (%)
In the UK, turnover increased by 17% to 708.3 million euros, mainly due to the recovery in the
recycling and reduction of urban waste, after stoppages and lower volumes treated in the previ-
ous year.
3,244.9
1,550.0
1,067.5
627.4
535.1
16.5%
285.4
8.8%
2,888.2
1,428.6
879.0
580.6
450.9
15.6%
215.7
7.5%
12.4%
8.5%
21.4%
8.1%
18.7%
0.9 p.p
32.3%
1.3 p.p
In central Europe, revenues grew by 18.5% to 550.7 million euros due to the higher volume of ac-
tivity in almost all countries in which the company operates, mainly the Czech Republic, Slovakia,
and Poland, in urban collection and treatment, as well as due to the general increase in the price
of recycled by-products.
Last but not least, turnover in the USA and other markets increased by 45.1% to 148.7 million
euros, mainly due to the contribution from new urban collection contracts in Omaha (Nebraska)
and Volusia (Florida), as well as the treatment and recovery plants in Texas
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 18 of 42
_ 424
BREAKDOWN OF REVENUE BY GEOGRAPHICAL AREA
21.8%
56.6%
17.0%
4.6%
Spain
UK
Central Europe
US and Others
The gross operating profit (EBITDA) increased by a remarkable 18.7% to 535.1 million euros due
to the aforementioned development of revenues and the improvement in volumes treated and
prices in the treatment and recovery activities. This has allowed the operating margin to recover
by 0.9 per cent and to reach 16.5%, close to pre-pandemic profitability levels.
The net operating profit (EBIT) increased by 32.3% over the previous year to 285.4 million euros,
thanks to the development of the different components mentioned in the EBITDA.
Breakdown of backlog by geographical area
(Millions of euros)
Spain
International
Total
Dec. 21
Dec. 20
Chg. (%)
6,300.6
4,445.8
10,746.4
4,872.2
4,312.1
9,184.3
29.3%
3.1%
17.0%
At the end of last December, the area's backlog increased by 17% to 10,746.4 million euros. In
Spain, it amounts to 6,300.6 million euros, where the contribution of street collection and cleaning
in Barcelona stands out with 903.2 million euros, as well as other contracts in the city of Madrid,
for a total amount of 682.6 million euros. In the rest of the territorial areas as a whole, the port-
folio of services also increased by 3.1% to 4,445.8 million euros, highlighting the new contracts
secured in the UK and the USA.
2.1.7.1.2. Financial Debt
Net Financial
(Millions of euros)
Dec. 21
1,289.7
Dec. 20
Chg. (Mn€)
1,330.2
(40.5)
Financial debt decreased slightly in the year to 1,289.7 million euros. Its main balance corre-
sponds to the issuance of two green bonds and a smaller amount of euro commercial paper, with
a total accounting balance exceeding 70% of the total at year-end. The remainder mainly finances
activity in the UK and is linked to project financing of waste treatment and recycling plants.
2.1.7.2. Water
The Water Area contributed 26.5% of FCC Group EBITDA in the period. 90.1% of its activity is
focused on public service concession management related to the end-to-end water cycle (collec-
tion, treatment, storage and distribution) and the operation of different types of water infrastruc-
tures; the remaining 9.9% 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 1,100 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 its activity
centres on the design, equipping, and operation of processing plants. Overall, the Water Area
provides supply and/or sanitation services to more than 29 million inhabitants.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 19 of 42
_ 425
2.1.7.2.1. Earnings
Turnover
Concessions and services
Technology and networks
EBITDA
EBITDA Margin
EBIT
EBIT margin
(Millions of euros)
Dec. 21
Dec. 20
Chg. (%)
1,169.5
1,053.3
116.2
298.9
25.6%
181.3
15.5%
1,188.3
1,016.6
171.7
282.9
23.8%
167.4
14.1%
-1.6%
3.6%
-32.3%
5.7%
1.8 p,p
8.3%
1.4 p,p
Revenues fell slightly in the year to 1,169.5 million euros, due to decreased activity in the devel-
opment of hydraulic assets. Revenues of the concessions and services and core business ac-
tivity were up by 3.6% to 1,053.3 million euros, due to the higher volume of activity in Spain and
abroad. Moreover, the activity of the Technology and Networks are dropped by 32.3%, due to the
entry into the completion phase of a number of one-off international projects, which was partially
offset by the growth of this activity in Spain.
Breakdown of revenue by geographical area
(Millions of euros)
Spain
Central Europe
Middle East, Africa and Others
Rest of Europe (France, Portugal and Italy)
Latin America
Total
Dec. 21
Dec. 20
Chg. (%)
814.2
113.6
112.4
80,8
48.5
784.3
105.0
163.1
78.5
57.4
1,169.5
1,188.3
3.8%
8.2%
-31.1%
2.9%
-15.5%
-1.6%
Internationally, Central Europe grew by 8.2% to €113.6 million following the tariff update in the
end-to-end cycle activity in the Czech Republic and the favourable performance of the exchange
rate of the Czech koruna (+3.2% in the year). In the Rest of Europe, revenues increased by 2.9%
to 80.8 million euros, driven by the tariff increase for the Aque di Caltanissetta (IT) concession
contract and the higher volume of activity in Technology and Networks for this contract.
The Middle East, Africa, and Others accounted for the fall in revenues in the Area to 112.4 million
euros. This decrease was concentrated in the Technology and Networks business, almost entirely
due to the slowdown in the almost completed construction of a wastewater treatment plant in
Egypt.
Lastly, in Latin America, turnover decreased by 15.5% to 48.5 million euros, due to the lower
contribution in the Technology and Networks business, both in Mexico and Colombia, of projects
that are already at very advanced stages of execution and which have not been offset by others
recently awarded, together with the increase in the end-to-end cycle business in Colombia.
BREAKDOWN OF REVENUE BY GEOGRAPHICAL AREA
69.6%
9.6%
9.7%
4.1%
7.0%
Spain
Middle East, Africa and Others
Central Europe
Latinoamérica
Latin America
By geographical area, revenues in Spain increased by 3.8% to 814.2 million euros. This growth
has occurred in each and every one of the activities, with Technology and Networks standing out
due to both the contracts linked to one-off projects and the implementation of the investment
plans of the concession contracts. Regarding the latter activity, the growth in m3 billed was 0.5%,
with a progressive recovery towards pre-pandemic demand levels.
Gross operating profit (EBITDA) increased by 5.7% and totalled 298.9 million euros, due to the
higher concession activity that more than compensated for the lower contribution of the Technol-
ogy and Networks business and enabled the operating margin to grow to 25.6%, compared to
23.8% the previous year.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 20 of 42
_ 426
Net operating profit (EBIT) was up by 8.3% when compared to last year's figures, totalling 181.3
million euros, due to the performance of gross operating profit, as discussed previously.
Breakdown of backlog by geographical area
(Millions of euros)
Spain
International
Total
Dec. 21
Dec. 20
Chg. (%)
7,149.6
8,211.5
7,224.7
7,801.2
15,361.1
15,025.9
-1.0%
5.3%
2.2%
Turnover
EBITDA
EBITDA Margin
EBIT
EBIT margin
Dec. 21
1,659.6
102.6
6.2%
71.1
4.3%
(Millions of euros)
Dec. 20
Chg. (%)
1,611.0
53.6
3.3%
20.9
1.3%
3.0%
91.5%
2.9 p.p
240.2%
3.0 p.p
The backlog at year-end totalled €15,361.1 million, 2.2% more than in 2020. In Spain, several
contracts for the island of Tenerife, the end-to-end management contract in Salamanca, and the
La Línea contract in Cádiz deserve a special mention. In the international area, the contract for
comprehensive improvement and management in Los Cabos (Mexico) and the end-to-end cycle
of Mantes-la-Jolie in France are also worth mentioning.
Revenues in the area were up by 3% to 1,659.6 million euros, largely due to the steady pace of
project performance in Spain Europe and Latin America, offsetting the lower activity levels in the
Middle East.
Breakdown of revenue by geographical area
(Millions of euros)
Dec. 21
Dec. 20
Chg. (%)
2.1.7.2.2. Fiancial Debt
(Millions of euros)
Rest of Europe and Others
Spain
Dec. 21
Dec. 20
Chg. (Mn€)
Latin America and the USA
Net Financial Debt
1,247.6
1,177.6
70.0
Middle East and Africa
885.2
419.2
209.4
145.8
848.8
390.0
126.0
246.2
Total
1,659.6
1,611.0
4.3%
7.5%
66.2%
-40.8%
3.0%
Net financial debt reached 1,247.6 million euros at the end of the business year. The increase in
net debt in the year is due to the complete elimination of loan assignments in the year amounting
to 107.1 million euros.
2.1.7.3. Construction
The Construction Area contributed 9.1% of the FCC Group's EBITDA at the end of the business
year. Its activity focuses on the design and construction of large civil, industrial and building
works, with a selective presence in certain regions, currently around 20 countries. Special men-
tion should go to participation in major works like railways, tunnels, bridges and football stadiums
that constituted a major part of the activity.
By geographical area, turnover in Spain increased by 4.3% to 885.2 million euros, due to the
good pace of execution in the remodelling of the Santiago Bernabéu football stadium, as well as
in other minor public works such as the remodelling of the Plaza de España and the island ring
road in Tenerife.
Similarly, in the Rest of Europe and other markets, turnover grew by 7.5% compared to the previ-
ous year, reaching 419.2 million euros, thanks to the greater contribution of projects under devel-
opment, such as the A-9 in the Netherlands and the A-465 motorway in Wales, which compen-
sated for the lower contribution of others already completed, such as Grangegorman in Ireland.
In Latin America and the USA, revenues grew significantly, up to 209.4 million euros, largely due
to the increased contribution of the Maya Train in Mexico and the commencement of a road
project in Chile.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 21 of 42
_ 427
The drop in revenues is mainly concentrated in the Middle East, down to 40.8% to 145.8 million
euros, essentially due to the lower activity reported in the construction of the Riyadh metro in
Saudi Arabia as the project nears completion.
to the progress of contracts and the adjustments made to the projects to be carried out in certain
countries, which have yet to be offset by new contracts.
Breakdown of the Backlog by Activity Segment
(Millions of euros)
BREAKDOWN OF REVENUE BY GEOGRAPHICAL AREA
8.8%
25.3%
Spain
Middle East and Africa
Europe and Others
Latin America & USA
Civil engineering works
Building
Industrial Projects
Total
Dec. 21
3,301.6
426.3
253.4
Dec. 20
Chg. (%)
4,121.5
695.0
339.3
-19.9%
-38.7%
-25.3%
-22.8%
3,981.3
5,155.8
Civil engineering works continue to be the dominating segment by type of activity, representing
82.9% of the total.
12.6%
2.1.7.4. Cement
53,.3%
The Cement Area contributed 6.8% of the FCC Group's EBITDA in the business year. This activity
was undertaken by the CPV Group, which focuses on manufacturing cement and by-products,
with 7 main production centres in Spain and 1 in Tunisia, in addition to a minority stake of 45% in
Giant Cement, which operates a number of factories on the east coast of the US.
Gross operating profit increased significantly by 91.5% to 102.6 million euros compared to 53.6
million euros in the previous year. This increase is based on the aforementioned development of
revenues and especially on the disappearance of the impact on various projects in the previous
year caused by the slowdown and stoppages due to by the measures taken to combat the health
crisis. As a result, the operating margin for the year amounted to 6.2%, similar to the level reached
in previous quarters.
Net operating profit totalled 71.1 million euros, compared to 20.9 million euros for the previous
year, thanks to the performance of gross operating earnings, as mentioned previously.
2.1.7.4.1. Earnings
Turnover
Cement
Other
EBITDA
Breakdown of backlog by geographical area
(Millions of euros)
EBITDA Margin
EBIT
Dec. 21
Dec. 20
Chg. (%)
EBIT margin
(Millions of euros)
Dec. 21
Dec. 20
Chg. (%)
433.8
393.2
40.6
76.1
17.5%
(90.3)
-20.8%
382.6
345.2
37.4
139.9
36.6%
106.8
27.9%
13.4%
13.9%
8.6%
-45.6%
-19.0 p.p
-184.6%
-48.7 p.p
Spain
International
Total
1,368.0
2,613.3
3,981.3
1,628.4
3,527.4
5,155.8
-16.0%
-25.9%
-22.8%
The area's revenues rose 13.4% compared to last year and amount to 433.8 million euros, due
to an increase in volumes invoiced in Spain as well as an increase in exports from local markets
(Spain and to a lesser extent Tunisia).
The revenue portfolio drops to 3,981.3 million, more sharply in the International realm, due both
Breakdown of revenue by geographical area
(Millions of euros)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 22 of 42
_ 428
Spain
Tunisia
Miscellaneous (exports)
Total
Dec. 21
Dec. 20
Chg. (%)
262.9
57.8
113.1
433.8
237.9
57.8
86.9
382.6
10.5%
0.0%
30.1%
13.4%
With regards to the geographical areas, the turnover in Spain was up by 10.5% to 262.9 million
euros, due to the significant increase in volumes, which concentrated in the first half of the year,
together with price stability, all derived from the drop in demand since last year, mostly of private
origin.
In the local Tunisian market, turnover remained at the same level as the previous year at 57.8
million euros, where the increase in prices compensated for the slight decrease in volumes.
euros during the previous year. This drop is largely explained by the impact of the sale of a large
volume of CO2 rights during the previous year, which amounted to 58.9 million euros, as com-
pared to
7.8 million euros during this year. Excluding this differentiating factor, operating profit excluding
CO2 was down 15.6% compared to the previous year, mainly due to the effect of the increase in
electricity and fuel prices in the second half of 2021.
The net operating profit was -90.3 million euros, mainly due to a 136-million-euro adjustment to
the value of various property, plant and equipment and goodwill, in order to better reflect their
estimated future cash generation capacity.
2.1.7.4.2. Financial Debt
Moreover, export revenues increased by a noteworthy 30.1% to 113.1 million euros, following an
increase in exports, mainly to the EU, from Spain, in particular to the UK and France, as well as
those from Tunisia.
Net financial debt
BREAKDOWN OF REVENUE BY GEOGRAPHICAL AREA
13.3%
26.1%
Spain
Tunisia
Others
60.6%
Moreover, EBITDA stood at 76.1 million euros, 45.6% down when compared to 139.9 million
Net financial debt, entirely without recourse to the Group's parent company, dropped to
49.3 million euros when compared to December of last year, reaching 124.4 million euros, as
a consequence of the application of the free cash flow generated in the year as a whole to the
reduction of financial indebtedness. The Cement Area therefore reaches a new milestone in the
progressive strengthening of its financial soundness.
2.1.7.5. Real Estate
The Real Estate Area will contribute 3.6% of the FCC Group's EBITDA in 2021. Its activity is cen-
tred in Spain and is structured in two main activities, with the first being the holding, development,
and operation of all types of real estate on a rental basis (mainly offices, premises, and shopping
centres). This is in addition to the development for sale of properties, which includes the urban
management of its land portfolio, providing development management services for third parties.
(Millions of euros)
Dec. 21
Dec. 20
Chg. (Mn€)
124,4
173,7
(49,3)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 23 of 42
_ 429
2.1.7.5.1. Earnings
Turnover
Rentals
Residential Development
EBITDA
EBITDA Margin
EBIT
EBIT margin
(Millions of euros)
Dec. 21
Dec. 20
Chg. (%)
147.9
17.2
130.7
40.0
27.0%
298.3
34.8
0.0
34.8
(3.8)
n/a
n/a
n/a
n/a
-10.9%
38,0 p.p
(3.8)
n/a
n/a
201.7%
-10.9%
The area's revenues amounted to 147.9 million euros in 2021, a substantial increase over the
previous year, due both to the aforementioned entry into the scope using full consolidation of the
Realia Group and Jezzine, and to the increase in revenues from the Development activity, due to
the higher rate of deliveries throughout this business year.
In the Residential Development activity, with 130.7 million euros of revenues in the year, this is
explained by the increase in activity, which in comparable terms (without considering the effect of
the consolidation of the Realia Group), would have grown to 102.3 million euros in this business
year. In addition, the activity has been reinforced by the contribution of the Realia Group for two
months of the year, with 28.4 million euros. The revenues generated were distributed among more
than ten developments, mainly in metropolitan areas of large cities in Spain.
The revenue reported by Rentals was 17.2 million, compared to the lack of a contribution in the
previous year and only two months of this activity in the year. Its revenues are concentrated in
the use of offices (comprising Jezzine's network of properties dedicated to the rental of bank
branches), which accounted for more than 80% of the total, followed by rent generated by the
operation of shopping centres. At year-end, the occupancy rate exceeded 95%, supported by
high occupancy levels in all uses, locations, and the very long-term contract held by the subsidiary
Jezzine in relation to offices.
Similarly, EBITDA performed better this year, with a figure of 40 million euros, due both to the
higher profitability of Development operations and to the effect of the contribution of the new
Rentals activity, with a much higher operating margin. As a result, the operating margin stood at
27% for the year, a percentage that should increase in the coming periods as the contribution of
the Rentals activity is extended to the whole of the annual period.
EBIT contains the effect of the aforementioned change in EBITDA, together with the profit gener-
ated by raising the value of Realia's rental assets by 241.7 million euros to their fair market value.
The latest available market valuation of the Area's Real Estate assets, which totalled 2,941.8 mil-
lion euros at 31 December 2021, is presented below. The majority corresponds to rental assets,
which account for 71% of the total, a figure of 2,086.6 million euros, while Residential Develop-
ment, which includes land at different stages of development together with developments being
marketed, in progress, and completed, accounts for 29% of the total, amounting to 855.2 million
euros.
GAV PER ACTIVITY*
RENTALS
RESIDENTIAL DEVELOPMENT
71%
29%
5.0%
14.9%
80.5%
64.2%
23.7%
12.1%
Rentals
Development
Other Assets
Shopping Centers
Offices
Fully permited land**
Urbanisation
Planning
* Development data of FCC Inmobiliaria, S.A. as at 30 June 2021.
** Includes products in progress and finished products.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 24 of 42
_ 430
2.1.7.5.2. Financial Debt
Net financial debt
(Millions of euros)
Dec. 21
Dec. 20
Chg. (Mn€)
889.7
0
889.7
The balance of financial debt at 31 December 2021 amounted to 889.7 million euros, compared
to zero in the previous year. The net financial indebtedness generated this year is explained in its
entirety by the full consolidation of the Realia Group's debt and that of Jezzine, both at year-end.
Both subsidiaries have long-term financing structures, linked to their rental assets and are sepa-
rate from the head of the area, FCC Inmobiliaria.
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 for the Group of preserving the environment and the responsible use
of available resources, and in line with the vocation of service through activities with a clear en-
vironmental focus, the Group promotes and encourages the following principles throughout the
organisation, on which the contribution to sustainable development is based:
• Continuous improvement: Promote environmental excellence by establishing objectives for
the continuous improvement of performance, minimising the negative impacts of the Group's
processes, products and services, and enhancing the positive impacts.
• Monitoring and control: establish environmental indicator management systems for the oper-
ational control of processes, which provide the necessary knowledge for monitoring, assess-
ment, decision-making and communication of the 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. Prevent pollution and protect the environment through
responsible management and consumption of natural resources, and also by minimising the
impact of emissions, discharges and waste generated and managed by the Group's activities.
• Observation of the environment and innovation: Identify the risks and opportunities of the
activities in the face of the changing natural environment in order, among other things, to drive
innovation and the application of new technologies, and also to generate synergies between
the Group's various activities.
• Life cycle of products and services: enhancing environmental considerations in business plan-
ning, procurement of materials and equipment, and relations with suppliers and contractors.
• The necessary participation of all parties: promote the knowledge and application of environ-
mental 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 sustainable environment.
2.3. Business performance. Personnel
Attached is a breakdown of the Group's headcount at the end of the year, by business area:
Areas
2021
Environment
Water Management
Construction
Cement
Concessions
Central Services and Others
Spain
Abroad
TOTAL
%/Total
33,909
6,701
3,828
809
50
398
7,643
3,117
2,781
240
71
0
41,552
9,818
6,609
1,049
121
398
70%
16%
11%
2%
0%
1%
TOTAL
45,695
13,852
59,547
100%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 25 of 42
_ 431
3. Liquidity and capital resources
Liquidity
In addition, in 2021 Cementos Portland Valderrivas, S.A. has voluntarily and early repaid all of
its syndicated financing for a total of €115.5 million and has contracted new bilateral financing
facilities (note 20 of Non-current and current financial liabilities in the notes to the 2021 annual
accounts).
In order to optimise its financial position, the Group maintains a proactive liquidity management
policy with daily cash monitoring and forecasts.
The Group covers its liquidity needs through the cash flows generated by the businesses and
through the financial agreements reached.
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.
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 Group
to manage liquidity risk and the factors mitigating said risk.
Capital resources
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. Since then, new funding facilities
were also arranged in the form of credit facilities and bilateral loans. In 2020, FCC Servicios Me-
dioambiente Holding, S.A.U. registered a promissory note programme which it renewed in 2021
for an amount of up to €400 million; it also has financing facilities in the form of credit facilities.
In order to optimise the cost of capital resources, the Group maintains an active policy of interest
rate risk management, constantly monitoring the market and taking different positions depending
mainly on the assets financed.
The performance of interest rates in recent years is shown below.
3.00%
2.70%
2.40%
2.10%
1.80%
1.50%
1.20%
0.90%
0.60%
0.30%
0.00%
-0.30%
-0.60%
Dec.17 Mar.18
Jun.18
Sep.18
Dec.18
Mar.19
Jun.19
Sep.19
Dec.19 Mz20 Jun.20 Sp20 Dec.20 Jan.21 Feb.21 Mar.21 Apr.21 May.21 Jun.21 Jul.21 Aug.21 Sep.21 Oct.21 Nov.21 Dec.21
EURIB 6M
GBP-LIBOR 6M
USD-LIBOR 6M
This section is discussed in greater detail in note 30 to the consolidated financial statements.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 26 of 42
_ 432
4. Major risks and uncertainties
4.2. Major risks and uncertainties
4.1. Risk Management Policy and System
The 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 assur-
ance regarding the achievement of the main objectives defined. This model applies to all Group
companies, as well as to those affiliates where 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 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 Gov-
ernance Report.
The Group operates worldwide and in different sectors and, therefore, its activities are subject 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
activities, 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 12.1 of the
Non-Financial Information Statement.
With regard to financial risks, which are considered to be the changes in the financial instruments
arranged by the Group due to political, market and other factors, and their repercussions on the
financial statements, the risk management philosophy is consistent with the business strategy,
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
discussed in greater detail in note 30 to the consolidated financial statements, in section E of
the Annual Corporate Governance Report and in section 12.1 of the Non-Financial Information
Statement.
In addition, the 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 27 of 42
_ 433
5. Acquisition and disposal of own shares
7. Outlook
The outlook for the performance of the Group's main business areas in 2022 is given below.
Environmental Services Area
In the countries where the Environmental Services Area operates, the sector is undergoing a
process of transformation, mainly due to the environmental requirements of each country derived
from the European Directives (new opportunities based on the ambitious objectives 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.
Moderate growth is expected in Spain based on the start-up of new contracts already awarded.
The entry into force of the new state waste tax is delayed until 2023, which implies stability in risk
management activity. The contract renewal rate, which currently stands at over 90%, is expected
to be maintained.
No significant changes 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]).
On 28 July, the company reported that the Board of Directors, at its meeting held on 27 July,
approved a Temporary stock buy-back programme, which will be closed on 30 September 2021.
This programme is aimed at reducing FCC's share capital through the redemption of its own stock
and it has the following characteristics: the maximum number of shares to be acquired under the
Programme is 1.7 million and the maximum investment of the Programme was 20 million euros.
Subsequently, on 23 September, the Board of Directors agreed to extend the Temporary stock
buy-back programme for an additional six-month period, which will end on 30 March 2022.
All in all, the treasury stock position at the end of the business year amounted to 2,410,758
shares, equivalent to 0,567% of the capital stock.
The acquisition and disposal of treasury shares carried out during the year are disclosed in Note
18 of the Notes to the consolidated financial statements.
6. Significant events occurring after the end
of the year
On 2 February 2022, FCC Aqualia, S.A. acquired a 60% stake in Georgia Global Utilities JSC for
USD 180 million, a water and renewable energy utility in Georgia. This acquisition is the first step
in a global operation in which FCC Aqualia, S.A. will end up holding 80% of the water utilities
business when a second phase of the agreement is completed, still subject to the fulfilment of
suspensive conditions, which basically consists of the spin-off of the renewable energy business.
On 25 January 2022, FCC Aqualia, S.A. cancelled in advance the loan agreement for variable
interest provisions amounting to 200,000 thousand Euros which was fully drawn down and in
cash at 31 December 2021 (note 20). Also, on 25 January 2022, FCC Aqualia, S.A. signed a new
loan agreement for variable interest provisions maturing on 31 March 2023 for the same amount.
This new contract can be used for the Company's cash requirements and for the redemption of
the GGU bonds mentioned above.
There have been no further significant events between the end of the reporting period and the
date of authorisation of these financial statements.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 28 of 42
_ 434
Europe
In Portugal, business opportunities related to soil decontamination activities and new urban san-
itation contracts stand out.
The UK economic forecasts point to a return to the pre-pandemic GDP level by the end of 2021.
Despite the uncertainty in the near future caused by the latest effects of COVID-19, the Office for
Budget Responsibility (OBR) has estimated medium-term GDP growth of around 2% per year,
based on the strength of the labour market and rising tax revenues. Regarding the environment,
after leaving the EU, the UK not only shares the EU's circular economy objectives and recycling
targets, but aims to be more ambitious than the EU in terms of household waste recycling rates
and the portion of waste to landfill, as well as being more aggressive in the timing of implemen-
tation. In addition, the government has a draft "Environmental Law" with ambitious recycling
targets, and with new aspects to monitor compliance, as well as the establishment in 2022 of
a packaging tax, while supporting measures to reduce CO2 emissions. Given the nature of the
sector, which is strongly conditioned by environmental legislation, FCC will continue to keep a
close eye on legislative developments in these areas. The year 2021 has seen a recovery in the
market and prices for recycled products, where the quality of the products remains essential for
their commercialisation, although it will always be subject to some price volatility; the export of
RDF (refuse derived fuels) to Europe has been suffering from trade barriers and the development
of new treatment plants, a positive development for our UK division, which continues with its
strategy of energy production through the waste treatment and disposal.
In Central and Eastern Europe, organic growth is expected in parallel with macroeconomic indi-
cators (inflation and GDP) in each of the countries. A solid municipal and industrial customer base
is maintained with the inclusion in 2022 of the collection and risk management contract in the
Tyrol region (Austria) and the recovery of the collection and treatment contract in Zabrze (Poland).
Recycling prices (especially paper and metals) are expected to remain at the high levels of 2021
and FCC has already been awarded several soil decontamination projects in the Czech Republic
and Slovakia which are expected to be executed in the period 2022-2024.
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 Poland,
must gradually transform their business model, reducing volumes in landfills and increasing treat-
ment and recycling activities in order to adapt to European Union directives. This process entails
legislative changes that are already becoming visible (especially in Poland and Slovakia) and will
require significant technological investments in the coming years in order to maintain a leading
and competitive position in these markets (e.g. incinerators). A number of projects are already
being analysed in each of these countries and could materialise in the short term.
USA
The Group has also begun to promote mechanical biological treatment plants in the USA, in line
with new regulations that are beginning to make it mandatory in some statuses to minimise landfill
disposal. The group's significant experience at European and international level will bring consid-
erable development in this business for FCC, which has a clearly differentiating experience in this
technology compared to its usual competitors in the country.
Water
Expectations for 2022 are for an increasing recovery in the levels of activity that have been affect-
ed by the COVID-19 pandemic, fundamentally in the geographical areas where demand is most
closely linked to tourism activity. In this regard, we expect a significant recovery in the Canary and
Balearic Islands in the coming quarters to recover the volumes invoiced in 2019, This situation
will be reinforced by the new contracts incorporated into the perimeter during 2021, and also by
the maintenance of the high rates of renewal of contracts that Aqualia historically records on their
expiry. This increase in revenues will lead to an improvement in results, reinforced by the contin-
uation of cost optimisation actions.
By 2022, concessions in Spain in the area of end-to-end water cycle service concessions are
expected to maintain renewal rates similar to 2021, i.e. above 90%. In terms of new procurement,
several expiring contracts, currently operated by competitors, are expected to be tendered out.
In addition, major water treatment works are expected to be tendered in Madrid and Palma de
Mallorca.
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 proliferation of opera-
tion and maintenance contracts promoted by public companies belonging to Aguas de Portugal
and inter-municipal companies is expected.
New public service delegation tenders are expected to be launched in France due to the expiry
of the contractual term of one of the country's existing contracts.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 29 of 42
_ 435
In Saudi Arabia, tenders will be awarded for operation and maintenance contracts for water and
sanitation services in the six regions into which the Saudi kingdom has been divided, before they
are finally transformed into administrative concessions.
During 2022 Aqualia will consolidate the operation of the new contract to operate the Jizan desal-
ination plant in Saudi Arabia and the operation of the Abu Rawash wastewater treatment plant
in Egypt, the largest in Africa.
In LATAM, the 20-year operation period of the Guaymas IDAM (Sonora, Mexico) will begin, the
contract for the end-to-end management improvement of Los Cabos (Baja California Sur) will
start, as well as the operation of the El Realito aqueduct and the technical assistance period of the
Salitre WWTP (Colombia) will end. 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. Opportunities in end-to-end water cycle manage-
ment will also be explored.
Finally, in Peru, we will continue with the preparation of the private initiatives represented as rel-
evant for Aqualia, expecting the tendering of approximately 5 BOT purification contracts, and in
the USA, the projects currently under study will be presented to their corresponding clients under
the formula of "unsolicited proposals", for their assessment and, if accepted, for their subsequent
execution. Market exploration will also continue with the aim of acquiring a growth platform for
the country.
Construction
The Group focuses on the international market in countries and markets with a stable presence,
and on the execution of projects with secured 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 2022, the turnover obtained in Spain will
remain similar to that obtained in 2021.
The estimated 2022 foreign market turnover is expected to resemble 2021, with the develop-
ment of major infrastructure projects obtained between 2019 and 2021 and the contribution of
the markets in America (Mexico, Chile, Peru, Colombia) and Europe (the Netherlands, the United
Kingdom and Romania).
Cement
During 2021, there has been a very significant increase in the cost of maritime freight and, above
all, in the gas and electricity markets. These increases have been passed on as supply chain
disruptions on the one hand, and on the other hand are the main source of inflationary pressures
that have been passed on to virtually all products and services. The lack of visibility on the return
to normality is very high.
On 17 December 2021, the Bank of Spain revised Spain's GDP growth for 2021 downwards to
4.5%, due to supply shortages, longer product delivery times, more expensive energy supplies
and, finally, the OMICRON variant of COVID-19. For 2022 it forecasts growth of 5.4% with an
unemployment rate of 14.2%, almost one point lower than expected for 2021. It is not until the
end of 2022 that the Spanish economy will recover to pre-crisis levels caused by the COVID-19
pandemic.
According to estimates by the Association of Infrastructure Construction and Concession Com-
panies (SEOPAN), official tenders up to November 2021 have increased by 80.2% compared to
the same period in 2020. Building permits for new construction have increased by 22% and pub-
lic procurement is estimated to grow by 36% compared to 2020. These increases are reflected in
cement consumption, which reaches 14.9 Mt, 11% more than in 2020, equivalent to 1.5 million
tonnes, according to data provided by the sector's employers' association, OFICEMEN. The
same source also says that the market evolution in 2022 will close in a range of between 3% and
+5%, exceeding 15 million tonnes. Domestic political instability in Tunisia is keeping consumption
levels at low levels. By 2022, growth in the domestic market is estimated at 1.6% to reach 6
million tonnes, after closing 2021 at around 5.9 million tonnes, with a growth of 2.5% over 2020.
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 30 of 42
_ 436
Real Estate
Rental housing
FCC Inmobiliaria's actions for 2022 are focused on the development of its three business lines
in Spain:
Office and shopping centre rentals
• Business backed by the quality of the assets where most of the offices are located in prime
areas, and also the group of shopping centres it owns, which are centres located in the urban
centres of the cities.
• Sustained recurrence of revenues from Jezzine, the lessor of Caixabank's offices, whose
lease expires in 2037.
• Assisting its property subsidiaries to adapt their buildings and business to new trends in effi-
ciency and sustainability in the office and shopping centre market.
• Adapt the commercial relationship with tenants by adapting contracts to market requirements,
such as flexibility of space, duration, etc.
Promoción Inmobiliaria
• Mantenimiento de la actividad promotora en niveles similares al ejercicio pasado, con la fi-
nalización de los proyectos en curso, así como el inicio de nuevos proyectos, con una espe-
cial atención a la rentabilidad de los mismos, así como a la viabilidad de su comercialización,
teniendo para ello presente la evolución de la demanda y el escenario macro de la economía
española que son vitales para el desarrollo de la actividad promotora.
• Continuar con la gestión del banco de suelo que tiene el Grupo, y que se vaya consolidando
como suelo urbano, con el consiguiente incremento de valor y que le asegure una continuidad
en su actividad promotora.
• Adquisición de nuevos activos y/o suelos con recorrido de valor, bien por la gestión y/o por el
mercado.
Continuation and development of the new rental development activity, where Realia will develop
2 new projects for the construction of 195 subsidised housing units (VPPL-VPPB) for rental in the
municipality of Tres Cantos (Madrid), with a total planned investment of €42.9 million, of which
€27.3 million is pending, with the possible acquisition or development of new land for the same
purpose of residential rental housing. The Group continues to operate the Build to Rent (BTR)
residential building of 85 homes in Tres Cantos (Madrid), at 31 December 2021 it has formalised
rental contracts for 100% of the surface area.
8. RD&I activities
The Group's Research, Development and Innovation (RD&I) activities in 2021 were embodied by
over 45 projects.
These projects seek to provide a response to the challenges of each business area while main-
taining global coordination between the different business areas of the Group.
The activities of the different Business Areas and the main projects developed throughout 2021
are detailed below.
Services
In the environmental services activity, we have continued with the development of projects started
in previous years, such as:
• VISION
• BICISENDAS
•
INSECTUM
• B-FERTS
• DEEP PURPLE
• PLASMIX
• LIFE 4 FILM
• H2020 SCALABLE TECHNOLOGIES FOR BIO-URBAN WASTE RECOVERY (SCALIBUR).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 31 of 42
_ 437
In addition, new ones have been launched during 2021, which are summarised below:
End-to-end water management
• VALOMASK: The project involves the design and development of a sustainable management
process for discarded face masks. Under the concept of moving from waste to products, this
project aims to prevent tons of masks from ending up in landfills by means of a mechanical
separation process in Waste Treatment Centres (WTC), recovery and bioconversion, obtain-
ing bio-products that help to prevent the spread of COVID-19. Developing this new process
will call for the generation of new knowledge on the behaviour of masks in risk management
plants and a technological development pathway for the separation of plastics, and also a
new approach to research in this field.
• RECYGAS: This project deepens research into waste gasification and makes it possible to
use the clean synthetic gas obtained from the gasification process to initiate chemical synthe-
sis routes (whose products would no longer have the status of waste) or its use in high-effi-
ciency electricity generation cycles. The technology that the project incorporates would allow
it to climb up the waste management hierarchy towards recycling.
• EFFECTIVE SEALING SOLUTION FOR METALLIC MINING WASTE DUMPS TO CON-
TROL POTENTIALLY TOXIC ELEMENTS: The technology to be implemented in this pro-
ject is the experimental application, on a field scale, of a novel and effective sealing proce-
dure for mining waste deposits, consisting of the installation of a multilayer physical barrier
based on a proprietary technology already patented and tested in a pilot test on a small
scale, but pending validation on a field scale, testing two different types of materials: Con-
struction and demolition waste (CDW) and limestone waste from cuttings and excavations
in mining activities.
In the field of specialised machinery for waste collection activities:
• SPECIAL SIDE-LOADING VEHICLE: Development of a new side-loading compactor collec-
tor vehicle, 2 metres wide (non-existent on the market), on a compressed natural gas chassis,
also 2 metres wide and with a gross vehicle weight of 18 tonnes.
• SPECIAL REAR-LOADING VEHICLE: Development of a new rear-loading compactor collec-
tor of very small dimensions, bi-compartment of 10 m3 with pure electric propulsion and drive
of the bodywork and auto-recharging system of batteries by CNG engine on special chassis,
narrow of 2.2 meters wide and an MAM of 17 tonnes.
Aqualia's innovation is guided by European Green Deal policies to reduce the carbon footprint to
zero, thanks to the transition to a circular economy with no environmental impact. The Innovation
and Technology Department (ITD) develops new smart management tools and new proposals
for sustainable services, supporting the company in achieving the United Nations Sustainable
Development Goals (SDGs). Priorities are affordable, high-quality water and sanitation (SDG 6),
an optimised energy balance (SDG 7) without affecting the climate (SDG 13) and contributing to
sustainable production and consumption (SDG 12).
The projects highlighted in 2021 are listed below:
•
INTERCONECTA (FEDER) ADVISOR: Aiming to achieve a circular economy in the agro-in-
dustrial activity of Guijuelo, and prevent the cost and impact of waste management in the
meat industry, new recovery solutions have been demonstrated at the WWTP operated by
Aqualia. By adapting co-digestion to slaughterhouse waste, with the validation of thermal
pre-treatment and innovative control systems, the energy self-sufficiency of the treatment
plant has been increased. Increased biogas production, and its enrichment with the ABAD
Bioenergy® process, has made it possible to supply biomethane to service vehicles.
There was also a demonstration of the ELSAR process, a new anaerobic reactor with bio-elec-
trochemical intensification, a patent shared with the University of Alcalá. In addition, the trans-
formation of fatty waste into bioplastics has been assessed, and the fertiliser value of the
by-products has been demonstrated in collaboration with farmers in the region.
• H2020 SABANA: Led by the University of Almeria, the consortium of eleven entities from
five countries (including the Czech Republic and Hungary) includes three large companies:
Aqualia, Westfalia (Germany) and the Italian food group Veronesi. The project has optimised
the production of new biofertilisers and biostimulants from algae, and two biorefineries based
on algae cultivation have been implemented in the WWTPs managed by Aqualia in Mérida
(Badajoz) and Hellín (Albacete), totalling five hectares.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 32 of 42
_ 438
• H2020 RUN4LIFE: Led by Aqualia, a consortium of fifteen entities in seven countries has
implemented new nutrient recovery concepts, based on the separation of grey and black
water, in four demonstration sites (Sneek/Netherlands, Ghent/Belgium, Helsingborg/Sweden
and Vigo/Spain). In the Vigo Free Trade Zone, Aqualia operates a membrane reactor (MBR) in
an office building for greywater, which is reused in the toilets. The sewage is transformed into
bioenergy in an anaerobic MBR. In effluents, various nutrient recovery options have been test-
ed, followed by advanced oxidation to remove viruses and emerging pollutants to encourage
reuse. A larger scale prototype installation has been prepared in Balaídos with effluent from
the Citroën industrial complex.
At the other two demonstration sites, involving hundreds of new flats in Ghent and Hels-
ingborg, grey and black water are separated, and organic kitchen waste is included in the
anaerobic reactors. After the housing units were opened in 2020, and the energy and nutrient
recovery facilities were commissioned, the service has been optimised through dialogue with
the users, reducing water and energy consumption through decentralised management.
New vacuum toilets have been installed in some 30 houses in Sneek, with minimal water con-
sumption, facilitating direct thermophilic digestion of sewage in a novel bioreactor that allows
direct production of a fertiliser. An important task was the assessment of the effect of new
fertilisers, verifying through greenhouse cultivation trials the quality and safety of effluents and
by-products of the different nutrient recovery processes.
• RIS3 RECARBÓN: Financed by the Asturian agency IDEPA with FEDER funds, and led by
the engineering company INGEMAS in Gijón with two local SMEs (Biesca and InCo), Aqualia
supports the INCAR (Institute of Carbon Science and Technology) of the CSIC and the CTIC
(Information and Communication Technology Centre) in the research of pollutant adsorption
methods with regenerated activated carbon and bio-char. This sustainable and affordable
adsorbent is assessed for biogas cleaning in the WWTPs of Chiclana, Lleida and Jerez, and
also in the deodorisation of the Luarca and San Claudio WWTPs in Oviedo.
The bio-char is also being tested in new micropollutant adsorption units, for which Aqualia's
accredited laboratory in Oviedo is developing advanced analysis methods, and new sensors
are being validated to enable real-time monitoring at the El Grado WWTP and the Cabornio
DWTP in Oviedo.
• JPI MARADENTRO: The project "Managed Aquifer Recharge: ADrEssiNg 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 WaterWorks 2018 programme, involving
partners in France, Italy and Sweden, and examines soil as a tertiary risk management unit.
A 400 m2 infiltration system is being built at the Medina del Campo WWTP for advanced risk
management of treated water and its reuse in aquifer recharge, compared to conventional
tertiary treatment. Scientific institutes develop system design and simulation tools to optimise
the operation and costs of emerging pollutant removal.
• H2020 SCALIBUR: The project, led by the Itene technology centre, involves 21 partners from
10 countries and focuses on waste reduction and recovery on a European scale. With the
participation of FCC Medio Ambiente, the project focuses on improvements to waste pro-
cessing plants in Madrid, Lund (Sweden) and Rome (Italy) to recover resources and promote
the circular economy.
Within this framework, Aqualia has implemented new sludge risk management at the Estiviel
WWTP (Toledo), testing improvements in thickening and dual two-stage digestion, and sim-
plifying sludge stabilisation without heated concrete structures. The project has facilitated first
innovation activities at SmVaK in the Czech Republic to convert organic matter into by-prod-
ucts and bioenergy, and prototypes are being built at the Karviná WWTP.
• BBI DEEP PURPLE: Led by Aqualia and supported by thirteen partners from six countries,
the project implements on a demonstration scale a new bio-refinery model, which integrates
purple phototrophic bacteria (PPB) in anaerobic carrousel-type systems. These bacteria
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 Aqualia prototype is operating at the Toledo-Estiviel WWTP, and a demonstration reac-
tor 10 times larger is being built at the Linares WWTP. Parallel activities are prepared also at
the SmVaK WWTP in the Czech Republic and another demonstration site is planned.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 33 of 42
_ 439
• BBI B-FERST: With Fertiberia as leader, and with ten partners from six different countries,
Aqualia is involved in the development of new biofertilisers from urban wastewater and
by-products from agri-food industries. The potential of raw materials recovered from munici-
pal waste and effluents in the production of fertilisers in three countries (Spain, Italy and Czech
Republic) is analysed. A struvite precipitation system has also been built at the Jerez WWTP to
incorporate the phosphorus recovered in a new Fertiberia bio-based fertiliser demonstration
plant in Huelva.
• LIFE INTEXT: The project to optimise low-cost wastewater treatment technologies in small
towns is led by Aqualia, with the AIMEN and CENTA technology centres and the University of
Aarhus in Denmark supporting SMEs in Germany, Greece and France. The aim is to minimise
energy costs, carbon footprint and waste from wastewater treatment by providing ecologically
and economically sustainable solutions for urban areas with less than 5,000 inhabitants. The
demonstration platform of 16 technologies was started up at the Talavera WWTP, operated by
Aqualia, which will allow a tailor-made offer to isolated urbanisations.
• LIFE ULISES: Three technology centres, CENTA, EnergyLab and CieSol of the University
of Almeria, support Aqualia as coordinator to transform conventional WWTPs into "energy
production factories", achieving energy self-sufficiency and eliminating their carbon footprint.
Anaerobic pretreatment with the PUSH reactor, which has also been successfully assessed
in two WWTPs in Portugal, has been implemented at the El Bobar WWTP in Almeria, operat-
ed by Aqualia. To improve the energy balance, digestion with hydrolysis is intensified to use
bio-methane as a vehicle fuel with an ABAD BioEnergy refining system and a dispenser.
• LIFE INFUSION: After completing the Life Methamorphosis project at Ecoparc 2, the Barce-
lona Metropolitan Area (AMB) extended the operation of the pilots to prepare the designs for
several new plants to recover resources from municipal solid waste. Together with the EureCat
technology centre and the operator of Ecoparc2, EBESA, the leachate digestion system is
optimised with Aqualia, AnMBR and ELAN technologies, with the addition of an ammonium
stripping system from the Belgian SME Detricon. Two waste management entities, Cogersa in
Asturias and AMIU in the region of Genoa/Italy are also participating to assess the options for
implementing the solutions in their plants.
• LIFE PHOENIX: The Aqualia-led project, supported by the technology centres CETIM and
CIESOL, optimises tertiary risk management to achieve the most ambitious objectives of the
new European regulation on water reuse (EU 2020/741). In order to assess various effluents,
from ADP in Portugal, the Almeria Provincial Council and the Guadalquivir River Basin Feder-
ation, several mobile plants are being built, one for physical-chemical treatment of 50 m3/h,
another for advanced filtration of 30 m3/h, to be combined with various ultra- and nanofiltra-
tion membrane refining skids.
In addition, Newland's European subsidiary Entech is participating with O3 ozone and UV ul-
traviolet modules, which enable advanced oxidation and disinfection. A sensor from the Dutch
SME MicroLan for on-line microbiological measurements is also being tested.
• LIFE ZERO WASTE WATER: In a partnership with Canal Isabel II, the Aqualia-led project
is installing a combined treatment unit at the Valdebebas WWTP for Urban Waste Water
(UWWW) and the Organic Fraction of Solid Urban Waste (FORSU). It will feed an anaerobic
reactor AnMBR of 50 m3/d, which will be followed by the ELAN in-line water process, allow-
ing for a carbon neutral treatment footprint. The assessment will assess the management of
FORSU at the municipal level, using the sewerage system to transport the mixture in a single
stream.
In addition to the Universities of Valencia (co-holder of the AnMBR patent) and Santiago
(co-holder of the ELAN patent) the Portuguese SME Simbiente is participating to develop an
advanced management system, combined with on-line monitoring of microbiological quality
by the Austrian SME VWS (Vienna Water Systems).
• H2020 SEA4VALUE: The EureCat technology centre coordinates fourteen partners from sev-
en countries to recover resources from brine concentrated in seawater desalination plants
(SWDP). With 100% EU funding, at least eight innovative technological solutions are still being
developed at a basic scientific level. The aim is to enrich the most valuable components of
seawater (lithium, caesium and rubidium) and to recover critical raw materials (magnesium,
boron, scandium, gallium, vanadium, indium, molybdenum and cobalt) to a purity that allows
them to be exploited on the market.
The technical and economic impact analysis foresees the implementation of pilot units in the
various SWDPs operated by Aqualia, to reinforce Aqualia's Desalination Innovation Centre in
Denia and to develop a new platform in Tenerife, adding the development of solutions for the
valorisation of brine to the new desalination methods. Work is being done on the solar concen-
tration of brine, selective precipitation of magnesium, obtaining chlorine dioxide, and optimising
the remineralisation of permeate with micronised calcite, reducing CO2 consumption, turbidity
and the size of the installation.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 34 of 42
_ 440
• H2020 ULTIMATE: In the Smart Water Economy call, Aqualia participates in two of the five
selected consortia, which receive up to €15 million of EU support per project. In Ultimate, the
Dutch technology centre KWR coordinates 27 partners implementing nine demonstrations of
synergies between water utilities and industries.
At the Mahou WWTP in Lérida, operated by Aqualia, a fluidised anaerobic reactor (FBBR /
Elsar) is being installed on an industrial scale, which will later be compared to an AnMBR to
recover biomethane and feed a fuel cell. Yeast co-digestion is also being studied, together
with support for another project partner, Aitasa in Tarragona, where Aqualia is building a new
industrial effluent treatment plant.
• H2020 REWAISE: Of the five projects funded under the EU's Smart Water Economy pro-
gramme, Aqualia leads the project with the largest business participation, as the twenty-four
entities in the consortium include water companies from the UK (Severn Trent), Sweden
(Vasyd) and Poland (AquaNet). Together with 7 SMEs and several universities in Croatia, Italy,
Poland, Czech Republic, Sweden, and UK, new circular economy and digital management
solutions are implemented in "living labs" including Aqualia's operations in Badajoz, Canary
Islands, Denia or Vigo.
Rewaise reinforces Aqualia's strategic lines of technological development, with sustainable
desalination and new membranes, the recovery of materials from brine, the reuse of waste-
water and its transformation into energy and by-products, and the simulation of the operation
and control of processes and networks to optimise service efficiency and water quality.
• H2020 NICE: The project, led by the technology centre CETIM with 14 partners from 9 coun-
tries, focuses on natural solutions for the purification and recovery of resources from waste-
water, such as wetlands or green swamps. These options for sustainable cities will be imple-
mented in a dozen sites, including Aqualia's facilities in Vigo, Talavera and Algeciras. The pilots
integrate developments from SMEs and universities in Denmark, France, Italy and Sweden,
and include actions with partners in Colombia and Egypt.
• LIFE RESEAU: The RESEAU project aims to increase the resilience of existing sanitation
water infrastructure to the impact of climate change. The project led by Aqualia is participated
by ITG (Fundación Instituto Tecnológico de Galicia) and VCS (VandCenterSyd AS) in Odense
(Denmark). Sensors (for speeds, flow rates, etc.) will be installed in the sewerage network in
Moaña (Pontevedra) to monitor and model its behaviour.
A 500 m3 aerobic granular reactor will also be built at the Moaña WWTP to treat up to 2,000
m3/d of wastewater. Compared to conventional activated sludge technology, this advanced
biofilm system increases the biological treatment capabilities several times over, improving the
WWTP's ability to react to flow variation and limiting the space requirements for its implemen-
tation. The environmental impact of the risk management process is also significantly reduced
by reducing energy needs and avoiding greenhouse gas emissions.
A new European patent and one American patent was secured in 2021, as a PCT extension of
European patents for the year 2020. Three trademarks and a utility model were also registered.
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 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 interna-
tionalised market.
The three types of projects developed by FCC Construcción and its investee companies are:
internal projects, projects with other companies in the 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.
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 an-
ti-bird strike tubular screen for High Speed Rail lines, in which the Administrator of Railway Infra-
structures (Adif) participates. Contact has also been made with several town councils in Catalonia
for the implementation of the pilot of a cycle lane of the "BICISENDAS" project.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 35 of 42
_ 441
The projects highlighted in 2021 are listed below:
• ZERO IMPACT: the project Development and demonstration of an anti-bird strike tubular
screen for High Speed Rail lines, co-financed by the European Commission's "Life" pro-
gramme, was conceived to design measures for protecting birdlife with anti-collision screens
on High Speed Rail lines
• ROBIM: funded by the CIEN programme, financed by CDTI (Centro para el Desarrollo Tec-
nológico Industrial), and whose objective is an autonomous robotics for inspection and as-
sessment of existing buildings with BIM integration with the development of an automated,
active and multidisciplinary technology for inspection, assessment and diagnosis of the com-
position and status of conservation and energy efficiency of the building envelopes of the
built heritage, which facilitates obtaining accurate and sufficiently detailed information on the
construction systems and pathologies and also a comprehensive analysis of the building.
• REFORM2: This project, presented to the Catalan Waste Agency, aims to recover the
by-product (0/6 porphyry, a by-product originating from the generation of ballast and gravel)
of quarry extraction by incorporating it into thermosetting and thermoplastic matrices for dif-
ferent applications.
• BICISENDAS: Within the CDTI's CIEN 2018 programme, the aim of which is to develop a
Sustainable, Energy Self-Sufficient, Intelligent, Cleaner, Integrated and Safe cycle lane.
• PIELSEN: As part of the Challenges-Collaboration programme, it aims to create an immersive
3D Homeostatic Architecture to create adaptive intelligent sensitive skin on Building Façades.
• SAFE: This project aims to develop an autonomous system for anchoring of maritime struc-
tures. This smart system makes it possible to reduce dependence on human resources, min-
imise risk, maximise efficiency and increase the safety of field manoeuvres.
• STARPORTS: From CDTI's INNTERCONECTA (Canary Islands) programme, it will develop a
Distributed Wireless System for 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 develop 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: Approved by CDTI, it aims to research and develop sustainable road elements for
speed reduction. There are three main research objectives: power generation, security signal-
ling and connectivity with the environment.
• SAFETY4D: CDTI-approved project for developing an advanced and high performance pro-
cess for occupational risk prevention in construction with implementation of the BIM method-
ology.
• ONLYBIM: Project of the regional programme of IDEPA of the Principality of Asturias whose
objective is the development of a module for the design and execution of Non-Linear Works
under BIM methodology.
• GAUDI: Approved in the call for collaborative projects of CDTI and which consists of the de-
velopment of a Knowledge Management platform based on Artificial Intelligence algorithms
and Content Curation techniques.
• ACUSCOIN/ECO: Developed by MATINSA and approved by CDTI, the aim of which is to
research an acoustic emission system for assessing corrosion in reinforced concrete infra-
structures.
• DESIRE: Developed by FCC Industrial and approved by CDTI, its objective is to develop a
prototype of a basic RPAS simulator that, with the use of the software developed and the
prototype of mixed reality glasses and the tracking system, complements the information
presented to the RPAS pilot and the camera operator.
• CYBERSEC: Developed by FCC Industrial and approved by CDTI of the CIEN programme,
this project entails research into various technologies, techniques, tools, methodologies and
knowledge aimed at developing technological solutions for securing against cyber-attacks in
highly critical connected environments, such as Industry 4.0, Smart Cities or critical infrastruc-
tures.
• SAIM: Project developed by MATINSA and approved by CDTI, aiming to develop a new tech-
nological solution to aid environmental management of coastal areas that allows the ecologi-
cal characterisation of the environment automatically and in real time using information from a
new sensorised data collection system, a new satellite information processing algorithm and
a new computational simulation model.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 36 of 42
_ 442
Research, Development and Innovation (R&DI) is expressly contemplated in the Sustainability
Management System under procedure PR/FCC-730. The company holds an RD&I Manage-
ment System Certificate: RD&I Management System requirements based on Spanish-har-
monised standard UNE 166002:2014, certified by AENOR, the Spanish Standardisation and
Certification Association. The RD&I management system was certified for the companies
MATINSA and FCC Industrial in 2021.
9. Other relevant information.
share and other information
9.1. Stock Market performance
Cement
In 2021, the Cementos Portland Valderrivas Group continued as a leading partner in BIORE-
CO2VER, a European R&D project that has been extended this year to cover the accumulated
delays resulting from the COVID-19 pandemic.
This project aims to obtain alternative processes for the commercial-scale production of certain
chemical products (such as isobutene or lactic acid) in a more sustainable way by capturing
industrial CO2 emissions. The ultimate goal is to use this industrial CO2 as a raw material and to
stop relying on fossil resources for the production of these products.
Technology partners LTU and Enobraq conducted several tests in 2021 on emissions that Ce-
mentos Portland Valderrivas provided the research consortium. These tests have produced con-
clusive results and it has not been necessary to organise further "in situ" emission gas captures.
The conclusions of the project will be presented during the first quarter of 2022.
Closing price (€)
Change in the period
High (€)
Low (€)
Average daily trading (no. of shares)
Average daily trading (million euros)
Capital at end of period (million euros)
Jan. – Dec. 2021
En. – Dec. 2020
11.08
31.9%
11.40
8.74
69,303
0.7
4,711
8.40*
-16.3%
11.56*
6.77*
74,593
0.7
3,600
No. of shares circulating at closure
425,173,636
409,106,618
* 2021 Data adjusted for scrip dividend.
9.2. Dividends
The Company's Board of Directors, at its meeting held on 29 June 2021, agreed to implement
the agreement on the distribution of the scrip dividend adopted at FCC's General Shareholders'
Meeting on 29 June 2021, in item 6 of the Agenda, in compliance with the terms and conditions
agreed at the General Shareholders' Meeting. The holders of 98.18% of the free allocation rights
opted to receive new shares, in recognition for their confidence in management and their capac-
ity to execute the Group's value creation potential. Therefore, the paid-up capital increase was
16,067,018 shares; the total number of shares of the new capital stock was 425,173,636.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 37 of 42
_ 443
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)
Amortisation of fixed assets and allocation of grants for non-financial and
other assets
Impairment and gains/(losses) on disposal of fixed and non-current
assets
Other gains/(losses)
EBITDA
EBIT
Dec 2021
Dec 2020
802.2
443.9
-123.5
4.0
572.7
477.3
-6.9
4.4
1,126.6
1,047.5
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 client 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 vol-
ume estimates that serve as the basis for our contracts with clients 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 client.
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 30 to the consolidated financial statements.
The Group uses the backlog as an additional accounting measure in certain areas of our busi-
nesses. 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 38 of 42
_ 444
Audit Report on Consolidated Financial Statements
issued by an Independent Auditor
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. AND
SUBSIDIARIES
Consolidated Financial Statements and
Consolidated Management Report
for the year ended
December 31, 2021
Ernst & Young, S.L.
Calle de Raimundo Fernández Villaverde, 65
28003 Madrid
Tel: 902 365 456
Fax: 915 727 238
ey.com
AUDIT REPORT ON CONSOLIDATED FINANCIAL STATEMENTS ISSUED BY AN INDEPENDENT
AUDITOR
Translation of a report and financial statements originally issued in Spanish. In the event of discrepancy, the
Spanish-language version prevails
To the shareholders of FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A.:
Audit report on the consolidated financial statements
Opinion
We have audited the consolidated financial statements of FOMENTO DE CONSTRUCCIONES Y
CONTRATAS, S.A. (the parent) and its subsidiaries (the Group), which comprise the consolidated
balance sheet at December 31, 2021, the consolidated income statement, the consolidated
statement of recognised income and expense, the total statement of changes in the consolidated
equity, the statement of consolidated cash flow, and the notes thereto, for the year then ended.
In our opinion, the accompanying consolidated financial statements give a true and fair view, in all
material respects, of consolidated equity and the consolidated financial position of the Group at
December 31, 2021 and of its financial performance and its consolidated cash flows, for the year
then ended in accordance with International Financial Reporting Standards, as adopted by the
European Union (IFRS-EU), and other provisions in the regulatory framework applicable in Spain.
Basis for opinion
We conducted our audit in accordance with prevailing audit regulations in Spain. Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
We are independent of the Group in accordance with the ethical requirements, including those related
to independence, that are relevant to our audit of the consolidated financial statements in Spain as
required by prevailing audit regulations. In this regard, we have not provided non-audit services nor
have any situations or circumstances arisen that might have compromised our mandatory
independence in a manner prohibited by the aforementioned requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Domicilio Social: C/ Raimundo Fernández Villaverde, 65. 28003 Madrid - Inscrita en el Registro Mercantil de Madrid, tomo 9.364 general, 8.130 de la sección 3ª del Libro de Sociedades, folio 68, hoja nº 87.690-1,
inscripción 1ª. Madrid 9 de Marzo de 1.989. A member firm of Ernst & Young Global Limited.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 39 of 42
_ 445
2
3
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our audit opinion thereon, and we do not provide a separate opinion on these matters.
Measurement of goodwill of Corporación Uniland
Description As explained in note 7 to the accompanying consolidated financial statements,
"Goodwill" in the consolidated balance sheet as at 31 December 2021 included the
goodwill arising from the Corporación Uniland cash-generating unit (CGU) in the
Cement business, with a net carrying amount 225,881 thousand euros.
Group management tests goodwill for impairment at least at the end of each
reporting period and recognises and impairment at the lower of recoverable amount,
estimated on the basis of the present value of the expected future cash flows from
the CGU to which it is allocated, and carrying amount.
The determination of recoverable amount requires Group management to make
complex estimates using judgements to make the assumptions underlying those
estimates.
Given the significance of the amount involved and the inherent complexity of the
estimation process in determining the recoverable amount of goodwill, we
determined this to be a key audit matter.
Disclosures on the measurement standards applied and key assumptions for
determining the impairment of goodwill are provided in notes 3.b and 7.b to the
consolidated financial statements.
Our
response
In relation to this matter, our audit procedures included:
Understanding the process designed by Group management to determine the
recoverable amount of goodwill and assessing the design and implementation of
the relevant controls in place in that process.
Reviewing the model used by Group management to determine recoverable
amount with the involvement of our valuation specialists and paying particular
attention to the model's mathematical coherence and the reasonableness of the
cash flow projections, discount rates and long-term growth rates. In conducting
our review, we interviewed the persons in charge of preparing the model and
used reliable external sources and other available information to cross-check
the data used.
Reviewing, retrospectively, the estimates made in previous periods to identify
potential biases in the assumptions used by Group management.
Reviewing the sensitivity analyses performed by Group management of the
estimates made in determining recoverable amount to changes in the key
assumptions made.
► Reviewing the disclosures made in the notes to the consolidated financial
statements in conformity with the applicable regulatory financial reporting
framework.
Recoverability of the deferred tax assets of the Spain Tax Group
Description As explained in note 24 to the accompanying consolidated financial statements, at 31
December 2021 the Group recognised deferred tax assets on the consolidated
balance sheet for the Spain Tax Group amounting to 564,797 thousand euros.
According to the accounting policy described in note 3.q to the accompanying
consolidated financial statements, the Group recognises deferred tax assets except in
cases where there are reasonable doubts about their future recovery.
The assessment made to determine the recoverable amount of these assets requires
Group management to make complex judgements regarding the estimates of the
future taxable profit of the companies comprising the Spain Tax Group based on
financial projections and business plans considering applicable tax laws and
accounting standards.
Given the complexity inherent in management's projections of business performance
to estimate future taxable profits of the companies comprising the Spain Tax Group
and the significance of the amounts involved, we determined this to be a key audit
matter.
Our
response
In relation to this matter, our audit procedures included:
Understanding the process designed by Group management to assess the
recoverability of deferred tax assets and assessing the design and
implementation of the relevant controls in place in that process.
Assessing the reasonableness of the key assumptions used by Group
management to estimate the period for recovering deferred tax assets, focusing
on the economic, financial and tax assumptions used to estimate the future
taxable profits of the Spain Tax Group based on budgets, business performance
and historical experience.
Assessing, with the involvement of our tax specialists, the key assumptions
made by Group management regarding applicable tax laws.
Assessing the sensitivity of the results to reasonably possible changes in those
assumptions.
► Reviewing the disclosures made in the notes to the consolidated financial
statements in conformity with the applicable regulatory financial reporting
framework.
Recognition of revenue from long-term contracts in the Construction business area
Description As explained in note 3 to the accompanying consolidated financial statements,
performance obligations in the construction activity are satisfied over time, so
revenue is recognised using the percentage of completion method.
The recognition of revenue from long-term construction contracts requires Group
management to make significant estimates regarding, e.g. total contract costs to be
incurred, estimated contract revenue and, where appropriate, the amount of contract
modifications and claims relating to, e.g. the total costs to be incurred, the estimate
of expected revenue and, where appropriate, the amount of contract modifications
that will finally be accepted by the customer.
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 40 of 42
_ 446
4
5
Given the significance of the amounts involved since this affects a large portion of
total "Revenue" and the measurement of completed work pending certification
recognised under "Trade and other receivables", which amounted to 342,375
thousand euros at 31 December 2021, and the complexity required to make these
estimates, which requires Group management to make judgements in determining the
assumptions used, which means changes in those assumptions could give rise to
material differences in the amount of revenue recognised, we determined this to be a
key audit matter.
Information on the applicable measurement standards and the disclosures for
revenue are provided in notes 3.s and 27 to the accompanying consolidated financial
statements.
Our
response
In relation to this matter, our audit procedures included:
Understanding the process designed by Group management to recognise
revenue, assessing the design and implementation of the relevant controls in
place in that process, and verifying the operating effectiveness of those
controls for the main components of the Group that have this type of contract.
Selecting a sample of projects from the Group's main components with this type
of contract, for which we obtained the related contracts to read and understand
the most important clauses and their implications, and, e.g. budgets, internal
assessments of revenue recognition, certifications, follow-up presentations on
the execution of projects and amounts received.
Assessing for these contracts the reasonableness of Group management's
assumptions through meetings with technical staff and project managers, and
analysing the reasons for deviations between originally planned and actual costs
and their impact on estimated project margins.
Assessing the reasonableness of estimates of completed work pending
certification recognised as revenue at year-end, checking the status of
negotiations of the main customer contracts, and reviewing the reasonableness
of documents supporting the probability of recovery.
Assessing the reasonableness of Group management's approach for recognising
and measuring contract modifications and claims submitted, covering especially
the estimate of amounts expected to be recovered and the probability of
success.
Reviewing the disclosures made in the notes to the consolidated financial
statements in conformity with the applicable regulatory financial reporting
framework.
Group management determines the fair value of investment properties on a half-
yearly basis by reference to appraisals performed by independent experts to reflect
current market conditions at year-end. It also determines whether an item of
inventory is impaired by engaging independent experts to estimate the fair value of
the main assets included in inventories.
Given the significance of the amounts involved and the complexity of the process
used to identify indications of impairment and measure investment properties and
inventories to determine recoverable amount for the purpose of assessing potential
impairment, which requires Group management and independent experts to make
significant estimates in applying judgements to determine the assumptions used (in
particular, assumptions underlying estimated rents, discount rates and exit yields
used for investment properties and, development, construction and marketing costs
for inventories, and the periods used to estimate future cash flows from investment
properties), we determined this to be a key audit matter.
Information on the measurement standards for investment properties and inventories
is provided in note 3.j to the consolidated financial statements. Information on the
approaches and main assumptions used in the valuations and sensitivity analyses is
provided in notes 9 and 15 to the consolidated financial statements.
Our
response
In relation to this matter, our audit procedures included:
► Understanding the process designed by Group management to determine
whether there are indications of impairment and to determine the recoverable
amount of items of "Investment properties" and "Inventories", and assessing
the design and implementation of the relevant controls in place in that process.
► Reviewing the appraisal models used by independent experts to determine
recoverable amounts, with the involvement of our valuation specialists,
covering especially, for a sample of the appraisals performed, the model's
mathematical coherence, and assessing the reasonableness of the rents used
and/or the peers used, the discount rates and exit yields for investment
properties, and the development, construction and marketing costs and periods
used to estimate the future cash flows associated with land held in inventories,
and analysing the sensitivity analyses performed by independent experts,
including the performance of valuation testing procedures, where necessary.
► Reviewing, for a sample of appraisals by independent experts, whether the
rents used in the valuations take into account lease contracts in force.
► Reviewing the disclosures made in the notes to the consolidated financial
statements in conformity with the applicable regulatory financial reporting
framework.
Measurement of Investment properties and Inventories
Other matters
Description At 31 December 2021, the Group recognised an amount of 2,069,187 thousand
euros in the consolidated balance sheet under "Investment properties" related mainly
to office buildings and shopping centres held to earn rentals or for capital
appreciation, and 804,423 thousand euros under "Inventory" relating to land,
developments in progress and other properties held for sale or inclusion in a real
estate development.
On February 25, 2021, other auditors issued their audit report on the 2020 consolidated financial
statements, in which they expressed an unqualified opinion.
Other information: consolidated management report
Other information refers exclusively to the 2021 consolidated management report, the preparation
of which is the responsibility of the parent company’s directors and is not an integral part of the
consolidated financial statements.
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 41 of 42
_ 447
6
7
Our audit opinion on the consolidated financial statements does not cover the consolidated
management report. Our responsibility for the consolidated management report, in conformity with
prevailing audit regulations in Spain, entails:
a.
b.
Checking only that the consolidated non-financial statement and certain information included
in the Corporate Governance Report and in the Board Remuneration Report, to which the
Audit Law refers, was provided as stipulated by applicable regulations and, if not, disclose
this fact.
Assessing and reporting on the consistency of the remaining information included in the
consolidated management report with the consolidated financial statements, based on the
knowledge of the Group obtained during the audit, in addition to evaluating and reporting on
whether the content and presentation of this part of the consolidated management report are
in conformity with applicable regulations. If, based on the work we have performed, we
conclude that there are material misstatements, we are required to disclose this fact.
Based on the work performed, as described above, we have verified that the information referred to
in paragraph a) above is provided as stipulated by applicable regulations and that the remaining
information contained in the consolidated management report is consistent with that provided in the
2021 consolidated financial statements and its content and presentation are in conformity with
applicable regulations.
Responsibilities of the parent company´s directors and the audit and control committee for the
consolidated financial statements
The directors of the parent company are responsible for the preparation of the accompanying
consolidated financial statements so that they give a true and fair view of the equity, financial
position and results of the Group, in accordance with IFRS-EU, and other provisions in the regulatory
framework applicable to the Group in Spain, and for such internal control as they determine is
necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors of the parent company are
responsible for assessing the Group’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 Group or to cease operations, or has no realistic alternative
but to do so.
The audit and control committee is responsible for overseeing the Group’s financial reporting
process.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated 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 prevailing audit regulations 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 consolidated financial statements.
As part of an audit in accordance with prevailing audit regulations in Spain, we exercise professional
judgement and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated 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 Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of the directors’ use 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 Group’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
consolidated 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 Group to cease to
continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance of
the group audit. We remain solely responsible for our audit opinion.
We communicate with the audit and control committee of the parent company 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.
We also provide the audit and control committee of the parent company with a statement that we
have complied with relevant ethical requirements, including those related to independence, and to
communicate with them all matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with the audit and control committee, we determine those matters
that were of most significance in the audit of the consolidated 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.
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Consolidated Group | Management report | Page 42 of 42
_ 448
8
Report on other legal and regulatory requirements
European single electronic format
We have examined the digital files of the European single electronic format (ESEF) of Fomento de
Construcción y Contratas, S.A. and subsidiaries for the 2021 financial year, which include the XHTML
file containing the consolidated financial statements for the year, and the XBRL files as labeled by the
entity, which will form part of the annual financial report.
The directors of Fomento de Construcción y Contratas, S.A. are responsible for submitting the annual
financial report for the 2021 financial year, in accordance with the formatting and mark-up
requirements set out in Delegated Regulation EU 2019/815 of 17 December 2018 of the European
Commission (hereinafter referred to as the ESEF Regulation). In this regard, the Corporate
Governance Report and the Board remuneration report have been incorporated by reference in the
consolidated management report.
Our responsibility consists of examining the digital files prepared by the directors of the parent
company, in accordance with prevailing audit regulations in Spain. These standards require that we
plan and perform our audit procedures to obtain reasonable assurance about whether the contents of
the consolidated financial statements included in the aforementioned digital files correspond in their
entirety to those of the consolidated financial statements that we have audited, and whether the
consolidated financial statements and the aforementioned files have been formatted and marked up,
in all material respects, in accordance with the ESEF Regulation.
In our opinion, the digital files examined correspond in their entirety to the audited consolidated
financial statements, which are presented and have been marked up, in all material respects, in
accordance with the ESEF Regulation.
Additional report to the audit and control committee
The opinion expressed in this audit report is consistent with the additional report we issued to the
audit and control committee on February 23, 2022.
Term of engagement
The ordinary general shareholders’ meeting held on June 2, 2021 appointed us as auditors for 3
years, commencing on February 23, 2022.
ERNST & YOUNG, S.L.
(Registered in the Official Register of
Auditors under No. S0530)
(Signature on the original in Spanish)
_______________________________
Fernando González Cuervo
(Registered in the Official Register of
Auditors under No. 21268)
February 24, 2022
A member firm of Ernst & Young Global Limited
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements
_ 449
A 1
Fomento de
Construcciones
y Contratas, S.A.
Balance sheet at closure of the 2021 _ 450
Income statements corresponding
to the business _ 452
Statement of changes in net equity
for business _ 453
Cash flow statement for the business _ 455
Notes to the financial statements at
2021 year-end _ 257
Management Report _ 502
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Balance sheet at closure of the 2021 business year | Page 1 of 2
_ 450
Balance sheet at closure of the 2021 business year
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 december 2021 (in thousands of euros)
Notes 1 to 21 and the attached annexes I to III form an integral part of the financial statements and, together with these, make up the annual accounts for 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5ASSETS31/12/2021 31/12/2020 NON-CURRENT ASSETS 3,583,670 3,430,846Intangible assets (Note 5) 7,705 7,198Property, plant and equipment (Note 6) 27,962 30,249Land and buildings11,765 11,811 Other intangible assets16,197 18,438 Long-term investments in Group companies and (Notes 9.a and 18.b) 3,474,792 3,315,779Equity instruments3,080,151 2,936,096 Loans to companies394,641 379,683 Long-term financial investments (Note 8.a) 22,943 22,950Deferred tax assets (Note 15) 50,268 54,670CURRENT ASSETS 446,774 257,961Trade receivables and other accounts receivable 170,428 98,783Trade receivables for sales and services808 2,126 Customer receivables, Group companies and associates (Note 18.b)23,631 17,419 Receivables from the public administrations (Note 15.a)145,224 78,620 Other receivables765 618 Short-term investments in Group companies and associates (Notes 9.b and 18.b) 208,413 149,785IShort-term financial investments (Note 8.b) 6,173 1,166Cash and other cash equivalents 61,760 8,227TOTAL ASSETS 4,030,444 3,688,807 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Balance sheet at closure of the 2021 business year | Page 2 of 2
_ 451
Balance sheet at closure of the 2021 business year
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 december 2021 (in thousands of euros)
Notes 1 to 21 and the attached annexes I to III form an integral part of the financial statements and, together with these, make up the annual accounts for 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5EQUITY AND LIABILITIES31/12/2021 31/12/2020 EQUITY (Note 10) 2,340,256 2,084,142Shareholders’ equity 2,340,256 2,084,142 Capital 425,174 409,107 Share premium 1,673,477 1,673,477 Reserves 2,386,556 2,161,520 Shares and equity interests (26,674) (18,012) Prior years' losses (2,392,774) (2,392,774) Profit for the year 274,497 250,824 NON-CURRENT LIABILITIES 944,876 985,512Long-term provisions (Note 11) 137,997 137,849Non-current payables (Note 12) 29 40,799Bank borrowings– 20,000 Other financial liabilities29 20,799 Long-term payables to Group companies and associates (Note 9.c) 806,479 806,479Deferred tax liabilities (Note 15) 371 385CURRENT LIABILITIES 745,312 619,153Short-term provisions 1,698 1,623Current payables (Note 12) 230,563 464,343Debt instruments and other marketable securities30,000 302,300 Bank borrowings200,076 155,228 Other financial liabilities487 6,815 Short-term payables to Group companies and associates (Notes 9.d and 18.b) 488,048 127,631Trade and other payables 25,003 25,556Suppliers1,659 4,713 Suppliers, Group companies and associates (Note 18.b)3,115 2,736 Other payables to public administrations (Note 15.b)1,059 720 Other payables 19,170 17,387 TOTAL EQUITY AND LIABILITIES 4,030,444 3,688,807 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Income statements corresponding to the business
_ 452
Income statements corresponding to the business
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 december 2021 (in thousands of euros)
Notes 1 to 21 and the attached annexes I to III form an integral part of the financial statements and, together with these, make up the annual accounts for 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 31/12/202131/12/2020 CONTINUING OPERATIONS Revenue (Note 17)130,605 336,576 Trade receivables for sales and services59,697 74,465 Income from interests in Group companies and associates (Note 18.a)57,535 254,353 Financial income from marketable securities and other financial instruments in Group companies and associates (Notes 17 and 18.a)13,373 7,758 Other operating income33,710 37,969 Staff expenses (Note 17)(23,032) (33,902) Other operating expenses (Note 17)(51,020) (64,745) Fixed and non-current asset amortisation and allocation of grants (Notes 5 and 6)(5,651) (8,629) Provision surpluses (Note 11)1,596 25,989 OPERATING PROFIT86,208 293,258 Financial income (Note 17)182 226 Interests in equity instruments in third parties34 29 From marketable securities and other financial instruments of third parties148 197 Financial expenses(35,367) (34,641) Payables to Group companies and associates (Note 18.a)(33,144) (29,319) On payables to third parties(2,223) (4,819) Interest cost relating to provisions−(503) Change in fair value of financial instruments (Note 17)5,440 −Exchange differences1,946 (4,640) Impairment losses and gains/(losses) on disposal of financial instruments (Note 9)186,548 4,600 FINANCIAL PROFIT/(LOSS)158,749 (34,455) PROFIT BEFORE TAX244,957 258,803 INCOME TAX (Note 15)29,540 (7,979) PROFIT FOR THE BUSINESS YEAR FROM CONTINUING OPERATIONS274,497 250,824 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Statement of changes in net equity for business | Page 1 of 2
_ 453
Statement of changes in net equity for business
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 december 2021 (in thousands of euros)
Notes 1 to 21 and the attached annexes I to III form an integral part of the financial statements and, together with these, make up the annual accounts for 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5A) Statement of recognised income and expense 31/12/2021 31/12/2020Profit per income statement274,497 250,824 Income and expenses recognised directly in equity−−Write-offs to income statement−−TOTAL RECOGNISED INCOME AND EXPENSE274,497 250,824 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Statement of changes in net equity for business | Page 2 of 2
_ 454
Statement of changes in net equity for business
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 december 2021 (in thousands of euros)
B) Statement of changes in equity
Capital stock
(Note 10.a)
Share premium
(Note 10.b)
Reserves
(Note 10.c)
Own shares
(Note 10.d)
Prior years’ losses
Profit for the year
Equity
Equity at 31 December 2019
392,265
1,673,477
1,949,424
(16,068)
(2,392,774)
241,453
1,847,777
Total recognised income and expense
Transactions with partners or owners
Capital increases (Notes 3 and 10)
Distribution of dividends (Note 10)
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
250,824
(14,459)
(79)
(12,436)
(1,944)
(241,453)
Equity at 31 December 2020
409,107
1,673,477
2,161,520
(18,012)
(2,392,774)
250,824
2,084,142
Total recognised income and expense
Transactions with partners or owners
Capital increases (Notes 3 and 10)
Distribution of dividends (Note 10)
Transactions with shares or equity interests (net)
Other changes in net equity (Note 3)
16,067
16,067
(25,788)
(16,157)
(9,631)
250,824
(8,662)
(8,662)
274,497
274,497
(18,383)
(90)
(9,631)
(8,662)
(250,824)
Equity at 31 December 2021
425,174
1,673,477
2,386,556
(26,674)
(2,392,774)
274,497
2,340,256
Notes 1 to 21 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 2021 business year. In particular, note 10 “Net equity”
contains further details on this statement.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Cash flow statement for the business | Page 1 of 2
_ 455
Cash flow statement for the business
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 december 2021 (in thousands of euros)
Notes 1 to 21 and the attached annexes I to III form an integral part of the financial statements which, together make up the annual accounts for 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 31/12/202131/12/2020Profit for the year before tax 244,957 258,803 Adjustments to profit/(loss) (225,745) (240,202) Depreciation and amortisation (Notes 5 and 6)5,651 8,629 Impairment loss allowances (Note 9)(182,255) (4,140) Changes in provisions (Note 11)(1,549) (23,806) Gains from cancellations and disposal of financial instruments (Note 9)(4,484) – Financial income (Note 17)(71,090) (262,337) Financial expenses35,368 34,642 Exchange differences(1,946) 4,640 Change in fair value of financial instruments(5,440) – Other income and expenses – 2,170 Changes in working capital (7,062) 3,693 Trade and other receivables(5,176) 2,136 Trade and other payables(1,736) (365) Miscellaneous current assets and liabilities(150) 1,922 Other cash flows from operating activities 49,446 205,860 Interest paid(35,178) (33,834) Interest and dividend collections59,028 230,470 Corporation tax refunded/(paid) (Note 15.h)25,596 33,031 Other collections and payments – (23,807) TOTAL CASH FLOWS FROM OPERATING ACTIVITIES 61,596 228,154 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Cash flow statement for the business | Page 2 of 2
_ 456
Cash flow statement for the business
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 december 2021 (in thousands of euros)
Notes 1 to 21 and the attached annexes I to III form an integral part of the financial statements which, together make up the annual accounts for 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 31/12/202131/12/2020Payments due to investments (260,364) (221,003) Group companies and associates (Note 9)(256,086) (214,749) Intangible fixed and non-current asset, property, plant and equipment and other assets (Notes 5 and 6)(4,278) (6,254) Proceeds from disposals 230,154 5,514 Group companies and associates (Note 9)223,698 4,519 Intangible fixed and non-current asset, property, plant and equipment and other assets (Notes 5, 6 and 17)6,456 995 TOTAL CASH FLOWS FROM INVESTING ACTIVITIES (30,210) (215,489) Proceeds and (payments) from equity instruments (Note 10) (8,754) (2,023) Proceeds from (payments on) financial liabilities (Note 12) 40,169 573 Issuance of: Debt instruments and other marketable securities398,000 780,100 Bank borrowings330,877 173,321 Payables to Group companies and associates337,095 49,728 Repayment and amortisation of: Debt instruments and other marketable securities(670,300) (777,800) Bank borrowings(331,672) (85,173) Payables to Group companies and associates(22,141) (134,956) Other payables(1,690) (4,647) Dividend payments (Note 10) (9,631) (12,436) TOTAL CASH FLOWS FROM FINANCING ACTIVITIES 21,784 (13,886) Effect of changes in exchange rates 363 (1,015) NET INCREASE/(DECREASE) IN CASH OR CASH EQUIVALENTS 53,533 (2,236) Cash and cash equivalents at the start of the period 8,227 10,463 Cash and cash equivalents at the end of the period 61,760 8,227 _ 457
Notes to the financial statements at 2021 year-end
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 december 2021 (in thousands of euros)
1. Company activity
2. Basis of presentation of the financial statements
3. Distribution of profit
4. Recognition and measurement standards
5.
Intangible assets
6. Property, plant and equipment
7.
Leases
8. Current and non-current financial assets
9.
Investments and payables to Group companies and associates
10. Equity
11. Long-term provisions
12. Non-current and current payables
13. Trade payables
458
458
460
460
466
467
468
469
470
474
477
479
479
14. Information on the nature and level of risk of financial instruments
15. Deferred taxes and tax matters
16. Third party guarantees and other contingent liabilities
17. Revenue and expenses
18. Transactions and balances with related parties
19. Environmental information
20. Other information
21. Events after the reporting period
Annex I: Group companies
Annex II: Temporary joint ventures
Annex III: Associates and jointly controlled companies
480
484
487
489
490
494
494
495
496
499
500
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 1 of 45Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 2 of 45
_ 458
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 urban sanitation, industrial waste treatment,
green area conservation, including both the construction and operation of treatment plants
and the energy recovery of 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, motor-
ways, roads, tunnels, bridges, hydraulic works, ports, airports, urban developments, housing,
non-residential building, lighting, industrial climate control installations, environmental restora-
tion, etc.
– Real estate. Dedicated to the promotion of housing and the rental of offices and commercial
premises.
– 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 includes concession agreements related to the operation of motor-
ways, tunnels and other similar infrastructures.
Its registered office is at C/Balmes 36, Barcelona.
2. Basis of presentation
of the financial statements
The financial statements have been drawn up from the accounting records of Fomento de Con-
strucciones y Contratas, S.A. and the temporary joint ventures in which it participates, so they
present fairly the equity, the financial position, the results of the Company and the cash flows for
the year.
The regulatory framework applicable to the Company is established in:
– The Spanish Commercial Code and other commercial legislation.
– General Accounting Plan and its sector adaptations.
– The mandatory rules approved by the Spanish Institute of Accounting and Auditing in order to
implement the General Accounting Plan and its supplementary rules.
– All other applicable Spanish accounting legislation.
In particular, it should be noted that as a result of the publication in 2009 by the ICAC of a consulta-
tion relating to the accounting recognition of income from holding companies, “Income from invest-
ments in Group companies and associates” and “Finance income from marketable securities and
other financial instruments of Group companies and associates” are recognised under “Revenue”
in the accompanying income statement.
Additionally, on 30 January 2021, Royal Decree 1/2021, of 12 January, was published, amending
the General Accounting Plan approved by Royal Decree 1514/2007, of 16 November. The changes
to the General Accounting Plan are applicable to financial years beginning on or after 1 January
2021 and are mainly focused on the criteria for the recognition, measurement and breakdown of
income and financial instruments. The changes that have occurred have not significantly affected
these financial statements and have only involved a change in the name of the financial asset and
liability categories (Notes 8 and 12).
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 ap-
proved without any modification. The 2020 financial statements were approved by the shareholders
at the Annual General Meeting held on 29 June 2021.
The financial statements are expressed in thousands of euros.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 3 of 45
_ 459
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 valu-
ation methods, together with the reconciliations and reclassifications required and the appropriate
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 sharehold-
ing in the joint ventures shown below:
Revenue
Operating profit
Non-current assets
Current assets
Non-current liabilities
Current liabilities
2021
57
161
30
294
6
151
2020
53
11
28
2,939
2
2,946
The joint ventures and percentage holdings are listed in Appendix 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 2021, the Company had negative working capital of 298,538 thousand euros,
mainly as a result of the following debts: (i) with its subsidiaries for 488,048 thousand euros and
(ii) relating to bank financing (loans, credit facilities and promissory notes) for 230,000 thousand
euros (Note 12). Despite this, the directors of Fomento de Construcciones y Contratas, S.A. pre-
pare these accounts under the going concern principle as there are no doubts about the capacity
of the Group of companies, of which the Company is the head, to continue generating resources
in its operations (consolidated operating iDecember ncome of 802,210 thousand euros and a
cash position of 1,535,525 thousand euros, as well as the ability to finance itself when requiring
working capital, by having a promissory note issuance programme (ECP) for a maximum amount
of 600,000 thousand euros, of which only 30,000 thousand euros have been drawn down (Note
12.a), and also the security of the renewal of both the loans already granted by 200,000 thousand
euros, as in the renewal of the bank credit lines granted for an amount of 200,000 thousand eu-
ros, which at 31 December had been drawn down in full (Note 12.b). 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
Reporting Standards (IFRS-EU), as set forth in Regulation (EC) No. 1606/2002 of the European
Parliament and of the Council of 19 July 2002 and all enacting provisions and interpretations.
These 2021 consolidated financial statements of the FCC Group, which have been prepared by
its directors, will likewise be submitted for approval at the General Shareholders’ Meeting. For
its part, the consolidated financial statements for 2020, prepared on 25 February 2021, were
approved by the General Shareholders’ Meeting held on 29 June 2021 and deposited in the
Mercantile Registry of Barcelona.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 4 of 45
_ 460
The main figures of the consolidated financial statements of Fomento de Construcciones y Con-
tratas, S.A., prepared in accordance with International Financial Reporting Standards (IFRS) are
as follows:
Total assets
Equity attributable to the Parent
Revenue
Profit attributable to the Parent
Restatements
2021
2020
14,242,158
12,834,602
3,007,094
6,659,283
580,135
2,288,313
6,158,023
262,179
No restatements were made in the current financial statements.
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 3,213 thousand euros, allocat-
ing the remaining profit for 2021 of 271,284 thousand euros to retained earnings; accordingly, it
was not proposed to distribute or apply this profit to any other account.
In the 2020 business year, the Company made a profit of 250,824 thousand euros, broken down
as follows: 3,368 thousand euros to the legal reserve and 247,456 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
25,788 thousand euros (note 10).
4. Recognition and measurement standards
The main recognition and measurement bases used by the company in the preparation of the
2021 financial statements, in accordance with the Spanish General Chart of Accounts, were as
follows:
a) Intangible assets
a.1) Concession arrangements
Concession arrangements are recognised pursuant to Order EHA/3362/2010, approving the
rules 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 5 of 45
_ 461
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 capac-
ity 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.
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:
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
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.
d) Leases
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 6 of 45
_ 462
d.1) Finance leases
In 2020, Fomento de Construcciones y Contratas, S.A. had finance lease agreements for clean-
ing and waste collection contracts in the USA. With regard to these contracts that could not be
transferred in the spinoff carried out in 2019, a negotiation process was initiated with the vari-
ous awarding administrations to change the ownership of the contracts to the various American
100%-owned subsidiary companies of the FCC Group. At 2020 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 con-
tracts were signed between the Company and the aforementioned subsidiaries so that the latter
bear the actual payment for the assets, which is why, in the accompanying balance sheet, in the
2020 year, the debt with the company that owns the assets under financial lease, accompanied
by a credit with the corresponding American subsidiary to which the real assets were subleased
by leasing subject to the contract, which are recognised in the balance sheet of the subsidiary
company, which is the one that obtains the benefits and assumes the risks derived from its use. In
the business year. In the 2021 business year, the ownership of the financial lease debt has already
been transferred to the US subsidiaries, hence at year-end, there is no balance in the balance
sheet for the aforementioned items.
d.2) Operating leases
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.
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.
e) Financial instruments
e.1) Financial assets. Classification
The financial assets held by the Company are classified in the following categories:
– Financial assets at amortised cost. In general, they are included in this category:
• Credits for commercial operations: those financial assets that originate in the sale of goods
and the provision of services from the Company’s ordinary business with deferred pay-
ment.
• Credits for non-commercial operations: those financial assets that, not being equity in-
struments or derivatives, have no commercial origin and whose collections are of a deter-
mined or determinable amount, which come from loan or credit operations granted by the
Company.
Financial assets classified in this category are initially measured at their fair value which, unless
there is evidence to the contrary, is assumed to be the transaction price, which is equivalent
to the fair value of the consideration given, plus the transaction costs that are directly attrib-
utable.
However, loans for commercial operations maturing in no more than one year and that do not
have an explicit contractual interest rate, as well as loans to personnel, dividends receivable
and disbursements required on equity instruments, the amount of which is expected to be
received in the short term, are measured at their nominal value when the effect of not updating
the cash flows is not significant.
For subsequent measurement, the amortised cost method is used. Accrued interest is re-
corded in the income statement (financial income), applying the effective interest rate method.
– Financial assets at fair value through changes in equity: investments in equity instruments
are included, provided that they are not held for trading or should be valued at cost.
Financial assets classified in this category are initially measured at their fair value which, unless
there is evidence to the contrary, is assumed to be the transaction price, which is equivalent
to the fair value of the consideration given, plus the transaction costs that are directly attrib-
utable.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 7 of 45
_ 463
The subsequent measurement is at fair value, without deducting the transaction costs that
could be incurred in its sale. The changes that occur in the fair value are recorded directly in
equity, until the financial asset is removed from the balance sheet or is impaired, at which time
the amount thus recognised is charged to the income statement.
– Financial assets at cost: include investments in Group companies, associates and jointly
controlled entities. Group companies are considered to be those over which the Company
has control, while associates are those in which the Company exercises a significant influ-
ence. Jointly controlled entities include companies over which joint control is exercised with
one or more partners through an agreement.
The investments included in this category are initially measured at cost, which is equal to the
fair value of the consideration given plus the transaction costs that are directly attributable to
them.
The subsequent measurement is also at cost less the accumulated amount of the valuation
corrections for impairment. These adjustments are calculated as the difference between their
book value and the recoverable amount, understood as the greater of their fair value minus
selling costs and the present value of the future cash flows resulting from the investment. Un-
less better evidence of the recoverable amount is available, the estimated loss for impairment
is calculated based on the investee’s equity, consolidated where appropriate, corrected for
any unrealised gains at the measurement date, including any goodwill.
At least at the end of each reporting period, the company books the related impairment loss al-
lowances 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.
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.
e.2) Financial liabilities
All financial liabilities held by the Company are classified in the category of financial liabilities at
amortised cost.
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.
Financial liabilities classified in this category are initially measured at their fair value which, unless
there is evidence to the contrary, is assumed to be the transaction price, which is equivalent to
the fair value of the consideration given, adjusted by the transaction costs that are directly attrib-
utable.
Accounts payable are initially measured at the fair value of the consideration received. These
financial liabilities are subsequently measured at amortised cost.
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 8 of 45
_ 464
f) Foreign currency transactions
h) 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.
At each reporting date, monetary assets and liabilities denominated in foreign currencies are
translated to euros at the closing exchange rate. Profits or losses are directly recorded in the
income statement in the business year in which occur.
g) 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 corporation tax purpos-
es, together with the differences between the carrying amounts of assets and liabilities recognised 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 expected 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.
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
occurs. Revenue is measured at the fair value of the consideration received, less discounts and
tax.
Interest received on financial assets is recognised using the effective interest method, while div-
idends 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
recorded as income in the income statement.
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.
i) 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 9 of 45
_ 465
j) Capital assets of an environmental nature
l) Use of estimates
Environmental assets are assets that are used on a lasting basis in the Company’s activities, the
main purpose of which is to minimise environmental impact and to protect and improve the envi-
ronment, including the reduction or elimination of future pollution.
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:
The Company, due to its nature and activity, (Note 1) does not have a significant environmental
impact.
k) 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, retire-
ment 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:
– Unilateral decision of the company.
– Dissolution or disappearance of the Parent company for any reason, including mergers or
disposals.
– Death or permanent disability.
– Other causes of physical or legal incapacitation.
– Substantial modification of professional conditions.
– The recoverability of deferred tax assets (notes 4.g and 15).
– The recoverability of investments in Group companies and associates, and loans and receiv-
ables 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.i and 11).
Although these estimates were drawn up on the basis of the best information available at 31
December 2021, future events may require adjustments in coming years, where appropriate to
be made in advance.
m) Related party transactions
The Company carries out all transactions with related parties at arm’s length.
Note 18 “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.
n) Cash flow statement
– Termination after reaching the age of 60, at the request of the officer and in agreement with
The following terms are used in the statement of cash flows with the meanings specified:
the company.
– Cash flows: cash entries and withdrawals and their equivalents.
– Termination after reaching the age of 65 at the officer’s sole discretion.
Contributions made by the company are recognised under “Staff expenses” in the income state-
ment.
– 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 10 of 45
_ 466
– 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.
The balance for “Software applications” relates mainly to implementation, development and im-
provement costs for the corporate information system, and costs related to information technol-
ogy infrastructure.
The detail of intangible assets and of the related accumulated amortisation at 31 December 2021
and 2020 is as follows:
5.
Intangible assets
Changes in this heading in the accompanying balance sheet in 2021 and 2020 were as follows:
Concession
agreements
Balance at 31.12.19
24,166
—
Other
intangible
assets
Accumulated
amortisation
Total
2,349
(41,863)
34,452
(168)
(2,920)
(1,213)
Software
49,800
1,875
Receipts or
endowments
Release, removals and
transfers
Balance at 31.12.20
Receipts or
endowments
Release, removals and
transfers
Balance at 31.12.21
(24,113)
(160)
(2,170)
402
(26,041)
53
—
—
53
51,515
1,777
11
(44,381)
1,122
(2,392)
7,198
507
—
(7)
7
—
53,292
1,126
(46,766)
7,705
In the 2020 business year, the decrease in the heading “Concession agreements” stands out,
which almost entirely corresponds to the transfer, with the prior consent of the transferring body,
to the subsidiary FCC Environmental Services Texas LLC of the assets related to the collection ac-
tivity of waste in Houston (USA). UU), which was subrogated in the rights and obligations thereof.
Subsequently, Fomento de Construcciones y Contratas, S.A. and the aforementioned company
agreed to purchase and sell the remaining assets linked to the contract (Note 6). This transaction
did not generate any capital gains in the income statement.
2021
Concession agreements
Software
Other intangible fixed and non-current assets
2020
Concession agreements
Software
Other intangible fixed and non-current assets
Cost
Accumulated
amortisation
Net
53
53,292
1,126
54,471
53
51,515
11
51,579
(24)
(46,739)
(3)
(46,766)
(26)
(44,344)
(11)
(44,381)
29
6,553
1,123
7,705
27
7,171
—
7,198
With regard to net intangible assets, only 30 thousand euros (28 thousand euros at 31 December
2020) relate to assets arising from arrangements operated jointly through joint ventures.
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 40,773
thousand euros (39,431 thousand euros at 31 December 2020). The amount corresponding to
joint ventures was insignificant.
At 31 December 2021, the company did not own any significant intangible assets pledged as
security or purchase commitments of a significant amount.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 11 of 45
_ 467
6. Property, plant and equipment
Changes in this heading in the accompanying balance sheet in 2021 and 2020 were as follows:
Balance at 31.12.19
Receipts or endowments
Release, removals and transfers
Transfers
Balance at 31.12.20
Receipts or endowments
Release, removals and transfers
Transfers
Balance at 31.12.21
Land and
buildings
Plant and other items of
property, plant and equipment
Advances and PP&E under
construction
Accumulated
amortisation
Impairment
Total
Other intangible assets
17,904
206
(267)
—
17,843
—
—
—
17,843
120,494
12,652
(100,815)
2,070
34,401
639
(6)
60
35,094
—
2,203
—
(2,070)
133
326
—
(60)
399
(30,435)
(5,733)
19,128
—
(17,040)
(3,252)
6
—
(5,088)
—
—
—
(5,088)
—
—
—
102,875
9,328
(81,954)
—
30,249
(2,287)
—
—
(20,286)
(5,088)
27,962
In the process of segregating the environmental activity in favour of the subsidiary FCC Medio
Ambiente, S.A. carried out in 2019, there were a series of cleaning and waste collection contracts
in the United States of America 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 12 of 45
_ 468
The detail of property, plant and equipment and of the related accumulated depreciation at 31
December 2021 and 2020 is as follows:
2021
Land and buildings
Plant and other items of property,
plant and equipment
Advances and PP&E under
construction
2020
Land and buildings
Plant and other items of property,
plant and equipment
Advances and PP&E under
construction
Cost
Accumulated
amortisation
Impairment
Net
17,843
35,094
(990)
(19,296)
399
—
(5,088)
—
—
11,765
15,798
399
53,336
(20,286)
(5,088)
27,962
17,843
34,401
(944)
(16,096)
133
—
(5,088)
—
—
11,811
18,305
133
52,377
(17,040)
(5,088)
30,249
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:
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 3,446 thousand euros (2,677 thousand euros at 31 December 2020).
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.
7. Leases
a) Finance leases
As explained in Note 4.d.1, the company has transferred the finance leases signed with compa-
nies engaged in this activity, which could not be transferred to the aforementioned subsidiaries,
to US subsidiaries 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. In the
2021 business year, the ownership of the financial lease debt had already been transferred to
the US subsidiaries, hence at year-end, there is no balance in the balance sheet for these items.
b) Operating lease
Land
Buildings
2021
10,500
1,265
11,765
2020
10,500
1,311
11,811
The amount recognised in the 2021 business year for operating lease expenses totalled 10,743
thousand euros (11,068 thousand euros at 31 December 2020).
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:
At the end of the 2021 and 2020 business years there are no significant assets from contracts
operated jointly through joint ventures.
In the 2021 and 2020 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.
– Office building in Las Tablas, Madrid.
On 19 November 2010, the owner and the Company signed a lease agreement on this build-
ing, 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 13 of 45
_ 469
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.
8. Current and non-current
financial assets
– 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. .
a) Long-term financial investments
The balance of “Non-current financial assets” at 2021 and 2020 year-end is as follows:
2021
Financial assets at amortised cost
Financial assets at fair value through
changes in equity
2020
Equity
instruments
Loans to
third parties
Other
financial
assets
Total
22,837
106
1,488
—
21,349
—
1,488
21,349
22,943
1,488
—
21,351
—
22,839
111
1,488
21,351
22,950
—
106
106
—
111
111
At year-end, there were non-cancellable future payment commitments amounting to 138,639
thousand euros (142,049 thousand euros in 2020). Details, by maturity, of the non-cancellable
future minimum payments at 31 December 2021 and 2020 were as follows:
Financial assets at amortised cost
Financial assets at fair value through
changes in equity
Up to one year
Between one and five years
After five years
2021
10,786
41,570
86,283
2020
10,413
40,494
91,142
138,639
142,049
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 op-
erating income.
Financial assets at amortised cost
The detail by maturity of this category of financial assets is as follows:
2023
—
2024
—
2025
—
2026
—
2027 and
beyond
22,837
Total
22,837
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 14 of 45
_ 470
The most significant amount recognised was for the 17,555 thousand euros deposit, in relation to
the sale of Global Vía Infraestructuras, S.A., formalised in the 2016 business year, the maturity of
which was “2027 and beyond” in view of its indeterminate nature, since it was tied to the release
of the collateral provided by the aforementioned company to third parties to meet financial com-
mitments. This heading also includes guarantees and deposits for legal or contractual obligations
in the development of the company’s activities.
Financial assets at fair value through changes in equity
Virtually all of this corresponds to a 17.80% holding in the company Port Torredembarra S.A. for
a value of 106 thousand euros (110 thousand euros at 31 December 2020).
b) Short-term financial investments
All financial assets included in this heading were encompassed in the category of financial assets
at amortised cost. The balance of the accounts under this heading includes the amount receiva-
ble pending for the sale of the investee company FM Green Power, SL for 5,000 thousand euros
and which is detailed in Note 9.a to these Financial Statements. The rest corresponds to guaran-
tees and deposits for legal or contractual obligations.
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
2021 and 2020 is as follows:
Accumulated
impairment
Cost
Total
Total
2021
Equity instruments in Group companies
4,059,952
(984,427)
3,075,525
Equity instruments of associates
4,744
(118)
4,626
Loans to Group companies
Loans to associates
2020
432,203
(37,586)
394,617
24
—
24
4,496,923
(1,022,131)
3,474,792
Equity instruments in Group companies
4,129,025
(1,214,136)
2,914,889
Equity instruments of associates
Loans to Group companies
Loans to associates
261,834
416,868
24
(240,627)
(37,209)
—
21,207
379,659
24
4,807,751
(1,491,972)
3,315,779
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 15 of 45
_ 471
Details of changes in these epigraphs is as follows:
Balance at 31.12.19
Receipts or endowments
Disposals and reversals
Transfers
Balance at 31.12.20
Receipts or endowments
Disposals and reversals
Transfers
Balance at 31.12.21
Equity instruments
of Group companies
Equity instruments
of associates
Loans to Group
companies
Loans to associates
Impairment
Total
3,715,699
135,126
—
278,200
4,129,025
2,667
(71,740)
—
4,059,952
519,851
20,183
—
(278,200)
261,834
—
(257,090)
—
4,744
320,411
96,457
—
—
416,868
13,383
(15,508)
17,460
432,203
27
—
(3)
—
24
—
—
—
24
(1,496,974)
(66,631)
71,633
—
3,059,014
185,135
71,630
—
(1,491,972)
3,315,779
(88,205)
558,046
—
(72,155)
213,708
17,460
(1,022,131)
3,474,792
Equity instruments in Group companies
The following significant changes occurred in the 2020 business year:
The following significant changes occurred in the 2021 business year:
– Purchase from Per Gestora, S.L.U., 100% owned, of:
– Acquisition of stakes in Cementos Portland Valderrivas, S.A. from third parties for an amount
• 56.16% of Asesoría Financiera y de Gestión, S.A. for 11,002 thousand euros, thereby
of 2,632 thousand euros.
reaching a 100% holding.
– Retirement due to liquidation of the 100%-owned company Per Gestora, S.L.U. with a net
value of the investment of 91 thousand euros (gross value of 71,553 thousand euros with an
accumulated impairment of 71,462 thousand euros)
– Derecognition due to liquidation of the 100%-owned company Bvefdomintaena Beteili-
gungsverwaltung GmbH with a portfolio value of 185 thousand euros totally impaired. In addi-
tion, the liquidation has also involved the cancellation of a current loan to the aforementioned
company for 11,562 thousand euros, also fully impaired.
– Decrease in the stake in the investee company FCyC, S.L. from 100% to 80.03%, without any
impact on portfolio value. I n October, the aforementioned company carried out a non-mon-
etary capital increase, fully subscribed by Soinmob, a subsidiary of Control Empresarial de
Capitales, S.A. de C.V. Consequently, Soinmob became the owner of 19.97% of the share
capital of FCyC, S.L.
• 7.33% of Fedemes, S.L. for 1,018 thousand euros, which also represents a 100% hold-
ing.
– Subscription of the capital increase of FCyC, S.L.U. by means of a non-monetary contribution
consisting of a 36.98% holding in the capital stock of the associated company Realia Busi-
ness, S.A., valued in the balance sheet at 278,200 thousand euros.
– Contribution to strengthen the equity of FCyC, S.L. and FCC Construcción, S.A. of 98,914
thousand euros and 24,024 thousand euros, respectively.
The details, by company, of the “Investments in Group companies and associates” headings for
2021 and 2020 are presented 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 16 of 45
_ 472
Equity instruments of associates
In 2021, the most significant movement is the sale of 49% of the company FM Green Power,
Investments, S.L. and its group of companies to Plenium Partners, S.L. The aforementioned
stake had a net value of 16,463 thousand euros at 31 December 2020 (gross value of 257,090
thousand euros with accumulated impairment of 240,627 thousand euros). Fomento de Con-
strucciones y Contratas, S.L. has received a total of 93,000 thousand euros and a current asset
(Note 8.b) for 5,000 thousand euros for the amount pending collection at 31 December 2021.
The divestment was structured into several processes: (i) settlement of the dividend pending
collection at 31 December 2020 for 26,410 thousand euros, (ii) distribution of dividends against
reserves and profit for the year of 26,075 thousand euros (iii) sale of the FM stake Green Power
Investments, S.L. for a total of 45,515 thousand euros. The impact on the 2021 income statement
is reflected in two headings: 26,075 thousand euros included under the heading “Income from
holdings in Group companies and associates” and 29,052 thousand euros under the heading
“Impairment and gains on disposal of equity instruments”.
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:
• 2.22% owned by Asesoría Financiera y de Gestión, S.L.U. for 17,024 thousand euros.
• 0.36% owned by Per Gestora, S.L.U. for 2,776 thousand euros.
– Derecognition of the entire backlog of Realia Business, S.A., representing 36.98% of its cap-
ital stock, contributed to the capital increase of the 100% owned subsidiary company FCyC,
S.L.U., as mentioned in the previous point.
– Purchase of 50% of Sigenera SL from Per Gestora, S.L.U. for 377 thousand euros.
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 Concesiones de Infraestructuras, S.L.U.
FCC Environmental Services Florida, LLC
Rest
GROSS TOTAL
Impairment:
FCC Versia, S.A.U.
NET TOTAL
2021
359,687
45,000
27,481
—
35
432,203
(37,586)
394,617
2020
352,619
45,000
—
19,107
142
416,868
(37,209)
379,659
The following are noteworthy with regard to the balance at 31 December 2021:
– Subordinated loans granted to FCC Servicios Medio Ambiente Holding, S.A.U. for a total of
345,203 thousand euros, whose final maturity is 2034, without partial repayments and at a
fixed interest rate of 2.5% per year that 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. At year-end, the final balance, including capitalised interest, was
359,687 thousand euros. The interest accrued in the current year amounts to 8,860 thousand
euros (6,898 thousand euros at 31 December 2020).
– Participative loan of 45,000 thousand euros to FCC Versia, S.A.U. The initial maturity, 31
January 2018, could be tacitly extended for successive additional two-year periods, provided
that neither of the parties stated 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 2023. It is therefore clas-
sified 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 thousand euros had accrued (the same as at 31 December 2020). This
loan suffered impairment of 37,586 thousand euros at 31 December 2021 (37,209 thousand
euros at 31 December 2020).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 17 of 45
_ 473
– Loan granted to FCC Concesiones de Infraestructuras, S.A.U. for an amount of 20,568 thou-
sand pounds sterling (24,478 thousand euros at the closing exchange rate), to help a sub-
sidiary within the framework of the concession for the construction, financing, operation and
maintenance of the A-465 road in Wales (UK). The concession has two phases: (i) Construc-
tion from 29 October 2020 to 30 November 2025 and (ii) Operation from 31 October 2025 to
30 September 2025. The repayment of the aforementioned loan will begin at the beginning
of the second phase provided there is a cash surplus and all accrued interest has been paid
and, in any case, at the end of the operation phase. The aforementioned loan accrues interest
(3.419% and 12% in the first and second phases, respectively). Interest accrued is not capi-
talised and will be paid once the second phase begins. At 31 December 2021, the aforemen-
tioned interest amounted to 3,003 thousand euros, of which 2,938 thousand euros had been
generated in the current year. In 2020, the loan was included in current assets.
Impairment
The following significant changes have taken place:
–
Impairment of the stake in Cementos Portland Valderrivas, S.A. for an amount of 85,174
thousand euros, basically due to the fall in equity due to the impairment of Uniland’s goodwill.
In 2020, 67,833 thousand euros were reversed, basically due to the profit for the year.
– Reversal of the impairment of the investment in FCC Construcción, S.A. for an amount of
245,687 thousand euros due, among others, to the results generated by the sale of the Ce-
dinsa Group. In 2020, 3,798 thousand euros were reversed.
– Reversal of the accumulated impairment of Per Gestora, S.L.U. for an amount of 71,462 thou-
sand euros, due to the liquidation of the company (see section on Equity instruments of Group
companies in this same note). In 2020, 64,960 thousand euros were allocated, motivated by
the distribution of voluntary reserves at the Company.
– Reversal of the impairment of FM Green Power Investments, S.L., in the amount of 240,626
thousand euros, due to the sale of the aforementioned company (see section on Equity instru-
ments of associates in this same note). In 2020, 612 thousand euros were provided.
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:
Realia Business, S.A.
FCyC, S.L.
FCC Servicios Medio Ambiente Holding S.A.U.
Fedemes, S.L.U.
Cementos Portland Valderrivas, S.A.
FCC Concesiones e Infraestructuras, S.L.U.
FM Green Power Investments, S.L.
Rest
2021
120,000
32,258
21,592
21,054
11,980
684
—
845
2020
—
23,113
43,236
13,724
11,533
22,824
26,411
8,944
208,413
149,785
In the 2021 business year, the granting of a loan to the Realia Business, S.A. Group company for
an amount of 120,000 thousand euros, with annual maturity and an interest rate tied to Euribor
plus a spread.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 18 of 45
_ 474
c) Non-current payables to Group companies and associates
The balance at 31 December 2021 corresponds in its entirety to the loan that FCC Aqualia, S.A.
has granted to the Company, in accordance with the following conditions:
– Loan amount: 806,479 thousand euros
– Maturity: 28 September 2048.
The most significant movement in 2021 was the increase in the debt with the investee Asesoría
Financiera y de Gestión, S.A. for 287,769 thousand euros. In 2015, cash pooling contracts were
signed between the aforementioned company and FCC Group companies, including the Parent
Fomento de Construcciones y Contratas, S.A., whereby financial movements are channelled
through said subsidiary. The increase in the debt with the aforementioned subsidiary has served
to partially cancel the Company’s external financing.
–
–
Interest periods: annual periods, except the final period which will end on 28 September 2048.
Interest rate: 3.55%.
10. Equity
– 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 16 continued to be granted.
The aforementioned loan has accrued interest of 29,027 thousand euros (29,107 thousand euros
at 31 December 2020).
d) Current payables to Group companies and associateso
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:
Asesoría Financiera y de Gestión, S.A.U.
FCC Construcción, S.A.
Fedemes, S.L.U.
FCyC, S.L.
Cementos Portland Valderrivas, S.A.
Rest
2021
305,519
87,110
43,861
23,017
10,518
18,023
2020
17,750
39,172
34,674
15,815
4,354
15,866
488,048
127,631
The Ordinary General Shareholders’ Meeting held on 29 June 2021 resolved to distribute a scrip
dividend by issuing new ordinary shares with a par value of 1 euro each, without a share premi-
um, of the same class and series as the shares already in circulation, with a charge to reserves.
This resolution also included an offer by the company to acquire the free allocation rights at a
guaranteed price.
At its meeting on 29 June 2021, 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: 163,642,647.20 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 25. Sharehold-
ers who chose this option also received a compensatory cash dividend of 0.416 euros for
each new bonus share received
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 19 of 45
_ 475
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:
– At the end of the trading period for the free allocation rights, on 20 July 2021, holders of
401,675,483 (98.18%) rights had chosen to receive new shares, while shareholders holding
7,431,135 rights had opted to accept the Company’s offer to acquire their rights at the guar-
anteed price. Accordingly, the final number of 1 euro bonus shares issued was 16,067,018
shares, corresponding to 3.93% 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
9,631 thousand euros.
– On 28 July 2021, 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, at the Ordinary General Shareholders’ Meeting held on 2 June 2020, a decision was
taken to distribute a scrip dividend, with the following characteristics:
Capital stock increase
Share capital
Capital stock increase
Costs, net of tax
Acquisition rights at guaranteed price
Compensatory dividend
Voluntary reserves
– Maximum value of the scrip dividend: 156,905,930.40 euros, equivalent to 0.40 euros per
Change in equity
share.
2021
16,067
16,067
(16,067)
(90)
(2,972)
(6,659)
(25,788)
(9,721)
2020
16,842
16,842
(16,842)
(79)
(1,961)
(10,475)
(29,357)
(12,515)
– 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 23. Sharehold-
ers 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 guar-
anteed price. Accordingly, the final number of bonus shares with a par value of 1 euro issued
was 16,841,792 shares, corresponding to 4.29% of capital stock prior to the increase, result-
ing in a cash outflow for the compensatory dividend, as well as for the rights acquired by the
Company of 12,436 thousand euros.
a) Capital
The capital of Fomento de Construcciones y Contratas, S,A. comprises 425,173,636 ordinary
shares represented through book entries with a par 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 represent-
ing 7% of its capital stock to Finver Inversiones 2020, S.L.U.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 20 of 45
_ 476
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. (absorbing
company of Inversora Carso, S.A. de C.V.), controlled by the Slim family, holds 69.66% directly
and indirectly, at the date of preparation of these financial statements. 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 4.54% of
the capital. Esther Koplowitz Romero de Juseu also holds 138,599 direct shares in Fomento de
Construcciones y Contratas, S.A.
b) Share premium
The Spanish Limited Liability Companies Law, as amended, expressly permits the use of the
share premium account balance to increase capital and does not establish any specific restric-
tions as to its use for other purposes.
c) Reserves
Balance at 31 December 2019
Sales
Acquisitions
Balance at 31 December 2020
Sales
Acquisitions
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.
d) Own shares
Movements in the “Own shares” heading in the 2021 and 2020 business years were as follows:
The detail of this heading in 2021 and 2020 is as follows:
Balance at 31 December 2021
Legal reserve
Other reserves
2021
81,821
2,304,735
2,386,556
2020
78,453
2,083,067
2,161,520
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.
Details of own shares at 31 December 2021 and 2020 were as follows:
2021
2020
Number of shares
2,410,758
Amount
(26,674)
Number of shares
1,544,773
Amount
(18,012)
At 31 December 2021, the company’s shares represented 0.57% of the capital stock (0.38% at
31 December 2020).
(16,068)
—
(1,944)
(18,012)
—
(8,662)
(26,674)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 21 of 45
_ 477
11. Long-term provisions
The changes in the business year were as follows:
Litigation
Liabilities and
contingencies
Contractual
and legal
guarantees
and
obligations
Rest
Total
Balance at 31.12.19
96,018
Provisions
503
62,325
52,164
Applications/reversals
(96,521)
(1,963)
Balance at 31.12.20
Provisions
Applications/reversals
Balance at 31.12.21
—
—
—
—
Provisions for litigation
112,526
2,934
(5,325)
19,155
5,242
182,740
—
—
19,155
2,561
—
1,072
53,739
(146)
(98,630)
6,168
137,849
109
(131)
5,604
(5,456)
110,135
21,716
6,146
137,997
These provisions cover the company’s risks as the defendant in certain disputes relating to liabil-
ities arising from its activities.
The amount reflected at 31 December 2019 corresponded in its entirety to the challenge proce-
dure for the sale of Alpine Energie, which was completed in May 2020. The following paragraphs
discuss the situation in greater detail with the process of bankruptcy of the Alpine subgroup, a
legal subsidiary of FCC Construcción, S.A., which did not cause significant changes with respect
to that reported in the 2020 Financial Statements.
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.
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 com-
pany. On 25 June 2013, the liquidation of the company was commenced. 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.
Eight years after the bankruptcy of both companies and having definitively filed the criminal pro-
ceedings, won proceedings brought by bondholders and settled a retroactive action, two pro-
ceedings brought by the insolvency administrators against Fomento de Construcciones y Con-
tratas, S.A. and FCC Construccion S.A. are still pending, in addition to other proceedings against
auditors, former directors, and intermediary banks in the acquisition of bonds issued by AH in
2010, 2011 and 2012, admitted to trading on the Luxembourg and Vienna stock exchanges for
a joint nominal value of 290 million euros.
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 a selection of its operating sub-
sidiary companies to bid for and/or be awarded construction work. At 31 December 2021, the
amount provisioned for these items in the balance sheet of FCC Construcción, S.A. was 23,832
thousand euros.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 22 of 45
_ 478
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.
At 31 December 2021, two sets of commercial proceedings and one set of employment proceed-
ings 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. Having filed appeals and cassation appeals
for procedural infringement, in April 2020, the Austrian Supreme Court declared the need to
return the Orders to the Court of Instance so that the testimonial evidence could be practiced
in person before the Judge of First Instance. Such testimonial statements took place in June
2021 and, in light of the mandate contained in the Supreme Court Judgment, the judge has
yet to decide whether to consider the procedure closed or whether to agree to the practice of
the expert evidence requested by the bankruptcy trustee AH.
2. In April 2017, a Group company, Asesoría Financiera y de Gestión S.A. was notified of a suit
in which an AB bankruptcy administrator made a joint and several claim against the former
finance director of 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 loss to AB. Given the multiplicity of allegations made by the bankruptcy
administrator, the judge is weighing the request for a complementary expert report.
3. 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 claimant argues that this amount represents the damage to the bank-
ruptcy estate caused by the alleged delay in initiating insolvency proceedings. In the event
that the insolvency administrator’s claim succeeds, with a firm ruling on an indemnity duty, the
FCC Group’s subsidiary liability could arise in a remote case.
In terms of these disputes, the FCC Group and its legal advisors do not consider it very proba-
ble there will be any future outflows of cash prior to the issuance of these 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.
Provisions for guarantees and contractual and legal obligations
This heading includes the provisions to cover the expenses arising from contractual and legal ob-
ligations of a non-environmental nature. Practically all of the balance corresponds to the financial
commitments granted to the buyers of Global Via Infraestructuras, S.A., formalised in 2016 (Note
8.a).
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 23 of 45
_ 479
12. Non-current and current payables
The balance of “Non-current payables” and “Current payables” was as follows:
b) Current bank borrowings
At 31 December 2021, this heading mainly includes:
1. Loans for a total of 200,000 thousand euros, with annual maturity and interest rates tied to
2021
Debt instruments and other marketable securities
Bank borrowings
Other financial liabilities
2020
Debt instruments and other marketable securities
Bank borrowings
Finance lease payables (Notes 4.d.1 and 7.a)
Other financial liabilities
Long-term
Short-term
Euribor plus a market spread.
—
—
29
29
—
20,000
19,215
1,584
40,799
30,000
200,076
487
230,563
302,300
155,228
4,774
2,041
464,343
2. Financing facilities in the form of credit policies and bilateral loans, with a maximum limit of
200,000 thousand euros with different financial entities. At 31 December 2021, they were
fully available. They also have annual maturity and interest rates tied to Euribor plus a market
spread.
13. Trade payables
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:
All the financial liabilities reflected in the table above are classified within the category of financial
liabilities at amortised cost.
a) Bonds and other current marketable securitiess
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 2021, 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.
At 31 December 2021, the outstanding balance is 30,000 thousand euros (302,300 thousand
euros at 31 December 2020), maturing in 2 months.
Average payment period to suppliers
Ratio of paid operations/transactions
Ratio of operations/transactions pending payment
Total payments made
Total payments pending
2021
Days
57
56
65
Amount
56,206
7,016
2020
Days
56
55
64
Amount
59,408
6,453
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 24 of 45
_ 480
14. 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.
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:
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 2021, new funding
facilities were arranged in the form of credit facilities and bilateral loans (Note 12.b).
These operations have enabled completion of the debt reduction and financial reorganisation
process and the continuation of the policy of diversifying funding sources. These measures have
contributed to achieving a much more robust and efficient capital structure, with suitable volumes,
terms and financing costs adapted to the nature of the FCC Group’s 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 subsidiary companies.
a) Capital risk
b) Foreign currency 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.
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 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 25 of 45
_ 481
c) Interest rate risk
The following table shows the development of the net financial indebtedness shown in the ac-
companying balance sheet.
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 borrow-
ings and the issue of new debt.
Bank borrowings (note 12)
Debt instruments and other marketable securities (Note 12)
Financial payables to Group and associated companies (notes
9.c and 9.d)
Other interest-bearing financial debt (note 12)
2021
200,076
30,000
1,202,824
—
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.
Financial loans with Group and associated companies (note 9.b)
(192,392)
Other current financial assets (note 8.b)
Treasury and cash equivalents
(6,173)
(61,760)
2020
175,228
302,300
886,640
25,679
(120,759)
(1,166)
(8,227)
The table below summarises the effect on the Company’s income statement of increases in the
interest rate curve with regard to gross debt:
1,172,575
1,259,695
Impact on profit or loss
d) Solvency risk
+25 pb
1,491
+50 pb
2,982
+100 pb
5,964
The most suitable ratio for measuring solvency and debt repayment ability is Net debt/EBITDA.
e) Liquidity risk
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 the FCC Group to obtain financing depends on many factors, a lot
of which are beyond their control, such as general economic conditions, the availability of funds
at financial institutions, 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 develop the company’s activities.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 26 of 45
_ 482
Historically, the 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, the FCC Group cannot guarantee its ability to renew its financing on economically at-
tractive 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
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 more unfavourable on a case-by-case basis. The Group is also
present in several markets, which facilitates the obtainment of credit facilities and the mitigation
of liquidity risk.
g) 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
engagement 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 procedure
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.
f) Concentration risk
h) 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, prom-
issory 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.
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 27 of 45
_ 483
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 considered
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 to-
tal activity, the pandemic has led to the temporary interruption of part of the backlog of construc-
tion 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 adopted to adapt costs to the new levels of activity and, to date, practically
all activity has resumed, so no significant unprovisioned impairment is expected- For its part, the
Cements Area presents a similar evolution in relation to the COVID-19 risk, although it has been
affected by the increase in energy prices.
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.l), the
notes to these financial statements detail the effects in terms of impairments and provisions that
the COVID-19 crisis has caused on the financial information for the 2021 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.
i) Climate change risks
The performance of the activities carried out by the FCC Group may be impacted by adverse
weather conditions, such as floods or other natural disasters and in some cases, by the decrease
in temperature that may hinder, or even prevent in extreme cases, the performance of their activ-
ities, such as the case of intense frosts in the Construction business.
The Company and its group of companies take all the appropriate measures to adapt to the
effects of climate change and mitigate its possible effects on their activity and fixed assets, com-
mitting to the decarbonisation of the activities it carries out, for which it uses the most efficient
technologies in the fight against climate change and by the very nature of some of the activities it
carries out, it promotes the circular economy. In order to attain these objectives, specific policies
are implemented in the activities carried out:
– The Construction Area has an Integrated Policy to analyse environmental incidents, the in-
volvement of the interested parties and the establishment of a plan to reduce the significant
impacts of the activities of the works, emphasising the mitigation of the generation of waste,
the consumption of resources, the generation of noise and vibrations, promoting the use of
sustainable and reusable materials and the sustainable use of water. It has environmental cer-
tifications in several of the countries in which it operates, as well as environmental certification
according to ISO 14001 at the centres located in Spain at some of its main investees.
– The very nature of the Environmental Services Area aims to protect and conserve the envi-
ronment and contribute to the circular economy by treating waste as a resource, through its
reuse and energy recovery. Likewise, it uses technologies and equipment to optimise water
consumption, promoting a rational use and the use of water from alternative sources, such
as the use of rainwater. As for policies aimed at optimising energy consumption, Spain has
an Energy Management System certified in accordance with the ISO 50001 standard and
projects for the use of landfill gas to generate electricity and hot water.
–
In 2021, the Water Area was the first company in the sector to certify the Strategy for the
Contribution of the Sustainable Development Goals, by AENOR. Likewise, the Area has im-
plemented energy management policies to optimise energy consumption at its facilities. a
policy that is reflected in the calculation of the Company’s Carbon Footprint in its operations in
Spain, verified in accordance with the guidelines of the UNE-ISO 14064 Standard by AENOR,
in which the impact of energy management (Scope 2) can be observed in the 13% reduction
in emissions compared to the previous year. The Area has also implemented policies to re-
duce greenhouse gas emissions, through the signing of a PPA (Power Purchase Agreement)
contract for renewable energies (photovoltaic) and projects to install renewable energy (pho-
tovoltaic) at some of its facilities.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 28 of 45
_ 484
– The Cement Area takes measures that are specified at each facility, taking into account the
current context of each one, its technological, human and economic resources, the applicable
legislation and the expectations of the interested parties. The objectives of such measures
are to promote the circular economy and to reduce greenhouse gas emissions by increasing
material and energy recovery with a greater use of decarbonised raw materials, recoverable
waste and biomass fuels, increasing energy efficiency through the optimisation of the fuel mix
and the use of expert systems in the manufacturing process and transition to LED lighting and
increasing the mix of renewable energies through solar and/or wind energy facility projects
and boosting the consumption of biomass in clinker manufacturing.
As a result of the foregoing, these individual financial statements were prepared under the going
concern principle, since there are no doubts regarding the continuity of the Company and its
group of companies.
15. Deferred taxes and tax matters
a) Balances with public administrations and deferred taxes
The breakdown of the “Deferred tax assets” heading is as follows:
Capitalisation of tax loss carryforwards
Non-deductible provisions
Rest
2021
44,523
4,257
1,488
50,268
2020
48,749
4,432
1,489
54,670
The management of Fomento de Construcciones y Contratas, S.A., the parent of the Tax Group
18/89 (Note 15.g), 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
2021
2020
50,268
50,268
144,230
994
145,224
54,670
54,670
77,946
674
78,620
a.2) Payable balances
Non-current
Deferred tax liabilities
Current
Other government/public administration credits/loans:
Withholdings
VAT and other indirect taxes
Social Security bodies
2021
2020
371
371
301
420
338
1,059
385
385
252
138
330
720
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 29 of 45
_ 485
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 2021 and 2020 business years were as
follows:
The reconciliation between accounting profit and taxable profit for corporation tax purposes is as
follows:
Deferred tax assets
Deferred tax liabilities
2021
2020
Taxable temporary differences
Balance at 31.12.19
Originating in previous business years
Other adjustments
Balance at 31.12.20
Arising in prior years (Note 15.b)
Other adjustments
Total balance at 31.12.21
100,919
(24,827)
(21,422)
54,670
(3,653)
(749)
50,268
2,642
–
(2,257)
385
–
(14)
371
“Other adjustments” basically include the differences, positive or negative, between the estimate
of the tax made at the closing of the accounts and the subsequent settlement of the tax at the
payment date. Additionally and specifically for the 2020 business year, it includes the assignment
to FCC Construcción, S.A. of the part of the tax credit that corresponds to this company and that
arose in 2019 as a result of the State aid recovery procedure derived from decision 2015/314/
EU of the European Commission, of 15 October 2014, regarding the tax amortisation of financial
goodwill for the indirect acquisition of foreign holdings.
Accounting profit/
(loss) for the
business year before
tax
Permanent
differences
Adjusted
accounting profit/
(loss
Temporary
differences
- Arising in prior
years (Note 15.a)
Tax base (taxable
profit/(loss)
244,957
258,803
Additions
Reduc-
tions
Additions
Reduc-
tions
89,278
(458,591)
(369,313)
76,002
(341,628)
(265,626)
(124,356)
(6,823)
–
(14,613)
(14,613)
–
(99,306)
(99,306)
(138,969)
(106,129)
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. Corporate Income Tax Law 27/2014,
of 27 November, eliminated the tax credit for the double taxation of dividends, substituting it
with the aforementioned exemption (Note 15.a).
– Temporary differences treated as permanent. They correspond to temporary differences from
previous years that are not capitalised as deferred tax assets and that reverse in the year,
basically due to the non-deductibility of financial expenses.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 30 of 45
_ 486
c) Reconciliation of accounting profit to the corporation tax expense
e)Tax loss carryforwards and unused tax credits
The reconciliation of accounting profit to the corporation tax expense was as follows:
At year-end, the company had tax loss carryforwards from prior years pending offset amounting
to 320,663 thousand euros, as a member of Tax Group 18/89, detailed as follows, by year:
Adjusted accounting profit/(loss)
Corporation tax charge
Other adjustments
Corporation tax expense/(income)
2021
(124,356)
31,089
(1,549)
29,540
2020
(6,823)
1,706
(9,685)
(7,979)
“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.
d) Breakdown of the corporation tax expense
The breakdown of Corporate Income Tax expense for the 2021 and 2020 business years was as
follows:
Current tax
Deferred tax
Total tax (expense)/income
2021
33,928
(4,388)
29,540
2020
21,582
(29,561)
(7,979)
2013
2014
2016
2019
2020
Total
Amount
194,420
45,548
52,608
16,855
11,232
320,663
The company also has unused tax credits pending application from previous years amounting to
14,037 thousand euros. The breakdown is as follows:
Deductions
Reinvestment
R+D+I Activities
Creation of employment
Internal double taxation relief
Rest
Application
deadline
15 years
18 years
15 years
Indefinite
—
Amount
4,688
5,704
1,194
770
1,681
14,037
The Company has capitalised the amount of 44,523 thousand euros for tax bases pending com-
pensation and credits pending application (Note 15.a).
The company also has a potential uncapitalised tax asset, totalling 333 million euros, correspond-
ing 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 corporation tax purposes, amount-
ed 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 31 of 45
_ 487
f) 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
authorities notified the start of corporation 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 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 authorities made a payment for a total amount of 111 million euros (in-
stalment and interest) to Fomento de Construcciones y Contratas, Parent of the FCC Group. 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. Within
the framework of this procedure, the Tax Administration recognised a negative tax base in favour
of the FCC Group, which has generated a tax credit capitalised in the amount of 63.2 million euros
(49 million euros at the Company).
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.
g) Tax Group
In accordance with file 18/89, as the parent, Fomento de Construcciones y Contratas, S.A. files
consolidated corporation tax returns, including all the Group companies that comply with the
requirements of the tax legislation.
h) Other tax information
The following table includes the details of the “Corporation tax refunded/(paid)” heading in the
statement of cash flows for the 2021 and 2020 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
Withholdings and other
2021
101,175
39,737
(115,251)
(65)
25,596
2020
44,448
29,558
(40,766)
(209)
33,031
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 32 of 45
_ 488
16. Guarantee commitments to
third parties and other contingent
liabilities
At 31 December 2021, Fomento de Construcciones y Contratas, S.A. provided guarantees vis-
à- vis public bodies and private clients, mainly to secure the proper performance of the services
under contracts in the United States of America, for 21,362 thousand euros (20,924 thousand
euros at 31 December 2020).
Also, at year-end, the company had provided securities and guarantees to third parties with re-
spect to certain Group companies, totalling 32,314 thousand euros (83,816 thousand euros at
31 December 2020), essentially companies belonging to the Environmental Services division. The
decrease in the year is due to the transfer of guarantees to companies of the aforementioned ac-
tivity, motivated by the segregation process that occurred in 2019, as well as the guarantees relat-
ed to Energy companies that have been cancelled due to the divestment in this activity (Note 9.a).
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
11 of this report, a risk not considered likely.
In addition to the disputes related with Alpine, it must be highlighted that on 15 January 2015,
the Competition Chamber of the Spanish National Markets and Competition Commission handed
down a ruling with respect to proceeding 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, the Judgments issued by the National
Court were notified, upholding the contentious-administrative appeals filed by Gestión y Valor-
ización Integral del Centro S.L. and BETEARTE, S.A. Sole-Shareholder, both companies owned
by FCC, against the CNMC Resolution, in which several sanctions were imposed for alleged col-
lusive 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 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.
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, which 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 com-
pliance 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” anti-corruption principle that permeates FCC’s entire Compliance System.
In the context of the aforementioned collaboration, on 29 October 2019, the Central Court of
Instruction no. 2 of the National High Court agreed to have FCC Construccion, S.A. and two of
its subsidiaries, FCC Construccion America, S.A. and Construcciones Hospitalarias, S.A., investi-
gated within Preliminary Proceedings 34/2017. The case is still in the investigation period, without
us being able to determine at this time what type of charges could be filed, if any. 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 49% the FCC Aqualia, S.A. holding envisages
certain variable prices that depend on the resolution of contingent procedures. The Group, there-
fore, 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
significant losses will be incurred and given that their value is considered insignificant in relation
to the transaction price.
This sale led to the formation of the companies FCC Topco, s.a.r.l. and its subsidiary 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 Group obligations
to FCC Aqualia, primarily the repayment of the 806,479 thousand euro loan that the latter extend-
ed 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 33 of 45
_ 489
The company is involved in other lawsuits and legal procedures aside from those already de-
scribed that it considers will not generate significant cash outflows.
The detail of “Other operating expenses” is as follows:
External services related to information technologies
Leases
Royalties
Independent professional services
Repairs and preservation
Insurance premiums
Banking and similar services
Supplies and procurements
Other services
2021
17,665
10,743
8,503
2,580
468
400
399
40
10,222
51,020
2020
17,571
11,068
6,574
2,832
2,189
1,957
1,365
5,821
15,368
64,745
Also in this case, in 2020 expenses corresponding to environmental service contracts located
abroad are included.
The company’s stake in joint operations managed through joint ventures, joint ownership, partic-
ipation accounts and other similar arrangements means that participants share joint and several
liability for the activities performed.
The company has not obtained any significant assets as a result of the guarantees enforced in its
favour or released.
17. Revenue and expenses
In addition to sales and services, revenue includes dividends and accrued interest arising from
finance extended to investees (Note 2).
The “Sales and provision of services” heading mainly includes billings for management support
services provided by Fomento de Construcciones y Contratas, S.A. to other Group companies.
However, in 2020, 17,388 thousand euros are included corresponding to environmental service
contracts located abroad, specifically in the United States of America, whose contracts could
not be transferred in the 2019 unbundling since Fomento de Constructions and Contracts, S.A.
conserved legal ownership. With regard to these contracts, in 2019, the Company and its sub-
sidiary FCC Medio Ambiente, S.A. signed an agreement for the assignment of economic rights
and obligations to FCC MA. At the end of the 2020 business year, practically all the contracts had
already been transferred.
Details of “Staff expenses” are shown below:
Wages and salaries
Employee welfare costs
2021
19,261
3,771
23,032
2020
28,051
5,851
33,902
The 2020 business year includes personnel expenses corresponding to environmental service
contracts located abroad (see previous paragraph), which explains most of the decrease in this
heading in 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 34 of 45
_ 490
“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:
18. Transactions and balances
with related parties
FCC Servicios Medio Ambiente Holding S.A.U.
FCC Concesiones e Infraestructuras, S.L.
Rest
2021
8,860
3,116
1,397
13,373
2020
6,898
—
860
7,758
Lastly, in the 2021 business year, the “Changes in the fair value of financial instruments” heading
included income of 5,440 thousand euros for an adjustment to the sale price of the company FCC
Aqualia, S.A. The sale agreement of 49% of the aforementioned company, formalised in 2018,
included a contingent price clause. It should be noted that in 2021, the conditions established
for its collection have been met: distribution of dividends by FCC Aqualia, S.A. and interest paid
by Fomento de Construcciones y Contratas, S.A. in excess of the amount that would result from
applying a rate of 0.25% to the principal of the loan granted by FCC Aqualia.
a) Transactions with related parties
Details of transactions with related parties in 2021 and 2020 are as follows:
2021
Provision of services
Receipt of services
Dividends
Financial expenses
Financial income
2020
Provision of services
Receipt of services
Dividends
Financial expenses
Financial income
(wholly
owned)
Group
Companies
91,737
9,970
30,316
33,144
13,373
93,676
11,721
Joint
ventures
Associates
Total
228
—
—
—
26,075
1,144
—
—
304
—
—
—
137
157
91,965
9,970
57,535
33,144
13,373
94,117
11,878
226,941
26,410
1,002
254,353
29,319
7,758
—
—
—
—
29,319
7,758
In addition to the above, during the 2020 business year, the Company has sold certain intangible
assets and property, plant and equipment to various subsidiaries of the FCC Group located in the
USA, as indicated in Notes 5 and 6.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 35 of 45
_ 491
b) Balances with related parties
c) Transactions with directors of the Company and senior executives
The detail of the balances with related parties at year-end was as follows:
of the Group
(wholly
owned)
Group
Companies
Joint
ventures
Associates
Total
2021
Current financial assets (Note 9)
208,413
Non-current financial assets (Note 9)
3,470,166
Current payables (Note 9)
Non-current payables (Note 9)
Trade receivables
Trade payables
2020
488,046
806,479
23,583
3,115
Current financial assets (Note 9)
123,374
Non-current financial assets (Note 9)
3,294,548
Current payables (Note 9)
Non-current payables (Note 9)
Trade receivables
Trade payables
127,628
806,479
17,341
2,736
—
—
2
—
48
—
26,411
16,463
2
—
50
—
—
—
—
—
—
488,048
806,479
23,631
3,115
149,785
4,768
3,315,779
1
—
28
—
127,631
806,479
17,419
2,736
The details of trade receivables from and trade payables to Group companies and associates are
as follows:
The directors of Fomento de Construcciones y Contratas, S.A. accrued the following amounts at
the company, in thousands of euros:
Fixed remuneration
—
208,413
Other payments
4,626
3,474,792
2021
525
1,173
1,698
2020
525
1,147
1,672
The senior executives listed below, who are not members of the Board of Directors, received total
remuneration of 1,908 thousand euros (1,832 thousand euros in the 2020 business years).
2022-2021
Marcos Bada Gutierrez
General manager of Internal Audit
Felipe B. García Pérez
General Secretary
Miguel Ángel Martínez Parra
Managing Director of Administration and Finance
Félix Parra Mediavilla
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.k). In 2021 and 2020, no new contributions were made as premiums for said insurance.
Company
FCC Medio Ambiente, S.A.
FCC Environmental Services Florida Llc.
FCC Aqualia, S.A.
FCC Construcción, S.A.
Hidrotec Tecnología del Agua, S.L.U.
Rest
2021
Receivables
Payable
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 1.751 thousand euros being paid in 2021.
8,978
5,763
3,170
2,434
1,273
2,013
23,631
537
1,123
47
3
1
1,404
3,115
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 5 thousand euros.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 36 of 45
_ 492
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.
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
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:
MR PABLO COLIO ABRIL
FCC AQUALIA, S.A.
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.
Name or corporate name
of the director
Company name of
the Group entity
ALICIA ALCOCER
KOPLOWITZ
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
Position
DIRECTOR
REALIA BUSINESS, 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
DIRECTOR
VALDERRIVAS, S.A.
FCC AQUALIA, S.A.
DIRECTOR
BOARD MEMBER, MEMBER
OF THE AUDIT AND CONTROL
COMMITTEE, MEMBER
OF THE INVESTMENT
COMMITTEE AND MEMBER
OF THE EXECUTIVE
COMMITTEE REGULATORY
COMPLIANCE COMMITTEE
FCC CONSTRUCCIÓN, S.A.
CHAIRMAN
FCC ENVIRONMENT (UK) LIMITED
DIRECTOR
FCC MEDIO AMBIENTE REINO
UNIDO, S.L.U.
DEPUTY CHAIRMAN
FCC MEDIO AMBIENTE, S.A.U.
CHAIRMAN
FCC SERVICIOS MEDIO AMBIENTE
HOLDING, S.A.U.
DEPUTY CHAIRMAN
GUZMAN ENERGY O&M, S.L.
CHAIRMAN
FCC AUSTRIA ABFALL SERVICE AG
CHAIRMAN
REALIA BUSINESS, S.A.
NON-EXECUTIVE CHAIRMAN
d) Situations of conflicts of interest
ALVARO VÁZQUEZ DE
LAPUERTA
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
ALEJANDRO ABOUMRAD
GONZÁLEZ
CEMENTOS PORTLAND
VALDERRIVAS, S.A.
FCC AQUALIA, S.A.
DIRECTOR
REPRESENTATIVE OF THE
DIRECTOR INMOBILIARIA
AEG, S.A. DE CV
DIRECTOR AND CHAIRMAN
OF THE BOARD OF
DIRECTORS
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.
FCC SERVICIOS MEDIO AMBIENTE
HOLDING, S.A.U.
CHAIRMAN
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 37 of 45
_ 493
e) Transactions with related parties
– Execution of construction and service provision contracts between Group companies and
investees by other parties related to the controlling shareholder, as follows:
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:
– Acquisition of shares of Realia Business, S.A. representing 13.11% of its share capital by the
Company FC y C, S.L. Sole-Shareholder Company, amounting to 83,941 thousand euros.
– Capital increase of FC y C, S.L. Sole-Shareholder Company, through the non-monetary contri-
bution of all the shares of Jezzine Uno, S.L.U. by Sociedad Soinmob Inmobiliaria Española, S.A.
for an amount of 226,200 thousand euros.
Realia Business, S.A.
Buying party
Selling party
Realia Patrimonio, S.L.U.
FCC Industrial e Infraestructuras
Energéticas S.A.U.
FCC Medio Ambiente,S.A.
Servicios Especiales de Limpieza,S.A.
Fedemes,S.L.
FCC Industrial e Infraestructuras
Energéticas S.A.U.
2021
1,193
2020
1197
162
496
13
2
134
467
13
—
– Granting of a loan by Fomento de Construcciones y Contratas, S.A. to Realia Business, S.A. for
an amount of 120,000 thousand euros.
FCC Construcción, S.A.
12,001
23938
Fomento de Construcciones y
Contratas,S.A.
Fedemes,S.L.
FCyC, S.L. Unipersonal
Aridos de Melo,S.L.
FCC Construcción, S.A.
FCC Medio Ambiente,S.A.
Fomento de Construcciones y
Contratas,S.A.
Fedemes,S.L.
Realia Business, S.A.
FCC Construcción, S.A.
FCyC, S.L. Unipersonal
Cementos Portland
Valderrivas,S.A.
Realia Patrimonio, S.L.U.
Fomento de Construcciones
y Contratas, S.A.
Realia Patrimonio, S.L.U.
142
101
296
21,383
9
54
112
2,371
2
90
11
120
101
—
—
—
—
—
—
—
—
34
38,438
26,004
– 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 38 of 45
_ 494
– Service provision contract between Cementos Portland Valderrivas, S.A. and Mr Gerardo Kuri
Kaufmann, for an amount of 175 thousand euros.
19. Environmental information
– Service provision contract between Realia Business, 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
2021 of 70,085 thousand euros. The finance costs incurred in the business year totalled
1,764 thousand euros.
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 vari-
ous channels, including the www.fcc.es website. Readers are advised to refer to this information
as the best representation of this Note.
– Contract for the provision of IT services by Claro Enterprise Solutions, S.L. to Fomento de
Construcciones y Contratas, S.A. in the amount of 13,446 thousand euros.
20. Other information
– Contract entered into between FCC Industrial e Infraestructuras Energéticas, S.A.U. and
Realia Patrimonio, S.L.U., relating to the supply and installation of intercoms by FCC Industrial
at Torre Fira de Barcelona, owned by Realia, in the amount of 13 thousand euros.
– Construction contract for 80 homes, garages, storage rooms and sports areas, Phase 2 of
PP41 in Alcalá de Henares (Madrid) commissioned as a client of Realia Business, S.A. in the
amount of 12,740 thousand euros (excluding VAT).
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.
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
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 share-
holders, 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 2021 and 2020 was as follows:
Directors and managers
Supervisors
Technicians
Clerical Staff
Sundry trades
2021
2020
59
36
131
48
3
277
62
36
140
53
4
295
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 39 of 45
_ 495
The table below details the average number of people with a disability of 33% or more in 2021
and 2020, pursuant to Royal Decree 602/2016, of 2 December, which introduced new disclosure
requirements for companies’ financial statements:
The average number of employees, directors and senior executives of the company, distributed
by men and women, was as shown below in the 2021 and 2020 business years:
Technicians
Clerical Staff
Sundry trades
2021
2020
2
2
1
5
2
2
1
5
The numbers of employees, directors and senior executives at the company at 31 December
2021 and 2020, broken down by gender, were as follows::
Men
Women
Total
Men
Women
2021
158
132
290
2020
170
137
307
b) Remuneration to auditors
The fees incurred for auditing and other professional services provided to the Company by the
principal auditor, Ernst & Young, S.L. and other participating auditors in 2021 and 2020, are as
follows:
2021
Directors
Senior executives
Directors and managers
Supervisors
Technicians
Clerical Staff
Sundry trades
2020
Directors
Senior executives
Directors and managers
Supervisors
Technicians
Clerical Staff
Sundry trades
10
4
38
22
67
16
1
158
Men
10
4
37
22
65
16
2
4
—
17
11
63
36
2
14
4
54
33
128
52
4
289
156
133
4
—
15
13
70
30
1
133
14
4
53
35
137
46
2
291
Audit services
Other assurance services
Total audit and related
services
Tax advisory services
Other services
Women
Total
Total professional services
TOTAL
2021
2020
Principle
auditor
Other
auditors
Total
Principle
auditor
Other
auditors
Total
285
22
307
–
–
–
307
–
2
2
113
128
241
243
285
24
309
113
128
241
550
252
22
274
–
–
–
274
–
–
–
8
143
151
151
252
22
274
8
143
151
425
21. Subsequent events
As of the date of preparation of these financial statements, no matters of a nature that could mod-
ify them or be the subject of additional information to that included in them had been disclosed.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 40 of 45
_ 496
Annex I. Group companies (at 31 December 2021)
Dividends
received
Capital
Reserves
Other net equity
line items
Operating profit
or loss
Continuing
operations
2021 profit/loss
–
–
–
6,842
8,919
–
223
3,867
233,955
359,834
4,666
(57,314)
(23,476)
36,400
(Leg)(*)
796
(Leg)(*)
–
(2,239)
(Leg)(*)
(1,471)
Leg)(*)
24,600
145,000
376,344
7,742
75,912
74,889
Company
Asesoría Financiera y de Gestión, S.A.U.
Federico Salmón, 13 - Madrid
-Holding company-
Cementos Portland Valderrivas, S.A.
Dormilatería, 72 – Pamplona
-Cement-
Egypt Environment Services SAE
El Cairo – Egypt
-Urban sanitation-
FCC Aqualia, S.A.
Federico Salmón, 13 – Madrid
-Water management-
FCC Concesiones de Infraestructuras, S.L.U.
venida Camino de Santiago, 40 – Madrid
-Concessions-
FCC Construcción, S.A.
Balmes, 36 – Barcelona
-Concessions-
Book value
Assets
Impairment
Holding %
14,010
–
100
1,019,536
250,151
99.49
7,760
5,814
91,115
62
–
–
1,752,075
665,838
dta. 97.00
indt. 3.00
dta. 41.00
indt. 10.00
100
100
100
–
–
–
3
1,429
220,000
319,197
10,000
209,926
100
5,696
50
16,431
FCC Servicios Medioambiente Holding, S.A.U.
Federico Salmón,13 - Madrid
-Environmental Services-
FCC TopCo S.à.r.l
48, Boulevard Grande-Duchesse Charlotte Luxembourg
-Holding company-
300,964
22,263
–
–
FCC Versia, S.A.U.
Avenida Camino de Santiago, 40 – Madrid
-Management company-
FCyC, S.L.
Federico Salmón, 13 – Madrid
-Real estate-
Fedemes, S.L.U.
Federico Salmón, 13 – Madrid
-Real estate-
TOTAL
(*) (Leg) Egyptian pounds.
62,624
62,624
100
777,761
11,782
–
–
80.03
100
–
–
–
120
(37,330)
55,745
874,126
10,301
12,942
4,059,952
984,427
30,296
–
–
–
–
–
–
–
784
680
75,534
245,926
(362)
20,062
(21)
(10)
5,830
(376)
23,188
17,085
1,783
1,355
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 41 of 45
_ 497
Annex I. Group companies (at 31 December 2021)
Book value
Company
Assets
Impairment
Holding %
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-
14,010
__
185
185
100
100
1,016,869
164,977
99.21
Dividends
received
–
–
–
Other net equity
line items
Operating profit
or loss
Continuing
operations
2020 profit/loss
Capital
Reserves
6,843
12,749
35
(1,584)
–
–
526
__
(3,831)
(396)
486
233,955
359,302
14,290
38,223
7,760
3,277
dta. 97.00
indt. 3.00
805
36,400
(Leg)(*)
3,942
–
(5,211)
(Leg)(*)
(3,146)
(Leg)(*)
145,000
325,871
8,289
66,570
112,365
91,115
61
3
–
2
–
1,752,075
911,525
dta. 41.00
indt. 10.00
100
100
100
–
–
–
–
3
3
–
(1)
220,000
396,180
–
–
–
–
–
(2)
(2)
1,819
1,371
18,618
(12,661)
(508)
170,034
(21)
(26)
FCC Servicios Medioambiente Holding, S.A.U.
Federico Salmón,13 - Madrid
-Environmental Services
FCC TopCo S.à.r.l
8, Boulevard Grande-Duchesse Charlotte Luxembourg
-Holding company-
300,964
22,263
–
85
100
160.000
10,000
39,892
100
–
50
22,154
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 42 of 45
_ 498
Company
Assets
Impairment
Holding %
Book value
62,624
62,624
777,761
11,782
–
–
100
100
100
Dividends
received
–
–
–
Capital
Reserves
120
(36,977)
44,613
587,119
10,301
11,440
71,553
71,461
100
66,136
60
(488)
Other net equity
line items
Operating profit
or loss
Continuing
operations
2020 profit/loss
–
–
–
–
(12)
(352)
(3,780)
(13,471)
1,981
1,502
(7)
520
FCC Versia, S.A.U.
Avenida Camino de Santiago, 40 – Madrid
-Management company-
FCyC, 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
4,129,025
1,214,136
226,941
(*) (Leg) Egyptian pounds.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 43 of 45
_ 499
Annex II. Temporary joint ventures
ALCANTARILLADO MADRID LOTE D
AQUALIA-FCC-VIGO
BOMBEO ZONA SUR
CANGAS DE MORRAZO
CENTRO DEPORTIVO GRANADILLA DE ABONA
CONSERVACION GETAFE
EDAR CUERVA
EDAR REINOSA
EDAR SAN VICENTE DE LA BARQUERA
FCC SANEAMIENTO LOTE D
LOTE 4 CULEBRO A
MANCOMUNIDAD DE ORBIGO
NIGRAN
PERIFÉRICO LOTE 3
REDONDELA
SANTOMERA
% Participation
0.01
0.01
1.00
0.01
1.00
1.00
5.00
1.00
1.00
100.00
1.00
1.00
1.00
50.00
0.01
0.01
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 44 of 45
_ 500
Annex III. Associates and jointly controlled entities (at 31 December 2021)
Company
Assets
Impairment
Holding %
Dividends
received
Capital
Reserves
Other net equity
line items
Operating profit
or loss
Continuing
operations
Book value
2021 profit/loss
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 (Méjico)
-Water management-
TOTAL
(*) (Pm) Mexican pesos.
377
118
50
—
433
328
4,367
–
dta. 24.00
indt. 2.00
4,744
118
1,144
1,144
347,214
(Pm)(*)
407,072
(Pm)(*)
–
–
(322)
(242)
235,506
(Pm)(*)
127,310
(Pm)(*)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Notes to the financial statements | Page 45 of 45
_ 501
Annex III. Associates and jointly controlled entities (at 31 December 2020)
Company
Assets
Impairment
Holding %
Dividends
received
Capital
Reserves
Other net equity
line items
Operating profit
or loss
Continuing
operations
Book value
2020 profit/loss
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 (Méjico)
-Water management-
TOTAL
(*) (Pm) Mexican pesos.
257,090
240,627
49
26,410
54,482
37,345
377
4,367
–
–
50
–
433
321
dta. 24.00
indt. 2.00
1,002
347,214
(Pm)(*)
407,072
(Pm)(*)
261,834
240,627
27.412
–
–
–
62
6
62
7
235,506
(Pm)(*)
127,310
(Pm)(*)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
_ 502
Management Report
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. at 31 December 2021
1. Status of the entity
2. Business performance and results
3.
Liquidity and capital resources
4. Major risks and uncertainties
5. Acquisition and disposal of own shares
6. Significant events occurring after the end of the year
7. Outlook
8. RD&I Activities
9. Other relevant information. share and other information
10. Definition of alternative performance measures according
to ESMA regulations (2015/1415en)
503
507
526
527
528
528
528
531
537
538
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 1 of 41Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 2 of 41
_ 503
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 Group's organisational structure is based on a first level consisting of Areas, which are divid-
ed into two main groups: operational and functional.
The operating Areas include all those activities related to the productive line. The following oper-
ating areas exist within the Group, as discussed in more detail in note 1 of the Notes to the con-
solidated financial statements, and also in section 2.2 of the Non-Financial Information Statement:
i. Environmental Services.
ii. End-to-end Water Management.
iii. Construction.
iv. Cement Business.
v. Concessions
vi. Real Estate.
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 Admin-
istration, Information Technologies, Finance, Communication, Purchasing and Human Re-
sources areas.
The Administration area directs the administrative management of the Group, and has, among
others, the following functions in relation to the Information and Internal Control Systems:
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 pro-
cesses, 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 the Group, 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 Gen-
eral Secretary.
Each of these operating Areas is headed by one or more specialised companies which, depend-
ing on FCC, encompass the Group's activities.
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 nec-
essary.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 3 of 41
_ 504
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, ex-
cept those that are expressly reserved, by the Spanish Corporate Enterprises Act or the Arti-
cles 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 financial
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, establishes
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 Group's decision-making bodies is provided in Section 1
of the Internal Financial Reporting Control System (IFRS) and in Section 2.1 of the Non-Financial
Information Statement.
1.2. Status of the entity: Business model and company strategy
The Group is one of the leading European groups specialising in environment, water, development
and infrastructure management with a presence in more than 30 countries around the world and
with 41.1% of its turnover generated in international markets, mainly Europe (30.1%), the Middle
East (2.8%), Latin America (3.98%), North Africa (2%), and the United States. (1.8%).
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 120 years.
At the national level, the Group provides environmental services in more than 3,500 municipalities
and organisations in all the Autonomous Communities, serving a population of more than 31
million inhabitants. Waste collection and street cleaning are two of the most important services in
this sector, representing 48% of revenue. They are followed, in order of importance, by disposal
of wastes with 33%, 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 limited impact of the COVID-19 pandemic, with most of the services provided being so-called
"essential", has practically disappeared in 2021, returning to normal levels of activity. The Group is
still engaged in a complex process whose ultimate goal is to replace the linear production model
with a circular model that reincorporates waste materials into the production process, relying on
its high level of know-how and the development of new innovative technologies.
Moreover, international business is mainly conducted in the United Kingdom, Central Europe and
the USA. For years, the Group has held a leading 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, the Group provides services in seven countries (Austria, Czech
Republic, Slovakia, Poland, Hungary, Romania and Serbia) to a total population of 4.3 million in-
habitants, 1,401 municipalities and more than 51,600 industrial customers. The range of services
provided and the geographical dispersion is very diverse and balanced, including municipal and
industrial collection, mechanical and biological treatment, incineration, landfill, street cleaning,
snow collection, recycling, outsourcing, building cleaning, soil decontamination work, etc. This
broad diversification ensures great business stability and is one of the reasons why the economic
impact of COVID has been irrelevant. The significant increase in recycling prices during 2021
(with revenues representing around 13% of total revenues) has led to significant improvements in
profitability in absolute and relative terms.
The Environmental Services Area also specialises in the end-to-end management of industrial and
commercial waste, recovery of by-products and soil decontamination, through the FCC Ámbito
brand, which encompasses a group of companies with an extensive network of management
and recovery facilities. This enables proper waste management, ensuring the protection of the
environment and people's health. This activity accounted for more than 4% of all activity in 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 4 of 41
_ 505
Internationally, growth in the US stands out, where sales growth in 2021 compared to the previ-
ous year was 49% and is expected to be even higher by 2022, the pandemic has not affected the
strong growth rate in the slightest. FCC now ranks among the Top 15 companies in the sector in
the USA, with expectations of being in the Top 10 in the next two years. FCC Environmental Ser-
vices already serves more than 8.5 million Americans, is the largest recycler in Texas, and has a
very important presence in Florida in cities as important as Orlando, Tampa, Palm Beach, Daytona
Beach, Lakeland and Wellington. Growth continues to be exponential and the company now em-
ploys more than 1,000 people. The Wellington contract kicked off in the last month of 2021 and
the Hillsborough County contract will also start in the first month of 2022, both in Florida, adding
even more to FCC's leading position in that status.
In December 2021, the Group's first acquisition in the US market was completed with the pur-
chase of Premier Waste Services, Llc. in Dallas (Texas). Premier is one of the leading commercial
waste collection operators in the Dallas-Fort Worth metropolitan area, which will further enhance
the Group's significant growth in the commercial collection market, which will already account
for more than 10% of revenues by 2022, as well as bring significant synergies to the Group's
recycling facility in the Texas city.
As has been the case for years, the strategy in Spain will focus on maintaining competitiveness
and a leading position, combining know-how and the development of innovative technologies,
offering respectful, inclusive and sustainable services (combating climate change and reducing
the carbon footprint). Additionally, the potential opportunities created by stricter regulation and
new services (smart cities) will be exploited.
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. In the United States, the company will continue to consolidate its presence in the
coming years by growing more residential contracts and boosting commercial collection activity.
In general, there is a broad commitment to climate change, materialised for example in the is-
suance of green bonds to finance the operation and acquisition of assets developed with the
activity.
End-to-end Water Management
FCC Aqualia serves nearly 30 million users and provides services in 17 countries, offering the
market all the solutions to the needs of public and private entities and organisations in all phases
of the end-to-end water cycle and for all uses: human, agricultural or industrial.
FCC Aqualia's activity is focused on Concessions and Services, encompassing distribution net-
work concessions, BOT, operation and maintenance services and irrigation; as well as Technol-
ogy and Networks activities encompassing EPC contracts and industrial water risk management
activities.
In 2021 the market in Spain represents 70% of revenue. On a like-for-like basis, water consump-
tion at the end user level (downstream water) has grown in Spain as a whole in 2021 by 0.25%
and the amounts billed by 1.55% with respect to 2020. Compared to 2019, the last year prior
to COVID-19, the average volume billed is still 0.8% lower, although in terms of tariff revenue the
amounts are similar. This was despite the lower consumption levels for the year as a whole than
during the pandemic: 10.1% in the Canary Islands, 6.7% in the Balearic Islands and 2.0% in the
province of Cadiz, which we estimate will gradually recover in 2022. 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 higher volume of execution of various
works linked to concession contracts.
In the public sector, there is still a low level of tendering for water infrastructure concessions,
despite which 2021 can be considered a successful exercise. We have been awarded new con-
tracts, and renewals and extensions of existing contracts, in 354 municipalities, with a contracted
portfolio volume of over €873 million. The contract renewal loyalty rate remains at very high levels
(above 90%) in the municipalities in which 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 30%. FCC Aqualia focuses its activity in Europe,
North Africa, the Middle East and the Americas, with ongoing contracts in 16 countries at present.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 5 of 41
_ 506
The year 2021 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 manage-
ment of the municipal concession services in the Czech Republic, Italy and Portugal, work was
carried out to integrate the new business in France
FCC Aqualia seeks to maintain its competitive position in those end-to-end water management
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 end-to-end 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 end-to-end water cycle management for business opportuni-
ties in countries with a stable political and social balance.
Cement
The Group carries out its cement activity through the Cementos Portland Valderrivas group. Its
core business is cement manufacturing, which accounted for 91% of its Group turnover in 2021.
The remaining percentage was contributed by the concrete, mortar and aggregate businesses.
In terms of geographical diversification, by 2021, 39% of income came from international mar-
kets. The Cementos Portland Valderrivas Group is present in Spain, Tunisia and the United King-
dom. Exports from these three countries also go 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 competitive tension
both in terms of costs and in the markets in which it operates, trying to remain a reference in the
sector in all the countries in which it is present.
Construction
Real Estate
The Construction Area focuses its activity on the design, development and construction of large
civil, industrial and building infrastructure projects. The presence in public works of complex el-
ements such as railways, tunnels and bridges stands out, which together with those involving
installation and industrial maintenance, form a large part of the activity.
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.
In 2021, 47% of total revenues will come from abroad, including the execution of major infrastruc-
ture projects such as lines 4, 5 and 6 of the Riyadh Metro, Haren Penitentiary Centre (Belgium),
Tren Maya (Mexico), A-465 (Wales), Lima Metro (Peru), Toyo Tunnel (Colombia), Mapocho River
Park (Chile), A-9 Badhoevedorp-Holendrecht motorway (Netherlands), and the Gurasada-Simeria
railway line (Romania) - Sectors 2a, 2b and 3.
In 2021, the contract for the construction of the "Industrial Bridge" in Chile, with a budget of ap-
proximately €125.6 million, was awarded.
After October 2021, Real Estate becomes a relevant Area of the Group, following the corporate
transactions described below.
The Group is present in the real estate sector, mainly in housing development and office rental
through the company FCyC, SLU ("FCC Inmobiliaria") of which it controls 80.03%, a company
that holds 50.35% of Realia Business S.A., after the acquisition of 13.12% of the same in 2021,
taking control and proceeding to its full consolidation from 1 November 2021. Likewise, in No-
vember 2021, FCyC incorporated, through a non-monetary contribution, 100% of the company
Jezzine Uno, S.L.U., the purpose of which is to lease properties to Caixabank distributed in Spain,
under a framework lease agreement with a term until 2037. Finally, in December 2021, Realia ac-
quired 37.11% of Hermanos Revilla, S.A., reaching 87.86% of its share capital. These operations
have increased the size of FCC Inmobiliaria with the following objectives:
• Consolidate a solid, large-scale real estate group, with greater management efficiency derived
from operational and financial synergies that will enable it to take advantage of growth oppor-
tunities in the sector.
• Diversify FCC Inmobiliaria's risk and geographic opportunities by extending its activity to new
areas of operations in which it was not already present.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 6 of 41
_ 507
• Significant increase in the contribution of Realia's and Jezzine's recurring rental property ac-
tivity to FCC Inmobiliaria as a whole, whose asset assessments at December 2021 accounted
for more than [70%] of the area's total.
Subsequently, last December, Realia, through Realia Patrimonio, acquired 37.11% of its subsid-
iary company Hermanos Revilla, S.A. for a price of €189 million. After this purchase, the Realia
Group's direct and indirect stake in the company rose to 87.76% of its share capital, and it now
controls 100% of the company.
2. Business performance and results
2.1. Operating performance
2.1.1. Significant Events
FCC Aqualia agrees to purchase 80% of GGU's water business for USD 180 million
Last December FCC Aqualia agreed to acquire 80% of the water business of Georgia Global
Utilities (GGU) for USD 180 million. The purchase process with GGU, the proprietor of water utility
and power generation assets, will be carried out in two phases: (i) a first phase, which has been
completed, where FCC Aqualia has acquired 65% of the current GGU, which includes water and
renewable energy assets, for a price of USD 180 million. (ii) a second phase, in which GGU will
spin off the renewable energy assets, leaving in the perimeter of GGU only the water assets (with
four hydroelectric plants associated with the water cycle), with FCC Aqualia then holding 80% of
GGU and its former sole shareholder holding the remaining 20%.
FCC Inmobiliaria increases in size and strengthens its competitive position
On 8 October, FCC Inmobiliaria, parent company of the Real Estate Area of FCC Group, reached
an agreement with Control Empresarial de Capitales (CEC) to acquire 13.12% of the capital stock
of Realia for an amount of 83.9 million euros, whereby FCC Inmobiliaria now holds a majority
share (50.1%) and, as a result, has achieved its global consolidation within the FCC Group. In
addition, it acquired the capital stock of Jezzine, an asset holding company 100% owned by So-
inmob, a subsidiary of CEC. As a result of this operation, control of FCC Inmobiliaria is retained,
with 80.03% of the capital of the head subsidiary company of the strengthened Real Estate Area
of the FCC Group, leading to significant strengthening of its competitive position, operating syn-
ergies, and presence in the rental property business.
FCC Medio Ambiente expands its presence in the USA and Central Europe
Last December, FCC Environmental Services made its first acquisition in the USA with the pur-
chase of Premier Waste Services in Dallas (Texas), a company specialising in tertiary waste col-
lection in that area, for USD 34 million. This operation enhances the service offering and increases
operational efficiency in the existing collection and treatment activities in the state of Texas. In
addition, the city of Wellington (Florida) awarded the municipal solid waste collection service for
ten years (with a possible extension for another five years), with a portfolio of more than €110
million. This was in addition to the residential and commercial solid waste collection contract in
Hillsborough County, also in Florida, awarded for eight years (with a possible extension for four
years) with a portfolio of €230 million.
FCC Environment Austria was awarded with the municipal waste treatment and transport con-
tract of the West Tyrol Waste Treatment Association, which will begin in January 2022, with a
5-year duration, extendable for another 5 years and with a backlog worth €33 million.
FCC Aqualia is awarded three contracts in France
Last November, FCC Aqualia, through its subsidiary SEFO, was awarded the water supply man-
agement of 16 municipalities around Mantes-la-Ville in the Yvelines department located in the Île-
de-France region, very close to Paris. This award consists of the concession of the drinking water
supply for a period of six years for around €30 million. As a result, the portfolio of future revenues
of the end-to-end water management area exceeds €15,000 million, an increase of 2.2% at the
end of the business year.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 7 of 41
_ 508
FCC Medio Ambiente increases its contracting and boosts its backlog by 17% in the business
year
The volume of future revenues secured by the FCC Medio Ambiente Area grew by 17% at year-
end, after increasing revenues by 12.4% in the year, thanks to the incorporation of important
contracts in Spain and, to a lesser extent, those mentioned previously in the USA. Among others,
the contract for street collection in Barcelona stands out, and in the fourth quarter the awarding of
two street cleaning contracts in Madrid, as well as another two for the end-to-end management
of green areas and two for the maintenance of urban furniture. This group of contracts contributed
a combined contract amount of €1,585 million for the year.
Lastly, in terms of treatment and recycling activity, the joint venture led by FCC Medio Ambiente
won the contract for the design, development, and operation of the Valladolid Household Waste
Treatment and Disposal Centre. It has a duration of 11 years and a portfolio of more than €110
million. Also in the recovery activity, the new contract for the selective collection and temporary
storage of glass packaging waste for ECOVIDRIO in various regions of Spain, with a portfolio of
€13.5 million and a duration of 8 years, stands out.
2.1.2. Executive Summary
KEY FIGURES
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
(Millions of euros)
Dec. 21
6,659.3
1,126.6
16.9%
802.2
12.0%
580.1
4,440.7
3,225.7
Dec. 20
6,158.0
1,047.5
17.0%
572.7
9.3%
262.2
2,908.7
2,797.8
30,196.9
29,411.7
Chg. (%)
8.1%
7.6%
-0.1 p.p
40.1%
2.7 p.p
121.2%
52.7%
15.3%
2.7%
In the 2021 business year, the FCC Group increased its revenues to €6,659.3 million, 8.1% higher
than in 2020. It is worth highlighting the positive development of most of the business activities,
which equalled or exceeded the revenue levels recorded in 2019 (prior to the pandemic), with a
notable contribution by the Environment Area with a 12.4% increase.
Gross operating profit (EBITDA) grew 7.6%, to reach €1,126.6 million. This can be explained by
a number of factors. Operating margins rose in most business areas, particularly in Construction.
Cement was impacted by high CO2 sales in 2020, €51.1 million more than in 2021 and, lastly,
the effects of consolidation, with the exit of the concession subgroup Cedinsa from April 2021, in
contrast to the entry into full consolidation, in the Real Estate Area, of Realia and Jezzine, from 1
November last year. Adjusted for the impact of CO2 and changes in the scope of consolidation,
EBITDA grew 17.9% in the business year.
Operating profit (EBIT) includes the described development of EBITDA together with the account-
ing impact of Realia's full consolidation, by raising the previous level of recorded value of its rental
property assets by €241.7 million. This is mitigated by the adjustment of €136.0 million in the
value of property, plant and equipment and goodwill linked to various assets in the Cement Area.
This together allowed EBIT to increase by 40.1% in the business year.
Attributable net income reached €580.1 million, more than twice as much as last year's figures.
This increase largely represents operational developments together with a positive performance
of the financial result, which includes a reduction in net financial expenses of €43.5 million in the
year together with a positive impact of €24.5 million from exchange differences recorded, com-
pared to a negative contribution of €51.3 million in 2020.
Net financial debt amounted to €3,225.7 million at the end of the business year, €427.9 million
more than in 2020. This increase is due to the consolidation of the financing of Realia's and
Jezzine's rental assets in the Real Estate Area, with a combined amount of €889.7 million at year-
end. Meanwhile, the performance of all the operating and investment activities accounts for the
rest of the financial debt amount.
Equity rose considerably at year-end, with a figure of €4,440.7 million, 52.7% higher than at the
end of 2020, explained by the substantial increase achieved by the net profit for the year and the
effect of the full consolidation of Realia and Jezzine.
The FCC Group's revenues stood at €30,196.9 million as at 31 December 2021, up 2.7% on the
balance at year-end 2020, with the new contracts of the Environmental Area being a particular
highlight.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 8 of 41
_ 509
2.1.3. Summary by Business area
Area
Dec. 21
Dec. 20
Chg. (%)
(Millions of euros)
% of 2021
total
% of 2020
total
Area
Dec. 21
Dec. 20
Chg. (%)
(Millions of euros)
% of 2021
total
% of 2020
total
REVENUE BY BUSINESS AREA
OPERATING PROFIT/(LOSS)
Environment
Water
Construction
Cement
Real Estate*
Corporate serv. and others
Total
REVENUE BY GEOGRAPHICAL AREA
Spain
United Kingdom
Rest of Europe and Others
Latin America and the USA
Czech Republic
Middle East & Africa
Total
EBITDA**
Environment
Water
Construction
Cement
Real Estate*
Corporate serv. and others
Total
3,244.9
1,169.5
1,659.6
433.8
147.9
3.6
2,888.2
1,188.3
1,611.0
382.6
34.8
53.1
12.4%
-1.6%
3.0%
13.4%
n/a
-93.2%
48.7%
17.6%
24.9%
6.5%
2.2%
0.1%
46.9%
19.3%
26.2%
6.2%
0.6%
0.9%
Environment
Water
Construction
Cement
Real Estate*
Corporate serv. and others
6,659.3
6,158.0
8.1%
100.0%
100.0%
Total
285.4
181.3
71.1
(90.3)
298.3
56.4
802.2
215.7
167.4
20.9
32.3%
8.3%
n/a
35.6%
22.6%
8.9%
106.8
-184.6%
-11.3%
(3.8)
65.7
n/a
-14.2%
37.2%
7.0%
37.7%
29.2%
3.6%
18.6%
-0.7%
11.5%
572.7
40.1%
100.0%
100.0%
3,943.8
3,672.3
855.6
811.5
376.0
346.6
325.8
668.6
803.0
261.5
285.2
467.4
7.4%
28.0%
1.1%
43.8%
21.5%
-30.3%
59.2%
12.8%
12.2%
5.6%
5.2%
4.9%
59.6%
10.9%
13.0%
4.2%
4.6%
7.6%
6,659.3
6,158.0
8.1%
100.0%
100.0%
535.1
298.9
102.6
76.1
40.0
73.9
450.9
282.9
53.6
139.9
-3.8
124.0
18.7%
5.7%
91.5%
-45.6%
n/a
-40.4%
47.5%
26.5%
9.1%
6.8%
3.6%
6.6%
43.0%
27.0%
5.1%
13.4%
-0.4%
11.8%
NET FINANCIAL DEBT**
Corporate
With recourse
Without recourse
Areas
Environment
Water
Cement
Real Estate*
Total
BACKLOG**
Environment
Water
Construction
Real Estate*
1,126.6
1,047.5
7.6%
100.0%
100.0%
Total
(326.0)
0.5
101.6
14.7
n/a
-10.1%
-96.6%
0.0%
1,289.7
1,247.6
124.4
889.7
1,330.2
1,177.6
-3.0%
5.9%
173.7
-28.4%
0.0
n/a
40.0%
38.7%
3.9%
27.6%
3.6%
0.5%
47.5%
42.1%
6.2%
0.0%
3,225.7
2,797.8
15.3%
100.0%
100.0%
10,746.4
9,184.3
15,361.1
15,025.9
17.0%
2.2%
3,981.3
5,155.8
-22.8%
108.1
45.7
n/a
35.6%
50.9%
13.2%
0.4%
31.2%
51.1%
17.5%
0.2%
30,196.9
29,411.7
2.7%
100.0%
100.0%
* Real Estate presents its consolidated key figures for both business years separately.
** Following ESMA (2015/1415es) rules, please find calculation details on page 27.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 9 of 41
_ 510
2.1.4.
Income Statement
Dec. 21
Dec. 20
Chg. (%)
(Millions of euros)
Net turnover (NT)
Gross Operating Profit (EBITDA)
EBITDA Margin
Provision for amortisation of fixed and non-current
assets
6,659.3
1,126.6
16.9%
6,158.0
1,047.5
17.0%
(452.3)
(488.9)
Other operating income
Net Operating Profit (EBIT)
EBIT margin
Financial income
Miscellaneous financial results
P/L Entities accounted for using 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
127.9
802.2
12.0%
(110.5)
57.5
58.2
807.5
(130.2)
677.3
677.3
(97.1)
580.1
14.1
572.7
9.3%
(154.0)
(51.1)
62.1
429.9
(86.3)
343.6
343.6
(81.4)
262.2
8.1%
7.6%
-0.1 p.p
-7.5%
n/a
40.1%
2.7 p.p
-28.2%
n/a
-6.3%
87.8%
50.9%
97.1%
97.1%
19.3%
121.2%
Consolidated revenues grew to €6,659.3 million in the business year, up 8.1% on the previous
year. The development reflects the gradual strengthening of the recovery of the different activities
after the distortions and impacts caused by the healthcare crisis in 2020. The strength and com-
petitive position of the business areas has therefore enabled the revenue levels recorded in 2019
to be surpassed by over 6%.
By business area, Environment recorded an increase of 12.4%, thanks to the general recovery
in its various operating platforms, mainly due to the combination of the entry into service of new
treatment contracts and street cleaning activity in Spain and collection in the USA, together with
the increase in revenues in Central Europe and the UK, especially linked to waste treatment and
recovery activities.
Revenues in the Water Area declined by 1.6%, but this was entirely due to the lower contribu-
tion expected in the year from the Technology and Networks business, due to the entry into the
completion phase of some one-off international projects. Moreover, the main concessions activity
maintained a sustained increase of 3.6%, while the area's revenues grew by 3.1% during the
period without a reduction in T&N.
In Construction, revenues were 3% higher than in 2020, with a significant increase in Europe
(mainly the UK and the Netherlands), together with various contracts in different Latin American
countries, which was mitigated by other contracts that were completed or nearing completion,
especially in the Middle East, including Saudi Arabia.
In the Cement Area, revenues had double-digit growth of 13.4% for the year, due both to the
increase in sales in Spain and the rise in exports, which was more pronounced in the first half of
the year.
The Real Estate Area, which is presented separately, experienced a notable increase in revenues
to €147.9 million, compared to €34.8 million in the previous year. This is due both to the entry into
full consolidation of Realia and Jezzine since last November, and to the increase in revenues from
the development and sale of properties. Without this consolidation, revenues for the year would
have risen significantly to €102.4 million.
Revenue breakdown by geographical area
(Millions of euros)
Spain
United Kingdom
Rest of Europe and Others
Latin America and the USA
Czech Republic
Middle East & Africa
Total
Dec. 21
3,943.8
855.6
811.5
376.0
346.6
325.8
Dec. 20
3,672.3
668.6
803.0
261.5
285.2
467.4
6,659.3
6,158.0
Chg. (%)
7.4%
28.0%
1.1%
43.8%
21.5%
-30.3%
8.1%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 10 of 41
_ 511
In terms of the geographical areas, Spain's contribution stood at 59.2% of revenues, totalling
€3,943.8 million, an increase of 7.4%. With regards to the different areas of activity, the Envi-
ronmental Area's revenues rose by 7.1% due to the increase in all main activities of the waste
management chain, especially collection and street cleaning. The Water Area's revenues rose by
3.8%, due to a progressive recovery in the volumes invoiced in end-to-end cycle concessions and
water network actions. The Construction Area's revenues increased by 4.3%, with the develop-
ment of projects in progress being somewhat higher than the expected execution rates planned
for the period. The demand increased moderately in the Cement Area when compared to the
figures of 2020; there was more prominent growth in the first half of the year, with revenues up
by 10.5%. The Real Estate activity, which is concentrated entirely in Spain, has seen its revenues
increase substantially (by €113.1 million), due both to the aforementioned integration of the Realia
and Jezzine groups within its parent company, FCC Inmobiliaria, and to its increased activity in
the sale of properties this business year. Lastly, it is worth mentioning that the Concessions Area
(included in the Corporate Services and Others heading, after completing the sale of some of its
most significant concessions at the end of March 2021) reduces its contribution to only the first
quarter of this business year, with €52.7 million in revenues this year, compared to €121.5 million
the previous business year.
Moreover, revenues in the United Kingdom were up by 28% to €855.6 million, largely due to the
recovery of the municipal waste treatment plant activity and the start of several contracts of the
Construction Area.
In the EU area, a 1.1% increase was recorded in the area of Rest of Europe and Others, amount-
ing to €811.5 million. This is largely due to an increase in revenues linked to treatment activity in
Central Europe. In Construction, the level of activity increased, thanks to a higher contribution,
especially in the Netherlands, which compensated for the completion and progress of other pro-
jects (Ireland and Romania).
Developments in the Czech Republic, which is of particular relative importance within the EU,
increased substantially by 21.5% to €346.6 million, with a larger increase in waste management
services in the Environment Area and a more moderate increase in the end-to-end water cycle
activity in the Water Area.
Revenues in Latin America and the USA increased significantly by 43.8% to €376 million, largely
due to the faster pace of project performance in the Construction Area, especially in Mexico,
Chile, and Colombia. In the USA, revenues concentrated in the Environment Area in municipal
waste collection services such as recycling increased significantly (38.2%), thanks to a new con-
tract coming into force in Nebraska and other contracts in Florida for municipal waste collection
and green space services.
Lastly, in the Middle East and Africa, activity fell by 30.3%, due to the very high level of progress
and reduced contribution from some very significant contracts in Saudi Arabia in the Construction
Area and for the same reason, although with less of an impact, in the Water Area, especially due
to the termination of a Technology and Networks activity contract on the north coast of Egypt.
% REVENUE BY GEOGRAPHICAL AREA
12.6%
4.9%
5.6%
5.2%
12.8%
58.9%
Spain
UK
Rest of Europe & Others
Middle East & Africa
Latin America and USA
Czech Rep.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 11 of 41
_ 512
2.1.4.2. Gross Operating Profit (EBITDA)
The Gross Operating Profit for the business year amounted to €1,126.6 million, an increase of
7.6% compared to the previous year. It should be noted that this amount represents a 16.9%
margin over income, almost identical to the 17.0% achieved in 2020, but with three significant
key components: (i) the sale of a large amount of CO2 rights in the Cement Area in 2020, with a
lower contribution of €51.1 million this year, (ii) the deconsolidation, by sale, of certain transport
concession assets at 31 March 2021, which has led to a lower contribution of €55.1 million and
(iii) the entry into consolidation of the Realia and Jezzine group assets from 1 November 2021,
with a contribution of €16.7 million in the business year. Adjusted for these three components,
those exceptional in nature and the change in scope, EBITDA in 2021 would have grown by
17.9%. Similarly, with both business years being adjusted for the aforementioned effects, the
gross operating margin would have increased significantly to 16.8% in 2021 compared to 15.3%
in the previous year.
By business area, the most noteworthy developments have been:
The Environment Area reached €535.1 million, a 18.7% increase, which is higher than the reve-
nues distributed across all activities of the value chain. The operating margin was 16.5%, com-
pared to 15.6% the previous business year, thanks to the impact of higher treatment/recycling
activity volumes and the increase in related prices, in particular, in the UK and Central Europe.
The Water Area reported €298.9 million, up by 5.7% when compared to last year's figures, sup-
ported by an increased contribution from concessions and services in all the jurisdictions where
it is present, and which offset the lower contribution made by the Technology and Networks seg-
ments internationally. The margin therefore grew to 25.6% compared to 23.8% in 2020.
Moreover, the Construction Area reported €102.6 million, a significant increase of 91.5% when
compared to 2020, in line with the scheduled projects and with a substantial improvement in the
recovery of the development pace compared to the downtime in 2020 and concentrated in the
first half of the last business year in international projects. This allowed operating profit to increase
to 6.2% compared to 3.3% in the previous year.
In the Cement Area, it reached €76.1 million, a substantial reduction of 45.6% compared to
€139.9 million in the previous year. This mainly reflects the aforementioned effect of lower reve-
nues from CO2 sales of €51.1 million this year, together with a more moderate increase in demand
in the local and export markets in the second half of the year and increases in energy prices in
the same period.
Real Estate activity recorded a notable increase to €40 million, compared to a negative figure of
€3.8 million in 2020, due to the contribution of Realia and Jezzine (€16.7 million) since last No-
vember, as well as the higher profitability generated by the sale of properties by the head of the
area, FCC Inmobiliaria.
It should be noted that the Corporate Services and Others heading includes the Infrastructure
Concessions activity, to which the Cedinsa subgroup's activity contributed until the end of the
first quarter of this business year.
% EBITDA BY BUSINESS AREA
6.8%
9.1%
3.6%
6.5%
26.5%
47.5%
Environment
Water
Cement
Construction
Real Estate
Corporate
The performance of the utilities areas of Environment and Water maintained their high contribution
to operating profit of 74% for the year as a whole.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 12 of 41
_ 513
2.1.4.3. Net Operating Profit (EBIT)
2.1.4.4.3. Profit/(loss) of equity-accounted investees
Net operating profit amounted to €802.2 million, 40.1% more than in the previous year. This in-
crease reflects, in addition to the changes in gross operating profit, two other significant factors
in Other Operating Income/(Losses), namely: (i) the accounting impact of the full consolidation of
Realia, by raising the previously recorded level of the value of its rental real estate assets, with
a positive result of €241.7 million and (ii) the negative adjustment of €136 million in the value of
property, plant and equipment and goodwill in the Cement Area.
2.1.4.4. Earnings before Taxes (EBT) from continuing operations
Profit before tax from continuing operations amounted to €807.5 million, up significantly from
€429.9 million in 2020. This was due to the combined good performance of operating activities
and a positive impact from financial results.
Thus, the performance was as follows for the various components:
2.1.4.4.1. Financial income
The net financial result amounted to €-110.5 million, compared to €-154 million the previous year,
a reduction of 28.2%. This reflects the effect of the contraction in the average volume of financial
debt recorded during the year, as well as reduction in its cost, and the elimination of the sale of
collection rights without recourse.
2.1.4.4.2. Miscellaneous financial results
This heading, which has no impact on cash flow, amounted to €57.5 million during the business
year, compared to €-51.1 million last year. The is mainly due to the differential behaviour of the
exchange rate of certain currencies, representing a positive impact of €24.5 million this year, com-
pared to the negative impact of €51.3 million during the same period of 2020. A positive effect
of €26.6 million is added to this, resulting from the sale of various concession and Construction
Area investees.
The contribution from investee companies amounted to €58.2 million, similar to figure from the
previous business year of €62.1 million. In addition to the increase in the contribution from various
investees in the different operating areas of the business, this slight reduction was the result of a
contrasting number of factors compared to the previous year, the most significant of which were
on the positive side of the balance sheet: (i) the 45 million euro profit from the sale of most of the
energy assets in which the Group has an interest, which includes both the gain up to the time
of sale and the gain on disposal, (ii) the 17.6 million euro effect of the closing of the sale of the
Ceal 9 and Urbicsa transport concessions and, also, (iii) the 46.7 million euro adjustment for the
acquisition of control of Realia and its change of consolidation from the equity method to the full
consolidation method.
2.1.4.5. Income attributable to the parent company
Attributable net income for the business year 2021 amounts to 580.1 million euros, a significant
increase compared to 262.2 million euros in the previous business year. This performance is
down to the increase in pre-tax profit described above. A corporation tax expense of 130.2 million
euros was also recorded, in line with the pre-tax profit obtained, together with profit attributable to
non-controlling interests of 97.1 million euros, compared to 81.4 million euros in the previous year,
reflecting the increase in the Group's consolidated profit attributable to those interests, mainly in
the Water Area and to a lesser extent in the Real Estate 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. 21
Dec. 20
Chg. (%)
6,475.4
1,066.0
16.5%
775.9
12.0%
580.1
6,132.6
1,032.7
16.8%
567.7
9.3%
262.2
5.6%
3.2%
-0.4 p.p
36.7%
2.7 p.p
121.2%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 13 of 41
_ 514
2.1.5. Balance Sheet
2.1.5.1. Property, Plant and Equipment and Real Estate Investments
Intangible fixed and non-current assets
Property, Plant and Equipment and Real Estate Investments
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
Equity attributable to shareholders of the parent company
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
(Millions of euros)
Dec. 21
Dec. 20
Chg. (Mn€)
2.445,2
4.931,7
533,8
604,0
559,2
9.074,1
0,0
1.107,3
2.340,9
184,4
2.437,9
2.810,2
722,8
580,9
578,7
7.130,4
1.392,3
765,6
2.095,6
228,7
1.535,5
1.222,1
7,3
2.121,5
(189,0)
23,1
(19,5)
1.943,7
(1.392,3)
341,7
245,3
(44,3)
313,4
5.168,1
5.704,2
(536,1)
14.242,2
12.834,6
1.407,6
3.007,1
1.433,6
4.440,7
192,2
1.167,3
3.294,3
438,7
473,4
5.565,9
0,0
147,9
1.651,2
169,0
2.288,3
620,4
2.908,7
193,0
1.064,4
3.543,3
434,0
296,7
5.531,3
1.051,3
195,2
705,2
169,2
2.267,5
2.273,7
718,8
813,2
1.532,0
(0,8)
102,9
(249,0)
4,7
176,7
34,6
(1.051,3)
(47,3)
946,0
(0,2)
(6,2)
4.235,6
4.394,6
(159,0)
14.242,2
12.834,6
1.407,6
Property, Plant and Equipment and Real Estate Investments reached €4,931.7 million at the end
of the year, with a €2,121.5 million increase. This increase is mainly explained by the increase in
Real Estate investments, with €1,470.5 million from the rental assets incorporated after taking
control of Realia, and the ones from Jezzine, amounting to €600.4 million.
2.1.5.2. Investments accounted for using the equity method
The epigraph entitled investments accounted for using the equity method amounted to €533.8
million at the end of the year, with the following breakdown of the most significant investments in
equity:
1) €108.3 million for the stake in companies in the Environment Area (recycling and municipal
services, mainly in Spain and the UK).
2) €83.8 million for the stakes held in various transport infrastructure and equipment conces-
sions.
3) €38.7 million for stakes held in companies in the Water Area, largely concessionary compa-
nies that manage services abroad (North Africa and Spain).
4) €42.0 million from the subsidiaries of the parent company in the Cement Area.
5) €38.4 million from investee companies in the Real Estate Area.
The reduction in the balance of this heading during the year is mainly due to the change in Realia's
consolidation method, following its takeover in the last quarter of the year.
This epigraph also includes a further €222.6 million for the remaining investments in own funds for
other participations together with loans granted to subsidiaries.
2.1.5.3. Assets held for sale
This heading reduces its balance to zero compared to the €1,392.3 million recorded at the end of
2020. Its complete reduction is due to the disposal of certain infrastructure concessions located
in Spain, following their sale at the end of the first quarter of the business year.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 14 of 41
_ 515
2.1.5.4. Cash and cash equivalents
The balance of the Cash and cash equivalents heading amounts to €1,535.5 million at the end
of the business year, €313.4 million more than the figure at the end of last year, distributed as
follows:
1) In the perimeter with recourse, cash and equivalents totalled €414.8 million.
2) In the perimeter without recourse, cash and equivalents amounted to €1,120.7 million.
2.1.5.5. Equity
Equity at the end of the period amounted to €4,440.7 million, compared to €2,908.7 million at
the end of 2020. The notable increase of 52.7% is mainly due to the contribution of the net profit
achieved in the period of €677.3 million and the effect of the increase in non-controlling interests
due to the full consolidation of Realia.
2.1.5.6. Financial Debt
Bank borrowings
Debt instruments and other loans
Payables due to financial leases
Other financial liabilities
Gross Financial Debt
(Millions of euros)
Dec. 21
Dec. 20
Chg. (M€)
1,742.6
3,031.5
37.3
134.1
820.0
3,230.3
50.2
148.0
4,945.5
4,248.5
922.6
(198.8)
(12.9)
(13.9)
697.0
(269.1)
427.9
(427.6)
855.5
Treasury and other current financial assets
(1,719.8)
(1,450.7)
Net Financial Debt
Net financial debt with recourse
Net financial debt without recourse
3,225.7
(326.0)
3,551.7
2,797.8
101.6
2,696.2
At year-end, gross financial debt increased by 16.4% to €697 million.
This increase is largely due to the entry into consolidation in the fourth quarter of the Realia Group
and Jezzine in the Real Estate Area, with an overall balance of €966.6 million at the end of the
year.
Regarding its temporary structure, it should be noted that 33.4% has a short-term maturity, worth
€1,651.2 million. Most of this corresponds to the principal amount of the bonds issued for €700
million by the head of the Water Area and another €217.2 million by its subsidiary in the Czech
Republic, maturing in June and July 2022, respectively. Another 210.5 million of short-term debt
corresponds to marketable securities, largely commercial paper issued on the Irish Stock Ex-
change by the Group's parent company and that of the Environment Area.
The balance of net financial debt increased by 15.3% in the period to €3,225.7 million. This is
largely explained by the aforementioned increase in the Real Estate Area, which generated a
balance of €889.7 million at year-end. This effect was mitigated by the greater contribution of
cash generated by the Group's operations, which includes the effect of the reduction of €109.1
million in non-recourse credit assignments in the year, mainly in the Water Area, which meant their
complete elimination at the end of the first half of the year for the consolidated Group as a whole.
All of the net financial debt is without recourse and is mostly allocated to the Water Utilities and
Environment Areas (its Market debt is rated as "Investment Grade") and in the recurrent activity of
rental property in Real Estate. As a result, the Group's parent company had a net cash position of
€326.0 million at the end of the year.
BREAKDOWN OF NET FINANCIAL DEBT WITHOUT RECOURSE BY BUSINESS AREA
22.4%
3.6%
36.4%
37.6%
Environment
Water
Cement
Real Estate
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 15 of 41
_ 516
Net financial debt without recourse to the Group's parent company is structured as follows:
2.1.6. Cash Flow
(i) The Water Area accounts for €1,247.6 million, of which, in addition to the financing of corporate
bonds at the parent company, another €203.2 million correspond to the business in the Czech
Republic and the rest to various concessions of the end-to-end water cycle; (ii) the Environment
Area accounts for €1,289.7 million, most of which corresponds to long-term bonds issued at the
end of 2019 by the area's parent company, another €143.9 million to the activity in the UK, and
the rest mainly to the project financing of three waste treatment and recycling plants in Spain
(iii) the Real Estate Area has €889.7 million, concentrated in its rental property activity; (iv) the
Cement Area accounted for €124.4 million; (iv) and a remaining €0.5 million associated with the
concessions activity.
2.1.5.7 Other current and non-current financial liabilities
The epigraph of other current and non-current financial liabilities totals €607.7 million at the end
of the period. The balance mainly includes the item suppliers of fixed and non-current assets for
operating leases, amounting to €395.5 million. 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.
Gross Operating Profit (EBITDA)
(Increase)/decrease in working capital
Corporation 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
(Millions of euros)
Dec. 21
Dec. 20
Chg. (%)
1,126.6
1,047.5
7.6%
(302.1)
-44.4%
(557.9)
(541.2)
(167.9)
(135.6)
(76.9)
746.2
568.6
182.4
193.1
(99.1)
(269.3)
(259.3)
(96.7)
(43.6)
605.1
75.9
63.8
(151.4)
(137.7)
150.7
40.2%
76.4%
23.3%
3.1%
n/a
185.9%
-34.5%
95.6%
n/a
n/a
(401.5)
-148.1%
(627.7)
(138.4)
Exchange differences, change in consolidation scope, etc.
Increase/(decrease) in cash and cash equivalents
1.8
313.4
(61.5)
-102.9%
3.6
n/a
2.1.6.1. Operating cash flow
The operating cash flow generated in the year business amounted to €746.2 million, 23.3% more
than in the previous year. It is noteworthy that this figure is obtained even though the current
operating working capital was up €167.9 million, which includes in this year the elimination of the
balance of non-recourse loan assignments for €109.1 million, most of them in the Water Area, as
was done in the Environment Area in the previous year, with the common aim of optimising and
reducing the Group's financial costs.
The heading collections/(payment) of corporation tax shows an outflow of €135.6 million com-
pared to €96.7 million in 2020, a variation that is explained by the increase in net income during
this business year and in line with the accounting basis affecting the accrual of taxes.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 16 of 41
_ 517
The heading other operating cash flow includes an outflow of €76.9 million compared to €43.6
million the previous business year, due to the application of provisions mainly in the Construction
and Environment Area.
The breakdown of net investments by business area, excluding other cash flows from investment
activities, in terms of payments and collections, is as follows:
2.1.6.2. Investing cash flow
The investment cash flow represents a generation of €193.1 million euros compared to an appli-
cation of €401.5 million in the previous business year.
The most significant item of this first period corresponds to earnings for transport concession
divestment transactions, for a cash entry of 377.1 million euros, so proceeds from disposals
amounted to 568.6 million euros, when compared to 75.9 million euros of the last business year.
In addition, last July, 93 million euros were collected from the sale of various energy assets, to-
gether with others distributed among other areas, such as Construction and Real Estate, which
added the remaining 98.5 million euros.
With regards to payments for investments totalling 557.9 million euros, these are similar to those
during the last year. By business area, the Environment Area's investments represented 299.4
million euros, highlighting the investment required for the construction and expansion of the
Loeches and Campello treatment plants, for a combined amount of 42.8 million euros. In the UK,
among the most significant investments is the one made in the progress of the development of
the Lostock energy recovery plant for 28.6 million euros, as well as the investment of 30 million
euros in the USA, out of a total of 69.6 million euros invested in the country, for the purchase of
an urban waste collection company in the state of Texas last December.
In the Water Area, payments for investments amounted to 107.1 million euros, of which 24.3
million euros are for new contracts, among which Mexico, Colombia, and Spain stand out, dis-
tributed among different concession contracts for the operation of hydraulic plants and the end-
to-end cycle.
Lastly, included in the Real Estate heading is 83.9 million euros invested in the acquisition of an
additional 13.12% of the Realia Group's capital by the parent company in the Real Estate Area,
FCC Inmobiliaria, which allowed it to gain control and full consolidation.
Environment
Water
Construction
Cement
Real Estate
Corporate serv. etc. & adjustments
Net investments (Payments - Collections)
(Millions of euros)
Dec. 21
Dec. 20
Chg. (Mn€)
(291.8)
(86.8)
0.5
(10.9)
(64.9)
464.6
10.7
(283.1)
(134.1)
(7.6)
(10.4)
0.0
(30.1)
(465.3)
(8.7)
47.3
8.1
(0.5)
(64.9)
494.7
476.0
Other investment flows amounted to 182.4 million euros, of which 116.4 million euros came from
the Real Estate Area, largely due to the entry of the balance of cash and cash equivalents from
the consolidation of the Realia Group and Jezzine, as well as a further 36.9 million euros in Water
from the cancellation and recovery of deposits and cash linked to various projects.
2.1.6.3. Financing cash flow
The consolidated cash flow from financing in the year represents an application of 627.7 million
euros compared to 138.4 million euros in the previous business year. Interest payments amount-
ed to 99.1 million euros, mainly in the Water and Environment Areas, with a substantial reduction
compared to the previous year, in line with the reduction in the average balance of financial debt
this year.
The heading "Proceeds from/(payments on) financial liabilities" includes an application of the fi-
nancing flows, with a net reduction worth 269.3 million euros in the business year, extending and
increasing the 137.7 million euros recorded in the previous year. In addition, the heading other
financing flows includes an application of 259.3 million euros, which essentially includes the pay-
ment of 189 million euros for the acquisition of non-controlling interests in companies in the Real
Estate Area (Hnos. Revilla in Realia) and the payment of dividends to shareholders of the parent
company and minority shareholders of the rest of the consolidated group for a total amount of
63.1 million euros.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 17 of 41
_ 518
2.1.6.4 Change in cash and cash equivalents
As a result of the performance of the different cash flow components, the FCC Group's cash
position increased by 313.4 million euros since December 2020, with a balance of 1,535.5 million
euros at the close of the business year.
2.1.7. Analysis by Business Areas
2.1.7.1. Environment
The Environment division contributed 47.5% of the Group's EBITDA in the 2021 business year.
Some 80.7% of its activity is focused on the provision of essential waste collection, treatment and
disposal services, as well as street cleaning. The remaining 19.3% corresponds to other types
of urban environmental activities, such as the conservation of green areas or sewage systems.
In Spain, it provides services in more than 3,500 municipalities and serves a population of more
than 31 million inhabitants. It is worth mentioning the important weight of the urban waste man-
agement and street cleaning services. In the UK, it focuses on urban waste treatment, recovery
and disposal activities and serves more than 22 million people. In Central Europe, mainly Austria
and the Czech Republic, FCC is present across the entire waste management chain (collection,
treatment and disposal). FCC's activities in the US include both the collection and end-to-end
retrieval of municipal waste.
Revenues at the Environment Area were up 12.4% to reach 3,244.9 million euros at the end of the
business year. The waste collection and street cleaning activity's revenues rose by 8.5% to 1,550
million euros, thanks to the new contracts, especially in Spain and the US, as well as the greater
contribution in the activity of street cleaning and other similar services in Spain. Waste treatment
activity was up 21.4% to €1,067.5 million, largely due to the recovery of the activities in the UK
and the increase in activity in Central Europe, alongside the activity of a new plant in the USA.
Breakdown of revenue by geographical area
(Millions of euros)
Spain
United Kingdom
Central Europe
US and others
Total
Dec. 21
Dec. 20
Chg. (%)
1,837.2
1,715.8
708.3
550.7
148.7
605.3
464.6
102.5
3,244.9
2,888.2
7.1%
17.0%
18.5%
45.1%
12.4%
By geographical area, revenues in Spain were up 7.1% compared to the previous year to reach
1,837.2 million euros, due to an increased contribution from the Campello treatment plant, plus
the contribution made by the new street cleaning and waste collection contracts. Also significant
has been the increased activity in cleaning and green areas due to a return to normal after the
partial disruptions suffered in certain periods of last year.
2.1.7.1.1. Earnings
Turnover
Waste collection and street cleaning
Waste processing
Other services
EBITDA
EBITDA Margin
EBIT
EBIT margin
(Millions of euros)
Dec. 21
Dec. 20
Chg. (%)
In the UK, turnover increased by 17% to 708.3 million euros, mainly due to the recovery in the
recycling and reduction of urban waste, after stoppages and lower volumes treated in the previ-
ous year.
3,244.9
1,550.0
1,067.5
627.4
535.1
16.5%
285.4
8.8%
2,888.2
1,428.6
879.0
580.6
450.9
15.6%
215.7
7.5%
12.4%
8.5%
21.4%
8.1%
18.7%
0.9 p.p
32.3%
1.3 p.p
In central Europe, revenues grew by 18.5% to 550.7 million euros due to the higher volume of ac-
tivity in almost all countries in which the company operates, mainly the Czech Republic, Slovakia,
and Poland, in urban collection and treatment, as well as due to the general increase in the price
of recycled by-products.
Last but not least, turnover in the USA and other markets increased by 45.1% to 148.7 million
euros, mainly due to the contribution from new urban collection contracts in Omaha (Nebraska)
and Volusia (Florida), as well as the treatment and recovery plants in Texas.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 18 of 41
_ 519
BREAKDOWN OF REVENUE BY GEOGRAPHICAL AREA
21.8%
56.6%
17.0%
4.6%
Spain
UK
Central Europe
US and Others
The gross operating profit (EBITDA) increased by a remarkable 18.7% to 535.1 million euros due
to the aforementioned development of revenues and the improvement in volumes treated and
prices in the treatment and recovery activities. This has allowed the operating margin to recover
by 0.9 per cent and to reach 16.5%, close to pre-pandemic profitability levels.
The net operating profit (EBIT) increased by 32.3% over the previous year to 285.4 million euros,
thanks to the development of the different components mentioned in the EBITDA.
Breakdown of backlog by geographical area
(Millions of euros)
Spain
International
Total
Dec. 21
Dec. 20
Chg. (%)
6,300.6
4,445.8
10,746.4
4,872.2
4,312.1
9,184.3
29.3%
3.1%
17.0%
At the end of last December, the area's backlog increased by 17% to 10,746.4 million euros. In
Spain, it amounts to 6,300.6 million euros, where the contribution of street collection and cleaning
in Barcelona stands out with 903.2 million euros, as well as other contracts in the city of Madrid,
for a total amount of 682.6 million euros. In the rest of the territorial areas as a whole, the port-
folio of services also increased by 3.1% to 4,445.8 million euros, highlighting the new contracts
secured in the UK and the USA.
2.1.7.1.2. Financial Debt
Net Financial Debt
(Millions of euros)
Dec. 21
1.289,7
Dec. 20
Chg. (Mn€)
1.330,2
(40,5)
Financial debt decreased slightly in the year to 1,289.7 million euros. Its main balance corre-
sponds to the issuance of two green bonds and a smaller amount of euro commercial paper, with
a total accounting balance exceeding 70% of the total at year-end. The remainder mainly finances
activity in the UK and is linked to project financing of waste treatment and recycling plants.
2.1.7.2. Water
The Water Area contributed 26.5% of FCC Group EBITDA in the period. 90.1% of its activity is
focused on public service concession management related to the end-to-end water cycle (collec-
tion, treatment, storage and distribution) and the operation of different types of water infrastruc-
tures; the remaining 9.9% 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 1,100 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 its activity
centres on the design, equipping, and operation of processing plants. Overall, the Water Area
provides supply and/or sanitation services to more than 29 million inhabitants.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 19 of 41
_ 520
2.1.7.2.1. Earnings
Turnover
Concessions and services
Technology and networks
EBITDA
EBITDA Margin
EBIT
EBIT margin
(Millions of euros)
Dec. 21
Dec. 20
Chg. (%)
1,169.5
1,053.3
116.2
298.9
25.6%
181.3
15.5%
1,188.3
1,016.6
171.7
282.9
23.8%
167.4
14.1%
-1.6%
3.6%
-32.3%
5.7%
1.8 p.p
8.3%
1.4 p.p
Revenues fell slightly in the year to 1,169.5 million euros, due to decreased activity in the devel-
opment of hydraulic assets. Revenues of the concessions and services and core business ac-
tivity were up by 3.6% to 1,053.3 million euros, due to the higher volume of activity in Spain and
abroad. Moreover, the activity of the Technology and Networks are dropped by 32.3%, due to the
entry into the completion phase of a number of one-off international projects, which was partially
offset by the growth of this activity in Spain.
Breakdown of revenue by geographical area
(Millions of euros)
By geographical area, revenues in Spain increased by 3.8% to 814.2 million euros. This growth
has occurred in each and every one of the activities, with Technology and Networks standing out
due to both the contracts linked to one-off projects and the implementation of the investment
plans of the concession contracts. Regarding the latter activity, the growth in m3 billed was 0.5%,
with a progressive recovery towards pre-pandemic demand levels.
Internationally, Central Europe grew by 8.2% to €113.6 million following the tariff update in the
end-to-end cycle activity in the Czech Republic and the favourable performance of the exchange
rate of the Czech koruna (+3.2% in the year). In the Rest of Europe, revenues increased by 2.9%
to 80.8 million euros, driven by the tariff increase for the Aque di Caltanissetta (IT) concession
contract and the higher volume of activity in Technology and Networks for this contract.
The Middle East, Africa, and Others accounted for the fall in revenues in the Area to 112.4 million
euros. This decrease was concentrated in the Technology and Networks business, almost entirely
due to the slowdown in the almost completed construction of a wastewater treatment plant in
Egypt.
Lastly, in Latin America, turnover decreased by 15.5% to 48.5 million euros, due to the lower
contribution in the Technology and Networks business, both in Mexico and Colombia, of projects
that are already at very advanced stages of execution and which have not been offset by others
recently awarded, together with the increase in the end-to-end cycle business in Colombia.
Dec. 21
Dec. 20
Chg. (%)
BREAKDOWN OF REVENUE BY GEOGRAPHICAL AREA
Spain
Central Europe
Middle East, Africa and Others
Rest of Europe (France, Portugal and Italy)
Latin America
Total
814.2
113.6
112.4
80.8
48.5
784.3
105.0
163.1
78.5
57.4
3.8%
8.2%
-31.1%
2.9%
-15.5%
1,169.5
1,188.3
-1.6%
69.6%
9.6%
9.7%
4.1%
7.0%
Spain
Middle East, Africa and Others
Central Europe
Latinoamérica
Latin America
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 20 of 41
_ 521
Gross operating profit (EBITDA) increased by 5.7% and totalled 298.9 million euros, due to the
higher concession activity that more than compensated for the lower contribution of the Technol-
ogy and Networks business and enabled the operating margin to grow to 25.6%, compared to
23.8% the previous year.
Net operating profit (EBIT) was up by 8.3% when compared to last year's figures, totalling 181.3
million euros, due to the performance of gross operating profit, as discussed previously.
Turnover
EBITDA
EBITDA Margin
EBIT
Breakdown of backlog by geographical area
(Millions of euros)
EBIT margin
Dec. 21
1,659.6
102.6
6.2%
71.1
4.3%
(Millions of euros)
Dec. 20
Chg. (%)
1,611.0
53.6
3.3%
20.9
1.3%
3.0%
91.5%
2.9 p.p
240.2%
3.0 p.p
Spain
International
Total
Dec. 21
Dec. 20
Chg. (%)
7,149.6
8,211.5
7,224.7
7,801.2
15,361.1
15,025.9
-1.0%
5.3%
2.2%
Revenues in the area were up by 3% to 1,659.6 million euros, largely due to the steady pace of
project performance in Spain Europe and Latin America, offsetting the lower activity levels in the
Middle East.
Breakdown of revenue by geographical area
(Millions of euros)
The backlog at year-end totalled €15,361.1 million, 2.2% more than in 2020. In Spain, several
contracts for the island of Tenerife, the end-to-end management contract in Salamanca, and the
La Línea contract in Cádiz deserve a special mention. In the international area, the contract for
comprehensive improvement and management in Los Cabos (Mexico) and the end-to-end cycle
of Mantes-la-Jolie in France are also worth mentioning.
Spain
Rest of Europe and Others
Latin America and the USA
Middle East and Africa
2.1.7.2.2. Fiancial Debt
Net Financial Debt
(Millions of euros)
Total
Dec. 21
1,247.6
Dec. 20
Chg. (Mn€)
1,177.6
70.0
Net financial debt reached 1,247.6 million euros at the end of the business year. The increase in
net debt in the year is due to the complete elimination of loan assignments in the year amounting
to 107.1 million euros.
2.1.7.3. Construction
The Construction Area contributed 9.1% of the FCC Group's EBITDA at the end of the business
year. Its activity focuses on the design and construction of large civil, industrial and building
works, with a selective presence in certain regions, currently around 20 countries. Special men-
tion should go to participation in major works like railways, tunnels, bridges and football stadiums
that constituted a major part of the activity.
By geographical area, turnover in Spain increased by 4.3% to 885.2 million euros, due to the
good pace of execution in the remodelling of the Santiago Bernabéu football stadium, as well as
in other minor public works such as the remodelling of the Plaza de España and the island ring
road in Tenerife.
Similarly, in the Rest of Europe and other markets, turnover grew by 7.5% compared to the previ-
ous year, reaching 419.2 million euros, thanks to the greater contribution of projects under devel-
opment, such as the A-9 in the Netherlands and the A-465 motorway in Wales, which compen-
sated for the lower contribution of others already completed, such as Grangegorman in Ireland.
In Latin America and the USA, revenues grew significantly, up to 209.4 million euros, largely due
to the increased contribution of the Maya Train in Mexico and the commencement of a road
project in Chile.
Dec. 21
Dec. 20
Chg. (%)
885,2
419,2
209,4
145,8
848,8
390,0
126,0
246,2
1.659,6
1.611,0
4,3%
7,5%
66,2%
-40,8%
3,0%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 21 of 41
_ 522
The drop in revenues is mainly concentrated in the Middle East, down to 40.8% to 145.8 million
euros, essentially due to the lower activity reported in the construction of the Riyadh metro in
Saudi Arabia as the project nears completion.
The revenue portfolio drops to 3,981.3 million, more sharply in the International realm, due both
to the progress of contracts and the adjustments made to the projects to be carried out in certain
countries, which have yet to be offset by new contracts.
BREAKDOWN OF REVENUE BY GEOGRAPHICAL AREA
Breakdown of the Backlog by Activity Segment
(Millions of euros)
8.8%
25.3%
Spain
Middle East and Africa
Europe and Others
Latin America & USA
Civil engineering works
Building
Industrial Projects
Total
Dec. 21
Dec. 20
Chg. (%)
3,301.6
4,121.5
426.3
253.4
695.0
339.3
3,981.3
5,155.8
-19.9%
-38.7%
-25.3%
-22.8%
Civil engineering works continue to be the dominating segment by type of activity, representing
82.9% of the total.
53,.3%
12.6%
2.1.7.4. Cement
The Cement Area contributed 6.8% of the FCC Group's EBITDA in the business year. This activity
was undertaken by the CPV Group, which focuses on manufacturing cement and by-products,
with 7 main production centres in Spain and 1 in Tunisia, in addition to a minority stake of 45% in
Giant Cement, which operates a number of factories on the east coast of the US.
Gross operating profit increased significantly by 91.5% to 102.6 million euros compared to 53.6
million euros in the previous year. This increase is based on the aforementioned development of
revenues and especially on the disappearance of the impact on various projects in the previous
year caused by the slowdown and stoppages due to by the measures taken to combat the health
crisis. As a result, the operating margin for the year amounted to 6.2%, similar to the level reached
in previous quarters.
Net operating profit totalled 71.1 million euros, compared to 20.9 million euros for the previous
year, thanks to the performance of gross operating earnings, as mentioned previously.
Breakdown of backlog by geographical area
(Millions of euros)
Spain
International
Total
1,368.0
2,613.3
3,981.3
1,628.4
3,527.4
5,155.8
-16.0%
-25.9%
-22.8%
Dec. 21
Dec. 20
Chg. (%)
EBIT
2.1.7.4.1. Earnings
Turnover
Cement
Other
EBITDA
EBITDA Margin
EBIT margin
(Millions of euros)
Dec. 21
Dec. 20
Chg. (%)
433.8
393.2
40.6
76.1
17.5%
(90.3)
-20.8%
382.6
345.2
37.4
139.9
36.6%
106.8
27.9%
13.4%
13.9%
8.6%
-45.6%
-19.0 p.p
-184.6%
-48.7 p.p
The area's revenues rose 13.4% compared to last year and amount to 433.8 million euros, due
to an increase in volumes invoiced in Spain as well as an increase in exports from local markets
(Spain and to a lesser extent Tunisia).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 22 of 41
_ 523
Breakdown of revenue by geographical area
(Millions of euros)
Spain
Tunisia
Miscellaneous (exports)
Total
Dec. 21
Dec. 20
Chg. (%)
262.9
57.8
113.1
433.8
237.9
57.8
86.9
382.6
10.5%
0.0%
30.1%
13.4%
With regards to the geographical areas, the turnover in Spain was up by 10.5% to 262.9 million
euros, due to the significant increase in volumes, which concentrated in the first half of the year,
together with price stability, all derived from the drop in demand since last year, mostly of private
origin.
In the local Tunisian market, turnover remained at the same level as the previous year at
Moreover, EBITDA stood at 76.1 million euros, 45.6% down when compared to 139.9 million eu-
ros during the previous year. This drop is largely explained by the impact of the sale of a large vol-
ume of CO2 rights during the previous year, which amounted to 58.9 million euros, as compared
to 7.8 million euros during this year. Excluding this differentiating factor, operating profit excluding
CO2 was down 15.6% compared to the previous year, mainly due to the effect of the increase in
electricity and fuel prices in the second half of 2021.
The net operating profit was -90.3 million euros, mainly due to a 136-million-euro adjustment to
the value of various property, plant and equipment and goodwill, in order to better reflect their
estimated future cash generation capacity.
2.1.7.4.2. Financial Debt
(Millions of euros)
Dec. 21
124,4
Dec. 20
Chg. (Mn€)
173,7
(49,3)
57.8 million euros, where the increase in prices compensated for the slight decrease in volumes.
Net financial debt
Moreover, export revenues increased by a noteworthy 30.1% to 113.1 million euros, following an
increase in exports, mainly to the EU, from Spain, in particular to the UK and France, as well as
those from Tunisia.
BREAKDOWN OF REVENUE BY GEOGRAPHICAL AREA
13.3%
26.1%
Spain
Tunisia
Others
60.6%
Net financial debt, entirely without recourse to the Group's parent company, dropped to 49.3
million euros when compared to December of last year, reaching 124.4 million euros, as a conse-
quence of the application of the free cash flow generated in the year as a whole to the reduction
of financial indebtedness. The Cement Area therefore reaches a new milestone in the progressive
strengthening of its financial soundness.
2.1.7.5. Real Estate
The Real Estate Area will contribute 3.6% of the FCC Group's EBITDA in 2021. Its activity is cen-
tred in Spain and is structured in two main activities, with the first being the holding, development,
and operation of all types of real estate on a rental basis (mainly offices, premises, and shopping
centres). This is in addition to the development for sale of properties, which includes the urban
management of its land portfolio, providing development management services for third parties.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 23 of 41
_ 524
2.1.7.5.1. Earnings
Turnover
Rentals
Residential Development
EBITDA
EBITDA Margin
EBIT
EBIT margin
(Millions of euros)
Dec. 21
Dec. 20
Chg. (%)
147.9
17.2
130.7
40.0
27.0%
298.3
34.8
0.0
34.8
(3.8)
n/a
n/a
n/a
n/a
-10.9%
38.0 p.p
(3.8)
n/a
n/a
201.7%
-10.9%
The area's revenues amounted to 147.9 million euros in 2021, a substantial increase over the
previous year, due both to the aforementioned entry into the scope using full consolidation of the
Realia Group and Jezzine, and to the increase in revenues from the Development activity, due to
the higher rate of deliveries throughout this business year.
In the Residential Development activity, with 130.7 million euros of revenues in the year, this is
explained by the increase in activity, which in comparable terms (without considering the effect of
the consolidation of the Realia Group), would have grown to 102.3 million euros in this business
year. In addition, the activity has been reinforced by the contribution of the Realia Group for two
months of the year, with 28.4 million euros. The revenues generated were distributed among more
than ten developments, mainly in metropolitan areas of large cities in Spain.
The revenue reported by Rentals was 17.2 million, compared to the lack of a contribution in the
previous year and only two months of this activity in the year. Its revenues are concentrated in
the use of offices (comprising Jezzine's network of properties dedicated to the rental of bank
branches), which accounted for more than 80% of the total, followed by rent generated by the
operation of shopping centres. At year-end, the occupancy rate exceeded 95%, supported by
high occupancy levels in all uses, locations, and the very long-term contract held by the subsidiary
Jezzine in relation to offices.
Similarly, EBITDA performed better this year, with a figure of 40 million euros, due both to the
higher profitability of Development operations and to the effect of the contribution of the new
Rentals activity, with a much higher operating margin. As a result, the operating margin stood at
27% for the year, a percentage that should increase in the coming periods as the contribution of
the Rentals activity is extended to the whole of the annual period.
EBIT contains the effect of the aforementioned change in EBITDA, together with the profit gener-
ated by raising the value of Realia's rental assets by 241.7 million euros to their fair market value.
The latest available market valuation of the area's real estate assets, which totalled 2,941.8 mil-
lion euros at 31 December 2021, is presented below. The majority corresponds to rental assets,
which account for 71% of the total, a figure of 2,086.6 million euros, while Residential Develop-
ment, which includes land at different stages of development together with developments being
marketed, in progress, and completed, accounts for 29% of the total, amounting to 855.2 million
euros.
GAV PER ACTIVITY*
RENTALS
RESIDENTIAL DEVELOPMENT
71%
29%
5.0%
14.9%
80.5%
64.2%
23.7%
12.1%
Rentals
Development
Other Assets
Shopping Centers
Offices
Fully permited land**
Urbanisation
Planning
* Development data of FCC Inmobiliaria, S.A. as at 30 June 2021.
** Includes products in progress and finished products.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 24 of 41
_ 525
2.1.7.5.2. Financial Debt
(Millions of euros)
efficiency and renewable energies. Prevent pollution and protect the environment through
responsible management and consumption of natural resources, and also by minimising the
impact of emissions, discharges and waste generated and managed by the Group's activities.
Net financial debt
Dec. 21
889.7
Dec. 20
Chg. (Mn€)
0
889.7
The balance of financial debt at 31 December 2021 amounted to 889.7 million euros, compared
to zero in the previous year. The net financial indebtedness generated this year is explained in its
entirety by the full consolidation of the Realia Group's debt and that of Jezzine, both at year-end.
Both subsidiaries have long-term financing structures, linked to their rental assets and are sepa-
rate from the head of the area, FCC Inmobiliaria.
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 for the Group of preserving the environment and the responsible use
of available resources, and in line with the vocation of service through activities with a clear en-
vironmental focus, the Group promotes and encourages the following principles throughout the
organisation, on which the contribution to sustainable development is based:
• Continuous improvement: Promote environmental excellence by establishing objectives for
the continuous improvement of performance, minimising the negative impacts of the Group's
processes, products and services, and enhancing the positive impacts.
• Monitoring and control: establish environmental indicator management systems for the oper-
ational control of processes, which provide the necessary knowledge for monitoring, assess-
ment, decision-making and communication of the 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
• Observation of the environment and innovation: Identify the risks and opportunities of the
activities in the face of the changing natural environment in order, among other things, to drive
innovation and the application of new technologies, and also to generate synergies between
the Group's various activities.
• Life cycle of products and services: enhancing environmental considerations in business plan-
ning, procurement of materials and equipment, and relations with suppliers and contractors.
• The necessary participation of all parties: promote the knowledge and application of environ-
mental 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 sustainable environment.
2.3. Business performance. Personnel
Attached is a breakdown of the Group's headcount at the end of the year, by business area:
Áreas
2021
Environment
Water Management
Construction
Cement
Concessions
Central Services and Others
Spain
Abroad
Total
% s/Total
33,909
6,701
3,828
809
50
398
7,643
3,117
2,781
240
71
0
41,552
9,818
6,609
1,049
121
398
70%
16%
11%
2%
0%
1%
TOTAL
45,695
13,852
59,547
100%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 25 of 41
_ 526
3. Liquidity and capital resources
Liquidity
In addition, in 2021 Cementos Portland Valderrivas, S.A. has voluntarily and early repaid all of
its syndicated financing for a total of €115.5 million and has contracted new bilateral financing
facilities (note 20 of Non-current and current financial liabilities in the notes to the 2021 annual
accounts).
In order to optimise its financial position, the Group maintains a proactive liquidity management
policy with daily cash monitoring and forecasts.
The Group covers its liquidity needs through the cash flows generated by the businesses and
through the financial agreements reached.
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.
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 Group
to manage liquidity risk and the factors mitigating said risk.
Capital resources
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. Since then, new funding facilities
were also arranged in the form of credit facilities and bilateral loans. In 2020, FCC Servicios Me-
dioambiente Holding, S.A.U. registered a promissory note programme which it renewed in 2021
for an amount of up to €400 million; it also has financing facilities in the form of credit facilities.
In order to optimise the cost of capital resources, the Group maintains an active policy of interest
rate risk management, constantly monitoring the market and taking different positions depending
mainly on the assets financed.
The performance of interest rates in recent years is shown below.
3.00%
2.70%
2.40%
2.10%
1.80%
1.50%
1.20%
0.90%
0.60%
0.30%
0.00%
-0.30%
-0.60%
Dec.17 Mar.18
Jun.18
Sep.18
Dec.18
Mar.19
Jun.19
Sep.19
Dec.19 Mz20 Jun.20 Sp20 Dec.20 Jan.21 Feb.21 Mar.21 Apr.21 May.21 Jun.21 Jul.21 Aug.21 Sep.21 Oct.21 Nov.21 Dec.21
EURIB 6M
GBP-LIBOR 6M
USD-LIBOR 6M
This section is discussed in greater detail in note 30 to the consolidated financial statements.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 26 of 41
_ 527
4. Major risks and uncertainties
4.2. Major risks and uncertainties
4.1. Risk Management Policy and System
The 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 assur-
ance regarding the achievement of the main objectives defined. This model applies to all Group
companies, as well as to those affiliates where 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 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 Gov-
ernance Report.
The Group operates worldwide and in different sectors and, therefore, its activities are subject 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 activ-
ities, 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 12.1 of the
Non-Financial Information Statement.
With regard to financial risks, which are considered to be the changes in the financial instruments
arranged by the Group due to political, market and other factors, and their repercussions on the
financial statements, the risk management philosophy is consistent with the business strategy,
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
discussed in greater detail in note 30 to the consolidated financial statements, in section E of
the Annual Corporate Governance Report and in section 12.1 of the Non-Financial Information
Statement
In addition, the 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 27 of 41
_ 528
5. Acquisition and disposal of own shares
There have been no further significant events between the end of the reporting period and the
date of authorisation of these financial statements.
On 28 July, the company reported that the Board of Directors, at its meeting held on 27 July,
approved a Temporary stock buy-back programme, which will be closed on 30 September 2021.
This programme is aimed at reducing FCC's share capital through the redemption of its own stock
and it has the following characteristics: the maximum number of shares to be acquired under the
Programme is 1.7 million and the maximum investment of the Programme was 20 million euros.
7. Outlook
The outlook for the performance of the Group's main business areas in 2022 is given below.
Subsequently, on 23 September, the Board of Directors agreed to extend the Temporary stock
buy-back programme for an additional six-month period, which will end on 30 March 2022.
Environmental Services Area
All in all, the treasury stock position at the end of the business year amounted to 2,410,758
shares, equivalent to 0,567% of the capital stock.
The acquisition and disposal of treasury shares carried out during the year are disclosed in Note
18 of the Notes to the consolidated financial statements.
In the countries where the Environmental Services Area operates, the sector is undergoing a
process of transformation, mainly due to the environmental requirements of each country derived
from the European Directives (new opportunities based on the ambitious objectives 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.
Moderate growth is expected in Spain based on the start-up of new contracts already awarded.
The entry into force of the new state waste tax is delayed until 2023, which implies stability in risk
management activity. The contract renewal rate, which currently stands at over 90%, is expected
to be maintained.
No significant changes 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]).
6. Significant events occurring after
the end of the year
On 2 February 2022, FCC Aqualia, S.A. acquired a 60% stake in Georgia Global Utilities JSC for
USD 180 million, a water and renewable energy utility in Georgia. This acquisition is the first step
in a global operation in which FCC Aqualia, S.A. will end up holding 80% of the water utilities
business when a second phase of the agreement is completed, still subject to the fulfilment of
suspensive conditions, which basically consists of the spin-off of the renewable energy business.
On 25 January 2022, FCC Aqualia, S.A. cancelled in advance the loan agreement for variable
interest provisions amounting to 200,000 thousand Euros which was fully drawn down and in
cash at 31 December 2021 (note 20). Also, on 25 January 2022, FCC Aqualia, S.A. signed a new
loan agreement for variable interest provisions maturing on 31 March 2023 for the same amount.
This new contract can be used for the Company's cash requirements and for the redemption of
the GGU bonds mentioned above.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 28 of 41
_ 529
Europe
In Portugal, business opportunities related to soil decontamination activities and new urban san-
itation contracts stand out.
The UK economic forecasts point to a return to the pre-pandemic GDP level by the end of 2021.
Despite the uncertainty in the near future caused by the latest effects of COVID-19, the Office for
Budget Responsibility (OBR) has estimated medium-term GDP growth of around 2% per year,
based on the strength of the labour market and rising tax revenues. Regarding the environment,
after leaving the EU, the UK not only shares the EU's circular economy objectives and recycling
targets, but aims to be more ambitious than the EU in terms of household waste recycling rates
and the portion of waste to landfill, as well as being more aggressive in the timing of implemen-
tation. In addition, the government has a draft "Environmental Law" with ambitious recycling
targets, and with new aspects to monitor compliance, as well as the establishment in 2022 of
a packaging tax, while supporting measures to reduce CO2 emissions. Given the nature of the
sector, which is strongly conditioned by environmental legislation, FCC will continue to keep a
close eye on legislative developments in these areas. The year 2021 has seen a recovery in the
market and prices for recycled products, where the quality of the products remains essential for
their commercialisation, although it will always be subject to some price volatility; the export of
RDF (refuse derived fuels) to Europe has been suffering from trade barriers and the development
of new treatment plants, a positive development for our UK division, which continues with its
strategy of energy production through the waste treatment and disposal.
In Central and Eastern Europe, organic growth is expected in parallel with macroeconomic indi-
cators (inflation and GDP) in each of the countries. A solid municipal and industrial customer base
is maintained with the inclusion in 2022 of the collection and risk management contract in the
Tyrol region (Austria) and the recovery of the collection and treatment contract in Zabrze (Poland).
Recycling prices (especially paper and metals) are expected to remain at the high levels of 2021
and FCC has already been awarded several soil decontamination projects in the Czech Republic
and Slovakia which are expected to be executed in the period 2022-2024.
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 Poland,
must gradually transform their business model, reducing volumes in landfills and increasing treat-
ment and recycling activities in order to adapt to European Union directives. This process entails
legislative changes that are already becoming visible (especially in Poland and Slovakia) and will
require significant technological investments in the coming years in order to maintain a leading
and competitive position in these markets (e.g. incinerators). A number of projects are already
being analysed in each of these countries and could materialise in the short term.
USA
The Group has also begun to promote mechanical biological treatment plants in the USA, in line
with new regulations that are beginning to make it mandatory in some statuses to minimise landfill
disposal. The group's significant experience at European and international level will bring consid-
erable development in this business for FCC, which has a clearly differentiating experience in this
technology compared to its usual competitors in the country.
Water
Expectations for 2022 are for an increasing recovery in the levels of activity that have been affect-
ed by the COVID-19 pandemic, fundamentally in the geographical areas where demand is most
closely linked to tourism activity. In this regard, we expect a significant recovery in the Canary and
Balearic Islands in the coming quarters to recover the volumes invoiced in 2019, This situation
will be reinforced by the new contracts incorporated into the perimeter during 2021, and also by
the maintenance of the high rates of renewal of contracts that Aqualia historically records on their
expiry. This increase in revenues will lead to an improvement in results, reinforced by the contin-
uation of cost optimisation actions.
By 2022, concessions in Spain in the area of end-to-end water cycle service concessions are
expected to maintain renewal rates similar to 2021, i.e. above 90%. In terms of new procurement,
several expiring contracts, currently operated by competitors, are expected to be tendered out.
In addition, major water treatment works are expected to be tendered in Madrid and Palma de
Mallorca.
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 proliferation of opera-
tion and maintenance contracts promoted by public companies belonging to Aguas de Portugal
and inter-municipal companies is expected.
New public service delegation tenders are expected to be launched in France due to the expiry
of the contractual term of one of the country's existing contracts.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 29 of 41
_ 530
In Saudi Arabia, tenders will be awarded for operation and maintenance contracts for water and
sanitation services in the six regions into which the Saudi kingdom has been divided, before they
are finally transformed into administrative concessions.
During 2022 Aqualia will consolidate the operation of the new contract to operate the Jizan desal-
ination plant in Saudi Arabia and the operation of the Abu Rawash wastewater treatment plant
in Egypt, the largest in Africa.
In LATAM, the 20-year operation period of the Guaymas IDAM (Sonora, Mexico) will begin, the
contract for the end-to-end management improvement of Los Cabos (Baja California Sur) will
start, as well as the operation of the El Realito aqueduct and the technical assistance period of the
Salitre WWTP (Colombia) will end. 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. Opportunities in end-to-end water cycle manage-
ment will also be explored.
Finally, in Peru, we will continue with the preparation of the private initiatives represented as rel-
evant for Aqualia, expecting the tendering of approximately 5 BOT purification contracts, and in
the USA, the projects currently under study will be presented to their corresponding clients under
the formula of "unsolicited proposals", for their assessment and, if accepted, for their subsequent
execution. Market exploration will also continue with the aim of acquiring a growth platform for
the country.
Construction
The Group focuses on the international market in countries and markets with a stable presence,
and on the execution of projects with secured 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 2022, the turnover obtained in Spain will
remain similar to that obtained in 2021.
The estimated 2022 foreign market turnover is expected to resemble 2021, with the develop-
ment of major infrastructure projects obtained between 2019 and 2021 and the contribution of
the markets in America (Mexico, Chile, Peru, Colombia) and Europe (the Netherlands, the United
Kingdom and Romania).
Cement
During 2021, there has been a very significant increase in the cost of maritime freight and, above
all, in the gas and electricity markets. These increases have been passed on as supply chain
disruptions on the one hand, and on the other hand are the main source of inflationary pressures
that have been passed on to virtually all products and services. The lack of visibility on the return
to normality is very high.
On 17 December 2021, the Bank of Spain revised Spain's GDP growth for 2021 downwards to
4.5%, due to supply shortages, longer product delivery times, more expensive energy supplies
and, finally, the OMICRON variant of COVID-19. For 2022 it forecasts growth of 5.4% with an
unemployment rate of 14.2%, almost one point lower than expected for 2021. It is not until the
end of 2022 that the Spanish economy will recover to pre-crisis levels caused by the COVID-19
pandemic.
According to estimates by the Association of Infrastructure Construction and Concession Com-
panies (SEOPAN), official tenders up to November 2021 have increased by 80.2% compared to
the same period in 2020. Building permits for new construction have increased by 22% and pub-
lic procurement is estimated to grow by 36% compared to 2020. These increases are reflected in
cement consumption, which reaches 14.9 Mt, 11% more than in 2020, equivalent to 1.5 million
tonnes, according to data provided by the sector's employers' association, OFICEMEN. The
same source also says that the market evolution in 2022 will close in a range of between 3% and
+5%, exceeding 15 million tonnes. Domestic political instability in Tunisia is keeping consumption
levels at low levels. By 2022, growth in the domestic market is estimated at 1.6% to reach 6
million tonnes, after closing 2021 at around 5.9 million tonnes, with a growth of 2.5% over 2020.
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 30 of 41
_ 531
Real Estate
Rental housing
FCC Inmobiliaria's actions for 2022 are focused on the development of its three business lines
in Spain:
Office and shopping centre rentals
• Business backed by the quality of the assets where most of the offices are located in prime
areas, and also the group of shopping centres it owns, which are centres located in the urban
centres of the cities.
• Sustained recurrence of revenues from Jezzine, the lessor of Caixabank's offices, whose
lease expires in 2037.
• Assisting its property subsidiaries to adapt their buildings and business to new trends in effi-
ciency and sustainability in the office and shopping centre market.
• Adapt the commercial relationship with tenants by adapting contracts to market requirements,
such as flexibility of space, duration, etc.
Real Estate Development
• Maintenance of development activity at similar levels to last year, with the completion of pro-
jects in progress, as well as the start of new projects, with special attention to their profitability,
and also to the viability of their commercialisation, bearing in mind the evolution of demand
and the macro scenario of the Spanish economy, which are vital for development activities.
• Continue to manage the Group's land portfolio, consolidating it as urban land, with the result-
ing increase in value and ensuring continuity in its development activity.
• Acquisition of new assets and/or land with a value path, either by management and/or by the
market.
Continuation and development of the new rental development activity, where Realia will develop
2 new projects for the construction of 195 subsidised housing units (VPPL-VPPB) for rental in the
municipality of Tres Cantos (Madrid), with a total planned investment of €42.9 million, of which
€27.3 million is pending, with the possible acquisition or development of new land for the same
purpose of residential rental housing. The Group continues to operate the Build to Rent (BTR)
residential building of 85 homes in Tres Cantos (Madrid), at 31 December 2021 it has formalised
rental contracts for 100% of the surface area.
8. RD&I Activities
The Group's Research, Development and Innovation (RD&I) activities in 2021 were embodied by
over 45 projects.
These projects seek to provide a response to the challenges of each business area while main-
taining global coordination between the different business areas of the Group.
The activities of the different Business Areas and the main projects developed throughout 2021
are detailed below.
Services
In the environmental services activity, we have continued with the development of projects started
in previous years, such as:
• VISION
• BICISENDAS
•
INSECTUM
• B-FERTS
• DEEP PURPLE
• PLASMIX
• LIFE 4 FILM
• H2020 SCALABLE TECHNOLOGIES FOR BIO-URBAN WASTE RECOVERY (SCALIBUR)
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 31 of 41
_ 532
In addition, new ones have been launched during 2021, which are summarised below:
End-to-end water management
• VALOMASK: The project involves the design and development of a sustainable management
process for discarded face masks. Under the concept of moving from waste to products, this
project aims to prevent tons of masks from ending up in landfills by means of a mechanical
separation process in Waste Treatment Centres (WTC), recovery and bioconversion, obtain-
ing bio-products that help to prevent the spread of COVID-19. Developing this new process
will call for the generation of new knowledge on the behaviour of masks in risk management
plants and a technological development pathway for the separation of plastics, and also a
new approach to research in this field.
• RECYGAS: This project deepens research into waste gasification and makes it possible to
use the clean synthetic gas obtained from the gasification process to initiate chemical synthe-
sis routes (whose products would no longer have the status of waste) or its use in high-effi-
ciency electricity generation cycles. The technology that the project incorporates would allow
it to climb up the waste management hierarchy towards recycling.
• EFFECTIVE SEALING SOLUTION FOR METALLIC MINING WASTE DUMPS TO CON-
TROL POTENTIALLY TOXIC ELEMENTS:The technology to be implemented in this project
is the experimental application, on a field scale, of a novel and effective sealing procedure
for mining waste deposits, consisting of the installation of a multilayer physical barrier based
on a proprietary technology already patented and tested in a pilot test on a small scale, but
pending validation on a field scale, testing two different types of materials: Construction and
demolition waste (CDW) and limestone waste from cuttings and excavations in mining activi-
ties.
In the field of specialised machinery for waste collection activities:
• SPECIAL SIDE-LOADING VEHICLE: Development of a new side-loading compactor collec-
tor vehicle, 2 metres wide (non-existent on the market), on a compressed natural gas chassis,
also 2 metres wide and with a gross vehicle weight of 18 tonnes.
• SPECIAL REAR-LOADING VEHICLE: Development of a new rear-loading compactor collec-
tor of very small dimensions, bi-compartment of 10 m3 with pure electric propulsion and drive
of the bodywork and auto-recharging system of batteries by CNG engine on special chassis,
narrow of 2.2 meters wide and an MAM of 17 tonnes.
Aqualia's innovation is guided by European Green Deal policies to reduce the carbon footprint to
zero, thanks to the transition to a circular economy with no environmental impact. The Innovation
and Technology Department (ITD) develops new smart management tools and new proposals
for sustainable services, supporting the company in achieving the United Nations Sustainable
Development Goals (SDGs). Priorities are affordable, high-quality water and sanitation (SDG 6),
an optimised energy balance (SDG 7) without affecting the climate (SDG 13) and contributing to
sustainable production and consumption (SDG 12).
The projects highlighted in 2021 are listed below:
•
INTERCONECTA (FEDER) ADVISOR: Aiming to achieve a circular economy in the agro-in-
dustrial activity of Guijuelo, and prevent the cost and impact of waste management in the
meat industry, new recovery solutions have been demonstrated at the WWTP operated by
Aqualia. By adapting co-digestion to slaughterhouse waste, with the validation of thermal
pre-treatment and innovative control systems, the energy self-sufficiency of the treatment
plant has been increased. Increased biogas production, and its enrichment with the ABAD
Bioenergy® process, has made it possible to supply biomethane to service vehicles.
There was also a demonstration of the ELSAR process, a new anaerobic reactor with bio-elec-
trochemical intensification, a patent shared with the University of Alcalá. In addition, the trans-
formation of fatty waste into bioplastics has been assessed, and the fertiliser value of the
by-products has been demonstrated in collaboration with farmers in the region.
• H2020 SABANA: Led by the University of Almeria, the consortium of eleven entities from
five countries (including the Czech Republic and Hungary) includes three large companies:
Aqualia, Westfalia (Germany) and the Italian food group Veronesi. The project has optimised
the production of new biofertilisers and biostimulants from algae, and two biorefineries based
on algae cultivation have been implemented in the WWTPs managed by Aqualia in Mérida
(Badajoz) and Hellín (Albacete), totalling five hectares.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 32 of 41
_ 533
• H2020 RUN4LIFE: Led by Aqualia, a consortium of fifteen entities in seven countries has
implemented new nutrient recovery concepts, based on the separation of grey and black
water, in four demonstration sites (Sneek/Netherlands, Ghent/Belgium, Helsingborg/Sweden
and Vigo/Spain). In the Vigo Free Trade Zone, Aqualia operates a membrane reactor (MBR) in
an office building for greywater, which is reused in the toilets. The sewage is transformed into
bioenergy in an anaerobic MBR. In effluents, various nutrient recovery options have been test-
ed, followed by advanced oxidation to remove viruses and emerging pollutants to encourage
reuse. A larger scale prototype installation has been prepared in Balaídos with effluent from
the Citroën industrial complex.
At the other two demonstration sites, involving hundreds of new flats in Ghent and Hels-
ingborg, grey and black water are separated, and organic kitchen waste is included in the
anaerobic reactors. After the housing units were opened in 2020, and the energy and nutrient
recovery facilities were commissioned, the service has been optimised through dialogue with
the users, reducing water and energy consumption through decentralised management.
New vacuum toilets have been installed in some 30 houses in Sneek, with minimal water con-
sumption, facilitating direct thermophilic digestion of sewage in a novel bioreactor that allows
direct production of a fertiliser. An important task was the assessment of the effect of new
fertilisers, verifying through greenhouse cultivation trials the quality and safety of effluents and
by-products of the different nutrient recovery processes.
• RIS3 RECARBÓN: Financed by the Asturian agency IDEPA with FEDER funds, and led by
the engineering company INGEMAS in Gijón with two local SMEs (Biesca and InCo), Aqualia
supports the INCAR (Institute of Carbon Science and Technology) of the CSIC and the CTIC
(Information and Communication Technology Centre) in the research of pollutant adsorption
methods with regenerated activated carbon and bio-char. This sustainable and affordable
adsorbent is assessed for biogas cleaning in the WWTPs of Chiclana, Lleida and Jerez, and
also in the deodorisation of the Luarca and San Claudio WWTPs in Oviedo.
The bio-char is also being tested in new micropollutant adsorption units, for which Aqualia's
accredited laboratory in Oviedo is developing advanced analysis methods, and new sensors
are being validated to enable real-time monitoring at the El Grado WWTP and the Cabornio
DWTP in Oviedo.
• JPI MARADENTRO: The project "Managed Aquifer Recharge: ADrEssiNg 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 WaterWorks 2018 programme, involving
partners in France, Italy and Sweden, and examines soil as a tertiary risk management unit.
A 400 m2 infiltration system is being built at the Medina del Campo WWTP for advanced risk
management of treated water and its reuse in aquifer recharge, compared to conventional
tertiary treatment. Scientific institutes develop system design and simulation tools to optimise
the operation and costs of emerging pollutant removal.
• H2020 SCALIBUR: The project, led by the Itene technology centre, involves 21 partners from
10 countries and focuses on waste reduction and recovery on a European scale. With the
participation of FCC Medio Ambiente, the project focuses on improvements to waste pro-
cessing plants in Madrid, Lund (Sweden) and Rome (Italy) to recover resources and promote
the circular economy.
Within this framework, Aqualia has implemented new sludge risk management at the Estiviel
WWTP (Toledo), testing improvements in thickening and dual two-stage digestion, and sim-
plifying sludge stabilisation without heated concrete structures. The project has facilitated first
innovation activities at SmVaK in the Czech Republic to convert organic matter into by-prod-
ucts and bioenergy, and prototypes are being built at the Karviná WWTP.
• BBI DEEP PURPLE: Led by Aqualia and supported by thirteen partners from six countries,
the project implements on a demonstration scale a new bio-refinery model, which integrates
purple phototrophic bacteria (PPB) in anaerobic carrousel-type systems. These bacteria
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 Aqualia prototype is operating at the Toledo-Estiviel WWTP, and a demonstration reac-
tor 10 times larger is being built at the Linares WWTP. Parallel activities are prepared also at
the SmVaK WWTP in the Czech Republic and another demonstration site is planned.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 33 of 41
_ 534
• BBI B-FERST: With Fertiberia as leader, and with ten partners from six different countries,
Aqualia is involved in the development of new biofertilisers from urban wastewater and
by-products from agri-food industries. The potential of raw materials recovered from munici-
pal waste and effluents in the production of fertilisers in three countries (Spain, Italy and Czech
Republic) is analysed. A struvite precipitation system has also been built at the Jerez WWTP to
incorporate the phosphorus recovered in a new Fertiberia bio-based fertiliser demonstration
plant in Huelva.
• LIFE INTEXT: The project to optimise low-cost wastewater treatment technologies in small
towns is led by Aqualia, with the AIMEN and CENTA technology centres and the University of
Aarhus in Denmark supporting SMEs in Germany, Greece and France. The aim is to minimise
energy costs, carbon footprint and waste from wastewater treatment by providing ecologically
and economically sustainable solutions for urban areas with less than 5,000 inhabitants. The
demonstration platform of 16 technologies was started up at the Talavera WWTP, operated by
Aqualia, which will allow a tailor-made offer to isolated urbanisations.
• LIFE ULISES: Three technology centres, CENTA, EnergyLab and CieSol of the University
of Almeria, support Aqualia as coordinator to transform conventional WWTPs into "energy
production factories", achieving energy self-sufficiency and eliminating their carbon footprint.
Anaerobic pretreatment with the PUSH reactor, which has also been successfully assessed
in two WWTPs in Portugal, has been implemented at the El Bobar WWTP in Almeria, operat-
ed by Aqualia. To improve the energy balance, digestion with hydrolysis is intensified to use
bio-methane as a vehicle fuel with an ABAD BioEnergy refining system and a dispenser.
• LIFE INFUSION: After completing the Life Methamorphosis project at Ecoparc 2, the Barce-
lona Metropolitan Area (AMB) extended the operation of the pilots to prepare the designs for
several new plants to recover resources from municipal solid waste. Together with the EureCat
technology centre and the operator of Ecoparc2, EBESA, the leachate digestion system is
optimised with Aqualia, AnMBR and ELAN technologies, with the addition of an ammonium
stripping system from the Belgian SME Detricon. Two waste management entities, Cogersa in
Asturias and AMIU in the region of Genoa/Italy are also participating to assess the options for
implementing the solutions in their plants.
• LIFE PHOENIX: The Aqualia-led project, supported by the technology centres CETIM and
CIESOL, optimises tertiary risk management to achieve the most ambitious objectives of the
new European regulation on water reuse (EU 2020/741). In order to assess various effluents,
from ADP in Portugal, the Almeria Provincial Council and the Guadalquivir River Basin Feder-
ation, several mobile plants are being built, one for physical-chemical treatment of 50 m3/h,
another for advanced filtration of 30 m3/h, to be combined with various ultra- and nanofiltra-
tion membrane refining skids.
In addition, Newland's European subsidiary Entech is participating with O3 ozone and UV ul-
traviolet modules, which enable advanced oxidation and disinfection. A sensor from the Dutch
SME MicroLan for on-line microbiological measurements is also being tested.
• LIFE ZERO WASTE WATER: In a partnership with Canal Isabel II, the Aqualia-led project
is installing a combined treatment unit at the Valdebebas WWTP for Urban Waste Water
(UWWW) and the Organic Fraction of Solid Urban Waste (FORSU). It will feed an anaerobic
reactor AnMBR of 50 m3/d, which will be followed by the ELAN in-line water process, allow-
ing for a carbon neutral treatment footprint. The assessment will assess the management of
FORSU at the municipal level, using the sewerage system to transport the mixture in a single
stream.
In addition to the Universities of Valencia (co-holder of the AnMBR patent) and Santiago
(co-holder of the ELAN patent) the Portuguese SME Simbiente is participating to develop an
advanced management system, combined with on-line monitoring of microbiological quality
by the Austrian SME VWS (Vienna Water Systems).
• H2020 SEA4VALUE: The EureCat technology centre coordinates fourteen partners from sev-
en countries to recover resources from brine concentrated in seawater desalination plants
(SWDP). With 100% EU funding, at least eight innovative technological solutions are still being
developed at a basic scientific level. The aim is to enrich the most valuable components of
seawater (lithium, caesium and rubidium) and to recover critical raw materials (magnesium,
boron, scandium, gallium, vanadium, indium, molybdenum and cobalt) to a purity that allows
them to be exploited on the market.
The technical and economic impact analysis foresees the implementation of pilot units in the
various SWDPs operated by Aqualia, to reinforce Aqualia's Desalination Innovation Centre
in Denia and to develop a new platform in Tenerife, adding the development of solutions for
the valorisation of brine to the new desalination methods. Work is being done on the solar
concentration of brine, selective precipitation of magnesium, obtaining chlorine dioxide, and
optimising the remineralisation of permeate with micronised calcite, reducing CO2 consump-
tion, turbidity and the size of the installation.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 34 of 41
_ 535
• H2020 ULTIMATE: In the Smart Water Economy call, Aqualia participates in two of the five
selected consortia, which receive up to €15 million of EU support per project. In Ultimate, the
Dutch technology centre KWR coordinates 27 partners implementing nine demonstrations of
synergies between water utilities and industries.
At the Mahou WWTP in Lérida, operated by Aqualia, a fluidised anaerobic reactor (FBBR /
Elsar) is being installed on an industrial scale, which will later be compared to an AnMBR to
recover biomethane and feed a fuel cell. Yeast co-digestion is also being studied, together
with support for another project partner, Aitasa in Tarragona, where Aqualia is building a new
industrial effluent treatment plant.
• H2020 REWAISE: Of the five projects funded under the EU's Smart Water Economy pro-
gramme, Aqualia leads the project with the largest business participation, as the twenty-four
entities in the consortium include water companies from the UK (Severn Trent), Sweden
(Vasyd) and Poland (AquaNet). Together with 7 SMEs and several universities in Croatia, Italy,
Poland, Czech Republic, Sweden, and UK, new circular economy and digital management
solutions are implemented in "living labs" including Aqualia's operations in Badajoz, Canary
Islands, Denia or Vigo.
Rewaise reinforces Aqualia's strategic lines of technological development, with sustainable
desalination and new membranes, the recovery of materials from brine, the reuse of waste-
water and its transformation into energy and by-products, and the simulation of the operation
and control of processes and networks to optimise service efficiency and water quality.
• H2020 NICE: The project, led by the technology centre CETIM with 14 partners from 9 coun-
tries, focuses on natural solutions for the purification and recovery of resources from waste-
water, such as wetlands or green swamps. These options for sustainable cities will be imple-
mented in a dozen sites, including Aqualia's facilities in Vigo, Talavera and Algeciras. The pilots
integrate developments from SMEs and universities in Denmark, France, Italy and Sweden,
and include actions with partners in Colombia and Egypt.
• LIFE RESEAU: The RESEAU project aims to increase the resilience of existing sanitation
water infrastructure to the impact of climate change. The project led by Aqualia is participated
by ITG (Fundación Instituto Tecnológico de Galicia) and VCS (VandCenterSyd AS) in Odense
(Denmark). Sensors (for speeds, flow rates, etc.) will be installed in the sewerage network in
Moaña (Pontevedra) to monitor and model its behaviour.
A 500 m3 aerobic granular reactor will also be built at the Moaña WWTP to treat up to 2,000
m3/d of wastewater. Compared to conventional activated sludge technology, this advanced
biofilm system increases the biological treatment capabilities several times over, improving the
WWTP's ability to react to flow variation and limiting the space requirements for its implemen-
tation. The environmental impact of the risk management process is also significantly reduced
by reducing energy needs and avoiding greenhouse gas emissions.
A new European patent and one American patent was secured in 2021, as a PCT extension of
European patents for the year 2020. Three trademarks and a utility model were also registered.
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 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 interna-
tionalised market.
The three types of projects developed by FCC Construcción and its investee companies are:
internal projects, projects with other companies in the 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.
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 an-
ti-bird strike tubular screen for High Speed Rail lines, in which the Administrator of Railway Infra-
structures (Adif) participates. Contact has also been made with several town councils in Catalonia
for the implementation of the pilot of a cycle lane of the "BICISENDAS" project.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 35 of 41
_ 536
The projects highlighted in 2021 are listed below:
• ZERO IMPACT: the project Development and demonstration of an anti-bird strike tubular
screen for High Speed Rail lines, co-financed by the European Commission's "Life" pro-
gramme, was conceived to design measures for protecting birdlife with anti-collision screens
on High Speed Rail lines
• ROBIM: funded by the CIEN programme, financed by CDTI (Centro para el Desarrollo Tec-
nológico Industrial), and whose objective is an autonomous robotics for inspection and as-
sessment of existing buildings with BIM integration with the development of an automated,
active and multidisciplinary technology for inspection, assessment and diagnosis of the com-
position and status of conservation and energy efficiency of the building envelopes of the
built heritage, which facilitates obtaining accurate and sufficiently detailed information on the
construction systems and pathologies and also a comprehensive analysis of the building.
• REFORM2: This project, presented to the Catalan Waste Agency, aims to recover the
by-product (0/6 porphyry, a by-product originating from the generation of ballast and gravel)
of quarry extraction by incorporating it into thermosetting and thermoplastic matrices for dif-
ferent applications.
• BICISENDAS: Within the CDTI's CIEN 2018 programme, the aim of which is to develop a
Sustainable, Energy Self-Sufficient, Intelligent, Cleaner, Integrated and Safe cycle lane.
• PIELSEN: As part of the Challenges-Collaboration programme, it aims to create an immersive
3D Homeostatic Architecture to create adaptive intelligent sensitive skin on Building Façades.
• SAFE: This project aims to develop an autonomous system for anchoring of maritime struc-
tures. This smart system makes it possible to reduce dependence on human resources, min-
imise risk, maximise efficiency and increase the safety of field manoeuvres.
• STARPORTS: From CDTI's INNTERCONECTA (Canary Islands) programme, it will develop a
Distributed Wireless System for 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 develop 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: Approved by CDTI, it aims to research and develop sustainable road elements for
speed reduction. There are three main research objectives: power generation, security signal-
ling and connectivity with the environment.
• SAFETY4D: CDTI-approved project for developing an advanced and high performance pro-
cess for occupational risk prevention in construction with implementation of the BIM method-
ology.
• ONLYBIM: Project of the regional programme of IDEPA of the Principality of Asturias whose
objective is the development of a module for the design and execution of Non-Linear Works
under BIM methodology.
• GAUDI: Approved in the call for collaborative projects of CDTI and which consists of the de-
velopment of a Knowledge Management platform based on Artificial Intelligence algorithms
and Content Curation techniques.
• ACUSCOIN/ECO: Developed by MATINSA and approved by CDTI, the aim of which is to
research an acoustic emission system for assessing corrosion in reinforced concrete infra-
structures.
• DESIRE: Developed by FCC Industrial and approved by CDTI, its objective is to develop a
prototype of a basic RPAS simulator that, with the use of the software developed and the
prototype of mixed reality glasses and the tracking system, complements the information
presented to the RPAS pilot and the camera operator.
• CYBERSEC: Developed by FCC Industrial and approved by CDTI of the CIEN programme,
this project entails research into various technologies, techniques, tools, methodologies and
knowledge aimed at developing technological solutions for securing against cyber-attacks in
highly critical connected environments, such as Industry 4.0, Smart Cities or critical infrastruc-
tures.
• SAIM: Project developed by MATINSA and approved by CDTI, aiming to develop a new tech-
nological solution to aid environmental management of coastal areas that allows the ecologi-
cal characterisation of the environment automatically and in real time using information from a
new sensorised data collection system, a new satellite information processing algorithm and
a new computational simulation model
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 36 of 41
_ 537
Research, Development and Innovation (R&DI) is expressly contemplated in the Sustainability
Management System under procedure PR/FCC-730. The company holds an RD&I Manage-
ment System Certificate: RD&I Management System requirements based on Spanish-har-
monised standard UNE 166002:2014, certified by AENOR, the Spanish Standardisation and
Certification Association. The RD&I management system was certified for the companies
MATINSA and FCC Industrial in 2021.
9. Other relevant information.
Share and other information
9.1. Stock Market performance
Cement
In 2021, the Cementos Portland Valderrivas Group continued as a leading partner in BIORE-
CO2VER, a European R&D project that has been extended this year to cover the accumulated
delays resulting from the COVID-19 pandemic.
This project aims to obtain alternative processes for the commercial-scale production of certain
chemical products (such as isobutene or lactic acid) in a more sustainable way by capturing
industrial CO2 emissions. The ultimate goal is to use this industrial CO2 as a raw material and to
stop relying on fossil resources for the production of these products.
Technology partners LTU and Enobraq conducted several tests in 2021 on emissions that Ce-
mentos Portland Valderrivas provided the research consortium. These tests have produced con-
clusive results and it has not been necessary to organise further "in situ" emission gas captures.
The conclusions of the project will be presented during the first quarter of 2022.
Closing price (€)
Change in the period
High (€)
Low (€)
Average daily trading (no. of shares)
Average daily trading (million euros)
Capital at end of period (million euros)
Jan. – Dec. 2021
Jan. – Dec. 2020
11.08
31.9%
11.40
8.74
69,303
0.7
4,711
8.40*
-16,3%
11.56*
6.77*
74,593
0.7
3,600
No. of shares circulating at closure
425,173.,636
409,106,618
* 2021 Data adjusted for scrip dividend.
9.2. Dividends
The Company's Board of Directors, at its meeting held on 29 June 2021, agreed to implement
the agreement on the distribution of the scrip dividend adopted at FCC's General Shareholders'
Meeting on 29 June 2021, in item 6 of the Agenda, in compliance with the terms and conditions
agreed at the General Shareholders' Meeting. The holders of 98.18% of the free allocation rights
opted to receive new shares, in recognition for their confidence in management and their capac-
ity to execute the Group's value creation potential. Therefore, the paid-up capital increase was
16,067,018 shares; the total number of shares of the new capital stock was 425,173,636.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 37 of 41
_ 538
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)
Amortisation of fixed assets and allocation of grants for non-financial
and other assets
Impairment and gains/(losses) on disposal of fixed and non-current
assets
Other gains/(losses)
EBITDA
EBIT
Dec. 2021
Dec. 2020
802.2
443.9
-123.5
4.0
572.7
477.3
-6.9
4.4
1,126.6
1,047.5
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 client 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 vol-
ume estimates that serve as the basis for our contracts with clients 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 client.
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 30 to the consolidated financial statements.
The Group uses the backlog as an additional accounting measure in certain areas of our busi-
nesses. 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 38 of 41
_ 539
Audit Report on Financial Statements
issued by an Independent Auditor
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A.
Financial Statements and Management Report
for the year ended
December 31, 2021
Ernst & Young, S.L.
Calle de Raimundo Fernández Villaverde, 65
28003 Madrid
Tel: 902 365 456
Fax: 915 727 238
ey.com
AUDIT REPORT ON FINANCIAL STATEMENTS ISSUED BY AN INDEPENDENT AUDITOR
Translation of a report and financial statements originally issued in Spanish. In the event of discrepancy, the
Spanish-language version prevails
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 December 31, 2021, the income statement, the
statement of changes in net equity, the cash flow statement, and the notes thereto for the year then
ended.
In our opinion, the accompanying financial statements give a true and fair view, in all material
respects, of the equity and financial position of the Company as at December 31, 2021 and of its
financial performance and its cash flows for the year then ended in accordance with the applicable
regulatory framework for financial information in Spain (identified in Note 2 to the accompanying
financial statements) and, specifically, the accounting principles and criteria contained therein.
Basis for opinion
We conducted our audit in accordance with prevailing audit regulations in Spain. Our responsibilities
under those standards 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
related to independence, that are relevant to our audit of the financial statements in Spain as
required by prevailing audit regulations. In this regard, we have not provided non-audit services nor
have any situations or circumstances arisen that might have compromised our mandatory
independence in a manner prohibited by the aforementioned requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Domicilio Social: C/ Raimundo Fernández Villaverde, 65. 28003 Madrid - Inscrita en el Registro Mercantil de Madrid, tomo 9.364 general, 8.130 de la sección 3ª del Libro de Sociedades, folio 68, hoja nº 87.690-1,
inscripción 1ª. Madrid 9 de Marzo de 1.989. A member firm of Ernst & Young Global Limited.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 39 of 41
_ 540
2
3
Key audit matters
Key audit matters are those matters that, in our professional judgment, 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 audit opinion thereon,
and we do not provide a separate opinion on these matters.
Measurement of investments in Group companies and associates
Description At 31 December 2021, the Company recognised under "Long-term investments in
Group companies and associates" investments in group companies and associates
and loans granted to group companies and associates amounting to 3,080,151
thousand euros and 394,641 thousand euros, respectively, and under "Short-term
investments in Group companies and associates", mainly loans with group companies
and associates amounting to 208,413 thousand euros.
Company management assesses, at least at the end of each reporting period,
whether there are indications of impairment and writes down these investments
whenever there is objective evidence that the carrying amount of the investment is
no longer recoverable, recognising an impairment loss for the amount of the
difference between carrying amount and recoverable amount.
Since the determination of the recoverable amount of these investments requires
Company management to make estimates using significant judgement, and because
of the significance of the amounts involved, we determined this to be a key audit
matter.
Disclosures on the measurement standards applied to determine impairment losses
on investments in group companies and associates are provided in notes 4.e and 4.l
to the accompanying financial statements.
The assessment made to determine the recoverable amount of these assets requires
Company management to make complex judgements regarding the estimates of the
future taxable profit based on financial projections and business plans of the tax
group of which the Company is the head, considering applicable tax laws and
accounting standards.
Given the complexity inherent in management's projections of business performance
to estimate future taxable profits of the Company and the rest of the companies
comprising the Tax Group and the significance of the amounts involved, we
determined this to be a key audit matter.
Our
response
In relation to this matter, our audit procedures included:
Understanding the process designed by Company management to assess the
recoverability of deferred tax assets and the design and implementation of the
relevant controls in place in that process.
Assessing the reasonableness of the key assumptions used by Company
management to estimate the period for recovering deferred tax assets, focusing
on the economic, financial and tax assumptions used to estimate the future
taxable profits of the Tax Group based on budgets, business performance and
historical experience.
Assessing, with the involvement of our tax specialists, the key assumptions
made by Company management regarding applicable tax laws.
Assessing the sensitivity of the results to reasonably possible changes in those
assumptions.
► Reviewing the disclosures made in the notes to the financial statements in
conformity with the applicable regulatory financial reporting framework.
Our
response
In relation to this matter, our audit procedures included:
Other matters
► Understanding the process designed by Company management to determine
whether there are indications of impairment and to determine the recoverable
amount of the investments in group companies and associates and assessing
the design and implementation of the relevant controls in place in that process.
►
Evaluating the analysis by Company management of indications of impairment
of investments in group companies and associates and the information used to
determine the recoverable amounts of the investments.
► Reviewing the disclosures made in the notes to the financial statements in
conformity with the applicable regulatory financial reporting framework.
Recoverability of deferred tax assets
Description As explained in note 15 to the accompanying financial statements, the Company
recognised deferred tax assets at 31 December 2021 amounting to 50,268 thousand
euros, related mainly to the carry forward of unused tax losses.
According to the accounting policy described in note 4.g to the accompanying
financial statements, the Company recognises deferred tax assets except in cases
where there are reasonable doubts about their future recovery, or such recovery
extends over a period exceeding ten years.
On February 25, 2021, other auditors issued their audit report on the 2020 financial statements, in
which they expressed an unqualified opinion.
Other information: management report
Other information refers exclusively to the 2021 management report, the preparation of which is the
responsibility of the Company’s directors and is not an integral part of the financial statements.
Our audit opinion on the financial statements does not cover the management report. Our
responsibility for the management report, in conformity with prevailing audit regulations in Spain,
entails:
a.
Checking only that the non-financial statement and certain information included in the
Corporate Governance Report and in the Board Remuneration Report, to which the Audit Law
refers, was provided as stipulated by applicable regulations and, if not, disclose this fact.
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 40 of 41
_ 541
4
5
b.
Assessing and reporting on the consistency of the remaining information included in the
management report with the financial statements, based on the knowledge of the entity
obtained during the audit, in addition to evaluating and reporting on whether the content and
presentation of this part of the management report are in conformity with applicable
regulations. If, based on the work we have performed, we conclude that there are material
misstatements, we are required to disclose this fact.
Based on the work performed, as described above, we have verified that the information referred to
in paragraph a) above is provided as stipulated by applicable regulations and that the remaining
information contained in the management report is consistent with that provided in the 2021
financial statements and its content and presentation are in conformity with applicable regulations.
Responsibilities of the directors and the audit and control committee for the financial
statements
The directors are responsible for the preparation of the accompanying financial statements so that
they give a true and fair view of the equity, financial position and results of the Company, in
accordance with the regulatory framework for financial information applicable to the Company in
Spain, identified in Note 2 to the accompanying financial statements, and for such internal control as
they 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 has no realistic alternative but to do so.
The audit and control committee is responsible for overseeing the Company’s financial reporting
process.
Auditor’s responsibilities for the audit of the financial statements
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 prevailing audit regulations 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.
As part of an audit in accordance with prevailing audit regulations in Spain, we exercise professional
judgment and maintain professional skepticism 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 Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of the director’s use 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 audit and control committee of the Company 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.
We also provide the audit and control committee of the Company with a statement that we have
complied with relevant ethical requirements, including those related to independence, and to
communicate with them all matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with the audit and control committee of the Company, 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.
Report on other legal and regulatory requirements
European single electronic format
We have examined the digital file of the European single electronic format (ESEF) of Fomento de
Construcciones y Contratas, S.A. for the 2021 financial year, consisting of an XHTML file containing
the financial statements for the year, which will form part of the annual financial report.
The directors of Fomento de Construcciones y Contratas, S.A. are responsible for submitting the
annual financial report for the 2021 financial year, in accordance with the formatting requirements
set out in Delegated Regulation EU 2019/815 of 17 December 2018 of the European Commission
(hereinafter referred to as the ESEF Regulation). In this regard, the Corporate Governance Report
and the Board remuneration report have been incorporated by reference in the management report.
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ Annual Report 2021 | Financial Statements | Fomento de Construcciones y Contratas, S.A. | Management Report | Page 41 of 41
_ 542
6
Our responsibility consists of examining the digital file prepared by the directors of the Company, in
accordance with prevailing audit regulations in Spain. These standards require that we plan and
perform our audit procedures to obtain reasonable assurance about whether the contents of the
financial statements included in the aforementioned digital file correspond in their entirety to those
of the financial statements that we have audited, and whether the financial statements and the
aforementioned file have been formatted, in all material respects, in accordance with the ESEF
Regulation.
In our opinion, the digital file examined corresponds in its entirety to the audited financial
statements, which are presented, in all material respects, in accordance with the ESEF Regulation.
Additional report to the audit and control committee
The opinion expressed in this audit report is consistent with the additional report we issued to the
audit and control committee on February 23, 2022.
Term of engagement
The ordinary general shareholders’ meeting held on June 2, 2021 appointed us as auditors for 3
years, commencing on February 23, 2022.
ERNST & YOUNG, S.L.
(Registered in the Official Register of
Auditors under No. S0530)
(Signature on the original in Spanish)
_______________________________
Fernando González Cuervo
(Registered in the Official Register of
Auditors under No. 21268)
February 24, 2022
A member firm of Ernst & Young Global Limited
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
A 2
_ 543
FCC Group
Sustainability
Report
FCC Group Non-Financial Information
Report, in compliance with Law 11/2018
on non-financial information and diversity
Index
FCC _ 2021 Annual ReportLetter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report
_ 544
Betting on the cities of the future _ 545
Annexes _ 661
Letter from the CEO _ 546
Annex I: About this report _ 662
Transforming leadership. Figures and context of the FCC _ 548
Annex II: Tables relating to social and personnel affairs _ 665
Pillars to guarantee Citizen Services _ 560
Annex III: Tables relating to environmental issues _ 673
Strategic responsibility. A responsible declaration _ 561
Annex IV: Tax information _ 676
Anexo V. Listado de principales asociaciones _ 678
Annex VI: GRI content table _ 680
Annex VII: Table of indicators Law 11/2018 _ 690
Annex VIII: Taxonomy _ 696
A common project with a transversal vision:
ESG, three letters for transformation _ 574
Environment _ 575
Planet. Environmental care and management _ 577
Social _ 604
Employees. People at the core _ 606
Society. Promoting social and environmental progress _ 621
Governance _ 628
Exemplarity. An exemplary organisation _ 630
Integrity. Consolidated Integrity _ 635
Cybersecurity. A secure network _ 642
Customers. Excellence in service _ 644
Supply chain. Sustainable provisioning _ 648
Anticipation. Opportunities for Progress _ 652
Commitment. Responsible taxation _ 658
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report
_ 545
Betting on the cities of the future
A shared project with a cross-cutting vision
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Letter from the CEO | Page 1 of 2
_ 546
On the path to sustainability
On behalf of all of us at FCC Group, it is a pleasure to present to
you our Sustainability Report for the 2021 financial year.
In addition to including the company’s consolidated Non-Finan-
cial Information Report (NFIS), this document was produced in
alignment with the main international sustainability standards,
such as the framework of the Global Reporting Initiative (GRI).
We firmly believe that our Group contributes cross-sectionally
to sustainable development and, for over 15 years, we consid-
er that publishing this Report is the best tool for informing our
Stakeholders of our ESG performance: environmental, social,
and corporate governance.
This is our way of rendering accounts to society, consolidating
one of the most important intangible assets for our company,
our commitment to FCC's stakeholders. In our opinion, trans-
parency translates into trust, and cultivating, preserving and en-
couraging it is key, especially in the difficult international context
that we are immersed in.
Almost two years after the advent of COVID-19, and in spite of
the huge health care efforts that are progressively enabling us to
adapt to the pandemic, we are still undergoing extremely com-
plex circumstances, that affect the most diverse areas of our
lives. Within this context, the pandemic has once again brought
to light the need to progress in the face of major challenges
before they happen, starting with meeting the 2030 Sustainable
Development Agenda, as well as overcoming the challenges of
worldwide climate change and socio-economic inequalities.
Pablo Colio Abril
CEO of the FCC Group
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Letter from the CEO | Page 2 of 2
_ 547
However, looking to the future, although threatened by new var-
iants and outbreaks, recovery or reconstruction is taking off at a
much better pace than was envisaged in late 2020. This situa-
tion now requires, more than ever, a collective effort, committing
to cooperation and solidarity to move forward towards more
resilient, fair and inclusive societies, leaving no one behind.
Companies play a key role in this challenge, and they must re-
spond in a decisive, innovative and joint manner. It is time for
action, and at FCC Group we are aware that we have the re-
sponsibility to act. We are convinced of the role that we can
play in reactivating the economy, and generating quality jobs in
the communities where we operate. This guarantee is backed
by our more than 120 years providing excellent services for so-
ciety.
This Report compiles all of the work carried out by our Group
throughout 2021, which consolidates our position as a social-
ly-responsible agent in the citizen services sector. This year we
have continued to explore new frontiers on our path to sustaina-
bility, considering the needs and expectations of our stakehold-
ers, and placing citizens at the forefront of our business model
because, let us not forget, they are our ultimate raison d’être.
Thanks to our centenary culture, to the almost 60,000 people
who make up our Group and our commitment to service and
innovation, we make life in cities easier, working on finding solu-
tions to any problems that arise, from the basis of our diversified
business model. We also work continuously to reduce our en-
vironmental impact and increase our social contribution, guar-
anteeing at all times that our upstanding conduct value remains
intact, through the compliance model that we have implement-
ed as a Group.
After the achievements reached with our latest Master Plan on
corporate social responsibility, we are already working on ap-
plying the lessons learned, anticipating trends and taking on
more ambitious challenges, by developing what should be the
next 2025 ESG Framework, that will be our roadmap to guiding
FCC activities sustainably, under the motto Together, we are
building a better future.
FCC’s commitment to the Paris Agreement on climate change,
the annual renewal of its commitment to the United Nations
Global Compact and its Ten Principles, our company’s con-
tribution to achieving the Sustainable Development Goals or
transitioning towards a development model based on a circular
economy, are only a few examples of the challenges that we
aim to work on within this Framework.
Along these lines of strengthening our commitment to ESG
goals, we have renamed the corporate management, which
was already promoting this area within the Group as Compli-
ance and Sustainability Directorate. It is now the FCC Sustaina-
bility Committee, the coordinating team between the company
and the departments working on this goal.
All of this leads to positive results that prove our capability to
adapt in times of adversity. We have consolidated our inter-
national presence in over 30 countries. By late 2021 we had
reached a total turnover of €6,659 million, which is an increase
of more than 8% over the previous year.
I would like to close this brief presentation by pointing out that
these figures would not have been possible without the invalu-
able work and commitment by the Group’s keystone, our peo-
ple. The sum of knowledge, experience and, especially, talent,
has enabled us to reach the proposed goals year after year.
Our professionals are not only key agents in guaranteeing the
services that make us stand out, but they are also the driving
force for change. Therefore, we encourage them to show their
best version of themselves, to be the reflection of our corpo-
rate values that have stood with us for over 120 years. It is an
honour to acknowledge their commitment and their dedication
to making the FCC Group grow, even in times of adversity and
overcoming.
In short, in 2021 we have taken huge steps towards progress,
but we want to continue to grow, in order to apply our best
services to our current cities, and to the cities of the future.
The future is here, and we aim to continue leading progress,
responding to the various challenges that we face and contrib-
uting value to reach a common goal, the goal to create a more
sustainable world, a fairer world. FCC is on the right path. This
is the best news of all.
Pablo Colio Abril
CEO of the FCC Group
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Transforming leadership | Page 1 of 12
_ 548
Transforming leadership
Figures and context of the FCC Group
| Transforming business as usual
as a first step towards more
sustainable realities
Governance structure
| Rigour and professionalism
serving the cities
Working at the service of future cities is a constant challenge for
the FCC Group, which places a balanced business model at the
service of citizens, combining specialization in Environmental
Services, Integral Water Cycle Management and Construction
and Cement activities.
The bodies that make up the governance structure of the com-
pany are aware that their role is of vital importance, as they
are in charge of establishing the organisation's objectives, pro-
moting effective communication between the members of the
organisation and, finally, fostering a common and transversal
corporate culture.
Namely because of this importance, the Group is committed to
building and constantly reinforcing an independent, account-
able and transparent institutional architecture. Accordingly, the
Group's corporate structure is composed of the following bodies:
Board of Directors
Executive Committee
In charge of the management and
representation of the FCC Group. This is
the body responsible for the supervision
and control of the company’s management,
which is entrusted to the Office of the
Managing Director and the Senior
Management.
General Meeting
of Shareholders
It is governed by the applicable legislation,
the Corporate Bylaws and the General
Meeting’s Regulations.
Equal treatment of all shareholders is
guaranteed, with regards to information,
participation and the right to vote at the
General Meeting.
Permanent delegation body, appointed by the Board of Directors, which in
turn defines the competences attributable to it, as well as the Directors
who form part of it.
It is responsible for making decisions in relation to FCC Group’s
investments, access to credits, loans, lines of guarantee or surety, or other
financial resources.
Audit and Control Committee
It supports the Board of Directors by reviewing the preparation of
economic-financial and non-financial information, internal control and the
independence of the external auditor. Members must have technical
knowledge of the Group’s business segments.
In addition, at least one member must have the necessary expertise in
accounting and/or auditing.
Appointment and remuneration committee
It is the body in charge of the following: information, advice and proposals
regarding the appointment, re-election, ratification and removal of
directors, remuneration of FCC Group’s directors and senior executives,
as well as control of possible conflicts of interest and related operations,
notwithstanding other functions, whatever the may be, attributed by law,
the Corporate Bylaws or the Regulations of the Board of Directors.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Transforming leadership | Page 2 of 12
_ 549
Specialised business | Business diversity as a response to a common objective: the FCC Group
FCC Environmental Services
| Committed to caring for the environment
The Environmental Services area carries out its wide-ranging activity
through the following services, classified into three large blocks:
Provision of municipal services
• Protection of green areas
• Maintenance of sewerage systems
• Street cleaning
• Cleaning of beaches, shores and coastal waters
Integrated waste management
• Collection, treatment and recycling of municipal
and industrial waste
• Energy recovery from waste
• Remediation of contaminated land
Management of buildings and services
• Cleaning and maintenance of buildings
• Maintenance of street furniture and playground
equipment
• Integrated energy management
• Cleaning and maintenance of fountains
• Event management
Local focus with international presence:
Iberia
Medio Ambiente España (including industrial waste business)
and FCC Environment Portugal
United Kingdom
FCC Environment UK
Central and Eastern Europe
FCC Environment CEE
United States
FCC Environmental Services
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Transforming leadership | Page 3 of 12
_ 550
FCC Environmental Services
| Committed to caring for the environment
BUSINESS PERFORMANCE
SUSTAINABLE PERFORMANCE
Presence in 11 countries
A history of 111 years
Almost 61 million people
served in more than 5,000 municipalities
Around 24 million tonnes of waste managed
More than 700 operational waste management facilities,
including nearly 200 dedicated to treatment and recycling.
Nearly 6,500 hectares of green spaces
and maintenance of more than 1,500 km of beaches and coastline
Certified excellence in the Environmental Services Area.
ISO 9001
Quality
Management
System
OHS
Management
System
ISO 14001
Environmental
Management
System
EMAS1
Energy
Management
System
Conformity with
Regulation No.
1179/201211
Healthy
Business
Model1
Tourist
Quality1
Certifications
Enviromental
Services
UNE
166301
R+D+I
Management System
UNE 1660021
Soil, Waste and
Groundwater
ISO 170201
Information
Security
ISO 270011
PAS 1002
COVID-19
Response
Protocol1
Carbon
footprint
register1
1. Exclusive Certification of
FCC Medio Ambiente Iberia.
2. Exclusive Certification of
FCC Environment UK.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Transforming leadership | Page 4 of 12
_ 551
Aqualia
| Incorporating sustainability in the integral water cycle
The FCC Group's Integral Water Cycle Management area is positioned
as one of the main water supply, sanitation and treatment operators.
It is recognised as the fourth largest water management company in
Europe and among the top ten in the world in terms of population
served, according to the latest Global Water Intelligence ranking (March
2021).
With a business model based on the integral water cycle, the company
specialises in the following services:
Integrated management of public services
• Acceso y distribución del agua
• Tratamiento
• Potabilización
• Saneamiento
• Depuración
Operation, maintenance
and technical assistance services
• Maintenance and operation of infrastructures
Hydraulic infrastructures
• BOT(1) model contracts
• EPC(2) model contracts
(1) Built, Operate and Transfer.
(2) Engineering, Procurement and Construction.
Local focus with international presence:
Europe
Spain, France, Italy, Portugal, Czech Republic, Romania
North Africa
Algeria, Tunisia
Middle East
Saudi Arabia, United Arab Emirates, Egypt, Oman, Qatar
North America
Mexico
South America
Colombia, Chile, Ecuador
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Transforming leadership | Page 5 of 12
_ 552
Aqualia
| Incorporating sustainability in the integral water cycle
BUSINESS PERFORMANCE
Specialized in water management
51% owned by the FCC Group and 49% by IFM Investors
Serving more than 30 million users
located in 17 countries
More than 45,000 km of supply networks
(3,656 km of transport network and 41,743 km of distribution network)
Spanish industry market leader,
positioned at the forefront, specialized, transparent and innovative
SUSTAINABLE PERFORMANCE
Certified excellence in the area
of Integral Water Cycle Management
Quality Management
System
ISO 9001
Environmental
Management System
ISO 14001
Energy
Management
System
ISO 50001
Aqualia
Certifications
Greenhouse
Gases
ISO 14064
Certificate of
Company’s
Contribution to
SDGs
A-LAB
Accreditation
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Transforming leadership | Page 6 of 12
_ 553
FCC Construcción
| Creating works that connect cities
FCC Construcción is a leader in the development of infrastructures and
in the execution of civil engineering, industrial and building works. It is
currently the fourth largest construction company in Spain and is also
among the top 35 internationally.
Likewise, the FCC Group's construction area specialises in the follow-
ing services:
Construction area specialises
Civil works
Building
Industrial building
Concessions
• Rail infrastructures
• Residential building
• Electromechanical installations
• Roads
• Bridges
• Tunnels
• Maritime infrastructures
• Airport infrastructures
• Hydraulic infrastructures
• Underground
• Filtering stations
• Non-residential building: Hospitals, football
• Electricity distribution networks
stadiums, museums, offices
• Maintenance of facilities
• Infrastructure maintenance
• Prefabricated buildings
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Transforming leadership | Page 7 of 12
_ 554
FCC Construcción
| Creating works that connect cities
BUSINESS PERFORMANCE
SUSTAINABLE PERFORMANCE
Presence in 26 countries
A history of 120 years
Under the FCC Industrial brand, the company is made up of a group of companies
(Matinsa, Megaplas and Prefabricados Delta) dedicated to the industrial sector, as well as other
activities related to the construction industry
Km of connected cities (tunnels, roads and motorways):
700 km of tunnels
8,500 km of roads and motorways
Certified excellence in the Infrastructure Area
Quality Management
System
ISO 9001
Environmental
Management System
ISO 14001
Energy Service
Providers
UNE 216701
ISO 14064
Certifications
Construction
Collaborative
Management
System
ISO 44001
Information
Security
ISO 27001
Zero waste
Certification1
A-LAB
Accreditation
1. For the FCC Construcción
headquarters, the zero waste
certification process has started
this year.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Transforming leadership | Page 8 of 12
_ 555
Cementos Portland Valderrivas
| Transforming raw materials
The cement area of the FCC Group represents the cement business
with the extraction of raw materials, such as aggregate, and the
manufacture and marketing of construction products such as clinker,
cement, concrete, dry mortar and special products. The company is
currently active in Spain, Tunisia, United Kingdom and the Netherlands,
depending on its positioning for extraction and/or treatment of
materials, as well as their import, as shown below:
Countries and activity
Spain
Tunisia
The Netherlands
United Kingdom
• Cement factories
• Concrete factories
• Aggregate quarries
• Dry mortar plants
• Cement factories
• Concrete factories
• Aggregate quarries
• Maritime terminal
• Trading activities
• Clinker processes
• Maritime terminals
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Transforming leadership | Page 9 of 12
_ 556
Cementos Portland Valderrivas
| Transforming raw materials
BUSINESS PERFORMANCE
SUSTAINABLE PERFORMANCE
119 years in operation
Leading cement Group in Spain in terms of production capacity
4 countries in which it provides its services
Production centres in various regions of the country
5,269,077 tonnes of cement production
5,107,503 tonnes of clinker production
+28.95% of revenues
came from Tunisia and the United Kingdom
International exports
North Africa, Central America and Europe
Certified excellence in the Cement Area
Quality Management
System
ISO 9001
Environmental
Management System
ISO 14001
CPVG
Certifications
EMAS
Certificate of
Compliance with
Royal Decree
163/20171
Occupational Health
and Safety
Management System
ISO 45001
1. Certificate for the concrete
batch plants located in Zona
Franca and Vallcarca (Barcelona).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Transforming leadership | Page 10 of 12
_ 557
Key figures and growth
| Unprecedented growth for the FCC Group
Below are the main turnover figures for the FCC Group at the end of 2021.
TURNOVER EVOLUTION OF THE FCC GROUP (Millions of euros)
TURNOVER OF 2021 PER BUSINESS AREAS
6,276
6,158
6,659
7%
26%
49%
Environmental
services
Water
Construction
Cement
2019
2020
2021
18%
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Transforming leadership | Page 11 of 12
_ 558
Innovation
in our DNA
| Technology and Innovation:
a key tool for the sustainable
development of cities
To achieve the objectives of sustainable development in terms
of economic growth, environmental preservation and social pro-
gress, public administrations and businesses must act on sev-
eral fronts, including harnessing and maximising the potential of
technological innovation.
The FCC Group understands that the development and innova-
tion of new technologies plays an essential role in tackling many
of the main challenges facing cities in terms of sustainability: cli-
mate change and pollution, increasing inequality, demographic
growth and the scarcity of water resources, among others.
Innovation has formed part of the FCC Group's DNA since its
foundation and is one of the hallmarks of the company, which
materialises this commitment through its businesses. With more
than 120 years of expertise, FCC has invested a significant
amount of financial and human resources to develop R&D&I
projects, with the ambition of fostering a business culture that is
increasingly oriented towards technological updating, research
and the generation of ideas.
Each business area has its own line of R&D&I to ensure the
appropriate response to each of its activities and to seek inno-
vative solutions that aim to minimise its impact on the environ-
ment, as well as to multiply the efficiency of its processes. In
this way, FCC promotes a high level of well-being for people by
guaranteeing a wide range of essential urban goods and ser-
vices, such as the management and treatment of urban waste
and the integral water cycle management or the construction
of buildings and infrastructures such as motorways, airports,
undergrounds, railways, tunnels and bridges, among others.
Innovation in our DNA
| Leading progress
towards continuous innovation
FCC Group projects
at the forefront of the sector
Project “BICISENDAS”
The Construction Area seeks to integrate sustainability into
infrastructures through "BICISENDAS", a project aimed at
developing a sustainable, energy self-sufficient, smart and
safe cycling lane. With this, the company seeks to improve
both the safety and comfort of citizens and the environmen-
tal sustainability of its surroundings.
Project “VALOMASK”
In the context of the pandemic, the Environment business
has launched the innovative "VALOMASK" project. This is
based on the design on an industrial scale of an optimised
process for the mechanical separation of masks, as cur-
rently the environmental compounds are not technologically
prepared to manage this new waste in a sustainable man-
ner. Thus, this project will make it possible to characterise,
classify, separate and, finally, recover them.
Environmental Services Area
Infrastructures Area
Project “ADVISOR”
Development of innovative technologies focused on electric
mobility, energy efficiency and the use of alternative energies, in
order to achieve more sustainable cities.
Development of the latest constructure technologies in the
fields of artificial intelligence, Big Data and digital technologies
such as BIM or Blockchain.
Cement Area
Water Area
Development of cutting-edge technologies focused mainly on the
production of materials such as cement, concrete, aggregates and
mortar that improve mechanical performance and durability,
extending the useful life of infrastructures.
Development of innovative technologies in the integral water
cycle of its facilities, especially in the treatment, recovery and
reuse of waste water and water resources, as well as in water
efficiency and optimization.
The water business has presented the Guijuelo filtering
plant, a biofactory project in which the waste generated
by the agri-food industry, together with the sludge from
the plant, is transformed into energy, biofuels, bioplastics
and biofertilisers. In this way, the 3,000 tonnes of biowaste
treated in the biofactory are converted into enough biofuel
to power 50 vehicles, which already drive around the mu-
nicipality with the biomethane obtained at the filtering plant.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Transforming leadership | Page 12 of 12
_ 559
Positive success:
milestones and awards
| A year of action and achievement
During the year 2021, the FCC Group has continued its work
framed by new sustainability strategies with the intention of
sensing and anticipating the future, and consolidating its pres-
ent. Moreover, this work has once again been recognised for the
high work performance it entails, as well as for the promotion
of sustainability and innovation as key pillars of the company's
identity, as shown by the following milestones, achievements
and awards:
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
AENOR certifies Aqualia’s asset management
generates value for all its target market.
FCC Group renews its commitment to the Diversity
Charter.
FCC Construcción, pioneer in combining BIM and
Blockchain.
FCC Medio Ambiente is awarded with the
Ecological Industrial Vehicle of the Year 2021 for
the launch of ie-Urban.
Aqualia receives the European Excellence Awards
(EEA) for its communication campaign “Who is
behind the water we use at home?”
FCC Medio Ambiente introduces its Sustainability
Strategy 2050.
FCC Construcción receives the EJE&CON distinction
as a committed company.
FCC Medio Ambiente obtains Gold Glass certification
for its two recycling facilities in the USA.
The reports about the New Cairo wastewater
treatment plant and the El Realito water supply,
owned by Aqualia and IESE Business School, are
recognized by the United Nations.
Aqualia MACE receives from its client ADSSC (abu
Dhabi Sewerage Services Company) the awards
recognizing it as “The best company in energy
management system implementation”.
FCC Group honoured with FESBAL’s “COVID-19
Stars” award, for its involvement and commitment to
solidarity during the health crisis.
FCC joins the campaign #apoyamoslosODS
(#supportingSDGs) promoted by Pacto Mundial in
Spain.
FCC Medio Ambiente obtains the
“Calculo-Reduzco” seal for the third consecutive
year.
Aqualia awarded for an educational project that has
trained 250,00 students in responsible water
consumption.
Cementos Portland Valderrivas presents its Energy
and Climate Neutrality Plan at the Mataporquera
factory (Cantabria).
Aqualia presents its Strategic Plan 2021-2023.
FCC Construcción renews its registrations in the
Carbon Footprint Registry, offsetting and CO2
absorption projects.
FCC Medio Ambiente honoured at the 2021
Maritime Rescue SDG 14 Awards.
End of the year
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report
_ 560
Pillars to guarantee Citizen Services
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 1 of 13
_ 561
Strategic responsibility
A responsible declaration
| Working on the pillars that
will help build the sustainable
cities of tomorrow
Creating shared value
| Defining a reference work for society
FCC: more than a century
taking care of cities
The FCC Group's extensive performance in the provision of cit-
izen services over the years has made it one of the leading and
most recognised companies in its sector, both nationally and
internationally.
The FCC Group understands its raison d'être and long-term
commitment to leadership in the creation and restructuring of
cities as potential smart, sustainable, inclusive and responsible
environments.
With operations in more than 30 countries, the company works
to improve people's quality of life, meeting their expectations
and the needs of the environment in which they live. Its consol-
idated track record as a socially responsible company has ena-
bled its businesses to continue sharing value across the board
through the following strengths.
A service with more than 120 years of experience,
based on a specialized and quality work carried out by
great professionals in each of the areas that comprise
the FCC Group.
The ethical and responsible culture that surrounds
the Compliance Model, as well as the plans and strate-
gies of the FCC Group and its Business areas.
Attention to the maximum health, safety and well-being
of professionals, especially in those functions that involve
added risk.
Care and protection of the environment by incorporating the
business into the circular economy model.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 2 of 13
_ 562
Thus, with the aim of offering the best service to citizens, the
FCC Group has positioned itself as a company specialising in
sectors that guarantee the progress and care of tomorrow's
cities through integral water cycle management, efficient man-
agement of environmental services and the construction of im-
portant infrastructures.
Construction
Water
Environment
Cement
Civil Engineering
Building
Infrastructure maintenance
Industrial
Concessions
Prefabricated products
Diseño, construcción y
financiación de infraestructuras
hidráulicas
Servicios de operación,
mantenimiento y asistencia
técnica
Gestión integral de servicios
públicos
Waste collection, treatment and
recycling
Maintenance of green areas
Maintenance of sewage networks
Restoration of contaminated soils
Street Cleaning
Cement
Other businesses:
Concrete
Aggregates
Mortart
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 3 of 13
_ 563
MISSION, VISION AND VALUES: ONE FCC
ONE FCC, CONSOLIDATED VALUES
MISSION
VISION
VALUES
To design, carry out and
efficiently and sustainably
manage the environment
services, the management
of the integral water cycle
and the construction of
major infrastructure works
to improve the lives of
citizens.
To be an international
reference Group in
Citizen Services that
offers global and innovative
solutions for the efficient
management of resources
and the improvement of
infrastructures, contributing
to improving the citizens’
quality of life and the
sustainable progress of
society.
FCC Group, which operates
in various sectors of society,
contributes to the
sustainable development
and social transformation of
the territories through the
provision of services. This
commitment is based on
values that represent the
roadmap that guides the
Group’s behaviour and
determines its culture.
Honesty and
Respect
Results
orientation
Rigour and
professionalism
Loyalty and
commitment
Well-being and
development of
communities
1
2
3
4
5
We want to be recognised for our honest and
upright behaviour, which merits the trust of
collaborators, customers and suppliers as
long-standing partners of reference.
We pursue the improvement and the achievement
of goals, to make FCC a reference in profitability
and competitiveness.
We work with exemplary behaviour and culture of
service, developing our capacity to seek efficient
and innovative solutions.
We promote diversity, encourage professional
development and recognize merit and creativity as
a stimulus to productivity and progress.
Aware of the value that our services bring to
society, we are committed to the protection of the
natural environment and the development and
well-being of communities.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 4 of 13
_ 564
The Group's contribution
to the SDGs
| The FCC Group, ready to succeed
in the Decade for Action
Following the approval of the 2030 Agenda commitments, the
FCC Group has strengthened its business model with sustain-
able development, through strategies in favour of people, the
planet and progress.
To this end, both its internal procedures and its action plans
have been progressively aligned with the 17 Sustainable De-
velopment Goals (SDGs) and the specific targets that comprise
them. Examples of this are: the framework for action provid-
ed by the Group's Corporate Social Responsibility Policy; the
progressive work during the 2021 financial year on the FCC
ESG Framework from the corporate Sustainability Committee,
as well as the various Sustainability Strategies of the various
business lines.
The FCC Group, in addition to
aligning its corporate management
with the 2030 Agenda, has once
again become a spokesperson
for the SDGs to disseminate its
work and mobilise its business
environment through the
United Nations Global Compact
Spain's #apoyamoslosODS
[wesupporttheSDGs] campaign
Citizen services focused on responding
to sustainable development priorities
Corporate Social Responsibility Policy
FCC Framework ESG
As part of the solution to the challenges and opportunities
of the global agenda, the FCC Group predisposes, from its
Board of Directors, and through this policy, an exemplary
professional performance based on innovative and quality
initiatives to maximise its positive impact on the communi-
ties where it carries out its activities.
This new roadmap to address the FCC Group's environ-
mental, social and governance strategy is comprised of
programmes aligned with the SDGs.
Business line strategies
Serving all the sectors that make up the FCC Group, its
business areas complement the company's global purpose
with strategic lines that address in depth their own specific
impacts and opportunities.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 5 of 13
_ 565
MAKING A COMPREHENSIVE CONTRIBUTION TO A SPECIALISED BUSINESS
The Water Area, through water and drainage man-
agement, contributes to maintaining healthy con-
ditions for citizens, preventing infections and the
spread of disease.
Through its activities, the Water Area promotes ac-
cess to water, as well as the quality of this resource,
while working to improve the efficiency of water re-
sources.
For its part, the Construction Area contributes to the
achievement of this objective by developing infra-
structures dedicated to water management.
Photovoltaic panels and equipment for the produc-
tion of renewable energy have been installed in dif-
ferent facilities, both at the corporate headquarters
in Las Tablas and in centres of the Water and Envi-
ronment Areas.
The Construction Area also contributes to this ob-
jective through the development of energy-efficient
facilities.
All the business areas generate new jobs and trans-
mit to their workers the business culture of the FCC
Group based on talent, diversity and equal oppor-
tunities.
The FCC Group is committed to innovation across
the board, investing in the development and imple-
mentation of new technologies, with the aim of re-
ducing its environmental impact and guaranteeing
the development of quality products and services
that meet the real needs of citizens.
The Environment Area manages a Special Employ-
ment Centre (CEE): FCC EQUAL, from where it also
collaborates with entities, organisations and foun-
dations specialised in the professional integration of
people with disabilities.
The Water Area provides, through the development
of its activity, access to basic services such as water
and drainage.
The Construction Area supports the development
of more sustainable and resilient cities and commu-
nities, while simultaneously striving to protect and
safeguard the cultural and natural heritage of the en-
vironments in which it operates.
For its part, the Cement Area is committed to re-
searching solutions that will allow it to reduce water
and energy consumption at its facilities, reintroduc-
ing waste into its production processes.
All the FCC Group's business areas apply the prin-
ciples of the Circular Economy from a dual perspec-
tive, optimising the consumption of resources and
investing in projects and technologies that enable
the reuse and recovery of waste.
Actions to measure, control and reduce the car-
bon footprint are common to all the FCC Group's
business areas, which, in this way, aim to mitigate
climate change. It is also committed to innovation,
process improvement and the use of alternative en-
ergies to limit greenhouse gas emissions.
The FCC Group believes that public-private collab-
oration and the development of alliances contribute
to promoting the development of the 2030 Agenda.
For this reason, the Group's business areas partici-
pate in various initiatives. Examples include Aqualia's
collaboration with universities and research centres
to promote the development and application of key
technologies; or the initiatives for the restoration of
biodiversity in quarries, together with public entities
and social agents, by the Cementos Portland Valder-
rivas Group.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 6 of 13
_ 566
Communication
with Stakeholders
| Responsible listening
to our interest groups
The activity of the FCC Group has always been strengthened
by efficient communication, continuous dialogue and a strong
interest in building transparent and lasting relationships with its
stakeholders.
Providing answers and contributing value to society is an es-
sential part of the Group's sustainable management, as well as
a key factor in both its socially responsible positioning and the
performance of its business strategy.
Along these lines, the FCC Group uses increasingly fluid com-
munication channels and procedures in order to understand the
needs and concerns of its stakeholders:
INTEREST GROUP AND THE CHANNEL FOR DIALOGUE AND COMMUNICATION
Shareholders, investors and rating agencies
Communities
• Corporate and business area websites for economic
• According to the FCC Group's business lines as responsible
performance content.
for dialogue with their local communities.
• Presentations to the Board of Directors and Committees.
Partners
• General Meeting of Shareholders.
• Shareholders' Service Office.
• Communication channels with other entities.
• Collaboration agreements, sponsorships and donations.
• Roadshows with investors to get to know the company better.
• Alliances.
• Questionnaires and interviews with agencies to assess the
• Business forums.
company and its performance.
Employees
• FCC ONE - Corporate intranet.
• Ethical channel.
• FCC listens to you - FCC's App tool.
• FCC360 - FCC's App tool.
• Periodic calls for information of interest.
• Dissemination and awareness campaigns.
• Employee portal.
• We are FCC - Quarterly online magazine.
• Publications and presentations.
• Due diligence procedures.
Clients
• Satisfaction surveys.
• Interlocutor role.
• Dialogue channels specific to each business line.
Trade unions
• Meetings with committees.
• Agreements.
• Labour inspections.
• FCC Newsletter in poster format translated into 13 languages.
Certification and accreditation bodies
Suppliers and contractors
• Information and awareness-raising sessions.
• NALANDA platform for the approval of suppliers.
• Obligation to respect the FCC Code of Ethics and Conduct
and the Anti-Corruption Policy.
• Full commitment to the application of the ten Principles of the
UN Global Compact.
Public administrations and regulators
• Voluntary participation in sectoral self-regulatory initiatives and
legislative developments.
• External audits.
• External verifications.
• Participation in working groups.
Financial entities
• Surveys.
• Meetings.
• Green bonds (FCC Medio Ambiente Iberia).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 7 of 13
_ 567
For a more immediate dynamic,
both the FCC Group and its areas
are present on social media,
guaranteeing direct contact
with each audience: Facebook,
Twitter, YouTube, Instagram
and LinkedIn.
FCC also has a contact form and a directory of headquarters,
offices and main departments on its corporate website, with
the corresponding addresses and contact telephone numbers.
In addition, for a closer dialogue with stakeholders, the FCC
Group has a Sustainability mailbox published on the corporate
website, through which any interested party can take the initia-
tive to contact the company to address issues in this area.
All information on environmental, social and governance per-
formance is reflected in each Sustainability Report and com-
munication on these matters, which both the Group and each
business line provide publicly and periodically on their respec-
tive corporate websites.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 8 of 13
_ 568
Focused
on the material
| Prioritising ESG expectations
The FCC Group, aware of the strategic need to analyse and
respond to the demands and expectations of its stakeholders,
has carried out an exhaustive update of its materiality study in
2021. This materiality analysis allows the company to determine
the most relevant social, environmental and governance issues
in each of the Group's businesses.
To facilitate comparability of the results, the 23 issues assessed
in the 2020 materiality study, which were aligned with the main
sustainability reporting frameworks, as well as with the require-
ments of Law 11/2018 on non-financial reporting and diversity,
have been maintained.
The main objective of updating the study was to strengthen
stakeholder participation in the process of determining materi-
ality, establishing direct consultations for employees, suppliers
and customers of the Group's various businesses. Likewise,
and through the analysis of different sources of relevance and
the development of a press analysis, the perspective of share-
holders, communities and partners is included in the study. The
consolidation of these results has formed the external rele-
vance axis.
With regard to the internal relevance of the issues, the as-
sessments carried out in the previous study were maintained,
involving the participation, by means of interviews and ques-
tionnaires, of the members of the Management Committees of
the Group's businesses, as well as a selection of executives
from Central Services.
In the case of Aqualia, as it has a specific materiality analysis, the
results have been adapted to make up the Group's materiality.
For the determination of material issues for each business,
those issues are considered whose relevance, both internally
and externally, exceeds the average of the scores.
The following table shows, in summary form, the material issues
for each of the businesses:
Environment
Water
Construction
Cement
MATERIAL MATTERS BY BUSINESS
Ethics, integrity, compliance and good governance
Risk management and control systems
Quality of service and customer satisfaction
Innovation and digital transformation
Cybersecurity and data protection
Fiscal transparency and tax contribution
Pollution prevention
Circular economy and waste
Water resources management
Material consumption
Energy consumption and energy efficiency
Climate change
Biodiversity
Food waste
Talent attraction and retention
Training and professional development
Diversity, equality and inclusion
Safety, health and well-being
Contribution and social commitment
Promotion and respect for human rights
Relation with local communities
Liability to contractors
Sustainable supply chain
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 9 of 13
_ 569
The results of the materiality study show the transversal rele-
vance of three issues: Ethics, integrity, compliance and good
governance; Circular economy and waste; and Safety, health
and well-being. These three issues will have differentiated lines
of work in the FCC Group's ESG Framework, which is set out in
the following section.
The materiality matrices for the FCC Group's businesses are
presented below:
Environment
Construction
e
c
n
a
v
e
e
r
l
l
a
n
r
e
t
x
E
e
c
n
a
v
e
e
r
l
l
a
n
r
e
t
x
E
100
80
60
40
20
0
100
80
60
40
20
0
20
40
60
80
100
Internal relevance
Cementos Portland Valderrivas
20
40
60
80
100
Internal relevance
e
c
n
a
v
e
e
r
l
l
a
n
r
e
t
x
E
e
c
n
a
v
e
e
r
l
l
a
n
r
e
t
x
E
100
80
60
40
20
0
100
80
60
40
20
0
20
40
60
80
100
Internal relevance
Aqualia
20
40
60
80
100
Internal relevance
Climate change
Ethics, integrity, compliance and good governance
Circular economy and waste
Service quality and customer satisfaction
Safety, health and well-being
Risk management and control systems
Pollution prevention
Innovation and digital transformation
Training and career development
Promotion and respect for human rights
Energy consumption and energy efficiency
Talent attraction and retention
Material consumption
Water resources management
Social contribution and commitment
Diversity, equality and inclusion
Fiscal transparency and tax contribution
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 10 of 13
_ 570
Sustainable
cross-cutting
management
Building resilient businesses and contributing to a fairer world
are necessary elements for long-term success. To do so, com-
panies need to insist on incorporating sustainability into their
strategy, operations and processes.
In this line, the FCC Group, since its adherence in 2016 to the
transformation of this business paradigm with the approval of its
Corporate Social Responsibility Policy (hereinafter CSR Policy),
has focused its efforts on making the commitments undertaken
tangible.
In 2016, the FCC Group aproved
its Corporate Social Responsibility
Policy, integrating it at the heart
of its business model
Sustainability Policy
and Governance
| An in-depth work
Corporate Social Responsibility Policy
The FCC Group integrates its CSR Policy at the heart of its
business model, being inherent to the commitment and actions
of all the members that make up the Group. Thus, this tool is
a distinctive element that characterises FCC as a partner and
employer of reference, aligning itself with the demands of its
customers, the people who make up the Group and society as
a whole.
In particular, this Policy establishes the commitments to which
the Group is committed, especially in connection with its Integ-
rity and Business Ethics framework, as well as with respect for
the environment and its social contribution in carrying out its
activities. In addition, it is essential to highlight that this Policy
is the framework for action, which governs the development of
the various activities of the Group wherever it operates.
Likewise, in order to develop, implement and comply with the
CSR Policy, master plans are defined in which specific pro-
grammes and goals are incorporated, and the FCC Group's
Sustainability Committee and the areas are responsible for their
observance and monitoring.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 11 of 13
_ 571
A sustainable government
As shown in the following chart, the FCC Group is committed
to a strong governance structure in the area of Sustainability.
Thus, Sustainability in the Group is managed by the Board of
Directors, through its Executive Committee; with a corporate
Sustainability Committee and others by business area; and with
the Compliance and Sustainability Department.
• Board of Directors:
In line with recommendations 53 and 54 of the Code of Good
Governance of the CNMV [National Securities Market Com-
mission], the Board of Directors supervises compliance with
the CSR Policy of the FCC Group.
• Sustainability Committee:
It coordinates with the business areas (Aqualia CSR Commit-
tee, FCC Environmental Services Sustainability Committee,
FCC Construcción Sustainability Committee and CPV [Ce-
mentos Portland Valderrivas] CSR Committee) the different
ESG actions within the FCC Group. In particular, they are re-
sponsible for developing, implementing and complying with
the CSR Policy.
• Compliance and Sustainability Directorate, integrated
within the General Secretariat:
It supports the corporate Sustainability Committee in the de-
velopment of its functions, fundamentally in the design of the
Sustainability strategy, and establishes the systems for moni-
toring results, with regard to the FCC Group's CSR practices.
It determines the associated risks.
Quality and innovation
Based on the continuous improvement of its services,
the FCC Group focuses its efforts on satisfying and
anticipating the needs of its interest groups.
Integrity in its actions
In compliance with the legislation of each territory in
which it operates, the FCC Group guarantees the in-
herent rights of every human being, rejecting all dis-
crimination and showing a respectful attitude towards
the environment.
Efficiency in management
Through its extensive experience, the FCC Group
seeks to align the performance of its services with the
optimal use of resources, promoting their responsible
use.
Proximity and commitment
The FCC Group not only creates human relationships
with its communities based on mutual respect and di-
alogue, but also transforms cities into smart, respect-
ful and inclusive environments.
GUIDING
PRINCIPLES.
FCC GROUP
CSR POLICY
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 12 of 13
_ 572
ESG Ambition
| Driving the Group's social, environmental
and governance future
Following the implementation of the IV CSR master plan for
the previous period 2018-2020, the FCC Group is working on
a new framework that continues to place sustainability at the
heart of its business model.
In 2021, the FCC ESG Framework was carried out, an analysis
and study prior to the company's sustainability strategy for the
coming years, which will be materialised in the Group's V plan
"ESG Plan 2025", with a view to the objectives, challenges and
goals of the global strategies, the 2030 Agenda and the 2050
horizon.
The ESG FCC Framework was drawn up based on the de-
mands and expectations of the company's interest groups, as
well as on regulations and macro-trends, also considering the
main conclusions of the closing of the CSR 2020 master plan,
among others. The following is a more detailed account of the
extensive analysis undertaken by the Group in developing this
work.
INTERNAL ANALYSIS
EXTERNAL ANALYSIS
• The extraction of the conclusions of the past IV Master Plan
for its evaluation as lessons learned and as an essential
resource to promote areas of improvement to be followed
up in future plans.
• Understanding the company's Compliance Model and reg-
ulatory framework.
• Analysis of the sustainability visions of the Group's busi-
nesses as a driver for the Group's overall strategy, mission
and value.
• New changes in the national and European regulatory environ-
ment for sustainability and non-financial reporting.
• Attention to current macro-trends in the markets in which it
operates, placing special emphasis on highly relevant issues
such as climate action, biodiversity conservation and the fight
for equality.
• Active listening based on the understanding of internal and ex-
ternal interest groups, as well as on the compilation of best
practices in all the sectors in which the FCC Group operates,
and an exhaustive materiality analysis.
• We have responded to the demands for best practices in en-
vironmental, social and governance management of interest
groups from opinion leaders, analysts, financiers, investors,
institutions and rating agencies.
• Alignment with the Sustainable Development Goals as a con-
stant opportunity to continue contributing to the solutions re-
quired by today's global society.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Strategic responsibility | Page 13 of 13
_ 573
The FCC ESG Framework is the starting point for guiding the
future of the FCC Group's activities in ESG criteria, with an ap-
proach in line with, on an international level, the 2030 Agenda,
the European Green Pact, the Paris Agreement or the European
Climate Law, and on a national level, with the Business and Hu-
man Rights Action Plan, or the Recommendations of the Code
of Good Governance, among others.
Under the slogan Together we build a better future, the main
lines of action on which the FCC Group will work to establish
and integrate an ESG culture across the board are as follows.
The analysis of progress and needs in the field of sustainability
underpin FCC's ESG Framework. Improving processes and tak-
ing on new challenges will require maximum coordination within
the Group, from the Group's Sustainability Department and the
business areas, to the involvement of expert teams and external
entities associated with the Group's ESG management.
FRAMEWORK ESG FCC
| Together we build a better future
E
ENVIRONMENTAL
INNOVATION,
COMMUNICATION
AND
ALLIANCES
S
G
INNOVATION
Generating knowledge synergies
to promote innovation,
technology and digitalization.
COMMUNICATION
Reinforcing the information we
provide on sustainability.
ALLIANCES
Building strong alliances to
contribute to the 2030 Agenda.
Climate action
Transition to a competitive low-carbon economy.
Circular economy
Application of its principles to achieve an efficient use of resources.
Water management
Reducing water stress where we operate.
Biodiversity protection
Contribution to the maintenance of natural heritage.
Human rights
Ensuring their protection internally and throughout the value chain.
Social action
Contributing to the development of the communities where we
operate.
Human resources
Promoting talent and empower our professionals.
Healht and well-being
Caring for people’s health through physical and mental well-being.
Diversity and equality
Generating a real culture of respect, tolerance and equity.
SOCIAL
GOVERNANCE
ESG risk management
Minimising the impact of non-financial risk on results.
Value chain
Transmitting our ESG commitments throughout the value chain.
Ethics, integrity and compliance
Maintaining a robust model to ensure responsible behaviour.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report
_ 574
ESG
A common project with a transversal vision:
ESG, three letters for transformation
Environmental, Social & Governance
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment
_ 575
Climate change
ESG
Environmental challenges
Response from the FCC Group
Climate change is one of the greatest challenges
facing humanity in the short to medium term:
• Global warming is likely to reach 1.5°C between
2030 and 2050 if it continues to increase at the
current rate(3).
• By the end of the 21st century, the average sea
level is likely to rise by at least 0.3 metres above
the levels of the year 2000(4).
• Natural disasters and physical hazards are ex-
pected to increase due to the growing intensity
and aggressiveness of climate change(5).
The FCC Group has not ceased to be committed to
the fight against the effects of climate change and
the lack of resources. The FCC Group considers it
an obligation to reduce greenhouse gases in all its
business areas.
• FCC Construcción has achieved its objective of
verifying 100% of its activity under the ISO 14064
Greenhouse Gases Emissions Standard.
• Part of the Cement Area's Energy and Climate
Neutrality Plan focuses on replacing 80% of its
fossil fuels with alternative fuels, and increasing
its energy efficiency by 11% by 2030.
Environment
| Environmental commitment
(3) World Economic Forum, (2021), The Global Risks Report 2021.
(4) World Bank, (2018) Trends in Solid Waste Management.
(5) Competence Centre on Foresight de la Unión Europea, Global demand for resources.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment
_ 576
Circular Economy and Sustainable Resource Management
Protection and restoration of biodiversity
Environmental challenges
Response from the FCC Group
Environmental challenges
Response from the FCC Group
Overexploitation and/or mismanagement of natural
resources could lead to chemical, food, mineral, wa-
ter or other natural resource crises(6). In this area, the
following data stand out:
• Approximately 2010 million tonnes of global mu-
nicipal solid waste is generated annually, of which
at least 33% is not managed in an environmental-
ly safe way. Global waste is expected to grow to
3.4 billion tonnes by 2050(7).
• Global demand for materials is estimated to have
increased tenfold since the beginning of the 20th
century and is expected to double again by 2030.
• Available resources are currently being used 50%
faster than they can be regenerated by nature.
Significant amounts of resources continue to be lost
due to inefficient waste management practices. It is
therefore vital to reuse resources in economies, pro-
viding value for longer and reducing the need to use
virgin materials(8).
The FCC Group strives to raise awareness and to
develop and innovate with new technologies for the
circular economy.
• FCC Medio Ambiente participates in the Euro-
pean Week for Waste Prevention and shows
its commitment through initiatives such as the
Life4FILM Project, to prevent the incineration
and dumping of polyethylene film plastic waste
through innovative recycling technologies.
• Other projects include the improvement of waste
treatment systems, landfill degasification, in-
creased recycling or the implementation of treat-
ment systems such as biomethanisation or com-
posting.
• Aqualia, through its Life Intext project, uses in-
novative technologies for the recovery of water
resources.
The destruction and loss of biodiversity can have
consequences comparable to climate change(9).
• It is estimated that around 25% of animal and
plant species are threatened and it is estimated
that approximately 1 million species are in danger
of extinction(10).
In this context, corporations must consider biodi-
versity for their long-term sustainability, as loss of
biodiversity can represent a reputational, regulatory
and financial risk(11).
The FCC Group carries out projects to raise environ-
mental awareness, collaborates with environmental
conservation groups to restore natural and urban
ecosystems, monitors birds and other endangered
species and restores landfills, among others.
• FCC Medio Ambiente Iberia takes part in the
cleaning of the seabed off the coast of Almuñécar.
• The Cement Area collaborates with the NAU-
MANNI Association to ensure that more than 180
species of animals, some in danger of extinction,
live in the "El Porcal" gravel pit in Madrid.
(6) World Economic Forum, (2021), The Global Risks Report.
(7) World Bank, (2018), Trends in Solid Waste Management.
(8) European Environmental Agency, (2019), Reducing loss of resources from waste management is key to strengthening
the circular economy in Europe.
(9) Agencia Medioambiental Europea, Destruction and loss of biodiversity is as catastrophic as climate change.
(10) IPBES, (2019), The Global Assessment Report on Biodiversity and Ecosystem Services.
(11) GreenBiz (2020).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 1 of 27
_ 577
Planet
Environmental care and management
| The FCC Group addresses all
dimensions of environmental
sustainability and takes steps
to reduce its impacts
Environmental
management
| Responsibility towards the environment
is a key issue for all the FCC Group's
business lines
Due to the characteristics of its activity, the FCC Group has had,
since its origins, an important influence on the configuration of
cities, especially in urban management. It therefore strives to
continue to provide solutions to promote the resilience of cities
and the improvement of the quality of life of their inhabitants.
EXPERTISE FOCUSED ON SECURING
CITIZEN SERVICES WHILE MINIMISING
THE IMPACT ON CITIES
The activity of Environmental Services focuses on urban waste man-
agement and the provision of municipal services, which enables the
company to improve life in cities, creating cleaner environments and
spaces in better condition.
Aqualia, for its part, focuses on integral water cycle management,
supplying populations and ensuring quality consumption, with the aim
of improving people's well-being, preserving water resources and im-
proving management efficiency.
FCC Construcción contributes to urban development by consolidat-
ing its position as a benchmark in the construction of transport and
building infrastructures, towards increasingly sustainable development.
Cementos Portland Valderrivas, in turn, uses advanced technology
to comply with environmental regulations, focusing on optimising re-
sources and minimising waste.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 2 of 27
_ 578
However, aware of the particularities of its businesses, the
Group identifies the possible current and foreseeable impacts
that its activities may generate in cities. In this way, it assess-
es the environmental performance of each of its main areas of
activity and applies the necessary practices and techniques to
minimise their most significant effects.
THE FCC GROUP IS CONCERNED ABOUT KNOWING AND DETERMINING
ITS MAIN IMPACTS ON THE ENVIRONMENT
Cross-cutting impacts
• Resource consumption
(materials, fuels, energy and
water).
• GHG emissions into the
atmosphere and other
pollutants.
FCC Servicios Medio
Ambiente
• Consumption of chemical
cleaning products.
• Noise.
• Hazardous and non-hazardous
waste generation from
production, maintenance or
service works.
• Discharges and leachates.
• Emissions of combustion
gases, fermentation, suspended
particles and odours.
Aqualia
FCC Construcción
• Consumption of reagents.
• Impact on the territory due to
displacements or falls of granular
material during its transport.
• Emissions of dust particles.
• Discharges.
• Noise and vibrations.
Cementos Portland
Valderrivas
• Extraction of natural resources.
• Discharges.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 3 of 27
_ 579
The Group's environmental
commitments
| Management, control and prevention
In addition, each business line has developed these general
principles of the Group's Environmental Policy into its own en-
vironmental policies, which are more in line with the singularities
of its activities and with a view to maintaining specific environ-
mental management systems.
In order to ensure compliance with environmentally responsi-
ble practices, as well as to comply with current environmental
regulations, the FCC Group has had an Environmental Policy
approved by its Board of Directors since 2009.
This policy must be applied to all business lines and is the cor-
nerstone of the Group's Environmental Management System. It
establishes the principles of environmental conservation, as well
as the correct use of natural resources.
SPECIALISED ENVIRONMENTAL
MANAGEMENT IN EACH AREA
FCC Servicios Medio Ambiente
FCC Construcción
Environmental Policy
| Transversal commitments
• Control and monitoring of significant environmental
impacts.
• Pollution prevention, climate change adaptation and
mitigation.
• Observation of the environment and innovation.
• Consideration of the life cycle of its products and ser-
vices.
• Commitment to continuous improvement.
The Construction business has an Environmental
Policy which emphasises the analysis of environ-
mental incidents, preventive actions and the re-
duction of significant impacts of the works or the
organisation's fixed centres.
Cementos Portland Valderrivas
With regard to Cement, its Environmental Policy re-
flects commitments such as the reduction of water
discharges, the energy recovery of waste and the
restoration of adverse impacts caused by its opera-
tions.
Some of the companies that make up the Environ-
mental Services area include in their Environmental
Policy principles of action to promote safer, more
innovative and energy-efficient working environ-
ments.
In the UK, the company includes its environmental
management in its SHEQ Policy Statement, adding
the principle of quality to the principles of environ-
ment and safety.
In Central Europe, the company has policies adapt-
ed to the characteristics and legislation of each
country.
Aqualia
The Water business has an Integrated Policy adapt-
ed to the comprehensive management of water as
a resource, the management of quality control lab-
oratories, and the design and construction of treat-
ment plants and water works concessions, among
others.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 4 of 27
_ 580
FCC Group Environmental
Management System
More than 80%
certified activity
The FCC Group works every year on continuous improvement,
in line with its Environmental Policy, which allows the company
to work on the certification of its environmental management
systems, always with the highest international quality stand-
ards, in accordance with the reference regulations in environ-
mental matters.
In fact, as can be seen below, all the businesses that make up
the FCC Group have environmental management systems cer-
tified in accordance with the ISO 14001 standard. The following
table also shows the different types of environmental certifica-
tions held by the Group's businesses, according to the particu-
larities of their activities.
From a global point of view, 83.09% of the Group's activity
is certified in accordance with different environmental quality
standards.
FCC Servicios Medio Ambiente
FCC Construcción
FCC ACTIVITY WITH ENVIRONMENTAL CERTIFICATION (%)
• ISO 14001:2015
• ISO 50001:2018
• EMAS
• Certificate of Conformity to Regulation (EU)
No. 1179/2012 for its glass recycling centres
• Accreditation as Soil and Waste and Groundwater
Inspection Body according to ISO 17020:2012
• PAS100
Aqualia
• ISO 14001:2015
• ISO 50001:2018
• Certificate of Business Contribution to the SDGs
• A-LAB accreditation
• ISO 14001:2015
• ISO 14064-1:2012
• Zero waste certification
86.80%
82.70%
83%
Cementos Portland Valderrivas
• ISO 14001:2015
• EMAS
2019
2020
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 5 of 27
_ 581
Responsibility and commitment
to environmental risk prevention
Thus, for the prevention and mitigation of environmental risks,
the company applies measures at various independent man-
agement levels and on a business-by-business basis.
The FCC Group, after identifying environmental risks and im-
pacts on the environment or on health, implements measures
for their correction and prevention in accordance with the
precautionary principle. Specifically, and with regard to cli-
mate change risks, these are included in the Group's Global
Risk Management System (for more information, see section
Fight against climate change).
Almost 64 million euros
dedicated to the prevention of
environmental risks
Environment
€36,116,797
Construction
€24,984,154
Cement
€2,737,918
PREVENTING ENVIRONMENTAL RISKS IN THE FCC GROUP
FCC Medio Ambiente has environmental moni-
toring plans at each of its centres, based on the
corresponding Environmental Impact Study.
With regard to FCC Environment CEE, in Slova-
kia, for example, a system has been set up for the
identification and assessment of risks and the cre-
ation of preventive and corrective measures. This
system covers risks to health and safety, the envi-
ronment and the quality of the service or product.
Aqualia has Environmental Risk Cards adjusted to
the particular circumstances of each project and
which serve to establish preventive measures for
the risks detected.
FCC Construcción has its Sistema de Buenas
Prácticas Ambientales®
[Good Environmental
Practices System]. This is a proprietary model that
makes it possible to establish preventive measures
adapted to each project, depending on the risk of
occurrence.
Cementos Portland Valderrivas establishes
measures adapted to its activity to prevent its in-
fluence on the environment. These include: the
installation of particle filters in kilns and mills, wa-
ter filtering systems and adequate waste storage,
among others. In addition, in 2021 it carried out an
environmental risk analysis in all its cement facto-
ries and quarries in Spain.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 6 of 27
_ 582
The establishment of measures to detect and mitigate the en-
vironmental impact entails, on an annual basis, significant in-
vestments by the FCC Group companies. Therefore, in 2021,
nearly 64 million euros have been dedicated to the prevention of
environmental risks. This total amount includes 48 million euros
invested in the renewal of the fleet of vehicles and more efficient
machinery, 6.4 million euros allocated to environmental consul-
tancy, 4.5 million euros in R&D projects related to environmental
improvement and more than 280 thousand euros in environ-
mental certifications. In other expenditure and investments for
the protection and improvement of the environment, 4 million
euros have been invested.
The increase in the amount allocated to the prevention of en-
vironmental risks with respect to 2020 is motivated by the sig-
nificant increase in the fleet of vehicles and more efficient ma-
chinery by FCC Environment UK. This significant increase is due
to the greater investment made by this business with the aim
of reducing the use of fossil fuels and moving towards carbon
neutrality. The breakdown of monetary resources by type is as
follows:
RESOURCES DEDICATED TO THE PREVENTION OF ENVIRONMENTAL RISKS (€)
7%
10%
0%
7%
1%
Annual investment in renewal of more energy efficient
(hybrid or renewable) fleet of vehicles and machinery
75%
Annual investment in energy efficiency measures
Investment in R&D projects related to environmental
improvement/reduction of environmental impact
Annual environmental certification costs (ISO 14001,
ISO 5001, EMAS, etc.)
Costs of environmental consultancy
Other costs and investments for the protection and
improvement of the environment
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 7 of 27
_ 583
Sustainability in civil works: SAMCEW© methodology
In view of the lack of evaluation methodologies for civil works
in building, FCC Construcción has developed an internal meth-
odology for evaluating the sustainability of civil works: Sustain-
ability Assessment Method for Civil Engineering Works –
SAMCEW©. Based on internationally recognised methods and
business line expertise, SAMCEW© is a self-assessment and
rating system that considers and balances the three major di-
mensions of sustainability: society, environment and economy.
Thanks to this, FCC Construcción has an internal manage-
ment programme for planning construction work and identi-
fying possible improvements. It is thus able to measure the
impact of its buildings in terms of sustainability. In turn, it ena-
bles designers and managers to share advances in sustainable
practices and promote interest in sustainability to clients, plan-
ners and other stakeholders.
Integrated methodology in civil works projects:
• Industrial process infrastructures
• Dams and river works
• Linear infrastructures
• Maritime works
• Other civil works: earthworks, landfills, football stadiums,
urban development, paving, etc.
Applicable to all stages of the project life cycle:
• Product stage: from extraction of the material to the factory.
• Construction stage: includes the beginning of construction
works and transport of materials (including planning, design
and contracting).
• Use stage: includes the period in which the civil works is
used or provides a service to the community.
• End of life stage: grouping all successive stages for the end-
of-life process.
Provisions and guarantees
for environmental risks
The FCC Group and, therefore, its various companies, have a
general liability policy which they consider necessary to cov-
er any accident, damage or risk related to accidental pollution
coverage up to 10 million euros.
On the other hand, the company has an environmental civil li-
ability policy that covers up to 60 million euros in the event of
a claim and accidental pollution. Both policies are applicable
worldwide and their scope of action will depend on the limits
established with the local policies contracted.
In addition, some of the Group's business lines have additional
coverages:
• The Environmental Services Area has additional guarantees
in accordance with the legislation in force in its geographical
area. FCC Environment, for its part and in order to comply
with the obligations expressed in Law 26/2007 of 23 October
on Environmental Responsibility, carried out in 2021 an analy-
sis of specific environmental risks relating to treatment plants
and landfills. As a result of this process, none of the 8 facilities
analysed have had to establish financial guarantees.
• The Cementos Portland Valderrivas Group has a policy of
15 million euros for possible claims and 30 million euros for
accidental contamination.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 8 of 27
_ 584
Climate footprint
| Responding to the current climate crisis
Fight against
climate change
Climate change is the greatest environmental challenge facing
society today, with clear social and economic consequences.
The sixth report of the IPCC (Intergovernmental Panel on Cli-
mate Change), presented in 2021, states that the whole of hu-
manity has now suffered the consequences of the climate crisis,
the effects of which include global warming, melting ice, rising
sea levels, or the occurrence of extreme weather events.
In this context, climate change risk management should pre-
pare the sector to react to an already existing climate crisis
by considering both mitigation and adaptation measures to
its consequences. The FCC Group works to integrate climate
change management at all operational levels, and considers
the recommendations of the Task Force on Climate-Related Fi-
nancial Disclosures (TCFD) established by the Financial Stability
Board (FSB) regarding climate-related disclosures.
A model of governance involved in climate
change
As expressed in the Group's Corporate Social Responsibility
Policy, the Board of Directors of FCC is ultimately responsible
for sustainability compliance, including climate change man-
agement.
In turn, incorporated within the General Secretariat, is the Com-
pliance and Sustainability Department, in charge of supervising
the FCC Group's climate results and coordinating the Sustaina-
bility Committee. On the other hand, each of the Group's busi-
ness areas has its own tools to manage issues related to its cli-
mate performance, such as its own Sustainability Committees,
which are responsible for the development, implementation and
compliance with Sustainability policies.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 9 of 27
_ 585
Climate-aligned activity.
FCC Group Climate Change Strategy
With the aim of reducing greenhouse gas emissions and adapt-
ing to the effects produced by climate change, the FCC Group
has its own Climate Change Strategy, the pillars of which are
set out below:
CLIMATE CHANGE STRATEGY: STRATEGIC PILLARS
Monitoring
Innovation
The objective of this pillar is to improve the reporting and scope
of greenhouse gas emissions quantification.
Reduction
Setting reduction targets and actions to achieve these targets,
as well as the development of products and services with a lower
environmental impact.
Adaptation
The FCC Group considers the transition risks associated with the
political, legal, technological and market changes necessary to
achieve a low-carbon economy, as well as the physical impacts
of extreme weather events.
The new challenges presented on a global scale will require the
Group to be able to adapt to the new environment. In this way,
FCC will have to develop innovations that will enable it to reduce
its environmental impact and help its customers in the transition
to a low-carbon economy.
Communication
Establish transparent and open relations with all interest groups,
communicating the objectives set, actions carried out and other
initiatives.
As a starting point for its Climate Change Strategy, the FCC
Group has considered the impact of climate change-related
factors on its activity, especially in each of the following cate-
gories:
Products and services
The impact of climate change has meant developing innovative
and more sustainable initiatives, enabling the FCC Group to pro-
vide more efficient products and services through the application
of Circular Economy principles.
Value chain
The risks associated with climate change are driving the FCC
Group to broaden the scope of social and environmental criteria
in its value chain. Thus, the Group has a Purchasing Manual, as
well as a supplier approval procedure.
Research and development
The FCC Group is committed to innovation, designing new prod-
ucts that are more efficient and less dependent on coal, based on
continuous improvement and the Circular Economy.
Operations
The FCC Group considers the possible climate impacts on the
operations of its different business areas and promotes syner-
gies that enhance profitability and mitigate the consequences of
climate change.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 10 of 27
_ 586
Part of the change.
Climate risk management
Climate-related risks and opportunities are an integral part
of the FCC Group's Risk Management Model. The company
understands this type of exposure as inherent to its activity
and therefore a periodic analysis and evaluation is carried out
through the established controls, which allows for its prevention
and detection.
In addition, the FCC Group voluntarily reports, on an annual ba-
sis, information on climate risks and opportunities to the Carbon
Disclosure Project (CDP).
The main identified risks related to climate change that affect
the FCC Group are as follows:
RISKS RELATED TO CLIMATE CHANGE
Physical risks
Risks arising from the effects of climate change on the FCC Group's activity.
Transition risks
The transition to a low-carbon economy involves a number of risks as a re-
sult of changes in technology, policy, market, reputation and regulation that
characterise the FCC Group's environment.
Extreme Weather Events
Water shortage
New GHG emissions limit values
Regulations for energy recovery from waste
Requirements for the energy certification of energy certification of buildings
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 11 of 27
_ 587
Key results, metrics and targets
For the annual calculation of its carbon footprint, the FCC Group
follows the criteria defined in the GHG Protocol. The consolida-
tion of its total emissions, both scope 1 and scope 2, are based
on its own methodologies endorsed by the Spanish Climate
Change Office, which consider the particularities of each of its
four business areas.
The greenhouse gas emissions of the FCC Group are shown
below, considering scopes 1 and 2. To calculate them, different
methodologies have been used for each sector of the Group's
activity, all of which are aligned with the GHG Protocol.
DIRECT AND INDIRECT GHG EMISSIONS OF THE FCC GROUP
(tCO2e)
731,600
7,870,743
604,073
6,359,764
549,838
6,624,839
2019
2020
2021
Indirect GHG emissions (scope 2)
Direct GHG emissions (scope 1)
As can be seen in the graph above, there has been a slight in-
crease in direct GHG emissions, mainly as a result of increased
activity in the Cement Area.
In parallel to the individual objectives of the Group's different
businesses, the company sees a horizon based on two different
emission reduction targets, differentiating the Cement Area from
the rest of the business areas. This is due to the peculiar char-
acteristics of the cement sector, where most of the emissions
are linked to its own activity, with no possibility of reduction oth-
er than through lower production.
Starting in 2017 as the base year for both target paths, the
FCC Group has detailed the following GHG reduction targets,
including scopes 1 and 2.
Targets for the
FCC Group (excluding
Cement Business)
Target for Cementos
Portland Valderrivas
(kg CO2/T Clinker)
2030
2040
2050
-10%
-15%
-20%
2030
2040
2050
768
754
740
Cementos Portland Valderrivas presents
its Energy and Climate Neutrality Plan
to the Government of Cantabria
The Regional Minister of Industry, Tourism, Innovation, Trans-
port and Trade and the Director General of Industry of the Gov-
ernment of Cantabria have learned first-hand about the chal-
lenge faced by the cement industry for the sustainability and
decarbonisation of its production processes during their visit to
the cement factory in the town of Mataporquera.
At the event, factory management, together with the CEO and
other business executives, explained their objectives in line with
the European Green Pact, the National Integrated Energy and
Climate Plan 2021-2030 and the Law on Climate Change and
Energy Transition through the facility's Energy Transition and
Climate Neutrality Plan 2021-2030.
The Plan foresees that by 2030, 80% of the energy supply from
fossil fuels will be replaced by alternative fuels, with biomass
accounting for 40%. Energy efficiency will be increased by al-
most 11% and the consumption of renewable energies in the
electricity mix will account for 80% thanks to wind power de-
velopment projects close to the factory facilities. In addition, it is
intended to include an observatory of new technologies, which
is still in the study phase.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 12 of 27
_ 588
Pollution prevention
The FCC Group is firmly committed to reducing the different
sources of pollution in each of its businesses. It is worth high-
lighting the company's efforts to implement measures in ac-
cordance with the environmental legal requirements in force
in each country in which it operates, such as the emission limits
set or the authorisations required for discharges.
Due to the great diversity of business lines that make up the
Group's activity, each of them is given the necessary autono-
my to develop the measures that contribute most to minimising
pollution.
In the case of Cement, emissions of NOx, SOx, VOCs and HF
have decreased in 2021 due to an improvement made in the
stability of the kilns resulting in a lower amount of emissions.
For the Construction business, the total amount of emissions
has also decreased due to the fact that during 2021 there have
been more works in the design phase, which implies a lower
amount of emissions. FCC Medio Ambiente Iberia, for its part,
has increased the number of particles emitted due to the fact
that in 2021 the particles associated with fuels are being includ-
ed in the scope.
ATMOSPHERIC EMISSIONS (T)
EMISSIONS OF NOx, SOx AND PARTICLES (T)
NOx
SOx
Persistent organic pollutants (POPs)
Volatile organic pollutants (VOCs)
Particles (MP)
HCL
HF
Aqualia
Cementos
Construcción
Environment
Total
86
4,761
269
5,280
–
–
–
–
–
–
699
–
117
153
11
–
3
–
7
346
–
–
535
–
132
253
44
3
10,395
1,237
–
256
752
55
3
6%
10%
84%
NOx
SOx
Particles
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 13 of 27
_ 589
Measures to minimise emissions (mainly NOx, SOx and particulates)
In the Environmental Services Area, methods are used
to capture and manage biogases with the aim of reducing
emissions in landfills, thus avoiding their diffusion into the
atmosphere and prioritising their energy recovery.
On the other hand, Energy From Waste (EFW) facilities
have specific pollution control systems for stack emis-
sions, which are continuously monitored.
In addition, investments continue to be made in active
landfill degassing and in the measurement of biodegrada-
ble material sent to landfill.
Visual inspection measures are applied for the control
and minimisation of diffuse emissions from the transport
of powdery material and HFCs are replaced by less pol-
luting refrigerants for the atmosphere (natural refrigerants,
HFQs).
Finally, appropriate treatment is applied to waste electrical
and electronic equipment (WEEE) with fluorinated gases
to reduce the possibility of leaks, and BOD5 and nitrogen
concentrations in leachates are monitored, as well as ac-
tions to reduce CH4 and N2O emissions in discharges.
In the Infrastructures Area, it has the following actions
in factories and works to mitigate the emission of these
compounds into the atmosphere through: the installation
of cabins to reduce dust and noise in the rest of the areas
of the facilities, the promotion of less polluting alternative
transport, and the watering of roads.
The main focus of emissions in the Cement Area is due
to the activity of the clinker kilns in the manufacture of ce-
ments. To ensure compliance with emission limits in this
activity, bag filters and electrostatic filters are installed to
reduce concentrations in channelled sources. In turn, se-
lective non-catalytic reduction techniques are applied by
injecting ammonia water to reduce NOx emissions, install-
ing low NOx emission burners and controlling fuel dosage.
In the Water Area, the implementation of the Environmen-
tal Management System, certified in accordance with ISO
14001, is considered one of the most effective measures
for pollution prevention. The business also has "general"
environmental risk sheets for the management of environ-
mental risks, which can be adapted by the contracts to
their particular circumstances. These sheets contain the
preventive measures and the response to be adopted in
the event of risk materialisation. Examples of common pre-
ventive measures are systems for detecting leaks of chlo-
rine, gas, etc.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 14 of 27
_ 590
MEASURES TO MINIMISE
LIGHT POLLUTION
MEASURES TO PREVENT NOISE POLLUTION
The FCC Group carries out various initiatives to prevent and
mitigate the effects of light pollution on the environment, such
as: the installation of movement sensors and the switching off
of outdoor lighting; the replacement of lighting fixtures taking
into account criteria to minimise the impact on the environment;
the use of timers and presence detectors in outdoor lighting
areas; and the installation of more efficient night-time lighting
systems and directional lighting systems on works.
Aware of the inconvenience, risks and damage to people or the
environment that can be caused by noise or vibrations that alter
the normal conditions of an environment, the FCC Group applies
measures to prevent them from occurring.
The most important preventive measures are the acoustic insulation
of machinery, such as the installation of panels, acoustic screens
and mobile screens, silencers, or the replacement of existing equip-
ment with soundproofed equipment, and the application of inspec-
tion point programmes (IPPs). In addition, continuous noise moni-
toring and noise pollution studies are carried out when necessary,
and priority is given to the use of electrical equipment in order to
reduce the nuisance to the population, especially at night or in Spe-
cial Noise Protection Zones (ZPAE).
To reinforce the aforementioned actions, workers are trained in driv-
ing habits and ways of acting to control inappropriate noise man-
ifestations.
prevention
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 15 of 27
_ 591
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
(if applicable)
2020
2021
1,954,567
1,144,552
75,832
62,170
9,080
45,865
1,481,451
2,961,879
–
362
Total
3,574,020
4,161,737
The significant increase in water discharges by destination is
caused by FCC Medio Ambiente Iberia, due to improved meas-
urement systems compared to 2020.
MEASURES TO MINIMISE SPILLS AND SPILLAGES
In order to minimise the possible negative effects of its activities
on ecosystems, the FCC Group strictly controls the quality of the
water discharged and applies a series of preventive measures be-
fore spills or spillages occur, as well as corrective measures when
necessary.
Therefore, in addition to discharge authorisations, which some-
times require more restrictive water quality requirements than those
specified in the legislation, water quality analyses are carried out
by external accredited laboratories. The following are more specific
measures according to the type of activity in each area:
In the Environment Area, an inventory of the flow of
wastewater is carried out, as well as water analysis and
measurements in accordance with the regulations.
Facilities at risk of oil or fuel spills have oil and/or water
interceptors.
At landfills discharging leachate, specific treatment plants
are in place to meet the requirements of any permit and
a two-stage reverse osmosis system is economical and
efficient for leachate treatment.
For its part, the Construction Area has a System of Good
Practices which details actions aimed at improving the
quality of its discharges. As a preventive measure, the
wastewater generated is analysed to decide whether or
not the effluents should be treated before discharge, and
as corrective actions, water treatment by filtering, decant-
ing and pH neutralisation is applied.
In the Cement Area, in addition to the proper storage of
waste to prevent spills and regulatory compliance with the
deposit of fuels and other hazardous substances, water
filtering systems are installed in the quarry and factory to
guarantee the quality of discharges into the environment.
In the Water Area, the control of discharges is part of the
activity itself, specifically to comply with legal and contrac-
tual requirements, and to establish improvements in dis-
charge parameters. This control is established through the
operation and maintenance of the facilities, as well as the
analytical control of the process and discharges, with our
own and external laboratories. For possible emergencies
related to accidental spills and/or discharges, there are
emergency plans that establish preventive and response
actions. Examples of common preventive measures are:
storage of chemical products and hazardous waste cov-
ered and identified, with buckets and absorbents for spill
collection.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 16 of 27
_ 592
Energy consumption
and energy efficiency
Measures to improve energy efficiency
Aware of the climate footprint generated by its activities, FCC
is developing specific measures to improve its energy efficien-
cy and replace the use of fossil fuels with renewable energy
sources. Reducing energy consumption reduces the need for
resources and, consequently, helps to mitigate the impact of
business activity on the environment.
The FCC Group has implemented a series of measures to in-
crease energy efficiency at its facilities. FCC's businesses carry
out a series of common actions in all areas such as: the re-
placement of lighting fixtures with LED and energy-saving tech-
nology; the installation of presence detectors; the replacement
of obsolete equipment with new, energy-efficient equipment;
or the purchase and development of more energy-efficient ma-
chinery.
In addition, several business areas are ISO 50001 Energy Ef-
ficiency and Saving certified, which allows for continuous im-
provement of energy performance and identification of addition-
al opportunities to reduce energy use.
Specifically, the Environmental Services Area has applied,
in the public lighting management contracts, the installation of
software to monitor the energy consumption of each switch-
board or group of switchboards.
Additionally, new BAT (Best Available Techniques) have been
implemented to reduce emissions in waste incineration at the
new WTE (Waste To Energy) plants in the Czech Republic.
tices that reduce energy consumption and the use of cleaner
resources, reducing carbon emissions, both in the construction
and operation phases of infrastructures.
The Water Area has been working on improving metering, cal-
culating the energy efficiency of pumps and optimising process-
es, installations and production equipment. It should be noted
that, as a general guideline, the aim is to constantly improve
energy monitoring through billing management and control.
Finally, the Construction Area seeks energy efficiency from
the design phase of its projects, seeking to apply good prac-
For its part, the Cement Area is committed to continuous im-
provement, optimising the efficient control of its processes, and
has installed expert systems for the management of kilns and
mills.
The FCC Group's energy consumption over the last three years
is shown below, reflecting the company's efforts in this area:
ENERGY CONSUMPTION OF THE ORGANISATION (GJ)
DIRECT AND INDIRECT ENERGY CONSUMPTION (GJ)
Direct energy consumption
2020
2021
Direct consumption from non-
renewable sources
Direct consumption from renewable
sources
25,421,421
26,810,299
11,494,555
12,626,607
48,431,483
Total
36,915,975
39,436,906
43,103,946
45,962,587
Electricity consumption
Electricity consumption from non-
renewable sources
Electricity consumption from
renewable sources
6,075,789
6,123,109
112,181
402,572
Total
6,187,970
6,525,681
Total energy consumption
From non-renewable sources
31,497,210
32,933,408
From renewable sources
11,606,736
13,029,179
Total
43,103,946
45,962,587
2019
2020
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 17 of 27
_ 593
Renewable energies
The FCC Group is developing various measures and projects
to progressively increase the energy recovery of waste, thereby
increasing its use of renewable energies.
The FCC Group's 2021 renewable energy consumption has in-
creased compared to 2020 consumption, due to the installation
of photovoltaic panels for self-produced energy consumption.
In addition, during 2021, photovoltaic panels were installed on
the roofs of warehouses, both for self-consumption and for sale.
The consumption of energy from renewable sources for the last
three years is shown below.
CONSUMPTION OF ENERGY FROM RENEWABLE SOURCES (GJ)
13,107,942
13,029,179
11,606,736
2019
2020
2021
ENERGY SELF-CONSUMPTION AT THE CORPORATE HEADQUARTERS IN LAS TABLAS
A photovoltaic self-consumption system has been installed at the
Las Tablas headquarters as an initiative in line with the corporate
objectives of saving and efficient use of energy resources. This
initiative aims to reduce the carbon footprint and increase energy
efficiency at this work centre.
In full operation since September, it is a horizontal installation on the
roof of the building with a maximum power of 38 kWp. It is estimat-
ed that its installation will produce 438,000 kWh per year.
In this way, the headquarters is adapted to the new regulations
that promote the use of photovoltaic energy in companies in order
to divide the cost into different time slots, with the hours of highest
solar incidence coinciding with the highest price brackets.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 18 of 27
_ 594
Circular solutions
| Turning Waste into Resources
Growth towards
a Circular Economy
The growing scarcity of resources and the need to preserve
existing resources means that companies are increasingly prior-
itising investment in projects and technologies aimed at reusing
and recovering surplus and waste generated both by them-
selves and by the society in which they operate.
The FCC Group has proactively promoted the integration of the
principles of the circular economy in the management models
of its business areas as a way towards the sustainable develop-
ment of the company.
In this regard, the Environmental Services Area plays an excep-
tional role in all the countries in which it operates. Implicit in the
development of its activity is the idea of looking beyond, viewing
waste as valuable resources that can be reintroduced into the
value chain, using the principles of the circular economy as a
way to reduce its environmental impact.
The Environment Area
contributes to the transition
towards a true circular
economy in the wind energy
sector, participating in the
implementation of wind turbine
blade recycling technologies,
and increasing the recyclability
from 85-90% to 100%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 19 of 27
_ 595
Similarly, the other areas of the FCC Group are working con-
tinuously to integrate the circular economy into business man-
agement. For their part, the Citizen Services, Construction and
Aqualia Areas, with their adherence to the Circular Economy
Pact, demonstrate their commitment to the transition to a new,
more sustainable and environmentally friendly economic model.
On the other hand, the FCC Group adapts the appropriate
measures to its specific activity, applying the waste hierarchy
and always respecting the applicable legal requirements.
The main initiatives developed by the different areas of the
Group in the field of circular economy are set out below:
All areas of the FCC Group are
working continuously to integrate
the circular economy into
business management
INITIATIVES
Environment
Water
Construction
Cement
• Reduction of the volume of waste dis-
posed of in landfills, transforming it into
resources.
• Development of
infrastructures de-
signed to obtain optimum waste quality
and to transform it into new products.
• Safe disposal of waste that cannot be
treated.
• Production of certified secondary fuels
from selected waste.
• Obtaining added-value products during
water treatment processes.
• Commitment to innovation to promote
new sustainable and reusable materials.
• Implementing value chain agreements
• Reuse of inert materials, effluents and
for product re-use.
process wastewater.
• Use of alternative resources to water.
• Use of recoverable elements and the
• Energy generation through urban water
use of recycled materials.
cycle management.
• Use of returnable packaging at the sup-
plier.
• Energy recovery and material recovery
of waste, avoiding its deposit in land-
fills, replacing the use of fossil fuels with
alternative sources, such as biomass.
• Use of secondary raw materials at dif-
ferent stages of the production process.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 20 of 27
_ 596
The Environmental Services Area
and its contribution to the Circular Economy
Within the FCC Group, the role of the Environmental Services
Area in promoting the transition towards a Circular Economy
model is particularly noteworthy, with hundreds of facilities for
waste management, its subsequent treatment and safe dispos-
al. In addition, this area has implemented data collection sys-
tems to evaluate and monitor its management at all times.
The Environmental Services Area, in addition to the implemen-
tation of processes of energy recovery, composting, recycling
and biomethanisation, seeks to optimise the quantity and qual-
ity of the remaining waste for its subsequent reuse, recycling or
energy revalorisation, trying at all times to improve waste dis-
posal rates.
Through the use of various waste collection methods such
as mechanical processes, robotic equipment and specialised
waste separation and segregation plants, the Environmental
Services Area has a total volume of 9,060,133 tonnes collected
annually, in addition to the 18,698,147 tonnes accepted.
This area also participates in a complete portfolio of projects
with the aim of promoting the Circular Economy, among which
the following lines of research stand out:
• Biomethane: through its participation in different LIFE pro-
grammes of the European Union, it is committed to trans-
forming waste treatment centres into centres producing fuel
(biomethane) for use in all types of vehicles.
• Circular economy for plastics: its main purpose is to pre-
vent the landfilling of plastics in municipal waste, thereby
reducing their treatment through energy recovery and pro-
moting their recycling through the development of innovative
processes.
• Optimisation of composting: by means of bioconversion
with insects, the aim is to generate innovative products for
the valorisation of urban by-products and bio-waste.
• Creation of new sub products and biomaterials: this line
investigates the recovery of organic waste and its transforma-
tion into new products, as well as other forms of utilisation,
such as biomaterials.
• Innovation in industrial waste: through a set of projects
dedicated to the reduction and substitution of the use of
fluorinated gases, the revalorisation of waste through its in-
corporation into materials, as well as the isolation of polluting
waste.
Waste management (T)
2020
2021
Municipal waste
6,058,676
6,300,021
Hazardous industrial waste
453,365
334,845
Non-hazardous industrial waste
2,470,360
2,418,049
Other waste (hazardous and
non-hazardous)
5,529
7,218
TOTAL
8,987,930
9,060,133
Waste accepted at FCC
centres (T)
2020
2021
Municipal waste
7,123,021
6,531,097
Hazardous industrial waste
667,166
935,499
Non-hazardous industrial waste
9,699,244
11,231,551
TOTAL
17,489,432
18,698,147
Hazardous Waste
Treatment (T)
Valuation
Stabilisation/Landfill
Transferred to an end manager/
other destinations
Other destinations
TOTAL
Treatment of non-hazardous
waste (T)
Valuation
Controlled Landfill Disposal/
Stabilisation
2020
2021
278,641
510,275
37,368
247,265
300,469
103,273
20,923
71,312
847,206
722,319
2020
2021
3,729,815
3,510,515
9,895,784
9,732,697
Transferred to an end manager
2,644,518
2,585,101
Other destinations
42,971
73,624
TOTAL
16,313,089
15,901,937
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 21 of 27
_ 597
Reduction of waste
generated
The FCC Group is aware that the normal development of its op-
erations involves the generation of waste, and therefore estab-
lishes at all times measures to reduce its environmental impact.
The Group is committed to promoting activities for the use and
subsequent reintroduction of waste into the value chain, in line
with the principles of the Circular Economy.
Given the particularities of each of the Group's business areas,
the type of waste generated and the measures adopted to min-
imise its generation differ, as follows:
WASTE GENERATION
MEASURES IMPLEMENTED
Environmental
Services
The waste generated is mainly related to
the maintenance of the vehicle fleet.
• Waste segregation measures.
• Establishment of waste minimisation plans.
Water
Cement
Construction
• Preferable acquisition of vehicles built with easily recoverable
elements.
The main waste generated is sludge,
extracted as a result of the filtering
process.
• Monitoring of waste water characteristics and flows.
• Measures for the valorisation of sludge, mainly for agricultural
use or composting.
The waste generated is due to facility
maintenance, cleaning, laboratory,
works execution and other auxiliary
activities.
In addition, part of the final product is
sold packaged, generating waste for the
user.
Construction activity involves the
generation of waste and effluents from
the handling of materials as well as
demolition operations.
• Measures for waste segregation.
• Awareness-raising campaigns for staff.
• Waste valorisation, using it in the cement production activity.
• Segregation of the waste generated.
• Promotion of responsible consumption of materials.
• Request for materials with returnable packaging from the
supplier.
• Management of surplus excavation and recovery of rubble.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 22 of 27
_ 598
The evolution of the total waste generated, as well as its dis-
tribution by FCC Group business lines, with respect to 2020,
is shown below. The increase in waste generated in 2021 is
mainly due to the progressive reactivation of projects paralysed
during the Covid-19 situation in the Construction Area, which
are resumed in project phases with higher waste generation.
The increase in hazardous waste compared to the amount in
2020 is mostly due to the increase reported by the Construction
business line, as the works have involved the management of
contaminated earth and rocks.
EVOLUTION OF TOTAL WASTE GENERATED (T)
DISTRIBUTION OF TOTAL WASTE GENERATED (%)
RATIO OF HAZARDOUS AND NON-HAZARDOUS
WASTE GENERATED (%)
4,078,233
0.40%
18.12%
18.22%
2,323,266
2,506,693
67.83%
13.65%
10.6%
3.73%
3.57%
81.77%
89.4%
96.26%
96.43%
2019
2020
2021
Environmental services
Water
Construction
Cement
Hazardous Non-hazardous
Construction
Environmental services
Cement
Aqualia
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 23 of 27
_ 599
Water as a resource
Changes in weather patterns, together with the progressive in-
crease in global temperature, increase the risk of drought and
the likelihood of water stress in more and more places. In this
context, the need to adapt to a decreasing use of this resource
becomes even more important.
The FCC Group, aware that the normal development of its
activities depends on the availability of water, is increasingly
strengthening its commitment to this resource. The Group has
implemented various measures for rational and efficient water
consumption, guaranteeing at all times compliance with the ter-
ritorial limits for urban water consumption.
The evolution of the FCC Group's water abstraction is set out
below:
The volume of water abstraction recorded in 2021 is practically
unchanged. As can be seen in the following figure, and accord-
ing to the volume of water abstraction by business line, 68% of
water consumption corresponds to FCC Construcción.
As can be seen in the table, the water abstraction data of the
Aqualia business is not being considered, as it is a residual con-
sumption compared to the rest of the Group's business lines.
The Construction business has reported a higher amount of
municipal water supply or water from other water companies
due to increased activity in Latin America and Spain in 2021
compared to 2020 due to the pandemic situation.
The following graph shows the distribution of water consump-
tion by the Group's different business areas. As can be seen,
water abstraction is particularly significant for the Environmental
Services Area, as it is associated with the provision of services,
such as garden cleaning and maintenance activities, or street
sweeping as part of street cleaning.
The higher percentage of extraction by FCC Construcción is
mainly due to the reactivation of projects in Latin America and
Spain, which were paralysed by the pandemic, thus reporting
higher water consumption.
WATER EXTRACTION (m3)
DISTRIBUTION OF WATER CONSUMPTION (%)
13,848,749
14,568,563
14,492,901
0.09%
4%
5%
91%
Environmental services
Construction
Cement
Corporate and others
2019
2020
2021
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 24 of 27
_ 600
Water management at Aqualia
Aqualia is, within the FCC Group, the business area specialising
in integral water cycle management. This business is responsi-
ble for guaranteeing the optimisation of public and private wa-
ter resources, thus promoting the sustainable development of
communities.
By managing the phases that make up the integral water cycle,
Aqualia controls the process exhaustively, comprising the fol-
lowing phases:
• Catchment: Aqualia captures water from different points
such as springs, seawater, salinized wells, among others.
• Water purification: in order to provide an optimal guarantee
for drinking water, various technologies are implemented in
drinking water treatment plants depending on its origin and
quality.
• Desalination: maximising the use of water resources and
addressing water scarcity, its facilities offer comprehensive
water desalination solutions to industry and municipalities.
• Distribution: through extensive arteries connected to the
municipalities' headwater reservoirs to the buildings, the
company provides drinking water to the entire population.
• Collection: used water discharges from buildings and runoff
water generated by rainfall reach the filtering facilities, through
the sewerage network managed by Aqualia, to be reused or
discharged into the natural environment once they have been
treated.
• Filtering: thanks to its experience in the design, construction
and management of wastewater treatment plants, Aqualia is
able to filter the polluted wastewater produced by citizens.
• Reuse: once the water has been filtered, improving its phys-
ical and sanitary characteristics, it is destined for reuse in the
irrigation of parks, cleaning or recovery of ecological flows.
Reuse
Catchment
Filtering
Water purification
Collection
Desalination
Distribution
The main figures related to Aqualia's integrated water manage-
ment and their comparison with 2020 are shown below:
Natural capital: input (m3)
2020
2021
Volume of water
908,281,618
995,313,590
Drinking water produced
643,416,868
769,080,428
Filtered water
665,830,462
656,867,498
Raw water purchased
201,161,827
208,151,866
Total water consumed in water
purification and desalination
processes
174,980,591
178,795,022
Quantity of water distributed
666,335,239
643,732,387
Reuse of WWTP
outflow water (m3)
Total quantity of water treated at
WWTPs
682,243,654
723,762,128
Amount of water reused
56,400,000
45,937,030
Total % reused
8.5%
6.9%
A DEFIANT CHALLENGE
AQUALIA'S NEW WATER
PURIFICATION PLANT IN VIGO
Pioneer in the use of new technologies
In October 2021 Aqualia began working on the creation of the
new Vigo Water Treatment Plant. This project presents an un-
questionable challenge, as the construction will be simultane-
ous with the treatment and daily distribution of water to a total
of five municipalities with a population of 500,000 citizens.
However, Aqualia has taken up the challenge, reinventing both
the way it operates and the technologies it uses. Thus, this
station will be able to exceed the requirements established in
the new European Directive, using ultrafiltration membranes to
improve water quality.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 25 of 27
_ 601
Raw materials
in the production process
The FCC Group's priority is to guarantee the reinforcement of
sustainable consumption policies and models, with the aim of
promoting the waste valorisation of materials obtained from
waste or by-products, as a substitute for raw materials.
The consumption of raw materials, process materials, lubri-
cants and reagents, semi-finished products and container and
packaging material used by the FCC Group during the 2021
financial year is detailed below:
Part of the activities carried out by the FCC Group's business
areas inevitably involve the use of raw materials and, therefore,
the optimisation of their consumption and their responsible use
is encouraged. The main measures implemented in the Group
to limit the consumption of raw materials, thereby reducing their
environmental impact, are as follows.
By pursuing a production model based on the use of alternative
raw materials such as: paper mill carbonates, industrial sludge,
concrete waste, recycled fuel, recovered hydrocarbon or fly
ash, all the businesses that make up the FCC Group manage to
save on the consumption of non-renewable natural resources,
reducing the negative impacts that these practices entail.
Among the main measures established for the optimisation of
the use of materials are the following:
MAIN MEASURES ESTABLISHED FOR THE
OPTIMISATION OF THE USE OF MATERIALS
Environmental services
Use of recycled materials derived from waste in production cycles.
Water
Cement
Construction
Establishment of analytical control procedures for the processes, guaranteeing a
minimum and adequate consumption of materials in accordance with the established
regulations.
Use of alternative raw materials, investments in systems to optimise their activity, as well
as process control.
Reuse of the waste generated on the works, thus reducing the volume of materials used
compared to the initial planning.
Materials used (T)
2020
2021
Raw materials (metals, minerals,
wood, etc.)
Process materials, lubricants and
reagents
41,396,446
70,629,672
96,849
113,303
Semi-finished products
3,726,276
2,015,821
Container and packaging material
(paper, cardboard, plastics)
8,671
9,600
Total
45,228,241
72,768,396
With regard to the increase in the reported total amount of
tonnes of materials used during the year 2021, it should be not-
ed that, in the Construction Area, several large projects are be-
ing carried out, which contribute significantly higher amounts of
raw materials. In addition, there has been a change in the scope
of the information provided by the Construction business, in-
cluding this year data corresponding to the Riyadh Metro pro-
jects and the activity of Áridos de Melo.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 26 of 27
_ 602
Biodiversity
| Committed to the conservation
of natural capital
There is no economic activity that does not ultimately
depend on the natural resources offered by our planet.
The activity of the FCC Group is no exception, being
essential for the development of its activity, the
hydrological cycles, the purification of water and air, in
addition to the resources obtainable to complete the
offer of products and services that characterises the
Group.
The FCC Group promotes the development of its
activities always bearing in mind the conservation
of natural capital, as reflected in its membership
of the Iniciativa Española Empresa y Biodiversidad
(IEEB) [Spanish Business and Biodiversity Initiative]
and its adherence to the Biodiversity Pact. Both
actions are promoted by the Fundación Biodiversidad
del Ministerio para la Transición Ecológica y el Reto
Demográfico [Biodiversity Foundation of the Ministry
for Ecological Transition and the Demographic
Challenge].
Given the particular characteristics of the activities carried out
by the FCC Group's businesses, their impact on biodiversity
varies. In this way, each area seeks to create value according to
its area of influence. For example:
The Environmental Service Area plays a very impor-
tant role in the revegetation of landfills with autoch-
thonous species, stabilising the masses of deposited
waste, while reducing the nuisance associated with
odours.
The Water Area promotes initiatives for the conserva-
tion of ecosystems that may be affected by its activities,
by planting trees, creating habitats, or developing wild-
life rescue plans.
The Construction Area tries to mitigate its impacts on
biodiversity, protecting and delimiting areas of natural
interest, and trying to preferentially use existing roads
before opening new ones, as well as carrying out resto-
ration measures in affected areas.
The Cement Area has an impact on biodiversity as a
result of the exploitation of natural resources in the quar-
ries supplying raw materials. For this reason, landscape
assessments are carried out according to the area ex-
ploited in relation to the area restored.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 _ 603
2021
1,237
940
FCC _ 2021 Annual Report | FCC Group Sustainability Report | Environment | Planet | Page 27 of 27
Likewise, different areas of the FCC Group promote agreements
with nature protection associations, such as the Chamaeleo
project which, through collaboration with the Centro Municipal
de Educación Ambiental y Actividades en la Naturaleza Coto
de la Isleta (Cadiz) [Municipal Centre for Environmental Educa-
tion and Nature Activities], aims to recover the population of the
common chameleon.
Measures taken to preserve or restore biodiversity
Protection of sensitive areas (ha)
Restoration of affected areas (ha)
2020
1,142
700
Sensitive protected areas and affected zones
Number of facilities
Area (ha)
The following tables show the Group's main biodiversity results:
Location in protected natural sites or sites with high biodiversity value
Location in an area with a landscape classified as relevant
Effect on natural watercourse in protected site
Effect on natural watercourse in areas with high biodiversity value
Effect on watercourses with very high or relevant value for local communities and
indigenous populations
Effect on listed or protected vegetation
Effect on listed or protected animal species
155
9
2
7
9
10
11
938
954
10
850
857
1,445
1,355
PROTECTING BIODIVERSITY
Cementos Portland Valderrivas
collaborating with the restoration
of the El Porcal estate
In the heart of the Southeast Regional Park of Madrid (Rivas Vacia-
madrid), is the former mining site owned by Cementos Portland
Valderrivas.
Until 2008, the company sourced aggregates for building and devel-
opment materials (such as cement, glass and paints) and infrastruc-
ture from this site.
With an area of more than 400 hectares distributed between steppes
and wetlands of the lower courses of the Manzanares and Jarama
rivers, it is classified as a Natura 2000 Network site.
More than 180 species of animals live in this area, most of which
are in danger of extinction.
However, for years and thanks to the collaboration of the Naumanni
Naturalist Association, El Porcal has been an example of environ-
mental restoration thanks to a general sustainable development
plan based on the reduction of the visual impact of extractive ac-
tivities and their integration into the landscape, the development of
good practices for the natural colonisation of native species of fauna
and flora, and the balance between human activities and the envi-
ronment.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social
_ 604
ESG
Social
| Actions
for a better society
Inequality and social welfare
Social challenges
Response from the FCC Group
Greater equality around the world is essential for a
secure, peaceful and sustainable future for our plan-
et. The still present COVID-19 has impacted on the
following issues:
• Job loss, job insecurity, reduced income and so-
cial mobility; issues that have a direct impact on
increasing levels of global poverty and inequali-
ty(12). Thus, 150 million people live on less than
USD 1.90 a day, which is considered extreme
poverty(13).
• Weakening of social cohesion and expressions of
social discontent(14).
The FCC Group is fiercely committed to social wel-
fare and the fight against inequality, through the fol-
lowing actions:
• FCC Environment is part of "Empresas por una
Sociedad Libre de Violencia de Género" [Com-
panies for a Society Free of Gender Violence], to
raise awareness and support the integration of
victims into the workplace.
• The FCC Group collaborates with the ONCE
Foundation, with the aim of hiring 900 people with
disabilities.
• The company also launches annual internal food
distribution and blood donation campaigns,
among others.
(12) OECD, The future of work.
(13) Banco Mundial, (2020), COVID-19 agregará hasta 150 millones de pobres extremos para 2021.
(14) UNDP (2021), COVID-19 eroding social cohesion and triggering rise in civil unrest in crisis-affected countries, alert
UNDP, g7+.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social
_ 605
Health and safety
The Future of Work and Inclusive Labour Integration
Social challenges
Response from the FCC Group
Social challenges
Response from the FCC Group
The pandemic has exposed the weakness of our
welfare state, among other issues, by aggravating:
• The saturation of public health systems and the
lack of social protection systems(15).
• Mental health problems; an issue that has be-
come an unavoidable social and employment
priority.
• The increase in temporary contracts and part-
time work, which will be a challenge in terms of
equal opportunities, security and people's physi-
cal and mental health(16).
The current recovery context requires businesses
to undertake transformations to adapt to the new
scenario, with special attention to the health of their
workers.
The FCC Group assumes its responsibility with re-
gard to collective and individual health and safety
issues.
The pandemic has accelerated existing trends in
remote working, e-commerce and automation. The
following facts and figures are worth noting:
The FCC Group is committed to professional devel-
opment and diverse talent, with prepared and com-
mitted teams.
• The water management business remains com-
mitted to the health and emotional wellbeing of its
workers and has a mobile application, BeAqualia,
which allows any psychological problems suf-
fered by an employee to be identified in advance.
• All the branches of FCC Medio Ambiente were
certified by Aenor in accordance with the new
Sistema de Gestión de Organización Saludable
(SIGOS) [Healthy Organisation Management Sys-
tem], being the first company in its sector to ob-
tain this recognition.
• Approximately 14% of jobs in OECD countries are
susceptible to automation, while another 32% are
at high risk of being partially automated.
Moreover, digitalisation will present a new challenge
in terms of gender inequality(17) and low-skilled
workers.
• FCC Medio Ambiente promotes inclusive work
through projects such as FCC EQUAL, a Centro
Especial de Empleo (CEE) [Special Employment
Centre], where a number of disabled people are
already working.
• FCC Construcción promotes digitalisation in
the company by organising workshops to share
methodologies and trends in this area.
• The FCC Group, through its businesses, has
agreements with universities to contribute to the
training and employment opportunities of future
workers.
(15) EXPH's opinion, (2020), The organisation of resilient health and social care folowing the covid-19 pandemic.
(16) Zurich, (2020), Shaping a brighter world of work – An Employer Outlook.
(17) The Guardian (2021), Flexible working: A system set up for women to fail.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 1 of 15
_ 606
Employees
People at the core
2021
HIGHLIGHTS
2022
KEY CHALLENGES
• Review of the organisational structure to adapt it to the cur-
rent context, analysing both the organisational level and the
family, mission and functions of each job in the organisation.
• Implementation of the people management platform (data
centre employee), continuing to make progress in data an-
alytics.
• Significant advances in the appropriate treatment of data
that allow the optimisation and management of processes,
and analysis to facilitate the adoption of the most appropri-
ate decisions in the management of People.
• Evolution of the CAMPUS FCC e-learning platform as a
global benchmark for continuous and agile learning that
meets the more transversal training needs of the FCC
Group, focusing on sustainability and digital transformation.
• Signing of equality plans in each of the FCC Group's areas,
generating new initiatives to promote gender diversity.
• More committed and accountable leadership for team
growth.
• In the context of the health and well-being of our workers,
promotion of the project Vive Saludable [Healthy Living] and
actions in the management of Covid-19.
• Continue training women and increase the percentage of
women in supervisor positions, making them more visible in
the Group.
• Develop the FCC360 App, where all workers can maintain
two-way communication with the FCC Group, carry out
procedures and receive training.
• Promote the implementation of physical and mental wellbe-
ing plans.
During this year, the FCC Group has taken on all the challeng-
es we have experienced during the pandemic, and despite the
great impact it has had on the lives of the people who work in
the Group, it has continued to persevere in its aim to be the best
place to work, promoting the quality of life of the people.
To this end, it has drawn up a global strategy, which is its val-
ue proposition in terms of people and which is based on three
fundamental pillars: talent, diversity and equality, and health
and wellbeing. To this end, it is essential to work on data-driv-
en decision-making and to encourage listening to our workers.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 2 of 15
_ 607
Recognising
talent
The ambition of the FCC Group
is to bring out talent at the
service of the organisation,
through policies aimed at
selecting the right talent,
promoting their professional
development in the Company,
optimising performance
and managing objective
compensation for the results
obtained
Profile of human capital
in the FCC Group
The FCC Group employs 59,547 people, and it should be noted
that in 2021 the total number of women has increased com-
pared to the previous year, reaching 22.9%. Their distribution
by gender and business areas is as follows:
STAFF BY BUSINESS AREA
0.5%
1.8%
0.2%
11.3%
69.7%
WOMEN
22.9%
MEN
77.1%
16.5%
FCC is also active in 39 countries. Their distribution according
to the geographical area in which they are located is as follows:
Environmental
services
Water
Construction
Cement
Corporate
Real Estate
USA
and Canada
0.99%
Spain
76.74%
Latin America
2.38%
Rest of EU.
11.22%
Rest
of the world
8.67%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 3 of 15
_ 608
Organisational structure
The FCC Group understands that it is essential to have a suita-
ble organisation, coherent and inspired by the strategy of each
business area and its operational needs, which allows for a clear
and simplified vision of the organisational structure, and which
clarifies the distribution of responsibilities among the workers
and the profiles required in each case.
The organisation enables people management in areas such as
selection, functional mobility, training and job evaluation.
During the 2021 financial year, the FCC Group has completed
the process of reviewing its organisational structure to adapt it
to the current context, analysing both the organisational level
and the family, mission and functions of each job in the organ-
isation.
As a result of the aforementioned review, the distribution by
gender and functional level at the end of 2021 is shown be-
low, highlighting that, in general, the number of women has in-
creased at practically all levels, especially at supervisor levels,
compared to the previous year:
DISTRIBUTION BY GENDER AND FUNCTIONAL LEVEL
Direction and
Management
Middle
management
Technicians
84
444
634
3,205
1,847
4,092
Administrative staff
2,039
1,142
Various professions
9,009
37,051
Women
Men
Recruitment
Depending on the specific needs of each of the activities car-
ried out by the Business Areas, the corresponding employment
contracts are formalised, in accordance with the modality that
best suits them.
Of the total workforce, 44,356 workers have a permanent con-
tract and 15,191 have a temporary contract, with an increase in
the number of permanent contracts compared to the previous
year. It should also be noted that many of the above-mentioned
temporary contracts enjoy a high degree of employment sta-
bility, considering that there are many people working under
contract in sectors where there is an obligation to subrogate
by contract.
In terms of averages, in 2021, 43,788 workers have permanent
contracts, while 15,954 have temporary contracts.
With regard to new hires, it is important to note that in 2021 the
number of new hires has increased compared to the previous
year, especially in the number of women.
2020
2021
Men Women
Total
Men Women
Total
11
3
14
22
9
31
203
73
276
246
44
290
789
122
185
218
974
340
709
104
307
362
1,016
466
6,578
2,061
8,639
8,465
2,566 11,031
Direction and
Management
Middle
management
Technicians
Administra-
tive staff
Various
professions
Total
7,703
2,540 10,243
9,546
3,288 12,834
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 4 of 15
_ 609
Join FCC
Managing knowledge
In 2021, the FCC Group’s
Recruitment Policy was
approved by the Board of
Directors, renewing the bases
and principles to inspire our
processes, in order to attract,
select and retain the best talent
In accordance with the FCC Group's principles and values,
young people's access to their first job must be promoted
through programmes and other agreements. Thus, the 4th Edi-
tion of the International Programme for Young Talents in
the Construction Area is worth mentioning, with training that
aims to promote the development of recent graduates and then
facilitate the filling of positions in the company's international
projects.
As part of the FCC Group's professional development model,
we continue to work to promote the development of each and
every one of our workers.
The objectives of the transversal training plan 2021 have cov-
ered several main axes, among which the following stand out:
• Providing management with new skills and knowledge to
ensure the well-being of their teams and business efficiency
through various programmes.
• The development of the competences or skills demanded in
this new reality and which are linked to skills related to inter-
personal relations (Individual and Team Coaching, Develop-
ment Meeting, Conflict Management, etc.).
• Digitalisation as a set of training actions linked to process op-
timisation and the acquisition of an agile and digital mindset.
• Raising awareness of Diversity and Equality issues to boost
In 2021, it began to consolidate the Integration Programme (On Boarding)
for new recruits, which includes a training itinerary that favours rapid
female talent and diversity.
integration into the position and the company
• Compliance training, continuing with the development of
knowledge and commitment linked to the FCC Group's
Compliance Model.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 5 of 15
_ 610
The data on hours of training by functional level, business area
and gender are broken down in the following table:
HOURS OF TRAINING
Management and Direction
Supervisors
Technicians
Administrative clerks
Miscellaneous occupations
Men
Women
Men
Women
Men
Women
Men
Women
Men
Women
2021 Total
Environmental Services
Water
Construction
Cement
Real Estate
Corporate
3,863
3,327
1,297
267
220
1,484
National Subtotal
10,457
Environmental Services
Water
Construction
Cement
903
417
309
96
1,698
515
181
42
101
1,031
3,568
427
188
0
0
37,274
17,544
7,708
1,737
23
469
64,754
15,926
2,003
1,352
276
7,171
6,453
1,577
308
27
445
15,981
4,925
738
413
76
22,159
11,311
20,158
1,863
311
825
56,627
11,959
6,966
2,292
546
10,243
6,392
8,245
730
136
1,339
27,085
2,956
9,646
656
24
5,069
1,474
1,795
269
8
93
8,708
2,472
938
146
51
11,845
153,695
27,818
280,836
4,407
1,586
89
6
335
21,746
28,088
3,324
0
31
615
412
64
0
24
73,784
71,047
8,693
830
6,076
18,268
206,884
28,933
441,266
9,977
1,172
504
-
30,940
9,095
1,693
384
1,875
350
17
-
82,359
31,512
7,382
1,453
International Subtotal
1,724
615
19,557
6,152
21,763
13,281
3,606
11,653
42,112
2,242
122,705
Total
16,364
106,453
118,756
42,235
280,171
563,971
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 6 of 15
_ 611
Campus FCC
The mission of the FCC Corporate University is to be a glob-
al benchmark for continuous and agile learning that meets the
training needs linked to the business (Upskilling) and allows the
development of new skills that will be demanded in the jobs of
the future (Reskilling), thus increasing the versatility and employ-
ability of the workers of the FCC Group.
In 2021, training initiatives have continued to be developed in
online or face-to-face training in virtual classrooms, methodol-
ogies that have been an advantage in the promotion of train-
ing during the pandemic situation, with the fundamental train-
ing milestones and their degree of achievement being, among
others, that more than 80% of the students convened to raise
awareness of the Code of Ethics and Conduct have complet-
ed the training, which means more than 4,000 people. On the
other hand, more than 6,800 people have received training in
Cybersecurity.
It is worth highlighting Campus' action plan, aimed at improving
management and advanced analytics, as well as the launch of
125 online training pills in 205 sessions, which are making
Campus a benchmark as a continuous learning space for the
FCC Group.
Development meeting
During the 2021 financial year, special emphasis has been
placed on the process of identifying performance and potential.
The process is initiated in Spain as a global tool for evaluat-
ing performance, potential and development in the FCC Group
(fundamentally with respect to the supervisor team), providing a
vision of internal talent in order to be able to make decisions and
design action plans based on the needs detected.
Valores y
cumplimiento
Diversidad
e Igualdad
Digital
Liderazgo
y Desarrollo
Acceder
Acceder
Acceder
Acceder
To launch the process this year, a specific online training
guide on Campus FCC for managers and collaborators
has been developed, with the aim of guiding the meet-
ing, allowing an enriching and developmental conversa-
tion between participants.
In 2021, more than 120
development meetings were
recorded in the tool.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 7 of 15
_ 612
Compensation policy
Wage gap
FCC rewards its workers according to criteria of sectorial and
geographical competitiveness, internal equity and level of re-
sponsibility.
FCC Construcción operates in a wide range of production sec-
tors (construction, water, cement, concessions, services, Real
Estate) in 39 countries and, in general, the remuneration of its
workers is subject to the applicable collective agreements (in
the case of Spain, more than 800 agreements of varying scope
in 2021).
The average salary(18) of the management team is 122,499.16
euros, broken down by sex as follows: (i) average salary for
women: 94,210.81 euros, and (ii) average salary for men:
127,683.23 euros.
The management team includes both senior management (re-
porting directly to the CEO) and the workers who hold manage-
rial and responsible positions in the FCC Group.
The FCC Group has worked and developed, and continues to
do so, the necessary tools to comply with the legal provisions
regarding the recording and auditing of remuneration, as a re-
sult of the Group's firm commitment to equal opportunities and
with the aim of effectively serving the principle of transparent
remuneration.
FCC's remuneration management is based on the criteria of
objectivity, external competitiveness and internal equity. FCC
does not differentiate by gender, so that the salary is equitable
according to the level of contribution to the business (functional
level) and the level of responsibility and value in each job.
In any case, it should be noted that the percentage difference
does not imply the existence of gender-based pay discrimina-
tion, as there are factors outside the Company's sphere of ac-
tion that contribute significantly to increasing gender-based pay
inequality, such as the masculinisation of most of the sectors in
which the Group operates, the working conditions arising from
subrogation, individual performance, economic crises, the po-
litical situation, socio-cultural reasons, academic training, expe-
rience in the position held, among other factors. This is why, in
addition to the evolution of the rules governing pay obligations,
the reference to the adjusted wage gap is not included, as long
as this concept is not more clearly defined.
With regard to the wage gap in the other countries in which
FCC operates, in most of them there is no definition or specific
concept of a gap. However, in the United Kingdom there is con-
solidated legislation on the wage gap, with the two companies
in the Environment Area having a wage gap of 1.67% (in favour
of women) and 1.16%, respectively.
(18) Including variable remuneration, allowances, indemnities and payments to
long-term savings schemes.
GROSS WAGE GAP
It is calculated as the percentage difference
between the average total wages of men an
women.
Financial year 2021
19.81%
Variable remuneration
The FCC Group's variable remuneration system considers cri-
teria related to business objectives and the achievement of in-
dividual goals, linking personal performance with the Group's
business project and culture of compliance.
In 2021, 89.35% of executives and managers in 11 countries
will have benefited from the FCC bonus.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 8 of 15
_ 613
Working towards
making diversity
a reality
Gender equality
For FCC, the principle of equal opportunities is an unwaivable
commitment to action included in its Code of Ethics and Con-
duct and in each of its Equality Plans in Spain. On the other
hand, it is worth highlighting the Equality Plan in force in the
United Kingdom.
Furthermore, the FCC Group's Code of Ethics and Conduct
promotes as an essential principle the creation of a fair and
diverse working environment that favours the professional and
personal development of its workers, also stating that selection
and promotion decisions in the FCC Group are always based
on merit and on objective and transparent evaluations.
All of the Business Area head offices have been recognised and
periodically renew the Distinctive of Equality in the Company,
a mark of excellence awarded by the Ministry with the Equality
portfolio, and the Group currently has 5 Distinctive awards.
Promotion of women to supervisory
positions
As a result of the FCC Group's firm conviction in favour of the
promotion of women, by the end of 2021 the percentage of
women in supervisory positions had increased compared to
2020, reaching 15.9% of the total number of such positions.
The FCC Group develops and participates in training pro-
grammes aimed at creating an enriching working environment,
free from discrimination of any kind and favouring diversity, in-
cluding, among others, the following two initiatives for the train-
ing and development of women in supervisor positions.
Development programme,
Promociona Project,
aimed at women with high potential from the EOI. In 2021,
8 women participated, totalling 80 women from the differ-
ent business areas since 2011.
specializing in preparing women for Senior Management
and Boards of Directors positions (CEOE-ESADE). In 2021,
one woman participated and, since 2014, a total of 17.
International Women's Day
This year FCC is once again joining in the celebration of Interna-
tional Women's Day, in a commitment to equality, and this year
it wanted to vindicate its rejection of any kind of discrimination,
highlighting and supporting diverse, inclusive and authentic
companies, such as FCC, where commitment to equality and
diversity are signs of identity as well as one of its fundamental
pillars.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 9 of 15
_ 614
Collective bargaining on equality
The FCC Group currently has 8 Equality Plans, 3 of which are
Group Equality Plans.
Throughout 2021, important equality negotiations have taken
place within the Group, which have led to the adaptation of
the Equality Plans to current legislation and the signing of new
Plans, some of which even cover different companies of the
Group, thus becoming Group Equality Plans. As of today, 5
Equality Plans are in the process of negotiation.
Act of commemoration of the International Day for the Elimination
of Violence against Women at the corporate headquarters in Las
Tablas (Madrid) award presentation ceremony by the Compliance
and Sustainability department.
Commitment against gender-based
violence
The FCC Group is particularly committed to its work in the fight
against gender violence in all its facets, based on two funda-
mental principles of action: zero tolerance of gender violence
and promotion of the social and professional integration of vic-
tims.
To this end, the Company works closely with the network of
"Companies for a Society Free of Gender Violence" in its work
to disseminate and raise awareness, as well as to support the
employment of women who suffer from this scourge. It also col-
laborates actively with various foundations and organisations
to promote the integration and integration of victims into the
workplace, such as the Incorpora Foundation (La Caixa), the
Adecco Foundation, the Once Foundation and the Red Cross.
In addition, as it does every 25 November, the FCC Group has
made an appeal both inside and outside the Company, launch-
ing information and awareness-raising actions in workplaces to
remind people that the Company stands firmly in favour of erad-
icating this type of violence.
In the framework of this fight against gender violence, and on the
occasion of this international day, FCC promoted the IV Edition
of the awards ceremony, giving two awards: one to UN Women
as an international entity, for the outstanding work they have
been doing in support of women victims of gender violence and
in the fight against abuse; and the other award to the Royal
Spanish Winter Sports Federation (RFEDI), in recognition of the
work, commitment and excellent work they have been doing to
tackle gender violence against women and girls in sport.
Non-discrimination
and prevention of harassment
In addition, as a complement to the whistleblowing channel set
out in the Code of Ethics and Conduct, the Group has a Pro-
tocol for the Prevention and Eradication of Harassment, which
was revised and approved in 2020, and which aims to prevent,
resolve and punish cases of workplace, sexual or gender-based
harassment, thus reflecting the FCC Group's commitment to
not tolerate the abuse of authority or any type of harassment, or
any other conduct that could create an intimidating, offensive or
hostile working environment for workers.
The Protocol, which is mandatory, includes a declaration of
principles, the definition of harassment, the procedure for deal-
ing with harassment, the guarantee of confidentiality of the pro-
cess, and the prohibition of reprisals.
As part of the Group's commitment to prevent harassment at
work, and to promote respectful working environments in which
dialogue and organisational and professional development pre-
vail, training in interpersonal conflict management was launched
in the 2021 financial year.
The aim of this training is to
understand the causes and
meaning of the conflict, as well
as to acquire tools to manage
them effectively. The level of
participation reached 76.93% in
Spain.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 10 of 15
_ 615
People with disabilities and vulnerable groups
FCC's commitment to diversity and the inclusion of this group in
the workplace encompasses different actions and management
strategies. In fact, the number of workers with a recognised
disability in the FCC Group has increased compared to 2020,
reaching 1,498 in Spain, a figure that has been growing steadily
over the last three years, as reflected below:
In addition, the Group actively collaborates with specialised or-
ganisations that advise on recruitment management and em-
ployment support for people with disabilities. The main organi-
sations with which we collaborate in Spain are as follows:
EVOLUTION OF WORKING PEOPLE WITH DISABILITIES
INSERTA
PROGRAMME
INCORPORA
FAMILY PLAN
DOWN SYNDROME
RECYCLING TO
CHANGE LIVES
1,498
1,440
1,280
2019
2020
2021
FUNDACIÓN
ONCE
FUNDACIÓN
LA CAIXA
ADECCO
FUNDACIÓN
DOWN
ECOEMBES
FCC supports
various projects and
promotes social and
labour inclusion
through workshops,
training courses and
other actions, such
as awareness
campaigns.
Environmental
Services has a
collaboration
agreement with
Incorpora for the
integration of
groups with greater
difficulties in finding
employment.
An action
programme present
in Construcción,
CPV and Aqualia,
focused on
increasing the
autonomy,
integration and
subsequent access
to the labour market
of family members
with disabilities.
Aqualia has an
agreement with the
foundation for the
incorporation of
workers with
intellectual
disabilities in its
workforce.
Environmental
Services has been
collaborating with
the insertion
programme for
people
disconnected from
the world of work
(social
sustainability).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 11 of 15
_ 616
This year, on 3 December, FCC once again joined in the cele-
brations for the International Day of Persons with Disabilities to
remind people that it maintains and reinforces its commitment
to this group on a daily basis, and that it is firmly committed to
being an increasingly diverse and socially responsible company,
promoting actions and projects to foster inclusion and equality
through employment.
In 2021, FCC also collaborated in the 9th National Adviso-
ry Board of the Inserta Responsable Forum organised by the
ONCE Foundation, the European Social Fund and the Span-
ish Government to establish the bases for promoting the inclu-
sion of people with disabilities in the workplace, and also in the
framework of the International Human Resources Congress,
promoted by the Red Cross.
Likewise, in 2021 and with the aim of contributing to the labour
integration of particularly vulnerable groups at risk of social ex-
clusion (such as recipients of minimum insertion income, young
people from institutions for the protection of minors and people
from alternative accommodation centres or other authorised
prevention and social insertion services), it has hired a total of
170 workers belonging to this group.
Accessibility
FCC is aware that accessibility is a key factor for the social in-
clusion of people with disabilities. Proof of this is that the FCC
Group's website has the Aenor Certificate for Accessible Web-
site Products.
In addition, each year one of the Company's main challeng-
es focuses on designing solutions that favour the creation of a
working environment free of obstacles and barriers that guar-
antees the full participation and integration of all the Group's
people with disabilities. To this end, in 2021 a diagnostic study
has been carried out on the DALCO (Deambulation, Apprehen-
sion, Localisation and Communication) Universal Accessibility
requirements set out in the UNE 170001-1:2007 standard, with
a view to obtaining UNE 170001-1:2007 Universal Accessibility
Certification by 2022.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 12 of 15
_ 617
The data boutique
In order to ensure that decisions are made on the basis of data,
significant efforts have been invested in the creation of the Data
Boutique, a new information management platform, with the
following objectives in mind:
Dialogue
• Provide solutions to business problems, support decision
making and enhance corporate collaboration.
Social Dialogue
• Increasing integration between information systems and data-
bases, providing reliable data to build appropriate metrics.
EMPLOYEE MANAGEMENT
REMUNERATION
HEALTH AND SAFETY
Organisational structure
Salary log
Functional level
Average remunerations
No. of accidents
Absenteeism hours
Families
Disability
Collective agreements
Accident and sickness rates
FCC understands that in order to establish a link with its work-
ers, it is necessary to establish social dialogue and dialogue
with the teams, their legal representatives, trade unions and
other social agents to promote agreements through collective
bargaining and that the different collective processes are car-
ried out with transparency, setting up monitoring committees
and providing the workers and their representatives with all the
necessary information.
Procedures for informing and consulting staff as well as
advance notice periods for operational changes vary
depending on the country, the applicable regulations and
the significance of such changes. They usually vary from
one week to one month.
During 2021, the areas have been present at numerous
negotiating tables for workplace collective agreements,
and actively participated in sectoral collective negotiation.
Building and Wood Workers’ International (BWI)
which covers all construction sites in the sectors in
which it works.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 13 of 15
_ 618
As for the percentage of workers covered by collective agree-
ments, this varies depending on the applicable legislation, the
existence of a collective agreement and even the existence
of workers' representation, with a commitment in all cases to
comply with the applicable legislation and/or collective regu-
lations. The percentage of workers covered by the collective
agreement in the different countries where the FCC Group op-
erates is shown in Annex II.
Special mention of occupational safety
and health in collective agreements
In a large number of the collective agreements applicable in
Spain, special attention is paid to occupational health and safe-
ty in a broad sense. The clauses that have most frequently been
included in the collective agreements signed with regard to oc-
cupational health and safety are as follows:
MORE CLAUSES INCLUDED IN COLLECTIVE AGREEMENTS
PREVENTION PLANS
Risk evaluation and
technical-preventive action
REGULATIONS
ON WORKERS’ RIGHTS
Participation,
training and information
HEALTH SURVEILLANCE
Periodic medical examinations
CONTINUOUS
IMPROVEMENT
General conditions in
workplaces
PREVENTIVE MEASURES
PPE and emergency situations
or works with special risks
COMMUNICATION AND DIALOGUE
with prevention services
FCC360: a milestone
in communication
with our workers
At FCC, internal communication is a key element in strategic
management and in the development of dialogue with all work-
ers and the achievement of their commitment to the business
project.
In this sense, transparency and agile and truthful information are
fundamental elements for achieving these objectives, for which
we work on different channels, such as websites, portals, App,
Somos FCC digital magazine, etc., and, in terms of content, we
seek to share strategic objectives.
During the 2021 financial year, intense work has been carried
out on the implementation of FCC360, the FCC Group's App,
in order to be able to deliver the payroll, the income tax certifi-
cate, the training offer, and to inform all employees in Spain of
the Group's milestones. This milestone is highly relevant if we
take into account that 77.4% of the Group's workers are not
digital users.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 14 of 15
_ 619
Safety, health and well-being
Strategy and Culture
FCC establishes its strategy in relation to the safety, health and
well-being of its workforce and other stakeholders, such as
contractors and suppliers, based on its policy on this matter
approved in 2019 by the Board of Directors.
Strengthening the culture of prevention and health promotion
is one of the Company's main lines of action. This objective is
supported, among others, by the process of continuous im-
provement of its health and safety management systems, which
are certified in all areas and countries in accordance with recog-
nised international standards such as ISO 45001. This means
that more than 95% of the total workforce is covered by certi-
fication.
Evolution of the main
indicators
In 2021, 1,983 occupational accidents with sick leave occurred
in the FCC Group, of which 1,681 involved men and 302 in-
volved women.
In 2021, the overall accident frequency rate is 18.36 and the
severity rate is 0.71, which means that these markers(19) remain
below the equivalent rates published by the Ministry of Labour
in each sector of activity.
As a relevant fact, it should be noted that during 2021 there
were no fatal accidents involving own personnel inherent to or
directly attributable to the Company's activity.
The evolution of the main accident and absenteeism rates are
shown in Annex II.
(19) The frequency and severity rates are calculated based on 1,000,000 and 1,000 hours worked, respectively.
Health and social welfare
in the context of Covid-19
Within the Vive Saludable project, dedicated to the promotion
of transversal actions to foster healthy habits, those dedicated
to the psycho-emotional wellbeing of workers have acquired
special relevance in 2021. In particular, the following are high-
lighted:
Measurement,
incidence and impact
of pandemic fatigue in
different groups.
Virtual awareness on
digital disconnection.
Online emotional well-being workshops
on energy and happiness,
assertiveness and stress management.
With regard to the particular management of Covid-19 during
2021, the Company has continued to update its protocols, in
accordance with the evolution of the official criteria published
by the Ministry of Health and the different autonomous commu-
nities, in relation to protection measures in the workplace, the
treatment and communication of sick leave, and the monitoring
of cases and close contacts.
The prevention services of the Business Areas and, in particular,
FCC's Medical Service, have developed and maintained strat-
egies for detecting and monitoring cases, as well as advising
the entire organisation on the guidelines for action in force at
all times.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Employees | Page 15 of 15
_ 620
Work organisation
The organisation of working time in the different companies of
the FCC Group responds to the production needs of each activ-
ity, in accordance with the standards and regulations applicable
in each sector and location.
In order to guarantee the well-being of its workers, the FCC
Group considers the appropriate management of the organi-
sation of work to be fundamental and has different initiatives
in place to achieve its objective. Among the different actions
carried out, the Group places special emphasis on work-life
balance, flexibility, co-responsibility and disconnection, which
are adapted to the different realities and organisational or pro-
duction needs of each centre, function or activity. Some of the
actions carried out in the Group, with varying scope and inten-
sity, are as follows:
The measures are specified and regulated for each case in
the collective agreements and pacts, as well as in the different
Equality Plans, all of which have a specific chapter.
Digital disconnection
The Policy on the Use of
Technological Means recognises
and guarantees the right to digital
disconnection for workers
The Group has a Policy on the Use of Technological Means,
which recognises and guarantees the right to digital disconnec-
tion for workers, adapting it to the nature and characteristics of
each job.
In 2021, a training and awareness-raising action was carried
out on the reasonable use of technological tools, promoting
digital disconnection to achieve a better organisation of working
time in order to respect personal and family life. This training has
been followed by 6,887 students in Spain.
Flexible working
hours and holiday
entitlement
Continuous
working days,
summer
periods and
Fridays
Improved leaves
for birth, illness
and death
Extension of
maternity leave,
reduction of
working hours and
leave of absence
Extension of
re-employment
rights: leave of
absence
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Society | Page 1 of 7
_ 621
Society
Promoting social
and environmental
progress
| Towards the construction
of a more humane future,
developing social initiatives
in each territory
The FCC Group shares a common
challenge: to contribute to social
and sustainable progress leaving
no one behind
• Strengthening a common path guided by
the principles of the Code of Ethics and
Conduct
• Contribute to global progress with a
local focus
• Raise awareness and sensitise
Social Footprint
The progressive transformation of business as usual encour-
ages the FCC Group to strengthen its relations with the local
communities in which it operates, working to achieve a greater
degree of well-being and socio-economic development.
At the same time, the FCC Group implements social initiatives
to contribute to citizens as a whole, particularly through projects
in the fields of education and inclusion. With all of this, year after
year, it manages to show its best side to its stakeholders and
strengthen its social footprint.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Society | Page 2 of 7
_ 622
Resilient cities
| Think global, act local
The FCC Group is characterised by its local roots and its voca-
tion to remain in the territories where it operates, contributing to
improving life in the different geographies. In fact, the company
is committed to proximity and closeness to its communities,
favouring the creation of relationships of mutual trust, where di-
alogue and the search for positive synergies that help to design
cutting-edge solutions prevail.
In particular, the Group's main business areas are focused on
guaranteeing environmental services, managing the integral wa-
ter cycle and building sustainable and efficient infrastructures in
the communities in which it operates. In this regard, the Group's
own activity favours the generation of wealth and socio-eco-
nomic growth and development, while transforming cities into
more habitable environments, guaranteeing essential services.
GENERATING
VALUE
TRANSFORMING
CITIES
PROVIDING
BASIC SERVICES
Generating value
The FCC Group considers that it plays an important role in its
communities, carrying out important work in terms of job cre-
ation. The company favours the hiring of people, with a high
percentage of permanent contracts. This aspect is particularly
relevant, given that on many occasions the employment oppor-
tunities offered by the Group are located in rural areas with low
population density. In addition, the Group indirectly supports
the generation of local value, prioritising the hiring of local mate-
rial suppliers and subcontractors. It is also essential to highlight
the company's contribution to the post-pandemic reconstruc-
tion and economic reactivation.
The company seeks to reagent the
local economy, lending a hand in the
face of the economic crisis caused by
the COVID 19
Two studies prepared by the FCC Group's Water Area
have been recognised by the United Nations as dif-
ferentiating projects in the field of post-pandemic
reconstruction, where the analysis in terms of devel-
opment and social integration has also been valued
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Society | Page 3 of 7
_ 623
Transforming cities
The diversification of the services provided by
FCC has allowed it to offer a global service to
the communities in which it operates. The Group
contributes its experience, both in the develop-
ment of infrastructures and in the provision of
environmental and water services, consequently
managing to satisfy the social needs identified.
This transversal specialisation of citizen services,
in addition to meeting customer demand, has
enabled FCC to participate in the transforma-
tion of cities into distinctive environments. In this
way, the Group has managed to position certain
cities as leaders in innovation.
FCC focuses its business management on the design and
provision of citizen services, in pursuit of innovative
sustainable development
The New Water Purification Plant in
Vigo will be a pioneer in the use of tech-
nology to improve the quality of drinking
water.
Aqualia's innovative installations inau-
gurated in Talavera de la Reina resolve,
with customised sustainable solutions,
the challenge of filtering in small towns.
A new construction led by the Infra-
structure Ireland area will provide uni-
versity services to a total of 10,000
students.
The Murcia Tram, led by FCC Construc-
ción, has been recognised as a leader in
sustainable mobility.
FCC Medio Ambiente agrees with Iriza to
produce the first 10 electric Irizar ie ur-
ban trucks, which will be used for waste
collection. This collaboration represents
the Group's contribution to sustainable
mobility, minimising its impact on cities
and thus improving people's quality of
life.
Providing basic services
Access to basic social services, which ensure
people's survival, health and dignity, plays an
essential role in promoting social inclusion.
There are synergies between the provision of es-
sential services, such as access to clean water,
urban cleanliness and drainage, and the main-
tenance of infrastructure, and the reduction of
inequalities and economic growth of communi-
ties. For this reason, the company partly chan-
nels its social commitment through programmes
to guarantee the development of the services it
provides to the community and access to basic
supplies.
Continuing to work together to guarantee
the right to water
Launch of the campaign www.sed-
in collaboration with
solidarios.com,
UNHCR to facilitate access to water for
more than 300,000 refugees, through the
challenge "I run, you run, they live".
Aqualia signs an agreement with Lla-
gostera Town Council to create a So-
cial Fund to guarantee access to drink-
ing water and sewerage for people with
limited resources
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Society | Page 4 of 7
_ 624
Solidarity Action
| A committed company
Integration
of vulnerable groups
The United Nations "Decade of Action" calls for the mobilisation
of all social actors involved in the transition towards new solu-
tions that are ground-breaking and sustainable in the long term.
It is essential to build bridges in order to walk a common path
and ultimately achieve collective objectives.
From this perspective, the FCC Group is getting involved in the
development of its own initiatives that strengthen social cohe-
sion, materialising its commitment in this area. To this end, the
company involves both society in general and its own employ-
ees as agents of change.
The Environment Area has launched a solidarity
campaign to collect food and personal hygiene
products in different work centres throughout the
country.
The Cement business has donated around
3,000 € to the purchase of basic food and
hygiene products for the neediest families in
Seville.
As a result of their involvement and solidarity,
FCC Group employees took part in the voluntary
blood donation organised by the Red Cross.
Since its beginnings, the implementation of projects with a social
mission has remained in the company's DNA. The FCC Group
supports groups in particularly vulnerable situations, which is a
step towards building a more resilient and caring society.
People with disabilities
FCC focuses its efforts on the integration of people with disabilities in the workplace
The FCC Group has renewed its Inserta Agreement with
the ONCE Foundation to continue hiring people with disa-
bilities in the coming years.
The company also took part in the 9th National Advisory
Board of the Inserta Responsible Forum, where the im-
pact of COVID-19 on the integration of people with disabili-
ties into the labour market was discussed.
The water business has signed an agreement with the As-
sociation Abriendo Puertas Moguer to facilitate difficult
access to the labour market for people with disabilities.
CPV collaboration agreement with the Adecco Founda-
tion in the projects: Empleoparatodos and Plan Familia.
• Empleoparatodos, an employment guidance and inclu-
sion programme to improve the employability of the most
vulnerable, generating employment opportunities.
• Plan Familia, a programme focused on increasing the
autonomy, integration and future insertion in the labour
market of disabled family members of employees.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Society | Page 5 of 7
_ 625
Victims of gender-based violence
Other groups at risk of social exclusion
FCC is committed to integrating women victims of
gender-based violence into the workplace
Integration of people with few resources into the
labour market
The integration of women victims of gender vi-
olence into the labour market is a real driving
force for change in society. The FCC Group is
fully aware of the vital importance of access to
employment for this group, which allows victims
of this scourge, over time, to increase their au-
tonomy and independence, their security and
their self-esteem.
The FCC Group accompanies and supports
people at risk of social exclusion by facilitating
their access to employment and in collaboration
with entities specialised in supporting vulnerable
groups.
FCC Medio Ambiente has carried out a
public-private partnership with the Cas-
tile and Leon Regional Government to
prevent gender violence and incorporate
female victims into the labour market.
Aqualia, in collaboration with the Adecco
Foundation, has launched a new cam-
paign against gender violence to finance
a socio-occupational integration pro-
ject aimed at women victims and their
children.
With the aim of offering an opportunity to
people in a situation of prolonged un-
employment, the company has signed
an agreement with the Tramway Foun-
dation through which 30 people have
gained access to the labour market in the
services of FCC Medio Ambiente.
Through the programme "Mejorando
Vidas" [Improving Lives], FCC Medio
Ambiente has donated work clothes
and safety footwear to the Asociación
Norte Joven [Young North Association],
with which it has had a collaboration
agreement since 2017. Thanks to this,
61 people will be able to take another
step on the road to employment.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Society | Page 6 of 7
_ 626
Raising awareness to build
tomorrow's cities
Environmental education and awareness are key steps for de-
velopment and social progress. Knowledge allows all citizens
not only to strengthen conscious decision-making, but also to
enhance their skills by contributing to the resolution of environ-
mental challenges. For this reason, the FCC Group focuses its
efforts on raising the awareness of future generations.
The education of citizens at an early age is a priority area of
action within the company's social action. Thus, throughout its
history, the Group's different businesses have consolidated a
network of academic institutions (primary and secondary ed-
ucation centres, faculties, business schools) with which they
participate in conferences, seminars and courses.
Environmental awareness
Awareness-raising and sensitisation as a transformative tool
For the Group, education is one of the fundamental factors in
achieving social progress. The company materialises its commit-
ment by promoting various initiatives such as the following:
The Cement Area of the FCC Group, in collaboration with
Flacema (Fundación Laboral Andaluza del Cemento y el
Medio Ambiente - Andalusian Cement and Environment
Labour Foundation), has organised environmental aware-
ness days for students from different educational centres.
For yet another year, Aqualia has launched its Digital Com-
petition to raise awareness among young people about wa-
ter care, which has involved almost 6,000 hours of training
and entertainment on environmental issues.
FCC Environment CEE supports schools through the "Smi-
etko" programme, an educational project aimed at paper
collection and environmental education.
Construction Area professionals actively participate in con-
ferences, seminars and congresses where sustainability
and corporate social responsibility are promoted.
Likewise, the FCC Group is concerned with promoting and encour-
aging visits by the educational community to the facilities of the
various businesses. This measure translates into the creation of a
transparent climate and, in turn, makes it possible to increase en-
vironmental awareness and the training of young people in such
important matters as energy efficiency, ecological transition and
industrial sustainability.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Social | Society | Page 7 of 7
_ 627
Fostering partnerships
for a connected and caring
community
In this context, the role played by non-profit organisations
stands out, especially in terms of safeguarding the rights of the
most vulnerable groups. However, these entities have been par-
ticularly affected by the scarcity of resources, which has jeop-
ardised the recovery of their activity.
On the other hand, as a result of its commitment to building
strategic alliances and more collaborative working models, the
FCC Group participates, both nationally and internationally,
with a series of associations that help the company to continue
guaranteeing citizen services year after year.
The year 2021 has been a year marked by joint adaptation to
new contexts characterised by coping and resilience. The fact
is that the scale of the social and economic crisis has called
for strong cooperation between the different social actors to
provide assistance.
The FCC Group, also in 2021, has made a significant financial
contribution to fostering the resilience of these institutions and
playing an active part in a more supportive and inclusive com-
munity.
See Annex V for a list of associations.
The FCC Group contributes to the resilience
of communities
The company has donated a total of 983,399 € to non-profit organisations and foundations.
Promoting economic development through monetary
contributions to social entities to meet the needs of the most
disadvantaged groups
The FCC Communities Foundation
supports
local communities, heritage
protection and the environment.
More than 6.6 million pounds contribut-
ed to a total of 151 projects in the UK.
The materialisation of these contributions allows
the Group to strengthen its contribution to the
2030 Agenda and to continue working, as it
does every year, to achieve the SDGs related to
economic progress, the reduction of inequalities
and the social development of the cities of to-
morrow.
Transparency framework
In accordance with the
Group's Code of Ethics and
Conduct, sponsorships,
collaborations or donations
shall comply with the
following premises
• They are awarded to entities that are distinguished
by their impeccable behaviour and that have an or-
ganisational structure that ensures the proper ad-
ministration of the resources received.
• They are awarded in relation to objective criteria re-
lated to the Group's activities.
• Any collaboration or sponsorship must be docu-
mented and duly authorised.
• In order to know the final destination of the resourc-
es, to the extent possible, FCC monitors the use of
the contribution.
Type of contribution (€)
Donations to non-profit organisations and foundations
Sponsorships
Contributions to associations
Contributions to political parties
Others
Total
2020
1,160,289
1,452,856
1,554,968
–
155,768
4,323,882
2021
983,399
1,826,051
1,847,790
–
170,544
4,773,448
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance
_ 628
ESG
Governance
| Doing our duty
Ciberseguridad
GOVERNANCE CHALLENGES
RESPONSES FROM THE FCC GROUP
Cybersecurity can entail different risks, including:
• Potential damage to the environment, infrastruc-
ture and water management services, linked to
online control systems and IT networks. These
events can result in pollution events, deteriora-
tion, saturation or closure of physical or digital
infrastructure(20).
The FCC Group understands the importance of the
possible risks linked to cybersecurity and therefore
develops new technologies through which it can
prevent potential risks.
• The company has its own Cybersecurity Model
to implement security measures in the Group's
information systems.
• Threatening the proper functioning of electoral
systems through possible manipulation of data(21).
• Promotion and development of cybersecurity ex-
pertise in the company.
On the other hand, new technologies will bring chal-
lenges such as growing unemployment, unequal
distribution of wealth, violations of privacy, discrim-
ination(22), etc.
In order to respond to these threats, investment in
cybersecurity is needed, while strengthening pub-
lic-private partnerships(23).
• Implementation of measures on the basis of the
risk analysis developed.
• Supervision and monitoring to ensure compliance
with applicable regulations.
(20) Cybersecurity Guide, (2021), Cybersecurity in the environmental protection field.
(21) MCKinsey, (2019), Confronting the Rrisks of Artigicial Intelligence.
(22) Forbes, (2021), The Role of Bias in Artificial Intelligence.
(23) Fortune (2021), Cybersecurity expert say public-private partnership is the key to preventing future attacks.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance
_ 629
Transparency and Reporting
Compliance and Good Governance
GOVERNANCE CHALLENGES
RESPONSES FROM THE FCC GROUP
GOVERNANCE CHALLENGES
RESPONSES FROM THE FCC GROUP
Improving the availability and disclosure of non-fi-
nancial data is necessary for the redirection of in-
vestments and capital flows towards sustainable
investment(24). To achieve this, it is necessary to:
The FCC Group strives to guarantee the transpar-
ency of its actions and excellent corporate govern-
ance, as a basis for work aligned with the principle
of transparency that governs its activity.
• Collaboration between entities to establish glob-
ally accepted and implemented standards of per-
formance.
• Avoiding greenwashing or the dissemination of
biased information and achieving the homogeni-
sation of reporting standards at international level.
More comparable, complete, reliable and under-
standable non-financial information(25).
• Both the FCC Group and the main business are-
as publish their respective sustainability reports or
CSR reports, verified by an independent external
entity where appropriate.
Good governance practices, ethical conduct and
regulatory compliance are becoming fundamental
pillars and values of business(26).
This is the result of new regulations(27) and increas-
ing demands from consumers, customers, con-
tracting bodies and other stakeholders in society.
It is essential for companies to focus their efforts
on governance models characterised by listening
to stakeholders, promoting diversity(28), integrating
the SDGs and ESG criteria in all their systems and
processes, such as in their salary systems.
The FCC Group strives to promote a corporate cul-
ture of ethics and integrity, as reflected in its Code
of Ethics and Conduct. In this area, over the years
the company has approved a set of Compliance
regulations that includes policies such as: the An-
ti-corruption Policy, Human Rights, Relations with
Partners, Agents, Tenders, Gifts, among others. In
addition, the approved Compliance Model incor-
porates elements such as a Criminal Prevention
Manual, crime-risk-control matrices, procedures for
certification and supervision of the Model and an
Ethical Channel for the communication of potential
non-compliance.
On the other hand, since the entry into force of the
Code of Good Governance of Listed Companies of
the CNMV, the Group has incorporated and imple-
mented in its corporate governance, most of the
recommendations set out in the said Code.
(24) Ernst & Young, (2021), The Future of Sustainability Reporting Standards.
(25) CNMV, (2021), “Supervisión del desempeño no financiero” Participación en las jornadas de sostenibilidad organizadas
por Grupo Red Eléctrica.
(26) PWC, (2020), The eight key effective corporate governance practice.
(27) World Economic Forum, (2015), 3 factors driving better corporate governance.
(28) London School of Economics (2018), Good Governance Requires Diversity.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Exemplarity | Page 1 of 5
_ 630
Exemplarity
An exemplary
organisation
| 120 years committed to an
integrated project, guaranteeing
transparency and good governance
Good Governance
| At the forefront of good corporate
governance best practices
In a volatile and dynamic context, the FCC Group continually
seeks to adapt to trends in Good Governance and to comply
with regulatory requirements. By aligning itself with the recom-
mendations set out by the Spanish National Securities Market
Commission (CNMV) in the Code of Good Governance for listed
companies, FCC fully or partially complies with most of the rec-
ommendations that apply to it.
The FCC Group is also aware that company governance is
one of the fundamental keys to building trusting relationships,
and is committed to a robust governance architecture and effi-
cient and responsible self-regulation. For more information, see
Chapter A Competent Structure.
To do so, the company is inspired by and based on the foun-
dations of its business, which have been consolidated for more
than 120 years: ethical principles; commitment and loyalty;
honesty and respect; and rigour and professionalism.
A system of governance that
is a benchmark in the sector,
as an essential means of
strengthening the values and
sustainability of the FCC Group.
Common and sustainable project
Strategic vision
Balance and transparent governance
Culture of integrity
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Exemplarity | Page 2 of 5
_ 631
Furthermore, in line with its commitment to transparency, the
FCC Group prepares its Corporate Governance Report and
its Salaries Report every year. Both documents are approved
by the Board of Directors and subsequently published on its
website.
The FCC Group's commitment to the development of these re-
ports contributes to generating a climate of trust, guaranteeing
transparency and truthfulness in the information and generating
greater understanding and dialogue with its stakeholders.
In the area of corporate governance, the Board of Directors has
agreed on the following issues for the financial year 2021:
– Amendment of the Regulations of the Board of Directors.
The General Meeting agreed as follows:
• Amendment of the Articles of Association.
• Amendment of the Regulations of the Annual General
Meeting of Shareholders.
• Approval of the Directors' salary policy.
A competent structure
| Constantly evolving to ensure ethical excellence
The increasingly stringent demands of stakeholders show that
institutions or entities, including companies or businesses, are
the ones that must make decisions at critical moments and pro-
vide imminent responses to the new emerging challenges they
face. FCC's corporate structure is professionally prepared for
this, as it works on a daily basis across the board, guaranteeing
that the interests and concerns of the stakeholders of each of
its businesses are represented.
This model of action allows the company to work towards a
common project and contribute to the same challenge: trans-
parency and good governance.
Thus, in line with the Group's Articles of Association, its cor-
porate governance structure is made up of five bodies: the
General Meeting of Shareholders, the Board of Directors, the
Executive Committee, the Audit and Control Committee and the
Appointments and Remuneration Committee. For more infor-
mation, see Chapter Governance structure.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Exemplarity | Page 3 of 5
_ 632
Composition and functioning
Meetings and attendance of the Board of Directors and Committees
The Board of Directors is the highest body which, with the ex-
ception of certain powers reserved to the Shareholders' Meet-
ing, works to properly manage, administer and represent the
FCC Group.
In compliance with Articles 34.1 and 31.2 of the Regulations of
the Board of Directors and the Articles of Association, respec-
tively, the Board of Directors met a total of 11 times during the
financial year 2021, with an average attendance of 90,26%.
Furthermore, as the following chart shows, the Board is made
up of 14 directors, elected by the General Shareholders' Meet-
ing, in accordance with the principle of representativeness of
the structure and the balance of its governance.
Esther
Koplowitz Romero
de Juseu(2)
(Deputy Chairwoman)
Pablo
Colio Abril
(CEO)
Alejandro
Aboumrad González
Carmen
Alcocer Koplowitz(3)
Alicia
Alcocer Koplowitz
Manuel
Gil Madrigal
Antonio
Gómez García
Board of Directors
Executive Committee
Audit and Control Committee
Appointment and Remuneration Committee
Meetings no.
11
10
10
6
The Board of Directors met a total
of 11 times during the financial
year 2021, with an average
attendance of 90,26%
Nature of the position
P
P
Executive
Proprietary
Independent
Board of Directors
P
Álvaro
Vázquez de Lapuerta
Alfonso
Salem Slim
Juan
Rodríguez Torres
Esther Alcocer
Koplowitz(1)
(Chairwoman)
Carlos
Slim Helú(4)
Henri
Proglio
Gerardo
Kuri Kaufmann
Type of Committee
Audit and Control Committee
Appointment and Remuneration Committee
Executive Committee
P
President
En representación de:
(1) Dominum Desga, S.A.
(2) Samede Inversiones 2010, S.L.U.
(3) Dominum Dirección y Gestión, S.A.U.
(4) Inmobiliaria AEG, S.A. de CV.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Exemplarity | Page 4 of 5
_ 633
Plurality
and independence
in the Board
| Diversity in the first person
An organisation that works to introduce diversity in its Board of
Directors is able to strengthen its business model, broadening
the strategic vision and understanding of the markets in which it
operates. It also makes it possible to create an attractive corpo-
rate culture, promoting equality in positions of greater responsi-
bility between men and women. For this reason, the FCC Group
focuses on a plural composition of its Board of Directors.
A corporate philosophy oriented towards
diversity and equality as central pillars of
growth and social progress.
At year-end 2021, the FCC Group has 28.57%
female board members.
Another added factor, a product of FCC's efforts to
achieve a diverse Board of Directors, is the high per-
centage of people of different nationalities.
Plurality on the Board, reflecting a diverse and
international company.
In 2021 the FCC Board of Directors is
represented by three nationalities: Mexican,
Spanish and French.
During 2021, FCC has renewed
its commitment to the Spanish
Diversity Charter for the period
2021 - 2023, in recognition of its
equality policies, its commitment
to social inclusion and its
determination to be an increasingly
diverse and socially responsible
company, promoting actions and
projects to foster inclusion and
equality through employment
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Exemplarity | Page 5 of 5
_ 634
Transparent
remuneration
| Accounting for a transparent present
and future
For the FCC Group, the Board of Directors' remuneration model
for good governance is of crucial importance. The company
strives to guarantee and reflect the culture of integrity that char-
acterises them.
Therefore, in order to materialise this commitment, the General
Meeting of shareholders of FCC approved the Board Members'
Remuneration Policy which, with a term of 3 years, will give
continuity to the previous one, with regard to the principles,
structure and content of the remuneration package for board
members. In this way, the new features introduced by this policy
duly respond to the amendments made to the Capital Compa-
nies Law by the reform introduced by Law 5/2021, of 12 April,
which amends the revised text of the Capital Companies Law.
In addition, as it does every year, the FCC Group prepares its
Annual Report on the remuneration of board members of list-
ed companies, a document that provides an individual break-
down of the amounts received by board members in the course
of their duties during 2021. This document is available on the
company's corporate website.
The determination of such remuneration is therefore a matter for
the General Meeting of Shareholders, which shall consider the
following principles and criteria:
Guaranteeing the performance and
sustainability of the FCC Group in the long term
Remunerating the dedication, qualification
and responsibility required by the position
Ensuring the principle of transparency
Encouraging motivation
Retaining talent as a commitment to the future
Establishing competitive amounts, in line
with those established by companies similar
in size and activity
Taking due precautions in order to avoid
results that do not accompany the value
creation and that could place FCC in
potentially risky scenarios
Lastly, it should be noted that, apart from the fixed remunera-
tion, there are allowances for board members to attend board
meetings and internal committees convened during the year. In
addition, the company allocates a variable amount to executive
board members, based on the fulfilment of corporate objec-
tives. For further information, see the Board Members' Remu-
neration Policy and the Annual Report of the Board Members
on the FCC Group's corporate website.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Integrity | Page 1 of 7
_ 635
Integrity
Consolidated Integrity
| A shared line of action. Work at the
highest level in line with consolidated
principles that guarantee Citizen Services
Legitimate
compliance
| A shared project combining technical
excellence and due diligence to ensure
exemplary behaviour
The FCC Group works daily to be a leading company in the
continuous search for new ways to meet the needs of its cus-
tomers, while assuming an essential role as a socially respon-
sible agent. Since its origins, it has been characterised by the
development of long-lasting relationships based on trust and
mutual benefit, governed by the principle of transparency, a ba-
sic principle of its business.
A reflection of this commitment is its Compliance Model, the
purpose of which is to prevent and detect risks of non-compli-
ance, with particular attention to behaviour that could lead to
criminal offences.
Within the Compliance Model, the Code of Ethics and Con-
duct is considered the core of the culture, values and principles
that govern the behaviour of the FCC Group's collaborators.
This Code lays the foundations for conduct of integrity, unifying
and integrating a common commitment to due diligence, not
only in the practices carried out directly by FCC or through its
subsidiaries, but also throughout its supply chain.
REGULATORY BLOCK THAT MAKES UP
THE FCC GROUP'S COMPLIANCE MODEL
• Gift Policy.
• Agent Policy.
• Crime Prevention Manual.
• Anti-corruption Policy.
• Ethical Channel Procedure.
• Human Rights Policy.
• Compliance Committee Regulations.
• Investigation and Response Procedure.
• Policy on relations with partners in Compliance issues.
• Harassment Prevention and Eradication Protocol.
• FCC Group participation policy in bidding processes for
goods or services.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Integrity | Page 2 of 7
_ 636
Thus, in order to make progress in the application of the Com-
pliance Model and, in turn, achieve results in accordance with
the Group's commitments, the following actions were taken in
2021:
• Completion of the review started in 2020 of the criminal risk
• Annual supervision of the Compliance Model by the Group's
assessment carried out in 2018.
Internal Audit function.
• Review of the regulatory block of the Compliance Model, with
a proposal to the Board of Directors for an amendment to the
Code of Ethics and Conduct in relation to the new limitation
on cash payments.
• Conducting two half-yearly self-assessments, and certifica-
tion in the Compliance Tool, of the controls designed to re-
duce criminal risks to a minimum, with a total of more than
3,000 self-assessed controls per certification.
• Review, in accordance with best practices in internal control,
of the design and effectiveness of 60% of the controls of Cen-
tral Services and FCC Concesiones (48 controls), related to
the crimes of bribery, and against the Public Treasury and
Social Security, assessed as High Risk.
• Implementation of new functionalities in the Compliance Tool.
• Approval of the FCC Group's three-year 2021-2023 Compli-
ance Training Plan.
• Risk assessment of suppliers in Compliance matters. The
procedure for the approval of suppliers in the area of Compli-
ance has been running since the end of 2019, although it is
since April 2021 that the risk has begun to be assessed and
the direct involvement of the Compliance function has been
required in cases of high risk. In these nine months, a total
of 870 suppliers have been approved under the new crite-
ria, with specific analysis action required by the Compliance
Function for 34 suppliers. None of these suppliers received
an unfavourable assessment from Compliance.
• Conducting 220 due diligence assessments of third parties
(partners, agents, suppliers) from the Group's businesses.
• Completion of the implementation of the Compliance Model
in the international subsidiaries, with the approval of the risk
matrices, the launch of the self-assessment/certification of
controls and the redirection of the complaints channels to the
Group's Ethics Channel.
• Launch of new online training courses through the FCC Cam-
pus platform on the Code of Ethics and Conduct and Criminal
Prevention, and extension of the scope of the training given in
Spain to international subsidiaries.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Integrity | Page 3 of 7
_ 637
The FCC Group does not limit itself to having a strong set of
regulations to encourage exemplary behaviour, but has set up
a Compliance Committee –the Group's Criminal Prevention
body with autonomous powers of initiative and control– whose
functions include being the person in charge of promoting an
ethical culture throughout the organisation and ensuring regu-
latory and regulatory compliance, both internally and externally.
In particular, this Committee works to ensure excellent monitor-
ing of the Compliance Model, assessing, if deemed necessary,
possible improvements in the controls and systems established
in the company.
In order to ensure the rigour, efficiency and commitment to the
excellent performance of the Compliance Model, persons in
charge are appointed for each of the controls designed to pre-
vent risks. Their objective is to carry out these controls through-
out the year, and to self-assess and certify their functioning
every six months. In the event that the "Control Owner" detects
that the control has undergone any modification, has not been
carried out correctly, or does not act adequately in its function
of minimising risk, he/she will report his/her observations for the
corresponding analysis by the Compliance Officer.
COMPLIANCE
COMMITTEE
COMPOSED OF:
Chairperson
Member
Member
Invitees
Corporate
Compliance Officer
General Manager
of Legal Counsel
Human Resources
Director
Business Compliance
Officers
When their participation is required:
General Manager of Internal Audit
Member with voice and vote
Reporting directly to:
Audit and Control Committee
(Board of Directors)
Compliance Committee
Meetings
2021
19
Meetings
12
7
Ordinary
meetings
Extraordinary
meetings
The FCC Group focuses on a shared corporate culture, where
its workers assume their responsibility as agents of change. To
achieve this goal, the Group pays special attention to the fol-
lowing aspects:
• Training on the Code of Ethics and Conduct
The FCC Group promotes continuous training and dissemi-
nation programmes on the Code of Ethics and Conduct, the
cornerstone of integrity. In 2021, the continuity of the social
and healthcare crisis, suffered in all geographic areas of the
Group, has favoured a significant boost to the FCC Campus
training platform. Thus, in 2021, a total of 13 online training
courses were given in the area of Compliance.
• Ethical Channel of the FCC Group
The Group's workers have the right and duty to report possi-
ble breaches of the Code of Ethics and Conduct to the Eth-
ical Channel, which is accessible through three means: post
office box; e-mail; and a form on the corporate intranet. The
Ethical Channel is governed by the provisions of the Group's
Ethical Channel Procedure, and guarantees the confidential
handling, without fear of reprisals, of the notifications re-
ceived.
In 2021, a total of 192 notifications were received in the
Group's Ethical Channel (63 non relevant), 68% of which
were of a labour-related nature. At the closing date of this
report, 88.4% of the relevant notifications received had been
resolved.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Integrity | Page 4 of 7
_ 638
The right path
to Human Rights
| Transparency and integrity as
necessary ingredients to build the
right path towards full respect for
Human Rights
Aware of the strong influence and impact of the business com-
munity on society and the progressive transformation of the tra-
ditional business as usual, the FCC Group wants to be an active
part of the change.
The company not only promotes Fundamental Rights, creating
alliances that make certain social progress tangible, but it is also
governed, since 2019, by its Human Rights Policy, approved by
its Board of Directors, and aligned with the Guiding Principles
for Business and Human Rights. In addition, the FCC Group is
a member of various international Human Rights instruments:
• United Nations Global Compact.
• Universal Declaration of Human Rights Framework.
• Declaration of the Rights of the Child.
• Various ILO conventions.
• Other agreements of the Building and Wood Workers' Inter-
national Federation (BWINT).
Although the "inadequate management of aspects related to
Human Rights" is a risk identified by the Group within the cat-
egory of Strategic Risks, due to the significant impact that its
materialisation would have on the organisation, the character-
istics of the business and the different governance instruments
and policies implemented transversally throughout the Group
ensure a high level of control over it.
Aspects such as a geographical location mostly in developed
countries, the globalisation of the Group's Human Rights Pol-
icy, human resources policies, procurement policies, and the
Compliance Model, with specific controls over suppliers in the
area of Human Rights management, significantly reduce the
likelihood of impacting on these essential rights.
In any case, and in accordance with its Human Rights Policy,
FCC is committed to guaranteeing freedom of partnership and
collective bargaining, as a basis for cooperation, dialogue and
the creation of positive synergies between the company and
its employees. Furthermore, the company creates relationships
based on mutual trust, respect and collaboration with the lo-
cal communities in which it operates, generating employment,
well-being and wealth in these communities.
On the other hand, the FCC Group rejects child labour and
forced labour, favouring dignified and paid employment, in a
healthy environment, where its workers can develop their skills
and where their needs are taken seriously into consideration.
Likewise, the company is committed to diversity, condemning
any type of discrimination and favouring more inclusive envi-
ronments.
The Group is currently focusing its attention on its supplier
chain. Aware that less control increases the risk of non-compli-
ance, the company has approved a new supplier management
procedure, which defines the approval processes and manda-
tory responsible declarations prior to contracting products and
services. These approval processes include, unsurprisingly,
aspects relating to the protection of Human Rights (for more
information, see section Responsible purchasing).
Based on this commitment to contribute to the respect for Hu-
man Rights, as has occurred in previous years, in 2021 no com-
plaint has been received by the FCC Group that has resulted in
a violation of these fundamental rights and freedoms.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Integrity | Page 5 of 7
_ 639
Legal action against
corruption and
money laundering
| Leading change through accountability
The FCC Group is a company that values its international pres-
tige as an essential asset, the result of the hard work carried
out by different generations of people committed to offering the
best service to citizens. However, such recognition on a global
scale can be jeopardised or damaged by malpractice.
Bearing in mind that acting with integrity and honesty benefits
both its stakeholders and the company itself, the FCC Group
categorically rejects fraud, corruption and, in short, all forms of
bribery.
The FCC Group and its fight
against corruption
Indeed, FCC not only reiterates its rejection of the aforemen-
tioned activities, strictly abiding by the law in each territory in
which it operates, but also establishes preventive and control
measures to remove any doubt regarding the ethics of its be-
haviour. An example of this line of action against bribery and
money laundering is the creation of different policies that rein-
force the commitment set out in its Code of Ethics and Con-
duct and prevent the occurrence of such conduct.
Of particular relevance in this area is the Anti-Corruption Poli-
cy, which sets out the guiding principles for its activities:
1 Compliance with the law and ethical values.
2 Zero tolerance for bribery and corruption.
3 Vigilance in the ownership and confidentiality of data.
4 Rigour in control, reliability and transparency.
5 Prevention of money laundering and transparent communication.
6 Extension of commitment to partners in the business.
7 Promotion of continuous training on ethics and compliance.
8 Transparent relationship with the community.
9 Conflicts of interest.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Integrity | Page 6 of 7
_ 640
FCC also complements and reinforces its fight against atti-
tudes related to corruption and bribery with two additional
procedures:
Agent policy
This policy establishes the general and essential prin-
ciples by which the relationship between FCC and any
commercial agent or business collaborator must be
governed, as well as the basic aspects to be observed
in the procedures for selecting, negotiating, and con-
trolling the performance of these operators.
Gift policy
Its main objective is to foster a culture of business eth-
ics in the organization, particularly with regard to the
practice of giving and accepting gifts. This policy not
only implies that all employees must behave in accord-
ance with the law, but it is also an additional element
of exemplarity that places the Group’s actions beyond
any risk.
Tendering policy
The purpose of this policy is to establish the basic and
common elements of the FCC Group for the prepara-
tion and presentation of bids for competitive contract-
ing processes, called by public or private entities. In
addition, it pursues the correct compliance with the
regulations applicable to tendering procedures, mini-
mizing the risk of possible breaches of regulations, es-
pecially in the criminal (corruption, fraud, bribery, etc)
or antitrust areas.
In addition, another measure to prevent corruption, bribery,
influence peddling, fraud and money laundering is the training
that the FCC Group makes available to its staff, mandatory
training for the group directly affected. Specifically, training in
corruption prevention was taken by a total of 319 workers in
2021, with nearly 3,400 people trained since its launch in 2020.
In relation to the assessment of exposure to corruption-related
offences, the Group carries out a regular analysis of all its oper-
ations considering the geographical areas in which it operates.
As a result of this assessment, a matrix of corruption-related
risks and controls with national and international scope is avail-
able.
To ensure regulatory compliance, the FCC Group identifies risks
and draws up a roadmap of controls to prevent the commission
of criminal acts and, if necessary, to exempt the legal entity from
liability. Among the control procedures with respect to activities
related to corruption and bribery, the following stand out:
CONTROL PROCEDURES
• Approval, by the Communications Directorate, of sponsorships,
• Procedure for communication and approval of need to purchase,
donations and collaborations.
and the Purchasing Manual.
• The Group's selection procedure, based on a competency-based
system to ensure transparency and equality in all selection pro-
cesses.
• Declaration regarding conflict of interest in recruitment processes.
• Reconciliation of bank statements for the detection of outstand-
ing or unreasonable movements.
• Management of the legal representatives of each company.
• Due Diligences prior to contracting certain partners, agents and
• Annual training plan on Criminal Prevention and Anti-Corruption.
suppliers.
• Approval of travel and representation expenses.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Integrity | Page 7 of 7
_ 641
Fight against money laundering
In accordance with its Code of Ethics and Conduct, FCC has
no tolerance for money laundering and acts to deal with prac-
tices of this type. Over the last few years, working with strong
evidence of Compliance management and control has become
one of the main tasks for the FCC Group.
To achieve this objective, the company itself carries out an on-
going assessment covering governance objectives, risk control
and compliance with anti-money laundering regulations.
In particular, through the analysis of the risks to which FCC
could be subject, three possible dangerous situations have
been detected, specifically with respect to those companies
that are obliged subjects in accordance with the provisions of
Law 10/2010, of 28 April, on the Prevention of Money Laun-
dering:
• Failure to review customer identification and control proce-
The following procedures have been established to control
these risk events:
• The inclusion of a clause on the Prevention of Money
Laundering in real estate development marketing
contracts.
• The review of contracts of sale, lease or lease-purchase.
• The review of legal representatives for the revocation of
powers granted to a person who has left the company.
• The existence of an internal advice and complaint line.
dures.
• The Prevention of Money Laundering Manual.
• Failure to comply with the reporting obligation.
• Non-implementation of internal control measures.
• The existence of a body for the supervision and
monitoring of money laundering prevention measures.
• The identification of interested parties in a Real Estate
asset, in order to assess the risk of the operation.
• The provision of training to employees on Money
Laundering.
Reflecting the FCC Group's involvement in this matter, there are
no reports of money laundering.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Cybersecurity | Page 1 of 2
_ 642
Cybersecurity
A secure network
| The FCC Group's
information security at the
service of citizens
Information Security
| Ensuring the protection of information through
cybersecurity
In an increasingly connected and digitised world, companies
are increasingly confronted with potential cyber threats, which
poses a major challenge when implementing cyber security
models and measures to ensure information security.
According to the latest "Global Risks Report 2022", published
by the World Economic Forum, concerning the greatest global
risks (economic, environmental, geopolitical, social and tech-
nological), "cybersecurity failures" may become a critical global
risk within 5 years.
In this context, the FCC Group considers information to be a
strategic resource, and is therefore committed to ensuring the
protection and security of the information of the company, its
customers, outsourcers and suppliers, its products and servic-
es, against various cyber threats.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Cybersecurity | Page 2 of 2
_ 643
Cybersecurity Model
The company has its own Cybersecurity Model which establish-
es the basic principles and basic requirements for developing
the appropriate security measures for the Group's information
systems. The company also has a regulatory framework for in-
formation security, which applies to all its business areas and
whose main objective is to keep the confidentiality, integrity and
availability of the information.
In addition, the FCC Group is committed to protecting the per-
sonal data and any other relevant information of its employees,
customers and suppliers in order to comply with the legal re-
quirements in this area and to ensure that the appropriate pro-
cedures are established. In this regard, it is worth highlighting
the values that guide the company in the daily work of the treat-
ment of personal data:
Measures to improve information security
In order to respond to the increasingly foreseeable information
security risks, the FCC Group is carrying out a number of initi-
atives.
Cybersecurity Model and
Regulatory Framework
Values that guide the company in the daily
work of the treatment of personal data
Key cybersecurity initiatives
FCC Group's main information security objectives:
• Transparency and confidence in the secure treatment of
Confidentiality
Integrity
Availability of information
Personal Data at all times.
• Responsibility and commitment in the use of Personal Data
based mainly on their confidentiality.
• Availability of Personal Data on a need-to-know basis and
only to persons who need it by reason of their functions.
• Integrity of information to prevent unauthorised handling.
• Identification and development of the necessary cybersecu-
rity skills and knowledge in the different areas, as well as the
promotion of a cybersecurity culture at all levels of the organ-
isation.
• Start of the implementation and standardised prioritisation of
cybersecurity measures based on a risk and threat analysis,
with a focus on systems supporting critical infrastructure and
essential services.
• Establishment of mechanisms to control and monitor the
state of cybersecurity in the different areas of the company
and ensure compliance with applicable internal and external
regulations.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Customers | Page 1 of 4
_ 644
Customers
Excellence in service
| Attention and safety frame
the work of the FCC Group in its
relationship with customers
Example of
experience
| Attending to the needs
of each customer
As expressed in the Code of Ethics and Conduct of the FCC
Group, the company is characterised by promoting a culture fo-
cused on customer care and commitment. Every year, the FCC
Group invests more and more resources in perfecting its offer
of differentiating products and services in all its business areas,
in order to satisfy the demands of its customers and anticipate
their needs.
In an increasingly competitive environment, the FCC Group is
aware of the value generated for the business by a relation-
ship of trust and credibility with its customers, through two-way
communication, as detailed in chapter Communication with
Stakeholders. The Group's continuous dialogue and effective
response enables it to strengthen relations with its customers,
thanks also to the expertise of the Group's staff.
The commitment to the customer is materialised in adequate
attention and anticipation, but also through the diversification of
products and services, which are adapted to the different types
of customers.
PUBLIC SECTOR
PRIVATE SECTOR
COMMERCIALISATION AND SALES
FINAL USER
The cities of the future must be the result of working hand in hand
with a multitude of public entities and organisations.
FCC’s plurality of services also includes projects designed for the
private sector.
In particular, the Cement Business maintains a direct relationship
with the customer that guarantees the commercialisation of a high
quality product, in accordance with all its safety standards.
With the aim of participating in the change and development of
the cities of the future, the FCC Group brings together a series of
activities whose ultimate goal is the full satisfaction of its populations
as end users.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Customers | Page 2 of 4
_ 645
Customer care
| High-quality customer services, where
trust and security prevails
The FCC Group works to maintain the high-quality standards
that define its range of products and services, always taking
into account health and safety criteria and complying with the
legislation applicable to all its businesses. Moreover, the Group
considers communication with its customers to be necessary
and essential to maintain the principle of continuous improve-
ment, as well as customer satisfaction.
A necessary condition to secure the trust we seek from our
customers is, undoubtedly, to guarantee them that the Group
cares about and meets their need for privacy of information. The
company works under the principles of the applicable Europe-
an legislation, which are consolidated, at management level,
through the ISO 9001 certification in all its areas of business.
BEST PRACTICES FOR SAFE AND QUALITY WORK
FCC Servicios Medio Ambiente
Cementos Portland Valderrivas
FCC Medio Ambiente Iberia
• Safety data sheets for the products it commer-
Specific health and safety measures for work in public
spaces and in public spaces and roadways in order to
ensure the safety of citizens.
FCC Environment UK
Software for recording, investigating and resolving inci-
dents related to customer health and safety.
FCC Environment CEE
In the Czech Republic, assessments of risk, safety and
personnel at all stages of its projects.
cializes
• Packaging and labelling in accordance with the
European CLP regulation
• Registration of cements commercialized in Spain
with the National Institute of Toxicology and Fo-
rensic Sciences
In the area of health and safety, the company promotes a num-
ber of actions which are highlighted below:
FCC Construcción
Aqualia
• ISO 27000 certification for information security.
• Water quality control system within its Aqualia
• Project risk and security assessments.
LAB network.
• ISO 17025 accreditation in its laboratory located
in Badajoz for environmental tests.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Customers | Page 3 of 4
_ 646
Listening
and responsibility
| Customer satisfaction is the result of
applying the values of the FCC Group
with a deep understanding of consumer
opinion
The FCC Group understands the different types of customers
that define each of its areas of business. For this reason, and
for objective and efficient management, it applies in each area
methodologies adapted to the different casuistry, in order to
listen adequately to the concerns of the entities and users it
serves.
In addition, each business line develops its own tools for proac-
tive listening and response, and it is responsible for monitoring
the satisfaction of its individual customers.
Every business has different tools at its disposal to deal with
and get to know the opinion of its customers.
COMMUNICATION MECHANISMS FOR SERVING DIFFERENT TYPES OF CUSTOMERS
FCC Servicios Medio Ambiente
• Responsibilities and methodologies for your administrative
clerks, sales and/or customer service staff in accordance
with local laws, for personalised communication, via face-
to-face, online and/or by telephone.
• Complaints received by FCC Medio Ambiente Iberia are
registered through its VISION computer application. After
responding to the observations sent by its customers, the
company proceeds to study and analyse them, obtaining
conclusions on customer satisfaction.
• In the area of Industrial Waste, specialised methodologies
are used for the private sector, using satisfaction surveys or
the Top Ten method.
• In Poland, there is also a specific complaints system for
waste management and treatment services.
Aqualia
• Call centre.
• Social media.
• SMS messages for notifications of invoices with incidents
and network failure notices.
• Aqualia Contact platform and mobile application, to carry
out virtual office functions (searches for support channels
available in the municipality, invoicing or payments) and
carry out satisfaction surveys. It also allows customers to
access all the support channels available in their municipal-
ity through its search engine.
FCC Construcción
• Figure of the "customer interlocutor" responsible for man-
aging and processing suggestions and feedback, as well
as managing the collaboration with the customer.
Cementos Portland Valderrivas
• Dealing directly with trade departments of customers.
• Technical-sales support in periodic visits for personalised
service.
• Online management of the Digital Channel for customers,
portal for access to invoices, delivery notes, balance and
quality certificates, and evolution of the activity, projects
and works, etc.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Customers | Page 4 of 4
_ 647
Complaint systems, complaints
received and their resolution
The complaints and claims received and managed in each of
the Group's business areas during 2021 are set out below:
Para el caso concreto de FCC Construcción, el periodo medio
de resolución de las quejas ha disminuido considerablemente
debido a que la mayoría de las quejas recibidas durante el año
2021 tienen un periodo de resolución extenso y no están cerra-
das, por lo cual formarán parte del reporte de 2021.
Para el caso de Cementos, dicho período de resolución ha dis-
minuido porque este aumentó más de lo normal en 2020, debi-
do a la recepción de una serie de quejas más complejas de lo
normal, que aumentaron la media de días.
En la siguiente tabla se muestran los resultados de las quejas
y reclamaciones recibidas a lo largo del ejercicio 2021 en el
Grupo FCC:
COMPLAINTS AND CLAIMS(*)
RESULT OF COMPLAINTS AND CLAIMS(*)
Aqualia
Medio Ambiente
Construcción
Cemento
2020
2021
2020
2021
2020
2021
2020
2021
Aqualia
Ambiente Construcción
Cemento
Medio
Received
Managed(29)
Average resolution
time (days)
–
–
–
–
16,180
15,948
6,697
10,043
9,350
9,346
105
103
177
177
4.6
2.92
49
22
15
15
80
10
10
24.1
Not accepted
Filed
Resolved
Other type of result obtained
–
–
–
–
(*) Complaints received and handled by the Environmental Services Area activity in Serbia have not been considered.
Total complaints received
15,948
89
278
8,983
–
9,350
–
–
93
84
177
–
–
7
3
10
(29) Managed: all complaints and claims that have been dealt with by the company and have resulted in their closure,
regardless of the final result obtained (not accepted, filed, resolved in favour of the customer, resolved in favour of the
company).
(*) Complaints received and handled by the Environmental Services Area activity in Serbia have not been considered.
QUALITY SURVEYS SENT TO CUSTOMERS
Below is a breakdown of the number of surveys sent and
received by each of the FCC Group's business areas:
No. of surveys sent
No. of surveys received
Aqualia
187,760
3,325
Medio
Ambiente
1,919
570
Construcción
Cemento
370
351
882
92
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Supply chain | Page 1 of 4
_ 648
Supply chain
Sustainable provisioning
| Redesigning
value chains
Responsible purchasing
| A responsible supply chain for a sustainable
planet
The crisis resulting from Covid-19, together with the social and
climate challenges of the last few years, have triggered an oper-
ational rethink of supply chains towards more sustainable sys-
tems over time, more locally focused and more environmentally
responsible. Its impact on companies and their stakeholder
relations has increased the demands of consumers, who are
increasingly demanding new models of responsible purchasing,
which inevitably has repercussions on the value chains of large
companies.
Therefore, also in accordance with legal requirements, compa-
nies are obliged to establish sustainability criteria in their supply
chain, with the aim of neutralising the corresponding potential
impacts.
In this context, the FCC Group, with the aim of establishing
more lasting and solid relations with its stakeholders, including
its suppliers and outsourcers, works paying special attention to
the impact that its purchasing processes have on the company.
In this sense, the company continues to work on the application
and inclusion of ethical, social and environmental issues in its
purchasing processes and in the services it provides.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Supply chain | Page 2 of 4
_ 649
An integrated framework
to ensure responsible
purchasing
Within the framework of this activity, the FCC Group has differ-
ent tools that guide the company's actions in accordance with
its culture of continuous improvement. In this way, the company
renews the guidelines to be followed, updating them in accord-
ance with the social and environmental situation. In fact, FCC
applies ESG criteria in its purchasing processes, as well as in its
service provision.
General Terms and Conditions
The ethical clauses that have to be accepted by suppliers are defined,
including the scope of the FCC Group's Anti-Corruption Policy.
Purchasing Manual
It promotes stable and long-lasting business relationships between
contracting partners and suppliers based on three principles:
• Transparency.
• Competitiveness.
• Objectivity.
Code of Ethics and Conduct
Risk Map
It sets out the basic principles that all suppliers, partners and collabora-
tors must comply with in terms of:
ESG risk mapping analysis for suppliers and contractors on issues such
as:
• Corruption, bribery and fraud: Ethical behaviour in your business
• Identification of potential sustainability risks.
dealings.
• Inclusion of sustainability criteria in the definition of critical supplier.
• Human and labour rights: Protection under the Universal Declaration
of Human Rights and the International Labour Organisation.
• Monitoring and control of higher risk suppliers.
• Commitment to occupational health and safety: Commitment to oc-
cupational health and safety standards.
• Sustainable environmental management: Respect and prevention of
environmental degradation.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Supply chain | Page 3 of 4
_ 650
Supplier Approval Process
From the Purchasing Department, the FCC Group is working to estab-
lish a single methodology for the approval and evaluation of suppliers.
The approval process consists of a study of possible risks related to the
information provided by the supplier concerned. Suppliers must duly
complete their registration on the Group's platform in order to be con-
sidered "approvable suppliers". Once this registration has been com-
pleted, the supplier must sign a Declaration of Responsibility regarding
anti-corruption, receipt and delivery of gifts, conflicts of interest and
human rights.
The supplier is then required to answer a series of questionnaires, which
include social, environmental and governance criteria, the most impor-
tant of which are as follows:
a) Information concerning the financial situation.
b) Certifications and information relating to Quality and Environmental
Management systems.
c) Information relating to the Occupational Risk Prevention system.
d) Information concerning the company's operations (if it is a supplier
of products), including allocation of responsibilities, training, custom-
er service, process control, approval and evaluation of suppliers and
customer satisfaction.
e) Data on the workforce, including number of workers, percentage of
women, average age and average length of service of the workers.
f) Corporate Social Responsibility, declaration of respect for human
rights, anti-discrimination policy, membership of the Global Com-
pact, certification of ethical/social management system, sanctions
or legal proceedings for human rights violations, communication of
sustainability policy, assessment of employee satisfaction, work-life
balance policies.
g) Compliance, including own Code of Ethics and acceptance of the
FCC Group's Code of Ethics, criminal prevention model, complaints
channel, existence of a Compliance Officer, policies for the preven-
tion of money laundering and the financing of terrorism and sanc-
tions or convictions for corruption, bribery or influence peddling.
h) Data protection, including the existence of a Data Protection Officer,
data breach notification procedure, security breaches, risk analysis
and security measures, sanctions received and open cybersecuri-
ty sanctioning procedures, employee privacy and support to local
communities.
As a result, the procedure for a supplier to be approved is as follows:
Completion of register and
questionnaire in accordance with
environmental and social requirements
Parameter evaluation
Passing the certification process
(A-B-C mark):
• Issuing of Certificate o Approval
• Recommendations for
improvement of its activity
Classification of the supplier with a
high risk (D):
Due Diligence process
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Supply chain | Page 4 of 4
_ 651
Immediate response:
Due Diligence process
For cases in which a supplier is included in the classification of
high-risk suppliers (D), the FCC Group implements a Due Dili-
gence process to detect and prevent possible risks from arising
in the contractual relationship, which allows the Purchasing De-
partment to accept or reject this approval.
Based on the conclusions obtained from the Due Diligences
process, the Purchasing Department decides whether or not
the supplier should be approved and under what conditions,
establishing preventive or corrective measures if necessary.
APPROVAL PROCESS
870(30) Approved suppliers.
100% Suppliers assessed and selected according to
environmental criteria.
100% Suppliers assessed and selected according to social
criteria.
2022 Goals
• To approve 80% of the suppliers allocated by the purchasing depart-
ment in purchasing processes carried out during the year.
• To approve 90% of the suppliers representing the top 30% of the total
ordered by amount of cost in the previous financial year.
(30) In 2021, only 4 high-risk suppliers were identified and underwent Due
Diligence. They were finally approved.
Towards continuous
improvement: evaluation
and monitoring
Along with the objective of guaranteeing continuous improve-
ment in the approval process, the company works on the pe-
riodic assessment of suppliers by sending satisfaction surveys
to the different departments involved in the Group. This speeds
up the decision-making process for future allocations, allows for
improved negotiations, as well as the continuation or cancella-
tion of the approval.
Furthermore, in the approval process, compliance audits of
suppliers categorised as "critical" are required to be carried out.
However, no supplier has been classified in this category so far
and therefore no audit has been carried out.
INTERNATIONAL FACE-TO-FACE, LOCAL FOCUS
As reflected in the data, the FCC Group favours the economic
and social development of the areas in which it carries out its
activities by opting for the contracting of national suppliers. In
this way, through its initiatives, it invests in the local economy
and promotes job creation.
33,237 National and international suppliers
32,806 National suppliers + 95%
Almost 97%
Volume of purchases
for national Suppliers
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Anticipation | Page 1 of 6
_ 652
Anticipation
Opportunities for Progress
| Assuming anticipation as
the possibility of treading
unexplored paths
Risk Management
Model
| Anticipation, assessment and response
The FCC Group operates in a wide variety of countries and in-
dustries, with changing environmental, socioeconomic and le-
gal environments. This variety of situations, to which FCC must
respond, entails a series of risks and opportunities that are
managed with a focus on constant improvement.
FCC has a Risk Management
Model, whose line of action
is threefold: Identify, Assess
and Manage
The FCC Group analyses, assesses, identifies and prioritises
the different risks inherent to the development of its activity,
based on strategic, operational, compliance and financial cri-
teria. In this way, the company proactively addresses those as-
pects relevant to its stakeholders, anticipating those events that
could affect its objectives. Once identified, and depending on
their nature, these risks are dealt with through the mechanisms
integrated in the Management Model.
The sequence of activities that structure the operation of the
Group's Risk Management Model is as follows:
RISK
ASSESSMENT
RISK
MAPS
PREVENTION
AND
CONTROL
REPORTING AND
COMMUNICATION
Risk assessment,
considering the potential
impact on the Group's
objectives and the
likelihood of occurrence.
Definition of Risk Maps,
after having assessed
the possible threats.
Establishment of
prevention and control
activities, with the aim of
mitigating the effect of these
risks.
Establishment of
reporting flows and
communication
mechanisms at different
levels.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Anticipation | Page 2 of 6
_ 653
As an additional measure, Action Plans will be implemented for
those risks that exceed the established levels, always based on
criteria of operational viability and cost-benefit relation. These
plans may also be developed when inefficiencies are detected.
This Risk Management Model is applicable to all businesses
belonging to the Group, as well as to those participating com-
panies with effective control. Finally, the risk tolerance assumed
by the Group will be defined by its Board of Directors, being
dynamic over time and varying according to internal and/or ex-
ternal factors.
In addition, FCC has a Compliance Model and its corresponding
management framework, which is supervised by the Group's
Compliance Committee.
Bodies in charge of the development
and implementation of the Risk
Management Model
FCC's Risk Management Model is developed and implemented
by a set of administrative clerks. Through an efficient allocation
of responsibilities, the Group seeks to promote a consistent and
competent control environment, based on the risk-opportunity
vision.
MAXIMISING THE OPERABILITY
OF AN INTEGRATED AND CROSS-CUTTING
MANAGEMENT MODEL
The Board of Directors
Responsible for approving the Group's Risk Management
Model, identifying those risks considered to be the company's
main risks. As well as implementing and monitoring the internal
control and information systems.
Audit and Control Committees
Responsible for monitoring and analysing the effectiveness of
internal control and risk management and control policy.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Anticipation | Page 3 of 6
_ 654
Meanwhile, the FCC Group's Risk Management Model is based
on the establishment of three levels of risk and internal control,
the first two of which are located in the business units and the
third in the corporate areas, and on the definition of responsi-
bilities:
Potential risk situations
The FCC Group, according to its business practices in this area,
classifies risks as follows:
First level
Third level
• They act as risk generators.
Properly managing, monitoring and reporting the risk generated.
It is composed of the corporate functions that report to Senior Man-
agement and/or the Audit and Control Committee. This third level
includes the following:
Second level
• The tax Division:
It defines tax policies, procedures and criteria that are generally
applicable for de Group.
• The Corporate Compliance Officer:
– Implementing the Criminal Prevention Model.
• Consisting of support, control and supervisions teams.
– Identifying risks in his/her area.
Responsibility: Ensuring effective control and adequate manage-
ment of risk.
• Each business unit is responsible for the implementation of the Risk
Management Model, including those related to financial informa-
tion.
• The Business Compliance Officer:
– He/she assists the Corporate Compliance Officer in the dissem-
ination of the Criminal Prevention Model, in the identification of
risks and in the definition and monitoring of controls.
– He/she proposes action plans in his/her area, in cases where
breaches or inefficiencies in the functioning of controls have
been detected, submitting these proposals to the Corporate
Compliance Officer.
– Defining and monitoring the relevant controls.
– Proposing Action Plans where appropriate.
• Internal Audit and Risk Management
– Both functions report to the Audit and Control Committee.
Risk Management:
– Coordinating the Risk Management Model.
– Defining a basic methodology for the identification, assessment
and reporting of risks, providing support to those responsible for
its implementation.
Internal Audit:
– Assessing the adequacy of policies, methods and procedures
and verifying their effective implementation.
RISKS CLASSIFICATION
Operational
Risks related to the tendering and contracting process, partner
selection, outsourcing and suppliers, labour, collection process-
es and customer satisfaction.
Compliance
Risks relating to compliance with applicable laws (on quality,
environment, information security, etc.), compliance with con-
tracts with third parties and the FCC Group's Code of Ethics
and Conduct.
Strategic
Risks related to the markets, countries and industries in which
FCC operates, as well as the geopolitical situation.
Financial
Risks related to liquidity, cash management, access to financial
markets, exchange rate and interest rate.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Anticipation | Page 4 of 6
_ 655
Significant risk management
The FCC Group responds by means of specific actions to the risks detected.
Strategic risks
Operational risks
• Political and regulatory instability.
• Reduction of investment and demand
• Climate and environmental risks.
• Health and humanitarian crises.
• Regional armed conflicts and terrorism.
• Loss of market share.
forecasts.
• Reputational damage.
Response plans
• Consolidation of diversified international
positioning as a provider of services
classified as essential.
• Integration of businesses in the circular and
low-carbon economy and alignment with
the SDGs.
• Maintenance of market share in mature
• Investment in technology, innovation and
markets.
process control.
• Search for new public-private collaboration
• Development of Sustainability Plans.
formulas for the development of the
integral water cycle, environmental services
and infrastructures.
• Own strategy for adaptation to climate
change in Horizon 2050.
• Unilateral termination or modification of
the contract, contractual disputes and
litigation.
• Labour conflicts.
• Loss of human resources.
• Project rescheduling.
• Risks associated with digitalization.
• Valuation of Real Estate investment.
• Cyber-attacks.
• Price increases and unavailability of raw
materials and subcontracted services.
• Risks to people`s health and safety.
• Environmental damage.
• Risks arising from third party
relationships.
Response plans
• Formal systems for economic and
technical planning and contractual
management with clients and third
parties, applying an active negotiation
policy.
• Application of purchasing procedures,
monitoring of key suppliers and periodic
analysis of deviations.
• Operational unit and information security
management system also in accordance
with international standards.
• Monitoring plans to specific project risks.
• Appropriate insurance coverage.
• Training, coordination and development
of the Group’s Human Resources.
• Inclusion of price review mechanisms in
• Active management of labour relations.
contracts.
• Quality management, environmental
management and occupational risk
prevention systems in accordance with
international standards.
• Regular valuations of real estate assets
by independent experts.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Anticipation | Page 5 of 6
_ 656
Significant risk management (continuation)
Financial risks
Compliance risks
• Credit risk.
• Liquidity risk.
• Limited access to financial markets.
• Discrepancies in regulatory compliance.
• Impairment of goodwill.
• Discrepancies in contractual compliance.
• Exchange rate fluctuations.
• Recoverability of assets for deferred tax.
• Potential non-compliance with the Code
• Interest rate fluctuations.
of Ethics.
Response plans
Response plans
• Continuous monitoring of the credit
quality of customers, lines of credits and
financing.
• Optimisation of exposure to debt linked
to variable rates and analysis of interest
rate hedging instruments.
• Reinforcement of the financial-equity
structure to improve the balance between
shareholder’s equity and borrowed funds.
• Controlling the management of equity
risks and updating and monitoring the
value of goodwill and deferred tax assets.
• Code of Ethics and Conduct widely
• Updating programmes in different
disseminated.
regulatory areas.
• Structured, formalized and periodically
• Regulated systems with detailed
reviewed Compliance Model.
procedures.
• Compliance organizational structure
at different levels and for the different
businesses, coordinated by the
Compliance Committee.
• Training programmes on Ethics in the
Compliance and Values schools
(FCC Campus).
• Monitoring of contractual and regulatory
requirements in project management
plans.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Anticipation | Page 6 of 6
_ 657
As it does every year, throughout the year the FCC Group anal-
yses the risks that have occurred. During 2021, the company
has detected the following risks:
I. As a result of the consequences of the health crisis, as well
as the measures put in place to reduce it, the Group has
seen its activity, its productivity and the achievement of cer-
tain projects collaterally affected and has had to reschedule
them in some cases. However, compared to 2020, the im-
pact has been milder.
II. Certain projects have been rescheduled due to various op-
erational, technical, design, work area availability, contrac-
tual interpretation, lack of decision-making by clients and
other reasons.
III. The increase in the prices of raw materials, electricity, fuel
and outsourced services has affected the outcome of cer-
tain projects from time to time.
IV. There have been contractual disputes that have sometimes
led to civil, labour, criminal, arbitration, administrative, regu-
latory and similar proceedings.
V. Due to the entry into force of the UK's Withdrawal Agree-
ment from the European Union, the Group continues to
monitor and update its adaptation plans for possible regula-
tory changes.
For further information, please consult the FCC Group's Annual
Corporate Governance Report 2021.
APPLYING RISK MANAGEMENT TO EVERY BUSINESS
The Environment Area documents in a Map of Risks and
Opportunities those considered significant for its activity
and assesses its possible occurrence in its periodic Risk
Materialisation Report (IMR). In this way, it responds to po-
tential impacts by adopting specific measures both locally
and globally from its management.
The Water Area has a compliance model and a system
for controlling and assessing its strategic risks. Specifically
for the prevention of operational risks, it carries out self-as-
sessments of the implementation of controls and process-
es in order to detect and work on improvements.
The risk analysis carried out by the FCC Group, at corpo-
rate level, is the first step in analysing the context of the
Construction Area and the expectations of the interested
parties. In addition, this analysis is complemented with the
Technical Actions Forecast Act (APAT), in which the works
are classified according to their risk situation throughout all
their phases: study, contracting and implementation.
In 2021, the Cement Area updated its risk map based on
the Group's Integrated Risk Management Model. Thus, the
following have been identified as the main risks: the Euro-
pean energy crisis as a major impact on the costs of its ac-
tivity, the European regulation of CO2 emissions, the evo-
lution of the COVID-19 health crisis and the economic and
political situation in Tunisia. Consequently, corresponding
action plans have been defined to reduce these risks.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Commitment | Page 1 of 3
_ 658
Commitment
Responsible taxation
| Accountability in a
clear and sustainable
manner
A shared
commitment
Fiscal transparency is essential for the creation of economic and
financial stability at both social and business level. On the other
hand, it is also a requirement for the fulfilment of stakeholders,
as well as for the maintenance of reputation and the raising of
investment capital.
The FCC Group complies with the tax regulations of all the juris-
dictions in which it operates, contributing to the development of
social welfare, the generation of value and economic develop-
ment wherever it operates.
Fiscal Strategy and Policy
The FCC Group's tax strategy is currently defined in its Tax
Code of Conduct, published on its website, and in its Tax Con-
trol Framework Standard, both documents approved by the
FCC Board of Directors.
Furthermore, the FCC Group is a member of the Tax Agency's
Code of Good Tax Practices, which aims to promote a recip-
rocally cooperative relation between the Tax Agency and the
companies that have subscribed to it, a relation based on the
principles of transparency and mutual trust, and which aspires
to reduce legal uncertainty for companies and existing law suits
in tax matters. As a result of the commitment undertaken by
the FCC Group within this framework, the Group submits an
annual Fiscal Transparency Report to the Tax Agency.
Finally, FCC is working on the development of a comprehensive
Tax Policy, which aims to create value for shareholders and oth-
er stakeholders in a sustainable manner. To this end, the trans-
actions it contemplates will always be carried out for business
reasons, in accordance with the applicable regulations, and
considering the possible impact of its decisions on tax matters
in the various regions in which it provides its services.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Commitment | Page 2 of 3
_ 659
Fiscal governance
and control framework
The FCC Board of Directors is the body responsible for review-
ing and approving the Group's Code of Tax Conduct, which is
mandatory and establishes the policies, principles and values
that should guide tax behaviour within the company.
The Tax Code of Conduct also establishes the necessary com-
pliance, where applicable to employees, with the Tax Control
Framework Standard and the procedures relating to the man-
agement of the tax area set out therein.
The Tax Code of Conduct and
the Tax Control Framework
Standard are aligned with
the values that characterise
the FCC Group as reflected
in the Code of Ethics and
Conduct, the Corporate Social
Responsibility Policy and
the Mission and Vision of the
FCC Group
RESPONSIBILITIES OF THE PERSONS OF THE FCC GROUP IN TAX MATTERS
TAX REGULATIONS
BY JURISDICTION
FISCAL AREA CONTROL
FRAMEWORK
SUPERVISION
TAX AUTHORITIES
Professionals should
observe the tax rules
applicable in each
jurisdiction, based on
sufficiently reasoned and
reasonable interpretations
and sufficiently verified facts.
Apart from the other
obligations, all professionals
must comply with and
respect the Tax Control
Framework Standard as well
as the specific procedures
for communication, action
and review relating to the
fiscal area.
The professional shall ensure
that the senior management
of the FCC Group oversees
any decisions taken in
tax matters and that such
decisions are properly
supported.
The Tax Code of Conduct
emphasises that the FCC
Group's professionals must
create and strengthen
greater collaboration
and cooperation with the
state tax authorities of
the countries in which it
operates.
The Tax Control Framework Standard conditions tax decisions,
which are made on the basis of the position of the various ad-
ministrative bodies, as well as the corresponding courts of law
in the region in which the activity is carried out. Tax planning
strategies or tax positions in which the economic benefit is
solely and exclusively of a tax nature, without the objectives
being aligned with trade or business purposes, are not accept-
able. Arrangements that could be considered artificial from a
tax point of view are also not permitted.
Tax decisions, which are commercially justifiable and publicly
disclosed, are taken on the basis of the risk levels defined in the
Group's Tax Control Framework Standard.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Governance | Commitment | Page 3 of 3
_ 660
Identification and
management of fiscal risk
The Audit and Control Committee of the FCC Group reviews
half-yearly the law suits and tax risks, which are identified and
controlled on a recurring basis through internal management
tools.
Depending on the level of risk, decisions will be taken by the Tax
Department of the Business Area or, where appropriate, by the
head of the Corporate Tax Area. Also, certain risks will require
the approval of the Board of Directors of the FCC Group.
In this regard, the FCC Group may not take tax decisions clas-
sified as a serious risk in accordance with the parameters set
out in the Tax Control Framework Standard, even if they are
supported by Law.
The risk analysis is carried out on the basis of the following cat-
egories:
RISK ANALYSIS CATEGORIES
IMPLEMENTATION RISKS
REPUTACIONAL RISKS
COMPLIANCE RISKS
EXTERNAL RISKS
In their classification, both their potential quantitative and quali-
tative impact is considered.
Regarding the mechanisms for reporting concerns related to
possible unethical or illegal conduct that threatens the integrity
of the FCC Group, professionals may express such conduct
through the Group's Ethics Channel.
Furthermore, these professionals must opt for an active and
participatory role in the tax forums of those business associa-
tions and international organisations of which the FCC Group is
a member, with a view to building a fairer and more harmonised
tax system for both the Group's interests and those of the com-
pany as a whole.
Stakeholder engagement
As established in the Tax Code of Conduct of the FCC Group,
all persons with responsibilities within the Tax Area of the FCC
Group are obliged to carry out their work in a clear and ethical
manner with the tax authorities of the country in which they
carry out their activity.
FCC Group's
contribution
| Results reflecting transparency
Annex IV provides details of the after-tax profits, income taxes
and government grants received by country, by FCC Group,
during the 2021 financial year.
The information contained in these tables has been audited by
a verifier which is independent of the FCC Group, always com-
plying with the necessary requirements of objectivity and inde-
pendence, and providing the required information.
In this way, the Group applies the principle of transparency to
the tax information published, having been able to verify the
Group's compliance with its tax obligations and the applicable
tax regulations.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annexes
_ 661
ANNEXES
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex I: About this report | Page 1 of 3
_ 662
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 2021.
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 Essential 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 2021 business year, be-
tween 1 January and 31 December 2021.
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
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.
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
2021, described in point 3.3 of this report and taking the com-
pany's main stakeholders into account. In the event that any in-
dicator is not material for the Group or for any of its businesses,
this will be expressly stated in the text. The scope of the materi-
al topics and their coverage was developed sufficiently to reflect
significant economic, environmental and social impacts and to
enable stakeholders to assess FCC's performance in 2021.
Scope
El alcance de la información proporcionada en este informe se
corresponde con el perímetro de integración empleado para
la consolidación financiera de Fomento de Construcciones y
Contratas, S.A. y sociedades dependientes, considerándose
los datos del 100% de las empresas participadas sobre las que
se tiene el control de la gestión, independientemente de su por-
centaje de participación.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex I: About this report | Page 2 of 3
_ 663
The list of FCC Group companies as at 31 December 2021 is
shown in Annex I of the consolidated annual accounts, which
can be consulted, as of the date of preparation of this docu-
ment, on the website of the Spanish National Securities Market
Commission (CNMV): CNMV - Annual financial reports.
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 2021 business year has not
been included:
Business
Excluded from the Scope
FCC Servicios
Medioambiente
Aparcamientos Concertados, S.A., Azincourt Investment, S.L, Castellana de Servicios, S.A., Corporación Inmobiliar-
ia Ibérica, S.A., Ecodeal-Gestao Integral de Residuos Industriais, S.A., Europea de Tratamiento de Residuos Industri-
ales, S.A., FCC Equal CEE Andalucía, S.L, FCC CEE C. Valenciana, S.L., FCC Equal CEE Murcia, S.L., Gandia Serveis
Urbans, S.A., Gestió i Recuperació de Terrenys, S.A.U., Goldrib, Soluções De Valorização De Resíduos, Lda., Internation-
al Services Inc., S.A.U., Jaime Franquesa, S.A., Recuperació de Pedreres, S.L., Serveis Municipals de Neteja de Girona,
S.A., Servicio de Recogida y Gestión de Residuos Sólidos Urbanos del Consorcio Vega Sierra Elvira, S.A., Sistemas y
Vehículos de Alta Tecnología, S.A., Societat Municipal Medioambiental d’Igualada, S.L., Tratamientos y Recuperaciones
Industriales, S.A., Valoración y Tratamiento de Residuos Urbanos, S.A., Valorización y Tratamiento de Residuos, S.A.,
FCC Construction Northern Ireland Limited, FCC Industrial UK Limited, FCC Real Estate (UK) Limited, ASMJ s.r.o, FCC
BEC s.r.o, FCC České Budějovice s.r.o., FCC Dačice s.r.o., FCC HP s.r.o., FCC Kikinda d.o.o., FCC Liberec s.r.o.,,FCC
Litovel s.r.o., FCC Neratovice s.r.o. , FCC Prostějov s.r.o., FCC Regios a.s., FCC Uhy s.r.o., FCC Únanov s.r.o., FCC Vr-
bak d.o.o., FCC Žabčice s.r.o., FCC Zabovresky s.r.o., FCC Znojmo s.r.o., Obsed a.s., Quail spol. s.r.o., Realia Contesti,
S.R.L., Severomoravské Vodovody a Kanalizace Ostrava A.S., Vodotech, spol. s.r.o., Realia Contesti, S.R.L., Premier
Waste Services, LLC., Ecogenesis Societe Anonime Rendering of Cleansing and Waste Management Services, Egypt
Environmental Services, S.A.E.
Aqualia
Aguas de Alcázar Empresa Mixta, Aqualia Mace Catar, C.E.G. S.P.A. Simplifiée.
FCC Construcción
FCC Constructii Romania, S.A., ACE Scutmadeira Sistemas de Gestao e Controlo de Tràfego, Colombiana de Infrae-
structuras, 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., De-
sarrollo y Construcción DEYCO CRCA, S.A., Edificadora MSG,S.A (Panamá), 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 Construcción Costa Rica, S.A., FCC Construction International B.V., FCC Construction Ireland DAC,
FCC Construction Northern Ireland Limited, FCC Construçoes do Brasil Ltda., FCC Edificadora CR, S.A., FCC Electrome-
chanical Llc., FCC Elliott Construction Limited, FCC Industrial 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., Participa-
ciones Teide, S.A., Servicios Dos Reis, S.A. de C.V.
Cementos Portland
Valderrivas
Áridos de Navarra, S.A., Canteras de Alaiz, S.A., Dragon Alfa Cement Limited, Dragon Portland Cement Limited, Prebesec
Mallorca, S.A, Select Beton, S.A., Tratamiento Escombros Almoguera, S.L., Uniland Acquisition Corporation, Uniland In-
ternational B.V., Uniland Trading B.V.
Other activities
Asesoría Financiera y de Gestión,S.A., Autovía Coquense, S.A., Cemark – Mobiliario urbano e Publicidade, S.A., Con-
cesionaria Atención Primaria, S.A., Concesionaria Túnel de Coatzacoalcos, S.A. de C.V., Costa Verde Hábitat, S.L., F-C
y C, S.L.U, FCC Concesiones Al Ansar, S.A.U., FCC Concesiones de Infraestructuras, S.L., FCC Midco, S.A., FCC Real
Estate (UK) Limited, FCC Topco, S.A.R.L., FCC Versia, S.A., Fedemes, S.L., Jezzine Uno S.L.P, PPP Infraestructture
Investments B.V., Vela Borovica Koncern d.o.o., Vialia Sociedad Gestora de Concesiones e Infraestructuras, S.L., Grupo
Realia, Boane 2003, S.A.U., Guillena Golf, S.L.U, Hermanos Revilla, S.A., Inversiones Inmobiliarias Rústicas y Urbanas
2000, S.L., Planigesa, S.A., Realia Business,S.A., Realia Contesti, S.R.L., Realia Patrimonio, S.L.U., Servicios Índice,
S.A., Valaise, S.L.U.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex I: About this report | Page 3 of 3
_ 664
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.
Furthermore, in addition to what is expressly indicated through-
out the document in other sections, those excluded from the
scope of specific indicators are detailed below:
Indicator
Excluded from the Scope
Resources dedicated to the prevention of environmental risks.
Aqualia.
Water discharges.
Aqualia.(31)
Waste managed by the Environment Area.
Subsidiaries of the Environmental Services business in Austria and Po-
land.
Water abstraction.
Complaints managed.
Aqualia.(32)
Aqualia.
The environmental section includes data on energy consump-
tion, water consumption, waste generated and GHG emis-
sions for the Group's corporate buildings (Las Tablas, Federico
Salmón and Balmes headquarters). These indicators, with a
very low weighting with regard to the FCC Group, are the most
significant in the environmental management of these 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 17.5%, and the sub-
sidiaries in Austria and Poland of the Environmental business,
3.4%.
"PLANET. Environmental care and management", "SOCIETY.
Promoting social and environmental progress" and "CUSTOM-
ERS. Excellence in service" do not include information on the
activity of the Environmental Services area in the United States,
which accounts for 1.7% of the Group's turnover.
For fuel consumption data, the conversion factors to GJ ac-
cording to the "Greenhouse gas reporting: conversion factors
2021", published by DEFRA, have been used.
(31) 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
section Water as a resource.
(32) Aqualia's self-consumption data, which is a residual amount compared to the amounts of water managed, is not available and is shown in section Water as a
resource.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex II: Tables relating to social and personnel affairs | Page 1 of 8
_ 665
ANNEX II
Tables relating to social and personnel affairs
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%
2021
77.1%
22.9%
100%
< 35 years
35-54 years
> 54 years
Subtotal
Total
2019
2020
2021
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
Men
7,425
24,946
13,563
45,934
Women
2,125
7,623
3,865
13,613
59,314
59,747
59,547
DEVELOPMENTS IN THE DISTRIBUTION OF THE WORKFORCE
BY BUSINESS AREA (31/12) (PERCENTAGE)
DEVELOPMENTS IN THE DISTRIBUTION OF THE WORKFORCE BY FUNCTIONAL LEVEL AND GENDER (31/12)
Environmental Services
Water
Construction
Cement
Real Estate
Corporate
Total
2019
2020
67%
16%
14%
2%
-
1%
67%
18%
12%
2%
-
1%
2021
69.7%
16.5%
11.3%
1.8%
0.2%
0.5%
100%
100%
100%
Management and Direction
Supervisors
Technicians
Administrative Clerks
Sundry trades
Subtotal
Total
2019
2020
2021
Men
475
3,233
3,545
1,074
37,820
46,147
Women
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
Men
444
3,205
4,092
1,142
37,051
45,934
Women
84
634
1,847
2,039
9,009
13,613
59,314
59,747
59,547
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex II: Tables relating to social and personnel affairs | Page 2 of 8
_ 666
DEVELOPMENTS IN THE DISTRIBUTION OF THE WORKFORCE BY COUNTRY GENDER (31/12)
Countries
Spain
Czech Republic
United Kingdom
Saudi Arabia
Colombia
Austria
Romania
Poland
USA
Egypt
Portugal
Slovakia
U.A.E.
Italy
Tunisia
Panama
Hungary
Mexico
Serbia
France
Chile
2020
2021
2020
2021
Men
Women
Total
Men
Women
Total
Countries
Men
Women
Total
Men
Women
Total
33,956
11,115
45,071
34,514
11,180
45,694
Algeria
2,196
2,152
1,684
666
532
554
423
501
1,340
443
323
307
217
215
266
132
63
94
60
36
648
350
134
147
165
134
108
76
3
95
91
5
35
17
42
51
17
36
18
16
2,844
2,502
1,818
813
697
688
531
577
1,343
538
414
312
252
232
308
183
80
130
78
52
2,466
2,247
1,047
782
535
536
479
494
546
396
317
312
212
209
177
131
98
79
70
64
729
385
179
154
157
125
138
87
3
101
96
8
37
13
24
50
23
36
27
22
3,195
2,632
1,226
936
692
661
617
581
549
497
413
320
249
222
201
181
121
115
97
86
The Netherlands
Peru
Nicaragua
Belgium
Qatar
Ireland
Norway
Australia
Canada
Costa Rica
Dominican Republic
Kosovo
Oman
Bulgaria
El Salvador
Guatemala
Montenegro
Ecuador
Brazil
Total
54
33
26
27
18
14
24
8
3
8
3
9
-
1
5
1
1
1
4
0
7
4
9
3
1
0
7
3
1
1
2
1
-
1
2
0
0
0
1
1
61
37
35
30
19
14
31
11
4
9
5
10
0
2
7
1
1
1
5
1
54
44
26
24
17
13
9
6
8
8
3
4
2
2
0
1
1
1
-
-
7
6
8
4
2
0
2
4
1
1
2
1
0
0
1
0
0
0
-
-
61
50
34
28
19
13
11
10
9
9
5
5
2
2
1
1
1
1
0
0
46,400
13,345
59,747
45,934
13,613
59,547
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex II: Tables relating to social and personnel affairs | Page 3 of 8
_ 667
DEVELOPMENTS IN THE NUMBER OF NEW CONTRACTS
BY GENDER
DEVELOPMENTS IN THE NUMBER OF NEW CONTRACTS BY AGE AND GENDER
Men
Women
Total
2020
7,703
2,540
10,243
2021
9,546
3,288
12,834
< 35 years
35-54 years
> 54 years
Total
Men
2,766
3,847
1,090
7,703
2020
Women
894
1,365
281
2,540
Total
3,660
5,212
1,371
10,243
Men
3,956
4,197
1,393
9,546
2021
Women
1,325
1,562
401
3,288
Total
5,281
5,759
1,794
12,834
DEVELOPMENTS IN THE NUMBER OF WORKERS BY TYPE OF CONTRACT AND GENDER (31/12)
DEVELOPMENTS IN THE NUMBER OF WORKERS BY TYPE OF WORKING DAY AND GENDER (31/12)
2019
2020
2021
2019
2020
2021
Men
Women
Men
Women
Men
Women
Men
Women
Men
Women
Men
Women
Open ended
Temporary
Subtotal
Total
32,214
13,933
46,147
10,165
3,002
13,167
32,975
13,426
46,401
10,053
3,293
13,346
34,132
11,802
45,934
10,224
3,389
13,613
59,314
59,747
59,547
Full-time
Part-time
Subtotal
Total
41,908
4,239
9,420
3,747
42,271
4,130
9,479
3,867
41,406
4,528
9,821
3,792
46,147
13,167
46,401
13,346
45,934
13,613
59,314
59,747
59,547
ANNUAL AVERAGE BY TYPE OF CONTRACT AND GENDER
ANNUAL AVERAGE BY TYPE OF CONTRACT AND AGE RANGE
2019
2020
2021
2019
2020
2021
Men
Women
Subtotal
Total
Open-
ended
Temporary
31,599
14,719
9,615
3,144
41,214
17,863
Open-
ended
32,952
10,010
42,962
Temporary
14,053
3,112
17,165
Open-
ended
33,761
10,027
43,788
Temporary
12,614
3,340
15,954
59,078
60,127
59,742
< 35 years
35-54 years
> 54 years
Subtotal
Total
Open-
ended
4,603
26,236
10,375
41,214
Temporary
5,895
8,967
3,001
17,864
Open-
ended
4,593
25,220
13,149
42,962
Temporary
5,730
8,302
3,133
17,165
Open-
ended
4,607
25,218
13,963
43,788
Temporary
5,176
7,707
3,071
15,954
59,078
60,127
59,742
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex II: Tables relating to social and personnel affairs | Page 4 of 8
_ 668
ANNUAL AVERAGE BY TYPE OF CONTRACT AND FUNCTIONAL LEVEL
ANNUAL AVERAGE BY TYPE OF WORKING HOURS AND GENDER
2019
2020
2021
2019
2020
2021
Management and
Direction
Supervisors
Technicians
Administrative Clerks
Sundry trades
Subtotal
Total
Open-
ended
Temporary
Open-
ended
Temporary
Open-
ended
Temporary
565
3,339
3,858
2,081
31,372
41,215
4
608
1,013
758
15,480
17,863
544
3,238
4,403
2,272
32,505
42,962
5
538
994
598
15,030
17,165
511
3,390
4,661
2,455
32,771
43,788
1
392
949
545
14,067
15,954
59,078
60,127
59,742
Men
Women
Subtotal
Total
Full-time
Part-time
Full-time
Part-time
Full-time
Part-time
41,947
9,296
51,243
4,372
3,463
7,835
42,788
9,508
52,296
4,217
3,614
7,831
41,936
9,620
51,556
4,439
3,747
8,186
59,078
60,127
59,742
ANNUAL AVERAGE BY TYPE OF WORKING HOURS AND AGE RANGE
PROMEDIO ANUAL POR TIPO DE JORNADA Y NIVEL FUNCIONAL
2019
2020
2021
2019
2020
2021
Full-time Part-time
Full-time
Part-time
Full-time Part-time
Full-time
Part-time
Full-time
Part-time
Full-time
Part-time
< 35 years
35-54 years
> 54 years
Subtotal
Total
9,128
31,406
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
8,316
29,239
14,001
51,556
1,467
3,686
3,033
8,186
59,078
60,127
59,742
Management and
Direction
Supervisors
Technicians
Administrative Clerks
Sundry trades
Subtotal
Total
565
3,780
4,607
2,666
39,625
51,243
4
167
264
173
7,227
7,835
542
3,616
5,143
2,695
40,300
52,296
8
159
255
175
7,234
7,831
506
3,622
5,299
2,749
39,380
51,556
6
160
311
251
7,458
8,186
59,078
60,127
59,742
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex II: Tables relating to social and personnel affairs | Page 5 of 8
_ 669
DEVELOPMENTS IN DISMISSALS BY GENDER
DEVELOPMENTS IN DISMISSALS BY AGE RANGE
DEVELOPMENTS IN DISMISSALS BY FUNCTIONAL LEVEL
2019
2020
2021
2019
2020
2021
2019
2020
2021
Men
Women
Total
662
153
815
532
156
688
633
149
782
< 35 years
35-54 years
> 54 years
Total
260
427
128
815
143
368
177
688
206
377
199
782
Management and Direction
Supervisors
Technicians
Administrative Clerks
Sundry trades
Total
13
37
107
46
612
815
24
63
114
37
450
688
1
51
68
38
624
782
PARENTAL LEAVE IN 2021
AVERAGE SALARIES BY FUNCTIONAL LEVEL, GENDER AND AGE RANGE(*) (EUROS)
Number of workers who enjoyed the
parental leave
Number of workers entitled to parental
leave
Number of workers who returned to work
after the end of parental leave(*)
Men
Women
849
849
551
249
249
156
(*) This figure does not include the number of workers who are currently on parental
leave for 2021 and will return to work in 2022.
Under 35 years old
From 35 to 54 years old
Men
Management and Direction
Supervisors
Technicians
Administrative Clerks
Sundry trades
Women
Management and Direction(**)
Supervisors
Technicians
Administrative Clerks
Sundry trades
64,349.34
33,877.29
22,534.88
16,669.38
18,202.58
–
24,798.00
19,913.13
16,241.63
17,301.58
114,087.42
47,278.12
35,145.17
27,766.52
24,192.21
93,817.78
39,012.04
28,956.06
23,943.37
19,241.44
Over 54
142,532.93
51,254.61
41,515.76
36,641.13
25,807.96
97,569.25
43,437.94
31,784.99
26,552.09
18,824.60
DEVELOPMENTS IN THE WAGE GAP IN SPAIN
(*) 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 remuneration management undertaken in each of the business units and countries in
which FCC operates.
Gross wage gap
17.42%
18.62%
19.81%
2019
2020
2021
(**) Data is omitted in order to protect privacy.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex II: Tables relating to social and personnel affairs | Page 6 of 8
_ 670
PERCENTAGE OF WORKERS COVERED BY COLLECTIVE AGREEMENT BY COUNTRY(*)
Countries
Saudi Arabia
Algeria
Australia
Austria
Belgium
Brazil
Bulgaria
Canada
Chile
Colombia
Costa Rica
Ecuador
USA
Egypt
El Salvador
U.A.E.
Slovakia
Spain
France
Guatemala
Hungary
2019
0%
–
–
6%
–
–
0%
–
0%
0%
–
–
0%
–
–
0%
36.83%
100%
100%
–
0%
2020
0%
93.44%
0%
0.10%
100%
100%
0%
0%
0%
0%
0%
0%
2021
Countries
0%
Ireland
100%
Italy
0%
0.10%
100%
–
0%
0%
Kosovo
Mexico
Montenegro
Nicaragua
Norway
Oman
11.63%
The Netherlands
4.12%
Panama
0%
–
Peru
Poland
14.37%
3.27%
Portugal
0%
0%
0%
33.73%
100%
100%
0%
0%
0%
0%
Qatar
United Kingdom
100%
Czech Republic
33.73%
Dominican Republic
100%
100%
0%
0%
Romania
Serbia
Tunisia
2019
–
100%
–
0%
–
–
–
0%
–
30.45%
–
25%
48.26%
–
7.13%
36.58%
–
22.85%
10.56%
100%
2020
0%
100%
0%
0%
0%
0%
0%
0%
100%
65.55%
0%
20%
13.85%
16.07%
7.10%
36.38%
100%
20.52%
13.86%
100%
2021
0%
100%
0%
0%
0%
0%
100%
0%
100%
29%
0%
15.32%
31.99%
0%
11.23%
33.66%
100%
24.66%
12%
100%
(*) In 2021 all countries and all areas where the FCC Group operates were included.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex II: Tables relating to social and personnel affairs | Page 7 of 8
_ 671
DEVELOPMENTS IN TRAINING HOURS BY FUNCTIONAL LEVEL AND BUSINESS AREA
Management
and Direction
Supervisors
Technicians
Administrative
Clerks
Sundry trades
Total
Management
and Direction
Supervisors
Technicians
Administrative
Clerks
Sundry trades
Total
2020
2021
Environmental
Services
Water
Construction
Cement
Real Estate
Corporate
Subtotal National
Environmental
Services
Water
Construction
Cement
Subtotal
International
5,686
4,890
1,944
339
2,077
14,936
946
2,246
32,828
17,035
11,588
833
1,284
63,568
11,216
2,949
524
33,064
9,750
36,004
1,943
6,439
87,200
12,399
16,734
1,521
646
18,364
132,096
222,038
6,386
4,016
674
9,890
26,522
2,264
47,951
80,074
6,054
0
2,516
53
12,369
31,955
170,826
368,485
5,560
3,842
1,478
309
321
2,515
14,025
44,446
23,997
9,285
2,045
50
914
32,403
17,703
28,403
2,593
446
2,164
16,914
181,513
280,836
5,881
3,381
358
14
428
22,361
28,500
3,388
0
55
73,784
71,047
8,693
830
6,076
80,736
83,712
26,975
235,818
441,266
7,788
3,237
741
212
106,222
1,639
937
36
138,571
23,856
6,147
1,418
1,329
20,851
605
309
96
2,741
1,765
352
14,915
16,612
2,947
570
12,449
2,110
650
51
32,815
9,444
1,710
384
82,359
31,512
7,382
1,453
3,192
14,689
31,301
11,978
108,833
169,992
2,339
25,709
35,044
15,259
44,353
122,705
Total
18,128
78,257
118,501
43,933
279,659
538,477
16,364
106,453
118,756
42,235
280,171
563,971
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex II: Tables relating to social and personnel affairs | Page 8 of 8
_ 672
Safety, health and welfare:
DEVELOPMENTS IN ACCIDENT RATES
DEVELOPMENTS IN ACCIDENT RATES BY GEOGRAPHICAL AREA
Frequency
Severity
2019
23.98
0.91
2020
17.07
0.67
2021
18.36
0.71
Area
Spain
Global
2019
2020
2021
Accident
frequency
32.06
23.98
Severity
1.27
0.91
Accident
frequency
22.93
17.07
Severity
0.97
0.67
Accident
frequency
24.61
18.36
Severity
1.00
0.71
ACCIDENT RATE BY GENDER
DEVELOPMENTS IN ABSENTEEISM(33) RATES DUE TO OCCUPATIONAL ACCIDENTS AND COMMON ILLNESSES
Women
Men
Accident
frequency
16.46
18.75
Severity
Incidence
0.62
0.73
2.35
3.23
Work Accident
Common Illness
2019
0.71
5.63
2020
0.44
4.05
2021
0.37
4.63
DEVELOPMENTS IN FATAL OCCUPATIONAL ACCIDENTS
DEVELOPMENTS IN THE NUMBER OF OCCUPATIONAL ILLNESSES BY GENDER
2019
2020
2021
2019
2020
2021
FCC
Subcontractor
0
2
3
1
0
4
Women
Men
9
3
5
6
2
2
(33) El Grupo FCC ha registrado un total de 6.072.839 horas de absentismo durante el ejercicio 2021.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex III: Tables relating to environmental issues | Page 1 of 3
_ 673
ANNEX III
Tables relating to environmental issues
WATER ABSTRACTION (m3)
DIRECT AND INDIRECT GHG EMISSIONS (tCO2e)
Municipal water supply or by other water companies
Surface waters
Groundwater
Rainwater
Water recycled or re-used
Total
2020
9,521,108
850,832
1,952,512
218,934
1,996,106
9,939,907
927,653
1,139,239
456,104
2,042,356
14,568,653
14,492,901
NOTE: Information on Aqualia's self-consumption is not included as this information is not available as it is of a residual nature
in comparison with the total water managed by this business.
2021
Direct GHG emissions (Scope 1) (Alcance 1)
2020
2021
Emissions of tCO2e from fossil fuel combustion in fixed sources under
operational control
Emissions of tCO2e from fossil fuel combustion in fixed mobile
sources under operational control
Emissions of tCO2e generated in water management complexes with
operational control
Direct emissions from energy recovery centres at plants with
operational control
Emissions of tCO2e related to biological treatment at plants with
operational control
Direct emissions from the calcination of carbonate raw materials in
clinker kilns
Emissions of tCO2e related to landfill disposal with operational control
Direct emissions due to refrigerant leakage
Other direct emissions
Total
Indirect GHG emissions (Alcance 2)
1,484,852
282,799
80,224
634,735
77,148
2,607,731
1,457,336
15
–
6,624,839
Emissions of tCO2e related to electricity or steam purchased from
third parties - geographical method
Total GHG emissions (Scope 1, 2)
604,073
549,838
6,963,464
7,174,677
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex III: Tables relating to environmental issues | Page 2 of 3
_ 674
DIRECT GHG EMISSIONS (BIOGENIC ORIGIN) (tCO2e)
NONCOMPLIANCE WITH ENVIRONMENTAL LAWS AND
REGULATIONS
SPILLS
2020
2021
2020
2021
Emissions from the consumption of
biogenic fuels in fixed sources and
mobile sources under operational
control
2,006,143
2,090,644
Total monetary value of fines (€)
304,256
43,861
Total no. of significant spills (No.)
Total number of non-monetary
sanctions (No.)
Cases subject to mechanisms for the
resolution of law suits (No.)
23
53
5
14
Total volume of significant spills (m3)
2020
2021
18
23
33
54
TOTAL WATER DISCHARGES FOR FRESH WATER
OR OTHER WATERS (m3)
WATER DISCHARGES IN AREAS UNDER WATER STRESS (m3)
WATER ABSTRACTION FROM AREAS WITH WATER
STRESS (m3)
2020
2021
2020
2021
2020
2021
Fresh water (total dissolved solids ≤
1000 mg/l)
Other waters (total dissolved solids>
1000 mg/l)
1,508,526
2,452,153
117,439
621,596
Fresh water (total dissolved solids ≤
1000 mg/l)
Other waters (total dissolved solids>
1000 mg/l)
592,343
541,175
100
10,081
Municipal water supply or by other
water companies
Surface waters (wetlands, rivers,
lakes, and other water streams)
Not typified
Total
1,948,056
1,087,988
Total
3,574,020
4,161,737
592,443
551,256
Sea waters
The increase in discharges with a higher concentration of
dissolved solids is the result of the improvements implemented by
FCC Environment for recording this data through the VISION tool.
Brackish waters
Groundwater
Rainwater captured and stored by
the organisation
5,681,748
5,609,234
470,964
93,176
–
–
–
–
620,075
546,313
3,515
242,319
Water recycled or re-used
1,895,215
1,931,123
Other waters resulting from
abstractions, processing or uses of
raw materials
Total
–
–
8,671,517
8,422,165
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex III: Tables relating to environmental issues | Page 3 of 3
_ 675
WATER ABSTRACTION BASED ON TYPE OF WATER (m3)
CONSUMPTION OF FOSSIL FUELS IN FIXED SOURCES
AND MOBILE SOURCES UNDER OPERATIONAL CONTROL (GJ)
CONSUMPTION OF RENEWABLE FUELS IN FIXED SOURCES
AND MOBILE SOURCES UNDER OPERATIONAL CONTROL (GJ)
Fresh water (total dissolved solids ≤
1000 mg/l)
Other waters (total dissolved solids>
1000 mg/l)
Total
2020
2021
14,579,493
14,505,258
–
–
14,579,493
14,505,258
MATERIALES UTILIZADOS (T)
Materiales renovables
Materias primas (metales,
minerales, madera, etc.)
Materiales de proceso,
lubricantes y reactivos
Productos semielaborados
Material de envase y embalaje
(papel, cartón, plásticos)
2020
2021
257.475
755.363
191
0,00
186
0,00
4.327
7.581
Total materiales renovables
261.993
763.131
Materiales no renovables
Materias primas (metales,
minerales, madera, etc.)
Materiales de proceso,
lubricantes y reactivos
41.138.971
69.874.309
96.658
113.116
Productos semielaborados
3.726.276
2.015.821
Material de envase y embalaje
(papel, cartón, plásticos)
4.343
2.019
Total materiales no renovables
44.966.248
72.005.266
2020
97,236
2021
64,077
Biodiesel
3,766,750
3,801,507
Bioethanol
2020
2021
–
–
152,128
2,842
Petrol
Diesel/Diesel oil
Boiler oil (Diesel C)
Fuel Oil
LPG (Liquefied Petroleum Gas)
Petroleum naphtha
Natural gas
Compressed natural gas (CNG)
Liquefied natural gas (LNG)
Petroleum coke
Kerosene
Coal (domestic)
Coal (industrial)
Propane
18,320
8,954
2,094
–
118,346
473,421
–
–
662
1,082
–
3,439
29,088
12,233
2,169
–
126,210
498,937
327
–
623
–
–
3,363
Waste (fossil fraction)
7,207,458
7,602,329
Butane
15
7
Conventional fossil fuels in clinker
kilns
12,214,421
12,724,095
Alternative fossil fuels in clinker kilns
1,509,222
1,945,334
Total
25,421,420
26,810,299
Biogas burned in boilers without
electricity generation
Biogas burned in engines or turbines
with electricity generation
238,919
202,287
1,397,791
1,297,256
Waste (biomass fraction)
8,487,487
9,278,924
Biomethane
Landfill gas
Biomass
Total
549
4,552
688
4,350
1,364,247
1,683,550
11,493,546
12,622,025
CONSUMPTION OF SELF-PRODUCED RENEWABLE ENERGY (GJ)
From wind turbines
From photovoltaic panels
Total
2020
255
753
1,009
2021
377
4.205
4,582
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex IV: Tax information | Page 1 of 2
_ 676
ANNEX IV
Tax information
PROFITS BY COUNTRY AND TAX PAID ON PROFITS (thousands of €))
Pre-Tax Profit 2021
Tax paid on 2021 profit
Pre-Tax Profit 2021
Tax paid on 2021 profit
Germany(*)
Saudi Arabia
Algeria
Argentina(*)
Austria
Australia(*)
Belgium(*)
Bosnia and Herzegovina(*)
Brazil(*)
Bulgaria(*)
Canada(*)
Chile(*)
Colombia
Costa Rica(*)
Croatia(*)
Ecuador
Egypt
El Salvador
25
21,951
22,183
-1
19,026
-1,358
6,910
0
-897
-141
-582
-468
716
-340
147
7,492
-48
3,773
4,252
285
United Arab Emirates(*)
Slovakia
Spain
United States(*)
Finland(*)
France
Greece(*)
Guatemala
Haiti(*)
Honduras(*)
Hungary
Ireland(*)
1,622
Italy
Latvia(*)
Luxembourg(*)
31
Morocco(*)
1,264
Mexico
87
Montenegro(*)
2,307
8,127
609,929
-8,414
-13
2,608
4,665
101
-1,108
9
3,670
-6,819
3,883
3
5,949
298
8,688
-277
1,240
105,504
93
955
2
92
689
2,468
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex IV: Tax information | Page 2 of 2
_ 677
BENEFICIOS OBTENIDOS PAÍS POR PAÍS Y LOS IMPUESTOS SOBRE BENEFICIOS PAGADOS (miles de €)
Nicaragua
Norway(*)
Oman(*)
The Netherlands(*)
Panama
Peru
Poland
Portugal
Qatar
Pre-Tax Profit 2021
Tax paid on 2021 profit
Pre-Tax Profit 2021
Tax paid on 2021 profit
761
-475
398
3.667
-762
1.639
3.082
9.198
-86
37
United Kingdom
Czech Republic
Dominican Republic(*)
21
199
591
1.475
518
Romania
Serbia(*)
Sweden(*)
Tunisia
Uruguay(*)
Total
15.469
40.346
391
8.389
-492
-8,00
17.734
-12
807.460
4.649
6.366
609
3.332
140.151
(*) 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.
PUBLIC GRANTS RECEIVED (thousands of €)
Construction
Environment
Aqualia
Cement
Concessions
Real Estate
Central Services
TOTAL
2019
–
3,726
10,725
–
4,610
–
–
2020
–
3,997
8,418
–
7,154
–
–
2021
–
6,399
11,358
1,037
3,456
–
–
19,061
19,569
22,250
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Anexo V. Listado de principales asociaciones | Página 1 de 2
_ 678
ANNEX V
List of main associations
- Spanish Quality Association (AEC in Spanish).
- The Association for Renewable Energy and Clean Technology.
- Water supply and drainage in Andalusia (ASA).
- Association of Public Cleaning Companies (ASELIP).
- Recoup.
- Centre for New Water Technologies (CENTA Foundation).
- Spanish Association of Parks and Gardens Companies (ASEJA).
- Spanish Association for Water Supply and Drainage (AEAS).
- Business Confederation of the province of Almeria.
- Spanish Association of Cleaning Companies (ASPEL).
- Spanish Association for Desalination and Re-use (AEDyR).
- Association of Integral Maintenance and Energy Services
- Spanish Association of Water Services to Populations (AGA).
- IMIDEA-AGUA.
- Spanish Chamber of Commerce.
- National Water Council (CNA).
- Association of installers of water, gas, heating, air conditioning,
electricity, telecommunications, liquid petroleum products, fire
protection, solar energy, maintenance and related services in
Almería and its province. (ASINAL).
- Chamber of Commerce of Almeria.
- Business and Traders' Association of Benalmádena (ACEB).
Companies (AMI).
- Association of Municipal Container Recovery and Sorting Plants
(ASPLARSEM).
- Waste-to-Energy Forum (FGER).
- Technical Association for Waste Management and the Environment
(ATEGRUS).
- Spanish Association of Waste Management Contractors (ASEGRE).
- Paper and cardboard reclaimers (REPACAR).
- Spanish Aerosol Association (AEDA).
- National Glass Recycling Association (ANAREVI).
- Association of Austrian Waste Management Companies (VOEB).
- Altstoff Recycling Austria (ARA).
- Association of Entrepreneurs in Waste Management (APOH).
- Czech waste management Association (ČAOH) .
- Environmental Services Association.
- Infrastructure Construction and Concessionary Company
- Confederation of Entrepreneurs of the Province of Cádiz (CEC).
Association (SEOPAN-AGUA).
- Association for the Defence of Water Quality (ADECAGUA).
- Water Centre Foundation of the Canary Islands (FCCA).
- Association of Urban Water Distribution and Treatment Businesses
- Agrupació de Serveis d’aigua de Catalunya (ASAC).
of the province of Las Palmas (ADITRAGUA).
- Associació Abastamens Aigua (AAA).
- Catalan Water Partnership (CWP).
- Associació Industrial per la producción neta (AIPN).
- Association of Water Entrepreneurs of Les Illes Balears (ASAIB).
- Water Alliance of Ibiza and Formentera.
- Water Supply and Drainage Association of the Valencian Regional
Government (AVAS).
- Zinnae Urban cluster for efficient use of water.
- Confederation of Business Organisations of the province of Badajoz
(COEBA).
- International Desalination Association (IDA).
- International Water Association (IWA).
- European Federation of National Associations for Water and
Drainage (EUREAU).
- Smart Water Networks Forum (SWAN).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Anexo V. Listado de principales asociaciones | Página 2 de 2
_ 679
- Partners of the International Federation of Private Water Operators
- Association of the supply and drainage industry in the Czech
- European Construction Industry Federation.
(AquaFed).
Republic (SOVAK).
- Specialist Centre on PPPS in Smart and Sustainable cities (PPP for
- Water Management Association in the Czech Republic (SVH).
- Spanish Quality Association (AEC in Spanish).
- AECOM Association of Infrastructure Construction and
Cities) (ONU-IESE).
- The Ditchley Foundation Water Advisory Committee (UK).
- Czech Association of Non-Excavation Technologies (CZSTT).
Concessionary Companies.
- Association for the Development of the Moravian-Silesian Region
- National Construction Confederation (CNC).
- Isle Utilities TAG (Technology Approval Group).
(SRMSK).
- World Water Innovation Fund (WWIF).
- Association of Water Supply and Drainage Operators of the Czech
- Water Action Platform.
- Associaçao portuguesa de Distribuçao e Drenagem de Águas
(APDA).
Republic (APROVAK).
- Confederation of Industry of the CR (SP ČR).
- Czech Chamber of Comerce (HK ČR).
- Associaçao das Empresas Portuguesas para o Sector do Ambiente
- Association Scientifique et Technique pour l’eau et l’environment.
- European Construction Platform (ECTP).
(AEPSA).
- Federazione italiana delle Imprese dei Serivizi idrici, energetici e vari
(UTILITALIA).
- Fédération des Distributeurs d’eau indépendants.
- Fédération professionnelles des entreprises d l’eau (FP2E).
- National Association of Water and Sanitation Utilities in Mexico
(ANEAS).
- Latin American Association for Desalination and Water Reuse
(ALADYR).
- Water Environment Federation (WEF).
- Public Services Association of Colombia (ANDESCO).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VI: GRI content table | Page 1 of 10
_ 680
ANNEX VI
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).
Content and materiality of the issues by business
Report section/Direct response
GRI 101: Fundamentals 2016
General content
GRI 102: General Content 2016
102-1 Name of the organisation.
Fomento de Construcciones y Contratas, S.A. and subsidiaries.
102-2 Activities, brands, products, and services.
2.2 Specialised business.
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, España.
2.2 Specialised business.
Corporate Governance Report, section A. Ownership structure.
2.2 Specialised business.
2.3 Key figures and growth.
5.1 Recognising talent.
102-8 Information on employees and other workers.
Annex II: Tables relating to social and personnel affairs.
102-9 Supply chain.
11. Supply chain.
Page
number
Omission
–
Not applicable
549-556
Not applicable
–
Not applicable
549-556
Not applicable
–
Not applicable
549-556
Not applicable
557;
607-608
Not applicable
665-672
Not applicable
648-651
Not applicable
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VI: GRI content table | Page 2 of 10
_ 681
Content and materiality of the issues by business
Report section/Direct response
Page
number
102-10 Significant changes in the organisation and its supply chain.
During 2021, there have been no changes that are considered to be significant for the FCC Group
as a whole.
–
Omission
Not applicable
102-11 Precautionary principle or approach.
4.1.2 FCC Group Environmental Management System.
102-12 External initiatives.
102-13 Membership of associations.
8.2 The right path to Human Rights.
Annex V: List of main associations.
102-14 Statement from senior executives responsible for decision-making.
1. Letter from the CEO: "On the path to sustainability".
102-16 Values, principles, standards and rules of conduct.
102-18 Governance structure.
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.
102-45 Entities included in the consolidated financial statements.
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.
3.1 Creating shared value.
2.1 Governance structure.
7.2 A competent structure.
3.2 Communication with Stakeholders.
Annex II: Tables relating to social and personnel affairs.
3.3 Focused on the material.
3.3 Focused on the material.
3.3 Focused on the material.
Annex I: About this report.
Annex I: About this report.
3.3 Focused on the material.
4.2.2 Pollution prevention.
3.3 Focused on the material.
Annex I: About this report.
2020.
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 VI: GRI content table.
Annex I: About this report.
580-582
Not applicable
638
Not applicable
678-679
Not applicable
546-547
Not applicable
561-563
Not applicable
548;
631-632
Not applicable
566-567
Not applicable
670
Not applicable
568-569
Not applicable
568-569
Not applicable
568-569
Not applicable
662-664
Not applicable
662-664
Not applicable
568-569
Not applicable
588-591
Not applicable
568-569
Not applicable
662
Not applicable
–
–
–
Not applicable
Not applicable
Not applicable
662-664
Not applicable
680-689
Not applicable
662
Not applicable
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VI: GRI content table | Page 3 of 10
_ 682
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
7. EXEMPLARITY - An exemplary organisation.
8. INTEGRITY - Consolidated integrity.
7. EXEMPLARITY - An exemplary organisation.
8. INTEGRITY - Consolidated integrity.
7. EXEMPLARITY - An exemplary organisation.
8. INTEGRITY - Consolidated integrity.
Page
number
Omission
630-641
Not applicable
630-641
Not applicable
630-641
Not applicable
307-1 Noncompliance with environmental laws and regulations.
Anexo III: Tablas relativas a cuestiones medioambientales.
673-675
Not applicable
GRI 419: Socioeconomic compliance 2016
419-1 Noncompliance with laws and regulations in the social and economic area
GRI 205: Anticorruption 2016
205-1 Transactions assessed for risks relating to corruption.
No significant firm sanctions have been identified in 2021 for non-compliance with laws and
regulations in the social and economic areas.
–
Not applicable
8.3 Legal action against corruption and money laundering against corruption and money
laundering.
639-641
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.
Quality of service and client satisfaction. ENVIRONMENT AND CONSTRUCTION
GRI 103: Management approach 2016
12.1 Risk Management Model.
12.1 Risk Management Model.
12.1 Risk Management Model.
103-1 Explanation of the material issue and its coverage.
10. CUSTOMERS - Excellence in service.
103-2 The management approach and what it consists of.
10. CUSTOMERS - Excellence in service.
103-3 Assessment of the management approach.
10. CUSTOMERS - Excellence in service.
GRI 416: Client health and safety 2016
416-1 Assessment of the health and safety impacts of the product and service
10.2 Customer care.
categories.
652-657
Not applicable
652-657
Not applicable
652-657
Not applicable
644-647
Not applicable
644-647
Not applicable
644-647
Not applicable
645
Not applicable
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VI: GRI content table | Page 4 of 10
_ 683
Content and materiality of the issues by business
Report section/Direct response
Innovation and digital transformation. ENVIRONMENT
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.
Fiscal transparency and tax contribution. WATER
GRI 103: Management approach 2016
2.4 Innovation in our DNA.
2.4 Innovation in our DNA.
2.4 Innovation in our DNA.
103-1 Explanation of the material issue and its coverage.
13. COMMITMENT – Responsible taxation.
103-2 The management approach and what it consists of.
13. COMMITMENT – Responsible taxation.
103-3 Assessment of the management approach.
13. COMMITMENT – Responsible taxation.
GRI 207: Taxation 2019
207-1 Fiscal approach.
207-2 Fiscal governance, control and risk management.
13. COMMITMENT – Responsible taxation.
13. COMMITMENT – Responsible taxation.
207-3 Stakeholder engagement and management of tax concerns.
13.1 A shared commitment.
207-4 Country-by-country reporting.
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
303-2 Management of impacts related to water discharges.
303-4 Water discharges.
GRI 305: Emissions 2016
13.2 FCC Group's contribution.
Annex IV: Tax information.
4.2.2 Pollution prevention
4.2.2 Pollution prevention
4.2.2 Pollution prevention
4.2.2 Pollution prevention.
4.2.2 Pollution prevention.
305-7 Nitrogen oxides (NOx), sulphur oxides (SOx) and other significant atmospheric
4.2.2 Pollution prevention.
emissions.
Page
number
Omission
558
558
558
Not applicable
Not applicable
Not applicable
658-660
Not applicable
658-660
Not applicable
658-660
Not applicable
658-660
Not applicable
658-660
Not applicable
658
Not applicable
660;
676-677
Not applicable
588-591
Not applicable
588-591
Not applicable
588-591
Not applicable
588-591
Not applicable
588-591
Not applicable
588
Not applicable
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VI: GRI content table | Page 5 of 10
_ 684
Content and materiality of the issues by business
Report section/Direct response
Circular economy and waste. 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 306: Waste 2020
306-1 Waste generation and significant waste-related impacts.
306-2 Management of significant waste-related impacts.
306-3 Waste generated.
Management of water resources. 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 303: Water and effluents 2018
4.3 Circular solutions.
4.3 Circular solutions.
4.3 Circular solutions.
4.3 Circular solutions.
4.3 Circular solutions.
4.3.2 Reduction of waste generated.
4.3.3 Water as a resource.
4.3.3 Water as a resource.
4.3.3 Water as a resource.
303-1 Interaction with water as a shared resource.
4.3.3 Water as a resource.
303-3 Water abstraction.
Annex III: Tables relating to environmental issues.
Consumption of materials. WATER AND CONSTRUCTION
GRI 103: Management approach 2016
103-1 Explanation of the material issue and its coverage.
4.3.4 Raw materials in the production process.
103-2 The management approach and what it consists of.
4.3.4 Raw materials in the production process.
103-3 Assessment of the management approach.
4.3.4 Raw materials in the production process
GRI 301: Materials 2016
301-1 Materials used by weight or volume
4.3.4 Raw materials in the production process
Annex III: Tables relating to environmental issues
Page
number
Omission
594-598
Not applicable
594-598
Not applicable
594-598
Not applicable
594-598
Not applicable
594-598
Not applicable
597-598
Not applicable
599-600
Not applicable
599-600
Not applicable
599-600
Not applicable
599-600
Not applicable
673-675
Not applicable
601
601
601
Not applicable
Not applicable
Not applicable
601;
673-675
Not applicable
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VI: GRI content table | Page 6 of 10
_ 685
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.
4.2.3 Energy consumption and energy efficiency.
103-2 The management approach and what it consists of.
4.2.3 Energy consumption and energy efficiency.
103-3 Assessment of the management approach.
4.2.3 Energy consumption and energy efficiency.
GRI 302: Energy 2016
302-1 Energy consumption within the organisation.
Climate change. 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.
GRI 305: Emissions 2016
305-1 Direct GHG emissions (scope 1).
305-2 Indirect GHG emissions when generating energy (scope 2).
Attracting and retaining talent. 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
4.2.3 Energy consumption and energy efficiency
Annex III: Tables relating to environmental issues
4.2 Climate footprint.
4.2 Climate footprint.
4.2 Climate footprint.
4.2.1 Fight against climate change.
Annex III: Tables relating to environmental issues.
4.2.1 Fight against climate change.
Annex III: Tables relating to environmental issues.
5. EMPLOYEES - People at the core.
5. EMPLOYEES - People at the core.
5. EMPLOYEES - People at the core.
Page
number
Omission
592-593
Not applicable
592-593
Not applicable
592-593
Not applicable
592-593;
673-675
Not applicable
584-587
Not applicable
584-587
Not applicable
584-587
Not applicable
587;
673-675
587;
673-675
Not applicable
Not applicable
606-612
Not applicable
606-612
Not applicable
606-612
Not applicable
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.
–
Not applicable
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VI: GRI content table | Page 7 of 10
_ 686
Content and materiality of the issues by business
Report section/Direct response
Page
number
Omission
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
GRI 402: Employee company relations 2016
402-1 Minimum notice to be given regarding operational changes.
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
404-1 Average hours of training per year per employee.
Diversity, equality and inclusion. WATER
GRI 103: Management approach 2016
GRI 405: Diversity and equal opportunities 2016
405-2 Ratio for basic salary and remuneration for women vs men.
GRI 406: Non-discrimination 2016
406-1 Cases of discrimination and corrective actions taken.
5. EMPLOYEES - People at the core.
5. EMPLOYEES - People at the core.
5. EMPLOYEES - People at the core.
5.1.5 Managing knowledge
Annex II: Tables relating to social and personnel affairs
608-612
Not applicable
608-612
Not applicable
608-612
Not applicable
609-611;
671
Not applicable
613-616
Not applicable
613-616
Not applicable
613-616
Not applicable
612;
669
Not applicable
103-1 Explanation of the material issue and its coverage.
5.2 Working towards making diversity a reality.
103-2 The management approach and what it consists of.
5.2 Working towards making diversity a reality.
103-3 Assessment of the management approach.
5.2 Working towards making diversity a reality.
5.1.7 Compensation policy.
Annex II: Tables relating to social and personnel affairs.
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.
5.5 Safety, health and well-being
5.5 Safety, health and well-being
5.5 Safety, health and well-being
619-620
Not applicable
619-620
Not applicable
619-620
Not applicable
In 2021, communications have been received in the Ethics Channel of a labour-related nature, and
none related to cases of discrimination have been identified.
–
Not applicable
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VI: GRI content table | Page 8 of 10
_ 687
Content and materiality of the issues by business
Report section/Direct response
GRI 403: Occupational health and safety 2018
403-1 Occupational health and safety management system.
5.5.1 Strategy and Culture.
403-2 Hazard identification, risk assessment and the investigation of incidents.
403-3 Occupational health services.
403-4 Worker participation, consultation and communication on occupational health
and safety.
The health and safety management systems foresee operational control plans or regular checks,
both to monitor the preventive measures foreseen as a result of the risk assessment, and to
detect situations or deficiencies that determine the need for intervention and/or the updating of the
assessments themselves. The participation of the workers in the notification of hazards or needs
related to health and safety is organised through various channels of communication: through their
representatives in the area and there is also a complaints channel that can be anonymous if the
subject so desires, consisting of an ad hoc form that can be filled in online, sent by e-mail or by
post. The Group has different procedures that establish how the investigation of labour incidents
is to be carried out, which establishes the process to be followed and the persons who must
participate in it.
The purpose of the joint prevention services is to promote and support the organisation in the
integration and development of preventive and health promotion activities (implementation of
health and safety management systems), as well as to evaluate the implementation of the Health
and Safety Plans of the different business areas. This function is aimed at avoiding or preventing
occupational risks and improving health and safety conditions by means of properly planned and
orderly assistance and advice to all Group companies. The resources of the prevention services
cover three specialities (Occupational Safety, Industrial Hygiene and Ergonomics and Applied
Psychosociology) dedicated to the development of the technical responsibilities of the service, and
they have the appropriate means for the needs of the prevention service. The Medical Services
equipped with Basic Health Units (B.H.U.) and providing support to the Companies within their
scope of action carry out the activities corresponding to the speciality of Occupational Medicine.
In addition to the development of Health Surveillance, this speciality is agreed with an External
Prevention Service in the geographical areas where the FCC Medical Services do not have
coverage.
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.
Page
number
Omission
619
–
Not applicable
Not applicable
–
Not applicable
–
Not applicable
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VI: GRI content table | Page 9 of 10
_ 688
Content and materiality of the issues by business
Report section/Direct response
Page
number
403-5 Training of workers on health and safety at work.
403-6 Promoting the health of workers.
403-7 Prevention and mitigation of health and safety impacts on workers directly
linked to business relations.
403-9 Work-related injuries.
Contribution and social commitment. WATER
GRI 103: Management approach 2016
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, MA training courses
(to undertake responsibilities defined in the system) and MA technical training (for prevention
technicians and those with basic or intermediate training in the performance of preventive duties).
FCC's medical services cover the speciality of health surveillance for the entire organisation in those
geographical areas (provinces) in which it is physically present. In this function, they are in charge of
defining the surveillance protocols applicable to each work position as well as the programming and
development of the initial and periodic medical check-ups, and those for incorporation after long
absences and others. They also manage periodic flu vaccination campaigns and participate in the
management of health promotion activities through different media, including internal publications
on health via the digital magazine SOMOS FCC. They also participate in the development of
campaigns to reduce absenteeism.
FCC includes, in its supplier approval process, the need to meet a series of information and
compliance requirements related to occupational health and safety. Among them, the preventive
organisation model, the accident rate results with respect to the sector of activity, sanctions in
the matter and own resources allocated to the function are considered, among others. A positive
assessment of these is a necessary condition for approval.
–
–
–
Omission
Not applicable
Not applicable
Not applicable
The vast majority of occupational illness is related to problems with the musculoskeletal system.
–
Not applicable
103-1 Explanation of the material issue and its coverage.
6. SOCIETY - Promoting social and environmental progress.
103-2 The management approach and what it consists of.
6. SOCIETY - Promoting social and environmental progress.
103-3 Assessment of the management approach.
6. SOCIETY - Promoting social and environmental progress.
GRI 204: Procurement practices 2016
204-1 Proportion of spending on local suppliers.
11.1 Responsible purchasing.
621-627
Not applicable
621-627
Not applicable
621-627
Not applicable
651
Not applicable
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VI: GRI content table | Page 10 of 10
_ 689
Content and materiality of the issues by business
Report section/Direct response
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 2016
8.2 The right path to human rights.
8.2 The right path to human rights.
8.2 The right path to human rights.
407-1 Operations and suppliers in which the right to freedom of association and
8.2 The right path to human rights.
collective bargaining may be at risk.
GRI 408: Child labour
408-1 Operations and suppliers considered to involve significant risk of child labour.
8.2 The right path to human rights.
GRI 409: Forced or compulsory labour 2016
409-1 Operations and suppliers considered to involve significant risk of forced or
8.2 The right path to human rights.
compulsory labour.
GRI 411: Rights of indigenous peoples 2016
Page
number
Omission
638
638
638
638
638
638
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
411-1 Incidents of violations involving rights of indigenous peoples.
8.2 The right path to human rights.
638
Not applicable
GRI 412: Human rights assessment 2016
412-2 Employee training on human rights policies and procedures.
5.1.5 Managing knowledge.
609-611
Not applicable
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VII: Table of indicators Law 11/2018 | Page 1 of 6
_ 690
ANNEX VII
Table of indicators Law 11/2018
Law 11/18 Requirement
GENERAL INFORMATION
Business model
Brief description of the MA group business model (including business environment,
organisation and structure).
Geographical presence.
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.
102-45 Entities included in consolidated financial statements.
102-3 Location of headquarters.
102-4 Location of operations.
102-6 Markets served.
548-556
549-556
Organisation's objectives and strategies.
103-2 The management approach and its components.
Main factors and trends that may affect future growth and development.
103-2 The management approach and what it consists of.
561-563; 572-573
575-576; 604-605; 628-629
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]
103-2 The management approach and what it consists of
Throughout the document.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VII: Table of indicators Law 11/2018 | Page 2 of 6
_ 691
Law 11/18 Requirement
Reacted GRI standard
Page number
Risk management
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].
Other
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.
1. ENVIRONMENTAL ISSUES
Detailed general information
103-2 The management approach and what it consists of.
652-657
102-54 Declaration of having prepared the report in accordance with GRI Standards.
662
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.
Pollution
Measures to prevent, reduce or repair carbon emissions that seriously affect the
environment (also includes noise and light pollution).
Circular economy, waste prevention and management
Measures for prevention, recycling, reuse, other forms of retrieval and disposal of
waste.
303-2 Managing the impacts related to water discharges.
303-4 Water discharges.
305-7 Nitrogen oxides (NOX), sulphur oxides (SOX) and other significant air emissions.
306-2 Management of significant waste-related impacts.
594-598
577-579
580
581
583
588-591
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VII: Table of indicators Law 11/2018 | Page 3 of 6
_ 692
Law 11/18 Requirement
Actions to combat food waste.
Reacted GRI standard
103: Management Approach
Page number
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.
Sustainable use of resources
Water consumption and water supply in accordance with local limitations.
303-1 Interaction with water as a shared resource.
303-3 Water abstraction.
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.
103: Management Approach.
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).
Recommendations from the Task Force on Climate-Related Financial Disclosures
(TFCD).
Reduction goals established voluntarily in the medium and long term to reduce
greenhouse gas emissions and the measures adopted for this purpose.
Recommendations from the Task Force on Climate-Related Financial Disclosures
(TFCD).
Protecting biodiversity
Measures taken to preserve or restore biodiversity.
103: Management Approach.
Impacts caused by activities or operations in protected areas.
103-2 The management approach and what it consists of.
599-600
601
592-593
592-593
593
587; 673-674
585
587
602-603
602-603
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VII: Table of indicators Law 11/2018 | Page 4 of 6
_ 693
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.
Total number and distribution of employment contract modalities.
Annual average for indefinite, temporary and part-time contracts by gender, age and
professional classification.
102-8 Information on employees and other workers.
608; 665-668
Number of dismissals by gender, age and professional classification.
103-2 The management approach and what it consists of.
Average remuneration and developments separated by gender, age and professional
classification or equal value.
103: Management Approach.
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.
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.
103-2 The management approach and what it consists of.
Implementation of work disconnection policies.
103: Management Approach.
Employees with disabilities.
Work organisation
Occupational health and safety conditions.
Hours lost through absenteeism.
103-2 The management approach and what it consists of.
103: Management Approach.
403-2 Hazard identification, risk assessment and incident investigation.
Measures aimed at facilitating work-life balance and encouraging the coresponsibility of
both parents.
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.
Social relationships
403-10: Occupational illness and diseases.
669
669
669
612
620
615-616
620
672
620
619
619
672
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.
617-618
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.
670
618
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VII: Table of indicators Law 11/2018 | Page 5 of 6
_ 694
Law 11/18 Requirement
Training
Reacted GRI standard
Page number
Policies implemented in the field of training.
103-2 The management approach and what it consists of.
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.
103-2 The management approach and what it consists of.
Equality
Measures taken to promote equal treatment and opportunities for women and men.
103: Management Approach.
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.
609-611
610; 671
615-616
613-614
613-614
406-1 Cases of discrimination and corrective actions taken.
614
Policy against all types of discrimination and, where applicable, for diversity
management.
3. INFORMATION 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.
102-16 Values, principles, standards and norms of conduct.
412-2 Training of employees in human rights policies and procedures.
103-2 The management approach and what it consists of.
Cases reported involving violation of human rights.
406-1 Cases of discrimination and corrective actions taken.
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.
103-2 The management approach and what it consists of.
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.
205-1 Operations assessed for corruption-related risks.
102-16 Values, principles, standards and norms of conduct.
Contributions to foundations and non-profit organisations.
102-13 Membership of associations.
611; 638
638
638
638
639-640
641
627
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VII: Table of indicators Law 11/2018 | Page 6 of 6
_ 695
Law 11/18 Requirement
Reacted GRI standard
Page number
5. INFORMATION ABOUT THE COMPANY
The company's commitments to sustainable development
Impact of the company's activity on employment and local development.
103-2 The management approach and what it consists of.
Impact of the company's activity on local populations and on the territory.
103-2 The management approach and what it consists of.
Relationships maintained with those playing a role in local communities and how
dialogue is established with them.
102-43 Approach to stakeholder participation.
Partnership and sponsorship actions.
Subcontracting and suppliers
102-12 External initiatives.
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.
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.
103: Management Approach.
621-623
624-627
566-567
627; 678-679
648-649
649-650
651
645
646
647
676-677
676-677
677
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VIII: Taxonomy | Page 1 of 4
_ 696
ANNEX VIII
Taxonomy
EU Taxonomy
Within the decarbonisation strategy of the European Union's
current economic model, the Taxonomy emerges as a com-
mon language and tool for classifying sustainable activities to
encourage investors, companies, administrations and other in-
terest groups to redirect capital flows towards more sustainable
technologies and businesses. This will help to meet the objec-
tives of the Paris Agreement and the United Nations Sustaina-
ble Development Goals.
Given that, to date, the EU Taxonomy has specifically devel-
oped the environmental objectives of Mitigation and Adaptation
to climate change, it should be noted that the analysis of sus-
tainable activities carried out for the time being covers these
two environmental objectives. The forthcoming development of
the technical selection criteria for the rest of the environmental
and social objectives may extend the consideration of sustaina-
ble to other FCC Group businesses.
In accordance with the reporting requirements of the Taxono-
my Regulation (EU) 2020/852, the FCC Group has analysed
the proportion of its economic activities which are eligible and
ineligible under the Environmental Taxonomy, in terms of turno-
ver, CapEx and OpEx relative to the year 2021, for the Climate
Change Mitigation and Adaptation objectives.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VIII: Taxonomy | Page 2 of 4
_ 697
From theory to practice
In accordance with Delegated Regulation (EU) 2021/2178 im-
plementing Article 8 of the Taxonomy Regulation, which spec-
ifies the content and presentation to be disclosed, the FCC
Group includes below the proportion of economic activities el-
igible and ineligible for Taxonomy for 2021, expressed in total
turnover and CapEx.
An activity is understood to be eligible if it is included in the
descriptive taxonomic activities listed in the Regulation itself,
considered to have the potential to contribute substantially to
one or more of the environmental objectives set out in Article
9 of the Regulation, and which will be demonstrated in future
years through the analysis of the alignment of eligible activities.
On the other hand, an economic activity that has not been iden-
tified by the EU Taxonomy would be a non-eligible activity and
therefore no criteria have been developed for it as either not
having potential for substantial contribution to Climate Change
Mitigation and Adaptation, or that they could be included in the
EU Taxonomy regulation in the future.
As mentioned above, Taxonomy eligibility is expressed in three
financial KPIs, which are calculated as the share of turnover,
CapEx and OpEx deemed eligible for Taxonomy (numerator)
divided by the Group's total turnover, CapEx and OpEx as de-
fined by Taxonomy (denominator). The concepts included to
calculate these three KPIs are described below:
• Turnover. Proportion of net turnover derived from products
or services, including intangibles, linked to economic activi-
ties that comply with the taxonomy (numerator), divided by
net turnover (denominator) as defined in Article 2(5) of Direc-
tive 2013/34/EU.
• CapEX. Includes additions to the gross value of intangible
assets, property, plant and equipment and real estate invest-
ments, including additions arising from the application of the
regulations in relation to removal and dismantling costs which
are included as an addition to property, plant and equipment
at initial recognition of the asset; additions to property, plant
and equipment for lease contracts under IFRS 16, as well as
additions to the gross value of intangible assets, property,
plant and equipment and real estate investments arising from
the acquisition of control as a result of a business combina-
tion. Changes in depreciation, impairments and revaluations
of real estate investments due to their recognition at fair value
are not included.
• OpEX. The share of OpEx referred to in Article 8(2)(b) of
Regulation (EU) 2020/852 limits the calculation of this KPI to
non-capitalised direct costs that are related to research and
development, building renovation measures, short-term leas-
es, maintenance and repairs, as well as other direct expens-
es related to the daily maintenance of property, plant and
equipment assets, by the company or a third party to whom
activities are outsourced, and that are necessary to ensure
the continuous and efficient operation of those assets. In ad-
dition, non-financial companies that apply national GAAP and
do not capitalise right-of-use assets include leasing costs in
OpEx.
In the case of the calculation of OpEx for the FCC Group, since
the direct costs mentioned in the regulation for the calculation
of OpEx were considered that they might not be material for the
Group in comparison with its total operating costs, an analysis
was performed to determine the relevance that the reporting of
this indicator would have for FCC and its interest groups. Of the
total operating costs for 2021 (5,834,018 thousand euros), the
OpEx denominator, as specified in the Regulation, represents
6.3% (366,176 thousand euros), so it has been considered im-
material for reporting purposes. It should be noted that, due to
the Group's internal accounting systems, the calculation of the
OpEx denominator does not include the other direct expenses
related to the daily maintenance of intangible fixed assets, by
the company or a third party to whom activities are outsourced,
as stated in the regulation.
Accordingly, the proportion of eligible and non-eligible activities
according to the Taxonomy has been calculated using the finan-
cial KPIs of turnover and CapEx.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VIII: Taxonomy | Page 3 of 4
_ 698
Actividades elegibles
del Grupo FCC
The eligibility analysis carried out by the FCC Group has con-
sidered all the companies that make up the FCC Group's con-
solidation perimeter, identifying those that are included in the
Delegated Regulation (EU) 2021/2139 on Climate published in
the Official Journal of the European Union in December 2021.
The three main lines of activity of the FCC Group's business
model are included as activities with the potential to make a
significant contribution to climate change Mitigation and Adap-
tation, which will be shown next year through the analysis of the
alignment of eligible activity. In particular:
FCC Group's Activity Line
Taxonomic Group and main associated activities
Potential for significant contribution to Climate Change Mitigation
Environment, which manages and
treats domestic and industrial waste
and is responsible for street cleaning,
among others.
Group 5 Water supply, drainage, waste treatment and decontamination (5.5.Collection and
transport of non-hazardous waste in source separated fractions, 5.7.Anaerobic digestion of bio-
waste, 5.8.Composting of bio-waste, 5.9.Recovery of material from non-hazardous waste, 5.10.
Capture and utilisation of landfill gases)
Group 5 Water supply, drainage, waste treatment and decontamination (5.1.Construction,
extension and operation of water collection, treatment and supply systems, 5.2.Renovation of
water collection, treatment and supply systems, 5.3.Construction, extension and operation of
sewage collection and treatment systems, 5.4.Renovation of sewage collection and treatment)
EU greenhouse gas emissions from the water, drainage, waste and decontam-
ination industry are relatively low. However, this industry has a large potential
to contribute to the reduction of greenhouse gas emissions in other industries,
in particular through the supply of secondary raw materials to replace virgin
raw materials, by substituting fertilisers, energy and fossil-based products. In
addition, activities involving anaerobic digestion as well as composting of sep-
arately collected bio-waste, which avoid landfilling of bio-waste, are particularly
important for reducing methane emissions.
Agua, which operates under
the
Aqualia brand, takes care of the com-
plete cycle, from the infrastructures
necessary for the service to the supply
to homes and businesses.
Infrastructures, which the Group op-
erates through FCC Construcción and
Cementos Portland Valderrivas.
Group 3 Manufacturing (3.7. Manufacture of cement), Group 4 Energy (4.1. Electricity gen-
eration by solar photovoltaic technology, 4.9. Electricity transmission and distribution), Group 5
Water supply, drainage, waste treatment and decontamination (activities 5.1., 5.2., 5.3, 5.4,
5.5, and 5.9 above mentioned), Group 6 Transport (6.13. Infrastructure for personal mobility,
bicycle logistics, 6.14. Infrastructure for rail transport, 6.15. Infrastructure enabling low-carbon
road transport, 6.16. Infrastructure enabling low-carbon waterborne transport, 6.17. Low-carbon
airport infrastructure) and Group 7 Building construction and real estate development (7.1.
Construction of new buildings, 7.2. Renovation of existing buildings, 7.5. Installation, mainte-
nance and repair of instruments and devices for measuring, regulating and controlling the energy
efficiency of buildings).
Construction in several Taxonomy activities as part of the activity for which such
construction is relevant, in particular in the case of activities in the electricity
industry, the water, drainage, waste and decontamination industry, as well as
the transport industry. How this asset is constructed is an important condition
for eligible activities to contribute to reducing their emissions or adapting to
climate change.
In the case of the manufacture of cement clinker, it is considered an eligible
activity as it favours the transition to a climate-neutral economy.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Annex VIII: Taxonomy | Page 4 of 4
_ 699
However, from the analysis carried out, other eligible activities
have been identified within the FCC Group's portfolio, and the
classification of eligible activities for the Group as a whole is as
follows:
transport of non-hazardous waste in source separated frac-
tions., 5.7. Anaerobic digestion of bio-waste, 5.8. Bio-waste
composting, 5.9. Recovery of material from non-hazardous
waste, 5.10. Landfill gas capture and utilisation)
The percentage of eligibility for both Mitigation and Adaptation
to climate change objectives for each of the consolidated finan-
cial KPIs and their distribution per Taxonomic Group is detailed
below.
• Group 3 - MANUFACTURING (3.7.- Manufacture of cement)
• Group 4 - ENERGY (4.1. Electricity generation by solar pho-
tovoltaic technology, 4.2. Electricity generation by concen-
trated solar power technology, 4.9. Electricity transmission
and distribution)
• Group 6 - TRANSPORT (6.13. Infrastructure for personal
mobility, bicycle logistics, 6.14. Infrastructure for rail trans-
port, 6.15. Infrastructure enabling low-carbon road transport,
6.16. Infrastructure enabling low-carbon waterborne trans-
port, 6.17. Low carbon airport infrastructure)
• Group 5 - WATER SUPPLY, DRAINAGE, WASTE TREAT-
MENT AND DECONTAMINATION (5.1. Construction, exten-
sion and operation of water collection, treatment and supply
systems, 5.2. Renovation of water collection, treatment and
supply systems, 5.3. Construction, extension and operation
of sewage collection and treatment systems, 5.4. Renova-
tion of sewage collection and treatment, 5.5. Collection and
• Group 7 - BUILDING CONSTRUCTION AND REAL ES-
TATE DEVELOPMENT (7.1. Construction of new buildings,
7.2. Renovation of buildings, 7.3. Installation, maintenance
and repair of energy-efficient equipment, 7.5. Installation,
maintenance and repair of instruments and devices for meas-
uring, regulating and controlling the energy efficiency of build-
ings, 7.7. Acquisition and ownership of buildings).
Assumptions and nuances
in the course of the analysis
carried out
Double counting: The process has been carried out considering
only the Climate Change Mitigation objective thus avoiding any
possible double counting in the calculation of financial metrics.
SALES VOLUME
28.1%
CapEX
8.2%
CLASSIFICATION OF FCC ACTIVITIES ACCORDING TO TAXONOMY
71.9%
91.8%
A. Eligible activities according to the taxonomy
6,659,283
thousands of euros
2,738,080
thousands of euros
Eligible
Non-eligible
3. Manufacturing
4. Energy
5. Water supply, drainage, waste treatment and decontamination
6. Transport
7. Building construction and real estate development
B. Ineligible activities according to the taxonomy
Total (A + B)
Turnover
CapEX
71.9% 91.8%
6.4%
1.3%
0.5%
0.1%
39.3%
11.6%
15.0%
0.8%
9.9%
78.8%
28.1%
8.2%
100.0% 100.0%
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Non-Financial Information verification Disclosure | Page 1 of 3
_ 700
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Non-Financial Information verification Disclosure | Page 2 of 3
_ 701
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | FCC Group Sustainability Report | Non-Financial Information verification Disclosure | Page 3 of 3
_ 702
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report
_ 703
A 3
Annual
Corporate
Governance
Report
End date business year in question: 2021
CIF (Tax ID): A-28037224
Corporate Name:
Fomento de Construcciones y Contratas, S.A.
Registered address:
C/Balmes, 36. 08007 Barcelona
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 1 of 105
_ 704
A Ownership structure
A.1
Complete the following table on share capital and the attributed voting rights, in-
cluding those corresponding to shares with a loyalty vote as of the closing date of
the year, where appropriate:
Observations
Indicate whether company bylaws contain the provision of double loyalty voting:
No
Yes
Date of board approval
dd/mm/yyyy
Minimum period of uninterrupted tenure required by the bylaws
Indicate whether the company has awarded votes for loyalty:
Indicate whether there are different share classes with different associated rights:
Yes
No
Class
–
Number of
shares
–
Par value
–
Number of voting
rights
Rights and
obligations
conferred
–
–
No
Yes
Observations
Date of
the last
modification
of the share
capital
Share capital
Number of
shares
Number
of voting
rights (not
including
additional
loyalty-
attributed
votes)
Number of
additional
attributed
voting rights
corresponding
to shares with
a loyalty vote
Total number
of voting
rights,
including
additional
loyalty-
attributed
votes
27-07-2021
425,173,636
425,173,636
425,173,636
0
Number of shares registered in the special register pending the expiry of the
loyalty period
0
0
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 2 of 105
_ 705
A.2
List the company’s significant direct and indirect shareholders at year end, excluding
directors with a significant shareholding:
Name or company name of
shareholder
Gates III, William H.
Control Empresarial de Capitales
S.A. de C.V.
Nueva Samede 2016, S.L.U.
Esther Koplowitz Romero de Juseu
Carlos Slim Helú
% of voting rights attached to the
shares (including votes for loyalty)
Direct
–
61.200
4.540
0.033
–
Indirect
5.736
13.002
–
4.540
7.005
Breakdown of indirect holding:
Name or company name of the indirect owner
Gates III, William H.
Gates III, William H.
Name or company name of direct
owner
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
% voting rights through financial
instruments
Direct
Indirect
% of total
voting rights
From the total number of voting rights attributed to the shares,
indicate, where appropriate, the additional votes attributed
corresponding to the shares with a loyalty vote
Direct
Indirect
–
–
–
–
–
5.736
74.202
4.540
4.573
7.005
–
–
–
–
–
Observations
% of voting rights attached
to the shares (including
votes for loyalty)
% voting rights through
financial instruments
% of total
voting rights
From the total number of voting rights attributed
to the shares, indicate, where appropriate, the
additional votes attributed corresponding to the
shares with a loyalty vote
3.986
1.750
8.462
4.540
7.005
Observations
–
–
–
–
–
3.986
1.750
8.462
4.540
7.005
Regarding the position of CONTROL EMPRESARIAL DE CAPITALES, S.A. DE C.V. (CEC):
Regarding the holdings through intermediaries (i) 19,301,251 shares in Fomento de Construcciones y Contratas S.A. (“FCC”) owned by Nueva Samede 2016 S.L.U. representing 4.540% of FCC’s share capital, hereby 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 4.540%. Therefore, CEC holds directly and indirectly, only 69.66% 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 4.540% indirectly through Nueva Samede 2016, S.L.U., Dominum Desga, S.A. and Ejecución y Organización de Recursos, S.L.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 3 of 105
_ 706
Indicate the most significant changes in the shareholding structure during the year:
Most significant changes
A.3
Give details of the participation at the close of the fiscal year of the members of
the board of directors who are holders of voting rights attributed to shares of the
company or through financial instruments, whatever the percentage, excluding the
directors who have been identified in Section A2 above:
% of voting rights attached to the
shares (including votes for loyalty)
% voting rights through financial
instruments
Indirect
Direct
Indirect
From the total percentage of voting rights attributed to the shares,
indicate, where appropriate, the percentage of additional votes
attributed corresponding to the shares with a loyalty vote
Direct
Indirect
% of total voting
rights
Name or company name of
director
Aboumrad González, Alejandro
Colio Abril, Pablo
Dominum Desga, S.A.
Dominum Dirección y Gestión, S.A.
Alicia Alcocer Koplowitz
Gil Madrigal, Manuel
Inmobiliaria AEG, S.A. de C.V.
Kuri Kaufman, Gerardo
Proglio, Henri
Rodriguez Torres, Juan
Samede Inversiones 2010, S.L.U.
Vázquez Lapuerta, Álvaro
Gómez García, Antonio
Total
Direct
0.074
0.027
0.000
8.462
0.078
0.000
0.000
0.069
0.001
0.077
0.000
0.001
0.005
8.794
–
–
–
–
–
0.008
–
–
–
–
–
–
–
0.008
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.074
0.027
0.000
8.462
0.078
0.008
0.000
0.069
0.001
0.077
0.000
0.001
0.005
8.802
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total percentage of voting rights held by the Board of Directors
Observations
–
–
–
–
–
–
–
–
–
–
–
–
–
–
8.802
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 4 of 105
_ 707
Breakdown of indirect holding:
Name or
company name
of director
Name or
company
name of direct
owner
Gil Madrigal,
Manuel
Tasmania
Inmuebles, S.L.
% of voting
rights
attached to
the shares
(including
votes for
loyalty)
% voting
rights through
financial
instruments
% of total
voting
rights
From the total
percentage of
voting rights
attributed to the
shares, indicate,
where appropriate,
the percentage
of additional
votes attributed
corresponding to
the shares with a
loyalty vote
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
Type of
relationship
Brief description
FCC Construcción and Carso
Infraestructura y Construcción
S.A.B. de C.V.
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”.
0.008
–
0.008
–
Observations
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.
List the total percentage of voting rights represented on the board:
Total percentage of voting rights represented on the board of directors
81.24
Observations
Explain, as applicable, how significant shareholders are represented. Specifically, indicate
the directors appointed on behalf of significant shareholders whose appointment was pro-
moted 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 representatives,
in companies that hold significant holdings in the listed company or in entities of the group
of these significant shareholders.
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
–
–
–
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 5 of 105
_ 708
Name or company
name of related
director or
representative
Name or company
name of related
significant
shareholder
Inmobiliaria AEG,
S.A. de CV
Control Empresarial de
Capitales, S.A. de C.V.
Samede Inversiones
2010, S.L.,
Esther Koplowitz
Romero de Juseu
Alicia Alcocer
Koplowitz
Esther Koplowitz
Romero de Juseu
Dominum Dirección y
Gestión, S.A.
Control Empresarial de
Capitales, S.A. de C.V.
Dominum Desga, S.A. Esther Koplowitz
Romero de Juseu
Company name of the
group company of the
significant shareholder
–
–
–
–
–
Observations
Description of
relationship/post
Director appointed
at the proposal
of significant
shareholder.
Director appointed
at the proposal
of significant
shareholder.
Director appointed
at the proposal
of significant
shareholder.
The significant
shareholder indirectly
holds FCC shares
through this director.
Director appointed
at the proposal
of significant
shareholder.
Name or company
name of related
director or
representative
Name or company
name of related
significant
shareholder
Company name of the
group company of the
significant shareholder
Alejandro Aboumrad
González
Control Empresarial de
Capitales, S.A. de C.V.
Several subsidiaries of the
shareholder
Description of
relationship/post
Administrator
Antonio Gómez
García
Control Empresarial de
Capitales, S.A. de C.V.
Grupo Carso SAB de C.V.
Alternate Director
and General Manager
Grupo Frisco SAB de CV
Director
Grupo Elementia SAB de CV
Director
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
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.
Director
Director
Non-executive
chairman
Director
Managing director
and/or director of
various subsidiary
companies of the
aforementioned
company
Director
Director
Director
Director
Servicios CTVM, S.A. de C.V. Director
Finver Inversiones 2020, S.L. Director
Soinmob Inmobiliaria
Española
Dominium Dirección y
Gestión, S.A.
Director
Director
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 6 of 105
_ 709
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 Enterpris-
es Act. If so, describe them briefly and list the shareholders bound by the agree-
ment:
Yes
No
% of share
capital
concerned
50.16
Brief description of the
agreement
Expiry date of the
agreement, if any
Relevant fact of
27/1/2014 (see note)
Open-ended
72.36
Relevant fact of
05/02/2016 (see note)
Open-ended
Parties to the shareholders'
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
Observations
Relevant Fact of 27 November 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 5 February 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 Samede 2016, S.L.U. (“Nueva Same-
de”)) 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 sub-
sequently 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 modifi-
cation of certain provisions regarding Corporate Governance, the share transfer system as well as the re-
moval of the provision regarding the maximum participation of the parties in the Company’s capital shares.
Indicate whether the Company is aware of any concerted actions among its shareholders.
If so, describe them briefly:
Yes
No
Participants of
coordinated action
% of share capital
concerned
Brief description
of the coordinated
action
End date of the
coordinated action, if
applicable
–
–
–
–
Observations
If there has been any change or termination of these agreements or coordinated actions
during the year, expressly indicate:
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 7 of 105
_ 710
A.8
Indicate whether any individual or company exercises or may exercise control over
the company in accordance with Article 5 of the Securities Market Act. If so, identify
them:
Explain any significant changes during the year:
Explain the significant changes
Yes
No
Control Empresarial de Capitales, S.A. de C.V.
Name or company name
Observations
A.9
Complete the following table with details of the company’s treasury shares:
At the close of the year:
Number of direct shares
Number of indirect shares (*)
Total % of share capital
2,410,758
–
0.567
Observations
(*) Through:
Name or company name of direct owner
Number of direct shares
A.10 Provide a detailed description of the conditions and terms of the authority given to
the Board of Directors to issue, repurchase, or dispose of treasury 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 meeting 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, inter-
changeably, 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, interchangeably,
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 share
capital 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 appli-
cable, have acquired them, to set aside provisions for the restricted reserve set out in Article 148.c) of the
Spanish Corporate Enterprises Act.
–
Total:
Observations
–
This authorisation voids the authorisation approved by the Board on 23 May 2013.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 8 of 105
_ 711
A.11 Estimated floating capital.
A.14
Indicate whether the company has issued shares that are not traded on a regulated
EU market.
Estimated floating capital
%
12.15
Yes
No
Observations
If applicable, indicate the different classes of shares and, for each class of shares, the
corresponding rights and obligations.
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.
Note:
Indicate the different classes of shares
–
In particular, indicate the existence of any type of restriction that may inhibit a takeover
of the company through acquisition of its shares on the market, as well as such regimes
for prior authorisation or notification that may be applicable, under sector regulations, to
acquisitions or transfers of the company’s financial instruments.
On 7 July 2021, FCC Servicios Medio Ambiente Holding, S.A.U., a company wholly owned by FCC, re-
newed the Euro-Commercial Paper Programme (ECP) promissory note programme for a maximum amount
of €400 million with the following characteristics:
1. Issuer: FCC Servicios Medio Ambiente Holding, S.A.U.
2. Maximum value of the programme: €400 million
3. Stock Market: Main Securities Market of the Irish Stock Exchange (Euronext Dublin).
Yes
No
4. Programme Dealers: Banca March, Bred Banque Populaire, Société Générale and Crédit Agricole.
Description of the restrictions
A.13
Indicate whether the general shareholders’ meeting has resolved to adopt meas-
ures to neutralise a takeover bid by virtue of 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
On 5 November 2021, FCC renewed the Euro-Commercial Paper Programme (ECP) promissory note pro-
gramme up to a maximum amount of €600 million, with the following characteristics:
1. Issuer: Fomento de Construcciones y Contratas, S.A.
2. Maximum value of the programme: €600 million.
3. Stock Market: Main Securities Market of the Irish Stock Exchange (Euronext Dublin).
4. Programme Dealers: Caixabank, Banco Sabadell, S.A., Santander and Banca March.
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 Company successfully com-
pleted 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 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 Construc-
ciones 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 maturing in 2027, respec-
tively. Both issues were secured against specific assets of the FCC Aqualia Group. Upon approval and reg-
istration of the corresponding prospectus, the Bonds were accepted to trading on the unregulated market
(Global Exchange Market) of the Irish Stock Exchange.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 9 of 105
_ 712
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
with respect to the quorum of the General Meeting of Shareholders.
Yes
No
% quorum different
from that established in
Article 193 of the Spanish
Corporate Enterprises Act
for general matters
% quorum different from that
established in Article 194
of the Spanish Corporate
Enterprises Act for special
resolutions of Article 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%
Art. 17.- Constitution of the Meeting
Description of differences
1. The Ordinary or Extraordinary General Meeting of Shareholders 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 foregoing are those cases in which, in
accordance with the items included on the Agenda, it is not legally possible to require a higher percent-
age of capital for the General Shareholders Meeting to be validly constituted than that 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 Shareholders 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 Shareholders 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 to
the Articles of Association.
3. If, to validly adopt an agreement with respect to any, or several, items on the agenda of the General
Meeting of Shareholders, pursuant to the applicable legal or statutory regulations, a certain percentage
of the share capital 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 represented, the General Meeting
of Shareholders shall be limited to discussing and deciding on items on the agenda that do not require
the attendance of this percentage of the share capital or the aforementioned shareholders.
B.2
Indicate whether there are any differences between the company’s manner of
adopting corporate resolutions and the regime provided in the Spanish Corporate
Enterprises Act and, if so, give details:
Yes
No
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 10 of 105
_ 713
Describe how it is different from the regime provided in the Corporate Enterprises Act.
Super majority other than the
figure established in Article 201.2
Corporate Enterprises Act for the
hypotheses provided for in 194.1
Corporate Enterprises Act
Other cases of super
majority
% established by the entity for
the adoption of resolutions
50.01%
0.00%
Art. 26. - Deliberations. Adopting resolutions. Minutes
Describe the differences
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 share capital present or represented with voting rights vote in favour.
Note:
50.01% is calculated against the subscribed share capital 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.
In general, the amendment of the Articles of Incorporation is a matter for the General Meeting. Regarding
the majorities required to amend the Articles of Incorporation, a quorum of fifty percent (50%) and forty-five
percent (45%) of the subscribed share capital with voting rights is required on first and second call, respec-
tively. In turn, for the adoption of the resolution to amend the Articles of Incorporation, if the capital present or
represented exceeds fifty percent (50%) of the capital, the resolution shall be adopted by absolute majority,
and the favourable vote of two-thirds of the capital present or represented at the General Meeting shall be
required when, at second call, shareholders representing forty-five percent (45%) or more of the subscribed
capital with voting rights are present without reaching fifty percent (50%). Notwithstanding the foregoing, 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 share capital present or represented with voting rights vote in favour.
Additionally, as regards the rules laid down for the protection of shareholders’ rights in the amendment of
the Articles of Incorporation, these essentially refer to the right of shareholders to be informed, as provided
for by law. In this regard, the Board draws up a report justifying the proposed amendment, and the notice
convening the General Meeting clearly states the articles whose amendment is proposed and the right of
all shareholders to examine the full text of the proposed amendment and the report thereon at the regis-
tered office, as well as to request the delivery or sending of these documents free of charge, which are also
published continuously on the corporate website from the publication of the notice convening the meeting.
Shareholders may also request, up to the fifth day prior to the date scheduled for the meeting, such infor-
mation or clarifications as they deem necessary regarding the proposed amendment (as well as regarding all
the items on the agenda), or ask such questions in writing as they deem appropriate, and may also request,
during the meeting, such information or clarifications as they deem appropriate.
Finally, and in accordance with article 4 of the Articles of Incorporation, the Board of Directors is authorised
to change the registered office within Spain, amending the aforementioned article of the Articles of Incorpo-
ration to include the new registered office of the Company by virtue of the transfer, and such resolution must
be approved by the ordinary majorities required for resolutions of the Board, i.e. an absolute majority of the
directors attending the meeting, either in person or by proxy.
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 general meeting
%
physical
presence
Attendance data
% remote voting
% by proxy
Electronic
voting
Other
Total
29-06-2021
0.246%
46.457%
0.003%
44.061%
90.767%
Of which, Floating capital:
0.246%
10.898%
0.003%
0.426%
11.573%
2-06-2020
0.205%
61.760%
0.005%
28.170%
90.140%
Of which, Floating capital:
0.096%
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%
0.005%
0.004%
0.004%
0.001%
0.001%
0.004%
0.004%
0.007%
9.840%
0.005%
90.826%
0.005%
9.347%
0.003%
89.541%
0.003%
8.373%
0.030%
88.926%
0.030%
7.792%
Observations
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 11 of 105
_ 714
B.5
Indicate whether any point on the agenda of the General Shareholders’ Meetings dur-
ing the year was not approved by the shareholders for any reason.
B.7
Yes
No
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 submitted
for approval by the General Shareholders’ Meeting.
Items on the agenda that have not been approved
% vote against (*)
Yes
No
(*) 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.
B.6
Indicate whether the articles of incorporation contain any restrictions requiring a
minimum number of shares to attend General Shareholders’ Meetings, or to vote
remotely:
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:
Article 14 of the Articles of Incorporation, section g):
“g) 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.”
Yes
No
Number of shares required to attend the General Shareholders' Meeting
Number of shares required to vote remotely
Observations
B.8
Indicate the address and manner of accessing the company’s website for information
on Corporate Governance and other information on general shareholders’ meetings
that must be made available to shareholders on the Company’s website.
FCC’s website (www.fcc.es) has a section dedicated to Corporate Governance, accessible from the home
page, through the “Responsibility and Sustainability” section. This section contains information on the Com-
pany’s regulations on corporate governance, governing bodies, annual corporate governance and remuner-
ation reports, shareholders’ meetings, shareholders’ agreements, ethics and integrity. In addition, this tab,
under the heading “General Shareholders’ Meeting”, provides shareholders with specific access for elec-
tronic voting and for the electronic shareholders’ forum, in accordance with the provisions of article 539.2 of
the revised text of the Spanish Corporate Enterprises Act (Ley de Sociedades de Capital).
This section of the website is accessible with two clicks from the homepage. Its contents are structured and
hierarchised, under quick access headings and all its pages can be printed out.
The pages in this section have been developed in compliance with Level AA according to the UNE
139803:2012 Standard, which in turn is based on the W3C Web Content Accessibility Guidelines 2.0.
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 12 of 105
_ 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 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
Observations
C.1.2 Complete the following table on board members:
Nombre o
denominación
social del
consejero
Dominum
Desga, S.A
Samede
Inversiones
2010,
S.L.U.
Pablo Colio
Abril
Alejandro
Aboumrad
González
Dominum
Dirección
y Gestión,
S.A.
Alicia
Alcocer
Koplowitz
Manuel Gil
Madrigal
Antonio
Gómez
García
Represent-
ative
Director
category
Position on
the Board
First
appointment
date
Last
appointment
date
Election
procedure
Date of birth
Esther
Alcocer
Koplowitz
Esther
Koplowitz
Romero de
Juseu
Carmen
Alcocer
Koplowitz
Proprietary Chairwoman 27-09-2000 02-06-2020 General
10/11/1970
Shareholders’
Meeting
Resolution
Proprietary Vice
13-04-2015 08-05-2019 General
10/08/1950
Chairwoman
Executive
Chief
Executive
Officer
Shareholders’
Meeting
Resolution
12-09-2017 28-06-2018 General
8/06/1968
Shareholders’
Meeting
Resolution
Proprietary Vice
13-01-2015 02-06-2020 General
26/02/1980
Chairman
Shareholders’
Meeting
Resolution
Proprietary Director
26-10-2004 08-05-2019 General
01/01/1974
Shareholders’
Meeting
Resolution
Proprietary Director
29-06-2021 29-06-2021 General
10/10/1971
Shareholders’
Meeting
Resolution
Independ-
ent
Director
27-02-2015 08-05-2019 General
1/05/1960
Shareholders’
Meeting
Resolution
Proprietary Director
29-06-2016 02-06-2020 General
21/02/1961
Shareholders’
Meeting
Resolution
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 13 of 105
_ 716
Proprietary Director
13-01-2015 08-05-2019 General
28/01/1940
C.1.3 Complete the following tables on the members of the Board and their categories:
Shareholders’
Meeting
Resolution
EXECUTIVE DIRECTORS
Inmobiliaria
AEG, S.A.
de CV
Carlos Slim
Helú
Gerardo
Kuri
Kaufmann
Henri
Proglio
Juan
Rodríguez
Torres
Alfonso
Salem Slim
Álvaro
Vázquez de
Lapuerta
Executive
Director
13-01-2015 08-05-2019 General
17/12/1983
Shareholders’
Meeting
Resolution
Independ-
ent
Director
27-02-2015 08-05-2019 General
29/06/1949
Shareholders’
Meeting
Resolution
Proprietary Director
7-10-2015
02-06-2020 General
5/08/1939
Shareholders'
Meeting
Resolution
Proprietary Director
29-06-2016 02-06-2020 General
3/11/1961
Shareholders'
Meeting
Resolution
Independ-
ent
Director
27-02-2015 08-05-2019 General
30/04/1957
Shareholders'
Meeting
Resolution
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 period:
Name or
company
name of
director
Category of
the director
at the time of
departure
Last
appointment
date
Date of
cessation
Special
committees 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 departures
of non-executive directors, an explanation or the opinion of the director who has been dismissed
by the general meeting
Name or company name
of director
Post in company's
organisation chart
Profile
Pablo Colio Abril
CEO of FCC, Chairman
of FCC Construcción,
Chairman of FCC Medio
Ambiente, Vice Chairman
of FCC Servicios Medio
Ambiente Holding, S.A.U
and Vice Chairman of FCC
Medio Ambiente Reino
Unido S.L.U.
Gerardo Kuri Kaufmann
CEO of Cementos Portland
Valderrivas and Realia
Business
Architect, graduating from the Higher Tech-
nical School of Madrid. He has spent most
of his professional career at FCC, a com-
pany to which he has dedicated more than
26 years.
Within the Group, he has been responsible
for the international expansion of the Indus-
trial area. Positions he has previously held
include Managing Director of FCC Con-
strucción and Managing Director of FCC
Industrial.
He is the CEO of the FCC Group and a
member of its Executive Committee, func-
tions that he combines with those of the
Chairman of FCC Construcción, Chairman
of FCC Medio Ambiente and Vice Chair-
man of FCC Servicios Medio Ambiente
Holding, S.A.U. He is also a director of the
Mexican firm Carso Infraestructuras y Con-
strucción (CICSA).
Industrial Engineer graduate from the Uni-
versity 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 14 of 105
_ 717
Total number of executive directors
% of the total Board
2
14.29
Observations
EXTERNAL PROPRIETARY DIRECTORS
Name or
company
name of
director
Dominum
Desga, S.A.
(Represented
by Esther
Alcocer
Koplowitz)
Name or
company name
of the significant
shareholder that
he/she represents
or that has
proposed his/her
appointment
Profile
Esther Koplowitz
Romero de Juseu
Degree in Law, she has completed the Senior Business Man-
agement 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 Ap-
pointments 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 the directors Dominum Desga, S.A., Sa-
mede Inversiones 2010, S.L.U., Dominum Dirección y Gestión,
S.A. and the director Alicia Alcocer Koplowitz, have a moth-
er-daughter relationship.
(See Section A.6 of this Report for a description of the relation-
ships between the director and the significant shareholders).
Name or
company name
of the significant
shareholder that
he/she represents
or that has
proposed his/her
appointment
Esther Koplowitz
Romero de Juseu
Name or
company
name of
director
Samede
Inversiones
2010, S.L.U.
(Represented
by Esther
Koplowitz
Romero de
Juseu)
Profile
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 Bar-
celona 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 Po-
lice Orphans Foundation, Légion d’Honneur of the French Re-
public and The Grand Cross of the Civil Order of Environmental
Merit, awarded by the Spanish Council of Ministers.
The representatives of the directors Dominum Desga, S.A., Sa-
mede Inversiones 2010, S.L.U., Dominum Dirección y Gestión,
S.A. and the director Alicia Alcocer Koplowitz, have a moth-
er-daughter relationship.
(See Section A.6 of this Report for a description of the relation-
ships between the director and the significant shareholders).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 15 of 105
_ 718
Name or
company 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
company
name of
director
Alejandro
Aboumrad
González
Profile
Industrial Engineer graduate from the University of Anáhuac
(Mexico). He has worked in subsidiaries and companies relat-
ed 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 Ser-
vicios Medio Ambiente Holding, S.A.U and Vice Chairman of
the Board of FCC and Chairman of its Executive Committee.
(See Section A.6 of this Report for a description of the relation-
ships between the director and the significant shareholders).
Name or
company name
of the significant
shareholder that
he/she represents
or that has
proposed his/her
appointment
Profile
Name or
company
name of
director
Alicia Alcocer
Koplowitz
Dª. Esther Koplowitz
Romero de Juseu
Dominum
Dirección y
Gestión, S.A.U.
(Represented
by Carmen
Alcocer
Koplowitz)
Control Empresarial
de Capitales, S.A.
de C.V.
Graduate in Law from the Francisco de Vitoria University of Ma-
drid. She is a director of FCC, S.A., representing Dominum Di-
rección y Gestión, S.A.U. and a director of Cementos Portland
Valderrivas, S.A., representing Meliloto, S.L.
The representatives of the directors Dominum Desga, S.A., Sa-
mede Inversiones 2010, S.L.U., Dominum Dirección y Gestión,
S.A. and the director Alicia Alcocer Koplowitz, have a moth-
er-daughter relationship.
(See Section A.6 of this Report for a description of the rela-
tionships between the director and the significant shareholders).
Antonio Gómez
García
Control Empresarial
de Capitales, S.A.
de C.V.
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 di-
rector.
She is a director at FCC and a member of its Executive Com-
mittee. 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 Sec-
retary of State for Science, Technology, and Innovation.
She is also a member of the board of the Valderrivas Founda-
tion and the Hispano Judía Foundation.
The representatives of the directors Dominum Desga, S.A., Sa-
mede Inversiones 2010, S.L.U., Dominum Dirección y Gestión,
S.A. and the director Alicia Alcocer Koplowitz, have a moth-
er-daughter relationship.
(See Section A.6 of this Report for a description of the relation-
ships between the director and the significant shareholders).
He is a graduate in Industrial Engineering from the Universidad
Iberoamericana. He has been Managing Director of Grupo Por-
celanite, 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 relation-
ships between the director and the significant shareholders).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 16 of 105
_ 719
Name or
company 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
company
name of
director
Inmobiliaria
AEG, S.A.
de CV
(Represented
by Carlos Slim
Helú)
Juan Rodríguez
Torres
Control Empresarial
de Capitales, S.A.
de C.V.
Profile
Civil Engineer from the National Autonomous University of Mex-
ico (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 Chairman of the Mexican Stock Exchange
and Chairman of the Mexican Association of Brokerage Hous-
es.
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
Chairman 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 relation-
ships 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 Preesforza-
dos 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 relation-
ships between the director and the significant shareholders).
Name or
company 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
company
name of
director
Alfonso Salem
Slim
Profile
He graduated in Civil Engineering from University of Anahuac
in the class of 80-84. Throughout his professional career, Sa-
lem Slim has performed the role of assistant director of Expan-
sion 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 cur-
rently Vice 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 boards of
CARSO Group; IDEAL; CICSA; Inmuebles Carso; ELEMENTIA,
FORTALEZA and Naturgy Mexico.
(See Section A.6 of this Report for a description of the relation-
ships between the director and the significant shareholders).
Total number of proprietary directors
% of the total Board
9
64.29
Observations
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 17 of 105
_ 720
EXTERNAL INDEPENDENT DIRECTORS
Name or company
name of 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 also
founded the financial company N+1 (currently Alantra) and has been a
director of Vidrala, Barón de Ley, 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 Par-
is. 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.
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 Part-
ners. He was Managing Director for Spain and Portugal at Dresdner Klein-
wort, 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.
If so, include a reasoned statement by the Board explaining why it believes that the direc-
tor in question can perform his or her duties as an independent director.
Name or company name of
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:
Name or company
name of director
Reasons
Company, executive
or shareholder
with whom he/
she maintains a
relationship
Profile
Total number of independent directors
% total of the Board
3
21.43
Total number of other external directors
% total of the Board
Observations
Observations
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
Indicate any changes that have occurred during the period in each director’s category:
Name or company
name of director
Change date
Previous category
Current category
–
–
–
–
Observations
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 18 of 105
_ 721
C.1.4 Complete the following table with information relating to the number of female
directors at the close of the past four years, as well as the category of each:
Number of female directors
% of total directors for each category
Year t
Year t-1
Year t-2
Year t-3
Year t
Year t-1
Year t-2
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
0
44.44
44.44
44.44
0
0
0
0
0
0
0
40
0
0
28.57
28.57
28.57
26.66
Observations
–
C.1.5 Indicate whether the company has diversity policies in place in relation to the com-
pany’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 over the year. The specific measures adopted by the
Board of Directors and the Appointments and Remuneration Committee to achieve a bal-
anced 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.j of the Regulations of the Board of Directors lays down the following among the functions
of the Appointments and Remuneration Committee: “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 this purpose, it should set a target
for representation of the under-represented sex on the board and develop guidance on how to achieve
this target”.
In 2019, FCC renewed its commitment to the Diversity Charter for the period 2019-2021, a voluntary 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-discrimination policies, contemplates the
implementation of inclusion policies and non-discrimination programmes at signatory companies.
The different Equality Plans signed by the FCC Group include the different actions included in the so-
called Diversity Charter.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 19 of 105
_ 722
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.j of the Regulations of the Board of Directors lays down the following among the functions
of the Appointments and Remuneration Committee: “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 this purpose, it should
set a target for representation of the under-represented sex on the board and develop guidance on how
to achieve this target”.
The Appointments and Remuneration Committee has not established, to date, specific additional
measures to those contained in Article 38.4.j 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.
The Group has also implemented specific training for female employees to help them gain the necessary
qualifications to qualify for senior management positions in the company. These include programmes
such as: “Promociona” or “Progresa” of the CEOE or within the Escuela de Organización Industrial (EOI).
The different Equality Plans also establish positive discrimination measures in favour of women workers,
in the case of curricular equality.
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:
Explanation of the reasons
In the 2021 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.
In terms of the number of female directors, FCC has four female directors compared to 14 seats on the
Board of Directors.
C.1.7 Explain the conclusions of the nomination committee regarding verification of com-
pliance with the policy aimed at promoting an appropriate composition 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, which exercised the power granted by the shareholders’ agree-
ment dated 25 February 2016. Two other directors were also re-elected at the aforementioned meeting.
On 12 September 2017, the Board of Directors co-opted Pablo Colio Abril as a director and appointed him
as Chief Executive Officer, delegating to him all the delegable powers of the Board. 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.
The Appointments and Remuneration Committee has not, for the time being, established any objectives in
this respect other than the current situation, nor any measures additional to those set out in article 38.4.j) of
the Regulations of the Board of Directors.
As of 31 December 2021, the Board of Directors of FCC has a representation of 28.57 percent of female
directors, with Esther Alcocer Koplowitz as non-executive chairwoman.
C.1.8 If applicable, explain the reasons for the appointment of any proprietary directors
at the request of shareholders with less than a 3% equity interest:
Name or company name of shareholder
–
Reason
–
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 direc-
tors have been appointed, have not been met. If applicable, explain the reasons that they
have not been addressed:
Yes
No
Name or company name of shareholder
Explanation
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 20 of 105
C.1.9 Indicate the powers, if any, delegated by the Board of Directors, including those
relating to the option of issuing or re-purchasing shares, to directors or board com-
mittees:
Name or company name of director or committee
Brief description
Pablo Colio Abril
Executive Committee
All except those that are non-delegable
All except those that are non-delegable
Name or company
name of director
Alejandro Aboumrad
González
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 companies
that are part of the listed Company’s group:
Antonio Gómez
García
_ 723
Entrusted
with
executive
functions?
Company name of the Group entity
Position
Cementos Portland Valderrivas, S.A.
FCC Aqualia, S.A.
FCC Servicios Medio Ambiente Holding
S.A.U.
Representative of
Inmobiliaria AEG,
S.A.
Director and
Chairman of the
Board of Directors
No
No
Chairman
Yes
FCC Américas
Alternate director
No
Name or company
name of director
Alicia Alcocer
Koplowitz
Gerardo Kuri
Kaufmann
Company name of the Group entity
Position
Cementos Portland Valderrivas S.A.
Director
Realia Business, S.A.
Cementos Portland Valderrivas
Realia Business
Director
Chief Executive
Officer
Chief Executive
Officer
Juan Rodríguez
Torres
Cementos Portland Valderrivas
Director
FCC Aqualia
Realia Business
Director
Non-executive
chairman
Álvaro Vázquez de
Lapuerta
Cementos Portland Valderrivas
Director
Entrusted
with
executive
functions?
No
No
Yes
Yes
No
No
No
No
Pablo Colio Abril
FCC Aqualia, S.A.
FCC Construcción, S.A.
FCC Environment (UK) limited
Director, Member
of the Audit And
Control Committee,
Member of the
Investment
Committee
and Member of
the Regulatory
Compliance
Committee.
Chairman
Administrator
FCC Medio Ambiente Reino Unido, S.L.U Vice Chairman
FCC Medio Ambiente, S.A.U
Chairman
FCC Servicios Medio Ambiente Holding,
S.A.U.
Vice Chairman
Guzman Energy O&M, S.L.
FCC Austria Abfall Service AG
Chairman
Chairman
Observations
No
Yes
Yes
Yes
Yes
Yes
Yes
No
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 21 of 105
_ 724
C.1.11 List the positions of director, administrator or representative thereof, held by di-
rectors or representatives of directors who are members of the company’s board of
directors in other entities, whether or not they are listed companies:
Name or company
name of director
Company name of the listed or non-
listed entity
Manuel Gil Madrigal
Barón de Ley, S.A.
Pablo Colio Abril
Tasmania Gestión, S.L.
Tasmania Inmuebles, S.L.
Carso Infraestructura y Construcción
S.A.B. de C.V. (CISCA)
Cafig Constructores S.A. de C.V.
Constructora Terminal Valle de Mexico
S.A. de C.V.
Position
Director
Observations
Remunerated
Joint director
Chairman-chief
executive officer
Remunerated
Director
Remunerated
Director
Director
Álvaro Vázquez de
Lapuerta
Esther Koplowitz
Romero de Juseu
Servicios Terminal Valle de Mexico, S.A.
Director
Servicios CTVM S.A. de C.V.
Finver Inversiones 2020, S.L.
Soinmob Inmobiliaria Española
Dominum Dirección y Gestión S.A.
Libra Fotovoltaica S.L.
Diseño Especializado en Organización
de Recursos, S.L.
Ordenamientos Ibéricos, S.A.
Dominum Desga S.A.
Ejecución Organización de
Recursos, S.L.
Samede Inversiones 2010, S.L.
Nueva Samede 2016, S.L.
Fundación Esther Koplowitz
Director
Director
Director
Director
Sole
administrator
Sole
administrator
Sole
administrator
Sole
administrator
Sole
administrator
Sole
administrator
Sole
administrator
Chairwoman
Name or company
name of director
Company name of the listed or non-
listed entity
Position
Observations
Esther Alcocer
Koplowitz
Soinmob Inmobiliaria Española, S.A.
Director
EAC Inversiones Corporativas, S.L.
Joint director
EAC Medio Ambiente S.L.
Meliloto S.L.
Joint director
Joint director
Diseño Especializado en Organización
de Recursos, S.L.
Joint Powers of
Attorney
Ordenamientos Ibéricos, S.A.
Dominum Desga S.A.
Ejecución Organización de
Recursos, S.L.
Samede Inversiones 2010, S.L.
Nueva Samede 2016, S.L.
Joint Powers of
Attorney
Joint Powers of
Attorney
Joint Powers of
Attorney
Joint Powers of
Attorney
Joint Powers of
Attorney
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 22 of 105
_ 725
Name or company
name of director
Company name of the listed or non-
listed entity
Alicia Alcocer
Koplowitz
Soinmob Inmobiliaria Española, S.A.
EAC Inversiones Corporativas, S.L.
EAC Medio Ambiente S.L.
Meliloto S.L.
Diseño Especializado en Organización
de Recursos, S.L.
Ordenamientos Ibéricos, S.A.
Dominum Desga S.A.
Ejecución Organización de
Recursos, S.L.
Samede Inversiones 2010, S.L.
Nueva Samede 2016, S.L.
Position
Director
Joint director
Joint director
Joint director
Joint Powers of
Attorney
Joint Powers of
Attorney
Joint Powers of
Attorney
Joint Powers of
Attorney
Joint Powers of
Attorney
Joint Powers of
Attorney
Carmen Alcocer
Koplowitz
EAC Inversiones Corporativas, S.L.
Joint director
EAC Medio Ambiente S.L.
Meliloto S.L.
Diseño Especializado en Organización
de Recursos, S.L.
Ordenamientos Ibéricos, S.A.
Dominum Desga S.A.
Ejecución Organización de Recursos,
S.L.
Samede Inversiones 2010, S.L.
Nueva Samede 2016, S.L.
Joint director
Joint director
Joint Powers of
Attorney
Joint Powers of
Attorney
Joint Powers of
Attorney
Joint Powers of
Attorney
Joint Powers of
Attorney
Joint Powers of
Attorney
Observations
Name or company
name of director
Company name of the listed or non-
listed entity
Alfonso Salem Slim
Impulsora del Desarrollo y el Empleo en
América Latina, S.A.B. de C.V. (IDEAL)
Grupo Carso, S.A.B. de C.V.
Carso Infraestructura y Construcción,
S.A. de C.V. (CICSA)
Elementia Materiales, S.A.B. de C.V.
Fortaleza Materiales, S.A.B. de C.V.
Naturgy México, S.A. de C.V.
Jezzine Uno, S.L.U.
Inmuebles Carso, S.A. de C.V. y sus
subsidiarias
Centro Histórico de la Ciudad de
México, S.A. de C.V.
Observations
Remunerated
Remunerated
Remunerated
Remunerated
Remunerated
Remunerated
Position
Director
Director
Director
Director
Director
Director
Administrator
Director and/
or Managing
Director
Director
Juan Rodríguez Torres Calzado Tecnico S.A. de C.V.
Representative
Remunerated
Calzado Rohcal S.A. de C.V.
Representative
Remunerated
Calzado y Componentes S.A. de C.V.
Representative
Remunerated
Inmobiliaria Inro S.A. de C.V.
Representative
Remunerated
Inmobiliaria Calro S.A. de C.V.
Representative
Remunerated
Inmobiliaria Proii S.A. de C.V.
Representative
Remunerated
Henri Proglio
Dassault
ATALIAN
ABR Management
Director
Director
Director
Remunerated
Remunerated
Remunerated
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 23 of 105
_ 726
Indicate, where appropriate, the other remunerated activities of the directors or directors’
representatives, whatever their nature, other than those indicated in the previous table.
C.1.14 Identify members of senior management who are not executive directors, and indi-
cate the total remuneration accrued in their favour during the business year:
Identity of the director or representative
Other paid activities
Álvaro Vázquez de Lapuerta
Meridia Partners S.L. - partner
Henri Proglio
Natixis - censeur
Observations
Name or company name
Marcos Bada Gutiérrez
Felipe B. García Pérez
Miguel Ángel Martínez Parra
Position(s)
Managing Director of Internal Audit
General secretary
Managing Director of Administration and
Finance
Félix Parra Mediavilla
Managing Director of Aqualia
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, identi-
fying, where appropriate, where this provision is regulated:
Number of women in senior management 0
Position(s)
Percentage of total senior management 0%
–
Total remuneration of senior management (thousands of euros)
1,908.15
Yes
No
Explanation of the rules and identification of the document where this is regulated
Observations
–
C.1.15 Indicate whether there has been any change in the Board’s regulation during the
business year:
C.1.13 Indicate the remuneration received by the Board of Directors as a whole for the
following items:
Yes
No
Remuneration accruing in favour of the Board of Directors in the financial year (thousands
of euros)
2,458
Description of the changes
Funds accumulated by current directors for long-term savings systems with consolidated
economic rights (thousands of euros)
Funds accumulated by current directors for long-term savings systems with
unconsolidated economic rights (thousands of euros)
0
0
Pension rights accumulated by former directors (thousands of euros)
3,066
Observations
–
The Regulations of the Board of Directors were updated in response to: (i) the reform of the Corporate
Enterprises Act implemented by Law 5/2021 of 12 April, which amends the revised text of the Corporate
Enterprises Act, approved by Royal Legislative Decree 1/2010 of 2 July, and other financial regulations,
with regard to the promotion of long-term shareholder involvement in listed companies, (ii) Law 11/2018
of 28 December, which amends the Commercial Code, the revised text of the Corporate Enterprises Act
approved by Royal Legislative Decree 1/2010 of 2 July, and Law 22/2015 of 20 July, on auditing of ac-
counts, with regard to non-financial information and diversity, and (iii) and the partial reform of the CNMV’s
Code of Good Governance of 26 June 2020 (CBG); also in line with the Technical Guide 1/2016 on good
practices for the application of the “comply or explain” principle.
Accordingly, on 29 June 2021, Board Resolution 27/2021 approved the amendment of the Regulations
of the Board of Directors.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 24 of 105
_ 727
C.1.16 Specify the procedures for selection, appointment, re-election and removal of direc-
tors. List the competent bodies, steps to follow and criteria applied in each proce-
dure.
The General Shareholders’ Meeting is responsible for the appointment and removal of directors. Directors
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 remov-
al 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 Regulations of the Board of Directors.
Chapter IV of the Regulations 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 consider-
ation by the General 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
competence 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 merits of the proposed candidate, which
shall be attached to the minutes of the General Shareholders’ Meeting or the Board meeting. 3. From the
moment at which the announcement of the General Shareholders’ Meeting is published, the Board of Direc-
tors shall publish, on its website, the following information on the persons proposed for the appointment or
ratification as Directors: (i) professional and biographical profile; (ii) other Boards of Directors to which he/she
belongs, whether or not they are listed companies, and also on any other remunerated activities of any kind; (iii)
indication of the category of director to which they belong, indicating, in the case of proprietary directors, the
shareholder at whose proposal they have been appointed, re-elected or ratified or with whom they are related;
(iv) date of first appointment as a Director of the Company, and also of subsequent re-elections; (v) shares of
the Company and derivative financial instruments having as their underlying the shares of the Company, held
either by the Director whose position is to be ratified or re-elected or by the candidate for the first appointment
the reports and proposals of the com-
as Director. This information shall be kept up to date; and (vi) (vi)
petent bodies in each case. 4. The Secretary of the Board of Directors shall provide each new Director with
a copy of the Bylaws, these Regulations, the Code of Ethics of the FCC Group, the Internal Regulations of
Conduct in the Securities Market, the latest financial statements and management reports, both individual
and consolidated, approved by the General Shareholders’ Meeting, the audit reports corresponding thereto
and the latest economic and financial information sent to the markets. They shall also be provided with the
identification of the current account auditors and their representatives. 5. 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 director. 6. 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.
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 Shareholders’ 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’ Meeting, the Ap-
pointments 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 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 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. 3. In particular, Directors must inform the Board
and, if appropriate, resign, when situations arise that affect them, whether or not related to their actions in
the Company itself, that may damage the credit and reputation of the Company and, in particular, of any
criminal proceedings in which they are under investigation, and also of the procedural developments thereof.
In any case, having been informed or otherwise having become aware of any of the situations mentioned in
the preceding paragraph, the Board shall examine the case as soon as possible and, having regard to the
specific circumstances, shall decide, after a report from the Appointments and Remuneration Committee,
whether or not to take any action, such as opening an internal investigation, requesting the resignation of
the Director or proposing his or her dismissal. This shall be reported in the Annual Corporate Governance
Report, unless there are special circumstances that justify it, which shall be recorded in the minutes, with-
out prejudice to the information that the Company must disclose, if appropriate, when the corresponding
measures are adopted. 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, just
cause shall be deemed to exist when the Director takes up new posts or incurs new obligations that prevent
him/her from devoting the necessary time to the performance of the duties inherent to the post of Director,
has failed to comply with the duties inherent to his/her post or has incurred in any of the circumstances
described in article 6.2.a) of these Regulations that prevent his/her 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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 25 of 105
_ 728
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 share capital. 5. When, either by resignation or by resolution of the General Meeting, a Director leaves
office before the end of his term of office, he shall sufficiently explain the reasons for his resignation or, in the
case of non-executive Directors, his views on the reasons for the removal by the General Meeting, in a letter
to be sent to all members of the Board. In addition, and notwithstanding the disclosure in the Annual Cor-
porate Governance Report, to the extent relevant for investors, the Company shall publish the resignation
as soon as possible, including sufficient reference to the reasons or circumstances provided by the Director.
In particular, should a director’s resignation be due to the adoption by the Board of significant or reiterated
decisions about which the director has expressed serious reservations and as a result chooses to resign, the
letter of resignation addressed to the other members shall expressly state this circumstance.
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 2021, 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 as-
sisted, where appropriate, by an external consultant, regarding the functioning and com-
position of the Board and its committees and any other area or aspect that has been
subject to assessment.
Description of evaluation process and evaluated areas
The Board of Directors of Fomento de Construcciones y Contratas, S.A. issued a report evaluating the
quality and efficiency of its operation, and that of its Committees, during financial year 2021, in order
to comply with the duty imposed by article 34. 9 of the Regulations of the Board of Directors, through
which recommendation 36 of the Good Governance Code of Listed Companies, article 529 nonies of the
Corporate Enterprises Act and the recommendations of CNMV technical guide 3/2017 published in June
2017 and CNMV technical guide 1/2019 published in February 2019 are incorporated.
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 23 February 2022. In preparing 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 2021 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 statutory
precepts, the Regulations 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 ex-
ternal consultant, of the business relationships that the consultant or any company
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 26 of 105
_ 729
C.1.19 Indicate the cases in which directors are required to resign.
Consolidated text of the Board of Directors’ Regulations following the amendments of 29 June 2021 and
entered in the Companies Registry in July 2021.
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) 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.
3. In particular, Directors must inform the Board and, if appropriate, resign, when situations arise that
affect them, whether or not related to their actions in the Company itself, that may damage the credit
and reputation of the Company and, in particular, of any criminal proceedings in which they are under
investigation, and also of the procedural developments thereof.
In any case, having been informed or otherwise having become aware of any of the situations mentioned
in the preceding paragraph, the Board shall examine the case as soon as possible and, having regard
to the specific circumstances, shall decide, after a report from the Appointments and Remuneration
Committee, whether or not to take any action, such as opening an internal investigation, requesting the
resignation of the Director or proposing his or her dismissal. This shall be reported in the Annual Corpo-
rate Governance Report, unless there are special circumstances that justify it, which shall be recorded in
the minutes, without prejudice to the information that the Company must disclose, if appropriate, when
the corresponding measures are adopted.
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, just cause shall be deemed
to exist when the Director takes up new posts or incurs new obligations that prevent him/her from devoting
the necessary time to the performance of the duties inherent to the post of Director, has failed to comply
with the duties inherent to his/her post or has incurred in any of the circumstances described in article
6.2.a) of these Regulations that prevent his/her appointment as an independent Director. The removal of
independent directors may also be proposed as a result of takeovers, mergers or similar corporate trans-
actions 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 share
capital.
5. When, either by resignation or by resolution of the General Meeting, a Director leaves office before the end
of his term of office, he shall sufficiently explain the reasons for his resignation or, in the case of non-ex-
ecutive Directors, his views on the reasons for the removal by the General Meeting, in a letter to be sent
to all members of the Board. In addition, and notwithstanding the disclosure in the Annual Corporate
Governance Report, to the extent relevant for investors, the Company shall publish the resignation as
soon as possible, including sufficient reference to the reasons or circumstances provided by the Director.
In particular, should a director’s resignation be due to the adoption by the Board of significant or reiterated
decisions about which the director has expressed serious reservations and as a result chooses to resign,
the letter of resignation addressed to the other members shall expressly state this circumstance.
C.1.20 Are super majorities, other than those provided for by law, required for any type of
decision?
Yes
No
If applicable, describe the differences.
Description of differences
Articles 4.6 and 34.10 stipulate that amendments to the Regulations of the Board must be agreed by an
absolute majority vote of all the members of the Board.
Article 26.4 of the Regulations of the Board of Directors, regarding the powers of information and inspec-
tion of directors, establishes that the information they have requested may not be denied in any case
when the request has been supported by an absolute majority of the members of the Board.
Article 27.3 of the Regulations of the Board of Directors, on advice from external experts, provides that
in the event of a request for expert assistance by any of the Committees of the Board of Directors, it may
only be denied when the majority of the Board considers that the circumstances set forth in Article 27.2
are not met.
Finally, article 19.2.d) stipulates that directors must tender their resignation to the Board of Directors and,
if the latter deems it appropriate, tender their resignation if they are seriously reprimanded by the Board
for having breached their obligations as directors, following a proposal or report from the Appointments
and Remuneration Committee, or when their remaining on the Board could jeopardise the Company’s
credit and reputation, when the Board itself so requests by a majority of at least two thirds of its members.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 27 of 105
_ 730
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
Description of the requirements
C.1.22 Indicate whether the bylaws or the Regulations of the Board establish a limit on
the age of directors:
C.1.24 Indicate whether the Bylaws or Regulations 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.
Articles 21.2.b) and 34.8 stipulate that when there is to be any non-attendance, the director must grant a
proxy with instructions. The Chairman shall decide, in case of doubt, on the validity of proxies granted by
Directors who do not attend the meeting.
There are no formal processes for proxy voting in the Board of Directors beyond those described above
and no limitations as to the categories in which proxies can be granted in addition to the legal ones.
Yes
No
C.1.25 Indicate the number of meetings held by the Board of Directors during the year.
Furthermore, indicate, where appropriate, the times that the Board has met with-
out the presence of the Chairman. In this calculation, proxies granted with specific
instructions shall be considered as attendance.
Age limit
Chairman
Chief Executive Officer
Director
Number of Board meetings
Number of board meetings held without the chairman's presence
11
0
Observations
Observations
C.1.23 Indicate whether the articles of incorporation or Board regulations establish any
term limits for independent directors other than those required by law or any other
additional requirements that are stricter than those provided by law:
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
–
Yes
No
Observations
Additional requirements and/or maximum number of
mandates.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 28 of 105
_ 731
Indicate the number of meetings held by each board committee during the year:
C.1.27 Indicate whether the individual and consolidated annual accounts submitted to the
Number of executive committee meetings
Number of audit committee meetings
Number of appointments and remuneration committee meetings
Number of committee meetings ______
10
10
6
Observations
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 annual accounts for their preparation by the Board:
Name
Pablo Colio Abril
Miguel Martínez Parra
Position
Chief Executive Officer
Managing Director of Administration and Finance
C.1.26 Indicate the number of meetings held by the Board of Directors during the year
Juan José Drago Masiá
Managing Director of Administration
with member attendance data:
Observations
Number of meetings at which at least 80% of directors were in attendance
% of face-to-face attendance divided by total votes during the 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 year
10
90.26%
0
90.26%
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.
Observations
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, discussing with the Company’s
external auditor any significant weaknesses in the internal control system detected in the course of the audit
and reviewing the process of preparing the economic and financial information periodically published by the
FCC Group, checking compliance with regulatory requirements, the appropriate delimitation of the scope
of consolidation and the correct application of generally accepted accounting principles. This function is
particularly important in the case of annual reporting, so that prior to the preparation of the annual accounts
by the Board of Directors, the Audit and Compliance Committee examines these accounts in detail and
requests the participation of the external auditor in the Committee meeting to present the conclusions of
its review work.
Thus, once prepared by the Board, the external auditor’s report will not contain any reservations.
C.1.29 Is the secretary of the board also a director?
Yes
No
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 29 of 105
_ 732
If the secretary does not have director status, fill in the following table:
Name or company name of the secretary
Francisco Vicent Chuliá
Representative
_
Observations
c) Each year, prior to the issuance of the account auditing report, issuing 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 activi-
ties.”
Likewise, the FCC Group has an internal procedure that must be applied to all controlled companies,
which establishes that all services other than the auditing of accounts that are provided by auditors
require an independence analysis and prior approval as a requirement for their contracting.
C.1.30 Indicate the specific mechanisms established by the Company to preserve the in-
dependence 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.
C.1.31 Indicate whether during the business year, the Company has changed its external
auditor. If applicable, identify the incoming and outgoing auditor:
To this end, Article 37. 4 of the Regulations 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:
b) Serve as a channel of communication between the Board of Directors and the Company’s external audi-
tor, assessing the results of each audit. The external auditor shall also: […] (iv) establish the appropriate
relations with the external auditor to receive information on those matters that could threaten its independ-
ence, for examination by the Committee, and any other matters related to the process of carrying out the
auditing of accounts and, where appropriate, the authorisation of services other than those prohibited,
in the terms contemplated in the regulations governing the auditing of accounts on the independence
regime, and also those other communications contemplated in the legislation on auditing of accounts
and in the auditing standards; (v) ensuring the independence of the external auditor, particularly by putting
appropriate measures in place: 1) to ensure that the engagement of advisory and consultancy services
with said auditor or companies in its group does not entail a risk to its independence, for which purpose
the Committee shall request and receive annually from said auditor a declaration of its independence in
relation to the Company or entities directly or indirectly related to it, as well as detailed and individualised
information on additional services of any kind rendered and the corresponding fees received from these
entities by the external auditor or by the persons or entities related to it, in accordance with the provisions
of the regulations governing the auditing of accounts; 2) for the Company to notify the CNMV of the
change of auditor, accompanied by a statement of any disagreements with the outgoing auditor and, if
any, their content, and, in the event of resignation of the external auditor, to examine the circumstances
giving rise to such resignation; and 3) ensure that the Company and the external auditor comply with
current rules on the provision of non-audit services, limits on the concentration of the auditor’s business
and, in general, other rules on auditor independence, and ensure that the external auditor’s remuneration
for its work does not compromise its quality or independence; and (vi) encourage the Company’s auditor
to assume responsibility for the audits of the companies comprising the Group.
Yes
No
Outgoing auditor
Deloitte, S.L.
Incoming auditor
Ernst & Young, S.L.
The General Shareholders’ Meeting approved at its meeting of 2 June 2020, at the proposal of the Audit
and Control Committee, the appointment of Ernst&Young, S.L. as auditors of FCC and its consolidated
group for the financial years 2021, 2022 and 2023.
Observations
If there were any disagreements with the outgoing auditor, explain their content:
Yes
No
Explanation of disagreements
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 30 of 105
_ 733
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:
C.1.34 Indicate the number of business years that the current audit firm has been contin-
uously auditing the Company’s individual and/or consolidated financial statements.
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:
Yes
No
Amount invoiced for non-audit
services (thousands of euros)
Value of work other than audits/
Value of audit works (in %)
Company
Group companies
0
0.00
9
0.26
Total
9
0.24
Observations
Number of uninterrupted years
Number of exercises audited by the current audit firm/
Number of years that the Company or its Group have
been audited (in %)
Observations
Individual
Consolidated
1
1
Individuales
Consolidadas
3.13%
3.13%
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 Commit-
tee to explain the content and scope of these reservations or qualifications.
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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 31 of 105
_ 734
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:
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
Describe the procedure
Regulations 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
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 re-
quest 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”.
“Article 30. The Chairman. Functions
[…]
3. The Chairman, as the maximum person responsible for the management and efficient functioning of
the Board of Directors, [...] shall ensure, with the collaboration of the Secretary, that the Directors receive
sufficient information in advance to deliberate on the items on the Agenda […].”
Yes
No
Explain the rules
Regulations of the Board of Directors.
Article 25. Information duties of Directors.
Directors shall inform the FCC Appointments and Remuneration Committee, through the Corporate Re-
sponsibility 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:
[…]
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.
3. In particular, Directors must inform the Board and, if appropriate, resign, when situations arise that
affect them, whether or not related to their actions in the Company itself, that may damage the credit
and reputation of the Company and, in particular, of any criminal proceedings in which they are under
investigation, and also of the procedural developments thereof.
In any case, having been informed or otherwise having become aware of any of the situations men-
tioned in the preceding paragraph, the Board shall examine the case as soon as possible and, having
regard to the specific circumstances, shall decide, after a report from the Appointments and Remu-
neration Committee, whether or not to take any action, such as opening an internal investigation,
requesting the resignation of the Director or proposing his or her dismissal. This shall be reported in
the Annual Corporate Governance Report, unless there are special circumstances that justify it, which
shall be recorded in the minutes, without prejudice to the information that the Company must disclose,
if appropriate, when the corresponding measures are adopted.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 32 of 105
_ 735
Explain the rules
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, just cause shall
be deemed to exist when the Director takes up new posts or incurs new obligations that prevent him/
her from devoting the necessary time to the performance of the duties inherent to the post of Director,
has failed to comply with the duties inherent to his/her post or has incurred in any of the circumstances
described in article 6.2.a) of these Regulations that prevent his/her 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 share capital.
5. When, either by resignation or by resolution of the General Meeting, a Director leaves office before the
end of his term of office, he shall sufficiently explain the reasons for his resignation or, in the case of
non-executive Directors, his views on the reasons for the removal by the General Meeting, in a letter
to be sent to all members of the Board. In addition, and notwithstanding the disclosure in the Annual
Corporate Governance Report, to the extent relevant for investors, the Company shall publish the
resignation as soon as possible, including sufficient reference to the reasons or circumstances provid-
ed by the Director. In particular, should a director’s resignation be due to the adoption by the Board of
significant or reiterated decisions about which the director has expressed serious reservations and as a
result chooses to resign, the letter of resignation addressed to the other members shall expressly state
this circumstance.
C.1.37Indicate, 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 perfor-
mance 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
Observations
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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 33 of 105
_ 736
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 Company 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 (hereinafter
“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 under 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 share capital 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 Companies 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 share capital
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 Pur-
chase Option was subject to the condition precedent which, cumulatively, results in the following: (i) the
authorization 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 Martinez 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 36.2 of Royal Decree 1066/2007, of 27 July, the National Securities Market Commission communi-
cated, through a relevant fact, that the takeover proposed by Control Empresarial de Capitales, S.A. de C.V.
involving 100% of the share capital 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 share capital
of Fomento de Construcciones y Contratas, S.A.
On 2 August 2021, the CNMV was informed by means of a Notification of Significant Shareholdings that Fin-
ver Inversiones 2020, S.L.U. indirectly owns 7.005% of FCC. This company is 100% owned by Inmobiliaria
AEG, S.A. de C.V. which in turn is controlled by Carlos Slim Helú.
On 3 August 2021, the company Nueva Samede 2016, S.L.U. informed the CNMV by means of a Notifi-
cation of Significant Shareholdings that it holds 4.540% of FCC directly. This company is wholly owned by
Esther Koplowitz Romero de Juseu.
On 3 August 2021, the CNMV was informed by means of a Notification of Significant Shareholdings that
Esther Koplowitz Romero de Juseu directly controls 0.033% of FCC and indirectly controls 4.540% of FCC,
through Nueva Samede 2016, S.L.U.
On 4 August 2021, the CNMV was informed by means of a Notification of Significant Shareholdings that
CEC directly and indirectly holds exclusively 69.66% of the voting rights of FCC. Dominum Dirección y
Gestión, S.A. owns 8.462% of FCC and is 100% controlled by Control Empresarial de Capitales, S.A. de
C.V. (CEC).
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
2
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:
– 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 contin-
ued 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 compensa-
tion 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).
b) The amount resulting from multiplying 7 days wages by the number of years
that have elapsed from 12 September 2017 until the contract expires.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 34 of 105
_ 737
Type of beneficiary
Description of the agreement
C.2
Committees of the Board of Directors
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, includ-
ing 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 exec-
utive.
As at 31 December 2021, the General Secretary 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 contracts
must be communicated and/or approved by the corresponding bodies of Company or its
Group. If so, specify the procedures, expected cases and the nature of the bodies respon-
sible for their approval or communication:
Body authorising the clauses
X
Board of Directors
General Shareholders’
Meeting
Are the clauses notified to the General Shareholders’ Meeting?
YES
X
NO
Observations
C.2.1 Provide details of all the Committees of the Board of Directors, their members and
the proportion of executive, proprietary, independent and other external directors
who serve on them:
EXECUTIVE COMMITTEE
Name
Alejandro Aboumrad González
Dominum Desga, S.A. (represented by Esther
Alcocer Koplowitz)
Alicia Alcocer Koplowitz
Gerardo Kuri Kaufmann
Juan Rodríguez Torres
Pablo Colio Abril
% of executive directors
% of proprietary directors
% of independent directors
% of other external directors
Position
Chairman
Category
External proprietary director
Voting member
External proprietary director
Voting member
External proprietary director
Voting member
Executive director
Voting member
External proprietary director
Voting member
Executive director
33.33
66.67
0
0
Observations
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 35 of 105
_ 738
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
year and how it have exercised each of the functions attributed in practice, whether by
law, in the Bylaws or in other corporate agreements.
Regulations 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 exception of
those whose competence is reserved by Law, the Bylaws or these Rules. In particular, the Executive
Committee shall be responsible for deciding on investments, divestments, credits, loans, lines of guar-
antee or surety or any other financial facility, the unit amount of which does not exceed the figure estab-
lished in Article 31.3 of these Regulations, unless otherwise indicated in the content of the delegation
granted by the Board. Furthermore, the Executive Committee may exercise, for duly justified reasons of
urgency, the powers attributed to the Board of Directors, in accordance with Article 8 of these Rules. 2.
The Board of Directors, following a report from the Appointments and Remuneration Committee, shall
appoint the Directors to sit on the Executive Committee. 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 members 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 extraordinary basis whenever required on account of the company’s corporate interests. 7. The
Executive Committee shall be convened by its Chairman, on his own initiative or when requested by at
least two (2) of its members, by e-mail or any other means that allows accreditation of receipt, addressed
to each of its members at least forty-eight (48) hours prior to the date of the meeting, although it may
be convened 24 (twenty-four) hours prior to the date and time of the meeting for reasons of urgency, in
which case, the Agenda of the meeting shall be limited to the points that gave rise to the urgency. 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 vote. 8. In the absence of
the Chairman of the Executive Committee or if he or she is unable 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
or her position the longest and, in the event of a tie, the oldest in age. 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 constituted when 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 Com-
mittee’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 30
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 23 January 2022, a report was issued on the functioning of the Committee and
the performance of its duties in 2021, concluding that the Executive Committee responsibly assumes
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.
The Committee met ten times during financial year 2021, and with the appropriate frequency for the
fulfilment of its functions.
The Executive Committee is not attributed or delegated any other functions not listed in section C.1.9.
With regard to the most important initiatives undertaken by the aforementioned Committee, a total of 35
agreements were adopted during these meetings, which dealt with the approval of the self-assessment
report of the Executive Committee for financial year 2020 and authorisations for: the sale of company
shares, debt capitalisations, offsetting of losses, share purchases, reduction of share capital, conversion
of subordinated loan capital, decisions on organisational charts, dissolution and liquidation of compa-
nies, simplification of intragroup claims, reorganisation of sub-groups, exercise of pre-emptive share
purchase rights and authorisation of subleases, among other matters.
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
Observations
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 36 of 105
_ 739
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 or-
ganisation 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.
Regulations of the Board of Directors.
Article 37. Audit and Control Committee
1. The Board of Directors of FCC shall set up a permanent Audit and Control Committee, without executive
functions and with information, advisory and proposal-making powers within its scope of action, which
shall be composed 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 accounting, auditing
and risk management, both financial and non-financial, with all of its members being non-executive
Directors and the majority of them being independent. The mandate of the members of the Committee
shall not exceed their mandate as directors, without prejudice to them being re-elected indefinitely, inso-
far as they remain directors.
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.
2. As a whole, the members of the Committee shall have relevant technical knowledge with regard to the
activity sector of the Company. The Committee shall appoint the Chairman from among the independent
Directors, and may also elect a Vice-Chairman. The duration of these positions may not exceed four (4)
years or their terms of office as members of the Committee, and they may be re-elected after at least one
year has elapsed since they left the position. The Audit and Compliance Committee shall appoint a Sec-
retary and, where appropriate, a Vice-Secretary, who may not be Directors, who shall assist the Chair-
man and shall ensure the smooth running of the Committee, taking care to duly record the proceedings
of the meetings, the content of the deliberations and the resolutions adopted in the minutes. Minutes of
each meeting shall be drawn up by the Secretary or acting Secretary and signed by the Secretary of the
Commission with the approval of the Chairman.
3. 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.
4. The primary function 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 eco-
nomic 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) Reporting to the General Shareholders’ Meeting on issues arising in relation to matters within the
Committee’s competence and, in particular, on the outcome of the audit, explaining how the audit
has contributed to the integrity of the financial information and the role the Committee has played in
this process.
b) Serving 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) discus 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 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 appro-
priate relations with the external auditor to receive information on those matters that could threaten
its independence, for examination by the Committee, and any other matters related to the process
of carrying out the auditing of accounts and, where appropriate, the authorisation of services other
than those prohibited, in the terms contemplated in the regulations governing the auditing of accounts
on the independence regime, and also those other communications contemplated in the legislation
on auditing of accounts and in the auditing standards; (v) ensuring the independence of the external
auditor, particularly by putting appropriate measures in place: 1) to ensure that the engagement of
advisory and consultancy services with the external auditor or companies in its Group does not entail
a risk to its independence, for which purpose the Committee shall request and receive annually from
the external auditor a declaration of its independence in relation to the Company or entities directly or
indirectly related thereto, as well as detailed and individualised information on additional services of
any kind rendered and the corresponding fees received from these entities by the external auditor or
by persons or entities related thereto, in accordance with the provisions of the regulations governing
the auditing of accounts; 2) for the Company to notify the CNMV of the change of auditor, accompa-
nied by a statement of any disagreements with the outgoing auditor and, if any, their content, and,
in the event of resignation of the external auditor, to examine the circumstances giving rise to such
resignation; 3) ensure that the Company and the external auditor comply with current rules on the pro-
vision of non-audit services, limits on the concentration of the auditor’s business and, in general, other
rules on auditor independence, and ensure that the external auditor’s remuneration for its work does
not compromise its quality or independence; and (vi) encourage the Company’s auditor to assume
responsibility for the audits of the companies comprising the Group.
c) Each year, prior to the issuance of the account auditing report, issuing 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) Supervising the Internal Audit unit of the Company that ensures the proper functioning of the informa-
tion and internal control systems and that will functionally report to the Chairman of the Committee,
with the person responsible for the Internal Audit function being obliged to submit to the Committee,
for its approval by it, its annual work plan, to inform it directly of its execution, including possible inci-
dents and limitations to the scope that may arise in its development, the results and the follow-up of its
recommendations, as well as to submit to it at the end of each financial year a report on its activities.
The Committee should ensure that its activity is primarily focused on relevant risks (including reputa-
tional risks).
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 37 of 105
_ 740
e) Supervising the internal risk management and control unit, which shall have at least the following func-
tions: (i) ensure the proper functioning of the risk control and management systems and, in particular,
that all significant risks affecting the Company are identified, managed and adequately quantified; (ii)
actively participate in the development of risk strategy and major risk management decisions; and (iii)
ensure that risk management and control systems adequately mitigate risks within the framework of
the policy defined by the Board of Directors.
f) Supervise and analyse the effectiveness of the Company’s internal control and the risk control and
management policy approved by the Board of Directors, ensuring that it identifies or determines at
least: (i) the different types of risks faced by the Company (inter alia, operational, technological, le-
gal, social, environmental, political and reputational risks, including corruption-related risks), including
financial or economic risks, contingent liabilities and other off-balance sheet risks; (ii) A tiered risk
management and control model; (iii) the level of risk that the Company considers acceptable; (iv) the
measures envisaged to mitigate the impact of the identified risks, should they materialise; and (v) the
information and internal control systems to be used to control and manage these risks, including
contingent liabilities or off-balance sheet risks, and submit it to the Board for approval.
g) Supervising 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 sub-
mit 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, informing the Board of Directors, before the adoption by the latter of the fol-
lowing resolutions: (i) the financial information and the management report, which shall include, where
appropriate, the mandatory non-financial information that the company must periodically disclose,
ensuring that the interim accounts are drawn up under the same accounting criteria as the annual
accounts and, to this end, consider the appropriateness of a limited review by the company’s external
auditor; and (ii) the creation or acquisition of shares in special purpose vehicles or entities domiciled
in countries or territories considered tax havens, and also any other transactions or operations of a
similar nature which, due to their complexity, could undermine the transparency of the FCC Group.
h) Ensuring that the annual financial statements that the Board of Directors submits to the General
Shareholders’ Meeting are drawn up in accordance with accounting regulations. Whenever the auditor
has included a qualification in its audit report, the Chairman of the Audit and Compliance Committee
shall clearly explain at the General Shareholders’ Meeting the opinion of the Committee on its content
and scope, and a summary of such opinion shall be made available to the shareholders at the time of
publication of the notice of the General Shareholders’ Meeting, together with the rest of the proposals
and reports of the Board, together with the rest of the proposals and reports of the Board.
i) In relation to information systems and internal control: (i) supervise and assess the preparation process
and the integrity of the financial and non-financial information relating to the Company and, where
appropriate, its Group, reviewing compliance with regulatory requirements, the appropriate delimita-
tion of the scope of consolidation and the correct application of accounting criteria; (ii) supervise and
periodically evaluate the internal control and financial and non-financial risk management systems
relating to the Company and, where appropriate, its Group, including operational, technological, legal,
social, environmental, political, reputational and corruption-related risks, so that the main risks are
properly identified, managed and disclosed; (iii) ensuring the independence and effectiveness of the
Internal Audit function, proposing the selection, appointment, reappointment and removal of the head
of the Internal Audit service, and also the budget of the Internal Audit service, receiving regular infor-
mation on its activities and verifying that senior management takes into account the conclusions and
recommendations of its reports; receiving regular information from the Response Committee and the
Management Control and Risk Management Division, respectively, on the development of its activities
and the functioning of internal controls; (v) establish and supervise a mechanism to enable 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 become aware of within the Company or its
Group. Such a mechanism should ensure confidentiality and, in any case, provide for cases in which
communications can be made anonymously, respecting the rights of the whistleblower and the report-
ed; (vi) ensure in general that the policies and systems put in place for internal control are effectively
implemented in practice.
j) Reporting on Related-Party Transactions to be approved by the General Meeting or the Board of Di-
rectors and supervising the internal procedure established by the Company for those whose approval
has been delegated in accordance with the applicable regulations.
k) Supervising compliance with the Company’s environmental, social and corporate governance policies
and rules, and also the internal codes of conduct and, in particular: (i) ensuring that internal codes of
conduct and corporate governance rules comply with regulatory requirements and are appropriate for
the Company, ensuring also that the corporate culture is aligned with its purpose and values, and also
reviewing compliance by the persons affected by such codes and governance rules and their reporting
obligations to the Company; (ii) supervising 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; (iii) overseeing 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 Committee will also monitor how the Company communicates and inter-
acts with small and medium-sized shareholders; (iv) periodically assessing and reviewing the system
of corporate governance and the Company’s environmental and social policy to ensure that they fulfil
their mission of promoting the corporate interest and take into account, as appropriate, the legitimate
interests of other stakeholders; (v) monitoring that the Company’s environmental and social practices
are in line with the strategy and policy; and (vi) supervising and evaluating the processes of relations
with the different stakeholders.
l) Issuing such reports and proposals as may be requested by the Board of Directors or by the Chairman
of the Board of Directors and such others as it deems appropriate for the better performance of its
functions and, in particular, (i) to issue a report on proposals to amend these Regulations, in accord-
ance with the provisions of article 4.3 thereof; (ii) decide on the requests for information that the direc-
tors, in accordance with the provisions of article 26.3 of these Regulations, submit to this Committee;
and (iii) request, where appropriate, the inclusion of items on the agenda of Board meetings under the
conditions and within the deadlines established in article 34.3 of these Regulations.
5. The Audit and Control Committee shall have access to the information and documentation required 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 Regulations shall apply. These advisors
shall attend meetings with the right to speak but not to vote.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 38 of 105
_ 741
6. 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 Committee 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.
7. 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 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.
8. Any member of the management team and the staff of the FCC Group shall be obliged to attend Com-
mittee 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.
9. Any aspects not expressly regulated in this Article regarding the functioning of the Audit and Control
– Supervise the Company’s internal audit unit, as well as its control and risk management policy, re-
viewing the identification of the most relevant risks and the adoption of the necessary measures to
mitigate their impact.
– Supervise the process of preparing and submitting individual and consolidated financial statements
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 accounts and
management reports for 2020, and that they have been prepared in compliance with the legal re-
quirements and applying generally accepted accounting principles.
– Report favourably to the Board of Directors on the proposal to amend the Regulations of the Board of
Directors, the Regulations of the General Meeting of Shareholders and the Bylaws of the Company,
in order to adapt them to the new reform of the Corporate Enterprises Act.
– Report favourably on the 2020 Annual Corporate Governance Report.
Committee, shall be regulated by the Audit and Control Committee itself.
– Supervise compliance with the Company’s environmental, social and corporate governance policies
Over the course of 2021, 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, appoint-
ment, re-election and replacement of the account Auditor, assuming responsibility 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 development of the
audit with the Company’s external auditor, without compromising its independence Receive informa-
tion from the external Auditor on issues that may pose a threat to their independence 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.
– Ensure the independence of the external Auditor, establishing the corresponding measures to this
end.
–
Inform the General Shareholders Meeting of any issues that may arise with regard to those matters
that fall within the scope of the Committee and, in particular, of the result of the audit, explaining how
it has contributed to the integrity of the financial information and the role that the Committee has
played in this 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 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 Article 37.4 section b)v)1) of the Regulations 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.
and rules, and also the internal codes of conduct.
– Report favourably on the adequacy of the information contained in the “Interim Statement”, referring
to the first and third quarters of 2021, 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 ap-
proval 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 em-
ployees and third parties to send their questions and report irregular behaviours confidentially.
–
In relation to the proposal to the Board of Directors of the Company, for submission by the latter to
the General Shareholders’ Meeting, of a flexible dividend (scrip dividend), the review by the members
of the Committee of the compensation mechanism for shareholders to ensure that the options of (i)
transferring the free allotment rights to the Company by virtue of the Purchase Commitment were
economically equivalent, was particularly relevant and (ii) to receive such amount in New Shares, i.e.
without, in economic terms, favouring or penalising any of such options.
– Approve, in compliance with the provisions of article 34.9 of the Board Regulations, the self-as-
sessment report on the functioning of the Audit and Compliance Committee of the Company during
financial year 2020, to be submitted to the Board of Directors.
– Submit a favourable report 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 2021 (“Abridged annual accounts” 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.
– Report favourably to the Board on the Company’s Non-Financial Information Report (Sustainability
Report) for financial year 2020.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 39 of 105
_ 742
–
Issue, in compliance with the provisions of article 24.4 of the Board Regulations and in accordance
with the provisions of article 529 duovicies.3 of the Corporate Enterprises Act, the report prior to the
approval, by the General Meeting or by the Board of Directors, of the execution of a Related-Party
Transaction, assessing whether the transaction is fair and reasonable from the point of view of the
Company and, if applicable, of the shareholders other than the related party. Likewise, supervise the
internal procedure established in the Company for those related-party transactions whose approval
has been delegated in accordance with the applicable regulations.
On 23 February 2022, the Audit and Control Committee issued its report on its activities and operations
throughout 2021, for assessment by the Board.
Thus, during 2021, the Audit and Control Committee reached a total of 19 agreements in its ten meetings,
which dealt with the approval of the self-assessment report on the functioning of the Committee for financial
year 2020, the approval of the report on the independence of the auditors for financial year 2020, and the
favourable information to the Board regarding: the Annual Corporate Governance Report, the formulation of
the annual financial statements, the Non-Financial Information Report, contribution of funds to the equity of
various subsidiaries, adaptation of the information contained in the interim statement for the first quarter of
2021, application of profit for the year 2020, distribution of a flexible dividend, adaptation of the Bylaws and
the Regulations of the General Meeting, amendment of the Regulations of the Board, reply to the survey on
the concept of materialisation in the audit of accounts requested by the CNMV, related-party transactions,
granting of a loan to Realia, and also the process of preparing the various financial and management infor-
mation reports for financial year 2021.
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.
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.
Observations
APPOINTMENTS AND REMUNERATION COMMITTEE
Name
Álvaro Vázquez de Lapuerta
Dominum Desga, S.A. represented by Esther
Alcocer Koplowitz
Position
Chairman
Category
Independent director
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
Observations
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.
Regulations 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 Commit-
tee 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 directors, of which at least two (2)
must be independent directors and two (2) proprietary directors. The Committee shall appoint the Chair-
man from among its independent members. The mandate of the members of the Appointments and
Remuneration Committee shall not exceed their mandate as directors, without prejudice to them being
re-elected indefinitely, insofar as they remain directors.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 40 of 105
_ 743
2. The Committee shall appoint a Secretary, who need not be a Director, who shall assist the Chairman and
shall ensure the smooth running of the Committee, duly recording in the minutes the proceedings of the
meetings, the content of the deliberations and the resolutions adopted, and the minutes shall be signed
by the Secretary of the Committee with the approval of the Chairman. 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 By-
laws or in accordance with these Rules, the following:
a) Assess the necessary skills, knowledge and experience of those on the Board of Directors. For these
purposes, it shall define the functions and skills required of the candidates to fill each vacancy and
shall assess the time and dedication necessary for them to perform their duties effectively, ensuring
that the non-executive directors have sufficient time available for the proper performance of their
duties”.
b) Examine and organise the succession of the Chairman of the Board of Directors and the CEO, and,
where applicable, to make proposals to the Board of Directors so that this succession takes place in
an orderly and planned manner.
c) Submit to the Board of Directors proposals for the appointment of independent Directors for appoint-
ment by co-option or for submission to the decision of the General Shareholders’ Meeting, and also
proposals for the re-election or removal of such Directors by the General Shareholders’ Meeting.
d) Report on proposals for appointments of the remaining Directors for appointment by co-option or
for submission to the decision of the General Shareholders’ Meeting, as well as proposals for their
re-election or removal by the General Shareholders’ Meeting.
e) Report on proposals for the appointment and removal of senior officers, and also propose the basic
conditions of their contracts, which the chief executive proposes to the board, proposing the persons
or positions that should be considered senior officers of the company, in addition to those contem-
plated in article 2.2 of these Regulations, and drawing up the proposals for reprimands referred to in
article 19.2.d) of these Regulations. 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 for Directors and general managers or
those who perform their senior management duties under the direct supervision of the Board, the
Executive Committee or the Chief Executive Officer, as well as the individual remuneration and other
contractual conditions of executive Directors, verifying compliance therewith. It shall also report and
make proposals on multi-year incentive plans affecting the Company’s senior management and, in
particular, those that may be established in relation to the value of the shares.
g) Report to the Board of Directors, in advance, on the individual determination of the remuneration
of each Director in his capacity as such within the framework of the Articles of Association and the
remuneration policy, and also on the individual determination of the remuneration of each Director for
the performance of the executive duties attributed to him within the framework of the remuneration
policy and in accordance with the provisions of his contract.
h) Periodically review the remuneration policy applied to Directors and Senior Executives, including,
where applicable, share-based remuneration schemes and their application, and ensure that their
individual remuneration is proportionate to that paid to other Directors and Senior Executives of the
Company, as well as verify the information on remuneration of Directors and Senior Executives con-
tained in the various corporate documents, including the Annual Report on Directors’ Remuneration.
Prepare and keep a record of positions of FCC Directors and Senior Managers.
i) Prepare and keep a record of positions of FCC Directors and Senior Managers.
j) Assist the Board in its function of ensuring that the procedures for selecting its members favour di-
versity with respect to matters such as age, gender, disability or professional training and experience
and do not suffer from implicit biases that could imply any discrimination and, in particular, that they
facilitate the selection of female Directors in a number that allows a balanced presence of women
and men to be achieved, so that the company deliberately seeks and includes among the potential
candidates, women with the desired professional profile, and the Board must explain, if appropriate,
through the Annual Corporate Governance Report, the reason for the low or nil number of female Di-
rectors and the initiatives adopted to correct this situation. For this purpose, it should set a target for
representation of the under-represented sex on the board and develop guidance on how to achieve
this target”.
k) Report on the proposals for appointment of the members of the Committees of the Board of Direc-
tors.
l) Inform on the appointment of the Chairman of the Board and the Vice-Chairmen, and also inform on
the appointment and removal of the Secretary and, where appropriate, Vice-Secretary of the Board.
m) Verify the category of Directors as set out in article 6.3.
n) Report, in advance, to the Board of Directors on all matters provided for by law, the Bylaws and these
Regulations of the Board.
o) Receive and keep the register of situations referred to in section g) above and the personal informa-
tion provided by Directors, as established in article 25 of these Regulations.
p) Request, where appropriate, the inclusion of items on the agenda of Board meetings, under the
conditions and within the deadlines established in article 34.3 of these Regulations.
q) Ensure that any conflicts of interest do not undermine the independence of the external advice pro-
vided to the committee.
5. In the case of matters relating to executive directors and senior management, the Committee shall con-
sult with the Chairman and chief executive of the Company. Likewise, any Director may ask the Appoint-
ments and Remuneration Committee to consider potential candidates to fill vacancies on the Board.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 41 of 105
_ 744
6. The Appointments and Remuneration Committee shall have access to the information and documenta-
tion necessary for the performance of its duties. The members of the Appointments and Remuneration
Committee may be assisted during its meetings by the persons who, as advisers and up to a maximum
of two (2) for each member of said Committee, they deem appropriate, for which purpose the provisions
of articles 27.3 and 35.4 of these Regulations shall apply. These advisors shall attend meetings with the
right to speak but not to vote.
7. The Committee shall meet with the established frequency and each time a meeting is called by the Chair-
man 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.
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.
11. The Appointments and Remuneration Committee shall regulate its own functioning in all matters not
provided for in the Bylaws and in these Rules.
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 23 February 2022.
As a result of the assessment process that the Committee performed on its own functioning, positive con-
clusions were reached, both in terms of its composition and internal organisation and the exercise of the
powers assigned to it.
– Report to the Board of Directors, in advance, on the individual determination of the remuneration of each
Director in his capacity as such within the framework of the Articles of Association and the remuneration
policy, and also on the individual determination of the remuneration of each Director for the performance
of the executive duties attributed to him within the framework of the remuneration policy and in accord-
ance with the provisions of his contract.
– Periodically review the remuneration policy applied to Directors and Senior Executives, including, where
applicable, share-based remuneration schemes and their application, and ensure that their individual
remuneration is proportionate to that paid to other Directors and Senior Executives of the Company, as
well as verify the information on remuneration of Directors and Senior Executives contained in the various
corporate documents, including the Annual Report on Directors’ Remuneration.
– Approve the content of the documents named: Appointments and Remuneration Committee Report 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, independent 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 to the Board of Directors, for subsequent submission to the Ordinary General Shareholders’
Meeting, the Annual Report on Remuneration of the Company’s Directors for financial year 2020.
– Report favourably on the Proposal on the statutory remuneration of the Board of Directors for financial
year 2020.
– Approve the application of the Variable Remuneration Plan for the 2020 business year.
During 2021, it exercised, among others, the following competences:
– Approve the Variable Remuneration Plan for 2021.
– Assess the skills, knowledge and experience required on the Board, defining the roles and skills required
of the candidates to fill each vacancy and assessing the time and dedication necessary for them to per-
form their duties well, ensuring that non-executive directors have sufficient time available for the proper
performance of their duties.
– Report on the proposed appointment and re-election of directors and members of the Committees of
the Board of Directors.
– Propose to the Board of Directors the remuneration policy for Directors and general managers or those
who perform their senior management duties under the direct supervision of the Board, the Executive
Committee or the Chief Executive Officer, as well as the individual remuneration and other contractual
conditions of executive Directors, verifying compliance therewith.
– Report on the critical aspects relating to the general salary policy for financial year 2021 at the FCC
Group.
– Approve the Company’s Succession Plan.
– Approve the Company’s staff selection procedure.
– Report favourably to the Board, so that it may submit the Directors’ Remuneration Policy for financial
years 2021, 2022 and 2023 to the Ordinary General Shareholders’ Meeting.
– Approve the activity report of the Appointments and Remuneration Committee for financial year 2020.
– Propose to the Board of Directors the remuneration policy for executive directors, the terms and condi-
tions of the Chief Executive Officer’s contract, and being in accordance with the Company’s remunera-
tion policy.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 42 of 105
_ 745
During the six meetings held by this Committee in 2021, a total of 17 resolutions were reached, which
have addressed: the approval of the Report on the functioning of the Appointments and Remuneration
Committee during the financial year 2020, 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 Chief Executive Officer, proposal of the Annual Report
on the remuneration of the directors of FCC, S. A for the 2021 financial year, the application of the 2020
Variable Remuneration Plan and approval of the 2021 Plan, approval of the FCC Succession Plan, approval
of the FCC personnel selection procedure, the Directors’ Remuneration Policy for the 2021, 2022 and 2023
financial years, the report on the activities of the Appointments and Remuneration Committee during the
2020 financial year. Likewise, a favourable report has been issued on: the approval of related-party trans-
actions, the Report-Proposal on the statutory remuneration of the Board of Directors for the financial year
2020, the FCC Group Salary Policy for 2021, authorisation of a non-competition agreement, on proposals
for the appointment 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.2.3 Indicate, where applicable, the existence of any regulations governing Board com-
mittees, where these regulations are to be found, and any amendments made to
them during the year. Also indicate whether any annual reports on the activities of
each committee have been voluntarily prepared.
• Regulations of the Board of Directors of FCC (Chapter IX. Committees of the Board of Directors, articles
35 to 38). The Regulations are available on the “Regulations” link in the “Corporate Governance” section
of the “Responsibility and Sustainability” section of the Company’s corporate website.
• Reports of the Committees for the evaluation of their functioning during financial year 2021. In addition,
on the occasion of the call to the Ordinary General Shareholders’ Meeting held on 29 June 2021, the
activity reports of the Audit and Control Committee and the Appointments and Remuneration Committee
were published on the corporate website, together with the other documentation.
C.2.2 Complete the following table with information regarding the number of female di-
rectors who were members of Board committees at the close of the past four years:
Number of female directors
Year t
Number %
Year t-1
Number %
Year t-2
Number %
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)
Observations
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 43 of 105
_ 746
D Related-party and intragroup
transactions
D.1
Explain, where appropriate, the procedure and competent bodies relating to the ap-
proval of transactions with related and intragroup parties, indicating the criteria and
general internal rules of the entity that regulate the abstention obligations of the
affected director or shareholders. Detail the internal information and periodic control
procedures established by the company in relation to those related-party transac-
tions whose approval has been delegated by the board of directors.
Article 24 of FCC’s Regulations of the Board of Directors states that:
Related Transactions
1. The Board of Directors shall be responsible for the knowledge and approval, following a report from
the Audit and Compliance Committee, of transactions that the Company or Group companies carry
out with Directors, or with shareholders holding, individually or in concert with others, at least ten
percent (10%) of the voting rights, including shareholders represented on the Board of Directors of the
Company or of other companies forming part of the Group or with other persons who are considered
related parties as provided by law (“Related-Party Transactions”), unless their approval corresponds
to the General Shareholders’ Meeting.
2. For the purposes of the provisions of the preceding section, transactions between the Company and
its wholly-owned companies, directly or indirectly, the approval by the Board of Directors of the terms
and conditions of contracts to be entered into with Directors who are to perform executive duties,
including, where appropriate, the Chief Executive Officer or Senior Executives, and the determination
by the Board of the specific amounts or remuneration to be paid under such contracts, shall not be
considered as a Related-Party Transaction.
Nor shall any transaction carried out by the Company with its subsidiaries or investees be considered
a Related-Party Transaction, provided that no other party related to the Company has an interest in
such subsidiaries or investees.
3. The approval of Related-Party Transactions whose amount or value is equal to or exceeds ten percent
(10%) of the total asset items according to the latest balance sheet approved by the Company shall be
the responsibility of the General Shareholders’ Meeting. The approval of all other Related-Party Trans-
actions shall be the responsibility of the Board of Directors, which may not delegate this power except
in respect of Related-Party Transactions with companies within the Group that are carried out within
the scope of ordinary management and on an arm’s length basis, and also Related-Party Transactions
entered into by virtue of contracts with standardised conditions applied en masse to a large number of
customers, at prices or rates established in general by whoever acts as supplier of the good or service
in question and the amount of which does not exceed 0.5% of the net turnover of the Company.
4. The Audit and Compliance Committee shall issue a report prior to the approval by the General Meeting
or by the Board of Directors of a Related-Party Transaction. In this report, the Committee must assess
whether the transaction is fair and reasonable from the point of view of the Company and, if applicable,
of the shareholders other than the related party, and give an account of the assumptions on which the
assessment is based and the methods used.
Directors who are members of the Audit and Compliance Committee affected by the Related-Party
Transaction may not participate in the preparation of the report.
This report shall not be mandatory in relation to the conclusion of Related-Party Transactions whose
approval has been delegated by the Board of Directors in the cases legally permitted and provided for
in these Regulations.
5. Whenever, in accordance with the provisions of section 3 of this article, the Board of Directors del-
egates the approval of Related-Party Transactions, the Board of Directors itself shall establish an
internal reporting and periodic control procedure to verify the fairness and transparency of these
transactions and, where appropriate, compliance with the applicable legal criteria.
6. The Board of Directors shall ensure the public disclosure of Related-Party Transactions entered into by
the Company or companies of its Group, the amount of which reaches or exceeds five percent (5%)
of the total amount of the asset items or 2.5% of the annual turnover of the Company.
To this end, a notice, with the legally required content, must be placed in an easily accessible place
on the Company’s website, which in turn must be communicated to the CNMV. The announcement
must be published and communicated no later than the date on which the Related-Party Transaction
is entered into and must be accompanied by the report issued, where appropriate, by the Audit and
Compliance Committee.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 44 of 105
_ 747
7. To determine the amount of a Related-Party Transaction, transactions entered into with the same
counterparty in the last twelve months shall be counted in aggregate.
As regards the criteria and general rules governing the abstention obligations of the affected directors
or shareholders, the Company applies the legal regime: (i) when the power to approve related-party
transactions lies with the board, the director affected or the director representing or related to the
shareholder affected must abstain from participating in the deliberation and voting on the relevant
resolution in accordance with section 228.c) of the Corporate Enterprises Act. However, directors
who represent or are related to the parent company in FCC shall not abstain, notwithstanding the fact
that, in such cases, if their vote was decisive for the adoption of the resolution, the rule of reversal of
the burden of proof shall apply in terms similar to those provided for in article 190.3 of the Corporate
Enterprises Act; and (ii) when the competence is that of the General Meeting, the shareholder affected
shall be deprived of the right to vote, except in cases in which the proposed resolution has been ap-
proved by the Board without the vote against of the majority of the independent directors. However,
where applicable, the rule of reversal of the burden of proof provided for in Article 190.3 of the Corpo-
rate Enterprises Act shall apply.
D.2
Give individual details of operations that are significant due to their amount or of
importance due to their subject matter carried out between the company or its
subsidiaries and shareholders holding 10% or more of the voting rights or who are
represented on the board of directors of the company, indicating which has been
the competent body for its approval and if any affected shareholder or director has
abstained. In the event that the board of directors has responsibility, indicate if the
proposed resolution has been approved by the board without a vote against the
majority of the independents:
Name or company name
of shareholder or any of its
subsidiaries
Control Empresarial de
Capitales, SA de CV
% Share-
holding
80.03%
Name or company
name of the
company or entity
within its group
F-C y C, S.L.
Unipersonal
Nature
of the
relation-
ship
Acquisition
Nature of the operation
and other information
necessary for its
evaluation
Acquisition of shares
in Realia Business, SA.
representing 13.11% of its
share capital.
Amount
(thousands
of euros
83,941
Approving
body
Board of
Directors
Soinmob Inmobiliaria
Española S.A.
80.03%
F-C y C, S.L.
Unipersonal
Energéticas S.A.U.
Non-cash
contribution
Contribution of all shares of
Jezzine Uno, S.L.U.
226,200
Board of
Directors
Identification of the
significant shareholder
or director who has
abstained
The proposal to the board, if
any, has been approved by the
board without a vote against the
majority of independents
None
None
–
–
Observations
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 45 of 105
_ 748
D.3
Give individual details of the operations that are significant due to their amount or
relevant due to their subject matter carried out by the company or its subsidiaries
with the administrators or managers of the company, including those operations
carried out with entities that the administrator or manager controls or controls joint-
ly, indicating the competent body for its approval and if any affected shareholder or
director has abstained. In the event that the board of directors has responsibility,
indicate if the proposed resolution has been approved by the board without a vote
against the majority of the independents:
Name or company name of the
administrators or managers
or their controlled or jointly
controlled entities
Name or company
name of the company
or entity within its
group
Alejandro Aboumrad González
FCC
Relationship
Director
Gerardo Kuri Kaufmann
-Cementos Portland
Valderrivas -Realia
Chief Executive
Officer
Nature of the operation
and other information
necessary for its
evaluation
Provision of services
Provision of services
Amount
(thousands
of euro)
338
350
Approving body
Board of Directors
Board of Directors
Identification of
the significant
shareholder or
director who has
abstained
–
–
The proposal to the board, if
any, has been approved by the
board without a vote against the
majority of independents
–
–
Observations
–
D.4
Report individually on intragroup transactions that are significant due to their
amount or relevant due to their subject matter that have been undertaken by the
company with its parent company or with other entities belonging to the parent’s
group, including subsidiaries of the listed company, except where no other related
party of the listed company has interests in these subsidiaries or that they are fully
owned, directly or indirectly, by the listed company.
In any case, any intragroup transactions carried out with companies established in coun-
tries or territories that are considered a tax haven shall be reported:
Company name of the
Group entity
Brief description of the operation and other
information necessary for its evaluation
Realia Business, S.A.
Realia Patrimonio, S.L.U.
Contract with FCC Construcción, S.A., for the con-
struction of 80 dwellings, garages, storage rooms and
sports areas, Phase 2 of PP41, “Campo del Ángel”, in
Alcalá de Henares (Madrid)
Contract with FCC Industrial e Infraestructuras En-
ergéticas S.A.U. for the supply and installation of in-
tercoms by FCC Industrial, S.S. in Torre Fira de Bar-
celona
Realia Patrimonio, S.L.U.
Rendering of services by FCC Industrial e Infraestruc-
turas Energéticas S.A.U.
Realia Patrimonio, S.L.U.
Rendering of services by FCC Medio Ambiente, S.A.
Realia Patrimonio, S.L.U.
Rendering of services by Servicios Especiales de
Limpieza, S.A.
Amount
(thousands
of euros)
12,740
13
1,193
162
496
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 46 of 105
Company name of the
Group entity
Brief description of the operation and other
information necessary for its evaluation
Realia Patrimonio, S.L.U.
Rental contract by Fedemes, S.L.
Realia Business, S.A.
Rendering of services by FCC Industrial e Infraestruc-
turas Energéticas S.A.U.
Amount
(thousands
of euros)
13
2
Realia Business, S.A.
Rendering of services by FCC Construcción, S.A.
12,001
Realia Business, S.A.
Rendering of services by Fomento de Construcciones
y Contratas, S.A.
Realia Business, S.A.
Rental contract by Fedemes, S.L.
F-C y C, S.L.
F-C y C, S.L.
F-C y C, S.L.
F-C y C, S.L.
F-C y C, S.L.
F-C y C, S.L.
Rendering of services by Áridos de Melo, S.L.
Rendering of services by FCC Construcción, S.A.
21,383
Rendering of services by FCC Medio Ambiente, S.A.
Rendering of services by Fomento de Construcciones
y Contratas, S.A.
Rental contract by Fedemes, S.L.
Rendering of services by Realia Business, S.A.
FCC Construcción, S.A.
Rendering of services by F-C y C, S.L.
Cementos Portland
Valderrivas, S.A.
Fomento de
Construcciones y
Contratas, S.A.
Rendering of services by Realia Patrimonio, S.L.U.
Rendering of services by Realia Patrimonio, S.L.U.
Realia Patrimonio, S.L.U.
Intragroup loan of Cementos Portland Valderrivas,
S.A.
Realia Patrimonio, S.L.U.
Intragroup loan of Fomento de Construcciones y Con-
tratas, S.A.
Realia Business, S.A.
Intragroup loan of Fomento de Fedemes, S.L.
Realia Business, S.A.
Intragroup loan of Fomento de Construcciones y Con-
tratas, S.A.
F-C y C, S.L.
F-C y C, S.L.
Intragroup loan of Asesoría Financiera y de Gestión,
S.A.
Intragroup loan of Fomento de Construcciones y Con-
tratas, S.A.
142
101
296
9
54
112
2,371
2
90
11
140
24
38
120,000
21
32,258
_ 749
Amount
(thousands
of euros)
2,664
Company name of the
Group entity
Brief description of the operation and other
information necessary for its evaluation
Intragroup loan of Realia Patrimonio, S.L.U.
Fomento de
Construcciones y
Contratas, S.A.
Fomento de
Construcciones y
Contratas, S.A.
Fomento de
Construcciones y
Contratas, S.A.
Claro Enterprise
Solutions, S.L.
Banco Inbursa, S.A.
Intragroup loan of Realia Business, S.A.
44
Intragroup loan of F-C y C, S.L.
Contract for the provision of IT services to Fomento de
Construcciones y Contratas, S.A.
Accrual of interest on subordinated financing of Ce-
mentos Portland Valderrivas, S.A.
Observations
23,017
13,446
1,764
There are numerous transactions between Group companies that are part of their routine business and
that, in any case, are eliminated in the process of preparing the consolidated financial statements.
D.5 Give individual details of the operations that are significant due to their amount
or relevant due to their subject matter carried out by the company or its subsidiar-
ies with other related parties pursuant to the international accounting standards
adopted by the EU, which have not been reported in previous sections.
Company name of the
related party
Brief description of the operation and other
information necessary for its evaluation
–
–
Amount
(thousands
of euros)
–
Observations
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 47 of 105
_ 750
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, exec-
utives or significant shareholders or other related parties.
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 Spanish
Corporate Enterprises Act.
Article 23 of the Regulations 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 preceding
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 conditions for
customers and of limited relevance, including those for which information is not necessary 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 information on the Company,
for private purposes. d) Taking advantage of the Company’s business opportunities. 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 competition, 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 individual cases by authorising
a Director or a related person to enter into a specific transaction with the Company, to use certain
corporate assets, to take advantage of a specific business opportunity, or to obtain an advantage or
remuneration from a third party, without prejudice to the provisions of the Law and these Regulations in
relation to Related-Party Transactions.
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 Remuneration
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 process. 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. When Related-Party
Transactions are involved, the provisions of the Law and these Regulations shall apply.
D.7
Indicate whether the company is controlled by another entity in the meaning of Arti-
cle 42 of the Commercial Code, whether listed or not, and whether it has, directly or
through any of its subsidiaries, business relationships with said entity or any of its
subsidiaries (other than the listed company) or carries out activities related to those
of any of them.
Yes
No
There is a collaboration agreement between FCC Construcción (FCC Group) and Carso Infraestructuras
S.A.B de CV (a company related to Control Empresarial de Capitales) to jointly undertake 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 com-
pany or its subsidiary companies and the parent company or its subsidiary companies, and iden-
tify where these aspects have been publicly disclosed
Collaboration agreement between FCC Construcción (FCC Group) and Carso Infraestructuras (a compa-
ny 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 48 of 105
_ 751
E Risk control and management systems
E.1
Explain the scope of the company’s financial and non-financial risk management
and control system, including tax risk.
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 areas, 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 respon-
sibilities 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 financial and
non-financial risks, including tax risks, in terms of impact and likelihood of occurrence, giving rise to Risk
Maps, and subsequently the establishment of prevention and control activities to mitigate the effect of these
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 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 processes 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 identifying and assessing tax risks and assigning responsibilities for both the manage-
ment and reporting of these risks is implemented.
E.2
Identify the bodies within the company responsible for preparing and executing the
financial and non-financial risk management and control system, including tax risk.
The Board of Directors is responsible for approving the FCC Group’s Risk Management Model, identifying
those risks that are considered to be the company’s main risks and implementing and monitoring the appro-
priate internal control and information systems, in order to ensure both the future viability and the competi-
tiveness of the Group, adopting the most relevant decisions for its best development.
The Audit and Control Committee is responsible for risk management and control systems:
– Supervise the internal risk management and control unit so that it focuses on ensuring the proper func-
tioning of the risk management and control systems and their proper functioning for risk mitigation.
– Supervise and analyse the effectiveness of the internal control and risk management model, ensuring
that it identifies or determines:
•
the different types of risks to which the Group is exposed, including financial or economic risks, con-
tingent liabilities and other off-balance sheet risks.
• a tiered risk management and control model.
•
•
•
the level of risk that the group considers acceptable.
the measures planned to mitigate the impact of the risks identified, should they materialise.
the information and internal control systems to be used to control and manage these risks, including
contingent liabilities or off-balance sheet risks, and submit them to the Board for approval.
– Ensure that the internal audit unit’s activity is primarily focused on relevant risks, including reputational
risks.
In this connection, the FCC Group Risk Management Model is based on the establishment 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 tier concerns the operational lines of the business areas, which act as risk generators and are re-
sponsible for managing, monitoring and appropriately reporting the risk generated, including tax risk.
The second tier, also assumed by the business units, consists of support, control and supervision teams,
ensuring effective control and adequate risk management, including tax. At this tier, the management of each
business area is responsible for the implementation of the Risk Management Model, including those relating
to financial reporting. The Business Compliance Officer assists the Corporate Compliance Officer in the dis-
semination 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 cases where breaches or inefficiencies in the
functioning of controls have been detected, submitting these proposals to the Corporate Compliance Officer.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 49 of 105
_ 752
The third level consists of corporate areas that report to Senior Management and/or to the Audit and Con-
trol Committee. This third level encompasses the Tax Division, responsible 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 Management areas, which report to the Au-
dit 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 procedures are adequate and
verifies their effective implementation.
E.3
Indicate the main financial and non-financial risks, including tax risks and the ex-
tent 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, com-
pliance and financial.
Strategic Risks
Geopolitical and regulatory instability. Increasing geopolitical tension in certain regions/countries could
bring economic, political or social instability, as well as regulatory changes affecting the FCC Group’s op-
erations. Possible regulatory changes in social, tariff, commercial, labour, corporate, health, environmental,
energy, tax, etc. matters, as well as changes in the public models of development and management of
environmental services, integral water cycle and infrastructures, could lead to a decrease in business oppor-
tunities or a drop in the profitability of projects.
Climate and environmental risks, health or humanitarian crises, terrorism, regional conflicts. Short-
and medium-term climate disruptions, extreme weather events, environmental crises, epidemics and pan-
demics, humanitarian crises, armed conflicts or terrorist activities would affect the populations and territories
in which the FCC Group carries out its activities and, consequently, the demand for goods and services, the
operations and level of activity, and the infrastructures built and operated by the Group. Additionally, costs
could be increased due to ecological transition policies or health restrictions and the mobility of goods and
people could be hampered, affecting the achievement of the Group’s objectives.
Cut in investment and demand forecasts. A slowdown in the recovery of the world economy forecast for
2022, which could lower the growth forecasts for certain countries in which the Group operates, an increase
in public and private debt, and also changes in the forecasts and investment priorities of current and poten-
tial customers, which could have different negative impacts on the FCC Group. Additionally, the revenues
of the Environmental Services, Water, Concessions and Real Estate Business Areas are, to a certain extent,
dependent on the level of demand, which is subject to change as a result of conditions that are sometimes
beyond the FCC Group’s control.
Loss of market share. The FCC Group works in highly competitive markets. Any difficulty 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 circum-
stances that could adversely affect its reputational image and consequently 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 complete execution. The compensation
that the FCC Group would receive in such cases may not be sufficient to cover the damages caused and, in
addition, the FCC Group may need to resort to legal or arbitration proceedings to collect it, thereby increas-
ing its costs and delaying the receipt of the compensation amounts. Additionally, different interpretations
of contractual and regulatory requirements can lead to discrepancies that increase litigation and impact on
the outcome of projects.
Appraisal of real estate investments. Real estate market activity could be affected by increased uncertain-
ty in the economic and social environment with the potential impact on the appraisal of real estate assets.
Project rescheduling. Political and/or financial instability in certain markets in which the Group operates,
as well as other circumstances beyond FCC’s control, such as the unavailability of land for infrastructure
projects, delays in obtaining licences, health or environmental restrictions, disruption of the supply chain for
goods and services, etc., could result in the rescheduling of projects in progress, with repercussions on the
outcome of such projects.
Price increases and unavailability of raw materials and outsourced services. In the course of its ac-
tivities, the FCC Group consumes considerable volumes of raw materials and energy, as well as working
with a great number of subcontractors and manufacturers. An increase in the prices of energy and certain
raw materials, together with a lack of availability of the latter, derived from the reactivation of world demand
after the COV-19 health crisis, the slow reactivation of industry in producer countries still strongly affected by
the pandemic, and the increase in the price of international transport, could cause inefficiency in the supply
chain and subcontracted services, delays in the execution of projects, as well as an economic and financial
impact on the FCC Group’s results, especially in cases where there are difficulties in passing on these in-
creases to the end customer. Additionally, this problem could condition the implementation of infrastructure
plans promoted by different countries, and also the projects associated with European Funds (2021-2027
Next Generation), aimed at tackling the consequences of the COVID-19 pandemic, and to accelerate the
digital and ecological transitions of the European economy.
In relation to the Cement business, an increase in energy prices, coupled with a price increase in CO2 emis-
sion allowance trading, could impact the production cost structure.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 50 of 105
_ 753
Risks arising from links with third parties. The FCC Group could undertake its business activities jointly
with public authorities or private entities through different forms of association. However, adverse circum-
stances in the project, or in a partner’s economic or reputational situation, could lead to a situation that could
adversely affect the FCC Group.
Labour conflict. Some of FCC Group’s activities are labour intensive, with considerable geographical diver-
sity (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 remote working could lead to
disruptions in an ever-changing environment with continuous innovation.
Cyberattacks. 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.
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 regulations 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 risks. CC’s environmental commitment is mirrored in the Group’s Environmental Policy ap-
proved by the Board of Directors. The Group has environmental management systems in place, imple-
mented 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
Discrepancies in regulatory or contractual compliance. The FCC Group’s operations should respect 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, in certain circumstances there may be occa-
sional discrepancies in regulatory aspects, especially in the phase of adaptation to new legislation that may
be enacted. Additionally, difficulties and/or discrepancies in the fulfilment of all contractual requirements may
arise in certain projects.
Non-Compliance with the Code of Ethics. The FCC Group has a Code of Ethics and Conduct, Ethics
Channel (Whistleblowing Channel), and Criminal Prevention Manual, policies such as, yet not limited to the
Anti-Corruption Policy, Human Rights Policy, Policy on Tenders, Agents, Gifts and Relations with Partners
on Compliance approved by the Board of Directors, and also a protocol for the prevention and eradication
of harassment, and anyone linked to any FCC Group company must adhere to these measures, policies
and codes. 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 ob-
taining or renewing corporate financing or for the execution of certain projects, 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 has a significant amount of goodwill on its balance
sheet. 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 consolidated level, the FCC Group has a certain amount of
deferred tax assets, the vast majority of which relate 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 for-
eign 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. Continued inflationary pressures, mainly driven by rising
commodity and energy prices, could lead to higher 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 51 of 105
_ 754
E.4
Identify whether the entity has risk tolerance levels, including for tax risk.
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 external 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:
– A general profile of medium-to-low and predictable risk, based on a diversified business model.
– A stable and recurring policy for the generation of income.
–
Intense participation of Senior Management that guarantees a culture of risk management 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 whether the entity has risk tolerance levels, including for tax risk.
While the FCC Group’s main activities are the provision of services classified as essential, such as waste
management, water supply, urban sanitation and infrastructure management, and the stability of demand
for these services, the various consequences of the COVID-19 health crisis and the measures established by
the authorities to mitigate it have collaterally affected the activities carried out by the FCC Group, albeit to a
lesser extent than in the previous year. In this regard, in certain geographies, mitigating measures have been
put in place that have had some impact on activity and productivity levels, affecting the mobility of people
and causing inefficiencies in the supply chains of goods and services, which has affected the planning of
certain projects.
Additionally, the reactivation of world demand after the COVID-19 health crisis, the slow reactivation of the
industry in producer countries still strongly affected by the pandemic, and the increase in the price of inter-
national transport, has produced an increase in the prices of raw materials, energy, fuels and subcontracted
services, which has affected the results of certain projects, especially those that do not include efficient price
review mechanisms that can directly mitigate this impact. Higher energy prices in the Cement business have
had an impact on the production cost structure.
In addition to the rescheduling of activities in specific projects due to the health situation throughout 2021,
various operational, technical and design circumstances, availability of work areas, contractual interpreta-
tion, lack of decision-making by clients, etc., have required the rescheduling of certain projects. The FCC
Group carries out various initiatives, such as including contractual 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 ordinary course of the FCC Group’s business, and as a result of the high volume of contracts with
customers, suppliers and partners, as well as the possible requirements of bodies in different jurisdictions,
contractual disputes arise that sometimes result in civil, labour, criminal, arbitration, administrative, regulato-
ry and similar proceedings in which the FCC Group is a party.
With 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 in the regulatory framework.
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 frame-
works 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-fulfilment 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 Compliance programmes is carried out by
the Compliance Committee, chaired by the Corporate Compliance Officer with the support of the Compli-
ance Officers of the businesses, following certification of controls and processes by their owners.
In the face of potential political and socio-economic uncertainties, and especially in view of the increase in
the deficit and public debt of the states, the FCC Group will continue to focus on the consolidation of its di-
versified international positioning, maintaining its market share in mature markets, and on the search for new
public-private partnership formulas for the development of the integral water cycle, environmental services
and infrastructure management, embedded in medium- and long-term contracts.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 52 of 105
_ 755
Given the climatic and environmental risks, health and/or humanitarian crises, the FCC Group maintains its
position as a benchmark provider of services classified as essential, such as waste collection and treatment
and street cleaning, the integral water cycle service and the management and maintenance of transport
infrastructures, business areas with low elasticity of demand and stable and predictable medium- and long-
term cash flows. FCC has created its own strategy for adapting to climate change in Horizon 2050, which in-
tegrates all its business lines, and whose objective is to mitigate the risks associated with climate change by
taking advantage of the business opportunities it entails, based on five pillars: Stakeholder communication,
carbon footprint reduction, innovation in products and services, integrating their businesses into the circular
and low-carbon economy, monitoring emissions and adapting to regulatory changes. In this regard, Aqualia
has become the first full water cycle operator to certify its Sustainability Strategy and its contribution to the
United Nations SDGs (Sustainable Development Goals), by incorporating sustainability into the company’s
principles and aligning the company’s strategies with the SDGs. Aqualia, FCC Construcción and FCC Medio
Ambiente have the “Calculo y Reduzco” seal, awarded by the Spanish Climate Change Office (OECC), as
part of the process of registering carbon footprint, offsetting and CO2 absorption projects established by the
Ministry for Ecological Transition and the Demographic Challenge (MITERD).
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 pur-
sues an active negotiation policy.
With regard to price increases and unavailability of raw materials and subcontracted services, purchasing
procedures are applied preventively, also using deviation analysis as a detective indicator. Additionally, the
FCC Group monitors its key suppliers to avoid the risks of inefficiencies in the supply chain, both as a result
of economic difficulties of the suppliers, as well as supply problems and stock breakage due to alterations
in the production chain. In addition, in the search for natural hedging, we are working with customers to
introduce price review mechanisms in contracts that lack them or are insufficient, and also to formalise
extensions in projects affected by the lack of availability of raw materials.
FCC’s business units also have quality assurance, environmental management and occupational risk pre-
vention 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 insurance policies to cover the possible risks
to which the various elements of its property, plant and equipment and the activities carried out are subject.
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 Information Security Management System designed in line with inter-
national 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 corporate 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 compli-
ance with laws, regulations, contracts, procedures and ethical principles, being binding on all these persons.
The FCC Group’s Compliance Model, which is evolving to adapt to the new regulatory requirements and
geographies in which the Group carries out its activities, also has, among others, documented policies on
relations with partners in the areas of Compliance, anti-corruption, human rights, agents, gifts and tenders,
and is complemented by a Criminal Prevention Manual, Compliance Committee regulations, and document-
ed procedures for investigation and response and the Whistleblowing Channel, as well as other procedures
that develop the different principles of action set out in the Code of Ethics and Conduct. As regards other
compliance risks, such as contractual disputes and the potential increase in litigation, work continues on the
monitoring and management of contracts and the identification of legal risks.
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 variations, and managing asset risks.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 53 of 105
_ 756
F
Internal risk control and management
systems relating to the internal control
over financial reporting system (ICFR)
Describe the mechanisms that make up the risk management and control systems in rela-
tion to the process of reporting your institution’s financial information (ICFR).
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 ade-
quate and effective Internal Control over Financial Reporting System (ICFR); (ii) its
implementation; and (iii) its supervision.
The Internal Control over Financial Reporting System (ICFR) shall provide the Audit and Control Committee
and Senior Management with reasonable assurance about the reliability of the financial information submit-
ted for approval to the Board and that is periodically disclosed to regulators and the market.
The bodies and areas at the FCC Group responsible for ensuring the existence, maintenance, implemen-
tation and supervision of an adequate and effective ICFR, as well as the responsibilities attributed to these
bodies are as follows:
Board of Directorsn
The duties of this Governing Body include:
– Ultimate responsibility for the approval of the risk management and control policy, including tax risks,
identifying the Company’s main risks and implementing and monitoring the appropriate internal control
and reporting systems, and also the supervision of internal reporting and control systems.
– Defining the information and communication policies with shareholders, markets and public opinion, en-
suring 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 Committee is responsible
for:
– Periodically reviewing, among other aspects, the process of preparing economic-financial information, its
internal controls and the independence of the external auditor.
– The supervision of the internal audit services of the Company to ensure the proper functioning of the
information and internal control systems, with the head of the internal audit function being obliged to
submit to the Committee its annual work plan and to inform it directly of any incidents arising during its
implementation, and also to submit a report on its activities at the end of each year. The Committee must
ensure that the internal audit activity is primarily focused on the relevant risks.
– Supervision of the internal risk management and control unit, so that it focuses on ensuring the proper
functioning of the risk management and control systems and their proper functioning to mitigate risks.
– The supervision and analysis of the effectiveness of the internal control and risk management model,
ensuring that it identifies or determines:
•
the different types of risks to which the Group is exposed, including financial or economic risks,
contingent liabilities and other off-balance sheet risks.
• a tiered risk management and control model.
•
•
•
the level of risk that the group considers acceptable.
the measures planned to mitigate the impact of the risks identified, should they materialise.
the information and internal control systems to be used to control and manage these risks, including
contingent liabilities or off-balance sheet risks, and submit them to the Board for approval.
– The supervision of the preparation process and the integrity of the financial information related to the
Company and its Group, reviewing compliance with regulatory requirements, the adequate definition of
the consolidation perimeter and the correct application of accounting criteria.
– Supervision of the process of preparation and presentation of the annual financial statements and man-
agement reports, both individual and consolidated, and of the periodic financial information disclosed
to the markets, ensuring compliance with legal requirements and the correct application of generally
accepted accounting principles, informing the Board of Directors of the financial information and the
management report, which shall include, where appropriate, the mandatory non-financial information
that the Company must periodically disclose to the public.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 54 of 105
_ 757
– 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 correct functioning and effectiveness of the Criminal Prevention Model, including
the existence of mechanisms for reporting potential irregularities.
Senior Management
The Senior Management of each of the units is ultimately responsible for the implementation of the Risk
Management and Internal Control Model; its duties include the implementation 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 Administration, Informa-
tion 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 struc-
tured around financing the Group’s activities, the management of its debt and financial risks, the optimisation
of the treasury and financial assets, financial management 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.
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 information 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 responsibility 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 methodolog-
ical approach for the assessment, management and effectiveness of internal control and risk management
processes, 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 methodolog-
ical 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 market, as well as contributing, together with the other areas
involved, the development of internal controls by monitoring compliance with the policies, standards, proce-
dures and activities that constitute the internal control model to ensure the correct management and reduc-
tion 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.
Corporate Criminal 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, 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 authority, with an adequate dis-
tribution of tasks and functions; and (iii) ensuring there are sufficient procedures for its correct
dissemination throughout the institution.
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 appointment of managerial positions.
The first-level organisational structure is available on the corporate intranet, with the different business units
having their own organisational structures associated with specific projects and contracts.
The Appointments and Remuneration Committee is responsible for examining and organising the succes-
sion of the Chairman of the Board of Directors and the CEO of the Company and, where appropriate, mak-
ing proposals to the Board of Directors for this succession to take place in an orderly and planned manner.
This is in addition to reporting on proposals for the appointment and dismissal of senior executives and the
basic conditions of their contracts.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 55 of 105
_ 758
Among its specific responsibilities in terms of the Internal Control over Financial Reporting System (ICFR),
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 ICFR, the execution of control activities relating to
the consolidation subprocess and the normalisation of the processes relating to the preparation of the infor-
mation. 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 information before it is issued to the market.
• Code of conduct, approval body, degree of dissemination and awareness, principles and val-
ues 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 regulatory 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 Com-
pany.
The FCC Group has a Code of Ethics and Conduct, the last update of which was approved 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. These
principles include respect for the law and ethical values, zero tolerance of bribery and corruption, prevention
of money laundering and the financing of terrorist activities, protection of free competition and good market
practices, ethical conduct in the securities market, avoidance of conflicts of interest, strict control, reliability
and transparency of information, protection of the Group’s reputation and image, efficient and secure use of
the company’s resources and assets, vigilance in the ownership and confidentiality of data and information,
customer focus, primacy of people’s health and safety, promotion of diversity and fair treatment, commit-
ment to our environment, transparent relationship with the community and extension of the commitment to
ethics and compliance to business partners.
Specifically, with regard to the recording of transactions and the preparation of financial information, the
Code of Ethics and Conduct establishes in the section “Rigour in control, reliability and transparency” that
“the FCC Group’s information must be prepared with the utmost reliability, complying with the applicable
regulations and the company’s rules, and must be diligently guarded and kept”, indicating that special care
must be taken to ensure “the proper and complete accounting, recording and documentation of all transac-
tions, income and expenses as they occur, without omitting, concealing or altering any data or information,
so that the accounting and operating records accurately reflect reality and can be verified by the control
areas and by internal and external auditors. Failure to follow these premises could be considered 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 Code of Ethics and Conduct is published both on the corporate intranet and on the Group’s website in
14 languages, as well as on the websites of several subsidiaries, where it can be consulted by anyone, and
regular campaigns are carried out to disseminate, communicate and encourage employees to adhere to it,
with the aim of strengthening employees’ personal commitment to the company’s Compliance Model. This
Compliance Model is completed with a Criminal Prevention Manual, Compliance Committee regulations,
investigation and response procedures and the Whistleblowing Channel, as well as a series of policies and
procedures that develop the different principles of action set out in the Code of Ethics and Conduct, includ-
ing policies on relations with partners in the areas of compliance, anti-corruption, human rights, agents, gifts
and tenders.
In keeping with previous years, a series of training actions on the Code of Ethics and Conduct were carried
out in 2021, mainly in online format, through FCC Campus, the company’s training platform. In addition to
continuing with training courses launched in previous years, such as training on the Code of Ethics and
Conduct; anti-corruption training; training on tender processes; and training on the Compliance Model, two
new online training courses were given in 2021 as part of the FCC Campus Compliance and Values schools:
Whistleblowing Channel training and interpersonal conflict management training.
A total of 11,616 FCC Group trainees successfully completed this compliance training in 2021, reaching a
total of 5,588 hours of training.
The Board of Directors has entrusted the Compliance Committee with the task of promoting 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 pol-
icies, rules, procedures 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.
Additionally, in each of the Group’s businesses, a Business Compliance Officer is established to assist the
Corporate Compliance Officer in the implementation of the Criminal Prevention Model, in the identification
of risks, in the definition and monitoring of controls and in the treatment of complaints and investigations
related to crimes and breaches of the Code of Ethics and Conduct received. 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 Com-
mittee itself. As part of the international consolidation of the Compliance Model, local compliance structures
have also been established in different geographies.
• Whistleblowing channel, which allows for the reporting to the audit committee of irregularities of
a financial and accounting nature, in addition to possible breaches 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 anonymous reporting, respecting the rights of the complainant and the
reported party.
The FCC Group has a Whistleblowing Channel, through which it is possible to confidentially 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 56 of 105
_ 759
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, whether anonymous or nominal, are received and analysed confidentially by the Com-
pliance Committee, and a detailed protocol is applied to all of them, with the aim of providing a response,
an orderly treatment and the guarantee of non-retaliation against the whistleblower. The management of the
Whistleblowing Channel is regulated in the Whistleblowing Channel Procedure, available on the corporate
intranet, and also 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. The guidelines, procedures, tools and mechanisms for handling different types of investigations are
governed by the Investigation and Response Procedure, which guarantees the rights of the parties.n por el
Procedimiento de Investigación y Respuesta, que garantiza los derechos de las partes.
• Training and periodic update programmes for staff involved in the preparation and review of fi-
nancial information, as well as in the assessment of the Internal Control over Financial Reporting
System (ICFR), covering at least accounting standards, audits, internal control and risk manage-
ment.
The training plans, both in the business units and at the corporate level, include various training actions
focused on the acquisition, updating and recycling of economic-financial, regulatory, risk control and man-
agement knowledge, as well as other regulatory and business aspects, knowledge of which is necessary for
the adequate preparation, reporting, supervision and communication of the Group’s financial information.
Over 17,000 hours of specific training were reported in 2021 on these subjects, including those related to
the development of accounting treatments in International Financial Reporting Standards, taxation, use of
different tools for recording financial information, planning and management, use and protection of data, 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.
Section E of this Annual Corporate Governance Report details the activities, responsibilities and functioning
of the FCC Group Risk Management Model.
• Whether the process encompasses all the financial information objectives (existence and occur-
rence; integrity; appreciation; presentation, breakdown and comparability; and rights and obliga-
tions), whether it is updated and how often.
The Risk Management Model includes a risk master that considers, from different perspectives, risks related
to the most relevant financial reporting 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 Compliance 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 risk identification and assessment processes are updated periodically, in response to both busi-
ness needs and external factors, with periodic reporting of the most significant risks of the different business
units and also of 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 enti-
ties.
Each of the FCC Group areas is responsible for maintaining and updating the consolidation perimeter cor-
responding to its area of activity. Documented procedures are also in place for the reporting of consolidated
economic and financial information to the Administration Area, for the creation of consolidation perimeters
and the execution of the consolidation process. The Accounting Consolidation and Standardisation De-
partment carries out the accounting standardisation function to ensure that the accounting reflection of
operations is correct and homogeneous 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.
• Whether the process takes into account the effects of other types of risks (operational, techno-
logical, financial, legal, reputational, environmental, etc.) to the extent that they affect the finan-
cial statements.
The risk master includes different operational, technological, information security, financial, legal, environ-
mental, reputational and other risks, which are incorporated into the five main categories defined: strategic,
operational, compliance, financial and reporting risks. These risks are valued considering their potential
impact on the financial statements should they materialise.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 57 of 105
_ 760
• Which governing body at the entity supervises the process.
The Audit and Control Committee is responsible for the regular supervision of the internal control and risk
management systems, including tax risks, so that the main risks are properly identified, managed and dis-
closed. This is with the support of the Internal Audit function in the review of controls, the General Adminis-
tration and Finance Division 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 communication with the Risk Management function.
F.3
Control activities
Report, indicating their main characteristics, whether at least the following are in place: :
F.3.1. Procedures for reviewing and authorising the financial information and description
of the Internal Control over Financial Reporting System (ICFR), 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 re-
lating to fraud risk) of the different types of transactions that may materially affect
the financial statements, including the year-end accounting procedure and the spe-
cific review of the relevant resolutions, estimates, measurements and projections.
The high-level functions regarding the Internal Control over Financial Reporting System (ICFR) are assumed
by the General Administration and Finance Division of the FCC Group, which certifies the consolidated ac-
counts in terms of their integrity and accuracy, with the approval 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 recommenda-
tions considered necessary.
Finally, the favourable report of the Audit and Control Committee is a preliminary step as part of the prepa-
ration 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 markets, either quar-
terly 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 consolidation. 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 recorded 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 cooperation with the corresponding Business Divisions.
For each business area, and also for corporate services, the FCC Group has a series of controls to regulate,
supervise and monitor, among others, the 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 Regulations of the Board of Directors,
which describe the specific functions relating to the annual financial statements, the management report
and the relationship with the securities market, the FCC Group has defined procedures on the processes
for closing and maintaining the chart of accounts, including procedures to ensure the correct identifica-
tion of the scope of consolidation, and also the accounting treatment of the different types of processes
and transactions that may affect the financial statements (accounting, tax, insurance, treasury, etc.), and
includes a set of rules that allow economic-financial information to be obtained in a standardised man-
ner, including procedures for making economic-financial information available to the Administration and IT
area, obtaining consolidated information, tax reporting, filing of annual accounts, accounting, related-party
transactions, 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 informa-
tion, 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 pro-
cesses, including the processes for preparing and publishing financial information. Certain processes of the
Infrastructure activities (Construction and Industrial, Water and Environmental Services) have an Information
Security Management System with ISO/IEC 27001 International Certification.
The documentation of the Information Security System includes specific rules on database security, encryp-
tion, access control, equipment configuration control, security on mobile devices, backup copies, incident
management, systems laboratories, networks, password security, privacy, security in developments, doc-
uments and contracting of services with external companies, physical security, roles and responsibilities
in information security, return of technological means and for compliance with the requirements of the
General Data Protection Regulation, and also the Policy on the Use of Technological Means, the Information
Management Policy and the Security Guide on Good Practices when using Technological Means in the non
face-to-face work modality. These regulations are published on the corporate intranet.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 58 of 105
_ 761
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.
F.4 Information and communication
Information and application security is monitored continuously through an SOC (Security Operations Centre)
service, and periodic internal reviews of the computer control environment 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.
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 manual
communicated across the units through which the company operates.
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 cal-
culations or measurements entrusted to independent experts, which may material-
ly affect the financial statements.
The FCC Group Purchasing Regulations, specifically the Purchasing Manual, include the supplier approval
and evaluation processes applicable to activities subcontracted to third parties. These processes are devel-
oped in a specific procedure and are supported by IT tools.
With regard to significant outsourced activities with an impact on the financial statements, the FCC Group
has outsourced the provision of management services for its IT and telecommunications infrastructures, and
also the support of 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 pro-
cedures 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 cal-
culations and the appraisal of certain fixed assets. The General Administration and Finance Division monitors
these activities.
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 accordance 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.
Responsibility for the application of the accounting policies at the FCC Group is centralised through the
General Administration and Finance Division, to which the Accounting Consolidation and Standardisation
Department and Administrative Coordination Department 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 Economic 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 application 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 Economic and Financial Manual containing the accounting regulations is available on the Group’s Cor-
porate Intranet. Different departments within the General Administration and Finance Division take care
of the updating and maintenance of this system. The FCC Group also has a Tax Code and a Tax Control
Framework Standard.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 59 of 105
_ 762
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 Internal Control over Financial Reporting System (ICFR).
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 account plan. Through this tool, the General Administration and Finance Department collects compre-
hensive 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 pro-
cesses 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 information 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 instruc-
tions, to those responsible for providing the corresponding financial information. The Administrative Coordi-
nation Department, specifies, 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.
With a view to complying with ESEF regulations, the IT tools for XBRL tagging of the consolidated financial
statements and notes to the annual financial statements have been adapted in order to publish these ac-
counts in XHTML format.
F.5.1. The Internal Control over Financial Reporting System (ICFR) 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 ICFR. Furthermore, the
scope of the Internal Control over Financial Reporting System (ICFR) 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
measures, 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 Committee 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.
– Supervision of the company’s internal audit services to ensure the proper functioning of the internal con-
trol and information systems, with the head of internal audit being obliged to submit to the Committee its
annual work plan and to inform it directly of any incidents arising during its implementation, and also to
submit a report on its activities at the end of each year.
– Supervise and analyse the effectiveness of the internal control and risk management carried out by the
Company.
– Supervise the process of preparing and submitting the financial statements and management reports,
both individual and consolidated, and the periodic financial information disclosed to the markets, ensur-
ing compliance with legal requirements and the correct application of generally accepted accounting
principles.
– Periodically supervise the Internal Control and Risk Management Systems, including tax risks, so that the
main risks are properly identified, managed and made known.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 60 of 105
_ 763
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. The responsibilities and competencies related to the Internal Control over Financial Reporting
System (ICFR) include:
– Collaborating in the supervision of the process for preparing and submitting the Group’s financial infor-
mation before it is issued to the market.
– Contributing, together with the other functions involved, to the development of internal control by su-
pervising compliance with the policies, standards, procedures and activities that constitute the internal
control model in order to mitigate risks, issuing recommendations for improvement.
– Supervising projects and processes, carrying out a risk identification and an assessment 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 detected are commu-
nicated by the General Internal Audit and Risk Management Division to the Audit and Control Committee.
The Audit and Control Committee is also responsible for approving and monitoring the Annual Activity Plan
to be carried out by the Audit and Risk Management Directorate General, and also for supervising the work
performed. As part of the 2021 Annual Plan, the following work has been carried out mainly in relation to
risk management and control and the monitoring of the Group’s Financial Information, in different areas:
– Review of significant applications in the field of the FCC Group’s Information Technologies, as well as
certain aspects of physical and logical security.
– Monitoring of internal control weaknesses detected during both the Internal and External Audit of the IT
area.
– Collaborating in the supervision of the individual and consolidated annual accounts 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 regulators and markets and
supervised by the Audit and Control Committee:
• Annual financial report.
• Management reports.
• Six-monthly financial report.
• Quarterly reports.
• Annual Corporate Governance Report.
– Review of the control environment in relation to the prevention of money laundering and terrorist financ-
ing.
– Pre-approval of services other than audit services provided by audit firms, collaborating 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 review-
ing financial information and contractual risks.
– Audit of sample procedures and review of supporting processes.
– Supervision of the FCC Group Criminal Compliance Model.
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 annual
accounts or those entrusted to them. Furthermore, indicate whether an action plan
is in place that seeks to correct or mitigate the shortcomings identified.
The Regulations 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 Senior Management, holding regular meetings, both to obtain
information required for the performance of his/her work, and to communicate the control shortcomings
detected. The main conclusions of their reviews are presented to the Audit and Compliance Committee,
detailing the internal control weaknesses revealed in the course of their review of the Group’s annual financial
statements, including any aspects they consider relevant. In 2021, the External Auditor attended the Audit
and Control Committee four times, presenting four reports.
Additionally, the Internal Audit and Risk Management Department periodically informs the Audit and Com-
pliance Committee of the most relevant aspects of relations with the external auditors and the results of the
work included in the Audit Plan related to the supervision of the reliability and integrity of the financial and
management information of the Group companies prior to its release to the market, the reviews carried out
in relation to compliance with internal and external regulatory requirements, the functioning of the internal
control systems, and the development and functioning of the risk management systems, as well as the sig-
nificant internal control weaknesses identified therein, indicating the recommendations to be implemented
for their improvement.
In addition, the Audit and Control Committee, in addition to relying on the Directorate General Internal Audit
and Risk Management to fulfil its responsibilities and competencies, will have the support and backing of
other areas or functions. In this regard, the Audit and Control Committee receives reports from the General
Administration and Finance Division, the Corporate Compliance Officer and various corporate functions
regarding materialised risks.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 61 of 105
_ 764
F.6
Other relevant information
N/A
F.7
External auditor’s report
Report on:
F.7.1. Whether the Internal Control over Financial Reporting System (ICFR) 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. Other-
wise, the reasons for not doing so shall be indicated.
The information contained here on the Internal Control over Financial Reporting System (ICFR) has been
submitted to review by the external auditor, whose report is attached as an appendix to this document. The
review has been based on the “Action Guidelines and Reporting Model for the auditor regarding information
relating to the Internal Control over Financial Reporting System (ICFR) of listed companies” published by the
CNMV in 2013.
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 are not acceptable.
1. Que los estatutos de las sociedades cotizadas no limiten el número máximo de
votos que pueda emitir un mismo accionista, ni contengan otras restricciones
que dificulten la toma de control de la sociedad mediante la adquisición de sus
acciones en el mercado.
Compliant
Explain
2. Where the listed company is controlled, within the meaning established by Arti-
cle 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 public-
ly 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 62 of 105
_ 765
b) The proposed mechanisms for resolving any conflicts of interests that may
arise.
Compliant
Partially compliant
Explain
Not applicable
The Audit and Control Committee is responsible for the knowledge of related-party transactions, which
are subject to regulatory controls.
3. During the ordinary general shareholders’ meeting, in addition to the dissemina-
tion 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) Changes that have occurred since the last General Shareholders’ Meeting.
b) Specific reasons why the company has not followed one or more of the rec-
ommendations of the Code of Corporate Governance and the alternative
rules applied, if any.
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 infor-
mation made available before the Meeting is held.
In this regard, the notice of the General Shareholders’ Meeting expressly states in the “Right to Informa-
tion” section that any shareholder may obtain from the Company, for examination at the registered office
or to be sent immediately and free of charge, among other documents, the Annual Corporate Govern-
ance Report, which is submitted to the shareholders for approval as part of the Management Report.
This report is available online on the Company’s website under its corporate governance section.
4. The company defines and promotes a policy regarding communication and con-
tact with shareholders, institutional investors in the framework of their involve-
ment 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 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 Shareholders, Institutional
Investors, Analysts, Voting Advisors and Credit Rating Agencies, which the Board of Directors may
approve in financial year 2022.
Notwithstanding the above, in practice, the Company, in its communication activities, fully observes the
rules against market abuse and gives similar treatment to shareholders in the same position and, within
the framework of legal obligations to disclose inside and other regulated information, the Company
endeavours to maximise the dissemination and quality of information available to the market, investors
and other stakeholders.
5. The Board of Directors should not submit to the General Shareholders’ Meeting
any proposal for delegation of powers allowing the issue of shares or convert-
ible securities with the exclusion of first refusal rights in an amount exceeding
20% of the capital at the time of delegation.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 63 of 105
_ 766
And the company should have mechanisms in place allowing the delegation and
casting of votes by means of data transmission and even, in the case of large-
caps and to the extent that it is proportionate, attendance and active participa-
tion in the General Meeting to be conducted by such remote means.
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 and
remuneration committee.
c) Report of the audit committee on related transactions.
Compliant
Partially compliant
Explain
The Company publishes on its website, together with the other documentation that must be made avail-
able to shareholders when the General Meeting is convened, the report of the Audit and Compliance
Committee on the independence of the auditor, as well as the reports on the functioning of the Audit
and Compliance Committee and the Appointments and Remuneration Committee.
With regard to related-party transactions, the Audit and Control Committee, which exercises, in accord-
ance with the law, the function of reporting on related-party transactions to be approved by the General
Meeting or the Board of Directors.
In this regard, the Company considers that information on related-party transactions is sufficiently dis-
closed to shareholders in section D of the IAGC, which lists the significant related-party transactions
that have taken place during the year.
7. The company should transmit in real time, through its website, the proceedings
of the General Shareholders’ Meetings.
And the company should have mechanisms in place allowing the delegation and
casting of votes by means of data transmission and even, in the case of large-
caps and to the extent that it is proportionate, attendance and active participa-
tion in the General Meeting to be conducted by such remote means.
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.
Compliant
Partially compliant
Explain
9. The company should permanently publish on its website the requirements and
procedures for certification of share ownership, the right of attendance at the
General Shareholders’ Meetings, and the exercise of the right to vote or to issue
a proxy.
These requirements and procedures promote the attendance and exercise of
shareholders’ rights and are applied in a non-discriminatory manner.
Compliant
Partially compliant
Explain
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 64 of 105
_ 767
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 should:
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) Submit 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.
Compliant
Partially compliant
Explain
Not applicable
11. If the company plans to pay out attendance premiums to the General Sharehold-
ers 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 should perform its functions with a unity of purpose and
independence of criterion, treating all similarly situated shareholders equally
and being guided by the best interests of the company, which is understood
to mean the pursuit of a profitable and sustainable business in the long term,
promoting its continuity and maximising the economic value of the business.
And in pursuit of the company’s interest, in addition to complying with applica-
ble law and rules and conducting itself on the basis of good faith, ethics and a
respect for commonly accepted best practices, it should seek to reconcile its
own company interests, when appropriate, with the interests of its employees,
suppliers, clients and other stakeholders that may be affected, as well as the
impact of its corporate activities on the communities in which it operates 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
14. The Board of Directors should approve a policy aimed at favouring an appropri-
ate composition of the Board and that:
a) be specific and verifiable;
b) ensure that proposed appointments and re-elections are based on a prelim-
inary analysis of the powers required by the board of directors; and
c) promote the diversity of knowledge, experience, age and gender. For these
purposes, measures that encourage the company to have a significant num-
ber 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 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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 65 of 105
_ 768
The Appointments Committee will verify compliance with this policy and will be
informed in the Annual Corporate Governance Report.
Compliant
Partially compliant
Explain
Article 38.4.j) of the Regulations of the Board of Directors establishes the following among the functions
of the Appointments and Remuneration Committee: “Assist the Board in its function of ensuring that
the procedures for selecting its members favour diversity with respect to matters such as age, gender,
disability or professional training and experience and do not suffer from implicit biases that could imply
any discrimination and, in particular, that they facilitate the selection of female directors in a number that
allows a balanced presence of women and men to be achieved, in such a way that the Company delib-
erately seeks and includes among the potential candidates, women who meet the desired professional
profile, and the Board must explain, where appropriate, through the Annual Corporate Governance
Report, the reason for the low or non-existent number of female directors and the initiatives adopted to
correct such situation. For this purpose, it should set a target for representation of the under-represent-
ed sex on the board and develop guidance on how to achieve this target”.
Thus, 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-discrimination policies,
contemplates the implementation of inclusion policies and non-discrimination programmes at signatory
companies.
Notwithstanding the foregoing, the Company has not considered it necessary at this time to include the
various provisions already in place regarding the composition and diversity of directors in a specific doc-
ument formally called a “policy”, although the essential principles of Recommendation 14 are included
in the rules of conduct of the Company’s governing bodies and are applied by them when necessary.
15. Proprietary and independent directors should constitute a substantial majority
of the Board of Directors and the number of executive directors should be kept
to a minimum, taking into account the complexity of the corporate group and the
percentage of equity participation of executive directors.
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 direc-
tors out of a total of 14, entailing a percentage of 28.57.
16. The number of proprietary directors as a percentage of the total number of
non-executive directors should not be greater than the proportion of the com-
pany’s share capital represented by those directors and the rest of the capital.
This criterion may be relaxed:
a) a) At companies with a high capitalisation with few shareholdings consid-
ered 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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 66 of 105
_ 769
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.
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 share capital; 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
Explain
Compliant
Partially compliant
Explain
Not applicable
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 considers that such percentage does not make it necessary to increase the number of independ-
ent directors, taking into account the highly concentrated shareholding structure of the Company and
the effective role played by the three independent directors.
18.Companies should publish the following information on its directors on their
websites 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.
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
20. Proprietary directors representing significant shareholders should resign from
the Board when the shareholder they represent disposes of its entire sharehold-
ing. They should also resign, in a proportional fashion, in the event that said
shareholder reduces its percentage interest to a level that requires a decrease in
the number of proprietary directors.
Compliant
Partially compliant
Explain
Not applicable
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 Appoint-
ments 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 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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 67 of 105
_ 770
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.
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 cor-
porate 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 explain
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.
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 Regulations of the Board establish the maximum number of Boards on
which its directors may serve.
Compliant
Partially compliant
Explain
Article 21.4 of the Regulations of the Board of Directors stipulates that “Directors must inform the
Appointments and Remuneration Committee of their other professional obligations, in case they might
interfere with the dedication proper to their position”.
Article 38.4.a) of the Regulations of the Board of Directors also establishes that the functions of this
Committee include “Assessing the skills, knowledge and experience required on the Board of Direc-
tors. For these purposes, it shall define the functions and skills required of the candidates to fill each
vacancy and shall assess the time and dedication necessary for them to perform their duties effectively,
ensuring that the non-executive directors have sufficient time available for the proper performance of
their duties”.
The Company, for the time being, has not set the maximum number of boards to which each director
may belong, given that the proven dedication of the directors to the company is adequate, without it
being considered necessary, therefore, to indicate such number, for which reason the Company under-
stands that it partially complies with the recommendation.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 68 of 105
_ 771
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 year, with each director allowed
to individually propose other items on the agenda not initially provided for.
Compliant
Partially compliant
Explain
27. The absence of directors is limited to indispensable cases and quantified in the
Annual Corporate Governance Report. And when absences do occur, the direc-
tor should appoint a proxy with instruction.
Compliant
Partially compliant
Explain
Although during financial year 2021, absences of directors have been reduced to essential cases, no
proxies have been granted with instructions when absences have been necessary.
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
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 duties,
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.
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
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
Partially compliant
Explain
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 69 of 105
_ 772
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 refreshver programmes for each di-
rector, when the circumstances so advise.
Compliant
Partially compliant
Explain
34. When there is a coordinating director, the Bylaws or the Regulations 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 ab-
sence of the Chairman and Vice 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 should pay special attention to ensure
that the activities and decisions of the Board of Directors take into account such
recommendations regarding good governance contained in this Good Govern-
ance Code as may be applicable to the company.
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 workings 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.
e) The performance and contribution of each director, paying particular atten-
tion to those responsible for the different Committees of the Board of Direc-
tors.
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 consult-
ant 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 An-
nual Corporate Governance Report.
The process and areas evaluated must 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 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 year.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 70 of 105
_ 773
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.
40. Under the supervision of the audit committee, there should be an internal audit
unit to ensure the proper functioning of internal control and information sys-
tems, reporting functionally to the non-executive chairman of the board or the
chairman of the audit committee.
Compliant
Partially compliant
Explain
Not applicable
The Secretary of the Executive Committee is the same as the Secretary of the Board and, in addition,
has several non-executive members. However, the composition of this Committee, whose members
have been appointed by the Board taking into account the knowledge, skills and experience of the
directors and the duties of the Committee, does not include any independent directors, three of whom
are present in the full 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.
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 year.
Compliant
Partially compliant
Explain
Not applicable
38. The board of directors should always be informed of the business transacted
and decisions taken by the executive committee and all members of the board
of directors should receive copies of the minutes of the meetings of the execu-
tive committee.
42. In addition to those provided by law, the Audit Committee assumes responsibil-
ity for the following functions:
1. In relation to information and internal control systems:
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
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 71 of 105
_ 774
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 company’s Audit and Compliance Committee performs all the functions envisaged in this recom-
mendation, with the sole exception of the meeting of the external auditor with the full board referred to
in section 2.d) of this recommendation, which does not take place, given that, in accordance with the
provisions of article 15.1 of the Board Regulations, the board’s relations with the external auditor are
channelled through the Audit and Compliance Committee, this being the ordinary sphere of information
of the external auditor to the members of the board.
Notwithstanding this, the Board is duly informed of the most relevant issues dealt with in the Committee,
given that, on the one hand, the Committee reports to the Board on the development of its functions,
informing the Board, at the first plenary session following the Committee’s meetings, of the activity
carried out by the Committee and, on the other hand, a copy of its minutes is sent to all the members
of the Board.
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
Partially compliant
Explain
b) Ensure the independence of the Internal Audit function; propose the se-
lection, appointment and removal of the head of the Internal Audit ser-
vice, as well as the budget of this service; approving or proposing ap-
proval 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.
c) Establish and supervise a mechanism that allows employees and other
persons related to the company, such as directors, shareholders, suppli-
ers, contractors or subcontractors, to report potentially significant irreg-
ularities, 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 anonymously,
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.
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.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 72 of 105
_ 775
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.
46. Under the direct supervision of the Audit Committee or, where appropriate, a spe-
cialised committee of the Board of Directors, there is an internal risk control and
management function performed by an internal unit or department at the compa-
ny that has been expressly attributed the following functions:
Compliant
Partially compliant
Explain
Not applicable
To date, all directors at the company, including independent directors, have voted in favour of the trans-
actions 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) The different types of risk, both financial and non-financial, (including oper-
ational, 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.
d) The measures planned to mitigate the impact of the risks identified, should
they materialise.
e) 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
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.
Compliant
Partially compliant
Explain
The Appointments and Remuneration Committee is currently made up of two proprietary and two inde-
pendent directors, one of whom is the Chairman.
FCC considers that the configuration of the Appointments and Remuneration Committee, with two
independent directors out of a total of four, and one of them being the chairman, sufficiently guarantees
the proper functioning of this Committee, considering the most relevant aspect for the purposes of the
composition of the Committee to be that all its members have been appointed by the Board bearing in
mind the knowledge, skills and experience of the directors and the duties of each Committee.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 73 of 105
_ 776
48. Large-cap companies should have a separate appointments committee and a
d) Ensure that any conflicts of interest do not undermine the independence of
separate remuneration committee.
the external advice provided to the committee.
Compliant
Explain
Not applicable
The two recommended committees are integrated into a single Appointments and Remuneration Com-
mittee when considering the Board of Directors:
e) Verify the information on directors’ and senior executives’ remuneration con-
tained in the various corporate documents, including the annual directors
remuneration report.
–
that the union of the two facilitates the fulfilment of the attributed functions.
Compliant
Partially compliant
Explain
–
two separate Committees would not have sufficient matters to deal with during the year to justify
the separation, considering that a single Committee can fully comply with all the functions attributed
to each Committee by law and the Recommendations of the Code of Good Governance of listed
companies.
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 execu-
tive 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
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:
a) Propose to the Board of Directors the basic conditions of senior manage-
ment contracts.
b) Verify compliance with the remuneration policy established by the company.
c) Regularly review the remuneration policy applied to directors and senior ex-
ecutives, including the share based remuneration systems and their applica-
tion, and ensure that their individual remuneration is in line with that paid to
the other directors and senior executives at the Company.
51. The remuneration committee should consult with the company’s chairman and
CEO, especially on matters relating to executive directors and senior execu-
tives.
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 ma-
jority 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 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.
d) The committees may seek external advice, when they consider it necessary
for the carrying out of their duties.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 74 of 105
_ 777
e) Minutes should be taken of their meetings and made available to all direc-
e) The supervision and evaluation of the processes of relationship with the dif-
tors.
ferent stakeholders.
Compliant
Partially compliant
Explain
Not applicable
Compliant
Partially compliant
Explain
53. Supervision of compliance with the company’s environmental, social and corpo-
rate 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 commit-
tee 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-execu-
tive directors, the majority of whom should be independent, and should be spe-
cifically attributed at least the duties indicated in the following recommendation.
55. Sustainability policies on environmental and social issues should at least identi-
fy and include:
a) The principles, commitments, objectives and strategy with regard to share-
holders, employees, customers, suppliers, social issues, environment, diver-
sity, accountability, respect for human rights and prevention of corruption
and other unlawful actions.
b) Methods or systems for monitoring compliance with policies, associated
risks and their management.
c) Mechanisms for monitoring non-financial risk, including those related to eth-
Compliant
Partially compliant
Explain
ical and business conduct issues.
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 medi-
um-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.
d) Ensuring that the company’s environmental and social practices are in line
with the established strategy and policy.
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 responsibility
required for the position, but should not be so high as to compromise the inde-
pendent judgement of non-executive directors.
Compliant
Explain
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5 FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 75 of 105
_ 778
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 sys-
tems, 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.
And, in particular, that the variable components of remuneration:
i. Should be linked to performance criteria that are predetermined and measur-
able, 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-financial
criteria that are appropriate for the creation of long-term value, such as com-
pliance with the company’s internal rules and procedures and its policies for
risk control and management.
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 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, 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 vari-
able 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 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
Partially compliant
Explain
Not applicable
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 76 of 105
_ 779
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
Although article 38 of the Articles of Association provides for the possibility that directors may be re-
munerated through the delivery of shares or stock options of the Company itself, the Company has not
considered it necessary for the time being to establish remuneration to its executive directors through
the delivery of shares or financial instruments referenced to their value, since it considers that the current
variable remuneration systems for its executive directors are the most appropriate to encourage their
motivation and professional performance, as well as their commitment and linkage to the interests of the
Company and the Group. In particular, the variable remuneration of the Chief Executive Officer, as ex-
pressly set forth in the current Remuneration Policy, shall be established, implemented and maintained
in line with the business and risk management strategy of the Company, its risk perfil, its objectives, its
risk management practices, and the short, medium and long-term performance and interests of FCC
as a whole, and shall include measures aimed at avoiding conflicts of interest.
62. Once the shares, options or financial instruments corresponding to the remuner-
ation systems have been attributed, executive directors may not transfer owner-
ship 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 exer-
cise, a net economic exposure to share price changes of a market value equiva-
lent 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
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 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
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 77 of 105
_ 780
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 men-
tion 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
slightly updated the Group’s Code of Ethics and Conduct.
The FCC Group provides its employees with a Whistleblowing Channel for reporting
possible 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
decision to adhere to the Code of Good Tax Practices, thereby effectively complying
with the obligations arising from it each year.
This annual corporate governance report was approved by the company’s Board of Direc-
tors at its meeting on 23 February 2022.
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
Observations
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 78 of 105
_ 781
Auditor's Report on Information Relating to Internal
Control Over Financial Reporting (ICFR) of FOMENTO DE
CONSTRUCCIONES Y CONTRATAS, S.A. for the year
ended December 31, 2021
Ernst & Young, S.L.
Calle de Raimundo Fernández Villaverde, 65
28003 Madrid
Tel: 902 365 456
Fax: 915 727 238
ey.com
AUDITOR’S REPORT ON “INFORMATION RELATING TO THE INTERNAL CONTROL OVER
FINANCIAL REPORTING (ICFR)”
(Translation of a report and the information relating to the internal control over financial reporting originally
issued in Spanish. In the event of discrepancy, the Spanish-language version prevails).
To the Directors of FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A.:
As requested by the Board of Directors of FOMENTO DE CONSTRUCCIONES Y CONTRATAS,
S.A. (hereinafter, the Company) and our proposal letter of January 27, 2022, we have
applied certain procedures in relation to the accompanying “ICFR disclosures” of FOMENTO
DE CONSTRUCCIONES Y CONTRATAS, S.A for the year ended December 31, 2021, which
summarizes the Company's internal control procedures in respect of its annual financial
reporting.
The Board of Directors is responsible for adopting the appropriate measures in order to
reasonably guarantee the implementation, maintenance, and supervision of an adequate
internal control system as well as developing improvements to that system and preparing
and establishing the content of the accompanying ICFR-related information.
It should be noted that irrespective of the quality of the design and operability of the
internal control system adopted by the Company in relation to its annual financial reporting,
it can only provide reasonable, rather than absolute assurance with respect to the
objectives pursued, due to the inherent limitations to any internal control system.
In the course of our financial statement audit work and in keeping with Spain's Technical
Auditing Standards, the sole purpose of our assessment of the Company's internal controls
was to enable us to establish the scope, nature, and timing of the Company's financial
statement audit procedures. Accordingly, our internal control assessment, performed in
connection with the financial statement audit, was not sufficiently broad in scope to enable
us to issue a specific opinion on the effectiveness of the internal controls over the annual
financial disclosures that the Company is required to present.
For the purpose of issuing this report, we exclusively applied the specific procedures
described below and indicated in the Guidelines on the Auditor’s Report on Information
Relating to The Internal Control Over Financial Reporting of listed companies, published by
the Spanish National Securities Market Commission on its website, which establishes the
work to be performed, the minimum scope thereof and the content of this report. Given that
the scope of the abovementioned procedures performed was limited and substantially less
than that of an audit carried out in accordance with generally accepted accounting
principles, we have not expressed an opinion regarding its efficacy, design, or operational
effectiveness regarding the Entity's 2021 financial data described in the accompanying
ICOFR information. As a result, had we performed additional procedures to those stipulated
in the abovementioned Guidelines or had we performed an audit or review of the internal
controls over the annual financial disclosures that the Company is required to present, other
matters might have come to our attention that would have been reported to you.
Domicilio Social: C/ Raimundo Fernández Villaverde, 65. 28003 Madrid - Inscrita en el Registro Mercantil de Madrid, tomo 9.364 general, 8.130 de la sección 3ª del Libro de Sociedades, folio 68, hoja nº 87.690-1,
inscripción 1ª. Madrid 9 de Marzo de 1.989. A member firm of Ernst & Young Global Limited.
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 79 of 105
_ 782
2
3
This report was prepared exclusively under the scope of the requirements stipulated in
article 540 of the Consolidated Text of Spain's Corporate Enterprises Act and the CNMV
circulars on ICFR-related descriptions in listed companies' Annual Corporate Governance
Reports.
ERNST & YOUNG, S.L.
(Signature on the original in Spanish)
________________________
Fernando González Cuervo
February 24, 2022
Furthermore, given that this special assignment neither constitutes a financial statement
audit nor is it subject to prevailing audit regulations in Spain, we do not express an audit
opinion in the terms provided for in said regulations.
The procedures performed were the following:
1.
2.
3.
4.
5.
6.
Read and understand the information prepared by the Company in relation to the
ICFR -which is disclosed in the Annual Corporate Governance Report disclosure
information included in the Directors’ Report-and assess whether such information
addresses all the required information which will follow the minimum content
detailed in paragraph F, relating to the description of the ICFR, as per the model
Annual Corporate Governance Report established by CNMV Circular nº 5/2013 of
June 12, 2013 of the CNMV and subsequent amendments, the most recent being
CNMV Circular nº 3/2021 of September 28 (hereinafter, the CNMV Circulars).
Making inquiries of personnel in charge of preparing the information described in
point 1 above in order to: (i) obtain an understanding of the process followed in its
preparation; (ii) obtain information which will allow us to assess whether the
terminology used is adapted to the definitions provided in the reference framework
definitions; (iii) obtain information on whether the control procedures described are
implemented and in use by the Company.
Reviewing the explanatory documentation supporting the information detailed in
item 1 above, including documents directly made available to those responsible for
describing ICFR systems. This documentation includes reports prepared by the
Internal Audit Department, senior management, and other internal and external
experts in their role supporting the audit and control committee.
Comparing the information detailed in item 1 above with their knowledge of the
Company’s ICFR obtained through the external audit procedures applied during the
annual audit of the financial statements.
Reading of the minutes taken at meetings of the board of directors, audit and control
committee, and other committees of the Company to evaluate the consistency
between the ICFR businesses transacted and the information detailed in item 1
above.
Obtaining a management representation letter in connection with the work
performed, signed by those responsible for preparing and authorizing the
information detailed in item 1 above.
The specific procedures carried out in respect of the Company's ICFR disclosures did not
reveal any inconsistencies or incidents that could affect such disclosures.
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 80 of 105
_ 783
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ISSUER IDENTIFICATION DETAILS
End date of the reference year:
31/12/2021
Tax ID:
A-28037224
Company Name:
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A.
Registered address:
BALMES, 36 BARCELONA
A. OWNERSHIP STRUCTURE
A.1. Complete the following table on share capital and
the attributed voting rights, including those corresponding
to shares with a loyalty vote as of the closing date of the year, where appropriate:
(cid:3)
Indicate whether company bylaws contain the provision of double loyalty voting:
[
]
[ √ ]
Yes
No
Date of most
recent change
27/07/2021
Share capital (€)
Number of shares
Number of voting rights
425,173,636.00
425,173,636
425,173,636
Indicate whether there are different share classes with different associated rights:
[
]
[ √ ]
Yes
No
A.2. List the company’s significant direct and indirect shareholders at year end, including directors with a
significant shareholding:
Name or company
name of shareholder
GATES III
WILLIAM H
CONTROL
EMPRESARIAL DE
CAPITALES, S.A. DE
C.V.
NUEVA SAMEDE
2016, S.L.U.
ESTHER
KOPLOWITZ
ROMERO DE
JUSEU
CARLOS SLIM
HELÚ
% voting rights attributed
to shares
% voting rights through
financial instruments
Direct
Indirect
Direct
Indirect
% of total voting
rights
0.00
5.74
0.00
0.00
5.74
61.20
13.00
0.00
0.00
74.20
4.54
0.00
0.00
0.00
4.54
0.03
4.54
0.00
0.00
4.57
0.00
7.01
0.00
0.00
7.01
1 / 51
2 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 81 of 105
_ 784
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
Breakdown of indirect holding:
Name or company
name of the
indirect owner
GATES III
WILLIAM H
GATES III
WILLIAM H
CONTROL
EMPRESARIAL DE
CAPITALES, S.A. DE
C.V.
ESTHER
KOPLOWITZ
ROMERO DE JUSEU
CASCADE
INVESTMENT, LLC.
BILL & MELINDA
GATES FOUNDATION
TRUST
DOMINUM
DIRECCION Y
GESTION, S.A.
NUEVA SAMEDE 2016,
S.L.U.
CARLOS SLIM HELÚ
FINVER INVERSIONES
2020, S.L.U
Name or company
name of direct owner
% voting rights
attributed to shares
% voting rights
through financial
instruments
% of total voting rights
3.99
1.75
0.00
0.00
3.99
1.75
8.46
0.00
8.46
4.54
7.01
0.00
0.00
4.54
7.01
Name or company
name of director
% voting rights
attributed to shares
% voting rights
through financial
instruments
% of total voting
rights
% voting rights that
can be transferred
through financial
instruments
INMOBILIARIA AEG, S.A.
DE C.V.
GERARDO KURI
KAUFMANN
Direct
Indirect
Direct
Indirect
Direct
Indirect
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.07
0.00
0.00
0.00
0.07
0.00
0.00
HENRI PROGLIO
0.00
0.00
0.00
0.00
0.00
0.00
0.00
JUAN RODRÍGUEZ
TORRES
SAMEDE INVERSIONES
2010, S.L.U
ÁLVARO VÁZQUEZ
LAPUERTA
ANTONIO GÓMEZ
GARCIA
0.08
0.00
0.00
0.00
0.08
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
0.01
0.00
0.00
0.00
0.01
0.00
0.00
Total percentage of voting rights held by the Board of Directors
8.80
A.3. Give details of the participation at the close of the fiscal year of the members of the board of directors
who are holders of voting rights attributed to shares of the company or through financial instruments,
whatever the percentage, excluding the directors who have been identified in Section A2 above:
Breakdown of indirect holding:
Name or company
name of director
% voting rights
attributed to shares
% voting rights
through financial
instruments
% of total voting
rights
% voting rights that
can be transferred
through financial
instruments
Direct
Indirect
Direct
Indirect
Direct
Indirect
ALEJANDRO
ABOUMRAD
GONZÁLEZ
0.07
0.00
0.00
0.00
0.07
0.00
0.00
PABLO COLIO ABRIL
0.03
0.00
0.00
0.00
0.03
0.00
0.00
DOMINUM DESGA, 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
DOMINUM DIRECCION
Y GESTION, S.A.
ALICIA ALCOCER
KOPLOWITZ
MANUEL GIL
MADRIGAL
0.08
0.00
0.00
0.00
0.08
0.00
0.00
0.00
0.01
0.00
0.00
0.01
0.00
0.00
[ √ ]
]
[
Yes
No
3 / 51
Name or company
name of director
Name or
company name
of direct owner
% voting rights
attributed to
shares
% voting rights
through
financial
instruments
% of total 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
List the total percentage of voting rights represented on the board:
Total percentage of voting rights represented on the board of directors
81.24
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 so, describe them briefly and
shareholders bound by the agreement:
list the
(cid:3)
4 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 82 of 105
_ 785
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
Parties to the
shareholders' agreement
% of share capital
concerned
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
Brief description of the agreement
Relevant Fact of 5 February 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 Samede 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").
ESTHER KOPLOWITZ
ROMERO DE JUSEU,
CONTROL
EMPRESARIAL DE
CAPITALES, S.A. DE C.V.
50.16
Relevant Fact of 27 November 2014:
FCC's controlling shareholder reported
that negotiations with Control
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.
Indefinite
Indicate whether the Company is aware of any concerted actions among its shareholders. If so, describe
them briefly:
[
]
[ √ ]
Yes
No
A.8. Indicate whether any individual or company exercises or may exercise control over the company
in accordance with Article 5 of the Securities Market Act. If so, identify them:
[ √ ]
]
[
Yes
No
Expiry date of the
agreement, if any
CONTROL EMPRESARIAL DE CAPITALES, S.A. DE C.V.
Name or company name
A.9. Complete the following table with details of the company’s treasury shares:
At the close of the year:
Number of
direct shares
Number of
indirect shares(*)
Total % of
share capital
2,410,758
0.57
Indefinite
(*) Through:
No data
Name or company name of direct owner
Number of
direct shares
A.11. Estimated floating capital:
Estimated floating capital
%
12.15
A.14. Indicate whether the company has issued shares that are not traded on a regulated EU market.
[ √ ]
]
[
Yes
No
B. GENERAL SHAREHOLDERS' MEETING
B.4. Give details of attendance at General Shareholders’ Meetings held during the reporting year and
the
two previous years:
Date of general meeting
28/06/2017
Of which, Floating capital:
28/06/2018
Attendance data
% physical
presence
% by proxy
% remote voting
Electronic voting
Other
(cid:3)
Total
20.26
0.24
20.12
68.63
7.52
69.42
0.00
0.00
0.00
0.03
0.03
0.00
88.92
7.79
89.54
5 / 51
6 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 83 of 105
_ 786
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
Date of general meeting
Of which, Floating capital:
08/05/2019
Of which, Floating capital:
02/06/2020
Of which, Floating capital:
29/06/2021
Of which, Floating capital:
Attendance data
% physical
presence
% by proxy
% remote voting
Electronic voting
Other
Total
C. STRUCTURE OF THE COMPANY'S ADMINISTRATION
0.06
20.08
0.12
0.21
0.10
0.25
0.25
8.31
70.74
9.22
61.76
9.73
46.46
10.90
0.00
0.00
0.00
0.01
0.01
0.00
0.00
0.00
0.01
0.01
28.17
0.01
44.06
0.43
8.37
90.83
9.35
90.15
9.85
90.77
11.58
C.1. Board of Directors
C.1.1 Maximum and
minimum number of directors established in the articles of association and
set
by the general shareholders' meeting:
(cid:3)
Maximum number of directors
Minimum number of directors
Number of directors set by general
shareholders' meeting
15
9
14
(cid:3)
B.5. Indicate whether any point on the agenda of the General Shareholders’ Meetings during the year was not
C.1.2 Complete the following table on board members:
approved by the shareholders for any reason.
[
]
[ √ ]
Yes
No
B.6. Indicate whether the articles of incorporation contain any restrictions requiring a minimum number
of shares to attend General Shareholders’ Meetings, or to vote remotely:
[
]
[ √ ]
Yes
No
Name or
company name
of director
HENRI
PROGLIO
Representative
Director
category
Position on
the board
First
appointment
date
Last
appointment
date
Election
procedure
DOMINUM
DESGA, S.A.
ESTHER
ALCOCER
KOPLOWITZ.
INMOBILIARIA
AEG, S.A. DE
C.V.
CARLOS SLIM
HELÚ
PABLO COLIO
ABRIL
ALEJANDRO
ABOUMRAD
GONZÁLEZ
GERARDO
KURI
KAUFMANN
7 / 51
Independent DIRECTOR
27/02/2015
08/05/2019
Proprietary
CHAIRMAN
27/09/2000
02/06/2020
Proprietary
DIRECTOR
13/01/2015
08/05/2019
Executive
CHIEF
EXECUTIVE
OFFICER
12/09/2017
28/06/2018
Proprietary
VICE CHAIRMAN
13/01/2015
02/06/2020
Executive
DIRECTOR
13/01/2015
08/05/2019
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
8 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 84 of 105
_ 787
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
Name or
company name
of director
Representative
Director
category
Position on
the board
First
appointment
date
Last
appointment
date
Election
procedure
JUAN
RODRÍGUEZ
TORRES
ÁLVARO
VÁZQUEZ
LAPUERTA
MANUEL GIL
MADRIGAL
ALFONSO
SALEM SLIM
ANTONIO
GÓMEZ
GARCIA
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
ALICIA
ALCOCER
KOPLOWITZ
Proprietary
VICE CHAIRMAN
13/04/2015
08/05/2019
Proprietary
DIRECTOR
26/10/2004
08/05/2019
Proprietary
DIRECTOR
29/06/2021
29/06/2021
Total number of directors
14
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
GENERAL
SHAREHOLDE
RS' MEETING
RESOLUTION
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
company name
of director
Category of the
director at the
time of cessation
Last
appointment
date
Date of cessation
Special
committees
of which he/she
was a member
Indicate whether
the director left
before the end
of his/her term
of office
No data
C.1.3 Complete the following tables on the members of the Board and
their categories:
EXECUTIVE DIRECTORS
(cid:3)
Name or company
name of director
Post in company's
organisation chart
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 26 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 Vice Chairman
of FCC Servicios Medio Ambiente Holding, S.A.U. 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.
Total number of executive directors
% of the total Board
2
14.29
9 / 51
10 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 85 of 105
_ 788
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 company
name of director
Name or company
name of the significant
shareholder represented
by the director or that
nominated the director
Profile
Name or company
name of director
Name or company
name of the significant
shareholder represented
by the director or that
nominated the director
Profile
DOMINUM
DESGA, S.A.
ESTHER KOPLOWITZ
ROMERO DE JUSEU
INMOBILIARIA
AEG, S.A. DE C.V.
CONTROL
EMPRESARIAL
DE CAPITALES,
S.A. DE C.V.
ALEJANDRO
ABOUMRAD
GONZÁLEZ
CONTROL
EMPRESARIAL
DE CAPITALES,
S.A. DE C.V.
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 the directors Dominum Desga, S.A., Samede Inversiones 2010,
S.L.U., Dominum Dirección y Gestión, S.A. and the director Alicia
Alcocer Koplowitz, have a mother-daughter 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 Chairman of the
Mexican Stock Exchange and Chairman 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 Chairman 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).
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 Medio Ambiente Holding, S.A.U and Vice 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).
JUAN
RODRÍGUEZ
TORRES
CONTROL
EMPRESARIAL
DE CAPITALES,
S.A. DE C.V.
ALFONSO SALEM
SLIM
CONTROL
EMPRESARIAL
DE CAPITALES,
S.A. DE C.V.
ANTONIO
GÓMEZ GARCIA
CONTROL
EMPRESARIAL
DE CAPITALES,
S.A. DE C.V.
SAMEDE
INVERSIONES
2010, S.L.U
ESTHER KOPLOWITZ
ROMERO DE JUSEU
Controller of Preesforzados Mexicanos, S.A. de ICA, and
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
(cid:3)
Mexican Business Generation Association. He has been Production
Manager and
Managing Director of Domit Group in the footwear sector. He is
(cid:3)
currently a director of Minera Frisco, S.A.B. de S.A. de CV. and of Carso
Infraestructura y
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
(See Section A.6 of this Report for a description of the relationships
between the director and
Construcción, S.A.B. de C.V. (CICSA) and
non-executive chairman of Realia.
the significant shareholders).
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
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 assistant director 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 Vice Chairman of the Board of Directors
Chairman of the Board of Directors and Managing
of IDEAL and
Director of Inmuebles CARSO. He is also a member of the boards
of CARSO Group; IDEAL; CICSA; Inmuebles Carso; ELEMENTIA,
FORTALEZA and
a description of the relationships between the director and
(cid:3)
significant shareholders).
Mexico. (See Section A.6 of this Report for
Naturgy
the
(cid:3)
(cid:3)
(cid:3)
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.,
currently holds the position of Managing Director of Grupo Carso,
(cid:3)
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).
(cid:3)
and
(cid:3)
Arts from the University
She holds a degree in Philosophy and
of Madrid; she has developed her business experience in the
director of Veolia and Vivendi. She is founder
international field as a
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
(cid:3)
(cid:3)
(cid:3)
11 / 51
12 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 86 of 105
_ 789
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
EXTERNAL PROPRIETARY DIRECTORS
EXTERNAL INDEPENDENT DIRECTORS
Name or company
name of director
Name or company
name of the significant
shareholder represented
by the director or that
nominated the director
Profile
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 the
directors Dominum Desga, S.A., Samede Inversiones 2010, S.L.U.,
Dominum Dirección y Gestión, S.A. and the director Alicia Alcocer
Koplowitz, have a mother-daughter relationship. (See Section A.6 of
this Report for a description of the relationships between the director
and the significant shareholders).
Name or company
name of director
HENRI PROGLIO
ÁLVARO VÁZQUEZ
LAPUERTA
MANUEL GIL
MADRIGAL
Profile
A graduate of the Higher School of Business Administration (HEC) in Paris. He is currently
a director of Natixis Banque and
the energy giant Électricité de France (2009-2014) and
as well as a board member of FCC, Lagardère Group and
Veolia Environnement (2003-2009),
Vinci, among other companies.
of Dassault Aviation. He has also served as Chairman of
(cid:3)
(cid:3)
Business Studies (E-3) by ICADE and is currently a partner of the
He holds a degree in Law and
firms Akiba Partners and
Portugal at Dresdner Kleinwort, and
CEO and
BBVA Bolsa. Previously he held various positions at JP Morgan in Mexico, New York,
London and
Meridia Capital Partners. He was Managing Director for Spain and
head of Investor Relations at securities firm
Madrid.
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
Business Sciences (E-3) by ICADE and is a founding partner
He holds a degree in Law and
of the company Tasmania Gestión. In 2000, he also founded the financial company N+1
(currently Alantra) and
Maquinaria (GAM) and
been director of Capital Markets for AB Asesores Bursátiles, partner of Morgan Stanley
auditor of Arthur Andersen.
has been a director of Vidrala, Barón de Ley, General de Alquiler de
Campofrío, among other companies. During his career he has also
(cid:3)
and
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
DOMINUM
DIRECCION Y
GESTION, S.A.
CONTROL
EMPRESARIAL
DE CAPITALES,
S.A. DE C.V.
ALICIA ALCOCER
KOPLOWITZ
ESTHER KOPLOWITZ
ROMERO DE JUSEU
(cid:3)
Gestión, S.A.U. and
a director of Cementos Portland Valderrivas, S.A.,
Graduate in Law from the Francisco de Vitoria University of Madrid.
She is a director of FCC, S.A., representing Dominum Dirección
y
representing Meliloto, S.L. The representatives of the directors
Dominum Desga, S.A., Samede Inversiones 2010, S.L.U., Dominum
Dirección y
director Alicia Alcocer Koplowitz,
have a mother-daughter relationship. (See Section A.6 of this Report
for a description of the relationships between the director and
significant shareholders).
Gestión, S.A. and the
the
(cid:3)
(cid:3)
(cid:3)
(cid:3)
served as a director.
a member of its Executive Committee.
a member of its Executive Committee and
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
She is a director at FCC and
In turn, she is chairwoman of Cementos Portland Valderrivas, S.A.
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 Valderrivas
Foundation and
the directors Dominum Desga, S.A., Samede Inversiones 2010, S.L.U.,
Dominum Dirección y
Koplowitz, have a mother-daughter relationship.
director Alicia Alcocer
Gestión, S.A. and the
the Hispano Judía Foundation. The representatives of
its Appointments and
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
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.
If so, include a reasoned statement by the Board explaining why it believes that the director in question can
perform his or her duties as an independent director.
Name or company
name
of director
(cid:3)
No data
Description of the relationship
Reasoned statement
Total number of proprietary directors
% of the total Board
9
64.29
13 / 51
14 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 87 of 105
_ 790
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
The other external directors shall be identified
and the reasons they cannot be considered proprietary or independent
OTHER EXTERNAL DIRECTORS
Identity of the director
or representative
Company name of the listed
or non-listed entity
Position
and
their relationships, whether with the Company, its directors, or its shareholders, shall be detailed:
(cid:3)
Name or company
(cid:3)
name
of director
(cid:3)
No data
Reasons
Company, executive
or shareholder with
whom he/she maintains
a relationship
Profile
Total number of other external directors
% of the total Board
N/A
N/A
Indicate any changes that have occurred during the period in each
director's category:
Name or company name
of
director
(cid:3)
No data
Change date
Previous category
Current category
(cid:3)
C.1.4 Complete the following table with information relating to the number of female directors at the close
of the past four years, as well as the category of each:
Number of female directors
% of total directors for each
category
2021
2020
2019
2018
2021
2020
2019
2018
Executive
Proprietary
Independent
Other External
Total
4
4
4
4
4
4
0.00
0.00
0.00
0.00
4
44.44
44.44
44.44
40.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4
28.57
28.57
28.57
26.66
C.1.11 List the positions of director, administrator or representative thereof, held by directors
or representatives of directors who are members of the company's board of directors in other
entities, whether or not they are listed companies:
PABLO COLIO ABRIL
Constructora Terminal Valle
de Mexico S.A. de C.V.
DIRECTOR
PABLO COLIO ABRIL
Servicios Terminal Valle de Mexico, S.A. DIRECTOR
PABLO COLIO ABRIL
Servicios CTVM S.A. de C.V.
PABLO COLIO ABRIL
Finver Inversiones 2020, S.L.
DIRECTOR
DIRECTOR
PABLO COLIO ABRIL
Soinmob Inmobiliaria Española
DIRECTOR
PABLO COLIO ABRIL
Dominum Dirección y
Gestión S.A.
DIRECTOR
ÁLVARO VÁZQUEZ LAPUERTA
Libra Fotovoltaica S.L.
(cid:3)
SOLE ADMINISTRATOR
ESTHER ALCOCER KOPLOWITZ.
Soinmob Inmobiliaria Española, S.A.
DIRECTOR
ESTHER ALCOCER KOPLOWITZ.
EAC Inversiones Corporativas, S.L.
JOINT DIRECTOR
ESTHER ALCOCER KOPLOWITZ.
EAC Medio Ambiente S.L.
JOINT DIRECTOR
ESTHER ALCOCER KOPLOWITZ.
Meliloto S.L.
JOINT DIRECTOR
ESTHER ALCOCER KOPLOWITZ.
Diseño Especializado en Organización
de Recursos, S.L.
JOINT DIRECTOR
ESTHER ALCOCER KOPLOWITZ.
Ordenamientos Ibéricos, S.A.
JOINT DIRECTOR
ESTHER ALCOCER KOPLOWITZ.
Dominum Desga S.A.
JOINT DIRECTOR
ESTHER ALCOCER KOPLOWITZ.
Ejecución Organización
de Recursos, S.L.
JOINT DIRECTOR
ESTHER ALCOCER KOPLOWITZ.
Samede Inversiones 2010, S.L.
JOINT DIRECTOR
ESTHER ALCOCER KOPLOWITZ.
Nueva Samede 2016, S.L.
JOINT DIRECTOR
ALICIA ALCOCER KOPLOWITZ
Soinmob Inmobiliaria Española, S.A.
JOINT DIRECTOR
ALFONSO SALEM SLIM
Impulsora del Desarrollo y
en América Latina, S.A.B. de C.V.
(IDEAL)
(cid:3)
el Empleo
DIRECTOR
ALFONSO SALEM SLIM
Grupo Carso, S.A.B. de C.V.
DIRECTOR
ALFONSO SALEM SLIM
Carso Infraestructura y
S.A. de C.V. (CICSA)
Construcción,
DIRECTOR
(cid:3)
ALFONSO SALEM SLIM
Elementia Materiales, S.A.B. de C.V.
DIRECTOR
ALFONSO SALEM SLIM
Fortaleza Materiales, S.A.B. de C.V.
DIRECTOR
Identity of the director
or representative
Company name of the listed
or non-listed entity
MANUEL GIL MADRIGAL
Barón de Ley, S.A.
DIRECTOR
Position
ALFONSO SALEM SLIM
Naturgy
México, S.A. de C.V.
DIRECTOR
ALFONSO SALEM SLIM
Jezzine Uno, S.L.U.
(cid:3)
JOINT DIRECTOR
MANUEL GIL MADRIGAL
Tasmania Gestión, S.L.
JOINT DIRECTOR
ALFONSO SALEM SLIM
MANUEL GIL MADRIGAL
Tasmania Inmuebles, S.L.
CHAIRMAN-CHIEF EXECUTIVE
OFFICER
PABLO COLIO ABRIL
Carso Infraestructura y
S.A.B. de C.V. (CISCA)
Construcción
DIRECTOR
(cid:3)
PABLO COLIO ABRIL
Cafig Constructores S.A. de C.V.
DIRECTOR
ALFONSO SALEM SLIM
Inmuebles Carso, S.A. de C.V.
and
its subsidiaries
(cid:3)
Centro Histórico de la Ciudad de
México, S.A. de C.V.
DIRECTOR
DIRECTOR
JUAN RODRÍGUEZ TORRES
Calzado Tecnico S.A. de C.V.
BOARD REPRESENTATIVE
15 / 51
16 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 88 of 105
_ 791
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
Identity of the director
or representative
Company name of the listed
or non-listed entity
Position
Identity of the director
or representative
Company name of the listed
or non-listed entity
Position
JUAN RODRÍGUEZ TORRES
Calzado Rohcal S.A. de C.V.
BOARD REPRESENTATIVE
JUAN RODRÍGUEZ TORRES
Calzado y
Componentes S.A. de C.V.
BOARD REPRESENTATIVE
JUAN RODRÍGUEZ TORRES
Inmobiliaria Inro S.A. de C.V.
(cid:3)
BOARD REPRESENTATIVE
JUAN RODRÍGUEZ TORRES
Inmobiliaria Calro S.A. de C.V.
BOARD REPRESENTATIVE
JUAN RODRÍGUEZ TORRES
Inmobiliaria Proii S.A. de C.V.
BOARD REPRESENTATIVE
ALICIA ALCOCER KOPLOWITZ
EAC Inversiones Corporativas, S.L.
JOINT DIRECTOR
ALICIA ALCOCER KOPLOWITZ
EAC Medio Ambiente S.L.
JOINT DIRECTOR
ALICIA ALCOCER KOPLOWITZ
Meliloto S.L.
JOINT DIRECTOR
ALICIA ALCOCER KOPLOWITZ
Diseño Especializado en Organización
de Recursos, S.L.
JOINT DIRECTOR
ALICIA ALCOCER KOPLOWITZ
Ordenamientos Ibéricos, S.A.
JOINT DIRECTOR
ALICIA ALCOCER KOPLOWITZ
Dominum Desga S.A.
JOINT DIRECTOR
ALICIA ALCOCER KOPLOWITZ
Ejecución Organización
de Recursos, S.L.
JOINT DIRECTOR
ALICIA ALCOCER KOPLOWITZ
Samede Inversiones 2010, S.L.
JOINT DIRECTOR
ALICIA ALCOCER KOPLOWITZ
Nueva Samede 2016, S.L.
JOINT DIRECTOR
ESTHER KOPLOWITZ ROMERO
DE JUSEU
Diseño Especializado en Organización
de Recursos, S.L.
SOLE ADMINISTRATOR
CARMEN ALCOCER KOPLOWITZ
Ordenamientos Ibéricos, S.A.
JOINT DIRECTOR
CARMEN ALCOCER KOPLOWITZ
Dominum Desga S.A.
JOINT DIRECTOR
CARMEN ALCOCER KOPLOWITZ
Ejecución Organización
de Recursos, S.L.
JOINT DIRECTOR
CARMEN ALCOCER KOPLOWITZ
Samede Inversiones 2010, S.L.
JOINT DIRECTOR
CARMEN ALCOCER KOPLOWITZ
Nueva Samede 2016, S.L.
JOINT DIRECTOR
HENRI PROGLIO
HENRI PROGLIO
HENRI PROGLIO
Dassault
ATALIAN
ABR Management
DIRECTOR
DIRECTOR
DIRECTOR
Manuel Gil Madrigal, positions in the following entities are remunerated: Barón de Ley, S.A./Tasmania Inmuebles, S.L.
Pablo Colio, positions in the following entities are remunerated: Caro Infraestructura y
Alfonso Salem Sliml, positions in the following entities are remunerated: Impulsora del Desarrollo y
(IDEAL)/Grupo Carso, S.A.B. de C.V./Carso Infraestructura y
Materiales, S.A.B. de C.V./Inmuebles Carso, S.A. de C.V. and
Juan Rodríguez Torres, positions in the following entities are remunerated: Calzado Tecnico S.A. de C.V./Calzado Rohcal S.A. de C.V./Calzado
y
Henri Proglio, positions in the following entities are remunerated: Dassault/ATALIAN/ABR Management
Construcción, S.A. de C.V. (CICSA)/Elementia Materiales, S.A.B. de C.V./Fortaleza
its subsidiaries
(cid:3)
(cid:3)
Componentes S.A. de C.V./Inmobiliaria Inro S.A. de C.V./Inmobiliaria Calro S.A. de C.V./Inmobiliaria Calro S.A. de C.V.
Construcción S.A.B. de C.V. (CISCA)
el Empleo en América Latina, S.A.B. de C.V.
(cid:3)
(cid:3)
(cid:3)
ESTHER KOPLOWITZ ROMERO
DE JUSEU
ESTHER KOPLOWITZ ROMERO
DE JUSEU
Ordenamientos Ibéricos, S.A.
SOLE ADMINISTRATOR
Indicate, where appropriate, the other remunerated activities of the directors or directors' representatives,
whatever their nature, other than those indicated in the previous table.
Dominum Desga S.A.
SOLE ADMINISTRATOR
Identity of the director or representative
Other paid activities
ESTHER KOPLOWITZ ROMERO
DE JUSEU
Ejecución Organización
de Recursos, S.L.
SOLE ADMINISTRATOR
ÁLVARO VÁZQUEZ LAPUERTA
Meridia Partners S.L. - partner
HENRI PROGLIO
Natixis - censeur
ESTHER KOPLOWITZ ROMERO
DE JUSEU
ESTHER KOPLOWITZ ROMERO
DE JUSEU
ESTHER KOPLOWITZ ROMERO
DE JUSEU
Samede Inversiones 2010, S.L.
SOLE ADMINISTRATOR
Nueva Samede 2016, S.L.
SOLE ADMINISTRATOR
Esther Koplowitz Foundation
CHAIRMAN
CARMEN ALCOCER KOPLOWITZ
EAC Inversiones Corporativas, S.L.
JOINT DIRECTOR
CARMEN ALCOCER KOPLOWITZ
EAC Medio Ambiente S.L.
JOINT DIRECTOR
CARMEN ALCOCER KOPLOWITZ
Meliloto S.L.
JOINT DIRECTOR
CARMEN ALCOCER KOPLOWITZ
Diseño Especializado en Organización
de Recursos, S.L.
JOINT DIRECTOR
C.1.12 Indicate whether the company has established rules on the maximum number of company boards on
which its directors may sit, explaining if necessary and identifying where this is regulated, if applicable:
[
]
[ √ ]
Yes
No
C.1.13 Indicate the remuneration received by the Board of Directors as a whole for the following items:
Remuneration accruing in favour of the Board of Directors in the financial year
(thousands of euros)
2,458
Funds accumulated by current directors for long-term savings systems
with consolidated economic rights (thousands of euros)
Funds accumulated by current directors for long-term savings systems
with unconsolidated economic rights (thousands of euros)
17 / 51
18 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 89 of 105
_ 792
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
Pension rights accumulated by former directors (thousands of euros)
3,066
Indicate the number of meetings held by each board committee during the year:
C.1.14 Identify members of senior management who are not also executive directors and indicate their total
remuneration accrued during the year:
Name or company 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
(cid:3)
MARCOS BADA GUTIÉRREZ
Managing Director of Internal Audit
Number of women in senior management
Percentage of total senior management
Total remuneration of senior management (thousands of euros)
C.1.15 Indicate whether the Board regulations were amended during the year:
0.00
1,908
[ √ ]
]
[
Yes
No
C.1.21 Explain whether there are any specific requirements, other than those relating to directors, for being
appointed as chairman of the Board of Directors:
[
]
[ √ ]
Yes
No
Number of Audit and
Control
Committee meetings
(cid:3)
Number of Appointments
and
Remuneration Committee
meetings
(cid:3)
Number of Executive
Committee meetings
10
6
10
C.1.26 Indicate the number of meetings held by the Board of Directors during the year with
member
attendance data:
Number of meetings at which at least 80% of directors were in attendance
% of face-to-face attendance divided by total votes during the 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
divided by total votes during the year
and proxies made with specific instructions,
(cid:3)
(cid:3)
10
90.26
90.26
C.1.27 Indicate whether the individual and
consolidated annual accounts submitted to the board
for issue are certified in advance:
(cid:3)
[ √ ]
]
[
Yes
No
Identify, if applicable, the person(s) who has/have certified the individual and
statements of the company for issue by the board:
consolidated financial
(cid:3)
Position
Managing Director of Administration
Chief Executive Officer
Managing Director of Administration
and
Finance
C.1.23 Indicate whether the articles of incorporation or Board regulations establish any term limits for
independent directors other than those required by law or any other additional requirements that
are stricter than those provided by law:
[
]
[ √ ]
Yes
No
Name
JUAN JOSÉ DRAGO MASÍA
PABLO COLIO ABRIL
MIGUEL MARTINEZ PARRA
C.1.25 Indicate the number of meetings held by the Board of Directors during the year. Furthermore, indicate,
where appropriate, the times that the Board has met without the presence of the Chairman. Meetings
where the chairman gave specific proxy instructions are to be counted as attended.
Number of board meetings
Number of board meetings held
without the chairman's presence
11
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
C.1.29 Is the secretary of the board also a director?
(cid:3)
[
]
[ √ ]
Yes
No
If the secretary does not have director status, fill in the following table:
Name or company name of the secretary
Representative
FRANCISCO VICENT CHULIA
19 / 51
20 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 90 of 105
_ 793
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
C.1.31 Indicate whether during the business year, the Company has changed its external auditor.
If so, identify the incoming and
outgoing auditors:
[ √ ]
]
[
Yes
No
(cid:3)
Outgoing auditor
Incoming auditor
Deloitte, S.L.
Ernst & Young, S.L.
If there were any disagreements with the outgoing auditor, explain their content:
[
]
[ √ ]
Yes
No
C.1.32 Indicate whether the audit firm performs any non-audit work for the company and/or its group
and,
a percentage of the total
if so, state the amount of fees it received for such work and express this amount as
fees invoiced to the company and/or its group for audit work:
(cid:3)
[ √ ]
]
[
Yes
No
(cid:3)
Amount invoiced for non-audit
services (thousands of euros)
Value of work other than
audits/Value of audit works (in %)
Company
Group
companies
Total
0
9
9
0.00
0.26
0.24
C.1.33 Indicate whether the audit report of the previous business year's financial statements includes
qualifications. If so, indicate the reasons given to shareholders at the general meeting by the
chairman of the audit committee to explain the content and
or reservations.
extent of the qualified opinion
(cid:3)
[
]
[ √ ]
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 years
Individual Consolidated
1
1
Number of years audited by the current audit firm/number of years
in which the company has been audited (in %)
Individual Consolidated
3.13
3.13
C.1.35 Indicate whether there is a procedure for directors to be sure of having the information
necessary to prepare the meetings of the governing bodies with sufficient time:
[ √ ]
]
[
Yes
No
Details of the procedure
(cid:3)
duty to demand and the right to obtain from the Company, the adequate and
Regulations of the Board of Directors.
Article 26. Information and inspection powers
“1. In the performance of their duties, every director has the
necessary information that will allow them to fulfil their obligations concerning all aspects of FCC and
national or foreign. To this end, they may examine the documentation deemed necessary, make contact with those responsible
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 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,
the purposes mentioned above. 4. The requested information may only be denied when, in the opinion of the Chairman and
Control Committee,
supported by the absolute majority of the Board members".
"Article 30. The Chairman. Roles […]
3. The Chairman, as the person ultimately responsible for the management and
with the collaboration of the Secretary, that the Directors receive in advance sufficient information to deliberate on the items on the
Agenda [...]".
it is unnecessary or harmful to the Company's corporate interests. This refusal shall not apply when the request has been
once the Chairman and the requesting director have provided their reasons, this Committee shall
efficient operation of the Board of Directors, [...] shall ensure,
investees, whether
for the
its subsidiaries and
the Audit and
decide how to proceed for
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
C.1.39 Identify individually as regards directors, and in aggregate form in other cases, and
provide details
or golden parachute clauses in the event of resignation or dismissal without due cause
its directors, executives or employees containing
(cid:3)
of any agreements between the company and
indemnity
or termination of employment
(cid:3)
(cid:3)
as a result of a takeover bid or any other type of transaction.
Number of beneficiaries
Type of beneficiary
(cid:3)
(cid:6)(cid:8)(cid:18)(cid:3)(cid:131)(cid:144)(cid:134)(cid:3)(cid:10)(cid:135)(cid:144)(cid:135)(cid:148)(cid:131)(cid:142)(cid:3)(cid:22)(cid:135)(cid:133)(cid:148)(cid:135)(cid:150)(cid:131)(cid:148)(cid:155)
2
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: -
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
21 / 51
22 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 91 of 105
_ 794
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
Type of beneficiary
Description of the agreement
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) b) The amount resulting from
multiplying 7 days' salary by the number of years elapsed from 12
September 2017 until the time of termination of the contract.
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 2021, the General Secretary 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 contracts must
be communicated and/or approved by the corresponding bodies of company or its group. If so,
specify the procedures, expected cases and
or communication:
the nature of the bodies responsible
for their approval
(cid:3)
(cid:3)
Board of Directors
General Shareholders'
Meeting
Body authorising the clauses
Are the clauses notified to the
General Shareholders' Meeting?
√
Yes
√
No
C.2. Committees of the Board of Directors
C.2.1 Provide details of all the Committees of the Board of Directors, their members and
the proportion
of executive, proprietary, independent and other external directors
who serve on them:
(cid:3)
Audit and Control
Committee
(cid:3)
Name
(cid:3)
Position
Category
HENRI PROGLIO
VOTING MEMBER
Independent
JUAN RODRÍGUEZ TORRES
VOTING MEMBER
Proprietary
ÁLVARO VÁZQUEZ LAPUERTA
VOTING MEMBER
Independent
MANUEL GIL MADRIGAL
CHAIRMAN
Independent
% of executive directors
% of proprietary directors
% of independent directors
% other external directors
0.00
25.00
75.00
0.00
Identify the directors who are members of the audit committee and have been appointed taking into
experience in accounting or audit matters, or both, and state the date
account their knowledge and
on which the Chairperson of this committee was appointed.
(cid:3)
Names of directors with experience MANUEL GIL MADRIGAL
Date of appointment of the
Chairman to the position
08/05/2019
Appointments and
Remuneration Committee:
Name
(cid:3)
Position
Category
DOMINUM DESGA, S.A.
VOTING MEMBER
Proprietary
JUAN RODRÍGUEZ TORRES
VOTING MEMBER
Proprietary
ÁLVARO VÁZQUEZ LAPUERTA
CHAIRMAN
Independent
MANUEL GIL MADRIGAL
VOTING MEMBER
Independent
% of executive directors
% of proprietary directors
% of independent directors
% other external directors
0.00
50.00
50.00
0.00
Executive Committee
Name
Position
Category
DOMINUM DESGA, S.A.
PABLO COLIO ABRIL
VOTING MEMBER
Proprietary
VOTING MEMBER
Executive
23 / 51
24 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 92 of 105
_ 795
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
Executive Committee
Name
Position
Category
ALEJANDRO ABOUMRAD GONZÁLEZ
CHAIRMAN
Proprietary
GERARDO KURI KAUFMANN
VOTING MEMBER
Executive
JUAN RODRÍGUEZ TORRES
VOTING MEMBER
Proprietary
ALICIA ALCOCER KOPLOWITZ
VOTING MEMBER
Proprietary
% of executive directors
% of proprietary directors
% of independent directors
% other external directors
33.33
66.67
0.00
0.00
C.2.2 Complete the following table with information regarding the number of female directors who
were members of Board committees at the close of the past four years:
Number of female directors
2021
2020
2019
2018
Number
%
Number
%
Number
%
Number
%
0
0.00
0
0.00
0
0.00
0
0.00
1
2
25.00
33.33
1
2
25.00
33.33
1
2
25.00
33.33
1
2
25.00
33.33
Audit and Control
Committee
(cid:3)
Appointments and
Remuneration
Committee:
(cid:3)
Executive
Committee
D. RELATED-PARTY AND INTRAGROUP TRANSACTIONS
D.2. Give individual details of operations that are significant due to their amount or of importance due to their
shareholders holding 10% or more
subject matter carried out between the company or its subsidiaries and
of the voting rights or who are represented on the board of directors of the company, indicating which has
been the competent body for its approval and
if any affected shareholder or director has abstained. In the
event that the board of directors has responsibility, indicate if the proposed resolution has been approved
by the board without a vote against the majority of the independents:
(cid:3)
(cid:3)
Name or
company name
of shareholder
or any of its
subsidiaries
%
Shareholding
Name or
Identification of
board, if any, has
company
Amount
the significant
been approved by
name of the
(thousands
Approving body
shareholder or
the board without
company or entity
of euros)
director who has
a vote against the
within its group
abstained
majority of
The proposal to the
CONTROL
(1)
EMPRESARIAL
DE CAPITALES,
S.A. DE C.V.
SOINMOB
(2)
INMOBILIARIA
ESPAÑOLA S.A.
Name or
company name
of shareholder
or any of its
subsidiaries
CONTROL
(1)
EMPRESARIAL
DE CAPITALES,
S.A. DE C.V.
SOINMOB
(2)
INMOBILIARIA
ESPAÑOLA S.A.
80.03
F-C y C, S.L.
Unipersonal
F-C y C, S.L.
83,941 Board of Directors None
80.03
Unipersonal
226,200 Board of Directors None
Energéticas S.A.U.
independents
NO
NO
Nature of the
relationship
Nature of the operation and other information necessary for its evaluation
Corporate
Acquisition of shares in Realia Business, SA. representing 13.11% of its share capital.
Corporate
Contribution of all shares of Jezzine Uno, S.L.U.
25 / 51
26 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 93 of 105
_ 796
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
D.3. Give individual details of the operations that are significant due to their amount or relevant due to their
D.4. Report individually on intragroup transactions that are significant due to their amount or relevant due
subject matter carried out by the company or its subsidiaries with the administrators or managers of the
company, including those operations carried out with entities that the administrator or manager controls or
controls jointly, indicating the competent body for its approval and if any
abstained. In the event that the board of directors has responsibility, indicate
been approved by the board without a vote against the majority of the independents:
affected shareholder or director has
if the proposed resolution has
(cid:3)
(cid:3)
Name or company
name of the
administrators or
managers or their
controlled or
jointly controlled
entities
Name or
company
name of the
company or
entity within
its group
ALEJANDRO
Identification of the
board, if any, has
The proposal to the
Amount
significant
been approved by
Relationship
(thousands
Approving body
shareholder or
the board without a
of euros)
director who has
vote against the
abstained
majority of
independents
(1)
ABOUMRAD
FCC
Director
338 Board of Directors
GONZÁLEZ
Cementos
GERARDO KURI
Portland
Chief Executive
(2)
KAUFMANN
Valderrivas
Officer
350 Board of Directors
y Realia
NO
NO
Name
or company
name of the
administrators
or managers or
their controlled
or jointly
controlled
entities
ALEJANDRO
Nature of the operation and other information necessary for its evaluation
(1)
ABOUMRAD
Provision of services
GONZÁLEZ
GERARDO KURI
(2)
KAUFMANN
Provision of services
to their subject matter that have been undertaken by the company with its parent company or with other
entities belonging to the parent's group, including subsidiaries of the listed company, except where
no other related party of the listed company has interests in these subsidiaries or that they are fully owned,
directly or indirectly, by the listed company.
In any case, report any intragroup transaction conducted with entities established in countries or territories
considered as tax havens
Company name of
the Group entity
Brief description of the operation and other
information necessary for its evaluation
Amount
(thousands of euros)
Realia Business,
S.A.
Contract with FCC Construcción, S.A., for the construction of
80 dwellings, garages, storage rooms and sports areas, Phase
2 of PP41, "Campo del Ángel", in Alcalá de Henares (Madrid)
Realia Patrimonio,
S.L.U.
Contract with FCC Industrial e Infraestructuras Energéticas S.A.U.
for the supply and installation of intercoms by FCC Industrial, S.S.
in Torre Fira de Barcelona
Realia Patrimonio,
S.L.U.
Rendering of services by FCC Industrial e Infraestructuras
Energéticas S.A.U.
Realia Patrimonio,
S.L.U.
Rendering of services by FCC Medio Ambiente, S.A.
Realia Patrimonio,
S.L.U.
Rendering of services by Servicios Especiales de Limpieza,
S.A.
Realia Patrimonio,
S.L.U.
Realia Business,
S.A.
Realia Business,
S.A.
Realia Business,
S.A.
Realia Business,
S.A.
F-C y C, S.L.
F-C y C, S.L.
F-C y C, S.L.
F-C y C, S.L.
F-C y C, S.L.
F-C y C, S.L.
Rental contract by Fedemes, S.L.
Rendering of services by FCC Industrial e Infraestructuras
Energéticas S.A.U.
Rendering of services by FCC Construcción, S.A.
Rendering of services by Fomento de Construcciones
y Contratas, S.A.
Rental contract by Fedemes, S.L.
Rendering of services by Áridos de Melo, S.L.
Rendering of services by FCC Construcción, S.A.
Rendering of services by FCC Medio Ambiente, S.A.
Rendering of services by Fomento de Construcciones
y Contratas, S.A.
Rental contract by Fedemes, S.L.
Rendering of services by Realia Business, S.A.
12,740
13
1,193
162
496
13
2
12,001
142
101
296
21,383
9
54
112
2,371
27 / 51
28 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 94 of 105
_ 797
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
D.5. Give individual details of the operations that are significant due to their amount or relevant due to their
subject matter carried out by the company or its subsidiaries with other related parties pursuant to the
international accounting standards adopted by the EU, which have not been reported in previous sections.
Company
name of the
related party
No data
Brief description of the operation
and
other information necessary for
its evaluation
(cid:3)
Amount
(thousands of euros)
Company name of
the Group entity
Brief description of the operation and other
information necessary for its evaluation
Amount
(thousands of euros)
FCC Construcción,
S.A.
Cementos
Portland
Valderrivas, S.A.
Fomento de
Construcciones
y Contratas, S.A.
Realia Patrimonio,
S.L.U.
Realia Patrimonio,
S.L.U.
Realia Business,
S.A.
Realia Business,
S.A.
Rendering of services by F-C y C, S.L.
Rendering of services by Realia Patrimonio, S.L.U.
Rendering of services by Realia Patrimonio, S.L.U.
Intragroup loan of Cementos Portland Valderrivas, S.A.
Intragroup loan of Fomento de Construcciones y Contratas, S.A.
Intragroup loan of Fomento de Fedemes, S.L.
Intragroup loan of Fomento de Construcciones y Contratas, S.A.
F-C y C, S.L.
Intragroup loan of Asesoría Financiera y de Gestión, S.A.
F-C y C, S.L.
Intragroup loan of Fomento de Construcciones y Contratas, S.A.
Fomento de
Construcciones
y Contratas, S.A.
Fomento de
Construcciones
y Contratas, S.A.
Fomento de
Construcciones
y Contratas, S.A.
Intragroup loan of Realia Patrimonio, S.L.U.
Intragroup loan of Realia Business, S.A.
Intragroup loan of F-C y C, S.L.
Claro Enterprise
Solutions, S.L.
Contract for the provision of IT services to Fomento
de Construcciones y Contratas, S.A.
Banco Inbursa, S.A.
Accrual of interest on subordinated financing of Cementos
Portland Valderrivas, S.A.
2
90
11
140
24
38
120,000
21
32,258
2,664
44
23,017
13,446
1,764
29 / 51
30 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 95 of 105
_ 798
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
G. DEGREE OF COMPLIANCE WITH CORPORATE GOVERNANCE RECOMMENDATIONS
4.
Indicate the degree of compliance at the company with the recommendations of the Code of Good Governance
of Listed Companies.
In the event that a recommendation is not followed or only partially followed, a detailed explanation of the reasons
must be included so that shareholders, investors and
the market in general have enough information to assess the
company's conduct. General explanations are not acceptable.
(cid:3)
1.
The articles of incorporation of listed companies should not limit the maximum number of votes that may
be cast
by one shareholder or contain other restrictions that hinder the takeover of control of the company
through the acquisition of its shares on the market.
(cid:3)
The company should define and
contact with shareholders and
promote a policy on communication and
institutional investors, within the framework of their involvement in the company, and with proxy advisors
(cid:3)
that complies in all aspects with rules against market abuse and
situated shareholders. And the company should publish this policy on its website, including information
on how it has been put into practice and identifying the contact persons or those responsible for
implementing it.
gives equal treatment to similarly
(cid:3)
(cid:3)
And, without prejudice to the legal obligations regarding dissemination of inside information and
types of regulated information, the company should also have a general policy regarding the communication
of economic-financial, non-financial and
appropriate (communication media, social networks or other channels) that helps to maximise the
other stakeholders.
quality of information available to the market, investors and
dissemination and
corporate information through such channels as it may consider
other
(cid:3)
(cid:3)
Compliant [X]
Explain [ ]
Compliant [ ]
(cid:3)
Partially compliant [
]
Explain [ X ]
(cid:3)
2. When the listed company is controlled by another entity in the meaning of Article 42 of the Commercial
Code, whether listed or not, and
or any of its subsidiaries (other than the listed company) or carries out activities related to those of any
of them it should make accurate public disclosures on:
has, directly or through its subsidiaries, business relations with said entity
(cid:3)
a)
b)
The respective areas of activity and
or its subsidiaries and the parent company or its subsidiaries.
possible business relationships between the listed company
(cid:3)
The mechanisms in place to resolve any conflicts of interest that may arise.
Compliant [ ]
Partially compliant [ ]
Explain [ X ]
Not applicable [ ]
The Audit and Control Committee is responsible for the knowledge
of related-party transactions, which are subject to regulatory controls.
(cid:3)
3. During the ordinary General Shareholders’ Meeting, as a complement to the distribution of the written
annual corporate governance report, the chairman of the Board of Directors should inform shareholders
orally,
in sufficient detail, of the most significant aspects of the company's corporate governance, and in
particular:
(cid:3)
a)
b)
Changes that have occurred since the last General Shareholders’ Meeting.
Specific reasons why the company has not followed one or more of the recommendations of the Code
of Corporate Governance and the alternative rules applied, if any.
Compliant [ ]
Partially compliant [ ]
Explain [ X ]
The Company considers that the information on the Company's corporate governance is sufficiently provided to shareholders in the specific
report on this subject that accompanies the information made available to them prior to the General Meeting.
In this regard, the notice of the General Shareholders' Meeting expressly states in the "Right to Information" section that any shareholder may
obtain from the Company, for examination at the registered office or to be sent immediately
the Annual Corporate Governance Report, which is submitted to the shareholders for approval as part of the Management Report. This report
is available online on the Company's website
and free of charge, among other documents,
under its corporate governance section.
(cid:3)
(cid:3)
Credit Rating Agencies, which the Board of Directors may approve in financial year 2022.
The Company has drafted its Policy on Communication and
and
Notwithstanding the above, in practice, the Company, in its communication activities, fully observes the rules against market abuse and
gives similar treatment to shareholders in the same position and,
other
regulated information, the Company endeavours to maximise the dissemination and quality of information available to the marke t,
(cid:3)
investors and
Contacts with Shareholders, Institutional Investors, Analysts, Voting Advisors
within the framework of legal obligations to disclose inside and
other stakeholders.
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
5.
The Board of Directors should not submit to the General Shareholders’ Meeting any proposal for delegation
of powers allowing the issue of shares or convertible securities with the exclusion of first refusal rights in
an amount exceeding 20% of the capital at the time of delegation.
And whenever the Board of Directors approves any issue of shares or convertible securities with the
exclusion of first refusal rights, the company should immediately publish the reports referred to by
company law on its website.
Compliant [X]
Partially compliant [
]
Explain [
]
6.
Listed companies that prepare the reports listed below, whether under a legal obligation or voluntarily,
should publish them on their website with sufficient time before the General Shareholders’ Meeting,
even if their publication is not mandatory:
a)
b)
c)
Report on the independence of the auditor.
Reports on the functioning of the audit committee and
committee.
the appointments and
remuneration
(cid:3)
(cid:3)
Report of the audit committee on related transactions.
Compliant [ ]
Partially compliant [ X ]
Explain [
]
The Company publishes on its website, together with the other documentation that must be made available to shareholders when the
General Meeting is convened, the report of the Audit and Compliance Committee on
reports on the functioning of the Audit and Compliance Committee and the Appointments
With regard to related-party transactions, the Audit and Control Committee, which exercises, in accordance with the law, the
on related-party transactions to be approved by the General Meeting or the Board of Directors.
In this regard, the Company considers that information on related-party transactions is sufficiently disclosed to shareholders in section D of the
IAGC, which lists the significant related-party transactions that have taken place during the year.
the independence of the auditor, as well as the
Remuneration
Committee.
and
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
function of reporting
31 / 51
32 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 96 of 105
_ 799
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
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 should:
7.
The company should transmit in real time, through its website, the proceedings of the General
Shareholders’ Meetings.
And the company should have mechanisms in place allowing
means of data transmission and even, in the case of large-caps and to
attendance and active participation in
(cid:3)
the delegation and casting of votes by
the extent that it is proportionate,
the General Meeting to be conducted by such remote means.
(cid:3)
8.
9.
Compliant [X]
Partially compliant [
(cid:3)
]
Explain [
]
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.
Compliant [X]
Partially compliant [
]
Explain [
]
The company should permanently publish on its website the requirements and procedures
of share ownership, the right of attendance at the General Shareholders’ Meetings, and
right to vote or to issue a proxy.
(cid:3)
for certification
the exercise of the
(cid:3)
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 [
]
a)
b)
c)
d)
Immediately disseminate these additional items and
new resolutions proposed.
Disclose the attendance card template or vote delegation form or distance voting
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.
form with the
(cid:3)
(cid:3)
Submit all the alternative points or proposals to a vote and
to those prepared by the Board of Directors, including, in particular, assumptions or deductions on
the meaning of the vote.
apply the same voting rules as applied
(cid:3)
After the General Shareholders' Meeting, communicate the breakdown of the vote on these
additional items or alternative proposals.
Compliant [ ]
Partially compliant [
]
Explain [
]
Not applicable [ X ]
11.
If the company plans to pay out attendance premiums to the General Shareholders Meeting, a
on these premiums is established in advance and this policy is stable.
general policy
(cid:3)
Compliant [ ]
Partially compliant [
]
Explain [
]
Not applicable [ X ]
12. The Board of Directors should perform its functions with a unity of purpose and independence of criterion,
treating all similarly situated shareholders equally and being guided by the best interests of the company,
which is understood to mean the pursuit of
promoting its continuity and
a profitable and sustainable business in the long term,
maximising the economic value of the business.
(cid:3)
(cid:3)
And in pursuit of the company’s interest, in addition to complying
conducting itself on the basis of good faith, ethics and a
it should seek to reconcile
suppliers,
on the communities in which it operates and on the environment.
clients and other stakeholders that may be affected, as well as
(cid:3)
(cid:3)
(cid:3)
its own company interests, when appropriate, with the interests of its employees,
activities
the impact of its corporate
with applicable law and rules and
respect for commonly accepted best practices,
(cid:3)
(cid:3)
(cid:3)
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.
(cid:3)
Compliant [X]
(cid:3)
Explain [
]
33 / 51
34 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 97 of 105
_ 800
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
14. The Board of Directors should approve a policy aimed at favouring an appropriate composition of the
16. The number of proprietary directors as a percentage of the total number of non-executive directors should
Board and
that:
a)
b)
c)
Is concrete and
(cid:3)
verifiable;
Ensures that proposals for appointment or re-election are based upon a prior analysis of the skills
required by the Board of Directors; and
(cid:3)
Favours diversity of knowledge, experience, age and
gender. For these purposes, it is considered that
the measures that encourage the company to have a significant number of female senior executives
favour gender diversity.
(cid:3)
The result of the prior analysis of the skills required by the Board of Directors shall be contained in the
supporting report from the appointments committee published upon calling the General Shareholders’
Meeting to which the ratification, appointment or re-election of each director is submitted.
The Appointments Committee will verify compliance with this policy and
Corporate Governance Report.
will be informed in the Annual
(cid:3)
Compliant [ ]
Partially compliant [ X ]
Explain [
]
in particular, that they facilitate the selection of female directors in a number that allows a balanced presence of women an d
Article 38.4.j) of the Regulations of the Board of Directors establishes the following among
Committee: “Assist the Board in its function of ensuring that the procedures for selecting its members favour diversity with respect to matters
such as age, gender, disability or professional training and experience and
and,
achieved, in such a way that the Company deliberately seeks and includes among the potential candidates, women who meet the desired
professional profile, and the Board must explain, where appropriate, through the Annual Corporate Governance Report, the reason for the low
or non-existent number of female directors and
representation of the under-represented sex on the board and
the initiatives adopted to correct such situation. For this purpose, it should set a target for
do not suffer from implicit biases that could imply any discrimination
develop guidance on how to achieve this target".
the functions of the Appointments and Remuneration
men to be
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
Thus, In 2019, FCC renewed its commitment to the Diversity Charter for the period 2019-2021, a voluntary 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-discrimination policies, contemplates the implementation of inclusion policies and
companies.
Notwithstanding the foregoing, the Company has not considered it necessary at this time to include the various provisions already in place
regarding the composition and
Recommendation 14 are included
diversity of directors in a specific document formally called a "policy", although the essential principles of
in the rules of conduct of the Company's governing bodies and
non-discrimination programmes at signatory
are applied by them when necessary.
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
15. Proprietary and independent directors should constitute a substantial majority of the Board of Directors
the number of executive directors should be kept to a minimum, taking into account the complexity
the percentage of equity participation of executive directors.
and
of the corporate group and
(cid:3)
And the number of female directors should represent at least 40% of the members of the Board of Directors
before the end
of 2022 and thereafter, and no less 30% prior to that date.
(cid:3)
not be greater than the proportion of the company's share
rest of the capital.
capital represented by those directors and the
(cid:3)
This criterion may be relaxed:
a)
b)
In large-cap companies where very few shareholdings are legally considered significant.
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]
(cid:3)
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 [ 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 considers that such percentage does not make it necessary to increase the number of independent directors, taking into account the highly
concentrated shareholding structure of the Company and
the effective role played by the three independent directors.
(cid:3)
18. Companies should publish the following information on its directors on their websites 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.
(cid:3)
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 [X]
(cid:3)
Partially compliant [
]
Explain [
]
Compliant [ ]
(cid:3)
Partially compliant [ X ]
Explain [
]
With regard to the percentage of the number of female directors, the Board of Directors of FCC has four female directors out of the total of
14 directors, giving a percentage of 28.57.
35 / 51
36 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 98 of 105
_ 801
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
19. The annual corporate governance report, after a check performed by the Appointments Committee,
22. Companies should establish rules requiring directors to report and, where appropriate, resign when
explains the reasons that proprietary directors have been appointed at the request of shareholders whose
shareholding is less than 3% of the share capital; and
presence on the Board from shareholders whose shareholding is equal to or greater than that of others,
(cid:3)
at whose request proprietary directors have been appointed, have not been met.
it explains the reasons that formal requests for
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.
(cid:3)
Compliant [ ]
Partially compliant [
]
Explain [
]
Not applicable [ X ]
20. Proprietary directors representing significant shareholders should resign from the Board when the
shareholder they represent disposes of its entire shareholding. They should also resign, in a proportional
fashion, in the event that said shareholder reduces its percentage interest to a level that requires
a decrease in the number of proprietary 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 [
]
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
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.
remuneration committee,
(cid:3)
Compliant [X]
Partially compliant [
]
Explain [
]
23. All directors clearly express their opposition when they consider that any proposed decision submitted
to the Board of Directors may be contrary to the corporate interest. The same applies, in a special way,
to independents and
case of decisions that may harm shareholders not represented on the Board of Directors.
other directors who are not affected by any potential conflict of interests, in the
(cid:3)
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 steps down before the end
of their term of office, they should sufficiently explain 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.
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 [
]
37 / 51
38 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 99 of 105
_ 802
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
25. The Appointments Committee ensures that non-executive directors have sufficient time available
for the proper performance of their duties.
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.
And the Regulations of the Board establish the maximum number of Boards on which its directors may serve.
Compliant [X]
Explain [
]
Not applicable [
]
Compliant [ ]
Partially compliant [ X ]
Explain [
]
(cid:3)
Article 21.4 of the Regulations of the Board of Directors stipulates that "Directors must inform the Appointments and Remuneration
Committee of
their other professional obligations, in case they might interfere with the dedication proper to their position".
Article 38.4.a) of the Regulations of the Board of Directors also establishes that the functions of this Committee include "Assessing the skills,
knowledge and
candidates to fill each vacancy and shall assess
the non-executive directors have sufficient time available for the proper performance of their duties".
The Company, for the time being, has not set the maximum number of boards to which each director may belong, given that the
proven dedication of the directors to the company is adequate, without it being considered necessary, therefore, to indicate such
number, for which reason the Company understands that it partially complies with the recommendation.
experience required on the Board of Directors. For these purposes, it shall define the functions and
the time and dedication necessary for them to perform
their duties effectively, ensuring that
skills required of the
(cid:3)
(cid:3)
(cid:3)
(cid:3)
26. The Board of Directors should meet frequently enough to be able to effectively perform its duties, and
agendas established at the beginning
at least eight times per year, following a schedule of dates and
of the year and allowing each director individually to propose other items that do not originally appear
on the agenda.
(cid:3)
Compliant [X]
Partially compliant [
]
Explain [
]
27. Director absences should occur only when absolutely necessary and
be quantified in the annual corporate
governance report. And when absences do occur, the director should appoint a proxy with instruction.
(cid:3)
Compliant [ ]
Partially compliant [ X ]
Explain [
]
Although during financial year 2021, absences of directors have been reduced to essential cases, no proxies have been granted with
instructions when absences have been necessary.
28. When directors or the secretary express concern regarding a proposal or, in the case of directors, regarding
said concerns are not resolved by the Board of Directors,
the direction in which the company is headed and
such concerns should be included in the minutes at the request of the director expressing them.
(cid:3)
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 [
]
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.
(cid:3)
Compliant [X]
Partially compliant [
]
Explain [
]
32. Directors should be periodically informed of changes in shareholding and
its group.
(cid:3)
rating agencies of the company and
shareholders, investors and
of the opinions of significant
Compliant [X]
(cid:3)
Partially compliant [
]
(cid:3)
Explain [
]
33. The chairman, as the person responsible for the effective
of dates and matters to be discussed to the Board of Directors;
functioning of the Board of Directors, in addition
the duties assigned to him by law and in the articles of incorporation, prepares and submits
organises and coordinates
to exercising
a programme
(cid:3)
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.
(cid:3)
(cid:3)
(cid:3)
Compliant [X]
Partially compliant [
]
Explain [
]
34. When there is a coordinating director, the Bylaws or the Regulations 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
of non-executive directors; maintains contact with investors and
view to form an opinion on their concerns, particularly in relation
(cid:3)
company; and coordinates the Chairman's succession plan.
(cid:3)
shareholders to obtain their points of
to the corporate governance of the
Vice Chairman, as applicable; echoes the concerns
(cid:3)
Compliant [ ]
Partially compliant [
]
Explain [
]
Not applicable [ X ]
35. The secretary of the Board of Directors should pay special attention to ensure that the activities and
decisions of the Board of Directors take into account such recommendations regarding good governance
contained in this Good Governance Code as may be applicable to the company.
(cid:3)
Compliant [X]
Explain [
]
39 / 51
40 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 100 of 105
_ 803
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
36. The Board of Directors should meet in plenary session once a year and
adopt, where appropriate, an action
38. The board of directors should always be informed of the business transacted and decisions taken
by the
executive committee and all members of the board
of the meetings of the executive committee.
of directors should receive copies of the minutes
(cid:3)
(cid:3)
Compliant [X]
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
non-financial.
experience in accounting, auditing and
(cid:3)
risk management matters, both financial and
(cid:3)
(cid:3)
Compliant [X]
Partially compliant [
]
Explain [
]
40. Under the supervision of the audit committee, there should be an internal audit unit to ensure the proper
functioning of
chairman of the board or the chairman of the audit committee.
internal control and
information systems, reporting functionally to the non-executive
(cid:3)
(cid:3)
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
including any incidents and
limitations on scope arising in the course of
(cid:3)
and follow-up of its recommendations, and submit an activities report to it at the end of each year.
the board, report directly to it on its implementation,
its implementation, the results
(cid:3)
(cid:3)
Compliant [X]
Partially compliant [
]
Explain [
]
Not applicable [
]
plan to correct any deficiencies detected in the following:
(cid:3)
a)
b)
c)
d)
e)
The quality and
efficiency of the Board of Directors’ work.
The workings and
(cid:3)
composition of its committees.
Diversity in the composition and
(cid:3)
powers of the Board of Directors.
The performance of the Chairman of the Board of Directors
(cid:3)
and the Chief Executive of the company.
The performance and
for the different Committees of the Board of Directors.
contribution of each director, paying particular attention to those responsible
(cid:3)
(cid:3)
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.
(cid:3)
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
areas evaluated must be described in the annual corporate governance report.
Compliant [ ]
(cid:3)
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
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 year.
(non-executive) and the CEO.
(cid:3)
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 ]
(cid:3)
Explain [
]
Not applicable [ ]
The Secretary of the Executive Committee is the same as the Secretary of the Board and, in addition, has several non-executive members.
However, the composition of this Committee, whose members have been appointed by the Board taking into account the knowledge,
skills and experience of the directors and
in the full 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.
the duties of the Committee, does not include any independent directors, three of whom are present
(cid:3)
(cid:3)
41 / 51
42 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 101 of 105
_ 804
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
42.
In addition to those provided by law, the Audit Committee assumes responsibility for the following functions:
1.
In relation to information and internal control
systems:
a) Supervise and
assess the preparation process and
(cid:3)
the integrity of financial and
non-financial
(cid:3)
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,
compliance with regulatory requirements, the
and the correct application of accounting criteria.
political, reputational and corruption-related risks, reviewing
adequate definition of the scope of consolidation
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
Compliance Committee performs all the functions envisaged in this recommendation, with the sole exception of the
The company's Audit and
meeting of the external auditor with the full board referred to in section 2.d) of this recommendation, which does not take place, given that,
in accordance with the provisions of article 15.1 of the Board Regulations, the board's relations with the external auditor are channelled through
the Audit and
Not with standing this, the Board is duly informed of the most relevant issues dealt with in the Committee, given that, on the one han d, the
Committee reports to the Board on the development of its functions, informing the Board, at the first plenary session following the
Committee's meetings, of the activity carried out by the Committee and, on the other hand, a copy of its minutes is sent to all the members
of the Board.
Compliance Committee, this being the ordinary sphere of information of the external auditor to the members of the board.
(cid:3)
(cid:3)
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.
b) Ensure the independence of the Internal Audit function; propose the selection, appointment and
Compliant [X]
Partially compliant [
]
Explain [
]
removal of the head of the Internal Audit service, as well as the budget of this service; approving or
proposing approval to
that its activity is mainly focused on relevant
(cid:3)
information about its activities; and
conclusions and recommendations in its reports.
the Board of the annual internal audit orientation and work plan, making sure
verify that Senior Management takes into account the
risks (including reputational risks); receive periodic
(cid:3)
(cid:3)
(cid:3)
c) 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
(cid:3)
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.
(cid:3)
(cid:481)
d) Generally ensure that the policies and
systems in place for internal control are effectively
implemented in practice.
(cid:3)
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) 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
departing auditor and, if there were any disagreements, the nature of them.
a statement about the possible existence of disagreements with the
(cid:3)
44. The Audit Committee is informed about the structural and corporate modifications that the company plans
perform for its analysis and preliminary report to the Board of Directors
to
its accounting impact and, especially, where appropriate, on the proposed exchange ratio.
on its economic conditions and
(cid:3)
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
be
taken into account by the Board at the time of making a decision.
Control Committee may present their reflections and opinions, which will
(cid:3)
(cid:3)
(cid:3)
45. The risk control and
management policy identifies or determines at least:
(cid:3)
The different types of risk, both financial and
social, environmental, political and
company faces, including financial or economic, contingent liabilities and other off-balance-sheet risks.
reputational, including those related to corruption) that the
non-financial, (including operational, technological, legal,
(cid:3)
(cid:3)
A tiered risk management and
sectoral rules require this or where the company deems it appropriate.
control model, including a specialised risk committee where
(cid:3)
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
including contingent liabilities or off-balance sheet risks.
(cid:3)
to be used to monitor and manage these risks,
(cid:3)
(cid:3)
(cid:3)
a)
b)
c)
d)
e)
d) Ensure that the external auditor holds an annual meeting with the Board of Directors to
inform them about the work undertaken and
situation at the company.
the evolution of the accounting and
risk
(cid:3)
(cid:3)
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.
(cid:3)
Compliant [ ]
Partially compliant [ X ]
Explain [
]
Compliant [X]
Partially compliant [
]
Explain [
]
43 / 51
44 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 102 of 105
_ 805
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
46. Under the direct supervision of the Audit Committee or, where appropriate, a specialised committee of the
control and management function performed by an internal unit
Board of Directors, there is an internal risk
or department at the company that has been expressly attributed the following functions:
(cid:3)
a)
b)
c)
Ensure the proper functioning of the control and
important risks affecting the Company are properly identified, managed, and quantified.
risk management systems and,
in particular, that all
(cid:3)
(cid:3)
Actively participate in the preparation of the risk strategy and
its management.
in the important decisions about
(cid:3)
Ensure that control and
framework of the policy defined by the Board of Directors.
risk management systems adequately mitigate risks within the
(cid:3)
Compliant [X]
Partially compliant [
]
Explain [
]
47. The members of the Appointments and Remuneration Committee, or of the Appointments Committee
the Remuneration Committee, if they are separate, should be appointed ensuring that they have the
to perform and the majority
experience suitable for the duties they are called upon
and
knowledge, skills and
of the members
(cid:3)
(cid:3)
should be independent directors.
Compliant [ ]
(cid:3)
Partially compliant [ X ]
Explain [
]
50. The remuneration committee should carry out its duties independently and,
in addition to the duties
assigned by law, should have the following responsibilities:
(cid:3)
a)
b)
c)
d)
e)
Propose to the Board of Directors the basic conditions of senior management contracts.
Verify compliance with the remuneration policy established by the company.
Regularly review the remuneration policy applied to directors and
share based remuneration systems and
remuneration is in line with that paid to the other directors and
(cid:3)
their application, and ensure that their individual
senior executives at the Company.
senior executives, including the
(cid:3)
Ensure that any conflicts of interest do not undermine the independence of the external advice
provided to the committee.
(cid:3)
Verify the information on directors' and
corporate documents, including the annual report on directors' remuneration.
(cid:3)
senior management remuneration contained in the various
Compliant [X]
Partially compliant [
]
Explain [
]
(cid:3)
51. The remuneration committee
should consult with the company's chairman and CEO, especially on matters
relating to executive directors and senior executives.
(cid:3)
Compliant [X]
Partially compliant [
]
Explain [
]
The Appointments and Remuneration Committee is currently made up
the Chairman.
FCC considers that the configuration of the Appointments and
four, and
aspect for the purposes of the composition of the Committee to be that all its members have been appointed by the Board bearing in
the knowledge, skills and experience of
(cid:3)
Remuneration Committee, with two independent directors out of a total of
one of them being the chairman, sufficiently guarantees the proper functioning of this Committee, considering the most relevant
mind
of two proprietary and two independent directors, one of whom is
the directors and the duties of each Committee.
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
48. Large-cap companies should have a separate appointments committee and
a separate remuneration
committee.
(cid:3)
Compliant [ ]
Explain [ X ]
Not applicable [
]
The two recommended committees are integrated into a single Appointments and
Board of Directors:
- that the union of the two facilitates the fulfilment of the attributed functions.
- that two separate committees would not have sufficient matters to deal with during the year to justify the separation, considering that
a single committee can fully comply with all the functions that the Law and
listed companies attribute to each committee.
Recommendations of the Good Governance Code of
Remuneration Committee when considering the
the
(cid:3)
(cid:3)
(cid:3)
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.
(cid:3)
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 [
]
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
legally obligatory committees in accordance with the above recommendations, including:
be consistent with those applicable to the
(cid:3)
(cid:3)
(cid:3)
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
the duties of each committee, and should
discuss their proposals and
after its meetings, on its activity and
should be accountable for the work carried out.
reports; and to report, at the first plenary session of the Board of Directors
experience of the directors and
(cid:3)
(cid:3)
(cid:3)
The committees may seek external advice, when they consider it necessary for the carrying out
of their duties.
(cid:3)
Minutes should be taken of their meetings and made available to all directors.
Compliant [ ]
Partially compliant [
]
Explain [
]
Not applicable [ X ]
45 / 51
46 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 103 of 105
_ 806
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
53. Supervision of compliance with the company's environmental, social and corporate governance policies
55. Sustainability policies on environmental and
social issues should at least identify and include:
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 [X]
Partially compliant [ ]
Explain [ ]
54. The minimum duties referred to in the above recommendation are as follows:
a)
b)
c)
Overseeing compliance with the company's corporate governance rules and
of conduct, and ensuring that the corporate culture is aligned with its purpose and
internal codes
values.
(cid:3)
Overseeing the implementation of the general policy on economic-financial, non-financial and
corporate reporting as well as communication with shareholders and
other stakeholders. The way in which the institution communicates and
medium-sized shareholders will also be monitored.
investors, proxy advisors and
interacts with small and
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
Regular evaluation and
and social policy, in order for
into account, as appropriate, the legitimate interests of other stakeholders.
review of the Company's corporate governance system and
them to fulfil their aim of promoting the corporate interest and
environmental
taking
(cid:3)
(cid:3)
(cid:3)
(cid:3)
a)
The principles, commitments, objectives and
customers, suppliers, social issues, environment, diversity, accountability, respect for human rights
and
strategy with regard to shareholders, employees,
(cid:3)
other unlawful actions.
prevention of corruption and
(cid:3)
b) Methods or systems for monitoring compliance with policies, associated risks and
their management.
(cid:3)
(cid:3)
c)
d)
e)
Mechanisms for monitoring non-financial risk, including those related to ethical and
conduct issues.
(cid:3)
business
(cid:3)
Channels of communication, participation and
dialogue with stakeholders.
Responsible communication practices that avoid
integrity and honour.
(cid:3)
the manipulation of information and protect
(cid:3)
Compliant [X]
Partially compliant [
]
Explain [
]
56. Directors' remuneration should be sufficient to
reward the
as to compromise the independent judgement of non-executive directors.
dedication, qualifications and responsibility required for the position, but should not
(cid:3)
attract and retain directors with the desired profile and to
be so high
(cid:3)
(cid:3)
Compliant [X]
Explain [
]
d) Monitoring that the company's environmental and
social practices are in line with
the strategy
57. Variable remuneration linked to the company's performance and personal performance, as well as
and policy.
(cid:3)
(cid:3)
e)
The supervision and
evaluation of the processes of relationship with the different stakeholders.
Compliant [X]
(cid:3)
Partially compliant [
]
Explain [
]
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.
(cid:3)
(cid:3)
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 [
]
47 / 51
48 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 104 of 105
_ 807
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
(cid:3)
a)
b)
c)
58.
In the case of variable remuneration, remuneration policies should include the necessary technical
limits
performance of its
beneficiaries and is not simply a result of general market or sector trends or other similar circumstances.
and precautions to ensure that said remuneration is related to the professional
And, in particular, that the variable components of remuneration:
Should be linked to performance criteria that are predetermined and
criteria should take into account
the risk assumed in order to obtain a result.
(cid:3)
Should promote the sustainability of the company and include non-financial criteria that are
appropriate
rules and procedures and its policies for risk control
for the creation of long-term value, such as compliance with the
and management.
company's internal
(cid:3)
(cid:3)
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.
(cid:3)
(cid:3)
Compliant [X]
Partially compliant [
]
Explain [
]
Not applicable [
]
(cid:3)
(cid:3)
Although article 38 of the Articles of Association provides for the possibility that directors may be remunerated through the delivery of shares or
stock options of the Company itself, the Company has not considered it necessary for the time being to establish remuneration to its executive
directors through the delivery of shares or financial instruments referenced to their value, since it considers that the current variable
remuneration systems for its executive directors are the most appropriate to encourage their motivation and
as
Officer, as
and risk management strategy of the Company,
term performance and interests
professional performance, as well
the Group. In particular, the variable remuneration of the Chief Executive
expressly set forth in the current Remuneration Policy, shall be established, implemented and
their commitment and linkage to the interests of the Company and
shall include measures aimed at avoiding conflicts of interest.
its risk perfil, its objectives, its risk management
practices, and the short, medium and
maintained in line with the business
of FCC as a whole, and
long-
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
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
committee, to address extraordinary situations that so require it.
remuneration
(cid:3)
measurable, and these
(cid:3)
(cid:3)
59. The payment of variable components of remuneration is subject to sufficient verification that the
Compliant [ ]
Partially compliant [
]
Explain [
]
Not applicable [ X ]
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
verification depending on the nature and
characteristics of each variable component.
methods for such
(cid:3)
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.
(cid:3)
Compliant [ ]
Partially compliant [
]
Explain [ X ]
Not applicable [
]
The CEO's variable is related to EBITDA, operating cash flow and
has drawn up the accounts and
approved the financial objectives.
(cid:3)
individual objectives. This variable is approved once the Board of Directors
(cid:3)
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.
(cid:3)
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 [
]
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
to verify that the director has met the criteria or conditions established for their receipt.
(cid:3)
should not be paid until the company has been able
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]
(cid:3)
Partially compliant [
]
Explain [
]
Not applicable [
]
Indicate whether any directors voted against or abstained from voting on the approval of this Report.
49 / 51
50 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
FCC _ 2021 Annual Report | Annual Corporate Governance Report | Page 105 of 105
_ 808
ANNUAL CORPORATE GOVERNANCE REPORT
OF LISTED PUBLIC LIMITED COMPANIES
[
]
[ √ ]
Yes
No
I hereby state that the figures included in this statistical annex match and
and
data included in the annual corporate governance report published by the company.
are consistent with the descriptions
(cid:3)
(cid:3)
51 / 51
Letter from the Chairpersonand the CEOCorporategovernance and ethicsStrategyand value creationFCC in 2021Financial StatementsFCC Group Sustainability ReportAnnual CorporateGovernance Report1234A1A2A3Business lines5
www.fcc.es