02. Letter from the Chairman

A year of changes

Dear shareholders,

In what is my first letter to you as the Chairman of the Sacyr Vallehermoso Group, I would like to thank you for placing your trust in our company; I am certain that the efforts we are making to consolidate the group and report growth will make us stronger and more profitable. After the events seen in 2011 – the sale of 10% of Repsol, a substantial reduction in debt and the heavy provisions made on the income statement – the Group is now in a privileged position in its sector: with a healthy balance sheet, debt in keeping with the cash flow stemming from its recurrent businesses, and an Ebitda margin above the average of our peers. The consolidation process has tested us all, but it now means we can be optimistic about the future.

The economic situation in Spain and in Europe remains very delicate. It is a situation in which governments' main concerns and tasks are focused on reducing the public sector deficit and fiscal consolidation. In this context, we believe a sensible course of action is to adopt a cautious investments policy and to internationalise strongly so as to diversify sources of revenue.