04. BUSINESS DIVISIONS

Services: Valoriza

Valoriza: Planta desaladora en Hounaine. Argelia

b.- Water

This business line encompasses two main fields of activities: engineering, development, construction, maintenance and operation of all types of water-related plants (drinking water and water purification plants, desalination plants, tertiary treatments and recycling, industrial waste water treatment, agricultural treatment, etc.) and the integrated management of the water cycle under public sector concessions or in the private sector. Revenue stood at 257 million of euros in 2011, with Ebitda of 40 million of euros.

These activities are carried out by Valoriza Agua in Spain and AGS in Portugal and Brazil, and serve a total over of three million people in the three countries.

Amid the economic downturn, two thirds of the company's revenue in 2011 was obtained outside of Spain.

Valoriza Agua is one of the leading water management companies in Spain with a portfolio of contracts, in Spain and abroad, worth more than 6,600 million of euros. Noteworthy activities include integrated water cycle management in Santa Cruz de Tenerife through the subsidiary Emmasa, as well as management of Emalsa, a company which offers integrated drinking water distribution in Las Palmas de Gran Canarias. Valoriza Agua also has a contract for integrated water cycle management in Alcalá de Henares (Madrid) and the water supply concession for the city of Guadalajara. In Portugal, AGS supplies 18 municipalities, including Setúbal, Cascáis, Gondomar and Barcelos. In Brazil, AGS has two concessions in São Paulo state. For project development and execution, Valoriza Agua operates through its wholly owned subsidiary Sadyt, a leading player in the field of desalination and water treatment. In 2011 it continued its vigorous expansion both in Spain and internationally.

The following noteworthy contracts were won in 2011:

• Expansion of desalination plant in Perth (Australia)
• Public works to expand the Sagra Alta wastewater treatment plant
• Systematic and emergency leak detection services for the Canal de Isabel II supply network, area 1
• La Reguera wastewater treatment plant operation and maintenance
• Torrejón wastewater treatment plant operation and maintenance
• Desalination plant for AngloAmerican Chile-Mantoverde
• Purification plant in Valle Guerra (Tenerife)

Four additional water management contracts in Melilla:

• Gis de Melilla
• Wastewater collection network cleaning
• Maintenance of reverse osmosis plants, rainwater collection and water networks and ornamental fountains
• New drinking water distribution network in the Reina Regente neighbourhood