03. The Sacyr Vallehermoso Group

Group profile

Distribución de las áreas de negocio del grupo por países

With an average headcount of over 20,400 employees, revenue of €3.95 billion, and an order book in excess of €50.4 billion, the Sacyr Vallehermoso Group (SyV) ended 2011 in a still stronger position as a major business group and leader in both the Spanish and European construction industry.

The Group consists of the parent company, Sacyr Vallehermoso, S.A., and the subsidiaries and associates listed in the Appendix to our consolidated annual financial statements. Sacyr Vallehermoso, S.A. was incorporated in 2003 as a result of the merger by absorption of the Sacyr S.A. Group into Vallehermoso, S.A. The registered offices of the Group are at Paseo de la Castellana, 83-85, Madrid.

Sacyr Vallehermoso operates in five complementing business areas that are duly diversified by sector and region:

• Construction:The SyV Group carries out all types of civil and building works for public and private customers, mainly through Sacyr in Spain and Chile, Somague in Portugal and SIS in Italy.
• Property development: Vallehermoso carries out this activity throughout mainland Spain and the Spanish islands. The company mainly operates in primary residence dwellings in high-density urban areas
• Concessions: Sacyr Concesiones is the Group’s infrastructure concessions subsidiary. At the close of 2011, it had a portfolio of 34 concessions spread across six countries, of which 24 were operational and 10 were under construction. 23 are motorway concessions, stretching over a total of 1,891 kilometres, and 11 are concessions for other assets: three hospitals in Spain, three hospitals in Portugal, two transport hubs, one underground train line, one airport and one motorway service area company.

Sacyr Concesiones’ customers are mainly toll road users, as well as public entities that assume shadow tolls or the costs derived from the concession of hospitals, transport hubs, and other facilities.
• Rental Property: The Group company Testa specialises in the acquisition, sale and rental of owned property assets. The bulk of its activity is focused on the tertiary sector, offices and shopping centres, although it also has a selective presence in other sectors, including hotels, senior citizens’ homes, and logistics, inter alia, in various locations, and investing in assets for which demand is high. Madrid and Barcelona remain the regions in which it is most active in Spain, while internationally its main focuses are Paris in France and Miami in the USA. Testa’s client base consists mainly of large companies, but also includes small and medium-sized enterprises.
• Services: Valoriza is the parent company of this business line, which encompasses four main areas: water, energy, environment and multi-services. Valoriza’s main businesses are as follows:

• Water: management of the end-to-end water cycle, water purification and distribution, desalination of sea water, plumbing and sewer systems, waste water treatment, regeneration of treated water and reuse and R&D&I in advanced water treatment processes.

• Energía: ingeniería y construcción de proyectos energéticos, generación de energía renovable (biomasa, termosolar, fotovoltaica y eólica), cogeneración, generación de energía térmica, y producción y gestión de biocombustibles.

• Energy: engineering and construction of energy projects, generation of renewal energy (biomass, thermal-solar energy, photovoltaic energy, wind energy), cogeneration, generation of thermal energy and production and management of biofuels.

• Environment: municipal services (roadway cleanup, waste collection, gardening, etc.), waste management, landscape restoration and environmental works.

• Multi-services: cleaning, maintenance, reforms, social-health services, hospital services, infrastructure maintenance and catering services.

Valoriza mainly operates in Spain, although it is currently extending its activities to other countries including Portugal, Algeria, Brazil, Israel and Australia. Valoriza’s customers are mainly public entities and private companies.