Message from the Chairman

Rafael del Pino (Presidente) Dear shareholder,

2007 has been a year marked by the poor liquidity of the financial markets and by the change of cycle in the real estate market, with a significant drop in residential construction in Spain. All of these factors, together with regulatory uncertainty in the British airports, the change of values related with construction and the general downturn in the stock markets, have affected our share price.

In this context, the investments made in recent years in infrastructure and in the internationalisation of our activities prove their worth. At present, 80% of EBITDA is generated outside Spain and 73% comes from infrastructure management. This has allowed us to close the year with a net income of 733 million euro and an operating income of more than 1.3 billion euro.

During the year, we continued with the disinvestment process that we began in 2006 with our real estate business, with the sale of Sidney Airport and the BAA stakes in Budapest and other Australian airports. This disinvestment has led to a substantial reduction in corporate debt, which was reduced from three billion euro in December 2006 to less than two billion by December 2007. The rest of the debt does not affect the Group's parent company and is project debt in its entirety; 20 billion corresponds to BAA and 9 billion to the group of toll road projects.

Earlier this month, the British regulatory body published the new pricing framework for the main airports in the United Kingdom for the next five years. The increase in the new prices that were approved removes some of the uncertainty that had been penalising the share price since July 2007. Although the solution proposed by the regulatory body is lower than could be expected in market conditions, the result has been better than what was expected by the Stock Exchange. Another aspect that has an influence on the share value is the uncertainty concerning the closure of the refinancing of the BAA debt which, if the market situation allows, will take place during 2008.

We have a record backlog in our construction and services businesses; we have reached a situation where 90% of EBITDA comes from recurring activities and we have considerably reduced the level of corporate debt. Furthermore, Ferrovial has two of the best transport infrastructure assets in the world in the 407ETR Toll Road and Heathrow Airport. All of this allows us to look to the future with optimism and to continue to explore new opportunities with enthusiasm and caution.

Finally, as part of our Corporate Responsibility Policy, Ferrovial is committed to protecting the environment and combating climate change. As well as reducing carbon emissions in all of our activities, we are promoting an airport management model that is exemplary from the environmental point of view and will provide a stimulus for all operators surrounding this activity, especially the airlines. Similarly, we have a commitment with the United Nations in the implementation of the principles of the Global Compact in all countries where we carry out our activity, and the achievement of the Millennium Development Goals.

2008 will undoubtedly be an important year. To face all of the challenges I have mentioned, we have an excellent workforce at Ferrovial and we count on their support, for which I thank them most sincerely.

Firma de Rafael del Pino

Rafael del Pino
March 2008

1000 Images, one word: Ferrovial

1000 Images, one word: Ferrovial

Ferrovial is one of the leading infrastructure groups in the world employing 100,000 people in 43 counties worldwide. The company’s investment strategy is focused on 4 main business areas: construction, airports, toll roads and car parking, and services.