Other preventive procedures

Occupational safety systems

Occupational safety systems have been applied in accordance with Law 31/1995 and its implementing regulations in all areas and in the corporate sphere. Safety systems are audited periodically by external bodies accredited for this purpose.

The areas with most significant occupational risks, particularly Construction, have health and safety plans specifically designed for each project and are continuously monitored by central services. Monitoring visits access on-site safety measures, including all outsourced activities. The system was co-developed with the Spanish National Institute for Safety and Hygiene in the Workplace (Instituto Nacional de Seguridad e Higiene en el Trabajo) under the framework of an agreement signed between Ferrovial-Agromán and this body in 2004.

Financial risk control mechanisms

Exposure to exchange rate fluctuations:

In general, management of this risk is centralized through the Finance Department on the basis of hedging mechanisms.

In order to ensure that projected cash flows are not affected by exchange rate fluctuations, the following are hedged:

  • Multi-currency projects (awarded or in the bidding process)

  • Income from foreign subsidiaries and dividends or refunds of capital expected to be received from foreign subsidiaries.

  • Intra-group loans to foreign subsidiaries.

  • Cash of foreign subsidiaries.

  • Payments to suppliers in foreign currency.

Exposure to interest rate variations:

The objective when financing infrastructure projects is to obtain a fixed interest rate when closing the deals with the financiers. When this is not possible, the Company considers hedging that risk during the entire financing term, in its different forms (depending on the situation and on the investment volume).

Regarding the Grupo Ferrovial's floating-rate debt, the Finance Department monitors any market changes in order to take advantage of lower interest rates. Although the trend in previous years was to be exposed to interest rates, the evolution of the Group's financial structure towards a net debt position has given rise to the contracting of cover instruments for recently issued debt. Such cover covers the risk of nominal rates, and in some cases the risk of real rates, because income from the assets they finance is updated through inflation.

Non-payment or default:

The risk of non-payment by private customers, mainly in the Construction area, is mitigated by a study of their solvency prior to the signing of the contract. The contractual requirements are supervised by the Legal and Financial departments in order to ensure that they establish sufficient guarantees in the event of non-payment, including halting the work. During the performance of the work, the Finance department continually monitors the certificates and collection documents, and their effective payment.

Crisis notification and management procedures

The general risk supervision and control system (global risk management system, GRM) is closely linked to the crisis management and business continuity procedures.

In the corporate sphere, risk profile is the basis for identifying unexpected situations they may trigger a crisis with significant consequences for the company. Such risks are identified in itemized catalogues for each business activity that are permanently updated and accessible at all levels of the organization where such situations may occur.

As part of these procedures, there is a protocol for internal and external communication whose aim is, given a crisis situation, for all decision-making levels of the organization to have access to reliable, adequate information in the shortest possible time  

Similarly, there are specific  procedures in the business area management systems that include the measures to be implemented at all levels affected by the crisis in order to lessen any harm to people or the environment, besides reducing its economic impact and making it easier for business activity to be resumed in the shortest possible time.