Ferrovial - Annual Report 2012

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Supply Chain

Construction

Approximately 60% of all Ferrovial’s suppliers are in the construction industry. In this business, the Purchases Department is responsible for managing relations with major suppliers so that customers can be offered higher quality and better services. In addition, long-term relationships can be achieved wherever possible that provide the maximum benefit for both parties. One of the division’s responsibilities is to improve communication between suppliers and project managers, in order to help solve any problems that may arise.

The construction business, which is the Ferrovial business that deals with the largest number of suppliers, worked with a total of 34,719 in 2012, of which approximately 46% are Spanish.

The total number of suppliers with which Ferrovial Agroman (not including Webber and Budimex) worked in 2012 is 20,455, of whom about 79% are Spanish; but in the breakdown by countries the number of local suppliers is over 95% of the total, given that the nature of the construction business tends to encourage the use of local suppliers.

The Purchases Department is part of Ferrovial Agroman's Corporate Resources Department, which also includes Quality, Prevention and the Environment to ensure coordination between them. In addition, it coordinates purchasing policy at a global level and manages purchases in which global negotiation (through economies of scale) and/or international market knowledge contribute value.

The Purchasing Manager is one of the members of the new Global Procurement Committee.

Ferrovial’s established purchasing principles, policies and processes aim to comply with customers' requirements by optimizing prices and meeting deadlines and the quality, prevention and environmental requirements specified, while at the same time maintaining the greatest possible profitability.

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This is an electronic version of the 2012 Annual Report prepared by Ferrovial, S.A. for its stakeholders, which aims to be complete and accurate. The contents of this version can be checked by referring to the print version. A copy of the print version in PDF format is available to download on this web page