2014 report

Deba Building: SLK's headquarters in Vitoria-GasteizPortal de Gamarra nº 1. Oficina 112.01013 Vitoria-Gasteiz ˝• Tel. 945 128 887 • Fax. 945 121 044E-mail: sarkis@sarkis.es lagunketa@lagunketa.eswww.sarkislagunketa.com

PRESENTATION

PRESIDENT'S LETTER OF PRESENTATION

INFORMATION ABOUT THE GROUP AND ITS RESOURCES

MISSION, VISION, VALUES

HISTORICAL BACKGROUND, BUSINESS GROUP AND ORGANISATION CHART

PEOPLE

CLIENTS, COMPANIES AND PARTNERSHIPS

MAP OF MAIN PROCESSES, KEY PROCESSES AND COMMUNICATION CHANNELS

ACTIVITY

ACTIVITY INDICATORS

BUILDING WORKS AND PROJECTS FROM 2013

RESULTS

MAIN ECONOMIC FIGURES

RESULTS IN SOCIETY

RESULTS IN CLIENTS

RESULTS IN PEOPLE

CERTIFICATIONS, BUSINESS CLASSIFICATIONS AND IMPROVEMENT PROCESSES

5

7

9

13

15

19

21

27

29

31

33

35

37

PAGE

index 2014 report

In 2014, production value in the Construction Sector continued to fall both in the Spanish market as a whole (2%) and in the area of the Basque Autonomous Community (3%), compared to the previous year.

This led to a cumulative decline of 30.9% in the production value for construc-tion in the Basque Autonomous Community since 2007.

However, at the time of writing, in mid 2015, we can state that the decline has been less pronounced each year, until a clear turnaround was seen in the last phase of 2014, observing a clear recovery for 2015.

This general trend in the sector has also been reflected in our group, whereby the turnover figure of the building works portfolio turned around at the end of last year, particularly in the subsector of non-residential building and in renovation and maintenance.

Nevertheless, Housing Demand remains very weak, as a result of such a long economic crisis, which has particularly affected young people who once entered the subsidised housing market and now, due either to unstable employment or difficulties in obtaining financing, do not, progressively preferring renting.

This means that our traditional activity to promote this type of housing has not recovered, which continues to influence our total production figure and the mat-uration period of our projects. Which are now shorter and for lower amounts.

Therefore, we keep promotion projects "in the pipeline" in Vitoria, Zuia and Sego-via, for when the stock is gradually reduced and demand recovers.

However, we are continuing to develop projects for financial institutions, who turn to us not only as builders but also as general consultants on Promotion and other times as experts, in establishing quality modifications or installations of projects to develop.

2014 was characterised by progress, meeting the deadlines set in the project for the offices of Vitoria-Gasteiz City Council through our investee LEPAZAR XXI.

5

A company that has promoted a 18,000 m2 building and car park with 555 spaces and is responsible for the project, construction and maintenance and operating as rental for 30 years, to the City Council.

This company's total investment was 36 million Euros, and our group owns a 30% stake in the capital and develops the integrated management during the phases of the project, execution, sale of spaces and delivery of the building, which was successfully completed in June 2015.

Thus we continue our traditional activity in property, or the operation of as-sets, whether these are car parks, industrial buildings, offices or homes, seeking recurrent income to complement the construction line.

This property activity, as well as that of the provision of professional services to our investees or third parties have given us an economic foundation that has helped us to alleviate the crisis and the fall in production in construction, especially in promotion.

Thus, combining all the lines of activity, we have ensured that our net worth has increased year after year because losses have not appeared in our income statements throughout this very difficult period from 2008-2014 and which fortunately appears to be coming to an end.

In addition, during the year, up to 9 different renovation and reform works have been completed, amounting to 4.98 million Euros, highlighting the reform of the south wing of the Diocesan Seminary of Vitoria-Gasteiz.

We have been awarded tenders in different U.T.E.S. or individually to a value 8 million Euros

In addition, our internationalisation strategy started to reap its rewards, and the Basque Group, formed by Altuna and Uria, and Cicasa was awarded at the end of the year the first works in Peru, a nursery school. Project and construction in the area of Cuzco for 1.7 million Euros

We have continued to develop the Innovation project "0 Basquetxea" support-ed by SPRI and with the participation of ULMA, ARELLANO, GIROA, BEISSIER, GUARDIAN, and SUKIA, which aims to establish a replicable model of energy efficient renovation.

Regarding management issues, in addition to maintaining and consolidating our integrated system based on the ISO 14001 and ISO 9001 standards, we have continued to work with the improvement teams and to develop the new strategic plan 2015-2016 which seeks to consolidate the Renovation and Inter-nationalisation activity.

We have consolidated our presence in organisations and institutions (Elkargi, Chamber of Commerce, SEA, Planning Community of the Association of Econo-mists, etc.) without forgetting our Corporate Social Responsibility policy.

We are also founding members of the Basque Association of collaborative law, a new method of conflict resolution.

Therefore, we are confident that the change in trend observed will be consoli-dated for 2015 and the following years and that, firstly, we will be able to re-cover the activity lost to later tackle the momentum once again with great hope for the future.

Lauren Arrizabalaga SaenzPresident of SLK

New headquarters of municipal offices in Vitoria-Gasteiz Promoter: Lepazar Developer: UTE Lepazar (Lagunketa, Zikotz, Pérez de San Román, Giroa)

7

In 2012 SLK was awarded the Silver Q for management quality, through a participatory

process that involved all process owners and was the subject of external comparison and

evaluation by reviewers from Euskalit (Basque Foundation for Excellence), reaffirming

the validity of our Corporate Policy and maintaining our Mission, Vision and Values.

In 2014 a strategic reflection led to the Strategic Plan 2015-2016 without changing our

Mission, Vision and Values:

SARKIS-LAGUNKETA's mission is to meet the public and private needs in each of our

areas of activity:

• Consultancy of real estate projects

• Construction, building, renovation and reforms

• Promotion and operation of properties

• Operation of car parks

• Services to third parties and own companies

These services will be provided with quality and at reasonable prices, with respect for

the Environment, taking into account at all times People's Safety and with an efficient

after-sales service through an honest, friendly, well-trained team that is keen and

always available.

SLK 's Vision is the consolidation of a business group with strong roots in the Basque

Country and State markets, an outstanding reference in the sector through its lines

of activity (Consulting, Construction, Operation, Promotion and Services); either

independently or in collaboration with Sector Companies through business groups and/

or new Companies.

Among the fundamental Values that SLK promotes to achieve its Mission and Vision,

in line with Corporate Social Responsibility, are the respect and protection of Human

Rights, preventing discrimination of people, respect for the Environment, and respect

for and compliance with the legislation in force.

As regards the professional Values taken on and recognised by SLK, we have the quality

of Product and Service provided, based on our experience, on technical capacity,

human and material resources, profitability and solvency, resulting in the trust of our

Stakeholders, and assuring the importance of the Organisation in the future.

MISSION VISION AND VALUES

Reconversion of the Lakua-Arriaga Health Centre (Vitoria-Gasteiz) at the Social Cultural Centre for the ElderlyPROMOTER: Vitoria-Gasteiz City CouncilDEVELOPER: Lagunketa, S.A.U.

9

1979 Founding of Lagunketa

1988 Founding of Sarkis Car Park Projects in Bilbao (Kirikiño, La Casilla, San Pedro and Santiago Apóstol)

1991 Entry of the Sarkis Group among the Lagunketa shareholders Juan de Ayala Car Park (first joint project)

1995 Creation of the Sarkis-Lagunketa Group Reorganisation and unification of management teamsFirst subsidised housing projects

2000 Move to the Deba buildingDevelopment of the Group's strategic lines

2003 Founding of Euspen Subsidised housing, Free Market housing and Services Sector projects. Establishing the Group's first strategic alliances with third parties

2005 Corporate restructuring aimed at strategic alliances Car park projects in Getxo, Vitoria (Cathedral) and Technical Management Services

2009 New Strategic Plan 2010-2014 Bibat Museum (Vitoria-Gasteiz)Consolidating our presence in the subsidised housing market in Vitoria

2010Start of the national geographic diversification process and development of the International Strategic Plan

ERP implementation projects to improve the Group's information systems at computer and process level.Promotion of 220 subsidised apartments in SegoviaPPI Award Municipal Offices of Vitoria-Gasteiz

2011Adaptation to the organic data protection act (LOPD) and at the service of anti-money laundering (SPBC)

Award of 88 subsidised apartments for the Autonomous Regime (Cordoba)ERP implementationDecision for external evaluation of EFQM

2012Obtaining the silver Q for Management Quality (Euskalit)Joining the Green Pact (Vitoria-Gasteiz Green Capital)

Start of work on Municipal Offices and car parkCompletion and delivery of 188 subsidised apartmentsCompletion and delivery of 56 sheltered apartments in Bilbao

2013

Consolidation EFQMParticipation in improvement groups: Construction Cluster (Eraikune)Club 400 Euskalit (with Q Silver, Q Gold companies, European AwardsDeployment of integrated management model to new businesses in the Group

Completion and delivery of 132 subsidised homes in SegoviaCreation of the new company BIRKETA Rehabilitaciones S.A. for the implementation of refurbishments and renovations.Start of works to refurbish the nursing wing of the Vitoria-Gasteiz SeminaryAward of EORGAY grant for ZERO BASKETXEA project Creation of the new company BASQUE GROUP, for internationalisation

2014Maintenance and consolidation of the integrated system, based on ISO 14001 and ISO 9001, OHSAS 18001 and the EFQM modelThe improvement groups continue

Start of the ZERO BASKETXEA pilot worksStart of the C. Abaitua hostel refurbishment in Vitoria-Gasteiz

2015New Strategic Plan 2015-2016Consolidation of Renovation and Internationalisation activity

Birketa stabilises its production First international contracts of the Basque Group obtained

BackgroundCORPORATE MILESTONES MAIN PROJECTS

LINES OF ACTIVITY

Business Group and Organisation Chart

Execution of renovation works (isolated and integrated)R&D&I and energy efficiency

Landinosar S.L.

Logística 2004 S.L.

Sarkis S.A.

Esturnor S.L.

Las Mercedes S.L.

Sarkis Aparcamientos S.L.

Lagunketa S.A.

UTE’S’

LEPAZAR XXI

Euspen S.A.U.

Sarkis S. A.

Club Deba Rent S.L.

Sarkis S.A.COMPANIES

ACTIVITIES

BIRKETA S.L.

Planning, management and handing over

of own promotions and for third parties

Car park management and operation

Execution of residential building works and public

and private facilities

Administration of own and third-party resources

Administrative services for Group companies

and third parties

Financing of Group companies

Study of own projects or for third parties

Official private tenders and projects for

Public Administrations

CONSTRUCTIONPROJECT CONSULTANCY PROMOTION AND OPERATION

OF OWN PROPERTY CAR PARK OPERATION SERVICES

Renovation works on the Carlos Abaitua hostel in Vitoria-Gasteiz to be used for services of the Provincial Social Welfare InstitutePROMOTER: Álava Provincial CouncilDEVELOPER: Lagunketa, S.A.U

11

Business Group and Organisation Chart

Álavaheadquarters

Management BoardVizcaya delegation

Segovia delegation

Córdoba delegation

Presidency

Vice Presidency Management Construction

and Building line General Management

People management Depart.

Internal and External Communication Dept.

Management of Quality, Safety

and Environment area

Sub-management Construction and Building

line

Management Consultancy, Projects

and Technical Management line

Management Property Promotion and Operation line

ManagementCar Park line

ManagementServices line

ManagementAdministration and

Finance Area

After-Sales And Property Maintenance Area

Renovation Area

R+D+I Area

Tenders and Offers Area

Technical Management and Project Control

Area

Internationalisation Area

Finance and Taxes Accounting Dept.

ICTs Dept.

Controller

Insurance Dept.

General Systems Dept.

Legal and Economic/Financial Dept.

Energy renovation works in two buildings in Ondarroa (Bizkaia)Pilot project for the “ZeBe” programme (Zero Energy Basquetxea) PROMOTER: Housing association 50-52 Iñaki Deuna StreetDEVELOPER: UTE ONDARROA (Lagunketa – Sukia)

13

PROFILE OF THE HUMAN RESOURCES OF THE SARKIS-LAGUNKETA GROUP (FIGURES AS OF 31/12/2014)

By type of contract (%) By sex (%) By seniority in the company (%)

By age (no. of people)By professional category and sex (no. of people)

Evolution no. employees/year % of people in the organisation involved in improvement processes

Throughout 2014, the people in the organisation have continued to maintain their

involvement in the improvement and efficiency of the organisation's activity.

People

permanent: 91% women: 49%men: 51%temporary: 9%

from 2 to 5 years: 19%

from 5 to 10 years. 23% over 10 years: 58%

executives technicians administrative production

Men

Women20

15

10

5

18-25 26-35 36-50 51-65

30

25

20

15

10

5

2011 2012 2013 2014

80

75

70

65

60

55

2011 2012 2013 2014

100

75

50

25

Energy renovation and accessibility works in residential building at Cuadrilla Laguardia - Rioja Alavesa Street No. 2, 4, 6 of Zaramaga in Vitoria-Gasteiz.PROMOTER: Housing association Cuadrilla Laguardia - Rioja Alavesa Street No. 2, 4 and 6DEVELOPER: UTE Renovation Companies Laguardia Street (Lagunketa - Reyco)

15

SOME OF OUR MAIN CLIENTS

ÁLAVA DEVELOPMENT AGENCY

AMVISA

MICHELIN PORTUGAL ESPAÑA, S.A.

BILBAO CITY COUNCIL

MURGUÍA TOWN COUNCIL

VITORIA-GASTEIZ CITY COUNCIL

SEGOVIA CITY COUNCIL - EVISEGO (MUNICIPAL COMPANY FOR LAND AND HOUSING IN SEGOVIA)

BASKONIA KIROL HIRIA, S.L.U.

ÁLAVA PROVINCIAL COUNCIL

ENVAC IBERIA, S.A.

EDAR CRISPIJANA

EUVE

SANTA MARIA CATHEDRAL FOUNDATION

BASQUE GOVERNMENT-EUSKO JAULARITZA

GRUPO EMPRESARIAL ALCOR, S.L.

GRUPO TRINOSA PROMOCIÓN, S.L.

KUTXABANK

REGIONAL INSTITUTE FOR SOCIAL WELFARE

LEPAZAR XXI

NEINOR HOMES

CLARIM ÁLAVA S.L.U. (LABORAL KUTXA)

SOPRA GROUP EUSKADI S.L.

BASQUE TRIBUNAL OF PUBLIC ACCOUNTS

TUBOPLAST HISPANIA

UNIVERSITY OF THE BASQUE COUNTRY - EUSKAL HERRIKO UNIBERTSITATEA

ISGA INMUEBLES (LABORAL KUTXA)

ALOKABIDE

BILBAO MUNICIPAL HOMES

Operation and maintenance service for the waste water treatment plant in Crispijana (Álava) and other peripheral facilities of the sani-tation system of Vitoria-GasteizPROMOTER: Aguas Municipales de Vitoria – Gasteiz, S.A. (AMVISA)DEVELOPER: UTE GS Inima, S.A.V., D.A.M. y Lagunketa

17

Alliances

Main alliances of the Sarkis-Lagunketa Group

Development of real estate projects

Promotion and operation of car parks

Promotion of sheltered apartments

Land purchase and development of residential estates and promotions

Subsidised housing cooperatives

Promotion and operation of industrial buildings

Construction of the Artium Museum in Vitoria Gasteiz

Urbanisation of the square of the Artium Museum in Vitoria Gasteiz

Construction of the Juan Crisóstomo de Arriaga Conservatory (Bilbao)

Construction of the Zurbaran School (Bilbao)

Construction of the BIBAT Museum in Vitoria Gasteiz

Construction of an Education Centre in Lakuabizkarra (Vitoria-Gasteiz)

Construction of the Municipal Offices building in Vitoria-Gasteiz

Expansion works for the Fernando Buesa Arena Building in Vitoria-Gasteiz

Construction of the EUVE headquarters building (Vitoria-Gasteiz)

Construction of the Municipal Offices building in Vitoria-Gasteiz

Energy and environmental management services

Construction of the Municipal Offices building in Vitoria-Gasteiz

Expansion works for the Fernando Buesa Arena Building in Vitoria-Gasteiz

Project for replicable model of renovation of buildings with zero energy consumption.

International project for construction, civil works and services.

Collaborative projects related to the aim of allies

Energy efficient renovation project (Etorgai): Communication, legal services and ser-

vices related to construction and property development.

Project for energy renovation and accessibility of housing in the Zaramaga Neighbour-

hood in Vitoria.

KUTXABANK

GRUPO ABERTIS (SABA)

GRUPO TRINOSA PROMOCIÓN

GRUPO AISER (ALJAMIL)

GRUPO ACS (DRAGADOS)

CONSTRUCCIONES ZIKOTZ

CONSTRUCCIONES PÉREZ DE SAN ROMÁN

GRUPO VEOLIA (GIROA)

TECNALIA

BASQUE GROUP (ALTUNA & URIA & CYCASA)

A&L - PRISMA GLOBAL

GIROA - BEISSIER - ULMA - AISLAMIENTOS ARELLANO - SUKIA - GUARDIAN

REYCO

Refurbishment of the nursing wing of the Vitoria-Gasteiz SeminaryPromoter: Diocesan Seminary Developer: Lagunketa, S.A.U

19

Alliances

Services

Consultancy and technical management

Construction and building

Promotion and operation of buildings

Operation of car parks

Financial resources

Quality, security and environment - Integrated Management System

People management

KEY PROCESSES

Map of processes

Communication channels

Internal communications

Risk information and PSS

PRL consultancy and participation

e-management

Telephone, e-mail

Websites in the different areas

Annual report

Navision

Advertisement board

Suggestions for improvement.

Correspondence/Fax

Promotion six-monthly communication

The ongoing review of the strategy is aimed at simplification and efficiency in the processes

People satisfaction surveys

Work environment surveys

Subcontractor surveys

Training needs surveys

Consultancy client satisfaction surveys

Client satisfaction survey for Property promotion and operation

Client satisfaction surveys for car park operation

Services client satisfaction surveys

Construction client satisfaction surveys

Risk assessment

Non-compliance reports (NCR)

Accident investigation.

Corrective and preventive measures.

48%

PREPARATION AND MONITORING OF

STRATEGIC PLAN

QUALITY, SAFETY AND ENVIRONMENT

R + D + I

ALLIANCES

INTERNAL AND EXTERNAL COMMUNICATION

CUSTOMER SERVICE

PEOPLE SATISFACTION

SELF

-ASS

ESSM

ENT A

UDITS

STRATEGIC PROCESSES PRODUCTIVE PROCESSES SUPPORT PROCESSES

LEADERSHIP

SERVICES

CONSTRUCTION AND BUILDING

PROPERTY PROMOTION

AND OPERATION

CONSULTANCY AND TECHNICAL MANAGEMENT

FINANCIAL RESOURCES

PURCHASES AND SUBCONTRACTING

ADMINISTRATIVE OFFICE MANAGEMENT

WAREHOUSE MANAGEMENT INFRASTRUCTURES

PEOPLE MANAGEMENT

ICT MANAGEMENT

CAR PARK OPERATION

Construction 3 terraced houses (Lakua)PROMOTER: Isga Inmuebles, S.A. ( Laboral Kutxa)DEVELOPER: Lagunketa, S.A.U.

21

25

20

15

10

5

0

25

20

15

10

5

0

2011 2012 2013 2014 2015*

Activity indicators: promotion and construction

Property management income (millions of Euros) Promotion income (millions of Euros)

Evolution Works portfolio (millions of Euros)Construction (millions of Euros)

0.5

0.4

0.3

0.2

0.1

0

2011 2012 2013 2014 2015*

0.2 0.3

0.4

24.9 25.2

13.4

70

60

50

40

30

20

10

0

53

31 37

27

21

2011 2012 2013 2014 2015* 2011 2012 2013 2014 2015*

SLK, in line with economic activity in the sector, is focusing on the development

and operation of the completed assets and the profitability of its assets in property

management.

0.5 0.5

4.7 3.5

8

14

723 30

*Estimated figures

56 sheltered apartments in Bilbao (calle Canarias)Promoter: Landinosar, S.L.Developer: Lagunketa, S.A

23

Activity indicators: car parks and services

In 2014, the activity of these two lines has remained stable and has started to

recover compared to recent years.

Car park operation (thousands of Euros) Car park operation (No. users rotation)

Car park operation (total No. payers)

Services (thousands of Euros)

400,000

300,000

200,000

100,000

0

312,933 247,318

258,009

987 950

899

700

600

500

400

300

200

100

0

688 620

543

1,000

900

800

700

600

500

400

300

200

100

0

2011 2012 2013 2014 2015* 2011 2012 2013 2014 2015*

2011 2012 2013 2014 2015*

783 800

239,692 242,296

486 497

*Estimated figures

3,000

2,500

2,000

1,500

1,000

500

0

2,275

3,062

2,068

2011 2012 2013 2014 2015*

1,304

1,092

Underground car park San MartínPromoter: LepazarDeveloper: UTE Lepazar (Lagunketa, Zikotz, Pérez de San Román, Giroa)

25

Activity indicators: project consultancy

While the effort and commitment to achieve projects has been

constant in the years of reduced activity, 2015 is the year in which

the projects and amounts awarded are starting to display values

consistent with this.

Evolution No. offers Evolution amount offered

Amount awarded (millions of Euros)

No. of offers

Amount offered(millions of Euros)

Amount awarded(millions of Euros)

2011

39

149

29

2012

62

223

2

2013

46

52

6

2014

54

67

4

2015*

65

125

23

60

50

40

30

20

10

0

39 46

62

250

200

150

100

50

0

67 52

223

30

25

20

15

10

5

0

29

6 2

2011 2012 2013 2014 2015*

2011 2012 2013 2014 2015*

2011 2012 2013 2014 2015*

54

65

125

149

4

23

*Estimated figures

Construction and operation of the overground San Martín rotation car parkPromoter: LepazarDeveloper: UTE Lepazar (Lagunketa, Zikotz, Pérez de San Román, Giroa)

27

Building works and projects

MAIN WORKS COMPLETED IN 2014

MAIN WORKS COMPLETED IN 2014

MAIN BUILDING WORKS AND PROJECTS UNDERWAY

New headquarters of municipal offices in Vitoria-Gasteiz

• Expansion of Logistics Centre in the San Millán Asparrena Industrial Estate (Araia) for Michelin

• Work on Industrial buildings promoted by Álava Agencia de Desarrollo, S.A. in Subillabide (Álava)

• Operation and maintenance service for the waste water treatment plant in Crispijana and other peripheral facilities of the sanitation system of Vitoria-Gasteiz

• Works to eliminate structural barriers and expansion in the CEIP Kukullaga HLHI Etxebarri (Bizkaia)

• Works on the Public Terrace of Santa Barbara Market Square in Vitoria-Gasteiz

• Construction of 17 free-market homes in Zabalgana Vitoria-Gasteiz for Neinor.

• Construction of 8 terraced houses in Mendiola (Alava) for Laboral Kutxa

• Construction of three terraced houses in Lakua for Laboral Kutxa (Vitoria-Gasteiz)

• Works to adapt accesses and expand services of Mendizorrotza sports centre in Vitoria-Gasteiz

• Construction of a Nursery School in Cuzco (Peru)

• Waterproofing of Interior Patio on Anglovasco Street and No. 7 Sierras Alavesas (Vitoria-Gasteiz)

• Drainage network maintenance in Garage at 6,8 Navarra Street (Vitoria)

• Interior renovation of house at 74 Gasteiz Avenue (Vitoria-Gasteiz) and 2 Las Escuelas Street (Vitoria-Gasteiz)

• Adaption works of Bertiz bakery, Cid Campeador Avenue (Burgos)

• Construction of the new Municipal Offices building (Vitoria-Gasteiz)

• Renovation works on the Carlos Abaitua hostel to be used for services of the Provincial Social Welfare Institute

• Energy renovation and accessibility works of residential building in Cuadrilla Laguardia Street - Rioja Alavesa Nos. 2, 4, 6 in Zaramaga in Vitoria-Gasteiz (Álava)

• Alokabide

• Reform of Entrance Hall at No. 3 Pintor Mauro Ortiz Urbina Street, Vitoria-Gasteiz

• Construction of a detached house in Sector 39B Lasarte (Vitoria-Gasteiz)

• Refurbishment of the south wing of the Vitoria-Gasteiz Diocesan Seminary

• Phase 1 Reconversion of the Lakua-Arriaga Health Centre at the CSMC (Social Cultural Centre for the Elderly)

• Refurbishment of premises for the Central Services offices in Vitoria-Gasteiz (Casa del Guarda)

• Refurbishment of the Alava Territorial Delegation of Lanbide-Basque Employment Service

• Energy renovation works in buildings 50 and 52 on Iñaki Deuna street in Ondarroa (Bizkaia) based on the project of the "ZeBe" (Zero Energy Basquetxea) program

• Renovation and maintenance works of the Cathedral of Santa María (Vitoria-Gasteiz)

• Interior reform of home at 18 Manuel Iradier Street and 65 Nieves Cano Street

• Ramp reform in chapel of the Santa Joaquina residence (Vitoria-Gasteiz)

Construction 8 terraced houses (Mendiola)PROMOTER: Clarim Alava, S.L.U. (Laboral Kutxa)DEVELOPER: Lagunketa, S.A.U.

29

Main economic figures (Consolidated Data)

After years of reduced activity and Balance, the SLK group has maintained its net assets as collateral to undertake new projects with solvency.

Net Worth (thousands of Euros)

Net Amount of Turnover (thousands of Euros) Total Assets (thousands of Euros)

75

65

55

45

35

25

15

0

73,847

61,413

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

38,387

32,567

19,076

2011

16,296

38,387

73,847

2012

16,960

32,567

61,413

2013

17,153

19,076

48,118

2014

18,213

13,484

40,627

NET WORTH(thousands of Euros)

NET AMOUNT TURNOVER(thousands of Euros)

TOTAL ASSETS(thousands of Euros)

2011 2012 2013 2014 2011 2012 2013 2014

48,118

18,250

18,000

17,750

17,500

17,250

17,000

16,750

16,500

16,250

16,000

15,750

15,500

16,296

16,960

17,153

2011 2012 2013 2014

18,213

13,484

40,627

INFRASTRUCTURES

BasqueGroup

Construction of Nursery School in Cuzco, Peru (Basque Group Project)

31

Results in society

ALAVA CHAMBER OF COMMERCE AND INDUSTRY Lauren Arrizabalaga (President of Sarkis-Lagunketa), is a member of the Plenum of the Alava Chamber of Commerce and Industry, participating by attending the assemblies and meetings convened.

ELKARGIOur vice-president Josu Sanchez, is President of ELKARGI.

ELKARGI is a Mutual Guarantee Company which has 11,400 members, all of them small and medium-sized enterprises belonging to the Basque business fabric. In 2013 it granted guarantees for 200 million Euros, indicating ELKARGI's commitment to SMEs.

SEA-UNECALuis Alba is a member of the Executive Committee of the Board of UNECA (Alava Union of Business owners in Construction) and the Management Board of SEA Empresarios Alaveses.

BASQUE ASSOCIATION OF ECONOMISTS: ECONOMISTS, TERRITORY AND URBAN COMMUNITY Lauren Arrizabalaga (President) and Luis Alba (Managing Director ) actively participate in the workshops promoted by the community of economists, territory and urban development, with the aim of:• Integrating the vision of the economists in the discipline of Territorial Planning and Urban

Development, a field that is usually occupied by architects and lawyers. • Claiming the presence of economists in defining and shaping the territorial and urban model.• Identifying, analysing and proposing improvements from the perspective of the economy for

greater effectiveness and efficiency in urban and territorial policy from its origin to its execution and follow-up, by providing knowledge and techniques required for appraisals, economic-financial and urban-territorial studies, etc.

• Ensuring a growing interest among economists about the need to participate in this discipline. • Discovering the career opportunities in this field, as a new field of action for economists. • Detecting training needs around Territorial Planning and Urbanism.

In addition, Luis Alba is a member of the Alava Section of the Basque Association of Economists.

CONSTRUCTION CLUSTERSLK maintains its active participation in the Construction Cluster and in the committees in which its performs its activities. Eraikune has a representation of all activities of the Construction Sector (construction companies, developers, technical architecture services, engineering, renovation and maintenance companies, suppliers of materials, subcontractors, professional associations, universities and technology centres) and it has aimed to select organisations from the three provinces.

As targets for the coming year it has established various study Committees from the following areas:

New markets (internationalisation), innovation and sustainability, renovation of neighbourhoods and buildings.

APPRAISERS CLUBThe Director of Quality and Safety and the Environment and the Managing Director of SLK are members of the Euskalit Appraisers Club and actively participate in contrasts and assessments of Advanced Management and in Club 400 (formed by organisations that have achieved the Silver Q) .

In 2014, the Managing Director and the Director of Quality participated in two external comparisons, assessing organisations according to the advanced management system.

Works on the Public Terrace of Santa Barbara Market Square in Vitoria-GasteizPROMOTER: Vitoria-Gasteiz City CouncilDEVELOPER: Lagunketa, S.A.U.

Expansion of Logistics Centre in the San Millán Asparrena Industrial Estate (Araia) for MichelinPROMOTER: Michelin España Portugal, S.A.DEVELOPER: UTE ARAIA (Lagunketa, Perez de San Roman, Zikotz y Giroa)

33

Results in clients

Client satisfaction index by lines of activity

2008 2009 2010 2011 2012 2013 2014

100

90

80

70

60

50

40

30

20

10

0

Consultancy

Services

Promotion

Operation of Car Parks

Construction

Renovation works of the Vault of the Cathedral of Santa María.PROMOTER: Santa Maria Cathedral FoundationDEVELOPER: UTE CATEDRAL (Lagunketa, S.A.U. – Artyko)

35

Results in people

80

70

60

50

40

30

20

10

0

80

70

60

50

40

30

20

10

0

Appraisal of people's communi-cation SLK

Motivation

Training system

Satisfaction index

What is communication like with your colleagues?

In general, compared to other companies you know, do you think it is a good place to work?

Do you feel involved in the company's projects and do you believe your participation and contribution is appropriate for achieving the objectives set?

Do you think you have the necessary technical knowledge to efficiently perform tasks in your job?

friendly polite normal not very polite impolite

100

90

80

70

60

50

40

30

20

10

0

heads of line

heads of department

administration staff

technical staff

production staff

SLK

d/k-n/c one of the best slightly better than most

more or less like all of them

slightly worse than others

d/k-n/c very involved quite involved sufficiently not very motivated

d/k-n/c my knowledge exceeds the job requirements

I possess necessary and sufficient knowledge

I have 'gaps' that slightly complicate

my work

My knowledge is insufficient to perform my job

100

90

80

70

60

50

40

30

20

10

0

Construction Industrial building for Tubos Reunidos in Subillabide (Álava)PROMOTER: Alava Development AgencyDEVELOPER: UTE SUBILLABIDE (Lagunketa, S.A.U., Zikotz y URSSA)

37

SARKIS S. A.

ER-0369/2002 GA-2004/0413 SST-0215/2009

SARKIS APARCAMIENTOS S. A.

ER-1018/2009 GA-2009/0518 SST-0214/2009

LAGUNKETA S. A.

ER-0034/1998 GA-2004/0412 SST-0216/2009

In 1977 the Group began its journey through the various certified management

systems. In compliance with the Mission, Vision and Values and our Strategic

Plan, we continue to work on improving our management systems and the

implementation of EFQM Total Quality model.

ISO 9002:94 Lagunketa S.A.

ISO 9001:00 Sarkis S.A.

Systems integration

ISO 9001:00 Sarkis-LagunketaLagunet

ISO 14001:96 Sarkis-Lagunketa

ISO 14001:04 Sarkis-LagunketaFirst self-assessmentEFQM Diploma Sarkis-Lagunketa

Second self-assessmentThird self-assessment- external comparison Creation of the website

Presentation of the EFQM ReportProject 2nd phase Nobel in networkDiscordances Project

OHSAS Certification Energy Efficiency Certification ISO’s for Sarkis Aparcamientos S.L.

Works Access Control Project Project implementation of the system to everyone in the organisation through the review

Audit of LOPD and SPBC systems

Obtaining the silver Q for Management Quality (Euskalit)Joining the ‘Pacto Verde’ participating in the activities promoted by Vitoria-Gasteiz City Council, European Green Capital 2012Presentation of EFQM Report for external assessment.

Consolidation EFQMReview and Renovation Cycles for OSAHS and ISO 9001 and 14001

AENOR audit cycle for renovation of OSAHS and ISO9001 and 14001Continued participation in Club 400 and Euskalit Appraisers Club.

2001

2003

2000

1998

2004

2005

2007

2008

2009

2010

2011

2012

2013

2014

2002

Certifications, business classifications and improvement processes

PATH TO EXCELLENCE

Portal de Gamarra nº 1. Oficina 112.01013 Vitoria-Gasteiz.

Tel. 945 128 887 Fax: 945 121 044

E-mail: sarkis@sarkis.es lagunketa@lagunketa.es

www.sarkislagunketa.com