S u s t a i n a b i l i t y R e p o r t 2 0 0 7 S u s t a ...€¦ · Avda. Francesc Macià, 38 - planta 16, 08208 Sabadell (Barcelona) Spain Tel. + 34 93 724 39 00 - Fax + 34 93

Avda. Francesc Macià, 38 - planta 16, 08208 Sabadell (Barcelona) SpainTel. + 34 93 724 39 00 - Fax + 34 93 723 85 56

www.fluidra.com

S u s t a i n a b i l i t y R e p o r t 2 0 0 7

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Letter from the President and CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04

1. Report parameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 1.1.ReportProfile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07 1.2.Extentandscopeofthereport. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07 1.3.IndexofGRIcontents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09 1.4.Externalverification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

2. The Fluidra Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.1.Presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.2.Fluidra’sorganisationalchart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2.3.CompanyHistory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 2.4.Activityandfeaturesofthebusiness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

3. Fluidra Group Sustainability Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3.1.StrategicBases(mission,vision,valuesandcommitment) . . . . . . . . . . . . 19 3.2.CorporateManagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 3.3.CommitmenttoExternalInitiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 3.4.ParticipationofStakeholderGroups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

4. Economic Dimension and Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 4.1.ManagementApproach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 4.2.BasicDimensionandIndicatorsofEconomicPerformance . . . . . . . . . . . 34

5. Labour Dimension and Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 5.1.ManagementApproach:commitmenttothehumanteam . . . . . . . . . . . 38 5.2.Performanceindicators,workpracticeandworkethic . . . . . . . . . . . . . . . . . 39

6. Environmental Dimension and Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 6.1.ManagementApproach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 6.2.EnvironmentalPerformanceIndicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

7. Dimension and Indicators of Social Commitment . . . . . . . . . . . . . . . . . . . . . 61 7.1.SponsorshipandPatronage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 7.2.UnitedNationsGlobalCompact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 7.3.CommitmenttoHumanRights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 7.4.SocialCommitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 7.5.CommitmenttoProductResponsibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

8. Index of GRI Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

INDEX

At Fluidra we are very proud to present our Sustain-abilityReport2007,whichconfirmsourcommitment,initiated lastyear, tosocial responsibility.ThissecondreporthasbeendrawnupaccordingtothecriterialaiddownintheGlobalReportingInitiative(GRI)G3guide,whichallowsustopresentthegroup’seconomic,envi-ronmentalandsocialperformanceinarigorousway.

Morethanever,waterhasbecomeascarceandpreciousresource.Thesectors inwhichweoperate, swimmingpoolsandwatertreatment,areveryawareofthecurrentsituation.ThisiswhyatFluidraourvocationandmainstrategic priority is to find sustainable solutions forthe use and enjoyment of water.We want to contrib-ute to theconservationof thispreciouselement,andthis is why we are committed to making every efforttoimproveefficiencyinswimmingpoolsustainability,andweareinvestinginthedevelopmentofmoresus-tainabletechnologiesandproducts,whileworkingtoreducethe impactofourproductionactivitiesontheenvironment.

Proof of this is our commitment and achievementsthroughout2007.Lastyear,Fluidraapprovedthe firstCorporateResponsibilityStrategicPlan,whichlaysouttheactivitiesweneedtocarryoutsothatin2010theday-to-dayrunningof thegroupcanreflectourcom-mitment to social responsibility and sustainability.Tobe able to meet this challenge, a CSR committee hasbeensetupandwehaveestablishedaprogrammeof8strategiccommitmentscoveringsocial,environmen-tal and economic topics. Membership in August 2007of the United Nations Global Compact was a greatstepforwardinthisaspect.FluidrahasalsoagreedtopublishaProgressReporttoshowtheprogressmadeintheintroductionandimplementationofthe10prin-ciples established in the Compact. We would like toconfirm the importance our environment has for us,and our commitment to its protection, as well as thetransparency and collaboration in our dealings withour partners, customers, suppliers, shareholders andotherstakeholdergroups.

Eloi Planes Chief Executive Officer

Joan Planes President

Asfarasourachievementsin2007areconcerned,wewouldliketopointoutthevariousprizesanddistinc-tions received, both for the good practice shown byour professional staff, and the company’s continuingconcernformaximumsustainability.Examplesarethevarious awards received in the Barcelona SwimmingPool Show: First Prize for Innovation for the aquaticlift system Waterlift, which facilitates access for thedisabled to swimming pools, or the Special Mentionforthewatersavingsystem,WaterSaver.

FluidrawasfloatedontheStockExchangeonOctober31st,2007.Apartfromtherecognitionwehavereceived,Fluidra must now face the future as a public limitedcompany. The efforts of our team of collaborators intermsoftransparencyandsustainabilityhavebroughtustowherewearetoday,andhavesmoothedthewayforthefuture.Wearesettingoutonthisjourneyfilledwith enthusiasm and motivation, and will continueworking together to become a company that is evenmoresociallyresponsibleandsustainable.

LETTER FROM ThE PRESIDENT aND CEO

| � | �

This report follows the guidelines laid down by theGlobalReportingInitiative(GRI)fordrawingupsus-tainability reports, also named G3. As defined byGRI, materiality is the “threshold at which topicsandindicatorsthatreflecttheorganisation’ssignifi-cant social, environmental and economic impactsbecome sufficiently important that they should bereported, as they could substantively influence theassessmentsanddecisionsofstakeholders”.

Bearingthisprincipleinmind,thematerialityofthecontents has been determined on the basis of ananalysisoftheactivitiescarriedoutinthecompany’s

various sites and of their impact on and relation tothe different stakeholders as identified in Fluidra’smission. In drawing up this report we also tookaccountofthegroup’sinteractionwiththeenviron-ment and of the risks and opportunities that mightaffectFluidra’ssustainability(3.5).

The report includes companies based in Spain (3.6)butexcludescompaniesacquiredafterDecember31st2006. The report does not include Revicer, Togamaand Unipen, all members of the Auric Pool holding,for technical reasons related to the group’s corporatemanagementsystems(3.7).

1.2. Extent and coverage of the report

Fluidra’s data and the activities mentioned in thisdocument include the whole year 2007 (3.1). Thecorporatesocialresponsibilityreportcorrespondingtotheyear2006wasFluidra’sfirstandwaspublishedinSeptember2007accordingtotheCNMVregulationsonpublicityintheprocessofflotationonthestockmarket(3.2).

Fluidrahasthewillandthecommitmenttoprepareasus-tainabilitypolicyannually(3.3).

For any question on this document please do nothesitatetocontact(3.4,2.4):

Mr Jaume CarolChief Operating Officer

FluidraServices,S.A.U.C/Filadors35-41Planta4ª08208SABADELL(Barcelona)Spaine-mail:[email protected]

REPORT PaRaMETERS

1.1. Report profile

11

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aSTRaLPOOL aURIC POOL CEPEX EUROPEaN CORNER

AstralPoolEspaña

AstralExport

AstralPoolGroup

Idegis

ExexPool

Maberplast

Metalast

Poltank

Prelast

Sacopa

TalleresdelAgua

UnistralRecambios

Cepex

CepexEspaña

Forplast

ManufacturasdePlásticosSolá

VRAC

CertikinIbérica

IndustriasMecánicasLago(IML)

NEOKEM SNTE SWIMCO CORPORaTE aND OThER SERVICES

CTXEspaña

Inquide

Inquide-Flix

Waterchem

Astramatic

Servaqua

SNTEAguaGroup

SNTEEspaña

ManufacturasGre

MeipInternacional

AccentGraphic

FluidraServices

PoolSupplier

TraceLogístics

Our aim is to keep moving forward in the sustain-abilityofourcompaniesandtoextendthescopeofthe next sustainability report to a European level.We believe we will be able to tackle internationalcoveragewithinaperiodoftwoyears.

Thecurrentcoverageofthereportdoesnotincludejoint ventures, subsidiaries, leased facilities, out-sourcedoperationsorotherentitieswhichcouldaf-fectthisdocument(3.8).

All of the information contained in this report hasbeen collected and consolidated from the internalmanagement systems of the companies covered inthereport,usingqualitativeandquantitativemeth-ods for the collection of information at group level(3.9).

Forpurposesofcomparisonwithlastyear’ssustain-ability report, it is necessary to bear in mind thatthe coverage of the report has been increased.Thismeans that, in some cases, the information cannotbe compared, which may lead to significant distor-tions in terms of global assessments and measure-ments(3.10).

Thechangesintroducedinthisyear’sreportincludean increase in coverage compared to last year withthe addition of Idegis, Maberplast, Prelast, Talleresdel Agua, Unistral Recambios, Certikin Ibérica, In-dustriasMecánicasLago,MeipInternacional,AccentGraphicandPoolSupplier,andimprovementstotheinformation systems with the aim of advancing intheidentificationandmeasurementofFluidra’ssus-tainabilityperformance(3.11).

1.3. Index of GRI contents

Inordertofacilitatereadingandaccesstotheinfor-mationcontainedinthissustainabilityreport,acon-tents table has been prepared in accordance withtheG3guidelinesdescribedinchapter8(3.12).

1.4. External verification (3.13)

In order to ensure its accuracy, the informa-tion published in this report has been verified byan external certification company, AENOR. The

verification was conducted on the basis of thecompleteness, materiality and relevance of the in-formation contained in the report according to theG3guidelinesoftheGRI.

Fluidra continues to strengthen its commitment tosustainability.This report is rated (a+)accordingtoG3 guidelines (see Compliance table below) and tothe outcome of the external verification and directapprovalprocessthroughthe“GlobalReportingIni-tiative”.

Alloftheinformationandoperationssetoutinthissustainabilityreportrelatetothefollowingcompanies:

| � | �

Fluidra is a Spanish multinational group with headoffices in Sabadell (Barcelona), specialising in thedevelopmentofapplicationsforthesustainableuseof water.The company offers solutions for the stor-age,treatmentanduseofwater(2.1,2.4).

Fluidra currently operates (in the first half of 2008)in31countriesthrough156officesandhas39man-ufacturing sites located across the world. Fluidra’sproductsaredistributedtomorethan170countriesthrough an extensive commercial network. Fluidraemploys3,748people(2.8).

Respect for water and a rational use of water formthe basis of the philosophy of the group, foundedin2002.ThecompaniesthatformtheFluidragroup,someofwhichhavealonghistoryreachingbackal-most40years,havegrownwith thisvision, special-izing in different sectors such as water treatment,appliedwaterconveyance,irrigationandequipmentforswimmingpools.

Thegroupspecialisesinseveralmanufacturingtech-nologies,suchasplasticinjection,polyestercasting,blow moulding, rubber transformation, plastic ex-trusion,andchlorineproduction.

ThecompaniesbelongingtoFluidrahaveputinplacequalitysystemsbasedonISO9001andcomplywiththe legislation and regulations applicable to eachproductofthegroup.Inaddition,themanufacturingcompanies in the group have all obtained environ-mental certification in accordance with the world’smainvoluntarystandards:EMASandISO14001.Thecommercial companies of the group, which have asmaller environmental impact, are controlling theirexternalitiesandareworkinghardtowardsreducingboththeirenergyconsumptionandtheirwastepro-duction.

MainFluidrabrands(2.2):

2 ThE FLUIDRa GROUP

2.1. Presentation

LEVEL OF COMPLIaNCE C C+ B B+ a a+

BA

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3.1-3.8,3.10-3.12

4.1-4.4,4.1-4.15

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Notrequired.

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approachforevery

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Management

approachforevery

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Indicators of performance G3 and supplements

Toreportonaminimum

of10performance

indicators,includingat

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environmental).

Toreportona

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environmental,

humanrights,

labourandsocial

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Toreporton

everyprincipalG3

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SectorSupplements,

withaspecialfocus

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Materialityeither

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reasonforthe

omission.

| 1 0 | 1 1

Among the significant changes in the structure anddynamics of Fluidra in 2007 (2.9) was the floatationof the group on the stock market on October 31st.Sincethen,FluidrahasbeenquotedintheStock-Ex-changeInterconnectionSystemofSpain’sfourStockExchanges.

awards and distinctions received in 2007(2.10)Since it was founded nearly 40 years ago, the Fluid-ra group and its subsidiaries have received variousawards.In2007thecompanyreceivedtheanumberof awards in recognition of the work carried out indifferentareas.

• AstralPool received the “Leaders of Marketing”awardfromtheMarketingProfessionalsAssociation,whichrewardsthebestbusinessinitiatives.

• Shortly before the flotation of the group, theaquatic elevator Waterlift, designed by Astral Pooltofacilitateaccesstoswimmingpools,wonthefirstprize for Innovation granted at the InternationalSwimming Pool Show, which took place at Fira Bar-celona from October 17th to October 20th, 2007.TheWaterliftsystemisafullyinnovativedesignthatcombinesconventionalladderswithcomplexaccesssystemsforthedisabledinoneproduct.

• AntheroftheproductsrewardedattheSwimmingPool Show was theWater Saver, a water-saving unitdesigned for the swimming pool filtration system.The distinctive features of the Water Saver wereawarded a ‘Special Mention’, equivalent to the sec-ondprize,inthecategoryofthemostsustainableso-lutionspresentedinthecontest.Thisproductallowswatersavingsof60%inthecleaningofthefilter.Thefrequency of filter washes is reduced by a third, al-lowingaseasonalsavingof3,600litresofwater.

• Cepex was rewarded with the inclusion of its ar-quetasppforplastproductintheecocityexhibition,which was held during february and march 2007 inbarcelona.

PP FORPLaST VaLVE BOX

MaRKETING LEaDERS

WaTERLIFT / WaTER SaVER

| 1 2

2.2 Fluidra’s organisational chart (2.3) Fluidra’s international presence (2.5,2.7)

·Branchesandofficesin30countriesincludingGerma-ny, Australia, Austria, Bulgaria, Chile, China, Denmark,United Arab Emirates, Spain, the USA, France, Greece,Hungary,India,Italy,Morocco,Mexico,Nigeria,Poland,Portugal, the United Kingdom, the Czech Republic,Russia,Singapore,Sweden,Switzerland,Taiwan,TurkeyandUkraine.

· 152 delegations and more than 32.500 active clientsin170countries.

2.3. Company history

The origins, Barcelona 1969Fluidra’s origins go back to 1969, when a group offour Barcelona-based shareholders founded thecompany Astral SA of Metallic Constructions, spe-cialisinginthemanufactureofmetalaccessoriesforswimmingpools.

Duringthe70’sthecompanygrewsteadilyinSpain,opening branches in Italy and France.The business

continued growing and set its sights on other mar-ketsspecialisingintherespectfulandintelligentuseofwaterresources.

Cepex,acompanyspecialisinginthemanufactureofwaterconveyancevalves,wasfoundedin1984.Thismarkedadefinitivestepinthedevelopmentofotherlines of business not directly related to the swim-ming pool industry, which the company continuedtooperatein,extendingitsservicesandexperiencetotheUnitedKingdomandPortugal.

Two years later, in 1986, two new companies werecreated: CTX, a company engaged in the manufac-tureofwatertreatmentchemicals,andAstramatic,acompanyspecialisinginindustrialwatertreatment.Inthe90’sthegroupexpandedintoEasternEurope,openingofficesintheNorthAmerican,LatinAmeri-can,MiddleEasternandAustralianmarkets.Inaddi-tion,aholdingstructurewascreated.

Directpresence

(Organisationalchartasat31December2007)

aSTRaLPOOL aURIC POOL EUROPEaNCORNER SWIMCO CEPEX NEOKEM SNTE OThER

COMPaNIES

EUROPE

Austria

Bulgaria

CzechRepublic

Denmark

France

Germany

Greece

Hungary

Italy

Poland

Portugal

Spain

Sweden

Switzerland

United Kingdom

INTERNaTIONaL

america:

Chile

Mexico

USA

Worldwide:

Australia

China

India

Morocco

Nigeria

Russia

Singapore

Taiwan

Turkey

UAE(Dubai)

Ukraine

Export:

AstralExport

Aquant(China)

ECA(France)

Idegis(Spain)

Maberplast(Spain)

Metalast(Spain)

NingboLinya(China)

PacificIndustrie(France)

Poltank(Spain)

Prelast(Spain)

Revicer(Spain)

Sacopa(Spain)

TalleresdeAgua(Spain)

Togama(Spain)

Turcat(Turkey)

Unipen(Spain)

UnistralRecam-bios(Spain)

CertikinFrance

CertikinIbérica

Certikin International

Hydroswin

IML

ManufacturasGre

MeipInternacional

Industrial div.

Cepex

Forplast

VRAC

ProCepex(Morocco)

PlasticsSolà

XiPei(China)

Sales div.

Agrocepex(Morocco)

CepexFrance

CepexGermany

CepexItaly

Cepex MiddleEast

CepexMexico

CepexPortugal

CepexSpain

CepexUSA

Irrigaronne(France)

Masterriego(Spain)

Industrial div.

Inquide

InquideFlix

Sales div.

Aquambien-te(Portugal)

CTX(Spain)

CTXPiscine(France)

CTX Chemicals(Italy)

Astramic

ATH

Servaqua

SNTEFrance

SNTESpain

AccentGraphic

Trace Logistics

Pool Supplier

Inmob. Swim38

POOL WaTER

PRESIDENTPRESIDENCIA

ChIEF CORPORaTE aND FINaNCIaL OFFICER DIRECTORGENERAL

CORPORATIVOFINANCIERO

FLUIDRa CEO

CONSEjERODELEGADO

ChIEF OPERaTING OFFICER DIRECTORGENERALOPERATIVO

| 1 � | 1 �

The path to leadershipIn2002,33yearsafteritsfoundationin1969anditsmeteoric expansion on a global scale, Aquaria (lat-er known as Fluidra) was founded, a multinationalgroupmadeupofa largenumberofcompanies(allspecialisingintheswimmingpoolmarket)thatkeepongrowingwithonecommondenominator:respectforwaterandarationaluseofwater.Thatsameyear,theBankofSabadellacquired20%ofthesharecapi-talofthegroup.

In2005,theinternationalgoverningbodyforswim-ming (FINA) appointed the newly formed group,throughAstralPool,officialpartnerofthefederationthankstoitsworkasasponsorandofficialproviderintheworld’sswimmingchampionships.

Afterspecialisinginnumerouswaterrelatedsectors(storage,use,conveyance,treatmentandenjoymentof water) and taking over the holding companiesSNTE,CepexandNeokem,Fluidrawassplitintotwostrategicdivisionsin2006:POOL,specialisinginthedesign, production and distribution of componentsand accessories for swimming pools, and WATER,which specialises in water treatment, applied waterconveyance and irrigation.This line of business ex-panded so much that branches were opened in theUSA, Portugal, Mexico, Italy, France, Germany, Mo-roccoandChina.

Thatsameyear, thegroupacquiredHurlcon inAus-tralia,MTHinGermany,NetProductosinMexico,andSpain-basedIdegisandCeibsa.

In2007,FluidrabecamememberoftheGlobalCom-pact promoted by the United Nations Organisation(UNO)andchannelledinSpainthroughtheSpanishAssociation for the Global Compact (ASEPAM). ThismembershipinvolvesafirmcommitmentonthepartoftheGrouptoworktowardsanddevelopcorporateresponsibility.

Duringthesameyear,theGroupacquiredtwoSpain-basedcompanies,MasterIrrigationandATH,aswellasIrrigaronne,aFrenchcompany.

Additionally, Fluidra agreed to implement a Strate-gic Plan for the 2007-2010 period, which is aimedmainly at strengthening the company by maintain-

ing the POOL Division’s leadership and by boostinggrowthintheWATERDivision.

Fluidra’s flotationAs part of the company’s imminent flotation, inSeptember 2007 the group’s name was officiallychangedtoFluidra.Thischangeofnamewasaimedatdifferentiatingthecompanyfromitscompetitors,giving the group’s leading brand greater visibilityandrelevance.Butthegroup’sstrategicobjectivere-mainedunchanged,asEloiPlanes,CEOofthegroup,explained;“Weaimtobecomeaworld leader inthefield of innovative solutions for the sustainable useofwater”.

OnWednesday, October 31st 2007, two weeks afterbuyingastakeinSASPacificIndustrie,aFrenchcom-pany,thegroupwasfloatedontheStockExchangesof Madrid, Barcelona, Bilbao and Valencia, and in-cluded in the Spanish Stock-Exchange Interconnec-tionSystem(ContinuousMarket).

2.4. activity and features of the Group’s business

POOL DivisionThe POOL division vertically integrates the design,manufacture, marketing and distribution of a fullrange of swimming pool equipment, with the aimof offering a comprehensive service that meets thehigheststandardofquality.

Thislineofbusinesscontributestotheconstructionofmorethan25%ofallswimmingpoolsthatarebuilteveryyearacrosstheglobe,whetheritisresidentialor competition, temporary or permanent, outdooror indoor pools, or municipal or hotel swimmingpools, olympic pools or for water parks, luxuriouspools, for balneotherapy or wellness centres, DIyor inground pools. The POOL division includes thefollowing holding companies: astralPool, auric Pool, European Corner andSwimco.

With almost 40 years of experience, astralPool is aworldleader(with25.000clientsinfivecontinents)inthesaleanddistributionofswimmingpoolequipmentforbothpublicandprivateuse,aswellasofhydrother-apyfacilities(wellnesscentres).Thecompanyprovides

servicestoallprofessionalswhoarelookingforaglobalprovider,andiscapableofmeetingeveryneedintheswimmingpoolsector.

Foritspart,auric Pool specialisesinthemanufactureofswimmingpoolequipment.Atpresent,mostoftheGroup’smanufacturingcompaniesarelocatedinSpain,aswellasFrance,ChinaandTurkey.Thankstoitsgreatdiversification capacity and manufacturing flexibility,Auric Pool is able to offer a wide variety of solutionstoawiderangeofsectors,includingswimmingpools,water treatment, lighting, gardening, irrigation, etc.,under the client’s brand and with a guarantee ofquality.

European Corner is a holding company specialisinginthemanufactureanddistributionofswimmingpoolproducts under different brands. The company has anumberofmemberswhichareknownfortheirleadingmarket positions and recognised brands, the mostnotableofwhichareCertikin,HydroswimandIML.

Swimco provides services to more than 250,000familiesayear.Thecompany,whichisbasedinEuropeand iscomprisedofMeip InternacionalandManufac-turesGRE,specialises inthedistributionofswimmingpool kits and related products to supermarkets, suchas accessories, cleaning products, water treatmentchemicals,etc.

WaTER DivisionTheWATER business line meets the requirements ofa whole variety of markets through a wide range ofsolutions in water treatment, applied water convey-anceandirrigation,allofwhichareunderpinnedbyour commitment to preserving such a valuable andscarceresourceaswater.

ThroughitsholdingsCepex, NeokemandSNTE,thisbusinessline–whichoperatesonaworldwidescale-providesthemarketwithawiderangeofproductsanddistributionnetworks.

With more than 30 years of experience, Cepex iscurrentlyoneofthelargestEuropeanmanufacturersof valves, plastic accessories and flexible tubes forapplied water conveyance, in addition to sprinklers,diffusers,valvesandirrigationtimersforgreenspaces.This has allowed Cepex, which has vast expertise in

waterconveyance,tosetupitsowninternationaldis-tributionnetworkoperatinginninecountries.Neokemcelebrateditsfirstdecadein2007,consoli-datingitselfasaEuropeanleaderinthemanufactureand marketing of chemicals and devices intendedfor the treatment and disinfection of water. Thecompany covers the whole span of services fromwater disinfection using chlorinated or non-chlorin-ated,liquid,reagentorprocessedproducts,throughtothemanufactureandsaleofequipmentandacces-soriesnecessaryforcorrectwatertreatment.

SNTE specialises in the know-how of domestic andindustrialwatertreatment,rangingfromprocessen-gineering, the design and development of specificsupply water treatment equipment, through to thesaleofequipmentforthetreatmentofdomesticwater.The company also offers water treatment solutionsforaquaculturesystems,whetherforanimalproduc-tion or ornamental purposes, providing a full rangeofaquacultureproductssuchassandfilters,biologi-calfilters,ultravioletsterilisers,etc.

Trace Logistics, Fluidra logistic operator In order to support the two divisions of the group,WATER and POOL, Trace Logistics was founded in2003 with the purpose of streamlining and optimis-ingthedistributionofgoodsandproductsbymeansofautomatedsystems.

ThelogisticsfacilitieslocatedinMaçanetdelaSelva(Girona)haveasurfaceareaof55,000squaremetres.Theyareprovidedwithasilowithastoragecapacityof30,000palletswhicharemovedautomaticallyusingrail dependent retrieval equipment, crate transportsystemswithautomaticbelts,aswellasahigh-speedbox classification system that can prepare up to 14orders at a time. Fluidra’s logistics operator has adeliverycapacityof150,000palletsayear.

| 1 6 | 1 �

Other service companies of the groupFluidrahasitsowngraphicservicescompany.AccentGraphic was founded in 1998 around a group ofvisual communication and software developmentspecialists,tosatisfytheneedsofAstralPool.

Asaresultof itssuccessfulgrowth,andwithaview

to improving its product range for its clients, overthelast7yearsAccentGraphichasdevelopedanewlineofbusinesscoveringtheeditionandprintingoflabelsforthemanufacturingsector.

Pool Supplier is the central purchasing office ofAstralPool.

POOL Division

WATER Division

3.1. Strategic bases (3.5)

3 FLUIDRa GROUPSUSTaINaBILITy MODEL

Fluidraaimstograduallymoveforwardinitscontri-bution to sustainable development, by reinforcingand renewing its commitments and communicationwith stakeholder groups in the various regions inwhichitoperates.

Accessibility, honesty, respect, transparency, prox-imity and a continuing interest in the concerns ofthegroup’svariouspartnersmakeupthecorevaluesof the company. These values set Fluidra apart and

makeitstandoutfromitscompetitorsregardingtherelationship of trust we have built with our clientsandsuppliers,ourshareholders,employeesandwiththe general public, as reflected by the company’smission(4.8):

Our mission is to promote the progress of society through the sustainable use of water in its recrea-tional, domestic and industrial applications.

CLIENTS ShaREhOLDERS PERSONNEL

Ourentireorganisationisorientatedtowardscustomers,offeringsecurity, confidenceandinnovativesolutions.

Weaimtoincreasethevalueofthecompanythroughourcommitmentwithgoodorganisationandmanagementofthecompany.

Weofferanenvironmentofopportunitiesforpeopletodevelopall oftheirhumanandprofessionalpotential.

PROVIDERS SOCIETy ENVIRONMENT

Weaimtoprogresstogetherbuildinglastingrelationsbasedonrespectandmutualbenefit.

Wearecommittedtocontributingtothedevelopmentofourcommunity.

Wearecommittedtopromoteresponsiblewateruseforfuturegenerationsandapplyr igoroussustainabilitycriteria.

ThE VaLUES OF FLUIDRa

Wehavetheaptitudetoadaptourselveswithagilityefficiencyandrigour.

aDaPTaTION INNOVaTIONThroughourenthusiasmandcreativity,wepromoteaninnovationculturetomeetnewchallenges.

Weareinterestedintheconcernsofthosewhotrustus.

aCCESSIBILITy TRaNSPaRENCy

Wearecommittedtovaluesofhonesty,coherenceandrespectinoureverydaypractices.

| 1 � | 1 �

Fluidracarriesoutitsbusinessactivitiesguidedby8strategicaimsthatarebasedonthreedimensionsofsustain-ability:

8 Commitments / Strategic aims

1Commitmenttoethicsandgoodgovernance.Our conduct.

2Commitmenttotheprotectionoftheenvironment.Our environment.

3Commitmenttothedevelopmentofthecommunitieswhereweoperate.Our society.

4Commitmenttothehealth,safetyanddevelopmentofourpersonnel.Our people.

5Commitmenttothequalityofourproductsandservices.Our clients and providers.

6Commitmenttothecreationofvalueandprofitability.Our share-holders.

7Commitmenttoefficiency.Innovation.

8Commitmenttowateranditsre-sponsibleuse.Water defines us.

Environmentaldimension

Socialdimension

Economicdimension

Strategic Social Responsibility Plan

INITIaTIVES COMPLETED

INITIaTIVES UNDERWay

INITIaTIVES TO BE LaUNChED

TOTaL INITIaTIVES

INITIaTIVES CaRRIED OUT

14 19 37 70 33

20% 27% 53% 100% 47%

14

19

37

STRATEGIC INITIATIVES

Initiativescompleted

Initiativesunderway

Initiativestobelaunched

The organisational structure of Fluidra’s CorporateSocial Responsibility comes straight from thegoverning bodies of the group and is structuredthrough a CSR Committee that meets every threemonths to oversee strategic lines and activeprojects.

The coordination of the CSR projects and activitiesderivedfromtheStrategicPlan,whicharecarriedoutbytheappropriateworkgroups,isensuredthroughaCSRCommitteewhichmeetsmonthly.

CSR COMMITTEE(Advises,verifiesandauditstheproposalsmadebytheCSRoperationalcommittee)

CSR OPERaTIONaL COMMITTEE (Planning,coordination,execution,de-

ployment,ownership,resourcedistribu-tion,projectmanagementandmonitoring,

communicationplan)

CSR OPERaTIONaL TEaM

LEaD, GUIDE

aDVISE

DRIVE

EXECUTE, PaRTICIPaTE

SPONSOR aND EXECUTIVE COMMITTEE

(Leadership,strategicmanagement,in-vestmentdecisions,budgetapproval)

GU

aR

aN

TEEI

NG

SU

CCES

S

Organisational structure of our Social Responsibility Policy(4.9)

| 20 | 2 1

STRaTEGIC aIMS POLICy INITIaTIVES aCTION

CommitmenttoethicsandgoodgovernanceOUR CONDUCT

Includingeconomic,environmentalandsocialtargetsinthecompany’sbusinessandorganisationalstrategies.

AllocatingthenecessaryresourcestoimplementtheGroup’sCSRpolicies.

RelevantorganisationalmodificationshavebeenmadetostrengthentheimplementationofCSRpolicies.

CreatingacorporateareathatcentralisesandmanagesCSRresources(economic,materialandhuman),inordertodevelopallcompaniesinthegroupbothlocallyandinternationally.

ACSRdepartmenthasbeencreatedtochannelallinitiativesandpoliciescarriedoutinthisarea.

Includingthecommitmenttosustainabledevelopmentinthecompany’smission,visionandvalues.

Thefocusonourstakeholdergroupshasbeenincludedinthecompany’smission,visionandvalues.

Commitmenttodrawingupacorporatesocialresponsibilityreportonaregularbasis.

Thesustainabilityreportwillbepreparedannually.

Makingapubliccommitmenttotheprinciplesofcorporatesocialresponsibility.

Adheringtoprinciplesofsocialresponsibility(theUNO’sGlobalCompact,ILO,OECDdirectivesformultinationalcompanies).

On16August2007FluidrabecameamemberoftheUNGlobalCompact.

Complyingwithgoodcorporategovernancerecommendations.

DevelopingcompliancewiththeUnifiedCodeofCorporateGovernanceRecommendations.

ThenecessarychangesinFluidra’sBoardofDirectorshavebeenmadetomeettherequirementslaiddownbytheCNMVintermsofcorporategovernance.

Commitmenttothedevelopmentofthecommunitieswhereweoperate OUR SOCIETy

Collaboratingandspeakingwithsocialinstitutionsandorgani-sations.

Sportssponsorships FluidraisanofficialsponsorofFINA.

Charitywork.Fluidracollaborateswithvarioussocialorganisations.

Promotingculture.Fluidracollaborateswithvariousculturalorganisations.

Commitmenttothequalityofourproductsandservices.OUR CLIENTS aND SUPLIERS

Marketingandrespon-siblecommunicationpolicy.

Tostrengthenthemessage“Responsibleuseofwater”.

Campaignshavebeencarriedouttoraiseawarenessoftheresponsibleuseofwater.

Commitmenttothecreationofvalueandprofitability.OUR ShaREhOLDERS

Policyofobservingandcontrollingtheeconomicenvironmentalandsocialaspectsofthecompany,includingmechanismsforcontrollingcompliancewithhumanrightsinothercountrieswhereweoperate

CommitmenttopreparingtheCSRreportonanannualbasis.

ThecommitmenttodevelopdrawingupaCSRreportonanannualbasishasbeenestablished.

Commitmenttothedevelopmentofgoodgovernancepracticesrelatedtobusinessorganisations

Establishingformalchannelsfortheexchangeofinformationandcommunicationwithshareholders,investorsandanalysts.

Relevantchannelsofcommunicationwithshareholdersandinvestorshavebeenestablished,basedontherecommendationslaiddownintheCNMV’sCodeofGoodGovernance.

Establishingthegoverningbodiesandtherelationsbetweenthem,appointments, remunerationpolicy,auditingandexternaldirectors.

AppropriategoverningbodiesandinternalrelationshavebeenestablishedinaccordancewiththeCNMV’sCodeofGoodGovernance.

CommitmenttoWATERanditsresponsibleuseWaTER DEFINES US

Responsibleuseofwater.

Designingproductsthatuselesswaterorreducetheuseofwater(e.g.covers).

Moreefficientwatersavingproductsarebeingsold.

Strategic Initiatives undertaken Current strategic initiatives

STRaTEGIC aIMS POLICy INITIaTIVE aCTION

CommitmenttoethicsandgoodmanagementOUR CONDUCT

Includingeconomic,environmentalandsocialtargetsinthegroup’sbusinessandorganisationalstrategies

ImplementingtheCSRpoliciesdefinedbythecorporationatbothanorganisationalandmanagementlevel.

Athree-yearCSRstrategicplanhasbeendefined,whichplansandlaysoutthedefinitionandintroductionofinitiatives.

Designingatableofkeyindicatorsforthethreedimensions.

Weareintheprocessofdesigningthetableofsustainablemanagementindicators.

Promotinganinternalcultureofcontributiontosustainabledevelopment.

Drawingupacodeofethicsandconduct.In2007,theorganisation’sCodeofConductwasdrawnup,andisduetobepublishedin2008.

Makingapubliccommitmenttotheprinciplesofcorporatesocialresponsibility.

Collaboratingactivelywithorganisationsthatpromotecorporatesocialresponsibilityandnationalandinternationalsustainability,takingpartinconferences,seminarsandotherevents.

AplanforFluidra’sactiveparticipationinthedevelopmentandpromotionofCSRisbeingdrawnup.

Complyingwithgoodcorporategovernancerecommendations.

Incorporatingethics,commitmentandtransparencywithstakeholdergroupsintothecompany’sprinciplesofcorporategovernance

TheFluidraCodeofConducthasageneralscopeandalsoappliestothecompany’sgoverningbodies.

CommitmenttoprotectionoftheenvironmentOUR ENVIRONMENT

Corporatepolicyfortheprotectionoftheenvi-ronment.Fulfilmentofenvironmentalstandards;consumptionofnaturalresourcesandrawma-terials,water,impactonbiodiversity,emissions,waste,recycling,trans-port.

Convertingwasteintoby-products.Re-usingwaste.

ActionsplansarebeingimplementedinallFluidracompanieswiththeaimofrecyclingwaste

Recyclingstationary(paper,toner,cartridges,batteries)

Weareworkingonthestandardisationofofficewastecollection.

Disseminationtoallcompanies,withcorporatecriteria,Extendingthedesignandimplementationofenvironmentalmanagementsystemswithappropriatecertifications(ISO14001/EMAS)toallcompaniesinthegroup.

Fluidra’smanufacturingcompaniesareadaptingtoenvironmentalstandardsinaccordancewiththeirspecificdevelopmentplans.

Researchanddevelopmentintosustainableproductsthathelpsaveenergyandwater.

DefiningR&Dprogrammeswithsustainabilitycriteria.

R+Dlinesaimedatefficientwateruseandsavingsarebeingcreated.

CommitmenttocommunitieswhereweoperateOUR SOCIETy

Collaborationanddialoguewithsocialinstitutionsandorganisations.

Collaborationwithcharities.

In2007Fluidra’ssolidaritypolicywasdeveloped,outliningourco-operationwithcharitableorganisations.Itisduetobepublishedin2008.

Preventingandidentify-ingbribes,corruptionandconflictsofinterest.CodeofConduct.

CodeofConductandcontrolmechanisms.

ACommitteeforthePromotionoftheCodeofEthicshasbeensetupunderFluidra’sCodeofConduct.ItisresponsibleforpromotingcompliancewiththeCode.

Commitmenttothesafety,healthanddevelopmentofouremployeesOUR PEOPLE

Acomprehensivecorporatepolicyofpersonnelmanagementbasedonprinciplesofsocialresponsibility:equality,equalopportunities,healthandsafety,communication,personaldevelopment.

Advancinginthecreationofaninternallyfairandcompetitivepaysystem.Fairpay,salaryscale,socialbenefitsforemployees.

AllHumanResourcesprogrammesarebeingrevisedandadaptedsoastoincreaseequality.

Advancinginthedesignandimplementationofsystemsthatstrengthenthepersonaldevelopmentofemployees.

HumanResourcespoliciesarebeingrevisedandadaptedtoincreaseinternalequalityandexternalcompetitiveness.

Makingprogressinapolicyofconciliatingfamilyandworklife.Programmefortheconciliationoffamilyandworklife:flexibleworkinghours,leaveofabsence,employeeattentionprogramme.

HumanResourceprogrammesarebeingdesignedtoincreaseflexibilityintheworkplace.

CommitmenttothequalityofourproductsandservicesOUR CLIENTS aND SUPLIERS

Policyofmarketingandresponsiblecommunication.

Transmittoallclientsourfirmaimtomoveforwardinthefulfilmentofoureconomic,environmentalandsocialcommitment.

OurcommunicationcampaignsareaimedatFluidra’scommitmenttosustainability.

| 2 2 | 23

STRaTEGIC aIMS POLICy INITIaTIVE aCTION

Commitmenttothecreationofvalueandprofitability OUR ShaREhOLDERS

Policyofobservingandcontrollingtheeconomic,environmentalandsocialaspectsofthecompany,includingmechanismsforcontrollingcompliancewithhumanrightsinothercountrieswhereweoperate.

Mechanismsforcontroll ingcompliancewithhumanrightsinthegroup’sfacil it iesindevelopingcountries.

WeareworkingonincludinghumanrightsclausesincontractualdocumentsinallthecountrieswhereFluidraoperates.

CommitmenttoWATERanditsresponsibleuse WaTER DEFINES US

Responsibleuseofwater.

Savingwater.Wearedesigningawarenesscampaignstostrengthentheresponsibleuseofwaterinternally.

Recyclingwaterinproductionprocesses.

Manufacturingprocessesarebeingreviewedandredesignedtoencouragerecyclingofwaterinproductionprocesses.

Educationintheresponsibleuseofwater.

Developmentofacommunicationpolicyl inkedtotheresponsibleuseofwater.

Weareintheprocessofdesigningawarenessraisingcampaignstostrengthentheresponsibleuseofwaterinternally.

Current strategic initiatives

COMPaNyCaPITaL (€)

NUMBER OF ShaRES

NUMBER OFVOTING RIGhTS

112.629.070,00 112.629.070,00 112.629.070

NaME OF ShaREhOLDER % OF TOTaLVOTING RIGhTS

EDREMS.L 13,500

ANIOLS.L 7,569

DISPURS.L 11,926

BOySERS.L 14,496

BancsabadellInversió Desenvolupament,S.A.

Representedby CarlosVenturaSantamans

9,670

Corporategovernancepracticesarewellestablishedwithin the Fluidra group, and we are aware of theimportance of guaranteeing transparency and effi-ciency in the operation of the company’s top gov-erningbodies.

The Company Corporate Governance model is fullylaid down in the annual Corporate Governance Re-port, drawn up in accordance with Circular 4/2007of the National Market Values Commission (CNMV)which modifies the annual Corporate GovernanceReport requirements for public limited companies.Thisinformationisavailableonthecompany’sweb-siteandpublishedontheCNMV’swebsiteunder“rel-evantfacts”.

The aspects described below are those elements ofFluidra’s Corporate Governance model that contrib-uteto improvingtheCompany’sgovernance,basedon the recommendations outlined both in the Glo-balReportingInitiative(GRI)andintheUnifiedCodeofGoodGovernanceapprovedbytheCounciloftheCNMVon22May2006(theUnifiedCode).

TheGovernancePolicyofFluidraissetoutinitsAr-ticlesofAssociation,intheRegulationsoftheBoardofDirectorsandGeneralMeeting,andintheInternalCodeofConduct.

3.2. Corporate management

FluidraS.A.isapubliclimitedcompany,whosecapi-talasof31December2007wasasfollows:

Themainsignificantshareholders,with%ofvotingrightsareasfollows:

Ownership structure(2.6,4.1)

| 2 � | 2 �

NaME POST TyPE

D.EloiPlanesCorts Chair ExecutiveDirector

D.OscarSerraDuffo Member DominicalDirector

D.Bernardo CorberaSerra

Member DominicalDirector

BancSabadellInver-sióDesenvolupa-ment,S.A.U.

MemberDominicalDirector

D.juanIgnacio Acha-Orbea Echevarría

MemberIndependentDirector

D.Bernat GarrigósCastro

SecretaryNon-mem-ber

DominicalDirector

Theboardismadeupofthefollowingcommittees:

Executive or Delegate Committee

NaME POST TyPE

D.Richardj.Cathcart ChairIndependentDirector

D.BernatGarrigósCastro MemberDominicalDirector

D.KamSonLeong MemberIndependentAdviser

Pay and appointments Committee

NaME POST TyPE

D.juanIgnacio Acha-Orbea Echevarría

ChairIndependentDirector

BancSabadellInversióDesenvolupament,S.A.U.

MemberDominicalDirector

D.joanPlanesVila MemberDominicalDirector

audit Committee

The Pay and Appointments Committee is respon-sible for supervising and determining the relationbetween pay and performance as well as for guar-anteeing the maximum capacity and experience ofits members, avoiding any conflict of interest in itsactivities(4.5,4.6,4.7).

AlthoughatthetimeofwritingthisreporttherewasnopositionregardingthevariablepayconditionsforFluidra’sadvisers,weareworkingonasystemtointe-gratevariabletargetsforfuturepay(4.5).

Wearecurrentlydesigningthechannelswhichwillal-lowustopassonrecommendationsandindicationstoourshareholdersandseniormanagementteam(4.4).

The term “Dominical Director” refers to those whoare on the Board as shareholders or representativesof substantial shareholders with the capacity, eitherbythemselvesorthroughagreementswithothers,toinfluencecontroloverthecompany.

The term“IndependentDirector” refers to thosewhoarecalledtoformpartoftheBoardofDirectorsduetotheir high professional qualifications, independentlyofwhethertheyareshareholdersornot.

NaME OR COMPaNy NaME OF MEMBER REPRESENTaTIVE POSITION ON

ThE BOaRD DaTE OF aPPOINTMENT

D.joanPlanesVila D.joanPlanesVila CEO 15.9.07

D.EloiPlanesCorts D.EloiPlanesCorts DelegateAdviser 15.9.07

D.BernatGarrigósCastro D.BernatGarrigósCastro ViceSecretary 15.9.07

D.OscarSerraDuffo D.OscarSerraDuffo BoardMember 15.9.07

D.BernardoCorberaSerraD.BernardoCorberaSerra

BoardMember 15.9.07

BancSabadellInversió Desenvolupament,SA

D.CarlesVenturaSantamans BoardMember 15.9.07

D.Richardj.Cathcart D.Richardj.Cathcart BoardMember 15.9.07

D.KamSonLeong D.KamSonLeong BoardMember 15.9.07

D.juanIgnacioAcha-OrbeaEchevarría

D.juanIgnacioAcha-OrbeaEchevarría

BoardMember 15.9.07

Governance structure of the organisation

Structure of the Fluidra Board of administration and position of membersTheboardofadministrationisformedby9members,asdetailedbelow:

Mr Eloi Planes is the Chief Executive Officer of the

Company:Messrs.joanPlanes(4.2),BernatGarrigós,

Oscar Serra, Bernardo Corbera and BancSabadell In-

versió Desenvolupament S.A. represented by Carlos

Ventura Santamans are external directors; Messrs.

Richard j. Cathcart, Kam Son Leong and juan Igna-

cioAcha-OrbeaEchevarríaareindependentexternal

directors.(4.3)

In accordance with the specifications of recommen-

dation8oftheUnifiedCode,theBoardreservesthe

right to approve the following policies and general

strategiesofthecompany:

•Investmentandfinancepolicy

•Definitionandstructureofthegroupofcompanies

•Corporatemanagementpolicy

•Corporatesocialresponsibilitypolicy

• Strategic or business plan, as well as management

objectivesandannualbudgets.

• Pay and performance evaluation policy for senior

management

• Risk management policy as well as the periodical

reviewofinternalreportingandcontrolsystems

• Dividend policy and controlling portfolio, and, in

particular,itslimits.

| 26 | 2�

The most relevant associations to which Fluidra be-longsarelistedbelow(4.12,4.13):

• aCECMa, Catalan association for engineering and envi-

ronmentalconsultants

• aECOC

• aEDyR, Spanish association for desalination and recy-

cling.

• aFNOR,Frenchstandardisationassociation

• aFRE,theSpanishsprinklermanufacturersassociation.

• agragex

• aWWa,AmericanWaterWorksAssociation

• anaip

• aPEMETa,Portugueseassociationofenvironmental

technologycompanies.

• aPP,Portugueseassociationofswimmingpool

professionals.

• aqua España

• aseTUb

• aSOFaP, the association of equipment manufacturers,

chemical products and swimming pool constructors. The

managingdirectoroftheNeokemgroupisthepresidentof

this association, which takes an active part in committees

andprojects.

• associazione dei Costruttori di piscina(Italy)

• asociación Industrial Plástica de Catalunya

• aTEP,theSpanishassociationofswimmingpool

manufacturersandtechniciansandsportsinstallations.

• Barcelona Chamber of Commerce

• Spanish Plastics Centre

• Club Emas,associationofregisteredEMASorganisations

ofCatalonia.

• CECOT,multisectorsmallbusinessorganisationof

Catalonia.

• CODIPOR,Portuguese identificationandcodificationor-

ganisation

• Construdatos

• ECOEMBES

• EPa (US Environment Protection agency) to present

the information necessary for the sale of trichloroiso-

cyanuric acid in the USa.

• Euro Chlor(Europe)

• European Chemistral Industry Council

• EPDa,EuropeanPlasticsDistributorsAssociation

• FaPS,FederationofAssociationsofequipment

manufacturersandconstructorsofswimmingpools,

saunasandspas.

• Federació Catalana de Natació (CatalanSwimming

Federation)

• FEDEQUIM,catalanBusinessfederationforthechemical

sector

• FEQPa

• Fluidex

• FPP,Federationofswimmingpoolprofessionals(Paris)

• Foro Ibérico PVC

• Forum Carlemany

• IaPD,InternationalAssociationofPlastic Distributors

• Ia,IrrigationAssociation

• PIMEC-SEFES

• SERIDEC

• SIEP-EPP,Frenchorganisation.

ChEMICaL SECTOR aSSOCIaTIONS

• BDP(Europeanbiocidelaw)

With headquarters in Brussels, this commission belong-

ingtoEurochlorspecialisesinthecontrolofbiocideregu-

lationsinEurope.

• Euroclor(Europe,basedinBrussels,Belgium)

• European Chemicals

• Fedequim(Catalunya)

• Fepqa(Aragón)

Fluidraalsocollaborateswithsecondaryschoolsanduniversities,offeringworkplacementstostudentsasisthecaseofCepex.Also,anumberofcompanies inthe group assists with the social insertion of peopleat risk of exclusion in companies that employ peo-plewithspecialneeds,suchasMANSOL,Manufactu-ras Solidarias Badalona, TAC Osona Asociación SantTomàs,Centred’Inciativesperalainserció(Generali-tatdeCatalunya),CentrePenitenciariQuatreCamins,ElsTresTurosFoundation, theEXIT foundation,AFIMFoundation(afoundationthathelps,trainsandinte-gratesdisabledpeople),MAPFoundationandthepri-vateFoundationS.A.G.

Risk Control Systems(4.9,4.11)In 2007 none of the risks (operative, technological,financial,legal,reputation,fiscaletc.)which affect the company or the group have oc-curred.Despitethis,in2008wewillcontinuetoworkonthedevelopmentofaRiskPlanandthedefinitionofsystemstocontrol them,aswellasontheestab-lishment of acceptable risk levels and measures tominimisethemshouldtheyoccur.

Degree of control of corporate management rec-ommendations The degree of control by Fluidra of the recommen-dations set out in the Unified Code is very high. Inthose cases where the company does not complyor complies only partly with the recommendations,plans have been established to achieve full compli-anceinthefuture.Forfurtherdetailsofthedegreeofcompliancewitheach of the recommendations, we recommend thatyou consult the Annual Corporate Governance Re-port available on Fluidra’s website (www.fluidra.com)(4.10).

3.3. Commitment to external initiatives

In all its companies Fluidra has adopted internal andintegratedsystemsofmanagementwhichincludepre-cautionpolicies(4.11)andthepreventionofworkandindustrial risk through the publication of processes,proceduresandinstructionsfortheircontrol.Some examples which clearly illustrate these initia-tivescanbefoundinwatertreatmentcompanies,asisthecaseofInquide,apartoftheNeokemholdingthatspecialises in chemical products. Inquide has imple-mentedaseriesofprocesses,procedures, instructionsand indicators for work and industrial risk control. In2007, action plans were developed to minimise theserisks through target setting and improvements in theareas of quality, security and environment. The Fac-tory Manager has been given responsibility for safetyinthepreventionofworkhazardsandindustrialsafety,carrying out internal and external controls according

to the safety control calendar. Based on the changesmentioned above, a process has been established foradaptingtochanges,bearinginmindallrelevantqual-ity,safetyandenvironmentrequirementsinrelationtotheplanningoftheactivitiesandprocessescarriedoutbyInquide.

Fluidra’sholdingsaredevelopingsaferalternativesandareoptingforcautiousdevelopmentasfarasnewtech-nologies and processes are concerned, to avoid longtermdamage,andtheycomplywiththerelevantregu-lationstoguaranteeanadequatestandardoflivingforfuturegenerations.AtthesametimetheGroupcarriesoutevaluationsoftheenvironmentalimpactthatitsac-tivitiesmaycausefromatechnicalandscientificpointofview.Fluidraiscommittedtothesocietiesandcom-munitieswherever ithascommercialand/ormanufac-turingcentres.Forthisreason,Fluidraanditsholdingsbelongtomanybusinessandrelatedassociations.ThetotalamountofdonationsbyFluidraforsocialactivitiesis€151,554(EC1).

The Board of Directors:

From left to right and from top to bottom: Carlos Ventura,

Alberto Collado, Bernardo Corbera, Joan Planes, Eloi Planes,

Oscar Sierra, Juan Ignacio Acha-Orbea, Bernat Garrigós, Ri-

chard Cathcart, Kam Son Leong

| 2� | 2 �

ments, expectations and degree of satisfaction ofourclients,inordertoestablishplansforcontinuedimprovement.•To listen to our clients and respond to their com-plaintsandsuggestions.•Tosupportinnovationandtechnologyinthedevel-opmentofourproductsandservices.•Toguaranteeaflexibleservicethroughanefficientdistribution structure, with easy access for our cli-ents.• To respect our clients’ confidentiality and protecttheirfinancialandpersonalinformation•Tohonourallourcommitments,communicateandimmediatelycorrectanyerrors.•Tostrengthenproductsandservicesofasocialna-ture.

SuppliersFluidra wishes to establish mutually satisfactorypartnerships,basedonrespectandmutualbenefit.The internal structure – manufacturing companiesanddistributioncompanies–andautonomousman-agement capacity given to the different companiesthatmakeupFluidrahavegeneratedaninternalsup-plier/customer culture based on dialogue, respect,mutual benefit and collaboration, extending thisculturetoincluderelationswithexternalsuppliers.

Based on these principles of management and re-lations, Fluidra has set up channels of communica-tionanddialoguewithitssuppliers,fullyawarethatboth the customer’s and end user’s satisfaction de-pendsultimatelyonthequalityofthedeliveryproc-ess. Most members of the Fluidra group, which areincluded in this policy, have put in place a supplierassessment protocol to guarantee objective com-petition and transparency in the selection of theirbusinesspartners.Theseprocessesareconsolidatedthrough the momentum generated by certificationwith international standards, and internally devel-opedmanagementsystems.

TheprincipleswhichgovernFluidra’spolicywithitssuppliersarelistedbelow:• To develop a purchasing policy that guaranteestransparency, efficiency, equal opportunities, opti-misedqualityandprices,thevalueofthecompany’sreputationandcompliancewithsuppliercontracts.•To laydownethicalprinciplesandgoverningbod-

ies regulations, and regulate the relations betweenemployees,governingbodiesandsuppliers.•Thechoiceofkeysuppliersthroughclearandhon-estprocessesbasedonthequality-priceratio.•Activedatabasesthatshowthedifferentpurchasingoptionsforeachproductandallowabetterchoice.• Meetings every semester/year with our main sup-pliers to review the year, incidents, improvementpossibilitiesandcollaboration.•Training courses given by suppliers directly to thetechnicaland/orcommercialteamtocreateabetterunderstanding of the product, its applications, itsset-upandsolutionstoqueries/incidents.

Shareholders and capital providersFluidra’s objective is to increase the value of thecompanythroughourcommitmenttogoodgovern-ance, and through establishing profitability targetsin the business process with the aim of achievingthem. Fluidra bases its relations with its sharehold-ersonprinciplesofgoodgovernancewiththreefun-damental criteria: ethical behaviour, participationand transparency. Given the shareholder structureofthegroup,formalchannelsofcommunicationaredirect as the major shareholders are represented inthe different management structures of Fluidra. In-formation of interest for shareholders is providedthroughtheannualeconomicreport.Thisrepresentsthe principal means of corporate information as itprovides the main economic and financial aspects,as well as governance and corporate control infor-mation.Since2006theCSRReportisalsoincludedinthereportbecauseofitsinterestforshareholders.

General public and local communitiesFluidraiscommittedtocontributingmutuallytothedevelopment of our communities. The relationshipwith the community is an opportunity to show thesolidarity of the group with its surroundings, andto contribute to a more sustainable developmentthrough Fluidra’s contribution to a more balancedand fair society. The quality of a company is meas-ured,apartfromitslevelofprofit,byitsabilitytoac-tivelyparticipateandreflectitsvaluesinthesocietyofwhichitispart.

As well as keeping contacts and channels of dia-logueopenwiththegeneralpublicandinstitutionsso as to minimise the impact of its activity (SO1),therearemanyinitiativesandlinkswithinstitutionsandorganisations,includingsocialactionprojectsin

The stakeholder groups identified by Fluidra weredefined in the company’s mission, vision and val-uesthroughaprocessofreflectionanddefinitioninwhichtheseniormanagementofFluidratookanac-tivepart.

Fluidra strives to meet the expectations of all itsstakeholders by addressing their concerns and ini-tiativesandbyworkingtogetherwitheachofthem.

Ourdutyistostrengthenourrelationshipwithstake-holders,takingtheirexpectationsandrequirementsintoaccount.Toachievethis,theCSRStrategicPlanprovidesforastudythatwillhelpustoidentifyandestablish the most efficient relationship with them(4.16).Withrespecttocommitmentprocessesandcommu-nication with stakeholder groups and the approachadopted to include them in the period covered bythereport,wewouldliketopointoutthefollowing(4.14):

EmployeesFluidra and all its holdings offer their employees avarietyofopportunitiestodeveloptheirhumanandprofessionalpotential,aswellasmanyinitiativestomaintaintheirmotivation.Clear examples of these are training programmes,sporting and leisure activities, sensitivity regardinghealthmatters,thepromotionofjobsecurity,intro-ducing new people into the staff, and informationbulletinswithnewsaboutthecompany.

TheguidelinesgoverningourpolicywithemployeesinallofFluidra’sholdingsarelistedbelow:• To undertake a selection policy governed by theprinciples of transparency, equal opportunities,meritandability.•Toguaranteeprofessionaldevelopmentofemploy-ees and the introduction of a training plan with adoubledimension,bothhumanandtechnical.•Toestablishequitable,competitiveandflexiblepaysystems.•Tomaintainrelationswithtradeunionrepresenta-tivesbasedoncooperationandinformation.•Toadoptpreventativemeasuresaimedatprevent-

ingaccidents intheworkplaceandatensuringthattheworkingconditionsaresuitableforthefunctionstobecarriedout.• To implement an internal communication policythatpromotescorporatevalues.• To establish the appropriate channels to enablethe voluntary participation of employees in the im-provementofthecompanies’activity.

ClientsFluidraorientsitsentireorganisationtowardsitscli-ents,offeringthemsecurity,confidenceandinnova-tive solutions which fulfil their needs and expecta-tions. This involves a greater technical complexityand, as a result, more investment in technical serv-ices,internaltrainingresourcesandinitiativesintheareas of direct marketing, advertising, sponsorshipandpublicrelations.

WehavealsodesignedanincidenttreatmentsystemcalledPQP(ProductQualityProject),whichvertical-lyintegratesproduction,distributionandafter-salesservices.Atthesametime,themanagementsystemsof most of our companies include processes for theevaluationofcustomersatisfaction.

The bases that govern Fluidra’s customer serviceplanarelistedbelow:•To inform clearly, precisely and honestly about allproductsandservices.•Tocarryouthonestandselectiveadvertising.• To offer a quality service, identifying the require-

3.4. Participationof Stakeholder Groups (4.15)

| 30 | 3 1

partnership with private and public associations orinstitutions; sports sponsorship; collaboration withinstitutions to facilitate the insertion of groups atriskofexclusionintheworkplace;co-operationwithdifferent foundations; sponsoring popular celebra-tionsandother localevents;promotingcultureandthe refurbishment of works of public interest; pa-tronageandsupporttokeyinstitutionsintheworldof music; collaboration with educational centres;participation of several directors in the governingbodiesofdifferent institutions;andparticipation inconferences, as well as plans for pilot investigationplants in collaboration with business organisationswiththeaimofpromotingrecyclingactivitiesintheindustrialsector.

In order to contribute to the economic, social andenvironmentaldevelopmentofthegroupontheba-sis of efficient management, Fluidra works with thefollowingobjectives:• Meeting the changing needs and demands of so-ciety.• Managing investments in a professional manner,bearinginmindthepromotionofemployment,sup-porttothesocialeconomy,andpromotionofentre-preneurialactivity.• Preparing budgets that aim to strike a balance intermsofterritory,financeandsocialprofitability.

As far as the identification and selection of stake-holder groups is concerned, Fluidra considers astakeholdertobeanygroupthathasaninfluenceinany area of the organisation.The identification andselectionofthesegroupsiscarriedoutaccordingtotherequirementslaiddownbytheinternationalreg-ulationsfortheintroductionofgovernancesystemsand according to the needs detected in each com-pany.Allofthisiscarriedoutonthebasisofspecificquality,serviceandsecuritycriteria.

TheintroductionoftheISO9001:2000standardcon-sidersclientstobestakeholdersasfarasthesatisfac-tionofqualityandserviceisconcerned,andsuppli-ersarestakeholders inso farasanagreementmustbe reached with them regarding the requirementsthatguaranteethequalityoftheproductsacquired.

The introduction of the ISO 14001:2004 standardtakes into consideration, in addition to the above-mentionedgroups,thegovernmentauthoritieswithrespecttocompliancewithapplicablelegalrequire-

ments, the preservation of the environment andbothinternalandexternalpersonnel(visits,tempo-raryworkers,employees,subcontractors,tradesmen,etc.)inmattersofhealthandsafety.

There are different relation procedures for each in-dividual stakeholder group: labour agreements andcommunication and participation channels for em-ployees; quality management systems and incidentanalysis, complaints, surveys, etc. with clients, andvarious communication channels with governmentauthoritiesandinstitutions.

The main concerns and interests (4.17) shared withboth suppliers and clients have been identified byFluidra as being the joint search for improvement

inquality,service,economicprofitandtheenviron-ment. With regard to our employees we have im-provedintheawarenessandjointefforttomaintainandimprovetheworkingconditionsandrespectfortheenvironmentineveryactivitycarriedoutaspartofthegroup’sbusinessprocesses

4 DIMENSION aND ECONOMIC INDICaTORS

aSSETS aLLOCaTED TO ENVIRONMENTaL

IMPROVEMENTS

Thousands of euros

Cost 07

Cost 06

Inv. year

Waste treatment 4.150 612 3.538

Energy saving 13 13 0

Reduction emissions 519 483 36

Reduction pollution 514 514 0

Other 6 6 0

Total 5.202 1.628 3.574

OPERaTIVE INVESTMENTS 2007 2006

Land & buildings 2.547 1.495

Technical installations and machinery 7.454 5.681

Other installations, equip-ment and furnishings utillaje y mobiliario

7.532 8.061

Other tied up investments or tied up in progress 5.692 6.274

Total (in thousands of euros) 23.225 21.511

EXPENSES INCURRED IN IMPROVING aND PROTECTING ThE

ENVIRONMENT

Euros

Cost 07 Cost 06 Increase in expenses

External services 218.383 81.000 169,61%

Protection environment 194.134 109.000 78,10%

Ordinary expenses 31.778 6.000 429,64%

Total 444.296 196.000 126,68%

4.1. Management approach (EC.a)

Fluidra believes in growth, both through the increaseof its own sales and through the acquisition of othercompanies in thesector.Aspartof thispolicy, in2007thegroupmadeaseriesofacquisitions inthemarketsandsectorsinwhichitoperates.IntheWaterdivision,itstrengtheneditspositioninthesouthofEuropethroughtheacquisitionof Irrigaronne(France),amarket leaderinthesaleofsprinklersystems,andMasterriego(Spain),adistributorforleadingbrandsintheirrigationsector.As far as water treatment is concerned, the group ac-quiredATH(Spain),oneofthebestknowncompaniesinthesectorinSpain.

In the Pool division, it acquired Pacific Industrie. Thiscompany specialises in the manufacture and sale ofsaline and chlorination systems for private swimmingpoolsandhasafootholdintheFrenchmarket,aswell

as a worldwide network of representatives. With thisacquisitionFluidramanagedtobolsteritspositionasaglobalsupplierofsolutionsbasedonsalineelectrolysis.

On the 31st October 2007, Fluidra was floated on theSpanish Stock Exchanges of Madrid, Barcelona, Bilbaoand Valencia, and was also included in the SpanishStock-Exchange Interconnection System (continuousmarket).

Fluidraactivelysupportstheimprovementofmanufac-turing processes by investing every year in sustainedproduction. In 2007 the following investments weremadetoimproveourmanufacturingprocesses(EC8,EN30):

(Allfinancialdatafrom2006areproformadata)

| 3 2 | 3 3

4.2. Key figures and economic per-formance indicators (2.8,EC1,EC.b,EC.c,EC.d)

ClientsFluidraofferssolutionstoprofessionals(distributors,installers,constructors,etc.).Morethan25,000pro-fessionalsintheworlduseourproductstoconstructswimming pools. Furthermore, Fluidra provides allkinds of services, from decalcification to improvethe quality of drinking water in private homes anddomestic water recycling, through to water con-veyance applications for agricultural and gardenirrigation, water supply and industrial applications,etc. We also carry out the process engineeringnecessary to recycle the waste water of a manufac-turingcompany.

The main profit and loss figures all show a cleargrowthtrend.

In2007Fluidrarecordedaturnoverof657.2millioneuros,25.9%morethanthepreviousyear,generatingan EBITDA (Earnings Before Interest, Tax, Deprecia-tion and Amortisation) of 94.6 million euros and anafter-tax profit of 34.7 million euros. This effort inoperative investment has been sustained to meetthe company’s production needs and improve itsmanufacturingplantsandbranchnetwork.

The Pool division registered sales of 523 millioneurosand71.4millioneurosinEBITDA,whichmeansan increase of 15.7% and 16.1%, respectively, overthepreviousyear.

The Water division recorded sales of 193.3 millioneuros and 23.3 million euros in EBITDA with anincrease of 75.2% and 75.6% respectively withrespect to the previous year, due to the additionof the full 12-month period compared to only ninemonthsin2006.

Fluidra’sconsolidatedsalesfiguresareasfollows:

Themanagement,controlandmonitoringofoureco-nomic performance is carried out by the Company’svarious management bodies (Budget Committee,Holding Monitoring Committee, Executive Commit-tee),aswellasbytheManagementCommitteeofeachindividualHolding.

For the first time, a calculation of the CO2 emissionsgenerated by the company’s direct activity has beenincluded in the report (seepage57).Thisprovidesuswith a basis from which we will be able to calculatethe financial consequences and risks that the climatechange could cause to our business in the future(EC2).

*AllfiguresinthistablehavebeencalculatedaccordingtoIFRSrequirements(InternationalFinancialReportingStandards).

NET SaLES 2007 2006

POOL 523 452

WaTER 193 148

Mercantile Total* 657 546

Real increase in sales 20%

*ConsolidatedFluidraGroupfigure

PrOfIT ANd lOSS ACCOuNT

31/12/2007 31/12/2006

OPERaTING INCOME

Sale of goods and finished products 657,20 546,18

Income from services rendered 17,02 9,46

Other income 4,64 3,41

Total operating income 678,86 559,05

OPERaTING EXPENSES

Changes in inventories of finished products work in progress and raw materials consumed (332,10) ( 268,62)

Personnel expenses (123,59) ( 105,04)

amortisation and depreciation costs (31,50) ( 26,27)

Other operating expenses (124,01) ( 103,08)

Other expenses (6,32) ( 2,77)

Total operating expenses ( 617,52 ) ( 505,77 )

Operating profit 61,34 53,27

FINaNCIaL EXPENSES/ INCOME

Financial income 2,98 2,29

Financial expenses (15,15) ( 11,36)

Exchange losses (0,79) ( 1,18)

NET financial results ( 12,96 ) ( 10,25 )

Share in profits/ (losses) for the year of companies accounted for using the equity method 0,12 0,01

Profit before tax 48,51 43,01

Income tax expense (13,78) (12,18)

Profit after tax 34,73 30,84

Result attributed to minority interests (2,14) (1,15)

Profit attributable to equity holders of the parent company 32,59 29,69

EBITDa 94,65 79,89

| 3 � | 3 �

Fluidra’s strategic plan for future development is basedon increasing its presence in Asia and other countriesaroundtheworld.

As for its world distribution networks, Fluidra operatestheAstralPoolnetworkwithmorethan152officesin30countries, which offer global swimming pool solutionsthrough their various business units (Skypool, PublicPool,PrivatePool,Wellness,AirConditioning).Addition-ally, the second distribution network in the swimmingpoolsectorisalsodirectlyorindirectlypresentinworldmarkets through the Certikin brand. The distributionnetwork for chemical products, water treatment andwater conveyance add to our international presence inthewaterindustry.

Given that the scope of the current report is limited toSpain, ithasnotbeendeemedrelevant toconsider theanalysis of cost by geographic region. This informationwillbeincludedinthereportasitsscopeisincreased.

SuppliersThe purchases of raw materials and other supplies

by Fluidra reached 268 million euros in 2006 and 332million in 2007. Although Fluidra’s strategy is always tosupplement distribution with sales, most of the group’spurchases are raw materials and auxiliary materials.Wealso sell products manufactured by other companies intheswimmingpooland/orwatersectors.Thisallowsustoofferacompletecatalogueandmakesthewatersectormore dynamic, with the presence of many operatorswhethertheyaremanufacturersand/ordistributors.

Geographically, our suppliers are located all over theworldinAsia,USA,EuropeorSpain,andwevaluetheirlo-cationasoneofthemostimportantfactorswhenmakingdecisions concerning the establishment of partnerships(EC6).Asfarasservicesareconcerned,thisalsoprovidesuswithageographicalbalanceasweoperateonaworld-widescale.

Moreover, one of the keys to the relationship of trustwhich Fluidra has built with its suppliers is that it livesup to the agreements it reaches. Fluidra aims to buildlastingrelationshipswith itssuppliersbasedonrespectandmutualbenefit.

The EBITDA figure as defined in the Fluidra AnnualConsolidated Accounts is calculated in the followingmanner:saleofgoodsandfinishedproducts+incomefrom services rendered - Stock variation of finishedproductsandinprogressandprovisionofrawmaterials–personnelcosts–otheroperatingcosts+Participa-tioninprofitsfortheyearofcompaniesaccountedfor

usingtheequitymethod.

The geographic distribution of sales is basically con-centratedinEurope,eventhoughtheCentralNorthernEuropean (CNEEurope)area isbecoming increasinglyimportant.

SAlES By rEGION

Geographic distribution of sales2007 2006

Incr 07/06 %M Euro M Euro

Fluidra 657 546 20%

Spain 227 198 15%

Southern Europe-Rest of Europe 209 168 24%

Northern and Western Europe 97 83 17%

Eastern Europe 30 21 39%

asia and australia 60 44 36%

Rest of World 35 32 10%

*Note:All f iguresinthistablehavebeencalculatedaccordingtoIFRSrequirements

(InternationalFinancialReportingStandards)

EmployeesFluidra’s personnel expenses reached 105 million eurosin2006and124millionin2007.TheaveragenumberofpeopleemployedbytheGroup increasedfrom3,269 in2006to3,748in2007.

Fluidrahasapolicyoflocalrecruitmentineachcountryorregionwhereitoperates,bothformanagementposi-tionsandfortherestoftheemployeesthatformpartofthecompany,promotingstrongertieswiththelocalcom-munityinoursphereofoperations(EC7).ItisalsoworthpointingoutthattheminimumwagefornewemployeesrecruitedbyFluidrainSpainis91.5%higherthanthestat-utoryminimumwage(EC5).

AtpresentFluidradoesnothaveanypensionplancom-mitmentsaspartofitssocialprogramme(EC3).

Capital ProvidersFluidra’s totalequity reached302millioneuros in2007,whilethenetdebtwas195million.Thenetcashflowgen-eratedbyFluidrain2007was66millionwithinvestmentsof23millioneuros.

Fluidra’s dividend policy is to maintain a constant divi-dend as a percentage of the profits generated by thecompaniesthatmakeupthegroup.OnApril12th2007,dividendsof11millioneuroswerepaidout.

In 2007, the financial costs incurred totalled 15 millioneuros,i.e.a33%increaseonthepreviousyear,duetothefinancing of acquisitions in 2007 and the inclusion of afull financial year for the WATER division, compared toonlyninemonthsin2006(2.8)

Public sectorThemostsignificanttaxespaidbythecompanies inthegroupareshownbelow:

Itisworthmentioningthatthesepaymentsarespreadout geographically between the different regionswhereFluidraispresent,althoughtheyaremostlypaidinSpain.

During 2007, the group received non-repayablefinancialaidfromCIDEM,theCentreforinnovationandbusinessdevelopment,andtheMinistryforEducationand Science, for programmes related to the researchand development of new products. Non-repayablefunds and loans at preferential interest rates grantedby COPCA, from the Generalitat de Catalunya, havebeenused toassist inpromotingexportsofproductsand operations at an international level. A total of9.625thousandEurosweregiventothegroupin2007,as annually repayable loans. The group also receivedcapitalloansfromCDTIandICOforindustrialprojects(EC4) totalling 48,000 Euros. As far as training isconcerned,wehavereceivedgrantsfromFORCEMforatotalof67,737.12Euros.

Fluidra’s support to social, cultural, sporting, educa-tional and humanitarian development meant it tookpart in sponsorships, patronage and donations tosocialorganisations.

As far as the indirect economic impact is concerned,Fluidraisawareofitsimportancebutitwasnotconsid-eredrelevantforthisreporttocarryoutanexhaustiveanalysisoftheextentandindirectimpactofitsopera-tions(EC9).

PUBLIC SECTOR TaXES2007 2006

M Euro M Euro

Corporation tax 14 13

Other taxes 4 3

OWN FUNDS, NET DEBT & CaSh FLOW

2007 2006

M Euro M Euro

Own funds 309 271

Net debt 195 167

CaSh FLOW 66 57

| 36 | 3�

5 EMPLOyMENT aND WORK INDICaTORS

5.1. Management approach, commitmentto the human team (LA.a,LA.c)

jobsecurity,thepromotionandcreationofnewpro-fessional opportunities, as well as concern for peo-ple’s health and safety are the main characteristicsofFluidra’sbusinessculture.

Fluidraaimsto findaperfectbalancebetweennewcorporatepoliciesforthegroupandadegreeofau-tonomy for each of its companies, so that they candeal with their human resources according to eachcompany’s needs. This is the principle that lies be-hind the group guidelines developed by Fluidra’shumanresourcesdepartment,withthepoliciesthateachholdingfirmandcompanyhaveimplemented.

Through its employment policy, Fluidra guaranteescompliancewithcurrentlabourregulationsinallar-eas in which it operates, and promotes good work-ing practice through training and information. Ourmanagementstyle isdirect,closeandparticipative.Health and safety at work and equal opportunitiesforallwithintheorganisationformanessentialpartof Fluidra’s culture, and a target for constant im-provement.

Thehumanresourcemanagersandstaffareresponsibleforguaranteeingcompliancewithregulations,correctwork practice and work ethics. In 2007 an executivecommittee for Human Resources was created, whichismadeupofseveralmembersoftheexecutivecom-mitteeandFluidra’sHumanResourcesdirector,whosemissionistosetupandprioritisethestrategicactionsrelatedtothemanagementofhumanresources.Thereisalsoaworkingcommitteeforhumanresourcesmadeupofhumanresourcesmanagersfromallareasofourbusiness, whose function consists of introducing es-tablished projects and policies as well as developinginternalsynergiesandexchangeofknowledgeandex-perience.Ourhumanresourcesmanagersaresensitive

totheneedsandrequirementsofbothtopandmiddlemanagement(LA.d).

Thehumanresourcesexecutiveandoperationalcom-mittees have an annual agenda for formal meetingswhichareheldapproximatelyeverymonthandahalf.Nevertheless,theoperationalcommitteeispermanen-tlyincontactwithday-to-dayneedsandthroughextrameetings where specific projects require them. Also,themembersofthiscommitteeshareanexclusive in-tranetwheretheycanaccess informationrelevant fortheday-to-dayrunningofthecompany,suchasvacan-ciesineachholding,relevantpolicies,proceduresanddocumentation, up to date organisation charts, wageagreements,currentlegislationandpointsofinterest,inaddition toavirtual forumwhere theycanexpressdoubts,questionsorcomments(LA.f ).

In 2007 we made progress with the introduction ofintegralhumanresourcesoftwareforthecompaniesinthegroup,therebyconsolidatingthatcarriedoutin2006inAstralPoolSpain,AstralPoolGroup,AstralExport, Pool Supplier and Accent Graphic, and ini-tiating the project in Neokem and SNTE and all thecompanies that form these holdings, with the aimofhavingthesoftwareupandrunningby2008.Thissoftware will allow us to streamline administrativeprocedures, optimise the collection of performanceindicators,makeprogressintheintroductionofglo-balhumanresourcespolicies,andtointegrallyman-age the human capital that will form our group inthefuture.

InFluidraweconsider trainingandeducationtobea strategic element which allows us to strengthenpeople’s technical, professional and competitivedevelopment,aswellas thecompetitivenessofourcompanies.

5

| 3�

AVERAGE STAFF 2007 PER BUSINESS DIVISION

Water

Pool

Otras

AVERAGE STAFF 2007 PER HOLDING

AstralPool

AuricPool

EuropeanCorner

Swimco

Cepex

NeokemGrup

Snte

Others

5%70%

25%5%

5%6%

14%

2%5%

27%

36%

INTERNATIONAL STAFF

SouthernEurope

Central/NorthernEurope

EasternEurope

AsiaandAustralia

RestofWorld

Spain

59%

16% 6% 3%

11%

5%

There are specific training plans adapted to the char-acteristics of each of our companies, which allow usto respond better to the needs of our staff accordingto their function and activity, as well as policies andprocedures which set out the bases and criteria forequalopportunitiesallowingallemployeestoreceivetrainingwhichguaranteestheirdevelopmentandthecorrect performance of their job.The group’s integra-tionandwelcomepolicyprovidesforaperiodofinitialtrainingbasedontheprofileoftheemployeeandtheirfunctionswithintheorganisation(LA.e).

Goals and performance (LA.b)As far as the future goals of the group are concerned,weexpect theapprovalandestablishmentofacodeofconduct that lays down the basic references for ethicalbehaviourofemployees,aswellasthecompany’scom-mitmenttoitsbehaviourtowardsstaff.Theintroductionofthiscodewillallowforthecreationofanethicalchannelthroughwhichemployeescanexpressanycomplaintorpossible failuretocomplywiththerequirementsestab-lishedinthecode,whichcanthenbeanalysedbyaneutralcommittee who will carry out any necessary correctiveactions. In other areas we hope to create a corporatepolicywhichcombinesthedifferentpracticesintroducedbycompaniesintermsofwork/personallifebalance,andpromotes them by establishing common action criteriathatsetoutthestrategiclinetobefollowedinthisfield.

ThedesignandintroductionofaperformanceevaluationtoolforFluidra’scompanies,aswellasprogressinthede-velopmentofanequitableandcompetitivepaysystem,areotherprojectswhichrepresentimportantlandmarksinourcorporatehumanresourcesstrategy.

Fluidra is aware of the need to establish processes fortheevaluationofworkpractices,andforthisreasonwehave developed internal audits of the processes andprocedures and the system of integrated managementin general, which include work practices and ethics inthe work place. These audits are carried out in thosecompaniesthathaveputinplaceamanagementqualitysystem(ISOor similar).There isalsoahumanresourcescontrol panel which collects management indicators,thusallowingustomonitorareassuchastherecruitmentandintegrationofdisabledpeople,percentagesofmenandwomenonthepayroll,staffturnoverlevelsandab-senteeism, work-related accidents with or without sickleave,orthenumberofhoursoftrainingandemployeestrainedorthepercentageofemployeespromotedtofillnewvacancies.

Success, risks and opportunities (LA.g)Fluidra’sorganisationalachievementsin2007includethecreation of the Human Resources Executive Committeeand progress in the introduction of human resourcespolicies of a corporate nature which supplement andimprove the existing ones in many companies, such astheselectionpolicy,theintegrationandwelcomepolicy,or the policy for tax exemption for employees travel-ling abroad. The progress made in the introduction ofmanagementtoolsbasedonICT(InformationandCom-munication Technologies) was also an important stepforwardin2007.Fluidraisawarethatthesenewsystemswill help to improve international coverage as a criticalpoint and management challenge, given the multicul-turaldiversityandthedifficulty in integratingnewstaffduetothehighvolumeofacquisitionswhichareusuallycarriedout.

5.2. Performance indicators, work practice and work ethic

aspect: EmploymentFluidrafirmlybelievesinthecreationofjobsecurityforthemutualbenefititprovides,minimising,wherepossible, temporary contracts within its structures.Fluidra’s growth and the increase in its geographi-calpresence favours thecreationofemployment inthosecommunitieswherewearepresent,promotingapolicyof localrecruitmentforbothmanagersandthe rest of the work force, thus facilitating integra-

STAff PEr HOldING

aSTRaL POOL 1.349 35,99%

aURIC POOL 1.007 26,87%

EUROPEaN CORNER 200 5,34%

SWIMCO 60 1,60%

CEPEX 530 14,14%

NEOKEM GRUP 227 6,06%

SNTE 180 4,80%

Others 195 5,20%

Total 3.748 100,00 %

General company data**DatareferringtostaffinallnationalandinternationalcompanieswhichmakeuptheFluidragroup(notonlythoseincludedinthisreport)

AVErAGE STAff PEr dIVISION 2007

POOL

aSTRaL POOL 1.349

aURIC POOL 1.007

EUROPEaN CORNER 200

SWIMCO 60

Total POOL 2.616

WaTER

CEPEX 530

NEOKEM GRUP 227

SNTE 180

Total WaTER 937

SERVICES

FLUIDRa SERVICES 73

TRaCE LOGISTICS 89

aCCENT GRaPhIC 23

DISPREaU 9

FLUIDRa DE INV. 1

Total SERVICES 195

Total FLUIDRa 3.748

INTErNATIONAl STAff

Southern europe 590 15,74%

Central/northern europe 238 6,35%

Eastern europe 101 2,69%

asia and australia 419 11,18%

Rest of world 203 5,42%

Spain 2.197 58,62%

Total 3.748 100,00%

| � 0 | � 1

*WeightedaverageofSpanishcompaniesincludedinthereport

dATA rEfErING TO STAff Of All COMPANIES COVErEd By THIS rEPOrT

BREaKDOWN OF FLUIDRa’S WORK FORCE By TyPE OF CONTRaCT aND COMPaNy.

holding / CompanyTotal

FIXEDTotal

TEMPORaRyTotal

EMPLOyEES

aSTRaLPOOL 383 65 449

aURIC POOL 560 59 620

SWIMCO 53 7 60

EUROPEaN CORNER 37 8 45

CEPEX 274 61 335

NEOKEM 142 13 155

SNTE 83 24 107

FLUIDRa SERVICES 71 2 73

TRaCE LOGISTICS 63 30 93

aCCENT GRaPhIC 18 2 20

Total 1.683 272 1.956

TOTaL NUMBER OF EMPLOyEES, aVERaGE EMPLOyEE TURNOVER,BREaKDOWN By aGE, SEX aND REGION.

holding / Company average age average length of employment

Percentage women

Turnover rate (fixed)

aSTRaLPOOL 35 6,7 21% 12,0%

aURIC POOL 39 6,5 31% 7,1%

SWIMCO 40 13,9 56% 2,4%

EUROPEaN CORNER 38 3,9 22% 0,0%

CEPEX 38 7,0 38% 6,3%

NEOKEM 38 7,0 22% 6,8%

SNTE 37 5,5 32% 12,0%

FLUIDRa SERVICES 36 5,2 42% 9,1%

TRaCE LOGISTICS 33 2,8 46% 1,7%

aCCENT GRaPhIC 31 3,6 32% 18,2%

Total 37 6,5 31% 7,9%

(LA1)

(LA2)

tioninthelocalworkmarketandcommunity.

Inordertoensurethefutureviabilityofourbusinessandthe teamsthatmake thispossible,Fluidraaimstohaveawell-balancedworkforceinrelationtothefunctionsandresponsibilitiestheymustcarryout.

It is essential that we continue promoting trainingfor our workforce, both for their own professionaldevelopmentandalsoto improvetheiremployabil-ity,aswellasinhealthandsafetyrelatedmatters.

Social benefits for full-time employees not offered to part time or temporary employees (LA3)OneofitsmainprioritiesofFluidra’sHumanResourcesdepartment is the development of social benefits forthe company’s workforce. Currently the companiesthat make up Fluidra offer their employees varioussocial benefits, irrespective of whether they are onpermanent, temporary or partial contracts.There is acollective health scheme, with advantageous pricesfor all employees and their families, and althoughthereareothercommonbenefits insomecompanies,each has different social advantages depending oncollective bargaining, history, and local and businesscustomsanduses,whichcanbesummedupasfollows:life insurance,accident insurance,helpin lunchcosts,traininggrants,helpformarriageorcommonlawpart-nerships,specialworkinghoursforfutureorlactatingmothers, awards for retirement or long service, aswellasspecialtransfercompensation,andpresentsatcertaintimesofyear.Allthisisaimedatbalancingworkandsociallife,aswellasstrengtheningjobsatisfactionandtieswiththecompany.

InOctober2007,aspartofitsflotationFluidralaunchedaspecialplanforthepurchaseofsharesatadiscountfor our employees in all companies of the group inSpain,France,Portugal,Italy,Germany,AustriaandtheUnitedKingdom,whichwasverywellreceived.

aspect: Management / Employee relations: RelationsbetweenFluidraanditsemployeesarebasedon respect, participation in decision making and theproximityofmanagerstotheirworkforce.

Compliancewithcurrentlegalrequirements,applicable

collective agreements and agreements for their im-provementinmanycases,aretheformalchannelsthatdefinetheemploymentrelationsbetweencompaniesandworkers.

The scope of application of the collective bargainingagreements in place in Fluidra’s companies covers allemployees, and, therefore, there are no employeeswhoarenotaffiliatedtoacollectiveagreement(LA4).

As a consequence of the application of these regu-lations, minimum notice periods for organisationalchanges are mainly covered in collective agreementsandareadaptedtotheirspecifications(LA5).

aspect : health and safety at work The protection of our employees’ health is a basicpriority and to achieve this goal requires taking andplanning preventative action to eliminate or reducethe risks at source, through evaluation, and throughadoptingthenecessarymeasuresbothintermsofthecorrectionof theexistingsituationandof theorgani-sationandtechnicaldevelopmentof thecompany. Inthis way we can adapt the working conditions to thepersonandprotecttheirhealth.

Therighttoprotectionisensuredthroughtheadoptionof appropriate measures in terms of risk assessment,information, consultation, participation and trainingof the employees, action in cases of emergency andseriousimminentrisk,healthcontrolandtheprovisionofapreventionservice.

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Managementandgoverningbodiestakeresponsibilityfordevelopingacultureofhealthandsafetyatwork,involvingpersonnelatalllevelsoftheorganisation.

Withtheaimofpromotingcontinuousimprovementinworkingconditions,improvinghealth&safetyprotec-tion levels for theworkforceandachievingagenuineprevention culture at all levels of our organisationalstructure,Fluidrahasestablishedapreventionpolicy,based, among other things, on the following princi-ples:

•Eliminationorreductionofworkrelatedrisks•Continuingprotectionforthehealthandsafetyoftheworkforce

• Establishment of information, consultation and par-ticipation mechanisms necessary for carrying outpreventiveaction• Promotion of the active participation of employeesin the prevention of work related risks, introduc-ing systems for the detection of additional risks byemployees

These principles are reflected in the group’s compli-ance with different regulations and codes applicabletotheactivityofeachofthecompanies,makingitun-necessary to provide for special coverage and formalagreementswithtradeunions(LA9).

PERCENTaGE OF EMPLOyEES REPRESENTED IN JOINT MaNaGEMENT/EMPLOyEE hEaLTh aND SaFETy COMMITTEES ESTaBLIShED TO hELP CONTROL aND aDVISE ON hEaLTh aND SaFETy

PROGRaMMES aT WORK

holding / Company Employees Nº Employees represented

% mployee represented

aSTRaLPOOL 449 20 4%

aURIC POOL 620 554 89%

SWIMCO 60 60 100%

EUROPEaN CORNER 45 25 55%

CEPEX 335 166 50%

NEOKEM 155 129 83%

SNTE 107 66 62%

FLUIDRa SERVICES 73 0 0%

TRaCE LOGISTICS 93 93 100%

aCCENT GRaPhIC 20 0 0%

Total 1.956 1.113 57%

Amongthetoolsusedwithinthegroupforthepreven-tion of work related risks, we organise talks, course,conferences,activities,drills,andevacuationsannually.InsomecasessuchasNeokem,inadditiontotrainingschemes for the workforce we also carry out theimportant task of informing the community throughleaflets,newsbulletinsandviathelocalmedia.

AllFluidraemployeestakepartinhealthandsafetyatworkpoliciesasestablishedbyLPRL31/1995throughtheir representation inthedifferenthealthandsafetycommittees(LA6)

Fluidra fulfils its obligation to train and inform itsemployees about work related risks as well as the

(LA6)

MaIN hEaLTh aND SaFETy INDICaTOR

holding / Company absenteeism Rate Incident Rate Frequency Rate Seriousness Rate

aSTRaLPOOL 2,6% 45,6 26,2 0,4

aURIC POOL 6,0% 74,4 57,3 0,8

SWIMCO 4,1% 132,8 77,4 1,2

EUROPEaN CORNER 3,1% 44,2 24,7 0,1

CEPEX 2,9% 48,9 48,2 0,6

NEOKEM 5,5% 51,7 47,0 1,0

SNTE 1,3% 53,3 35,1 0,6

FLUIDRa SERVICES 6,3% 0,0 0,0 0,0

TRaCE LOGISTICS 7,1% 163,5 92,3 1,3

aCCENT GRaPhIC 4,8% 90,9 52,4 0,2

Total 4,4% 56,8 44,4 2,4

• WeightedaveragesoftheSpanishcompaniesincludedinthereport

• Definitions:

- Incidentrate: numberofaccidentswithsickleaveper1000employees

-Frequencyrate: numberofaccidentswithworkrelatedleaveper1,000,000hoursworked

-Seriousnessrate: numberofdayslostthroughaccidentswithorwithoutleaveper1000hoursworked

*Fatalities: therehavebeennofatalaccidentsinanycompanyofthegroup

NUMBER OF PEOPLE TRaINED IN RISK PREVENTION aND CONTROL (LA8)

Internal prevention External prevention Emergency drills First aid

1.169 138 277 36

*Thistrainingreferstoall activitiesrelatedtopreventionofworkrelatedrisksincludingriskof i l lnessandaccident. This

does not include obligatory initial training for new staff.

measures and activities aimed at their prevention,through regular training and distribution of informa-tionanddocumentation.

In some service companies such as Fluidra Servicesand Accent Graphic, there is no representation of the

workforceand,therefore,ahealthandsafetycommitteehasnotformallybeencreated.Nevertheless,thisdoesnotmeanthatinthesecompanieswedonotcarryoutall the activities required by LPRL 31/1995 in relationto preventive action planning, health control andemergencyplanning.InthecaseofFluidraServicesthe

(LA7)

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Training area No. of training initiatives

hours of training

Percentage of employees taking

part in training Training spending

Management 11 888 4% 35.213

administration/Finance 21 1.320 2% 5.352

Sales 23 738 6% 8.177

Languages 102 9.385 13% 110.908

IT 27 607 4% 7.775

hR Management 9 212 1% 3.774

Production/Maintenance 33 812 18% 11.190

Logistics/Purchases 16 1.783 6% 42.602

Engineering/R&D/Quality 96 2.305 25% 45.215

Total 338 18.049 78% 270.206

aVERaGE NUMBER OF hOURS OF TRaINING PER yEaR PER EMPLOyEE, BROKEN DOWN By CaTEGORy aND By aREa OF TRaINING (LA10)

average number of hours per employee 9

Professional category No. of

participants

Senior executives 59

Middle managers 277

Engineers 281

administrative staff 355

Unskilled staff 508

Total 1.480

Fluidra’s human resources department offers onlinetraining for all the employees in the group, thanksto its own e-learning platform, through which wecanenrolandfollowupemployeesanywhereintheworld. The first course developed on this platformwasthe“basicswimmingpoolcourse”,aprogrammedeveloped specifically by the technical departmentofAstralPoolincollaborationwithFluidra’scorporatehumanresourcesdepartment.In2007,85employeesfrom different countries completed the course. Wearecurrentlystudyingothercoursesfortheirfutureinclusioninthee-learningplatform.

With the aim of continuing to work on the trainingand professional development of our employees,in Fluidra and in the human resources committeevarious general policies are being drawn up whichformjointactionguidelines forthemanagementofindividuals,withtheaimofprogressivelyintroducingtheseinallholdingsandcompaniesofthegroup.

In Fluidra’s corporate headquarters, a perform-ance evaluation system (LA12) is applied to morethan65%of theworkforcewith theaimof facilitat-ing both the design of training strategies, and payandresponsibility,wherebyeverydepartmentheadmeetswitheachmemberofhis/herteamtoevaluatetheirindividualperformanceovertheyearandtosettargetsforthefollowingyear.Inmanyofthegroup’scompanies other informal evaluation systems foremployeesanddirectorshavebeensetup inwhichannual performance is discussed, but without aformal report being issued. In Trace Logistics allemployees are evaluated on a yearly basis by theirdirect line managers through a performance ques-tionnaire.During2008Fluidrahopestoredesignthemethodology and evaluation process so as to makeit valid for the entire organisation both nationallyandinternationally,settingupapilotschemeintwocompanies or holdings of the group, and then pro-gressivelyexpandingtotherest.

Also,in2008wewillconsidertheoptionofdesigninga plan for the detection and evaluation of talent,which will promote the development of futuremembersofmanagementwithinourcompanies.

Another important challenge will be to continuemaking progress in the introduction of payroll andhuman resources software with the aim of unifyingtheinformationdatabaseofourworkforceinthenext

few years and being able to successfully introducethegroup’shumanresourcespolicies.This softwarewill offer advantages not only to human resourcesusers but also to management and employees asit is capable of managing payroll and personal in-formation,aswellas requests tocovervacanciesortrainingcoursesforstaff.

aspect: Diversity and equal opportunities

AtFluidraweputthetrainingofeachemployeebeforeany consideration of sex, origin, social condition orreligion,bothintermsofaccesstoandemploymentinourcompanies,andofequalopportunities intheworkplace.

Many of our companies have produced documentsrelatingtogoodworkpracticeandconduct.Fluidrapromotes the optimal management of humanresources, avoiding any form of discrimination, andoffers real equal opportunities through dialogue inthosecompanieswithemployeerepresentation.

In compliance with current legislation we havestartedtoworkonthecreationofEqualityPlansforthecompanieswithmostemployees,withtheaimofhavingtheminplaceby2008.

creation of a health and safety committee is plannedfor2008inspiteofthelackofsocialrepresentation.

aspect: training and education

Within our companies’ training plans there is a specialemphasisonlanguagesastheseareakeyelementforustobeabletorespondtoourcommunicationneedswithouroverseaspartners,aswellastechnicaltrainingrelatedtotheproductionandqualityofprocessesandproducts,giventhe importanceofmanufacturingand logisticac-tivitieswithintheFluidragroup.

In2007aspartofthetrainingforskillsmanagementpro-grammes(LA11)wewouldliketohighlighttheactivitiescarriedoutbyalargepartoftheemployeesofCepexandManufacturasSolá,bothmembersoftheCepexholding,where a total of 136 employees took part in a trainingand awareness program based on team work and thedevelopmentofinterpersonalskillswithintheirareasofactivity.

Theaveragenumberofhoursperprofessionalcategoryhasnotbeencalculatedasit isnotconsideredrelevant,giventhatFluidra’scurrenttrainingpolicyaimstofindabalanceintheinvestmentbetweendifferentprofessionalgroups.

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STaFF COMPOSITION aCCORDING TO DIVERSITy INDICaTORS

holding / Company % Women to total staff

% Over 45 to total staff

% Foreigners to total staff

% Women in management

positions

aSTRaLPOOL 21% 17% 2% 14%

aURIC POOL 31% 28% 13% 15%

SWIMCO 56% 34% 10% 0%

EUROPEaN CORNER 22% 26% 2% 30%

CEPEX 38% 27% 6% 0%

NEOKEM 22% 25% 5% 3%

SNTE 32% 19% 33% 0%

FLUIDRa SERVICES 42% 5% 0% 33%

TRaCE LOGISTICS 46% 11% 22% 17%

aCCENT GRaPhIC 31% 0% 2% 0%

Total 31% 23% 9% 11%

(LA13)

ISO 14001 EMaS

auric Pool

Metalast Duein2008

Poltank 2004 2004

Sacopa 2008 2007

Cepex

Cepex Sau (Granollers) 2005

Cepex Sau (La Garriga) Duein2009

Cepex Sau (Sant Jaume) Duein2009

Forplast 2005

Manufacturas de Plásticos Solá 2003

VRaC 2005

Neokem

Inquide 2006 Duein2008

Swimco

Manufacturas Gre Duein2008

Corporate and other services

Trace Logístics Duein2008 Duein2008

In2007our logisticsoperatorTraceLogisticswaschosenbytheHumanResourcesmagazineSelectionasamodelcompany in the sector because of its policy of hiringwomen.TheTraceLogisticshumanresourcesdepartmentfirmlybelievesinequality,applyingpositivediscriminationcriteriatoitsselectionprocessestobalancethecomposi-tionofitsstaff.Asfarasforeignstaffisconcerned,althoughTraceLogisticsdoesnothaveaspecificpolicyforrecruiting

foreigners,itcurrentlyemployspeopleoftendifferentna-tionalitieswhoaccountforatotalof22%ofstaff.

Asfarassexequalityandpayareconcerned(LA14),atFlu-idrathereisnodifferenceinbasicpayformenandwomenwhocarryoutthesamedutiesaccordingtotheircategoryandposition.

6 ENVIRONMENTaL DIMENSION aND INDICaTORS

Through its system of environmental managementFluidra’scompaniesregularlyidentifyandevaluatetheenvironmental aspects related to their products andactivities. Our objective is to identify the most signifi-cant factors which form the basis of the ManagementSystem environmental objectives and which will befollowedveryclosely.

Awareoftheimportanceofprotectingtheenvironmentandofmakinganefficientuseofresources,someofourcompaniessuchasPOLTANKSAUorSACOPASAUhavevoluntarilyoptedtofollowECRegulationNo.761/2001of the European Parliament for environmental man-agement and auditing (EMAS), which also includescertification according to ISO 14001.The system inte-gratesqualityandenvironmentandcompliesimplicitlywiththerequirementsofregulationsUNE-EN.ISO9001,UNE-EN-ISO 14001, as well as with the additional re-

quirementsofEMAS,includingthecreationofthepublicdocumentknownastheEnvironmentalDeclaration.

All the companies in the group are certified, or in theprocessofbeingcertifiedunderUNE-EN-ISO9001.

Therecyclingofpaperandprintertoner,thereductioninplasticcups,savingwater,andefficientconsumptionofenergyarebasicprinciplesinthedynamicandday-to-dayrunningofouroffices.

Officewasteishandledthroughspecificwasterecoverycompaniestoensureadequaterecyclingoreliminationtreatment.Regardingchemicalproductsaspecificwarehousehasbeensetupwiththenecessaryinfrastructurerequiredbylaw.

6.1. Management approach (EN.a)

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ThosecompaniesthatmayhaveasignificantimpactontheenvironmentcanuseanEnvironmentalImpactEvaluationwhich covers aspects such as geomorphology, geology,hydrology, climate, flora, fauna, population and country-side.

Goals and performance (EN.b)Fluidra is advancing according to plan in its aim ofachievingahighdegreeofcertificationinenvironmen-talcontrol,buildingtheseaspectsintoourqualityandsafetyobjectives.Allthecompaniesinthegrouphaveset out environmental targets to improve awareness,respect and control of those areas that could have anegativeimpact:• Consumption of resources (control of unnecessaryenergy consumption in order to obtain high energyefficiency,controlofwaterconsumptionforitsrespon-sibleuse)•Reductionofwasteanditscorrecthandling•Reductionofemissions•Reductionoftransportimpact•Guaranteedcompliancewithlegalrequirements•Thedesignofproductsandprocessesbasedonenvi-ronmentalcriteria(controlofmaterialsusedtoavoidtheuseofproductswhichmaybeharmfultotheenviron-ment,whereverpossible theuseof recycledmaterial,the use of renewable energy, analysis of product lifecycles,incorporationofmaterialorequipmentinordertofacilitaterecyclingattheendofitsusefullife,etc.)•Sensitivityandawarenesstrainingforstaff

With respect to specific environmental objectives,we can highlight those established by CEPEX which,apartfromthosementionedabove,hasdesignedpro-grammes for the reduction of waste oils (2006-2008Environmental Programme), the replacement of rawmaterial with % recycled materials (2007-2008 Envi-ronmental Programme) and the reduction of bearingpolishingwaste.

Both Poltank and Sacopa (EMAS Certified) publishedtheirenvironmentalperformanceobjectivesintheen-vironmentaldeclarationwhichisdrawnupandverifiedbyaverificationorganisation.For further informationplease go to the company websites (www.poltank.com, www.sacopa.com).

Environmental policy (EN.c)MostofFluidra’scompanieshavedistributedtheirenvi-ronmentalpoliciestoensuretheyreachallstakeholder

groups(welcomemanuals,noticeboards,environmen-tal declaration, websites, etc.). In all cases the policyis updated annually and approved by Management.In some cases there is a joint policy in the integratedmanagement system which covers quality, safety andenvironmentmattersandlaysdownaspecificprocessplan.

• Some of the aspects covered in the environmentalpolicies include: continued improvement based onoptimal handling of material, technical and humanresources.• Evaluation of direct and indirect environmentalaspectsderivedfromouractivitiesandthosewhichareincorporatedwithaviewtopreventingtheirimpactorreducingtheireffect.• Evaluation of environmental aspects derived fromouractivities,prioritisingpreventiontoreducetheen-vironmental impact arising from materials, processes,installations and products, while reducing the con-sumptionofresources,especiallynaturalones,inorderto prevent, reduce and correct contamination fromwaste, atmospheric emissions, noise and waste waterderivedfromourproductionactivities,andseparatingwaste products, entrusting them to organisations au-thorisedfortheirrecyclingandappraisal.• Commitment to complying with relevant legislationandregulations,aswellasotherrequirementsunder-takenvoluntarilybytheorganisations.• Training, awareness and motivation of companypersonnel to encourage correct environmentalbehaviourasaninherentaspectoftheiractivities.• The development of mutually beneficial relationswith stakeholders (clients, supplies, users, etc.) andconveyingourhighquality,environmentalandsafetystandards to our contractors, subcontractors andsuppliers.

Organisational Responsibility (EN.d)Fluidra’sCorporateSocialResponsibilitycomesdirectlyfrom the governing bodies set up by senior man-agement, channelled through the Chief OperationsExecutive,anddelegatingresponsibilitytotheHoldingDirectors.

The Holding Director is supported by the AreaDirectors,FactoryDirectorsandCommercialCompanyManagers.

Mostcompaniesalsohaveapersonwhoisresponsiblefortheenvironmentalmanagementsystem.

Training and awareness (EN.e)InallofFluidra’smanufacturingcompaniesstaffinvolve-mentinimprovingenvironmentalbehaviourisofgreatimportanceatalllevels.Withthisinmind,trainingandawareness sessions are carried out to promote goodpractice in the manufacturing of our products, sepa-ration of waste products, consumption and re-use ofwater,energy,handlingchemicalproducts,circulationof the Integrated Management System, non-compli-ance management, accidental spillage procedure,emergencyfiredrillplansandprocedure.

Productinitiativesandactionsarealsoveryimportantfor taking into account environmental aspects inthe design process. We must also bear in mind boththe product and its manufacturing process, and alsoconsider these aspects in the construction, modifica-tion and extension of new manufacturing centres.Tothis end, specific training sessions are held so thattheseaspectscanbeapplied.

As an example we would like to draw your attentiontotheconferenceonthereductionofwaterconsump-tioninswimmingpoolsgivenbythetechnicaldirectorof Astral Pool, in the BCN 07 technical sessions onswimming pools during the 2007 Barcelona Interna-tionalSwimmingPoolShow.

Evaluation and Follow-up (EN.f )Inthosecompaniesthathaveanenvironmentalman-agementsystem,themanagementhasestablishedandkeepsuptodateitssystemaccordingtoISO14001orEMAS,throughwhichitiscommittedtocomplyingwiththe environmental policy drawn up by the companyandanytargetsorobjectivesderivedfromit.

The system is described in a manual and a series ofprocedures and instructions (basic operations andmanufacturing specifications) which are used to helpoperatorsinthecorrectexecutionofprocesses.

The Environmental Management System guaranteesthat environmental aspects and effects are correctlyidentified and any significant variation is detected.Based on these environmental effects and correctivemeasures which are applied in the processes, we canevaluate their impact on the environment. For everysignificantimpactaworkplanisestablishedtoreducetheimpactandameasurementfrequencyandfollow-up method is set up to guarantee that everything isalwaysundercontrol.Allimportantdataisrecordedandanalysedofficiallytoobtainideasorwaystoimprove.Toguaranteethatthissystemisefficientlymanagedinall areas, regular audits are carried out on its correctapplication,theexecutionofthepolicyandtargetssetbythecompany.

Our aim is to guarantee that efforts for improvementand the use of economical resources are dedicatedto the most important objectives related to environ-mental behaviour or performance (eco-efficiency). Acompletereviewofallsystemsiscarriedoutannually:the review of the policy’s suitability, the degree oftask achievement, indicators, efficiency of operation-al checks and standards, establishment of necessaryresources for correction, evaluation of legal require-ments, accidental, periodical or foreseen breaches,non-conformity, corrective and preventive measures,complaints,customersatisfactionresults,auditreports(internal and external), organisational structure(changes, skills, available human resources), reviewof actions resulting from previous revisions, humanresourcesandtheevaluationofthesystem’sefficiencyandofallcriticalelements,whethertheyaretechnical,or relate to motivation or involvement. All currentandexpectedchanges in legislation,marketdemand,market expectations related to the environmentalcharacteristics of products and/or their environment,process,organisationetc.arealsoanalysed.

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Thosecompanieswhichstilldonothavea formalEn-vironmental Management System according to ISO14001 or EMAS have put in place basic informationsystemsforthefollow-upandcontroloftheirenviron-mentalimpact.

additional Contextual Information (EN.g)The company’s efforts in environmental matters in2007 can be seen in a number of specific achieve-mentswithinthecompaniesthatformthegroup.Oneexample is the improvement in waste managementofFluidra’scompanies(reductioninthegenerationofspecialwastetothepointofnotproducinganywasteat all, increase in the use of regenerated materials,internal regeneration of solvents, etc.). Another im-provementhasbeenseeninthehandlingofresourceconsumption,bothintermsofrawmaterials(includingchemical products, hot washes), energy (reduction inthetimeforchangingmoulds)andwaterconsumption(installationoftanksforwaterrecirculation).

Poltankhasnotonlyreducedthegenerationofspecialwaste but also its emissions. In the case of Sacopa, agroup of LED projectors has been created for use inswimming pools and also in public lighting systems.Theirprincipal featureshaveapositive impactontheenvironment as they allow for the substitution of aconventional projector without the need for changesintheinstallation,therebyincreasingitsuseful lifeby9,900%(iftheconventionalprojectorhadauseful lifeof1000hours, thenewonewouldhave100.000)andefficiency by 80%. The conventional projector uses300Wandthenewoneonly60W.

Fluidraisawarethatinordertocontinueimprovinginenvironmentalmattersitneedstocarryoutaneffectivemanagement of the risks and opportunities relatedto its activity. Among the improvements planned byFluidra for the future is thedevelopmentofnewpro-duction systems adapted to the demands of a morecompetitivemarket.

Inthisway,thecompanyismanagingtheriskofpossiblechangesinlegislationwhichwillaffectmanufacturing

companies in relation to the raw materials used, pro-ductionprocesses,productsandinstallations.

The future also holds opportunities for growth forFluidra, based on the regeneration of shreddedpolyester and the manufacture of lighting productsusing LEDs. The constant emphasis placed by thecompany on the improvement of available and eco-nomicallyviabletechniquesallowsustolookforwardtoafutureofcontinueddevelopmentandgrowth.

6.2. Environmentalperformance indicators

Materials (EN1,EN2)In all of Fluidra’s companies we work with the aim ofminimising waste, damage and misuse of raw materials.Thisprocessisappliedfromthedesignstage,promotingproductswithahighlevelofrecyclablecomponentsaswellasmaterialsrecoveredfromthemanufacturingprocess.Anexampleofthisisthewaterliftsystem,whichreceivedthe2007 innovation prize at the Barcelona Swimming PoolShow, 100% recyclable and produced with 5% recycledmaterials.

The same criteria are applied in the management ofprocessestakingintoaccountallrequirementsrelatedtoproduct quality, personal safety and the environment .Thesearealsotakenintoaccountintheproductionprocessbyapplyingthemostadvancedtechnologyineachoftheprocesses,byprovidingtrainingtostaffandbyworkingonthepremisethatajobiswelldoneonlyif it isdonewithquality,safetyandrespectfortheenvironment.TheR&Dstaffoptimisesproductsbasedonenvironmen-tal criteria, reducing the quantity of material to cut onresources, and using materials which are not dangerousorharmfultotheenvironment,controllingtheircomposi-tion to ensure that they comply with current legislation.Inthisrespect,wehavemadeagreatstepforwardinthereductionofwastefromthepackagingofproductsplacedonthemarket,basedonthereduction,re-useanduseofrecycledmaterial,keepingthisasanaimfor2008.

(EN1,EN2)CONSUMPTION OF MaTERIaLS

Raw Materials 2006 2007 % assessment for 2007

Plastic products (Tn)

Vinyl Polychloride 6.528,9 8.445,19 15,89%

PVC polypropylene 2.598,9 3.582,04 19,53%

acrylonitrite Butadiene Styrene (aBS) 1.965,0 2.303,01 1,83%

Polyester resin 1.804,0 1.902,36 -

Plastic Waste (<1000Tn) 3.834,7 3.107,65 17,56%

16.731,6 19.340,2

Metal products (Tn)

Stainless steel 5.833,3 7.831,43 -

Cables 233,0 254,00 -

Cast iron 228,0 346,00 -

6.294,3 8.431,4

Chemical Products (Tn)

Chlorine 12.633,0 15.127,26 -

Thichloroisocyanuric acid (TCCa) - 7.500,00 0,34%

Cyanuric acid 6.165,0 7.488,55 5,76%

Chemical product - 6.190,07 -

Thiosulphate solution - 2.536,00 -

Thiosulphate - 1.961,59 -

Sodium hydroxide =caustic soda 16.987,0 23.310,18 -

Sodium bisulphate 1.248,0 1.352,08 -

Sodium dichloroisocyanurate - 1.216,00 -

Chemical Waste (<1000 Tn) (73.24% re-use of acetone) 5.057,0 5.447,28 73,24%

42.090,0 72.129,0

Fibre glass

Fibre glass (Tn) 1.318,0 1.345,40 0,07%

1.318,0 1.345,4

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Energy (EN3,EN4,EN5,EN6,EN7)Fluidra has an external consultancy that reports onthe energy situation of the companies and worksout policies aimed at reducing consumption. In 2007an energy diagnosis was carried out in a number ofcompanies (those with a significant consumption)with the aim of reducing energy consumption andproposinganactionplanforthefollowingyears.

The highest level of energy consumption is found inthemanufacturingcompanies,andisbasicallyaresultof the consumption of electricity and diesel for airconditioning equipment, fork-lift trucks, lorries andcompany vehicles. Also, some companies use naturalgasinthedryingprocess.

Fluidra is aware of its energy impact and has put inplaceaseriesofprogrammesfortheuseofrenewableenergy,basedonsolarpower,whichwillhelpimproveenergyefficiencyinthefuture,alongwiththecurrentcogenerationsystemsusedinInquide.

On a product level, we are promoting projects whichaim to boost energy efficiency and strengthen LEDtechnology, high performance, and low cost lightingin comparison to traditional methods. LED technol-ogyhasalreadyenabledsavingsof80%andincreasedusefullifebyupto100times(EN6,EN7,EN5).

ENERGy CONSUMPTION aND CO2 EMISSIONS

Source Consumption 2006

Consumption 2007

Consumption 2007 (GJ)

CO2 Emissions (Tn)

Natural Gas (Mm2) 61,75 66,27 2.550,90 142,85

Diesel (Tn) 501,61 1.031,64 43.741,74 3.193,15

Cogeneration (kwh) (own consumption) 3.897.738,00 14.031,86 -1.672,13

Basic electricity (Kwh) 30.210.420,00 40.171.336,84 144.616,81 17.233,50

204.941,31 18.897,37

CONVERSIONS

Fuel conversion Units GJ Emission factor(Kgco2/gj)

Emission factor (kgco2/kwh)

Natural gas (mm3) 1 38,49 56 2,1554

Diesel (tn) 1 42,4 73 3,0952

Electricity (kwh) 1 0,0036 - 0,429

*Datasuppliedby“LaOficinaCatalanadeCambioClimatico”–TheCatalanOfficeforClimateChange,accordingtodata

fromtheSpanishGEI inventoriesreport1990-2006(March2008).

(EN3,EN4,EN16,EN17)

WaterWater related performance is one of Fluidra’s mostimportant areas of activity, as all our activities andproducts revolve around this scarce resource, itstreatment and re-use. Because of this, in all ourcompanies there is an awareness of the need to saveand make a sustainable use of water. A number ofcompanieshavealreadyinitiatedawarenesscampaignsfortheiremployees.

Water consumption in most companies is for sanitarypurposes or for drinking, and comes from the publicwater system, although there are isolated cases ofaccess through wells and a concession for water col-lectionfromtheriverEbro.Manufacturingcompaniesalso need water for their production process and formachineorpartsrefrigeration,testcircuits(forfilters,motors or light projectors), backwashes, etc. Also, atInquide we use water for its incorporation into theproduct.

Weareworkingtowardsmakingconsumption inpro-duction processes as low as possible, by setting upclosed circuits for machine refrigeration (moulds),filter testing, motors, and by cooling tanks for partsor for testing projectors with recycling and filteringsystems to increase the time the water can be used.Also,systemsareinplaceforthedetectionofunneces-saryorincorrectconsumptioncausedbybadpractice,andleaksinthesystemaredetectedandrepairedim-mediately.

At Poltank, for example, there are underground tankswith a total capacity of 60 m2 distributed amongthe three production sites, which serve the pressuretest circuit to which the manufactured products aresubmitted(filtersandfertilisers).Withthissystem,theusedwaterisrecycledandfiltered,makingitnecessarytorefillcompletelyonlywhenthetank isemptiedformaintenance (normally once a year) and to replacepossible losses through evaporation and through theveryprocessofemptyingthetestedparts.Usedwateris filtered and recalculated giving us a total of 99%waterrecirculationintheprocess.

Currently the highest level of water consumption istobefoundinInquide(situatedinPolinyà,amemberof the Neokem Holding) where is it also used as araw material for the manufacture of products and forcleaningequipmentandinstallations.Forthisreason,oneofthecompany’sobjectivesistoreduceconsump-tion,whichhasalreadybeenreducedby10%

compared to 2006 thanks to training and improve-mentsinitsinstallations.

Inquide is also studying the possibility of direct useof purified waste water, a proposal submitted by theConsorci per a la defensa de la Conca del Riu Bessos,which advocates the use of regenerated water fromwastewatertreatmentplants(IDAR).

The Product Committee is developing water savingproducts such as the watersaver system, a system forsavingwaterinswimmingpoolfiltersystems.

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WaTER CONSUMPTION M3

Use Public system

Private system

Surface water (rivers, lakes,

etc…)

Underground water (wells) Reuse Total

use % use

Process 6.877,3 103.335,0 58.000,0 0,0 10.068,0 178.280,3 80,2%

Cooling 2.650,4 0,0 0,0 0,0 769,0 3.419,4 1,5%

Irrigation 6.555,8 0,0 0,0 8.795,0 0,0 15.350,8 6,9%

Sanitary or drinking 23.128,0 11,5 1.050,0 3,0 0,0 24.192,5 10,9%

Other (tests and leaks) 1.091,0 0,0 0,0 0,0 0,0 1.091,0 0,5%

Total sources 40.302,5 103.346,5 59.050,0 8.798,0 10.837,0 222.334,0

% sources 18,1% 46,5% 26,6% 4,0% 4,9% 100,0% 100,0%

Consumption for use in 2006

54.147,0 125.203,0 0,0 254,0 5.804,0 188.408,0

Apart from the improvement measures which havebeen put in place to save water, one explanation forthe significant reduction in water consumption is thedilutioneffectcreatedbytheinclusionofasubstantialnumber of commercial companies with considerablylowerconsumptionthanmanufacturingcompanies.

Biodiversity (EN11,EN12,EN13,EN14,EN15)AllFluidracompaniesareawareoftheneedtoprotecttheenvironmentandcontrolaspectswhichmayhavean impactonbiodiversityandwhicharegovernedbylegislation: control of emissions and waste water tocomply with current legislation, correct waste man-agement,noisereductionpolicies,etc.,andinthecaseof Inquide-Flix, compliance with the environmentalwatchplan(chlorinedetectorsanddailymonitoringofprocessanalysisbylaboratories).

All of Fluidra’s manufacturing companies are situatedinindustrialestatesandthereisnoproperty,whetherownedor rented,withahighvalue in termsofbiodi-versity.Neitherareanyofthesecompanies locatedin

areas with endangered species included on the IUCNredlistoronnationallists.

Although a number of companies belonging toAuricPool and one Cepex company are located in LaGarrotxa (Olot), which has several protected areas(includingavolcanicnaturalpark,PEINAltaGarrotxa),none of the manufacturing sites are based in theseprotected areas.We would also like to point out thatInquide-Flix is situated in the Ercros industrial estatenext to the Flix dam, near the town centre and just 3kmfromanaturalwildlifereserve.

Overall, we do not believe that our companies causea significant impact on the biodiversity of the areaswhere they are located. Proof of this is that we havenever received complaints or requests for informa-tion to analyse whether our activities affect the richbiodiversityofthearea,neitherhasanybodyidentifiedwaterresourcesorrelatedhabitatswhichareaffectedby water spillage or runoff from Fluidra companies(EN25).

(EN8,EN9,EN10)

Emissions, effluent and wasteFluidra’s companies control their emissions, effluentand waste through environmental managementsystems which are implemented in the installationsmore likely to have an impact on the environment.Environmental control and management has allowedforoptimalresultsandhasdemonstratedthatin2007,noneofFluidra’smembershadexperiencedsignificantaccidental spillage which could damage the environ-ment(EN23).

As far as the atmosphere is concerned, we would liketo point out that within the Fluidra group, there areno installations affected by the European Directive(2003/87/EC) on the market regulation of green-house effect gas emissions under the Kyoto protocol.However,Fluidraisawareoftheimportanceofclimatechangeandoftherisksderivedfromit,andthisyearithasbegunmeasuringandcontrolling itsemissions inaccordancewiththeconditionslaiddownbythegov-ernment agencies created for this purpose. In 2007,annual greenhouse emissions totalled 22,542 Tn/CO2forallcompaniesintheFluidragroup.Asfaras initia-tives to reduce greenhouse emissions are concerned,weplantodrawupanenergyefficiencyplanwhichwillhelpreduceourcurrentemissions(EN16,EN17,EN18,EC2).

Stillonthesubjectofatmosphericemissions,theman-ufacturing systems in place in Fluidra companies donotgeneratesignificantemissionslikelytodamagetheozone layer, nor do they create significant emissionsofnitrogenoxide(NOx),sulphuroxides(SOx),volatileorganiccompounds(VOC)orsimilar(EN19,EN20).

As far as waste water treatment is concerned, mostFluidracompaniesusewater forhumanconsumptionand sanitary purposes. Water is disposed of directlyintothepublicsewers. Intotal this represents12%ofall waste water. The rest (88%) comes from Inquide’sindustrial processes, as this requires an important

quantity of water which, once used, is purified in thesame installations before being disposed of throughthepublicsewersystem(EN21).

With regard to the treatment of waste generatedby Fluidra, it is worth pointing out that the produc-tion processes used by the group’s companies donot generate or treat waste classified as dangerousaccording to the Basel Convention in Annexes I, II, IIIandVIII,meaningthatinthisregard,therehasbeennotransport,import,export,orinternationaltreatmentofwaste(EN24).

Products and services(EN26,EN27)The R&D departments of all Fluidra companies are verysensitive to sustainability and work towards designingproducts with a sustainable vision and following envi-ronmental criteria both in terms of the products andtheirpackaging(moreenergyefficient,usingrenewableenergy, recycled material, using materials free fromhazardous substances, considering life cycle-durationanalysis,degradation,rawmaterialsused,etc.).Examples of this commitment to sustainability include:Metalast’s solar shower, Talleres del Agua’s solar+solarabsorptionenergyheater,Sacopa’sLEDprojectors,poolcleanerswhereleadhasbeenreplacedbysand,SNTE’slowconsumption decalcification systems (ECOLUXE series),Cepex’s inspection companies which were presented atthe 2007 environment prizes and two products whichwere awarded prizes at the 2007 Barcelona Swimming

NOx SOx VOC Other

0,39 0,266 112,8 3,57

*Dataintonnes

Waste treatment (Tn) (EN22)

Treatment method Especial Not Special

Disposal to tips 73,90 1.258,17

Regenerated through

authorized external handler38,70 3.384,78

Internally regenerated 53,97 1.364,99

Sent for incineration 20,01 1,27

Others(reuse, recycling etc.)

48,68 37,28

Total 235,26 6.046,49

*ClassificationaccordingtoEuropeanwastecatalogue

(CER)validfromjan12002.

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PoolShow:WATERLIFTinnovationprize(disabledaccess)andWaterSaver(sustainabilityprize)(EN7).With reference to the reduction of waste in packaging,itisimportanttopointouttheeffortsmadebyNeokemholding’s companies.This is a very significant aspect oftheir products and, therefore, they are working hard toensure that their packaging suppliers use recyclablematerials according to the specifications laid down byregulations. Other initiatives worth mentioning includePlàstics Solà and Vrac, members of the Cepex holding,which use re-usable plastic boxes or PALBOX insteadof cardboard boxes for deliveries to certain customers.Neokemhasalsolaunchedaninitiativefortheacquisitionofrecycledplasticcontainersasrawmaterials.Intheperiodcoveredbythisreport,Fluidra’scompanieshavesold64238 Tnofmanufacturedproductsincluding7258 Tnofrecycledpackaging,whichrepresents11% ofsales.

Compliance with regulations(EN28)The majority of Fluidra companies have contracted forservices to gain access to legislation regarding productregulations, safety at work, and industrial and environ-mentalsafetyonaregional,nationalandEuropeanlevel.

From time to time we receive an update on applicableregulations,basedonaprofilecreatedaccordingtotheneedsofeach individualcompany. Inaddition, throughthe Environmental Management Systems, we carry outa review of applicable legislation every 3 months toensure that there have not been any changes affectingcompliance,andcorrectiveactionsaredevisedtoensurecompliance.

There is also a calendar of checks to ensure that taxreturns, inspections, audits, reviews etc. are carried outas planned each year. During 2007, no company in thegrouphasbeenfinedorhandednon-financialpenaltiesfor failing to comply with environmental regulations(EN28).

Transport (EN29)EverymemberoftheFluidraGroupstrivestooptimiseits transport through specific measures such as fullloads,groupeddeliveryorrouteplanning.

When developing products, we look at the logisticsavailable to achieve more efficient packaging withless volume and, consequently, lower material andtransportcosts.

Poltank, Sacopa and Maberplast launched animportantinitiativeincooperationwiththelocalau-thorities,tocreatea“planforimprovingmobilityandaccessibility to La Garrotxa industrial estates for thetransportofstaff ”.

Cepexhasalsoacquireda lorrywhichcomplieswith“Euro 5”environmentalregulationsforgasemissionsand has planned the purchase of another for 2008.In addition, some companies such as Poltank andSacopa have carried out awareness programmes forthe hauliers with whom they work regularly, to askthem to consider the options available for them tooptimiseresourcesandavoidunnecessaryemissions.

• Source:Europeancommission,AutoOil I I , FoundationforEcologyandDevelopment

(EN29)ENVIRONMENTaL IMPaCT OF TRaNSPORT

Source Km (own fleet)

Km (outsourced) Total Km

CO2, Eq. Emissions (own

fleet) (Tn)

CO2, Eq. Emissions

(outsourced) (Tn)

Total Emissions

Tn CO2

Lorries and vans 294.836 4.234.182 4.529.018 153,68 2.207,09 2.360,77

Buses 10.950 0 10.950 8,80 0,00 8,80

Cars 7.221.714 24.069 7.245.783 1.272,59 4,24 1.276,83

Planes - 807.707 807.707 - 290,77 290,77

Trains - 3.500 3.500 - 0,18 0,18

Total 7.527.500 5.069.458 12.596.958 1.435,07 2.502,28 3.937,35

Parameters CO2 Ch4 N20

Equivalence 1 21 325 Unidad

Lorries and vans 511,89 0,0683 0,0244 gr/km

Buses 762,23 0,2988 0,1067 gr/km

Cars 165,08 0,0181 0,0331 gr/km

Planes 360,00 - - gr/km

Trains 50,00 - - gr/km

*Theequivalencesarespecifiedformethanegas(CH4)andnitrousoxide(N2O)tocalculatetheequivalentCO2.

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7 DIMENSION aND INDICaTORS OF SOCIaL COMMITMENT

Fluidra’s commitment to collaboration with societygoesbeyonditsbusinessactivityandisreflectedinthedevelopmentofavarietyofsponsorshipandpatronageschemes.Inthisway,thegroupundertakestogivebacktothecommunitypartofwhatitgivesus.

Resourcesaredistributedintofourmainareas:sporting,social/charity,culturaland internationalprogrammes.Thisdistributionisconcentratedonprojectsthatcreategreater value for society while helping with Fluidra’sintegrationintothecommunitiesandcountrieswherethegroupoperates.

Sporting areaFINA (International Swimming Federation) www.fina.org

Through Astral Pool, Fluidra has became the onlySpanishcompanytoberecognisedasanofficialFINAsponsor. Fluidra’s Skypool Technology, which allowsthe construction of standard competition pools withtemporarypanelsthatcanbedismantled,hasbeenanenormoussuccessintheworldofwatersportcompeti-tions.

This has been recognised through the designation ofAstralPoolasOfficialFINAPartner,makingthegroupthe official competition pool supplier for the worldchampionships in Shanghai (China 2006), Melbourne(Australia 2007) and Manchester (United Kingdom2008).

Fundació Catalana per a l’Esport www.fcesport.org

Fluidra sponsored a wheelchair tennis exhibitionmatch in the 55th SEAT Open Conde de GodóTrophyheldinBarcelonaon29April2007,wheretheSpanishwheelchairchampion,FrancescTurplayedtheSpanishnumber three in this category, Christian Mira. TennisprofessionalsSergiBrugueraandCarlesCostaalsotookpartintheevent.

Fluidra’ssponsorshipprogrammefinancedthewheel-chairsusedbytheplayers.

Social/Solidarity areaMultiple Sclerosis Foundation (FEM) www.fem.es

Fluidra supports the awareness programme “Mójate-mulla’t por la esclerosis multiple” (Take a plunge forMS),whoseaimistohelpthe40,000peoplewhosufferfromMSinSpain.

This annual public event is organised in six hundredswimmingpoolsthroughoutSpain.Fluidrahasactivelycollaboratedwiththiscampaign.The2007editionwasheldonSunday8thjuly.

Fundació Catalana de l’Esplai www.esplai.org

The Group collaborates with this foundation whosemissionistoeducatechildrenandyoungpeople intheirfreetimeandpromoteassociativedevelopmentandsocialinclusion. The Centre Esplai’s new headquarters, whichhaveaswimmingpoolinstalledbyFluidra,arelocatedinasustainableandaccessiblebuilding.

Cultural areaPalau de la Música Catalanawww.palaumusica.org

ThePalaudelaMúsicaCatalanainBarcelonaisoneofthe main concert halls in the world. Considered oneof the best architectural examples of Modernism, itwasbuiltbythearchitectLluisDomenechiMontanerbetween 1905 and 1908. In 1997 it was declared anationalmonumentbyUNESCO.

AsaProtectiveMemberoftheFundacióOrfeóCatalà-Palau de la Música Catalana, Fluidra contributes topromotingmusicalculture.

7.1. Sponsorship and patronage (4.12,4.13)

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Gran Teatre del Liceuwww.liceubarcelona.com

FluidrahasbeenapatronoftheGranTeatredelLiceufor many years. In 1847, an opera theatre was builton the Rambla de Barcelona. Since then it has beena major cultural and artistic centre and is one of thelandmarks of the city. Currently, it is a public theatrejointly owned by the Generalitat de Barcelona, theBarcelonaCityCouncil,theDiputaciodeBarcelonaandtheMinistryofCulture,andrunbytheGranTeatredelLiceu Foundation. In addition to these organisations,theFoundationissupportedbythePatronageCouncilandtheformerSocietyoftheGranTeatredelLiceu.

Fundació Privada Sant Vicenç d’Estamariu (PrivateFoundation)

Fluidraalsoparticipatesinthemaintenanceofhistori-calandartisticmonumentsthroughtherenovationofworksofpublicinterest,suchasRomanesquechurches,throughitssupporttotheFundacióPrivadaSantVicençd’Estamariu.

International initiativesOnaninternationallevelFluidrasupportscharityorgan-isationssuchastheCasalCatalaninShanghai(China)and offers backing to local programmes in Australia,through donations of equipment to swimming poolsforthedisabled.

Going Public, a reward for our effort and the right choice On November 21st 2007, the group was awarded theprize “Business Decision of the year” by the prestig-iousCatalanbusinessweeklyDossierEconòmicfor itsflotationonthestockmarketonOctober31stof thatsameyear.

Only nine days later, on November 30th, Fluidra’sFinanceDepartmentwasgivensecondprizeasafinalistintheFinancialExecutiveoftheyearAward,presentedbytheSpanishAssociationofCompanyFinanciersandTreasurers(ASSET).Thejuryvaluedthegroup’seffortsto adapt to the new situation and the efficiency ofFluidra’s Financial Department in the different prepa-rationstagesforthecompany’sflotation.7.2.UnitedNationsGlobalCompact

7.2 United Nations Global Compact

Barcelona, august 2007InAugust2007FluidrabecameamemberoftheGlobalCompact, promoted internationally by the UnitedNations(UNO)andruninSpainbytheSpanishAssocia-tionfortheWorldPact(ASEPAM).Membershipimpliesa firm commitment to working towards and develop-ingcorporateresponsibility.

TheaimoftheGlobalCompactistoachievevoluntarycommitment from companies to social responsibil-itythroughtheintroductionof10Principlesbasedonhuman rights, working conditions, the environmentandthefightagainstcorruption.

The 10 Principles of theGlobal Compact arebased on the UniversalDeclarationsandConven-tions,andcanbedividedas follows: two humanrights principles basedon the Universal Decla-ration of Human Rights;four working conditionsprinciplesinspiredbythe

DeclarationoftheInternationalLabourOrganisation’sdeclaration on Fundamental Principles and rights atwork; three environmental principles using the RioDeclarationonEnvironmentandDevelopmentasrefer-ence,andoneprincipleonthefightagainstcorruptionbasedontheUnitedNationsConventionagainstCor-ruption.

7.3. Commitment to human Rights

Management approach (HR.a,HR.g)Fluidra’s commitment to respect and promotion ofHumanRightsthroughallthecompaniesofthegroupwasreflectedinitsmembershipoftheUnitedNationsGlobalCompactinthesummerof2007.

The principles laid down in the Global Compact arebased on the Universal Declaration of Human Rightsand serve as a guide in all human relations, bothinternalandexternal,whichoccurasaconsequenceofFluidra’sactivity.

ThepromotionanddefenceofHumanRightsthrough-outthevaluechainofourproductsandservicesisanessentialdutyforallmembersofthegroup.Inthisrespect,Fluidraisworkingtolaythefoundationsbasedonrespectandtoputinplacethemechanismsfor the follow-up and control of operations to avoidanybreachofrights.

Objectives and performance (HR.b)The most significant tool for guaranteeing respect forHuman Rights in our companies is the Code of ConductissuedbyFluidra.Thisisinspiredbythegroup’svaluesandthe10Principlesof theGlobalCompact,andaimsto laydownclearguidelinesforethicalbehaviour,applicabletoallmembersoftheorganisation.

Inaddition,forthenextsustainabilityreport,tobeissuedin2008,weaimtoincludethefirstreportontheprogressmadeintheprincipleslaiddownintheGlobalCompact.

Policy (HR.c)Fluidra’spolicyistotreatallpeople,internallyandex-ternally,with theutmost respect, irrespectiveof theirrace, colour, sex, language, religion, political or otherbeliefs,nationalorigin,economicposition,birthoranyother condition specified in Article 2 of the UniversalDeclarationofHumanRights.

Organisational Responsibility (HR.d)Full responsibilityforcompliancewithHumanRights lieswith the Senior Management teams of the respectivecompanies, who will ensure that they have the propermechanismsinplacetopreventanddetectanynoncom-plianceandtoactaccordingly.

Training and awareness (HR.e)Althoughthereiscurrentlynoformaltraininginmattersof human rights, Fluidra provides general training toits employees which implicitly addresses the issue ofrespectandtolerancetowardsotherpeoplewithinthegroup.

Evaluation and follow-up (HR.f )Fluidra isawareof theneedtosetupand implementappropriate corporate controls in order to assesspeople’s performance within the group in terms ofhumanrights.

The forthcoming implementation of Fluidra’s Codeof Conduct will result in the creation of an “EthicalChannel” and of a dedicated Control and MonitoringCommitteethatwillberesponsibleforensuringcom-pliancewiththeCodeofConductandforfosteringthevaluesderivedfromit.

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human Rights Performance Indicators

Investment and Supply Practice (HR1,HR2yHR3)Thegroupaimsshortlytosetupalinearpolicy,basedon significant investment agreements which willincludehumanrightsclausesorbeanalysedforhumanrights compliance.The company is currently workingonthisindicatoraheadoftheintroductionofFluidra’sCodeofConduct.

Fluidraalsointendstointroducespecifictrainingplansfor employees in relation to policies and proceduresconcerninghumanrightsaspectsintheirwork.

Incidents of discrimination(HR4)Despitethelackofincidentsrelatedtodiscriminationonthegroundsofreligion,race,age,disability,maritalstatus,socialorigin,nationalityorsex,thegroupisawareoftheriskthatthistypeofincidentmayoccurinsomeofthecountriesinwhichitoperates.

Forthisreason,wepromoteequalconditionsforallemployeesinordertoensurethatthesituationremainsthesame,thatistosaywithoutanyincidents.

Fluidraaimstostrengthenitscommitmenttonondis-criminationthroughtheimplementationoftheCodeofConduct,whichiscurrentlyintheprocessofbeingreviewedandapproved.

Freedom of association and collective bargaining (HR5)Therehasbeennobreachoftherighttofreedomofas-sociationortherighttocollectivebargainingavailableto the employees of the group’s holding companies.Neitherhavewedetectedanylegalrisksderivedfromthisindicator.

Child Labour (HR6)All of the Fluidra companies included in this reportwork under the legislative frameworks established inSpain and the European Union. The group does notemployanyschool-agechildren.

Fluidra’s companies conducts frequent visits tosuppliers and partners in at-risk countries (thosecountries where there is more risk of child labour) toensurethatnochildisworkingillegally.

Forced or Compulsory labour (HR7)Thereisnorecordofanyforcedorcompulsorylabourin the holding companies, neither in the companiesincluded in this report nor in those operating incountries which are prone to cases of forced or com-pulsorylabour.Giventhenationalscopeofthisreport,norisksrelatedtoforcelabourhavebeenreported.

Security training practice (HR8)Fluidra does not employ in-house security staff.Securityservicesareprovidedbyspecialisedcompaniesapproved by the relevant national authorities as aguaranteeoflegality.

Indigenous rights (HR9)Respectforthecustoms,beliefsandcharacteristicsofthe local communities in which Fluidra operates hasbeenaconstantcommitmentofthecompany. It isanideawhichissodeeplyrootedinthegroup’sethosthatit could only result in a total lack of incidents in thisarea.

7.4. Commitment to society

Management approach (SO.a,SO.g)

CommunityThe holdings and companies that make up Fluidrabelieve in the need for establishing direct relationswiththecommunityofwhichtheyareapart,strivingtocontributetosustainabledevelopmentandsocialwelfare by collaborating with local organisations,and by respecting the surroundings and the envi-ronment.

One example which illustrates Fluidra’s commit-ment to the community is the Neokem Group. Itsgrowthstrategyisbasedonanumberofbasicpointswhicharetotallyconsistentwithitsactivityandarereflected in its policy, which is published both inpaperandcomputerformat(Q-Docdocumentman-agementprogramme).

Qualityprinciples:• To fully satisfy the needs and expectations of ourclients through the benefits gained through theprovisionofourproducts•Tocomplywithlegalrequirementsandregulationsgoverningourproducts

• To satisfy all interested parties such as workers,shareholdersandthepublicatlarge.•To assume responsibility for product quality at alllevels and for senior management both internallyand externally, and to ensure the efficiency of theQualityManagementSystemthroughregularreviewsandthe implementationofanynecessary resourcesbasedontheresultsobtained.

• Both management and all operational units arecommittedtoobservingthequalitypolicyandmusteachcontributetotheachievementoftheobjectivessetintermsofcontinuedimprovement.

Environmentalprinciples:• To prevent contamination by assessing and con-trollingthepotentialrisksderivedfromitsactivities,and to put in place an environmental managementsystem which will be integrated into the generalmanagementstructureofthegroupcompanies.

•Topromotetheuseoftechnologicalimprovementsincompanyinvestmentprojects.

• To guarantee the correct handling of naturalresourcesandavoidanyusewhichcouldaffecttheirecologicalbalance.

•Totrainandmotivatepersonnelsotheyareawarethatgoodenvironmentalbehaviourshouldbeafun-damentalelementintheiractivitiesbothinsideand

outsidethecompany.

• To comply with relevant legal requirements andavoidorreduceanynegativeimpactonourenviron-ment by establishing objectives and targets basedonthecontinuousimprovementofourenvironmen-talbehaviour.

•Toadviseallinterestedpartiesontheenvironmen-talaspectsoftheirproductsandensurecompliancewithallrelevantlegalrequirements.

Preventionandsafetyprinciples:• Management and governing bodies are responsi-ble for making progress in the implementation of ahealthandsafetyatworkcultureinvolvingpersonnelatalllevels•SeniormanagementmustLEADtheachievementoftargetsdefinedasaresultofthepreviouspoint• In order to implement health and safety at work,each company must develop a plan for the preven-tion of work related risks and the control of theindustrial risks inherent in their activities (seriousaccidents, storage of chemical products, etc.). Theattainment of these targets will improve workingconditions,qualityoflifeandbusinessresults.•Theknowledge,development,implementationandimprovement of the above-mentioned plans is theresponsibilityofallthemembersofthecompanyinchargeofcontinuedimprovement.

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CorruptionAlthoughnospecificcorporateprocedureshavebeenimplemented, Fluidra’s companies promote completetransparency in their activities and reject any form ofcorruptionatanylevelofthecompany.Thefollowingareconcreteexamples:• Trace Logistics: introduction of various measures toprevent corruption. Control from management androtationofdifferentcontrollers.

• SNTE and Neokem carry out financial analyses todetectandavoidcorruption.1.Internalfinancialaudits(theFinancialControllerandthefinancial-administrativedirectorof theholdingasFluidrapersonnel).Externalfinancialaudits(KMPG)2.Qualityaudits(bothinternallyforholdingpersonnelandexternallyforclientsandTUV).3. There are also internal administrative processesfor departmental control, budget control, monthlyreporting.Fluidraalsoholdsfollow-upmeetings.

4.Finally,Fluidra’staxdepartmentalsohasadirectin-volvementintheholding’sactivities.

• ASTRAL POOL GROUP: Among its main tasks, thefinance department watches out for possible corrup-tion,carryingoutvisitstocompanieswithinthegroup.Duringthesevisitschecksaremadeonpaymentsmadeandreceivedinordertoensurethattheycorrespondtothetransactionsmadebythecompany.

Public Policy AllFluidra’scompaniescomplywithcurrentlegislationandwiththeirestablishedpublicobligations,withoutmakingdonationstopoliticalpartiesorrelatedinstitu-tions,orparticipatinginlobbyingactivities.

anti-competitive BehaviourEconomic globalisation forces Fluidra to be competi-tive,bothlocallyandinternationally,asallcompaniesin the sector compete in a global market. Fluidra’s

legal department includes clauses in its collabora-tioncontractstopreventthecompanyfrombecominginvolvedinanti-competitivepractices,andatthesametime,legalcommitteesexplaintotheholdingstheim-portance not only of avoiding unlawful conduct, butalso how to act with complete transparency in themarket.

Compliance with RegulationsNoneofthecompaniesthatmakeuptheFluidragrouphas been fined for failure to comply with regulationsof a social nature. All companies follow current regu-lations, and in most of the holdings meetings andconsultations are held, both internally (with legaladvisors, human resources and tax departments) andexternallytoensurecontinuedcompliance.Neokem, in itsdynamicof fulfilling itsstrategicsocialobjectives,linkedtopoliciestobedeveloped,manifestsits principles of Quality, Safety and Environment bysettingbasesforactionaimedatcompliancewith:

• International regulation UN-EN ISO 9001:2000 toobtaintheaddedvalueenjoyedbyitsproducts.• Regulation UN-EN ISO14001:2004 to satisfy currentenvironmental legislation, thus contributing to sus-tainabilityandimprovementoftheecosystem.• Law 31/95 for Prevention of Risk in the workplace,and its modifications to help avoid and/or preventaccidents in the workplace and professional illnessesforallworkersandotherinterestedparties.• Royal Decree 1254/1999 which approves measuresforcontrolofrisksinherentinseriousaccidentsandinwhichdangeroussubstancesareinvolved,anditsmod-ificationssuchascurrentindustrialsafetyregulations,to avoid industrial accidents and limit their conse-quenceswiththeaimofprotectingpeople,goodsandtheenvironment.• Others: transport of dangerous merchandise (ADR,IMDG)etc.

In AstralPool examples of compliance with regula-tionsinclude:theCatalunyaOfficegroup,thecategoryof wholesalers and importers of industrial chemicalproducts and perfumes (AstralExport, Pool Supplierand AstralPool Spain); the Workers Statute; the lawonthepreventionofrisksintheworkplace(policyforhealthandsafetyatwork).

Goals and Performance (SO.b)Although no firm objectives have been set, Fluidra’sconcern for its impact on the communities where it

operatescreatesanethicalcommitmentto integratethebasicprinciplesofconductandactionrelatedtohuman rights, work, the environment and the fightagainst corruption as an integral part of its strategyand operations. We promote the conciliation of theinterestsandprocessesofourbusinessactivitieswithsocialvaluesingeneral.

Policy and Organisational Responsibility (SO.c,SO.d)Fluidra’srelationshipwithgovernmentbodiesisclose,positiveanddirect.Thecompaniesthatmakeupthegroupcomplywiththeirlegalobligationsandrespectall applicable public requirements. Our commit-menttosocietyimpliesthatFluidramustadaptitselfwhile respecting its needs and obligations. Fluidra’scompaniesareknownfortheirsupporttolocalcom-munities(localcelebrations,summercourses,raffles)through sponsorship and assistance in managementandadviceforthecreationandmaintenanceoffoun-dations.

In Fluidra’s companies it is the general manager,supportedbytherestofhisdirectors(finance,humanresources, etc.) who has the operative responsibilityfor social aspects, having to adapt to the corporatestrategysetoutbyFluidra’sgeneralmanagement.

Training and awareness (SO.e)In Fluidra there have been various initiatives to traincollaboratorsandmakethemawareofsocialissues.Forexample,inWaterkemtrainingplanshavebeensetupfor environmental programmes, first aid, simulations,etc.

Evaluation and follow-up (SO.f )The companies have various processes in place,including internal and external audits, preventa-tive and corrective measures, accident and incidentinvestigation, checks into compliance with legal re-quirements, and there is also an inspection uponreceipt with the corresponding non-conformitycontrol.

Social performance indicators

aspect: community (SO1)In general there is no specific practice but impact isevaluated through external economic audits (KMPG)andinternaleconomicaudits (Fluidra). Incompaniessuch as SNTE external audits are carried out for theintegral management system (TUV) and internal

| 66 | 6�

auditsforcustomersandpersonnelformthetechnicaldepartment,aswellasinternaldepartmentaladmin-istrativeprocedures.

Other companies such as Neokem have installed anintegral management system (quality, environmentandsafety)throughouttheholding.Thissystemisreg-istered, together with its processes, procedures andinstructions,inaQ-docprogramme.Theimplementa-tionofsuchasystemimpliescontinuedimprovementthrough analysis and evaluation, with data from aseries of indicators and corrective and preventativemeasuresdesignedforthispurpose.

aspect: Corruption A possible risk of corruption in relation to suppliershas been established. To avoid internal corruption,someofFluidra’scompanieshavevariousprocedures.Idegis, Poltank or Maberplast from the Auric Poolholding have established the following criteria forselectingsuppliers(SO2):1. Search and study of suppliers able to supplyrequiredmaterials.2. Selection of the supplier who best meets the or-ganisation’sneeds.

Gifts or favours from suppliers are not accepted inanycircumstances.Therehasneverbeenanytypeofbribeandthefinalcontractingofasupplier isbasedontheevaluationofdifferentproposalsapprovedbymanagement.

ExceptintheAstralPoolgroup,where15%ofemployeeshave been trained in anti-corruption matters, therehasnotbeenanyspecifictrainingprograminFluidra’scompanies. However, the senior management teamis kept informed through management meetings,financemeetings, legalcommittee,humanresourcescommitteeandexternaladvisers(SO3).

During 2007 there were no incidents of corruption,so it has not been considered relevant to carry outan exhaustive analysis control in the companies.Nevertheless, we are working on standardisation ofanti-corruption controls for the whole group. If anyanomaly is detected the corresponding internal no-tification is made and if necessary, the competentauthoritiesareinformed(SO4).

aspect: Public policy Fluidra has not taken part in any lobbying activities

or adopted a position with regard to public politicsandtherehavenotbeenanymonetarydonationstopoliticalpartiesorrelatedinstitutions(SO5,SO6).

aspect: anti-competitive behaviourThere have been no incidents of market sharing ordividing with competitors, market prices have notbeen directly or indirectly fixed through agreementswith competitors nor has there been any abuse ofposition; we have not applied unequal conditions toequalsuppliersnorhavewesubordinatedcontractsbyacceptingunrelatedconditions(SO7).

aspect: Compliance with regulations Fluidrahasnotreceivedanysanctionorfinederivedfrom its failure to comply with laws and regulations(SO8).

7.5. Commitment to ProductResponsibility

Customer health and safety (PR1,PR2)Fluidra’sholdingsandcompaniesfocusalltheiractivi-ties on offering reliable and effective solutions withthe philosophy of total quality, clearly oriented tocustomerservice.

Products manufactured by Fluidra are correctly doc-umented with their corresponding manuals and webearinmindeverypossibleimpactonthecustomers’health and safety from the design phase, the devel-

opment of the product or service and its disposal.Fluidra’s aim is to look after the health and safety ofitscustomersinthewholelifecycleofourproducts.

In the case of distributing third party products, wedemandanECconformitycertificateforoursuppliers’products and carry out random audits with ourpartners.

The possible impact of our products on customerhealth and safety is evaluated in all phases and li-fecycles, whether by internal or external detection.They are evaluated from the initial developmentof a project, through its validation, manufacture,storage,distribution,promotion,certification(wherenecessary),throughtoitsenduseand,ofcourse,alsobearinginminditsre-useandrecycling.

Some of our companies, such as Cepex, carry outa complete check on all manufactured products,whethertheyareaccessoriesorvalves,andthisallowsthem to detect and correct any details which mayharmtheenduser.

In manufacturing companies with chemical compo-nents, the impact on health and safety is evaluatedduring the process of selection of raw materials,selectingonlythosesubstancesthatarenotregulatedorbannedbyanynationalorEuropeanregulationsinterms of danger to people (substances classified ascarcinogenic,mutagenic,toxicforreproduction,etc.)andtheenvironment(watertoxicity,toxicityforbirds,biodegradability, potential for bioaccumulation).These measures are complemented by national andEuropeanlegislationonpackagingmaterial.

In 2007 there were no incidents related to customerhealthandsafety.

Labelling of products and services(PR3,PR4,PR5)Fluidra’s firm commitment to transparency isreflected in its products through a very strict man-agement policy concerning labelling. All productsmust carry instructions for use and/or necessaryrecommendations, as well as the correspondingtechnical specifications, assembly and starting in-structions,numberofpeopleneeded,timerequired,guarantee,informationdiagrams(forexample,donotthrowawayif it isanelectricalappliance,packagingmaterials,compliancewithregulations), information

aboutthemanufacturerwhentheproductisdistrib-uted by a third party, EC certifications, and a serialnumber which allows us to trace all of its compo-nents. All tickets on Fluidra’s products comply withspecificregulationsforeachtypologyanduse.

In some companies which manufacture machinery,oncetheproductiscompleteditisassembledonthecustomers’ premises and once it has been started,both the client and the installer fill in a verificationform which confirms the correct installation andstartingofthemachine.

CustomersatisfactionsurveysarecarriedoutandtheresultsareanalysedannuallyaspartoftheStrategicPlans of Fluidra’s companies. In the case where anytype of dissatisfaction is detected, appropriate cor-rectiveorpreventativemeasuresaretaken.Wewouldliketosaythatin2007therewasnocaseofdissatis-factionregardingthelabellingofourproducts.

In2007therewasnoinstanceofnon-compliancerelatedtothelabellingofproductsandservices.

Marketing communications (PR6,PR7)ThecommunicationandmarketingemployedbyFluidratostrengthenitsproductsisbasedontransparencyandfaithfullyreflectsrealityrespectingregulationsandtheconsumerwithoutanydeceit.

Óptimo

Pésimo

0

0,5

1

1,5

2

2,5

3

3,5

4

2007

2006

Commercial attention

Goodsdelivery

(agencies)

S.a.T. after sales service

Competence

3,6 3,6

3,33,4

3,5 3,5

3,7 3,7

3,5 3,53,4

3,5

Product

4,5

5

aVERaGE TOTaL VaLUaTIONS Customer questionnaires

| 6� | 6�

developmentofnewproducts,butalsointheimprove-mentofexistingones.

• PQPThroughthequarterlyqualityreportPQP(ProductQualityProject),weobtainalistofproductswhichhavesufferedfrom some kind of anomaly. Subsequently, and throughmeetingswithproductionplants,correctivemeasuresarecontrolledandtaken,whicharekeptinadatabaseintheTechnicalDepartment.

• PDBThePDB(ProductDataBase)isaccessiblethroughAstralPool’s website, where documentation related to thegeneral swimming pool catalogue can be consulted.ThePDBhasbeenpreparedtoshowdifferentmarketsaccording to the country chosen. All the documenta-tionisaccessibleandcanbedownloaded.

Organisational Responsibility (PR.d)ThepersonresponsibleforproductresponsibilityistheHoldingDirector.ThisresponsibilityisdelegatedfirstlytotheAreaDirector,FactoryDirectorsandManagers.

The company’s technical departments are responsi-ble for the creation, modification and improvementof products according to customers’ needs, as wellas for compliance with legal requirements and therequirements of Quality, Safety and EnvironmentalManagementSystems.

Training and awareness (PR.e)In order to guarantee the quality of the products wemanufacture,manufacturingpersonnelare trainedsotheycancarryouttheirjobtothebestoftheirabilitiesbygivingthemthebestpossibletechnicalknowledgeand working conditions. Training is planned withrespect to product safety and is included in Fluidra’sGeneralTrainingPlan.

As well as training procedures, there are also otherchannels of communication for information andawarenessforallinterestedparties(workers,customers,society,etc.)activelytakingpartineventsandholdingseminars directed both at internal staff as well ascustomersandsuppliers.

Evaluation and Follow-up (PR.f )AAllthegroupscompanieshavelaiddownproceduresforevaluationsandfollowupwithrespect to internalaudits, review of the system by management checks

on the fulfilment of legal and other requirements, in-spection on receipt, inspection in process, tests forthe approval of sensitive processes, non-conformitychecks, corrective and preventive measures and thereturnofmerchandise.

Ingeneralthetechnicalofficeisresponsibleforproduc-tionfollow-up,aswellasforcarryingoutanynecessarycorrective or preventive measures. With reference tothe delivery chain, the warehouse manager checksthe material which arrives from our suppliers, and ifit is defective the corresponding corrective measuresare taken, which in many cases means the returnof the material and its replacement with materialof the required quality to meet the demands of ourcustomers.

As far as imported materials used in the productsmanufactured by Fluidra are concerned, all relevantcertification and authorisations are required, and inthecaseofwater treatmentproducts forhumancon-sumptionafoodcertificationfromtheHealthMinistryofthecountryoforiginisrequired.

Allproductsinourdomesticrangeundergoarandomcheckandareanalysedtomakesurethattheycomplywith relevant characteristics. In the case of semi-in-dustrial equipment, the technical development isresponsible for checking them once the productionprocess is complete, through the use of check lists,paying special attention to the critical points of theproductbeforesendingittothecustomerandstartingitup.

The most frequent channels of communication usedinFluidra’scompaniesarewebpages,cataloguesandtariffs, articles in specialized magazines, advertise-mentsinthewrittenpressandpresentsinnationalandinternationalfairsandexhibitions.

In 2007 there were no incidents related to marketingcommunications.

Customer privacy(PR8)Spanish legislation clearly states the limits of an in-dividual’s privacy and Fluidra respects and faithfullycomplieswiththerequirementsofthedataprotectionlaw.

Fluidra’s security and privacy policy has meant thatthere have been no incidents derived from it in theperiodandcoverageofthisreport.

Compliance with regulations (PR9)Fluidracontinuestoworktoreducetherisksintheareaofproductresponsibilityandactivelycollaborateswithpublic administrations to clarify any doubt about itsproducts. During 2007 there were 16 requests for in-formationwhichdidnotimplyanyeconomicsanctionforFluidrainanycase.

Goals and performance (PR.b,PR.g)As a rule Fluidra’s companies aim to have more andmoreecologicalproduct lines,studyingthedesignofarticles to make them easier to use and eliminatinghandlingrisksforthecustomer.

All the objectives with respect to Fluidra’s productscan be found in the company’s Quality Goals. On agenericlevelweareworkingtowardsthemanufactureofproductswhich:• Satisfythecustomerintermsofperformance,qualityandsafety.• Comply with the corresponding regulations, es-pecially in matters of health and safety for the endconsumer.• Meet the specifications required by the customerandthosepublishedinlabels,manuals,leaflets,andalltypesofassociateddocumentation.• Aremoresustainablewithrespecttotheirlifecycle.

Policies (PR.a,PR.c)Ingeneral,allofFluidra’scompanieshavepolicieswithrespecttoproductresponsibility.InthecaseofCepex,for example, the company centres all its activity onoffering the market efficient solutions based on fiveprinciples: investigation, technology, quality, serviceandrespectfortheenvironment,inordertoguaranteea reliable product which fulfils the needs of marketssuchasthemanufacturing,irrigation,watertreatmentandswimmingpoolsectors.

Allthegroup’spoliciesarecommittedto:• Completesatisfactionoftheneedsandexpectationsofourcustomersthroughthebenefitsgainedfromourproductsandservices• Compliancewithlegalrequirementsandregulationsapplicabletotheproducts,aswellasadvisinginterest-ed parties on environmental aspects and demandingthattheyfulfilallnecessarylegalrequirements• Responsibilityforproductqualityatalllevelsensuringthe effectiveness of the quality management systemused, through regular checks and the supply of anynecessaryresourcesinviewoftheresultsobtained

OneexampleofthisisAstralPool,whichhasthreemaintoolstodevelopproductresponsibility:

• Product committee Astral Pool product projects are controlled by theProductCommittee,whichintegratesthecommercialvision, marketing and productive and technical areasindecisionmakinganddefinestherequirementsfortheproductsrejectingthosewhichdonotcomply.In2007aproductcommitteewascreatedinnorthernEurope and the USA to gauge market awareness intheswimmingpool industry. Inthisway,wecanofferthequalitythatthesecountriesexpectnotonlyinthe

| �0 | � 1

GRI G3 CONTENTS

1 STRaTEGy aND aNaLySIS Página

1.1Statementfromthemostseniordecision-makeroftheorganisation(e.g.CEO,chair,orequivalent

seniorposition)abouttherelevanceofsustainabilitytotheorganisationanditsstrategy. 4-5

1.2 Descriptionofkeyimpacts,risks,andopportunities. 4-5

2 ORGaNISaTION PROFILE Página

2.1 Nameoftheorganisation. 11

2.2 Primarybrands,products,and/orservices. 11

2.3Operationalstructureoftheorganisation,includingmaindivisions,operatingcompanies,subsidi-

aries,andjointventures.14

2.4 Locationtheorganisation’sheadquarters. 7,11

2.5Numberofcountrieswheretheorganisationoperates,andnamesofcountrieswitheithermajor

operationsorthatarespecificallyrelevanttothesustainabilityissuescoveredinthereport.15

2.6 Natureofownershipandlegalform. 25

2.7Marketsserved(includinggeographicalbreakdown,sectorsserved,andtypesofcustomers/benefi-

ciaries).15

2.8

Scaleofthereportingorganisation,including:

•Numberofemployees;

•Netsales(forprivatesectororganisations)ornetrevenues(forpublicsectororganisations);

•Totalcapitalisationbrokendownintermsofdebtandequity(forprivatesectororganisations);and

•Quantityofproductsorservicesprovided.

11,34,37

2.9

Significantchangesduringthereportingperiodregardingsize,structure,orownershipincluding:

•Thelocationof,orchangesinoperations,includingfacilityopenings,closings,andexpansions;and

•Changesinthesharecapitalstructureandothercapitalformation,maintenance,andalteration

operations(forprivatesectororganisations).

12

2.10 Awardsreceivedinthereportingperiod. 12

3 REPORT PROFILE Página

3.1 Reportingperiod(e.g.fiscal/calendaryear)forinformationprovided. 7

3.2 Dateofmostrecentpreviousreport(ifany). 7

3.3 Reportingcycle(annual,biannual,etc.) 7

3.4 Contactpointforquestionsregardingthereportoritscontents. 7

3.5

Processfordefiningreportcontent,including:

•Determiningmateriality;

•Prioritisingtopicswithinthereport;and

•Identifyingthestakeholderstheorganisationexpectswillusethereport.

7,19

3.6Scopeofthereport(e.g.countries,divisions,subsidiaries,leasedfacilities,jointventures,suppli-

ers).SeeGRIBoundaryProtocolforfurtherguidance.7

3.7 Stateanyspecificlimitationsonthescopeorboundaryofthereport 7

8 INDEX OF GRI CONTENTS (3.12)

| �3

3.8

Basisforreportingonjointventures,subsidiaries,leasedfacilities,outsourcedoperations,and

otherentitiesthatcansignificantlyaffectcomparabilityfromperiodtoperiodand/orbetween

organisations.

9

3.9Datameasurementtechniquesandthebasesofcalculations,includingassumptionsandtechniquesunderly-

ingestimationsappliedtothecompilationofIndicatorsandotherinformationinthereport.9

3.10

Explanationoftheeffectofanyrestatementsofinformationprovidedinearlierreports,andthereasonsfor

suchrestatement(e.g.mergers/acquisitions,changeofbaseyears/periods,natureofbusiness,measurement

methods).

9

3.11Significantchangesfrompreviousreportingperiodsinthescope,boundary,ormeasurement

methodsappliedinthereport.9

3.12 TableidentifyingthelocationoftheStandardDisclosuresinthereport. 9

3.13

Policyandcurrentpracticewithregardtoseekingexternalassuranceforthereport.Ifnotincluded

intheassurancereportaccompanyingthesustainabilityreport,explainthescopeandbasisofany

externalassuranceprovided.Alsoexplaintherelationshipbetweenthereportingorganisationand

theassuranceprovider(s).

9

4 GOVERNaNCE, COMMITMENT aND STaKEhOLDER PaRTICIPaTION Página

4.1Governancestructureoftheorganisation,includingcommitteesunderthehighestgovernancebody

responsibleforspecifictasks,suchassettingstrategyororganisationaloversight.25

4.2IndicatewhethertheChairofthehighestgovernancebodyisalsoanexecutiveofficer(and,ifso,

theirfunctionwithintheorganisation’smanagementandthereasonsforthisarrangement).26

4.3Fororganisationsthathaveaunitaryboardstructure,statethenumberofmembersofthehighest

governancebodythatareindependentand/ornon-executivemembers.26

4.4Mechanismsforshareholdersandemployeestoproviderecommendationsordirectiontothehigh-

estgovernancebody.27

4.5

Linkagebetweencompensationformembersofthehighestgovernancebody,seniormanagers,

andexecutives(includingdeparturearrangements),andtheorganisation’sperformance(including

socialandenvironmentalperformance).

27

4.6 Processesinplaceforthehighestgovernancebodytoensureconflictsofinterestareavoided. 27

4.7Processfordeterminingthequalificationsandexpertiseofthemembersofthehighestgovernance

bodyforguidingtheorganisation’sstrategyoneconomic,environmental,andsocialtopics.27

4.8Internallydevelopedstatementsofmissionorvalues,codesofconduct,andprinciplesrelevantto

economic,environmental,andsocialperformanceandthestatusoftheirimplementation.19

4.9

Proceduresofthehighestgovernancebodyforoverseeingtheorganisation’sidentificationand

managementofeconomic,environmental,andsocialperformance,includingrelevantrisksand

opportunities,andadherencetoorcompliancewithinternationallyagreedstandards,codesof

conduct,andprinciples.

21,28

4.10Processesforevaluatingthehighestgovernancebody’sownperformance,particularlywithrespect

toeconomic,environmentalandsocialperformance.28

4.11Explanationofwhetherandhowtheprecautionaryapproachorprincipleisaddressedbytheor-

ganisation.28

4.12Externallydevelopedeconomic,environmental,andsocialcharters,principles,orotherinitiatives

towhichtheorganisationsubscribesorendorses.29,61

GRI G3 CONTENTS

4.13

Membershipsinassociations(suchasindustryassociations)and/ornational/internationalorganisa-

tionsinwhichthecompany:

•Haspositionsingovernancebodies;

•Participatesinprojectsorcommittees;

•Providessubstantivefundingbeyondroutinemembershipdues;or

•Viewsmembershipasstrategic.

29,61

4.14 Listofstakeholdergroupsengagedbytheorganisation. 30

4.15 Basisforidentificationandselectionofstakeholderswithwhomtoengage. 30

4.16Approachestostakeholderengagement,includingfrequencyofengagementbytypeandbystake-

holdergroup.30

4.17Keytopicsandconcernsthathavebeenraisedthroughstakeholderengagement,andhowthe

organisationhasrespondedtothosekeytopicsandconcerns,includingthroughitsreporting.32

ECONOMIC PERFORMaNCE INDICaTORS Página

EC.a

Managementapproach:

•Economicperformance

•Marketpresence

•Indirecteconomicimpact

33

EC.b Goalsandperformance 34

EC.c Policy 34

EC.d Additionalcontextualinformation 34

EC1

Directeconomicvaluegeneratedanddistributed,includingincome,operatingcosts,employees’

pay,donationsandotherinvestmentsinthecommunity,non-distributedprofitsandpaymentto

capitalprovidersandgovernors

28,34

EC2Financialconsequencesandotherrisksandopportunitiesfortheorganisationduetoclimate

change34,57

EC3 Coverageoftheorganisation’sobligationsintermsofsocialbenefitprogrammes 37

EC4 Significantfinancialaidreceivedfromgovernments 37

EC5Rangeofrelationsbetweeninitialstandardwageandlocalminimumwageinareaswithsignificant

operations37

EC6Policy,practiceandproportionofcostscorrespondingtolocalsuppliersinareaswithsignificant

operations36

EC7Proceduresforlocalrecruitmentandproportionofseniormanagementfromtheloalcommunityin

areaswithsignificantoperations.37

EC8Developmentandimpactofinvestmentininfrastructuresandservicesofferedmainlyfortheben-

efitofthepublicthroughcommercialcommitments,probonoorinkind.33

EC9Understandinganddescriptionofsignificantindirecteconomicimpactincludingtheextentofsaid

impact.37

ENVIRONMENTaL PERFORMaNCE INDICaTORS Página

GRI G3 CONTENTS

| �� | � �

EN.a

Managementapproach:

•Materials

•Energy

•Water

•Biodiversity

•Emissions,effluentsandwaste

•Productsandservices

•Compliancewithregulations

•Transport

•Generalaspects

49

EN.b Goalsandperformance 50

EN.c Policy 50

EN.d OrganisationalResponsibility 50

EN.e Trainingandawareness 51

EN.f Evaluationandfollow-up 51

EN.g Additionalcontextualinformation 52

EN1 Materialusedbyweightorvolume 52,53

EN2 Percentageofmaterialusedwhichhasbeenrecycled 52,53

EN3 Directconsumptionofenergybrokendownbyprimarysources 54

EN4 Indirectconsumptionofenergybrokendownbyprimarysources 54

EN5 Energysavingsduetostorageandefficiencyimprovements 54

EN6Initiativesforprovidingenergyefficientproductsandservicesorbasedonrenewableenergyandreduc-

tionsinconsumptionofenergyasaresultoftheseinitiatives54

EN7 Initiativestoreduceindirectconsumptionofenergyandreductionsachievedwithsaidenergy. 54,58

EN8 Totalwatercollectionbysources 56

EN9 Watersourcessignificantlyaffectedbywatercollection 56

EN10 Percentageandtotalvolumeofrecycledandreusedwater 56

EN11

Descriptionoflandadjacenttoorlocatedinprotectednaturalareasorareasofunprotectedhighbiodiversity.

Indicatelocationandsizeoflandsowed,leasedormanagedwithahighbiodiversityvalueinzonesseparated

fromprotectedareas.

56

EN12

Descriptionofmostsignificantimpactsonbiodiversityinprotectednaturalareasorareasofhighunprotected

biodiversityderivedfromtheactivities,productsandservicesinprotectednaturalareasorareasofunpro-

tectedhighbiodiversity

56

EN13 Protectedorrestoredhabitats 56

EN14 Strategiesandactionstakenandplannedforthemanagementofimpactsonbiodiversity 56

EN15

Numberofspeciesbrokendownbyriskofextinction,includedontheIUCNredlistandnational

listswhosehabitatarefoundinareasaffectedbyoperationsaccordingtothedegreeofthreatto

thespecies

56

EN16 Totaldirectandindirectemissionsofgreenhouseeffectgasesbyweight 54,57

EN17 Otherindirectgreenhouseeffectgasesbyweight 54,57

EN18 Initiativesforthereductionofgreenhouseeffectgasemissionsandreductionsachieved 57

GRI G3 CONTENTS

EN19 Emissionsofsubstancesharmfultotheozonelayerbyweight 57

EN20 NOx,SOx,andothersignificantemissionsintotheatmospherebytypeandweight 57

EN21 Totalspillageofwastewateraccordingtoitsnatureanddestination 57

EN22 Totalweightofwasteproductsmanagementaccordingtotypeandtreatmentmethod 57

EN23 Totalnumberandvolumeofsignificantaccidentalspillages 57

EN24

Weightofwasteproductstransported,imported,exportedortreatedwhichareconsidereddanger-

ousaccordingtotheBaselconvention,AnnexesI,II,III,VIIIandpercentageofwastetransported

internationally

57

EN25Identification,sizeandstateofprotectionandbiodiversityvalueofwaterresourcesandrelated

habitatssignificantlyaffectedbywaterspillageorrun-offfromthereportingorganisation56

EN26Initiativetoreducetheenvironmentalimpactofproductsandservicesanddegreeofreductionof

thisimpact57

EN27Percentageofproductssoldandpackagingmaterialsrecoveredattheendofitsusefullifebyprod-

uctcategory57

EN28Costofsignificantfinesandnumberofnon-monetarysanctionsforfailuretocomplywithenviron-

mentalregulations58

EN29Significantenvironmentalimpactofthetransportofproductsandothergoodsandmaterialsused

fortheactivitiesoftheorganisationsuchastransportofpersonnel58

EN30 Breakdownbytypeoftotalenvironmentalcostsandinvestments 33

3 SOCIaL PERFORMaNCE INDICaTORS Página

WORK RELaTED PRaCTICE

LA.a

Managementapproach:

•Employment

•Labour/Managementrelations

•Healthandsafetyatwork

•Trainingandeducation

39

LA.b Goalsandperformance 40

LA.c Policy 39

LA.d OrganisationalResponsibility 39

LA.e Trainingandawareness 40

LA.f Evaluationandfollow-up 39

LA.g Additionalcontextualinformation 40

LA1 Breakdownoftheworkforcebytypeofemployment,bycontractandbyregion 42

LA2Totalnumberofemployeesandaverageturnoverofemployeesbrokendownintogroupsofage,

sexandregion42

LA3 Socialbenefitsforfull-timeemployeesnotofferedtotemporaryorpart-timeemployees 43

LA4 Percentageofemployeescoveredbycollectivebargaining 43

LA5Minimumperiodsofnoticerelativetoorganisationalchangesincludingwhetherthesenoticesare

specifiedincollectivebargainingagreements43

GRI G3 CONTENTS

| �6 | � �

LA6Percentageofworkersrepresentedonmanagement-employeehealthandsafetycommittees,set

uptohelptocontrolandadviseonhealthandsafetyatworkprogrammes44

LA7 Absenteeismrates,professionalillness,dayslostandnumberofworkrelatedfatalitiesbyregion 45

LA8Education,training,advice,riskpreventionandcontrolprogrammesappliedtoworkers,theirfami-

liesormembersofthecommunityinrelationtoseriousillness45

LA9 Healthandsafetymatterscoveredbyformalagreementswithtradeunions 44

LA10 Averagehoursoftrainingperyearperemployeebrokendownbyemployeecategory 46

LA11Programmesforcontinuoustrainingandskillsmanagementwhichpromotetheemployabilityof

employeesandsupportstheminthemanagementoftheendoftheirprofessionalcareers46

LA12 Percentageofemployeesreceivingregularprofessionalperformanceanddevelopmentvaluations 47

LA13Compositionofcorporateandstaffgoverningbodiesbrokendownbysex,agegroup,minority

groupsandvariousotherindicators48

LA14 Basicwagesbetweenmenandwomenaccordingtoprofessionalcategory 48

hUMaN RIGhTS

HR.a

HR.aManagementapproach:

•Investmentandsupplypractice

•Non-discrimination

•Freedomofassociationandcollectivebargaining

•Abolitionofchildlabour

•Preventionofforcedandcompulsorylabour

•Complaintsandgrievancepractices

•Securitypractices

•Indigenousrights

62

HR.b Goalsandperformance 63

HR.c Policy 63

HR.d Responsibilityoftheorganisation 63

HR.e Trainingandawareness 63

HR.f Evaluationandfollow-up 63

HR.g Additionalcontextualinformation 62

HR1 Percentageandtotalnumberofsignificantinvestmentagreementswhichincludehuman 64

HR2Percentageofmaindistributorsandcontractorswhohavebeensubjectedtohumanrightsanalysis

andmeasuresadoptedasaconsequence64

HR3Totalemployeetraininghoursonpoliciesandproceduresrelatedtohumanrightaspectsrelatedto

theiractivities,includingpercentagesofemployeestrained64

HR4 Totalnumberofdiscriminationincidentsandmeasurestaken 64

HR5Activitiesofthecompanyinwhichtherighttofreedomofassociationandcollectivebargainingmaybeatrisk

andmeasurestakentosupportthoserights64

HR6Activitiesidentifiedwhichcarryapotentialriskofchildexploitationandmeasuresadoptedfor

theirelimination64

GRI G3 CONTENTS

HR7Operationsidentifiedashavingasignificantriskofcausingepisodesofforcedorcompulsoryla-

bourandmeasurestakenfortheirelimination64

HR8Percentageofsecuritypersonneltrainedinhumanrightspoliciesandproceduresrelevanttotheir

activity64

HR9 Totalnumberofincidentsrelatedtobreachesofnativerightsandmeasurestaken 64

SOCIETy

SO.a

SO.aManagementapproach:

•Community

•Corruption

•Publicpolicy

•Anti-competitivebehaviour


64

SO.b Goalsandperformance 67

SO.c Policy 67

SO.d OrganisationalResponsibility 67

SO.e Trainingandawareness 67

SO.f Evaluationandfollow-up 67

SO.g Additionalcontextualinformation 64

SO1Nature,extentandeffectivenessofprogrammesandpracticesfortheevaluationandmanagement

oftheimpactofoperationsoncommunitiesincludingentry,operationandexitofthecompany31,67

SO2 Percentageandtotalnumberofbusinessunitsanalysedwithrespecttoriskrelatedtocorruption 68

SO3 Percentageofemployeestrainedintheorganisation’santi-corruptionpoliciesandprocedures 68

SO4 Measurestakeninresponsetocorruptionincidents 68

SO5 Positioninpublicpoliciesandparticipationintheirdevelopmentandlobbyingactivities 68

SO6Totalvalueoffinancialcontributionsandcontributionsinkindtopoliticalpartiesorrelatedinstitu-

tionsbycountry68

SO7Totalnumberofactionsforcausesrelatedtomonopolisticpracticesandagainstfreecompetitionand

theirresults68

SO8Financialvalueofsignificantsanctionsandfinesandtotalnumberofnon-monetaryfinesderived

fromfailuretocomplywithlawsandregulations68

PRODUCT RESPONSIBILITy

GRI G3 CONTENTS

| �� | � �

PR.a

PR.aManagementapproach:

•Customerhealthandsafety

•Labellingofproductsandservices

•Marketingcommunications

•Customerprivacy


70

PR.b Goalsandperformance 70

PR.c Policy 70

PR.d OrganisationalResponsibility 71

PR.e Trainingandawareness 71

PR.f Evaluationandfollow-up 71

PR.g Additionalcontextualinformation 70

PR1

Phaseofthelifecycleoftheproductsandserviceswhichareevaluatedforimprovementandtheir

impactoncustomerhealthandsafetyandpercentageofcategoriesofsignificantproductsand

servicessubjecttosuchevaluationprocedures

68

PR2

Totalnumberofincidentsderivedfromfailuretocomplywithlegalregulationsofvoluntarycodes

relatedtotheimpactofproductsandservicesonhealthandsafetyduringtheirlifecycle,distrib-

utedbytypeofresultforsuchincidents

68

PR3Typesofinformationaboutproductsandservicesrequiredbycurrentproceduresandregulationsandpercent-

ageofproductsandservicesubjecttosuchrequirements69

PR4Totalnumberoffailurestocomplywithregulationsandvoluntarycodesrelatedtoinformationand

labellingofproductsandservicesdistributedbytypeofresultofsuchincidents69

PR5Practiceswithrespecttocustomersatisfactionincludingresultsofcustomersatisfactionstudies

results69

PR6Programmesforcompliancewithlaws,standardsorvoluntarycodesmentionedinmarketingcommunications

includingpublicity,otherpromotionalactivityandsponsorship69

PR7

Totalnumberofincidentsduetofailuretocomplywithregulationsrelatedtomarketingcom-

municationsincludingpublicity,promotionandsponsorshipdistributedbytypeofresultforsuch

incidents

69

PR8 Totalnumberofcomplaintsrelatedtorespectofprivacyandlossofcustomers’personaldata 70

PR9Thecostofsignificantfinesgeneratedbythefailuretocomplywithregulationsrelatedtothesup-

plyanduseoftheorganisation’sproductsandservices.70

GRI G3 CONTENTS

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