50th Anniversary · certificates and awards for quality and business excellence at MCC was as...

50th Anniversary

2005 Annual Report

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Contents2005 ANNUAL REPORT

Highlights 05

Message from the Chairman 06

Financial Group 09Caja Laboral 12Lagun-Aro 14Seguros Lagun-Aro 15

Industrial Group 17Automotive 21Components 22Construction 23Industrial Equipment 24Household Goods 25Engineering and Capital Goods 26Machine Tools 27Industrial Systems 28

MCC Worldwide 29

Distribution Group 31Distribution 32

Research, Training and Education 37Research Centres 38Training and Education Centres 41

Financial Statement and Trading Account 43

Sustainability Overview 49

Governance Structure 61

Corporate and Management Bodies 62

Companies Affiliated to MCC 65

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Certificates and Awards2005 ANNUAL REPORT

As in previous years, several MCC businesses received out-side endorsement in 2005 within the sphere of excellencein business management: Ahizke-CIM (Language Centre,Mondragón) and Politeknika Ikastegia Txorierri received theGold Q from Euskalit, whereas Fagor ElectrodomésticosConfort was awarded the Silver Q.

In addition, 4 Cooperatives were certified to the ISO14000 Environmental Standard, which means that MCCnow has 42 certificates in this field. Likewise, 5 certificateswere awarded for Systems for the Prevention of IndustrialHazards, OHSAS, adding to the 3 obtained in 2004, theyear in which this certification was first introduced.

At 31 December 2005, the roll of honour for endorsements,certificates and awards for quality and business excellenceat MCC was as follows:

1 European Business Excellence Award,won by Irizar.

1 Finalist for the EFQM European Award obtainedby Fagor Cocción

1 European Environmental Award, won by Orkli6 Gold Q: Caja Laboral, CIM, Copreci,

Fagor Minidomésticos, Fagor Industrial and PoliteknikaTxorierri Ikastegia.

13 Silver Q: Eroski PGM, Fresh Produce Platform of theEroski Group, Fagor Electrodomésticos Confort,Fagor Electrodomésticos Lavado, Fagor Mueble,Fagor Electrónica, Geyser Gastech, Lea ArtibaiIkastetxea, Mondragon Goi Eskola Politeknikoa, Orkli,Seguros Lagun Aro, Soraluce and Ulma Packaging.

4 registered in EMAS: Danobat, Fagor Ederlan, FagorElectrodomésticos and Maier.

1 SA 8000 Certificate for Social Responsibility awarded to Eroski.

42 ISO 14000 Environmental Certificates.8 OHSAS Certificates for Systems for the Prevention of

Industrial Hazards. �

5

Highlights at 31.12.20052005 ANNUAL REPORT

(In million euros)

BUSINESS PERFORMANCE 2004 2005 %VARIATION

MCC Total Assets 18,593 22,977 23.6MCC Equity 3,757 4,226 12.5MCC Consolidated Earnings 502 545 8.5Caja Laboral Customer Funds Managed 10,042 11,036 9.9Lagun-Aro Endowment Fund 2,995 3,303 10.3Total Turnover (Industrial and Distribution) 10,459 11,859 13.4MCC Overall Investments 730 866 18.6EMPLOYMENT

MCC workforce at year-end 70,884 78,455 10.7% members of cooperative workforce 81.1 81 _

% women members of cooperative workforce 41.7 41.9 0.5Incident/accident rate for Industrial Group 62.3 58.3 -6.4STAKEHOLDING

Shareholder capital of worker members 1,846 2,010 8.9No. worker members in Governing Bodies 826 835 1.1SOLIDARITY

Resources allocated to community schemes 25 33 32.0No, students at MCC Educational Centres 8,154 7,642 -6.3RESPONSIBLE ENVIRONMENTAL MANAGEMENT

No. ISO 14000 Certificates in force 38 42 10.5No. EMAS Certificates in force 4 4 _

LOOKING TO THE FUTURE

% Resources allocated to R+D over Value Added (I.G.) 5.1 5.5 7.8No. Technology Centres in MCC 10 11 10.0

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Message from the Chairman2005 ANNUAL REPORT

Highlights in 2005 involved the events celebrating our 50th Anniversary, the adoption of a new

organisational model for the Industrial Group and the positive trend in business ratios, which recorded a

13% increase in turnover, an 8,5% rise in earnings, investments amounting to €866m and 7,571 more

people in the workforce, which ended the year with 78,000 jobs. The year was also characterised by a

strengthening of positions in deployment abroad following the acquisition of the Brandt Group, the market

leader in the household appliance sector in France.

The snapshot for the history books was taken on 20 October 2005, the day upon which we paid homage to

the founders of our Cooperative Experience, remembering that day 50 years ago when they subscribed the

purchase of a small workshop in Vitoria for manufacturing “devices for household use”, and whose business

would lead on to the creation of Ulgor, now Fagor Electrodomésticos, the embryo of MCC. Over these

50 years, guided by a participative and humanitarian approach to work, we have transformed our

Corporation into the foremost experience worldwide in cooperative development, the leading business group

in our homeland, the Basque Country, and the seventh in Spain.

Insofar as the organisational sphere is concerned, special note should be taken of the IX Cooperative

Congress, at which the decision was taken to adapt an industrial organisation dating back to 1991 to current

requirements: doing away with the middle ground of the Groupings, streamlining the business of the

Divisions, approving Joint Stakeholders for channelling synergies between Cooperatives through temporary or

permanent alliances and setting up the Industrial Council as a coordinating body.

Jesús Catania CoboChairman of the General Council

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Special mention should be made of the decision to create a Development Centre, which is to play a key role

in supporting the development of new activities undertaken locally and in generating skilled employment with

high value added, thereby responding to the needs of our social milieu. We are convinced that it will

constitute an effective instrument for addressing those challenges that may be posed by the globalisation

process.

As for the actual data themselves, it should be stressed that the Financial Group had yet another excellent

year, both in terms of business evolution and in profitability. Caja Laboral exceeded the figure of €11,000m

in Customer Funds Managed, with a sharp increase in earnings.

The Industrial Group, too, had an extremely positive year, recording a 20% increase in turnover, a figure that

includes the contribution made by Brandt, which joined the Household Division in June, and the Electra

Cooperative, which became part of the Construction Division.

These new incorporations also boosted international sales, which accounted for 54% of the industrial total,

as well production deployment abroad, with the year concluding with 57 subsidiaries in 16 countries. I

should like to stress the strategic importance of the acquisition of the Brandt Group, which has enabled us to

reposition ourselves in the European household appliance sector, with a market share approaching 6%.

In turn, the Distribution Group continued to grow through the opening of new establishments and the ensuing

job creation, at the same time as it provided greater diversification in emerging lines of business with sound

growth expectations.

Financial Group2005 ANNUAL REPORT

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The financial sector’s trajectory in 2005 has been based onthe same foundations as the prior year, with the persistence oflow interest rates and the positive trend on the stock markets.

Within this context, MCC’s Financial Group has once againreturned an extremely positive year, benefited by a livelydemand for financing forthcoming from private customersand businesses alike, coupled with the positive contributionmade by share portfolios, which together have led to aconsiderable improvement in end performance. One of theyear’s significant events has been the implementation ofInternational Accounting Standards (IAS) by some of thecompanies within this Group, whereby it has also beennecessary to adjust their figures for the prior year to the newcriteria, so as to ensure comparison on a like-for-like basis.The degree of fulfilment of Basic Corporate Objectives in2005 may be summarised as follows.

CUSTOMER SATISFACTION

Regarding its commercial business, Caja Laboral hascontinued applying the new Customer ManagementModel, whereby it aims to cement the personal relationsbetween the entity’s managers and its customers. Progresshas also been made in the Personal Banking service, whichnow has over 1500 customers and overall fundsexceeding €450m.

In terms of business-customers, the barrier of 60,000customers has been broken, with a twofold increase in thenumber of offices in the Expansion Network dedicated tobusiness management.Furthermore, new analytical modules have been introducedin CRM.

An External Customer Satisfaction Survey has been carriedout, as well as an Internal Customer Satisfaction Survey,with implementation of a system for colleting suggestions.

The result of this entire process of customer-focus has beenthe award of several external endorsements, with highlightsbeing the excellent rating awarded to Caja Laboral by theStiga Survey on banking networks and the runners-upposition awarded by Finalta in customer satisfaction,involving 29 European financial entities, for recording afigure of 87% satisfaction, as opposed to an average of66%.

As for Seguros Lagun Aro, it is worth noting the developmentof a new website and the introduction of a TelephoneHotline for answering customer enquiries and providing aplatform for arranging policies and filing claims.

PROFITABILITY

Although low interest rates are detrimental to the brokeragemargin in the banking business, the rise in turnover, thepositive trend in results from financial operations and themoderation of general expenditure in terms of ordinaryrevenues, as revealed by an excellent efficiency ratio of41.5%, have meant an improved performance for the year,with a 31.5% rise in earnings before tax.

Likewise, note should be taken of the favourable trend ininvestment portfolio management recorded by Lagun-Aro,which has returned net earnings of 8.8%, clearly up onthe technical interest rate (5.4%) and on the averageperformance recorded by pension funds overall in thedomestic market (6.3%). In turn, Seguros Lagun Aro has

Financial Group2005 ANNUAL REPORT

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also performed extremely well, posting its second bestresults ever (€20.6m before tax), following on from theexceptional earnings in 2004 (€21.5m), when they roseby 76%.

INTERNATIONALISATION

Caja Laboral is the only company in this Group thatpursues its business on the international stage, through abroad network of correspondent banks abroad.

The volume of commercial transactions administeredabroad in 2005 amounted to an overall figure of€2,410m, with a year-on-year increase of 6.3%, beingespecially present in terms of imports. 62% of this figurecorresponded to business assigned by the cooperativesand the remaining 38% to other business customers, asegment that has recorded year-on-year growth of 12%.Eighty new contacts have been made with foreigncorrespondent banks in 2005, whereby there are nowover 1,100 external banks available to cater for theneeds of Caja Laboral customers.

DEVELOPMENT

This Group’s main turnover indicators have continued togrow in 2005, with total customer funds administered up9.9% and investment in customer lending rising by23.4%. In turn, the capitalisation of earnings returned hashelped to reinforce the robustness of the balance sheet,increasing Caja Laboral’s equity to €1,282m, up by6.6%, and Lagun-Aro’s endowment fund to €3,303m,with an increase of 10.3%. It is also worth noting that 13new branches have been opened in 2005, making a first-time appearance in Asturias with 5 branches in Gijón,and bringing the total number of branches to 355. Itshould be noted that the so-called expansion network hasattracted over 45,000 new customers in 2005. Theinsurance company, too, has opened three branches,whilst the brokerage channel has been reinforced, mainlyin Burgos and Logroño, through agencies and stockbrokeroffices.

With regard to Lagun-Aro EPSV, it should be noted thatrecord figures have been posted in the number of mutualfund holders (29,538) and pensioners (7,303).

INNOVATION

In order to provide a response to the development ofactivities of a strategic nature, in 2005 Caja Laboral hasset up its Innovation Department, designed to providedifferential advantages with regard to competitors.

The range of products this entity has to offer has beenextended with the inclusion of “factoring” and the CL NetEmpresas Account, for the management of surpluses inworking capital. ATMs and POS terminals have also beenadapted to operate with cards fitted with chips instead of amagnetic strip, as an assurance of greater security in thisservice, and a technical platform has been set up foroperational integration with Seguros Lagun Aro, therebyenlarging the catalogue of insurance products for CajaLaboral customers.

In turn, Seguros Lagun Aro has also proceeded to invest intechnology, with the aim being to reduce administrative tasksin its branch network and boost its commercial business.

SOCIAL ACTION

In terms of training, Caja Laboral has held 531 courses in2005, registering a total of 75,221 hours of formalinstruction, which have been attended by 14,190 people. Inaddition, several promotional courses have been arranged,being attended by 670 members, and aid has continued tobe provided for further studies, extending to another 55members. Overall, the number of people attending some formof training scheme accounted for 97% of the total workforce.

A further highlight in 2005 has been the fact that €9.1m havebeen allocated to Caja Laboral’s Education & DevelopmentFund, being dedicated largely to cooperative developmentand training, research and cultural and welfare activities.

Furthermore, in 2005 Caja Laboral has certified itsEnvironmental Management System to the ISO 14001:2004Standard, minimising the amount of waste generated,recycling the waste it does produce and reducing theconsumption of natural resources. The decision was taken in2005 to draw up the Sustainability Report in accordance withthe GRI 2002 Guidelines.

Amongst those aspects related to Lagun-Aro, and concerningthe provision of unemployment benefits, it should be noted thatexpenditure on this item last year amounted to €3.5m (23%up on 2004) providing a definitive solution for 68 mutual fundholders who were made redundant, as well as various aidpackages for those provisionally relocated and unemployed.Nonetheless, the reserve created for this purpose hascontinued to grow with the surplus for the year, and nowregisters the considerable sum of €56.9m. �

Caja Laboral is a credit institution set up by the industrialcooperatives. From the very beginning, it has beeninstrumental in the development of Cooperativism throughthe promotion and financing of new activities, playing a keyrole in forging what is now the Mondragón CorporaciónCooperativa.

In 2005, Caja Laboral consolidated its business modelbased on sustainable growth, which is upheld by two basicpillars, namely, the strength of its balance sheet and theconstant pursuit of productivity through innovation.Accordingly, this last year has seen the culmination of areorganising process designed to provide a morestreamlined structure, with a sharper business focus andgreater proximity to customers.

Insofar as its balance sheet is concerned, total assetsstood at around €13,700m at year-end 2005, recordinga year-on-year increase of 17% in uniform terms, onceadjusted to the IAS, as explained earlier.

Total customer funds administered by the entityamounted to €11,036m at the year-end, with an annualincrease of 9.9%. As in the prior year, this growth has beenunderpinned largely by the figures recorded on the balancesheet, mainly customer deposits and promissory notesissued, which have risen overall by 17.9%. For their part,off-balance sheet funds administered, mainly mutual andwelfare funds, have recorded a year-on-year increase of10.6%.

Equity continued its line of growth, reinforced by the returnsobtained and the demanding capitalisation policy for NetSurplus, which has driven its figure up to €1,282m. Inaccordance with the regulations of the Bank of Spain, thesolvency ratio stands at 13.0%, comfortably exceeding theminimum requirement of 8%.

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CAJA LABORALSdad. Coop. de Crédito

Administered funds(in million euros)

2003 2004 2005

9,24410,042

11,036

Equity(in million euros)

2003 2004 2005

1,043

1,2021,282

Regarding items posted under assets, customer lendinghas increased by 23.4% over the year, pushed up by thesharp rise of 25.1% recorded by secured loans, largelymortgages, although there has been extremely dynamicprogress in business funding and consumer loans. It shouldbe noted accordingly that the NPL ratio has remained ata very low level, recording a mere 0.77%.

Net investment in the securities portfolio, consisting offixed and variable income securities, as well as holdingsin Group companies, has risen to €1,424, in line with thefigure recorded at the close of the prior year, following thecorresponding value adjustment in keeping with IAScriteria.

Insofar as the year’s profitability is concerned, the majordynamism in revenues generated by customer lending andby certain swap transactions has led to a 21% in financialproducts and a 14.6% improvement in ordinary revenues,which have stood at €328m. General expenditure hasremained at similar levels to the prior year and there hasonly been an increase in the coverage provisioning linkedto growth in investment, although this has not stopped NetEarnings for the year rising to €134m, up 35.6% on thefigure recorded for 2004, adjusted as per IAS.

Along these lines, it should be stressed that the net returnsposted by Caja Laboral over its total average assetsamounted to 1.06% in 2005, a year-on-year improvementof 0.15 points. �

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Customer lending(in million euros)

2003 2004 2005

7,465

8,534

10,534

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The members of the Lagun-Aro Provident Society are mainlymembers of the cooperatives that make up the MondragónCorporación Cooperativa. Lagun-Aro’s core businessinvolves providing social welfare protection for this groupand their beneficiaries, with a similar scope to the state-runsystem.

At 31 December 2005, there were 29,538 members,distributed amongst 120 cooperatives, with a net annualincrease of 299 people.

The total benefits provided by Lagun-Aro over the course ofthe year amounted to €128m, recording a year-on-yearincrease of 4.4%.

The sum of pay-as-you-go benefits, which cater for short-termneeds, last year amounted to €58.4m, being allocatedlargely to:

· Sick leave 31.6 million euros (54% of the total)· Healthcare 19.7 million euros (34% of the total)

As in recent years, a highlight has been the positive trend inemployment aid, a benefit in which the surplus recorded,added to that already posted on the Balance Sheet, nowinvolves a fund amounting €56.9m, thereby ensuring thatall future needs will be met by this benefit that has amanifestly cyclic behaviour.

The benefits for Retirement, Widowhood and Full Disability,where coverage has to be guaranteed for extended periods

of time and for a large number of members, are financedthrough the arrangement of the appropriate funds thatguarantee the corresponding pensions. At year-end 2005,the number of pensioners stood at 7,303 people, a year-on-year increase of 419. The sums paid out under theseitems in the year amounted to 69.5m.

These capitalisation benefits are underwritten by anEndowment Fund, which at year-end 2005 amounted to€3,303m, once application had been made of the Returnsgenerated over the year by the investment portfolio held,which amounted to €264m (8.8% of the assets invested).On a year-on-year basis, the Endowment Fund has grownby €308m, an increase of 10.3%. �

Lagun-Aro, EPSV

Endowment Fund(million euros)

2003 2004 2005

2,7662,995

3,303

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2005 has been an extremely positive year for the insurancecompany Seguros Lagun Aro, at it has performed well in thepursuit of its six strategic goals: Growth, Profitability,Customer Service and Care, Innovation in ManagementSystems, Commitment to People in the Business Project andSocial Responsibility.

Turnover in premiums has stood at €159m, with €107mcorresponding to Non-Life Insurances, up 6% on 2004, and€52m to Life Assurance, a 29% downturn, given that thedrop in market interest rates has diminished the commercialappeal of certain savings products. Total revenues, takinginto account the invoicing of premiums and financialincome, have amounted to €202m.

Those products the Company considers to be a priority haverecorded steep growth and outpaced the rest of the sector.Thus, home insurances grew by 16%, business insurancesby 13%, personal accident by 16% and risk life insuranceby 15%. In a climate of market price adjustments, carinsurance has grown 2%, as opposed to a 0.8% increasein new registrations.

When attracting new risks, Seguros Lagun Aro has upheldits selective policy, which has meant a claim frequency thatis lower than for the sector overall. Furthermore, thesignificant hike in the stock markets has contributed to thegood performance of financial returns, thereby leading tothe achievement of extremely favourable overall profitability.

A highlight in commercial development has been thestrengthening of the alliance with Caja Laboral, with specialmention of the saving bank’s contribution in the segments of

Home and Personal Risk Life. Commercial and promotionalactivities have also been undertaken involving specificcustomer segments in this savings bank, with the offer of carand business insurance.

Its own commercial network has seen the opening of threenew branches in Zumaia (Gipuzkoa), Bilbao-Zabalburu andPamplona-Iturrama, and now consists of 67 branches in thedirect network in the Basque Country and Navarre.The brokerage channel, which caters for dealings withsuppliers and external agents, has seen a further twobranches opening in Zaragoza and Valladolid, joiningthose already exiting in Barcelona, Valencia, the BasqueCountry and Navarre.

As a result of this business development, the total workforceat 31.12.2005 amounted to 376 people, thirty more thanat the end of the previous year.

In order to foster the development of its distribution channels,investments have been made in technology with a view tocontributing more value added to the management of thecommercial network and reduce its administrative tasks. Anew website has also been developed, paying specialattention to the needs of the Brokerage Channel.

Finally, as a strategic milestone to be highlighted, SegurosLagun Aro has introduced the Laguntel telephone hotline forproviding support for Caja Laboral staff marketing insuranceproducts. Besides its current function of responding toenquiries about claims, prices, etc, it is hoped that in 2007it will allow for the direct arrangement of policies and theprocessing of claims. �

Seguros Lagun-Aro

Industrial Group2005 ANNUAL REPORT

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Industrial Group2005 ANNUAL REPORT

2005 has been a good year for the global economy, assignificant growth has been recorded in almost all geographicareas, overcoming the drawbacks of high oil prices. TheUnited States, Asia and Latin America have recorded majorgrowth and only Europe has shown a certain sluggishness,with a modest growth rate of 1.4% in the eurozone, albeit withsigns of a slight upturn towards the latter stages of the year.

MCC’s Industrial Group has also performed well this year,with an improvement in its reference indicators, especially inthe final months of the year, largely driven by the reneweddemand in capital goods.

On another matter altogether, a significant event in thisGroup has been the approval granted at the IX Congress toits Organisational Readjustment Project, whereby it is toproceed to set about its reorganisation in 2006, when theGroupings will disappear and there will an increase in thenumber of Divisions.

Regarding the Basic Corporate Objectives, the followingare some of the more significant achievements made duringthe year:


Progress has continued to be made in 2005 in improving thequality of product and process management, with there nowbeing 108 ISO-9000 certificates awarded and 42 ISO-14000 certificates for environmental quality.

Improvement has continued to be made in EFQMassessments, with the award in 2005 of the Silver Q to Fagor

Electrodomésticos, in its Confort business, for exceeding 400points in the appraisal made by external auditors.

These efforts devoted to enhancing quality have beencomplemented by the application of a series of corporateGood Practices, consisting of successful managementexperiences applied by certain cooperatives, which areinternally disseminated so as to act as a reference for others.Six of these Good Practices correspond to improvements incustomer satisfaction in their commercial dealings with thecooperatives in the Industrial Group.

PROFITABILITY

The positive trend in global terms has been spoilt by the risingcost of oil and raw materials, as well as by the upturn ininflation, with the ensuing negative effects on the costs oftransport, services and so forth. Accordingly, although therehas been growth in the business of the Industrial Group, theincrease in costs has hindered the achievement of asubstantial advance in profitability.

Taking the year overall, the earnings of the Industrial Group,before discounting the interest paid on Share Capital, haveincreased by 2,4% on a year-on-year basis, amounting to€255m, a figure accounting for 4.4% of turnover.

DEVELOPMENT

LThe Industrial Group’s Total Turnover in 2005 amounted to€5,760m, a year-on-year increase of 20.2%, underpinnedlargely by the incorporations of Brandt and Electra Vitoria.The steepest growth rates have been recorded in those

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divisions that have incorporated new companies: HouseholdGoods (43.0%) and Construction (26.9%). Nevertheless, inadjusted terms, the more significant increases have involvedIndustrial Systems (18.2%) and Engineering and CapitalGoods (17.1%).

So, too, has the workforce in the Industrial Group describedan upward trend, driven along by the addition of newcompanies and the continuing rise in turnover. In 2005, theIndustrial Group hired 6,481 new employees, of which overhalf corresponded to Brandt, whereby the total workforce atthe end of the year amounted to 40,121 people.

A further parameter that is indicative of the businessdevelopment is investment, which has recorded a figure of€528m in 2005, a sum that reflects a significant increase of53% over the figure recorded for the prior year, andstemming largely from the acquisition of Brandt.

INNOVATION

2005 was the first year in the implementation of the Scienceand Technology Plan 2005-2008, with a budget of €9.5m,in five areas classified as priorities: Energy, Health,Information and Communications Technologies, Materialsand Processes, and Business Management in theCooperative Sphere.

Concerning R+D, MCC now boasts twelve specialist centresin a range of technologies, which are subsequently appliedto the cooperatives. Overall, including the researchcapabilities of the university, Mondragón Unibertsitatea,

MCC has a total of 610 researchers. Added to this, itshould be noted that construction has begun at theGaraia innovation park of the first R+D building involvingmodular units, as well as the first technology centre

(Edertek) specialising in metallic materials for theautomotive industry.

A further event of some significance in 2005 was theintroduction of several new activities generated within theheart of the Industrial Group, such as Gerodan, dedicatedto specialist furnishings for hospitals and residential homes,Danorail and Goimek, in machine tools, and Elur,specialising in laminated wood structures for use in building,with the stock of this latter company being held by Lana andUrssa.

SOCIAL ACTION

As for social action, there has been continued promotion ofcooperative employment, allowing for paid workersemployed in the cooperatives to acquire the status ofcooperative members, whereby the number of members hasincreased by almost 300 people in the Industrial Group in2005.

With regard to training and education last year, thisGroup allocated €8.4m, a figure that was in line with theprior year. Concerning the Management of ExecutiveDevelopment, the Executive Training programme hascontinued (65 people), as have other specificsupplementary programmes for managers (203 people).

In Health and Safety at Work, there has been continuedimplementation of preventive measures to reduce theaccident rate, which has fallen sharply in 2005, above allamongst the group of employed workers. Along these lines,mention should also be made of the award of certificates forthe deployment of Systems for the Prevention of IndustrialHazards, as per the OHSAS benchmark, involving 8cooperatives last year, with numerous others on their way toachieving them.

Total Sales(million euros)

2003 2004 2005

4,3794,792

5,760

Workforce

2003 2004 2005

32,597 33,640

40,121


International sales, which consist of exports plus theturnover of foreign subsidiaries, amounted to €3,136min 2005, a sharp increase of 33% on a year-on-yearbasis. This has been driven by the aforementionedincorporations of Brandt and Electra Vitoria, as well asthe weakening of the euro against the dollar, which hasmade European products more competitive. As a result ofthe above, the share of international sales over the totalhas risen from 49.2% in 2004 to 54.4% in 2005.

Regarding the enlargement of production capacity in othercountries, the main advances made in 2005 have involvedthe purchases of the French firm Brandt by FagorElectrodoméstcos and the Slovak firm ZNSP Foundry by

Fagor Ederlan. Insofar as direct deployments are concerned,a highlight has been the acquisition of 85,000 square metresof land on the outskirts of Shanghai (China) for the creation ofan industrial estate that is to be home to the cooperativesOiarso, Orbea, Orkli and Wingroup. Other significantdeployments made during the year have been those ofCikautxo in Slovakia, Coinalde and Eika in Poland, Irizar inSouth Africa, Tajo in Poland and the Czech Republic and thestart of building work on industrial premises in this lattercountry undertaken by Maier.

To summarise, it may be noted that the distribution ofproduction facilities abroad at year-end 2005 involved 29plants in Europe (51% of the total), 13 in Asia (23% of thetotal), 12 in the Americas (21% of the total) and 3 in Africa(5% of the total) �

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Investments(million euros)

2003 2004 2005

312 345

528

International sales(million euros)

2003 2004 2005

2,1522,358

3,136

In a market characterised by stagnation in the demand forcars, the relocation of manufacturing to more distantcountries, the delay in the launch of new models and a 12%reduction in domestic production, Mondragón Automociónoffset the difficulties in the domestic market through exports(68%). Despite the disproportionate increases in the pricesof raw materials and the constant pressure from customersto reduce overheads, earnings exceeded €30m.

Within this difficult scenario, Fagor Ederlan Taldea firmlypursued the lines of its Strategic Plan, with a highlight beingthe acquisition of an aluminium injection plant in Slovakia.Its strategic location, close to the main markets In Centraland Eastern Europe, imbues it with major competitiveadvantages and increases the scope of its offer in Europe.Furthermore, in Mercosur, Fagor Ederlan Brasileira, hasdoubled production since its purchase and increased theGroup’s global customer portfolio.

In terms of employment, a highlight has been the decisionto build a new iron foundry in Mondragón, therebyguaranteeing the continuity of existing jobs. This project iscomplemented by the consolidation of Luzuriaga Usurbilwithin the Group and by the process of cooperativisationbegun at FIT Automoción.

Growth is based on the attraction of technologicallyadvanced projects, such as Epsilon by General Motors, theworldwide platform for the Vectra, in which Fagor EderlanTaldea has been involved in the design and development ofthe disc brakes. Mention should also be made of the awardof a disc hub for PSA and a knuckle for

Jaguar, consolidating the activity of low-pressure aluminium;the consolidation of the business of casings at LuzuriagaUsurbil and the far-reaching investments of Luzuriaga

Tafalla. Finally, Automódulos and FIT Automociónconsolidated their businesses through orders such as theCombo and VW’s PQ24 platform.

Mapsa was awarded the new tyres for Opel’s 54400project and for PSA’s P1 project, with deliveries to be madein 2006 and 2007, and made new investments in fuserequipment and new technologies, whereas Ecenarroincreased its sales by 16%, with its main customer being ZFLemförder.

Batz Sistemas increased its turnover by 5%, embarking uponthe supply of a pedal module to Fiat and incorporating thecompany Batz Mexicana in Puebla, with 50% of the stockheld by a local partner. This will help to improve itscompetitive positioning and create jobs in the cooperative.

Maier secured significant orders involving the equipping ofthe front cylinder block on mass-produced vehicles for PSAand Opel, as well as for Toyota. It also began theconstruction of a plant in the Czech Republic and, in R+D,it was considerably active in the fields of safety andaesthetics, registering five patents during the year. Cikautxoincreased its turnover by 12%, avidly seeking newbusinesses and opening a new plant in Slovakia, therebyreinforcing its presence in Eastern Europe and proceedingwith its improvement processes in the management of itsplants in Borja, Zaragoza, the Czech Republic and Brazil.

2005 was a key year for FPK in the company’sconsolidation in the market for reinforced plastic structuralcar parts, with the implementation of a new manufacturingtechnology that is unique in Spain, destined for theperformance of several projects for Renault and PSA,thereby opening promising new markets. �

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AUTOMOTIVE

(In million euros) 2004 2005

Sales 961 955

International sales 635 656

22

Mondragón Components performed well this year, withan increase in sales of approximately 7%, and 8.3% inthe international area, thus reflecting the growingcontribution made by subsidiaries abroad. This growthwas achieved against a background of major instabilityin the price of raw materials and within a context ofprogressive relocation of the household appliance sectortowards Eastern European countries.

A steadfast commitment to internationalisation clearlycontributed to the strengthening of businesses, to increasedprofitability and to the generation of employment in theparent cooperatives. This policy lent a new impetus todeployment abroad, with Orkli’s new plant in Brazil, thestart of production by Tajo in the Czech Republic and theadministrative procedures undertaken by Eika and Embegafor their installation in Poland. It should also be noted thatproduction abroad was up 35%, now accounting for 22%of the total recorded by the Division.

With regard to innovation, special mention should be madeof those activities centred on the solid oxide fuel cell, withinteresting technical and scientific breakthroughs that havegiven rise to patents, and whose expected evolution in themedium term will lead to a significant presence in thedomestic energy sector.

Major projects are also under way with Ikerlan andMondragón Unibertsitatea on the incorporation of newelectronics, wireless communications and sensortechnologies that, in the short term, will lead to new,advanced families of components for household use. Interms of innovation fora, highlights have been theinvolvement in those of Energy and ICTs, organised byMCC, and in those that foster the use of sensors andmicrosystems in Spain (Grupo Español de Sensores –Spanish Sensor Group) and in Europe (Eurimus).

White Goods recorded modest growth of 3%, on a parfor he sector, with a highlight being the excellentperformance of gas cookers and washing appliances ingeneral. A highlight in international terms was the sharpincrease in the North American market in the gas andelectric cooker sectors, the growing presence in the plasticsbusiness in Eastern Europe and the major inroads made inTurkey and the Czech Republic. Regarding innovation,progress was recorded in electronics in the field of cookers,especially in the induction business.

Home Comfort bolstered its presence in China throughthe enlargement currently in progress of the installations inShanghai and the launch of business in Brazil, with theopening of a plant in Sao Paulo. In the field of innovation,work was intensified within the sphere of cogeneration, inthe development of motorised valves and new products insecurity systems.

Sales in Electronics rose 1%, in spite of the negative euro-dollar exchange rate, with a special contribution made bythe 11% growth in Electronics Subcontracting, centredabove all on the household appliance sector. InSemiconductors, the year was again characterised by stiffcompetition, with an 8% fall in prices on a year-on-yearbasis. In the field of management, a highlight was thedevelopment of the innovation plans in the Businesses ofSemiconductors and Signal Processing and the fullrelocation of semiconductor assembly to Thailand. �

COMPONENTS


Sales 479 510


Mondragón Construction again returned an excellentperformance in the year. Its turnover rose 27% following theincorporation of Electra Vitoria, a cooperative thatcontributes significant technological and operationalsynergies to the common project, together with a majorinternational dimension.

In adjusted terms, the figures for the Division were equallyimpressive, recording a year-on-year increase of 15%.Emphasis should be placed on the high level of net returns,at 8% over sales, the doubling of international sales with re-gard the prior year and the significant generation of employ-ment, with 353 new jobs. Likewise, note should be taken ofthe launch of the new Elur Cooperative by Lana and Urssa.

The Vertical Transport Sector grew by 20% in adjustedterms, amounting to €386m, and at the year-end it had anorder-book that was more than 37% up on 2004. Theincorporation of Electra boosted international projectionwith its three production plants in France, Mexico and theUnited Kingdom, with reference also made to the majorimpetus Orona gave to business activity in Russia, Ireland,Mexico, France, Scandinavia and the United Kingdom. Allof which combined generated a 22.5% increase ininternational sales.

Highlights in terms of installations during the year were thenew stages in Telefónica’s Ciudad de las Comunicaciones(Communications City) in Madrid and the contract awardedfor the lift systems in the Nueva Condomina shopping cen-tre in Murcia, the La Vital shopping centre in Gandía, LasMargas Hotel and Golf Club in Sabiñánigo, the QuirónClinic in Barcelona and the Abatxolo and Portugalete metrostations in Bilbao.

In Structures and Maintenance, Urssa grew by morethan 39%, securing or carrying out the following major

projects: in industrial building, the Enel combined cyclepower plant in Escatrón (Zaragoza), the laminating premisesfor Siderúrgica Balboa in Jerez de los Caballeros (Badajoz)and the enlargement of the premises for the steelworksAceralia Perfiles Olaberría; in urban development, theMegapark leisure centre in Bilbao and the Torre de Cristal(Glass Tower) in Madrid; and in public works, severalbridges in Spain, France, Denmark (Copenhagen) andAndorra, as well as the l´Elle viaduct in France.

Ecotècnia recorded sales in 2005 amounting to €183mand was awarded major orders in advanced countries suchas Italy, Japan, France and Portugal, ending the year with asound order-book abroad. Furthermore, it opened an officein Rome as a beachhead for its expansion in Italy, with windenergy projects under way for 2006. Overall, it has so farinstalled 1,132 wind turbines with an output of 948 MW,with expectations for a significant increase, up to 1,128MW, by the end of 2006.

Biurrarena had an excellent year, up 22%, with significantgains in terms of market share in machinery for public works,acquiring a majority shareholding in its largest distributor. Inenvironmental terms, it continued to position itself in the Spanishmarket, with the acquisition of a holding in the companydeveloping a processing plant for household appliances inMadrid, as well as in the company set up for a building anddemolition waste plant in Navarre. It also attracted asignificant portfolio of orders in the area of undergroundcontainers, with a highlight being, amongst others, theagreement reached with the city council of San Sebastian.

Lana, too, performed well over the year, recording growthof 18% and with an ever greater presence in foreignmarkets, where it continued to analyse alternatives fordeployment in Eastern Europe. Rochman significantlyimproved sales and earnings on a year-on-year basis, andEtorki ended the year in line with forecasts. �

23

CONSTRUCTION


Sales 584 741


24

This Division recorded an extraordinary performance withexcellent figures for all the variables that define businessevolution and positioning. Turnover returned growth ofmore than 19%, with an international component thatexceeded 60%, and the combined workforce surpassed4,100. Profitability amounted to 10% over sales, withbusiness returns (TRE) of 15.5%.

Leisure-Sport had an especially busy year in innovation interms of both product and processes and business. ForDikar-Wingroup this effort exceeded any prior trajectory,setting a pace that would enable it to forge well ahead ofits competitors. Eredu developed new models of specialistfurniture with a high level of technological content anddesign, thereby ensuring that the positive trend of recentyears will be upheld. Orbea continued to expand abroad,and now has 10 commercial representations of its ownand a distribution network in over 30 countries, beingfurthermore a global leader in carbon fibre innovation andapplication.

Technical Equipment and Components recordedgrowth of 27% and made significant improvements inproductivity and earnings. A highlight again this year wasthe excellent performance of Irizar, with steeper growth inits businesses abroad, together with high returns and anexcellent level of business efficiency. Ampo confirmed itspositive trend with a 41% increase, basing its expansionon intense investment activity in the petroleum sector andmanaging to almost double its earnings. Becker and Ederfillikewise posted a joint increase of 22% in sales, largely onthe back of their expansion abroad, and Hertell proceededwith its foreign development and high business returns.

Industrial Services recorded a growth in sales of morethan 7% with good earnings figures. Alecop concentratedits efforts on transforming its business model and inincreasing its foreign deployment. Alkargo underwentmajor expansion with a 52% rise in sales, consolidating its

technical and design capacity and posting a return onturnover of 8%. Coinalde had its installations in Polandoperating at full capacity, forming a team of staff thatwould ensure its future expansion in Eastern Europe.MCC Graphics, comprising Litografía Danona, Elkar,Evagraf and Rotok headed a major investment process thatis set to continue in 2006, enabling it to completeinstallations and thereby respond more effectively to majorcustomers, reinforcing the future development of thisgraphics activity, which recorded excellent returns of closeto 9% over sales. This investment policy was completed bythe launch of a new direct marketing activity, which willmean major development for the Group and will place it atthe forefront in the printed and customised advertisingsector.

Elsewhere, Oiarso upheld its performance of prior years,making further changes and investments to allow for futuredevelopment. Within this context, it oversaw the creation ofOiarso-China, its first production facility abroad. Osaturecorded growth in excess of 30%, which together with thesuccessful launch of its new Reanibex-700 and the positiveresults posted, place it in an excellent position for thecoming years. �

INDUSTRIAL EQUIPMENT


Sales 660 785


25

The acquisition of the Brandt Group, the French marketleader in household appliances, for €162m, constituted astrategic milestone in the Division’s history. The operationcontributed significant synergies and substantially reinforcedits international projection and its positioning in theEuropean market, where it has climbed to fifth place in termsof turnover and market share (6%). In adjusted terms, theDivision’s sales rose 2.6%, increasing to 41% if inclusion ismade of Brandt’s turnover from June onwards.

In Household appliances, Domusa again performedexceptionally well, recording increases of 9% in sales,whereas Fagor Electrodomésticos grew by 4% in thedomestic market and by 0.3% abroad, due to thesluggishness of its traditional markets in Europe and thestrength of the euro against the dollar, which hinderedoperations outside Europe.

This scenario has been radically changed by theincorporation of Brandt, which contributes its leadershipin France with an 18% market share, its leadership inDenmark and a joint commercial presence in 100countries in all five continents through the brands DeDietrich, Brandt, Thomson, Vedette, Ocean and Fagor.Added to this is Fagor’s leadership in Spain, with amarket share of 21% for the sum of all its brands, as wellas a good positioning in Poland, where it heads thecooker segment with the Mastercook brand.

An investment was approved in this latter country of €31mfor the Wrozamet plant in Wroclaw over the period 2005-2008, to enlarge its installations by 20,000 m2 andquadruple its output to 2 million household appliances.Once this has been completed, the top-loader washing-machine plant will be the largest and most modern inEurope, with an output capacity for 500,000 units per year,with fridges rising to 600,000 units.

This steadfast commitment to Europe is compounded bygood results in Morocco, with Fagor making significantinroads in the market for fridges, washing machines andheaters, as well as the production of pressure cookers at theChinese plant close to Shanghai, in cooperation with alocal partner.

In qualitative terms, the process of convergence with Brandtis giving rise to intensive work in unison, with theintroduction of eight multidisciplinary projects involving 84teams made up of staff from both Fagor and Brandt, in theareas of purchases, industry, sales and marketing, R+D+i,supply chain, organisational culture, finances and theapplication of new ICTs.

In Commercial Equipment, Fagor Industrial increased itssales by 17%, strengthening its business in manufacturingsubsidiaries in France, Turkey and Poland, as well as inCórdoba and in Catalunya, and the decision was made toopen a new plant for the manufacture of stainless steelproducts in Huesca. In turn, Kide recorded a significantturnaround with returns of 13% over sales and reinforcing itscatalogue with the launch of a Buffets Division.

In Furniture, a highlight has been the consolidation ofthe new Gerodan business, manufacturing furniture for thesocio-health and elderly segment, the launch of a newrange of office furniture and the growing improvement inreturns, following the far-reaching process ofreorganisation undertaken and the incorporation of a fullyrevamped catalogue �

HOUSEHOLD GOODS


Sales 1,146 1,639


26

The year was characterised by a sharp upturn of 17% insales and a sound order-book, which ended the year 16%up on the prior year. International sales surpassed 60% ofthe total, earnings amounted to 4% over sales andemployment grew by 7% in the Division overall.

Automation and Control performed well over the year,increasing its market share and growing by 16% despite theongoing recession in the Machine Tool sector in Europe.Very good progress was made in China, with a 31% rise insales, in the United States, growing by 29% and inGermany and Brazil, which were up 17%. Overall, FagorAutomation invoiced 77% in foreign markets, with 36%corresponding to Asia, 24% to the Americas and 17% toEurope. A highlight was the increased presence inmanufacturing in China, with the commissioning of aproduction line for new visualizers and optic rulers.

In Forming Machinery, in addition to a significantincrease in returns, turnover rose by 6% and new orders by11%, with highlights being those awarded to FagorArrasate by the Argentinean firm MB Ciganotto for a valueof €13m and by the Chine firm Taiyuan Iron&Steel for thebuilding of a 100-metre long combined cutting line, for asum of €10m. In turn, Mondragón Assembly also secureda number of major orders from Hella and TRW, through itssubsidiaries in Germany and Mexico.

The list of customers is a long and impressive one, and inaddition to those mentioned above, it includes companies

from the automotive sector, such as: Ford/Volvo,Volkswagen/Seat, Renault, DaimlerChrysler, PSA Group,Opel/GM, BMW, Honda and Saipa (Iran), as well as themegasuppliers Magna, Tower, Johnson Control, Benteler,Gestamp, Tenneco, GKN, Valeo and Oxford; in householdsuppliers: General Electric/Mabe, Whirlpool/Fadsa,Electrolux, Bosch- Siemens, Maytag and Fagor; and in thesteel industry: Thyssen Krupp, Aceralia/Arcelor, BritishSteel, Eko Stahl, Acerinox, Bamesa and Namasco.

Forming and Assembly mirrored the deep, widespreadrecession that the overall sector is experiencing in Europe,with sales standing at 92% of the prior year and with fewnew orders. Despite this, it posted results similar to 2004,thanks to a significant improvement in internal productivityand to the reintegration of part of the work subcontracted.In addition, a boost was given to the business of MatriciSistemas, injecting new capital and turning it into aCooperative, with emphasis placed on the fine-tuning ofdies, which will become a new company.

Casting and Tooling, consisting of Aurrenak andLoramendi, registered spectacular growth in new orders,especially in Mexico and the US, up 81% on the prior year,which heralds a good year in 2006, above all forLoramendi which was restored to its position of globalleadership in core making. Aurrenak recorded a balancedperformance, with sales up 20% on a year-on-year basis.

Engineering and consulting had a good year, withsales up 11% and recording a 13% year-on-year rise in neworders. A highlight in terms of organisation was the creationof MCC Telecom, the result of the merger betweenMondragón Conet and LKS Intelcom, which providessolutions and services in the field of telecommunications. �

ENGINEERING AND CAPITAL GOODS


Sales 381 446


27

The negative trend of prior years was finally reversed in2005, with a rise in turnover of around 17%, adequatereturns and a good number of new orders that brought theyear to an end with a healthy portfolio, which suggests2006 will be a good year. However, the unfavourabledollar-euro exchange rate remained, as did the increasingcosts of raw materials and higher inflation than insurrounding European countries, which had a negativebearing on our competitiveness.

In other areas, the management model introduced by theDanobat Group continued to bear fruit, with a strategy thatdefines the products to be offered on the basis of innovationand specialisation and the selection of geographical andsectorial markets that need to be addressed, with theultimate aim being to achieve positions of leadership inspecific market niches. This involves four basic lines ofaction: product development, market management, internalefficiency and people management.

In Machine Tools, turnover grew by 19% with a degreeof internationalisation that accounted for 78%. New ordersrose 22%, a figure that is in stark contrast to the 10% droprecorded in the rest of the core Machine Tool sector inSpain. By countries, Germany again led the field with 18%of the total, followed by the Czech Republic (12%), China(10%), Italy (9%) and India (7%).

All the Group’s subsidiaries performed well, recording anupward trend, and despite the recession, the highlights inGermany were the excellent results posted by Bimatec-Soraluce and the re-emergence of Overbeck after twodifficult years. In the UK, Newall successfully continued itsforays into the aeronautics market and in automotiveretrofitting and, in Rumania, Danomar became fullyintegrated within the Group’s dynamics.

A highlight in terms of new projects was Goimek, dedicatedto high-performance machining with extremely complex andhigh-precision parts. With its new pavilion completed, itbegan its business in January 2006, with a workforce of 65people, with forecasts for positive earnings right from thefirst year, despite the enormous effort involved in the transferand fine-tuning of machinery. A highlight at the IdekoTechnology Centre is the Himach project, which in closecooperation with customers seeks to develop futuremanufacturing processes, which require high precision andproductivity. Work has already begun on the building, andthe installations will be up and running by the end of 2006.

As for Danorail, highlights in 2005 were the first orderreceived from the Seville metro, its ongoing cooperationwith CAF and the fact that in 2006 it will submit bids onmajor projects tendered by Renfe, Metro Madrid etc. Thisnew cooperative is dedicated to developing high-techequipment for railway maintenance, as well as machineryfor the reprofiling of wheels and dimensional measuringequipment.

Timber Machinery, Tools and Implements, afterseveral difficult years, it recorded an 8% jump in turnover, a12% rise in orders and a sharp increase of 36% in theorder-book, together with a significant improvement ininternal efficiency. In terms of profitability, it almost brokeeven following the losses of prior years, on the back ofbetter management in securing new orders and higherproductivity levels. Within this context, Egurko postedpositive results and Latz repeated the good performance ofprior years. �

MACHINE TOOLS


Sales 138 160


28

The ULMA Group, consisting of the businesses of ForkliftTrucks, Construction, Casting, Handling Systems, PolymerConcrete and Packaging, had an excellent year in 2005,both in terms of turnover and earnings, as well as in thecreation of employment, posting Consolidated Sales of€508m, an increase of 18%. All the businesses havecontributed to this steep growth, with highlights beingConstruction (24%), Forklift Trucks (12%), Packaging (16%)and Casting (14%).

International sales were up 35%, at €211m, nowaccounting for 42% of overall turnover, and therebyconfirming the success of the policy on internationalexpansion that the Group has been pursuing in recentyears. Special mention should be made of the process ofintegration undertaken by the firms Bauma (Poland) andAlpi (Italy), which were acquired the previous year.

Likewise, subsidiaries were set up in the United ArabEmirates (Construction), Mexico (Agriculture) andRumania (Packaging), thereby bringing the Group’sforeign subsidiaries to 27. At the year-end, subsidiarieswere in the process of being set up in Poland and Russia(Packaging), and are expected to be incorporated inearly 2006. The overall workforce in the Group’ssubsidiaries abroad amounted to 850 people at theyear-end.

The ULMA Group’s consolidated earnings rose 29%,easily improving on prior years and confirming thesoundness of the policy on growth and development theGroup has been applying, being partly reflected in themore than €100m invested over the course of the year,covered by the Cash Flow generated.

In the section of business promotion and development,Polymer Concrete witnessed the conclusion of theenlargement of its installations and work began in the newbusiness of ventilated facades; new installations also cameon line in Casting for lamination and machining for flangeslarger than 16” and Handling Systems completed its newinstallations, embarking upon the business of SCS (SoftwareChain Supply). In addition, the Packaging Businessconcluded its feasibility study on precision stainless steelboiler-making and two new businesses were taken up:Packaging Engineering and Industrial Heat-forming.Finally, the Forklift Truck business boosted the new activityintroduced the prior year, namely, Spares and ReplacementParts, furthering its projection into international markets.

There was significant progress in the project CUT (Universityand Technology City), which is being sponsored by theULMA Group in partnership with the local council of Oñati.The new installations that are already beginning to giveshape to this new site (new plant for Handling Systems,Packaging Technology Systems and the ULMA Group’sBusiness Promotion and Development Centre), have beenboosted by the project’s recognition though its inclusion inthe National Network of Technology Parks.

Finally, a highlight has been the effort the Group isdedicating in such a key area as lifelong training andindividual skills development. Regarding job creation, thetrend in preceding years was upheld, with 206 newpeople joining the Group. The number of membersrecorded a net increase of 106 people, remaining ataround 80% of the overall workforce in the cooperatives.At 31 December, a total of 3,167 people were workingfor the ULMA Group. �

INDUSTRIAL SYSTEMS


Sales 430 508


29

MCC WORLDWIDE

Czech R (5)Germany (3)

Rumania (2)

Poland (5)

France (5)Slovakia (2)

U.K (4)

Italy (3) Turkey (2)

Iran (1)

Thailand (1)India (2)

China (8 )

Mexico (6)

South Africa (1)

Brazil (1)

Morocco (2)

Russia(1)

U.S.A. (1)

Mexico (1)

Brazil (6)

India (1)

China (1)

Corporate Delegations 7Manufacturing Subsidiaries 57

Distribution GroupANNUAL REPORT 2005

32

Distribution GroupANNUAL REPORT 2005

This Group consists of the Eroski Group, whose mainbusiness is retailing, with the main company being Eroski,S. Coop., and of Agrupación Agroalimentaria Erkop, asecond-degree cooperative made up of seven services andfarming cooperatives.

Despite a somewhat reticent market scenario, this Groupmanaged to increase both sales and earnings last year,whilst also consolidating the basic strategies underscoringits businesses.

The progress made in management has meant animprovement in productivity, which has enabled a responseto be made to a price-focused demand and to anincreasingly varied consumer base in both social andcultural terms.

The fulfilment of the Basic Corporate Objectives on the partof the Distribution Group has had the following majormilestones:


The development of a store-brand for meeting the changingneeds of consumers has constituted a core strategy in theyear, with renewal of over 3,000 permanent referents in itsown brand, both in foodstuffs and in non-food items,presenting the best price in the most economical choice forcustomers. The share recorded by the EROSKI store-brandnow accounts for 28% of food sales.

Customer service is one of the channels of communicationused for receiving suggestions and ideas, with the serviceattending to over 100,000 instances of feedback, either inthe shops themselves or via the customer hotline or the

website. The novelty this year has been its conversion intoan integral service; this means that when it receives thecustomer’s enquiry it automatically relays it to thecorresponding supervisor, thereby ensuring an immediate,direct response.

Thanks to its own laboratory, certified by the ENAC, thequality and safety of store-brand products is ensured, with11,824 analyses and 22 comparative analyses beingmade this year on more than 150 products for themagazine EROSKI Consumer. In addition, 1,162 auditsand inspections have been performed on the productioncentres and farm holdings that provide the Eroski NATURfresh produce.

The aim of the health programme Idea Sana EROSKI is toencourage retail consumers to take decisions that lead togood lifestyle habits in terms of food and nutrition, sport andhealth, environment and solidarity. A highlight has been thesetting up of the health observatory “Observatorio IdeaSana’ for studying consumer lifestyle habits

The programme’s activities range from awarenesscampaigns, which have reached 1,000,000 consumers, tothe Idea Sana EROSKI school in which 24,350 consumershave received instruction on 48 different subjects, or theIdea Sana Eroski magazine, of which 2,400,000 copieshave been distributed.

For the eighth year in a row, the toy advisory service -Asesoría del Juguete – has been arranged, staffed by ateam of education specialists and psychologists, whoprovide guidance on the most suitable toys for developingchildren’s capacities.

33

PROFITABILITY

The business trend in distribution has been characterised bydeflationary pressure, and its growth may well be definedas “modest”. Despite this, it has been a good year in whicha larger market share has been cornered and sales havegrown 7.6% in year-on-year terms.

So, too, has there been an increase in earnings, in spite ofthe reduction in the price of many products, thanks to lowercosts, savings in the supply chain, management efficiencyand the good performance recorded by Alidis, which hasmeant securing better purchase prices and a broaderselection for customers.

The activity of the agro-food businesses has grown at asteady pace, although in certain cases it is pursuedwithin a scenario of recession, whose effects aremitigated thanks to alliances with producers. Sales roseby 10% with regard to the prior year. A highlight was thegrowth recorded by Auzo Lagun, both in group cateringand in socio-health services and by the mixedcooperative in residential services management, Gestiónde Servicios Residenciales (GSR), with a twofoldincrease in business over the prior year.


The Distribution Group has a minor presence in the Frenchmarket with a network of 3 hypermarkets, 18 supermarketsand 17 petrol stations.

For the third year running, the Alliance with the LesMosquetaires Group has meant significant progress leading

towards a more competitive and broader offer. In April2005, the inclusion of the German leader Edeka in Alidishas meant a stronger positioning in the internationalpurchasing market and these advantages have beenpassed on to customers.

DEVELOPMENT

The effort in investment has continued this year with 140new openings, with such highlights as five newhypermarkets, seven petrol stations, 49 Eroski/travelagents, eight sports-leisure shops and 49 perfume retailoutlets. These outlets have involved an investment of€298m and reinforce the presence of the DistributionGroup.

The platform network has been strengthened following theopening of two new distribution centres: Malaga,withmodern installations distributing fresh produce andfoodstuffs in the region, and Azuqueca de Henares(Guadalajara), a new distribution centre for non-food items.Refurbishment has also been carried out on the freshproduce platform Getafe, which supplies the centre of theIberian Peninsula, and two projects have been implementedthat will become operational in 2006: Zaragoza andPalma de Mallorca.

INNOVATION

The Group’s activity in innovation in 2005 has beenreflected both in its retail outlets and in product,technologies and systems.The search for an attractive setting for customers has led tothe refurbishment of the design of the premises for

34

EROSKI/travel agents and Forum Sport, with the aim beingto increase customer involvement. A new shop design hasalso been provided for supermarkets, rendering them moreconvenient for customers.

A study of customers’ shopping habits has led to thecreation of general-store retail outlets that make shoppingeasier and more convenient, and also involve considerabletime-saving for customers.

In response to changes in society, inclusion has been madeof other products and foodstuffs from other regionsworldwide, from Mexican food through to Islamic Halalproducts. So, too, has the growing demand been met forready-cooked food, with the launch of 9 new dishes, whichbrings the total of own-brand dishes prepared to fifty-four.

Work has begun on an ambitious project for thecomprehensive supervision of the cold chain that will allowfor the automatic detection of anomalies and for theadoption of preventive action. This plan involves majorinvestment in the refurbishment of installations and theincorporation of new technologies that will provide greaterefficiency and reduce energy consumption.

The IT management systems have been upgraded in theGroup’s platforms in order to provide a swifter response toretail outlets whilst upholding product quality and

traceability, with improved distribution using lorries fittedwith GPS, and so optimising routes and loads.

SOCIAL ACTION

Growth in the network has led to an increase inemployment, with 615 new jobs. There continues to be adesire to integrate workers within a unique anddifferentiating model, and in 2005, 423 new workers haveacquired the status ofowners, now bringing the total to12,721.

Total Sales(million euros)

2003 2004 2005

5,2765,667

6,099

35

New measures have been introduced to favour a betterbalance between family life and work, as well as for equalopportunities in the workplace, with a view to increasingpersonal satisfaction

The presence of women in positions of responsibility and inmanagement bodies is the highest of any company inSpain, with women accounting for 72% of the positions withpeople under their charge, 34% of the people with duties inmanagement and under-management (hypermarketmanagers, regional managers, etc.) and 14% of SeniorManagement.

Social Responsibility is a value that is apparent in theapproach to work and in the projects this Groupundertakes in order to respond to its stakeholders’demands. Accordingly, and following the successfuloutcome of its external review audit, it has deservedlymaintained its certification to the SA 8000:2001

standard, being the first Spanish company in thedistribution sector and the second in Europe to hold thisaward.

It should also be noted that each year 10% of the profitsare allocated to social action, to the performance ofactivities designed to defend the rights and interests ofconsumers and uphold sustainable development.

In 2005, the Eroski Group has published its secondSustainability Report, in accordance with GRI guidelinesand verified by AENOR, which covers the period 2003-2004, and details the contribution it has made tosustainable, social and environmental development.Accordingly, it has received the Reporting Award forsustainable development at the European EnvironmentalPrizes for Business 2005-2006 awarded by the EntornoFoundation, in cooperation with the Ministry of Industryand the Ministry of the Environment. �

Investments(million euros)

2003 2004 2005

515360 302

Workforce

2003 2004 2005

31,22233,782

34,729

Research, Training & EducationANNUAL REPORT 2005

38

Research CentresANNUAL REPORT 2005

Research and technological innovation have been aconstant for the Corporation and a basic mainstay of itsgrowth. Continuous innovation remains a strategiccomponent for MCC, conscious of its underlying value forachieving the required competitive positioning andgenerating highly-skilled employment. In the industrial area,the overall budget allocated to innovation exceeded 5% ofthe valued added over turnover.

SCIENCE AND TECHNOLOGY PLAN 2005-2008

An especially noteworthy feature of the year was theintroduction of the new corporate Science and TechnologyPlan 2005-2008, whose aim is to incorporate new high-impact technology know-how for MCC’s companies andbusinesses, with major potential for the generation ofinnovative activities and products. The Plan has a budget of€40.7m for these four years.

It consists of five strategic projects in the areas of Informationand Communications Technologies (ICTs), Energy, Healthand Biotechnology, Materials and Manufacturing Systemsand Cooperative Business Management. It also promotescooperation with MCC technology centres and withMondragón Unibertsitatea, along with other externaltechnology centres and universities. The Plan currentlyinvolves 23 cooperatives.

With a view to gauging target achievement, a panel ofindicators has been arranged where, apart from aspectsrelated to dedication, expenditure and financing, inclusionis made of results such as the number of patents, transfers tocompanies, ideas for new businesses, PhD theses andpublications.

CORPORATE TECHNOLOGY CENTRES AND THEGARAIA INNOVATION PARK

Ikerlan, an historical referent for MCC within the sphere ofresearch, recorded income in 2005 of €15.61m, of which€5m corresponded to generic and strategic researchprojects and €9.6m to R+D under contract to companies,a year-on-year increase of almost 9%. Its two sites inMondragón and Miñano employ 186 researchers andtechnicians, as well as 38 interns.

In terms of Europe, it secured four new projects within the VIFramework Programme, three of which are integrated andthe fourth is for specific research headed by Ikerlan.Together with those approved the prior year, they place theCentre in a good position in Europe in the fields ofEnvironmental Intelligence, Microtechnologies and FuelCells. Within this context, partnership agreements weresubscribed with the IIS-Fraunhofer Institute in Erlangen, andwith the École Polytechnique Fédéral in Lausanne.

Furthermore, and in cooperation with the CEIT, it created“Atica Innovation” within the field of ICTs, for thedevelopment of high-tech products in the health sector andfor geriatric care. It also entered into a partnershipagreement with Saiolan for identifying businessopportunities and cooperating in the creation of newactivities.

MIK, a Business and Organisational ManagementResearch Centre, has been endorsed by the Ministries ofIndustry and Education as a CIT (Technology ResearchCentre) and as an OTRI (Office for the Transfer of ResearchResults), being the first and only one of its kind in Spain.

39

A highlight has been the start of the COWEX Bideanproject, to be developed over the period 2005-2008,focusing on strategic research in business managementwithin the Autonomous Basque Community (CAV), as wellas the research Programme in Business Management2005-2008 within MCC’s cooperative sphere. Otherprojects in which it is involved are Open Gipuzkoa andInnotool for Development and Experimentation in InnovationTools in SMEs in Bizkaia.

The Garaia Innovation Park is involved in thepromotion of innovation and technology, inter-relating thework of Technology Centres, businesses and highereducation. Managed by MCC, its aim is to create a sphereof excellence, fostering the introduction of new technologiesapplicable to companies, raising their competitive level andhelping to create highly-skilled employment. Workcontinued in 2005 on the urban development of the siteand construction began on the modular building dedicatedto laboratories and innovation, which is to be opened in thesecond half of 2006.

SECTORIAL TECHNOLOGY CENTRES

Liaising closely with its industrial businesses, in recent yearsMCC has been developing an extensive network ofSectorial Technology Centres to cater for the needs of itsCooperative or business sector:

Ahotek, dedicated to Automation and Optics, seeks touphold the level of excellence in those technologiesintegrated within the products developed and manufacturedby Fagor Automation: Numerical Controls, Regulators andPosition Tracking Systems.

Edertek focuses on the automotive sector, in the researchfields of materials and processes, product development,innovation and design in moulds and moulding appliances.In addition to drafting its Technology Plan 2006-2009, itimplemented the simulation of processes in accordancewith the notion of the virtual factory and it embarked uponprojects for enhancing the reliability of moulds.

Hometek, set up by Fagor Electrodomésticos inSeptember 2005, focuses on four lines of research:electronics and communications, design, vibrations andacoustics and energy. It also promotes new activities.

Ideko, specialising in Machine Tools and manufacturingtechnologies, and a member of the Danobat Group, madea commendable effort in technology management andtransfer, with an increase in research activities and thegeneration of three new industrial patents. It also embarkedupon the construction of the Hi-Mach for developing themanufacturing processes of the future, in partnership with itscustomers.

Koniker, devoted to Forming and Assembly, conducts itsresearch in the following areas: drawing/forming,cutting/punching, levelling, roll-forming, bending/crimping, transfer, assembly and stacking/ destacking. Inaddition, it undertook projects within the field of lasermicromachining, solar panel assembly and the automationof bioprocesses.

Lortek conducts research into advanced joiningtechnologies and processes, being divided into four closelyinter-related areas: Design, Processes, Non-destructiveTesting and Industrial Automation.

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MCC Technology Centres 2005

NAME BUDGET WORKFORCE(MILLION EUROS)

AOTEK 1.8 38

EDERTEK 2.4 26

HOMETEK — 28

IDEKO 5.0 86

IKERLAN 15.61186

(+38 INTERNS)

KONIKER 1.25 15

LORTEK 0.9 26

MTC 6.0106

(+8 INTERNS)

MIK 1.4 24

ORONA EIC 2.0 38

UPTC 1.8 42

TOTAL 38.13615

(+46 INTERNS)

Maier Technology Centre (MTC) specialises in researchand development in thermoplastic parts and assemblies forthe automotive, household appliance, telephony andconsumer electronics sectors, operating within the field ofengineering in close cooperation with its customers.

Orona EIC (Elevator Innovation Centre), conductsresearch in the field of cable/pulley interaction, controldevices and power electronics, comfort, noise andvibrations, electronics and communications for lift control. Ahighlight in 2005 was the new Arca II manoeuvre for liftswithout a machinery room.

Finally, the research conducted by UPTC (PackagingTechnological Center) led to the launch of innovativeproducts in product packaging and preserving areas,as well as in hygiene-friendly containers andinstallations. �

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Training CentresANNUAL REPORT 2005

MONDRAGON UNIBERTSITATEA

The total number of students enrolled on degree courses foracademic year 2005/06 amounted to 3,493, whereaspost-graduate enrolments in last year’s course totalled 417.

In academic terms, the highlights for the 2004/05 yearinvolved the introduction of the second cycle inTelecommunications Engineering and, within the HumanitiesDegree, the implementation of a new curriculum dealingwith the field of communication. In addition, special mentionshould be made of the work undertaken in the design of anew extended-cycle course, the Degree in AudiovisualCommunication, together with the authorisation andendorsement required for its introduction in the 2005/06course at the Eskoriatza Campus.

Insofar as the new Mendeberri educational model isconcerned, it should be noted that its aim is to developknowledge, skills and values, and that it is a trilingualmodel, in which students are to end up with a provenability to conduct themselves in their field in Basque,Spanish and English, making the most of the opportunitiesprovided by new information and communicationstechnologies. During the 2004/05 course, itsimplementation was gradually extended to 7 degreecourses and to 20 groups of students at MondragonUnibertsitatea.

In the field of research, the joint projects undertaken by theuniversity and businesses constituted a differentiating featurein the activity of M.U., which it continues to foster year afteryear in order to increase the knowledge contributed tosociety. Accordingly, emphasis should be placed on the

growing interest in research amongst the teachingstaff,which involved 32%, 6% up on the previous year.

In terms of quality, it should be noted that MondragonUnibertsitatea is the first university in the Basque Country tohave subscribed an agreement with Euskalit on its pledge tototal quality. During the 2004/05 course, M.U. organised aSymposia on Quality in the Educational System, with a viewto reflecting on the importance of quality in education.It should also be noted that Mondragon Unibertsitatea hastaken part in the Institutional Assessment Plan organised byANECA (the National Quality Assessment Agency), evaluatingthree specialities in Teacher Training, the Degree in BusinessManagement and Administration and Software Engineering.

OTHER TRAINING AND EDUCATION CENTRES

Politeknika Ikastegia Txorierri catered for 435students in formal education during the 2004-2005 course,organising 40 courses (1,635 hours) in occupational andlifelong training that were attended by 415 people, themajority of whom were in active employment. The centre’scommitment to fostering an enterprising culture is to bereinforced through the incorporation of the GaztempresaFoundation as a partner to the cooperative.

Elsewhere, Politeknika Txorierrii has been involved as afounding partner in the Wok-Lan Bizkaia Association, whoseaim is to promote social economy companies. Furthermore,it should be noted that the centre’s commitment to excellencehas been recognised through the award of the BasqueGovernment’s highest accolade, the Gold Q – BasqueAward for Management Quality,being the first occupationaltraining (FP) centre in Bizkaia to be honoured in this way.

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The Lea Artibai Ikastetxea catered for around 2,000students studying a wide range of courses in 2004-05. Inaddition to formal education (Secondary Education andOccupational Training Courses), provision continued to bemade of classes in Polymer Engineering, in cooperationwith Mondragón Unibertsitatea and the LondonMetropolitan University. However, the teaching arearecording the sharpest growth involved the unemployed andcompany employees, through the organisation oftechnology skills courses, increasingly in demand amongstworkers and companies alike.

Elsewhere, ISO 9001/2000 Standard certification wasawarded to the laboratories of Industrias Alimentarias,Plástico y Caucho which in addition to lending its supportto teaching activities are equipped for providing technicalservices to companies. Progress was also made in severalresearch projects in the fields of Materials and Food andtechnology tutelage was applied to other projects incooperation with the Azaro Fundazioa.

CIM (Centro de Idiomas de Mondragón) catered for ademand of approximately 5,393 students over the 2004-2005 course. They were distributed as follows: 1,943 inthe Academic Division and 961 in the Business Division,1,093 at the Centre in Vitoria, 985 in San Sebastian and411 in Outside Training.

Arizmendi reinforced its project as an integral trainingcentre, completing the new cooperative’s restructuringprocess and making itself known especially through theorganisation of Kilometroak 2005. A further highlight wasthe completion of the crèche, or “Umezaintza”, for childrenup to the age of six and the award of the ISO 9001/2000Quality certificate by the Occupational Training Unit.

MANAGEMENT TRAINING

Otalora, MCC’S Management Training Centre,organised a Leadership Development Programme in2005 that was attended by 30 cooperative executives,lasting for six months and with 400 hours of dedicationper person.

A further two programmes were held in High-PerformanceTeam Development for executives at FagorElectrodomésticos, involving 15 people, and for themanagement team at Maier, which was also attended by15 people. Both involved 300 hours of dedication perperson. In addition, 12 programmes were held inTeamwork Skills Development for Eroski (7 groups), FagorEderlan (2 groups), Eika, Ecenarro and Edertek.

As in prior years, the Cooperative Business ManagementMaster’s Degree was held, now in its nineteenth year,with 14 participants and the academic supervision ofthe Faculty of Business Sciences at MondragónUnibertsitatea, with a duration of 510 hours.

With regard to Cooperative Training: two groups werearranged on a “Ikas” socio-business training course forgraduates, involving a total of 23 people who hadrecently joined the cooperatives, and which lasted for 5months; the continued application of the “Ordezka”System for the Development of Corporate Bodies forGoverning Councils, which was attended by 47 seniormanagers from 13 cooperatives; and courses were heldfor members of Corporate Management Bodies that wereattended by 176 directors. The “Bazkide” Induction andInternal Reporting Model was arranged for 715 newmembers of the various cooperatives.

As for Internal Reporting, the monthly publicationcontinued of T.U. Lankide, reaching a circulation of11,800 copies; and in the area of Sociological Studies,application continued to be made of the survey onpersonal satisfaction in the Cooperatives.

Cooperative Dissemination continued with its task ofraising awareness on the Cooperative Experience, with752 people approaching Otalora in order to gain in situknowledge of the nature of the cooperative movement inMondragón and visit our cooperatives; 2,039 peopleattended the 15 presentations held and 445 took part inseminars lasting two to five days. �

Financial Statementsand Trading Account

ANNUAL REPORT 2005

MCC Financial Statements andTrading Account at 31.12.05

ANNUAL REPORT 2005

This chapter in the Annual Report offers an overall view ofthe Mondragón Corporación Cooperativa, by presentingthe Corporation’s financial statements and trading accountfor year-end 2005, which will be accompanied by thosefor the prior year, in order to effect a year-on-yearcomparison.

The information given refers to the integrated BalanceSheets for companies that make up the Corporation, as wellas the composition of Value Added they have generatedover the past two years.

To obtain these integrated statements, balances reflectingoperations between the companies that make up the MCChave been offset, and internal economic movements havebeen removed, in order to delimit the actual situation of theCorporation as far as its outward appearance is concerned.

BALANCE SHEET

The Balance Sheet for MCC at 31.12.05 recorded avolume of assets under administration of €22,977m,following a year-on-year increase of €4,384m, a rise of23.6%.

As is now to be expected, the largest contribution to thisgrowth has been forthcoming from the Financial Group,whose balance sheet, following the consolidationadjustments of the asset and liability balances of thecooperatives in Caja Laboral, has increased by€2,785m, on the back of the growth recorded in savingsattracted and customer lending. Note should also betaken of the increase recorded by the Industrial, Group,€1,420m net, due largely to the purchase of Brandt.

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BALANCE SHEET MONDRAGON CORPORACION COOPERATIVA(Following the distribution of Earnings)

ITEM31.12.04 31.12.05 Annual Variation

Amount % distr. Amount % distr. Amount %

ASSETSFixed 4,106 22.1 4,808 20.9 702 17.1Current 14,487 77.9 18,169 79.1 3,682 25.4

TOTAL ASSETS 18,593 100.0 22,977 100.0 4,384 23.6

LIABILITIESEquity 3,757 20.2 4,226 18.4 469 12.5External Partners 171 0.9 203 0.9 32 18.6Long-term liabilities 4,142 22.3 6,174 26.9 2,032 49.1Short-term liabilities 10,523 56.6 12,374 53.9 1,851 17.6

TOTAL LIABILITIES 18,593 100.0 22,977 100.0 4,384 23.6

(in million euros)

The more salient aspects under each heading of the balancesheet presented by Mondragón Corporación Cooperativa at31.12.05 are detailed forthwith:

Fixed AssetsMCC’s fixed assets at year-end 2005 amounted to€4,808m, following a net increase of €702m (17.1%)during the year.

Total investments made during the year recorded a figure of€866m, a year-on-year increase of 18.6%. In turn, thedepreciations and amortizations applied in 2005 amountedto €489m, a year-on-year increase of 11.3%.

Current AssetsCurrent assets are the largest component of net worth andhave recorded the sharpest rise in absolute terms in 2005(€3,682m), up 25.4% in relative terms.

72% of this increase was provided by the Financial Groupand corresponds to the banking investment made by CajaLaboral. Customer lending was the investment item thatrecorded the steepest growth, with a yearly increase of€1,999m, mainly in the line of mortgage loans.

In terms of growth in net worth, second place went to theIndustrial Group, with a year-on-year increase of €912m,driven by the rise in turnover and by the incorporation of newcompanies.

This net worth of the Distribution Group is not especiallysignificant, as it only accounts for 31% of its total assets, with57% overall corresponding to Inventory Stock.

EquityAt year-end 2005, MCC’s equity amounted to €4,226m, ofwhich €2,092m corresponded to Share Capital and theremaining €2,134m to Reserves.

Over the course of the year, Equity has significantlystrengthened its position, rising by €469m (12.5%). Thisincrease was due to the year’s profitability and to theapplication of a demanding policy on the capitalisation ofEarnings, as the greater part of these were reinvested in theactual businesses themselves, in order to self-finance theirdevelopment.

External PartnersIn recent years, MCC has combined internal growth withthe joint development of new companies with otherpartners, in terms of its expansion both at home andabroad, which has led to a gradual increase in thepresence of external partners in joint ventures.

These external holdings are located largely in companiesincluded on the consolidated financial statements of theindustrial cooperatives and of those in the DistributionGroup, and their overall total at 31.12.05 amounts to€203m, up 18.6% on the previous year-end. The increaserecorded in the year can be attributed almost in its entiretyto the Industrial Group, although it is the Distribution Groupthat receives the greatest cooperation from externalpartners, as its capital in joint ventures is €146m (72% ofthe total for MCC).

Long-term liabilitiesThe balance of MCC financing provided by third partieswith a due date exceeding one year has recorded anincrease of €2,032m in 2005 (49.1%), standing at€6,174m at the year-end.

This rise is due to the Financial Group, which accounts for80% of the same, given the sharp increase in term depositsat Caja Laboral and the issue during the year of mortgagebonds for €1,000m, set to mature as of 2015.

Short-term liabilitiesThis heading on the balance sheet has recorded growth of€1,851m in 2005, which in relative terms is 17.6%.

Caja Laboral has increased its figures for current accountsand short-term deposits by €633m, with growth also beingrecorded in other items, such as deposits by banking entitiesand other financial liabilities.

The Industrial Group has recorded a rise in short-termliabilities amounting to €376m, due to the growth inturnover and to the incorporation of new companies,whereas the Distribution Group has recorded a slightincrease of 3.8%, lower than the growth in turnover.

As a complement to traditional saving, mention should alsobe made of the trend Caja Laboral has recorded in itsfigures for off-balance sheet saving, mainly mutual, pensionsand welfare funds, whose balance at year-end 2005amounted to €3,309m, with a year-on-year increase of€318m (10.6%).

EVOLUTION OF VALUE ADDED

In order to complete this analysis of MCC’s Balance Sheet,the table below presents a breakdown of its financial state-ments for the past two years, arranged according to the dis-tribution format for Value Added.

The total Value Added generated by MCC in 2005 hasamounted to €3,175m, up 13.9% on the figure recordedthe prior year.

45

46

The Industrial Group is the largest contributor to the ove-rall figure for Value Added (€1,696m, 53% of the total),followed at some distance by the Distribution Group(31%), with the remaining 16% corresponding to theFinancial Group.

Personnel Costs have risen by 17.5% over 2004 due to thesharp rise in employment recorded by MCC, especially inthe Industrial Group through the incorporation of newcompanies, such as Brandt and Electra Vitoria. 60.5% ofthe total Value Added was allocated to salaries and wages,an increase of 1.9 points on the figure for the prior year, inkeeping with the greater weight the Industrial Group nowhas in MCC’s make-up, and following the logic that themanufacturing sector has a greater impact than distributionor the financial sector.

Financial Costs have been restricted to €206m, a modestincrease of 4.3% over those incurred in 2004, mainly as a

result of the low interest rates prevailing throughout the year,whereby their absorption of value added fell by 0.6 pointsto 6.5%.

The figure for amortizations and depreciations applied byMCC in 2005 amounted to €489m, up 11.3%, which isexplained by the increase in fixed assets arising from inves-tments made and new incorporations. The Industrial Grouprecorded the highest amortizations and depreciations(€266m, 54% of the total), followed by the DistributionGroup (€204m, 42% of the total).

Once all expenditure has been deducted, there is a TradingProfit of €560m, recording a year-on-year increase of8.5%.Non-trading income consists of provisioning for results attri-butable to external partners and extraordinary income. Itsoverall sum has amounted to €15m in 2005, a similar fi-gure to that recorded in 2004.

VALUE ADDED GENERATED BY MONDRAGON CORPORACION COOPERATIVA(million euros)

ITEM2004 2005 Annual Variation

Amount % distr. Amount % distr. Amount % Value Added 2,786 100.0 3,175 100.0 389 13.9

Personnel Costs (1,634) (58.6) (1,920) (60.5) (286) 17.5

Internal Performance 1,152 41.4 1,255 39.5 103 8.8Financial Expenditure (197) (7.1) (206) (6.5) (9) 4.3

Cash-Flow 955 34.3 1,049 33.0 94 9.8Amortizations & Depreciations (439) (15.8) (489) (15.4) (50) 11.3

Operating Profits 516 18.5 560 17.6 44 8.5Provisioning and other Results (14) (0.5) (15) (0.4) (1) (7.1)

Trading Profit 502 18.0 545 17.2 43 8.5

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Following these movements, gross earnings for the yearamounted to €545m, a year-on-year increase of 8.5%.These earnings for the year were then subject to corporateincome tax and to specific cooperative expenditure, such asinterest on individual capital contributions and the allocationto the Cooperative Development and Education Fund, withthe remainder being distributed between Reserves and coo-perative dividends, with a small part applied to CorporateFunds for the financing of future business projects.

The table below provides an overview of the use made ofthe year’s Earnings, set against the figures for 2004.

The first three items included in the table refer to outgoingfunds, whereas the last two items feature the capitalisationof the remaining earnings, in the form of capitalised coope-rative dividends and reserve funds, or through the creationof funds for future projects. �

ITEM2004 2005

Amount % distr. Amount % distr.

Company income tax 45 9.0 41 7.5

Coop. Development and Education Fund 32 6.4 37 6.8

Interest of Capital Contributions 132 26.3 140 25.7and Monetarised Dividends

Corporate Funds 14 2.8 16 2.9

Capitalised Earnings 279 55.5 311 57.1

Total Earnings for the Year 502 100.0 545 100.0

DISTRIBUTION OF EARNINGS BY MONDRAGON CORPORACION COOPERATIVA(million euros)

Sustainability OverviewANNUAL REPORT 2005

SOCIO-BUSINESS APPROACH,ORGANISATION AND GOVERNANCE OF THE CORPORATION

MISSION AND VALUES

MCC’s mission encompasses those basic objectives of abusiness organisation that competes on markets worldwide,together with the use of democratic methods in its corporateorganisation, the creation of employment, the personal andprofessional development of its workers and a pledge to de-velop its social milieu.

Its Corporate approach is contained in its CorporateValues:

� Cooperation, “Owners and protagonists”� Stakeholding, “Management commitment” � Social Responsibility, “Fair distribution of wealth andinvolvement in the environment”� Innovation, “Continuous renewal” �

ORGANISATION AND GOVERNANCE OF THE CORPORATION

STRUCTURE OF THE GRASSROOTS COOPERATIVE

The organisational model of Mondragón CorporaciónCooperativa seeks to obtain maximum business efficiency,based on an organisational criterion that prioritises manage-ment unity and the grouping of cooperatives with similar pro-duct-market interests by market sectors.Organically, the corporation is structured on a participativeand democratic basis, with similar bodies to a grassroots co-operative:

Congress - Akin to a General Assembly, it is the body thatdiscusses and approves the most important decisions.Standing Committee - It approves strategy and generalcorporate goals, major decisions and the more far-reachingbusiness projects.General Council - It is the Corporation’s executive bodyfor management and coordination.

The cooperative is the basic building-brick in the corporatestructure, and its organisation and governance involves thefollowing bodies:

General Assembly: It is the meeting of members conve-ned to discuss and reach agreements on matters within itspowers.

Governing Board: This body has sole responsibility forthe Cooperative’s management and representation.

Management: The Cooperative’s Manager or Director isthe chief executive officer.

Monitoring Committee: It upholds transparency in ma-nagement and veracity in reporting.

Works Committee: The working community’s permanentrepresentative body in the cooperative’s administration.

It should be noted that, with the exception of Management,all the other members of theses bodies are elected on an un-paid basis and for a specific term of office. �

Divisional Management Board consisting of:Deputy Chair: Appointed by the StandingCommittee on the proposal of the Char ofthe General Council. He/She coordinatesthe General Managers of each Division General Managers of Groupings

Board of DirectorsGeneral Managers of Groupings

Cooperative CongressStanding Committee

SUPREMEBODY

GENERAL ASSEMBLY

GOVERNINGBODY

GOVERNING BOARD

EXECUTIVEBODY

MANAGEMENT

MONITORINGCOMMITTEE

SUPERVISORY BODY

WORKS COMMITTEE

MANAGEMENT COMMITTEE

ADVISORY BODY

General Council Chair

Groups Divisions Sum of Sectorial Groupings withclose product-market interests

Sectorial Groupings Sum of cooperatives that seek tojoin forces to create synergies and

economies of scale

Cooperatives – Business UnitsOper

ation

al Ma

nage

ment

Strat

egic

Planin

g an

d Ma

nage

ment Co

rpor

ate P

olicy

and

Stra

tegic

cont

rol

50

CONTRIBUTION TO SUSTAINABLE DEVELOPMENT AND RELATIONSHIP WITH THE VALUE CHAIN

The pursuit of MCC’s mission enables us, through ouractions and results, to contribute to a better world andidentify areas of improvement for guiding our strategies

towards the creation of wealth and prosperity, socialprogress and quality of life and respect for the planet’sresources and their rational use. �

CONTRIBUTION TO SUSTAINABLE DEVELOPMENT

COHERENCE

We apply our own mana-gement model so that ourprinciples and values are

reflected in our dailybusiness

COOPERATIVE CHARACTERAs workers and owners, we are involved in the company’smanagement and governance.Our organisational model is based on a democratic arrangement. Wepursue solidarity on an internal basis in terms of remuneration and onan external basis by allocating part of our income to social action.

PLEDGEWe pursue a common harmonising project forthe creation of employment, business progressand personal development. We are embedded inthe milieu in which we operate, respecting theenvironment, cultural roots and social reality.

BUSINESS REALITYAs a business reality, our viability isbased on improved competitivenessand on the search for synergies,through inter-cooperation betweencompanies in the Corporation .

Participation: all workers are ow-ners and protagonists

Solidarity: distributing wealth for a moreequitable society

Job creation: we safeguard the qualityand stability of employment

Responsible environmental management: we applythe principles of respect and rationality in the use of resources

Business development: confirmation of our commitment togrowth in pursuit of our corporate objectives

Inter-cooperation: as a n economic and finan-cial assurance of socio-business progress

Committed to the future: ongoing inno-vation is our strategy for the future

Business Ethics

1. Respect for human rights The management of our Business is always to uphold strict compliance with the principles contained in the Universal Declaration of HumanRights and sundry recommendations of the International Labour Organisation.

2. Observance of the Law We are to comply with current legislation wherever we pursue our business.and Local Regulations

3. Apply dignity and respect Staff recruitment processes are to be free of whatsoever discrimination for reasons of in the process of race, colour, nationality, religion, disability, sex, sexual preference, membership of trade unions, hiring people or political parties. Likewise, avoidance is to be made of child labour, forced labour,

excessive working hours, unfair wages or unlawful hiring.

4. Personal data protection The organisation is to avail itself of those systems that ensure the confidentiality of information provided by people and its protection against disclosure to third parties.

5. True picture It is not sufficient to report internally on our management, so we must ensure that the data we report to society are consistent with the company’s results and operations.

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All the stakeholders we have dealings with enable us tounderstand the emotional, social and cultural context in which

we operate, whereby we can use those experiences toinnovate and achieve our cooperative and business goals �

RELATIONSHIP WITH THE VALUE CHAIN

TRANSPARENCY

Our organisational and governance model hasthe required mechanisms to make workers the

true protagonists of this project

MEMBERS-WORKERSOur model looks upon a worker as someoneresponsible and involved in the company’s

goals, and it is precisely their involvement inmanagement that lends weight to our approach

MCC encourages mechanisms of dialogue andthe sharing of experiences and interests betweenits associates that may be of use to the sum ofmembers of the Corporation, thereby rendering

them more competitive

COOPERATIVES AND ASSOCIATED COMPANIES The Corporation’s existence depends on its

Cooperatives and associated companies and itscapacity for influence is based on the specificdesign and implementation of joint strategies

Communication with the supply chain isupheld on a daily, free-flowing basis, stating

our environmental, social and qualityrequirements.

SUPPLIERSTo guarantee customers that products and

services fulfil requirements in terms of quality,price, environmental and social respect

depends on the ability to have a bearing onthe supply chain. Furthermore, the group of

suppliers grows with us, trusting theirinvestments in our ability to generate business

We remain in contact with them through ourmembership of international organisations

SOCIAL ECONOMY ORGANISATIONSApplying the principle of inter-cooperation,they work with other cooperatives to share

experiences and expertise.

We report on the Corporation’s economic,social and environmental reality and weencourage dialogue for finding solutions

We report on quality, price, service capacityand the environmental and social

characteristics of the products and servicesprovided, establishing mechanisms for

customer satisfaction

OUR IMMEDIATE ENVIRONMENTGiven their close proximity, the local

communities in which we operate benefit fromor are affected by our environmental, socialand economic externalities, thereby making

them an influential group.

CUSTOMERSThis heading encompasses both industrialcustomers and the end consumers of the

products and services our companies provide.There is no doubt that this is one of the

stakeholder groups with the most direct andimmediate repercussion on results

Conscious of the fact that, during the decision-making process, the institutions consider

companies’ sustainability policies, we regularlypublish our results, thereby striving to showthe advantages of belonging to a business

corporation such a MCC.

STRATEGIC PARTNERSThe corporation has to take into account boththose companies that it currently has dealingswith and those with which it may potentially

do so

We are involved in seeking ways to furtherlocal policies through the experience of the

corporation’s cutting-edge companies focusingon the creation of stable and quality

employment

AUTHORITIESAt its different levels (international, European,

central, autonomous and local), theadministration is without doubt one of our

main stakeholders given its regulatory powerand the institutional support involved

All requests on a specific basis. In addition,updated information is available on our

website and then there is the CourseDissemination Unit, which helps to understand

our experience

STUDIES ON THE MONDRAGÓN EXPERIENCEThey seek the keys for extrapolating our ex-perience to other organisations and countries,constituting a powerful platform for the disse-

mination of our cooperative model

We channel our reality to this group through aspecific department, press conferences and

dossiers

MEDIAFor their ability to create opinion and

influence the perception society has of ourbusiness, they are the focus of our

communication actions

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INTER-COOPERATION

MODES OF INTER-COOPERATION

Inter-cooperation Funds(million euros)

2003 2004 2005

3542

52

Volume of operations 1998-2005(million euros)

Loans Shareholdings Total

234

37

Guarantees

64

335

Evolution of Equity(million euros)

1998 1999 2000 2001 2002 2003 2004 2005

61

157

184

144134

118100

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The creation of MCC led to the development of modes ofinter-cooperation, levered through the support and solidarityof Caja Laboral, for responding to needs in financing anddevelopment. In practical terms, the main modes designedare the following:

The Reallocation of Earnings, whereby the cooperativestransfer part of their profits to other less favouredcooperatives in their Groupings or Divisions as a gesture ofsolidarity.

The Central Inter-Cooperation Fund (FCI), approvedin 1991, channels resources destined for the generation ofemployment through the financing of development andinternationalisation projects, and the reinforcement of thecooperatives through the offsetting of losses and financialguarantees. This year it has received €31.2m, with 40%provided by Caja Laboral through subsidies forthcomingfrom the application of its Inter-cooperative Social Fund, andthe remaining 60% from all the other Cooperatives.

The Inter-cooperative Education and developmentFund (FEPI), approved in 1989 for the purpose ofsupporting the structural financing of Education andTechnology Centres and of providing backing for Scienceand Technology Plans. In 2005, it has received a total of€8.5m, with 64% provided by Caja Laboral’s Educationand Development Fund, and the remaining 36% comingfrom the Education and development Funds in all the othermember Cooperatives.

The Corporate Solidarity Fund (FSC), approved in2003 during the VIII Corporate Congress as a newinstrument for reinforcing inter-cooperative support with aview to supplementing the system for offsetting those losses

that might be incurred by cooperatives in the IndustrialGroup, thereby mitigating their effects.

The Employment Aid Fund, whose purpose is to financesituations of short-term unemployment or redundanciesaffecting cooperative members.

The Corporation has two entities charged with themanagement of these funds:

MCC INVERSIONES (INVESTMENTS)

This is a business development firm whose purpose is toreinforce the financial capacity of the cooperatives in orderto support development and internationalisation projects orovercome specific moments of difficulty. �

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WORKERS AS OWNERS AND PROTAGONISTS

STAKES IN CAPITAL

MCC’s business policy favours participation andencourages people to take part in the management, resultsand ownership of the companies, developing a commonproject for interweaving social, business and personalprogress.

In 2005, the stake held in the Share Capital by worker-members amounted to 90.5%.

Capital in the Cooperatives is remunerated by means ofan annual rate of interest that is set by the GeneralAssembly, being accrued provided that there are profits.The last Cooperative Congress ratified the pre-existingrule whereby capital can accrue a maximum interest of7.5%, on a monetisable basis.

Breakdown of Share capital(2005)

% of workers with a stake in the capital of non-cooperativecompanies

Share capital of worker-members

Share capital of external partners2003 2004 2005

10.29.7 9.5

STAKEHOLDING

Item Total Year Av.Business projects 54 4.5Training and research 64 5.3projects

TOTAL 118 9.8

Allocations by MCC Foundation 1995-2005(million euros)

MCC FOUNDATION

It channels corporate operations that are arranged in the formof subsidies or interest-free contributions. �

9.5%

90.5%

54

Cooperative dividends(million euros)

2003 2004

105

411

138

502

2005

173

545

Cooperative dividendsSurpluses

No. hours dedicated by workers to corporatemanagement

2003 2004 2005

1,184,1991,257,222 1,285,841

No. member-workers in the Governing Bodies (CCRR)

2003 2004 2005

803 826 835

SHARE IN EARNINGSS

The earnings posted on the trading account are distributedunder three items: social funds, reserve funds and dividends(or drawbacks in the event of losses) allocated to members.The Cooperative Dividends paid out in the past three yearshave amounted to less than 30% of the surpluses recorded.

The cooperatives in the Group remunerate workers in paidemployment with a profits bonus that amounts to at least25% of what a member receives under the item of profitsharing. In the event that members do not receive a share inprofits or even when they are liable for losses, such workerswill not be affected by these circumstances.

SHARE IN MANAGEMENT

The democratic nature of the cooperative is not restrictedsolely to the corporate structure itself. This companyarrangement requires members to become involved in themanagement of the business. This principle involves theprogressive development of self-management and,consequently, of member participation within the sphere ofbusiness management. The cooperatives in MCC have set

SOVEREIGNTY OF LABOURThe first level of participation renders all members equalaccording to their status as members of the GeneralAssembly, in which the full sovereignty of the Cooperativeresides. This right has been embodied in the adage: “oneperson, one vote”.

Any member may form part of the governing bodies,provided that they receive sufficient support from all theother members in the Assembly, and pursuing their dutieswithout any form of financial compensation. Likewise, anymember may become the CEO, provided that they have theprofessional expertise and leadership qualities required, asadjudged by the Governing Board, which is responsible fortheir appointment.�

up the Works Committee, whose duties involve the draftingof proposals and reports on decisions to be made by thegoverning bodies.

55

56

EMPLOYMENT

Employment at MCC has its own special significance, tosuch an extent that it is considered to be one of theCorporation’s General Policies, with three performancevectors:

Furtherance of Cooperative Employment

� The generation of cooperative and competitiveemployment arising from the pursuit of current businessesand from the entry into new preferential sectors.

� The incorporation of new cooperatives within theCorporation contributing to strategic convergence.

� The use of corporate communication and reputation forattracting business projects from other groups andcorporations. The fostering of relations with publicdevelopment bodies for attracting new joint developmentprojects. Quality of Employment.

Furtherance of the quality of employment

� Application of the guidelines of the Congress’s StandingCommittee on the make-up of the socio-employmentstructure for workers.

� The proper dimensioning of the group of temporaryworkers on the basis of criteria of rationality and sectorialcompetitiveness.

� The management of the socio-work conditions of temporaryworkers on the basis of equity, solidarity and wagecoherence.

� The adoption of the pledge that the employment generatedabroad will be subject to ethical criteria and based onpersonal dignity.

� The application of ever greater mechanism of participationfor employed workers in management, results andownership, both within our environment and outside it.

Furtherance of individual employability

� Fostering the development of individual skills consistentwith and in response to the major changes foreseeable thatare set to occur in the management of organisations.

� A commitment to individual empowerment through theprovision of tools and opportunities for improvement in theirmanagement expertise and knowledge.�

EMPLOYMENT POLICY

Trend in job creation

Breakdown of employment according to activity

Breakdown of employment by regions (31/12/2005)

Total in Spain: 64,250

1988 1994 1998 2005

18,74421,204

25,99042,129

78,455

Evolution of Employment Abroad

Financial GroupIndustrial Group

Distribution GroupCorporate Activities

2003 2004 2005

8,087 8,496

14,205

56

51.244.3%

3.2% 1.3%

57

Evolution of the percentage of expenditure on training over total personnel costs

All workers at MCC, and especially so its members, are theones ultimately responsible for the success of our Corporation,whereby the generation of more jobs, of greater quality andwith more involvement in results, is one of MCC’s strategicobjectives and a constant throughout its history.

The period 2003-2005 has recorded the following evolutionin the percentage of members out of the total workforce, witha figure of around 81% in the cooperatives in 2005.

The presence of women in MCC has recorded asubstantial increase in recent years, whereby in 2005 womenaccounted for 41.9% of the workforce in our cooperatives.Nevertheless, although there is a growing trend for women tooccupy management positions, their presence is still wellbelow that of their male counterparts and does not reflect thesocial reality of the cooperatives, currently standing at around15%.

Social Welfare SystemLagun-Aro, a Voluntary Social Welfare Entity, created by thevery Cooperatives themselves, is the organisation withinMCC that caters for the healthcare and social welfare of itsmembers and beneficiaries (children and spouses), with asimilar scope to that of the state-run public health system.

Membership at 31 December 2005 numbered 29,538,distributed amongst 120 cooperatives.

Group Welfare ServiceLagunaro Mondragón Servicios has been operating since2002 as a group welfare service and entity specialising inthe development and fostering of corporate strategies andtools in the field of health and safety at work, as provided forby its own Management Model, ERAIZKIZ.

Training and instructionTraining is a strategic value due to the major role it plays inthe future of each one of the companies and of theCorporation itself. Furthermore, it constitutes a right befallingthe workers as an aspect favouring equal opportunities andpersonal development.

MCC has a Cooperative and Business Training Centre(OTALORA) that organises training schemes in cooperativeand business subjects with a view to improving skillsperformance amongst workers.

In cooperative matters, training courses have once againbeen held for new members of the Governing Bodies andWorks Committees, in addition to the Bazkide inductionprogramme for new cooperative members. �

QUALITY OF EMPLOYMENT

Evolution of the personal satisfaction index

Evolution of the percentage of members in the workforcesof MCC cooperatives

2003 2004 2005

80.4 81.1

2003 2004 2005

2.933.073.04

2003 2004 2005

0.70.6

0.8

Evolution of Training costs(million euros)

2003 2004 2005

11 1111

81.0

Varialbles) 2003 2004 2005

Rate of absenteeism 5.47% 5.50% 5.30%

Accident rate 70.0 62.33 58.34

Fatalities 1 1 0

WAGE SOLIDARITY

In application of the Principle of Wage Solidarity, aframework of solidarity is established in the remuneration oflabour and in the total number of hours worked per year,applicable to all the cooperatives in the Corporation.

Likewise, the Wage Policy provides for salary scales thatavoid a major disparity between higher and lower salaries,with remuneration on a par with salaries paid to thoseemployed within the cooperatives’ sectorial and territorialenvironment.

SOCIAL TRANSFORMATION

One of the cooperatives’ differentiating traits is the way theydistribute earnings. Accordingly, between 5 and 10% of thesurplus generated by MCC is allocated to a CooperativeEducation and Development Fund (FEPC) through whichactivities of a social nature are channelled.

Over the past four years, 2002-2005, the investment incommunity schemes has amounted to €112.7m.�

SOLIDARITY

Percentage distribution of members according to salary scaletranches at 31/12/2005

Corporate resources allocated to activities of a social nature(million euros)

2003 2004 2005

25

33

26

17%

12%

35%

21%

12%

3%

>1.19 1.20-1.149 1.50-1.99 2.00-2.49 2.50-3.49 >3.50

58

ENVIRONMENTAL POLICY

EnergyThe total average energy consumption by MCC over theperiod 2003-2005 amounted to 441.89 kWh/thousandeuros of turnover, with small fluctuations between one yearand another, which constitutes an increase of 1.5% withregard to the period 2002-2004.

WaterThe overall consumption of water per employee has fallen atMCC over the three-year period in question, dropping from115.75 m3 to 103.75 m3.

In 1997, the General Council of MCC formulated for the firsttime a Corporate Policy on Environmental Management basedon the following lines of action:

Fostering prevention: removing hazards at source or,when not possible, keeping them within acceptablelevels.

Commitment to seamless compliance with environ-mental legislation.

Fostering continuous improvement in environ-mental protection in each and every one of the coop-erative’s activities, products and services.

Fostering Management Systems, integrated within theCompany’s general management system, so that all the above points are upheld in a tangible and assessable reality.

Within these common lines of action, each cooperative orcompany has to choose its own achievable level ofdevelopment in its environmental policy, taking into account itsdegree of pressure, its risks and its specific scope for action.

Nonetheless, the aim is to uphold the minimum level ofself-imposition dictated by the Corporation. This pledge

encompasses both compliance with current and applicablelegislation as well as the implementation of environmentalmanagement systems.

Once these minimum self-imposed levels have beenattained, it is left up to each company to decide upon therate and manner in which they will attain levels ofexcellence that can be certified by third parties or theiradherence to the Eco-Management and Audit Scheme(EMAS). �

RESPONSIBLE ENVIRONMENTAL MANAGEMENT

Evolution of the SGMA environmental management certification in MCC companies

Consumption of energy according to sources

Water consumption according to source (m3)

ECO-EFFICIENCY

2003 2004 2005

33 38

44

4

42

CokeFuel-oil

ElectricityPropane

Natural GasGas-oil

2003 2004

56.4%

9.7%3.6%0.3%0.4%

29.6%

750,436

891,994

676,905

853,429

2005

606,101

780,132

Collected Mains

ISO 14001 EMAS

59

60

MaterialsThe overall consumption of materials at MCC has beensteadily increasing over the period 2003-2005. Theincrease is due largely to the consumption of metallicmaterials given the increased activity in the sector, as wellas to the more accurate auditing of the figure.

CONTROL OF CONTAMINATION

SpillagesThe total flow of wastewaters generated in 2005 bycompanies in the corporation amounted to 1,503 m3, whichconstitutes a drop of 2% with regard to 2004.

WasteThe total production of waste in 2005 amounted to around97.8kg/thousand euros. 91% of the waste generated wasinert and only 5% was considered hazardous.

AtmosphereCO2 emissions, generated mainly in industrial combustionfacilities and by boilers for heating remained at more or lessthe same levels as 2004, as a result of the consumption offuels such as coke, fuel-oil and propane gas.

Legal complianceIn 2005, our companies set 18 targets to bring them in linewith current environmental legislation, which have led to a93% degree of legal compliance in terms of administrativeauthorisations and noise levels.

Improvement actionsMCC’s policy on environmental action focuses on theperformance of activities of high strategic value, such as eco-efficiency and eco-design, the minimisation of impacts and theimplementation of environmental management systems.�

Waste generated by type 2005

Contribution to the greenhouse effectCO2 emissions (T/year)

% legal compliance

HazardousInert

ContainersUrban

91%

5%3%1%

2003 2004

94.59 89.30

2003

94.4089.00 95.51 90.80

2003 2004

334,400346,902

2005

343,683

Administrative authorisations Sources of noise

2003

207.34

48.63

7.73

2004

214.02

73.06

7.73

2005

205.14

66.37

25.16

Average values of waste quality (m/l)

DQO Solids in suspension Oils and greases

Organisational Structure Corporate & Management Bodies

List of MCC companiesANNUAL REPORT 2005

Corporate & Management BodiesANNUAL REPORT 2005

STANDING COMMITTEE

Chair: Otaegui, Juan MaríaDeputy Chair: Achotegui, NereaMembers: Ajuria, José Antonio

Alustiza, José AntonioAnduaga, Juan JesúsAnsoategui, Juan JoséAstigarraga, Jesús MaríaEsnal, JokinGandarias, José IgnacioGantxegi, JavierIgartua, IñakiIgarza, JonKortazar, AnttonLarramendi, José MaríaMadinagoitia, José LuisMarkaide, AgustínMartínez, DanielMoiua, LierniOruna, AngelTrancho, Alberto

Secretary: Celaya, Adrián

GENERAL COUNCIL

Chair: Catania, JesúsDeputy Chair: Aldekoa, José Mª

Dacosta, ConstanEcheverría, AntonioGarcía, TxominGisasola, Jose MªGoikoetxea, J.RamónMutuberria, JavierOlasolo, José LuisOtaegui, Juan MªOtaño, Iñaki

Directors: Gárate, José IgnacioHerrasti, Jesús MªLaspiur, Miguel AngelUzkudun, Juan MªZabala, Mikel

Secretary: Celaya, Adrián

INDUSTRIAL GROUP

Organisational StructureANNUAL REPORT 2005

CONGRESS

Chair

General Council

FINANCIALGROUP

Research, Training & Education Centres

DISTRIBUTIONGROUP

Automotive

Industrial Systems

Machine Tools

Household Goods

Engineering and Capital Goods

Industrial Equipment

Construction

Components

62

63

GENERAL COUNCIL

José Luis Olasolo Iñaki Otaño Juan Mª Uzkudun Mikel Zabala

J.Ramón Goikoetxea Jesús Mª Herrasti Miguel Angel Laspiur Javier Mutuberria

Antonio Echeverria José Ignacio Gárate Txomin García Jose Mª Gisasola

José Mª Aldekoa Adrián Celaya Constan Dacosta

Juan Mª Otaegui

Chairman of Congress

Jesús Catania

Chairman of theGeneral Council

Companies Affiliated to MCC2005 ANNUAL REPORT

SEGUROS LAGUN AROCapuchinos de Basurto 6-2º48013 Bilbao(Vizcaya)Tel.: 34 944 798 300Fax: 34 944 798 383www.seguroslagunaro.com

Activities:General Insurance.

SOCIAL WELFARE

LAGUN AROPº José Mª Arizmendiarrieta s/n20500 Mondragón(Guipúzcoa)Tel.: 34 943 790 100Fax: 34 943 793 531E-mail: [email protected]

Activities:Social welfare cover for co-operators.

LAGUNARO-MONDRAGONPº José Mª Arizmendiarrieta s/n20500 Mondragón (Guipúzcoa)Tel.: 34 943 790 100Fax: 34 943 793 531

Activities:Joint workplace risk preventionservice.

BANKING

CAJA LABORALPº José Mª Arizmendiarrieta s/n20500 Mondragón(Guipúzcoa)Tel.: 34 943 719 500Fax: 34 943 719 778Servicio.de.Atencion.al.Cliente@cajalaboral.eswww.cajalaboral.es

Activities:Banking.

� CAJA LABORAL GESTIONPº José Mª Arizmendiarrieta, 520500 Mondragón(Guipúzcoa)Tel.: 34 943 790 114Fax: 34 943 790 116www.cajalaboral.es

Activities:Unit trust management.

INSURANCE

LAGUN ARO VIDACapuchinos de Basurto 6-2º48013 Bilbao(Vizcaya)Tel.: 34 944 798 300Fax: 34 944 798 383www.seguroslagunaro.com

Activities:Life insurance.

AUTOMOTIVE

BATZ SISTEMASBº Torrea 32-3448140 Igorre (Vizcaya)Tel.: 34 946 305 000Fax: 34 946 305 020E-mail: [email protected]:Assemblies. Bodywork assembly. Handbrake levers. Jacks. Pedal units.Rear axles.

CIKAUTXOBº Magdalena 2, B48710 Berriatua(Vizcaya)Tel.: 34 946 133 000Fax: 34 946 133 001E-mail:[email protected]:Rubber parts for fluid conduction,shock-absorbing, leakproof andprotection functions.

� CIKAUTXO BORJAPolígono Barbalanca50540 Borja(Zaragoza)Tel.: 34 976 869 486Fax: 34 976 866 005Activities:Conduction and fluid hosing.

� CIKAUTXO CZ.Letni,3867PSC 46801Jablone Nad NisouCZECH REPUBLICTel. 420 483 302 241Fax 420 483 302 239E-mail: [email protected]:Rubber parts for fluid conduction,shock-absorbing, leakproof andprotection functions.

� CIKAUTXO SK SLOVAKIAul. Budovatelská 6940 64 Nové ZámkyTel.: 421 35 6432 002Tel.: 421 35 6447 077Fax.: 421 35 6447 033Activities:Rubber components.

Financial Group Industrial Group

65

� CIKAUTXO ZARAGOZAPol. Ind. San valero,Nave 101Ctra. Castellón km. 23250720 ZaragozaTel.: 34 976 501 026Fax.: 34 976 501 038Activities:Shock-absorbing and leakproofcomponents.

� PARANOAIND. BORRACHA-CIKAUTXOAv. Casa Grande, 1.731Piraporinha CEP 09961- 902Diadema-SP-(BRASIL)Tel.: 55 11 40666533Fax.: 55 11 40666182Cikautxo has a 21% holding andMCC Inversiones a 14% holdingActivities:Rubber parts.

ECENARROAmilaga Kalea, 1520570 Bergara(Guipúzcoa)Tel.: 34 943 769 235Fax.: 34 943 765 637Activities:Screws, studs, ball joints and specialparts.

FAGOR EDERLANGaztanadui, 4220540 Eskoriatza(Guipúzcoa)Tel.: 34 943 719 000Fax: 34 943 719 001www.fagorederlan.esActivities:Suspension arms. Knuckles. Missioncases. Clutch housings. Gearboxcovers. Brake discs. Brake drums.Callipers. Cylinder head covers.Differential gearboxes. Gearboxes.

� AUTOMODULOS ARAGONPolígono Barbablanca50540 Borja(Zaragoza)Tel.: 976 866 077Fax: 976 866 078Activities:Assembly of rear axles for cars.

� FAGOR EDERLAN BORJAPol. Barbalanca, s/n50540 Borja (Zaragoza)Tel.: 34 976 869620Fax: 34 976 869642E-mail: [email protected]:Assembly of front corners for cars.

� FAGOR EDERLAN BRASILEIRARodavia Fernao Dias Km. 887 Cx. postal 15Bairro Ponte Alta CEP 37640-000EXTREMA-MG-BRASILTel.: 55 35 34358200Fax: 55 35 34358248Activities:Casting of automotive parts andcomponents.

� FAGOR EDERLAN SLOVENSKOPriemyselná 12 965 63 _iar nad Hronom SLOVAKIA Tel.: 421/ 45/ 601 5602, 5500 Fax: 421/ 45/ 601 5750 Activities:Aluminium injection andmachining.

� FIT AUTOMOCIONBarrio San Juan, s/nApdo. 8020570 Bergara(Guipúzcoa)Tel.: 34 943 769 044Fax: 34 943 769 156MCC Inversiones and FagorEderlan have a 66% holding.Activities:Manufacture of brake callipers.

� LUZURIAGA TAFALLATafalla (Navarra)Tel.: 34 948 700 250Fax: 34 948 702 054E-mail: [email protected]:Cylinder blocks and heads forengines.

� LUZURIAGA USURBILC/ Txiki-Erdi20170 Usurbil(Guipúzcoa)Tel.: 34 943 370 200Fax: 34 943 365 564Activities:Casting of brake housings.

FPKPolígono Ugaldeguren II, P-10 II48170 Zamudio(Vizcaya)Tel.: 34 944 522 605Fax: 34 944 522 156E-mail: [email protected] Inversiones MCC Inversiones hasa 50% holding.Activities:Plastic assembly supports. Enginecovers. Noise shields.

MAIERPol. Ind. Arabieta, s/nApdo. 10348300 Gernika(Vizcaya)Tel.: 34 946 259 200Fax: 34 946 259 219E-mail: [email protected]:Plastic injection moulding. Diemaking. Finishes: chrome-plating,screen-printing, heat engraving,tampoprint, painting, laser, etc.

� CHROMECOLichfield RoadBrownhillsWest Midlands WS8 6LHUKTel.: 44 1543 452930Fax: 44 1543 575402Activities:Plastic injection moulding andfinishing.

� MAIER CZ Filial de MAIER Prumyslova 14a79601 PostejovCZECH REPUBLIC.Activities:Automotive components.

� MAIER FERROPLASTPolígono “A Granxa”Paralela 2, Rua 136400 Porriño (Pontevedra)Apdo. 6015 36210 VigoTel.: 34 986 342 020Fax: 34 986 342 999Activities:Thermoplastic injection moulding.

� MAIER NAVARRAPolígono Ind. Elordi, s/n31979 Iraizotz-Ultzama(Navarra)Tel.: 34 948 309 210Fax: 34 948 309 333Activities:Plastic injection moulding.

� MAIER UKChaserwater Heaths IndustrialAreaAttwood RoadBurntwoodWest Midlands WS7 8GJUKTel.: 00 44 1543 277460Fax: 00 44 1543 278752E-mail: [email protected]:

Plastic injection moulding andfinishing.

MAPSACtra. Echauri, 1131160 Orcoyen(Navarra)Apdo. 100231080 PamplonaTel.: 34 948 325 011Fax: 34 948 325 323E-mail: [email protected]:Manufacture of aluminium wheelrims. Manufacture of water pumphousings. Low pressure and gravitycast aluminium parts.

66

COMPONENTS

CONSONNIBº Trobika, s/nApdo. 35E-48100 Munguía (Vizcaya)Tel.: 34 946 156 331Fax: 34 946 156 281 [email protected]:Sheathed tubular heating elements fordomestic and industrial uses.

COPRECIAvda. de Alava, 3E-20550 Aretxabaleta(Guipúzcoa)Tel.: 34 943 71 94 99Fax: 34 943 79 23 49E-mail: [email protected]:Components for gas cooking, electricand electronic cooking, washingmachines, dishwashers and homecomfort.

� COPRECI DO BRASILAv. Eurico Ambrogi Santos, 1900 A Distrito Industrial Piracangagua CEP 12010-970 Taubaté SP BRASILTel.: 55 12 286-1573 Fax: 55 12 286-1553E-mail: [email protected] www.copreci.comActivities:Taps and safety systems fordomestic for gas applications

� COPRECI CHINASouth Side of Jinhai RoadMiddle SectionSanzao Hi-Tech Industrial Park519040 Zhuhai, P. R. CHINATel.: 86(0)756 3882201-02Fax: 86(0)756 3882299Activities:Components.

� COPRECI CZKomenského 27479368 Dvorce u BruntáluCZECH REPUBLICTel.: 420 646 74 54 92Fax: 420 646 74 54 95 E-mail: [email protected] www.copreci.comActivities:Manufacture of taps and safetysystems for domestic gasapplications.

� COPRECI MEXICOC/ Uno, nº 736 Z.I. Guadalajara 44940 Jalisco MEXICOTel.: 52 33 3 145 19 63Fax: 52 33 3 145 10 56 E-mail:[email protected]:Valves for gas barbecues and tapsfor domestic gas cookers.Valves for gas heaters.Thermostats. Drain pumps.

� COPRECI SYSTEMS, S.R.L.Via G. Galilei, 1231010-Mareno di Piave (TV)ITALYTel.: 39 0438492531Fax: 39 0438492559 E-mail: [email protected]:Gas rails and pipes for cookersand hobs.

� COPRECI TURKEYGosbIhsandede Cd. Nº. 135GebzeKocaeli - IstambulTURKEYE-mail: [email protected] www.copreci.comTel.: 902627511334Fax: 902627511325E-mail: [email protected]:Gas taps for cookers and hobs.

EIKAEtxebarria - Apdo. 20E-48270 Markina (Vizcaya)Tel.: 34 946 167 732Fax: 34 946 167 746 E-mail: [email protected] www.eika.esActivities:Sheathed heating elements. Electrichotplates.Radiant heating elements and TouchControls for glass ceramic hobs.

� CZEIKAPrùmyslová, 3143/5796 01 ProstéjovCZECH REPUBLICTel.: 420 582 36 04 40Fax: 420 582 36 04 00 E-mail: [email protected] www.eika.esActivities:Electric hotplates.

� FOUNDEIKNádrazní, 50 Hlubocky-MariánskéÜdolí 783 66 CZECH REPUBLICTel.: 00 420 685067560Fax: 00 420 685067800E-mail: [email protected]:Casting.

� EIKA MEXICOAv. de las Misiones 10 Módulo 7,Parque Industrial BernardoQuintana 3ª SecciónEl Marqués 76246, QuerétaroMEXICOActivities:Manufacture and sale ofcomponents for electric cooking.

� EIKA POLSKAUl. Grabiszynska 16353439 WroclawPOLANDTele.: 487 133 25257Fax: 487 133 24568Activities:Electrical resistances.

EMBEGAP. I. San Miguel, s/nE-31132 Villatuerta(Navarra)Tel.: 34 948 54 87 00Fax: 34 948 54 87 01 E-mail: [email protected] www.embega.comActivities:Metallic decorative components fordomestic appliances.Membrane switches.Polymeric printed gaskets.

FAGOR ELECTRONICABº San Andrés s/nE-20500 Mondragón(Guipúzcoa)Tel.: 34 943 71 25 26Fax: 34 943 71 28 93E-mail: [email protected]@fagorelectronica.eswww.fagorelectronica.comActivities:Surface and axial mounting discretesemiconductors, Analogue and DigitalTV reception systems.Home automation.Regulation and control circuits fordomestic appliances and automotivesector.Wireless communications

� FAGOR ELECTRONICA(CANTABRIA)Technological Development Centre Av. de los Castros, s/n E-39005 Santander (Cantabria)Tel.: 34 942 291 400 Fax: 34 942 200 921 e-mail:[email protected]:Fleet management.Wifi networks.

� FAGOR ELECTRONICS (THAILAND) LTD.Wellgrow I.E., Bangna-Trad Km 36,82 Moo 5, Bangsamak,Bangpakong, Chachoengsao,24180THAILANDTel.: 66 38 570087-90Fax: 66 38 570091 E-mail: [email protected] www.fagorelectronica.comActivities:Surface and axial mountingdiscrete demiconductors.

67

MATZ-ERREKABº de Ibarreta, s/nE-20577 Antzuola(Guipúzcoa)Tel.: 34 943 78 60 09Fax: 34 943 76 63 75E-mail:[email protected]:Plastic injection. Fixing elements.Automation equipment for doors andshutters.

� MATZ-ERREKA MEXICOMisión de Bucareli, 8Parque Industrial Bernardo Quintana,El Marqués - 76249(Queretaro)MEXICOTel.: 52 442 221 6078Fax: 52 442 221 6080 E-mail: [email protected] Activities:Plastic injection.

ORKLICtra. ZaldibiaE-20240 Ordizia (Guipúzcoa)Tel.: 34 943 80 50 30Fax: 34 943 80 51 85 E-mail:[email protected]:Components for safety, regulation andcontrol for water heating, heating andplumbing, hot water systems andfluids.

� ORKLI NINGBONan 1 Rd. Meixu Industrial Zone Yinxian Ningbo 315103 CHINATel.: 0574 88482181Fax:0574 88482643 [email protected]:Safety devices for gas domesticappliances.

TAJOPolígono Ind. Aranguren s/nBº ArraguaE-20180 Oiartzun (Guipúzcoa)Tel.: + 34 943 26 00 00Fax: + 34 943 49 13 63 E-mail: [email protected]:Plastic injection.Mould construction for plasticinjection.

� INCOPLASTCarretera Vendrela Sant Jaume dels Domenys, K 143710 Santa Oliva, (Tarragona)Tel.: 34 977 665 481Fax: 34 977 667 977Tajo has a 40% holding.Activities:Processing of plastics.

� MANCHALANAvda. Castilla La Mancha, 11E-19171 Cabanillas del Campo(Guadalajara)Tel.: 34 949 33 75 25Fax: 34 949 33 75 26 [email protected] and Alecop each have a 20%holding.Activities:Assembly of units and subuints fordomestic appliance andautomotive sectors. Plasticinjection.

� TABIPLASTUl. Zmigrodzka 14351 - 130 WroclawNIP 895 18 25 448Tel.: 48 604082400 Fax: 48 713 329 171Activities:Transformation of plastics.

� TREBOPLASTUnhartice, 127571 01 Moravská TrebováCZECH REPUBLIC420 606 771 897420 461 311 [email protected]:Transformation of plastics.

CONSTRUCTION

Vertical Transport Systems

ELECTRA-VITORIAC/Zurrupitieta,30Pol.Industrial Jundiz01015 Vitoria (Alava)Tel.: 945-290230Activities:Vertical transport systems.

� QUALITY LIFTS PRODUCTSUnit,6 - Whaddon Bussiness Park,WhaddonNr Salisbury Wiltshire, SP5 3HFENGLANDTel.: 00 44 0 1722711122Activities:Vertical transport systems.

ORONAPol. Ind. Lastaola20120 Hernani(Guipúzcoa)Tel.: 34 943 551 400Fax: 34 943 550 047E-mail: [email protected]:Manufacture and installation of liftsand escalators. Maintenance,refurbishment and upgrading of liftsand escalators.

Structures and Handling

BIURRARENAPol. BidebitarteDonostia Ibilbidea, 28Apdo. 88720014 Astigarraga(Guipúzcoa)Tel.: 34 943 554 350Fax: 34 943 555 360E-mail: [email protected]:Machinery: After Sales Service forpublic works machinery. Environment:Design and construction of sorting andrecovery plants (light packaging,RCDs, domestic appliances and othertechnologies)Underground containers.

� MASYRE(Sevilla)Tel.: 95 440547060% by BiurrarenaActivities:Public Works maintenance.

ECOTECNIAC/Roc Boronat, 7808005 BarcelonaTel.: 34 932 257 600Fax: 34 932 210 939E-mail: [email protected]:Design, manufacture andmaintenance of wind-poweredgenerators and wind farms.

� CALDERERIA TORRES ALTAMIRAPol. Ind. El Pinar, s/n49530 Coreses (Zamora)Tel.: 34 980 500 610Fax: 34 980 500 476E-mail: [email protected]ècnia , MCC Inversiones andUrssa have a holdingActivities:Manufacture of towers for wind-powered generators.

� ECOTECNIA GALICIAPolígono IndustrialParcela B15565 AS Somozas(A Coruña)Tel.: 34 981 404 090Fax: 34 981 404 473Activities:Wind-powered generators and windfarms.

� ECOTECNIA NAVARRAPol. Ind. de Buñuel, Parcela G.131540 Buñuel (Navarra)Tel.: 94 883 20 12Fax: 94 883 20 59E-mail: [email protected]ècnia has a 25% holding.Activities:Assembly of wind-poweredgenerators.

ELURAvda.Gasteiz,22-bis01008 Vitoria (Alava)Tel.: 945 155540Activities:Timber structures.

68

ETORKIPol. Ind. Murga, 1601479 Murga-Aiala(Alava)Tel.: 34 945 399 072Fax: 34 945 399 223E-mail: [email protected]:Pine boards and planks.

LANAC/ SantxolopeteguiAuzoa, 2420560 Oñati(Guipúzcoa)Tel.: 34 943 780 111Fax: 34 943 783 222E-mail: [email protected]:Secondary timber-processing for theconstruction centre. Three-ply boardsfor formwork.

ROCHMAN48210 Ochandiano(Vizcaya)Tel.: 34 945 450 075Fax: 34 945 450 257E-mail: [email protected]:Rollways. Handling installations.Packaging and wrapping machines.

URSSACampo de los PalaciosApdo. 28401006 Vitoria (Alava)Tel.: 34 945 135 744Fax: 34 945 135 792E-mail: [email protected]/urssaActivities:Engineering, manufacture of metalstructures.

INDUSTRIAL EQUIPMENT

Leisure and sport

DIKARUrarte Kalea, 26Apdo. 193Pol. Ind. San Lorenzo20570 Bergara(Guipúzcoa)Tel.: 34 943 765 548Fax: 34 943 760 814E-mail: [email protected]:Muzzle-loading sporting guns.

EREDUOla Auzoa, 420250 Legorreta(Guipúzcoa)Tel.: 34 943 806 100Fax: 34 943 806 374E-mail: [email protected]:Metal furniture for countryside, beachand garden. Modern furniture forindoor use.

ORBEAPol. Ind. Goitondo48269 Mallabia(Vizcaya)Tel.: 34 943 171 950Fax: 34 943 174 397E-mail: [email protected]:Bicycles.

WINGROUPApartado 168Urarte, 1420570 Bergara(Guipúzcoa)Tel.: 34 943 769 056Fax: 34 943 769 178E-mail:comercial@ wingroupscoop.comActivities:Camping and fitness equipment.

� SHANGHAI WINGROUPLEISURE AND SPORTSEQUIPMENT8 Menjin Huangdu Jiading DistrictShanghai, CHINA 201 804Tel.: (86-21) 59 594 769

(86-21) 59 594 169Fax: (86-21) 59 592 187E-mail: [email protected]:

Fitness equipment. TechnicalComponents and Equipment

Technical equipmentand Components

AMPOBº Katea, s/n.Idiazabal(Guipúzcoa)Tel.: 34 943 188 000Fax: 34 943 188 130Activities:Steel casting and spun tube forindustrial valves. AMPO. Industrialvalves for petro-chemical industry,natural gas, power and aluminium.POYAM.

BECKERAmezketa Bidea, s/n20260 Alegia, (Guipúzcoa)Tel.: 34 943 653 340Fax: 34 943 654 243Activities:Copper and aluminium electricconductors.

EDERFILPol. Industrial, s/n20250 Legorreta(Guipúzcoa)Tel.: 34 943 806 050Fax: 34 943 806 349E-mail: [email protected]:Electric conductors.

HERTELLPoligono Industrial, 220267 Ikastegieta(Guipúzcoa)Tel.: 34 943 653 240Fax: 34 943 653 332E-mail: [email protected]:Manufacture of vacuum pumps, valvesand accessories for cisterns.

IRIZARSan Andrés, 620216 Ormaiztegi(Guipúzcoa)Tel.: 34 943 809 100Fax: 34 943 889 101E-mail: [email protected]:Luxury long- and medium-distancecoach bodywork.

� IRIZAR DO BRASILRodobia Mal. Rondon, Km. 252,5CEP 18603-970Botucatu-SP-BRASILTel.: 55 14 68028000Fax: 55 14 68028001E-mail: [email protected]:Coach manufacture.

� IRIZAR MAGHREBOulja, Km 0.300Sale MarruecosTel.: 212 7 81 01 15Tel.: 212 7 81 01 13Activities:Coach manufacture.

� IRIZAR MEXICOParque Ind. bernardo QuintanaParcelas 7 al 12-Manzana14Municipio El MarquésQueretaro-MEXICOTel. 00 52 42 382500Fax 00 52 42 215395E-mail:[email protected]:Coach manufacture.

� IRIZAR SOUTHERN AFRICA1.012 Kruger Avenue, PO Box. 16.468Lyttelton MANor, 0157 Centurion, GautengSOUTH AFRICATel : 27 126 441 568Fax: 27 126 441 489Activities:Coach manufacture.

� IRIZAR TVSTrichy Road, Viralimalai621316 Tamil NaduINDIATel.: 00 91 4339 20393Fax: 00 91 4339 20236E-mail: [email protected]:Coach bodywork.

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� HISPACOLDAutovía Sevilla-Málaga, K 1,841016 Sevilla(Sevilla)Tel.: 34 954 677 480Fax: 34 954 999 728Irizar has a 65% holdingActivities:Coach manufacture.

� MASATSCarretera Bruc a Manresa08240 Manresa Apdo. 171(Barcelona)Tel.: 34 938 352 900Fax: 34 938352 920Irizar has a 52% holding.Activities:Coach manufacture.

� TIANJIN IRIZAR COACH218 Hong QiNankai DistrictTianjin CHINATel.: 86 022 761 3041Fax: 86 022 761 3345Participada al 36% por Irizar.Activities:Coach manufacture.

UROLAUrola-Kalea, s/nApdo. 320230 Legazpia(Guipúzcoa)Tel.: 34 943 737 003Fax: 34 943 730 926E-mail: [email protected]@urola.comwww.urola.comActivities:Construction of blowing machines forthe manufacture of hollowthermoplastic bottles. Manufacture ofblowing moulds. Plastic extrusion.Plastic injection moulding. Plasticblowing. Plastic injection moulding-blowing.

Industrial Services

ALECOPLoramendi, s/n20500 Mondragón(Guipúzcoa)Tel.: 34 943 712 405Fax: 34 943 799 212E-mail: [email protected]:Technical educational equipment.Prefabricated electrical installations.

� PRODESOUribe Auzoa, 10202500 Mondragón(Guipúzcoa)Tel.: 34 943 712 630Fax: 34 943 711 717E-mail: [email protected]:Education and training systems.Consultancy and technicalassistance in education. Teachingmaterial. Technological researchcentres. Company creation andinnovation centres. Generalconsultancy.

ALKARGOAritz bidea 83, Bº Atela, Aptdo. 10248100 – Mungia, VizcayaTel. 34 946 740 004Fax: 34 946 741 700E-mail: [email protected]:Distribution transformers.Medium-power transformers.Autotransformers. Dry encapsulatedtransformers.

COINALDEConcejo, 1001013 Vitoria(Alava)Tel.: 34 945 264 288Fax: 34 945 253 997Activities:Nails. Wire. Metal mesh.

� COINALDE POLSKAFilial de CoinaldeUL Japonska 355220, Jelcz LascowiceTel.: 48 71 381 1266Activities:Activities: Seal manufacture.

ELKARLarrondo Beheko Etorbidea, Edif. 4 48180 Loiu(Vizcaya)Tel.: 34 944 535 205Fax: 34 944 535 776E-mail: [email protected]:Industrial catalogues. Books.Advertising leaflets. Annual Reports.Magazines. Graphic products ingeneral.

EVAGRAF Polígono Alibarra, 64 01010 Vitoria (Alava)Tel.: 34 945 245 550Fax: 34 945 245 612E-mail: [email protected]:Catalogues. Magazines. Books.Posters. Leaflets. Annual reports.

LITOGRAFIA DANONA Pol. Ugaldetxo, s/n20180 Oiartzun(Guipúzcoa)Tel.: 34 943 491 250Fax: 34 943 491 660E-mail:[email protected]:Industrial catalogues. Books.Advertising leaflets. Annual reports.Magazines. Graphic products ingeneral.

� ROTOK INDUSTRIA GRAFICAPol. Industrial Txirrita-Maleo. Pabellón 11Pol. Ugaldetxo, s/n20100 Renteria(Guipúzcoa)Tel.: 34 943 344 614Fax: 34 943 524 767E-mail: [email protected]. mondragongraphics.comMCC Inversiones has a 37%holding and Keslan, Danona andElkar a 38% holding.Activities:Printing.

OIARSOBº Zikuñaga, 57-FPolígono Ibarluze20128 Hernani(Guipúzcoa)Tel.: 34 943 335 020Fax: 34 943 335 210E-mail: [email protected]:For the health sector: Infusionequipment. Transfusion equipment.Catheters. Epicraneals. Enteralnutrition. Parentaral nutrition.Accessories and connectology. Probes.Anaesthesia equipment. Anti AIDS kit.

OSATUEdificio ZearrekobueltaSubida de Areitio, 548260 Ermua (Vizcaya)Tel.: 34 943 170 220Fax: 34 943 170 227E-mail:[email protected]:Basic defibrillators, with monitor andrecording, with pacemakers andpulsioximetry, semiautomatic.

70

HOUSEHOLD GOODS

Domestic appliances

DOMUSABº San Esteban, s/n20737 ErrezilAptdo. 95 - 20730 Azpeitia(Guipúzcoa)Tel.: 34 943 813 899Fax: 34 943 815 666www.domusa.esActivities:Individual boilers.

FAGOR ELECTRODOMESTICOSBº San Andrés, s/nApdo. 4920500 Mondragón (Guipúzcoa)Tel.: 34 943 719 100Fax: 34 943 796 881E-mail:fagorelectrodomesticos@ mcc.eswww.fagorelectrodomesticos.mcc.esActivities:Cookers. Ovens. Extractor fans.Microwave ovens. Air conditioning.Fridges and freezers. Washingmachines. Dryers. Dishwashers. Waterheaters. Electric water heaters.Storage heaters. Boilers. Kitchen unitsand kitchenware.

� EDESACervantes, 4548970 Basauri(Vizcaya)Tel.: 34 944 667 100Fax: 34 944 495 096www.edesa.mcc.esActivities:White goods.

� EKISUNAvda. Cervantes 4548970 – Basauri(Vizcaya)Tel.: 944 667100Activities:Manufacture of domesticappliances.

� EXTRA ELECTROMENAGERAvenue Hassan IIBP 179 MohammediaMOROCCOTel.: 212 2 3327412Fax 212 2 3327425Activities:Manufacture of domesticappliances.

� FAGOR-BRANDT7 Rue Henri Becquerel92854 Rueil-MalmaisonCedex-FRANCETel.: 331 471 666 06Activities:Manufacture of domesticappliances

� SHANGHAI MINIDOMESTICOSCOOKWARE21D, East OceanCentre (II)no. 618 Yan an Road EastShanghai, P.R.C. 20001Tfno. (86 21) 5385 4339Activities:Mini domestic appliances.

� GEYSER GASTECHBº San Juan s/nApdo. 15120570 Bergara (Guipúzcoa)Tel.: 34 943 769 004Fax: 34 943 767 136Fagor Electrodomesticos has a50% holding.Activities:Gas water heaters.

� GRUMALGerraundi, 1 - Apartado 10020730 Azpeitia(Guipúzcoa)Tfno. 943 157008Activities:Components for the manufactureof furniture.

� IBAIBº San Andrés, 1820500 Mondragón(Guipúzcoa)Tfno. 943 719100Activities:Auxiliary household furnishings.

� ROTARTICAAvda. Cervantes 4548970 Basauri(Vizcaya)Tfno. 944 667100Activities:Heat pumps.

� WROZAMETZmigrodzka 143 St.Wroclaw POLANDTel.: 00 48 713 244 542Fax: 00 48 713 253 363E-mail: [email protected] Inversiones and FagorElectrodomesticos have a 75.96%holding.Activities:Manufacture of domesticappliances.

Furniture

COINMAVitoriabidea 4-Z.I.Ali - Gobeo01010 Vitoria (Alava)Tel.: 34 945 241 616Fax: 34 945 240 637E-mail: [email protected]/coinmaActivities:Office furniture.

� COINMA INDIA41, Sector 18, Udyog Vihar,Gurgaon122001 Haryana INDIATel.: 91 124 6348245Fax: 91 124 6346870E-mail:[email protected]:Furniture for the home and office.

DANONAAnardi Area, 2Apdo. 4220730 Azpeitia (Guipúzcoa)Tel.: 34 943 815 900Fax: 34 943 151 481E-mail: [email protected]:Veneered and melamine loungefurniture. Veneered and melaminedining room furniture. Veneered andmelamine bedroom furniture.Veneered and melamine children’sbedroom furniture. Upholstered sofas.

GERODANUrola 6. Edificio Loyola 9120730 Azpeitia(Guipúzcoa)Tfno. 943 157979Activities:Furniture industry.

71

Comercial Equipment

FAGOR INDUSTRIALSantxolopetegui, 22Aptdo. 1720560 Oñati(Guipúzcoa)Tel.: 34 943 718 030Fax: 34 943 718 181E-mail: [email protected]:300 to 3,000 dishes/hourdishwashers. Glass washers. 7-10-14-25-50 kg. washing machines. Ranges.Brat pans. Tilting skillets. Fryers. Fry-tops. Convection and combi ovens(gas and electric). Commercialrefrigeration.

� DANUBEParq D’Activités de Sologne, BP 1941600 Lamotte-BeuvronTel.: 33-2-548 80 576Fax: 33-1-549 68 904Fagor Industrial has a 60%holding.Activities:Industrial ironing and dryingmachines.

� EDESA HOSTELERIAPolígono San MilansC/Can Milans, 1308110 Moncada I Reixach,(Barcelona)Tel.: 34 935 651 130Fax: 34 935 750 342Activities:Products for the preparation offoodstuffs.

� FAGOFRICtra. Córdoba-Málaga km. 814900 Lucena (Córdoba)Tel.: 34 956 516 179Fax: 34 957 515 621 Fagor Industrial has a 51%holding.Activities:Refrigeration equipment.

� FAGOR ENDÜSTRIYEL DAYANIKLI Gebze Güzeller Organize San. SitInon¨Mah. Balçik Yolu Üzeri32 M IV B Pafta 4133 Ada 4-5ParselGebze/Kocaeli,TURKEYTel.: 00 90 262 751 1031Activities:Commercial equipment.

� FAGOR GASTRO POLSKA UL. GdanskaPalmiri05-152 CzosnowPOLANDTel 00 48 223 120 000Activities:Cold appliances and StaticPreparation.

� TALLERES ROCAPolígono Industrial La Quintana08514 San Juliá de Vilatorta(Barcelona)Tel.: 34 938 122 790Activities:Manufacture and sale ofmachinery and accessories for thecatering industry.

KIDEPol. Gardotza, s/n48710 Berriatua (Vizcaya)Tel.: 34 946 036200Fax: 34 946 036 220E-mail: [email protected] Activities:Insulated panels and doors forcoldrooms, cold stores and miniboxes.

Automation and Control

FAGOR AUTOMATIONBº San Andrés s/nApdo. 14420500 Mondragón (Guipúzcoa)Tel.: 34 943 719 200Fax: 34 943 791 712E-mail: info@ fagorautomation.eswww.fagorautomation.comActivities:Numerical control system (CNC).Digital readouts. Linear and rotarytransducers. Digital regulationsystems and motors.

� BEIJING FAGOR AUTOMATIONEQUIPMENTC-1 Yandong Building, No. 2 Wanhong Xijie,XibajianfangChaoyang DistrictBeijing, Zip Code: 100015Tel.: 86-10-84505858Fax: 86-10-84505860E-mail: [email protected]:Automation and control.

Engineering andConsultancy

LKSPº José Mª Arizmendiarrieta, 520500 Mondragón(Guipúzcoa)Tel. 34 902 540 990Fax: 34 943 771 012E-mail: [email protected]:Consultancy: Management Advice,Specific solutions, Training in Strategy,Quality and Continuous Improvement,Marketing, Organisation and HumanResources, Industrial Engineering andLogistics, Economic-Financial matters.Account auditing.Telecommunications and engineering.

� I3SPlaza del Museo 1, 3º48009 – Bilbao, VizcayaFax. 34 944 424 726E-mail: [email protected], MCC Inversiones and AIChave a 51% holding.Activities:SAP products.

� LKS CDEEZurbano, 69, 1ª planta28010 MadridTel.: 34 913 191 299Fax: 34 913 198 102E-mail: [email protected], LKS, S.Coop have a 73%holding.Activities:Engineering and consultancy.

� LKS IAMMAita Larramendi, 5 2º izda.48012 BilbaoTel.: 944 702 080Fax: 944 701 107 E-mail: [email protected] has a 60% Holding.Activities:Computing and softwaredevelopment.

� SEITechnopole Izarbel Inmeuble Cré@ticité Batimen A 64210Bidart, FRANCETel.: 335 5958 0000Fax: 335 5958 0199E-mail: [email protected]. Activities:Computing and softwaredevelopment.

ENGINEERING ANDCAPITAL GOODS

72

� LKS TASACIONESPol. Basabe, Edificio F20550 Aretxabaleta(Guipúzcoa)Tel.: 943 712 100Fax: 943 797 735E-mail:[email protected] Ingenieria has a 90% holding.Activities:Valuation of real estate assets andrights. Property advice. Propertymanagement.

� MACLAPlaza de Escabazábal, 8-6º31600 Burlada (Navarra)Tel.: 34 948 363 456Fax: 34 948 136 694LKS Ingeniería has a 46% holding.Activities:Civil engineering, Constructionengineering, Town planningadvine. Environmental advice.

� MCC TELECOMPolígono Basabe FO-2ªplanta.20550 – Aretxabaleta, GuipúzcoaTel. 34 943 712 451Fax. 34 943 712 351E-mail: [email protected]:Connectivity and Content Services.

MSIMONDRAGON SISTEMAS DEINFORMACIONAma kandida, 21 (Denac)20140 Andoain(Guipúzcoa)Tel.: 34 943 594 400Fax: 34 943 590 536E-mail: [email protected]@msi.mcc.es

Activities:Computer systems and services.

ONDOANParque Tecnológico Edif. 101 módulo C48170 Zamudio(Vizcaya)Tel.: 944 522 313 Fax: 944 521 047E-mail: [email protected]ón en Guipúzcoa:Polígono Basabe, F0520550 Aretxabaleta(Guipúzcoa)Tel.: 943 771 587Fax: 943 771 684E-mail: [email protected]:Design and development of:Engineering projects and sitemanagement, carrying out andmaintenance of general installations,emergency and self-protection plansand turnkey systems. EnvironmentalConsultancy and Advice Service.Workplace Risk PreventionConsultancy and Advice Service.Maintenance and Repair of generalinstallations in industrial buildings andservices.

� ONDOAN SERVICIOSParque Tecnológico Edif. 101 módulo C48170 Zamudio(Vizcaya)Tel.: 944 522 270Fax: 944 521 047Activities:Installation maintenancemanagement.

Forming and Assembly

BATZ TROQUELERIABº Torrea 32 - 3448140 Igorre(Vizcaya)Tel.: 34 94 6315 707Fax: 34 94 6315 566E-mail: [email protected]:Die manufacture.

MATRICIPolígono Ugaldeburu II48170 Zamudio(Vizcaya)Tel.: 34 946 002 020Fax: 34 944 522 225Activities:Engineering, design and manufactureof tooling, for drawing and platework, for car bodywork. Completepackage projects, integrated turnkeyservices including overall design(concurrent engineering, simulation,prototypes, solid and 3D design),manufacture (high speed machining,assembly and fine tuning) andcommissioning of tooling at theclient’s plant.

� MB SISTEMASPolíg. Indust. IgeltzeraIgeltzera, 848610 Urduliz(Vizcaya)Tel.: 34 944 030 626Fax: 34 944 030 627Activities:Sheet metal assembly andwelding systems.

LKS INGENIERIAPº José Mª Arizmendiarrieta, 520500 Mondragón(Guipúzcoa)Tel.: 34 943 712 488Fax: 34 943 793 878E-mail: [email protected]:Engineering consultancy. Industrialdesign. Civil engineering. Building.

� EDE INGENIEROSParque empresarial InbisaEdificio C. Polígono Aurrera M848510 Trapagarán(Vizcaya)LKS Ingeniería has a 70% holding.Activities:Consultancy and energy supplies,Cogeneration, Installation andprocess engineering.

� INDISERPlaza Alférez Provisional, 3entreplanta26001 Logroño(La Rioja)Tel.: 941 221 318Fax: 941 226 558E-mail: [email protected]:Winery project engineering.

� LKS STUDIOAlmagro, 15 - 5ª planta28010 MadridTel.: 917 022 474Fax: 917 022 475E-mail: [email protected] al 60% por LKSIngenieria y AIC.Activities:Building project management.

73

MACHINE TOOLS

Machine Tools(Start-up)

DANOBATArriaga kalea, 21Apdo. 28E-20870 Elgoibar(Guipúzcoa)Tel.: 34 943 748 044Fax: 34 943 743 138E-mail: [email protected] www.danobat.comActivities:Grinding machines: CNC, cylindrical,exteriors and interiors, flat surfaces,bridge and special for theaeronautical sector. Horizontal andvertical sawing machine with storagesystems. Lathes: CNC, lathe centres,vertical.

� DANOMAR3400 CLUJ Napoca -ROMANIA B-dul MunciiNr 14 PO.Box1404Tel.:0040-64-415006Fax.:0040-64-415047Activities:Ancillary industry for machinetools.

� NEWALL UK Ocean House, Newark RoadPeterboroughPE1 5UA, UKTel.: 44 (0) 1733 894 050Fax: 44 (0) 1733 892 040E-mail: [email protected] www.newall-uk.comActivities:Grinding machines for the aero-space industry and retro-fitting.

Forming machinery

AURRENAKVitorialanda 15Ali - Gobeo01010 VitoriaTel.: 34 945 244 850Fax: 34 945 246 912E-mail: [email protected]:Tooling for different iron andaluminium casting technologies in theautomotive sector.

FAGOR ARRASATEBº San Andrés, 20Apdo. 1820500 Mondragón(Guipúzcoa)Tel.: 34 943 719 999Fax: 34 943 799 677E-mail: fagorarrasate@fagorarrasate.comwww.fagorarrasate.mcc.esActivities:Presses and stamping systems. Stripprocessing systems. Systems forcontinuous manufacture of complexmetal parts. Welded tube and sectionmanufacturing systems.Transfer, progressive and conventionaldies. Engineering and consulting.

� GILLETRechbergstrasse, 2971127 Gaüfelden, GERMANYTel.: 49 703 297 9621Fax: 49 703 297 9621Fagor Arrasate as a 50% holding.Activities:Design and manufacture oftransfer and peripheral systemsfor presses.

LORAMENDIAlibarra, 2601010 VitoriaTel.: 34 945 184 300Fax: 34 945 184 304www.loramendi.esActivities:Machinery for casting and assembly.

MONDRAGON ASSEMBLYPolígono IndustrialBainetxe, Pab. 5-A20550 Aretxabaleta(Guipúzcoa)Tel.: 34 943 712 080Fax: 34 943 712 210E-mail: [email protected]:Automatic assembly systems. Robotics.

� GAINDU-MONDRAGONASSEMBLY MÉXICOEl Marqués Norte 2, Nave BC.P. 76240 Mpio. El Marqués,Querétaro, MEXICOTel.: 52 442 192 4200Fax: 52 442 192 420950% of its stock is held byrMondragón Assembly Activities:Automatic assembly systems.

� MONDRAGON ASSEMBLY (CATALUNYA)Ronda Industria 22-2408210 Barberá del Vallés(Barcelona)Tel.: 34 937 192 143Fax: 34 937 187 018E-mail:j.bolea@mondragón-assembly.comFagor Sistemas has a 60%holding.Activities:Automatic assembly systems.Robotics.

� MONDRAGON ASSEMBLY ALEMANIAWinterspürer Strase 19D-78333 StockachTel.: 49 777 187 73-0Fax: 49 777 187 73-29E-mail:[email protected]:Automatic assembly systems.Robotics.

� MONDRAGON ASSEMBLY FRANCIASite d’OrangeParc d’Activités Les Pradines1376, R. N. 7 route de Lyon84100 OrangeTel.: 33 490 111 660Fax: 33 490 511 887E-mail:[email protected] de Compiègne84. rue des Longues Rayes60610 La Croix Saint OuenTel.: 33 344 915 200Fax: 33 344 910 025E-mail:[email protected]:Automatic assembly systems.Robotics.

ONA-PRESPol. Industrial Ugaldeguren IIBº San Antolín, s/n48170 Zamudio (Vizcaya)Tel.: 34 944 523 808Fax: 34 944 523 980E-mail: [email protected]:Hydraulic presses.

74

ULMA C y E.

� ULMA AGRÍCOLAPs. Otadui, 3Apartado 1320560 Oñati (Guipúzcoa)Tel.: 943-034900Fax: 943-716466E-mail: [email protected]:Greenhouses.

� ULMA CONSTRUCCIÓNPs. Otadui, 3Apartado 1320560 Oñati (Guipúzcoa)Tel.: 943-034900Fax: 943-034920E-mail:[email protected]:Industrialised systems for theconstruction sector.

� ULMA PACKAGINGBº Garibai, 28Apartado 14520560 Oñati (Guipúzcoa)Tel.: 943-739200Fax: 943-780819E-mail: [email protected] systems andequipment.

ULMA FORJABº Zubillaga, 3Apartado 1420560 Oñati (Guipúzcoa)Tel.: 943-780552Fax: 943-781808E-mail: [email protected]:Flanges and Fittings.

INDUSTRIAL SYSTEMS

GOITIArriaga Kalea 1 Apdo. 80E-20870 Elgoibar (Guipúzcoa)Tel.: 34 943 748 023Fax: 34 943 748 144E-mail: [email protected]:CNC sheet metal punching machines.CNC punching machines with shearsincluded. Laser cutting machines.Automatic press brakes and flexiblebending and punching systems.Punching tools. Combined punchingmachine.

LEALDEBarrio Kortazar s/n Apdo. 11E-48.288 Ispaster (Vizcaya)Tel.: 34 946 844 004Fax: 34 946 844 130E-mail: [email protected]:Horizontal CNC lathes.Lathes for fluid valves.

SORALUCEBº OsintxuApartado 90E-20570 Bergara (Guipúzcoa)Tel.: 34 943 769 076Fax: 34 943 765 128E-mail: [email protected]:Moving column milling centres. Fixedbed CNC milling machines. Machiningcentres. Gantry machining centres andmilling machines.

� DANOBAT-BIMATECLimburg (GERMANY)Tel.: (49) 643 197 820Fax: (49) 643 171 [email protected] Activities:Milling machines.

Machinery for Wood,Tooling and Fixtures

DOIKIPol. Ind. Goitondo 548269 Mallabia (Vizcaya)Tel.: 34 943 171 600Fax: 34 943 174 273E-mail: [email protected]:Dimensional verification tooling. Highprecision mechanics. Electronic,pneumatic and mechanical gauges.Machining fixtures.

EGURKOBasusta Bidea, 9Apdo. 2520750 Zumaia (Guipúzcoa)Tel.: 34 943 860 100Fax: 34 943 143 107E-mail: [email protected]:Machinery for wood. Edge veneeringmachines. Profiling machines.Combined veneering + profilingmachines. Sanding machines.

� EGURKO PLANERKOSt. Oraspie, 10Incurte, Transilvania Const.Hala 2, DP 40000 29Cluj Napoca, RUMANIETel 40 364 401 452Activities:Timber machinery.

LATZAvda. de los Gudaris, s/nApdo. 5620140 Andoain (Guipúzcoa)Tel.: 34 943 592 512Fax: 34 943 591 391E-mail: [email protected]:Standard HSS, HSSCo and solidcarbide drills. Special HSS, HSSCo andsolid carbide tools.

ORTZAPol. Areta, s/n31620 Huarte-Pamplona (Navarra)Tel.: 34 948 330 438Fax: 34 948 330 002E-mail: [email protected]:Machinery for wood. Equalising andsectioning saws. Machining centres.

� OVERBECKKonrad Adenauer Strasse 27D-35745 Herborn, GERMANYTel.: 49 2772 801-0Fax: 49 2772 801-153E-mail: [email protected]:Cylindrical interior and combinedinterior/exterior grindingmachines.

DANOBAT SISTEMASDANOBAT SISTEMASArtzabal auzoa s/n20820 - DebaTel.: 34 943 748 050Fax: 34 943 743 767E-mail:[email protected]:Special and transfer machines.Flexible machining lines. High speedhorizontal machining centres.

DANO-RAILApraiz Kalea, 1 20870 Elgoibar (Guipúzcoa)Tel.: 943 748050 Fax: 943 743767Activities:Railway maintenance products.

ESTARTA Sigma IndustrialdeaXixilion kalea, 2, Pab. 10 Apdo. 147E-20870 Elgoibar(Guipúzcoa)Tel.: 34 943 743 705Fax: 34 943 741 758E-mail: [email protected]:Construction of centreless grindingmachines.

GOIMEKItziarko Industrialdea, 2. Partzela 20829 Itziar-Deba (Vizcaya)Tel.: 943 606315 Fax: 943254405Activities:High-performance machining.

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AGRO-FOOD

AUZO-LAGUNUribarri Auzoa, 1320500 Mondragón (Guipúzcoa)Tel.: 34 943 794 611Fax: 34 943 794 366E-mail: [email protected]:Group catering service. Cooked dishes.Cleaning of buildings and premises.Complete service for the health caresector.

� COCINA CENTRAL GOÑIRivera de Axpe 38Erandio 48.950Tel. 944 630 588Fax 944 630 221Activities:Group catering service.

� COMISLAGUNPadre León, 9Alaquas(Valencia)Tel.: 34 961 988 016Fax: 34 961 515 907E-mail: [email protected] has a 73.4% holding.Activities:Group catering service. Completeservice for health care sector.

� JANGARRIAKatuarri, 20Ansoain(Navarra)Tel.: 34 948 140 192Fax: 34 948 131 892Activities:Group catering service. Completeservice for health care sector.

BARRENETXEOkerra, 748270 Markina (Vizcaya)Tel.: 34 946 168 143Explot. Berriatua:Tel.: 34 946 139 157Explot. Etxeberria:Tel.: 34 946 166 173E-mail: [email protected]:Horticulture in greenhouses and theopen air.

� EROSMERBº San Agustín, s/n48230 Elorrio (Vizcaya)Tel.: 34 946 211 211Fax: 34 946 211 222Activities:Retailing of consumer products inlarge stores.

� FORUM SPORTBº Kortederra, s/n48340 Amorebieta(Vizcaya)Tel.: 34 946 300 094Fax: 34 946 300 760E-mail: [email protected]% by Grupo Eroski.Activities:Shopping and Sports Centres.

� SERVIHOSTEL,Erein ComercialPolígono Sansinenea, Parcela A320740 - Zestoa(Guipúzcoa)Tel.: 943 89 72 60Fax: 943 89 72 [email protected] markets anddistributes fresh foodstuffs andclearing products for the Horecachannel (hotels, restaurants andcatering) providing integralsolutions for all business needs inthe catering sector through anetwork of sales reps and with ahome delivery service forcustomers.

DISTRIBUTION

GRUPO EROSKIBº San Agustín, s/n48230 Elorrio(Vizcaya)Tel.: 34 946 211 211Fax: 34 946 211 222E-mail: [email protected]:Retailing in small and large stores: fruitand vegetables, meat and cold meats,fish, dairy products, groceries, drinks,frozen food, sundries and clearingmaterials, textiles, domestic appliances,leisure articles, do-it-yourselef, soundand vision, kitchenware, travel andpetrol.

� DEPARGEL,PERFUMERÍAS IFEdificio San Isidro IIIdorsolo Kalea, 151ª planta, Dpto. 1248160 Derio (Vizcaya)Tel.: 94 674 41 66 Fax: 94 674 46 93web: www.infaradis.comActivities:Retail distribution of perfumeryítems.

� EREIN COMERCIALPol. Ibur Erreka, s/nApdo. 24220600 Eibar (Guipúzcoa)Tel.: 34 943 208 544Fax: 34 943 208 [email protected]:Marketing of food products to thecatering trade and collectives.

Distribution GroupULMA HORMIGON POLIMEROBº Zubillaga, 89Apartado 2020560 Oñati (Guipúzcoa)Tel.: 943-780600Fax: 943-716469E-mail: [email protected]:Prefabricated elements forconstruction.

ULMA MANUTENCION

� ULMA CARRETILLAS ELEVADORASPs. Otadui, 8Apartado 3220560 Oñati (Guipúzcoa)Tel.: 943-718033Fax: 943-782910E-mail:[email protected]:Forklift trucks

� ULMA HANDLING SYSTEMSBº Garagaltza, 50Apartado 6720560 Oñati (Guipúzcoa)Tel.: 943 782492Fax: 943 782910 - 943 718137E-ail:[email protected]:Logistics Engineering andConsulting.

(In addition to the companieslisted here, 27 subsidiariesdistributed in various countriesmake up the ULMA Group). Formore information visit thewebsite: www.ulma.com)

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Research and Education

IKERLANJosé María Arizmendiarrieta, 2Apdo. 14620500 Mondragón(Guipúzcoa)Tel.: 34 943 771 200Fax: 34 943 796 944E-mail: [email protected]:Contracted R&D projects for thedevelopment of new products or forthe improvement of productionprocesses. Mecatronics: electronicsand technical design and productionsystems. Energy: rational use ofenergy, renewable energy.

KONIKERPol. Ind. Bainetxe 5ª20550 Aretxabaleta(Guipúzcoa)Tel.: 34 943 039 360Fax. 34 943 039 [email protected]:R&D in forming and assembly.

LORTEKBarrio La Granja s/n20240 Ordizia(Guipúzcoa)Tel.: 34 943 882 303Activities:Joining technologies.

MIKUribarri Etorbidea, 3Apartado 7920500 Mondragón(Guipúzcoa)Tel.: 34 943 719 191Fax: 34 943 793 999E-mail: [email protected]:Business management researchcentre.

RESEARCH CENTRES

AOTEKBarrio San Andrés s/nApartado 220500 Mondragón(Guipúzcoa)Tel.: 34 943 039805Fax: 34 943 [email protected]:Activities: Automation and optics.

EDERTEKUribarri-Auzoa, 6Apdo. 19, Mondragón, (Guipúzcoa)Tel.: 34 943 739 313Fax: 34 943 718 086Activities:Innovation and develpment.

GARAIAUribe-Auzoa, 320.500 Mondragón(Guipúzcoa)Tel.: 34 943 719 181Fax: 34 943 793 [email protected]:Innovation and development.

HOMETEKBº San Andrés, 1820500 Mondragón(Guipúzcoa)Tel. 943 719 100Activities:Household equipment.

IDEKOArriaga kalea, 2Apdo. 8020870 Elgoibar(Guipúzcoa)Tel.: 34 943 748 000Fax: 34 943 743 804E-mail: [email protected]@ideko.eswww.ideko.esActivities:Development of and innovation inmachine tools and systems: Productdevelopment. Improvement ofproduction processes. Technicalsupport. Technology monitoring.

MTCMaier technology centrePol. Ind. Arabieta48300 Gernika(Vizcaya)Tel.: 34 946 259 265Fax: 34 946 259 258E-mail: [email protected]:Research and development inautomotive assemblies andcomponents made withthermoplastics. Development of newtechnologies.

ORONA EICPolígono Lastaola, s/n20120, Hernani,(Guipúzcoa)Tel.: 34 943 551 400Fax: 34 943 550 047Activities:Vertical transport systems.

ULMA PTCBº Garibai, 28 Apartado 14520560 Oñati,(Guipúzcoa)Tel.: 34 943 039 350Fax: 34 943 039 [email protected]:Research and development.

EDUCATION AND TRAINING CENTRES

ARIZMENDILarrin Plaza, 120550 Aretxabaleta(Guipúzcoa)Tel.: 943 793 132Fax: 943 797 922E-mail:[email protected]:Education.

CIM (AHIZKE)Avenida de Alava, 420500 Mondragón(Guipúzcoa)Tel.: 34 943 712 055Fax: 34 943 712 181www.cim-idiomas.comActivities:Language training, translation andinterpretation.

BEHI-ALDEOlaeta-Aramaiona(Alava)Apdo. 44 MondragónTel.: 34 945 450 100Granja: 34 945 450 100Activities:Milk, Livestock for breeding and meat.

GSRUribe Auzoa, 1320500 Mondragón (Guipúzcoa)Tel.: 34 943 712 164Fax: 34 943 712 165E-mail: [email protected]:Residential service management.

MIBACtra. Etxebarria, s/n48270 Markina (Vizcaya)Tel.: 34 946 167 884Fax: 34 946 167 886Olaeta-Aramaiona(Alava)Granja:34 945 450 259Activities:Compound feeds. Small agriculturalmachinery. Fertilisers and seeds.Phytosanitary products. Veterinaryservice.

MULTIFOODBº Uribarri, 13 A20500 Mondragón (Guipúzcoa)Tel.: 34 943 711 960Fax: 34 943 711 961Activities:Ready-prepared food.

UNEKELBarriada de Berrio, s/n48230 Elorrio (Vizcaya)Tel.: 34 946 167 884Fax: 34 946 167 886Activities:Breeding of rabbits.

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SUPPORT BODIES

ATEGIIturriotz, 27 - 2º20500 Mondragón(Guipúzcoa)Tel.: 34 943 711 930Fax: 34 943 773 101E-mail: [email protected]:Purchasing portal.

EZAIP José María Arizmendiarrieta 520500 Mondragón, (Guipúzcoa)Tel 34 943 779 307Fax 34 943 796 632E-mail: [email protected]

Activities:Conducting research into public policies.

FUNDACION MCCArizmendiarrieta, 520500 Mondragón(Guipúzcoa)Tel.: 34 943 779 300Fax: 34 943 796 632E-mail: fundació[email protected]:Promotion of the social economy.

MCC INVERSIONESArizmendiarrieta, 520500 Mondragón(Guipúzcoa)Tel.: 34 943 779 300Fax: 34 943 796 632Activities:Company promotion.

MCC DESARROLLOPº José María Arizmendiarrieta, 520500 Mondragón(Guipúzcoa)Tel.: 34 943 779 300Fax: 34 943 796 632www.mondragon.mcc.esMCC Inversiones and Caja Laboralhave a 23.75% holding.Activities:Company promotion.

MCC INNOVACIONPº José María Arizmendiarrieta, 520500 Mondragón(Guipúzcoa)Tel.: 34 943 779 300Fax: 34 943 796 632www.mondragon.mcc.esActivities:Funding of technological projects.

MCC NAVARRAAvda. Carlos III, 36-1ºPamplona(Navarra)Tel.: 34 943 421 942Fax: 34 943 421 94325% by MCC. Activities:Company promotion.

MCC PROMOCIONP José María Arizmendiarrieta 520500 Mondragón, (Guipúzcoa)Tel.: 34 943 779 300Fax.: 34 943 796 632MCC and Caja Laboral by 36%Activities:Company promotion.

MCC SUSTRAIArizmendiarrieta, 520500 Mondragón(Guipúzcoa)Tel.: 34 943 77 93 00Fax: 34 943 79 66 32Activities:Property management.

INTERNATIONAL SERVICES

MCC INTERNACIONALArizmendiarrieta, 520500 Mondragón(Guipúzcoa)Tel.: 34 943 779 300Fax: 34 943 796 632E-mail: [email protected]:Internacional business promotion.

Support Bodies andInternational Services

MONDRAGON UNIBERTSITATEAC/Loramendi, 420500 Mondragón(Guipúzcoa)Tel.: 34 943 794 700Fax: 34 943 791 536Activities:University education.

� HUMANITIES AND EDUCATION SCIENCE FACULTY20540 Eskoriatza(Guipúzcoa)Tel.: 34 943 714 157Fax: 34 943 714 032E-mail: [email protected]:University Teacher TrainingCollege.

� ETEOEscuela UniversitariaEstudios EmpresarialesLarraña, 3320560 Oñate(Guipúzcoa)Tel.: 34 943 781 311E-mail: [email protected]:Training in business and administration.

� GOIERRIGranja Auzoa, s/n.20240 Ordizia(Guipúzcoa)Tel.: 943 880 062Fax: 943 880 176E-mail:[email protected]:Education.

� LEA-ARTIBAIAvda. Jemein, 1948270 Markina(Vizcaya)Tel.: 34 946 167 552Fax: 34 946 166 674www.leartik.comActivities:Technical education.

� MONDRAGON ESKOLAPOLITEKNIKOA (MEP)C/Loramendi, 420500 Mondragón(Guipúzcoa)Tel.: 34 943 794 700Fax: 34 943 791 536E-mail: [email protected]:Technical education.

MONESantamarina s/n20560 Oñate,(Guipúzcoa)Tel.: 34 943 717 026Fax: 34 943 717 059E-mail: [email protected]:Business School.

OTALORAPalacio OtaloraBarrio Aozaraza s/n20550 Aretxabaleta(Guipúzcoa)Tel.: 34 943 712 406Fax: 34 943 712 338E-mail: [email protected]:Co-operative and business training.

TXORIERRI POLITEKNIKAIKASTEGIAUntzaga Ibaia kalea, 148016 Derio (Vizcaya)Tel.: 34 944 034 060Fax: 34 944 034 061E-mail: [email protected]:Technical education.

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MONDRAGON BEIJINGRoom 926, GoldenLand Building32 Liang Ma QiaoRoad, Chaoyang District,100016,Beijing, P.R.CHINATel.: +8610 6464 3681Fax: +8610 6464 3680E-mail: [email protected]:Corporate office.

MONDRAGON ZAGROSArizmendiarrieta, 520500 Mondragón(Guipúzcoa)Tel.: 34 943 779 354Fax: 34 943 796 632E-mail: [email protected]:Commercial and Industrial services.

MCC Entities

Cooperatives 108

Subsidiary companies 138

Friendly societies 1

Foundations 2

Support bodies 7

International services 8

Total 264

MCC INDIAW-16, 1st. Floor,Shivram Business Centre,Greater Kailash - II110 048 - New DelhiINDIATel.: 9111 416 08352Fax: 9111 416 38203E-mail: [email protected]

MCC MEXICOLa Fontaine 353Col. PolancoDel. Miguel HidalgoMEXICO DF 1560Tel.: + 52 555 250 9797Fax: + 52 555 250 1294E-mail: [email protected]

MCC MONDRAGON-BRASILAlameda Santos 2.335, 7º andar,Cj.71 CEP 01419-002Sao Paulo-SP-BRASILTel.: 55 11 3082 3336E-mail: [email protected]:Corporate office.

MCC RUSIARubleva - Uspenskoye Shosse1st. Km., Building 6Odintsovskiy District,Moscow Reagon 143030RUSSIATelefono: + 7495 739 6304Fax: + 7495 739 6304E-mail: [email protected]

MCC USA1775 Pensylvania Avenue, N.W.10thFloor, Washington, D.C. 20006 USATel.: +1 202 463 7887Fax: +1 202 861 4784E-mail: [email protected]:Corporate office.

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50th Anniversary · certificates and awards for quality and business excellence at MCC was as...

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