Indra Annual Report 09 01 02 03 04 05 Introduction Yes to innovation Our business Our stakeholders Commitments and results CHAIRMAN’S LETTER 8 Indra Annual Report 09 01 02 03 04 05 Introduction Yes to innovation Our business Our stakeholders Commitments and results CHAIRMAN’S LETTER 9 INDRA, 10 YEARS OF STRENGTH This Annual Report summarises our activity and our commitment as a company and in particular it highlights the sustainable value of our solutions and services, which enables us to use our own activity as a springboard from which to help and encourage other public and private, regional and global organisations, to be innovators. This innovation encompasses and extends to all spheres, including energy efficiency systems, emissions measurement, control and management, and remote control of the environmental aspect of sustainability; citizens’ services and participation, electronic administration, the scorecard system, localisation and monitoring, smart grids and knowledge portals emphasising economic sustainability that secures the future of organisations and companies; and solutions and services to facilitate remote healthcare, employee mobility, accessibility, supplier chain responsibility and equality policies, all within the sphere of social commitment, which is the third pillar of sustainability. This commitment to innovation prioritises substantial investment in talented professionals, in supporting their development and in retaining them at Indra. Consequently, this year we have grown in talent an increasingly international talent that we are managing through a new model based on both diversity and values, on the ethical outlook linked to sustainability. INDRA, A GROWTH COMPANY OFFERING SUSTAINABLE VALUE This year we approved the revised version of our Code of Ethics and Professional Conduct, which not only sets out the internal control systems and other procedures to prevent, identify and correct any deficiencies or weaknesses in the company’s compliance and control systems. Above all, this Code unites all of us working at Indra in a commitment to the strong values (ambition, determination, rigour, sensitivity and originality) which must define and distinguish us. The following report has been prepared in accordance with the Global Reporting Initiative’s G3 Guidelines, to application level A+, as well as the AA1000 APS (2008) Accountability standard, including our conduct in respect of the principles of the Global Compact, to which we are wholeheartedly committed. The result is a balanced and fair presentation of our economic, environmental and social performance, which has been externally verified. Total shareholder remuneration 1999-2009 Revenue growth (Organic CAGR 1999-2009) Profitability (EBIT mg) 10,3% 11,4% 11,8% * 11,6% 10,4% 10,8% 11,0% 11,1% * 11,1% 11,4% 11,4% Indra 17.2% annual Significant over the sector Our future hinges on our ability to continue persevering and progressing in developing our Javier Monzón highly technology-oriented solutions and services; Chairman on recruiting and retaining the most talented professionals; on maintaining and strengthening the position of an increasing number of our leading customers with large-scale business projects and on boosting our global development and presence. Stock performance 14% 10 % 9,4% 8,5% 8,0% Indra +268% 7,4% 6,6% 5,4% 5,1% 6,0% 3,5% European IT Companies 3% Indra Indra International European IT companies 99 00 3,7% 2,7% over revenues 04 05 06 07 08 09 66% 99 00 01 02 03 04 05 06 07 08 09 IBEX +20% NAXDAQ -5% 01 02 03 Please go to www.informeanual2009.indra.es/en/annual-report/introductionn/chairman-letter to view the message of the President. IT COMPANIES -8% *Integration of Azertia: September 2006. Integration of Soluziona: January 2007 Indra Annual Report 09 01 02 03 04 05 Introduction Yes to innovation Our business Our stakeholders Commitments and results SUSTAINABLE INNOVATION 18 Indra Annual Report 09 01 02 03 04 05 Introduction Yes to innovation Our business Our stakeholders Commitments and results SUSTAINABLE INNOVATION 19 Indra’s Innovation Ecosystem Our open innovation model: Connect to Innovate At Indra we understand that organisations must be able to use both external and internal ideas on their path towards technological development. This is why we have an open innovation model, and rely on all of our stakeholders to help us innovate. We are convinced that the most innovative companies are built above all on the talent available both internally and externally: • • • • • • • • Employees Universities and Research Centres Customers Partners Suppliers Public Administrations Society Etc. or a shrinking market. In these cases, the need to innovate is aimed at the company’s own processes. At Indra we also innovate our own processes permanently, in an attempt to make them faster, and more dynamic, using resources more efficiently and tapping the most suitable resources at any given time. Part of this strategy is our Software Labs network. This is a network of laboratories specialising in software development located in nine different countries in Asia, Europe and Latin America, which work as virtual factories 24 hours a day, 365 days a year. However, the value of Indra’s software labs network extends well beyond simply improving productivity. The software labs network represents a standard-bearing technological hub at Indra to develop projects using state-of-theart technologies and architectures, and it affords significant added value to all the projects it handles. Furthermore, the software labs network is a key element in Indra’s relationship with universities, and is often used to channel that relationship. Our Software Labs comprise a highly-qualified team of professionals and indeed we employ personnel certified by the AEC (Spain’s quality association - Asociación Española de la Calidad) as innovation managers, and in 2009 we began implementing the R&D&i management system according to AENOR UNE: 166002 R&D&i management system requirement standard. Completion of this implementation is scheduled for 2010. Centres of Excellence Global Knowledge Institutions Suppliers This commitment to innovating the software labs network has enabled us to be present in all the technological platforms in Spain (INES, eVIA, eMOV, eNEM, eSEC, Internet.es), as well as major R&D&i projects under the umbrella of the AVANZA, CENIT, Interempresas-CDTI or European AAL programmes. Among the projects awarded to Indra in 2009, we highlight Energos (CENIT), SITIO (EUREKA+AVANZA), VESTA (AVANZA), TacTIC (AVANZA), LUMINICA (AVANZA), MoBiAR (AVANZA) and Senior Channel (European AAL programme). The software labs network meets the highest quality standards. Most of the labs hold ISO 9001 certification, four of them have level 3 CMMI (in Mexico and Argentina) and the IGEA product has obtained level 4 CMMI and has passed the OGC WMS compliance test. Country Germany Spain City Munich A Coruña Barcelona Ciudad Real Gijón León Madrid Alcobendas (Madrid) Especiality Simulation Regional public administration Property and Tax Management Energy healthcare ATM Security Energy SOA Core banking electronic administration, modernisation and procedure management road, sea and toll traffic geospatial technology enterprise 2.0 Tactical communications and electro-optical systems Simulation and holding benches Land and Rail Transport Healthcare – Digital Imaging ATM Air defence and electronic warfare Company banking healthcare ATM Energy IT infrastructures management telecommunications Energy IT infrastructures management BPO Document management Test benches and simulation Multilingual Services industry and Consumption Logical Security Energy Sensors Energy ATM Regional Suppliers Partners National Indra Professionals Partners Research Centers Our model is based on developing an organisation open to external cooperation, in which part of the innovation is outsourced, together forming a global, open and cooperative entity. Our centres of excellence Knowledge of our customers’ business and technology has led us to develop a network of over 38 centres of excellence throughout the world. These centres work as advanced R&D&i laboratories, offering cutting-edge technological trends to develop tailor-made solutions for our customers. Customers Innovation at our Software Labs Innovation does not only mean creating new solutions and services. Innovation means pinpointing a challenge, analysing it and finding a way to solve it effectively and efficiently. Sometimes this challenge might be to help a customer boost productivity or seek a competitive advantage, but other times it will be to respond to a more aggressive competitive environment The software labs network meets the highest quality standards. Most of the labs hold ISO 9001 certification Society iety United Kingdom Slovak Republic Argentina Brazil Chile Colombia US A Mexico Panama China The Philippines Australia Aranjuez (Madrid) San Fernando de Henares (Madrid) Toledo Torrejón de Ardoz Valencia Tolworth (London) Bratislava Buenos Aires Campinas Santiago de Chile Bogotá Orlando Mexico City Panama City Beijng Manila S ydney Universities Indra Annual Report 09 01 Introduction 02 Yes to innovation 03 Our business 04 Our stakeholders 05 Commitments and results SUSTAINABLE INNOVATION 20 Indra Annual Report 09 01 Introduction 02 Yes to innovation 03 Our business 04 Our stakeholders 05 Commitments and results SUSTAINABLE INNOVATION 21 ECONOMIC SUSTAINABILITY SOCIAL SUSTAINABILITY ENVIRONMENTAL SUSTAINABILITY Responding to Spain’s Sustainable Economy Act Spain’s Sustainable Economy Act, drafted in 2009 and scheduled to come into force in 2010, proposes a new pattern of growth that reconciles economic, social and environmental development with a productive and competitive economy. The act has five main pillars: • Competitiveness • Environmental sustainability • Normalisation of the housing sector • Innovation and professional training • Support for new economic sectors Technology must play a key role in this new ‘intelligent growth’ model. This is why Indra has already developed a range of services and solutions to meet the challenges of the new law. Sustainable mobility, intelligent networks, energy efficiency and tele-medicine will not be possible without advanced systems for obtaining information in real time, and command and control systems. Indra’s response to initiatives under the Sustainable Economy Act. INNOVATION in the Media market The Media market is in the midst of deep-rooted change, as a result of the convergence of telecommunications networks and the technological development of audiovisual platforms. Responding to new challenges in the sector is vital to the sustainability of our customers and requires a firm commitment to innovation. This allows Indra to be a strategic partner for its customers in the field of innovation. Indra endeavours to stay ahead of its customers’ needs and evidence of this are the numerous R&D&i projects in which it has been involved in 2009: with social web technologies and the • CBDP (Context Based Digital new Web 3.0 concept. Personality). A project developed by a Spanish/French/Turkish consortium. The purpose of this project is to study • DESSO SATELLITE: A SpanishUruguayan IBEROEKA project to the distribution of personalised distribute interactive multimedia content based on user preferences. content via satellite to the entire region for fixed and mobile • Buscamedia: CENIT project, environments. involving more than 19 institutions, whose main purpose is to develop a • DESECO: A Spanish-Colombian semantic multimedia, multilingual and IBEROEKA project to migrate traditional multiplatform search engine based on television to a mobile environment, user preferences and habits. enabling users to interact. • Web N+1: The main purpose of this project is to develop applications that • Movilidad Interactiva www. movilidadinteractiva.com: R&D project enable prosumers (users who produce initiated in 2008 to provide a solution and consume content at the same for the dynamic insertion of advertising time) to capture, manage, search and in Video on Demand (VoD), allowing the interact with content and services personalisation of advertising in linear easily, securely and in a personalised channels for mobile broadcasts. manner, combining semantic web tools SOFIA, one of the best European R&D projects Indra is involved in the Smart Objects For Intelligent Applications (SOFIA) project, which was chosen as the best project among the 59 presented to the European Commission in the European ARTEMIS & ITEA CO-SUMMIT 2009. The purpose of SOFIA is to develop a platform based on semantic web technology, interoperability and intelligent sensor networks for domotics in cities, buildings and cars, as well as providing intelligent and personalised services, such as geolocation, context information or movement detection, via mobile handsets. Another example of the application of this platform, in the sphere of tourism, is access to a ‘virtual teacher’ to explain the characteristics and history of a particular monument to visiting tourists and to inform them places of interest nearby. Through augmented reality, users will also be able to visualise a virtual reconstruction of the area or monument on their mobile handset. Furthermore, SOFIA will allow users to consult restaurant menus online, make bookings, or access other users’ opinions just by pointing their handset at a particular establishment. Similarly, by simply pointing their handsets towards an apartment building, users will be able to tell whether any apartments are for sale, and to receive the price, characteristics and seller’s contact details. CO2PERATION Involvement in the project Since 2009, we have been actively involved in the European initiative to manage emissions in air and maritime transport systems as part of the CO2PERATION platform. CO2PERATION is a proposal to provide a common platform able to process, monitor and report ‘real’ CO2 emissions. Based on the domain, CO2PERATION will apply the specific guidelines required by the European Union in air and maritime transport. Furthermore, 80% of the test findings will be suitable for application in other fields, such as land transport. CO2PERATION provides software and hardware tools for: • Management and control of emissions in real time. It includes processing and monitoring, establishing the specific status of each company, generation of reports, presentation of equivalent emission rights to the relevant administrative body and setting of possible penalties, in the case of low-performance hardware. • Emissions trading. It provides information concerning emissions markets, management of permit sales, salepurchase of emission rights, evaluation of contracts, settlement and business volume of contracts. Energy efficiency systems Sustainable building Facility management Sustainable mobility solutions Emission measurement, control and management systems Remote control systems Citizen attention and participation systems Reporting and scorecard systems Localisation and monitoring systems Geographic information systems Smart networks Knowledge portals 2.0 tools ECONOMIC DIMENSION ENVIRONMENTAL DIMENSION Promotion of public consultation processes and application of remote correspondence media Coherent and sustainable urban environment Innovation and IT development infrastructure Rollout of and access to NGNs Administration Modernisation Act (Law 11/2007) Corporate governance and sustainability reports Sharing best practices SOCIAL DIMENSION Energy savings and efficiency at head offices and productive facilities Carbon footprint reduction Electric vehicle Sustainable mobility plans Social services, healthcare and cultural services Worker mobility Accessibility Promotion of supply chain corporate responsibility Equality policies Remote health assistance Technology accessibility Collaborative tools Flexible working technology Indra Annual Report 09 01 02 03 04 05 Introduction Yes to innovation Our business Our stakeholders Commitments and results OUR APPROACH TO SUSTAINABILITY 22 Indra Annual Report 09 01 02 03 04 05 Introduction Yes to innovation Our business Our stakeholders Commitments and results OUR APPROACH TO SUSTAINABILITY 23 Sustainability combined with innovation capacity Indra’s innovation capacity is the cornerstone of our corporate social responsibility and our sustainability. Our approach to sustainability is based on the company’s Corporate Social Responsibility vision, which after a process of consultation and participation of the company’s professionals was defined in 2004 as follows: “To be an innovative, knowledge-based company in all relations with our internal and external stakeholders (shareholders, employees, customers, etc.) and with the institutions that cultivate and develop those values, and the communities where we operate.” Integrated and decentralised management Our Corporate Responsibility vision “To be an innovative, knowledge-based company in all relations with our internal and external stakeholders (shareholders, employees, customers, etc.) and with the institutions that cultivate and develop those values, and the communities where we operate.” For us, Corporate Social Responsibility, as a means to guarantee our sustainability, must be integrated throughout the entire organisation and in line with our activity and objectives. Consequently, at Indra we have established a decentralised and integrated CSR management system in the various management areas for the entire organisation. Isabel Aguilera is the member of the Board of Directors to whom the company’s CSR management is reported and who, in turn, reports to the Board in this connection. The Corporate Social Responsibility function is headed by Emma Fernández, General Manager of Talent, Innovation and Strategy. Based on the Global Reporting Initiative’s Sustainability Reporting Guidelines (version G3), at Indra we explicitly state our management approach in terms of our economic results, environmental policies, labour practices and decent work, human rights and impact on communities and on society as a whole. http://www.indracompany.com/en/ sostenibilidad-e-innovacion/sustainability holders (internal and external) in regard to action taken by the organisation. • To nurture innovation and use strategy as a lever for transformation. The Sustainability Control Panel will compile information from Indra’s systems and reflect its data in chart format. The indicators are divided into two categories: nature of the indicator (economic, social, environmental) and target stakeholders (shareholders, employees, customers, suppliers, etc.). The tool will keep a record of historical information on a quarterly and annual basis for comparison purposes. For each indicator, in addition to the real data from the period, the system will include the target set so as to compare and contrast the degree of compliance. The revision and improvement of the Code of Conduct to adapt it to international best practices is another step forward in our policy of seeking excellence and positioning ourselves at the forefront of sustainability. New Code of Ethics and Professional Conduct: at the cutting-edge of sustainability The Code of Conduct includes new principles and creates a Direct Channel of confidential communication and a Monitoring Committee to deal with enquiries and receive information relating to irregularities. The revision and improvement of the Code of Conduct to adapt it to international best practices is another step forward in our policy of seeking excellence and positioning ourselves at the forefront of sustainability. In 2009, the Board of Directors approved a new Code of Ethics and Professional Conduct which is compulsory for all of the company’s professionals. The new Code of Conduct is a revised and improved version of the Code of Professional Conduct approved in 2000, bringing it in line with international best practices, in accordance with our policy of seeking excellence and positioning ourselves at the forefront of sustainability, corporate social responsibility and corporate governance. In drafting the new Code of Conduct, we took into account the requirements of the Unified Code of Good Governance as well as the criteria established by the Dow Jones Sustainability Indexes, the Global Compact and the FTSE4Good CSR Index, among others. Improvements include the creation of a Direct Channel for confidential communication, through which Indra’s professionals can submit enquiries concerning the interpretation and application of the Code of Conduct, and report any possible irregularities. A Monitoring Committee, comprising five of the company’s Directors plus other professionals, is commissioned with the task of clarifying doubts, investigating and resolving irregularities, and keeping a record of actions taken. It will also submit an annual report on the degree of compliance with the Code of Conduct to Indra’s administrative and governing bodies. The Board of Directors’ Audit and Compliance Committee is responsible for supervising the Direct Channel and the actions implemented. New principles The new Code of Ethics and Professional Conduct also includes new principles and improves the way existing principles are implemented. This includes the explicit prohibition of corruption and bribery practices, as well as cooperation in the correct operation of internal control systems and other procedures designed to identify or correct deficiencies or weaknesses in compliance, integrity and control systems at Indra. Furthermore, the new document bolsters the protection of privacy, in particular in regard to personal data and the balance between work and outside obligations and activities. Similarly, the Code of Conduct envisages respect for legislation, transparent and truthful disclosure, quality, team work, protection and dissemination of knowledge, equal opportunities, and safeguards for diversity and for the environment. The Code of Conduct is structured around three principles: integrity, professionalism and respect, which, in turn, are based on the values of determination, rigour, sensitivity and originality that define our conduct. http://www.indracompany.com/en/ sostenibilidad-e-innovacion/sustainability In 2007, we revised the definition of these areas after a process of consultation and participation of all those internally responsible for relations with each stakeholder. This process resulted in updating our Corporate Social Responsibility Master Plan. We are advancing in sustainability management: end-to-end information for decision-making In 2009, we further improved the management of corporate social responsibility at Indra by launching a project to devise a Sustainability Control Panel. The objectives of this project are as follows: • To comprehensively and automatically monitor how Indra’s sustainability strategy is developed. • To detect environmental, social and economic risks and opportunities. • To identify areas of improvement and to act therein in a timely manner. • To share and disclose information to stake Code of Ethics and Professional Conduct INTEGRITY RESPECT DETERMINATION RIGOUR ORIGINALITY SENSIBILITY PROFESSIONALISM www.blacksunplc.com © Black Sun Plc 2011 47
