As we anticipated in the previous issue of this newsletter, the Confortel Islantilla played host to the 15th CEOSA Corporate Conference from 29 October to 1 November. Under the title “The Value of Company Flexibility,” the conference gathered 150 attendees, which included the Corporation’s chief officers, executives from the group’s companies, and staff members from the Corporate Centre.

José María Arroyo, CEOSA’s Chairman, explained that “the accomplishment of the goals set in the 2008-2011 Integrated Economic Plan has become a really ambitious goal itself,” adding that he was optimistic: “I’m in favour of seeing this new market environment as a source of opportunities for our different divisions and for the Corporation as a whole.” “This kind of events help us overcome the negative effects of the crisis and be stronger,” he concluded.

Likewise, CEO Enrique Servando Sánchez revealed, “Our business volume for 2008, after such distorting facts as ONCISA’s special property transaction and the turnover of Vinsa Segurança, which was sold this year, shows a positive evolution, with an expected growth rate of 2.8% over last year, totalling €521M. However, the crisis will leave its mark in our 2008 profit and loss account.”

The conference included a seminar by Professor Prosper Lamothe (who teaches Financial Economics and Accounting at the Autonomous University of Madrid). The lecturer invited attendees to reflect on the economic and business crisis, characterised by volatility and uncertainty. According to Professor Lamothe, flexible business decisions, based on the so-called real option approach, have become very important. This is a key approach to the assessment of investment and business projects, taking all economic aspects into account –both company internal and external, i.e. market-triggered.

Finally, Corporate Director for Organisation and Human Resources Raquel Gómez and CEOSA’s Economic, Financial and Investment Manager Marta Fernández presented a thorough discussion of the situation of the Corporation’s companies in different areas. The closing ceremony was attended by ONCE’s General Manager, Ángel Sánchez.

Diversification
Corporación Empresarial ONCE (CEOSA) is a player in many sectors in the Spanish economy. At present, it comprises the integrated service group Alentis; property developer Oncisa; hotel chain Confortel Hoteles; food company Corporación Alimentaria Rubia; street furniture supplier Primur; insurance broker Seguronce; Revitass, in the healthcare industry; and travel agency Viajes 2000.