ACTIVITIES - Tecnatom

REPORT ONACTIVITIES2009

REPORT ONACTIVITIES2009

REPORT ON ACTIVITIES 20093

Table of contents05 Message from the president08 10 years of Tecnatom11 Board of Directors. Shareholders13 Management15 The Tecnatom Group17 Historical background. A brief summary20 Key figures for 200922 Relevant events in 200925 Areas of production in 200935 Activities in 2009:Sectors/MarketsTechnology development and innovationCorporate management

Message from thePresidentREPORT ON ACTIVITIES 2009It is for me an honour and a satisfaction to present the Annual Report on Activities for the 2009financial year on behalf of the Board of Directors, for the first time as President of TECNATOM. Thereport reflects the most relevant data for a year in which our Group has more than managed to meetthe objectives mapped out.My first words must necessarily be of recognition and gratitude to our previous President, EduardoMartín Baena. The intense and excellent work that he has carried out over the last ten years hasallowed us to take an important qualitative and quantitative step forward and to establish our positionas a reference on the markets on which we operate. To a large extent he has been the architect of whatTECNATOM is today.I should also like to thank the Board of Directors for appointing me as President, a post that I havetaken over with enthusiasm and with the responsibility of continuing the enormous task carried out bythose who occupied the position before me. Likewise, I should like to welcome Gas Natural, which hasbecome one of our shareholders in the wake of its merger with UNIÓN FENOSA. I am convinced thatwe shall enjoy the full support of this company.In 2009, a year marked by the recession of the western economies, TECNATOM has amply exceededthe forecasts set out in our Strategic and Business Plan for the year, as regards both turnover, whichhas increased by 24% with respect to the previous year, and EBITDA, which has grown by 32 %.Consequently, we have achieved clear growth for our Group and significant strengthening during theyear.As regards the progress of our operations, I must first refer to the national nuclear market, where activityhas increased with respect to the previous year as a result both of the number of refuelling outagesperformed at the Spanish nuclear power plants and of the supply of new services to these facilities.The services relating to the plant operating personnel selection, training and renewal programmes havealso increased, especially in relation to new operating licences.Nuclear activity overseas has been affected by the international economic crisis, with the subsequentslowing down of certain nuclear programmes, this having delayed the launching and performanceof several projects. Nevertheless, it should be pointed out that the objectives mapped out have beenachieved. There has also been an important qualitative step forward and at year end the company hasan important backlog of orders for the coming years.4

REPORT ON ACTIVITIES 2009Within the strategy of strengthening our presence in China, acountry that is destined to be one of the world’s leading referencesin the nuclear industry in the future, mention may be made ofthe achievement of contracts for the supply of equipment andengineering for new nuclear plants in the country and of themagnificent operation of CITEC, the mixed company constitutedby the Chinese Research Institute China Guandong Nuclear PowerCompany and TECNATOM, for which the phase of delivery ofinspection systems and their certification by the Chinese regulatoryauthority has now been completed and with which preliminary workhas been performed at the Ling Ao Nuclear Power Plant.In addition, attention should be brought to the good perspectives and the draft agreements that arebeing established with the main participants in the nuclear renaissance that is taking place in bothEurope and America.On the aeronautics market, which is also being affected by the crisis, the technologies and capacitiesthat TECNATOM has developed in the sector have made it possible to close the year with a significantincrease in turnover, amply exceeding the objectives mapped out.Also for Airbus, but in this case in China, a contract has been achieved for the supply of a complexultrasonic inspection system for the facilities located in Harbin, opening up the possibility of ourstrengthening our presence on the aeronautical market of the Asian giant.Aware of the applicability of our capabilities to generating facilities, mention should be made also ofthe initiation of gas turbine inspection services and participation in the training plans of combinedcycle plants and thermo-solar generating installations in the renewable energies sector.Mention should be made also of our French subsidiaries Metalscan and M2M, which have satisfactorilyfulfilled expectations in spite of having been affected by the crisis, which has had an especially strongimpact on their industrial clients.Furthermore, we reiterate our strong backing for the future of nuclear energy and in this respect areconvinced that only through a suitable policy of attracting, developing and retaining talent will it bepossible to maintain and strengthen our position on an increasingly global, difficult and competitivemarket. With this aim in mind, an important recruiting and training plan has been implemented andis now beginning to bear fruit, fundamentally through our participation in the development of newreactors.Also fundamentally important is the strengthening of our corporate culture, aimed at ensuring theintegration and motivation of the entire human team. In this respect, efforts have been made to ensurethat all the new professionals feel themselves to be part of TECNATOM from the moment they jointhe company, that they know its business culture and that they act in accordance with its CorporatePrinciples and Values.7

Our Occupational Risk Prevention System is part of this same keenemphasis on the future, and is an area in which the Group continuesto achieve accident rates far below the national average. Alsonoteworthy is the revision and improvement of our ManagementModel, which is aimed at reinforcing and speeding up Monitoringand Control tasks, improving the criteria and information fordecision-making.In 2009, TECNATOM hasamply exceeded theforecasts set out in ourStrategic PlanBut if there is one thing that is part of the essence of our corporate culture it is the on-going search forexcellence in all the manifestations of the company. In this respect, in 2009 efforts have been increasedto incorporate into our products and services the best practices of the most prestigious internationalorganisations. This is the case of the standards of INPO (Institute of Nuclear Power Operations) and EPRI(Electric Power Research Institute), Organisations with which the Group has collaboration contracts.Another of our strategic building blocks is Innovation and Technology Development, to whichpreferential attention has continued to be paid as a fundamental factor for competitiveness. Many ofthese activities have been carried out within the framework of European Union and Spanish R&D&iprogrammes. The Technology Development objectives have been satisfactorily covered and the criteriaapplied in this area by the different companies of the Group have been standardised. The importantwork performed by TECNATOM in this area has been recognised by the García Cabrerizo Foundation,which during a moving ceremony held at the Scientific Research Council (CSIC) awarded our companyits Medal of Honour for the Promotion of Invention.Before us a future full of challenges is opening up, a future in which all of us who are part of TECNATOMwill be called upon to play an important role. It is a future that we face with decision but with care,aware of the serious economic situation affecting the world and our country but also of the fact thatwe have the potential and the capabilities required to continue to steer our company along the path ofdevelopment for many years to come.It remains only for me to thank all the persons who work for the Group for their efforts and dedication,our clients for their loyalty and support and our Shareholders for their commitment and backing. Theyhave all been fundamental in helping TECNATOM to successfully overcome a complex year.

10 years of TecnatomAfter almost ten years as President of TECNATOM the moment has come to hand over the baton, andI should first like to say that for me having enjoyed the privilege of presiding over this company andsharing with all its people a stage in which the company has undergone profound transformation hasbeen enormously satisfying.It has been a decade in which our company has taken a giant leap in its development, for which ithas been fundamentally important to design and develop a strategy based on internationalisation,diversification and the extension of our services on an increasingly competitive and globalised market.Although one’s memories are many, it would be impossible to sum up in just a few lines all theexperiences that have been gleaned and the projects addressed. However, I should like to underlineone or two of the most significant achievements, such as for example the decentralisation of activitiesin order to bring us closer to the needs of the plants, with the creation of the Operational SupportCentre in Catalonia, and the start-up of similar centres at the Cofrentes and Santa María de Garoñanuclear power plants.

It has beenfundamentally importantto design and developa strategy based oninternationalisation,diversification and theextension of our servicesIt has also been a period during which our company has considerablyincreased its presence on the overseas nuclear market, consolidatingthis presence on the traditional European and US markets and also,and especially, in emerging countries such as Argentina, China, Brazil orMexico. In this respect I should like to underline our firm commitment to China, which is destined tobe one of the leading actors in the nuclear sector in the coming years, in relation to which mentionsshould be made of the creation of CITEC, the Chinese-Spanish company set up jointly with the ResearchInstitute of the China Guandong Nuclear Power Company.REPORT ON ACTIVITIES 2009The introduction of new lines of activity and our efforts in diversification have been another constantat TECNATOM in recent years. The acquisition of the French companies Metalscan and M2M, ourincreasingly significant presence in the international aeronautics sector, the development of servicesfor gas plants and new renewable energies are a good example of this and are a reply to the need tolook for new business opportunities and open up new courses of action.As a result of the above, during this decade TECNATOM has significantly multiplied its turnover, as wellas its backing for technology development, assuming its commitment to innovation and excellence andincreasing profitability by a factor of 9 with respect to in-house resources and net profits by more than24, while keeping debt stable.These have, therefore, been years of a sustained and profitable growth that places us in a solid positionto face the challenges of the future. Behind all this there is a magnificent team of executives andworkers and the constant backing of our shareholders. I should like to thank them all for their supportand collaboration and assure them that if they ever need me I shall be at their entire disposal.Convinced that the best times for TECNATOM are still to come, it remains only for me to express mybest wishes for the new President, Antonio Alonso, and for a company to which I will always considermyself to be closely linked.Eduardo Martín BaenaPresident of Tecnatom 2001-20098

D. Antonio F. Alonso RamosD. Alfonso Arias CañeteREPORT ON ACTIVITIES 2009D. Enrique Bordiú Cienfuegos-JovellanosD. Diego Molina OreroD. Félix Rojo SevillanoD. Víctor Sola GutiérrezD. Luis del Val HernándezD. Agustín Tejedor Velarde1011

Boardof Directors30 %10 %AutocarteraPresidentMr. Antonio F. Alonso Ramos 1Vice-presidentMr. Alfonso Arias Cañete 245 %15 %Board MembersMr. Enrique Bordiú Cienfuegos-JovellanosMr. Diego Molina OreroMr. Félix Rojo SevillanoMr. Víctor Sola Gutiérrez 3Mr. Luis del Val Hernández 4Secretary and legal advisorMr. Agustín Tejedor VelardeShareholdersENDESA GENERACIÓN (45 %)IBERDROLA GENERACIÓN (30 %)GAS NATURAL FENOSA (15 %) 5AUTOCARTERA (10 %)(1) Mr. Antonio F. Alonso Ramos replaced Mr. Eduardo Martín Baena as president on January 28th 2010.(2) Mr. Alfonso Arias Cañete, was appointed Vice-Presidente on March 23th 2010.(3) Mr. Víctor Sola Gutiérrez replaced Mr. José Luis Zapata on October 27th 2009.(4) Mr. Luis del Val Hernández replaced Mr. Francisco Vighi Arroyo on January 28th 2010.(5) As a result of the merger operation by absorption that took place on June 29th 2009, there has been a complete transfer of all the assetsof UNIÓN FENOSA, S.A. and UNIÓN FENOSA GENERACIÓN, S.A. to GAS NATURAL FENOSA, S.A., the latter acquiring all rights and obligations.

ManagementREPORT ON ACTIVITIES 2009General ManagerMr. Antonio F. Alonso RamosDirectorsInspection ServicesMr. Emilio González ÁlvarezTechnology DevelopmentMr. Javier Guerra SaizBusiness DevelopmentMr. Juan Ortega DelgadoSafety, Operation and TrainingMr. Francisco José Sánchez ÁlvarezHuman Resources and OrganisationMr. Javier Brime GonzálezQuality, Safety and the EnvironmentMr. José Manuel Corrales LlavonaEconomics, Finances and General ServicesMr. José Manuel Mourín ValcárcelInformation SystemsMr. Rafael Vargas TraidCorporate ManagerMr. Santiago San Antonio Guerreroon service commission asDirector General of FORATOM1213

REPORT ON ACTIVITIES 2009Chalón sur Saône (Metalscan)Chatenoy (Multi2000)China. Shenzhen (CITEC)Catalonia (Technical support centre)Madrid (Headquarters)1415

The Tecnatom GroupFRANCEChatenoy(Multi2000)SPAINChalón sur Saône(Metalscan)Catalonia(Technical support centre)Madrid(Headquarters)CHINAShenzhen(CITEC)

HistoricalbackgroundA brief summaryREPORT ON ACTIVITIES 2009The Studies Service used by the Banco Urquijo in the1950’s to support and promote initiatives for thedevelopment of new industrial activities proposed thata study be performed on the use of nuclear energy forelectricity generation in Spain. For the development ofthis idea, the company Tecnatom (Técnicas Atómicas)was set up on April 11th 1957. Its leading promoter wasJaime MacVeigh.In 1960 Tecnatom undertook a preliminary 60 MW nuclearplant project for Unión Eléctrica Madrileña. A year later,this electricity utility requested authorisation from theGovernment to construct a 160 MW plant in Almonacidde Zorita, in the province of Guadalajara.In early 1964 the complete project was submitted to theMinistry of Industry, which supported it and granted itsdefinitive authorisation in July, commissioning Tecnatomto manage the project.The works began on July 6th 1965, and up to the year1970 Tecnatom dedicated its activity exclusively tothe first Spanish nuclear power plant, José CabreraNPP, which entered into service at 21:58 hours onJune 30th 1968.The National Electricity Plan, drawn up in 1969 andrevised in 1972, contemplated the implementation of15,000 nuclear Megawatts, to be provided by 11 units. Inorder to cover the services that this nuclear fleet wouldrequire, Tecnatom became the common engineeringservices company, fundamentally in the areas of Trainingand Inspection, for the electricity utilities Sevillana deElectricidad, Electra de Viesgo, Fenosa, Fuerzas Eléctricasde Cataluña, Hidroeléctrica Española,Iberduero and Unión Eléctrica Madrileña, which becameits owners.In order to provide adequate services in the Trainingarea, two training simulators were acquired, one foreach of the two technologies used (PWR – pressurisedwater reactor - and BWR – boiling water reactor). In thearea of inspection, the company acquired the equipmentnecessary for the inspection of major components(reactor vessel and steam generators) and other essentialcomponents.In 1978 Tecnatom transferred its headquarters to the townof San Sebastián de los Reyes, occupying a new buildingdesigned to house the simulators and inspection equipment.1617

REPORT ON ACTIVITIES 2009In the 1980’s Tecnatom took the decision to developits own technology, gradually phasing out technologyacquisition and promoting investments in R&D&i.As a result of this, there was a period of growth anddiversification of activities that brought with it an increasein the workforce. From the almost 140 employees thatthe company had in 1980, the headcount grew to almost450 by 1986.As from this time, the participation in forums, contactsand relations with different international organisations(IAEA, INPO and EPRI, among others) were intensified, andin the early 1990’s the strategy of internationalisationinitiated during the previous decade was formalised.The 1994 Electricity Act, which approved the Spanish nuclearmoratorium, meant that the forecasts of growth on thedomestic market would be paralysed for a lengthy period oftime. This drove the new strategy even further, and activitieson the overseas markets reached almost 40%.The new century saw the initiation of the construction ofnew full-scope simulators for the Spanish nuclear powerplants (each plant wasrequired to have itsown), and in certaincases the decision wastaken to locate thesesimulators close tothe plant sites. Thus,The official inaugurationof the new Tecnatomcentre in l’Hospitalet del’Infant took place on June25th 2003.for the simulators for the Ascó and Vandellós plants, anew Tecnatom centre was built in l’Hospitalet de l’Infant,which also became the training centre for the operatorsand technical personnel of these Catalonian plants. Thecentre was officially inaugurated on June 25th 2003. Asimilar approach has been adopted for the rest of theSpanish nuclear power plant sites, and there are nowtechnical assistance centres and training colleges at theAlmaraz, Cofrentes and S.Mª de Garoña plants.The majority of Tecnatom’s national and internationalclients belong to the nuclear sector, but there are alsoimportant clients in the fields of conventional thermalplants, petrochemical facilities, combined cycle plants andthe aeronautical sector, where technologies providingsynergies with those developed by Tecnatom for thenuclear industry are applied.TIME equipment for reactor vessel inspection supplied to CITEC1819

In 2004, as part of its technologies and marketsdiversification strategy, Tecnatom closed the process ofacquisition of the French non-destructive testing companyMetalscan and, through this deal, Tecnatom also took overthe leadership of the French company Multi2000 (M2M),created for the development and commercialisation ofultrasonic inspection systems.In 2007, coinciding with the 50th anniversary of itsconstitution, Tecnatom set up, along with the Chinesecompany CNPRI, the company CITEC for the renderingof inspection services on the growing Chinese market.Tecnatom is providing inspection equipment, technologyand procedures for this new venture.Participation in projects for new (advanced) nuclearpower plants is an approach adopted by Tecnatom for thefuture. First came participationParticipation inprojects for new(advanced) nuclearpower plants is anapproach adoptedby Tecnatom forthe futurein the initial designs for theAP600 and SBWR reactors,followed by the company’spresence in the developmentof the two ABWR groups of theLungmen plant in Taiwan, andat present the company has ahighly significant presence inthe AP1000 reactor projects (in China and the UnitedStates), the ABWR (in the United States), the PBMR (inSouth Africa) and the CPR1000 (in China), etc.This decision to pursue new markets is consolidatedthrough a more active presence in certain target areas.In 2008 the subsidiary Tecnatom Argentina was setup and the economic interest group SNGC (SpanishNuclear Group for China) was created along with othernational equipment goods exporters, with the aim ofstrengthening our presence and developing opportunitieson this important market.In order to make Tecnatom’s new technology and marketpositioning feasible, a human resources dimensioningplan was drawn up; this was to take the Tecnatomheadcount to approximately 760 people by 2009. Theaim underlying the above is to meet the challenge impliedby the nuclear renaissance that is currently taking placeacross much of the world, to the entire satisfaction of allthe clients, and to comply with the commitments madewith a wide range of clients in more than 30 countriesand on widely differing markets.

Key figuresfor 2009TECNATOM GROUP SHARE CAPITAL (Thousands of Euros) SHAREHOLDINGTECNATOM 4.026 -METALSCAN (France) 692 100,00%M2M (France) 500 53,45%CITEC (CHINA) 8.302 25,00%OWN FUNDS (Thousands of Euros) 2007 20082009SUBSCRIBED CAPITAL 4.026 4.026 4.026RESERVES 18.326 25.066 29.669RESULT FOR YEAR 2.307 4.445 8.765TOTAL 24.659 33.537 42.460ECONOMIC MAGNITUDES (Thousands of Euros)2007 20082009GROSS INCOME 77.260 82.668 103.546- Turnover 75.031 80.295 100.422GROSS OPERATING PROFIT (EBITDA) 8.784 10.694 14.436- Operating profit (ebit) 3.558 5.272 9.155- EBIT / Turnover 4,7% 6,6% 9,1%

100.00080.00075.031Turnover80.295Turnover100.422TurnoverREPORT ON ACTIVITIES 200960.00040.00020.0008.784EBITDA10.694EBITDA14.436EBITDA020072008 2009ECONOMIC MAGNITUDES (Thousands of Euros) 2007 20082009GROSS FIXED ASSETS 86.175 81.157 90.991- Fixed assets amortised 61,05% 55,74% 54,86%WORKING CAPITAL 12.553 13.743 16.773EXTERNAL FINANCING 17.749 21.000 23.317- Leverage (%) 42% 39% 35%- External financing / ebitda (No of times) 2% 2% 1,6%100.00086.175Gross fixedassets81.157Gross fixedassets90.991Gross fixedassets80.00060.00040.00020.00017.749Externalfinancing21.000Externalfinancing23.317Externalfinancing02007 2008 20092021

REPORT ON ACTIVITIES 2009Relevant eventsin 2009January:Visit by Antonio Beteta Barreda(Counsellor for Economy and theExchequer of the AutonomousCommunity of Madrid) to theTecnatom installations in SanSebastián de los Reyes.Achievement, along with InvensysProcess Systems, of the contractfor the supply of Instrumentation,Process Systems and the ControlRooms for four new groups at theFuqing and Fangjiashan NuclearPower Plants in China.Coinciding with a visit by an importantChinese delegation headed by thePresident of the CNNC (China NuclearNational Corporation), the SpanishNuclear Group for China (SNGC)consortium signs a collaborationagreement with this corporation,the agreement being ratified atthe Moncloa by the Chinese PrimeMinister and the President of theSpanish Government.February:Achievement of a multi-cycle contract(2009 – 2010) for the diagnosisof valves and the performanceof functional tests, maintenanceinterventions and failure analyses onhydraulic and mechanical snubbersat the Laguna Verde nuclear powerplant in Mexico.AENOR renews the certification ofthe Tecnatom Quality System inaccordance with the ISO 9001:2000standard. Tecnatom achieves ENACcertification for the performance oftests under accident conditions in thethermodynamic testing laboratory(LOCA chamber).April:Tecnatom and Westinghousesign a Preferential CollaborationAgreement in the area of in-serviceinspections.Issuing of the first number of “Ágora”,a publication aimed at actual andpotential domestic clients withinformation on Tecnatom activitiesand projects and other matters ofspecific interest for the Tecnatommarket. Tecnatom participates in theInternational Nuclear Industry Fair inBeijing, where the leading companiesin the nuclear sector come togetherto exhibit their capabilities, state-ofthe-artlines of research and latesttechnology breakthroughs in thisfield.The Town Council of Vandellósi l’Hospitalet de l’Infant awardsTecnatom a prize in recognition ofits contribution to the economicdevelopment of the region.May:Completion of the INPO “GapAssessment” Mission relating to thetraining programmes for the operatingpersonnel of all the Spanish NuclearPower Plants, initiated in March. Themission was coordinated by UNESAand included the collaboration of ateam of twenty experts on trainingfrom American plants (USA, Mexicoand Brazil), Endesa and Tecnatom,led by members of INPO (Instituteof Nuclear Power Operations). Theobjective was to analyse differenceswith a view to evolving towardsthe INPO standards of Excellence(Accreditation).2223

June:With a ceremony marked bytraditional protocol, CITEC, withsupport from Tecnatom, has initiatedthe inspection of steam generatortubes at the Ling Ao plant, the firstPSI activities to be carried out by theChinese company in which Tecnatomis a shareholder.Launch meeting in Nantes (France)for the Project for development of anultrasonic inspection system based onLaser technology for Airbus-EADS.November:First meeting between the GeneralManagement of the GenerationDivision of Gas Natural Fenosa andthe Management of Tecnatom, witha view to setting a solid basis forcollaboration during the new stagethat is now beginning, with theformer as a Tecnatom shareholder.December:Signing of the contract betweenNucleoeléctrica Argentina, S.A. (NA-SA) and Tecnatom for the supply ofa full-scope simulator for Group 2(PHWR) of Atucha Nuclear PowerPlant.TESAR equipment supplied to CITECUNESA appoints Tecnatom as itscentre of reference for materials, andmore specifically for the EPRI MaterialsReliability Programme (MRP).July:Initiation of the campaign for thedissemination of the new corporateimage approved by the Board ofDirectors of Tecnatom during itsmeeting held in June 2009.The García Cabrerizo Foundationawards Tecnatom its medal forInnovation. The award is presentedduring a ceremony held at the headoffices of the Scientific ResearchCouncil.Signing of a new FrameworkAgreement with UNESA for supportby the Direct Dosimetry service forthe Spanish Nuclear Power Plantsover the next ten years. Among themain novelties of this agreement arethe provision of a new mobile unit forsupport during refuelling outages andthe achievement of ENAC qualificationfor the direct dosimetry service.Cofrentes NPP awards Tecnatom acontract for the modernisation of itsprocess computer.Working session with representatives from Argentina, Brazil and MexicoSeptember:Initiation of the first reactor vesselinternals baffle bolts inspection atthe Bugey 4 Nuclear Power Plant inFrance.

Areas ofREPORT ON ACTIVITIES 2009productionin 2009Safety, operationand training divisionThe mission of the Safety, Operation and Training Division(DSOF) is to contribute through technology developmentand the application of its services to ensuring that theclients are provided with a highly reliable organisationand personnel and the best resources to facilitate theoperation of their installations, thus improving safety,availability and economic efficiency.The clear vocation of the Management is to offerintegral services to the clients in the areas surroundingtheir facilities, to promote new activities, to develop itscollaborators professionally and to strive for efficiencythrough innovation.Clear vocation to offer integralservices to the clients in the areassurrounding their facilities, topromote new activities, to developits collaborators professionallyand to strive for efficiency throughThe areas of activity of the division are detailedbelow:Training and Support for Plant OperationOne of the areas that have most evolved in recent yearshas been the training of nuclear power plant personnel,mainly due to the handing over from one generationto the next that is taking place. The transfer of knowhowfrom the experienced personnel to the newcomers,the reinforcement of safe behaviours, the systematictraining programmes designed specifically to ensure thenecessary competences in the different plant job postsand the progress made in relation to the Information/Communication technologies (ICT’s) applied to traininghave been the prime movers of this change.TECNATOM provides integral training services with theultimate objective of incorporating personnel with ahigh level of qualification capable of performing skilfullyin their job posts at the plant, including the processesof recruiting, selection, contracting and trainingcandidates.innovation. 2425

REPORT ON ACTIVITIES 2009The training services include the following:− Design, organisation and management of trainingcentres.− Drawing up of training manuals and design of trainingprofiles.− Development of advanced teaching resources(simulators, virtual reality).− Preparation and implementation of complete trainingplans for personnel having different specialities, withand without an operating licence.− Training through the virtual campus (“e-learning”).− Technical advisory services in selection and training.− Training on emergency response.− Training on the operating experience analysismethodology.− Master type post-graduate training.More than 560 training units and a team of more thanone hundred and thirty (130) highly qualified instructorsare available, guaranteeing a training based on practicalrealities and adapted technologically to the specificrequirements of each client.Tecnatom has anagreement for thetransfer of know-howand methodologieswith the Instituteof Nuclear PowerOperations” (INPO)Foro Nuclear session on nuclear technology held at TecnatomWith a view to increasing the standards of quality of itstraining services, TECNATOM has reached an agreementfor the transfer of know-how and methodologies withthe Institute of Nuclear Power Operations (INPO). Theagreement is for four years, 2010-2013, and includestraining activities by INPO for the Tecnatom instructors,supervision activities, tutoring and coaching, documentarysupport, participation in benchmarking activities, etc.The operational support services include the followingnoteworthy activities:− Updating of design and licensing documents.− Development and updating of general operating,radiological protection and chemistry procedures.− Consulting and management of operating experienceprogrammes and the independent analysis of eventsusing methodologies such as HPES by INPO and MORTby CONGER & Elsea, Inc.− Development and updating of severe accidentmanagement guidelines.2627

− Support in the implementation of emergency plansand drills and in the creation of emergency technicalsupport centres when required.− Development of computer tools aiding the PlantTechnical Support Centre (CAT).− Support for internal dosimetry services, homologatedby the Nuclear Safety Council.− Support in the operation and start-up of new nonnucleargenerating plants and systems.− On-site support provided by specialists qualifiedin different areas (Electrical, Mechanical andInstrumentation and Control Maintenance, RadiologicalProtection, Chemistry, Operating Experience and HumanFactors Engineering) for compliance with the trainingof different groups and specialities.Simulation and Control RoomsSimulation is a key technology in training and engineering.The experience gleaned over more than 30 years inactivities associated with the area of simulation, initiallylinked to training on the national nuclear market, hasnow been extended to cover other domestic and overseasmarkets. The need for technological independence andthe continuous application of resources to research anddevelopment, along with the desire to satisfy the specificneeds of the clients, have led TECNATOM to developequipment and systems design and manufacturingcapabilities in the areas of training,operation and engineeringsupport.The simulation services include the following:− Design and development of training simulators forelectricity generating plants and industrial processsimulators.− Improvement and modernisation of simulators.(Development of new codes and best-estimate models,inputs-outputs interface, new computing platform,advanced instructor consoles, …).− Operation and maintenance of simulators. (Configurationcontrol, software and hardware corrective maintenance,analysis of plant modifications and incorporation in thesimulator, simulator testing and validation associatedwith their certification).− Simulation as a support for engineering. (Support insafety assessment, validation and fine-tuning of plantmodifications, validation and fine-tuning of new digitalI+C systems and operating aid systems).The control room services include the following:− Design and supply of control rooms through theapplication of human factors engineering andassociated operational analysis, from the general layoutof the equipment and panels to the detailed design ofall the display, operations and operational supervisiondevices.Simulator instructor’sconsole

− Modernisation of existing control rooms, providingsolutions in the area of instrumentation and controland re-designing the man-machine interface in orderto ensure the safe operation of the facility in anyoperating condition.− Design, development, installation, verification andvalidation of operations support systems (OSS), suchas Safety Parameter Display Systems (SPDS), the PlantProcess Computer” (PPC), advanced alarms filteringsystems, fault diagnosis systems, computerisedprocedures systems and signal validation systems,among others.− Operations engineering consultancy services (feasibilitystudies, specifications and evaluation of technicalproposals).Safety ManagementThe objective of this area of activity is to provide high addedvalue services supporting the managers of nuclear facilitiesin the development and application of additional leadershipand safety culture competences within the framework of anintegrated safety management system.It brings together services and activities promotingthe improvement of the Safety Culture at any type ofindustrial installation through training and support in itsimplementation, using simple tools and coaching actions anddeveloping and using self-assessment systems helping toidentify areas for improvement and supporting measurementof the degree of implementation of the safety culture.The safety management services include thefollowing:− Identification of new relevant competences relating tothe Organisational and Safety Culture.− Development and application of competences(Seminars/Coaching).− Evaluation of results, including strengths andweaknesses.− Improvement actions.− Evaluations and improvement of the Organisationaland Safety Culture.− Integration of safety, including human activities, in themanagement system.− Learning of the organisation applied to safety.− Promotion/performance of R&D relating to leadershipand the safety culture.

REPORT ON ACTIVITIES 2009New ReactorsThe launching of projects for new reactors using advancedsafety and operation technologies is now a reality,with such reactors now in different states of licensing,construction and operation in certain Asian and Europeancountries and in the United States. The participation ofan engineering company in such projects is possible onlyif it has been involved from the very beginning. This is thestrategy that TECNATOM has applied since the 1990’s andthat has provided the added value of allowing the knowhowand technologies developed in these projects to beapplied in the modernisation of the fleet of nuclear powerplants currently in operation.Since the early 1990’s, TECNATOM has been collaboratingin the FOAKE (First Of A Kind Engineering) of the advancedABWR and ESBWR reactors by GE and AP600 and AP1000by Westinghouse. Particularly noteworthy since thattime have been the activities carried out in the designand construction of Lungmen NPP (ABWR) in Taiwan andin other international projects such as the South TexasProject.us to participate in generation IV advanced reactors (suchas the PBMR in South Africa) and to collaborate in theJules Horowitz European research reactor (JHR) and theITER fusion reactor project.Finally, mention should be made of the activities performedat new plants under construction, mainly in China, suchas the design and manufacturing of control rooms andoperating aid systems for theFuqing and Fangjiashan plants (CPR-1000).The new reactor services include three lines ofactivity:− Operations Engineering and Control Room Design.− Development of Training Plans, Personnel Training andOperational Support.− Development of Simulators and Simulation / Codes.Continuing with this course of action and based on theexperience acquired, an organisational area was set upto promote this strategy and thus make available highlyqualified resources and an in-house technology ensuringcompetitiveness for the major challenge that lay ahead.The availability of technology resources has also allowed2829

REPORT ON ACTIVITIES 2009Inspection services divisionThe services include mainly the following:The mission of the Inspection Services Division is to supplyservices and products of a high technological contentwith a view to verifying the structural integrity andoperability of energy-generating and industrial facilitiesand contributing to their operating under optimumconditions of safety, availability and economic efficiency,to the satisfaction of the client, in a profitable mannerand ensuring long-term viability.The objectives of the Division are to supply the servicesand products in an integral manner and to the highestlevels of quality, availability and flexibility, taking on boardthe needs of the clients, committing to the professionaldevelopment of its personnel and collaborators andcontinuously innovating as regards the technology of itsprocesses and equipment.The following areas of activity have been developedin order to be able to carry out the aforementionedmission:Inspection Area− Analysis of the applicable standards and experiences ofthe industry.− Development, implementation, monitoring and controlof inspection programmes.− Design, manufacturing, supply, calibration andmaintenance of inspection equipment and sensors fora wide range of components and items of equipment inboth the nuclear sector and in highly critical industrialareas (aeronautical, railways, etc.).− Development of qualified and validated non-destructivetesting techniques and procedures.− Performance and evaluation of non-destructive testinginspections.− Analysis of results obtained and structural assessment.− Lifetime management studies for inspected componentsand systems.This covers the overall structural integrity of the maincomponents of nuclear and thermal power plants,industrial facilities, the manufacturing of aeronauticalcomponents, etc.TENIS-G equipment for the gammagraphy inspection of reactor vessel nozzles3031

With the objective ofsupplying the services andproducts in an integralmanner and to the highestlevels of quality, availabilityand flexibility.These services are mainly applicable to thefollowing:− Critical nuclear power plant components (reactorvessel, steam generators, pressuriser, steam turbines,alternators, condensers and heat exchangers, piping,fuel assemblies, supports and snubbers).− Critical thermal power plant and industrial facilitycomponents (boilers, steam and gas turbines, alternators,condensers and heat exchangers, piping, supports andsnubbers).− High demand or criticality equipment and componentsfor railway infrastructures and rolling stock.− Quality control by non-destructive testing in themanufacturing of components for the electricity andaeronautical sectors and industry in general.Inspection of a skin using the phased-array pulse-echo technique at Airbus SpainTesting AreaThis covers overall the verification and diagnosis of theoperability of the main components and systems ofelectricity generating plants, in particular nuclear andthermal power plants, and industrial facilities.The services include mainly the following:− Analysis of the applicable standards and experiences ofthe industry.− Development and control of testing and diagnosisprogrammes.− Design, manufacturing, supply, calibration andmaintenance of testing and diagnosis equipment,sensors and instruments.− Development of testing and diagnosis techniques andprocedures.

Optical microscope for metallographic examinationSnubber maintenance equipment− Performance and evaluation of tests and diagnoses.− Analysis of results obtained.− Failure analysis.− Repair or replacement proposals.− Lifetime management studies on tested componentsand systems.These services are mainly applicable to thefollowing:− Leaktightness of systems and components (containment,control room, valves and penetrations).− Functional testing of mechanical equipment andsystems (valves, penetrations, ventilation equipment,snubbers and air filters).− Functional testing of electrical equipment andsystems (motors, alternators, transformers, cables andinstrumentation).− Testing of the energy efficiency or performanceof thermal cycles and their components (turbine,condenser, cooling towers, etc.).− Monitoring of electrical equipment: transformers,motors, etc.− Filter activated carbon tests to assess efficiency.

Spares AreaThe objective in this case is the supply and/or repairof nuclear class equipment and spares for nuclear andconventional power plants and industrial facilities.These services are mainly applicable to thefollowing:− Valves and valve drive mechanisms.REPORT ON ACTIVITIES 2009The services include mainly the following:− Establishment of technical, quality and safetyrequirements for equipment and spares.− Low and medium voltage motors with environmentaland seismic qualification for severe environments.− Junction boxes and cable sealing systems.− Development, environmental and seismic qualificationand validation of alternative equipment and spares.− Manufacturing, repair, acceptance, supply andinstallation of equipment and spares.− Management and optimisation of spares stores.− Power, control and instrumentation electrical cables.− Thermocouples and thermo-resistances for severeenvironments.− Elastomeric materials for manufacturing for safetyrelatedapplications.− Electrical penetrations.System for the inspection of aeronautical components by the laser-UT technique3233

REPORT ON ACTIVITIES 20093435

Activitiesin 200968 %National Nuclear20 %Overseas NuclearSectors /Markets4 %Fossil and RenewableEnergies8 %Industrial AeronauticsThis section describes the most significant activities of theCompany in 2009, distributed by the different markets.The diagram shows the percentage of volume of salesdistributed by the markets on which Tecnatom has beenpresent during this year.The activity of the Company has mainly been on theNational Nuclear market, as a result of the large number(7) of scheduled outages for refuelling. Particularlysignificant on the Overseas Nuclear market has been theactivity in China, this country having shown itself to bethe main importer of Tecnatom’s services and products.Listed below are the most significant activities on each ofthe target markets.National nuclearDuring 2009 there were 7 refuelling outages at the Spanishnuclear power plants. The fact that many of these outagestook place simultaneously, along with the wide variety ofservices contracted, meant an important challenge bothtechnologically and in relation to the availability of resources,this having put Tecnatom’s capacities to the test. Despitethis, however, all the services were finally performed to thefull satisfaction of our clients.Along with the above, the constant growth in training andoperational support services has also meant a particularlyhigh workload in 2009.The analysis of this market is performed on the basis of theactivities carried out in the different areas of the business:

Safety, Operation and Training:Safety Management:− Support for the Ascó-Vandellós Nuclear Association(ANAV) during the implementation of SMART actionsand the Behaviour and Culture Reinforcement Plan(RCC).− Participation, along with a multidisciplinary team, in theverification of the efficiency of the Safety ImprovementAction Plan (PAMGS) at Vandellós II NPP.Operation:− Support for the Ascó and Vandellós II OperationsTechnical Office in the drawing up and/or revision ofthe operating procedures and the operating experiencebasedaction plan.− Active participation in the renewal of the instrumentationand control systems of several plants, undertaking thedesign and analysis of the man-machine interfacesand using the full-scope simulators as tools for thevalidation of the changes incorporated and the trainingof the work teams.− Awarding of the contract for modernisation of theprocess computer at Cofrentes nuclear power plant.Training:− Continuation of the high levels of success in preparationfor the reactor/turbine operator licence, with six reactoroperator licences having been obtained for Vandellós IINPP, seven for Almaraz NPP, five for Trillo NPP and fourfor Cofrentes NPP and two turbine operator licences forVandellós II NPP.− More than one hundred technicians are currently beingtrained at the different Tecnatom training centres, thisconstituting a response to the demand for the initial andon-going training of the current and future personnelof the Spanish nuclear power plants.− Consolidation of the training services for theMaintenance and Chemistry / Radiological Protectionpersonnel of the Ascó, Vandellós and Cofrentes nuclearpower plants.− INPO Gap Assessment mission, coordinated by UNESA,relating to the training programmes for the operatingpersonnel of all the Spanish Nuclear Power Plants,with the collaboration of a team of twenty experts ontraining from American plants (USA, Mexico and Brazil),Endesa and Tecnatom, led by members of INPO (Instituteof Nuclear Power Operations). The objective was toanalyse differences with a view to evolving towards theINPO standards of Excellence (Accreditation).Mechanical design work station

− Signing of an agreement with INPO (2010-2013) forassistance in the drawing up of support guidelinesand the development and implementation of trainingprogrammes for instructors, and advisory assistance inthe evaluation of the training and the maintenance ofits quality and efficiency.− Closing of the 8th edition of the Master Course onElectricity Generating Technologies, organised by thePolytechnic University of Madrid in collaboration withTECNATOM, and opening of the 9th. This year thecourse has attracted a record number of 25 students.with CSN Technical Instruction GL-2008.01, for thestudy of accumulation of gases in sections of thepiping of primary and safeguards systems at the AscóI, Almaraz I and II and Vandellós II plants. In addition,the scanning and modelling of the MSR’s of Ascó I hasbeen performed for design engineering support in theproject for the replacement of these components.− Engineering support for the Almaraz I NPP power upgradeproject through the use of the full-scope simulator as atool for the validation of the modifications performedat the plant.REPORT ON ACTIVITIES 2009Engineering, Inspection and Testing− Performance of the in-service inspections and testingservices corresponding to the refuelling outages at theSta María de Garoña, Trillo, Almaraz I and II, Cofrentes,Ascó I and Vandellós II nuclear power plants, thefollowing aspects having been particularly significant:− Support for start-up of the emergency coolingsystem at Vandellós NPP, in the area of Engineering,and supervision of assembly and start-up of thecorresponding instrumentation.The performance of the works scheduled has wonrecognition by the personnel responsible for theplants, in relation to both its timeliness and quality.Adequate planning and foresight in the preparationof human and material resources has made it possibleto carry out the services committed for the outagesat the Vandellós II, Ascó I and Almaraz II plantspractically in parallel.For the first time maintenance has been performedon the in-core instrumentation at the Almaraz I, AscóI and Vandellós II plants, and check valve diagnosis atCofrentes.Inspection of the three steam generators at the Ascó I,Almaraz I and II and Vandellós II plants.Automatic ultrasonic inspection of the three mainpumps at Trillo NPP.− Performance of piping topography, scanning andmodelling service by laser scanning in complianceMore than one hundredtechnicians are currentlybeing trained at thedifferent Tecnatom trainingcentres.Adequate planning andforesight in the preparationof human and materialresources has made itpossible to carry outthe services committedpractically in parallel.3637

REPORT ON ACTIVITIES 2009Overseas Nuclear37%Asia37%AméricaThe activities performed on this marketare shown in the following diagrams,grouped by geographical areas andcountries:In 2009 the consolidation of Tecnatom as a supplier of hitechequipment and products on the global market hascontinued. Services have been rendered in 21 countries,with China, USA, Brazil, Mexico and Argentina havingbeen particularly significant in terms of the volume ofwork performed.5%África9%Western Europe12%Eastern CountriesThe contract signed for the supply of I+C systems to fourChinese nuclear power plants, the negotiations under wayfor the supply of these systems to additional plants andthe activities of the joint venture CITEC and the exportingconsortium SNGC confirm that China will be the mostimportant country for Tecnatom’s services in the comingyears.Countries such as Brazil, Mexico and Argentina also standout as important venues for Tecnatom in the short tomedium term, due to the existence of plants currently inoperation and the forecasts for the construction of newreactors in these countries.− Contract with ENEL for the conceptual development ofan Advanced Control Centre for nuclear power plantoutage management. The ultimate objective, followingthis initial phase, is the creation of a prototype outagemanagement Control Centre that may subsequently beimplemented at operating plants.− Supply of steam generator inspection equipment andservices for Groups 5 and 6 of Kozloduy NPP (Bulgaria),continuing the process of collaboration with and therendering of services to this plant.The activities on this market are grouped by geographicalareas:Europe− Inspection of the reactor baffle bolts at groups 4 and 5 ofBugey NPP (France) following a complex but successfulvalidation of the equipment, procedures and personnelin compliance with the requirements of the client, EDF,and the French regulatory authority.− Inspection of the core shroud at Muelehberg NPP(Switzerland). This type of inspection, performed usingin-house technology, has been performed in recent yearsat more than 20 plants in countries such as the USA,Spain, Taiwan and Switzerland.Along with China,countries such asBrazil, Mexico andArgentina stand out asimportant venues forTecnatom in the shortto medium term3839

− Supply of a system for the inspection of RBMK reactorcooling circuit austenitic piping by means of advancedphased array ultrasonic techniques for Leningrad NPP(Russia).− Initiation of qualification of the air and motor-operatedvalve monitoring and diagnosis service in France for EDF.First intervention performed at Civaux NPP.− Performance of qualification tests for equipment bywidely varying manufacturers (L. Bernard, Leroy Somerand Alstom) for nuclear applications, for EDF.− Supply of eddy current analysts for the inspection ofsteam generator tubes at the French Bugey 4, Paluel 2,Saint Alban 1 and Cruas 2 plants.America− Design of the control room for the South Texas ProjectABWR reactor (USA) using Human Factors Engineeringcriteria and the technologically advanced methodologiesdeveloped by Tecnatom for the design of digital manmachineinterfaces and control rooms.− Contract for the supply of the control room replicatingsimulator, of an interactive graphic simulator and ofvarious teaching materials for the Atucha 2 PHWRreactor. The project implies a significant challenge dueto this being a unique reactor design and to the factthat this is the first simulator to be put into operationin Argentina.− Technical exchange with Döel NPP in relation to trainingand the development of an in-the-field simulator forpractical training in actual environments.

− Participation in safety assessments at Laguna Verde NPP(Mexico), using the TRAC thermohydraulic code, resultingfrom the power upgrade that is being carried out at theplant.− Participation in inspection of the reactor vessel at theSouth Texas Project plant (PWR) in the USA.− Inspection, testing and maintenance of snubbers atLaguna Verde 2. This activity has been performed atgroups 1 and 2 of this plant since 2003.− Air and motor-operated valve monitoring and diagnosisservices resulting from the achievement of a multi-cyclecontract with Laguna Verde NPP. This is the first contractof this type achieved in Mexico.− Inspection of heat exchangers and the condenser atLaguna Verde 2.− Supply of eddy current analysts for the inspection ofsteam generator tubes at the Beaver Valley plant in theUSA and Atucha 1 in Argentina.− Inspections of the low pressure turbine rotors at theAngra 1 and 2 plants. (Brazil).− Testing and maintenance of hydraulic snubbers atAngra 1 NPP.− Design and manufacturing of an advanced, nonintrusiverobot-operated system for the inspection ofBWR vessel shrouds from the outside (USA), using themost advanced techniques available on the market.− Supply of valve spares to Laguna Verde NPP (Mexico),within the framework of performance and extensionof the range of Tecnatom equipment and componentsupplies.− Work on maintenance of the control room simulator atLaguna Verde.7%7%− Delivery of Operator Training Phases III and IV for Angra1 NPP, as part of the on-going training for the plantreactor operators and shift chiefs. This service has beencarried out for many years now to the full satisfactionof the client.5%4% 2% 2%1%4%7%16%37%ChinaEE.UU.MexicoArgentinaBrazilFranceBulgariaRussiaUkraineSlovakiaOthersDevelopment of trainingplans for the newWestinghouse AP1000reactors in China

Asia− Design, development and certification of differentinspection systems (reactor vessel, steam generators,piping, etc.) within the framework of the CITEC jointventure between the China Nuclear Power ResearchInstitute (CNPRI) and Tecnatom for the Chinese nuclearmarket.REPORT ON ACTIVITIES 2009− Pre-operational inspection at Ling Ao NPP (China). Withsupport from Tecnatom, CITEC has performed inspectionsof steam generator tubes and of the reactor vessel.− Design and supply of six control rooms for the CPR1000 reactor and the simulators for the FuQing andFangjiashan nuclear power plants in China.− Development of training plans for the new WestinghouseAP1000 reactors in China. The extension of the scope ofsupply of instructors for the training of the first Chineseoperating crews is in the process of negotiation.África− Support for training of the operating personnel ofKoeberg NPP (South Africa) through the seconding ofTecnatom instructors.− Supply to ROTEK Engineering of the componentscorresponding to the extension of the turbine rotorinspection system.TESGI equipmentfor the inspectionof WWER steamgenerator tubes4041

REPORT ON ACTIVITIES 2009Diversified marketsAeronautical and IndustrialThroughout 2009 the activities corresponding to projectsinitiated in 2008 have continued and others associatedwith new supplies to clients have begun. The followingmay be singled out:SMEPP Secure Middleware (Development of securesystems and software).− Continuation of the process of transfer to GE InspectionTechnologies (GEIT) of the TEDDY eddy current inspectiontechnology for non-nuclear applications. Softwaredevelopment has continued, along with support for GEITin relation to this technology.− Continuation of development of aeronautical inspectionsystems for FIDAMC (Foundation for Research andDevelopment into Composite Material Applications),SK10 (Alestis Group Factory in Cadiz), Airbus Military(Bahía de Cádiz Factory) and Airbus (Illescas Plant).− Confirmation and initiation of two new aeronauticalinspection system development projects for Spirit(USA). This has meant that for part of 2009 TECNATOMhas been working simultaneously on the developmentof six major inspection systems for aeronauticalcomponents.− Continuation of the supply of maintenance andupdating services for the inspection systems suppliedto different manufacturers of aerospace componentsin composite materials. Among these, mention maybe made of Airbus, Airbus Military, EADS-Space, ITP,Aernnova and Alestis.− Inspections by means of different non-destructivesystems and performance of leak tests at petrochemicaland industrial plants (Bayer, Sabic Innovative Plastics,CEPSA, Fertiberia and GOBESA).Fossil and Renewable EnergiesActivities have focussed on the development of trainingplans and operation optimisation services for newcombined cycle plants in both Spain and Portugal. Alsonoteworthy have been the inspection activities performedon the critical components of thermal power plants andgas turbines, Tecnatom’s first activities for the inspectionof thermal-solar plant equipment and those includedwithin the multi-cycle agreement in force with ENDESA.− Confirmation and initiation of the development of alaser-generated ultrasonic inspection system for Airbus,to be installed at the Technocampus site (Nantes,France). With this contract, and through the exclusiverepresentation agreement signed with iPhoton (theNorth American company owning this technology),TECNATOM now occupies a position of leadership inthe supply of this type of advanced inspection systemsin Europe and Asia.− Continued participation in various projects within theEuropean Framework Programme.INCOSTEEL (On-line fermachine hot inspectionsystem).Confirmation andinitiation of thedevelopment of a lasergeneratedultrasonicinspection system forAirbus, to be installed atthe Technocampus site(Nantes, France).4243

Equipment for the inspection of aeronautical components supplied to SPIRIT (USA)− Completion of the integral training services for theENDESA Besós V combined cycle plant.− Within the framework agreement for the inspection ofcondensers, heat exchangers and turbines signed withENDESA, work was performed at the Litoral de Almería,Teruel and Jinamar thermal power plants and theCristóbal Colón and Aspontes combined cycle plants, aswell as on gas turbines at Candelaria, Jinamar, Mahónand Granadilla.− Development of training and knowledge managementtools for the ENDESA Besós III combined cycle plant.− Deliver of the performance improvement course at thePalos de la Frontera and Sabón combined cycle plantsand at the GAS NATURAL Corporate University.− Analysis of failure of the steam reheater at a thermalsolarplant belonging to COBRA.− Inspection of heat exchangers at the IBERDROLA Pasajesthermal power plant.− Delivery of a training plan for Shift Chiefs at the BAHÍABIZCAIA ELECTRICIDAD combined cycle plant.− Delivery of an initial training plan for the O&M personnelof the PEGO combined cycle plant in Portugal.

Activities of the SubsidiariesMetalscan, M2M and CITECMETALSCANThe year has been marked by an important reduction inorders (23% with respect to 2008), due to the effects ofthe crisis, this having led to results that, while still positive,are not as good as those achieved during the previousyear. Despite this situation, employment has beenmaintained and important commercial and adaptationactions have been initiated, channelling efforts towardsthe international market. In this respect, the networkof commercial representatives has been considerablystrengthened, this having led to a particularly outstandingincrease in the number and volume of opportunities,some of which have already materialised in contractsthroughout the year.The most significant product ranges have been thefollowing:NDT Systems 53%Services 23%Sensors 14%Electronics 10%Furthermore, efforts have been made to align resourcesand eliminate redundancies between the Groupcompanies, with a view to establishing a product matrix inwhich the responsibilities of each organisation are clearlydefined, this having led to an economy of resourcesand important synergies that are making it possible toimprove our competitive position on the demandingglobal market on which these activities are required tooperate. In addition, a Technical Division has been createdto undertake the priority issue of improving coordinationwithin the Group and raising the technological level andquality of the products and services, on the basis of itsown developments and the integration of Group productsand services.Another aspect worthy of mention is the start-up of anew business management control system replacing theprevious such system, which will allow for better controland optimisation of the application of resources.M2MThe evolution of the company in 2009 has been positive,with turnover and, very especially, profits having increased.This is an outstanding achievement given the apathy inindustrial demand that has characterised the year.Efforts in R&D have been maintained, this having allowedM2M to consolidate its position of leadership in ultrasonictechnology on both the French and internationalmarkets.The following may be singled out as particularly significantevents:Launching of the IMPACT project for the development ofadvanced ultrasonic technologies, in collaboration withCEA and other industrial partners.The most importantchallenge in the mediumterm is the capacityto perform in-serviceinspections (ISI), and morespecifically the ability in thenext five years to carry out5 PSI inspections and 6 ISIinspections per year.

REPORT ON ACTIVITIES 2009TIME equipment for reactor vessel inspectionThe German company Karl Deutsch has become a memberof the Board of Directors following the acquisition of apackage of shares.CITECThe 2009 financial year has been a particularly successfulone for CITEC. All the necessary authorisations requiredby the Chinese regulatory body for the performance ofinspections at nuclear power plants were achieved. Alsoachieved was the qualification required to train and prepareNDT personnel for the nuclear industry.An important number of people were recruited and trained.The current workforce stands at 93 persons.The PSI inspections of the steam generators and reactor vesselat Ling Ao phase II Group 1 were carried out successfully andto the complete satisfaction of the client CGNPC, confirmingthe reality of CITEC as a company capable of performing PSI inspections on the Chinese market.A shed (rented) has been assembled with mock-ups fortraining and the fine-tuning of inspection tasks.Manufacturing work began on the second sets of inspectionequipment for steam generators, vessels and othercomponents.At the end of the year the company acquired the rights toa new property measuring 30,000 m2, with a built-up areaamounting to 6,500 m2.The objective of placing the company in a position toundertake pre-operational inspections (PSI) having nowbeen achieved, the most important challenge in the mediumterm is the capacity to perform in-service inspections (ISI)and more specifically the ability in the next five years tocarry out 5 PSI inspections and 6 ISI inspections per year.4445

REPORT ON ACTIVITIES 2009Trade Fairs and SeminarsTECNATOM has undertaken significant commercial effortsthrough its participation in a selective range of nationaland international trade fairs and forums in keeping withthe corporate promotion programme. It is also importantto underline the efforts made to integrate TECNATOM’sparticipation as an active component of the nationalindustry groups present at these forums, this allowingthe presence of the group members to be optimisedand emphasised before the important companiesand manufacturers in the sector. In the case of fairsfocussing on inspection activities, the participation hasbeen coordinated, the TECNATOM Group companies beingrepresented jointly.Presence of TECNATOM with a Stand:“8th International China Nuclear Fair”,Beijing (China) / April 19 th to 22 nd .the most representative companies from the Spanishnuclear industry.As a member of the SNGC (Spanish Nuclear Group for China)group of companies, TECNATOM was a major participantand managed to make numerous contacts with some ofthe most representative companies in the nuclear sector.Particularly significant was the signing of a commercial andtechnological collaboration agreement with NPIC (NuclearPower Institute of China), the main Chinese organisationfor the development of nuclear technology. This agreementmakes it possible to carry out activities both locally, inChina, and on the international market.“Aerospace Testing Europe”, Munich (Germany) /April 21 st to 23 rd .Along with its group companies Metalscan and M2M,TECNATOM presented its most recent developments inthe aeronautical sector.TECNATOM participated in the exhibition with a standlocated in the pavilion organised by the Spanish NuclearForum, which, as in previous editions, brought togetherMaintenance workshopFurthermore, the TECNATOM Group, invited by theorganisation, sponsored the recommended technologytrail associated with NDT, in recognition of the company’s4647

outstanding international position as a leader in theapplication of these testing techniques to the inspectionof aerospace components.“International Congress on Advances in NuclearPower Plants (ICAPP ‘09)”, Shinjuku Tokyo (Japan) /May 11 th to 14 th .TECNATOM was especially visible at this conferenceorganised by the European Nuclear Society (ENS),contributing with its presentation of the paper “Supportservices for new nuclear power plant projects”.This is the most relevant event at international level inrelation to the development of new reactors, and on thisoccasion dealt with important issues such as generationIII+ reactors and generation IV reactors, with 31 countriesrepresented.“7th International Conference on NDT in relationto the structural integrity of nuclear components”,Yokohama (Japan) / May 11 th to 15 th .TECNATOM was present at this conference and presentedthe four following papers within the framework of thetechnical programme:− Validation of in-service inspections (The Benefits ofTechnical Justification in the Inspection Qualification ofNozzle Inner Radius)− Inspection of vessel areas (Additional Examinationsfor PWR Class 1 Components Fabricated with Alloy600/82/182: Code Case N-722 and its application inSpanish RPV-ISI)− Austenitic steels (Inspection of Austenitic Welds withUltrasonic Phased Array Technology)− Turbines with array techniques (Phased arrayapplications in steam turbine areas).This conference is the most important dealing with nondestructivetesting applied to the nuclear industry.“12 th Congress of the Spanish Radiological ProtectionSociety (SEPR)”, Alicante / June 2 nd to 5 th .In addition to being one of the companies collaboratingin the event, TECNATOM actively participated in thecongress, presenting several papers. This conference hasbecome an excellent occasion for the sharing of the latestnovelties in this field and for commercial contacts withcompanies in our sector.

“48 th Le Bourget International Aeronautics and SpaceFair (SIAE)”, Paris (France) / June 19 th to 21 st .TECNATOM participated in the exhibition with a standintegrated in the Spanish pavilion and showcasing thecompany’s most recent capacities and developments.A large number of professionals visited the stand,confirming new opportunities and allowing new contactsto be made with companies in the sector.The international magnitude of the fair has meantan opportunity to ratify TECNATOM’s vocation in thesupply of systems and services for the aerospace sector,an activity that it has been involved in for more than adecade.“20th Meeting of the Mexican Nuclear Society”,Puerto Vallarta (Mexico) / July 5 th to 8 th .TECNATOM was present at the congress, activelyparticipating in the technical sessions of the conference,grouped in this particular edition under the heading «ThePerspectives and Challenges of Nuclear Energy», with thepresentation “Current Topics and Major Activities withRespect to Training and Qualification of NPP Personnelin Spain”.After a presentation on the importance of the trainingof nuclear power plant personnel, the participants visitedour installations.“35 th Annual Meeting of the Spanish Nuclear Society”,Seville / October 28 th to 30 th .As in previous editions, TECNATOM actively participatedin the meeting, underlining its presence with a stand inthe exhibition which, in addition to showcasing the mostimportant novelties among our activities and the latestdevelopments in the area of Simulation and ControlRooms, presented the company’s new corporate image toa gathering of the most representative members of theSpanish nuclear sector.Equally outstanding was TECNATOM’s contribution tothe technical programme, including the presentation oftwenty (20) papers, the chairing of two of the panels andthe coordination of two others.Special mention should be made of the recognition givento the company’s contributions during the meeting,with the presentation “Applications of 3D laser scanningtechnology in the nuclear field” by Xavier Jardi, JoséRamón Rodríguez and Jorge Angas (Tecnitop) beingThe congress, which was organisedby the IAEA and inaugurated by theMexican Deputy Secretary for Energy,attracted a large number of participantsand a significant presence by the mostrepresentative companies in the sector.“26 th Nuclear Forum Sessions onEnergy and Education”: TECNATOMHeadquarters, (San Sebastián de losReyes, Madrid) / September 11 th .As part of its commitment to the nuclearindustry, TECNATOM received a visit from53 teachers participating in the Sessionson Energy and Education organised bythe Spanish Nuclear Forum.Spanish Nuclear Society technical session held at Tecnatom

REPORT ON ACTIVITIES 2009awarded the prize for the most highly valued paper andthe presentation “Evaluation of codes for the cavitationof hydraulic machines. Applications to a centrifugalpump”, by Marcos Corral, winning the award for the bestgraduation project.“Course on Monitoring, Inspection and Maintenanceat Nuclear Power Plants by the Nuclear SafetyCouncil’s “Cátedra Empresa” Department at theMadrid University College of Mining Engineering,organised by the Polytechnic University of Madrid /November 16 th to 20 th .“Training sessions on nuclear technology for thepress organised by the Nuclear Forum”, TECNATOMHeadquarters (San Sebastián de los Reyes, Madrid) /December 15 th .In keeping with its social responsibility to bring nucleartechnology closer to society, TECNATOM received a visitby a group of journalists from different media who wereparticipating in these sessions.With a view to bringing science and technology closer tothe man in the street, TECNATOM actively participatedas in previous years in this event. The programme ofactivities of the Council for Education included a visit toour headquarters by a group of twenty-five people who,following a presentation, enjoyed the opportunity of visitingthe company and its nuclear power plant control roomsimulators.Six TECNATOM engineerscollaborated with otherprofessionals from the sectorin the delivery of the Courseon Monitoring, Inspectionand Maintenance at NuclearPower Plants.4849

REPORT ON ACTIVITIES 2009The visit to TECNATOM, which rounded off the session,allowed the members of the group to get to know certainof the more relevant activities of our company and to seefor themselves the high technological level at which ourwork is performed.Annual Subject-Specific SessionsOrganised by TECNATOM at itsHeadquarters:As has now become habitual, subject-specific sessionshave been organised for our National Nuclear Clients(Nuclear Power Plants, UNESA and technical supportgroups) with the aim of exchanging views on the needsof the sector and presenting the new developmentsand experiences undertaken by TECNATOM, as well asthe strategies, activities and projects that are beingdeveloped to cover these needs, both in Spain andabroad.“Annual Inspection, Testing and MaintenanceWorking Session” / July 1 st .The event was attended by representatives from theAlmaraz, Trillo, Garoña, Cofrentes, Ascó, Vandellós andJosé Cabrera nuclear power plants, ENDESA Generación,Iberdrola Generación, UNESA, ENUSA and Ringo Válvulas,and constituted an excellent chance to get to know thework being performed in this field by both our companyand the other participating organisations, to learn of futuretrends and to share views on aspects aimed at achievingcommon goals.5051

Stand for the automatic changing of inspection modules anddevices on the MAMUT 1 machine - Airbus SpainMechanical design work area“Annual Instrumentation and Control, Simulationand Human Factors Engineering Working Session“ /January 15 th .With a view to presenting our experiences in the field ofInstrumentation and Control, identifying the needs of theplants and debating possible future proposals, TECNATOMorganised this working session, attended by nuclearpower plant and electricity utility engineering managers.The session included presentations of new methodologiesin the field of Human Factors Engineering and the newoperating aid systems currently under development,among others things.The event was attended byrepresentatives from theAlmaraz, Trillo, Garoña,Cofrentes, Ascó, Vandellósand José Cabrera nuclearpower plants, ENDESAGeneración, IberdrolaGeneración, UNESA, ENUSAand Ringo Válvulas.

Technology developmentand innovationTecnatom’s active and increasing participation in newnuclear projects and high degree of activity on the nationaland international markets go to confirm the excellentlevel of technology achieved and, at the same time, pointto the search for new challenges that are contributing toproviding a technological drive that has a highly positiveimpact on the positioning of the company.Numerous projects have culminated in 2009, some ofthem emblematic, and together they have contributedto improving a critical aspect that is at the core ofthe Strategic Plan: the maintenance of a position oftechnological independence and leadership in thekey areas of the business, this being something thatrequires continuous activity and effort in developmentand innovation. This effort is increasingly shared withthe Group companies, without forgetting the necessarycollaboration with others, especially universities andresearch centres, and is making it possible to shorten leadtimes and address challenges that would otherwise beimpossible to face.Another important aspect is the implementation of anR&D&i Management System (SiGiDi), in accordancewith the UNE: 166002:2006 standard, accredited bymeans of an external certification, which has allowedthe management of innovation to be improved. In themedium term this will undoubtedly lead to an increasedcapacity to innovate, something that is vital in thecompetitive environment in which we operate.Safety, Operation and TrainingIn the area of Training and Operation, different technologydevelopment and innovation initiatives have beenmaintained and undertaken, these being set out below:Particularly noteworthy has been the company’spresence and participation in numerous conferences,working groups and different events that have allowedus to improve the level of technological surveillance andadequately disseminate our capabilities. Particularlyrelevant in this respect is the continuous increase inparticipation with EPRI, via the reference centres ordirectly, as the case may be.

− Development of a methodology for services relating tonew reactors, encompassing all those associated withoperation (CR design, procedures, training, V&V, etc.).− Development of teaching material and preparation ofinstructors to undertake the training of the first crewsfor the AP-1000.REPORT ON ACTIVITIES 2009− Licensing of Digital I+C Systems. Improvement ofmethodologies applied to the process of instrumentationand control equipment dedication based on software(smarts).− Updating of simulators required by the plants as aresult of control room modernisation:Plant computer for Trillo and Almaraz.Digital control of turbine at Cofrentes and MSR’s atAlmaraz.Incorporation of remote shutdown panel at Almaraz.− Development of specific methodologies for theapplication of human factors engineering to plantmodifications, along with an integrating approach to allactivities relating to plant operation.− Migration of the simulation technology platform to theWindows environment.− Participation in different projects funded by the 7thEuropean Union Framework Programme:CAST Project: Comparative evaluation of training profilesfor first-wave emergency personnel in the EU.TRASNUSAFE Project: Design, development and testingof different nuclear safety culture training approachesin the EU.ENEN3 (EFTS) Project: Design of training plans atEuropean level for generation III and IV reactorpersonnel.− Development of new selection tests based on safebehaviour, along with the University of Barcelona.− Project for homologation of the bioelimination dosimetryservice and accreditation by ENAC of the direct dosimetryservice.− Modernisation of the software technology supportingthe SAT (Systematic Approach to Training) methodology,based on INPO experience, bymeans of the VISION tool, anddevelopment of courses for SATspecialists and plant managers.− Development of alarms filteringmethodologies to facilitate thetracking of incidents and thediagnosis of faults at nuclearpower plants.− Design and development of specifictraining programmes for ControlRoom Shift Chiefs and PlantSupervisors.Hydraulic loopinstructor’s console5253

REPORT ON ACTIVITIES 2009− SIMCAM Project (Field Simulator and Workshopclassrooms): Development of the specification for theinstallations required to make available the best resourcesfor the strengthening and practice of behaviours in thefield (applicable to operators, supervisors, managers andforemen, engineers, …).Engineering, Inspectionand TestingEquipo UT, SOMIAD-FICOMPACTThroughout 2009 Tecnatom has further increased itstechnology drive with a view to becoming a reference in areasof inspection and testing, improving different inspectionsystems, completing product developments and investigatingnew technologies. The most relevant activities are listedbelow:− Various eddy current sensors have been developed, mainlyfor the inspection of tubes. Particularly relevant are a veryhigh speed rotary probe that is expected to enter into servicein 2010, new high sensitivity crossed coils and array probesfor different applications.− The inspection system for WWER steam generator tubeshas been updated, this having made it possible to continuesupplying this type of equipment to the Eastern Europeancountries.− Great progress has been made, in collaboration withENUSA, in the development of the SICOM GAMMA system(equipment for measurement of the gamma radiationspectrum of a rod or of an entire fuel assembly, and of theneutron flux emitted, for accreditation of the degree ofburnup), and an initial qualification has been performed ata nuclear power plant.− As is habitual, numerous inspection procedures have beendeveloped, using various techniques and adapted to a widevariety of standards and requirements, for different industrialsectors, this in many cases requiring a very significantcomponent of innovation. Particularly noteworthy hasbeen the work carried out in France, Switzerland andChina, which has required specific developments, and thecontinuation of the GRUVAL, CITEC, ITER Divertor and EPRprojects in the nuclear sector and of the DAICA project inthe field of aeronautics.− A series of projects has been carried out with the aim ofexploring the application of new emerging or only slightlydeveloped inspection techniques, such as shearography,infra-red thermography, ultrasonics in air and far fieldmagneto-resistive sensors (GMR).− The development of a new range of ultrasonic equipmenthas now been completed, with commercial deploymentscheduled for 2010, and work continues on an in-depthreview of the software used in ultrasonic inspectionsystems.− In the aeronautical sector, the process of re-engineeringinspection systems for their industrialisation andstandardisation has now been completed and has beensuccessfully applied to two projects for supply to EADS andAirbus. In addition, advanced devices have been developedand integrated for the automatic changing of modules,marking of defects, prevention of collisions, compensation oferrors and learning of geometries, with a view to increasingthe degree of automation and the quality of inspections.− Also in the aeronautical sector, an important initiative hasbeen launched for the acquisition of knowledge and transferof Laser-UT technology for its use in future aeronauticalinspection systems, this having made it possible to achievean important contract for the supply of a unique and5455

innovative R&D installation for Airbus (Nantes), based onthis modern technology (LUCIE project).− RABIT Project: Major development efforts have been made toachieve the integration of industrial robots in NDT inspectionsystems. As a result of this development, TECNATOM hasincorporated so-called flexible inspection cells in its portfolioof products. These provide competitive solutions based onsimpler and more versatile and robust inspection machines,reducing costs and periods for delivery.− In the industrial sector, inspection techniques have beendeveloped for aerogenerator blades and a new immersionultrasonic inspection service has been incorporated usinga system known as 4TE, which allows for the inspection ofcylindrical metallic parts with high degrees of accuracy.− Several improvements have been made to the diagnosisequipment for motor-operated, pneumatic and checkvalves, these having allowed the capacities in this area tobe increased.− Innovations have been made in relation to systems for theassessment of ageing in electrical cables and to transformerand alternator remote monitoring systems.− The development and qualification of the inspectionprocedure for ferromagnetic tubes by means of eddycurrent far field techniques, with inspections having beenperformed successfully at several plants.MIDAS-VOUGHTBOEING-787ultrasonic map− In the area of Lifetime Management, work has continued onthe NuLife project and the STYLE and LONGLIFE proposalshave been presented and approved by the EuropeanCommission. Both proposals are aimed at optimising thelong-term operation of nuclear power plants. Anotherproject currently under way is VITER, co-financed by CDTIand oriented towards the development of an irradiationmonitoring programme for the materials of the future ITERfusion reactor.− Efforts continue in the active surveillance of emergingtechnologies through long-term collaboration projectsat European level, with continuation of initiatives suchas WSAN4CIP for the improved protection of criticalinfrastructures, PARTICOAT for the development of newcoatings and the assessment of their remaining lifetime,and MANUVAR for the creation of maintenance aid toolsusing Virtual Reality technologies. At the same time theoperational part of the SMEPP project has now beencompleted, with the exploration of potential applications forwireless sensor networks in the nuclear field.− Within the framework of projects relating to the NationalR&D Plan and to the autonomous communities, the mainactivities of the OTAICA project (financed by the communityof Madrid, CAM), for the industrialisation of phased-arraytechniques in the aeronautical sector, and INSPAL project(subsidised by IMADE, CAM), for the development ofadvanced NDT inspection techniques for aerogeneratorblades, have now been completed. The activities initiated in2008 within the SIMURO B project (multifunctional robotbasedsystems for the aeronautical sector) and the VITERproject (irradiation monitoring programme for the ITERfusion reactor), both subsidised by CDTI, continue. Withinthe framework of IMADE, a project has been developedthroughout 2009 for the design of new electromagneticsensors (new high speed rotary probe and array typeeddy current sensors). The SIMPAR project (Adaptivequality control systems for aeronautical components), alsosubsidised by CAM, will conclude in June 2010.

CorporatemanagementInformation SystemsThe access to and management of information requiresan organisational and technological infrastructure thatallows the adequate strategic positioning of our productsand services to be guaranteed. Likewise, the speedy,reliable and secure management of information providesthe flow required for the business to operate competitivelyand efficiently.2009 has been an especially demanding year, in keepingwith the situation of the rest of the business activity. Thefollowing are particularly noteworthy among the activitiescarried out during the year.− Implementation of the application for the management ofthe snubber maintenance business unit.− Incorporation of the EXPERT application for managementof nuclear power plant operating experience documentsfor use in the training provided TECNATOM S.A.− Adaptation of the Inspections Management System toprovide it with the functionality required for it to be usedby our clients within a WEB environment.− Likewise, the entire Adaptation Plan for the company’soffice computer system posts has been completed, alongwith the associated mail service infrastructures.a) Development and fine-tuning ofsystems and services:− Implementation of the VACO+ and SOR+ applications,which provide support for the management activitiesof those organisationally responsible for the Company.This system allows the business, the resources applied,offers, pending actions and projects assigned to eachorganisational unit to be integrally tracked.− Within the BI (Business Intelligence) environment, themanagement tables and analysis reports have beencompleted for clients and markets.The speedy, reliable andsecure management ofinformation provides the flowrequired for the business tooperate competitively andefficiently.

− Specification and analysis of alternativesfor the development and management of aback-up centre supporting an informationsystems continuity plan.REPORT ON ACTIVITIES 2009− Analysis, verification and adaptation of theperimeter protection systems.− Implementation of a new system for thesaving and recovery of information at ourheadquarters.Trainees using new learning resources (TABLET-PC)− Impulse for the creation and establishment of CollaborativeWEB’s between the different business groups andimplementation of the infrastructures required for theirmanagement.b) Communication and mobility− A new communications network with the Almaraz-Trilloplants has been installed and validated, along with thehigh speed infrastructures for data transmission withvarious international contractors.− Extension of the communications network to the newsheds incorporated.− Development and presentation of a prototype virtualdesktop to increase the flexibility of the requirements ofand access for our employees, both local and remote.c) Security− New criteria have been established, the existinginfrastructures being adapted for the storage of all theinformation, structured and otherwise, of the differentCompany organisations.− Definition of policies and application of the systematicapproach to management of software acquired and used.Quality, Safety and theEnvironmentQualityThe audits carried out by different organisations have beensuccessfully passed:− Audits performed by AENOR for:renewal of the certification of the Tecnatom QualitySystem in accordance with the ISO 9001:2000 standardcertification of the Tecnatom R&D&I management systemin accordance with the UNE 166002:2006 system.− Initial audit within the process of accreditation by ENACof the performance of immersion UT testing of forgedaluminium and stainless steel products.All the audits required by the following companies alsoprovided satisfactory results:− LAGUNA VERDE NPP (Mexico) for the renewal ofTecnatom homologation as a supplier for Laguna Verde.− IBERINCO, in order for Tecnatom to remain on the list ofapproved Iberinco suppliers.− Implementation of a new prototype for the incorporationof the digital signature with our clients.5657

REPORT ON ACTIVITIES 2009- INVENSYS, for Tecnatom to be homologated as a supplierof safety-related products and services (MCR, MMI, HFE,control room panels).− GENERAL ELECTRIC, for Tecnatom to be renewed as asupplier of services and engineering (Lungmen project)and inspection equipment and services.− There has been consolidation of both the InnovationManagement System, with proposals and ideas beingselected for development as possible projects throughthe Innovation Committees, and of the application ofthe EFQM Business Excellence model, implementing theactions and improvements identified during the selfassessmentcarried out in 2008.− Ascó-Vandellós, to assess the degree of implementationof the Tecnatom Quality System in the maintenance andupdating of the SMRs of Ascó and Vandellós.− COFRENTES, to verify the correct application of theTecnatom Quality System in the services contracted forthe 17th refuelling outage.− WESTINGHOUSE, for Tecnatom to be maintained asa supplier of NDT personnel, equipment and designservices.− EDF, for the assessment of Tecnatom as a supplier ofmanual NDT services, valve services (maintenance,diagnosis and leaks) and technical studies andassistance.− The incorporation of innovative management practiceshas been developed through a Corporate Project thathas contributed to reinforcing the commitment of theManagement to on-going improvement and innovationin management, this accompanying the now traditionalTecnatom culture of Technological Innovation.Other Quality activities− Issuing of quality plans corresponding to work performedat the installations of our clients and to the applicableprojects.− Compliance with the internal audits plan and InspectionPoints Programmes applicable to the inspection tasksperformed during the year at the nuclear power plants.− MoreTech, to verify Tecnatom’s capacity to supplypersonnel for eddy current inspections.In the area of Process Improvement:− Participation in the management bodies of the SpanishNon-Destructive Testing Association (AEND), occupyingthe Presidency of the Association and leading the QualityDivision.− The Innovation Management System has been certifiedwith AENOR, in accordance with the ISI 166002standard.− The Client Satisfaction process has been revised, its stages,procedures and responsibilities being adapted to a newmore agile approach that ensures a direct line betweenthe client and those responsible for implementing theimprovements deriving from the process.− The qualification and certification of all the inspection,testing and checking personnel has been adapted to thestandards of the nuclear market.5859

− Likewise, Tecnatom is part of the Quality and EnvironmentalAuditing Personnel Certification Commission (CERPER)of the Spanish Quality Association (AEC), occupying theVice-presidency of the Commission.− Participation on standardisation committees of theEuropean Committee for Standardisation (CEN) and inthe working groups of the Energy Industry Section of theSpanish Quality Association (AEC).Prevention of Occupational RiskOHSAS 18001 STANDARDProgress continued in the process of adapting theoccupational risk management system to the OHSAS18001 standard, with a view to requesting certification inthe shortest possible time.SELF-PROTECTION PLANSDuring the year certain job posts were changed to the premisesrented close to the headquarters of the company (specifically,an office measuring some 400 m2 was rented in the ÁncoraBuilding at number 1 Isla Graciosa street in San Sebastián delos Reyes). This building has a general self-protection plan,for which reason it was necessary to draw up a summaryadapted specifically to the area occupied by the personnel ofTECNATOM, S.A. In this respect and among other actions anEvacuation Team was appointed and trained and the plan wasdisseminated among those affected.TRAININGDuring this year the two-yearly re-qualifications inRadiological Protection required by Nuclear Safety Councilinstruction IS-06 have been carried out. Advantagewas taken of the presence of the workers at this courseto deliver first-hand training on the prevention ofoccupational risk and first-aid.In addition, a further 18 courses were delivered (96training events) on risk prevention. A total 7,494 hourswere dedicated to training in this area, the courses beingattended by 828 trainees.ACCIDENT RATENineteen occupational accidents occurred during theyear, 4 causing the absence of the affected person fromwork and 15 not having this effect.As regards the cause of these accidents, all those entailingthe absence of the worker may be catalogued as slight.Our accident rate is significantly below the nationalaverage, both in general and as regards other sectorshaving activities akin to our own, although the objective isalways to strive for the ideal situation of zero accidents.REGULATORY AUDITDuring the week of November 30th, the system for themanagement of occupational risk prevention was auditedas required by the Regulation on Prevention Services(Royal Decree 39/1997). This audit was performed by thefirm Ernst & Young and the result did not point to anyanomaly of any significance.National Total Total Service Total Water, Tecnatom2007 Sector 2007 Electricity and Gas 2007 2009Freq. index with absence 30,8 22,1 30,9 6,8Severity index 0,67 0,48 0,71 0,12Incidence index 50,7 35,0 51,7 11,8

OPERATION OF RADIOACTIVE FACILITIESThe Radioactive Facilities operated correctly throughoutthe year, with more than 3,500 entries and 41 radioactiveshipments.The Nuclear Safety Council carried out its annualinspection at the two radioactive installations, withsatisfactory results.RADIOLOGICAL PROTECTIONOn September 27th and 28th, the annual tracking auditby CEFRI (“Comité Français de Certification des Entreprisespour la Formation et le Suivi du Personnel travaillant sousRayonnements Ionisants”) took place with satisfactoryresults.EnvironmentThe documentation of the Environmental ManagementSystem has been drawn up, with a view to its certificationin accordance with the ISO 14001:2004 standard during2010.The management of the aforementioned wastes hasbeen coordinated through the management companiesauthorised for this task.The volume of wastes collected has increased, thisconfirming the upward trend experienced in recent yearsand ratifying the increasing awareness of the personnelwith regard to the protection of the environment.Documentary centreIn addition to the habitual management and electronicarchiving of the corporate information, the documentarycentre has focussed its efforts on the following:− Development of a contents subscription tool forassociation with areas and subjects of interest.− Completion of the “0 Paper Project”, incorporatingthe documents of the Safety, Operation and TrainingDivision.UT equipment calibrationA systematic approach has been implemented andresources have been provided for the recycling of nonhazardouswastes (paper and packaging) to be extended toall the installations at the headquarters in San Sebastiánde los Reyes.The Employee Portal (Keops) has continued to be usedas a channel for communication, information anddocumentation within the Environmental ManagementSystem, as well as for news on good practices and toincrease the awareness of the personnel.The Tecnatom clean points for the selective collection andtemporary storage of wastes have been managed. A studywas performed, leading to the identification and selectionof the resources required to improve the installations ofthe Central Clean Point, this action being scheduled forcompletion in 2010.

− Digitalisation of historic projects as part of thereorganisation of allotted space.In order to generate the Corporate Culture we consider itfundamental that the internal policies are aligned with thevalues that we aim to transmit,such that it be possible toachieve the commitment ofthe people in our organisation.This commitment should showthrough the way things aredone, through an attitude ofteamwork, innovation, etc. Inshort, it should be reflectedin our inward and outwardlookingattitudes, providing a stamp, a way of being andof doing things.REPORT ON ACTIVITIES 2009Human Resourcesand OrganisationThe Tecnatom Human Resources policy is designedto achieve a team of highly qualified people who areinvolved, satisfied and committed to the culture of thecompany, capable of generating value in order to achievethe strategic objectives mapped out.The process necessary to reach this goal requires adequatedimensioning of the workforce, an organisation adaptedto the needs and aligned with the strategic objectives anda motivated workforce technically capable of achievingthe latter.In this respect, at Tecnatom we consider two clearlydifferentiated but complementary Planes of Management:Performance Management and Corporate CultureManagement.By managing performance we are able to shape theculture of the company: Through a deep-rooted corporateculture it will be easier to manage performance.In keeping with this aspiration, Tecnatom appliesa strategic human resources plan based on fourfundamental building blocks: a demanding personnelselection policy, the offer of a stable environment forprofessional development, the maintenance of an ongoingtraining plan and the strengthening of internalcommunications.The process begins with the identification and selection oftalents, the retention of which will depend to a large extenton the suitable application of the aforementioned policies.The important growth of our workforce in recent yearsadds to the demanding nature of this objective, since thestability of the working environment of the employeemust apply to the company overall. Only in this way willit be possible for the 760 employees that made up ourworkforce as of December 31st 2009 to feel that they arepart of a common project.In order to involve the workforce in this project it isalso necessary to reinforce the policies of professionalreconciliation, ensure equality between men and women,provide personalised attention for the employee and makeavailable a series of social benefits. The absence of conflictsin recent years shows that the work carried out in this respectby the Human Resources organisation is bearing fruit.Students attending the mastercourse on Electricity GeneratingTechnologies6061

REPORT ON ACTIVITIES 2009Students attending the master course on ElectricityGenerating Technologies.In any case, talent needs to be developed andchannelled, and the Human Resources organisationattempts to do a great deal in this respect. The role oftraining is fundamental in endowing this talent withthe skills and abilities best suited to the strategic lineof the company.a mistake if we reinforced training only for those whodid not possess such skills or left out those who did nothave them.61,4%Post-graduates467Reaching a high level of technical excellence is anever present goal, but it is no less important to haveprofessionals capable of working as a team, takingdecisions, managing and developing other skills that arefundamental for organisation. Training plays a key rolein all this.For this reason, training and selection are closely linkedin our company. Both the process of recruiting and theempowerment of the personnel depend to a large extenton factors such as job post analysis, the human resourcesplan and the offer and quality of the job market.In a highly technical company such as Tecnatom, and in asector like the nuclear industry, where the safety culturerequires the highest levels of technical and humanpreparation, training reaches its maximum expression.In keeping with this consideration of training as astrategic factor for Tecnatom, and in view of the effect ofthe growth of the workforce in 2009, there has been animportant increase in the number of hours set aside forin-house training; the figure of thirty-six thousand hourshas been exceeded, this giving a ratio of three percent ofpotential hours of production.The training policy also encompasses all levels ofthe hierarchy, beginning with those managing theorganisation as the initial flag bearers of the corporatevalues to be transmitted. For this task it is essential thatthese managers possess management skills facilitatingtheir work. Management is also something that may belearned. The skills required may be associated with thepersonality of each individual, but we would be making6,2%AdministrativeSupport4713,3%Graduates101Además, hay que destacar las acciones de carácterlúdico para reforzar las relaciones interpersonales entrelos empleados, tales como Juegos de Otoño, Fiestainfantil, Recepción de Navidad, etc. Estas actividadesde comunicación informal están muy bien valoradasinternamente y a su éxito ha contribuido de manerasignificativa el propio Portal del Empleado.Another important tool when it comes to retaining talentis communication; communication as a way of promotingattitudes in keeping with the culture of the company.Today, with the 21st century now in full swing, internalcommunication may be said to be the main driver of theorganisation and an essential element for its management,constituting a discipline with an identity of its own.Consequently, communication is a priority corporate valueat Tecnatom, not just as a management tool contributing19,1%Specialists1456263

to increasing levels of motivation and commitment to thecompany and to generating a favourable working climate,but also as a key element in daily performance, the qualityof the work performed, the achievement of the objectivesof the organisation and the professional – and evenpersonal – development of the employees.For this reason it is essential to promote a policy of openand participative communication, in addition to achievinga higher level of involvement by the managers in allcommunication processes.With this dual objective in mind, every year theHuman Resources organisation draws up an InternalCommunication Plan, which includes generally applicableactions to be undertaken during the year and a specificaction plan for each organisation, since we are convincedthat only by addressing the specific problems of eachdepartment will we be able to make the right choices asregards efficient improvement actions. Each department,each department manager and each employee under hischarge have different profiles that require this arduousbut necessary specific analysis. Aspects such as thenumber of persons, the professional and personal profileof the employees and managers, the type of work to beperformed, location, etc. have a direct impact on the easeor difficulty with which fluid communications may beestablished.WINNINGPHOTOGRAPH2009PhotographyCompetitionAnother efficient tool for internal communicationsavailable to us is Keops, our Employee Portal. This isone of the resources that are most highly valued bythe workforce, and at the same time one of those thatgenerates the highest expectations. Throughout 2009more than 450 articles and 600 downloadable files havebeen published via this channel.Also worthy of mention are recreational actionsdesigned to strengthen personal relationships amongthe employees, such as the Autumn Games, the children’sparty, the Christmas Reception, etc. These informalcommunication activities are highly valued internallyand the Employee Portal has contributed significantlyto their success.Moment of relaxation by Pablo Mateo

Avenida Montes de Oca, 1.28703 San Sebastián de los ReyesMadrid (Spain)tecnatom.es