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2005      CONTENTS


CAJA MADRID GROUP             6
GOVERNANCE                   23
CUSTOMERS                   112
SOCIETY                     150
ENVIRONMENT                 206
SUPPLIERS                   236
YOUR OPINION                244



  2005          CHAIRMAN’S

The Caja Madrid Group has drawn up its “Corporate
Responsibility Report” for another year, in accordance with the
most advanced international standards, relating the specific
actions carried out in 2005 to the benefit of stakeholder groups.
This document, as such, is not merely a declaration of intent,
but a detailed account of projects and goals that give concrete
form to our engagement with the environment in which we

More and more companies are growing to the awareness that
the impact of their activities goes beyond the economic sphere
to a far wider context in which diverse social agents intervene. It is true that the ultimate aim of any
business is to generate earnings, but we must also learn to nurture our relations with stakeholders to
ensure a sustainable future for our organisations. This is the driving idea behind Corporate Social
Responsibility, a new business dimension in which economic, social and environmental considerations
meet together under conditions of equality.

For Caja Madrid, CSR is not about meeting minimum standards, but about the voluntary integration
of social and environmental concerns in our day-to-day management practices and our dealings with
all stakeholders. Indeed, CSR has been part of Caja Madrid since its beginnings in 1702; expressed
through the social agenda of Obra Social Caja Madrid and Fundación Caja Madrid, to which we
voluntarily assigned 161.2 million in 2005, and our committed relationship with stakeholder groups.

As a material reflection of our CSR vision, we have organised our activities and practices in the
professional, environmental and social arenas into a CSR Management System, forming part of the
Caja Madrid Integrated Management Model.

All these aspects are covered in the present report, which gives a detailed relation of 2005 projects
with the accompanying figures. It is also our intention to stay ahead in transparency and innovation,
as we were in 2004 with the first CSR report released exclusively in digital format, and the only one
to obtain the in accordance category in its first year of publication, the maximum internationally
accepted standard for CSR reporting. Like its predecessor, this 2005 report has been prepared in

  2005           CHAIRMAN’S

accordance with the 2002 GRI Guidelines, and represents a balanced and reasonable presentation
of our organisation’s economic, environmental and social performance.
In 2006, we will continue working in all areas of activity to meet our social responsibility commitments
with the groups with whom we engage:

   with customers, through an open dialogue that assures them the best service,

   with customers, through an open dialogue that assures them the best service,

   with customers, through an open dialogue that assures them the best service,

   with our employees, so they go about their duties under the best professional and personal

   with the environment, by seeking to optimise resource consumption, and

   with society, by creating wealth in the geographical areas where we do business and through
   the help given to disadvantaged groups.

Caja Madrid has the historical vocation to stand as a leader and example in CSR practices, and we
will continue to devote our best efforts to this end.

                                                                      MIGUEL BLESA DE LA PARRA
                                                                                Caja Madrid Chairman




2005      CAJA MADRID

ORIGINS                               8
ABOUT US                              9
    MISSION                           9
    VISION                            9
    VALUES                           10
CAJA MADRID ACTIVITY                 14
    GEOGRAPHICAL REACH               15
    MAIN PRODUCTS                    16
    SPONSORSHIPS                     19
INDICATORS                           21
    GENERAL                          21
    INCOME STATEMENT                 21
    RATIOS                           22

  2005          CAJA MADRID

Caja Madrid traces its origins to the Monte de Piedad de Madrid, a pawnbrokong institution founded
on 3 December 1702 by the Aragonese priest Francisco Piquer. Its initial purpose was to attend the
needs the most disadvantaged sections of society by granting interest-free loans secured on jewellery
or clothes. The intenton was to save these vulnerable groups fron the worst excesses of usury.

The Monte de Piedad de Madrid needed to fund this lending activity, which it did by raising cash

The Monte de Piedad de Madrid was something like a dry run in Spain for the introduction of credit
institutions. In its earliest days, it was a charitable organisations under a Royal Board of Trustees,
supported by the donations and interest-earning deposits of private individuals. The Monte charged
no interest on its loans, and gave users up to 18 months to redeem their pledges.

The charging of interest on loans was first broached in 1836, the idea being to cover the
administrative expenses generated by the Monte´s activity and secure its economic future. The result
was the Caja de Ahorros de Madrid, established two years later on 25 October 1838, with the purpose
of taking small-value deposits fron the less well off.

Despite the link between the Caja Madrid and the Monte de Piedad, both institutions were functionally
independent under wholly separate governing bodies. However, their continuing financial
interdependence led eventually to their merger, in 1869, and the birth of the Monte de Piedad y Caja
de Ahorros de Madrid, founded on 22 April of that same year. In later years, due mainly to the growing
importance of the savings bank side. The order was inverted and the name became Caja de Ahorros
y Monte de Piedad.

  2005          CAJA MADRID

Caja Madrid is a financial institution with a social remit which
in the last 300 years has successfully carried forward a two-
fold enterprise: the advancement of a social and financial
agenda that expresses our roots and our Mission.

Our Vision is a future orientation which provides the basic
framework for the design of our strategic goals.
                                                                           Ramón Rubio Moreno
                                                                          Branch 5836 - Zaragoza
These efforts are informed by a series of Values which are
reflected in our day-to-day activity and constitute our badge
of identity.


“Caja Madrid, a national financial group with an international reach, has the mission to address its
clients’ financial needs in the framework of a universal banking model with service quality as its key
differentiating element, and to contribute to the sustainable growth of the society where it operates
through its business activity and its social and cultural agenda”.


“Caja Madrid aims to be the leading financial group in the Madrid Region and a provider of reference
in all other contested markets, combining a differentiated offering by geographical market and customer
segment with personalised guidance and optimal profitability and efficiency ratios, supported on
innovation, customer service quality and the contribution of all the professionals within our Group”.

  2005           CAJA MADRID


1. A professional team and a belief in people as the motors of the future.
2. Pride in belonging.
3. An ethical approach and full legal compliance in all the markets where we operate.
4. The pursuit of quality to build customer trust and loyalty.
5. Ongoing improvement and innovation in products, systems and services, as a key competitiveness
6. Profitability and efficiency as guarantors of our social programme.
7. Prudence and solvency at the service of customer funds, balance sheet strength and the
  management of risk.
8. Informational transparency.


Caja Madrid is the dominant entity within
the Group as well as lending its corporate
identity to the whole organisation.

The Group conducts its activity through
Caja Madrid and a series of companies
owned directly or through Corporación
Financiera Caja Madrid, engaging in
different areas of the financial business. As
a supplement to its financial activity, the
Group holds a portfolio of investments in
firms operating in strategic sectors,
prominently Mapfre-Caja Madrid Holding,
Realia, Endesa, Indra, Iberia and NH Hoteles.

Caja Madrid’s structure is geared to maximising the satisfaction of customers and the broader community.
These goals are shared by all the people within our Group, and reflected in the organisational structure
approved by the Board of Directors.
2005         CAJA MADRID

INTERNAL             Develops auditing procedures in order to add value and improve the efficiency
AUDIT UNIT           and efficacy of the Group’s internal control processes and systems, under
                     the supervision of the Control Committee.

COMMUNICATIO         Manages internal Group communications, media relations and advertising
NS UNIT              and sponsorship activities. Also responsible for the defence of our corporate

OBRA SOCIAL          Implements the social and cultural agenda of Caja Madrid via direct projects
UNIT                 or partnership initiatives with like-minded institutions and/or associations in
                     the community welfare, educational, cultural and environmental spheres, and
                     in different autonomous regions.

FUNDACIÓN            Organises cultural programmes at national level in the fields of historical
UNIT                 heritage conservation, music promotion and diffusion, cultural promotion and
                     exhibitions, scholarships, research and public universities.

RETAIL BANKING       Takes in the banking activities conducted through the Caja Madrid branch
UNIT                 network with individual clients, retailers, small and medium-size firms and
                     property developers.

INVESTMENT           Takes in dealings with international financial institutions and large corporate
BANKING UNIT         accounts; project finance; asset finance structuring; advising on corporate
                     M&A, capital and structured products, etc.; the Group’s treasury activities;
                     money market and equities trading and market-making labours in government
                     debt securities; the management of Group investment portfolios and capital
                     market activity.

FINANCIAL            Groups activities in the fields of financial asset brokerage and management,
CORPORATION          private banking, insurance, real estate and development capital.

2005        CAJA MADRID

FINANCIAL           Contributes to defining the strategic framework, coordinates Tactical Planning
DIRECTORATE         and oversees the preparation of Caja Madrid financial statements. Also in
UNIT                charge of managing the credit risk process, and coordinating relations and
                    activities for the obtention of external ratings.

RESOURCES           Defines the strategic guidelines for human resource policies, manages the
UNIT                purchase and maintenance of goods and services and proposes environmental
                    management plans and activities. Responsible also for the safety and integrity
                    of people and assets, the design and internal promotion of quality strategy,
                    and collaborating in the management, rationalisation and control of investments
                    and general expenses.

ORGANISATION        Spearheads the design and rollout of Technology Plans and coordinates the
AND SYSTEMS         development of IT architecture, operating processes and systems. Also in
UNIT                charge of telephone services, and the evolution and maintenance of the
                    technological platform.

GENERAL             Supports the General Secretary in the exercise of his or her functions within
SECRETARIAT         Caja Madrid, with particular regard to the coordination and execution of
UNIT                decisions of the Governing Bodies and Management Committee, and those
                    of subsidiary and investee companies. Provides legal counsel and other
                    guidance for all Caja Madrid ventures, and deals with customer complaints.

  2005          CAJA MADRID

Savings banks make up half of Spain’s financial system, and are its foremost agents in lending and
deposit-taking. They operate the largest branch and ATM networks, and also lead the field in card

A series of legislative measures in the 1980s sought to place the banks and the savings books on
the same legal and operational footing. This process culminated in 1988 when the latter were allowed
to open branches, without limitation, beyond their “home” regions.

Caja Madrid is currently one of Spain’s leading financial institutions, serving more than 6.7 million
clients through its 12,731 professionals and its multichannel distribution capability. It occupies fourth
place in the Spanish financial sector ranking by total assets, loans and customer funds, and stands
among Europe’s top fifty by the measures of equity and pre-tax profits.

  2005          CAJA MADRID

Caja Madrid conducts its financial activity in multiple areas of the banking business. It offers a
comprehensive range of products and services in retail, investment and private banking designed to
match the needs of its 6.7 million customers in all business segments: families, SMEs, large corporates
and public and private institutions. It also engages in business lines such as asset management and
brokerage, insurance, real estate and provision of development capital in fields like infrastructure,
transport, renewable energies, healthcare and leisure. The Group has also built up a valuable
investment portfolio spanning key economic sectors like energy, technology, real estate, services and
communications, as a supplement to its core banking activity.

The Group's strategic guidelines for 2004-2006 are defined by Project 2006. Through this Project, the
Group has set itself far-reaching objectives in key banking variables relating to profitability, efficiency,
market share and quality, to be met in all cases by the end of 2006. Numerous initiatives have been
set in train to achieve these objectives, with the focus on profitable business growth, the improvement
of customer service quality and strengthening our organisation’s technology lead.

Aside from its financial activity, Caja Madrid is a reference name in social action, pursuing an intense
social and cultural agenda through Obra Social Caja Madrid and Fundación Caja Madrid. These efforts
are resourced with a large percentage of the profits earned from banking business, with the 2005
allocation set at 161.2 million. This is our way of contributing to an improved quality of life and the
advancement of social progress in the communities where we operate.

Caja Madrid publishes an annual report setting out all relevant financial information. It also brings out
a joint report covering the annual activities and programmes of Obra Social and Fundación Caja Madrid.

These reports are available on:

Corporate website
Obra Social website
Fundación website

  2005           CAJA MADRID


Caja Madrid is present in all of Spain
through one of the largest networks
in the national financial system. Its
distribution model is eminently
customer-focused with a variety of
channels to maximise choice and
convenience. Multichannel capability
extends from the traditional branch
network to advanced kiosks, the
Internet Branch, the Telephone
Banking service, the WAP Branch
(via WAP, Imode, Blackberry or
Smartphone devices) and external
sales    networks,    with     Banking
Distribution Offices (BDOs) in pride of

  2005          CAJA MADRID


Caja Madrid offers a broad array of financial solutions to individual and business clients, with main
product lines as follows:

   Saving: sight and fixed-term deposits tailored to every client profile, and with returns among the
   “best in class”.

   Loans: customers can mix and match amounts, repayment terms and other features according to
   their needs and the loan modality, enjoying competitive interest rates every time.

   Cards: a varied offering of debt and credit cards so customers have their money to hand without
   having to carry it around.

   Pension plans: a wide choice of retirement plans to supplement state pension benefits.

   Mutual funds: a selection of funds spanning every market and sector to help you maximise returns
   on your investment.

   Insurance: a range of risk and financial planning solutions unequalled in the Spanish market, to
   ensure our clients the best quality of life.

   Securities: advisory and brokerage services in fixed-income and equity instruments to set you on
   the road to investment success.

Investment Banking offers institutional clients a series of dedicated products and services, featuring:

   Bilateral and syndicated loans.

   Bond underwriting and placement.

   Project finance.

   Commercial credit: discount facilities, cash advances, leasing, factoring, etc., as alternative cash
   management tools for business clients.
  2005            CAJA MADRID

  Treasury lines: working capital facilities for productive companies.

  Guarantees: for companies’ third-party transactions.

  Interest rate protection: the use of derivative products to smooth exposure to interest rate

  Advisory services: M&A and valuations.

  Appraisal services: for real estate properties.

More information on key product lines can be accessed on our corporate website:

  2005         CAJA MADRID


Caja Madrid pursues its social and cultural agenda through Obra Social Caja Madrid and Fundación
Caja Madrid. The combined 2005 outlays of these organisations summed 161.2 million ( 141.8
corresponding to the voluntary allocation) with the following breakdown by programme:

  2005          CAJA MADRID


Sponsorship creates a linkage between the advertiser and its brand values, which can thus be
transmitted more effectively to society.

The basic premise is to support projects that intersect with our organisation’s values. Listed below
are a sample of the diverse collaborations undertaken in 2005:

   2005 was the year Caja Madrid joined its name with that of one of the
   world’s most prestigious sporting events, as a sponsor of “Desafío
   Español”, the Spanish challenger in the 32nd Americas Cup to be
   held in Valencia in 2007. The Americas Cup is known as the world’s
   oldest sporting trophy with a lineage that traces back to the year
   1851. Remember that the first modern Olympics were held in 1896,
   by which time the Americas Cup was all of 45 years old! The 32nd
   edition has the added attraction of being the first ever organised in
   Europe, and the fact that Valencia was chosen to host the event out
   of various competing cities. A great honour for Spain as well as a
   considerable responsibility.

   Caja Madrid has kept up its support to the Olympic project through our longstanding collaboration
   with A.D.O. (Spanish Olympic Sports Association), renewed last year until the Peking Games of
   2008. This agreement also extends to the Spanish Paraolympic Committee.

   For the fifth year running, the Caja Madrid Derbi Racing
   team was represented at the World Motorcycling
   Championships in the 125 c.c. category. Drivers Pablo
   Nieto and Nico Terol defended our colours in 2005,
   ensuring that we held our breath at every curve. Our
   support to the world of motor sports extended to the RACC
   Caja Madrid Racing Team competing in the Spanish Speed
   Championships, and the Derbi Caja Madrid Promotion Cup
   contested by 30 drivers aged 13 to 16.

 2005          CAJA MADRID

  The fourth edition of the “Universitarios del Mundo” awards, giving a group of Spanish university
  students the chance of a year’s paid work experience with Caja Madrid. These awards are intended
  to recognise and reward academic achievement, communicative ability, solidarity, leadership and
  formation in human and social values.

  The 64th edition of the Madrid Book Fair, which again broke all attendance records with a total of
  3,300,000 visitors.

  Other high-profile social and sports collaborations were: the centenary celebrations for Casa Batlló,
  among the finest works of architect Gaudí, the organisation of Business Encounters in various
  Spanish provinces, the Fuensalida International Cross Country Race, the 2nd International Paddle
  Tennis Master's Series, our involvement in the MTV Day and MTV Music Barcelona concerts, etc.

For more information, see the corporate website













INTRODUCTION                           25
GOVERNING BODIES                       26
   GENERAL ASSEMBLY                    27
   BOARD OF DIRECTORS                  28
   EXECUTIVE COMMITTEE                 28
   BOARD COMMITTEES                    29
     Obra Social Proposals Committee   29
     Remuneration Committee            29
     Investment Committee              29
   CONTROL COMMITTEE                   30
   EXECUTIVE CHAIRMAN                  30
GUIDING PRINCIPLES                     32
INDICATORS                             34

  2005           GOVERNANCE

Caja Madrid has a wide social remit deriving from its status
as a privately founded “Popular” Savings Bank under Royas

Current legal provisions on the governing vodies of savings
banks, including those issued by the madrid Regional
Government, state that General Assembly should comprise
representatives of the different social and collective interests   Francisco Javier Sánchez Langeber
which the institution engages. In Caja Madrid´s case, these                Common Systems

interests are identified with town councils, depositors, the
Royal Board of Trustees as the founding entity, employees, the Madrid parliament and the other
stakeholder groups (employer´s and trade union organisations, public universities and foundations or



  2005          GOVERNANCE


The General Assembly, made up of representatives of the social and collective interests within Caja
Madrid’s operational radius, is the organisation’s supreme governing and decision-making body. It is
made up of 320 members known as General Directors. The General Assembly is called by the Board
of Directors, which may convene it in ordinary or extraordinary session, and is mandated by the Bylaws
to meet at least twice a year. General Assemblies may also be called at any time by one third of the
General Directors or at the request of the Control Committee.

The Founder is entitled as Royal Trustee to appoint 20% of the General Directors. When it waives this
right, the General Assembly is formed by the following members, elected by:

   Town Councils within whose boundaries Caja Madrid has a functioning branch 31.25% (100).

   Depositors, 35% (112).

   The Madrid Parliament, 12.5% (40).

   Employees, 11.25% (36).

   Entities representing other stakeholder groups, 10% (32).

General Directors are appointed for six years and may be re-elected for one more term up to a
maximum of twelve consecutive or non consecutive years. The group is partially renewed every three
years as provided in the Caja Madrid Bylaws and electoral regulations, which can be consulted on the

In accordance with the Bylaws, Caja Madrid must send the General Directors the financial statements
and management report, the proposed distribution of earnings, the Control Commission’s audit report
and, where relevant, the external auditor’s report at least twenty days before the date set for the year’s
first ordinary General Assembly.

Any document or proposal other than those listed above being presented for discussion to the first or

  2005          GOVERNANCE

successive ordinary General Assemblies should be sent to General Directors at least fifteen days in
advance, unless the notice of the meeting states that they can be picked up at the organisation’s
registered offices.


The Board of Directors is the governing body in charge of the stewardship, financial management
and representation of Caja Madrid, its Obra Social and the Monte de Piedad pawnbroking institution,
and has full powers to exercise all related functions, except for the functions and powers expressly
reserved for other governing bodies by law or under the Caja Madrid Bylaws.

The Board is made up of twenty-one members elected by the General Assembly. These members
are drawn from each sector pro rata with their presence in the General Assembly (seven for the town
councils, seven for depositors, three for the Madrid parliament, two for employees and two for
representative entities).

The Chairman of the Board of Directors also serves as Chairman of the General Assembly and of
Caja Madrid itself. The appointee is chosen by the Board from among their number, and may also
be granted executive powers. He or she will hold the post for six years, as mandated by the Bylaws,
and may be re-elected for an equal term. The current Chairman holds executive powers.


The Executive Committee has a maximum of ten members – the Chairman of the Board and up to nine
others. All must be qualified to perform their duties and belong to the sectors indicated in the basic
legislation on savings bank governing bodies, or to the separate sector corresponding to the Madrid

The Executive Committee is chaired by the Board Chairman or, in his or her absence, by the
Committee member he or she delegates, and run under the same procedural rules as the Board itself.
It meets at weekly intervals or as many times as are deemed necessary to discuss and resolve on the
business within its competence. In 2005, the Executive Committee met on forty-four occasions.

  2005         GOVERNANCE


Standing committees are established by the Board of Directors to discuss and resolve on the specific
questions within their remit. The resolution to set up a standing committee must have the support of
an absolute majority of Board members, and specify the exact functions being delegated.

The members of these committees will be individuals qualified for the task in hand, appointed by the
Board from among its own number.


The Obra Social Proposals Committee can have from five up to ten members, including the Chairman
of the Board of Directors who will also exercise its chairmanship. The procedural rules for the Obra
Social Proposals Committee are set out in its Terms of Reference, which must have the unanimous
approval of the Board of Directors and be entered in the Madrid Mercantile Registry. These Terms of
Reference can also be consulted on the website The Obra Social Proposals
Committee held twenty-four meetings in 2005.


The Remuneration Committee is made up of three Caja Madrid directors elected, at the proposal of
the Chairman, by an absolute majority of Board members. The chairmanship of the Committee rotates
among its members at each successive meeting.

The Committee has a deliberative and advisory role but no executive powers. Its organisation,
responsibilities and procedural rules are set out in its Terms of Reference, as approved unanimously
by the Board of Directors and entered in the Madrid Mercantile Registry. A copy is also available for
consultation at

The Remuneration Committee held four meetings in 2005, as of its establishment in September of the
same year.

The Investment Committee has three members, all of them drawn from the Board of Directors of Caja

  2005          GOVERNANCE

Madrid and elected by an absolute majority of its members at the proposal of the Board Chairman. The
chairmanship rotates among its members at each successive meeting.

The Committee has deliberative and advisory functions but no executive powers. The reports it send to
the Board of Directors are included in the Annual Report on Corporate Governance. Its organisation,
responsibilities and procedural rules are set out its Terms of Reference, approved unanimously by the
Board of Directors and entered in the Madrid Mercantile Registry. They may also be consulted on the
Caja Madrid website

The Investment Committee held four meetings in 2005, as of its establishment in September of the
same year.


The Control Committee oversees the management performance of the Board of Directors to ensure
its efficiency, legality and conformity with the Bylaws, as well as with the instructions issued by the
General Assembly.

It has thirteen members elected by the General Assembly from among the General Directors who do
not sit on the Board of Directors. Representatives are drawn from each sector in the same proportion
as for the General Assembly (four from the town councils, five from depositors, two from the Madrid
parliament, one from employees and one from representative entities).

The Control Committee prepares a six-monthly report on the financial stewardship of Caja Madrid’s
various governing bodies, which it sends to the General Assembly, the Bank of Spain and the relevant
department of the Madrid Regional Government.

The tenure of Committee members is six years with the possibility of re-election for an equal period.
The representatives of each sector are partially renewed at three yearly intervals.


The Chairman of the Board of Directors of Caja Madrid has been vested by the Board with executive
powers. In accordance with the Bylaws, the holder of the post is therefore the chief executive of the

  2005         GOVERNANCE

organisation, at the pinnacle of its administrative and managerial structure. Moreover, he or she is
empowered to exercise the functions which Law 31/1985 of 2 August (LORCA) attributes to the
General Manager, a position which does not exist in Caja Madrid.

The Executive Chairman is assisted by a Management Committee made up of Unit Directors holding
delegated powers.

  2005           GOVERNANCE

The Caja Madrid Bylaws lay down the principles to be followed by all members of its governing bodies
in the pursuit of their duties, which should be conducted:

   For the exclusive benefit of Caja Madrid and its social and cultural agenda.

   With full independence from the organisations or collectives electing or appointing them, which
   may not instruct them as to how to perform their functions. Members of governing bodies shall
   only be accountable to the body they belong to and, ultimately, to the General Assembly.

   Respecting the duty of secrecy with regard to any confidential information received in the exercise
   of their duties.

As prescribed by current legislation, Caja Madrid has drawn up Internal Rules of Conduct for securities
market activity. These rules apply integrally to members of the Board of Directors, the Control
Committee and the Management Committee. Their purpose is to prevent conflicts of interest or the
improper use of inside information in the power of governing body members.

  2005          GOVERNANCE

Work proceeded throughout 2005 on maximising the
accessibility of the various websites run by Caja Madrid. Site
navigation is from a single portal which gives access to
complete information on individual, business and corporate
banking services as well as cultural and community welfare
activities. In keeping with the transparency principle of the
Corporate Social Responsibility System, the investors’
information section was fully updated in 2005 with new
extended contents. Among the novelties, users can now             Araceli Fernández Fernández
                                                                 Corporate Administrative Services
consult the Caja Madrid Corporate Governance Report
drawn up in accordance with Law 26/2003 of 17 July on the
transparency of public listed companies.

   Corporate governance report.

   Significant events.

   General Assembly reports.

   Annual reports.

   Communication channels.







2005       PERFORMANCE

INTRODUCTION                     37
RISK MANAGEMENT                  38
 PRINCIPLES                      38
 TOOLS                           39
 COLLABORATIONS                  40
 THE TITAN PROJECT               42
AUDITING                         44
 AUDIT PLAN                      44
 QUALITY SYSTEMS                 45
 THE CMMI STANDARD               46
 INTRODUCTION                    48
INDICATORS                       50
 GENERAL                         50
 AUDITS                          50
 TITAN                           50
 DATA PROTECTION                 51

  2005          PERFORMANCE

In today’s competitive global landscape in which the regulatory framework plays a large and growing
part, the adequate control of management risks calls for more and more sophisticated instruments.

Caja Madrid has deployed a series of tools to guarantee strict compliance with legal rules and ensure
its business is conducted at all times in a moral and ethical manner. This commitment is overseen
by the Regulatory Compliance team forming part of the General Secretariat Unit, which checks that
all business practices are aligned with the relevant legislation and respect the rules of fair trading.

Caja Madrid also adheres to the codes of conduct applicable to its activities, playing its part to promote
the transparency and development of markets and free competition in the finance sector.

As a financial institution, Caja Madrid falls within the regulatory scope of financial authorities and
agencies like the Bank of Spain and National Securities Markets Commission (CNMV). This external
vigilance is supplemented at Caja Madrid by internal regulations which take on board the directives
and recommendations issued by supervisors: namely the “Professional Conduct Manual” for all Group
professionals, the “Internal Rules of Conduct” governing securities market activities and the “Code
of Conduct for Treasury & Portfolio and Capital Market Teams”.

  2005          PERFORMANCE

Risk management, as a strategic axis, sets out to preserve
Caja Madrid’s financial strength and net worth, to maximise
risk-return within the risk tolerance thresholds laid down by
the governing bodies, and to generate tools for the control
and monitoring of authorised risk levels. Caja Madrid also
seeks to wed these objectives with social responsibility
standards like transparency, ethics and respect for the
                                                                       María Dolores Ramos Marquez
                                                                           Branch 1888 - Madrid
Work continued through 2005 on rolling out technological
projects for the automation of the taskflow deriving from
internal risk models, and for the generation of a risk information database compliant with the integrity,
consistency and reliability standards of the New Basel Capital Accord (NBCA). Caja Madrid has also
submitted an Implementation Plan to the Bank of Spain, which meets NBCA specifications regarding
the time horizon of data input. The resulting calculation differences mean the risk indicators reported
here will differ in some instances from those presented in the CSR Report for the year 2004.


Independence. In order to preserve loan-book quality at arm’s length to commercial considerations,
risk management is supported on professional teams, techniques, policies and tools built and managed
from within the organisation’s risk analysis units, and regularly updated in line with market and,
therefore, client needs.

A global vision. Risk management calls for both sound admission and identification procedures
and the monitoring of authorised risk. These tasks were rounded out in 2005 by the creation of an
Integrated Risk Control Area which has worked to consolidate internal developments in global risk
management. This integrated approach addresses the requirements of the New Basle Capital Accord
(NBCA) as regards the application and validation of internal risk models, while simultaneously pursuing
compliance with its Pillars II (Supervisory Review Process) and III (Market Discipline).

  2005           PERFORMANCE

Analysis. Extending to the full complement of risks underlying each transaction, permitting its
evaluation from a credit, market, liquidity and operational standpoint.

The concerns of Pillar II (Supervisory Review Process) were addressed in 2005 by the rollout of a
pricing tool for the companies segment; the application of risk-adjusted return methodologies to retail
segment scores, and, finally, analysis of the impact of sector and segment diversification, and cross-
segment default correlations. A quantitative reporting system has also been implemented for Pillar III
(Market Discipline) requirements, with fold-in to the management system.

Caja Madrid stays permanently vigilant to the sectoral concentration of its loan portfolios with reference
to key variables like product, term and geographical area. With regard to operational risk, which the
NBCA defines as “the risk of loss resulting from inadequate or failed internal processes, people or
systems or external events, and including legal risk but excluding strategic and reputational risk”,
work in 2005 centred on the preparation of a manual of operational risk policies and procedures, the
first-time mapping of operational risk across different services and units and the use of self-assessment
questionnaires permitting regular update of the organisation’s operational risk profile.


In addition to the general ethical principles that inform the conduct of all our professionals, Caja Madrid
risk teams have a number of tools to fill out their knowledge of clients and the market. In particular:

   Internal risk models: rating and scoring tools that are currently being validated to NBCA
   specifications. The use of rating systems for risk management was consolidated in 2005 and is
   used for 100% of the activities covered by scoring tools (mortgages, consumer loans, cards,
   independent contractors, stores and micro-businesses) and for 98% of those covered by rating
   tools (public institutions, large companies, SMEs, developers, financial institutions and special

   VaR models for market risk, adapted to Bank of Spain requirements.

   As a supplement to these models, stress-testing and scenario-driven tools have been developed
   for the most important Caja Madrid portfolios.

  2005          PERFORMANCE

Estimates were fully updated in 2005 for internal model input variables: probability of default, severity
and exposure at default. Finally, the Bank of Spain was sent the mandatory Internal Model Request
Memorandum, approved by the Board of Directors and accompanied by internal and external audit
reports on each model individually.


Caja Madrid has brought CSR factors to bear in its analysis, admission and monitoring of risk

Environmental factors: such that environmental impact becomes a core criterion in lending financial
support. This means verifying companies’ compliance with environmental standards, identifying
possible risks and calibrating their impact on the financial statements, and analysing plans to mitigate
such risks.

Caja Madrid finances projects with a positive environmental impact in sectors like wind power and
waste management.

In general, all project finance packages involving activities or works with a potential environmental
impact are checked by our technical and legal advisors to ensure the project in question complies
with the relevant environmental regulations, that all necessary permits and licences have been granted,
and that works budgets include the cost of clean-up operations as and when required. A favourable
report is a strict precondition for going ahead with the transaction.

Social factors: developing specific analysis tools for loan applications from vulnerable collectives
such as immigrants, young people and the disabled, in order to facilitate their access to Caja Madrid
lending products. One such tool is scoring, which delivers a risk valuation based solely on the
applicant’s credit standing and not his or her social profile.


Caja Madrid is actively involved in schemes to consolidate and publicise best lending practices, to
improve both efficiency standards and the economic and social benefits generated for the broad

  2005          PERFORMANCE

The New Basel Capital Accord (NBCA) provides a new standard for risk management organisation.

Caja Madrid has worked energetically to implement its credit, market and liquidity risk models, and has
now got down to addressing operational risk. Caja Madrid sees the NBCA as the cornerstone of its
risk management and all related administrative practices.

We are also collaborating with CECA and the Bank of Spain in the framework of the Basel Agreement.

  2005           PERFORMANCE

The technological development underpinning today’s global competitive landscape has ushered in new
business models based on vastly increased informational capacities. This, in turn, puts greater legal
and ethical demands on institutions regarding the safe custody of business, customer and staff

Caja Madrid has reworked its “Informational Integrity Policy and Guidelines” in line with the latest
regulations in this area: the Data Protection Law, Royal Decree 994/1999 regulating security measures
for automated files containing data of a personal nature, the Law of Information Society and e-commerce
services, etc. This policy rests on a series of procedures, access controls and IT data protection tools
that are detailed exhaustively in the Caja Madrid Systems Security Plan.

In today’s competitive, fast-moving finance industry, clients rightly demand a choice of transaction
channels and supports with every assurance of security and confidentiality.

For this reason, Caja Madrid has been working in recent years to expand its technological capabilities
at the service of system and software security, implementing advanced safeguards to ensure the integrity
and confidentiality of all classes of information.

The result was that Caja Madrid in 2005 became the first Spanish financial institution certified to BS7799-
2:2002, accrediting world class standards in the security management of IT systems and platforms.


The TITAN Project is an offshoot of Caja Madrid’s “Informational Integrity Policy and Guidelines”. Its
goal is to minimise informational risk at every stage of the organisation’s business and technological
development, and provide enhanced solutions for the protection of customer, user and system data
based on the best international practices.

TITAN sets out to increase the usability and availability of information security systems by combining
physical with password access barriers. It extends to all Caja Madrid professionals whatever system
they are working from.
  2005          PERFORMANCE

TITAN marks a further step in the process of adding new functionalities to the Caja Madrid employee

   Personal identification

   Physical access to work sites

   Logical access to IT systems

TITAN identifies IT system users by means of digital certificates providing high-security validation.

In 2005, the TITAN project was rolled out to Corporación Financiera Caja Madrid and a pilot office in one
of the Caja Madrid flagship buildings, while the numbers of employees covered rose from 1900 to 2500.

For 2006, the plans are to split employee cards into a financial card, on the one hand, and a physical
and logical access and ID credential on the other. Following on from this split, TITAN will be rolled out
to the staff of branches and corporate centres.

  2005          PERFORMANCE

Caja Madrid has an Internal Audit Unit providing arm’s length
evaluation and consulting capability, the idea being to add
value, efficiency and efficacy to our operating and
management processes and internal control systems. The
Control Committee is responsible for seeing that it performs its
work correctly and appropriately, pursuant to the ethical
commitment enshrined in the Corporate Governance System.

                                                                              Miguel Sáez González
The Unit’s professional team carries out its tasks in                            Media Relations
accordance with the “Code of Ethics”, the “Rules for the
Professional Conduct of Internal Audits” and other guidelines
issued by the Instituto de Auditores Internos.


The scope of the Audit Plan extends to the entire branch network, business and area directorates,
Retail Banking products, Investment Banking products, processes and organisational groupings,
Corporación Financiera and central services. It also covers information systems and environments,
the security of applications and, finally, the measures in place for the protection of personal data. The
conclusions of its work are written up in a yearly report using the Audit Risk Map as guide and checklist.

The Audit Risk Map is the information system for evaluating the risk embedded in the processes,
products and business areas seen as most vulnerable. It serves as a support tool for planning the
audit function and allows reviews to be more finely targeted, to the benefit of internal control efficiency.

Audit guidelines were also developed in the year for advanced credit and market risk models.

  2005          PERFORMANCE

The strict standards of excellence that Caja Madrid guards
in its dealings with customers call for the regular review of
processes and strategies to maximise resource efficiency
and service quality. This commitment to continuous
improvement is supported by various check mechanisms to
ensure that both business support systems and those at the
customer interface are working effectively.

The international quality certificates obtained by Caja Madrid         Ángel Chacón Muñoz
                                                                  Branch 3311 - Moral de Calatrava
provide us with models and benchmarks for the development
and upkeep of our process quality management and
assurance system.

Caja Madrid believes these international standards contribute significantly towards our ongoing
improvement drive and our key management objective: the achievement of excellence.


Caja Madrid systematically carries out internal and external audits on ISO 9001 Quality Management
Systems in the following areas:

   Gesmadrid, S.A., S.G.I.I.C.: Design, management and administration of mutual funds.

   Caja Madrid Pensiones, E.G.F.P.: Design, management and administration of pension funds and

   Tasamadrid S.A.: Appraisals, valuations and technical reports on personal and property assets.

   Operations, Corporate Administrative Services, External Payroll Services and Social Security

  2005            PERFORMANCE

   Operations, Securities, Custody Services, securities settlement and administration.
   Internal Audit, Group internal auditing, and the design and development of Internal Audit IT systems.

It bears mention that Internal Audit planning, execution, monitoring and support processes have been
certified by AENOR to the ISO 9001 standard. This puts an external seal of approval on the quality
and value-added of this Unit’s services, while providing a benchmark for the ongoing improvement of
risk control and management systems.

External standards ensure that all processes are run to tight specifications. They also provide efficiency
and efficacy indicators for the measurement of their performance, redounding in a better service for
the client.

Scope of certificates


Caja Madrid was the first company in Spain and only the fourth financial institution worldwide to attain
a level 2 rating under the CMMI-SW/SE model, a worldwide standard marking the path to excellence
in software engineering.

  2005          PERFORMANCE

The plan now is to gear up to level 3 and beyond of the 5 maturity levels making up the CMMI model,
to which end new improvements will be introduced in IT development and maintenance processes.

Hence work continued through 2005 on consolidating level 2 standards from the dual standpoint of
procedural improvement and procedure automation, while in 2006 the focus will shift to the preparatory
work for upgrading to level 3.

The adoption of this working methodology represents a firm bet on best international technology
management practices, while confirming Caja Madrid’s place as a technology leader in the domestic


Caja Madrid was the first Spanish financial institution certified to BS7799-2:2002,
accrediting world class standards in the security management of IT systems and
platforms. This recognition consolidates Caja Madrid’s status as a technology
leader in Spain.

The award was made by the prestigious British Standard Institution (BSI) following an exhaustive
analysis of our Internet banking services for individual and business clients with regard to access,
confidentiality, integrity and availability, and reflects our unwavering concern for the safety and
confidentiality of the data entrusted to our care.

BS7799 tests each applicant for 127 security controls structured under 10 domains, ranging from
security policies and physical and environmental safety through to specific organisational and IT

  2005           PERFORMANCE


In mid 2004 the Caja Madrid Group set up a new Regulatory
Compliance area, following the recommendations of the
Basel Committee on Banking Supervision’s document on the
compliance function in financial institutions.

Its mission is to identify, monitor and advise on any risk of
penalties or damage to the organisation’s reputation caused
by non compliance with laws, regulations, codes of conduct
or good practice standards applying to the finance industry.    Ana María José Gómez Sánchez
                                                                       Media Relations

   As such, its remit comprises:

   Risk identification and evaluation.

   Guidance to organisational groups on managing such risks.

   Design input for policies, rules and procedures.

   Reporting to the Management Committee.

   Assuring compliance with current regulations.

   Staff training.

   Liaison with agencies and institutions.

   Planning and budgeting.

  2005          PERFORMANCE


Money laundering is a criminal offence and its prevention is a key concern for Caja Madrid. The
internal procedures and measures applied throughout the Group take their cue from European Union
legislation and the recommendations of the FATF (Financial Action Task Force on Money Laundering).

The anti-money laundering function comes under the supervision of the Bank of Spain through its
Executive Service of the Commission for the Prevention of Money Laundering and Monetary
Infractions (SEPBLAC in its Spanish initials). Additionally, the Group's procedures in this area are
reviewed on an annual basis by external experts, who propose any changes and improvements they
deem necessary.

SEPBLAC believes the key parameter for evaluating the efficiency of anti-money laundering practice
is the quality of the suspicious transaction notifications sent in by obligated parties.

The notifications made by Caja Madrid in 2005 obtained an average score of 36.35 out of 50 (“good”),
an increase of 1.35 points with respect to 2004.

Laundering prevention policy is handled internally by a designated control unit, while customers can
consult the Anti Money Laundering Manual approved by the Caja Madrid Management Committee.

In order to prepare staff to detect and deal with this problem, laundering awareness courses are now
being taught as part of Annual Training Plans.

Caja Madrid’s laundering prevention armoury is completed by IT monitoring systems which are able
to detect and analyse irregular transactions and, if appropriate, forward them for reporting to the
competent authorities.











2005    CSR AND

INTRODUCTION               54
 DESCRIPTION               56
 SYSTEM REVIEW             58
CSR COMMITMENT             59
NEXT STEPS IN CSR          62
 PROYECT REVIEW 2005       62
 THE NEXT STEPS 2006       65
INDICATORS                 68
 GENERAL                   68

  2005          CSR AND
                CAJA MADRID

Caja Madrid has a long tradition of socially responsible initiatives which go beyond our social action
programmes, and is committed to delivering value to all its stakeholders: employees, clients, suppliers
and society in general.

The fact that local and regional governments, customers, employees and representative entities are
represented on our supreme governing body, the General Assembly, assures us optimum knowledge
of their needs and expectations.

  2005           CSR AND
                 CAJA MADRID

Caja Madrid and Corporate Social Responsibility have gone hand
in hand since our organisation was founded by Father Piquer, with
the mission of helping the least favoured sections of society.

The social balance sheet published in 1980 included the following

“Caja Madrid understands that it is legitimate to call for companies
and our own Institution to exercise social responsibility; on ethical
grounds, and in view of the growing community pressure on the
business sector to contribute to the betterment of our quality of life,
and to seek a common ground between economic and social
                                                                          Luis Enrique Zamarro Méndez
                                                                           Branch 2834 - Parla (Madrid)

Phrases such as this, written over 24 years ago, are embedded in
our corporate culture. Many of the ideas and concepts now being discussed in the framework of
Corporate Social Responsibility are part and parcel of Caja Madrid’s identity, providing a firm
foundation for our Management System.

Our aim is to prolong and build on this tradition, a mainstay of our management, while taking forward
other key values of corporate citizenship: good governance, transparency and strict compliance with
money laundering legislation, the fight against fraud, improving customer care, respect for the
environment, etc.

  2005         CSR AND
               CAJA MADRID


Caja Madrid’s Corporate Social Responsibility Management System comprises a set of principles
and measures relative to CSR. Its objective is to contribute to long term sustainable development by
balancing economic growth, social cohesion and environmental conservation, taking into account the
expectations of stakeholders, i.e. those persons or groups who may be impacted by the Organisation’s
activities and achievements.

  2005          CSR AND
                CAJA MADRID

The following points are central to our pursuit of this objective:

   Corporate social responsibility is inherent to Caja Madrid as a private non profit organisation with
   a social purpose. Its management system is thus socially responsible with the Administration
   confining itself to oversight functions.

   The extreme importance for our organisation of having different stakeholders represented on its
   Governing Bodies. Current legal provisions on the governing bodies of savings banks in the Madrid
   Region, and the Caja Madrid bylaws, state that the General Assembly shall comprise
   representatives of the different social and collective interests with which the institution engages, that
   is to say town councils, depositors, the Royal Board of Trustees as our founding entity, employees,
   the Madrid parliament and other prominent interest groups.

   The Corporate Social Responsibility System has been updated in line with the main regulatory or
   advisory benchmarks now in place, among them the Global Compact, the Global Reporting Initiative
   (GRI), ISO 14,001, EFQM, the Aldama and Olivencia Codes, ISO 9000, OSHAS 18000, etc.

   The System is permanently sensitive to the needs expressed by stakeholders through the available
   dialogue channels. Resulting actions span such diverse areas as the reconciliation of family and
   work life, environmental management, welfare and educational projects, etc.


The development of this System is based on a series of principles which inform all activities and

   Globality, such that scope of the System extends to all stakeholders.

   Transparency is a core principle of the System, entailing disclosure to third parties of environmental,
   social and financial information according to GRI guidelines.

   Leadership, understood as the benchmark status that Caja Madrid aspires to in financial sector
   CSR as both a promoter and prescriber.

  2005         CSR AND
               CAJA MADRID

   Impartiality, ensured by mechanisms and procedures for objective decision making and by the
   total independence of members of Governing Bodies with respect to the organisations or groups
   appointing them.


The changing environment and the dynamics of dialogue mean stakeholders’ needs can never be seen
as fixed, and the System must be kept open ended. Our policy of ongoing review keeps it constantly
attuned to new and emerging priorities.

The System is also subjected to global checks using the social responsibility assessment tool of the
EFQM Model, our management benchmark, and regularly updated in line with new CSR regulations or

  2005           CSR AND
                 CAJA MADRID

The importance Caja Madrid attaches to social responsibility means this concept is included in its
Mission, Vision and Values. In addition to these three statements expressing the organisation’s policies
at the highest level, an explicit commitment has been drafted, with wording as follows:

Caja Madrid is an organisation engaged with society, concerned and committed to doing everything
in its power to guarantee a better quality of life for future generations. This responsibility translates as
a constant quest for improvement at the service of our people, the environment and the regions where
we operate, that seeks to maximise their potential while making us a more competitive operator.

All CSR activities are integrated into the day-to-day management of our organisation, which has been
in existence for over 300 years.

   With our customers, so they get the best service every time and receive considered professional
   advice about the products best suited to their needs, based on an ongoing process of dialogue.

   With our professionals, so they enjoy the best working and personal conditions informed by a spirit
   of transparency and open communication.

   With our suppliers, so as to forge relations built on trust and mutual benefit, and foster equal
   opportunities and a commitment to social responsibility.

   With the environment, promoting optimum consumption of resources, and developing recycling
   and reusage systems.

   With society, contributing to social and economic development and promoting wealth creation in
   the geographical areas where we operate.

Our goal is to be a benchmark financial entity in the area of CSR, promoting and developing programmes which
                               exceed the expectations of all our stakeholders.

  2005         CSR AND
               CAJA MADRID

Having made this commitment, the next step is to establish channels of dialogue with stakeholders;
a dialogue which should in all instances be open, two-way,
sincere, and conducted through established and publicised

The CSR Management System envisages two kinds of
channel for this two-way communication: those which
identify stakeholders’ needs and those which are used to
inform stakeholders of the actions taken in response.

IDENTIFICATION OF NEEDS                                                Ignacio García Luna

  2005         CSR AND
               CAJA MADRID

                Stakeholder                     Needs Identification Channel


The second part of the two-way communication process is to inform Caja Madrid stakeholders about
the steps taken to address and meet their needs. Internally, various delivery channels are already in
place, aimed mainly at our professionals (intranet, newsletters 30 segundos and La Caja Informa,
the La Caja magazine, etc.). Externally, the main communication channels are branches, Internet
portals, periodic reports, the Entorno magazine, conferences, sundry publications and news items in
the media.
  2005         CSR AND
               CAJA MADRID

The importance of CSR in the Caja Madrid Group’s strategy
has earned the CSR Management System a place within its
Integrated Management Model. But our pledge to stay ahead
in CSR also calls for a dynamic approach to system
management, including the regular review and updating of
all component projects.

Hence the CSR diagnostic tests conducted in 2005, to check
on progress vis-à-vis the “next steps” set in 2004 and                 David Vicente Puente
propose new lines of action for 2006 relative to each
stakeholder group.



  Development of special home purchase financing packages for groups with lower purchasing power.

  Incorporating environmental impact studies into lending decisions.

 2005         CSR AND
              CAJA MADRID

  Funding of infrastructure projects developed by government authorities, in partnership with the
  European Investment Bank.


  Preparation of a CSR sensitisation plan.


  Design of a measurement tool for the social return of Obra Social projects.

 2005          CSR AND
               CAJA MADRID


  Addition of new sustainability criteria to supplier selection and certification checklists


  Optimisation of environmental management.

  2005          CSR AND
                CAJA MADRID


Thanks to system review mechanisms at both the global and operating level, Caja Madrid has plotted
the following lines of action for 2006. They represent the “next steps” in our commitment to broad social
improvement and the integration of social and environmental concerns in our day-to-day management

  2005           CSR AND
                 CAJA MADRID

Caja Madrid’s CSR commitment is consistent with a number of external initiatives aimed at satisfying
all our stakeholders. Alliances with other organisations are a way to promote and benchmark our Social
Management System and at the same reinforce our institutional presence.

   Global Reporting Initiative (GRI). This Corporate Social Responsibility Report has been prepared
   in accordance with GRI guidelines, an internationally recognised reference for measuring and
   presenting companies’ socially responsible activities. Our first CSR Report, for the year 2004, was
   certified “in accordance” with these guidelines, the maximum category for sustainability reporting.
   It was also the first report to be externally verified in its first year of publication, with reporting of
   95% of core GRI indicators.

   Club Excelencia en Gestión. This organisation, to which Caja Madrid has belonged since 1998,
   champions the implementation of the EFQM model among Spanish companies and institutions.
   The rollout of Project 2006 and our take-up of EFQM recommendations have set our two
   organisations working closely together, producing value-enhancing synergies for our customers.

   Corporación Interamericana para la Financiación de Infraestructuras (CIFI). Caja Madrid was
   one of the signatories in San José, Costa Rica to the creation of the CIFI, a new international financial
   institution created with other multilateral organisations. This new body will specialise in the funding
   of medium sized infrastructure projects in Latin America, where demand significantly outstrips existing
   funding capacity.

The creation of CIFI is a groundbreaking move within the financial world as it is the first mixed body in
which multilateral public sector institutions and private banks participate together in the funding of
infrastructure projects. It is also the first time that international banks have tried to introduce the “social
dividend” concept in Latin America and the Caribbean. In other words, part of the earnings obtained will
be invested in social projects in the region through a specific development fund.

   CECA. Caja Madrid belongs to Spanish savings bank association CECA (Confederación Española
   de Cajas de Ahorros) and takes an active part in all its debates and benchmarking exercises. In the

2005         CSR AND
             CAJA MADRID

CSR sphere, our organisation heads a working group promoted by CECA, as a GRI Organisational
Stakeholder, to review the indicators in its Financial Supplement. Also our “in accordance” status
means we are collaborating directly with GRI in the preparation of its G3 guidelines.

Madrid Excelente. Caja Madrid has held the Madrid Excelente seal since the system started in
2001, renewing for one more year in 2004. This scheme was launched by the Madrid Government
to instil a culture of quality among firms operating in the region. Its seal of quality accordingly goes
to companies staking on continuous improvement and innovation, the satisfaction of their staff and
customers and the social and economic development of the Madrid Region. Its members also
participate in business and training networks and encounters, seminars, etc.

2005 CSR AND




2005        CAJA MADRID

 INTRODUCTION                             72

   PRINCIPLES                             73

   EXTERNAL AWARDS                        74
   INTERNSHIPS                            76
 TRAINING                                 77

   TRAININGS CHANNELS                     77
   KEY TRAINING PROJECTS                  79
 WAGES AND BENEFITS                       83

   WAGES                                  83
   SOCIAL BENEFITS                        84
   MATERNITY LEAVE COVERAGE               86
   NURSING LEAVE                          87
   INTERNET AT HOME                       87
   WORKING CLOSE TO HOME                  87

  NO SCHOOL DAYS                          87
   CHRISTMAS COMPETITION                  88
 HEALTH AND SAFETY                        90

 RESPONDING TO NEEDS                      92

2005       CAJA MADRID


  UPWARD REPORTING             99
   Introduction                99
   Online climate survey       99
   Internal client survey      101
   Upward Evaluation           102
   Improvement Ideas           104
WORKING FOR SOCIETY            106
INDICATORS                     107
  GENERAL                      107
  EQUAL OPPORTUNITY            107


  RECRUITMENT                  110

  TRAINING                     110

  WAGES AND BENEFITS           111

  PREVENTION                   111


  2005          CAJA MADRID

Caja Madrid knows that its professional teams are its main nexus
with stakeholder groups and that we could not hope to achieve our
goals without their support and dedication.

Caja Madrid runs an Integrated People Management Model whose
purpose is to foster the maximum development of the 12,731
professionals on our staff and promote their ownership of our
corporate goals. It is made up of a set of integrated and mutually
supporting systems that strive towards the full alignment of Human
Resources policies (selection, training, evaluation, promotion,
development and compensation) with the Caja Madrid strategic
project, and the upkeep of a stable, supportive internal environment
that allows people to give the best of themselves.

                                                                       Eduardo Páez Aguado
                                                                         Industry Team 2

 2005         CAJA MADRID



 People and their core knowledge and competencies as the heart of the system.

 Employability and the willingness to learn as guiding principles.

 The full integration of Human Resources policies as a key success driver.

  2005          CAJA MADRID


Caja Madrid’s Integrated People Management System has won it a number of awards and
commendations, confirming the success of a model which recognises and rewards individual and
team efforts without distinction of sex, seniority or other factors.

These awards distinguish our organisation as a leader and first mover in the rollout of advanced
people management and development policies and systems.

The CAJA MADRID GROUP has received a number of awards and distinctions in 2005 for its policies
and programmes in the human resources fields. Among them:

   Expansión y Empleo Award for Innovation in Human Resource Management, for the Situational
   Training Project.

   Named the financial institution where Spanish university students would most like to start their
   professional lives in the survey conducted by the Fundación Know How. The seventh consecutive
   year that Caja Madrid has received this distinction.

Caja Madrid also conserved the Empresa Óptima label awarded in 2003, an official distinction singling
it out as an “Equal Opportunities Partner”. Women currently make up 43.4% of our staff and occupy
44.5% of assistant branch manager posts. Also, five of every ten new recruits are female, with 98.5%
of them employed under indefinite contracts.

  2005          CAJA MADRID

Staff selection is another critical process within the people management system. Its objective in every
case is to find candidates fitting the profile assigned to the post under the Caja Madrid Competencies

The Group runs three kinds of selection process:

   Internal selection, approaching professionals who meet the target profile.

   Specific selection, each time a vacancy comes up that cannot be covered out of internal human

   Ongoing selection, not to cover any actual vacancies but so we can constantly replenish our
   candidate file for future branch positions.

The Caja Madrid staff selection process is among the most advanced in its class. Selection tests are
based on a defined set of core and non core competencies, as well as other aptitudinal and attitudinal
variables related to the job in question. Observed behaviour, interests and values (measured by group
dynamics, personal interview, etc.) are also taken into account as predictive factors for candidates’
future performance.

Evaluation tools and procedures are guaranteed fully compliant with labour legislation regarding equal
opportunities, non discrimination, etc.

National legislation for the defence of human rights at work – prohibition of child labour and forced or
compulsory labour – is scrupulously adhered to.

  2005          CAJA MADRID


The goal of the Caja Madrid Group Internship Programme is to build closer ties between the business
and academic worlds. Interns are given the opportunity to gain business experience through
participation in projects adapted to their academic interests, to develop their professional competencies
and, ultimately, to improve their employability.

Agreements were signed in 2005 with 24 universities and business schools and six occupational
training centres, allowing 114 students to complete an internship period in Caja Madrid business units.

  2005           CAJA MADRID

The goal of training is "to further the development and learning
acquisition of all the persons in Caja Madrid, designing and
implementing training actions aimed ultimately at securing the
objectives of the Group's strategic plan and tactical planning and
helping individuals perform their jobs to their fullest ability”.

To this end, all Group staff have been assigned an Individual        María del Pilar San Felipe Izquierdo
Training Plan setting out training actions of diverse types:               Branch 2231 - Madrid

   Those associated with the Group’s Tactical and Strategic Planning (commercial management of
   SME clients, Euroadvisor training and money laundering prevention, among others).

   Those arising from the Annual Evaluation of Skills and Competencies (online courses on financial
   products and ad hoc skills building,…).

   Those requested by business and services units through the interview rounds conducted with
   Group senior managers.

In Retail Banking, a series of 2005 courses were programmed on demand from users of the virtual
classroom, whose request service allows employees to go hands-on in the design and monitoring of
their Individual Training Plan.


Training actions mix and match methodological approaches and learning environments (face-to-face,
e-learning, combined and situational).

An increasingly important instruction medium as regards both contents and delivery is the virtual
classroom, which in 2005 recorded an average of 36,827 page visits per day.

  2005          CAJA MADRID

The virtual classroom allows users to do the following things:

   Request training actions out of a catalogue.

   Take the courses proposed in their Individual Training Plans and keep track of progress.

   Consult the training catalogue for the contents and documentation of the courses on offer.

   Consult their Individual Training Plans, in order to:

   - Check courses scheduled for the current year.

   - Review training completed in previous years.

   - Complete course satisfaction questionnaires.

   - Print out attendance diplomas.

   - Confirm course applications.

   - Follow up progress in online training actions.

   - In the case of team leaders, run progress checks on the training of team members.

Situational Training centres are another important delivery channel. These centres house an exact
replica of a Caja Madrid branch with actors pretending to be customers, so trainees get “live” practice
in the business situations seen as most central to the organisation’s commercial strategy.

  2005          CAJA MADRID



The FoCo training for sales programme:
The FoCo programme was started up in October 2004 to provide support at the sales interface. Its
contents are geared to the development of more efficient commercial practices in customer
management. Online instruction based on the latest technology is combined with face-to-face training

Personal Banking:
A series of training actions were specially designed to accompany the rollout of the Personal Banking

   Financial Knowledge for Customer Planning.

   FoCo in Personal Banking.

   Introduction to Personal Banking Guidance.

   Personal Advisor Style.

   Personal Banking – International Funds.

   FoCo in Personal Banking – Optimisation Interview.

Training plan for the companies segment:
Mindful of the priority assigned to the companies segment in Tactical Planning and with the help of the
Retail Banking Unit, a specific training plan has been developed for branch and corporate centre
managers. The 2005 course was given in its entirety at the Caja Madrid Training Centre in Buitrago
de Lozoya.

  2005          CAJA MADRID

On demand training for Area Directorates:
A set of training actions were developed in tandem with Area Directorates as part of the organisation’s
policy of providing needs-based training adapted to the changing demands of the business
environment. Course contents were thus guaranteed relevant and correctly targeted for the staff in
each zone. Among the actions designed in 2005 were “Company and individual developers”,
“Commercial management via the telephone channel”, “Capture and distribution of managed funds”
and “Tax treatment of financial products”.


Advanced programme in asset management:
This programme, begun in 2004, came to a successful conclusion in 2005, with the 40 participants
from Altae Banco Privado gaining the official title of European Financial Advisor awarded by the
European Financial Planning Association (EFPA). The aim of this training action was to equip staff
theoretically and practically to address the present and future requirements of private banking
customers and improve their quality of service. A new edition of the programme got underway in
November 2005.

The CADE Development Quality Programme:
This training programme has so far been given to 100 Group professionals. The idea is to implement
a quality and design standard for the software and system development processes led by Systems

ROBC (Operational Redesign for Corporate Banking):
To train staff in the use of the new ROBC application for opening, processing, managing and monitoring
a range of customer finance transactions.

New Cash Accounting Base:
A training programme devised for professionals from the Retail Banking, Investment Banking, Financial
Directorate and Audit units to familiarise them with the information generated by the New Cash
Accounting Base on each client, product, channel, segment and centre. Participants are informed
about the changes brought by the new system, and taught how to navigate the reports it generates
using the SIG system.

  2005             CAJA MADRID

IFRS (International Financial Reporting Standards):
A series of training actions were scheduled as part of the Conversion Process designed by the Caja
Madrid Group for the entry to force of the new IFRS.

Since the effects of the new framework radiate out to numerous areas of the Group’s activity, not all
of them dealing directly with accounts, the contents of courses were tailored to the specific needs of
each collective.


The resources we invest in training our professionals can only truly
earn returns, if what is learned and practised in the classroom
environment is subsequently applied in each person’s place of work.

The Caja Madrid Group uses the following techniques to ensure that
this is so:

   Forming homogeneous groups of course participants, with team             María Isabel Cedrón Feliz
                                                                            Branch 4000 - A Coruña
   leaders providing selection input.

   Checking the training materials to be used with the managers of business areas to ensure they
   are relevant and practical.

   Running pilot courses to check that course contents are correctly pitched.

   Recruiting a growing number of Group professionals to act as Internal Trainers who can observe
   if what they have taught is being applied in situ. The Training Service currently has over 90 persons
   working with it in this capacity.

  2005          CAJA MADRID

For Caja Madrid, “professional development” is a combination of
guided learning and objective assessment that enables each
individual to progress to their fullest potential within the

An advanced system of Professional Development and Promotion
(PDP) ensures that all staff have access to the same promotion
                                                                           Ignacio Domínguez Ortega
opportunities, while seeking to instil the conducts and practices       Management and Rationalisation of
                                                                              Cost and Investments
identified as success drivers for each function.

The factors identified as key in people development have to do with:

   The success skills for a given job and for maximising performance.

   The specific management styles associated to a person’s current job or the post for which they
   are being readied.

   Corporate culture and work climate.

A series of parallel programmes focus on spotting and developing talent within the organisation and
on building up functional and geographical mobility. The aim in both cases is to maximise
organisational efficiency while giving our people a wider choice in managing their professional careers.

  2005           CAJA MADRID

Caja Madrid offers its professionals interesting salary supplements
over and above the conditions set in the corresponding Collective
Agreements. These are by definition across-the-board, so admit no
differentiation or discrimination beyond those relating to individual
performance or the functions of a particular post, i.e. none
whatsoever for reason of sex, race, age, etc.
                                                                             Pedro Sánchez Ramírez
                                                                              Branch 5512 - Toledo

Caja Madrid has a range of instruments covering every kind of payment modality, including cash
remuneration, deferred payments, payments in kind; short- and long-term; fixed or performance-

Fixed salary: in addition to the conditions set in the Collective Agreement, Caja Madrid applies a
number of internal improvements that make for a clear, simple payment structure. Payroll slips
feature fewer items for easier comprehension, and are set out so everyone can calculate their
annual salary.

Performance-related salary: in the short term, all Caja Madrid professionals come under a Results
Evaluation System which objectively quantifies the global results of the organisation, individual or
team compliance with their respective objectives, and the professional competencies attained. Staff
can thus refer to a known set of publicised variables to calculate the performance-related component
of their annual pay.

In the longer term, staff get a special bonus for meeting the goals of a given strategic project. This is
the case with Project 2006, the idea being that all staff will share in its achievement and should see
their efforts and contributions duly rewarded.

  2005           CAJA MADRID

Payment in kind and deferred payment: all Caja Madrid professionals enjoy broad insurance
coverage, special loan application facilities, external pension fund contributions, etc. as part of a
far-reaching benefit package that goes far beyond the standard remuneration and, of course, the
minimum thresholds of the Collective Agreement.


   Life insurance.

   Healthcare policy: free for staff and subsidised for their family members

   Accident insurance for travel on business and to and from work.

   Christmas box.

   Activities for staff and their families (during school holidays, childcare subsidies…).

   Enhanced loan conditions: for the purchase of a first home: terms, rates, guarantees, instalments, etc.

   Special facilities for other loans, whatever the motive: low interest on personal loans or interest-free
   salary advances.

   Fixed wages guaranteed 100% in the event of absences due to temporary disablement.

   Contributions to an external supplementary pension scheme on a quarterly basis according to
   fixed and performance-related salary payments.

   Permanent disability and death coverage offering greatly enhanced benefits, to give staff and their
   families peace of mind.

   Help with the education of staff’s children, with special conditions for the under threes and children
   suffering disabilities.

2005        CAJA MADRID

Exceptional payments for serious health problems not covered by standard healthcare channels.

Employee training subsidies.

No commission charges on everyday transactions.

Loyalty awards after 25 and 40 years of service.

  2005          CAJA MADRID

Caja Madrid is convinced of the value of flexible working and of
providing a family-supportive structure. Its efforts to help staff
develop their full potential and reconcile their home and
professional lives have been used as a benchmark by the Madrid
Regional Government in the publication “Best Practice Guide
for the Flexible, Sustainable Company".

                                                                             Alberto Ortega Martín
All professionals qualify for reconciliation measures, although in   Sponsorship, Advertising and Corporate
some cases it is primarily female staff who take them up.                            Image

Diversity-sensitive policies and those favouring equal opportunity are particularly prized within our
organisation’s continuing tradition of creating stable, quality employment.


Caja Madrid has systematically covered all the posts of women on maternity leave since 1999, to
facilitate their full integration and development within the company and so such absences are never
conceived of as a “problem”.

Planning is obviously of the essence, and the process followed stands out for the quality of the
replacement pool, strict compliance with the agreed coverage terms, and the opportunity it offers of
finding direct employment with Caja Madrid. It also favours women’s entry to the labour market, as
evidenced by the fact that of the 159 persons covering posts in 2005 58% were female.

Over 270 maternity leaves were covered in 2005, contributing to the advancement of women's
professional careers with the Caja Madrid Group.

  2005           CAJA MADRID


Caja Madrid has gone beyond what the law prescribes by giving all employees the option of
substituting the time off or short-time working allowed for nursing infants by a leave period of 10
calendar days to be taken after maternity leave, plus an additional five working days which they can
take at any time in the 12 months from giving birth.

As many as 90% of recent parents have so far taken up this alternative.


Information technologies though the “Internet at Home” project. Launched in 2001, this project has
encouraged staff and their families to make use of the Internet by subsidising and financing the
purchase of latest-generation equipment and the installation of broadband access.

The result is that over 9,500 families have become Internet users, making us the first institution in
Spain to genuinely bring all its employees within a shared network accessed from their own homes.


It is Caja Madrid’s general policy to get people working close to home, especially in large cities where
travelling time can interfere with work-family reconciliation. Although the idea applies to all professionals,
priority goes to women with children under the age of six as the collective standing most to benefit. More
than 800 people have made use of this facility in the past three years.


Long school holidays (Christmas, Easter, summer) and days without classes can often cause childcare
headaches for working parents.

Caja Madrid tries to help with this problem by programming educational, cultural and leisure activities
during school holiday periods, which it also subsidises to a considerable degree.

  2005           CAJA MADRID

The programme includes urban and residential camps in all parts of Spain during the summer,
Christmas and Easter holidays with space for children aged from 3 to 18. Another initiative is the “No
school” days scheme launched in 2003: five days throughout the year, usually a Friday or a Monday,
when children can take part in organised (and subsidised) activities under expert supervision.

Over 1,400 children in 32 centres enrolled for these activities in 2005, an increase of 20% versus the
previous year. Satisfaction with activities was a high 95%, and most users repeat each year.


Another popular activity within the organisation is the annual “Christmas Competition” for staff’s
children. A parallel exhibition is organised of the drawings submitted, and a catalogue published with
a copy sent to all entrants. The event has attracted more and more interest each year, from the 815
drawings received in its inaugural edition to the 2,295 received in 2005. Around these same dates, the
children of Caja Madrid staff are invited to a Special Christmas Concert at the National Auditorium
where they can enjoy classical music pieces performed especially for the younger public.


A pool of replacement staff are on call to cover emergency or short-term absences in the Madrid
branch network. The objectives of this project are:

   Provide coverage to the greatest possible number of branches.

   Mitigate any negative impact of day-to-day incidents in the branch network.

   Assure flexible coverage by duration and area.

The kinds of leave covered by the service are:

   Sick leave.

   Leave for serious illness in the family.

 2005          CAJA MADRID

  Leave for death in the family.

  Marriage leave.

  Birth/nursing leave.

  Trade union facility time.

A total of 30,827 such coverages were completed in 2005.

  2005          CAJA MADRID

Caja Madrid operates a Prevention System for health and safety matters, in view of their key
importance in Human Resources management:

   First, to ensure that our professionals’ health and safety conditions comply in all respects with
   current legislation on the Prevention of Occupational Hazards.

   Second, because this compliance has a direct effect on customers and suppliers.

Staff participation is one of the main planks of the System. The National Health and Safety Committee
has 13 members representing the company and another 13 representing staff, while the 28 Local
Prevention Officers to whom it delegates powers are appointed by workers’ representatives.

A prevention plan is drawn up annually which is put to the National Health and Safety Committee for
comment and approval, and checked for full compliance with prevailing legislation. This plan contains
timetabled actions and procedures to be followed in the year to ensure the health and safety of all
professionals working at Caja Madrid.


The Preventive Occupational Healthcare System uses different means to assess the health status of
each professional. This enables epidemiological studies to be carried out, while facilitating the design
of specific actions to preserve and improve employees’ health.

Medical check appointment system: appointments for medical check-ups are made through the
e-personas portal, so staff can choose the date and time most convenient for them from their
workstation or home computer.

Protocol for medical checks: a protocol has been drawn up for medical checks to detect the
consequences of possible occupational hazards. This means checks are geared to the circumstances
of each professional, as well as being considerably more thorough than those prescribed by
government health and safety agencies.
  2005          CAJA MADRID

Prevention awareness: the e-personas portal provides regular information on health-related matters
like vaccination and blood donor campaigns as well as publishing medical and lifestyle news and
occasional in-depth articles. The use of this medium also furthers the cause of our zero paper policy.

Specific campaigns: aimed at getting staff to develop good preventive habits with regard to the
most prevalent health problems.

Actions undertaken in 2005 were: help with giving up smoking (at professionals’ request), anti-flu
vaccination, anti-tetanus vaccination, blood donation and health education.


Both starting point and regular reference point of the Occupational Hazards Prevention System. Each
work centre is evaluated with checklists developed for all posts and working conditions using a specific
in-house methodology.

Every year checks are run on a selection of centres to ascertain whether the hazards detected are
being correctly controlled, and whether any new hazards have emerged as a result of modifications
to centres, equipment, workflow or workstation conditions.

Records are also kept of any incidents of accidents at work or occupational diseases.
All such incidents are fully investigated to identify their causes and take the necessary action to
prevent recurrence.

The protocol in use can be summed up as follows: interview with the person suffering the accident;
review of the occupational hazards assessment for the premises in question; decision as to its causes
based on a survey sheet completed by the victim, and implementation of the necessary corrective
measures if the accident was the result of inadequate working conditions.




  2005          CAJA MADRID

Caja Madrid adheres in every respect to national legislation upholding total freedom of association as
regards employee trade union membership, the right to form a trade union section, and the right to act
as a workers’ representative.

This freedom of association also means equality of treatment and opportunity, in that no professional
may be discriminated against for being a trade union member or representative. In fact, at Caja Madrid,
when a workers’ representative gets to 100% facility time for trade union duties, he or she enjoys
exactly the same conditions as when occupying his or her post (training, professional development,
performance-related pay, etc.).

Furthermore, an open, transparent dialogue is maintained with workers’ representatives, based on a
mutual commitment to and shared responsibility for seeking the betterment of staff working and social
conditions. As part of this dialogue, the company holds monthly meetings with each trade union

Proof of this engagement are the 63 Enterprise-Level Agreements signed between 1996 and 2005,
and stipulating working conditions that improve on the terms of the industry-wide Collective Agreement.
These include the Professional Promotion and Development programme, the Results Evaluation
System, supplementary pension schemes, individualised working hours per centre, enhanced financial
support, etc.

Caja Madrid also stands out for inviting worker representatives’ involvement in labour-related matters:

   Prior assessment of the climate survey questionnaire.

   Results of climate surveys.

   General and specific training.

   Annual results of the Results Evaluation System.

  2005          CAJA MADRID

   Annual results of the Professional Development and Promotion programme.

   The Health & Safety Committee.

   Monitoring of Enterprise-Level Collective Agreements.

   Prior assessment of the Upward Evaluation process.


Six trade unions have organised sections in Caja Madrid. They are: Comisiones Obreras (CCOO);
Unión General de Trabajadores (UGT); Asociación de Cuadros de Caja Madrid (ACCAM); Alternativa
Sindical (AS); Sindicat Autònom de Banca i Essltavi de les Illes Balears (SABEI –CGT) and the
Confederación de Sindicatos Independientes de Cajas de Ahorro (CSICA), representing all of the
organisation’s staff.

The last trade union elections were held in 2002, with a 73.26% turn-out and results as follows:

  2005           CAJA MADRID

Caja Madrid’s policy of informational transparency is an engagement with direct, personal
communication throughout the organisation, which flows in every direction, i.e. it is by no means the
exclusive domain of certain positions or hierarchical levels.

The broad range of channels it deploys to this end, both from the top down and from the bottom up,
ensure that staff needs can be identified and addressed in a rapid and effective manner.


Intranet: an information channel that picks up all the communications sent through other routes. All
professionals have free access to its contents, which include a global and personalised service offering
and tools that can help staff in their daily activities.

  2005           CAJA MADRID

La Caja Informa: an occasional newsletter for all staff, whose aim is to inform them immediately of
any events with a bearing on the organisation. An electronic version was developed in 2004, for
distribution via e-mail and posting on the intranet.

La Caja magazine: a bimonthly magazine aimed at all Caja Madrid people , with news on the
organisation, special features on branches or departments, staff interviews, updates on Obra Social,
Fundación and Corporación, etc.

The 30-second newssheet: e-mailed to all Caja Madrid persons, with news on the main internal
events of the past few days. Normally weekly, though extra editions may be brought out to inform staff
rapidly of any special developments. Comes with links to the intranet for more in-depth coverage.

Entorno magazine: a quarterly current affairs magazine for Caja Madrid people (active and retired
employees and Governing Bodies) and customers. Also circulated to CajaSalud practitioners and
opinion leaders.

Circulars: official corporate communications of no fixed frequency, dealing with regulatory novelties,
changes in the Caja Madrid organisational structure or new product launches.

Intranet news: real-time news on Caja Madrid activities, forthcoming events, press dossiers,
press releases, information on advertising campaigns and sponsored events, Caja Madrid periodic
reports, etc..

Al Día: a news round-up published in real time on the intranet, and sent daily by e-mail to Management
Committee members..

Press Dossier: a dossier is compiled daily containing all media items on Caja Madrid and a round-up
of the main national and international financial news. Posted on the intranet first thing in the morning
and distributed on hard copy to the Management Committee.

Línea Personas:special telephone help line that provides a direct link between Caja Madrid and its
professionals for dealing with any matters not requiring a personal interview. Línea Personas is a
confidential, personal, direct and 24-hour service with a fast response time and delivery time, and handling
around 53,000 enquiries a year.

  2005          CAJA MADRID

e-personas: the e-personas portal came into being along with the “Internet at Home” project, to
facilitate staff access to the internet. It seeks a more personal staff/organisation interface supported
on two differentiated environments:

   Family environment: for all members of the family unit, so the IT and internet worlds become part
   of their home life.

   Professional environment: aimed at the Caja Madrid professional and accessible from both
   workstations and home computers, with three component channels:

   - Self-service: for day-to-day human resources matters.

   - Virtual Classroom: offering a wide catalogue of courses available through the e-personas channel.

   - Dial: informative content on discounts, reporting channels and human resources matters not
     requiring a personal interview.

Personalised communications to Business Directorates: coinciding with a press call or some
high-profile event involving a Caja Madrid Business Directorate. Information goes out to all the teams
within the Directorate via an e-mail to their work centres. These personalised messages contain an
attachment with the details that will later be given to the press.

A few days later, the same teams are sent a press dossier with all the items appearing in the media.

Briefing meetings: each Unit schedules regular briefing meetings for different levels so the most
relevant information gets discussed at each.

  2005          CAJA MADRID



Caja Madrid wants to hear the ideas and opinions of all the people
within our organisation, whatever their place in the hierarchy,
convinced that those best able to identify improvement
opportunities are those working on the ground.

To this end, it has established a number of channels to sound the
climate within the organisation and to get staff to express their
                                                                     Rita Cazón Hernández
creative side. The results can then be fed into decision-making       Asset Finance Team


The Caja Madrid Group is among the few
Spanish financial institutions that regularly
carry out climate surveys. The fourth such
survey was run at end 2004, in the framework
of Project 2006, with the involvement of some
6,000 professionals, over 2,000 more than in
the previous round.

The results of the study, which were published
internally in the opening months of 2005,
showed improvement across all the factors
evaluated: working team, remuneration
system, post, team leader, promotion, sense
of belonging, training, working conditions and
communication. New factors were also offered
for assessment, namely the reconciliation of
work and personal life and the Caja Madrid
Group business project.

  2005          CAJA MADRID

The Basic Climate Indicator, taken as the average
score given for main survey factors, improved to
6.10 (on a scale from 1 to 10), representing an
0.67 pp advance with respect to the previous
edition and the highest score to date obtained by
our Group. This result was strongly supported by
four rating parameters: namely, belonging to the
Caja Madrid Group, work team, team leader and
post, which received the highest scores from
survey respondents.

Likewise global satisfaction scores rose
to 7.68 (on a scale from 1 to 10) in what
was also the best result achieved to
date. Over 81% of professionals
declared themselves happy or very
happy to work for and belong to the Caja
Madrid Group.

The following are some of the other major findings of the survey:

Perceptions of the management
performance of the Caja Madrid
Group also lean very much to the
positive side. Management is felt
to be efficient and improving,
money is being spent on new
technologies, and the Caja Madrid
Group is seen as an organisation
committed to a social, welfare and
cultural agenda.

  2005           CAJA MADRID

The Group is defined, in the view of its
professionals, by its solvency, solidity,
reliability and approachability, offering a
positive image all round.

Results orientation, service quality,
customer     care    and     responsible
conduct are attitudes and practices
clearly interiorised among the Group’s
professional teams.

Staff identify strongly with the corporate project, as expressed in their pride of belonging and their
engagement with the Group’s success. Their trust in the organisation is evidenced by a strong advance
in feelings of affinity and the desire to continue forming part of it throughout their professional career.


Caja Madrid’s orientation to the customer extends to measuring the quality of the internal services
provided, primarily, to the branch network.

The main projects undertaken are:

   Central Services Quality Soundings: Since 2001, Caja Madrid has taken soundings of branches’
   satisfaction with critical internal services as part of the “Central Services Quality Commitment”.

   Questionnaires have been sent out to over 13,000 Group staff to gauge their degree of satisfaction
   with the 36 internal services most crucial to branch activity. Two interdepartmental services have
   lately been added to the list, and plans are to expand it further in 2006.

   In keeping with Caja Madrid’s commitment to service quality, with internal as well as external
   customers, all the services analysed in 2005 number internal client perceptions among their
   improvement indicators.

  2005            CAJA MADRID

   Advice and Communication: Caja Madrid Group branches are also asked to rate the service
   they get from their next-up management centre (communication from Area Directorates and advice
   from Business Directorates), with results showing a steady progression over recent years.

   The Group’s Línea Personas staff help line is also rated by its users on an annual basis.

   Private Banking: Altae Banco has also been brought under scrutiny from a dual internal client

   -   The support it gives to traditional Caja Madrid branches in the management of shared

   -   And, for the first time in 2005, the six main central services that it provides to its sales staff.
       The results of these measurements are fed into the objectives of each organisational grouping
       as their turn comes round.

Also, the mechanisms used to gauge expectations regarding specific internal or external systems,
relational channels or stakeholder groups are reviewed at regular intervals.

The improvement plans drawn up on the basis of the above surveys also increase the quality reaching
final customers.


Upward evaluation, begun in 2000, entails senior Caja Madrid managers being appraised by their
teams as a supplement to existing evaluation systems. A sample of team members rate their
manager’s performance with reference to three basic functional variables; management style, the
working atmosphere within the team and individual skills. The process is rounded off by the manager’s
self-evaluation on these same parameters.

The reasons behind this scheme can be summarised as the need to continually strengthen the
leadership, communication and teamwork skills within our organisation, as a clear competitiveness
driver in the Spanish finance industry.

  2005          CAJA MADRID

Participation in the scheme is entirely voluntary for both managers and team members. The process
is confidential, in that only managers know the individual results of their evaluations, and anonymous,
in that no manager knows how their team members have rated them. At the end of each round, the
managers evaluated are sent a confidential report with the results obtained.

They may then be assigned a Development Programme which includes individual coaching sessions.

The scheme has so far brought excellent results with widespread improvement in all the evaluation
parameters: management style, working atmosphere and competencies.

A fourth round of Upward Evaluations was implemented in 2005. Overall more than 4,300 persons
were invited to take part, with a response rate exceeding 70%. This enabled evaluations to be run
on around 500 managers of different levels with input from some 3,000 employees.

Among the year’s novelties were the simplification of the management style and working atmosphere
questionnaires, and a design improvement in the section covering skills. Specifically, respondents
are now given a description of five conducts typical of each skill which they are then asked to rate in
terms of frequency.

This round, like the previous ones, was conducted online in a web environment using an external
application, and controlled by a system of passwords that ensures the complete confidentiality of the
opinions stated.

As a result, each manager involved will be sent a confidential, individual report in the first quarter of
2006 and offered the chance to take part in an external coaching programme that will help them to plan
any actions needed to improve their management style or the working atmosphere of their team.

  2005            CAJA MADRID


The Caja Madrid Improvement Ideas scheme was launched by management
so staff could have their say in steering the organisation’s progress vis-à-vis
the ongoing improvement and zero defect goals that characterise any total
quality system.

Created in 1995, it has allowed over 2,300 professionals to express their
initiative and imagination through the 7,725 ideas submitted.

The scheme is supported by a prize system that rewards the most original and most practicable ideas.
Fourteen award ceremonies were held in the opening months of 2005 for the best contributions to
the Improvement Ideas scheme in 2003-2004. Prizes went to 222 persons, making a total of 670
winners since the scheme began.

The 437 people participating in 2005 submitted 831 ideas, of which 43 were a team effort.

These figures show people's willingness to put their experience, knowledge and creative talent at the
service of the continuous improvement process.

  2005           CAJA MADRID

Caja Madrid believes that regular projects to inform staff about the
organisation’s values will ensure that they themselves become the
best reflection of our social responsibility commitment.

Induction Training: professionals new to Caja Madrid are
introduced to the organisation, so they identify with our business
project and commit to the values and ethics stated in the Caja
Madrid Induction Manual.

Anti Money Laundering: to instruct all Caja Madrid staff on how
best to prevent money laundering practices. training them to
recognise and deal with this type of fraud.
                                                                               Inés Sagrado González
                                                                                   Media Relations
Prevention of Occupational Hazards: to train all Caja Madrid
staff on how to prevent occupational injuries and illnesses in carrying
out their daily work, and how to give first-aid treatment should this be necessary. This project has helped
make staff more conscious of health and safety issues, including areas like road safety which are a
major concern for our organisation.

Training clips: as part of the Caja Madrid Group’s drive to reduce its consumption of natural
resources, a series of training briefings have been posted on the ePersonas portal on the subjects of
Resources Consumption, Environmental Management and Waste Management.

  2005          CAJA MADRID

Mention apart should go to Caja Madrid’s various initiatives to involve its professionals in social,
community and humanitarian actions.

Staff collections: the moment a disaster occurs, staff are invited to contribute funds to a special
current account, with the proceeds being distributed among NGOs working on the ground (the Iran
earthquake, March 11 in Madrid, etc.). Follow-up calls for funds also go out every three months.

Project yourself: a call for ideas and projects to build awareness on social issues like the integration
of immigrants, disabled access to transport, the prevention of domestic violence, etc. The contest is
organised through Obra Social Caja Madrid and aimed at professionals, customers and the engaged
public. The six areas selected by Obra Social attracted over 90 sensitisation projects and around 100
practical improvement ideas.

Fair trade store: selling ethically manufactured items from producer communities in Africa, South America
and Asia as part of the campaign to ensure all people a decent future and support fair trade practices.

Publicising of Obra Social, Fundación and Sponsorship activities: this programme was devised
to give internal publicity to Obra Social, Fundación and Sponsorship activities, so staff and their
families can get actively involved.

Volunteer information point: this new service is designed to advise each volunteer or potential
volunteer on the kind of activity or non profit organisation they are looking for, and which ones are
currently in need of temporary or permanent volunteers.




















INTRODUCTION                        115
CUSTOMER MANAGEMENT                 116
CUSTOMER TYPOLOGY                   117
    PERSONAL BANKING                118
    CUSTOMER CARE                   119
    “YOUR IDEA COUNTS”              121
    CUSTOMER SURVEYS                121
    THE “MYSTERY SHOPPER”           122
SERVICE QUALITY                     123
    QUALITY PLAN                    124
    DIVERSITY                       124
    IMPROVEMENT PLANS               125
    OUR YOUNGEST PUBLIC             127
    YOUTH                           128
    UNIVERSITIES                    130
    SENIORS                         132
    SUBSIDISED HOMES                133
    ENTREPRENEURS                   134
    SUPPORT TO SME’s                135


    GROUP OFFERS             139
    FOREIGN WORKERS          140
    NGO’s                    141
    DONATION ACCOUNTS        141
    BRANCHES                 143
    MOBILE BRANCH            144
    INTERNET                 145
    WAP BRANCH               146
    TELEPHONE BANKING        146
    ADVANCED KIOSKS          147
    CORRESPONDENCE           147
INDICATORS                   149
    GENERAL                  149
    BRANCHES                 149


Caja Madrid is fully aware that its customers are the real reason for its
work, and so continually seeks excellence in service quality and
customer care. This also means designing products that match up with
clients' needs, seeking our mutual benefit while reinvesting in society a
sizeable part of what we have taken out.

This commitment of the entire organisation to customer expectations is
reflected by Caja Madrid making service quality a strategic objective in
its Project 2006. This objective breaks down in turn into two
components: external customer satisfaction and the measurement of           José Miguel Torres Segovia
                                                                              Branch 9667 - Valencia
management quality based on the European Foundation of Quality
Management’s Excellence Model (EFQM).



A growing array of increasingly complex financial
products, the entry of new product-focused
competitors,     more     knowledgeable         and
demanding customers, in brief, an increasingly
competitive business environment, means Caja
Madrid’s customer management needs to be
highly segmented in terms of both natural and
legal persons, in order to identify and work with
smaller, more tightly targeted client groups.

As a result, customers’ requirements can be met
on an individual basis, and they can be
approached with a wide range of products, a
variety of channels for making purchases and
obtaining advice, highly qualified professional
teams and, of course, the means to give their
feedback on our organisation’s daily work.


The ongoing improvement of Caja Madrid’s information systems has vastly increased our customer
knowledge. As 95.4% of Caja Madrid’s customers are private individuals, the first distinction to be
made is between natural and legal persons. From this starting point, as part of its commercial strategy
and customer care, Caja Madrid carries out two kinds of segmentation:

   Socio-economic segmentation: enables us to compare our customers with other natural and
   legal persons employing bank services, in order to determine their financial preferences and habits
   and market positioning.

   Strategic segmentation: enables us to compare the different groups comprising our customer
   base to get a differentiated handle on their requirements and expectations.


Caja Madrid believes ideal customer care means knowing customers’ specific needs, and addressing
them with personalised offers in line with their commercial profile. Consequently, it has developed
commercial portfolios to address customers’ potential expectations, and deals with each one individually
via a personal manager. These portfolios have been at the service of customer groups since 1999,
and have evolved over time allowing us to adapt to changes in the competitive environment. This has
been possible due to significant investment on technology, staff training and the active engagement
of commercial managers with the organisation’s goals.

Other nationalities:
Caja Madrid has kept abreast of the two key migration trends unfolding in recent years: foreign
nationals coming to Spain in search of work, and Europeans who have bought a second home in

During 2005, the Caja Madrid Group refined and expanded its product and service offering for foreign
clients. The number of these clients has continued to mount - an increase of 32% in 2005 to over
570,000, confirming the Caja Madrid Group as a reference provider for this segment.



In 2005, Caja Madrid took branch and sales staff specialisation by
business and customer segment one step further with the creation of its
Personal Banking Service.

The process has meant scanning our systems to identify the clients per branch with the highest net
worth or income levels, in order to target them with a specialised offering based on personal attention
and investment guidance.

Caja Madrid Personal Banking already has 444 specialist branches, staffed by 541 fully trained
Personal Banking advisors. Customers are attended in a dedicated area, signalled and designed to
reflect our quality undertaking with this segment. Personal Banking clients are attended directly by the
Manager at a further 850 branches.

This differentiated image is a mark of the confidential and exclusive treatment accorded to Caja Madrid
Personal Banking clients, and has been deployed to date at all branches with a specialist advisor as
well as in customer mailings, the corporate website and media advertising.

Caja Madrid Personal Banking offers its clients systematic financial assistance in the form of tailored
investment advice and proposals from personal advisors and branch managers, and a portfolio
monitoring service.

Since service start-up in July 2005, a total of 11,843 advised
portfolios have been created summing 1,253 million in
assets, and customers have been addressed with 6,366
individualised proposals summing 987 million.

The 361,000 customers now receiving the personalised
attention and integrated investment guidance of Caja Madrid
Personal Banking are the best testimony to the project’s success in its first year of operation.

Finally, funds under management in Personal Banking amounted to 22,400 million at the 2005 close,
after growth in the year of 30%.

Caja Madrid considers it vitally important to establish a fluid
dialogue between customers and the organisation. We have
accordingly created a variety of feedback channels for the people
using our services, so improvement processes are informed and
led by those that matter most: our customers.

From global tools for identifying improvement opportunities, such
as satisfaction surveys, to more personalised ones, like branch-             José Ignacio Ruiz Muradas
                                                                            Finanmadrid - Administration
level contacts, Caja Madrid makes every effort to understand its
customers’ demands as the first step to providing tailored


Caja Madrid views the complaints and suggestions made by its customers as an invaluable source
of direct information for input to quality improvement plans. Not only do they tell us how and where
our clients feel improvements are in order, they also allow correction of the incidents that, regretfully,
form an inevitable part of any human venture.

For this reason, Caja Madrid has run a Customer Office since 1992, later re-styled the Customer
Care Service pursuant to Law 44/2002 of 22 November on Financial System Reform Measures and
its implementing regulations.

The Customer Care Service operates in accordance with the Customer Protection Regulations of the
Caja Madrid Group, as approved by the Board of Directors and ratified by the Madrid Regional
Government's Department of Economy and Finance. The service can be contacted through the
website, section “Atención al Cliente”. Article eight of the above Regulations
attributes the following functions to the Customer Care Service:


  Hear and resolve on claims and complaints presented by natural or legal persons, Spanish or
  foreign, directly or through a representative, concerning their legally recognised interests and rights
  as regards transactions, agreements or financial services rendered by Caja Madrid or companies
  within its Group, whether deriving from the agreements themselves, from transparency and customer
  protection legislation or good financial practices, in particular the principle of equitable treatment.
  Convey recommendations and suggestions to the Caja Madrid management team regarding
  measures which, in their opinion, would strengthen the relations of trust that must exist between
  financial institutions and their clients

Customers can make their complaints and claims by the following means:

  Telephone. For non written complaints: 902 24 68 10.

  Branches. The first port of call for dealing with any kind of complaint or claim. Customers can state
  their complaints either verbally or in writing. If the complaint is in writing, they may make use of
  the official complaints form issued by the regional government, or a form custom-designed by Caja
  Madrid. Any customer not satisfied with the response received can then direct their complaint, in
  writing, to the Customer Care Service at the following address

                                             CAJA MADRID
                                    Servicio de Atención al Cliente
                                    Apartado de Correos 1.334 FD

  Another alternative is for clients to make their complaint directly, in writing, to the Customer Care
  Service at the above address.

  Internet. Using the complaints form available on, in the section headed
  “Atención al Cliente”.



The purpose of this scheme, started up in 2003 in the framework of the Customer
Care Quality Plan, is to encourage customers to play their part in the organisation’s
continuous improvement processes. More suggestions were welcomed in 2005
with all contributions receiving public acknowledgment.

The idea is to enrich our knowledge of what clients think and want, so we can
better address their needs, requirements and expectations.

Suggestions to date have mainly touched on the development of new technologies like Internet portals
and advanced kiosks.


The satisfaction of our more than six million customers is our reason for being and priority objective.
Caja Madrid carries out various kinds of customer survey so its processes can be geared to
maximising service quality.

As in previous years, customer satisfaction soundings were taken as part of the service quality
management programme, with more than 130,000 surveys run of individual and business clients.

These surveys allow us to measure and analyse customers’ global satisfaction with each relational
channel, and provide invaluable feedback on the ability of individual products and services to meet
customers’ felt needs. In addition to official segment-by-segment soundings, new clients of other
nationalities were asked about the perceptions they have of Caja Madrid.

Caja Madrid’s Private Banking wing (Altae) also uses a specific customer perceptions model which
has boosted client input to its improvement project.

The information gathered is used to plan and evaluate improvement actions, and provides branches
and other organisational groupings in direct or indirect contact with clients with a detailed picture of
how well their services are rated, and what departments need to establish improvement plans.


The global satisfaction of individual clients rose 1.6 points in 2005 (to 82.4% vs. the 80.8% of the
previous year). Among the aspects most highly rated were the professionalism and helpfulness of
branch staff, transaction reliability and telephone attention.

Advanced kiosks were praised for their ease of operation, and the Internet Branch for the large variety
of transactions available and the convenience of channel use. Finally, the telephone banking service
was singled out for the high-quality service provided by operators.

Other soundings are conducted in accordance with the organisation’s needs of the day, and to track
opinions on the main projects undertaken by Obra Social Caja Madrid.


Perception studies are supplemented each year by different types of analysis. One such is the “Mystery
Shopper” survey where teams of people with different profiles visit branches in the guise of clients in
order to measure objective quality.

The fifth annual “Mystery Shopper” campaign took in more than 500 branches, and will allow us to
compare our service standards against those offered by other sector operators. This system permits
the objective measurement of certain quality aspects so we can go on detecting and disseminating
best practices as part of the Caja Madrid Customer Care Quality Plan.


In the competitive framework of the financial industry, the
lynchpin of Caja Madrid’s strategy is to establish a relationship
of professional trust between its customers and staff, based on
the following principles taken from the “Caja Madrid Professional
Conduct Guide”:

  respect for legality and internal regulations
                                                                              Pilar Cano Jiménez
                                                                          Sponsorship, Advertising and
  respect for people’s dignity and integrity                                   Corporate Image

  an ethical style

  trust in people

  social responsibility




  equal opportunities

Each member of staff represents Caja Madrid in their dealings with customers and should act and
behave professionally at all levels in accordance with the principles outlined above, so customer
service responds at all times to the standards set by our organisation.



Caja Madrid has one of the highest levels of customer loyalty among financial
institutions, 78.1% in Spain and 85.4% in the Madrid region (Source: FRS/Inmark.
Financial Behaviour of Individuals 2004).

It was in order to attain and consolidate this positioning that Caja Madrid launched
its Customer Care Quality Plan in 1999. The Plan sets out to instil a culture of
service quality with both internal and external customers, and to standardise styles and practices, so
clients recognise the Caja Madrid hallmark in each contact with the organisation.

Its content, which is reviewed and updated on a regular basis to include stakeholder contributions, was
developed by Caja Madrid’s professional teams, who met in working groups to identify best practices
in face-to-face, telephone and written communication with clients.


This is the reference framework for the project Incorporación de Personas (“Bringing in People”) which
aims to personalise the care given to our foreign customers by having them deal with professionals of
their own language and cultural background. This policy is directed at two groups of customers:

European Union residents: work continued on the project begun in 2004 to personalise the
commercial management and service provided to EU clients, both residents and non residents, based
mainly along the Mediterranean coast or in the Balearic or Canary Islands.

The project includes the appointment of specialist advisors of EU origin or nationality to deal on an
exclusive basis with these clients, with whom they share a cultural and linguistic background.
Specifically, advisors also all speak the language of the clients they are dealing with plus English.
At the 2005 close, 41 such advisors were working at 27 branches.

Actions with EU resident clients have sought to attend their financial needs in Spain, with particular
reference to home purchase finance and maximising returns on their savings. This last need was
addressed by the launch of segment-specific short-term products like the 4UK deposit in sterling


Foreign workers: this project consists of the appointment of non EU staff to commercial positions
in Madrid Region branches with a large number of non EU clients.

Caja Madrid has attracted a large number of customers of different nationalities by offering them the
appropriate products and services.

The first thing foreign workers need on arrival in Spain is to be able to send money to their country
of origin in the form of a family remittance.

After 3 years in Spain they are thinking about buying a home, and indeed mortgage loans are
becoming more important for this kind of customer.

Caja Madrid’s workforce includes 80 people of 27 different nationalities (Chinese, Moroccan,
Guinean, Ecuadorian, Colombian, etc.).


Using the opinions of external and internal clients as compiled from surveys, the various organisational
groups within Caja Madrid have initiated improvement plans focused on increasing customer
satisfaction scores.


Central services, as in previous years, have drawn up their own plans to increase the satisfaction
ratings of internal clients. Such actions are designed to facilitate the workload of branches, which
also has an important knock-on effect on end customer satisfaction.

Plan 50 continued in 2005. To date participating branches have raised their quality scores by 10.75
points (9.2 points above the Caja Madrid average).

The fifty branches taking part in 2005 made 193 improvement plans taking in 495 separate actions,
and provided feedback on improvement schemes as well as examples of procedures for incorporation
to the Caja Madrid Best Practices system.

As part of the collaboration between Central Services and the sales network, key organisational
groups have established support policies for the improvement plans drawn up by branches.


The sale of products and services at Caja Madrid ties in with one
of our core commitments, namely to reinvest in society a significant
part of the earnings from our financial activity. In this respect all
products and services have an important social component.

Caja Madrid also targets specific collectives (young people, the
elderly, fledgling entrepreneurs and small companies) with a series
                                                                           Olga María Manzano Castro
of products incorporating extra value-added and available under                Quality Assurance
better-than-market terms.


Caja Madrid wants to be close to its youngest public and instil in them the savings habit. It offers two
savings products for children.


Children under the age of six can enjoy their own Caja Madrid savings account. Mi Cuenta y Yo allows
them to grow their savings without charges or commissions, while benefiting from all the advantages
of the product, including regular promotions and prize draws.

Each child keeps the same account number as they grow up. So when they reach the age of six, they
switch to Cuentas Tú, and when they reach eighteen, to Cuenta Joven.


School-age children too have their own customised Caja Madrid account. As well as the usual
services, the Cuenta Tú savings book offers youngsters from six to eighteen some useful financial
advantages – zero commissions and a special interest rate to reward their first steps in saving.
Holders also get free education insurance, guaranteeing that their studies will be paid in the event
of the death of their parents.


They can also take part in the promotions and prize draws organised on a regular basis for Cuentas
Tú holders.


For several years now, Caja Madrid has been marketing a full range of products and services with
young people’s needs in mind. These products comprise what is commercially known as Línea Joven
Caja Madrid:


Caja Madrid’s Cuenta Joven is an account for young people between the ages of eighteen and
twenty-five, with no charges or commissions, which they can use to pay in their wages and settle
their bills. This age-group exclusive account also comes with a tailored range of debit and credit
cards, in some cases free of annual or maintenance charges, and the opportunity to take part in
regular promotions and prize draws.

The Cuenta Vivienda homebuyers savings account combines a high interest rate with interesting
tax deductions, and is the “best in class” option for those who want a flexible savings plan. Holders
can choose when and how much they want to pay in, and also get special treatment when applying
for a mortgage.


Hipoteca 40, launched in November 2005, is a mortgage loan pairing attractive interest with repayment
periods of up to 40 years, with a choice between a variable or mixed rate format for the first five years.
With this product, Caja Madrid is seeking to smooth the way for first-time homebuyers by offering
them a longer repayment term that substantially brings down monthly instalments.

Hipoteca 40 customers can also apply for a payment holiday of up to five years, during which they will
only be charged interest. This gets them cheaper instalments over the first years in their new home,
when cash is of the essence.

The Crédito Joven, for the eighteen to thirty age group, provides an optimum solution for each


requirement. Funding for studies, travel, furnishing a new home, etc. All these expenses can be
comfortably met with Crédito Joven. Repayment instalments also get the flexible treatment, in view
of the employment instability that characterises this life stage.


Holders of the Servicio Nómina, reserved for those having their salaries directly credited to a Caja
Madrid account, have automatic access to special product and service conditions such as discounts
on home insurance policies, free accident insurance and the advantageous Crédito Nómina loan.

Access to distance banking services is simple and convenient. Card PIN numbers are a universal
key providing access to the Internet Branch, the WAP Branch, the Telephone Banking service and
Caja Madrid’s extensive cash point network.


Tarjeta MTV
Caja Madrid has paired up with music channel MTV to offer a new product for the young and aware. And
the results have not had long to wait. Within three months, cards in operation numbered over 40,000.
The card is available in debit and credit versions and incorporates a multitude of extras:

   Lower fees for young people aged under 25.

   Discounts at shows and leisure events, in cinemas, etc. These are also dynamic discounts which
   are changed round every three months.

   Participation in MTV events: concerts, programmes, etc.

   Payment facilities in the credit modality.


Carnet Joven Euro<26
This debit card for young people between fourteen and twenty-five, marketed exclusively by Caja Madrid,

   Discounts throughout Europe on travel, activities, museums and in a host of establishments.

   Numerous promotions, draws and activities for Carnet Joven Euro<26 holders in the Madrid Region.
   Details can be found on, a virtual online information and meeting point
   for Carnet Joven Euro<26 holders.

   Free travel insurance.

   Shopping in all stores which accept the Visa brand, both in Spain and abroad.


Caja Madrid’s comprehensive insurance range includes a number of products with special appeal for
the younger public, which are therefore included in its Línea Joven:

   Viaje Seguro Caja Madrid, “safe journey” insurance that can be adapted to the characteristics of
   each trip, and with far more varied coverage than the standard travel policy.

   Seguro Todo Esquí especially devised for ski trips, whether in Spain or abroad.

   Seguro Mascotas, covering both pet and pet owner.

   Seguro Autos with the fullest range of services and benefits.


Caja Madrid’s commitment to the world of education and knowledge is expressed mainly in the sphere
of tertiary education, through initiatives whose main goal is to strengthen and develop academic


Caja Madrid is an established name in the university world:

   It has nine on-campus branches at Madrid Region universities.

   It sponsors the prestigious Complutense University Summer School in El Escorial.

   Fundación Caja Madrid runs a major scholarship programme and also cooperates with various

   It helps to collect course fees at the Complutense and Rey Juan Carlos universities.

In addition, it offers customised products with advantaged terms to university students, under a series
of agreements with universities in the Madrid Region:

   University prepayment, debit and credit cards (Complutense, Autonomous, Rey Juan Carlos and
   Carlos III).

During 2005, Caja Madrid incorporated an EMV chip to all its Complutense and Autonomous University
cards, supporting access to new benefits and utilities within a high security environment.

Caja Madrid has also extended its partnership scheme to other universities. One such is Catholic
University of Valencia, with whom we recently signed a framework collaboration agreement. The first
action under its aegis has been the issue of university cards in the prepaid modality.


The Caja Madrid university range has been joined by low-cost loans, with easy repayment terms, for
the completion of master’s and postgraduate courses, payment of matriculation fees or as advances
on grants. This product to date is available to students at the following universities:

   Alcalá de Henares University.

   Complutense University of Madrid.

   Carlos III University.


   Autonomous University of Madrid.

   Rey Juan Carlos University.

Loans are also offered, under advantageous economic conditions, to teaching, administrative and
contract staff at all the public universities in the Madrid Region.


Caja Madrid looks out for the elderly. It has a line of products with very special advantages, designed
specifically for the over sixties, so they can get on with enjoying life.


The Libreta de Ahorro a Plazo savings book provides a simple and safe investment. The client
chooses the investment term that best suits his or her needs, and is guaranteed the same interest rate
throughout. Interest is paid direct to clients’ accounts every three months.

Seguro Renta Inversión Inversión guarantees a life annuity, with the customer deciding the
frequency of payment, and is also a life assurance product with attractive tax benefits.


Crédito Senior is a loan of up to 6,000, with excellent conditions and low interest, for clients who
have their pensions paid in direct to Caja Madrid. The customer can choose the day of the month on
which they wish to make the loan payments.

With Anticipo Pensión, Caja Madrid advances senior customers up to 1,500 under best-in-market
conditions, while their direct pension payment is being formalised. The client then repays the loan in
a single instalment after four months have elapsed.



Clients having their pensions paid direct to their Caja Madrid account are credited with the
corresponding amount on the twenty-fifth of each month, and also receive special discounts on the

Seguro Hogar home insurance product.


The Tarjeta Dorada offers large discounts on RENFE train tickets. Also, cardholders can withdraw
money at any cash point displaying the VISA logo, and shop at millions of establishments belonging
to the VISA network all around the world. The card is available in debit and credit versions, and comes
with travel and accident insurance.
Caja Madrid´s Visa-Electrón, has special conditions for the over-sixties, who pay no annual fee.


Housing is one of the most pressing concerns of the average Spanish household, as well as for young
people wishing to set up on their own but without the means to do so. Caja Madrid wants to facilitate
citizens’ access to this primary necessity, and is accordingly an active partner in central government
Housing Plans, offering concerted loan formulas under especially advantageous conditions, and even
direct aids funded by the housing ministry, regional governments or other public agencies, and
targeting young people, large families and single parent families, among other collectives. A total of
14,000 homes have been financed to date under this scheme, benefiting 28,000 persons.

Furthermore, financing lines have been provided to various regional and local governments for the
development of subsidised housing programmes which complement central government provision in
this area. These schemes set out to facilitate the access to housing of society’s least advantaged

Mindful of the needs of the younger public, the Group has built up a dedicated loan range including
Hipoteca 40, Cuota Estreno and Hipoteca Cuota Cero, to help them over the hurdles they face in
buying their first property.


Caja Madrid has also partnered the Madrid Government in its “Homes for the Young” scheme, involving
the construction of subsidised homes which are then rented out with a purchase option, and has
launched a Hipoteca Joven mortgage product specific to the Canary Islands.

Caja Madrid has collaborated with the Development Ministry, the Madrid City Council Housing
Corporation, the Catalonian Regional Government and the Madrid Regional Government’s Public
Works Department in the funding of refurbishment works on older buildings in inner city areas.
Concretely loans are extended to owners’ associations to undertake the reforms prescribed in
Technical Inspection of Buildings reports.

Finally, to encourage the acquisition of homes managed by the Madrid Housing Institute (IVIMA),
finance is offered to the tenants allocated these properties.


Caja Madrid believes that the right to a decent job is a basic human right. And it puts this belief into
practice by offering advantaged financial products to help new firms establish themselves in their
target market. The aim is to make borrowing as easy as possible for new-start companies. A range
of supporting products is also available under preferential conditions, including sector-specific cards
and insurance.

Caja Madrid has sponsored the GEM Executive Report on the Madrid Region authored by the
Autonomous University’s business administration school, IADE. This report examines entrepreneurship
and business activity in the region during 2004.

GEM (Global Entrepreneurship Monitor) is an international research project which examines the
entrepreneurship status of participating countries and regions and how it shapes the performance of
national and regional economies. A total of 43 counties took part in 2005, along with eight of Spain’s
autonomous regions.

Caja Madrid also numbered among the sponsors of Salón Remprende 2005, a business encounter
organised in Madrid (Valdemoro) on 22 June 2005. The aim was to bring entrepreneurs into contact
with investors and help get viable business projects off the ground.

This kind of collaboration not only provides Caja Madrid with useful insights into the needs of the
entrepreneurial collective, but also cements our standing as a finance provider for new start


A savings plan whose final goal is the set-up of a new company. Contributions enjoy a 15% deduction
in personal income tax for a maximum of four years and up to an annual limit of 9,000.


Self-employed professionals(whether natural or legal persons) have very specific financial
characteristics. On the one hand, they require personalised care and investment advice as individual
clients. On the other, they have specific requirements linked to their professional activity as the
managers of small businesses. Cuenta Profesional is an integrated solution to keep their business
running smoothly.

Launched in late 2004, it has since been joined by other products especially designed for the self-

  The Crédito Profesional loan with key features including an immediate response, an extra
  competitive rate of interest, and a choice between loan or credit account modalities, whichever
  best fits the client’s needs.

  Launch of the Simplifica card line in Visa debit and Mastercard credit versions.

Collaboration agreement with Madrid Young Entrepreneurs Association and Avalmadrid S.G.R.
This scheme to fund the business projects of young Madrid Region entrepreneurs was renewed in the
year. Borrowers now get an even better deal, including a higher ceiling amount and greater facilities.


Caja Madrid is aware of the social problem represented by unemployment, temporary employment and
the lack of job security. We are also aware that the SME sector is the source of 80% of employment in
Spain. For this reason, our organisation has entered into a number of agreements, in close partnership
with government authorities, whose aim is to further the development of small and medium-sized


These include:

ICO/CDTI line (new technologies, job creation...)
Caja Madrid signed a new agreement with the Instituto de Crédito Oficial (attached to the Ministry of
Economy and Finance) in 2005, to fund investment projects aimed at improving and modernising the
technology base of businesses. Eligibility extends to capital expenditure on improving companies’
environmental management.

A keynote initiative channelling finance under preferential conditions to small and medium-size
businesses, with the sole objective of favouring their development and growth.

In 2005, the Caja Madrid Group arranged 2,400 loans under this facility for a total amount of 157.9
million, enabling us to rise through the ranks of collaborating institutions as far as seventh place
at the annual close.

Credit line to fund capital expenditures resulting in environmental improvements, such as higher
reusage rates.

Agreement with Avalmadrid FICO and Avalmadrid ITE
Avalmadrid-FICO (support for small retailers and independent contractors)/ Avalmadrid-ITE (new
technology for SMEs): loans, credit and leasing with zero guarantee commission costs.

A company or independent contractor can request a guarantee from Avalmadrid for financing sought
from Caja Madrid. The loan, credit or lease is immediately released once the guarantee is issued.

Agreement with Mutual Guarantee Societies Elkargi (Basque Country), AVALIS (Catalonia),
SOGAPYME (Canary Islands), UNDEMUR (Murcia) and the MGS of the Valencia region.
For the issue of guarantees under preferential conditions to enable small firms to obtain Caja Madrid


The €30 million loan granted to ONCE in 2004 was raised to €60 million in 2005.
This loan is ring-fenced for the association’s social action programme, with a significant part going
on the acquisition of data phones for its members.


Other agreements have been concluded with public agencies and business institutions and
associations to improve the finance available to companies, and get it flowing more freely.

These agreements envisage preferential prices and rates for the corresponding products and services:

  Agreement with the Andalusian Employers Confederation.

  Agreement with the Economic Development Agency of La Rioja.

  Agreement with the Canary Island Institute for Training and Employment.

  Agreement with the Extremadura Regional Government: Economy, Industry and Trade Department
  – SME financing.

  Agreement with the Principality of Asturias Economy Department – SMEs.

  Agreement with the Valencia Regional Government: Internal Trade Department – SMEs.

  Agreement for SME financing with the Castilla-La Mancha Finance Institute.

  Agreement with national innovation organisation ENISA. ENISA offers a type of mezzanine
  financing known as the participatory loan, which provides companies with long-term funding without
  any reciprocal say in their management decisions.

  Financing of “artepyme” projects to encourage the spread of Information and Communications
  Technologies (ICT). An example would be the COELCO project run by the professional association
  network RECOL, whose aim is to promote Internet and new technology use among professionals
  and small businesses.


 Agreement with the Madrid City Council to provide treasury services.

 Agreement with the Madrid Regional Government to provide treasury services.

 Agreement with the Spanish Social Security Authorities to provide treasury services.


Caja Madrid has established a number of alliances with a social
responsibility remit, aimed at meeting the needs of discrete social


Caja Madrid puts a preferential product and service offering at the
disposal of different collectives.

These include special packages for Madrid Regional Government and
City Council employees, members of mutual schemes MUFACE and
                                                                            Ana Tello Santiago
ISFAS, the staff of the Police Department and the Guardia Civil,           Branch 1074 Madrid

employees and coupon sellers of disabled charity ONCE, for the
financing of homes managed by the Madrid Housing Institute and
Armed Forces Housing Institute, for university students, etc.

Among the advantages on offer are:


Caja Madrid runs a number of credit lines providing advances on aids granted by public agencies.
They include:

   An agreement with the Madrid Regional Government for the payment of advances on subsidies
   granted by its various departments.

   Agreement with the Association of Victims of Terrorism for the advance payment of compensation
   granted by the Ministry for Home Affairs.



   Agreement with the Madrid City Council to fund repair works resulting from Technical Inspections
   of Buildings.

   Agreement with the Ministry of Agriculture, Fisheries and Food and CECA (Spanish Savings Banks
   Confederation) to fund structural improvements and the modernisation of farms.

   Agreement with the Ministry of Industry, Tourism and Trade in the framework of the Plan Avanza
   2006-2010. This is the parent scheme of the “Connected Homes” initiative to get more households
   using computers as an educational resource. The idea is to establish a preferential financing line
   for families interested in acquiring computer equipment and an Internet connection.


   Caja Madrid will establish a preferential financing line for beneficiaries of this association for the
   mentally disabled, to pay for home adaptations and the purchase or adaptation of motor vehicles.


Caja Madrid approaches foreign nationals working in Spain with a special service range, designed to
match their needs and at the same time facilitate their integration within Spanish society.

Remittance services are generally the first thing these customers need. Caja Madrid has accordingly
sought new agreements to give them a wider choice of remittance destinations under improved economic

They have also been targeted with specific products like the Certificate of Non Residence Service,
whereby Caja Madrid handles all the paperwork for the receipt or renewal of this type of accreditation.

Specific promotional campaigns were deployed to inform foreign workers about the Caja Madrid range
of products and services.

One product in particular, the Caja Madrid international death insurance policy, has been eagerly received
since its 2004 launch.



UNICEF credit card: an affinity credit card through which Caja Madrid contributes to UNICEF’s
programmes in aid of children.

INTERMON-OXFAM credit card: an affinity credit card through which Caja Madrid contributes
financially to the social programmes run by this NGO.

Our organisation also entered a new agreement in 2005 with the MADRID DOWNS SYNDROME
FOUNDATION. Its first fruit will be an affinity card through which Caja Madrid will contribute to Downs
sufferers integration in the social and employment spheres by donating a part of the revenues raised.


This fund belongs to the Ethical/Ecological/Social Responsibility/Solidarity category of Spanish
collective investment association Inverco, with 0.5% of management fees donated to UNICEF.

The fund was the object of a number of promotional actions in 2005, like the insertion of banners and
placing of adverts in the UNICEF magazine.

This international mixed fixed-income scheme can be up to 25% invested in equity securities from
any country in the world. Its ethical agenda bars it from investing in companies producing arms,
tobacco or alcoholic drinks.


Caja Madrid runs a large number of donation accounts for customers wishing to make a financial
contribution to NGOs anywhere in the world. The following accounts were opened in 2005, in response
to the emergencies arising in Asia and Central America:

   Cáritas Emergencia en Asia: 2038 1028 15 6000989291

   Cruz Roja Ayudas Internacionales: 2038 0603 22 6006417905


   Ayuda en Acción: 2038 1052 40 6000724418

   Intermón Oxfam: 2038 8978 16 6000171920

   Cáritas Emergencia Centroamérica: 2038 1028 17 6000933979

   Fundación Anesvad: 2038 4202 03 6000105060

These nine donation accounts come to join those already listed on the Caja Madrid website: a ONG´s.

In addition to giving the details of these accounts to customers wishing to make a donation, Caja
Madrid publicises their existence to the broader public in order to attract in more funds.

Publicity is regularly issued through our information channels, supplemented by extraordinary
campaigns when some major disaster occurs:

   Corporate website: donation accounts are a permanent feature of the main Caja Madrid website.

   Internet Branch: a link in the news section of the home page takes the user direct to donation
   account transfers.

   Corporate Intranet: donation accounts are featured as news items at selected moments in time.


New technological platforms have greatly facilitated person-to-person
communication, and are an invaluable resource at customers’ disposal
to conclude banking transactions or contact Caja Madrid staff at any
time and from any place.

Customers can order transactions by phone through the Caja Madrid
telephone banking service, or place them directly with mobile devices         Pilar Pedraza Román
                                                                        International Communication and
(WAP, PDA, Blackberry…) or by connecting to the Internet Branch –                  Publications
which ever channel they find easiest or most convenient.


The 1,940 Caja Madrid branches
distributed throughout Spain are the
main channel of communication with
customers. Branch professionals are
qualified to provide any kind of
information, retail or corporate.
Customers,     as   such,   are   not
confined to their regular branch, but
can feel free to make enquiries or
suggestions at any point in the Caja
Madrid network, with no limits on the
personal attention and care at their



Caja Madrid also runs a fleet of 5 mobile branches whose aim is to:

   carry financial services to municipalities with no bank
   branches nearby,

   provide cash point and treasury services at sporting
   and cultural events,

   act as support in institutional roadshows,

in sum, to meet demands for financial services that could not otherwise be attended.

Mobile branches have two set dates on their calendar:

   Residencia Reina Sofía (Las Rozas): Once a month, the Ofibus visits this old people’s home in
   Madrid to deal with the needs of its residents.

   Ribatejada and Valverde de Alcalá: Every Tuesday in the year, a Mobile Branch calls in at these
   two villages, of 419 and 339 inhabitants respectively. This service was started up after the closure
   of branches in the area, so local people could be supplied with cash without having to make the
   trip to the nearest town.

The Mobile Branch was present in 2005 at cultural events (Madrid Book Fair, El Escorial Summer
School, matriculation days at the Complutense and Rey Juan Carlos universities and Madrid’s Official
Language School, etc.) and sporting occasions (Tennis Master Series in Madrid and the International
Paddle Tennis Tournament).

It also attended trade fairs in the Madrid Region and was used for promotional campaigns and as a
back-up support for newly opened branches. Another case was the Ofibus that served the neighbours
of Sanchinarro, one of Madrid's youngest "overspill" zones, until such time as its service infrastructure
was properly up and running.


Caja Madrid runs dedicated portals for its different business areas, so users get more detailed and
targeted information. Some are transactional portals like the Internet Branch for Individuals and the
Internet Branch for Business, while others have more of an informative mission, providing advice and
guidance on Caja Madrid products and services.

The three pillars of Internet Branch service delivery are accessibility, security and quality. It was these
values that made Caja Madrid the first financial institution in Spain to obtain the BS7799-2:2002
certificate, which puts a world class label on our IT security management practices.

Caja Madrid is keen to ensure that its websites are easily accessible to all types of users. Hence its
2005 project to redesign portals according to the most advanced international accessibility techniques
and guidelines. In doing so, we relied on the advice and experience of people suffering disabilities
who worked with us to ensure the best standards of navigability:

   Option of keyboard only navigation, without using the mouse.

   Labelling of graphics so they give detailed indications of page content.

   Enlarged information on link addresses.

   Visualisation of all contents on all types of browsers.

One immediate result is that the Obra Social website was the first of any private entity to be awarded
a Web Accessibility Initiative AA rating after an audit performed by the Fundación CTIC, a non-profit
organisation whose remit is to promote activities furthering the advancement of the Information and
New Technology Society. Caja Madrid is, to date, the only entity in the Spanish financial system to
have a website awarded this international certificate. Work is proceeding to bring other Caja Madrid
websites up to the same accessibility standards, and to eliminate any remaining impediments to
their use by visually impaired persons.



Caja Madrid customers can run their business from their mobile phone or electronic organiser, thanks
to the services of the WAP Branch. These emerging technologies mean bank services are constantly
on call with just the pressing of a button.


This consolidated service, highly rated by customers, offers the same transactional capability and
the same advantages as other Caja Madrid channels.

Callers can order their transactions automatically, by keying in the relevant code, or opt to be attended
personally by an operator. In short, a form of communication that saves journey time and gives clients
a quick, effective way to keep informed.


Caja Madrid also offers members of the public a permanent helpline where they can have all their
general queries answered. The number 902 24 68 10 provides information on Caja Madrid and its
product and operational range, while customers with more specific needs have their own dedicated


Caja Madrid offers its clients an extensive cash point network which, furthermore, is being constantly
upgraded to permit new utilities and functionalities and greater ease of operation.

Our organisation has invested in the latest technology to ensure best-in-class network management
capabilities, while adding and improving channel features and installing new machines in off-site
locations. Finally, more cash points have been added in Mapfre offices with Caja Madrid corners
(Banking Distribution Offices.


Caja Madrid has begun a project to redesign and enrich the information sent to clients, from the dual
standpoint of quality and clarity. The campaign extends to both transactional statements and the
integrated correspondence system, in which a single document details the movements and balances
of virtually all the customer’s Caja Madrid products.

2005 was also the roll-out year for an ambitious new Correspondence Service, using a more flexible
format that takes account of each customer’s profile and specifications.

Among the new possibilities on offer is the personalisation of mailing frequencies, the multiple-
addressing of customer communications, their discontinuation or renewal and, even, their grouping by
family unit.


Caja Madrid’s quality undertaking in communication also finds expression in its membership of
Autocontrol, which it joined in 1999 and on whose management board it currently sits. Autocontrol is
an association set up by advertisers, advertising agencies and communications media. Its goals include
the safeguarding of consumer and user rights and the defence of fair competition.

The mere fact of belonging to Autocontrol certifies that Caja Madrid has no disputes or complaints
outstanding, as the association does not accept members who will not abide by its self-regulation

All written correspondence complies with Personal Data Protection legislation and guarantees the
confidentiality of the information supplied.

Likewise, the advertising copy issued by Caja Madrid bears, when required, a Bank of Spain registration
number (RBE) certifying that it has been reviewed and approved by the central bank, while all media
campaigns for Caja Madrid mutual funds are previously checked and approved by the product analysis
team of securities regulator CNMV.









 INTRODUCTION                    153
 GENERAL OBJECTIVES              156
    THE ELDERLY                  159
     Elderly Projects            159
     Alzheimer´´s, Parkinson´s   160
     Other programmes            161
     Spaces for the elderly      162
    DEPENDENT PERSONS            163
     Inmigrants                  163
     Employment                  164
     Disability                  165
     Inequality                  166
     Other programmes            167
     Projects                    170
     Emergencies                 172
    EDUCATION                    173
     Early childhood             173
     Young people                174
     Ponce de León               175
     Languages                   175
     Libraries                   175
     Programmes                  176


   CULTURE                        177
    Proprietary spaces            177
    Programmes                    179
   HERITAGE                       184
    Conservation projects         184
   MUSIC PROGRAMME                187
    Diffusion                     187
    Cuenca Religious Music Week   189
    Education                     189
    Research                      189
    Publishing initiatives        190
    Exhibitions                   191
    Foundation scholarships       192
    Join scholarship              194
    Research                      194
    Universities                  195
AWARDS                            197
INDICATORS                        204
   GENERAL                        204


Caja Madrid pursues its social and cultural activities through Obra Social Caja Madrid and Fundación
Caja Madrid. This social remit, which forms part of our objectives and mission statement, traces back
to the creation in 1702 of the original Monte de Piedad, the forerunner of Caja Madrid. A permanently
changing global landscape and, with it, changes in the prevailing social agenda give rise to new needs
and challenges that require both vigilance and responsiveness on the part of our organisation.

Each year Caja Madrid earmarks a percentage of its profit after taxes for Obra Social and Fundación
Caja Madrid at the proposal of the Board of Directors, and subject to ratification by the General

This allocation expresses Caja Madrid’s voluntary engagement with its broad-ranging programme of
social and cultural activities. A total 2005 budget of 161.2 million and almost 7 million
participants/beneficiaries evidence our commitment to put back into society a large part of the proceeds
of its financial activity.

Projects are undertaken directly or in partnership with like-minded institutions and focus on the welfare,
cultural, educational, research and environmental areas in liaison, normally, with the corresponding
autonomous community. Budget resources and management responsibility are distributed between
Obra Social Caja Madrid and Fundación Caja Madrid under strict efficiency criteria.

More detailed information on the projects described can be found on the websites of Obra Social and
Fundación Caja Madrid:                 


The activity of Obra Social and Fundación Caja Madrid is framed at all times by the Principles and Policies
approved by the General Assembly at its meeting of 21 April 1997. These principles and policies are
anchored on or informed by the following concepts:

Unity. Such that Obra Social is the sum of the social and cultural activities developed by Caja Madrid
regardless of its legal form, nature and the make-up of its management team.

Equity. Resources are allocated on the basis of need, timeliness, fitness and urgency. Decisions on
the activities to be programmed and the individuals, families, collectives and institutions they are
intended for pursue a maximum social return from the funds contributed.

Relevance. Social and cultural activities should be attuned to the social agenda of the day, with its
demands and aspirations, combining a forward-looking, innovative approach with a permanent
attention to our commitments and obligations under projects in progress.

Transparency. Project selection criteria, control procedures and decision-making processes are given
the widest possible publicity, while society and the media are kept constantly informed about Obra
Social activities as a way to improve and strengthen its image.

Legitimacy. Such that Obra Social enjoys full recognition from its users and beneficiaries, the people
within Caja Madrid and society at large, and is endowed with qualities that single it out as innovative
and “different from the rest”.

Independence. Obra Social conducts its activities in complete independence, though it may from
time to time enter into partnerships with public or private agencies as a means to leverage its social
investment, when such initiatives uphold and reinforce its image and purpose.

Economy. Obra Social activities are conducted under criteria of efficacy, to ensure that results go
according to plan; efficiency, so as to consume the fewest possible resources in meeting our
objectives; and synergy, making full use of the resources and talents available within Caja Madrid.


Social effectiveness and timeliness. Evaluating the ripple effects of the activities programmed,
their impact on the target population and the value added they provide, in accordance with the social
and cultural needs of the day, and periodically reviewing the progress of these needs with a view of
establishing new priorities and objectives.


Support the social insertion and labour-market integration of disadvantaged groups, those
suffering disabilities and chronic illness, and their families; those in situations of social inequality or
at risk of social exclusion, and their families; and developing countries.

Extend assistance to the elderly and young children, with particular attention to the most
vulnerable sections like the chronically or terminally ill or the disabled.

Contribute to the integrated training of young people and support their labour-market
integration, with particular attention to occupational training and dedicated skills centres for the

Contribute to the recruitment of volunteers, social and civic awareness campaigns and
humanitarian action, in particular, fostering humanitarian values among children and young people
and encouraging them to respect the elderly and dependent collectives.

Defend and protect nature and the environment, promoting the educational values of respect and
understanding for the world around us.

Take cultural activities to a broader public including less favoured sections of society, with the
focus on music, the plastic arts and the humanities, and encourage the emergence of new creative

Contribute to the conservation of Spain’s historical heritage, by carrying out restoration projects
in concert with public institutions.

Enrich musical activity in Spain, as well as recovering and disseminating unpublished or less well-
known portions of our musical heritage.

Organise publishing projects and exhibitions and, generally, engage in cultural promotion activities
separately or in partnership with other institutions.


Offer scholarships to students so they can complete their postgraduate training.

Support supplementary teaching and research programmes at Madrid’s public universities.

Collaborate with institutions of acknowledged repute on research projects staffed by young
Spanish researchers.


Caja Madrid Obra Social directly manages the following programmes:

Obra Social spent a total of 116.5 million on the above programmes in 2005, breaking down 51% for
welfare activities, 31% for education and training and 18% for cultural and environmental activities,
as our next chart shows:



A new kind of society is emerging in which the elderly will occupy a central place, by weight of numbers
and due to the needs attendant on a longer and longer average lifespan.

Obra Social Caja Madrid has made the voluntary commitment to
be where we are most needed, putting our organisation’s skills
and resources at the service of society at large, and of the older
population in particular.

Through in-house and partnership projects, Obra Social Caja
Madrid seeks to set in train a new dimension of care and support
initiatives addressing the needs and demands of the elderly
collective.                                                                 Carlos Rodríguez Zapata
                                                                             Branch 1933 - Madrid

Projects in the year spanned health promotion and healthy ageing,
learning opportunities, community involvement of elderly people, prevention of dependence and
provision of quality care when the need arises, research into ageing and leisure activities, with the
accent on quality and innovation.

A total of 18.5 million was spent in 2005 on improving the quality of life of the elderly and their
families. Actions in this terrain are mainly channelled through two annual calls for projects:

   Call for projects in elderly care.

   Call for projects dealing with Alzheimer’s, Parkinson’s and other neurodegenerative pathologies
   associated with the ageing process.


The large increase in average life expectancy has ushered in a new era in our societies. Obra Social
Caja Madrid is working to make this lifestage a healthy and an enriching one.

Funding in the year went to 81 projects, directly benefiting 166,853 people and indirectly benefiting
180,957 more.


Contents centred on projects to promote an elderly lifestyle conducive to good physical and mental
health ("growing old gracefully"), greater social involvement, community solidarity by and for the elderly,
the improvement of intergenerational and family relations and the image of old people in society,
volunteer projects, mutual support resources and the training of non professional carers.

The call also targets projects for the construction, refurbishment or enlargement of old people's homes
and day centres, to improve the quality of life of the most vulnerable of our older citizens, those in a
situation of dependence.


Neurodegenerative diseases are characterised by the progressive and irreversible loss of neurons
in specific areas of the brain. The principle risk factor in most cases is increasing age, and the
foreseeable increase in life expectancy over coming years stands to double the number of sufferers.

For this reason, the projects most prized in this Obra Social call are those that organise short breaks
for family carers, provide training to volunteers and relatives, support self-help groups, favour
rehabilitation in day or residential centres and support the acquisition or construction and fitting-out
of day centres or homes.


The 75 projects funded under this heading in 2005 benefitted 4,018 people directly, breaking down
3,220 Alzheimer's sufferers and their families, 599 Parkinson's sufferers and their families and 199
people affected by other neurodegenerative disorders.


In addition to the funding granted through its calls, Obra Social Caja Madrid supported 24 one-off
projects benefitting 2,304,645 persons.

Alzheimer’s is a neurodegenerative disease that attacks the brain, producing a grave and irreversible
deterioration in cognitive, conductive and motor functions. It affects mainly people aged over 65.

As well as contributing to projects to help Alzheimer’s sufferers through its annual funding call, Obra
Social Caja Madrid promotes and supports other types of activities that address the disease and its
implications. Of particular note is its support to the research being conducted at the “Severo Ochoa
Molecular Biology Centre”, whose main focus is on the causes of sporadic Alzheimer’s disease and
design of therapeutic strategies for its prevention.

Obra Social has also been involved in a number of publications, conferences, advisory forums, etc.
seeking to inform, educate and raise public awareness on the issue. One such initiative was a
collection of practical handbooks on how to cope with Alzheimer’s.


Members of the public can also get an informed answer to their queries about Alzheimer’s by
contacting the “Obra Social Caja Madrid Experts’ Centre" available online. There, they will find
guidance on all aspects relating to the disease, ranging from care and treatment to legal and
employment matters.

Active and healthy ageing
Obra Social Caja Madrid promotes and funds projects aimed at improving the health, wellbeing and
independence of elderly people, and keeping them actively involved in the world around them.

Among 2005 initiatives were the "Coffee time, Tuesday" lecture series, with experts in different areas
giving advice and tips on healthy ageing; and a one-of-a-kind project to recruit elderly volunteers as
museum and cathedral guides. First the volunteers are trained for their guide mission, then on the
particular features of the museum or cathedral in which they are going to specialise; a knowledge
they can then pass on to groups of visitors.

The results of the "Growing Old Wisely, Preventing Dependence" study had their public presentation
in La Casa Encendida: a collection of ten educational booklets on diverse subjects whose aim is to
inform elderly people about the habits most conducive to active and healthy ageing.

Finally, Obra Social Caja Madrid has launched an online scheme, Proyéctate, directed at individuals
and non profit organisations, with awards for the best ideas and projects to recognise the contribution
of the elderly to today’s society.

Care centres
Among Obra Social Caja Madrid’s priorities is to provide social and health assistance for elderly people
in situations of dependence when they can no longer fend for themselves and need specialised care.
In 2005, funding was provided for the construction, refurbishment, adaptation and fitting-out of 56 day
centres offering specialist help to dependent seniors.


The 41 Spaces for the Elderly distributed throughout the Madrid, Castilla-La Mancha and Ceuta
regions are all about encouraging older people to lead a healthier, more active life. These centres,
which were used in the year by 101,639 beneficiaries, organise a Social and Cultural Programme

which seeks to maximise the human and technical quality of service provision to the elderly. The idea
is for users themselves to lead the organisation of these centres by becoming volunteer associates.
The 3,171 activities carried out in 2005 spanned such varied topics as preventive health, citizenship,
current affairs and new technologies, plastic arts and culture, leisure and pastimes.


Obra Social Caja Madrid is among the Spanish organisations devoting most efforts and resources to
the constituency of dependent persons. A total of 27.1 million was spent in 2005 on programmes,
projects, centres and social actions whose goal is to defend the principle of equal opportunities for those
suffering chronic illnesses or single or multiple disabilities, and those at risk of social exclusion.

Obra Social Caja Madrid channels project aid primarily through annual calls in the following areas:

   Social inclusion of immigrants.

   Assistance for the disabled and their families.

   Employment opportunity projects for disabled people and groups
  suffering inequality or at risk of social exclusion.

   Assistance for those suffering inequalities or at risk of social
  exclusion, and their families.


Obra Social Caja Madrid works to combat the adverse effects of migratory change like situations of
hardship or social exclusion, problems of cultural adaptation and deficient access to training and
education, through a series of projects to favour the integration and self-reliance of the immigrant
populations most at risk.

Special attention goes to women and children as the most vulnerable collectives within these groups.
A total of 52 projects were supported providing direct benefits to 45,474 people and indirect benefits
to 87,591 more.

Initiatives funded under the call include educational projects for
adults and children (literacy, language, help with school studies,
and social skills), leisure, free time and social life projects for
children and young people, and information and guidance
schemes. In addition, funding has been provided for projects to
equip and adapt or improve immigrant support venues; information
and guidance centres, occupational workshops, training centres,
crèches for the children of working mothers, or centres which look
after unaccompanied children.


Employment is vital to the full integration of the individual, especially among vulnerable collectives like
the disabled and other socially disadvantaged groups or persons at risk. Obra Social Caja Madrid
accordingly devotes one of its annual calls to promoting job opportunities for those most at risk of
labour market exclusion.

The 68 projects funded through this call in 2005 contributed to the labour market insertion of 7,102
people and the creation of 1,796 jobs, with a further 31,193 people benefitting indirectly.


74% of projects involved the creation of Special Employment Centres (SECs), other companies where
at least 50% of the workforce are disabled or suffering inequality or risk of social exclusion, and Social
Integration and/or Social Initiative Cooperatives; the construction, refurbishment, fitting-out or acquisition
of SEC or cooperative premises; and the creation of new posts for disabled people at already
operational SECs and cooperatives. Their focus, in other words, is on creating new jobs in the here and

The other 26% are schemes devoted to training for work programmes or training courses for SEC
employees, aimed at developing their skills or preparing them for ordinary employment; a transition
which, in most cases, requires considerable help and guidance.


By supporting aid projects for disabled people and their families, including those with physical,
intellectual, organic and sensorial impairment, Obra Social Caja Madrid seeks to favour their social
integration and equality of opportunity. This call helped 270,400 people directly and a further 578,084
indirectly through the 177 projects financed.


Activities supported include early care programmes; prevention, rehabilitation and training; family
guidance and support and breaks for carers; recruitment of voluntary carers; and finally sports, leisure
and social life. Infrastructure projects were mainly aimed at people with mental disability, followed by
those with multiple disabilities, and consisted of the construction, acquisition, enlargement,
refurbishment or fitting-out of resource centres, homes, day centres, sheltered housing, shared housing
or rehabilitation centres, in addition to occupational workshops and training centres.


Actions under this head are to combat the exclusion of people suffering serious problems of social
insertion, and help them gain greater control over their own lives. Specifically, Obra Social Caja Madrid
supports projects dealing with children and young people at social risk, as well as alcoholics, drug
addicts and ex drug addicts, HIV-positive or AIDS patients, prisoners and ex prisoners, prostitutes
and the homeless.

The 143 projects funded have improved the quality of life of 119,988 persons, while indirectly
benefitting 184,609 more.

The majority, around 80%, fall within the categories of prevention, rehabilitation and training actions,
guidance and support for affected families, sports, leisure and social activities, and the recruitment of

voluntary carers. A number of infrastructure projects were also financed, involving the fitting-out and
construction, refurbishment or adaptation of resource centres and shelters, day centres, sheltered
housing, shared housing or rehabilitation centres.


In addition to the above annual calls, Obra Social Caja Madrid has supported 102 one-off programmes
aimed at improving the quality of life of vulnerable groups, including the disabled, the mentally or
chronically ill and those at risk of social exclusion. A total of 1,864,115 people benefited from these
programmes in 2005. We can highlight:

Employment Opportunities for Disadvantaged Groups
Obra Social Caja Madrid has launched a proprietary scheme to promote assisted employment. The
“Caja Madrid Assisted Employment” scheme is implemented through the federations of non profit
organisations working to favour the labour-market insertion of less employable groups.

The goal is to get more people suffering disabilities or social disadvantages into ordinary employment,
by providing them with on-the-job training and mentoring during the initial adaptation period, and
follow-up services throughout their working lives. Individuals from target collectives thus get the chance

to perform a job under the same conditions as any other worker for a similar rate of pay. The scheme
found employment for around 89 disabled people in 2005, and will work to provide more jobs in future
years while maintaining those already created.

Social Care Programme for the Physically Disabled
Among the projects supported by Obra Social Caja Madrid under this programme we can single out:
construction of an integrated care centre, with 4,068 m2 floorspace, for persons suffering grave
physical disabilities; the upkeep of 90 places at day centres for the severely disabled; the building of
a home and day centre in Getafe, Madrid, with capacity for 50 residents and 70 outpatients. Also
funded under the programme were the building of a permanent, temporary and emergency home in
the Madrid area for people suffering spinal injuries, with 46 individual and 14 double rooms, and a
rehabilitation cum day centre for multiple sclerosis sufferers, providing physiotherapy, speech and
occupational therapy and other services, with capacity for 60 day care users and over 270 outpatients.

Social Care Programme for the Mentally Disabled
Obra Social has published four good practice guides for professionals working with autism sufferers,
covering areas like early detection, diagnosis, research and treatment.

People with intellectual disabilities can now attend IT training workshops in La Casa Encendida to
help prepare them for the world of work. The course focuses on basic computer skills, making the
best use of common software programmes, familiarising students with new applications and promoting
the social integration of people with Down Syndrome.

Another of the year’s projects was the construction a centre for adult autism sufferers in Coslada
(Madrid) with 32 residential and 28 day centre places.

Social Care Programme for Persons with Chronic Mental Illness
Mindful of the unmet social demand in this area, Obra Social Caja Madrid has helped with a
programme in which people with chronic mental disease are cared for in specialist centres, as an
effective alternative to their internment in psychiatric hospitals. By this means patients who have no
family or whose families cannot cope are able to enjoy a more normal life.

Specifically, Obra Social has financed 76 residential places for patients who are not in the severe
stage of their disease.

Finance was also provided for the construction of new mini residences, psychosocial rehabilitation
centres and occupational therapy centres for the mentally ill, located in Alcobendas, Getafe, San
Fernando de Henares and Madrid.

Prevention of Drug Addiction
Obra Social backs initiatives to prevent drug addiction and to help recovering addicts. Among the
former is the “Sinesio” project directed at secondary school children, and consisting of a CD-Rom
game which puts across an anti-drug message in an attractive format.

On the latter front, we have supported two help schemes for people with addiction problems,
providing a social integration package that includes outreach, healthcare, advisory and information

Recruitment of Voluntary Carers
La Casa Encendida is home to a “Volunteer Information Point” providing a face-to-face advice and
referral service to people and institutions enquiring about voluntary work in the Madrid Region.
Support has also gone to magazine and CD publications about voluntary working with dependent
persons and their families.

Information, Awareness and Prevention Programmes
Obra Social Caja Madrid has supported numerous actions in favour of dependent persons and their
families, including publications, guidance and advisory services and sensitisation and prevention
projects to protect, enlighten and inform.

Caja Madrid Social Research Awards
This award scheme seeks to examine and respond to society’s felt needs by promoting social
research and its practical application, testing and using innovative analysis tools and intervention

A panel made up of eminent professionals with a history of social engagement assess the entries
submitted from standpoints such as innovativeness, scientific quality, and potential benefit, along with
their contribution to our knowledge of social realities and to the improvement of direct social action.
The first of the three projects selected in 2005, with the elderly as its subject matter, will be published
as part of Caja Madrid’s Social Research Collection.

La Casa Encendida
The centre’s social outreach training programme takes a practical approach to all the areas covered:
working with immigrants and women at risk of social exclusion, training of Spanish as a second
language teachers, NGOs and volunteer workers, etc. Meantime, two years of ethnographic research
into the most excluded groups in the Madrid Region culminated in the project “Madrid: four worlds”.
The marginalisation and exclusion uncovered are also dealt with in the works of different artists who
have collaborated in the scheme. Finally, the centre hosted a “Dramatic Arts and Disability” season,
showcasing the work of professional theatre companies with disabled members as part of a broader
campaign for disabled rights and equal opportunities.


Obra Social Caja Madrid wants to contribute to the sustainable
progress of developing countries by joining with them to overcome
the many barriers they face. It accordingly supports improvement
projects run by non governmental organisations working on the
ground, with priority to those that seek the active involvement of local

The 2005 call for development cooperation projects was resourced with 2.6 million.


Obra Social supports cooperation projects in geographical areas lacking the material resources to
combat the extreme poverty that exists within their bounds. Literacy campaigns, libraries, educational
assistance, promotion of professional training and economic initiatives, adult education, construction
of sanitation systems, safe water supplies, health centres, education in hygiene, preventive campaigns,
training of health agents and housing construction are among the initiatives taken to benefit the poorest
segments of the population with priority attention to vulnerable groups such as women and children.

The 28 projects funded through the 2005 call, of varying scale and structure, addressed primary
health, educational and housing needs in five countries in Central America and the Caribbean; namely:
Nicaragua, Guatemala, Honduras, the Dominican Republic and El Salvador, with around 40,000 direct
and 100,200 indirect beneficiaries.

There follows a brief outline of projects in each country:

Construction and fitting-out of a special education centre and literacy workshop reaching 75 children
and young people living in a rural area; an integrated education programme for the rehabilitation and
social and labour-market reinsertion of 128 young land workers, and provision of psychological and
social assistance to 150 women in the Matagalpa region who have been victims of gender violence.

Further, over 1,400 inner city youngsters will get the chance to attend occupational training workshops
after the enlargement works concluded in the year. Finally, a residential care centre will be built in
Nindirí for 20 children in need, and over 320 inhabitants of rural communities will be rehoused under
more suitable health and hygiene conditions.

Projects are underway to build wells, safe drinking water systems, mains water supplies and storage
tanks for some 5,500 people in rural communities of Champerico and San Marcos, who will also
benefit from improvements in their home hygiene conditions. Others focus on improving primary
healthcare provision to mothers and children, through the recruitment and training of midwives and
health agents, the purchase of reproductive health equipment and diagnostic kits, and other aids.

Projects under this head have to date benefited over 1,200 women and children in marginal periurban

Primary health campaigns in Honduras have involved the set-up of communal first aid and pharmacy
posts, construction of health centres and latrines, training of nurses, midwives and health assistants

and the identification and care of pregnant women at risk and sick children in various rural areas,
with over 20,000 beneficiaries. Aid was also provided for the building and equipping of three child
development centres to attend over 1,500 children living in extreme poverty in 20 rural communities;
and will shortly go to a new retraining centre for 2,300 land labourers and skilled workers in the
country’s forestry industry. Finally, 36 rural families will be offered new improved accommodation.

República Dominicana
Some 1,000 children and young people in marginal periurban areas are receiving educational and
healthcare assistance under funded projects, while support has also gone to early childhood education
and community health networks. In rural areas, over 650 women will benefit from a housing
improvement scheme that also includes the construction of hurricane shelters. Other initiatives focus
on the provision of safe drinking water and the building of wells and latrines with septic tanks, and a
training programme in preventive health and environmental hygiene that will reach around 1,000 rural

El Salvador
Construction of 60 latrines and 60 kitchens, and basic sanitation systems to supply safe drinking
water to over 2,000 people in rural communities. A total of 35 homes are also being built to offer
improved accommodation to 175 land workers.


The Emergency Aid Plan is a necessary supplement to the development cooperation programme. It
comprises a universal, integrated aid package delivering immediate and effective help with the rescue
and evacuation of persons, provision of drinking water and sanitation, and basic nutritional, health and
food safety in disasters or situations of humanitarian crisis arising in whatever part of the globe, any time
in the year, leaving the population exposed to serious hardship.

Partnership agreements have been signed with the Spanish arms of Firefighters without Borders,
Action against Hunger and Doctors without Borders.

   Bomberos Unidos sin Fronteras (BUSF), in conjunction with Obra Social Caja Madrid, has carried
   out tasks of rescue, rubble-clearing and evacuation, and provided drinking water, food and
   medicines, in addition to emergency logistics support and the start-up of emergency hospitals in

   Pakistan, Guatemala and countries in SE Asia. Around 155 lives were saved due to these rescue
   efforts, with a further 10,328 people benefitting.

   Acción contra el Hambre (AcH), with the support of Obra Social, was present during humanitarian
   crises in Sri Lanka and Indonesia, Niger and Malawi. Actions in these countries were directed at
   covering basic nutritional, health and food safety needs and providing water and sanitation, sanitary
   care, medical training and hygiene education. Aid in the year reached 411,700 persons in
   emergency situations.

   Collaboration between Obra Social and Médicos Sin Fronteras Spain (MSF-E) focused on the
   start-up of medical assistance units, preventive care, health education, vaccination campaigns,
   eradication of epidemics, famine relief, emergency care for refugees and other vital tasks during
   humanitarian emergencies in countries like Angola, Guatemala, Guinea Bissau, Morocco, Niger,
   Pakistan, Sudan, Tanzania and Zimbabwe, with help reaching 229,304 persons.


Obra Social Caja Madrid works on two separate fronts to further
young people’s educational development. Firstly, through its own
centres providing a standard school curriculum with the accent on
quality education in a caring and stimulating environment. Secondly,
through the supplementary education offered to children and young
people through a diversity of projects.

The objective is to encourage young people to think for themselves and take initiatives, while
developing the social skills and values that will turn them into well-rounded individuals. All education
and training projects are guided by the strictest quality standards, and subject to close evaluation on
completion so we can improve and innovate in subsequent rounds.

The education and training programme was funded with a total of 37.6 million in 2005.


Obra Social’s five early childhood education centres cater for 1,026 children aged 4 to 6. Four of

these centres are in Madrid capital and the other in San Sebastián de los Reyes in the Madrid Region.
Centres are run according to a quality plan especially adapted to younger age groups, which calls
for ongoing staff training and the continuous assessment of study and other programmes. Children
receive personalised attention while teachers, educators and each centre’s psychologist, speech
therapist, and doctor work closely as a team to develop students to the maximum of their ability, with
special attention to those from less favoured social backgrounds.

Obra Social Caja Madrid also supports the training of new generations of teaching professionals
under agreements with universities and training centres. In 2005, 29 young education students
completed their teaching practice at these centres.


Training programmes at Obra Social centres must embrace a wide
diversity of students from differing cultural and social backgrounds.

All our centres are equipped with the professional, methodological
and material resources that students need to help them adapt and
give the best of themselves. The idea is to provide young people with
integrated training, rich in knowledge and values and geared to their
successful labour-market insertion.

Support to young people's education and training is channelled through the seven centres run by
Obra Social Caja Madrid (curricular, occupational and supplementary training), attended in the year
by 2,725 students.

A priority objective for Occupational Training centres is to help students’ transition to the world of
work. Hence the partnership agreements run with 343 companies, which in 2005 offered work
experience placements to 430 young people, with a post-training hiring rate of 85%.

Finally, as part of the Training for Work Plan promoted by the National Employment Institute (INEM),
195 unemployed young people received instruction with a choice of 14 separate courses. Among the
specialisations covered in 2005 were gardening, graphic design, car mechanics and clerical work.



The Ponce de León centre offers a standard education curriculum with integration units and special
needs classes for the deaf and hard of hearing. Its objective as an ordinary education centre is to
provide the support and individualised care that allows students to develop their abilities to the full.
On the special needs side, priority goes to the personal and social adaptation of disabled students,
to help them lead a normal life.

Ponce de León also runs a special employment centre for the graphic arts, focused on building the
professional and social skills of disabled trainees.

The employment centre can cater for 30 trainees at a time. Its dedicated multiprofessional team works
to improve and normalise their relations with the world around them and, in some cases, to find a job
suited to their condition.


Obra Social Caja Madrid runs 11 language schools offering Spanish and English courses for
immigrants. English courses attracted 2,917 pupils in 2005, an increase of 17% over the previous
year. The number of students sitting the University of Cambridge’s UCLES 2005 exam also rose in
the year to 893.

The underlying goal of Spanish for immigrants courses is to help towards the social integration of this
collective. Schools in Daimiel and Alcalá de Henares piloted the programme, which will now be
exported to other language learning spaces.


The Obra Social library network now extends to 39 Spaces for reading. Centres are working to get
themselves better known in their towns and neighbourhoods through an attractive cultural programme
embracing book readings, debates and other community events.

In all, the Obra Social Caja Madrid library network has 323,878 members and a stock of 540,987
publications (534,068 on paper and 6,919 in electronic media). A total of 1,102,919 books and digital


documents were borrowed or consulted in 2005, while centres played host to 717 cultural activities
(storytelling and workshop sessions) attended by 17,955 people.

Obra Social libraries ran their own cultural programme to commemorate the fourth centenary of the
publication of “Don Quixote of La Mancha”, with activities including public readings, round tables,
games and competitions and creative writing workshops.

Exam times were not forgotten. Libraries extended their opening hours over 8 weekends (in January
and June), with 56,906 students taking up the opportunity.

In La Casa Encendida, the Biblioteca Joven for young readers organised 251 activities attended by
over 136,130 users. Biblioteca Jóven was also the venue for monthly “Meet the Author” sessions,
aimed at encouraging the reading habit. Other rooms in the centre were opened for study during
university exam times.


Obra Social Caja Madrid operates three main programmes for the school-age public. The first is a
debating programme to instil the values of dialogue and consensus building; the second exploits the
facility of Internet to take educational projects into homes and public centres at any time of the day
or night; and finally, a nationwide grant scheme funds training experiences that complement children’s
formal education and further their social and employment integration.

Of the 36 projects realised in 2005, we can single out:

Eurobecas. 200 grants were awarded for students and holders of occupational training diplomas to
complete work experience placements lasting seven weeks in companies in the UK and Ireland.

Debating programmes
Aulaforo. Classroom debate programme aimed at encouraging an interest in current affairs, and
developing discussion and consensus skills. The target audience comprises secondary school children
aged from 14 to 17. In 2005, the scheme was extended from Extremadura to the Galicia region.


Mock European Parliament. Aimed at encouraging dialogue among young people aged 16 to 17.
Students take part in parliamentary sessions in accordance with European Parliament protocol. This
programme combines training in values with the development of key skills like teamwork, public
speaking, etc, and the forging of a European identity. Participants in 2005 were drawn from the regions
of Andalusia, Aragón, Asturias, Cantabria, Castilla-León, Galicia, Madrid, Murcia and Valencia.

Internet programmes
Express and Compress. Narrative and illustration prize to stimulate interest in writing, drawing,
photography, etc. All entrants have to do is produce a mini story on any subject they choose, which
they can then present under one of the two categories: age 14-15 or age 16-18.

The Spanish Constitution. Game with a format similar to "trivial pursuit", in which a mascot representing
the Spanish Constitution asks children questions about the articles and the democratic and citizenship
values enshrined in its text. The competition is open to school children aged from 12 to 18 in the
categories 12-15 and 16-18.

The Universal Adventure of Human Rights. An educational project run off the Obra Social Caja Madrid
website, where contestants test their knowledge and skills in relation to the Universal Declaration of
Human Rights. Designed for school children aged from 6 to 12.


The cultural area, which in 2005 was assigned 20.1 million,
takes in both activities in Obra Social centres and those
organised elsewhere. Its main concerns are to bring cultural
values and knowledge to less favoured collectives, and to
support young people engaging in cultural production as plastic
artists, writers, film makers, etc.

The 3,485 events organised in 2005, of an educational, cultural or community work nature, reached
an audience of 4,447,829 people.


Activities in these spaces sought to attract in new kinds of public, to support the work of emerging

artists and to initiate children and young people in different forms of artistic expression, in line with the
social agenda of the day. The 2005 programming of Spaces for Art and Culture mirrored the priority
areas of Obra Social itself, i.e., culture, social solidarity, education and the environment.

Special attention was devoted to families and school children, on the reasoning that this is where the
foundations can be laid for a wider future understanding at both the cultural and personal levels.

Exhibition halls
The 9 Spaces for Art hosted 95 exhibitions with a total of 140,607 visitors. The objectives set for 2005
were: to inculcate respect for and love of art; to facilitate a space for learning, participation and exchange
of experiences; to develop the critical spirit; to explore different ways of bringing art in all its manifestations
closer to the public; and to showcase new talent.

In the Barcelona cultural centre, 75 paintings by Catalan painter Angels Planells traced the artist’s trajectory
between 1929 and 1981. Also on show were photographs by Joan Colom, winner of the National
Photography Prize 2002, whose “Photographs of Barcelona 1958-1964” provide a historical and critical
study of this phase of the city’s development.

The goal of nurturing young creative talent was addressed by Andén 10. Heterónimos. Los otros de
uno mismo, presenting plastic and audiovisual works by 10 Latin American artists. Finally, the Corner
project featured the work of three artists displayed in shop windows, as an alternative to the
conventional exhibition space.

Concert halls
The year’s programme comprised 620 cultural activities in the four Obra Social Spaces for Culture and
collaborating centres, with the attendance of 80,435 spectators. Among the goals pursued were to
stimulate interaction between performers and public, to encourage the theatre and concert going
habit, and to bring along young talent.

The Espai Cultural in Barcelona proposed a programme of music, film, theatre and conference
events, grouped in most cases into thematic seasons. Among the highlights: Pocket Cabaret, a
tribute to the genre in mini format; Artists talk about Music, in which well known personalities
discuss their chosen music which is then performed by a live group; the 5th Season of Latin
American Documentaries, a sample of recent film documentaries dealing with social issues; and

Literary Itineraries, a series of guided tours around areas of Barcelona tracing the action of a well
known novel.

La Casa Encendida
The 1,762 cultural, educational, welfare and environmental activities organised in La Casa Encendida
in 2005 attracted a public of 524,244 persons. La Casa Encendida acts as a meeting place for the
worlds of culture, education, environmental action and social solidarity. Its facilities are fully equipped
for disabled access, while many events invite the involvement of people with physical, mental or
sensorial impairment.

   Exhibitions. Organisation of the Luis Valtueña International Photography Prize and, among the
   centre’s own exhibitions; interventions by Héctor Zamora and Jorge Méndez Blake coinciding with
   Mexico’s year as guest country at international art fair ARCO; the show “Juan Muñoz. La voz sola.
   Obras para la radio”; and “Mientras tanto, de Iván Zulueta” featuring two series of practically
   unpublished works.

   Theatre. “Festival Escena Contemporánea” showcasing contemporary plays, and the award
   scheme for women directors “Certamen para directoras de escena”. Young dramatists also got
   the opportunity to stage their works, like Juan Navarro and Ignasi Duarte with "Fiestas
   Populares". The third edition of “Artes Escénicas y discapacidad” again featured plays with
   disabled performers among the cast.

   Audiovisual creation. Contemporary cinema and the latest in experimental video. Retrospective
   seasons were again devoted to contemporary film makers, like Canadian director Guy Maddin or
   Spain’s Iván Zulueta.

   Literature and thought. Focusing on workshops and seminars, as creative formats inviting the
   maximum participation. The results were then staged as poetry concerts or theatrical monologues.
   The rest of the programme was mainly taken up by book presentations and talks.


The 2005 cultural programme sought to attend the needs of users while "sowing the seeds of culture"
where they have most opportunity to grow; namely, among school children and young people in

general. Activities spanned all major areas of cultural output: the plastic arts, music, theatre, literature
and film.

Plastic arts
   Generaciones. Caja Madrid Art Awards and Grants recognises and promotes the work of young
   creators by a programme of grants, subsidies and acquisitions. A total of 850 works were presented
   for this year’s awards and 361 for grants.

   “Guía Caja Madrid para el arte ahora mismo”. A publication for the non initiated explaining the
   main ideas and currents encoded in contemporary art creation.

   Inéditos 2005. Call for exhibition proposals in emerging arts. An award scheme designed to give
   young curators an entrée to the professional art world. Over 70 projects were submitted in the
   2005 edition.

   Poster Awards 2005. This award scheme for poster designers welcomed 399 entrants on the year’s
   chosen theme: the fact that a large part of the world’s population is denied a basic human right, the
   right to education.

   Los Géneros. Historias diferidas. The second exhibition in the “Los Géneros” cycle, held in the
   Exhibition Rooms in Alcalá 31, featured the work of nine young artists representing the main currents
   in contemporary historical painting.

   Don Quixote at a photo click. An online project directed at all professional and amateur
   photographers working in the digital format. Participants were asked to send a photo per day over
   forty-two days, relating to any of four selected themes drawn from Don Quixote. Two photographs
   were chosen each day for inclusion in the closing exhibition on the Obra Social website

   Entra en escena, dramatic arts workshops and theatre competition for schools. This programme
   for secondary school students concluded with a total of 50 performances given to a combined


  public of over 8,000. A jury of theatre professionals attended and judged the short-listed works,
  selecting a number of students to take part in a youth theatre workshop, held this year in Buitrago
  de Lozoya over four days in July.

  Women Directors Competition. Obra Social Caja Madrid collaborates in this scheme, which has
  grown into a major annual encounter for women directors working in Spain. A total of 81 plays
  were entered for the 2005 edition, and the three winning entries were staged in May in La Casa

  Tras la música de raíz. La Case Encendida hosted 48 concerts in this Spanish popular music
  cycle, with 8,200 pupils in attendance. The programme was also taken on tour, giving 12,000
  school children in Andalusia (Almería, Granada, Jaén, Cádiz and Malaga), Castellón, Alicante and
  Murcia the opportunity to hear the quartet play a selection of traditional tunes. It also returned to
  Galicia, where it performed to 5,000 pupils from the region's four provinces.

  Musical encounters. An introduction to musical language for the general public, so they can learn
  to enjoy music in its fullest dimension. The concepts are illustrated by soloists and groups who,
  after years of training, have chosen music as the main motor of them present and future personal

  Caja Madrid Narrative and Essay Awards. Over two hundred entries were received for this year's
  edition, 149 in the Narrative and 55 in the Essay categories. The jury’s decision and presentation
  of the winning entries will take place in 2006.

  Ninth edition of Poetas en Vivo. A gift for any lover of poetry; the opportunity to hear poems read
  aloud by their authors. Ten reading sessions were held in the year with the participation of various

  Caja Madrid short film competition 2005. Of the 650 films in this year’s edition, 122 were entered
  for the new section, re-cortad@s, for shorts of no more than 3 minutes’ length. The winning films
  were screened in La Casa Encendida.

Culture and social solidarity
This section takes in cultural programmes designed and organised to reach collectives that tend to
get by-passed by the mainstream cultural offering, in particular those suffering disabilities or elderly
people with problems of mobility.

   ¡Arriba el telón, abajo las barreras! This programme offers training courses to staff at social and
   occupational training centres in the Madrid Region, so they can organise theatre workshops and
   activities for their own students.

   Juan sin miedo. A project by theatre company El Globo Rojo performed in 11 special education
   centres in the Madrid region.

   Coffee, Chat and Cinema. A programme for the elderly that combines a film screening with other
   social and educational activities, and the opportunity for discussion and debate.

   Cultura para nuestros mayores. An umbrella name for the concerts and conferences given in old
   people’s homes and day centres throughout Spain. Thirty round table discussions were organised
   at different points of Castilla y León, and over 20 concerts in Andalusia.

   Espacios para el respeto. A new programme in Alcalá Meco Prison that seeks to introduce art into
   the physical environment with the involvement of inmates. Among its goals is to promote a spirit
   of companionship.


Fundación Caja Madrid, in keeping with its nationwide dimension, backs interventions whose effects
radiate out to large areas of Spanish society and cultural life. Its main programmes are as follows:

Fundación Caja Madrid spent a total of 44.7 million on the above programmes in the year 2005,
with a breakdown as follows:



Fundación Caja Madrid has devoted over 121
million to this programme between 1991, the
year of its creation, and 2005. This makes it the
private non-profit institution putting most
resources into the conservation of Spain’s
historical heritage.

The rollout of this programme is governed by agreements between Fundación Caja Madrid and the
different institutions with which it collaborates. It is organised into two blocks: works carried out in
conjunction with public institutions in the Madrid Region and works carried out elsewhere in Spain.

When a given project ends, the Fundación Caja Madrid adds a new publication to its “Restored
Monuments” collection, including a technical account of the work undertaken, as well as organising
concerts and other activities to attract new visitors, in partnership with the Foundation music

Past and present restoration projects are permanently on view at
Fundación Caja Madrid regards the regular maintenance of these monuments as a vital part of heritage
conservation. At times a simple check-up (going over roofs, pipes, woodwork etc.) can prevent costly
and complex interventions further ahead.


In collaboration with Madrid Regional Government: Approved
in the year were restoration projects on the greenhouse pavilion
and Cavanilles school in collaboration with the Spanish Scientific
Research Council (CSIC), while work began on the Church of San
Juan de la Penitencia in Alcalá de Henares in collaboration with
the “Asociación para la recuperación del Convento e Iglesia de las
Clarisas de San Juan de la Penitencia”.



Restoration works outside Madrid: As regards works outside Madrid, a distinction must also be
drawn between works the Foundation supports financially – for instance, those carried out on the
Monastery of San Pedro de Roda or the Segovia Aqueduct – and those where the Programme takes
on full responsibility for their management and execution. In these cases, additional work goes into
informing society about the monument itself and the nature of the restoration work through a project
communication plan.


A good example is the restoration carried out on the facade of the Church of San Pablo in Valladolid.
The corresponding communication plan included the building of a temporary interpretation centre
outside the monument, from which the public could visit work platforms and watch restorer teams in

Also, the work in progress is relayed to an on-site monitor in view of the public, and broadcast on the
Foundation’s website.


Fundación Caja Madrid’s music programme is the largest
carried out by any private non profit organisation in Spain. Its
prime objective is none other than to promote and consolidate
a series of projects that enrich the country’s musical panorama,
while recovering and disseminating parts of our musical
heritage that have hereto been unpublished or largely ignored.

The music programme takes in three main categories that are
mutually related: concert seasons, education and research and musicology and discographic


The aim of this programme is to break down the psychological barriers between certain sections of
society and classical music, so it can be better understood and enjoyed by all.

In 2005, Fundación Caja Madrid organised or co-produced more than 100 musical activities, grouped
into cycles, in Madrid and other Spanish regions, with around 100,000 spectators and an average
occupancy of 95%. They were:

   Sacred Music in Spanish Cathedrals (20 concerts).

   Spanish music cycle “Los siglos de Oro (16 concerts).


   8th Chamber Music Season in the National Concert Hall in Madrid: (24 concerts in 2005, of which
   16 corresponded to the 2004-2005 season and 8 to the 2005-2006 season).

   Lied cycle in the Teatro de la Zarzuela, Madrid: (5 recitals in 2005 out of the 9 programmed in
   2004-2005 [10th edition], plus 3 in the closing quarter belonging to the 2005-2006 season).

   “Music and Heritage” (9 concerts).

   “Music of Today” season: (13 concerts in 2005 of the 14 corresponding to the 2004-2005 season).

   Fundación Caja Madrid extraordinary concerts (3 concerts).

   44th Cuenca Religious Music Week (22 concerts).

   Sponsorship of the 2005-2006 season of the Teatro Real, Madrid.

   Caja Madrid Symphony Season (1 concert in 2005 of the 4 making up the 2005-2006 season).

   Great Voices in the Teatro Real (2 recitals in 2005 of the 5 in the 2005-2006 season).

The Fundación's 2005 music programme reached numerous points in Spain’s geography, including,
within the Madrid Region, Madrid capital, El Pardo, San Lorenzo de El Escorial, Aranjuez and Alcalá
de Henares; and beyond it, Tui (Pontevedra), La Coruña, Oviedo, Santander, Bilbao, San Sebastián,
Vitoria, Zaragoza, Huesca, Teruel, Lleida, Tarragona, Barcelona, Castellón, Valencia, Gandía, Orihuela,
Alicante, Cádiz, Cuenca, Albacete, Ciudad Real, Toledo, Talavera de la Reina and Segovia.



This year brought the 44th edition of Cuenca Religious Music Week, under the musical and artistic
management of Fundación Caja Madrid since 2001. A total of 22 concerts were held on this occasion
including premières, recovered works and rarely performed pieces in addition to the great religious
music of all times. Fundación Caja Madrid, as a member of the Cuenca Religious Music Week Board
of Trustees, provided 72,122 towards this year’s edition.


Educational activities comprise the following lines of action:

   Firstly, an ambitious music education project for schoolchildren and young people in the Madrid

   Secondly, sponsorship of the University of Alcalá Musical Encounters, the Chamber Music-String
   Quartets Chair of the Reina Sofía Music School in Madrid, and scholarships and travel grants for
   young Spanish instrumentalists wishing to pursue further studies in Spain or abroad.

The Foundation organised 133 pedagogical concerts in 2005 attended by 80,000 school children and
young people. Its 38 musical training courses catered for 1,067 students with 1,523 distincions, and
31 scholarships were awarded to young instrumentalists.


Spanish music history still has vast areas waiting to be explored, catalogued or revisited. For this reason,
the recovery and dissemination of our musical heritage has become a prized objective of the Fundación Caja
Madrid music programme.

In 2005, the Foundation continued its labours of recovering signal works from Spain's musical heritage,
and its work on cataloguing the music collections of Patrimonio Nacional as part of the Music Inédita scheme.

On the discographic side, attention again centred on two contrasting music styles: recordings of Spanish
operettas (La Gran Vía and El Bateo) and music of the "Golden Centuries" (Oficio de Semana Santa by


Tomás Luis de Victoria, Morales en Toledo and Los Últimos Tríos by Luigi Boccherini). This takes the
respective Fundación Caja Madrid collections to 13 “Zarzuela” pieces and 8 recordings plus a re-edition of
“Music from the Golden Centuries”.


This programme handles large-scale projects in the cultural
dissemination area undertaken by Fundación Caja Madrid on its
own account or in partnership with other institutions. One-off
sponsorship deals combine with the generic sponsorship, under
standing agreements, of the activities of other non profit institutions
of a cultural nature.


Among Fundación Caja Madrid’s main in-house dissemination initiatives is its book review Revista
de Libros. This magazine, which started back in 1996, was up to its 109th issue by the 2005 close.
Its mission is to offer the reading public a regular window onto the literary world with news and
reviews supplemented by longer essays and opinion articles. The Revista de Libros has received
the National Award for the Promotion of Reading among other distinctions.

The programme also supports outside initiatives in cultural publishing like the regular newsletter
of the Institución Libre de Education, brought out quarterly by the Fundación Francisco Giner de los
Ríos, or the books published by the Fundación de Amigos del Museo del Prado reproducing the
contents of their annual lecture cycle.

The Fundación has likewise kept up its support to research and publications on Madrid’s traditions
and historical heritage, in concert with the Madrid City Council and Madrid Regional Government.

And its longstanding collaboration with the Royal Academies of History, Medicine, Pharmacy, Moral
and Political Sciences and Jurisprudence, the Príncipe de Asturias Foundation, the Residencia de
Estudiantes, the Colegio Libre de Eméritos, the Casa de América and the Institución Libre de



The Foundation's own Casa de las Alhajas space is mainly given over to its joint exhibitions
programme with the Fundación Colección Thyssen-Bornemisza under an agreement signed in 2003.

The 2005 programme began with the closing weeks of what has been the Fundación Caja Madrid's
most successful show to date: Gauguin and the Origins of Symbolism. Inaugurated in autumn 2004,
this exhibition was a magnificent tribute both to the artist’s work and the historical period that gave birth
to it. By its closure in January 2005, the show had been seen by some 460,000 people, of whom
180,000 visited the Fundación Caja Madrid site and the rest that of Fundación Colección Thyssen-

The next project, and the fourth in the joint programme with the Museo Thyssen-Bornemisza, was
Brücke. The Birth of German Expressionism. This exhibition had to be planned on a longer-than-
usual horizon, as it would go on from Madrid to the Museu Nacional d’Art de Catalunya (May-
September 2005) and subsequently to two separate sites in Berlin, the Berlinische Galerie and the
Brücke Museum.

Although Brücke cannot rival with Gauguin in overall popularity,
the show was warmly received not only by the specialist public
but by ordinary spectators too. Finally, a total of 186,516 visits
were recorded, with the Thyssen-Bornemisza museum receiving
102,881 and the Fundación gallery 83,635.

With this exhibition, Fundación Caja Madrid inaugurated a new diffusion service at its Sala de las
Alhajas gallery, consisting of programmed visits for specific groups. This comes to supplement the
free guide service already available to the general public. Results so far have been encouraging. Of
the 3,306 guided visits taking place in the year, 627 were with this kind of group, which is being
specially targeted by the Foundation .

In the last quarter of 2005, a new joint Fundación Caja Madrid/Thyssen-Bornemisza exhibition opened
its doors. Mímesis. Realismos Modernos is a journey through realist art between the First and Second
World Wars; a period which witnessed the consolidation of the Modern Movement. This exhibition
will run until January 2006.

The quality of recent exhibitions in the Fundación Caja Madrid gallery have made it an acknowledged
landmark in Madrid’s cultural landscape. The latest show will be accompanied not only by a
programme of organised visits but also by children's workshops designed to maximise the educational
value of the experience. Aprender con el arte is another educational initiative within this Fundación
Caja Madrid programme. The aim is to introduce children to the world of art from different perspectives,
including artistic creation, literature, history, graphic design and theatre, through activities created for
all ages from 5 to 16. The forty workshops organised in 2005 were attended by 400 children.


Postgraduate training, the promotion of research and support to
public university programmes in the Madrid Region are three
expressions of the Foundation’s concern to enlarge and
consolidate the stock of knowledge of young Spanish


Fundación Caja Madrid runs a comprehensive scholarship programme to fund the
postgraduate studies of university degree-holders resident in Spain. Depending on
the particular specialisations covered each year, the programme may extend to study
and research in centres in Spain and abroad.

Some of these scholarships are managed directly by Fundación Caja Madrid while
others are offered in collaboration with partner institutions.

Foundation scholarships are allocated through a number of separate calls:
   115 postgraduate scholarships to study at universities or research institutions of the awardee’s
   choice in the United States or Europe (excepting Spain). This represents a significant increase over
   the 70 grants offered in the 2004-2005 call, as well as a change in the direction of the programme.
   Specifically places are now available in biomedical and polytechnic areas in addition to social and
   legal sciences. The budgetary assignation has increased in consonance by a hefty 66.4%. This
   was also the first year that Fundación Caja Madrid organised a formal scholarship award ceremony,
   with their Royal Highnesses the Prince and Princess of Asturias as the guests of honour.

55 scholarships in the Humanities, 40 doctoral and 15 postdoctoral, to promote scientific research
in the areas of Spanish Philology, Philosophy and History. This scholarship line has proved
particularly popular, with numbers rising steadily each year despite the decline in the Spanish
student population (over 7 candidates per scholarship in 2005, and 400 applications in all).

100 scholarships for the interdisciplinary seminars given by the London School of Economics and
Political Science (LSE) at the Foundation’s headquarters in Madrid, covering the technological,
social, political and economic aspects of globalisation. The 2005/2006 seminars, each lasting a
total 25 hours, will be held over one week in the months of January, February, March and April of



  24 scholarships for specialised studies in applied arts at the National Heritage Department’s
  workshop schools, in collaboration with this institution.

  5 scholarships of a maximum nine months’ duration at the Spanish Academy in Rome, to form
  specialists in Art History and the Restoration of Cultural Heritage Items. In collaboration with the
  Spanish Ministry for Foreign Affairs.

  16 scholarships for the Master’s in "European Social Action in the World", organised by Carlos III
  University, with the collaboration of Cruz Roja Española, CIDEAL and CEAR.

  14 scholarships for Master's courses in "Social Services Management", organised by the University
  of Alcalá.

  25 journalism training scholarships with the Agencia EFE news agency.

  1 two-year scholarship offered by the Spanish Committee of United World Colleges.

  3 scholarships to complete studies at the Centro de Estudios Monetarios y Financieros
  Internacionales (CEMFI).

  3 scholarships in bioethics called jointly with the University of Comillas.

  10 scholarships for the Master’s in Architectural Restoration offered by the Architecture School of
  Madrid Polytechnic University.


The Foundation has had a funding arrangement since 1998 with CNIO (Centro Nacional de
Investigaciones Oncológicas) to support clinical cancer research. Since 2003, this support has
materialised in the funding of a five-year placement at the centre for four young research groups.

This programme reflects the Foundation’s priority accent on postgraduate training, the incorporation

of research staff into the Spanish health system and clinical research in the cancer area, as well as
its committed relationship with the CNIO Research Programme which disseminates the most advanced
techniques in cancer treatment and works for their rapid take-up by the National Health Service.

Changing context, a new multi-year research line has been approved (2005-2009) for the study and
cataloguing of one of the main collections in the Simancas General Archive. The collection in question
is “El Registro General del Sello de Castilla”, among the best conserved of the Archive's documentary
series, Ten researchers will work on the project over its five-year duration. The Foundation’s partners
in this initiative are the Ministry of Culture and the University of Valladolid.


The Foundation has continued its collaborative efforts with public
universities in the Madrid Region (Complutense, Autónoma,
Alcalá, Carlos III, Rey Juan Carlos and Politécnica). Support is
distributed across the supplementary teaching and research
courses organised by these universities, and the recent Erasmus-
Fundación Caja Madrid programme.

At end 2004, the Foundation decided on a new direction for its University programme which would
involve paying part of the sum agreed with each centre directly to the students. This would allow lower
income scholarship winners to take advantage of the Erasmus mobility scheme.

The Foundation resourced its new Erasmus scholarship line with 1.5 million in 2005, spread across
3,000 payments of around 500 euros a month. Awards went to 387 students at the above five
universities out of the 2,089 applying. Stays at the European universities chosen by students ranged
from 3 to 10 months.

The success of this initiative has convinced the Foundation to raise its Erasmus funding by 700,000
in 2006. The resulting total of 2.2 million will provide 4,400 monthly payments for distribution to over
700 scholars. Madrid Polytechnic University will also join in the 2006 call, which will accordingly reach
all the public universities in the Madrid Region. As in the 2005 edition, the share-out of the 2.2 million
purse and monthly payments will be pro rata with the number of students enrolled at each centre.


Fundación Caja Madrid presents the selected students with their Erasmus credentials at an award
ceremony in its head offices.


Caja Madrid is among the institutions most highly regarded for its social action programme, according
to a 2005 survey by Fundación Empresa y Sociedad. Our organisation took third place in the general
ranking, and was placed second in the specific programmes category for its sponsorship and events
programme. This survey consulted 275 experts from companies, savings banks, social organisations,
universities, government agencies and communications media.

Caja Madrid’s social and cultural engagement met with unprecedented recognition in a 2005 study
conducted by a market research specialist through CECA (Spanish Savings Banks Confederation).
According to respondents, Caja Madrid is:

  The financial firm or institution best known for its work in conserving the country’s historical-artistic
  and natural heritage.

  The second best known financial firm or institution with a programme of activities in the areas of
  culture, leisure, health and community welfare and education and research.

  The second financial institutions accorded most recognition in proportion to the investment it

Obra Social Caja Madrid has received a number of awards for its support to vulnerable collectives
and young creative talent, among them.

















INTRODUCTION                         209
ENVIRONMENTAL CHARTER                210
  SUSTAINABLE SUPPLIERS              213
  EMISIONS CONTROL                   215
  WASTE MANAGEMENT                   216
  RESOURCES CONSUMPTION              218
    Electricity consumption          219
    Fuel consumption                 220
    Water consumption                220
    Paper consumption                221
GOOD HOUSEKKEPING                    224
ACTION PROGRAMMES                    227
  TEACHING EXHIBITIONS               227
  “A MILLION TREES”                  228
  LA CASA ENCENDIDA                  229

2005        ENVIRONMENT

  CREDIT LINES               232
INDICATORS                   234
  GENERAL                    234
  INVESTMENT                 235
  WASTE                      235

  2005          ENVIRONMENT

The protection of the environment is becoming increasingly important
in Spanish society to judge from the latest sociological surveys. A
large percentage of the Spanish population believes this to be a
pressing problem requiring urgent political and strategic action.

Social and political awareness about preserving the environment
and pursuing a more sustainable development model has been
supplemented in recent years by more targeted initiatives requiring    Jorge Remacha Lorenzo
firm commitments, and also large investments, from government
and companies.

  2005          ENVIRONMENT

Caja Madrid shares society’s growing concern for the future of our planet and has been working at
several levels to advance the cause of protection and respect for the natural environment:

   Environmental management in Caja Madrid work centres, as a means to materialise our
   organisation’s philosophy of assuming its environmental responsibility, and reducing the
   environmental impact of its business. Informed by the standards included in ISO 14001:2004, the
   management system uses tested processes to identify, monitor, minimise and control the
   environmental hazards associated to work centres.

   Sensitisation and training of professional teams, so environmental awareness permeates the whole

   The environment and nature programme run for several years now by Obra Social Caja Madrid.

   Funding of environmental protection projects arising from corporate or institutional initiatives.

Our charter
Caja Madrid's engagement with sustainable development and the continuous improvement of our
environmental management is encapsulated in the environmental policy statement approved in
September 2005.

This policy is structured around the following principles:

   Continuous improvement and the prevention of pollution, investing all necessary resources to this

   Compliance with prevailing legislation and with the principles of the agreements to which the
   organisation is a signatory.

2005         ENVIRONMENT

Environmental criteria embedded in all projects, and an internal management system designed to
minimise the impacts of our installations and activities.

Dissemination and promotion of good environmental practices across the length of the supply

Collaboration in the development of environmental conservation and improvement schemes, and
support to the environmental initiatives of government authorities and/or large or small businesses
through grants, sponsorship, research, publications, workshops and other forms of assistance.

Staff training and awareness on environmental issues.

  2005           ENVIRONMENT

Caja Madrid is aware of its environmental
responsibility to society, and for some time
now has been working on different initiatives
aimed at conserving the environment (the
"zero paper" project, re-use of printer toner,
energy saving, etc.). However, in 2004 an
environmental audit was conducted in order
to provide a baseline scenario and to identify strong points and challenges to be met in designing
Caja Madrid’s environmental management policy. Based on this audit, a series of priorities were drawn
up for daily action:

   Implementation of working procedures in accordance with the standards established by regulation
   UNE-EN ISO14001 for waste management, the control of greenhouse gas emissions and the
   reduction in the consumption of natural resources (water, energy, etc.).

   Programmes to train members of staff and develop their environmental awareness.

   Promotion of good practice throughout the supply chain.

   Ongoing checks on the implementation of environmental management at Caja Madrid.

The principal objective, as part of an ongoing improvement process, is to factor the environmental
variable in all those processes and activities which may directly or indirectly impact on the environment,
so we get a picture of where the problems may lie and can tackle them proactively.

To this end, Caja Madrid set up a dedicated unit in 2004 to work to these goals along with the rest of
the organisation.

  2005          ENVIRONMENT

Although Caja Madrid’s core business has little direct risk for the
environment, we also believe no precaution is too great and have
accordingly taken steps to minimise any possible impacts. The main
action lines adopted are:

   Specification of environmental guidelines for those suppliers
   whose activities could impact on the environment.
                                                                          Cristina Huertas Martín
                                                                      Madrid East Business Directorate
   Sustainable management of property and installations.

   Reduction of greenhouse gas emissions.

   Monitoring of hazardous and non-hazardous waste management practices.

   Optimum use and consumption of resources.

   Environmental awareness and training programmes for Caja Madrid professionals.


Its sheer size and purchasing volumes make Caja Madrid an undoubted force for change in small
and medium-size companies. One possible use of this influence is to encourage sustainable practices
among our suppliers.

Caja Madrid has seized the opportunity, and is working to extend its environmental responsibility
policies to suppliers and contractors. This is seen as a way to promote not just respect for the
environment but also the sustainable growth of their businesses.

For the moment, these efforts are directed mainly at suppliers whose activity might impact negatively
on the environment:

  2005              ENVIRONMENT

   by securing a formal commitment that they will adhere to a series of environmental standards
   specified in the contracts signed with Caja Madrid,

   by means of a fluid two-way communication regarding our organisation's environmental policies and

Caja Madrid believes it is essential to recruit the active support of its suppliers. This also means working
alongside them so the staff they post to Caja Madrid centres, whether on a project or permanent basis,
know what is expected of them. To this end, suppliers and contractors are given basic information on
good environmental practices and management in the form of written dossiers or awareness training


The management of Caja Madrid properties and installations is seen from two interlocking standpoints:
one that seeks their optimal functioning mindful of all associated environmental factors; and the other
pursuing an environmental management approach based on the international standard UNE-EN ISO

Optimal functioning of properties and installations
To guard against any negative environmental impact, all branches and other Caja Madrid centres
must conform to certain constructional and design standards. These are set out in a manual which
specifies a number of technical solutions for removing barriers to disabled access, and for improving
functionality and eco-friendliness by means of energy and water saving and internal noise mitigation
measures, among others.

This is supplemented by a preventive and corrective maintenance plan to optimise building
performance and minimise environmental impact.

Caja Madrid also seeks to make use of the best available building technology. Its efforts in this direction
were recognised when one of its centres won the prize for "Best energy-saving climate control system
in a new building" awarded by the Spanish institute IDEA (Institute for Energy Saving and

  2005          ENVIRONMENT

Rollout of environmental management procedures.
Work proceeded in 2005 in rolling out environmental management procedures to all Caja Madrid
sites. Efforts initially centred on one of our organisation’s flagship buildings, where some 10% of staff
work. Management procedures are informed by the principles of ongoing improvement, legislative
compliance, control of direct and indirect environmental impacts and regular management feedback
and review.

Their application was assessed in an internal audit checking for efficacy and efficiency, with highly
satisfactory results. The impartiality of the audit process was assured by engaging the auditor services
of an external consultant of acknowledged repute in the environmental area.


Air pollution
Although Caja Madrid’s core business is not associated with air pollution, we are taking steps to
minimise the emission of greenhouse gases:

   Reduction of emissions (CO2, SOx “sulphur oxides”, NOx “nitrous oxides”) through the use of
   cleaner fuels, and by progressively switching work centres from fuel oil to natural gas. This switching
   policy translated in 2005 as 40% fewer CO2 emissions associated to fuel oil consumption.

  2005          ENVIRONMENT

   Reduction and eventual elimination of HCFC refrigerant gas emissions (which destroy the ozone
   layer). A list is being confected of air conditioning units using HCFC gases with a view to their
   inclusion in a timetabled withdrawal programme.

   Regular checks are carried out to ensure the correct functioning of boilers and emergency
   generators, and that gas emissions are within legal limits.

Work concluded in 2005 on adapting the installations and interior spaces in one of Caja Madrid’s
flagship buildings. Pro environment interventions included:

   The change to a more ecological fuel (natural gas instead of fuel oil), targeting a 40% reduction in
   the pollutant gases released into the atmosphere, CO2 and particles.

   Replacement of the refrigerant gas used in the building’s climatisation systems with another type
   which is hydro chlorofluorocarbon (HCFC) free.

Noise pollution
Caja Madrid has also taken steps to reduce noise and vibrations:

   Systems likely to produce noise or vibrations are located in closed-off areas, soundproofed when
   necessary, and equipped with anti-vibration structures.

   Climate control installations take into account the characteristics of the building, to ensure noise
   pollution legislation is respected.

Ground pollution
Appropriate prevention and containment measures are in place at facilities exposed to liquid leaks
or spillages which might pollute the ground: These include waterproofing systems, spillage containment
trays, absorbents, etc.


It is vital that each member of the organisation understands and commits to our environmental
objectives. To this end, Caja Madrid has inserted an environmental briefing session, in multimedia

  2005          ENVIRONMENT

format, into the programme of the virtual classroom (corporate intranet). Its content includes key
messages, golden rules and practical examples to encourage better management of waste.

Caja Madrid’s activities and services and the maintenance of its installations generate or are capable
of generating certain waste products which, while mainly non-hazardous, have to be managed
correctly. The following measures are currently being deployed:

Non-hazardous waste:
  Paper: Caja Madrid work centres have designated points where confidential waste paper is
  collected for destruction. The companies collecting this kind of paper undertake to recycle it once
  the documents have been destroyed.

  In 2005, one of Caja Madrid’s key sites was home to a pilot scheme involving the collection of non
  confidential paper (newspapers, cardboard, etc.) for later recycling. The centre was also equipped
  with the material necessary for the source separation of other waste products like packaging,
  batteries and glass. The aim of this scheme was to check the effectiveness of the system before
  extending it to other Caja Madrid centres, suitably adapted.

  Toner: printer toner cartridges are sent back to the supplier to be re-used, thereby preventing the
  accumulation of waste and reducing future consumption of raw materials.

  Batteries: although in-house use of alkaline batteries is very limited, Caja Madrid has battery
  collection points in all its main buildings. These batteries are sent to the relevant environmental
  authorities, providing a service to the community while getting employees into the recycling habit.

  Vegetable oils: in work centres with canteens, used oils are appropriately disposed of by authorised

  Other waste: various measures are being implemented to improve the management and separation
  of non-toxic waste in work centres where it is generated.

  2005           ENVIRONMENT

Residuos biosanitarios
   Generated by general building maintenance (fluorescent tubing, contaminated containers, used
   oils, etc.). Their treatment has been entrusted to licensed waste managers who undertake to reuse
   or recycle them whenever possible in preference to depositing them in controlled dumps.

Medical waste:
   The biological waste generated by medical services is handled by an authorised manager. Special
   labelled areas have been designated for its storage.

Waste from electrical and electronic equipment:
Caja Madrid is conscious of the fast-changing regulatory landscape in environmental matters and the
need to anticipate and adapt to new rules. Hence its efforts to secure a commitment from electrical
and electronic equipment suppliers to properly manage these items and their replaceable parts, ahead
of the provisions made in this respect in Royal Decree 208/2005. In the case of non replaceable
items, the policy is to look for alternative management methods prioritising their reuse or recycling
or, failing this, their correct disposal.


Caja Madrid considers good corporate management to be based
on sustainable development at a financial, social and
environmental level. A responsible use of natural resources
resulting in a rational consumption is seen as a key sustainability

Optimising the consumption of natural resources is an import part
of this process, and one which is being energetically addressed          Pedro Plasencia Muñoz
within our organisation.                                                Environment and maintence

Caja Madrid has continued to build on the measures taken in
previous years to make more efficient use of natural resources and to control and quantify their

  2005           ENVIRONMENT


Energy consumption depends ultimately in the kind of equipment used, the savings methods adopted
and, of course, their practical application by professional teams. Caja Madrid will continue working on
these three fronts towards the global goal of optimising our energy consumption.

Purchase of low energy electrical equipment.
   Ecological, energy-saving criteria have been brought to bear in the purchase of new photocopiers,
   printers, etc. In particular, existing CRT (cathode ray tube) computer monitors have been replaced
   by TFT (thin film transistor) models consuming around 50% less on average.

Other measures to reduce electricity consumption:
   In large buildings, automatic climate control and lighting systems are programmed to coincide
   whenever viable with working hours, and motion detectors automatically switch on lighting.

   Low-energy, long-lasting lighting systems not only reduce electricity demand but also cut down on
   waste generation in the form of used bulbs and tubing.

   Climate control systems work with outside air, which ensures the renewal of office air while cutting
   back on the power consumed in refrigeration.

   Electric water heaters supply hot water to office washrooms, reducing the energy wastage caused
   by having to transport hot water along pipes.

   In Caja Madrid branches, the entire electricity supply is switched off once the last employee has
   left the building.

   Branch signs are switched on and off by an automatic timer so they are not left on all night.

   Electricity consumption is monitored on a regular basis.

Awareness actions among staff:
   An environmental briefing session, in multimedia format, has been included in the programme of the
   virtual classroom (corporate intranet). Its content includes key messages, golden rules and practical
   examples to encourage optimal use of natural resources, including electrical power.
  2005         ENVIRONMENT


Various measures have been implemented to reduce fuel consumption:

  The installations and equipment critical to the comfort and functioning of large buildings (climate
  control, lighting, etc.) are controlled automatically by computer. This ensures optimal energy use
  and minimises the environmental impact of energy consumption.

  Climate control systems are built using thermal and insulating materials which prevent heat and cold
  from being lost.

  Caja Madrid employs a cogeneration system comprising two 768 kW generators. The system
  harnesses the residual calories from the power production process for use in heating the building
  where it is housed (DPC Las Rozas).

  In some out-of-town worksites, alternative transport is laid on for employees so they do not need
  to use their cars.

  The transport and storage of office and advertising materials have been brought under a single
  logistics system, instead of using two independent channels as before. This will help minimise fuel
  consumption, while reducing the emission of pollutant gases associated with transport (CO2, NOx
  and SO2).

  Use of new vehicles which are more energy efficient.

Fuel oil consumption was successfully reduced from 5,252 GJ in 2004 to 3,046 GJ in 2005 (a
difference of 42%). This was mainly done by replacing the oil-fired heating system at one of Caja
Madrid’s flagship buildings by another using natural gas, which cuts down the pollutant gases, CO2
and particles released into the atmosphere.


Caja Madrid has various systems to reduce its water consumption in several ways:

  Water saving devices in office washrooms.
  2005           ENVIRONMENT

   Drop irrigation systems in sites with garden areas.

   Water consumption is monitored regularly enabling losses to be detected quickly.

   Office water supply is automatically switched off at the same time as the general power supply,
   as a measure to prevent the flooding of empty offices.

The purchase and installation of water-saving devices is only one side of the story. Caja Madrid
believes it is equally important, first, to inform staff of their existence and, second, to impress on them
how vital it is that they contribute personally to reducing workplace water consumption. To this end,
a briefing session has been inserted in the virtual classroom programme (corporate intranet), whose
content includes key messages, golden rules and practical examples to encourage optimal use of
natural resources; water among them.


Paper is among the resources most widely consumed at Caja Madrid. Aware of the negative impacts
of its use, our organisation switched as early as 1993 to more environmentally friendly paper. As we
write, 100% of our A4 paper is acquired from ecologically sound sources, with 98% recycled and
guaranteed 100% produced with waste paper. Supplies also bear the “Blue Angel” eco-label certifying
that the product was manufactured using only recovered waste paper and without being chemically
bleached. White paper represents only 2% of total consumption and is likewise purchased under
environmental criteria, with 100% assured low environmental impact (ECF - elemental chlorine free).

Caja Madrid has also taken big steps to cut down on paper consumption:
   Rollout of the “zero paper” project which involves reducing paper consumption to the minimum
   by using electronic means for staff information circulars. Documents are also printed on both
   sides of sheets.

   ATMs only print out receipts at clients’ request as a means to save on paper.

   Use of plastic and paper envelopes for internal mail resistant enough to be used over and
   over again.

  2005          ENVIRONMENT


Caja Madrid believes good environmental management is all about
the people working in an organisation, which means assigning a key
place to environmental awareness and training.

In 2005, for instance, specific training needs came to light among
the professional teams engaging directly in environmental
management tasks. Tailored courses were quickly organised for a
selection of staff from central services dealing with purchasing,             Belén Ortega Martín
                                                                       Northern area business directorate
environmental management, maintenance, works management, etc.

Plans now are to gradually cascade environmental training throughout the organisation.

A number of actions were also programmed as part of the organisation’s environmental awareness
plan, to ensure all staff are informed and aware about the Caja Madrid environmental culture and its
expression in day-to-day practice.

This environmental awareness plan is supplemented by an internal communication plan.
Communication plan actions include the following:

  Publicising of the Caja Madrid environmental charter through internal communication channels.

  A series of corporate intranet inserts as follows:

   -   a multimedia briefing session dealing with Caja Madrid’s environmental commitment and the
       initiatives flowing from it,

   -   a guide to good environmental practices in the workplace, to instil habits of responsible conduct
       in all members of our organisation.

   Posters have been put up at key points in one of the main Caja Madrid offices (washrooms, vending
  machine areas, meeting rooms) with motivating messages that urge staff to be sparing in their use
  of resources and to separate waste products. This is a pilot scheme that may later be rolled out to
  other centres.
  2005              ENVIRONMENT

   Caja Madrid’s environmental policy statement has been added to the introductory manual given to
   all new staff.

Caja Madrid also works to build the environmental awareness of its customers. A guide book produced
in 2005 on prevention, safety and the environment offers corporate readers legal advice and examples
of good practices.

  2005           ENVIRONMENT

The indiscriminate consumption of paper is a threat to sustainable development, as it implies the use
of wood as a raw material and the consequent destruction of irreplaceable primary forest. Millions of
trees are felled in the world each year for the cellulose industry. Moreover, the paper making process
has a number of negative impacts on the environment, including the release of greenhouse gases.

Caja Madrid aims to save 9,400 trees and up to 630 tonnes of paper over a three-year period by
reducing internal paper consumption by 15% per annum. This “zero paper” project is a vivid expression
of our organisation’s engagement with society.

Caja Madrid is promoting and co-ordinating a set of measures to create a paper saving culture within
the organisation. This means improving the efficiency of commercial, administrative and management
processes so we can radically reduce the use of paper as an information support in favour of electronic
means. The aim is to save 25% of the time spent on locating, distributing, printing, copying and filing
documents on paper, while reducing the financial and environmental costs incurred by its use.

The “zero paper” project builds on initiatives running since 1999, which have netted annual savings
of €5 million for investment in social projects.

   Automatic generation of transaction files that can be accessed by our branches as well as area and
   business directorates.

   Elimination of printouts.

   Double-sided printing of electronic documents which require printing.

   Client correspondence via Internet.

   Phasing out of the individual transaction records sent to clients, and their inclusion in full statements.

   Pilot run of a document management application in central departments, to centralise and store the

  2005          ENVIRONMENT

  files generated by each organisational unit which can then be
  accessed and distributed by non paper means.

  Application of the “paperless committees” principle in Caja
  Madrid committee meetings.

  Use of the “full statement” including all the balances and
  movements in each client’s products, to reduce the frequency              Julio Antonio Parras Serradilla
                                                                                 Buildings Department
  of paper mailings.

The “zero paper” project prolongs and extends these initiatives. At its heart is a rethink of working
methods, a change in corporate culture and the incorporation of new technologies. Actions under its
aegis have been resourced with a total of 15 million to the year 2007.

  Elimination of 600,000 paper-based files a year in favour of digital filing systems.

  Elimination of 100% of paper printouts in favour of an electronic listing application.

  Electronic signatures available to all clients on request.

  Management of internal communications via our corporate intranet and electronic systems.

  Electronic correspondence available on request, in the hope that 200,000 clients will have opted
  for this format by the 2007 deadline.

  50% reduction in photocopiers at all central offices and double the number of multi-function

  Distribution to staff of tablet PCs at an investment cost of 3.5 million, so they can write directly onto
  a screen for later translation to electronic documents.

  Deployment of advanced technological infrastructure supporting paperless meetings. For instance,
  those attending executive committees have simultaneous terminal access to agenda material.

 2005          ENVIRONMENT

  The organisation of training and awareness actions, internal campaigns and incentive and
  suggestion schemes aimed at encouraging staff to use less and less paper.

The target is to reduce individual employee paper consumption by 15% per year. Main 2005
developments in the "zero paper" plan were:

  Creation of a corporate centre for document digitalisation.

  Elimination of 137 printouts, 59 prepress documents and 5 management reports produced on
  paper and their transfer to electronic media.

  Installation of 150 scanners, more than 95% of them in branches (both full-service and corporate

  Installation of 550 paperless workstations, based on tablet PCs.

  Rollout of a corporate documentation model and deployment of document manager Documentum
  to 13 organisational groupings.

  2005          ENVIRONMENT

Obra Social Caja Madrid runs an Environment and Nature area
which seeks to address society's growing concern about
environmental problems and their consequences. It has the
following main objectives:

   To inform and enlighten society in general, and young people in
   particular, about the environmental challenges facing us today,
   and how they can respond to them as individuals.
                                                                           Olga Maria de Torres Senastián
                                                                                Branch 1098 Madrid

   To conserve our natural heritage and halt the loss of biodiversity
   through measures to protect endangered species and restore degraded habitats.

   To collaborate in sustainable development, spreading the idea that natural resources are finite and
   encouraging responsible and ecologically sustainable patterns of consumption.

   Obra Social Caja Madrid assigned €3 million to Environment and Nature projects in 2005.


These exhibitions have an avowedly didactic mission, reflected in the materials and resources used.

They have a wide thematic range centring on the vital role of plant and animal life in shaping and
preserving the natural environment. Among the 2005 novelties was ‘Planeta Amazonia’ which explores
the natural wealth of the Amazon basin and the risks posed to its survival by the uncontrolled
exploitation of forestry and other resources. A total of 12 exhibitions toured Spain in the course of
2005, visiting 67 localities and attracting an estimated 274,800 people.


Caja Madrid’s annual "call for environmental projects" is a vehicle for putting into practice good ideas.
A total of 10 projects were selected in 2005, with subject matter ranging from the protection of

  2005           ENVIRONMENT

biodiversity and the natural environment through to knowledge promotion and dissemination in the
environmental area, the preservation of environmental quality and the sustainable use of natural


“A million trees” is a multi-year project to restore areas of
environmental importance in the hill lands of Spanish regions. To
date, more than 700 hectares have been replanted with around
half a million trees in eight autonomous communities.

The Balearic Island and Galicia were the regions selected in 2005.
On the islands, 70 hectares in the municipal area of Artà
(Mallorca) were replanted with 38,500 examples of Aleppo pine
and 4,500 holm oaks. In Galicia, 175.68 hectares in Verín (Ourense) were replanted with 169,000
trees of the species Pinus pinaster, Castanea spp, Quercus spp., Betula spp, Acer spp., Fraxinus
spp. and Quercus ilex.


An environmental roadshow in a specially adapted bus, currently
touring Andalusia. It explores the complex and vital relationship
between environment and health and some of the problems of
modern eating, while encouraging visitors to stick to a healthy diet
and be responsible consumers. As well as visiting 13 municipalities
in Andalusia, the bus also called in at Madrid's FISALUD health fair
and the Juvenalia youth event. In all, the exhibition was enjoyed by
8,350 people between school children and other groups.


It is a project directed to schoolchildren analyse the environmental problems affecting the areas where
they live and think about their causes and how to solve them. Activities are led by a specialist monitor,
with a council of elderly residents giving the benefit of their advice. In the closing quarter, the 2005/2006
programme was started up in eight municipalities in Toledo, with the participation of 14 schools and a

  2005          ENVIRONMENT

total of 670 pupils. Meantime 16 schools and 700 students from 5 municipalities in the south of Madrid
continued with the projects begun in 2004, while educational materials were delivered to participants
in earlier editions in the west of the Madrid region and the province of Segovia. In all the 2005/2006
edition of “Agenda 21" will reach 19 municipalities, 38 schools and 1,570 students.


The environment programme of La Casa Encendida Cultural engages with the goals of sustainable
development in a creative, dynamic and, above all, optimistic way. Imaginative solutions are put forward
to encourage a critical analysis of the environmental situation. The thirty-one training actions organised
in 2005 included workshops on bioclimatic construction and town planning and citizenship values,
while the theatre and audiovisual programme featured an international festival on urban ecology and
the TV medium looking at different ways to use television as an environmental education tool.

  2005         ENVIRONMENT

In order to promote respect for the environment and the use of
renewable energy sources, Caja Madrid has signed
collaboration agreements with various companies and
government agencies to offer advantageous financing
conditions for environmental care and conservation projects.


Collaboration agreement between Caja Madrid and Endesa Energía
Agreement with Endesa to finance client take-up of the following products and services:

  “One-stop Energy Services”.

  “Value Added Services”.

Included in these packages are:

  Low to high voltage translators and legalisation projects.

  Environmental management projects (solar panels, decommissioning of transformers) and
  improvements in energy efficiency (condenser batteries, lighting, efficient engines, etc.).

  Other energy equipment (generators, uninterrupted supply systems, etc.).


Renewable energies agreement with the Madrid Regional Government's Economy and
Technological Innovation Department
To support the financing of investments aimed at promoting the use of solar energy.

This agreement is now being applied nationwide in view of the interest generated. Eligibility has
  2005          ENVIRONMENT

likewise been extended to wind, hydroelectric, biomass, biofuel and biogas projects.

Taking its cue from the official energy policy objectives enshrined in the Renewable Energies Plan
2005-2010, Caja Madrid wishes to channel finance to the renewable energy projects of both
companies and individuals.

The priorities set in the government's plan are:

   Electricity supply assurance.

   Respect for the environment.

   Compliance with the international agreements to which Spain has subscribed (Kyoto Protocol).

The agreement gives access to loans under preferential terms to SMEs, independent contractors,
local authorities and natural persons investing in photovoltaic or thermal solar power installations in
the Madrid Region and the whole of Spain.

Caja Madrid and its insurance business partner Mapfre have also devised a specific policy covering
damages to photovoltaic installations and production down time due to accident or lack of sun.

These financial measures ensure companies have the funds to hand to adapt their production
equipment and processes in a way that reduces CO2 emissions as well as generating medium- and
long-term energy savings.

This agreement is one more token of Caja Madrid’s commitment to environmental conservation and
the general welfare of our society.

Agreement with Tajosolar
Caja Madrid has signed an exclusive agreement with solar panel specialist TAJOSOLAR
to grant low interest loans to companies and private individuals for the purchase of its photovoltaic

The generation of photovoltaic energy using solar panels is an interesting solution for both small and
  2005          ENVIRONMENT

medium sized companies and individuals, especially in isolated areas to which running a power line
would be overly expensive.


ICO - IDEA credit line
Funding (via loan or lease arrangement) of investments in new fixed assets using renewable energy
sources or which improve energy efficiency in Spain.

Eligible projects are as follows:

Solar power line
   Mixed wind/solar power systems.

   Isolated photovoltaic systems.

   Grid-connected photovoltaic systems up to 10 kWp.

   Grid-connected photovoltaic systems of over 10 kWp.

   Solar thermal kits.

   Solar thermal systems with element connection.

   Solar concentrators.

Renewable energies and energy efficiency line
   Energy saving, efficiency and conversion projects in industry.

   Energy efficiency in buildings.

   Energy efficiency in the public sector – public transport.

   Non industrial cogeneration.
2005          ENVIRONMENT

Wind power installations of under 2 mW capacity.

Energy applications of biomass.

Mini hydro power stations with installed capacity under 1 mW.

Use of biogas as an energy source.

Use of waste as an energy source.

Biomass transformation for energy production.

Transformation of other renewable sources.

Fuel cells.












2005      SUPPLIERS


 INTRODUCTION                 238
 COMUNICATION                 239
 SUPPLIERS CHARTER            241
 THE NEXT STEPS               242
 INDICATORS                   243
    GENERAL                   243

  2005          SUPPLIERS

Caja Madrid realises the importance of maintaining a good
relationship with its suppliers. The results of our business and
customers’ perception of our services may depend on the nature
and character of this relationship. In 2005, Caja Madrid spent over
€480 million on purchases, with contracts going to a total of 4,455

                                                                      Isabel Martínez de Ubago Algarra
                                                                        International Financial Institutions

  2005          SUPPLIERS

Aware of the importance of optimum supplier management, Caja Madrid has drawn up a policy based
on the following principles:

   A bid list of suppliers for each purchasing action, so the
   business unit which has requested the purchase gets the best
   possible result.

   Transparency in supplier choice supported on a standardised
   process and collegiate decision-making under the system of
                                                                             Inés Miguelañez Arribas
   Faculties and Delegated Powers.                                          Finanmadrid - Operations

   Diversification of business among various suppliers, to spread out wealth generation.

   Objective decision-making, based on a checklist of selection criteria.

   Relaying to suppliers of values related to sustainability and the environment.

In order to be able to apply these principles, it is important that suppliers acknowledge, understand
and accept them. Caja Madrid is committed to maintaining ethical relationships with suppliers, as part
of its wider engagement with promoting sustainable development in the areas where it operates.


True to its management philosophy, Caja Madrid has established a procurement and supplier
certification system which defines the steps to be followed in negotiation, acquisition, contracting and
payment, based at all times on transparent selection and approval criteria:

   The provision of the service is approved by the legal department, with the formal requirements
   established in writing.

  2005          SUPPLIERS

   The selection process (initial assessment) for a new supplier is based on a checklist of criteria to
   ensure they have the technical capability in place. Also, depending on the kind of product or service
   to be provided, they may be asked to furnish official accreditation or certification and references.

   Checks are run during continuous assessment on the quality of supplier service, with reference
   to the results obtained, compliance with labour, tax, accident prevention regulations etc., and
   adherence to the operating principles of Caja Madrid.

   Regular meetings are held with suppliers to discuss their general performance and any specific

   Supplier payment is verified via the relevant accounting entries. This is done through an automated
   process to avoid any delays with respect to agreed payment periods.

Security providers warrant a special mention due to the importance of their work. The selected supplier
must not only guarantee employee security, but must also uphold the service quality and social
responsibility which characterises Caja Madrid.

Consequently, security personnel hired by Caja Madrid attend a number of training sessions:

   Presentation on Caja Madrid’s business and corporate culture, and the features of the building
   where they are going to work.

   Course on protocol and customer care.

   Talks on emergency plans and procedures.

   Course of first aid.

   Course on fire prevention.

   Specific talks on security systems.

  2005          SUPPLIERS

The list below sets out the commitments that Caja Madrid expects from its suppliers, and which should
govern all its dealings with the same.

  2005          SUPPLIERS

Caja Madrid is pursuing synergies between its sustainability
commitments and the requirements of its network of suppliers, and
to this end has opened up channels for supplier feedback on how
satisfied they are with their relationship with Caja Madrid and how
it could be improved.

Meantime, Caja Madrid will continue to develop and fill out supplier
certification requirements in the following areas:

   Respect for the environment and compliance with basic
   environmental legislation.

   Respect for basic rights, in line with the global initiatives           Mercedes Alonso García
   implemented by the International Labour Organisation to               Commercial Programming and
   promote social justice and internationally recognised human
   and labour rights.

   Any other principle aligned with Corporate Social Responsibility, such as participation in or
   cooperation with organisations at the cutting edge of these initiatives.






  2005          YOUR OPINION

Your evaluation of this Report is undoubtedly the most significant indication of how useful or valuable
it is. For this reason, we would appreciate any opinion or possible suggestions concerning its content,
which you can send to us by completing this form, and sending it by fax to Quality Area (fax number
91 423 56 91) or by post to:

                                             Caja Madrid
                                           Área de Calidad
                                    Paseo de la Castellana, 189
                                        Madrid 28046, Spain.

All your comments will be taken into account for future editions.

Please indicate to what extent you agree with the claims made in the Corporate Social Responsibility
Report. Please, mark your chosen option with an X.

  2005         YOUR OPINION

We would now like to ask you to rate each individual section of the Report:

Please use the space below for any comments or suggestions you would like to add:

  2005         YOUR OPINION

To help us classify your answers, please complete the following tables by placing an x in the
appropriate box:

What is your main relationship with Caja Madrid?

NOTE: Respondents should mark only one answer per question.

  2005          PHOTOGRAPHY

Caja Madrid wants its CSR Reports to be the property of all the people working in our Group. This was
the motive behind the First CSR Photography Competition for Caja Madrid Professionals. The more
than 170 photos submitted were of an exceptionally high quality and the choice was not an easy one.
For that reason, the photographs illustrating this report correspond to all 34 finalists and not only the
10 winning entries.

To all the Caja Madrid professionals who took part in this initiative:



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