2Annual Report 2007

CoRpoRAte Responsibility

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Corporate Responsibility. Contents

Chairman’s letter-06

Principles governing this Report-08

Our Activity-12

Our focus on Sustainability-1�

Responsibility management-20

Brand value-2�

The Global Compact-82

GRI indicators table and Global Compact Communication on Progress-8�

Verification Report-92

We value your opinion-9�

Indra and its Shareholders-26

Indra and its Employees-32

Indra and its Clients-�8

Indra and its Suppliers and Partners-56

Indra and the Environment-60

Indra and Knowledge Institutions-68

Indra and Society-72

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Indra 2007

Key wordsSustainability 71 • Pages 4, 5, 6, 8, 9, 13, 13,14, 15, 16, 17, 21, 25, 27, 31, 47, 53, 54, 55, 57, 60, 61, 66, 72, 82, 83

Innovation 56 • Pages 4, 5, 9, 12, 13, 15, 16, 17, 19, 21, 23, 34, 41, 47, 52, 53, 54, 60, 68, 69, 70, 72, 73, 76, 78, 79

Environment 43 • Pages 4, 9, 13, 15, 16, 19, 20, 24, 30, 41, 46, 52, 54, 56, 57, 58, 59, 60, 62, 64, 66, 70, 73, 75, 78

Knowledge 63 • Pages 4, 5, 7, 9, 11, 13, 15, 16, 17, 20, 21, 23, 24, 26, 30, 33, 34, 39, 42, 46, 52, 54, 58, 60, 66, 67, 68, 69, 70, 71, 73, 75, 93

Commitment 22 • Pages 6, 9, 17, 23, 32, 34, 37, 38, 39, 49, 56, 57, 69, 80, 83.

Reconciliation 14 • Pages 15, 20, ,33, 34, 35, 37

Participation 20 • Pages 6, 8, 9, 13, 15, 28, 29, 43, 56, 69, 83, 84

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Corporate Responsibility. Chairman’s letter

Indra is a global company that contributes to sustainable development through innovation, applied to the solutions and the differential high value-added services that it offers.

At Indra, sustainability, in its three-fold sense (economic, social and environmental), translates into attending, in an environment of growing complexity, the challenges laid down by each and every one of our target publics, i.e: continue to create value for shareholders; recruit, retain and manage the talent and the diversity of the people who make up Indra; always stay several steps ahead of the needs of our clients; in conjunction with universities and other institutions drive the creation of knowledge that gives rise to innovation; work shoulder-to-shoulder with suppliers, partners and allies; be good corporate citizens, in harmony with the communities in which we operate; and maintain with public institutions and governments optimum relations marked by transparency and ethics.

At Indra we believe, in particular, in social value that our solutions and services hold for not only many of our clients, but also for a broad range of the public. Some of them contribute to improving the quality of life in spheres such as Public Health or Transport –both of which are vital to society at large– while others help to avoid disasters or to manage the environment.

To be an active agent in closing the so-called ‘technology gap’, by helping to overcome the difficulties or limitations of access to Information and Communication Technologies, as well as helping to do away with the differences that exist between different groups of people according to their capacity to use technology in an efficient way.

This gap varies in dimension and significance according to each of the markets in which Indra operates. Our objective is to bring it down to a minimum, by using our solutions and services to foster accessibility and the use and enjoyment of high-quality content.

In this particular sphere our standout contribution has been the Indra Chairs of Accessible Technology, a term which brings together a group of collaborations between Indra and several knowledge institutions to develop innovative services and solutions in the areas of Accessibility and Inclusion. Through these Chairs, we hope to have a short- and medium-term impact on society and markets, and to become an international benchmark not only in the pursuit of excellence in the development of technologies, but also in the model of collaboration and technology transfer between Universities and Private Enterprise.

Similarly, the recruitment and management of talent –so vital to innovation, which is our main responsibility as a company– continues to have a strategic significance for Indra and has taken on a special dimension this year. In 2007, as well as completing the integration of Azertia and Soluziona, the workforce has grown by 4,000 employees, reaching a total of 23,482 professionals of whom 5,187 work outside of Spain. The challenge of managing diversity led to new progress in 2007. Thanks to Indra’s Plan 90 Días , Azertia and

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Indra 2007

Soluziona were successfully integrated into our organisational structure. The Programa Equilibra, introduced in 2005 and aimed at reconciling work and family life, was added to in 2007 with the introduction of the three-yearly Plan de Igualdad equal opportunities program.

At an international level, Indra has once again obtained recognition as a sustainable company, capable of creating value. Since 200�, we have been included in the Dow Jones Sustainibility Index (DJSWI) and the Dow Jones Stoxx Sustainability Index (DJSI STOXX), and in 2007 we led the IT services sub-sector (Computer Services and Internet) of these indices. In 2008 we were top of the Ibex 35 Good Corporate Government table and we took first place in the Consulting, IT and Electronics sectors of the MERCO Monitor Español de Reputación Corporativa (Spanish Corporate Reputation Monitor) ranking.

In order to take our brand nearer to the current and future reality of our company, in 2007 we reviewed our positioning. We set off from the conviction that the Indra brand should be based on a solid idea that should aim to attract not only our clients and workforce, but also our many and varied target publics. An idea that should be as valid and true in every context in which Indra carries out its activities, a long-lasting idea attuned to the company’s overall strategy: virtuosity, as the sum of technique and talent.

Because at Indra, it is the scientific vocation and talent of our professionals that build the road that we follow. The result: precision, growth and responsible innovation. We are not content with just doing what is expected of us. We believe in using daring, sensitivity and rigour to push back our limits ever farther and to constantly turn knowledge into value.

This vision of the brand has led to the development of a new visual representation that is being displayed publicly for the first time in this 2007 Report.

And finally, and in line with the continuous improvement with regard to Corporate Social Responsibility and with the publication of our accounts in this area, this Report has been put together following the G3 guidelines of the Global Reporting Initiative, at the A+ level, as well as the AA1000 accountability norm. We have also continued to advance in the application of the principles defined by the U.N. Global Comact. All of this makes up a balanced and reasonable presentation of our organisation’s economic, environmental and social performance, which has been verified externally.

Javier Monzón President

Principles governing this Report This Report has been put together following Global Reporting Initiative’s (GRI) Sustainability Reporting Guidelines (October 2006 version, known as “G3”), at the maximum A+ level, as well as the AA1000 accountability norm.

This Report, and the social and environmental information it contains, has been verified externally by independent third parties. The scope, description of the work and conclusions of this verification are to be found in the section “Verification Report”.

In accordance with Indra’s commitment to continuous improvement, since we first began publishing our accounts in the sphere of Corporate Responsibility and Sustainability (in 2003), we have been working to extend the scope of the information to encompass all the subsidiaries that make up the Company.

The scope of the information presented in this Report is described at the beginning of each chapter. The complete list of companies that make up Indra appear in Annex 1 of the Consolidated Annual Accounts Report and Management Report at December 31, 2007 and 2006. For information covering a period or organisational scope other than the abovementioned ones, the differences are described within the content of the Report, along with the data in question.

This year, as in other years, Indra has put together this Report by means of a process of participation of the different company heads responsible for relations with each of Indra’s target publics. This process involves not only sharing the information, but also

continuously improving our systems of dialogue with our different target publics.

The procedure for putting together the Report makes it easier for everyone to comply to the principles that define its content (materiality, participation of the interest groups, explanation of the context of sustainability and thoroughness), as well as the principles related to the quality of the Report (balance, comparison, accuracy, frequency, clarity and reliability) required by the G3 Guide and AA1000 standard.

The information provided by this document comes from a variety of management and information systems implemented in the areas that report directly to the Department of Strategy, Marketing and Communication, responsible for coordinating the Corporate Responsibility accounts and for driving the Management Plan.

There are several internal mechanisms to control the information managed by these systems. Indra strives to improve its systems for generating, aggregating and consolidating the data, to enable us to improve the quality of the information presented in the Corporate Social Responsibility Report.

Corporate Responsibility. Principles governing this report

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In order to put together this report (from October 2007 to February 200�) we took the following steps:

1. 2.

4.

Meetings were held throughout the final quarter of 2007 with each of the heads of relations with strategic target publics and/or areas with two main aims in mind: on the one hand, to update the Responsibility Management Plan, defining new actions to be pushed or carried out; on the other, to gather information on the state of sustainability in the Company to prepare the accounts for that fiscal year.

And so at the end of 2007, and as a consequence of this process of updating of the Management Plan, the Company mooted the possibility of defining new tools for listening to and consulting, or renewing the existing relations with specific stakeholders such as knowledge institutions, partners and labor unions. We intend to develop new tools for communicating with these publics, in an attempt to enrich the internal perspective of responsibility and to improve our performance over the coming years.

Significantly, and also as a result of this process, we have considered the possibility that Indra, as a global company, might need to incorporate the opinions, suggestions, values and expectations of our employees in other countries in order to define which subjects are relevant in each geographical area. In 200�, we plan to conduct an international survey on the subject of Corporate Social Responsibility.

A formal request was made for information on the GRI G3 indicators to the head of relations with each target public and /or area, as well as policies, programmes, initiatives and actions of responsible value that can be developed in the space of a year, not only those included in the Company’s Responsibility Management Plan, but also those that could have been developed from other strategic lines and that display a potential for synergies in sustainability and responsibility.

Once the Report was written up, though not yet published, it was sent off for final checking by each corresponding head to make sure that the relations with target publics and/or areas under their responsibility were reflected accurately.

The Report has also been sent for checking to the representatives of the CCOO, UGT and USO labour unions.

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Indra 2007

The Corporate Responsibility Report 2007 has also been sent to labour union representatives for their review

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Corporate Responsibility. Principles governing this report

Principles related to this Report’s definition of content

Explanation of the principle according to GRI-G3 How Indra ensured this principle

Materiality That which is meaningful, important, significant and which has an effect on the responsibility and sustainability of Indra’s activities.

The Corporate Responsibility Management Plan reflects what matters with regard to responsibility and is updated annually.Drawing up this Report allows the organization to redirect the material aspects.Indra has developed an approach to the materiality of its responsibility through a classification of matters included in this Report (available in the section “Our Approach to Sustainability”)In 2007, prior to the drawing up of this Report, we conducted research to identify Corporate Responsibility aspects that are relevant to Indra’s target publics. The analysis dealt with, among other things, different aspects of sustainability for institutional investors and the maturity of the subjects of responsibility in the sectors where Indra operates and sectoral associations to which Indra belongs.In 2007, we also looked at the possible need to incorporate a survey among new publics to define which subjects are relevant, as well as gathering opinions from Indra’s own professionals in the country where they work, which would provide us with a local slant on sustainability.

Participation of interest groups Identification of the groups and an adequate response to their expectations andreasonable interests.

Indra has different periodic consultancy systems with the following public sectors: shareholders, employees, clients and suppliers. There is also a survey, at www.indracompany.com/responsabilidadcorporativa, to strengthen communication and dialogue with all target publics.Company heads for each public sector take part in the writing of the Report.Each chapter in the Report contains specific information on Indra’s stakeholder-specific consultation systems.Additionally, in 2007 Indra looked at the possibility of giving specific target publics an active voice in the process of participation, and drew up a survey for Indra employees the world over. The Company also came up with a draft survey for labour unions and fostered new channels of consultation with knowledge institutions and assorted partners.

Sustainability Context The way in which the organisation contributesto local, regional or global development.

Indra’s vision of Responsibility is linked to Innovation.Management approaches in economic, social, human rights, environment and product performance, (presented in the section: “Our approach to Sustainability”), include observations about these contexts.This year we have thought it necessary to consider the Digital Divide as a sphere in which the Company must state its position and adopt an active role.

Thoroughness Extent, coverage and time referred to in the Report. Reasonable and proper datapresentation regarding quality.

The process of drawing up the Report and of its internal and external verification ensures thoroughness.

Balance The Report must reflect the positive and negative aspects and allow a reasonableevaluation of the Company’s performance.

The 2007 Report includes data concerning both positive and improvable aspects as well as future objectives for each public involved with Indra, the level to which those objectives were reached and commitments assumed in the past. The process of identifying material themes (see Materiality principle) also contibuted to its completion.From 200�, the opinions and suggestions from Indra’s foreign operations will also be included in the Report, as well as in the Plan Director.

Comparability The Report must allow the analysis of progress and change.

The 2007 Report includes data since 2002 to allow performance analysis over time. The Report also includes changes made in the calculation methods.

Accuracy The Report must be accurate and detailed enough to show clearly the organisation’s performance.

Indra’s goal has been to submit accounts to the highest application level, A+, and to explain, whenever required, when the indicators are not applicable or unavailable, or when they only refer to certain parts of the company.This Report has undergone a verification process that ensures the accuracy of the quantitative data confirming evidence and proper context for the qualitative information.

Frequency The Report will be presented on time and following a periodic schedule.

Indra has committed itself to publishing an annual Responsibility Report since 2003. This report is published at the same time as the rest of the company’s Annual Reports.

Clarity Information must be displayed articulately and in an accessible way.

Indra has developed an electronic version of the Report open to the general public on its web page: www.indracompany.com/corporateresponsibility. Indra also sends its Report to shareholders, main customers, media, responsible investment institutions and other interested parties whorequest it.At the end of this Report, there is a communication channel, “We value your opinion”, with each Indra manager’s name and address for every target sector.

Reliability The information contained in this Report may be verified by a third party, and all the data are supported by relevant documents and internal controls.

Given our commitment to transparency, we entrusted to independent third parties the verification of the corporate and environmental information included in the 2007 Report.The extent, work description and conclusions of this verification are to be found in the section: “Letter of Verification”.

Response (exclusive standard AA1000)

The organisation’s assorted mechanisms for fulfilling stakeholder expectations.

By means of consultation and periodic surveys among shareholders, employees, customers and suppliers, Indra has incorporated into the management of its Responsibility and its subsequent accountability, the expectations and values for which the Company is accountable in the corresponding sections of this Report.At year-end 2007 we laid down the rules for extending consultation on relevant subjects to new target publics, such as knowledge institutions, labour unions and partners, as well as our employees in markets where Indra operates.

This Report has also been drawn up according to the principles of the Materiality, Thoroughness and Response AA1000 standard (see table attached).

To better understand the 2007 Report, it should be read together with the corporate information prepared by Indra for the 2007 tax year, and in particular the 2007 Activity Report, which provides a detailed description of Indra’s business areas.

Content according to G3 of the GRI and quality according to the AA1000 norm

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Indra 2007

Principles related to this Report’s definition of content

Explanation of the principle according to GRI-G3 How Indra ensured this principle

Materiality That which is meaningful, important, significant and which has an effect on the responsibility and sustainability of Indra’s activities.

The Corporate Responsibility Management Plan reflects what matters with regard to responsibility and is updated annually.Drawing up this Report allows the organization to redirect the material aspects.Indra has developed an approach to the materiality of its responsibility through a classification of matters included in this Report (available in the section “Our Approach to Sustainability”)In 2007, prior to the drawing up of this Report, we conducted research to identify Corporate Responsibility aspects that are relevant to Indra’s target publics. The analysis dealt with, among other things, different aspects of sustainability for institutional investors and the maturity of the subjects of responsibility in the sectors where Indra operates and sectoral associations to which Indra belongs.In 2007, we also looked at the possible need to incorporate a survey among new publics to define which subjects are relevant, as well as gathering opinions from Indra’s own professionals in the country where they work, which would provide us with a local slant on sustainability.

Participation of interest groups Identification of the groups and an adequate response to their expectations andreasonable interests.

Indra has different periodic consultancy systems with the following public sectors: shareholders, employees, clients and suppliers. There is also a survey, at www.indracompany.com/responsabilidadcorporativa, to strengthen communication and dialogue with all target publics.Company heads for each public sector take part in the writing of the Report.Each chapter in the Report contains specific information on Indra’s stakeholder-specific consultation systems.Additionally, in 2007 Indra looked at the possibility of giving specific target publics an active voice in the process of participation, and drew up a survey for Indra employees the world over. The Company also came up with a draft survey for labour unions and fostered new channels of consultation with knowledge institutions and assorted partners.

Sustainability Context The way in which the organisation contributesto local, regional or global development.

Indra’s vision of Responsibility is linked to Innovation.Management approaches in economic, social, human rights, environment and product performance, (presented in the section: “Our approach to Sustainability”), include observations about these contexts.This year we have thought it necessary to consider the Digital Divide as a sphere in which the Company must state its position and adopt an active role.

Thoroughness Extent, coverage and time referred to in the Report. Reasonable and proper datapresentation regarding quality.

The process of drawing up the Report and of its internal and external verification ensures thoroughness.

Balance The Report must reflect the positive and negative aspects and allow a reasonableevaluation of the Company’s performance.

The 2007 Report includes data concerning both positive and improvable aspects as well as future objectives for each public involved with Indra, the level to which those objectives were reached and commitments assumed in the past. The process of identifying material themes (see Materiality principle) also contibuted to its completion.From 200�, the opinions and suggestions from Indra’s foreign operations will also be included in the Report, as well as in the Plan Director.

Comparability The Report must allow the analysis of progress and change.

The 2007 Report includes data since 2002 to allow performance analysis over time. The Report also includes changes made in the calculation methods.

Accuracy The Report must be accurate and detailed enough to show clearly the organisation’s performance.

Indra’s goal has been to submit accounts to the highest application level, A+, and to explain, whenever required, when the indicators are not applicable or unavailable, or when they only refer to certain parts of the company.This Report has undergone a verification process that ensures the accuracy of the quantitative data confirming evidence and proper context for the qualitative information.

Frequency The Report will be presented on time and following a periodic schedule.

Indra has committed itself to publishing an annual Responsibility Report since 2003. This report is published at the same time as the rest of the company’s Annual Reports.

Clarity Information must be displayed articulately and in an accessible way.

Indra has developed an electronic version of the Report open to the general public on its web page: www.indracompany.com/corporateresponsibility. Indra also sends its Report to shareholders, main customers, media, responsible investment institutions and other interested parties whorequest it.At the end of this Report, there is a communication channel, “We value your opinion”, with each Indra manager’s name and address for every target sector.

Reliability The information contained in this Report may be verified by a third party, and all the data are supported by relevant documents and internal controls.

Given our commitment to transparency, we entrusted to independent third parties the verification of the corporate and environmental information included in the 2007 Report.The extent, work description and conclusions of this verification are to be found in the section: “Letter of Verification”.

Response (exclusive standard AA1000)

The organisation’s assorted mechanisms for fulfilling stakeholder expectations.

By means of consultation and periodic surveys among shareholders, employees, customers and suppliers, Indra has incorporated into the management of its Responsibility and its subsequent accountability, the expectations and values for which the Company is accountable in the corresponding sections of this Report.At year-end 2007 we laid down the rules for extending consultation on relevant subjects to new target publics, such as knowledge institutions, labour unions and partners, as well as our employees in markets where Indra operates.

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Corporate Responsibility. Our activity

Our activityIndra is Spain’s number one multinational information technology (IT) company and also one of the leading companies of its kind in Europe and Latin America. It is ranked as the second European IT company by stock market capitalisation and it is one of the three Spanish companies which invests most in R+D . In 2007, sales reached €2.168 million, a third of this figure coming from the international market. The Company has a 23,500-strong workforce and a client portfolio that spans more than 90 countries.

European IT company by stock market capitalisation and one of the top three Spanish companies in R+D investment

2 nd

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Indra 2007

the company operates worldwide in the area of Information Technology Solutions and Services and is a major benchmark in the domestic and foreign markets in which it operates. For example, a third of the world’s air traffic is managed by countries that use air traffic management systems developed by Indra. Specifically, Germany, The Netherlands (Maastricht), Russia, China (Hong Kong), Spain and a number of Latin American countries. It should also be noted that some of the world’s main underground railway systems, such as those in Madrid, Barcelona, Paris, Shanghai, Athens and Santiago de Chile, among others, use state-of-the-art ticketing systems developed by Indra. Also, Spain’s air defence network has been developed using Indra technology .

Indra provides its clients with an offer that is complete and provides value, ranging from consultancy, project development, and systems and applications integration, to outsourcing of IT systems and business processes. This offer is structured in two primary segments: Solutions and Services.

Indra is firmly committed to the development of proprietary and highly competitive solutions, making for a highly differentiated offer that sets Indra apart from rival companies. Thanks to years of investments along these lines, Indra is able to offer a broad range of innovative and tried-and-tested products and services in each of the vertical markets in which the Company operates.

Indra uses its range of services to either partially or completely manage and operate its clients’ IT functions and the Company takes over the management of business processes, where technology is a strategic and differential element (BPO - Business Process Outsourcing). At Indra, we see outsourcing as taking on the role of technology partner; we build a tight partnership with our customers in which our collaboration is linked to business progress, and we share objectives, risks and rewards. That is why our offer covers the whole services value chain, from management to BPO applications.

At Indra we have considerable in-depth knowledge of our clients, which is why we are able to build strong links with them in each of their markets. We offer products and services for companies in the following vertical markets: Energy and Industry, Telecom and Media, Financial and Insurance, Public Administration and Healthcare, Transport and Traffic, and Defence and Security.

Indra counts on its deep knowledge of its clients’ business so it can establish with them a strong relationship in each one of their markets

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Corporate Responsibility. Our Focus on Sustainability

Our fOcus On sustainability Here at Indra, we believe that the Company’s Responsibility must go hand-in-hand with its natural activity: the creation of wealth through the generation of solutions and services, and of something that is distinctively our own: innovation.

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Indra 2007

Our sustainability is linked to our relation with the sectors we call ‘strategic’: shareholders, employees, clients, suppliers, the communities where we operate and society at large. Indra’s specific stakeholders include the so-called Knowledge Institutions, i.e. organisations (such as universities and other educational and research institutions) whose core activity has to do with the generation of knowledge and its dissemination.

Our approach to Sustainability stems from our vision of Corporate Responsibility which, following a period of consultation and participation by our employees through discussion groups, was defined in 2004 in the following terms: “Be an innovative company, and one of knowledge, in our relations with our internal and external target publics (shareholders, employees, clients, etc), and with the institutions that cultivate and develop knowledge, and with the communities where we operate.”

The management of knowledge which flows into innovation is the Company’s main sphere of responsibility. Which is why our vision of Sustainability is based essentially on the people who are the principal players in the process of innovation because it is these people who carry out research, learn, teach and, in short, come up with new solutions and services, and new ways of doing things and, also, of thinking.

Indra also incorporated the environment into this map of target publics as a fundamental area of the Company’s responsibility. To a great extent, the environment appeals to our dialogue with the future generations to whom we will eventually bequeath the planet and for whom we should now be looking after it in a sustainable way. Companies and their activities play a vital role in this area.

In line with the Global Reporting Initiative requirement in the G3 Reporting Guidelines, Indra has included, during 2006 and 2007, by means of an internal process of consultation, the management approach with regard to economic, environmental, labour practices and work ethic, human rights, society and product responsibility.

This process of defining approaches was updated at year-end 2007, by means of a process of consultation and participation for publishing accounts and updating the Company’s Management Plan. Furthermore, the Report includes new features such as our official position on such things as the so-called Digital Divide, relations with governments lobbies and corruption.

Indra headed the Ibex 35 Corporate Governance

Ranking in 2007. It also occupied the top spot in

the Consulting, Information Technology and Electronic

sectors of the Spanish Corporate Reputation

Monitor (MERCO).

Nº 1

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Corporate Responsibility. Our Focus on Sustainability

Indra’s key sustainability initiatives: The three materiality levelsIndra believes that its sphere of responsibility can be defined and divided into 3 areas:

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Indra 2007

1. responsible initiatives shared by the business sectorThere are several material initiatives that Indra has to report on and act in the same way as other business sectors because they are shared challenges in business sustainability.

These aspects include, among others: the obligations of Corporate Governance, transparency and shareholder participation; the reconciliation of employee work and family life; service quality, the fostering of responsibility throughout the value chain; and, particularly among suppliers, the company’s environmental management.

2. it sector-specific responsible initiatives Initiatives where it is necessary to act in an unorthodox way owing to their special significance and transcendence in the sector in which Indra operates.

This is the case, for example, of the recruitment, retention and management of the talent that Indra relies upon in order to innovate, and innovation is key to our competitiveness and to our economic, social and environmental sustainability. This range of initiatives also includes our collaboration -within the framework of R+D- with knowledge institutions and other organizations in order to innovate more efficiently.

3. solutions and services for environmental and social sustainabilityInitiatives shaped around the social and environmental challenges in which Indra’s IT services and solutions can make all the difference.

It is in this sphere that we bring to bear all our capacity for innovation in services and solutions in a variety of areas which Indra looks upon as having a high sustainability value:

• Technological solutions and services that make it easier to manage or improve the environment. One example is our set of remote sensing solutions; not to mention many others which represent savings in energy consumption, raw materials or time for our customers, and, indirectly, for society at large.

• Technological solutions and services aimed at enhancing the reliability, safety and efficiency of public services. Take, for instance, our solutions for public administrations, public health services and public transport systems. In developed societies and in those usually described as transitional, emerging or developing economies, public services have shown themselves to be a particularly critical area for society and the welfare of citizens, and for economic and social development as a whole.

• Technological solutions and services which support the safety and security of persons (Security Solutions), a high value area of responsibility for Indra’s clients and the societies in which we carry out our activity.

• Solutions and services which enable consultation processes and ensure their technical reliability, bearing in mind that modern democratic systems are based on these processes.

• Solutions and services that make accessibility easier for the physically and mentally challenged. Indra’s Chairs of Accesible Technologies are concerned with this particular area, bringing together a number of collaborations with knowledge institutions, aimed at generating innovation in the areas of Accessibility and Inclusion.

• Solutions and services for the management of company sustainability. At Indra, through our subsidiary Euroquality, we offer a range of environmental, sustainability and responsibility consultancy services.

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Corporate Responsibility. Our Focus on Sustainability

Economic Performance

• Economic sustainability and profitability are essential to the development of Indra and guarantee the wealth creation upon which we can generate shared value. We believe that the efficient management of the Company, and transparency and accuracy when it comes to reporting our financial performance, are all crucial to our reputation and brand, in both the financial and trading markets.

• Indra’s reach is global and we serve several geographic areas, both in developed countries and in transitional economies and developing regions. This global nature also helps to foster the establishment of Indra work centres internationally, contributing to local job creation -with the emphasis on knowledge-intensive jobs- and to the overall development of the communities where we operate.

• We consider our suppliers and knowledge institutions as our partners in the creation of value and as allies in innovation which constitute our main responsibilty.

Managing the Environment

• At Indra, we believe that our IT services and solutions are efficient in helping to improve environmental management not only for our clients, but also for society in general. The Company is committed to research, development and innovation in this area, and we consider it our main contribution to environmental sustainability.

• Although the sector in which Indra carries out its activity is not a highly polluting one, we believe our processes and activities must be managed efficiently to keep the impact on the environment down to a minimum. Indra is committed to improving this management, and we are gradually certifying all our work centres and cutting down on energy and raw materials.

Job creation and social developmentIndra’s global character promotes the establishment of work centres around the world.

We’re committed to the EnvironmentProcesses and systems must be managed in such a way so as to have the least environmental impact.

How we focus on Sustainability

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Indra 2007

labour practices and work ethics

• Our vision of responsibility linked to innovation through knowledge is based on Indra’s professionals, as they are the ones who research, learn, teach and, in short, innovate not only in our solutions and services but also in our way of doing things and in our way of thinking.

• The importance we place on our employees is reflected in the fact that recruiting, retaining and managing talent are determining factors for Indra’s sustainability.

• Within this management of talent, Indra is committed to diversity, and is developing a number of policies aimed at enabling the development of the talent and skills of the Company’s employees.

• At Indra, we have a Code of Professional Conduct which provides a framework for our employees’ behaviour.

Human rights

• The activities of the IT services sector is characterised by highly-qualified human captial which makes it improbable that there will be problems associated with human rights such as child or forced labour and freedom of association. However, by considering the value of people in terms of their diversity, Indra has made a commitment to respect human rights and to foster them through the Company’s business activity, by signing the U.N.’s Global Compact.

• Indra operates on an international scale, in geographical areas with varying degrees of social, economic, political and environmental development. Some of our markets display different levels of acceptance, promotion and respect for human rights. Indra is determined to foster human rights through its business activity.

impact on the communities where we operate and on society as a Whole

• Indra’s best contribution to society is made through innovation in the innovation of technological services and solutions which help to improve living conditions in the societies where we operate. For instance, services and solutions for public services –and their security and efficiency– such as public health services; those which support personal safety and security; or those which enable electoral processes and their technical reliability in modern democracies.

• Knowledge institutions are a strategic stakeholder for Indra, in the framework of innovation, which is a priority in our corporate responsibility. Working alongside these institutions, we can innovate through collaborations and advanced R+D projects, and through recruitment of talent for the Company, by incorporating young people starting out on their professional careers.

Professionals are our baseIndra has a Code of Professional Conduct as a framework for our employees’ behaviour.

Innovation: Indra’s best contributionWe believe that technological services and solutions improve living conditions.

We subscribe to the U.N. Global CompactThrough our extensive business activitivies we promote respect for human rights.

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Corporate Responsibility. Responsibility Management

Responsibility ManageMent At Indra we believe that responsibility must be integrated throughout the entire organization and must be aligned with our activity and goals. Consequently, we have established a decentralized Responsibility Management System that is applied across the organisation as a whole.

21

Indra 2007

Ms. Isabel Aguilera is the member of the Board of Directors to whom Indra managers report in all matters related to Responsible Corporate Management, and who informs the Board about these matters. The person responsible for Corporate Responsibility is Ms. Emma Fernández, Indra’s General Manager of Talent, Innovation and Strategy.

Corporate Responsibility Beatriz Sánchez Guitián Alberto Muelas

Investor & Shareholder Relations Diana Morilla Pastor Alberto Valdés Pombo

Corporate Governance Carlos González Soria Sandra Martín Morán

Employee Relations Francisco Martín Elena Navarro Isabel González Patricia Ferrando

Talent Management Francisco Martín Mario Kogan

Internal Communication Esperanza Vázquez

Client Relations Beatriz Sánchez Guitián

Supplier Relations Antonio Pérez Marco José Marcos Jiménez Cimas

Partner Relations Gonzalo Perlado

Quality and the Environment Antonio de Carvajal Jesús Concepción

University Relations Antonio de Carvajal Carlos Fernández Patricia Ferrando

Community Relations Montse Puyol Mara Zabala

Media Relations Esperanza Vázquez

Administration Carlos Campos

22

Main Milestones in Responsibility Management

Corporate Responsibility. Responsibility Management

2004 2005 2006 2007• Indra defines its vision of Corporate Responsibility (CR).

• Indra sings the U.N.’s Global Compact.

• Indra defines Sustainability as an innovation opportunity for its services and solutions.

• The Company draws up a map of material aspects in Responsibility and Sustainability.

• Four areas of innovation in services and solutions linked to sustainability are defined.

• Indra lays down the guidelines for its first worldwide Sustainability and Responsibility survey with a view to incorporating the Responsibility Management values and expectations in those markets where we operate.

• Indra sets out its position on the Digital Divide, and on relations with Governments and Public Administrations.

• CR strategic stakeholders are defined through interviews with Company executives and sector benchmarking: Shareholders, Employees, Clients, Suppliers, Environment, Society, Communities where we operate and, as something particular to Indra, Knowledge Institutions.

• RC is placed at Boardroom level and the monitoring of initiatives is assigned to Isabel Aguilera, an Independent Director.

• Updating of the Professional Code of Conduct begins.

• The Indra brand is reviewed to incorporate sustainable values.

• Company CR is diagnosed using qualitative and quantitative information obtained via interviews with executives and departments in charge of stakeholder relations.

• The diagnosis is reviewed with every manager of the target stakeholders.

• A Responsibility Master Plan is drawn up classifying policies according to stakeholders, programmes or actions to be carried out or to be improved, the indicators upon which reports are to be made and the persons responsible.

• The Responsibility Management team is integrated in the Company.

• The Master Plan is reviewed working with those responsible for each of the target publics, establishing new objectives and activity.

• Development of the Responsibility Management System for future accountability with external verification (AA1000).

• Research on communication with shareholders is carried out. • Indra creates the Minor Shareholders’ Bulletin.

• Indra is quoted on the selective sustainability stock exchange indices DJSI and DJSISTOXX.

• Indra leads the Computer Services and Internet technological subsectors of the DJSWI and DJSI STOXX indexes.

• Debate groups at different levels of the Company are used to involve employees in the CR Master Plan, vision and diagnosis.

• CR training, awareness raising and internal communication. The first internal communication actions are carried out: specific web page, glossary, questionnaire, etc…

• Indra’s Diversity Policy is defined.

• The “With your opinions we can improve” survey is launched on the working climate which generates new internal policies.

• Indra signed the “Inserta Convention” with the ONCE Foundation aimed at integrating and promoting physically challenged people.

• Plan Equilibra gets under way as a holistic concept of reconciliation of work and personal life.

• Indra launches its “Equality Plan” equal opportunities plan.

• Work continues on “Equilibra”.

• Following the incorporation of Azertia, the Company carries out a work culture audit.

• Plan 90 is initated to integrate Azertia and Soluziona.

• The Equality Plan is strengthened with a three-year schedule.

• Certification as a Family Responsible Business.

• “Equipo Equilibra “ is initiated to develop the organisational plan.

• Bases are established to hold formal and periodic consulations on Responsibility with labour unions.

• Improvements are made to the Client Satisfaction measurement systems. • Improvements are made to the Client Satisfaction measurement systems.

• Improvements are made to the Client Satisfaction measurement systems.

• Improvements are made to the Client Satisfaction measurement systems.

• The Azertia and Soluziona centres are integrated into Indra’s quality system.

• Indra fosters IT Security as a particularly relevant part of Responsibility.

• The Company defines its Framework Principles for relations with suppliers.

• A system for consultation and survey of suppliers is established...

• The Suppliers’ Portal is set up, giving rise to significant reductions in both time and consumption.

• Systems for consulting and surveying suppliers are updated to include Responsibility and Sustainability aspects.

• Responsibility is fostered in the value chain.

• Indra carries out its first assessment of the state of Responsibility among its 110 partners, with a view to defining future actions aimed at fostering Responsibility among those partners.

• The Torrejón de Ardoz and San Fernando de Henares centres (both in Madrid) receive the ISO 14001 and EMAS certifications and environmental sensibility plans are developed.

• The Triángulo Building obtains EMAS certification. • Indra’s centers in Aranjuez (Madrid) and Roc Boronat (Barcelona), and the Triángulo Building (Madrid) obtain environmental certification.

• Special sessions are held to raise awareness on environmental issues within the Company at the Aranjuez and Barcelona centres.

• Research is conducted into the environmental impact of Indra products and services.

• Indra sets up a new website providing information to help raise awareness of environmental issues.

• A representative was appointed for Relations with Universities. • The Indra Chair is created at Madrid’s Polytechnic University. • The Company considers the importance of consulting Knowledge Institutions with regard to Responsibility.

• The Company’s first CR Report is drawn up, following GRI guidelines; and indicators for chapters 1, 2 and 3 are reported.

• The second CR Report is drawn up following GRI guidelines. • Indra’s fourth CR Report is drawn up following GRI guidelines.

• The 5th Responsibility Report is drawn up following GRI guidelines (applying the highest level: A+), and is verified externally.

23

Indra 2007

2004 2005 2006 2007• Indra defines its vision of Corporate Responsibility (CR).

• Indra sings the U.N.’s Global Compact.

• Indra defines Sustainability as an innovation opportunity for its services and solutions.

• The Company draws up a map of material aspects in Responsibility and Sustainability.

• Four areas of innovation in services and solutions linked to sustainability are defined.

• Indra lays down the guidelines for its first worldwide Sustainability and Responsibility survey with a view to incorporating the Responsibility Management values and expectations in those markets where we operate.

• Indra sets out its position on the Digital Divide, and on relations with Governments and Public Administrations.

• CR strategic stakeholders are defined through interviews with Company executives and sector benchmarking: Shareholders, Employees, Clients, Suppliers, Environment, Society, Communities where we operate and, as something particular to Indra, Knowledge Institutions.

• RC is placed at Boardroom level and the monitoring of initiatives is assigned to Isabel Aguilera, an Independent Director.

• Updating of the Professional Code of Conduct begins.

• The Indra brand is reviewed to incorporate sustainable values.

• Company CR is diagnosed using qualitative and quantitative information obtained via interviews with executives and departments in charge of stakeholder relations.

• The diagnosis is reviewed with every manager of the target stakeholders.

• A Responsibility Master Plan is drawn up classifying policies according to stakeholders, programmes or actions to be carried out or to be improved, the indicators upon which reports are to be made and the persons responsible.

• The Responsibility Management team is integrated in the Company.

• The Master Plan is reviewed working with those responsible for each of the target publics, establishing new objectives and activity.

• Development of the Responsibility Management System for future accountability with external verification (AA1000).

• Research on communication with shareholders is carried out. • Indra creates the Minor Shareholders’ Bulletin.

• Indra is quoted on the selective sustainability stock exchange indices DJSI and DJSISTOXX.

• Indra leads the Computer Services and Internet technological subsectors of the DJSWI and DJSI STOXX indexes.

• Debate groups at different levels of the Company are used to involve employees in the CR Master Plan, vision and diagnosis.

• CR training, awareness raising and internal communication. The first internal communication actions are carried out: specific web page, glossary, questionnaire, etc…

• Indra’s Diversity Policy is defined.

• The “With your opinions we can improve” survey is launched on the working climate which generates new internal policies.

• Indra signed the “Inserta Convention” with the ONCE Foundation aimed at integrating and promoting physically challenged people.

• Plan Equilibra gets under way as a holistic concept of reconciliation of work and personal life.

• Indra launches its “Equality Plan” equal opportunities plan.

• Work continues on “Equilibra”.

• Following the incorporation of Azertia, the Company carries out a work culture audit.

• Plan 90 is initated to integrate Azertia and Soluziona.

• The Equality Plan is strengthened with a three-year schedule.

• Certification as a Family Responsible Business.

• “Equipo Equilibra “ is initiated to develop the organisational plan.

• Bases are established to hold formal and periodic consulations on Responsibility with labour unions.

• Improvements are made to the Client Satisfaction measurement systems. • Improvements are made to the Client Satisfaction measurement systems.

• Improvements are made to the Client Satisfaction measurement systems.

• Improvements are made to the Client Satisfaction measurement systems.

• The Azertia and Soluziona centres are integrated into Indra’s quality system.

• Indra fosters IT Security as a particularly relevant part of Responsibility.

• The Company defines its Framework Principles for relations with suppliers.

• A system for consultation and survey of suppliers is established...

• The Suppliers’ Portal is set up, giving rise to significant reductions in both time and consumption.

• Systems for consulting and surveying suppliers are updated to include Responsibility and Sustainability aspects.

• Responsibility is fostered in the value chain.

• Indra carries out its first assessment of the state of Responsibility among its 110 partners, with a view to defining future actions aimed at fostering Responsibility among those partners.

• The Torrejón de Ardoz and San Fernando de Henares centres (both in Madrid) receive the ISO 14001 and EMAS certifications and environmental sensibility plans are developed.

• The Triángulo Building obtains EMAS certification. • Indra’s centers in Aranjuez (Madrid) and Roc Boronat (Barcelona), and the Triángulo Building (Madrid) obtain environmental certification.

• Special sessions are held to raise awareness on environmental issues within the Company at the Aranjuez and Barcelona centres.

• Research is conducted into the environmental impact of Indra products and services.

• Indra sets up a new website providing information to help raise awareness of environmental issues.

• A representative was appointed for Relations with Universities. • The Indra Chair is created at Madrid’s Polytechnic University. • The Company considers the importance of consulting Knowledge Institutions with regard to Responsibility.

• The Company’s first CR Report is drawn up, following GRI guidelines; and indicators for chapters 1, 2 and 3 are reported.

• The second CR Report is drawn up following GRI guidelines. • Indra’s fourth CR Report is drawn up following GRI guidelines.

• The 5th Responsibility Report is drawn up following GRI guidelines (applying the highest level: A+), and is verified externally.

24

Corporate Responsibility. Brand Value

BRAND VALUEEver since the Company was first set up in 1993, Indra has never ceased to consolidate its position as a successful business venture, going from strength to strength, offering an increasingly larger and broader range of products and services and constantly extending its worldwide reach.

Originality

Sensitivity

Stringency

Determination

Virtuosity = Technique + Talent

25

Indra 2007

INDRA = TALENT + KNowLEDgE + DIscIpLINE

The Indra brand, based on the talent of its professionals and the Company’s commitment to innovation, is supported by the solid conviction to reaffirm its position not only amongst its clients and employees, but also with all of its target publics without exception. A brand and its values which are valid in each and every context in which the Company carries out its activities, and which must also be capable of enduring the passage of time and keep totally in step with Indra’s overall strategy.

In a bid to ensure these goals, since January 2007 Indra has worked to renovate the Company’s corporate identity which maintains its base, its essence and all the main elements of the brand, but at the same time updates it to adjust to the

evolution which Indra has undergone since its founding. In other words, to support and incorporate Indra’s current reality and that of its future.

The result is that Indra now boasts a brand on which rests the Company’s real competitive edge and which emphasizes the aspects that make the Company unique and special in all our spheres of activity.

This vision of the brand is based on four fundamental values, shared by all of us who make up Indra and who determine the organisation’s collective behaviour:

Determination• We are moved by ambition, by our will to

push boundaries forward.• We are essentially entrepreneurs, fast

and restless; we have a strategic vision.• On a day-to-day basis. we function like

the large enterprise which we are: we display a competitive and demanding spirit. We make every effort to attain our goals and to go beyond expectations.

• We want to stand as a wordlwide reference.

stringency• We never put a foot wrong. Everything

we do is based on solid strategic planning.

• We are persevering, stringent, meticulous and, consequently, accurate and reliable.

• Our work is based entirely on logic and scientific method. Our methodology is widely renowned and universally acclaimed. We aspire to perfection.

sensitivity• We know what intuition is worth when

it comes to defining a business strategy. We draw upon empathy to put ourselves in our clients’ shoes and to adapt to their needs. We believe in being humble.

• We show concern for the satisfaction of our employees.

• We pursue a responsible form of innovation, beneficial for all concerned. In all of our spheres of activity we create solid, lasting and positive ties with all of our target publics.

originality• We look at every success in relative

terms, fully aware that things are always subject to rapid change. That’s why we always look to the future and give innovation the importance that it deserves.

• We believe in doing things differently, bringing together the best of our experience in each area and striving to offer our clients customised solutions.

• This makes us unique and sets us on an excellent footing for becoming an industry paradigm.

• Whenever possible, we do our utmost to be ahead of the field and to surprise one and all.

The idea of our brand describes the system of work as well as our future lines of work: virtuosity and an unswerving belief in the sum of technique and talent.

Indra’s way forward is set by a combination of scientific vocation and the talent of our professionals. The result: Accuracy, Growth and Responsible Innovation.

Indra’s work does not stop at achieving company goals: we are fully and permanently aware of the need to push beyond our own limits and to rise to the challenge of constantly transforming knowledge into value.

Shortly, we shall be reviewing our Code of Conduct, the internal framework for our Company’s ethical and responsible behaviour. It is slated to be updated later in 2008 according to the abovementioned brand values. Updating will involve redefining our commitments to each and every one of the target publics with whom we work in order to share with them this new way of doing things.

At Indra we work to generate value. And these efforts translate into facts and figures, which is why our goal is to ensure that our financial performance continues to be as exceptional as the work that we carry out for our clients.

Indra and Its shareholders Sustainable value, transparent management

26

Corporate Responsibility. Indra and its Shareholders

Shareholders

Employees

Customers

Suppliers

Environment

Knowledge institutions

Society

Scope: Indra Sistemas and all its dependencies, joint enterprises and associates.

27

Indra 2007

Creating shareholder value ranks among a company’s main responsibilities, and is a key factor for attaining the economic sustainability that gives rise, in turn, to social value. The duty to provide information about a company’s economic and financial situation, and to exercise accountability in a transparent and equitable manner , is another key component of any publicly quoted company.

At Indra we are convinced that good corporate governance and Shareholder Relations rank among a company’s most significant spheres of responsibility.

The 2007 Corporate Governance Report that complements this Corporate Responsibility Report provides ample information about our Company, and details the workings of the Company with regard to transparency and information, beyond what is contained in this particular section of the CR Report.

Indra’s Corporate Governance Team:1. Carlos González Soria2. Victoria Lois Rivera3. Diana Andrés Rodríguez 4. Sandra Martín Morán5. Diego Gutiérrez González-Palacios

1.1.

4.

5.

2.

28

Corporate Responsibility. Indra and its Shareholders

One of the principles that inspire Indra’s Corporate Governance is the one that ensures that shareholders, investors and the markets in general are provided with extensive and updated information about the Company’s economic and financial situation, its business, its management and other aspects of Corporate Governance in accordance with the principles of transparency and equality treatment.

This is why Indra not only complies strictly with the legal requirements of information communication for Public Limited Companies and the regulations applicable to listed companies, but also voluntarily offers additional information to ensure that shareholders, investors and clients in general have sufficient knowledge of the company’s situation. This additional and voluntarily provided information includes the following:

• Annual Corporate Governance Report.• Our website which, as well as legally

required information, provides useful information for shareholders and investors, such as:- Monitoring of the General Shareholders’

Meeting online via the website.- The option of registering on an

email distribution list whereby the Shareholders’ Office actively informs subscribers of new content available on the corporate website.

- Quarterly financial statements available in PDF and Excel format; the latter makes it easier for users to manage the information.

- Future presentations to be made to investors and analysts.

- The Investor Agenda, featuring an annual schedule including events planned with analysts and investors and the expected dates for publishing the quarterly results.

- Analysts’ recommendations for Indra, including their most recently published report with prior consent.

- Information on the progress of General Shareholders’ Meetings of the last four years.

- Company press releases and news on Indra published in the media.

- A report on topics on the agenda at the General Shareholders’ Meeting.

In 2007 Indra conducted a review of its Corporate Governance rules and adapted its Social Statutes, Shareholders’ Meeting Rules and Board of Directors’ Rules to the recommendations laid down in the Unified Code on Good Governance, published by the Spanish markets watchdog, CNMV ( National Stock Market Commission).

The Company’s interest in Corporate Governance is reflected in the new Board Rules, which open the door to the setting-up and supervision of a

procedure allowing employees to inform the Audit and Compliance Commission (in complete confidentiality) of any potentially significant irregularity in company practice, in particular anything related to finances and accounting which could impact on the functioning of the Company.

The new Board Rules also place special significance on one of its many functions in particular: the analysis, supervision of compliance and adoption of the national and international rules and recommendations on Good Corporate Governance. Indra’s Board had already taken charge of all of these activities although they were not explicit in the Company’s internal rules up until now.

Corporate Governance

Indra’s web page allows shareholders to follow the Shareholder’s Meeting online

29

Indra 2007

Indra has renewed its presence in the Dow Jones Sustainability World Index (DJSWI) and the Dow Jones STOXX Sustainability Index (DJSI STOXX) following its most recent review in 2007 and has also obtained the best score –based on economic, social and environmental criteria– in the IT services area (Computer Services and Internet). This score in the ranking comes as acknowledgement of Indra’s Social Responsibility, Corporate Governance and Sustainable Development policies, and enhances the value of our shares as a form of what is known as Socially Responsible Investment.

Among the twenty companies that make up the technological sector of the DJSWI, the score obtained by Indra puts it ahead of rivals in the IT services sector, one of the five sub-sectors into which the technological market is divided (the others are: semi-conductors, software, communications technology and hardware). Indra was first listed in these indexes in September 2006.

The DJS World Index picks the world’s 318 most socially responsible companies from the world’s 2,500 biggest firms that make up the Dow Jones World Index. The Dow Jones STOXX Sustainability Index (DJSI STOXX) picks the 156 leading European companies in the field of Sustainability from a total 600 companies listed in the European DJ STOXX 600 index.

The family of indexes that make up the Dow Jones Sustainability Group Index (DJSGI) has been prepared annually since 1999 using information requested from the companies with the greatest market capitalisation, and it is a reference for the business and financial sectors. The information and data used to decide whether or not a company is admitted to the DJSGI is obtained by means of a broad-ranging 88-point questionnaire and from publicly available information. The companies which are listed (known as ‘Member of DSJI’) are publicly acknowledged as leaders in social and environmental areas, and as generators of considerable economic activity.

Indra renews its presence in the dow Jones sustainability indexes, with the maximum score for It services

leaders in Corporate Governance, a company that inspires trust

• For the third year running, Indra closed 2007 at the top of the Ibex 35’s Corporate Governance table, put together by the independent firm of consultants, Corporate Governance Consultants.

• The Spanish consumer group, Organización de Consumidores de España (OCE), ranked Indra among its top ten companies with regard to Corporate Governance.

• Indra was also placed sixth in Future Brand’s Barómetro de Confianza de las Empresas Españolas (Spanish Companies’ Trustworthiness Barometer).

30

Corporate Responsibility. Indra and its Shareholders

2003 2004 2005 2006 2007

Nº of viewings of analyst reports

174

140

118 126

225

2003 2004 2005 2006 2007

Nº of phone enquiries handled by the Shareholder Office

2,1251,906

2,3082,183

2,299

Indra’s General Shareholders’ Meeting Regulations establish a set of measures and procedures which exceed those legally required, with the purpose of facilitating and promoting the informed and active participation of shareholders and the exercise of their political rights in the General Meetings which have been the practice since 2003. Among these, we highlight the following:

(i) As soon as The Board of Directors knows the probable date for convening and holding the next General Meeting, it sends a notice (to the CNMV) and posts it on the website of the company or of the Shareholders’ Office, so that those shareholders who want to propose matters to be discussed by the Board of Directors or to be included on the agenda.

(ii) Once a call for a General Meeting is published, the Board puts at the shareholders’ disposal explanatory information about each of the proposals that the Board intends to submit.

(iii) In addition, when the Meeting announcement is published, a channel is opened on the Company website or the Shareholders’ Office website, enabling shareholders to make suggestions and

proposals on the topics on the agenda, as well as to ask for clarification or extra information about those topics.

(iv) To the extent that the legal system allows it, the Board has a duty to promote the introduction of electronic means to facilitate shareholder communication with the Company, their active participation and the exercise of their political rights.

In compliance with the order in the Regulations, mentioned above and proposed by the Board of Directors, the Ordinary General Meeting (OGM) held in June 2004 changed the Social Statutes to allow the use of electronic and remote communication means by the shareholders for exercising their attendance, representation and voting rights. Once the statutory framework was passed at the 2005 and 2006 OGMs, the mechanisms allowing shareholders to exercise these rights were authorized through the Company’s website and by means of ordinary mail. The procedure for the use of these means is included in the corresponding General Meeting notification.

Shareholder participation

31

Indra 2007

An Independent Director, Ms. Isabel Aguilera, took charge of the monitoring of the Board’s Responsibility initiatives.

In 2007 the Board dealt with the following Responsibility-related topics:• Board Meeting of March 22nd 2007.

Presentation of Indra Equal Opportunities Plan, explaining the actions carried out by the Company in a number of programs and in a variety of spheres in order to implement measures aimed at creating equal opportunities among the sexes.

• Board Meeting of April 19th 2007. The Board passed the Annual CR Report and the Board Functioning Assessment Report.

• Board Meeting of May 10th 2007. The Annual Corporate Governance Report was passed.

• Board Meeting of December 20th 2007. The Board passed the new Board of Directors’ Rules, adapted to the recommendations of the Unified Code of Good Governance.

responsibility and the Board of directors

The Department of Shareholder and Investor Relations is responsible for communications with the investment community and meets its brief by maintaining and developing a variety of tools for information, dialogue and participation, with both institutional and minority investors.

In the area of institutional investors, Indra carries out various one-to-one presentations both at road shows and at conferences where it takes part in response to a specific request from a shareholder.

In 2006, we created a specific newsletter for minority shareholders after holding consultations with them to inquire into their needs and expectations. The new

instrument joined the existing array of tools maintained and developed over the years by our Shareholder and Investor Relations team with the aim of ensuring smooth-flowing and efficient communications with the people who give their financial support to the Company.

Indra has an extremely important communication channel, its corporate website, which provides specific information for shareholders and investors; it is updated constantly and constitutes a complementary channel for communicating with these particular communities. The website, which is easily accessible, provides not only the content required by the CNMV’s 1/2004 - March 17th Circular, but also additional useful information.

the department of shareholder and Investor relations

Indra’s annual report gets an honorary Mention in the llotja PrizesIn 2007, Indra’s Annual Report received an Honorary Mention in the 43rd Llotja Prizes, awarded by The Barcelona Chamber of Commerce, Industry and Navigation. The jury emphasised that the award acknowledges the merits in terms of both clear exposition and breadth of content of the information that the Report places at the disposal of both Shareholders and Markets.

Indicators 2003 2004 2005 2006 2007

Nº of entities that make reports of analysis of coverage of Indra per year. 36 40 41 31 27

Nº of international entities which make reports of analysis of coverage of Indra per year. 20 23 24 20 15

Nº of entities which closed the year with a positive recommendation to purchase. 23 27 12 16 20

Nº of one-on-one meetings. 289 306 275 216 256

Nº of institutional investors seen per year. 619 686 722 376 337

Indra is firmly convinced that training is a vital tool for professional development. We employ talented professionals and we help them to grow and stand out in their particular field of work. We value the efforts of our employees and we strive to motivate them, to help them feel satisfied when it comes to taking on the markets’ tougher challenges.

Indra and Its EmployEEs Diverse talent with a worldwide scope

Corporate Responsibility. Indra and its Employees

32

Shareholders

Employees

Customers

Suppliers

Environment

Knowledge institutions

Society

Scope: Indra Sistemas and all dependent companies, joint

ventures and associates. Administradora de Archivos/

Archives Administrator (ADEA) and IB Television consolidate

the percentage of their stake (50%).

33

Indra 2007

We believe that the sustainability of a company like Indra hinges on its ability to innovate and, in short, on the people who make up the team and their ability to not only come up with new solutions and services, but also to learn, teach, and foster new ways of doing things and fresh ways of thinking.

Clearly then, recruiting, managing and retaining new talent is a strategic priority for Indra; so too is the management of an increasingly diverse workforce. In 2007, as well as completing the integration of Azertia and Soluziona, Indra took on 4,000 new employees, an increase of 20% on the previous year’s figure. Of the total workforce, 5,200 employees (22%) work outside of Spain, a clear reflection of Indra’s global scale.

Indra’s Health and Safety in the Workplace Team: 1. Francisco Javier Alos Cañizares2. Juan Carlos Sánchez Cuevas3. Mª Dolores Sáez de Ocariz4. Rosa Berciano Pérez5. Mónica Paraíso Vuyovich6. José Mario González López7. Mª Antonia López Huertas8. Juan José García López9. Yolanda Bueno García 10. Alfonso Pérez Camino11. Francisco Manzano López

1.

5.

6.7.

8.

9.

10.

11.

4.

3.

2.

34

Corporate Responsibility. Indra and its Employees

Indicators 2003 2004 2005 2006 2007

General Profiles

Percentage of graduates and highly-qualified employees 84 85 82 80 771

Executives 105 119 122 126 320

Commitment and Motivation

Average length of service 9.6 9.7 8.9 7.6 5.81

Percentage of employees in the variable salary system 28 29 252 253 201

Percentage of employees promoted 3.7 4.0 5.72 11.03 8.54

Nº of employees in skills evaluation systems 4,853 5,595 6,2725 7,4246 11,0787

Percentage of employees in Stock Option Plans 60.9% 54.9% 54.5% 124 employees 79 employees

Undesired external rotation 4.0 4.5 6.52 9.83 18.88

Experience

Average age 38.3 38.6 38.1 36.73 35.111

Average professional experience 9 13.9 14.3 13.8 12.4 10.8

Average age of executives 48.1 47.8 46.9 48.43 46.41

Average professional experience of executives9 24.4 24.1 23.4 24.9 22.9

2003 2004 2005 2006 2007

Total Workforce *

6,372 6,619

8,2829,915

23,482

60

3725

10824

991

701

3,540

2,090

3,756

2,4122,565

1,430

1,699

915

1,162

538691

261

402134

Women

Men

1 Data representative of 87% of total staff. 2 Data representative of 93% of total staff. 3 Data representative of 91% of total staff. 4 Data representative of 53% of total staff. 5 Data representative of 84% of total staff. 6 Data representative of 83% of total staff. 7 Data representative of 59% of total staff. 8 Data representative of 96% of total staff. 9 Estimated. 10 Data representative of 81% of total staff. 11 Data representative of 72% of total staff. 12 Data representative of 60% of total staff. 13 Does not include workplace risk training after 2004. 14 Indra Sistemas. Includes employees from Azertia and Soluziona from October 1, 2007.

* Estimated.

35

Indra 2007

Indicators 2003 2004 2005 2006 2007

Training and Knowledge

Total training time received (in hours, including online)13 124,020 166,912 169,58810 222,84410 394,02011

Total online training time received 47,02010 58,57210 106,97111

Training Activities 80210 85310 1,53211

Nº of employees who attended 7,78010 8,42810 15,05511

Expenditure on training as a percentage of total remuneration 2.15 2.8 2.3810 2.5710 2.4811

Training Appraisal: Participant satisfaction (1-5) 3.9 4 4.110 410 411

Work Attraction

Nº of unsolicited job applications9 18,400 19,231 18,753 19,24810 19,3124

Nº of job applications per post advertised9 268 216 176 170 93

Reconciliation of Work and Personal Life

Nº of teleworkers 25 workers 50 workers 82 workers

Percentage of workers satisfied with teleworking 85% 100% 100%

Employees on Maternity Leave14 127 160 174

Applications for reduced workday14 59 280 242

Knowledge Management

Nº of messages in forums 9,293 8,520 6,792

Nº of topics discussed in forums 1,508 1,456 1,784

Average nº of forum participants per day 1,561,095 2,566,738 2,390,069

Percentage of professional/company topics in forums 77/23 51/48 42/58

Social Benefits

Percentage of employees with access to Social Security benefits in case of illness 99.4%12

Percentage of employees with access to Social Security benefits in case of accident 93.5% 100%10 100%12

Percentage employees on food benefits 67% 64%10 52%12

Spain Rest of EU Latin America

USA Rest of the world

Breakdown of workforce by geographical area (%)

77.9

3.5

13.6

2.1 2.9

36

Corporate Responsibility. Indra and its Employees

Reconciliation

We believe that the diversity of our employees is a key factor for innovation and, consequently, for our ability to compete in the IT sector.

This diversity means that we must take into consideration not only different skills but also different personal needs that must be satisfied as a fundamental part of our policies for attracting, retaining and developing talent. That is why at Indra we have a program, set up in 2005, called ‘Equilibra’, which is designed to make work as flexible as possible so as to adapt it to

the needs of each and every one of our employees.

At the same time, ‘Equilibra’ comprises two programs: ‘Concilia’ and ‘Iguala’, aimed at developing the potential for the reconciliation of work and personal life for our professionals, which we believe is fundamental if equal opportunities are to be something more than just good intentions.

Why isn’t ‘Equilibra’ applied by Indra the world over? Why do we think globally and act locally?

Being a global company means tanking into account local peculiarities when it comes to managing human resources. In the case of ‘Equilibra’, which contains important measures aimed at reconciliation, this is a particularly delicate issue, because it is possible that employees’ expectations and needs in Spain are not adequately valued or are not even asked for in other parts of the world.

That is why at Indra we have designed a worldwide survey that will be carried out sometime in 2008 to help us to take a new look at the expectations and values of our employees the world over in areas of responsibility that contain the labour policies that they most value.

`Equilibra’*: Reconciliation+Equal Opportunities

In 2007 we improved the measures already in place, such as the gift voucher and help for the physically challenged.

Also in 2007, we increased the services provided by Indraclub, both in the number of suppliers and in additional services. Since the end of the year, our employees have access to a wide range of services and products (with over 150 suppliers), with exclusive direct discounts on continuous promotions. In addition, employees now have the chance to choose the suppliers that they want to add to the existing list, and an “Employees’ Week” in which all our employees are given the chance to acquire an article of their choice at a specially negotiated discount price.

Other advances include Indra’s formal application for EFR (Empresas Familiarmente Responsables; Family-Responsible Employer) certification for which we carried out two fundamental actions: we informed all of our workforce that Indra had taken on this commitment with this kind of policy; and we carried out a diagnosis prior to the EFR certification process to assess the degree of knowledge that people had of our reconciliation policies. The diagnosis revealed that 63% of the participants knew about the measures, although some of the more specific measures, such as those relating to maternity/paternity and physical disability, were relatively less well-known.

Indra allows its employees to work from home by telephone when possible

* Applicable to Indra Sistemas, not including the

employees from the integration, in October 2007,

of Azertia and Soluziona, to whom these programs

began to be applied as of February 2008.

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Indra 2007

Indra fosters a culture of reconciliation: ‘Equipo Equilibra’

Turning work/personal life reconciliation into a reality requires more than just defining and implementing a policy. Employees have to be provided with information about the policy, initiatives must be identified, as well as potential stumbling blocks to implementation, and all with the aim of advancing confidently along the road to a culture of flexibility. That is why in 2007 we set up ‘Equipo Equilibra’, the Equilibra Team.

This team, made up of 12 members, each of whom work in different Indra markets and environments and who are particularly sensitive to the issues of equal opportunities and reconciliation, aim to be a two-way communication channel between the needs of our employees and the Company’s HR strategy in these particular spheres. This channel is there to pick up on our employees’ concerns, to create awareness, to incorporate employees’ points of view on a variety of issues concerning habits and routines which we must act upon if we are to make progress in the right direction.

1. A compressed work week (no work on Friday afternoons).

2. A flexibility band of 30 or 60 minutes (at each work centre’s discretion) in starting and finishing times.

3. Flexibility in time for lunch: 30 or 45 minutes, also at each work centre’s discretion.

4. Fathers-to-be have three working days’ paternity leave, one day more than the period laid down by law.

5. When employees travel to their children’s weddings, they are entitled to one day’s leave if the wedding is in the same province or in a geographically adjacent one. Leave can be increased to two or additional days in special cases.

6. In the event of severe illness or death of a member of an employee’s immediate family (up to second degree of kin), employees are entitled to 3-5 days’ leave -one day more than the period laid down by law- depending on the travelling involved.

7. In the event of temporary disability involving hospitalisation during an employee’s vacation time, the days in hospital will not count as vacation time

8. Leave to accompany children under 14 to a doctor’s appointment, or of any other age if the child is physically challenged (also applicable to spouse)

9. Employees attending an official training course are entitled to 10 days or 20 half-days a year for sitting examinations

10. Employees are entitled to the time required for attending a doctor’s appointment (Family Doctor or Healthcare Specialist)

11. Employees who have been with the Company for over a year may apply, with the prior consent of their direct superior, for a maximum 3 months’ unpaid leave.

12. Flexible maternity/paternity: Employees have the following options open to them:

• A 30 calendar-day extensión of maternity leave.

• A 50% reduction of the working day, on full pay during the first two months after return-to-work.

• Extend maternity leave by 15 calendar days and shorten the working day by one hour from the date of return-to-work until the baby is nine months old

13. If 50-80% of the tasks carried out at the workplace can be carried out at home, and if the employee’s direct superior gives his or her consent, the employee is entitled to opt for teleworking.

‘Equilibra’: A Policy of Flexibility

38

Corporate Responsibility. Indra and its Employees

‘Equilibra’ in figures

2005• 24 employees received economic support from the Company for physically

challenged children in their charge.

• 27 mothers received a 50% reduction in their workday in the first month of their return to work following maternity leave (on full pay).

• 231 employees on official training courses used their entitlement for attending the courses.

2006• 25 employees received economic support from the Company for physically

challenged children in their charge.

• 56 mothers and 2 fathers received a 50% reduction in their workday in the first month of their return to work following maternity leave (on full pay).

• 23 mothers took a two-week extension on their statutory period of maternity leave.

• 8 mothers took their entitlement to reduce their daily work, in accordance with the then recently extended period for mothers with children up to 8 years of age (previously up to 6 years of age) in their charge.

• 307 employees on official training courses used their entitlement for attending the courses.

• 25 employees took unpaid leave for up to 3 months.

2007• 27 employees received economic support from the Company for physically

challenged children in their charge.

• 26 mothers and 3 fathers received a 50% reduction in their workday in the first month of their return to work following maternity leave (on full pay).

• 44 mothers and 1 father took a two-week extension on their statutory period of maternity/paternity leave.

• 370 employees on official training courses used their entitlement for attending the courses

• 19 employees took unpaid leave for up to 3 months.

Study Assistance

Paid Leave

Maternity Leave

39

Indra 2007

Indra’s Equal Opportunities Plan, launched in 2006, has continued to develop. Designed as a set of measures to be fulfilled between 2007 and 2010, last year we made the following progress:

• Organisation of informa