Ladies and gentlemen,

Thanks to these annual accounts, I once more have the opportunity to address you and inform you of the development of the companies of the SERHS Group in 2006.

Without any doubt, we are once more able to say that our business is going very well, and in this last year 2006 we once more surpassed the results of previous years, achieving landmarks we had never before reached. Consolidated sales approached 406 ME, with an increase of 14% over 2005, and the pre-tax results at the close of the year were 6,915,000 euros, 40% up on last year. Our cash flow was more than 16.6 million euros for the first time.

These excellent results encourage us to continue working intensely to develop and consolidate the business structure of the SERHS Group. The good future perspectives we contemplate have also led us to propose to the Board of Management that the dividend to be paid in the coming September should be increased from 0.80€ per share to 0.85€, (meaning a dividend outlay of 2,550,000 euros, 6.25% higher than last year) and in the month of October, we are also considering handing out released shares, passing from 1 share per 40 to 1 per 32. This would mean an outlay of 3,000,000 euros, 25% up on last year. With these two actions, the partners will receive 5,550,000 euros, 750,000 euros more than last year.

This good situation also encourages us to increase our participation in the corporate social responsibility, with amounts intended for family aid and initiative that allow us to start a new line of action, without leaving aside our collaboration, as in recent years, with the “Vicente Ferrer” Foundation, this year celebrating its 10th anniversary, working to achieve the social and economic development of the poorest caste in India: the “untouchables”.

If the results have been spectacular, the incorporation of new shareholders has also undergone a significant rise of 16%. In other words, from 1,138 partners in late 2005, we have passed to 1,322 at the end of 2006. Furthermore, it must be stressed that the sales of shares in the SERHS Group in 2006 amounted to a total 8,432,064 euros (more than 1,400 million of the former pesetas). All in all, we are satisfied and encouraged to see the great confidence we generate, which means that in addition to strengthening the shareholding base and increasing our repercussion in the media, our position as the leading Tourist Group in Catalonia has been significantly strengthened in the socio-economic and political sectors of the country.

There have been many, diverse activities that have to be highlighted in the operative areas of the Group. Therefore, in the area of SERHS Hotels, if a year ago we were congratulating ourselves on opening and starting up the SERHS Natal Grand Hotel, we must now do so for our hotel having been recognised as “O Melhor Resort de Praia” of the whole of Brazil. And at the time of writing these few lines the Vilar Rural in Arnes, La Terra Alta region, is already a reality, and has become the third establishment making up this network displaying a new concept of rural accommodation, a project that we believe will allow us to contribute to restoring the territorial balance of Catalonia



Also in the areas of SERHS Distribution and SERHS Food, we have seen a good increase in their activities both in the area of drinks and food distribution, having brought in new distributors, and in the Foodstuff Area through the dynamism that has allowed us to broaden our presence in Barcelona. In the area of SERHS Projects and Equipment, we have brought in the centenary company “Celaya”, of renowned prestige in the whole of the metropolitan area. We must also stress the increase in the number of customers in our catering service, which was adjudicated the tender for managing the restaurant services in the Futbol Club Barcelona facilities, where we very successfully organised the last edition of the EXPOSERHS show-fair. All of these actions mean that today, Barcelona accounts for 12% of our mercantile activity.

With regard to our presence in Morocco, we must highlight the starting-up in Tangiers of a juice factory along with the company Rostoy of Murcia, which in 2007, its first year up and running, will produce 10 million litres, and we must also point to the start-up of our tour operator, taking advantage of the concession made to us by the Moroccan government of a special licence only for our operative area, to increase the movement of tourists in the country.

Finally, the firm Fruites Capdevila has been brought into our group, which allows us to work in fruit and vegetable distribution from the Ripollès and Garrotxa regions. And we must also particularly highlight the work carried out in the area of the use and implementation of new technologies. This is an unswerving path to the future that must be developed in all the different areas of our business. It is for this reason that we have wanted to enormously enhance this aspect by starting up one of the most modern “Data Processing Centres” in the country. This D.P.C. will enable us to reply to more than a million requests a day from SERHS Tourism and Travel, in other words more than 300 million queries a year.

Our Group’s policy in 2007 must continue along this path of growth and diversification, both in the territory and in the sector, taking advantage of all opportunities to optimise our business, always seeking the necessary compensation between the most risky activities and the most conservative actions.

Our organisation is better and better structured, and for this reason we feel optimistic, which means that we aim very high with our targets, both with regard to the increase in consolidated sales and the will to continue bringing in new business units, adding more partners and strengthening our economic and human capital.

In human resources, we will continue to pay great attention both in training and internal promotion, because we have always considered that the people who form part of our Group are our best asset. Their training, satisfaction and professional projection will continue to be our main concern.

As Chairman I must also thanks and highlight the support of our shareholders and stress the continuous contribution of the Board of Management, the members of the Executive Commission and, very importantly, our management team and all of our staff team who, with their work, enthusiasm and dedication, have enabled our corporation to run well: the el SERHS Group, which feels a Catalan company that moves under criteria of business efficiency and economic profitability.

To finish, I would like to say once more that we have the determined will to continue innovating, creating new companies, now 74, optimising our business and continue diversifying our investments both in the sector and the territory. We wish to continue creating wealth, new jobs, convinced that with our action we contribute modestly but with all the force of our possibilities, to strengthening the economy and the weight of our country. And we want to do all of this without forgetting the philosophy that one day drove us to start up this venture, which is none other than to place the values of people above economic interests.

Thank you very much.

Ramon Bagó i Agulló Chairman