Report on ONO Midco, SAU and its subsidiaries as of December 31 ...

Supplier
Network
Equipment
Next Generation
TV
Voice
Switching
Mobile
Network
Digital
TV
Set-top
Boxes
Data & CM
Headend
Nokia-Siemens .................... X
Italtel ...................................
X
TIVO ...................................
X
Huawei ................................
X
NAGRA ..............................
X
NDS .....................................
X
Juniper .................................
X
Motorola .............................. X X X
Content Suppliers
We rely on external content suppliers and currently have contracts with, among others, Disney, Mediapro, Sony,
Turner, Universal and Viacom. Please see “Risk Factors—Risks Relating to Our Business — We depend on others to provide
premium programming for our fiber television services” for more information.
Properties
We lease and own certain properties for administrative and sales offices, hubs, stores, switches, head-end sites and
warehouses. A significant portion of the properties are used for both administrative and technical purposes. Our main network
operations centers are located in Madrid and Barcelona and our call centers are located in Valencia, Barcelona, Sevilla, Madrid,
Valladolid, Santiago de Chile and Bogotá. We believe that our properties are suitable and adequate for the purposes for which
they are intended, however, we are currently streamlining our property portfolio.
Employees
The table below sets forth our average number of total employees for each of the periods indicated:
Year ended December 31,
2009 2010 2011
Average total employees ....................................... 3,549 3,283 3,025
On January 19, 2009, the Spanish Ministry of Labor approved an agreement between the ONO Group and the trade
unions for the execution of a headcount reduction plan. The plan was carried out in April 2009 and a total of 845 employees were
made redundant.
During the year ended December 31, 2011, we had an average of 3,025 fixed and temporary full time equivalent
employees, a decrease of 258 as compared to the 2010 average. As of December 31, 2011, 92% of our employees were covered by
our collective bargaining agreement. The 8% out of the colletive bargaining agreement were managers and Directors due to its
strategical condition.
Environmental Matters
We are subject to a variety of laws and regulations relating to land use and environmental protection in connection with
our ownership of real property and other operations, including our use of fuels, coolants and batteries. While we could incur costs,
such as clean-up costs, fines and third-party claims for property damage or personal injury, as a result of violations of or liabilities
under environmental laws or regulations, we believe we substantially comply with the applicable requirements of such laws and
regulations and follow standardized procedures to manage environmental risks.
Legal Proceedings
We are engaged in litigation arising in the ordinary course of its business. We do not believe that the adverse
determination of any pending litigation against us could have a material adverse effect on our business or financial condition.
Cableuropa’s indirect parent, GCO, is currently engaged in litigation initiated by one of GCO’s shareholders which
may potentially have a negative impact on us. See “Risk Factors—Risks Relating to Our Financial Profile—An adverse outcome
of the litigation initiated against GCO by one of GCO’s shareholders may have a negative impact on us”.
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