It is always an honour and a source of pride for me to present this annual report and on this occasion it is especially pleasing to write these lines as they demonstrate that the industry to which so many people dedicate their work on a daily basis continues to show signs of good health.

With a growth in turnover of virtually 2% over 2013, the member companies of the HEGAN Aeronautics and Space Cluster of the Basque Country once again had a good year in 2014 with total sales figures amounting to 1,755 million euros in all their plants located throughout the world. Jobs, in turn, increased by 1% to 12,546. Employment in the production centres located in the Basque Country grew by 4.4% to 4,278, offering quality, highly qualified jobs.

For the second consecutive year, total exports passed the 1,000 million euro mark, reaching a figure of 1,139 million euros and representing 65% of their total turnover. Companies located in the United Kingdom are the main destinations for our products, followed by Germany and the United States.

Being largely dependent on the development stage of the programmes in which we are taking part, R&D investment has held its own with regard to previous year, reaching 165 million euros and representing 9.4% of turnover. The high level of self financing practiced by our companies amounts to 86% and 11% of their personnel is involved in R&D activities: 1,442 people!

Moreover, with regard to the future, the major airlines forecast an annual increase in demand of 5% over the next 20 years, which always involves an increase in the production of aircraft.

Some of the major events that will have a favourable effect on the industry of the Basque Country in the coming years include the roll-out of the Embraer KC-390 transport aircraft; the first delivery of the wide fuselage aircraft, the Airbus A350 XWB, destined to become the top player in the commercial aviation business of this manufacturer over the coming decades, in which 33 of our associate companies are taking part; and the increase in the production rates of the Boeing 787 Dreamliner in which twenty of HEGAN's members are involved. In the regional aviation sector, Embraer's new E-2s and the CSeries of Bombardier are about to be launched. Moreover, the sector continues to strengthen and diversify its position thanks to its participation in new business aviation programmes such as Beechcraft and Gulfstream.

What can we deduce from all this? That we continue to grow; that our strategic locations have allowed us not only to maintain employment in the Basque Country but to increase it; that we maintain our competitiveness, our commitment and service to society; and that our companies enjoy strong positions in the aeronautics market with their participation in new programmes.

Logically, the sector aims to continue maintaining and improving its competitiveness. And among the main challenges that we face, one of the most important is the permanent development of the sector, spurred on by greater and greater technological requirements (greater aircraft safety, more environmentally friendly aircraft that are lighter and consume less) that are having a great impact on production companies. Moreover, we must seek to maintain the leadership of Tier-1 companies in technology and innovation and develop the value chain, so that all agents contribute to our aim of securing an excellent industry. Some of the variables to be taken into account in our development include: the need to have extraordinary financial means in order to be able to launch new programmes, develop understandings with labour representatives to increase competitiveness with the cooperation of all involved, and continue to diversify the portfolio of companies, with their entry in new aeronautical markets and programmes, by taking advantage of the externalisation of the work of large manufacturers.

The HEGAN Association maintains its commitment to finding solutions through cooperation to face up to these challenges and during 2014 we have continued to deploy our 2013-2016 strategic reflection. We invite you to read about this and the main activities of our associates set out in this document.

Many thanks.