Corporate Responsibility Social andSustainability Report 2018 to transform theworld» «Our contribution «Our contribution

1 Corporate SR and Sustainability Report 2018

REPORT 2018

In memory of Amalio Muñoz, founding shareholder, member of the Board of Directors of Baleària and adviser to the President, who passed away in 2018 4 Corporate SR and Sustainability Report 2018 The roadmap to transform theworld Driving growth Overseas Markets Pioneers ineco-efficiency Long-term vocation Proximity andtransparency Economic performance Twenty years uniting theseas Innovation, andsustainability service Summary Leadership vocation Strategic alliances Benchmarks inthesector Local supplies For abetter society Value distributed to stakeholders More sustainable initiatives Reduce environmental impact Care for theEnvironment Safety andprotection Customer loyalty The travel experience Customer satisfaction asapriority A goodcompany to work for Job stability Talent management Professional development A growing team TEAMWORK COMPETITIVE MODEL LEADING COMPANY 2018 IN FIGURES FROMLETTER THE CHAIRMAN NDICATORS I SOCIAL COMMITMENT A SUSTAINABLE PLANET TRANSPORTATION OF GOODS EXCELLENCE IN SERVICE

50 86 36

42 60

92 34 89 40

80 26 48

90 58

65 20 8

30

72 44 88

75

22

52 16 10

74 28 78 76 56 70 54 12 38 66 2

5 Corporate SR and Sustainability Report 2018 6 Corporate SR and Sustainability Report 2018 contribute to theneedfor eco- that opportunities ria asbusiness while taking crite onboard- these world of equalopportunities, inclusive andsociallysustainable andachievethe planet amore a cleardeterminationto preserve suit of competitiveness,through central strand: theconstant pur the LNGinitiatives, have thesame of theyear, allof which,aswith to behighlighted over thecourse There were agreat many projects our project asExcellent. adapt totechnology, smart rating engines withLNGmodelsandto a 20% subsidyto replace ferry the European Uniongranted us enter operations in2020. Lastly, with dualLNGengines,whichwill of thefirst fast inthe worldferry We have alsobegunconstruction Mediterranean powered by gas. Alejandría, was thefirst to sailthe one of which,theHypatiade ferries were launchedin2018, transformation. Two twinsmart and thesixthatare to undergo a three thathave beennewly built on board ships,both oursmart the tives for Baleàriawhichconverge digitalisation are strategic initia- passenger care. Natural gasand of and eco-efficiency the service latest technological innovations at digitalisation, incorporating the Itwasant gases. alsoYear 0for atmospheric emissionsof pollut which substantially reduces (LNG), acleanenergy source the year of liquefiednatural gas tion to combating climate change: outitscontribu- which itfleshed For Baleària,2018 was theyear in theChairman Letter from Adolfo Utor ChairmanofBaleària - - sailings betweensailings and vehicle freight to beginpassenger Express, allowing us ping lineFred. Olsen ance withtheship- in 2018 was ouralli- Another happening ers have placedinus. that allourstakehold- to theexpectations and rigorous response provide atransparent 2018. Areport intended to celebrated its20th anniversary in phy of ourshipping line, which but aimsto reflect thephiloso- not simplyalist of goodpractices, transparency". Adocumentthatis "are themost effective exercise in sustainability andprogress reports level. For theUnited Nations, running atthehighest Advanced classified for thesecond year we are signatories,withourreport Nations GlobalCompactto which criteria established by theUnited ing theGlobalReporting Initiative and Sustainability Report, follow Corporate SocialResponsibility fulfilled ourobligation to issuethe This istheninthyear thatwe have present uswith. velopment Goals Sustainable De- lenges thatthe accepts thechal- around theglobe, other companies Baleària, like many scarcely beachieved, whichiswhy able economicgrowth this could nomic growth. Withoutsustain- We aimtobecompetitive inclusive worldofequal through acleardesire to preserve theplanet to preserve and achieveamore opportunities. - figures are explained by thephase results terms. These contradictory reduced inboth cashflow and and returns were significantly growthbusiness remained at5% 1,681 people, despitethefact that our workforce, whonow number year includethe9.4% increase in Baleària underpinning our strate- Islands,anewmarketCanary for the Spanishmainlandand cant figures for the The most signifi- offering. sive andsolvent more comprehen- marketplace witha gic position inthe Formentera, reducing CO between theislandsof Ibizaand eco-fast ferries beginsailing 2018 alsosawof theset four and care. of customer service highest standards achieve thevery working hard to with allourteams our customers, 97% loyalty among an all-timerecord of mestic routes. We likewise marked istering faster growth thanourdo- a millionpassengers (+26%), reg crossings accounted for more than where we operate. International well-being of citizens intheregions edge andculture, andthereby the free movement of people, knowl- of facilitating free trade andthe again worked towards ourmission (+3.5%). During theyear we once million metres of cargo vehicles one millionvehicles (+17%) and5.8 4.3 millionpassengers (+11%), over response thisyear. We clocked up on, onceagain gave apositive who allourteams andefforts focus Our customers, thestakeholders tive hours (+38%). training, completing27,535 effec many as74% of ourstaff received mental role inachieving this:as SchoolplayingBusiness afunda- of in2018, ourpriorities withour Training ourteams was another number of employees. have addedto our for societythatwe our company and goodnewsforless 2018.- Itisnonethe registeredprices in increase infuel and thesignificant the Alborán SeaandtheCanaries, solidation of newcrossings on is going through, withthecon- of expansion thatthecompany This report is a reflection This report isareflection contributing tothewell-contributing and thefree movement and rigorous response provide atransparent of people, knowledge of ourphilosophy: to and culture, thereby to ourstakeholders' 2 facilitate free trade emis Our missionisto being ofcitizens. expectations. - - - collection. fauna andplastic sightings waste tions, charitableprojects, marine the staging of exhibi concerts, - culture. These initiatives are a the environment, healthand to championcharitable activities toand whichcontinues undertake moreprises than140 employees, volunteering schemewhichcom- I must lastly mentiontheBaleària and share ourvalues. ing offer oursupplies highquality providmeans thatthecompanies - categories, which in thetwo highest (85%) are ranked majority of them again thegreat andonce conduct, tions andwithourown codeof with theircomplianceregula- evaluate suppliers inaccordance suppliers are local.At Baleàriawe driver inourregions: 80.9% of our company's role asaneconomic sion. We fullytake onboard our inachievingis essential ourmis partners andwhose involvement our suppliers, whoare ourclosest tion shouldlikewise bemadeof furthermore received anaward this route. These eco-fast ferries with theshipspreviously usedon sions by upto 36% compared activities, includingactivities, ros, undertook429 over 700,000 eu- ofwith abudget Foundation which, with theBaleària go hand-in-hand our company, and source of pridefor Particular men- of theyear. shipbuilding project of Spainasthebest of Naval Engineers tion andChamber from theAssocia- innovation andgrowth. for the long term, and for thelongterm, Our commitment is Our commitment follows thepathof - our worthy goals. input andenthusiasminachieving need to continuedrawing ontheir of innovation andgrowth, andthe future to continuealong thepath determination for thelong-term convey to allourstakeholders our cations. AndsoIwould like to that isnot withoutitscompli- all withinanewmarket context Islandscrossings,Sea andCanary new management system, anew two; we willbeimplementing a renewing theenginesof afurther technology,and smart andwillbe we willhave sixferries withLNG of thenewdigitalculture. In2019 organisation withinthecontext far-reaching transformation of the term, andwe are engaged ina Our commitmentisfor thelong will allow usto continuegrowing. capacity to remain competitive define thefuture; andonlyour intelligencetion andartificial will our values; innovation, digitalisa- growth lay thefoundations for andsustainableplanet economic erate: inclusion,protection of the like to take thisopportunityto reit thatIwouldnumber of certainties 2018 ifnot more so, butwitha very busy agenda, asmuchin We lookforward to 2019 witha the newAlborán of consolidating the hugechallenge app; andwe face a newwebsite and and powerfulCRM, -

7 Corporate SR and Sustainability Report 2018 8 Corporate SR and Sustainability Report 2018 4,320,000 ships 31 in Figures passengers (+11%) being built ships 2 2018 1,029,000 1,359,000 nautical milessailed Traffic vehicles Fleet (+17%) (+13%) 5,845,000 0,2242 kg CO m. l.cargo (+3,5%) (+24,6%) 2 /t*mile 381,000,000€ turnover countries (+5%) 5 Company dimensions Economic results Economic routes 23 (+4) 70,000,000€ 1,680 employees (+9.4%) EBITDA (-14%)

9 Corporate SR and Sustainability Report 2018 10 Corporate SR and Sustainability Report 2018 company Leading

11 Corporate SR and Sustainability Report 2018 12 Corporate SR and Sustainability Report 2018 board 31 ships. of more than1,600 peopleemployed atits22regional offices andon well-being of theirpopulation.The Baleàriagroup hasastable workforce social andeconomicdevelopment of theregions itlinkstogether, andthe itselfasa Baleària defines corporateresponsible citizen, engaged inthe increasingly strict regulations governing pollutantgases. bility andeconomicprofitability, thereby remaining one step ahead of the which beganeightyears ago, of isinlinewithitsprinciples socialresponsi- reducing atmospheric emissions. Baleària's strategic commitmentto LNG, replacement of shipengines allowing themto runonthisalternative fuel, both planwhichincludes thebuildinged afleet shipsandthe of smart It isapioneering shipping lineintheuseof natural gas,andhasimplement and alsobetween theUnited States andtheBahamas. lands. At theinternational level itprovides inMorocco andAlgeria, services of Ceuta andMelilla,hassince2018 linked Huelva Is withtheCanary all four islandsof thearchipelago. Italsooperates intheautonomous cities Islands, aswell asbeing theonlyoperator withinter-island routes covering line for passenger, vehicle andfreight transport to onsailings theBalearic Baleària, which marked its 20th anniversary in 2018, is the leading shipping and sustainability Innovation, service and personalterms. development inprofessional employees for theopportunity andits appropriate returns, offering service, itsshareholders quality, environmentally friendly by offering itscustomers ahigh- transportation needsofsociety, To tothemaritime respond Presentation oftheshipping line Mission ment andprogress. contributing totheirdevelop- its shipping thereby routes, togetherthrough that itbrings of linksbetween thesocieties the strengthening andcreation vironmental sustainability and management, by meansofen- improvement andexcellence in quality throughcontinuous by of offering services excellent global presence, characterised joying constant growth,witha To bealeading shipping lineen- Vision - - and innovation

Commitment toemployees Respect for theenvironment Continuous improvement Social commitment Commitment tocustomers Values Route map USA MEDITERRANEAN Santa Cruz Huelva TENERIFE Tangier-Med Algeciras MOROCCO Ceuta GRAN CANARIA GRAN La Luz La M alaga M elilla Nador Almeria FLORIDA Valencia Miami Denia ALGERIA M Fort Lauderdale os GRAND BAHAMAGRAND ta g anem THE BAHAMAS Formentera IBIZA Route operated Fred. with OlsenExpress Route operated asCompañíaMarítima Alborán Ibiza Freeport Barcelona Palma Alcudia MAJORCA Ciutadella MINORCA 13 Corporate SR and Sustainability Report 2018

(***) Chartered in2018 (**) Acquired in2018 (*) Incorporated andacquired in2018 Fleet IN CONSTRUCTION FAST FERRY FERRY Marie Curie Avemar Dos Abel Matutes Eleanor Roosevelt Cecilia Payne (*) Amman (***) Formentera Direct Bahama Mama Bahama Eco (Aqua,Eco Terra, Lux,Aire) Dénia CiutatDénia Creativa Jaume I,II,III Duba Bridge (***) Maverick Dos Hedy (**) Lamarr Nixe Hypatia deAlejandría Pinar delRío Pinar Martín iSoler Ramon Llull Nápoles (**) Nissos Chios(***) Passió perFormentera Poeta Anglada López Posidonia Regina Baltica Rosalind Franklin (*) Sicilia (**) Virot ships 31 under construction 32-36 kn ships Speed 2 Speed Speed 30 kn 38 kn 34 kn 24 kn 24 kn 24 kn 23 kn 23 kn 25 kn 35 kn 23 kn 23 kn 22 kn 35 kn 22 kn 23 kn 32 kn 32 kn 27 kn 27 kn 19 kn 16 kn 19 kn 18 kn 15 kn 12 kn 17 kn 78-81 m Length Length Length 100 m 190 m 186 m 186 m 186 m 150 m 186 m 186 m 188 m 165 m 139 m 139 154 m 145 m 125 m 133 m 133 141 m 141 141 m 141 86 m 50 m 64 m 69 m 69 63 m 28 m 28 83 m 39 m 39 82 m 82 74 m 74 Beam Beam Beam 26 m 26 28 m 28 26 m 26 26 m 26 28 m 28 24 m 24 24 m 24 23 m 25 m 23 m 23 m 25 m 25 m 25 m 25 m 22 m 25 m 25 m 16 m 18 m 14 m 14 14 m 14 21 m 13 m 13 17 m 17 11 m 9 m 9m Owned fleet acquired in2018 90% 623-655 ships People People People 1,000 1,000 1,600 1,400 1,200 1,200 5 1,675 1,257 900 800 600 800 800 880 880 309 399 399 546 462 356 955 855 728 355 551 41 Vehicles Vehicles Vehicles 130-144 608 500 200 608 646 260 430 402 350 350 479 624 625 567 243 120 105 481 481 122 174 90 80 36 23 - - 15 Corporate SR and Sustainability Report 2018 16 Corporate SR and Sustainability Report 2018 Twenty years uniting the seas Palma andIbiza- Shipping line Denia-Ibiza- Formentera tar, which likewise marked the route across theStrait of Gibral- other milestones: suchasthefirst the BalearicIslandsandachieving starting between up new sailings tion of more fast ferries, whilealso sailing continuedwiththeaddi- This commitmentto high-speed ny's flagship for many years. fast ferry, whichwas the compa- with theFederico García Lorca Islands andtheValencia Region between the Balearic gan sailings andjust threefleet, years later be- new technologiesandarenewed Baleària made a commitment to sition, therecently established Despite thedelicate financialpo- had becomebankrupt. the Flebasa shipping line, which with other former employees of the founding of Baleària together current spearheaded president, when Adolfo Utor, thecompany's natural gas,beganinJune1988 a globalpioneerintheuseof Spain’s leading shipping lineand The history of Baleària,now Key company milestones crossings. Operates founded. 1998 speed ship, the the first high- García Lorca. Addition of Federico 2001 tion: breaking into markets strategic approach gainedtrac Over thefollowing years anew pacity. tainable, withagreater cargo ca- new shipswere muchmore sus Theon-board entertainment. travel, focused oncomfort and it a new concept: experiential began in2009, then,andwith generation ferries. A new stage building of four innovative new planinvolvingtious fleet the As demonstrated by theambi- into theBaleàriamindset. ity andinnovation are hard-wired fact isthatsocialresponsibil- and cultural development. The contributing to regional social launched in2004 asaway of The BaleàriaFoundation was sion of theMatutes Group. merged withtheshipping divi- years later thefirm took over and ing Algeciras withTangier. Two nationalisation, in2003, by link first step inthecompany's inter route: Tangier- Barcelona and international Operations Algeciras. Minorca. begin in 2003 First Foundation set Baleària 2004 up. - - - - global pioneer. gas asafuel,fieldinwhichitis and the useof liquefied natural such asdigitaltransformation to itself challenges, continues set competitive company which ed, Baleària is adynamic and Two afteritwas decades found- Islands. the Canary Atlantic routes, linking Huelva to a numberofAfrican North and Caribbean, andsubsequentlyon First project. the business inthe abroad asaway of expanding 20 years of Baleària. video commemorating Scan thiscodetoview the Matutes group.Matutes division ofthe the shipping takeover of Merger by 2005 begin inCeuta. Operations 2006 regional offices and much of the fleet, as wellastheshipping andmuchofthefleet, line'sregional offices founding shareholders. held atthecompany's attended headquarters, by morethan300peopleincluding representatives of allthefirm's Celebration of20 years. InDecember2018 Baleàriamarked itstwenty years ofexistence withanemotionalparty España shipping Acquisition of the Buquebús Operations Valencia. begin in 2007 line. 2009-2010 ferries added. generation Four new Sailings begin Sailings between the USA andthe Bahamas. 2011 Headquarters Headquarters Baleària Port Baleària Port opened at (Denia). 2013 begin inMelilla. International Operations route from Algeria. 2016 route toNador. First passenger LNG powered International generator. ferry with ferry 2017 17 Corporate SR and Sustainability Report 2018 18 Corporate SR and Sustainability Report 2018 Milestones in2018 Completion of the set offour oftheset Completion eco-fast ferriesfor theIbiza- Formentera route. January-June See page32 ferries, thefirst powered by LNG ontheMediterranean. Alejandría andMarieCurie Launch oftheHypatiade March/November See page30 routes fromMalagaroutes toCeuta, Marítima Alborán for the Creation ofCompañía Melilla andTangier. See page36 July Shipbuilding beginsonthe powered by natural gas world's engines. first fast ferries October See page31 agreement withFred.Olsen Operations beginbetween the Spanishmainlandand the Canaries thankstoanthe Canaries November Express. See page36 , thefirstferry ofsixplanned. LNG enginesontheNápoles Work beginstoinstall new November See page31

19 Corporate SR and Sustainability Report 2018 20 Corporate SR and Sustainability Report 2018 Economic performance Economic world withLNGengines. and thefirst fast inthe ferry ferries to sailtheMediterranean, first two liquefiednatural gas The shipping lineisbuilding the Key Fleetprojects Baleària group Baleària results Investments in2018: 155 millioneuros See pages30and31 381,476,282€ Three newliquefied total operating revenue natural gasships (+5%) Investment intraining Investment insocialaction Innovation-related expenses Environmental expenses Financial expenses Personnel expenses Supplier expenses ECONOMIC VALUE DISTRIBUTED Other revenue providedServices ECONOMIC VALUE GENERATED an Union. subsidisedbypartly theEurope- of withLNGmodels, itsfleet replace theengines onsixships Baleària launchedaproject to See page31 LNG replacementengines 70,316,049€ on sixships 381,476,282.70 319,390,514.84 260,256,209.71 369,975,414.70 52,544,530.06 28,564,892.33 EBITDA 11,500,867.35 6,589,775.06 1,306,257.22 446,098.40 (-14% 722,928.47 ) 2018 356,055,220.89 362,616,733.20 291,922,722.99 238,763,992.81 20,631,594.38 44,627,734.71 8,530,995.47 1,054,063.81 6,561,512.31 386,395.00 784,050.57 senger capacity). redesigned to increase itspas Sicilia andNápoles(whichwas of itsroutes: theHedyLamarr, it was already using onsome It alsoacquired three shipsthat and theferry Rosalind Franklin. ger accommodationandhold) improvements to thepassen- (having madeanumberof the fast ferry Cecilia Payne and addedto in itsfleet 2018 The shipping linepurchased 2017 Acquisition offive ships 27,491,558€ 100.00 96.99 68.22 83.72 13.77 2018 0.34 0.19 0.12 7.49 3.01 1.73 net profit (-37% Variation -22.8 ) 38.5 23.9 75.3 15.5 17.7 -7.8 9.0 3.9

100.00 80.50 - 65.84 98.19 12.31 2017 0.29 0.22 5.69 2.35 0.11 1.81 21 Corporate SR and Sustainability Report 2018 22 Corporate SR and Sustainability Report 2018 March 2018. attended by stakeholder representatives atBaleàriaPort inDenia Baleària's Adolfo president, Utor, presented the2017 report atanevent and expectations withregard to thecompany. These needscanbeconsulted onthefollowing page. close relationship withitsstakeholders, Baleàriahasinplaceanumberof andfulfiltheirneeds channelsto identify pany's theminaccordance strategy. andprioritises withitsbusiness activities), Initscommitmentto maintaina In eachof itsregions, Baleàriaidentifies stakeholders (those agents thatcouldaffect orbe affected bythecom- Proximity andtransparency REPORT PRESENTATION

Channels:emails,socialmedia,website... videoinSpanishandFrench. Summary Hard andsoft copy versions inSpanish,Catalan, EnglishandFrench. Communication with stakeholders at thehighest level (Advanced). The SpanishGlobalCompactNetwork classifiedthe2017 report services. services. andthe quality ofproducts balance. terminals. on boardshipsandatferry and cargo customers: thesafety within anaction planfor improvement) (Detected in2017 and incorporated Most significant topics stakeholders. tation andtheexpectations of itsrepu- while alsoascertaining development ofitsoperations, thatariseinthe opportunities thechallengesit toaddress and selves. This information allows for thestakeholders them- bothfor and issues the business stakeholders thekey todetect materiality surveysducts ofits Every two years, Baleàriacon- For suppliers andsociety For employees : family/work Customers, publicauthorities Materiality analysis : Channels for dialogue|Press newsitems  regions where we operates andimprove globalwell-being. questionnaire  Channels for dialogue |Purchasing andapproval policy chain.  Centrer  Website  Channels for dialogue|Direct ticket sales offices magazine and healthprogramme   communiqués Channels for dialogue|Intranet Commitments Goal |Beagoodcorporate neighbour. Baleària operates. People ororganisations belongingto theterritories where Commitments Goal |Beaquality company to work with. services. Companies that belongto thesupplychainto fulfilallBaleària Commitments legitimate expectations of customers. Goal |Beacompany thatresponds to andfulfilstheneeds offeredPeople orcompaniesthatusetheservices by Baleària. Commitments talent andmotivating theworkforce Goal |Beagoodcompany to attracting work at, andretaining on itsshipsorinlogistical operations. People whowork for theBaleàriagroup, whether atitsoffices, | Conventions andagreements Contribute to thesocialandeconomicdevelopment of the Guarantee of completion theapproval questionnaire. Foster andprotect fundamentalhumanrightsinthesupply Guarantee respectful andsustainable services. Offer customers direct andpersonal attention. Pursue excellence inservices. Promote personal andprofessional development. Foster work-life balance. Guarantee equalopportunities. Maintain fluidand regular communication. | Entreolas blog | | Satisfaction surveys  Customer andContact Department Service | Website 

| | Website  Volunteering programmes  | Entreolas magazine  Employees Customers Suppliers | | Society Induction plan Induction CSR ReportCSR  |  CSR Report CSR  | STAKEHOLDERS AND COMMITMENTS Website  . | | Internal Social media | |

Events | | Digital | CSR Report CSR  CSR Report CSR  Welfare | 

Center Channels for dialogue| service. centre. ments, changes andimprovements, viathewebsite orcontact Channels for dialogue| Press releases  milestones. providing information ontheshipping line's key events and | and presentations  Website  Channels for dialogue| General Shareholders' Meeting  their concerns. Website  Channels for dialogue| Emailaddress  Commitments Goal |Beaneconomicallysustainable company. Baleària group. People ororganisations thathave aninvestment inthe Commitments vocation.service Goal |Bearesponsible andhonest company, withapublic Baleària operations. Organisations orbodiesthatmanageissues connected with Commitments Goal |Beacompany committed to channel. thesales have itsproductsintheirportfolio. Agencies or orgroupsof agenciesthatsell Baleàriaservices Commitments Goal |Beatransparent company. activities. Media outlets thattheBaleàriaaddresses to convey its CSR Report CSR  Provide aswiftresponse, withdirect andpersonalised Offerdevelop fluidandclearcommunicationaboutservices, - Deal withrequests andcallsfor information from themedia. Maintain fluidandconstant communicationwiththemedia, Engage inactive dialoguewithshareholders to understand Offer appropriate returns. Work closely to withpublicbodies achieve shared goals. Responsibly andhonestly complywithlegislation. 

| | | Newsletter Frecuencia Constante DiarioTrianual Puntual  Anual CSR Report CSR  Report CSR  Public Authorities Travel agencies | Shareholders Social media  Satisfaction surveys

| Media

Agency website Agency  | Website  | |

Press conferences

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| Contact Contact CSR Report CSR  |

23 Corporate SR and Sustainability Report 2018 24 Corporate SR and Sustainability Report 2018 Other websites Main channels for dialogue BALEÀRIA WEBSITE the immediacy ofthe immediacy theresponse. the company andresponding to customer andcomments.Itisalso apowerful queries channelgiven service Baleària's socialmediapresence allows itto interact directly withitscommunity, both providing newsabout BALEÀRIA SOCIAL MEDIA PLATFORMS 6,645,517 powered fleet. company's resultsandthose to dowiththenatural gas- connected withthenew Islandsroutes, Canary the of presentations, press releases andinterviews. providing themwithperiodicinformation intheform regional, nationalandshipping sector media,while Baleària maintainsacontinuousprofile inthelocal, The news items withthegreatest impactwere those sessions (+19.1% releases 98 press (-14 ) 107,382 (Baleària Caribbean, Baleària Port, Fundació(Baleària Caribbean, BaleàriaPort, Baleària) ) followers (+49%) Media print anddigitalpress 3,112,603 monthly 746 impacts (+9.7% unique users ) (+15.5%) 29,561,992 Other channels page views page views (+106%)

511,659 pany's latest news. travel, andthecom- trends, lifestyle and zine withfeatures on Free on-board maga- 'Entreolas' magazine 36,600 circulation

(+39.75% average average visits 24% 321,676 ) Visits by Country Foreign Spain yearly issues

users 3 402,186 interactions (+14% 76% ) (+13%) time world. fromissues themari- destinations, leisure and about suggestions Shipping lineblogwith 56,515 (+170%) users 'Entreolas' blog 49.7% 49.7% (+25.8% ) Mobile/tablet Desktop Visits by subscribers +30% device 50.3% (+12% ) ments sentto theFleet. tive improvements to reduce packaging inship- of whichisbeing evaluated, along withadministra- evacuation system thetechnical feasibility (Lifebag) Baleària. Onenotable proposal in2018 was for an als for continuousimprovement connected with Internal tool allowing employees to submitpropos contributed 176 ideas (+16 ) participants Balidea 76 (+3 Channels forinternal dialogue ) implemented ideas (-2 6 ) - promotions. anniversary, andinformation onnew andinternal hirings theeventsin particular withBaleària's connected 20th developments. munication channelto inform staff of company The Intranet isthemost commonlyusedcom- The news highest itemspublishedincluded impact 1,402 unique (+7.8% users ) monthly Intranet average average 888 (+11% users ) published 293 news item 25 Corporate SR and Sustainability Report 2018 26 Corporate SR and Sustainability Report 2018 Long-term vocation employment, investment policy. andbusiness strategies andreachthefundamentaldecisionsasto arethetwo thatplan,design of Directors bodies The General Shareholders' Meeting andtheBoard Group (42.5%). the MatutesCorporate President andCEO, and Adolfo Utor (57.5%), and tourism sectors: ence intheshipping acknowledged experi- up of shareholders of at thecompany, made body of governance This isthehighest Corporate governance Director of Business andBusiness Development José Vicente Herrero Communication Director Pilar Boix Ibiza andFormentera Region Representative Juan José Serra Director Director of PeopleandTalent andReputation Management,CSR Josep Vicent Mascarell Director of Operations Valencia Region Representative Manuel Pérez Fleet Director andBalearicIslandRegion Representative Guillermo Alomar Independent Director José Bonet Independent Director Juan Lladó Independent Director Abel Matutes Independent Director Ettore Morace General Secretary David Fernández Managing Director for Finance Ricardo Climent Chairman andCEO Adolfo Utor General Shareholders’ General Shareholders’ Meeting Meeting Main organisations independent directors. company, along with for therunning of the with responsibilities comprising individuals of results,supervision corporate decisionsand tive bodyinterms of This istheseniorexecu- Board ofDirectors                    body of governance. to themost senior ing oncriticalconcerns whilealsopass pects, specific operational as to analyseanddecide company strategy, and Its purpose isto plan Standing Committee 2009 2009 2009 2004 2004 2004 2004 1998 2018 2014 2011 2011 2011 Others organisations Executive Committee Standing Committee Board of Directors General Shareholders’ Meeting All thecommittee membershave executive status. Membership of bodies andlength of membership Adolfo Utor, president of Baleària - - or directly. ther viathiscommittee highest-level bodyei- on to thecompany's tal matters are passed social andenvironmen- regarding economic, mental level. Decisions socialandenvironic, - attheeconom- impacts risksand opportunities, and for keeping track of of company strategy, and implementation dinating theplanning Responsible for coor Executive Committee - cesses inthisfield. Baleària headquarters inDenia. cesses Operations created, onimproved withanimpact management andpro- Lastly, theFleet was restructured andtherole of Managing Director for regional office. tion providing greater safety for ourcolleagues onallour shipsandevery optimising occupationalsafety standards to forge aculture of riskpreven- risk prevention inthecompany's different operational spheres, whilealso The HealthandSafety area was upwiththeaimof alsoset improving managetunities, resources andbemore competitive. strategic elementinthefirm's future inorder to make themost of oppor which coordinates thisprocess both withinandoutsidethecompany, asa Another of thenewareas upin2018 set was DigitalTransformation , growth. managementsales viaallavailable channels,soasto drive thecompany's Both areas work to underpin themarketing andto optimise of allservices ning thecompany's fares strategy soasto maximisepassenger revenues. Management area was upwiththemission of set organising andplan- their distribution andmarket positioning.Meanwhile, thenewRevenue marketing strategy, andfor passenger-related andproducts, and services ity. The newmanagement team are responsible for defining and thesales a more horizontal approach andincrease competitivenessandproductiv The Marketing was Department andSales restructured in2018 to adopt CHANGES AT THE ORGANISATION Central office Denia. ofBaleàriain See page58 See page52 See page33 - - 27 Corporate SR and Sustainability Report 2018 28 Corporate SR and Sustainability Report 2018 model Competitive 29 Corporate SR and Sustainability Report 2018 30 Corporate SR and Sustainability Report 2018 fossil to fuels.Itserves reduce CO of thefleet by 2028. LNGisone of themost environmentally friendly poweredries by thiscleanenergy source, rising to onehundred percent profitability. The shipping lineplans by 2021 to have atleast half of its fer ofBaleària, inlinewithitsprinciples socialresponsibility andeconomic The useof liquefiednatural gasasafuelis strategic commitment for Leaders intheuseofnatural gas ineco-efficiency Pioneers vibrations. also reduces aswell thenoiseemissionsfromas theshipswhileinport, effect inimproving airquality and reducing thegreenhouse effect. This withanimmediatewhile completelyeliminating sulphurandparticles, Curie, was fullyfinished. shipsharness tech- These late 2018, whilethestructure of thesecond,Marie them, HypatiadeAlejandría,was completed in with apower rating of 20,600 kW. The first of with dualliquefiednatural gasand fueloilengines, of thefirst two ontheMediterraneanferries to sail at theCantiere Navale Visentini shipyards inItaly Baleària continuedin2018 with theconstruction Innovation Speed 24 kn The firsttwo LNGferriesonthe Mediterranean Length 186 m Beam 25 m People 880 2 emissionsby 30%andNOxby 85%, 2.194 m.l. Cargo Vehicles 166 leisure andother features. àlacarte digital tophone access on-board services, suchasvideosurveillance for smart pets, services, energy efficiency, applying innovations inon-board anddigitaltransformationnology intheinterests of 200 millioneuros of investment - Rolls Royce, Wärtsilä, Caterpillar. crew members. on board apassenger ship. Strategic agreements: Naturgy, 2015-2018 LNGtraining planfor 2017 2013 Other LNGmilestones First LNGelectricity generator Founding memberof GASNAM. - along emissions. withthecomplete eliminationof sulphurandparticles investment. The was project rated asExcellent. €11,797,424 (of the 15millionappliedfor), representing 20% ofthe ships undertheCEFfunding round,receiving amaximumsubsidy of for theengine fiveBaleària presented replacementproject ofits EuropeConnecting Facility fundsfrom theEuropean Union of more than45,000 tonnesof CO gas. The useof shipsisexpected LNGonthese to achieve annualreductions first of six inits current toallowferries them fleet, tobe powered bynatural In late 2018 Baleàriaembarked onthereplacement of theengineson and noise, to make for amore comfortable crossing. vertical prows of thesidehullsandreduced vertical acceleration, vibration wave-piercingwhich combines withimproved performance from the The innovative features of thebow thisshipincludeinparticular design, global level, incorporating themost innovative international technologies. any other fast ferry catamaran inexistence. This isapioneering project atthe by dualLNGengines,whichwillalsohave agreater andcapacity length than in Gijónof thefirst fast inthe world ferry for passengers andcargo powered Baleària announcedinlate 2018 theconstruction attheArmonShipyards NATURAL GAS ENGINES WORLD'S FIRST FAST FERRY WITH NATURAL GAS ENGINE REPLACEMENT 72 millioneuros of investment Nápoles, AbelMatutes, 6 ships:andSoler andHedyLamarr Sicilia, BahamaMama,Martín 2 LNGtanks(400 nauticalmilerange). 4 Wärtsilä dualLNG/diesel enginesdelivering 8800 kWeach. 90 millioneuros of investment. Speed 35 kn Length 123 m Beam 28 m 28 2 , 4,400 tonnes of nitrogen oxides (NOx), People 1,200 500 m.l. Cargo Vehicles 250 of Valencia andPalma. and whilemooredintheports generator usedonapproach gas equipped withanauxiliary Thedertaken shipis attheport. first operation ofthis kindun- for theAbelMatutes ferry, the at thePort ofValencia inJune took theirfirst delivery ofLNG Meanwhile, bothcompanies poweredfleet by thisfuel. operates, andtheentirenew wheretheshipping line ports ed toalltheSpanishmainland Algeciras, before being extend- ofBarcelona,Valenciaports and be implementedinitiallyatthe agreement over 10years, to involves anexclusive supply in Spain.This strategic alliance supply contract topower ships Natural Gas(LNG)bunkering signedthefirstgy Liquefied In January, BaleàriaandNatur LNG supplies LNG supplies - 31 Corporate SR and Sustainability Report 2018 32 Corporate SR and Sustainability Report 2018 mopeds Outdoor deck On-board services Innovations the environment. Formentera, balancing reliability, convenience andspeedwithrespectfor a qualitative step change betweenIbizaand initstransport services builtattheGondanshipyardto itsfleet, inAsturias, allowing it to make Between late 2017 andearly2018, Baleàriaaddedfour eco-fast ferries offour ferriesSet eco-fast on-board services. easier sailing inadverse seaconditionsandto ensure passenger comfort. Glass-fibre-reinforced polyester hull. 24 x360 Wphotovoltaic solarpanelsoneachshipto provide power for Wave-piercing bow equippedwithsidewater evacuation tunnelsfor New generation 1,450 hpengines to minimisepollutantgasemissions. Eco AireJuly2018 Eco Terra June2018 Eco Lux March 2018 Eco Aqua 2017 December | Audiovisual content | Bar | Free Wi-Fi connection | Space to carry bicycles and Space to carry Speed 28 kn Length 28 m 28 Shipbuilding Project award.Shipbuilding Project noise pollution. See page88 C0 compared withtheMaverick Most Notable Reduction ofpractically all ships previously operating Evaluation ofthe eco-fast ferries eco-fast 2 Investrategia 2018 /emissions/mile -36% 9 Beam on theroute. 9 m People 350 and deliver training to teams of innovation leaders andfollowers. Meanwhile, theB-DigitalProgramme was implemented to raise awareness awareness of thedigitalculture among allemployees. on enhancedcustomer experience andalsoprocesses, productivity and 2019 and2020 intheprocess of transforming thecompany, focused both Various challenges were analysedinorder to achieve progress between to position Baleàriaasabenchmarkinitssector. need to implementtheactions. process requires awareness-raising andafocus onthepeoplewhowill cal innovation, taking into accountthefact thatthedigitaltransformation The initiatives were basedontwo cornerstones: culture andtechnologi - modelisalignedwiththelatestBaleària business market trends. of digitaltransformation atthecompany, withtheaimof ensuring the for technological improvement andothers focused ongenerating aprocess number of horizontal projects were implemented attheorganisation, some strategic for thecompany's competitiveness.Over thecourse of theyear a In early2018 Baleàriacreated thenewDigitalTransformation area, whichis Digitisation digital monitoring of pets. cal charging technologies and - entertainment solutions,electri ity, digitalsignage andon-board are: modernisationof connectiv Theshipbuilding. mainproposals both theexisting andin fleet project hasbeenlaunchedfor The shipdigitaltransformation 47 Completed In progress Projects 'Smart ships' 'Smart 61 Pilot 13 1 the sametimeexpanding technologies time between2018 and2020, whileat internal effort to recover technological ny. Both typesofrepresented action an tives to adddigitalvalue to thecompa- obsolete basictechnologies, andinitia- improvements lines: tary to themost pursued two parallel butcomplemen- logical position over recent years, work In accordance withBaleària's techno- - between Fleet andLand staff. of thecompany, inparticular cation among thedifferent areas ity, collaboration andcommuni- to improve efficiency, productiv ical solutionshasbeguninorder The modernisationof technolog Technological solutions Key actions See page46 - - learning system. rules-based intelligence business predictive techniquesanda over theperiod2019-20 through vanced to analyses bedeveloped in real time. This willallow ad- integrating allcompany sources one single dataenvironment management solutionsto create Identification data of smart Smart datamanagement Smart company. the futuresustainability ofthe tounderpinbeen redesigned ponents anddatamodelhave com- business architecture, nal management demands.The with market changes andinter ible decision-making aligned key information flex for swift, also beendefinedtoprovide programmingfleet modelhas A management controland ting andrevenue. area,abovesales allinfare set will deliver greateragility inthe system toexpand. The system allowing thee-Commerceeco- interaction withplatforms, along withenhancedment, operability ininternalmanage- provide greaterflexibility and system hasbeendeveloped to A newmanagement bookings NSG - - - 33 Corporate SR and Sustainability Report 2018 34 Corporate SR and Sustainability Report 2018 ings, andafewings, for passengers. crossing between Malaga andTangier Med,mainlywithcargo-only sail- company together withMarítimaPeregar meantthestart of anewregular Meanwhile, theestablishment of thenewCompañía MarítimaAlborán was maintainedafter thehighseasonended. and Almeria,whichithadruntheprevious summer, andwhichthisyear international crossing of between theport BeniEnsarinNador, Morocco its presence Africa. inNorth InJune, then,theshipping lineresumed the In 2018, Baleàriacontinuedto achieve progress initsaimof consolidating Overseas Markets 1,109,000 Internationalisation 2011 CARIBBEAN REGION passengers Fort Lauderdale(USA)-Freeport (The Bahamas) (+26% ) 26% out of total countries A localoperator aglobalvision with 5 294,000 international vehicles (+27% 2018 2017 2016 2003 NORTH AFRICA routes 5 Almeria-Nador(Morocco) Malaga -Tangier (Morocco) Valencia -Mostaganem (Algeria) Algeciras -Tangier (Morocco) ) 28% out of total international *Compañía MarítimaAlborán 84,800,000€ offices 5 turnover (+16% ) 22% out of total 16% Satisfaction with theinternationalSatisfaction with routes service Investrategia 2018 7,7 15% 253,613 nautical miles Mostaganem Bahamas Tangier sailed Nador experienced noproblems. a rating of 8.1 (+9% The Mostaganem crossing stands outinparticular, with ) , while99.1% of passengers indicate thatthey 32% 37% 5.9% 6.9% 8.5% 5,996 Mostaganem Bahamas travels Tangier Nador (+13%) 78.7% crossing. any single shipping lineonthis tion, arecordturnaroundfor were achieved ineachdirec- a totalof17dailydepartures the Algeciras-Tangier Medroute It shouldbementionedthaton of10ships. tional), withafleet (fourroutes oftheminterna- Crossing', Baleàriaran seven In the2018 'Operation Strait ings. ings. withshipsandnew cross port, of aplanfor investment atthe year round,withinthecontext ing theAlmeria-Nadorrouteall company's interest inmaintain- Director. MrUtorexpressed the and Mostafa Benali,thePort Foutat, Mayor ofBeniEnsar, inNadorwithAbdelhalim met Baleària's Adolfo President Utor the Bahamas). Rico,Republic, Puerto Cubaand and theCaribbean(Dominican Africa plans newinNorth routes the internationalmarket, and place tocontinuegrowing in and technicalcapability in shipping linehastheeconomic tion asaglobaloperator. The goods) toconsolidateitsposi- of passengers, vehicles and (combined maritimetransport model successful business Baleària's goal istoexport a 'Operation Strait Crossing' Future challenges Nador - 35 Corporate SR and Sustainability Report 2018 36 Corporate SR and Sustainability Report 2018 Clipper Pennant (chartered, cargo only). two alternating ships. de Tenerife, withthree rounds perweek operated by La Luz inLas Palmas deGran CanariaandSantaCruz This isatriangular route of betweentheports Huelva, Islands. tween theSpanishmainland andtheCanary Bridge Seaways (CBS)alliancefor be- jointsailings Baleària andFred. OlsenExpress uptheCanary set withtheaimofnies, guaranteeing acomprehensive, reliable, andhigher-quality service. within Spain.These partnerships allowed Baleàriato generate operational synergies withother shipping compa- In 2018 Baleàriaforged withother alliances shipping to companies operate newroutes andreach newmarkets Driving growth CANARY BRIDGE SEAWAYS Martín iSoler (Baleària-owned, passenger Ships Martín andcargo) | Maritime traffic 1,920,000 2,277,000 passengers passengers (+12%) (+20%) 44% 50% *Includes routes withMelilla,Ceuta, Nador, Tangier andMostaganem. out of total out of total Balearic Routes (withPeninsula andinter-island) North AfricaRoutesNorth -MainlandSpain* 467,300 560,300 vehicles vehicles (+10%) (+23%) cargo) |Festivo (MarítimaPeregar-owned, cargo only). crossing andday. goods onexclusive cargo depending onthe services, Tangier andCeuta, both carrying passengers and run regular from sailings of theport Malaga to Melilla, Marítima Alborán, eachof themwitha50%stake to traffic) foundedanewcompany named Compañía Baleària andMarítimaPeregar (specialising ingoods COMPAÑÍA MARÍTIMA ALBORÁN 45% Dénia Ciutat Creativa Ships Dénia (Baleària-owned,passengers and out of total 54% out of total 4,526,000 1,260,000 m.l. cargo m.l. cargo (+1% (+14% ) ) 20% 79% out of out of total total their cultural heritage. andshowcasetonomous cities boost theeconomy oftheau- Melilla. Bothinitiatives aimto is alsooffering tourist tickets in its tothecity. The shipping line tourist tickets for weekend vis mous City ofCeutatoprovide petitive tenderby theAutono- Baleària was awarded thecom- Islands, CeutaandMelilla. in theBalearicandCanary discount schemefor residents velopment launchedthe75% Ministry ofInfrastructure De- In summer2018 theSpanish 13,840 passengers beneficiary Residents discount Tourist tickets - 37 Corporate SR and Sustainability Report 2018 38 Corporate SR and Sustainability Report 2018 achieve theSDGs. and transformation in order to modelasanagentness for change tainability of attheheart itsbusi- shipping linehasintegrated sus for Sustainable Development. The ofmental part the2030 Agenda by theUnited Nationsasafunda- opment Goals(SDGs)approved its culture theSustainable Devel - Baleària hasincorporated within to transform theworld The roadmap national andglobalhealthrisks. warning, riskreduction andmanagement of developingin particular countries, for early M 3.D Strengthen thecapacityof allcountries, well-being for allatages. ODS 3. Ensurehealthy lives andpromote Programme oftheFoundation. Baleària HealthPlanandHealthy Baleària pages 53 and84 NO POVERTY Sustainable Development Goals ZERO HUNGER WELL-BEING HEALTH AND See - commitment to theSDGswithin 2018 to continueadding to this New projects were undertaken in Sustainable Development Goals. bution of information aboutthe as internal training andthedistri- awareness-raising initiatives, such workforce through arange of mitment to theSDGsto allits Baleària hasextended thiscom- Equality Plan. political life. leadership atalllevels of decision-makingin for andequalopportunities participation M 5.5 Ensure women’s fullandeffective empower allwomen andgirls. ODS 5. Achieve gender equality and EDUCATION QUALITY See page53 EQUALITY GENDER SANITATION WATER AND CLEAN routes). the launchandconsolidationof tion) andinternationalisation (with (reflected indigitaltransforma - as thekey element),innovation environment (witheco-efficiency Baleària's strategic approaches: training programme. Digital transformation andinnovation technological upgrading andinnovation. productivity through diversification, AchieveM 8.2 higherlevels of economic for all. productive employment anddecentwork sustainable fulland economicgrowth, ODS 8. Promotesustained, inclusive and Eco-efficient sailing anduseofnatural gas. technologies andindustrial processes. adoption of cleanandenvironmentally sound increased resource-use efficiency and greater industries to make themsustainable, with M 9.4 Upgrade infrastructure andretrofit industrialisation andfoster innovation. promote inclusive andsustainable ODS 9. infrastructure, Buildresilient ENERGY AND CLEAN AFFORDABLE See featured item onpage39 GROWTH AND ECONOMIC DECENT WORK See page46 INFRAESTRUCTURE INNOVATION INDUSTRY, Eco-efficient sailing anduseofnatural gas. sailings. sailings. ment inMoroccoandAlgeriawith new Promote socialandeconomicdevelop- least developed countries, African countries (...) States where theneedisgreatest, in particular M 10. (...)Includingforeign direct investment, to countries. OD S10. Reduce inequality inandbetween municipal andother waste management. paying specialattention to airqualityand environmental impact of cities,includingby M 11.6 Reduce theadverse percapita inclusive, safe, andsustainable. resilient ODS 11. Make andhumansettlements cities See featured item above. INEQUALITIES REDUCED tally linked to three of theSDGs. natural gasasafuel,fundamen- sailing andtheuseof liquefied tives withregard to eco-efficient number of projects andinitia- Baleària hasundertaken a Ibiza-Formentera route. Addition offour eco-fast ferriesonthe with LNGmodels. toreplacetheenginesonsixships Project gas-powered ships. Construction ofthreenewliquefiednatural INFRAESTRUCTURE INNOVATION INDUSTRY, See page39 COMMUNITIES CITIES AND SUSTAINABLE COMMUNITIES CITIES AND SUSTAINABLE Eco-efficient sailingEco-efficient anduseof natural gas See page31 See pages30and31 See page32 CONSUMPTION CONSUMPTION AND PRODUCTION RESPONSIVE ACTION CLIMATE Eco-efficient sailing anduseofnatural gas. See page72 Member oftheLean&Green platform . national policiesandstrategies (...) M 13.2 Integrate climate changemeasures into climate change anditseffects. ODS 13. tocombat Adopturgentmeasures reuse. through prevention, reduction, recycling and M 12.5 Substantially reduce waste generation patterns.and production ODS 12.Ensuresustainable consumption bleware. Incorporation ofbiodegradable ta- Waste reduction. ACTION CLIMATE See featured item above. See page72 WATER LIFE BELOW See page71 LIFE ONLAND management. Collaboration with Ecoembes inwaste the achievement of theSDGs. technology andfinancial resources, to support mobilize andshare knowledge, expertise, M 17.16 Multi-stakeholder that partnerships sustainable development. ODS 17. Revitalise for theglobalpartnership various marineflora and fauna projects. The BaleàriaFoundation collaborates with See page84 adverse impacts (...) and coastal ecosystems to avoid significant M 14.2 Sustainably manageandprotect marine sustainable development. for oceans, seasandmarineresources ODS 14. Conserve andsustainably usethe INSTITUTIONS AND STRONG PEACE, JUSTICE See page71 GOALS FOR THE PARTNERSHIPS 39 Corporate SR and Sustainability Report 2018 40 Corporate SR and Sustainability Report 2018 Teamwork 41 Corporate SR and Sustainability Report 2018 42 Corporate SR and Sustainability Report 2018 A growing team DISTRIBUTION BY AREA AND GENDER DISTRIBUTION BY AGE AND GENDER WORKFORCE BY NATIONALITY <20 20-3030-40 40-50 50-60 >60 77% ties representedties attheshipping line, asaresult of intheFleet hirings area. and average years atthecompany. of service Lastly, there was alsoanotable increase inthenumber of nationali- office inDenia were alsoincreased. Thenewhirings were mainly younger staff,serving to reducethe average age addition of newshipsatthecompany andthelaunchof newroutes andregional offices. Theresources athead The workforce of Baleàriacontinueditstrend of expansion, including both Fleet andLand staff, asa result of the Women Spanish Land Total Fleet Total Men Workforce profile (+1.5%) Interns Admin/Operatives Technicians Middlemanagement Director employees 1,681 1% 1% 1% (+9.4% Women Women Total Total Men Men ) 23% 25% 23% 3% 3% 3% 2% 3% 3% 3% 23% foreign (+47% ) 32% 30% 39% 87% 55% 16.5% nationalities 67% 59% 63% 68% 67% 56% 81% 55 (+9 83.5% 26% ) 26% 25% 13% Other 30% Bulgaria 5% USA 7% Romania 12% Honduras 18% Morocco 28% 16% 18% 8% 924 (+8.4% Fleet ) 2% 3% 1% 3% 14% 12% 13% 16% 13% 13% 757 (+10%) Land were EUcitizens (74% in2017). In theFleet 84% ofcrew members 18% 21% 13% 22% 14% 12% 15% average age average 57% years 38 (-1 ) 3% 3% 1% 1%

45% 5% 5% average service 43% years (-2 4 )

GEOGRAPHICAL DISTRIBUTION OF LAND AREA Tangier

Main regional offices Main regional offices 9% Ceuta 6% Nador Andalusia 1% 16% Melilla 2%

Denia 35% |Algeciras 13% |Tangier 9% Valencia Region 40% Catalonia 5% Balearics Balearics Islands 15% Miami 4% Bahamas 2% 43 Corporate SR and Sustainability Report 2018 44 Corporate SR and Sustainability Report 2018 bers withthenewLNGfuel, theapplicationof thenewITsystems, andfood safety onboard. with theBaleàriastrategy. The courses thusfocused onimproving executive skills,familiarity among crew mem- More hours of training were delivered in2018 asaresult of greater investment intraining programmes aligned programme to serving capture evaluating newtalent, attitudes inaccordance withcompany values. provides apermanentoffering of training to facilitate employees' skillsdevelopment, as well asa work experience workforce, andalsomakes available itsservices to to third increase parties company competitiveness. The EdEB The School(EdEB) BaleàriaBusiness provides professional andpersonal development training for theentire developmentProfessional employees Baleària BusinessSchool Baleària 1,251 trained (+13%) (+33% 146 ) workforce (0%) 214 74% of of employment category Middle management (17.1%)  Employees trained by Admin/Operative Technical (12.7%) Executive (3.5%) Interns (2.3%) (+132% 44 27,535 ) (-12% 29 training (65.4%) ) (+38% hours ) (+12% 818 ) employee 22h (+22%) per training 441 actions (+68%) (+3% 774 ) Employees trained by Land (38%) Fleet (62%) area 446,098€ investment in training (+15%) (+32% 477 ) employee 357€ per By gender By area By employment category By topic By mode TRAINING HOURS Business management 3,518 IT 3,613 Food safety 5,836 Women 10,301 Men 17,234 Fleet 14,727 Land 12,808 Online 10,543 In-person 15,848 Admin/Operative 14,704 Blended 164 Interns 301 Executive 766 Environmental management 378 Distance learning980 Other subjects 848 Technical 3,632 (+130%) (-19%) (-69%) (+55%) (+22%) (+60%) (-17%) (+97%) (+23%)

Customer 2,210 service Workplace RiskPrevention 2,269 (+63%) (+16%) 2,568 Maritime 2,568 Middle managers8,131 Managerial andpersonal skills2,852

Specific company training 3,443

(+15%) more thanin2017. and 4inFleet), whichmeant3 them intheirdailywork. initiatives andatutortoguide standards. training Itincludes values, aswell asbehavioural culture, mission,visionand place, conveying thecorporate workers attheirjobandwork the swift integration ofnew co- The on-boarding planfacilitates the company. areasof of different functional were incorporated atanumber the work experience students pilot's licence. IntheLandarea, ence sailing andtoobtaintheir their fullyear ofwork experi - ing students needtocomplete were hired,whiletheremain- begun work experience in2017 Four Fleet students whohad Work experience personnel Land 13 peoplewere hired (9 inLand 40% successfully completed 21 37% Land On-boarding Plan on-boarding 524 65 people (+48%) (-20%) plans 63% Fleet 44 Fleet - 45 Corporate SR and Sustainability Report 2018 46 Corporate SR and Sustainability Report 2018 leadership, teamwork. and listening, changemanagement, conflict management, (store and kitchen staff). (store andkitchen staff). Department withtheOn-boardconnection Services company. In2018 training were actions conducted in improvements intheprocesses of eacharea of the The aimof thisnewtraining programme isto detect 'PMI' INTERNAL IMPROVEMENT to thementeesbelonging to theprogramme. staging to sessions convey anoverview of thecompany Directors andarea managers asmentors, atBaleàriaact address thecompany's growth andinternationalisation. and skilling employees aiming for internal promotion to Programme beganin2016 withthegoalof preparing The 'ECI' Growth andInternationalisation Teams 'ECI' GROWTH AND School. business and recognised by theEDEM diploma granted by theEdEB The were participants issueda management responsibilities. required for executive andteam develop theskillsandabilities tive workshops), intended to sions (both theoretical andpractical, through interac staff working underthem inin-persontook part ses employees responsible for any orwith department begun in2016. Over aperiodof more thantwo years team management techniques endedin2018, having This higher-level training programme inleadership and 'PDP' PEOPLE MANAGEMENT Main training programs PROGRAMME INTERNATIONALISATION TEAMS PROGRAMME 32 16 attendees Topics: self-awareness andemotion intelligence, communication 100 attendees attendees 70 teaching hours 14 teaching hours 49

sessions 105 teaching hours Student rating outof amaxi- 3.6 mum of 4points. - - Flexibility andwork-life balance: beinghappy atwork (Quinton). leaders (Manpower Group), Flexible remuneration (Flexoh) and 19 digitalfollowers) and 3D printing). and 3Dprinting). as Blockchain, theInternet of Things, attendees virtual explanation of newtechnologies (such theessential people,tion (business, processes, customers…) withan transformation affects every sphere of theorganisa- The were sessions intended to show how digital ing theprocess of digitaltransformation atBaleària. fields, whothenbecomeinternal sponsors inaddress with theaimof creating leaders andfollowers inthese horizontallyand applies across theentire company, raising andtraining programme was upin2018 set The innovation indigitaltransformation awareness- management ITsystem. offices andcargo operations), andthenewcompany pany management processes (ticket discounts,ticket Training likewise schemes focused on internal com- application andto raise awareness asto itsimportance. under them,inorder to facilitate andguarantee proper middle managers atthecompany withstaff working formance Management System for allexecutives and Training initiatives were likewise staged to cover thePer nal personnel. The seminars are intended for both internal andexter among andto companies share initiatives of interest. lencia) regions, to strengthen andunderpinnetworks intheMarinaAlta(Alicante)companies andSafor (Va- experts andprofessionals inhumanresources from the aimof sharing knowledge andexperience among People andTalent, aninnovative programme with February 18saw thelaunchof theÁgora Seminars: B-DIGITAL TALENT ÁGORA SEMINARS: PEOPLE AND Sessions: People anddigitaltransformation (Baleària), Millennial 48 attendees from 13companies. Monthly sessions 44 attendees from every area of Baleària(25digitalleadersand 28 teaching hours - - - Attendees onthePeople Management Programme withtheBaleàriaPresident. and passenger care). role(mariners multifunctional new ships,sincethey a perform for thecrew membersofthese eco-fast ferries. Specificcourse training for employees ofboth sengers. and discountsfor pas resident system, andsales the bookings Refresher covering courses sengers. protocols andhandling ofpas ing operational andunifying staff,establish withtheaimof - Ticket Centre Office andContact liquefied natural gas. ships thatwillbepowered by forcourses crewmembers on Crew membersontheset of Fred. OlsenExpress. Joint Newly hiredTicket Office staff. Customer Care. Intendedfor LNG. Theoretical-practical Other courses - - rangement. underthealliancear of routes shipping for lines thelaunch training plan. implement andadminister a company training managers to initiative with Cegos España for line training intheISMCode. The EdEB hasupdatedthison- in Ibiza. with theNedlandsailing school masters throughanagreement for bridge marinersandport On boardpractical training chemicalspillages.collecting given training inhandling and ers inDeniaandValencia were personnel andwarehouse work Training managers.Joint Safety management code. On-board work experience. Chemical leaks.Dockside - - modules tofacilitatemodules learning. andtrainingeos, games mini- rums, tasksandothermaterials. other platforms. mobile). devices (computer, and tablet training. ality inordertoencourage tool offering- greaterfunction students withamoreattractive ing employees andexternal form withtheaimofprovid- 2018 asanew e-learning plat School) launchedCanvas in The EdeB (BaleàriaBusiness Inclusionofinteractive vid- Accesstodocuments,fo - Integration from ofcourses Accessiblefromdifferent New e-learning platform - 47 Corporate SR and Sustainability Report 2018 48 Corporate SR and Sustainability Report 2018 criteria applied. Management System, leading to greater consistency intheevaluation Training initiatives were likewise conducted to cover theSGDPerformance changes to theorganisational structure of theworkforce. by School,inadditionto theBaleàriaBusiness internal promotions and tion gathered, to draw upindividualiseddevelopment plansorganised The evaluations served asthestarting together withother informa point, - therefore evaluated having beenatthecompany for time. onlyashort within theSGDsystem of employees ontemporary contracts, whowere The lower score intheLand evaluations was theresult of theinclusion Fleet, where thenumberof people evaluated was doubled. inclusion of groups thathadnot previously beencovered, atthe especially ofthe importance thetool among theevaluators, andtheprogressive evaluated atthecompany, asaconsequenceof greater awareness asto In 2018 there was asignificantincrease inthenumber of staff members phasising skillsfor thedevelopment of theirfunctions. tasks, theirattitude, andtheiralignmentwiththecompany's values, em- Its missionisto monitor eachemployee intheperformance of theirdaily evaluatingretain talent, theprofessional performance of theworkforce. The 'SGD' Performance Management System isatool to manage and Talent management 56% PERFORMANCE MANAGEMENT SYSTEM Staff selection and evaluation 77.5% 8.6% See page46 Men 55%Women 45% (2.43 en2017 2.30 Land 13.9% ) 741 (+38% Land 2.56 employees 1,314 evaluated average (2.35 en2017 ) score (+68%) ) 573 (+133%) Fleet 19.7% Men 84% Women 16% 2.27 en2017 (2.27 2.68 Fleet ) 8.6% 44% 71.7% Land 18 Fleet 39 Women 13 Men 44 Executive Middle management Technicians Admin/Operatives Interns Internal promotions  expectations  expected  tations 1,5% employees 3 and4Performance above 2 and<3Performance as <2 Performance below expec 2,18% 12,1% 57 ) (-40% 67,6% 16% - selection processes. selection specific training being given by the EdEB for allcolleagues involved in a uniform manner, irrespective This of whoisconductingit. willinvolve One of theaimsisthat staff process selection shouldbeappliedin of Baleària. and furthermore withthe best alignmentwiththeorganisational culture ent withthemost appropriate technical skillsandknowledge for thejob, of improving efficacy, objectivityand reliability. Theideais to attract tal- In 2018 Baleàriadevised anewprocedure for staff withtheaim selection STAFF SELECTION PROCEDURE Generation oftheManual capabilities motivation to adapt based on: with theBaleàriaModel, evaluation inaccordance candidate study and how to the conduct likewise given asto An explanation is external selection. internal versus selection planand selection application procedure, following content: staff drawn up, including the manual hasbeen The staff selection Technical skills Soft skillsand Culture, values and Flexibility andcapacity Phase I/2018 be selected. offices willthemselves and thevarious regional processes atheadoffice be involved inselection The colleagues whowill Interviewer selection Interviewer Phase II/2019 Baleària. with candidates at jobinterviews conduct leading to certification to course willbedelivered, The EdEB Staff Selection Phase III/2019 Training Phase IV/Continuous process organisation. to thejobandto the candidate hasadapted that theselected established to confirm mechanisms willalsobe improvement and continuous vacancy. Monitoring the request for the the manager whofiled both of candidates and costs andsatisfaction time of theprocesses, measure theaverage using indicators to processes, selection serve asaguideinall have beendevised to Quality standards (monthly frequency) Audits 49 Corporate SR and Sustainability Report 2018 50 Corporate SR and Sustainability Report 2018 WORKFORCE BY CONTRACTS STAFF HIRINGS AND DEPARTURES ON LAND with theorganisation's values andtheSustainable Development Goals. dance withthis,recruitment are policies developed to improve workforce stability andmulticulturalism, inline Baleària believes thatitsteam isafundamentalelementinitsoperations, andalsoitscompetitiveness. Inaccor Job stability 49.4% Permanent contracts Employment policies +5% contracts 14.6% 98% ofthecontracts arefull-time. 360 Permanent (36%) Temporary (64%) hirings (-7.9% ) contracts 32 Interns Permanent Substitution Works andservice Temporary 24.1% new

11.9% of theworkforce 25.2% 235 68 29 15 13 50% 0.5%  

(98.2%) (1.8%) Half-time Full-time departures Women |42% Men |58% 1.3% 389 (+28.8% Permanent contracts by area workforce 54% Land of of

) 73% workforce 42% Fleet of of 0.30% (0.42% in2017) (1.67% 2% in2017) as intheprevious year. 2.9% remaining Fleet, thesame Baleària was 2.2% for Landand appliedat of thebasicsalary the standard starting salary Theboth cases. ratio between in the sameineachcategory being Baleària, thebasicsalary between menandwomen at There isnodifference inpay Professional contingencies Common contingencies Salary remunerationSalary Absenteeism index People disabilities with contracts (+60%) direct 8 employment centres (-36% 9 via ) - 51 Corporate SR and Sustainability Report 2018 52 Corporate SR and Sustainability Report 2018 year to travel. areees given anumberof annualvouchers thatthey canuseduring the chance to travel onthecrossings itoperates withspecialbenefits.Employ The company offers allmembers of the workforce andtheir relatives the DISCOUNTED TICKETS in 2018 withahospital inHuelva. hospitals inthose regions where itoperates. Anewagreement was added treated atSocialSecurity hospitals, Baleàriahasagreements inplacewith Meanwhile, inorder to assist foreign crew members whocannot be aged by by therepresentatives. allocated to socialbenefitsthatare provided by thecompany andman- the representatives of theFleet employees. of Apart theoverall payroll is The originsof thesocialfundlieincollective agreements reached with A good company to work for FLEET SOCIAL FUND Social benefits Social beneficiaries employee 290 (+4% beneficiaries ) employee 267 (-1 ) 309,982€ accumulated fund contribution 2018 91,851€ 1,183 (+19.5%) (+5.6% tickets (-6% ) ) - very highly. receivedprofessional support their relatives thankstothe rate achieved theprogress by Participants intheprogramme andtheirrelatives.beneficiaries guidance for theFamily Plan tion consultants,whoprovide disability andsocialintegra- Baleària withitsspecialist tion. The organisationprovides through theAdecco Founda- are responsible, implemented disabled relative for whomthey Baleària personnelwitha Programme intendedfor the firm. in various fields whichpartner vantages offered by companies ofdiscounts andad- a series Baleària personnelbenefitfrom beneficiaries Employee Club companies Family Plan 44 3 (-1 (-6) ) time contracts tobetransferred tofull-time. |Prioritisepersonnelwithpart- opportunities. ance innew andequaltreatment and hirings withthejob.tions unconnected |Genderbal- and breastfeeding, wherever possible. |Adapt working toguarantee conditionsandtimes healthy pregnancy cy. posts wherewomen accountfor under50%. under-represented gender in allotherconditionsbeing equal,inparticular fessional development. |Establish topromoteemployees measures ofthe women,interest inpromotion,particular inordertofacilitate theirpro- stands at 70%). Castellón. and Healthy Organisations Research group atUJI (Jaume IUniversity) in being of theworkforce, togetherwiththeWANT Psychosocial Prevention sults of whichare still inorder pending, tothepsychosocial ascertain well- Meanwhile, another survey was conducted attheendof theyear, there- Key results Sample improved eye health. obesity orexcess weight areas, incertain aswell ascancerprevention and The conclusionreached was theneedto promote initiatives to reduce and to andlines of action definepriorities for theBaleàriaHealthPlans. it to compare theresults withthe2017 NationalHealthSurvey for Spain, Baleària conducted anemployee survey into healthy lifestyles, allowing applied measures Certain discrimination. entire company inorder to guarantee thecomplete absenceof gender has inplaceanEquality onahorizontal Planthatapplies basisto the ment relationships andpeoplemanagement attheorganisation. Baleària for Baleària,andistherefore seenasafundamentalprincipleinemploy Equal treatmentbetweenmenandwomen isapriority andopportunities EQUALITY PLAN WELL-BEING HEALTHY LIFESTYLES AND PSYCHOSOCIAL 82% indicated that theirmoodwas positive. 90% felt they were ingood health (higher thantheSpanishaverage, which 546 employees (53% menand47% women /68% Landand32% Fleet). Occupational health|Definethosejobsthatarerisk-freeOccupational during pregnan - Promotion andprofessional development individualswithan |Identify ques Staff selection|Eliminateinterview - 47 measures outof a total of 98underthe 49% measures applied plan - standard working hours. their while threeresumed intheirworkingduction hours, and oneman)requested thisre- 2018 five people (four women of guardianshipachild.In working hoursreducedbecause A totalof30peoplehadtheir guardianship of achild ended. suming work theirleave after man) subsequentlynotre- them (three women andone of parentalleave, withfour of and 19men)tookadvantage A totalof34workers (15 women

life insociety. intended toimprove quality of biographies women ofthese withthree in Sciencecollection, inthePioneeringumes Women also publishedtheinitialvol- them underconstruction). It womenafter scientists (two of Baleària namedsixofitsships of therolewomen, in2018 awareness andrecognition With theaimofraising the Reduced working hoursfor Paternal leave EleanorRoosevelt Rosalind Franklin Hedy Lamarr CeciliaPayne MarieCurie Hypatia deAlejandría Paternal leave after women after Ships named 53 Corporate SR and Sustainability Report 2018 54 Corporate SR and Sustainability Report 2018 in service Excellence 55 Corporate SR and Sustainability Report 2018 56 Corporate SR and Sustainability Report 2018 and to reduce customer waiting times. communication withcustomers viaallchannelsandrenewal of theweb response process to make itmore agile Thanks to thisdigitisationprocess, aplanwillbeimplemented in2019 to reduce complaints,including improved its Contact Centre inorder to offer abetter service. response to begiven to them.Meanwhile, BaleàriaCaribbeanrestructured Furthermore, the record of themost frequent allows queries abetter ing effort whilemaking less ontheirpart theprocesses more efficient. that customers receive amore personalised andintuitive requir service, This to digitisationserves prioritiseandcategorise whichmeans queries, form providing afullrecord of interactions witheachcustomer. with customers (phonecalls andemails)withanewmanagement plat in2018alised service, Baleàriadigitiseditstwo mainchannelsfor contact With theaimof providing customers withamore efficientandperson- a priority Customer satisfaction as NEW CONTACT CENTRE interacting withany of part thefirm,conveniently, swiftly, andentirely inaccordance withtheirneeds. points of between thecompany contact anditscustomers. The aimisto improve theexperience of customers In 2018 Baleàriacreated theCustomer Experience Area, ahorizontal active listening thatworks department atall Passenger experience per 100passengers complaints 0.16 (+0.07 ) complaints 6,982 cancellations, delaysandfleet rescheduling. 385 atofficial bodies. 70% atFleet and30%Land. The mainreasons for complaints were - - congratulations

the Contact Centre. of response from satisfaction 6% increased level 6% (+14% 57 Contact Center 4,7 ) 1,404 queries (-54%) CLUB BALEÀRIA: CUSTOMER LOYALTY Free stores. up oneachtrip, andthen exchanged for andcartickets gifts attheTax In thecaseof theCeuta&MelillaClubBaleària,pointscanbebuilt number of trips. identity andresidence), and onecarcarriedfree of charge every certain the ticket office (sincetickets canbepurchased onboard with proof of of benefitstheoption these of embarking withoutpassing through Meanwhile, thespecificIbiza-Formentera ClubBaleàriaaddsontop depending onavailability, andexclusive offers from partners. cafeterias andstores, inadditionto free to access Superiorlounge seats on theIbiza-Formentera route and10%at theon-board restaurants, fits, suchasdiscounts of 10%from thethird tripper year onwards, 20% Baleària hasinplacealoyalty cluboffering members numerous bene - Company: Investrategia ships, whichinboth achieved cases thehighest scores ever. cally allindicators rose, emphasisontheloyalty withaparticular index andtherating given to theeco-fast ferry sampling after eachhighseasonperiod(Christmas, Easter, May andSummer)onmost of itsships.In2018 practi- To customer ascertain satisfaction, telephone Baleàriaconducts andface-to-face surveys by meansof random improvement process. customer experience, andthereports issuedare integrated withinthecustomer experience Meanwhile, theexternal monthlyverification consultantSGSconducts and evaluation of the experience soasto devise appropriate strategies andthereby increase satisfaction. customers. Ithighlightsthecustomer satisfaction study, theaimof whichisto analysetheuser anumberofBaleària conduct different each studies year inorder better to understand its Customer studies SATISFACTION SURVEYS valuation ships 8.1 (+0.1 ) general service 8.1 (+0.3) ferries (+0.2 8 ) fast ferries 8.3 (+0.1 for money ) 7.2 value (+0.3) terminals ferry 7.9 (+0.3) 97.2% access to the ship loyalty index 7.8 (+0.1 (+2.5) ) punctuality 7.6 (-0.1 ) Best historical data 2017). Islands routes were in clubmembers(19% bers (9%in2017).

with Baleàriaagain? Would you travel 22% 10% of allpassengers were clubmem- 26,473 cleanliness of allpassengers onBalearic of ships Probably 243,158 8.2 (+0.2 new membersin2018. 16.2% (active members) ) members 6.5 (+12.2%) per year trips personal 5,700 8.6 (+0.3) listened to customers Definitely 81%

57 Corporate SR and Sustainability Report 2018 58 Corporate SR and Sustainability Report 2018 using biodegradable disposable tableware. Arabic, Mediterranean andCaribbeancuisine, with90%of now thefleet African NewfeaturesNorth sailings. were addedin2018, blending Asian, or intolerances, healthy, vegan andvegetarian menus,andhalalfood on restaurants. Appropriate produce isavailable for peoplewithfood allergies in thecafeterias to arange of menusattheself-service andàlacarte gers have to access various catering options:from snacksandsandwiches Depending ontheroute, thetimeof year andtheshipinquestion, passen- which are stepped upinhighseason. available,ous services withthefocus onconvenience andleisure, aspects experience. Whichiswhy theferries, theships,inparticular have numer One of Baleària's goalsisto make thejourney onboard apleasurable The travel experience FOOD AND DRINK ON BOARD drinks, snacks, gifts, books,toys...drinks, snacks,gifts, Most of theshipshave anon-board store where passengers canbuy SHOPS 762,995 On-board services stores 18 (+2% 7,943 points 69 served onboard catering set menus (+7% ) throughadvance (+13.5%) sales (+18% )

) who visited restaurantes passengers self-service the store 10 (+1 ) passengers whoate 17.6% restaurants Of whom48,5% purchased total à lacarte on board 7 (=) 46% See page75 21.3% total ferry 47 bars (+11 )

56% ferry barbecues Investrategia 2018 7.3 (-0.2) (+3 5 7.5 ) Investrategia 2018 (+0.2) - 3,890 games, children'sgames, menus… changing facilities for babies, as:travelvices cots,highchairs, by offering suchspecialser of families travelling onboard, Baleària takes care particular 8.2 cabins Services for familiesServices superior loungeseat (+0,3) The most highlyrated acomodattion is Total capacity fleet 19,455 7,292 vehicles lounge seat 10,012 children's play areas (+5.6% beds (+2 13 ) ) lobby bar 5,543 - workshops andentertainment staff, magic shows, inthesummer. andmusicalperformances mer, Easter andChristmas) of apart thefleet stages theBaleària&Musicprogramme, children's whichincludes the Smartfun àlacarte leisure board andrecreational service, games During machines. highseasonperiods(Sum- tent (two shipsalsohave theEntreolas acinema),Internet connection, by Baleàriatravel andtrends magazine, The fleet of vessels offer on-board entertainment options all year round,suchas broadcasts ofaudiovisual con- LEISURE ON BOARD the Ibiza-Formentera route in looking afterPRMpassengers. per regional office with training of crew members andpeople establishes aminimumnumber for disability. sensory Baleària cabins, someof themadapted chairs. The ferries have adapted anchoring pointsfor wheel- seats andtoilets, andsecure The shipshave adapted lounge Internet connections on Internet connections 37,300

2.998 workshops (-46.7%) at children's workshops connections 16,170 Persons withReduced 4,399 4,399 children

passengers who requested (-32.4%) 9ships(-3) special care (+3.7% (+9% Mobility ) ) 2,998 6freethroughoutthecrossing (+3) ships 21 (+7% 14 freefor(+8) alimitedtime 14 shows 8ships(=) (-2.1% ) magic

ship especially preparedship especially for this. intheareas cases, ofor carry the travel incages of different sizes hotela pet allowing animalsto All thecompany's shipshave Internet 51,652 ) travelling withapet Other services 3.6% passengers 3.6% 70% carried pets (+7% ships ) Pets parties 30 (+6) 10,607 Investrategia 2018 (+5%) spaces 625 16,655 (+12%) 7 (=) participants Smartfun connections (-24.3%) Barcelona-Ciutadella Barcelona-Ciutadella Alcúdia-Ciutadella |20% Denia-Formentera |10% zero emissions free to Formentera 8,477 Ibiza-Palma |12% From Ibiza|95% From |5% Denia cars carried carried for free Main routes 452 (+54.8%) bikes (-7.1% ) | 10% Investrategia 2018 6,7 (-0,3) 59 Corporate SR and Sustainability Report 2018 60 Corporate SR and Sustainability Report 2018 to Formentera. informal style for of theset eco-fast ferries linking Ibiza A specificuniform withamorewas alsodesigned final designs for thischange of apparel. were thebasiccriteria inchoosing thefabrics andthe and Fleet personnel. Identity, comfort andversatility In 2018 Baleàrialaunched anewuniform for itsLand terminals, brochures, uniforms, website…). the company's different elements(ships,signsat ferry The newbrand was furthermore gradually addedto environment andsustainability. representing theshipping line's commitmentto the incorporation colour(yellow-green), of asecondary brand andvisualidentity. This firstly involved the In 2018 Baleàriacontinueditsefforts to develop its Visual identity the different channelsand sales territories where itoperates. cial andbranding agreements withtheaimof promoting thebrand within tomer type. Meanwhile, Baleàriahadapresence inanumberof commer The weighting of orimportance eachchannelmay vary by region andcus consolidating amulti-channelstrategy alignedwithallcustomer profiles. trative efficiency. Thismakes theshipping linemore competitive, while projects whichserve to improve thecustomer experience andadminis development of eachdistribution channelthrough digitaltransformation customer centre stage. Efforts were madein 2018 to achieve balanced The fundamentalprincipleof Baleària's commercial strategy isto placethe NEW UNIFORMS NEW BRAND Customer loyalty Sales andmarketing Sales - - - Centre Balearia.com andApp Ticket Officesand Contact Travel agencies Channels E-commerce tions where theshipping lineoperates. integrated platform service providing relevant information onthedestina- improve theusability andconvenience of making digitalassets, theman and isthebrand's mainpointof withconsumers. contact The aimisto nel isregistering double-digitgrowth innumbers of visitsandbookings, strategy, asafundamentalfeature of modern consumerhabits.This chan- involves anincrease of intheimportance mobiledevices inthedigital Baleària isengaged inaprocess of continuousimprovement, whichpartly portable device.portable the boarding card to a ity of downloading included thepossibil- main benefitsadded Theand timetables. about availability, fares of response inqueries process andthespeed regard to thepurchase browsing usability with priority was given to and intuitive interface, addition to amore agile tion were renewed. In Baleària mobile applica- of the functionalities The and design Newmobile application details. without entering bank tickets to bebought was added,allowing Amazon Pay website Integration withthe tourist experiences. and thebooking of in, forms of payment such aseaseof check- mised functionalities, andopti- accessible andmoreern design Caribbean withamod- launched for Baleària wasA mobileportal Baleària Caribbean Mobile website for Amazon Pay Key actions ado. further with no to board sengers ing pas wallet, allow to asmartphone being sentby emailor with boarding cards an opendate andtime, to bepurchased with system allowed tickets Formentera. The between Ibizaand fast-track bookings specific website to Baleària launcheda During thesummer Formentera - Express - 10% strategy, whichwill step inthe'mobilefirst' website. This isthefirst ment to themobile improvefunctional - made anaesthetic and ing manual,Baleària ing to thenewbrand- experience andadapt hancing thecustomer With theaimof en- digital asset 6% Improved mobile Web mobile Sales bySales guide theprocess Web App website of upgrading customers. platforms tion with and chan- munica- com- nels for 84% - 61 Corporate SR and Sustainability Report 2018 62 Corporate SR and Sustainability Report 2018 agreement withClubDeportivo the BalearicIslands),renewed its organiser of sportingevents in tion withEliteChip(theleading Baleària continueditscollabora- eventsSporting media). andNeoxcAula Onboard(Atres Live Festival, Lovin Ibiza,Musi- de Tango (Formentera), Mallorca Festival (Formentera), Festivalito ber of musicfestivals: QuéCeleste Baleària collaborated withanum- Music festivals and intheBalearicIslands. ontheSpanishmainland Chefs(In) by organising events together with Baleària promoted Balearic cuisine Balearic cuisine mand from student groups. its operations to handlehigh de- year Baleàriaonceagain reinforced and Algeciras-Ceuta. During the but was alsoexpanded to Morocco lencia region to theBalearicIslands, routes from Barcelona andtheVa- Student traffic focusedonthe Students andErasmus its customers. day tripsonpreferential terms for Algeciras-Tangier routes, prioritising ers ontheAlcúdia-Ciutadella and one of theseniorcustomer carri- During theoff season,Baleària was Senior Tourism below. The mainagreements are detailed of interest to theshipping line. tive groups, aswell assegments travel agencies andadministra- number of agencygroups, online commercial agreements witha In 2018 Baleàriaunderpinned Agreements andsponsorships - the sales channel. the sales tioning itasaleading memberfor with thememberagencies, posi- ning itscommercial relationship ACAVE, anagreement underpin- Baleària becameamemberof Specialist Travel Agencies Corporate Associationof ment to sustainability. thereby underpinning itscommit between Barcelona andMinorca, vehiclesBaleària carriedelectric European Mobility Week Tour Amicalrallies. intheRoses and part Sables des French 4Lmodelvehicles taking Baleària was thecarrierfor the Algeciras-Tangier line. Meanwhile, the Cycling Onboardevent onthe Melilla. Lastly, there was arepeat of Spanish Legion's AfricanRace in Formentera Marathon andthe U.D and anofficial sponsor ofLevante premium sponsorof Palma Futsal Atlético andremains Baleares a . Italsocollaborated withthe - response (7.8).response (8.1)partment andcommercial were de- thegroupbookings most highlyrated elements faction oftravel agencies. The survey thesatis toascertain atelephone Baleària conducted Travel agencies General agencyGeneral 7.9 satisfaction (8.1 in2017) - presentations. weresic performances scheduled,along withmagic shows andculinary show thepublicon-board leisure andelectronic options,concerts mu- realityvirtual moduleallowed visitors to simulate atripto Ibizaby ferry. To thestand alsopresentedservices, modelsof thenewlybuiltships,whilea In additionto videoscreenings andtheshipping aboutthefleet line's Denia was announcedasaUNESCO Creative City of Gastronomy. also signedwithGasNatural Fenosa (Naturgy) for thesupplyof LNG,while four eco-fast ferries for theIbizaandFormentera route. Anagreement was ships underconstruction powered by liquefiednatural of gas,andtheset The company's mainprojects for 2018 were presented here: thenewsmart andotherings events. stand, providing theplatform for various presentations, commercial meet Balèaria took attheFITUR tourism part trade fair withastriking 200 m Trade fairs andworkshops BaleàriaStand atFitur 2018 2 , - Workshop |CEAV Travel Nights in Majorcaand4thAVA Group ragoza |1st AVA GroupMeeting | Convention Team Group inZa- Nautalia Convention inValencia Alicante, Valencia andMurcia| Ibiza tourismfoundation in Main workshops (Algiers) Travel Market (London) |SITEV ria) |Top Resa (Paris) |World and Transport Fair (Oran, Alge - International Tourism, Travel Trade fairs among otherbenefits. seums inthecity inlow season, tothevariousfree access mu- the shipping line's passengers mote thedestination, offering signed anagreement topro- Baleària andIbizaCity Council Heritage Site. Meanwhile, ofitsdeclarationry asaWorld celebrating the20th anniversa- ism offering ofthecity ofIbiza, cultural, gastronomic andtour host ofthe toapresentation terminalplayedDenia ferry Fair (Denia) atBaleàriaPort Ibiza Cultural andGastronomic Other promotional initiatives -

63 Corporate SR and Sustainability Report 2018 64 Corporate SR and Sustainability Report 2018 coordination intheevent of anemergency. inorderfireetc. to service, refine its protocols andguarantee effective State law enforcement agencies, harbourmaster's authorities, offices, port ganisations, suchasSASEMAR(theSalvage andMaritimeSafety Society), stages shore-ship practice procedures inpartnership withanumberof or for any possible emergency thatcouldoccuronboard. Baleàrialikewise The crews of allthecompany's shipstake inweekly part drillsto prepare environmental emergencies thatcouldarise. line likewise stages regular drillsto familiarise personnel withthepossible agement SOPEP(Shipboard OilPollution Emergency Plan).The shipping plans are inplacethisregard inaccordance withitsenvironmental man- environment, both ashore andon-board itsships.Emergency control Baleària hasprotocols inplaceto prevent possible seriousharmto the andprotectionSafety SafePractices - Red Cross. Foundation andtheSpanish Engineering, theValenciaport involved Escribano Mechanical Maritime Salvage Agency, also a ship. The exercise, ledby the people falling overboard from of automaticallydetecting a pilottrialofsensorcapable Regina Balticashiptoconduct programme, providing its for Safer ShipsintheOceans) ing IncidentsandAccidents European PICASSO(Prevent alities. on board,among othereventu- ofexplosiveson thedetection hostile andactions boardings shore evacuation, combating of tocoverconducted ship-to- ship' drillswere procedures, covering and fires 'abandon as regularpractice procedures head office. Meanwhile, as well in2018conducted attheDenia of theMESandaliferaft. both throughthedeployment board theJaumeIIfast ferry, evaluate evacuation on times inanexercise tookpart ees to Baleària took part inthe Baleària tookpart A fire evacuation drill was Over eighthundredemploy Notable safety drills - - 65 Corporate SR and Sustainability Report 2018 66 Corporate SR and Sustainability Report 2018 of goods Carga Transportation of goods Carga Transportation 67 Corporate SR and Sustainability Report 2018 68 Corporate SR and Sustainability Report 2018 Algeciras-Tangier Med,Malaga-Melilla andAlmeria-Nador. main growth infreight transport atBaleàriain2018 was onthecrossings Alborán Searegion (from Malaga to Tangier Med,Ceuta andMelilla).The with goodstransport specialist MarítimaPeregar to operate routes inthe Meanwhile, Compañía MarítimaAlborán was founded as ajointventure Islands, where goodstraffic willbethe key toconsolidating theservice. ated jointlywithFred. OlsenExpress betweenHuelva andtheCanary In 2018 Baleàrialaunchednewfreight routes, above allthecrossing oper ofCrossings theStrait (79%) of Gibraltar (20%). carried. Freight isconcentrated above allintwo regions: theBalearicIsland to greater loyalty among customers andanincrease inthecargo volumes improvement, reliability offered, andpunctuality of theservices leading This isanincreasingly well-established segmentthanksto business the Goods transportation currently accountsfor halfof Baleària's turnover. Just-in-time goods mers are food, mailanddrink. The maingoodscarriedfor theleading custo- FREIGHT DISTRIBUTION Other Construction Drink Consolidation Food Balearic Routes 5,845,722 Cargo transport linear metres carried By goodstype (+3.5%) 28% 34% 27% 8% 3% Other Furniture Medication Automotive Textiles Food Consolidation Straits Routes 26% 36% 10% 13% 4% 4% 7% 415,000 ( equivalent linearmetres trucks Caribbean Baleària 0.06% -25% ) By zone Alborán 0.1% 0.03% Algeria -90% customers Weight outof total andvariation 5,115 - Gibraltar active Strait of 20% +3.6% (+2% Balearic Islands ) the maritimetransport. while BaleàriaCargo handles transport proving a key factor, the outsourcing ofland-based rotation ofsemi-trailers and providers, withthecontinuous withtransport partnership hasbeenachievedservice in Anagile,service. high-quality a just-in-time door-to-door todeliverwhich continues The group's logisticscompany, 79% -0.7% Baleària Cargo 256,000 embarkations (+6% ) web for portal cargo customers. will alsobeusedfor andaspecific cabinaccess, digital boarding card viaSMS, ships whichonsmart will involvebe performedinsubsequent phases a ticket office boarding tocollect cards. The work to tage isthatthey donot needto passthrough the simultaneously. For cargo customers, theadvan- modifications andconsultembarkation status online inreal timewithallcargo make bookings, Thistablets. allows theoperational teams to work Denia, comprising cargo management by meansof in theBalearicIslands,Barcelona, Valencia and first phase was implemented in 2018 attheports processes of thecargo team andoperations. The Innovation project to improve anddigitaliseall Digital cargomodel Key actions Europe. trade fair for Southern leading logistics sector the 20th editionof the the guest at participant the Valencia Region as at thestand upby set Fair heldinBarcelona, tional Logistics Trade SIL 2018, theInterna- Baleària was present at Logistics Trade Fair 2018 International Lean&Green. carbon footprint and projects, suchas environment-related ment alsoworked on The cargo depart See page75 Environmental sustainability - 69 Corporate SR and Sustainability Report 2018 70 Corporate SR and Sustainability Report 2018 A sustainable planet 71 Corporate SR and Sustainability Report 2018 72 Corporate SR and Sustainability Report 2018 compared withtheprevious year, althoughCO The sailedby nauticalmiles increased theBaleàriafleet by 13% in 2018 fortheEnvironmentCare consumption. consumption (thefuelusedby thefast ferries), butareduction infueloil The increase intheshipping line's ledto high-speed ariseindiesel service improved theefficiency ofits routes. by 0.67%. althoughBaleàriasailedagreat many Inshort, more it miles, sailed,amoremiles objective statistic whenevaluating efficiency, dropped andemissions).Meanwhile,miles theratio of tonnes emitted interms of 6.5% (whilein2017 thegrowth was around 15% interms of both nautical reduce emissions. efficient andso engines to fitthemwithmore Jaume IIIwas analysed, ferries Ramon Llull and engines onthefast Replacement of the fuel consumption. significant in reduction achievingcontinues, a derwater hullof ships coating ontheun- the useof thissilicone The commitmentto Eco-efficient sailing Eco-efficient Engine replacement fouling treatments Cutting-edge anti- 15ships (+4) 1,359,000 nautical miles sailed (+13%) Good practices sailing ineco-efficient Good be adjusted. consumption levels to tions to betaken and corresponding ac ship data,allowing the also monitors other ily ladentheshipis.It tions andhow heav on theweather condi- sumption depending more efficientcon- trim inorder to obtain current andoptimal toserves calculate the installed onboard This monitoring system Set ofeco-fastSet ferries Trim controlsystem See page32 35,645 2 emissionsrose by just - - travel See page31 See pages31 and32

Natural engine. gasauxiliary Natural gasretrofits. New natural gas-powered shipsbeing built -0,67% -0,67% Ratio tCO2/mile Commitment toLNG CO Ratio tCO Miles Total Fuel (t) (t) Diesel Fuel (t) (m Diesel CONSUMPTION 2 EMISSIONS 3 ) 2 /mile

1,359,435.00 377,452.03 569,815.16 69,768.58 192,363.12 121,195.75 0.419 .

+24.71% +24.71% +6.52% -0.84% -0.84% -0.67% +13% Baleària Eco-efficiency Index Baleària Eco-efficiency The IEBisdefinedasmass of CO GHG emissionsisknown asthe'IEB' (Index of Eco-efficiency atBaleària). nominator usedistheunitof transport activity (t·mile).This intensity of As inprevious years, to calculate greenhouse gas(GHG)intensity, thede- sailings androutessailings for itscustomers, above allwithhigh-speed ships. commitment to continuedcustomer increasing service, theoffering of This increase intheIEBismainlyresult of thecompany's ongoing slightly inboth compared cases withtheprevious year. tion ferries andtheolderconventional ferries, withthevalues increasing those in2017. Aseparate study islikewise conducted for thenewgenera- increase inboth cargo withtheIEBvalues andmiles, remaining similarto heavily thisindicator. penalises Inthecaseof ferries there was aslight cause thefast ferries sailed32% more butwithsimilarcargo, miles which The IEBrose by 24% compared withtheprevious year in2018, mainlybe- travelled. multipliedby sible to loadcarriedoneachleg, thenauticalmiles theactual being carriedismade, sothatthefigure willcorrespond asclosely aspos in order to calculate transportation activity anestimate of thetonnes As Baleària's passengers, shipscarry private vehicles andfreight vehicles, may beaffected by changes inshipand route. ity. This to rigorous analysisserves conduct comparisons,althoughthey 0.1550 (+1.49%) 0.2242 ferries New generation ferries kg CO Conventional ferries |0.1679 (1%) | 0.1351 (2%) 2 (+24.63%) emitted perunitof transportation activ 2 IEB /t*mile 1.0692 fast ferries (+72.55%) - - monitoring simpler. recording system soastomake nity was taken toimprove the ANDON System. The- opportu recordsinthe ship reporting just slightadaptationstothe the new regulationsinvolved sustainability, whichmeansthat and values ofenvironmental with thecompany's philosophy emissions since2013, inline rily beenmonitoring itsships' However, Baleàriahas volunta- System)llection regulations. global 2019 (Data IMODCS Co- very closelyrelatedwiththe re andcalculatetheiremissions, force, requiring shipstomeasu- rification) Regulation cameinto (Monitoring, Reporting andVe- In 2018 theEuropean MRV SHIPSURE. SHIPSURE. another similarsystem in2018: Dénia CiutatCreativa added used onanumberofships.The maintenance system, already with theAMOSscheduled construction willbeequipped the two shipsunder LNGsmart uled maintenancesystem, while ted withthePERAMAsched- The four eco-fast ferries arefit European andinternational Scheduled maintenance regulations systems - 73 Corporate SR and Sustainability Report 2018 74 Corporate SR and Sustainability Report 2018 Palma 77,400 kg ferry terminals. The aimin2009 inthisregard isto draw plansat upeco-efficiency other since 2015), inpartnership with Ecoembes andReciclamás. generated onboard. with Ecoembes. Source: IATA 2014). throughout thefleet were: The undertaken actions to approximate thevolume andtype of waste plastic waste in2019. The results of theanalysiswere asfollows: tion andrecycling processes, withtheaimof achieving 100%recycling of of waste generated, soasthereby to beableto improve selective collec In 2018 Baleàriaconducted anumber of initiatives to thetype ascertain anti-fouling paintonitsships( processes thatreduce environmental suchastheapplicationof impact, generating waste, less rather thanrecycling, by employing products and apreventiveBaleària applies cleanproduction strategy whichinvolves Reduce environmental impact lery ( lery Denia 157,037Denia kg SELECTIVE COLLECTION AND RECYCLED WASTE PREVENTIVE CLEAN PRODUCTION STRATEGY average waste kg 0.4 generated perpassenger (the figure for airtransportation is 1.43 kg; Separation andrecycling of waste inPalma andDenia(inthelatter case Waste triage onashipto thepercentage ascertain waste of eachtype Analysis of theselective waste of collection two ships,inpartnership Waste management plastic plastic VSee page75 VSee plastic 115,617 kg 40,680 kg ) andcleaning products. 40% cardboard cardboard cardboard See page72 32,760 kg 31,540 kg31,540 36% wood ), biodegradable disposable cut steel steel 8% 2,740 kg 5,360 kg aluminium aluminium aluminium 5% steel 2,440 kg 3,340kg - - 5% certification. and shipsincludedwithinthe terminals audits oftheferry periodic shipping lineconducts ISO 14001:2015 standards. The the new ISO9001:2015 and under ronment certification renewed itsquality andenvi - provides, during 2018 Baleària it and quality intheservices to continuousimprovement ofitscommitment As part 20,526.81 m 53.85 m 10,824.43 m collected were:collected treatment plants.The amounts authorised managers attheir sequently being by processed facilities, withthiswaste sub- waste fromitsshipsatonshore waste andoilywater andsolid Baleària periodicallydischarges duce 944.4 tofrecycled fueloil) Solid waste V): (MARPOL Ship bilge waterIV): (MARPOL I): Oily water (MARPOL Quality of products and Quality ofproducts Fleet waste generated 3 services 3 3 (repurposedtopro- More sustainableinitiatives tions ( international regula- tion of European and Thanks to theapplica- Carbon footprint cused onreduc platform fo- partnership European the largest Lean&Green, member of tered asanew Baleària regis Lean&Green Cargo customers. reports presented to of thecarbonfootprint digitalise thepreparation 69 ) Baleàriawas ableto straws, withrecyclable andsustainable packaging. bring in100%natural andbiodegradable drinking Baleària was furthermore thefirst shipping line to tures to save natural resources. vegetable starch andmanufactured atlow tempera- thermoplasticacid (PLA) isalsoused,madefrom sourced from controlled woodland isused.Polylactic Recycled andbiodegradable bleach-free cellulose card Islands). in theBalearicIslands,Melilla,Ceuta andtheCanary madefrom andcutlery biodegradableery materials on90%of itsships(those operating Following apilot schemetheprevious year, in2018 Baleària brought indisposable crock Otherenvironmental projects Explained onpage - -

Biodegradable disposable cutlery to improve thesegre- project was established board, ( the waste generated on Following ananalysisof Circular economy the field of sustainability. share goodpractice in allowing to companies with thesupplychain, ing emissionsassociated gation of waste See page74 allowing itto be usedas part ofpart a project. economy circular ), a environmental invest committed to ayearly Authority, Baleària with theValencia Port the agreement signed Under theterms of agreement good practice Environmental projects. related sustainability- presenting its Energy Fair, Solutions and Environmental 16th International took atthe part The shipping line Eco Fira inValencia

- practice atthecourt. of environmental good in theimplementation ment andcollaboration ECOPORT project. Valencia Port Authority's measures withinthe and papermanagement water andelectricity, fuel efficiency, sustainable ing specificeco- - containers. other disposable with biodegradable Online courses straws and 90% of implement drinking teaspoons, stirrers, tableware tablecloths, napkins, importance fleet Worker Glasses, Glasses, to the training ness asness aware to raise - - 75 Corporate SR and Sustainability Report 2018 76 Corporate SR and Sustainability Report 2018 commitment Social 77 Corporate SR and Sustainability Report 2018 78 Corporate SR and Sustainability Report 2018 the company to transfer 507 million euros to allitsstakeholders, both publicandprivate. and socialdevelopment of those where communities ithas a presence. The turnover generated in2018 allowed Mainly through itsnationalandinternational expansion, Baleàriamakes asignificantcontribution to theeconomic holders (employees, shareholders, investment publicauthorities, partnersandsuppliers of goodsandservices). The socialcashflow of Baleàriaisthe value generated by thecompany andhow itis distributed among its stake - +496,000€ Interest collected +3,120, Cash +131,609,000€ New debt issue +371,624,000€ Customers through saleof products andservices stakeholders Value distributed to Social cashflow Social 000€ inputs 506,849,000€ social cashflow (+31% ) -217,069,000€ Suppliers of goodsandservices -722,000€ Investment insocial programmes -4,500, Shareholders -6,653,000€ Financial institutions -41,893,000€ Public institutions -49,676,0 Employees -146,073,000€ Investment andinnovation partners -40,263,000€ Debt repayment outputs 000€ 00€ (including taxes, Social Security) 79 Corporate SR and Sustainability Report 2018 Baleària Foundation For a better society

The Baleària Foundation takes on board the social and The Foundation is guided by the Sustainable Develop- environmental commitments defined in the Baleària ment Goals, with the following operational strands in Code of Conduct and Business Ethics. All its activi- place: ties focus on improving the quality of life of citizens in the communities where the company operates, in Contribution to sustainable development of the collaboration with local or regional public and private regions where the company operates. bodies, and with the active participation of corporate Generation of sustainable tourism offers. volunteers. Conservation of the marine environment. Promotion of sustainability and strengthened com- mitment to combat climate change. 722,928€ 429 42 budget actions agreements (-7.8%) (-3%) (-26%) 112 327 10 32 in-house with third parties new renewals (-12%) (+1%) (-52%) (-11%)

Women's choir of the University of the Balearic Islands (Church of Our Lady of the Rosary in El Verger). Baleària Cultural with other venues. Theisations andcivicbodies. BaleàriaFoundation hasitsown centres, aswell aspartnershipagreements regions, involving artists, research organ andeducationalinstitutions, business publicauthorities, charities, - The Llonges delaCultura are venues to facilitate theexchange of cultural expressions among thedifferent Llonges delaCultura Baleària Port vision. a vibrant and moving personal story ofimmigration through the depicting Algerian artist, A show featuring thisrenowned by HachemiAmeur the shipping linelinkstogether. around theregionsthatactivity artists representing artistic the work of10 contemporary Collective exhibition featuring together. the regionsthatBaleàrialinks andartisticexchangeriches of ists, showcasing thecultural work andvisualart ofpoets An exhibition combining the

attendees activities 3,373 (Denia) 40 years, 40poets,XLartists

Naufrage enMéditerranèe, Baleàrics (+4.8%)

(-35%) 33 Key exhibitions Es Polvorí attendees 13,179 activities (Ibiza) (+32%) (-25%) 20 activities 139 (-28% - ) Opening of "40 years, 40poets, XLartists" attheTorre deMedinaceli delsDucs inElVerger. (El Verger, Alacant) Medinaceli* Torre Ducs attendees 1,800 activities 12 18,352 attendees own venues (+39%) venues activities Other

(-35%) 74 213 artists (Alicante) | | *Added in2018 | (Valencia) | | | Centre d'Art Taller d'Ivars, Benissa Casal deCultura (Mallorca) CanGelabert Espai Frumentaria (Formentera)* Sa Pantxa (Formentera) Obra Cultural Balear(Formentera) La Llotgeta, AuladeCultura delaCAM

81 Corporate SR and Sustainability Report 2018 82 Corporate SR and Sustainability Report 2018 links between two continents. The aimof isto thecompetition highlightmaritime Competition for schoolpupils inthetwo cities. primary City Council, organised the 2nd'MyFirst Ship' Drawing ment of Education andCulture of Ceuta andAlgeciras of Education, Culture the Regional andSport, Depart The BaleàriaFoundation, together withtheMinistry Straits Promotion ofmaritimetransport across the the Valencian musicalgroup Colla elFalçó. singer-songwriters BorjaPenalba andMire Vives, and Foundation helpedstage by concerts theValencian in Ibiza,Majorca, ElVerger andPego. InAlgeria,the School of Fine Part of Mostaganem, showed hiswork the Algerianpainter HachemiAmeur, Director of the music were staged inDenia,IbizaandMajorca, while ofAlgeria. InSpain,concerts MoorishAndalusian of theagreement withthis cultural associationfrom A numberof initiatives were undertaken asaresult Algerie Association CulturelleIbnBadjaMostaganem- MAIN CULTURAL PARTNERSHIPS AND SPONSORSHIPS Concert by theAssociation Culturelle IbnBadjaMostaganem-Algerie atBaleàriaPort. Participants: 210 - meetings inDenia. meetings results of theproject andthestaging of international online. The Foundation willhelpto showcase the with thedigitalskillsneededto publicservices access theaimofproject, whichisto provide olderpeople the seven members of theEuropean DigitalAccess ofpartner thecompany Tradigenia inDenia,oneof The BaleàriaFoundation signedupasanassociate European digitalskillsproject Ceuta Valencia region 42 Catalonia 63 5 with third parties 5 Algeria activities 243 cultural (-3% 3 Melilla ) 3 Algeciras 122 Balearic Islands and charitableinitiatives of theBaleàriaFoundation. company staff whoplay anactive andaltruistic role inthesocial,cultural Baleària hassince2009 hadacorporate volunteering group madeupof Charitable Baleària:corporate volunteering Key activities for theunderprivileged. upahairdressersset selling T-shirts to help association inDenia the Extiende Tu Mano A jointproject with Hairdressing for the 100 T-shirts sold underprivileged Sense Fronteres charity Spectacles for theVisió Spectacles collected eyesight. problems withtheir exclusion whohave dren atriskof social to beusedby chil- ping line's employees, provided by theship- teres charity spectacles the Visió SenseFron- The Foundation gave 300 pairsofspectacles in Denia. cia oldpeople's home needs of theSantaLlú- mobility to the meet people withreduced nated bedsadapted for The Foundation do- Donation ofPRM 10 adapted10 beds adapted beds goods. with humanitarian Baleària volunteers Valencia volunteers region Ceuta 143 24 4 Catalonia (-9 Infantita inMelilla. Hermanas delaDivina Blanca inTangier, and y HermanasdelaCruz Food Bank,Hermanos Algeciras, thePalma ian goodsto Cáritas donated humanitar The Foundation ) humanitarian goods with third parties 3 activities Donations of 2 Algeciras 65 social (+5 %) 1 Melilla activities 21 31 Balearic Islands (+4) - 83 Corporate SR and Sustainability Report 2018 84 Corporate SR and Sustainability Report 2018 promoting individualandcollective well-being. nutritionand healthywith theworld leisure, of sport, withtheaimof ent socialgroups andemployees attheshipping lineitself, are connected The addressingwith theworld of activities, both healthandsport. differ through partnerships, agreements, connected sponsorships andactivities This programme focuses onpromoting healthandsporting pursuits Healthy Baleària the Pilgrims' Way to Santiago inninestages. ing theoptionof inparticular walking of asection with thegoalof promoting healthy lifestyles, includ- free hiking for outings theshipping line's employees and thewidercommunity. This involved organising tives addressing both employees andtheirrelatives habits withinandbeyond thecompany, withinitia- health andwell-being, by encouraging healthy on promoting both physical andpsycho-social The BaleàriaFoundation launchedaplanfocused Key activity participants 390 Well-being andHealthPlan walks 12 - Foundation, Josep MariaCataluña. Vice-President of thePilota Valenciana Baleària President Adolfo Utor andthe level. regional attheprofessional sport for administering thistraditional ner of theorganisation responsible ping linebecameanewofficial part under theterms of whichthe ship- Pilota Valenciana Foundation, An agreement was signed withthe SPONSORSHIP SPORTS - project focused onposidonia seagrass inFormentera. tal educationcentre. There was alsoapartnership withIMEDEAina tonomous Government of Catalonia,andtheBIoEduca environmen- Protection Group), of theDepartment theEnvironment of theAu- project for someyears: andNature theGOB(BalearicOrnithology toadd theirnames theorganisations whohave beeninvolved inthe the Mediterranean, hasalso joinedtheprogramme. They therefore dedicated to theconservation and study of themarinebirdlife of is backed by theUniversity of Cadiz.The Pelagicus Association, Mammal Information, Research &Conservation), whose research braltar, thanksto anagreement withthe enterprise MMIRC (Marine other was marinespecies extended to anewarea, theStrait of Gi- The programme for thesporting andmonitoring ofand cetaceans Spotting andmarineanimals ofcetaceans EcoBaleària ENVIRONMENTAL PARTNERSHIPS 27 ronmental onland. activities board theships,andother envi- wildlife spotting expedition on students, comprising ascientific addressing school secondary ronmental educationproject Awareness-raising andenvi- Internal activities tripsintheStrait and16tripsintheBalearicIslands. students 599 (+42%) Expedicionària educational institutions 17 (+5) highlighting thistopic. a programme for schoolpupilslikewise century. The Foundation alsohasinplace ofimportance thesultanatrade inthe19th of thePort of Denia,itsevolution andthe the La Panseta shuttle, covering thehistory In 2018 aninformation stand was installed attheboarding pointof and headquarters of theshipping line)to thetown centre. Free solar-powered boatlinking BaleàriaPort (theDeniaferry terminal 19,161 trips (+9% ) 270,298 passengers (+8% ) 'La Panseta' students 727 (-24% Valencia region ) Catalunya 4 3 environmental with third parties activities 19 (+35%)

12 Illes Balears 85 Corporate SR and Sustainability Report 2018 86 Corporate SR and Sustainability Report 2018 13.3% Barcelona Local supplies Local 6,529 suppliers 13.6% Valencia Suppliers (+7.3%) 9% Cadiz Technical Inspector Technical service, The company's shipslinkingmost of theregional offices perform deliveries of materials requested from headquarters. This serves to reduce the CO maintenance, spare parts repair and suppliers 4.2% Other by zone 14.5% Madrid Local Local Fleet 80.9% Amounts upto1.000€ Acquisition of materials 24% Balearic Islands for barsandon-board Central Office(Denia) Hotel Director Evaluation andapproval local (-6.9% 21.4% Alicante stores New supplier periodo medio ) emissions thatwould result from other meansof transport. 46 de pago días (+1 ) PURCHASING DEPARTMENT Order request fromashiporregionaloffice Head of Regional Office Office materials and for Department others local. and13wentcategory down. approved suppliers. tration intheneutral zone, along withaslightincreasein non- maximum andminimumcategories, withthegreatest concen- In 2018 therewas inthenumberofsuppliers areduction approvals process. inthecaseofthosethatdonotpass issues any necessary giving toresolve themtheopportunity of itscodeconduct, application ofthecompany's existing standards andfulfilment Baleària evaluates itsnew suppliersinaccordancewiththe Algeciras Regional Office 37% ofnew suppliersare 37% Re-evaluation: 5went upa Fleet Purchase order Terre Comparison anddelivery Approved supplier New suppliers deadlines US Regional Office Category A(max.) Category Not approved C Category B Category Amounts above €1,000 Purchasing Committee Terre 54.6% 2

31.6% 5.9% 5.9% 8.5% 8.5% (+17.4% (+1.2% (-13% (-5% ) ) ) ) 87 Corporate SR and Sustainability Report 2018 88 Corporate SR and Sustainability Report 2018 Transport category. Responsible Tourism Awards inthe in theIntermundial Foundation's the FITURtrade fair asafinalist Baleària received recognition at Tourism Awards Foundation-FITUR Responsible Finalist inthe Intermundial vation strategy management. Club) for theexcellence of itsinno- CICV (Valencia Region Innovation Large Company from category the Baleària received thehonour inthe Award Large Company Innovation public vote. Chamber of Naval Engineers ina according to theAssociationand ofect 2017 undertaken inSpain, most notable shipbuilding proj- The Eco Aqua was chosen asthe 2017 Shipbuilding Award commitment to energy efficiency. of thecompany's leadership and collected thishonourinrecognition Baleària President Adolfo Utor the Información newspaper 2017 Award Importantes from Valencia. at its2018 Finance heldin Night, of BaleàriaPresident Adolfo Utor tribute to theprofessional career working forum Forinvest paid The net financialandbusiness for Adolfo Utor Forinvest 2018 CareerAward inthesector Benchmarks Awards - Forinvest Award Shipbuilding Award Importantes Award Strategic alliances included onthelist. only maritimetransport company reputation. The shipping lineisthe operating inSpainwiththebest and international companies Monitor) rankings of 150Spanish (Corporate Reputation Business for thefirst timeintheMerco In 2018 Baleàriawas included in Spain withbestCompanies reputation and satisfaction. The initiative influence on tourist experience with theaimof having apositive attourism destinations, services tended to improve thequality of isin- The SICTEDmethodology leisure vessels inthefuture. to handlethemooring of large inDeniahaveties thecapacity thattheBaleària certifies facili- the Valencia Tourism Agency ofthe Department Tourism and This jointrecognition issued by and ferry mooring attheport. System) covering cruise ship Destination Tourism Quality under SICTED(theIntegrated mitment to Tourism Quality received theSealof Com- The Baleàriapremises inDenia Acuerdos conorganizaciones SICTED Seal ofCommitmentSICTED Seal to Tourism Quality 2012. ofa signatory thisnetwork since Baleària Foundation hasalsobeen by theUnited Nations.The sustainability initiative, promoted the world's largest corporate the agreement in2011. This is having previously signedupto Global Compact Network, a memberof theSpanish Baleària hassince2017 been Network Spanish GlobalCompact and other contributions. qualifications, technical support satisfaction processes, staff management of customer tools to improve theinternal provides withthe companies environments. and psychologically healthy that helpto create physically and outreach for initiatives with theaimof acknowledgement 20 of theleading localcompanies the Valencia Region, comprising Association of Psychologists of initiative of theProfessional Baleària signedupto thishealth Network Business 'Sana+Mente Responsables' (AVE) Association) Oceanic Engineers) Levante) inManagementProgress (APD Quality System of Valencia) (CEDMA) Culture Valencian Association Business ANAVE (Spanish Shipping Line AINE (Association ofNaval and Associationfor Business Integrated Destination Tourism National Tourism Board EDEM Foundation Conexus Foundation Exceltur Valencia Tourism CodeofEthics CEV (EnterpriseConfederation Climate Community Bureau Veritas Naval Committee Federation Marina AltaBusiness ADEIT ChairofEnterprise Other entities onwhich Other entities Baleària isrepresented 89 Corporate SR and Sustainability Report 2018 90 Corporate SR and Sustainability Report 2018 by Pangea Officialand Forbes. Roadtrip programme, organised lencia, undertheSpainInnovation zon 2025. inVa New Opportunities - Participant attheround tableHori- Association. of theNatural Gasfor Mobility Mobility, atthe6thConvention Strategic Vision: Natural Gasin Participant attheround table ism Innovation Forum. at the4thHotUSA Explora Tour Passenger Transport Management inInfrastructureOpportunities and Participant attheround table transformation. sustainably andstreamline digital ing Tourism Forum: How to grow ism atthe9thExceltur Reshap- Keys to aNew Governance of Tour Speaker onthepaneldiscussion ofBaleària President Adolfo Utor, vocationLeadership Conferences andconventions - - Participant attheMediterranean of theValencia Region). sociation of Young Entrepreneurs , ofEmpresabium theAJE-CV (As solidation Forum ofValencia, Speaker atthe1st- EnterpriseCon pers). (PricewaterhouseCooand PwC - tion for Progress inManagement) Entrepreneurs), theAPD(Associa- by theAVE (Valencia Associationof Valencia Region 2022, organised the AnnualPaco Pons Seminar. Participant ataround tableat the CadizNaval MaritimeCluster. forum organised by CaixaBankand Contributor attheCoffee&Break Utor isaAcademic Director. Enterprise Culture,of whichMr University of Valencia's Chairof Entrepreneur' programme of the CanBean at seminars onthe'Who Opening contributor andspeaker - Congress inValencia. Engineering Maritimeindustry Opening speaker atthe57th Naval broadcaster CadenaSERinPalma. Corridor Forum organised by Better Environment. for aMore Competitive Industry and Shipping, attheseminarWorking Sea for thePromotionofShort ence oftheSpanishAssociation Speaker attheAnnualConfer Ceuta Court Authority. nar organised by Gasnamandthe Gas inMaritimeTransport semi- Speaker attheLiquefiedNatural eration of theValencia Region). and theCEV(Enterprise Confed- prise organised by ElEconomista Modelfora New Enter Energy Participant attheseminarTowards Nedgia BalearsForum. Speaker atthe2ndMenorca Engineers of Catalonia. seminar organised by theIndustrial Maritime, Rail andRoad Mobility uefied Natural Gas(LNG)in Contributor attheUseofLiq- Port of Valencia. GreenPort Convention atthe Speaker atthe14thInternational Gas for Mobility Association. 6th Convention oftheNatural Owners andShipping Lines atthe coming Barriers:Prospects for Ship Participant Over atthesession Fleet Director Guillermo Alomar, - - - Management) andKPMG. APD (Associationof Progress in the Company, organised by the onFunctionalImpacts Areasof seminar Keys toTransformation: Baleària was involved inthe Seminars. Techniquesand Emergency agement atthe2ndIntelligence logistics intelligence incrisisman- ataroundpart tablediscussionof tive for IbizaandFormentera, took Joan Serra, Regional Representa- Valencia. of Economics attheUniversity of Enterprise Forum of theFaculty at the17thEmployment and delivered aconference address ment Area, ConxaRomaguera, The Headof thePersonal Develop- gave anaddress. ment area, Francisco Carrillo, Head of theLegal andEmploy and SocialSecurity of Valencia. The torate of theWorks Inspectorate organised by theRegional Direc Maritime LabourConvention, Practical Training Days for the Baleària Port (Denia)hosted the address aboutsocialresponsibility. the University of Valencia, giving an the Chairof Enterprise Culture of an Entrepreneur?"organised by CanBe inthecoursepart "Who tor, JosepVicentMascarell,took The Innovation BaleàriaCSR Direc Others - - - Expansión newspaperinMajorca. Balearic Islands,organised by the the Industry andEconomy ofthe Fabric, attheforum Challenges in tion andEnterprise intheBusiness Incentives for Research, Innova- table discussionOverseas Trade, Baleària was involved intheround Gandia Technical University. plied torevenue management at table onnew ap- technologies enue Analyst, took inaround part Christian Tamarit, BaleàriaRev - 91 Corporate SR and Sustainability Report 2018 92 Corporate SR and Sustainability Report 2018 GRI Standards_ GlobalReporting Initiative (GRI) andSustainable Development Goals Indicators 102-32 102-31 102-30 102-29 102-28 102-27 102-26 102-25 102-24 102-23 102-22 102-21 102-20 102-19 102-18 4. Governance 102-17 102-16 3. Ethics andintegrity 102-15 102-14 2. Strategy 102-13 102-12 102-11 102-10 102-9 102-8 102-7 102-6 102-5 102-4 102-3 102-2 102-1 1. Profileoftheorganisation I. BASIC GENERAL CONTENT Function of thehighest governance bodyingenerating sustainability reports |Review andfinalapproval Evaluation environmental of economic, |Monthly andsocialissues Efficacy of riskmanagement |Theprocesses most senior bodyof governance addresses riskmanagement processes atmonthly meetings. Identification andmanagement environmental of economic, |Page andsocialimpacts 26 performed. Evaluation of theperformanceof thehighest governance body |Noevaluation of theperformance of themost senior bodyof governance is develop andenhance itsknowledge. Collective knowledge of thehighest governance body |The most senior bodyof governance hasinplace specifictraining actions allowing it to of approving themission, vision andvalues, anddeveloping thestrategies, policiesandobjectives connected withthese matters. Function of thehighest governance of bodyintheselection aims,values andstrategies |The most senior bodyof governance hasthefunction by thiscommittee. Code of Conduct. The contracting of personnel orsuppliers dependent onshareholders orgoverning bodiesisstrictly forbidden, unless authorised Conflicts of interest |The bodyresponsible for managingconflicts of interest isthe Code of Conduct Committee, such matters being set outinthe independence andexperience environmental ineconomic, andsocial matters. re-elected by theGeneral Meeting ononeormore occasions, andfor periSDGof thesamemaximum duration. Consideration isgiven to diversity, Liability Companies Act andtheprovisions indevelopment thereof. ARTICLE 27. Directors shallbeappointed for aterm of five years. They maybe the membersof saidBoard shallnecessarily beperformed by meansof theproportional system governed 137 by Article of thePublicLimited of theGeneral Shareholders' Meeting. Shareholder status isnot required inorder to beelected asamemberof theBoard. The appointment of required to make uptheBoard atany given time,inallcases withintheminimumandmaximumreferred to istheresponsibility inthisarticle, directors. The Board of Directors shallbemadeupof atleast 3andnomore than13 members. Determination of thespecificnumber of directors ofAppointment andselection thehighest governance 26 Company body |Art. of Articles Association Composition of theBoard andnumber of President of thehighest governance body |Page 26 Composition of thehighest governance bodyanditscommittees | Page 26| SDG5 Consultation of stakeholders regarding environmental economic, |Pages andsocialissues 22,23 Executive-level responsibility for environmental economic, |Page andsocialissues 26 Delegation of authority |Page 26 Governance structure |Pages 26, 27 Mechanisms for concerns |More andethical consultancy information inhttps://issuu.com/balearia/docs/codi_conducta_v2015_espanol Values, standards principles, andbehavioural |Page guidelines 12 | Page risksandopportunities 72 Main impacts, Declaration by seniorexecutives | Pages 6, 7 Affiliation toassociations |Page 89 External initiatives |Page 89 Principle orfocus of foresight |Pages 38, 39 Changes intheorganisation andsupplychain |Pages 12, 26, 36, 37 Supply chain |Page 86 Information onemployees andnewworkers |Page 50 |SDG8 Size of theorganisation |Page 12 Markets served |Page 12 Ownership andlegalform |BaleàriaEurolíneas MarítimasS.A. Location of operations |Pages 12, 13 Location of (Alicante) headquarters |Denia brands,Activities, |Page products 12 andservices Name of theorganisation |Baleària 205-02 205-01 205. Anti-corruption 204-01 204. Acquisitionpractices 203-02 203-01 203. economicimpacts Indirect 202-02 202-01 202. Market presence 201-04 201-03 201-02 201-01 Economic201. performance 102-56 102-55 102-54 102-53 102-52 102-51 102-50 102-49 102-48 102-47 102-46 102-45 Report generation practices 6. 102-44 102-43 102-42 102-41 102-40 Participationofstakeholder5. groups 102-39 102-38 102-37 102-36 102-35 102-34 102-33 ECONOMIC II. THEMATIC CONTENT Communication andtraining and procedures inanti-corruption policies |Notraining was given inthisregard. conductunlawful to report theirgrievances. Operations evaluated for corruption-related risks |The company hasanemailaddress inplace allowing any employee or supplier detecting any Proportion of expenditure atlocalsuppliers |Information not available. Amethod allowing thisto beincludedinfuture reports isbeingexamined . Significant indirect |Information economic impacts not available. Investment ininfrastructure |Page 20 andsupported services | SDG5, SDG9, SDG11 regional offices. | SDG8 ponsibilities andmembershipof thecompany's senior executive committees. Significant operations are those performed ateach of theBaleària Proportion of seniorexecutives Asenior hired executive from thelocalcommunity |71% is understood asany figure withmanagement res Ratio of thestandard by salary genderagainst initialcategory |Page minimumlocalsalary 50 intended for aproject to fit replacement LNGenginesonfive ships ofitsfleet. Financial received support from thegovernment |Baleàriareceived an11-million euro subsidy from theEuropean Union, dividedover four years, Obligations of thedefinedbenefitsschemeand otherretirement |The schemes company hasnobenefits plan. Financial derived implicationsandother risksandopportunities from climate change |Page 72 Direct economicvalue generated anddistributed |Page 20 |SDG5, SDG9 External verification |Not performed GRI tableof contents |Pages 92-96 November 2017-31 October 2018). Allother datarefer to thecalendaryear. option of theGRIStandards This report reflects economic and social performance (with reference to the workforce) inthe 2018 financial (1 year Statement onpreparation of thereport inaccordance withtheGRIstandards |This reportwas prepared inaccordance withtheComprehensive Point of for contact questions aboutthereport |[email protected] Report preparation cycle |Yearly Date of last report |2017 Reporting period |2018 Changes inthepreparation of reports |Stated ineachaspect (where applicable). Restatement of information |2017 international turnover: 2017 75M. international miles:232,561. 2017 Family Plan4beneficiaries. List of material |Page issues 22 principles of precision, balance, clarity, comparability, reliability andtimeliness were followed. by theGRI(inclusionof stakeholders, context of sustainability, materiality andcompleteness). Inorder to guarantee itsquality, meanwhile, the Definition of thecontent of the andcoveragereports of theissue |Definition of the content of this report was based ontheprinciples set out coveredEntities by theconsolidated financial statements |The consolidated accounts are not audited. Key andconcernsmentioned |Pages issues 22,23 Focus for theinvolvement of stakeholders |Page 23 Identification andselection of stakeholders |Page 23 Collective bargaining agreements |100% List of stakeholders |Page 23 Percentage total annualcompensationincrease ratio |Information not available. Total annualcompensationratio |Information not available. Involvement of stakeholders inremuneration |Information not available. Process to determineremuneration |Analysisof market positioning by external company. Remuneration |Information policies not available. addressed immediately. Nature andtotal numberof criticalconcerns |Information not available. If there isany criticalconcern, itisconveyed directly to management and yees, for theopportunity development inprofessional andpersonal terms. of society, by offering itscustomers ahigh-quality, environmentally friendly service, offering itsshareholders appropriate returns, anditsemplo Communication of criticalconcerns |The concerns of thecompany are expressed initsmission. To respond to themaritimetransportation needs - - 93 Corporate SR and Sustainability Report 2018 94 Corporate SR and Sustainability Report 2018 306-02 306-01 306. Effluent and waste 305-07 305-06 305-05 305-04 305-03 305-02 305-01 305. Emissions 304-04 304-03 304-02 304-01 304. Biodiversity 303-03 303-02 303-01 303. Water 302-05 302-04 302-03 302-02 302-01 302. Energy 301-03 301-02 301-01 301. Materials 206-01 206. desleal Competencia 205-03 308. Environmental evaluation ofsuppliers 307-01 307. Environmental fulfilment 306-05 306-04 306-03 ENVIRONMENTAL Waste by type |Page andelimination method 74 | of thetowns where they are located. Further information onpage74 | The service. rent waste viatheMARPOL ports water discharged by theferry stations isderived from humanuse andenters thedrainage network Discharge of water inaccordance withquality anddestination |Waste water isgenerated by thecompany's shipsandhandedover atthediffe- and other compounds willbeanalysed for thefuelsused by Baleàriato devise anindex for these emissions. Óxidos de nitrógeno (NO term. Emissions of ozone-depleting substances (SDG) |Information unavailable; not measured. There are noplansto enablecalculationintheshort Reduction of GHG emissions |Pages 73, 74 Intensity of GHG emissions |Pages 73, 74 |SDG14 | SDG14 Other indirect GHGemissions(3) |Information not available. These are not measured, norare there plansto term. doso intheshort Indirect GHGemissionsthrough energy generation (Scope2) |Page 31 |SDG12, SDG14 Direct GHGemissions(Scope1) |Pages 73, 74 |SDG12, SDG14 7 speciesatriskof extinction, 17 vulnerable species, 1near-threatened speciesand33 speciesof lower level concern. ontheIUCNRedSpecies List andnationalconservation lists whose habitatsare withinareas affected by operations |7speciesincriticaldanger, Fons", "Neteja Intramurs", "SaPenya", "Eivissa Capital", "Clean Up theMed2018". Habitats protected orrestored |Collaboration withVolunteers WithoutBorders onvarious projects: "Clean Up theWorld", "XVI Sant Antoni Net a generation of SOx |SDG6, andparticles. SDG14 years. These includetheswitch to theuse of LNGasafuelonboard, thereby reducing emissions of CO2 andNOx, andpractically eliminatingthe natural resources (fossil fuelsandwater). Inorder to reduce these impacts, thecompany hasbeenimplementing various initiatives over recent activities are: emission of combustion gases from engines,generation of solid urbanwaste, generation of hazardous waste andconsumption of onbiodiversity products andservices Significant impacts of activities, |The significant impacts identified bythe Company in connection withits | SDG6, SDG14 ted areas |The organisation doesnot have any operational sites located withinoradjacent to protected areas orzones of highbiodiversity value. Operational sites owned, leasedormanaged, located withinoradjacentto protected areas orzones of highbiodiversity value outsideprotec Water recycled andreused |The organisation doesnot use recycled water andhasnoresources inplace for water recycling. |SDG6, SDG12 Water sources significantlyaffected by water extraction |The sources used (municipalmains)are not affected. |SDG6 tes. The organisation consumed 11,820.97 m3. |SDG6 Water extraction by source |The company obtains thewater thatituses from themunicipalmainssupply inthevarious locationswhere itopera- Reduction of energy requirements |Pages of products 73, andservices 74 Reduction inenergy consumption |Pages 73, 74| SDG12 Energy intensity |Pages 73, 74 |SDG12 Energy consumptionoutsidetheorganisation |Information not available. Energy consumptionwithintheorganisation |Pages 32, |SDG12 73 Reused products andpackaging materials |Page 74 |SDG12 Recycled inputsused |Page 74 |SDG12 Materials employed by weight orvolume |Page 74 |SDG9, SDG12 Legal connected withunfair actions monopolistic competition, andanti-trust practices |Noproceedings inprogress inthisregard. any conduct unlawful to report theirgrievances. Confirmed cases of corruptionandmeasures taken |The company hasanemailaddress inplace allowing any employee orsupplier detecting Breach of environmental regulations andlegislation|Nonotices received of proceedings inthis regard. generated by itsshipsisdelivered to on-landtreatment facilities. More information inpage74. ofBodies water affected by discharges of water and/or run-off |Not applicable.Baleàriahasnodischarges of water orrun-off. The waste water interact withthistypeof freight atany time. carried by thecompany isembarked asfreight andtransported onself-propelled vehicles operated by waste managers.The company doesnot Transportation of hazardous waste |Baleàriaisnot involved inthetransportation of hazardous waste. Any hazardous waste thatmight be type of incident by Authorities, theshipsandPort withnosuch incident beingregistered in2018. | Significant spillages |There were nosignificant spillages over the course of the year. Measurement isperformed by means of notifications ofthis X ), óxidos deazufre (SO X ) y otras significativas emisiones alaire SDG 6, SDG SDG 12, SDG14 SDG 6, SDG SDG 12, SDG14 | Not currently measured. Emission factors for NOx, SOx SDG 6, SDG SDG 12, SDG14 - 405-01 405. Diversity and equality ofopportunity 404-03 404-02 404-01 404. Training andeducation 403-04 403-03 403-02 403-01 Healthandsafety atwork 403. 402-01 402. Worker-company relations 401-03 401-02 401-01 Employment 401. 103-3 103-2 103-1 tión de ges Enfoque Work-life balance(materialissue) 308-02 308-01 413-01 Local communities 413. 412-03 412-02 412-01 412. Evaluation ofhumanrights 411-01 411. Rightsofindigenouspeoples 410-01 410. Security practices 409-01 409. Forced orbondedlabour 408-01 408. Childlabour 407-01 407. Freedom ofassociationandcollective bargaining 406-01 406. Non-discrimination 405-02 SOCIALS - Diversity of governance andemployees bodies |Page 42 | Percentage of employees receiving regular performance andprofessional development evaluation |Page 58| Programmes to improve employee skillsandtransition programmes support |Pages 46, 48| Average hours of training ayear peremployee |Pages 44, 45 | at 100% of the HealthandSafety Committee meetings. Health andsafety addressed issues informal agreements withtrade unions |The formal agreements withtrade unionscover healthandsafety Workers connected withtheiractivity |None. withhighincidenceorriskof illnesses accidents |Sprains, falls, burns,muscle injuries.Nocases of professional illness. Types of accidentandfrequency rates of accidents,professional days lost, andnumberof illnesses, absences fatalities through occupational Representation of workers onformal worker-company healthandsafety committees |100% theworkers are represented. Minimum notice periSDGregarding operational changes |1month Parental leave |Page 48| ment andspecialterms for medicalinsurance |SDG8 their working hours.Allemployees receive incapacityanddisabilitycover andparental leave. Life insurance inaccordance withcollective agree- Benefits for full-timeemployees not given to part-time or temporary employees |The social benefits applyequally to all workers, irrespective of ofNew hirings employees andstaff turnover |Pages 42, 50 | compared inorder to evaluate theprofitability andeffectiveness ofthismatter. current commitments,objectives andgoals,resources, policies, programme andinitiatives. The absenceindex, among others, willtherefore be pose setting outmeasures (pending approval), inadditionto someothers thathave already beenimplemented, anddescribing thecompany's a balance, withtheorganisation playing afundamentalrole through itsdirect Awork-life actions. balanceplanhasbeendrawn upfor thispur Work-life for balanceisanissueof importance particular employees, whose wishisthatthecompany shouldoffer measures to achieve such stored close to others because of thedangerof explosion, corrosion ortoxic gases. terminated. been not has them with In 2018 warehouse theDénia underwent areorganisation relationship of chemicalproducts of withthesupport Asepeyo to identify those thatcannot be The improvements. offer to ongoing is Work system. environmental tified Negative environmental onthesupplychain,andmeasures impacts taken |82.4% of thesuppliers evaluated donot have acer apply environmental criteria asrequired by thecompany (information environmental oncertified management systems). New suppliers thathave passedevaluation filters andselection inaccordance withenvironmental criteria |16.6% of thesuppliers evaluated Operations involving thelocalcommunity, anddevelopment assessments impact programmes |Pages 80, 83 Significant investment contracts and agreements orsubject to humanrights withhumanrightsclauses evaluation |Noneperformed. Employee training orprocedures inhumanrights policies |Noneperformed. Implementation isplannedin2019. Operations to reviews subject humanrightsimpact orevaluations |Noneperformed. issue. Casos delos deviolaciones derechos de los pueblos indígenas |Not applicable.Baleàriahasnooperations ingeographical areas affected by this Security personnel trained inhumanrightsprocedures |Nopersonnel were trained inthisregard . puedan tener este tipodecasos. Los países dondecompra productos pertenecen aEuropa, EE.UU yAustralia. Operations andsuppliers withsignificant risk of cases forced orbondedlabour |Baleàrianomantiene relaciones comerciales con países que that could beinvolved insuch cases. The countries where products are purchased correspond to Europe, theUSA and Australia. Operations andsuppliers withasignificantrisk of cases of childlabour |Baleàriadoesnot maintain acommercial relationship withany countries tion of collective bargaining. Nocentres orsuppliers have beenidentified inthis regard. Operations andsuppliers withasignificantrisk of cases of childlabour |The company theright supports of freedom of association andrecogni - ofCases discriminationandcorrective undertaken actions |Noneidentified. | Ratio andremuneration of basicsalary of women compared withmen |Page 50 | SDG 5, SDG 8 SDG 5, SDG 5, SDG 5, SDG 8 SDG 8 SDG 8 SDG 5 SDG 5, SDG 8, SDG10 SDG 5, SDG 8 SDG 5, SDG 8 - - 95 Corporate SR and Sustainability Report 2018 96 Corporate SR and Sustainability Report 2018 419-01 419. Socio-economicfulfilment 418-01 418. 417-03 417-02 417-01 417. Marketing and labelling 416-02 416-01 103-3 103-2 103-1 tión de ges Enfoque 416. Customer healthandsafety (materialissue) 415-01 Publicpolicies 415. 414-02 414-01 414. Socialevaluation ofsuppliers 413-02 Customer privacy - Breach of laws andregulations inthesocial andeconomicspheres |Noneintheeconomic sphere. Inthesocial sphere these are insignificant. Fundamental grievances regarding violationsof customer privacy andloss of customer data |Nonereceived. ofCases breach connected withmarketing communications |Nonereceived. ofCases breach connected withinformation andlabelling of products notices |Nonereceived. when thecrossing begins. cuation available onboard theshipthey are sailingon,andthey are informed how to use these intheevent of needby meansof avideoshown measures established for embarkation onitsships.Passengers are also provided withinformation cards onboard asto thevarious meansof eva- Requirements for information andlabelling |Baleàriauses of itswebsite products andservices to inform customers asto control andsafety ofCases breaches regarding onhealthandsafety impacts categories |Nonereceived. intheproduct andservice ferry terminals. 100%. tes allrelevant aspects concerning occupational risksinvolved intheactivities required to perform both itsservices, onboard theshipsandat Evaluation of onhealthandsafety impacts categories |Inaccordance intheproduct orservice withthelegislationinforce, thecompany evalua- once peryear by theauthorityinorder to guarantee compliance. rements of theISMCode. This system iscontinuously reviewed by thecompany by conducting internal inspections andaudits,isalso audited ships, alongwithcompliance withthelawsandlegalregulations inforce atthenationalandinternational levels, thereby complying withtherequi- commitment to theimplementation of policiesto eliminate and/or minimise risksto personal health,damageto theenvironment, equipment and Theon thisaspect. Management System issupported by thecompany's maritimesafety andenvironmental protection policy, establishing aclear tem covers itsentire andthe fleet, company hasaDPA inplace for thispurpose, andanarea dedicated to compliance withall requirements based Maritime safety isanaspect of overriding for importance Baleària,withadirect impact itprovides. ontheservices The Safety Management Sys Contribution and/or to politicalparties representatives |Baleàriamadenocontribution inthisregard. althoughtheseimpact, are not significant. The relationship hasnot been terminated withany of them.| Negative onthesupplychainandmeasures socialimpacts taken |38.6% of thesuppliers evaluated could have some typeof negative social apply thecriteria includedwithintheBaleàriaCode of Conduct andEthics.| required by thecompany (voluntary certification of theiroccupational riskprevention system 18001/45001 (OHSAS or other)) andunderstand and New suppliers passing through filters selection inaccordance withsocialcriteria |61.4% of thesuppliers evaluated appliedthesocial criteria centres. impacts onlocalcommunities are those connected withthenoise generated by theships' engineswhenthey are atthedifferent inport regional Operations withsignificant real orpotential negative |Those onlocalcommunities impacts company activities thatcould generate negative SDG 5 SDG 5 - CREDITS

Published by Baleària - March 2019

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