ACCIONA ENERGY Excellent results in sales to customers and power generation revenues

ACCIONA Windpower and international business contributed to growth of 23.6% in turnover and 13.8% in EBITDA.

Strong business performance by ACCIONA 102 million more (+26.8%). International 897 MILLION IN EBITDA Windpower coupled with the turnkey turnover expanded due to the addition of The Energy Division achieved 897 million construction of plants for customers new capacity in 2015 and to the positive in EBITDA, 109 million (13.8%) more by ACCIONA Energy and good power exchange rate effect, particularly because than in 2014. generation, particularly outside of Spain, of the dollar's appreciation. contributed to excellent results by Power generation contributed 848 ACCIONA's Energy division in 2015. ACCIONA Windpower (AWP) and other million, 94.5% of the total, an increase businesses together provided 1,390 of 23 million. Spain contributed 489 2,719 MILLION IN TURNOVER million in turnover (51% of the total), million (6.7% less), while other countries Turnover amounted to 2,719 million euros, an increase of 430 million (44.8%) with contributed 359 million, a 19.5% increase 519 million more than in 2014, i.e. an respect to 2014. AWP contributed 950 year-on-year. increase of 23.6%. million under this heading, 245 million more than in 2014 (+34.7%). ACCIONA Power generation provided 49% of Energy (AE) also made a notable turnover: 1,329 million euros. Turnover in contribution due to EPC contracts that Spain under this heading amounted to 845 were executed during the year. million, 13 million less than in 2014, while other countries contributed 484 million,

ACCIONA Energy — key financials (millions of euros)

Turnover EBITDA EBT

2,719 897 198 788 2,200

86 +23.6% +13.8% +129.5%

2014 2015 2014 2015 2014 2015 ACCIONA Annual Report 2015 21

The ACCIONA Windpower business, The company's total output, 20,875 The agreement between ACCIONA and development, construction and others GWh, declined slightly (-2.7%) compared Nordex is based on two transactions, contributed 49 million euros to EBITDA, with 2014, mainly due to the lower whereby Nordex acquires ACCIONA against 36 million euros in 2014. In hydroelectric load factor in Spain. Windpower for 785 million euros particular, AWP achieved 84 million euros Consolidated output amounted to and ACCIONA becomes the resulting in EBITDA, an increase of 46 million, while 17,202 GWh. company's largest shareholder with a development and construction achieved 29.9% stake. 9 million against negative EBITDA of 28 FOR CUSTOMERS million euros in 2014. Consolidation and During the year, ACCIONA Energy was other adjustments reduced this business's actively involved with EPC contracts to numbers by 44 million. install or commission 403.5 MW of wind capacity and 7.2 MWp of photovoltaic ACCIONA Energy contributed 76% of the capacity for customers. ACCIONA Group's EBITDA. ACCIONA Windpower significantly EBT amounted to 198 million euros, increased its activity by installing close 112 million euros more than in 2014 (an to 1,200 MW in the field, commissioning increase of 129.5%). 1,320 MW, and signing new orders for 969 MW. By year-end, the company had INVESTMENTS accumulated 7,170 MW of sales. The division's net ordinary capital expenditure amounted to 130 million AWP-NORDEX INTEGRATION euros, 53.9% less than in 2014. On 1 October, it was announced that ACCIONA Windpower and Nordex, a Capital expenditure is expected to more German wind turbine manufacturer, are to than triple in 2016 due to the construction join forces to create a world leader in the of new wind and photovoltaic facilities. wind industry. During the year, capex will be tailored to business performance so as to ensure a solid balance sheet and a sound debt/ ACCIONA Energy's EBITDA ratio at Group level. EBT in 2015 CAPACITY AND OUTPUT amounted to In 2015, ACCIONA installed 128 MW in three wind farms and attained 8,619 MW 198 million euros, of total installed capacity (7,055 MW in an increase of 129% consolidated terms). year-on-year 22 ACCIONA Energy

ACCIONA-OWNED FACILITIES

8,619 MW OF RENEWABLE CAPACITY OVER 83% WIND Total installed capacity ACCIONA Energy installed 127.5 MW A total of 69% of accumulated capacity at 2015-year-end of renewable capacity in the year: 93 owned by ACCIONA Energy at year-end, MW in the Gouda 138 MW wind farm in i.e. 5,950 MW, was located in Spain and Other countries Spain South Africa, which was commissioned 31% in another 14 countries, including 2,669 MW 5,950 MW (31%) (69%) in 2015; 30 MW in Poniec II in Poland, notably the US (8%) and Mexico (6.5%). the Company's third wind farm in that country; and 4.5 MW at the Monreal wind Wind farms account for 83.7% of that farm in Spain. capacity and hydroelectric plants for 10.3%. Solar thermal plants account for In contrast, ACCIONA Energy discontinued 3.6%, photovoltaic for 1.7%, and biomass its cogeneration business, which was for 0.7%. marginal (9 MW), and retired a 2 MW machine in a wind farm in Australia. Total: 8,619 MW As a result, capacity increased by 116.5 MW at year-end to 8,619 MW total accumulated Company-owned capacity, comprising five technologies located in 15 countries.

In consolidated terms (i.e. eliminating assets in which the Company owns 50% or less and does not have control), the Company had 7,055 MW of renewable capacity, and another 697 MW that is Accumulated installed capacity at 2015 year-end, by technology equity-accounted. (MW)

Technology Total Consolidated Net In net terms, i.e. counting ACCIONA Energy's actual stake in the companies Wind 7,212 5,695 5,541 that own the power generation assets, the Hydroelectric 888 888 888 Company had 6,806 MW of capacity. That Biomass 61 61 59 figure is net of KKR's 33.3% stake in most Solar thermal 314 314 263 of the international assets, and of local Photovoltaic 143 97 55 partner stakes. TOTAL GENERAL 8,619 7,055 6,806 ACCIONA Annual Report 2015 23

ACCIONA Energy footprint worldwide Total data in MW as of 31.12.2015 Spain 5,950 Wind 4,747 Hydroelectric 888 Solar thermal 250 Biomass 61 Photovoltaic 3 Poland 101 Canada 181 Hungary 24 USA 692 Portugal 165 Croatia 30 Wind 628 Wind 119 Greece 48 Solar thermal 64 Photovoltaic 46 Italy 156

Mexico 556

Costa Rica 50 India 86

Chile 45 South Africa 232 Australia 303 Wind 138 Photovoltaic 94

Company-owned MW 8,619 Company-owned facilities * Wind, unless indicated otherwise

SLIGHT DECLINE IN PRODUCTION BETTER PERFORMANCE OUTSIDE The Company's electricity output declined SPAIN Lower slightly in 2015 by 2.7% to 20,875 GWh, or In contrast, facilities in other countries 2.1% in consolidated terms to 17,202 GWh. generated 4.8% more than the previous output in year, i.e. a total of 7,680 GWh, due 2015 was due The decline in total production (575 principally to the incorporation of new GWh) was due to lower hydroelectric production facilities for the full year—wind primarily to generation as the plants in Spain generated farms in Costa Rica, Chile and Poland, and the sharp decline 736 GWh less than in 2014 as a result of a photovoltaic plant in South Africa—and lower rainfall during the year. In contrast, the contribution of a wind farm in South in output by photovoltaic output increase notably (by Africa for part of the year. hydroelectric plants, 194 GWh). Wind output was stable. Production increased in Mexico and Australia, 25% less The facilities in Spain generated 13,195 but declined in the USA (-10.8%), Canada than the GWh, compared with 14,119 GWh the (-7.5%), other European countries and India. previous year, i.e. a decline of almost 1,000 previous year GWh attributable to the lower contribution Spain accounted for 63.2% of total production by hydroelectric (-25%) and wind (-2.2%). —2.6 points less than the previous year; Mexico accounted for 10.8% and the US for 9.7%, followed by Australia (4.6%), Canada (2.3%) and Portugal (1.8%).

South Africa and Costa Rica ranked seventh and eighth (the latter despite having only one operational installation). 24 ACCIONA Energy

Wind power accounted for 83.4% of ACCIONA's

ACCIONA Energy output power output,

Total (GWh) Consolidated (GWh) followed by

21,450 hydroelectric 20,875 17,572 17,202 (10.5%), solar thermal (2.6%), biomass (2%) and photovoltaic (1.5%) -2.7% -2.1%

2014 2015 2014 2015

Renewable output by country 2015 output, by country (GWh) (% of total output) Spain 63.2% Countries Total Consolidated Net Mexico 10.8% Spain 13,195 10,262 11,589 USA 9.7% Mexico 2,255 2,255 1,465 Australia 4.6% USA 2,032 1,795 1,210 Canada 2.3% Australia 959 792 584 Portugal 1.8% South Africa 1.6% Canada 477 283 189 Costa Rica 1.5% Portugal 379 286 217 Italy 1% South Africa 326 326 110 India 1% Costa Rica 303 303 197 * Includes output in Poland, Poland 0.9% Costa Rica, Greece, Croatia, Italy 218 218 146 Chile, Hungary and South Africa. Other countries* 1.6% India 209 209 139 Poland 185 185 123 In terms of technology, wind accounted for Chile 111 111 74 83.4% of ACCIONA's power generation (2 Greece 104 104 75 points more), and hydroelectric for 10.5% (3.2 points less). They were followed, Croatia 74 74 49 at a distance, by solar thermal (2.5% of Hungary 48 0 24 output), biomass (1.9%) and photovoltaic TOTAL GENERAL 20,875 17,202 16,191 (1.5%). ACCIONA Annual Report 2015 25

Output, by technology 2015 output, by technology (GWh) (% of total output)

Technology Total Consolidated Net Wind 83.4% Wind 17,421 13,841 13,032 Hydroelectric 10.5% Hydroelectric 2,197 2,197 2,197 Solar thermal 2.6% Biomass 408 408 391 Biomass 2% Solar thermal 542 542 455 Photovoltaic 1.5% Photovoltaic 307 214 115 TOTAL GENERAL 20,875 17,202 16,191

5% OF ELECTRICITY DEMAND IN 15.7 MILLION TONS

SPAIN OF CO2 AVOIDED Power generation from ACCIONA Considering the emission factor in all the Energy-owned facilities in Spain (13,195 countries where ACCIONA generated GWh) accounted for 5% of total domestic electricity in 2015—which varies as a demand (163,094 GWh), according to function of each country's energy mix— REE's Preliminary 2015 Report on the the company avoided 15.7 million tons of

Spanish Electricity System. CO2 emissions.

In terms of net power generation in Spain That figure, which was slightly lower

(268,057 GWh), ACCIONA's share of than in 2014 because of lower renewable CO2 emissions avoided production was 4.9%. output, is the equivalent, in terms of the by power production impact on the atmosphere, of 785 million (million tons) Total wind output by the facilities in which trees performing photosynthesis. ACCIONA has a stake in Spain (10,153 GWh) Total (GWh) accounted for 21% of total domestic wind Combining ACCIONA's electricity production 16.1 15.7 energy production (48,380 GWh). and that of ACCIONA Windpower turbines sold to third parties, a total of 17.2 million

The Company's solar thermal plants tons of CO2 were avoided. produced 433 GWh, i.e. 8.4% of Spain's total, and its biomass plants generated 408 GWh, i.e. 8.2% of Spain's total biomass-fired output. -2.5%

2014 2015 26 ACCIONA Energy

Wind

TWO NEW FACILITIES STABLE OUTPUT NEW PROJECTS ACCIONA Energy commissioned two Wind energy production was stable at At year-end, ACCIONA was building two company-owned wind farms in 2015. 17,421 GWh, a 0.3% (61 GWh) decline company-owned wind farms totalling 171 with respect to 2014. MW using AW 3 MW turbines. The first is the 138 MW Gouda farm in Western Cape, South Africa, of which 93 MW Wind farms in Spain produced 10,153 The first is the 93 MW San Roman wind were installed in 2015 (the rest in 2014). GWh (down 2.2%) and those in other farm in Texas, which will be operational countries produced 7,268 GWh (up 2.3%). in late 2016. This project represents a In Poland, ACCIONA installed and resumption of investments in the US. commissioned the 30 MW Poniec II wind Wind output in Spain accounted for 58.3% farm, its third in that country, where it has of the total. Mexico registered a 12.9% In the state of Karnataka, India, the a total of 101 MW of installed capacity. increase year-on-year, while output in the Company is building the 78 MW Bannur US shrank by a notable 11%. wind farm, which will begin commercial Both farms were built with ACCIONA operations in the first quarter of 2017. Windpower 3 MW wind turbines. In consolidated terms, ACCIONA wind This is the start of the Company's farms generated 13,841 GWh (1.1% more investment strategy in India, which will ACCIONA also installed the Monreal than in 2014). Consolidated wind output in continue to expand in the coming years. wind farm (three 1.5 MW turbines) and Spain amounted to 7,219 GWh (52.2% of retired a 2 MW turbine from a wind farm the total) and production in other countries ACCIONA Energy is planning additional in Australia. amounted to 6,622 GWh (47.8%). wind developments in several countries, including strategic countries such as As a result, wind capacity increased by With just 49.5 MW of installed capacity, Mexico and Chile. 125.5 MW to 7,212 MW at year-end. Wind Costa Rica produced 303 GWh and capacity totals 5,695 MW in consolidated ranked sixth in its contribution to the terms and 5,541 MW in net terms. Company's output.

ACCIONA has 220 wind farms in 15 countries. Spain represents 66% of its total installed capacity. ACCIONA Annual Report 2015 27

Wind output

Total (GWh) Consolidated (GWh)

17,482 17,421 13,690 13,841

Spain accounted for -0.3% +1.1% 58.3% of ACCIONA's total wind output in 2015

2014 2015 2014 2015

Total wind output by country (GWh)

Countries 2014 (GWh) 2015 (GWh) Difference (%) Spain 10,378 10,153 -2.2% Mexico 2,174 2,255 +3.7% USA 2,160 1,923 -11% Australia 932 959 +2.9% Canada 516 477 -7.6% Total wind capacity at 2015 year-end Costa Rica 127 303 +138.6%

Portugal 308 286 -7.1% Other countries Spain Italy 239 218 -8.8% 2,465 MW 4,747 MW (34.2%) (65.8%) India 226 209 -7.5% Poland 148 185 +25% South Africa 116 Chile 28 111 +296% Greece 119 104 -12.6% Croatia 79 74 -6.3% Hungary 47 48 +2.1% TOTAL GENERAL 17,482 17,421 -0.3% Total: 7,212 MW 28 ACCIONA Energy

Hydroelectric Photovoltaic

OUTPUT DOWN 25% FASTEST GROWTH ACCIONA has 888 MW of Company- Total output by photovoltaic facilities Photovoltaic owned hydroelectric capacity in 79 in which ACCIONA has a stake (143.3 output increased plants in Spain. Of those, 640 MW are MWp) increased by 172%, from conventional power generation assets, and 113 GWh to 307 GWh, due to the fact by 172% output is sold in the electricity pool, while that the Sishen plant in South Africa was in 2015 another 248 MW are non-conventional. operational for the full year. as the Lower rainfall in 2015 resulted in Sishen, with a capacity of 94 MWp Sishen plant hydroelectric output of 2,197 GWh, 25.1% (74 MW rated), is Africa's largest less than in 2014 (2,933 GWh). A total photovoltaic plant and generated 211 in South Africa of 67% of output (1,469 GWh) was from GWh in 2015 (68.7% of ACCIONA's total was operational conventional plants and 33% (728 GWh) photovoltaic output). from non-conventional plants. for the full year The Amareleja 45.8 MWp plant in Hydroelectric output accounted for 10.5% Portugal produced 93 GWh in 2015, of ACCIONA's total output and 12.8% of 30.3% of the total. its consolidated output. Since these facilities are not wholly owned by ACCIONA (it owns 51% of Sishen and 65.6% of Amareleja), consolidated output was 214 GWh and net output 115 GWh.

KEY PROJECT ACCIONA Energy will focus on developing photovoltaic technology in addition to wind in the coming years. In October Photovoltaic output 2015, it commenced construction of the El (Total output in GWh) Hydroelectric output Romero Solar plant in Chile. This 247 MWp (GWh) (196 MW) plant in the Atacama desert will 307 2,933 begin feeding power to the grid in 2016 and will be completed in 2017.

2,197 It will be a major contribution to expanding ACCIONA's photovoltaic portfolio. The Company is also working on a number of 113 -25.1% photovoltaic projects in other countries. +172%

2014 2015 2014 2015 ACCIONA Annual Report 2015 29

Solar thermal Biomass

HIGHER OUTPUT IN SPAIN IN LINE WITH 2014 ACCIONA Energy owns 314 MW of ACCIONA has three operational biomass- operational solar thermal capacity. Of fired power plants in Spain: Sangüesa (31 this, 250 MW are distributed in five plants MW) in Navarra, Briviesca (15 MW) in in Spain, each with 50 MW (three in Castilla y León, and Miajadas (15 MW) in Extremadura and two in Andalucía); a sixth Extremadura. The first two burn cereal plant, in the US (Nevada desert), has 64 straw, and the third plant burns a mix of MW capacity. Four of the plants in Spain agricultural and wood waste. They are are owned 15% by Mitsubishi Corp. owned 100% by ACCIONA except for Briviesca (owned 85%). ACCIONA's solar thermal output amounted to 542 GWh in 2015, 5% more The combined output of these plants than the previous year. The plants in Spain was 408 GWh in 2015, very similar to generated 433 GWh (8.7% more than in the 2014 figure (an increase of 0.5%). 2014) and the plant in Nevada produced 109 GWh (-7.7%). Biomass-fired output accounted for 2% of ACCIONA's total production and 2.4% Solar thermal energy accounted for almost of its consolidated production. 2.6% of ACCIONA's total output and 3.2% of its consolidated output.

Solar thermal output Biomass output (Total output in GWh) (Total output in GWh)

542 408 516 405

+5% +0.5%

2014 2015 2014 2015 30 ACCIONA Energy

WIND GENERATORS

NEARLY 1,000 MW IN ORDER INTAKE IN FIVE COUNTRIES diameter of 125 metres. Consequently, ACCIONA Windpower, the Group's Some 7% of AWP's total capacity this model—the largest that AWP has subsidiary specialised in wind turbine contracted in 2015 was for wind farms to be ever sold—accounts for 55% of the manufacture and sales, was very active in built in Brazil: the Lagoa do Barro complex Company's total sales in the 3 MW 2015. It signed new orders for 969 MW of in Piauí (195 MW), Vila Pará, in Río Grande platform. ACCIONA Windpower now turbines—all 3 MW—with the result that it do Norte (99 MW), and a project in Bahía offers a 132-metre rotor. has sold 3,057 MW of that turbine to date (66 MW). Those contracts, amounting (7,170 MW, including previous models). to a combined 360 MW, raised AWP's Most orders (74%) were for 120m and contracted capacity in Brazil to 1,185 MW. 100m concrete towers, an ideal alternative ACCIONA Windpower (AWP) has wind to steel towers in many markets. turbines installed or in the pipeline in 19 In South Africa, the Company signed two countries on the five continents. Orders for contracts totalling 279 MW towards the end STRONG INDUSTRIAL ACTIVITY 3 MW turbines have mainly come from 10 of the year, bringing contracted capacity In the industrial area, ACCIONA countries to date. in that country to 417 MW. It also signed Windpower's plants assembled 281 supply agreements in Mexico (143 MW), the 3 MW turbines (843 MW) and 34 1.5 MW Of the 7,170 MW in sales, the Company USA (123 MW) and India (78 MW). turbines, i.e. a total of 894 MW assembled nacelles totalling 6,104 MW assembled in the year. (85%) and installed 5,820 MW (81%) in the LARGER ROTORS field in 2015. All contracts signed in 2015 referred to A total of 426 MW were installed in the AW125/3000 model, with a rotor wind farms (373 MW of the AW 3000

Accumulated ACCIONA Windpower turbine sales Data in MW as of 31.12.2015

United Kingdom Poland 36 183 Canada China France Croatia 177 249 39 30 USA Spain 1,495.5 1,705.6 Italy Greece Turkey 64.5 6 58.5 South Korea Mexico 64.5 988.5

Costa Rica India 49.5 78

Brazil 1,185 Chile 105 South Africa 417 Australia 238.5

Total order book: 7,170.1 MW ACCIONA Annual Report 2015 31

platform and 53 of the AW 1500), with and ACCIONA will become a core windpower industry, with the capacity a total capacity of 1,195 MW; 471 were shareholder of the resulting company. and potential to be among the world's commissioned, with a total capacity of top five manufacturers of onshore wind 1,320 MW, i.e. significantly exceeding the Nordex is acquiring ACCIONA turbine generators. The two companies 2014 figures. Windpower for 785 million euros: 366 are a good fit in terms of international million euros in cash and 419 million footprint and technologies. NACELLE PLANT IN BRAZIL euros in the form of newly-issued shares In 2015, ACCIONA Windpower officially of Nordex, equivalent to 16.6% of the inaugurated a wind turbine nacelle resulting company. assembly plant in Brazil (Bahía state), which commenced operations in late 2014. At the same time, ACCIONA will pay 335 million euros to buy an additional During the year, the company started up 13.3% of Nordex from Skion-Momentum, factories to produce concrete towers for wind the Quandt family holding company, turbine generators in Brazil and Mexico. formerly Nordex's largest shareholder.

AGREEMENT WITH NORDEX As a result of the two transactions, On 1 October 2015, Nordex and ACCIONA will become a core shareholder ACCIONA announced an agreement to of Nordex with 29.9%, while Skion- create a world leader in the wind industry. Momentum's stake will be reduced to 5.7%. Under the agreement, the German company will buy ACCIONA Windpower, The Nordex-ACCIONA Windpower merger will create a world leader in the

AW3000 wind turbine orders Cumulative data as of 31.12.2015

Brazil: 1,185 MW (38.8%) In October 2015, it USA: 495 MW (16.2%) was announced that Mexico: 381 MW (12.4%) For third parties South Africa: 279 MW (9.1%) 2,529 MW (82.7%) ACCIONA Windpower Canada: 132 MW (4.3%) and Nordex, the Turkey: 57 MW (1.9%) German wind turbine South Africa: 138 MW (4.5%) manufacturer, are to Spain: 105 MW (3.4%) USA: 99 MW (3.2%) For ACCIONA merge to create a India: 78 MW (2.6%) 528 MW (17.3%) world leader in the Poland: 63 MW (2.1%) Chile: 45 MW (1.5%) wind industry.

Total 3,057 MW 32 ACCIONA Energy

EPC CONTRACTS FOR CLIENTS

2015 was a particularly important year Turnkey facilities for ACCIONA Energy in this area. The Company installed 301.5 MW in Mexico Countries Technology Capacity (MW) Commissioned (two wind farms) and a 7.2 MWp plant in Canada Wind 102* 2015 Chile, and completed and commissioned Mexico Wind 302 2015/2016 a 102 MW wind farm in Canada. A total of Chile Photovoltaic 7** 2015/2016 410.7 MW. TOTAL GENERAL 411 LEADING WIND COMPLEX IN (*) 45 MW were installed in 2014 and the remainder in 2015. MEXICO (**) MWp. AE installed the Ventika and Ventika II wind farms (252 MW in total) in the Mexican state of Nuevo León for a consortium 33 AW 1.5 MW turbines, for a consortium The Company's experience in developing, comprising Fisterra Energy, Cemex and comprising Actis and Comexhidro. building and operating its own wind and private investors. This is the Company's photovoltaic facilities is a positive feature largest ever wind EPC contract. OTHER COUNTRIES of its services offer. In Canada, the Company commissioned ACCIONA handled engineering, the South Canoe wind farm (102 MW) construction and supply of wind turbines in Nova Scotia for local partners Oxford for the complex and will operate and Frozen Foods, Minas Basin Pulp and Power maintain the installation for 20 years. and Nova Scotia Power. AE installed 87 The construction work on the facility, MW in this farm during the year in addition which was completed ahead of schedule, to the capacity installed in 2014. resulted in the Company being awarded two Cemex Project prizes for excellence In Chile, the Company completed the and innovation in 2015. first phase of the Pampa Camarones photovoltaic plant (7.2 MWp) in the north The Ventika complex comprises 84 AW 3 of the country under an EPC contract MW wind turbines mounted on concrete awarded by E-CL (GDF Suez). towers. It is expected to enter commercial operations in the first quarter of 2016. FUTURE PROJECTS ACCIONA is working to secure EPC Also in Mexico, ACCIONA installed the projects in a number of countries, including Ingenio 49.5 MW wind farm in Oaxaca, with Mexico, India, Chile and South Africa. ACCIONA Annual Report 2015 33

In 2015, ACCIONA Energy set a record in terms of turnkey facilities built for customers, with over 400 MW installed or commissioned at wind farms in Mexico and Canada, plus a photovoltaic installation in northern Chile.

ENERGY SALES EL ROMERO SOLAR (Chile) ACCIONA Green Energy Developments, the ACCIONA subsidiary responsible for ACCIONA'S LARGEST PHOTOVOLTAIC PLANT renewable energy sales, supplied 3.8 TWh of In October 2015, ACCIONA Energy commenced electricity to large clients in Spain in 2015. construction of El Romero Solar, a photovoltaic plant which it owns in the Atacama region of Chile. This is ACCIONA sold 100% renewable the largest energy facility of its type that ACCIONA electricity, certified by Spain's National has ever built. Commissioning of the plant, which is one Commission for Markets and Competition, of the 10 largest ever designed, will begin in the fourth to companies and other customers such quarter of 2016 and conclude in the first quarter of as the Spanish Ministry of Defence (for 2017. Specifications: its facilities in Spain), 18 state-owned Capacity: 247 MWp (196 MW rated) museums and exhibition centres, the Output: approximately 500 GWh/year Thyssen-Bornemisza Museum, the National Library, CLH, Acuamed, 12 Investment: 343 million US dollars hospitals in the Madrid region, and Canal Photovoltaic modules: 770,000 units de Isabel II, among others. Technology: polycrystalline silicon Structures: fixed (111 km) Capture area: 1.5 million m2 (211 football fields) ACCIONA Green also manages the sale of energy to Spain's electricity pool from Emissions avoided: 473,000 tons of CO2 per year Group-owned and customer-owned Part of this plant's output will be allocated to distributors facilities, which total 6,600 MW. In 2015, the in the Central Chile Interconnected System and the Company sold 14,353 GWh in the market. remainder will feed Google's Chilean data centre. ACCIONA INFRASTRUCTURE

ACCIONA Infrastructure encompasses the Construction, Water, Industrial and Service business lines, which have been successfully integrated while enhancing technical and geographical specialisation. The results are becoming visible in profit margins and synergies.

In the two years during which ACCIONA Infrastructure was being restructured, bidding for new projects was contained and based on a much more selective approach to ensure that projects achieved the division's hurdle rate of profitability ACCIONA Infrastructure and complied with its risk ceiling. (millions of euros)

Synergies are beginning to arise between Turnover Backlog the business areas, resulting in more Construction* 2,170 6,722 efficient resource management and a Water 451 3,536 value-added, integrated, highly specialised Service 716 760 offer to our clients and society. Infrastructure total 3,336 11,018

(*) Includes concessions and industrial Order intake (millions of euros)

Construction* Water Service Total 2,619 3,564 683 814 808 628 4,111 5,007

2014 2015 2014 2015 2014 2015 2014 2015

+36% +19% -22% +22% (*) Includes concessions and industrial ACCIONA Annual Report 2015 37

TOOWOOMBA (Australia)

Toowoomba north bypass road under concession Technical specialisation (PPP).

ACCIONA Construction achieved over Two railway tunnels in Norway, which are The contract covers design, construction, 2,600 million euros of new contracts in part of the country's largest infrastructure financing and operation 2015, beating its own target for the year project to date. of a 42-km highway, with while improving the quality of its order book 27 structures, including a and its profitability due to a more selective The first line of Quito Metro (Ecuador). This 850-metre viaduct. approach to bidding for new projects and emblematic project in the city of Quito is the more effective risk management. only solution that can alleviate congestion Awards: and reduce transit times. Road Deal of the Year at the Project Finance International consolidation of the International Awards specialised civil engineering units resulted The Site C dam in Canada, one of the in major international projects to which country's largest infrastructure projects. IJ Global Award for ACCIONA contributes its added value, APAC Deal of 2015 such as: The Toowoomba Second Range Crossing PPP project is a bypass road to the north Sydney Light Rail, a very complex of this Australian city. project that will enhance connectivity in Sydney's central district and which was named PPP Deal of the Year, among other awards. 38 ACCIONA Infrastructure

ACCIONA Concessions is one ACCIONA Concessions expanded its of the world's leading private sector operations in 2015 in terms of both infrastructure developers in terms of the number of bids presented and, both the number of projects and turnover. above all, the number of contracts It manages a portfolio of 23* concessions awarded. ACCIONA Concessions covers in Spain, Canada, Mexico, Chile, Australia the whole world and has increased and Brazil in both transport infrastructure its degree of penetration in local (roads, railways, ports and irrigation) and markets by strengthening teams in key social services infrastructure (hospitals markets (Australia and Latin America) and universities). and expanding its presence in Europe, Southeast Asia and the US.

ACCIONA Agua is one of the world leaders in end-to-end water management and in the design and construction of water treatment plants. It has also strengthened its position in the Middle East and is now the Spanish company with the largest footprint in that region.

The company currently meets the water needs of over 90 million people.

The Automation and Control unit was established as an independent area in 2015 to support the other business areas and also to operate as a business line in its own right, serving the water market, among others. AL FUJAIRAH SEAWATER Successes in 2015 include: DESALINATION PLANT (UAE)

The award of two large desalination Capacity of 137,000 m3/d, lengthy water shortages plants in Qatar, which will be the first serving water to 500,000 in the area. The plant large-scale application of reverse osmosis people using reverse osmosis guarantees sufficient water in that country. desalination. supplies for the region. In recent years, the Fujairah Initiation of commissioning of the coast has suffered several Atotonilco (Mexico) sewage treatment episodes of red tides, causing plant, the largest in the world.

Commissioning of the Fujairah desalination plant.

(*) Does not include water concessions. ACCIONA Annual Report 2015 39

EMPALME (Mexico)

ACCIONA Industrial strengthened its Project to build a The project consists of: transmission line associated position in Mexico and South Africa Three 400 kV transmission in 2015, focusing on clean energy with the Empalme II combined cycle plant. lines measuring 117 km in generation and renewables. total. The project is located in the Four substations (400 kV ACCIONA Service is a leader in its sector, Mexican states of Sonora and 230 kV). 1,750 MVA, with a presence in all areas of industry and and Sinaloa, and serves the Empalme II CCGT plant. with fourteen 400 kV the economy and considerable experience feeder lines. in the public and private sector. Its service approach is based on strong internal know-how and its process efficiency and cost-effectiveness are highly appreciated by over 2,000 clients. Geographical specialisation In 2015, it created new business areas based on its focus on technical The new geographical specialisation specialisation: approach as a result of the new organisation structure makes it possible Large networks and specialised industrial to focus efforts on high-potential areas maintenance. where the company can maximise leverage of its specialised technical capabilities Social services and healthcare. while ensuring appropriate resource assignment to all activities. Each region is Smart City Services. supported from platform countries, which coordinate resource management in their areas of influence, ensuring availability, quality and optimal utilisation. 40 ACCIONA Infrastructure

Regions and platform countries

NORTH AMERICA EMEA

Canada

UAE Spain

Mexico Brazil AUS NZ & SEA

Chile Australia

LATAM

NORTH AMERICA

CANADA Canada remains one of the Company's core The service unit successfully renewed its The pipeline of infrastructure projects in markets. It obtained two major contracts contracts in 2015, confirming its ability to Canada remains robust and the newly there in 2015: the construction of the dam continue to meet client’s high expectations. elected Federal Government cites for a hydroelectric project (Site C Clean infrastructure investment as a central Energy Project) and a new water treatment ACCIONA Infrastructure signed a contract tenet of its economic policy. The public plant (Saint John Safe Clean Drinking to build the Site C dam, which is part of private partnership (PPP) model remains a Water Treatment). The company also a 1,100 MW hydroelectric plant in British well-accepted procurement model in Canada, successfully completed two road works Columbia for BC Hydro, the provincial utilised across a broad and expanding list contracts during the year. power utility. This is one of the largest of asset classes and government agencies. infrastructure projects in Canada As a result, ACCIONA expects continued The Herb Gray Parkway project was and is part of the Site C Clean Energy opportunities to pursue large-scale projects in completed in November of 2015 and project. This project is significant on the transportation, water, and other sectors, and has been very well received. The project global stage and allows the Company to to continue to leverage its fully integrated diverts heavy truck traffic from the continue to demonstrate leadership in the delivery model in the PPP sector. streets of the city of Windsor, greatly international hydroelectric power sector. improving the quality of life for local In February 2015, ACCIONA Infrastructure residents and expediting the flow of ACCIONA Water was chosen for the Safe renewed the services contract, first signed international goods traffic between Clean Drinking Water Project (SCDWP) in 2011, with the Patient Care Center at Canada and the United States. contract to build a water treatment plant Royal Jubilee Hospital in Victoria, where (75 million litres per day) and upgrade it is achieving a high level of quality and the associated reservoir and transmission efficiency. works for the city of Saint John, New Brunswick. The SCDWP is a public-private partnership with a 30-year concession. ACCIONA Annual Report 2015 41

LATAM

BRAZIL Brazil has been experiencing economic There is also a crisis in water supply for and political turmoil since mid-2014. drinking and industrial use in the north of the Despite this adverse situation, ACCIONA country and the government is implementing Infrastructure is progressing with its plans to develop desalination plants. existing contracts and is expanding through careful selection of new contracts. Chile is a success story in terms of the added value provided by ACCIONA ACCIONA Infrastructure is one of Brazil's Infrastructure's specialised subsidiaries leading port infrastructure builders, in the strategic mining industry, having completed the landmark Açu Port which has stringent safety and quality contract, in which it used the Kugira caisson standards. For economic reasons, the construction barge. industry is transitioning from open-cast to underground mines, a process that The Company signed a contract to offers major business opportunities for manage all waste-water treatment ACCIONA Infrastructure. Additionally, for Divinópolis. The project includes the completion of the Chuquicamata design, construction and commissioning ventilation shafts on time and to the of two waste-water treatment plants, 16 satisfaction of the customer, CODELCO, pumping stations and sewer mains, and was one of the main factors in the award the operation of the system for 26 years. of the contract to undertake a major The contract is structured as a public- expansion of those shafts. private partnership (PPP). The largest of the planned plants, which will attain a The Company is now a leading name capacity of 600 litres/second, will serve in desalination and water distribution 228,600 people. in the country. The desalination and aqueduct project for mining company CHILE CAP was completed successfully. The commodity crisis and slowing growth in China, together with some short-term ACCIONA Infrastructure is bidding effects of the labour law and tax reforms for power plants (both renewable under the current government, resulted and conventional) and natural gas in a reduction in economic growth regasification terminals. projections. To counter this situation, the government is developing alternative sources of economic growth, such as the promotion of public infrastructure concessions and the upgrading and building of new hospitals. 42 ACCIONA Infrastructure

QUITO METRO (Ecuador) This section comprises a 22- km tunnel and has 15 stations, PERU workshops, depots and other The volume of government tenders in 2015 The Company was awarded three water facilities. was considerably less than expected, with management concessions in Lima, It is expected to carry 400,000 the result that ACCIONA Infrastructure covering the northern area of the city passengers per day in its first year of presented fewer bids than projected. and serving over 3 million people. With operation. Nevertheless, it seized growth opportunities this project, ACCIONA will contribute in the area of public-private partnerships to the strategic objectives of the Lima The project will reduce the current travel time by at least 70%, with (PPP), where it is a very active player. Drinking Water Service (Sedapal) for the consequent economic and social 2013-2017, which are vital for the city's benefits. In August, ACCIONA inaugurated the social development and revolve around Escalerilla waste-water treatment plant. three main issues: extending access to The planned execution period is 36 With a capacity of 34,800 m3/day, it drinking water and sewers, reducing months for the construction and 6 months for system integration and serves a population equivalent to 150,000. the volume of unbilled water, and commissioning. ACCIONA will operate and maintain the enhancing service quality. plant for three years. By using a biological This first Metro line is the initial treatment process, the plant reduces the Since there are presidential elections in 2016, component of a new public transport pollutant load by 90%. It contributes the volume of public tenders is expected system for Quito. to resolving health and environmental to be low. Nevertheless, a number of large problems in the northern part of the infrastructure projects that have been greater Arequipa district (Peru's second- in preparation for the last two years are largest city, and the principal city in expected to be put out to tender. They will southern Peru) and to reducing pollution in be implemented under the PPP approach. the Chili river. As a result, the water can be re-used for agriculture. ACCIONA Annual Report 2015 43

ECUADOR The signature in November of the contract The Atotonilco wastewater treatment for Phase II of Quito's first Metro line was plant was commissioned in November. one of ACCIONA's major success stories in This is the largest waste-water treatment 2015 and a reward for its perseverance in plant in the world and is a milestone for the Latin American market. the Company. It processes the waste water produced by the equivalent of This contract has a major social impact 10 million people in Mexico City and is since the service is expected to carry equipped with a cogeneration system to 400,000 passengers per day during its first produce electricity using biogas, which year of operation, reducing current transit maximises energy efficiency. It will times by 70%. become operational and serve the state of Hidalgo in April 2016. Since this first Metro line is the initial component of Quito's new integrated Three major contracts were obtained in transit system, the Ecuadorean market is the Industrial area in 2015: the Empalme expected to offer many opportunities. II high-tension line, measuring 114 kms, including four substations; Phase 8 of the MEXICO contracts to reduce power distribution After rapid expansion by all of ACCIONA's losses; and the EPC (turnkey) contract businesses in Mexico in 2014, there was for the Puebla 2x30 MW hydroelectric a sharp reduction in government tenders plant, for Comexhidro. In this way, the in 2015 as the Federal budget was cut Industrial area strengthened its foothold in response to the decline in oil prices. in Mexico. Nevertheless, ACCIONA Infrastructure continued to obtain significant projects in The economic consequences of falling oil nearly all areas. prices and the devaluation of the peso Commissioning against the dollar are expected to continue Atotonilco The repowering of the San Rafael to depress infrastructure investment in of the hydroelectric plant (24 MW) was Mexico during 2016. However, ACCIONA (Mexico) completed, a good example of expects to continue expanding its position cooperation between the Construction in the country and to seize opportunities, waste-water and Industrial divisions. The plant especially in the industrial sector, where it treatment plant, qualifies as a clean development expects significant growth as a result of the mechanism (CDM) under the Kyoto energy reform and the portfolio of public the largest such Protocol and the United Nations tenders planned mainly by the CFE. plant in the world, Framework Convention on Climate Change (UNFCCC). It is estimated commenced in 2015 that the San Rafael plant will avoid the emission of approximately 71,257 tons of

CO2 to the atmosphere by avoiding fossil fuel combustion. 44 ACCIONA Infrastructure

COLOMBIA COSTA RICA In 2015, ACCIONA was awarded the The Los Tajos waste-water treatment plant contract to build the Los Angelinos in San José was inaugurated in September drinking-water treatment plant, 2015. This is a primary type (physical- which will serve the municipalities of chemical) plant with complete sludge Bucaramanga, Floridablanca and Girón. treatment for an average throughput of The plant will have a capacity of 51,840 2.81 m3/s and a maximum throughput of m3/day and supply drinking water to 3.45 m3/s (Phase I). 350,000 people. This project, located in the vicinity of the city of Bucaramanga, Los Tajos wastewater treatment plant is in Santander department, will serve the core of the first stage of the San José a population of more than 4.5 million Environmental Improvement Project, a people and is yet another major project programme that also includes renovating awarded to ACCIONA in that country, and extending the network of sewer mains where the division's specialised units are and secondary sewers by more than 360 operating successfully. kilometres. It serves more than one million people, 65% of the estimated population NICARAGUA of the capital city's metropolitan area. ACCIONA was awarded three water contracts, including notably:

The upgrade and expansion of the Jalapa drinking-water treatment system. The project is supported by the Cooperation Fund for Water and Sanitation of AECID (Spanish Agency for International Development Cooperation) and the European Union (Latin America Investment Facility—LAIF) and loans from the Central American Bank for Economic Integration (CABEI) and the European Investment Bank (EIB), as well as funding from the Government of Nicaragua. ACCIONA Annual Report 2015 45

EUROPE, MIDDLE EAST & AFRICA (EMEA)

EUROPE Europe is developing major international At the same time, it managed to reactivate Projects obtained in Spain in 2015: communication corridors which involve projects that had been put on hold. a large number of crossborder projects, Toledo University Hospital: Design, including railway lines through the Alps In 2015, it completed Vigo Hospital, the construction, operation and between Austria and Italy and between largest public building constructed in Spain maintenance of a 760-bed hospital France and Italy that are currently at the in recent years. The project included the (360,000 m2) for 30 years. planning or bidding phase. Additionally, many construction, financing, maintenance and countries in the region are developing their operation of the new hospital, which has Málaga Metro: The Guadalmedina- domestic communication systems through a floor area of 280,000 m2 and a total of Atarazanas section comprises 295 metres ambitious rail plans. The United Kingdom is 1,465 beds, serving 600,000 people in the underground and a station located so planning to spend 7.5 billion pounds on the Vigo area. The hospital was awarded the as to afford access to Málaga's historic first phase of a high-speed rail network. Future Health Project international prize centre, one of the principal shortcomings as best European project in the field of in mobility within the city at present. Europe has launched the Juncker plan to boost health. It is a standard-setter in terms of economic recovery by mobilising substantial environmental commitment since it is the Prolongation of Los Mármoles jetty funds for investment in projects of particular first medical building to obtain the BREEAM in the port of Arrecife (Las Palmas de interest to the European Union. This initiative, Es international certificate, which accredits Gran Canaria). The project's objective which could amount to 315,000 million euros compliance with the highest standards in is to enhance operations at the port, through the European Fund for Strategic sustainability, energy efficiency and respect which is the island's sole entry point Investment (EFSI), provides an exceptional for the environment. for goods and also the most important opportunity for the development of projects cruise destination in the Canary Islands. in areas of infrastructure, R&D&i, ICT and Also notable was the lighthouse for The ideal solution was to provide energy, among others, in which the Company Valencia Port, the first in the world to definitive protection against yearly is uniquely positioned. be made of composite materials, which average waves and prevent storms from earned an award for its design and reaching the port itself. Moreover, several countries are committed to materials in the infrastructure category at developing road projects under the concession the JEC World 2016 Innovation Awards. Eight new operation and maintenance model, with tenders planned for 2016. projects at water-treatment plants in An agreement was signed to enhance Asturias, Catalonia, Navarre, Andalusia SPAIN funding conditions for the Gerediaga and the Basque Country. As a result, total The volume of public tenders has declined Highway, and the Autovía de la Plata (A66) water plant capacity under O&M contracts sharply in Spain. However, the Company concession company was refinanced by rose to 7.2 million m3 per day, serving a has maintained its market position despite Spain's first issue of project bonds without total of 32 million people. the difficulties. an EIB guarantee. The bonds, amounting to 186 million euros and maturing in 2041, The contract to operate and maintain The Company has expanded in the area were placed with institutional investors the sewers in the Montià district is of water-treatment plant operation and and are listed on the MARF (Mercado particularly noteworthy. This contract maintenance, where it ranks as the Alternativo de Renta Fija). This bond issue forms part of the Terres de l’Ebre biosphere third-largest private-sector player. obtained two awards: Partnership Awards reserve since 2013. Much of the treated water 2015 and IJGlobal Award for European is discharged into natural waterways of high The Company completed major Refinancing 2015. ecological value, such as the Ebro Delta. The infrastructure projects whose execution plant will process a total of 6,531,000 m3/ time had been extended due to year (equivalent to serving 89,500 people). budgetary constraints on the customers' part caused by the economic situation. 46 ACCIONA Infrastructure

The contract to manage boarding ramps in Las Palmas Airport in Gran Canaria was renewed by AENA for one year. The extension came into force in February 2016. The handling contract at Palma de Mallorca airport was also renewed.

ACCIONA Infrastructure's wind farm maintenance unit began supporting 207 MW of wind farms located in Asturias, Ávila, Coruña and Cádiz for EDP Renováveis, the third-largest energy operator in the Iberian Peninsula. It has also started the operation and maintenance of 52 MW of wind farms located in Coruña belonging to ENEL Green Power.

Within the Energy Efficiency area, the company upgraded energy efficiency at 25 Caprabo supermarkets.

The Company was awarded a cleaning BBVA HEADQUARTERS (Madrid) services contract by the CNH Industrial group in its factories in Spain, located in Built on a plot of approximately collect rainwater for use in irrigation Madrid and Valladolid, where it produces 59,000 m2, the complex will comprise and by greywater re-use. All waste is Iveco vehicles. This contract consolidates one vertical building and 7 horizontal recycled. ACCIONA's position as a key end-to- buildings, all interconnected. end services manager in the automotive The materials have a low sector, an area in which it has more than The vertical building —La Vela— has 19 environmental impact. Recycled 30 contracts in 10 countries with major floors and is 93 metres high. materials such as steel and aggregate were used, and most of the wood used automotive companies, most notably These new facilities are designed to Citroën, Ford, General Motors, Nissan, minimise energy consumption and is FSC certified (Forest Stewardship Renault, Seat, Volkswagen and Michelin. foster formal and informal interactions, Council), guaranteeing that it comes in addition to encouraging contact from forests that are managed among employees. responsibly and sustainably. ACCIONA was awarded the contract to maintain green areas for the city of The façade is composed of large slabs The complex was built to the most León for a period of four years, with the demanding sustainability standards in of anti-reflective double-glazing possibility of a two-year extension. order to minimise the environmental protected by 1,800 external louvres impact and achieve LEED Gold that filter solar radiation and reduce certification. The smart systems the heating effect of incident sunlight. installed in the complex enable energy The high performance characteristics consumption to be cut by 30% and of the glass and louvres minimise drinking water consumption to be undesired energy loss or gain through halved by means of rooftop systems to the façade. ACCIONA Annual Report 2015 47

POLAND ITALY ACCIONA Infrastructure operates in The Italian government is investing client and the community. Sole 24 Ore the Polish market through its subsidiary heavily in infrastructure to meet the and Legambiente ranked the Is Arenas MOSTOSTAL WARSZAWA S.A., one of the needs of its citizens. In this context, wastewater plant as being the best- ten largest construction companies in the ACCIONA expanded its presence in Italy managed plant in Italy. country in terms of turnover. MOSTOSTAL in 2015 by obtaining significant contracts WARSZAWA is a leading player in Poland in in water and services, placing it in a In 2015, the company began working the areas of infrastructure, building, energy, leading position nationwide. with a major new client, Aquedotto industry and environment. Pugliese, one of the biggest and best It was also a fundamental year for water companies in Italy. Aquedotto In 2015, MOSTOSTAL WARSZAWA developing and expanding the Service Pugliese awarded the company two successfully completed the following projects: business in Italy. The contract to provide major aqueduct maintenance contracts services at the only Italian factory (Centre-North and Centre-South). Tychy football stadium, of food industry leader Campofrío, in Fiorucci, is fully operational to the In 2016 and subsequent years, the water Mazury airport terminal in Szymany client's satisfaction. business in Italy will see an increase in the volume of public tenders for the design, Jordanki concert hall in Torun, ACCIONA has operation and construction and operation of desalination a building of great architectural maintenance contracts for over 250 plants and sewage treatment plants. complexity, which has become an waste-water treatment plants and 600 emblem of the city, pumping stations in Sardinia in the provinces of Oristano, Sassari, Nuoro, The Błazowa composite bridge (the first Olbia and Iglesias. of its kind in Poland). ACCIONA operates ACCIONA Infrastructure was also awarded in Poland through New contracts obtained in 2015 include numerous construction contracts: notably the Opole water treatment plant. MOSTOSTAL Expansion of the Florence water WARSZAWA, one Looking ahead, Poland is in a privileged treatment plant for Publiacqua, and position as a market of opportunity due expansion of the Bresso Niguarda sewage of Poland's top to the investment of European funds treatment plant in Milan. Both clients are 10 construction allocated for the period 2014-2020, regarded as leading companies in the end- amounting to 87,000 million euros, to-end water management industry. companies and a of which 35% will go to infrastructure leader in Poland and a major proportion to energy and A 3-year operation and maintenance environmental projects. There are also contract for the Is Arenas waste-water in infrastructure, incipient plans to expand existing urban treatment plant in Cagliari, one of the building, energy, light railways and intercity railways under largest in southern Italy and the largest the PPP formula. in Sardinia, processing close to 2,500 l/s industry and and serving the equivalent of a population environmental of over 550,000. This is the result of many years of providing an efficient and projects effective service, as acknowledged by the 48 ACCIONA Infrastructure

FOLLO LINE – EPC TBM (Oslo, Norway)

EPC (turnkey) contract covering the design and construction of, among NORWAY other components, twin 18 km In 2015, ACCIONA Infrastructure (as The Norwegian government has increased tunnels with an internal diameter of part of a consortium) was awarded the the budget allocation for the National 8.75 metres, using 4 tunnel-boring largest railway project in Norway by the Transport Plan 2014-2023 to 63,000 machines (TBM). Norwegian National Rail Administration. million euros in order to accelerate These are the largest and second- The Company's Engineering department the construction of the necessary largest EPC contracts in the Follo is responsible for design of the Follo Line infrastructure and, at the same time, Line project, Norway's largest TBM project in Oslo. This project is boost the sector, offsetting the increase in infrastructure project to date. enabling ACCIONA to open the market and unemployment created by the decline of to probe major future projects that will be the oil industry. The tunnels are designed to carry high-speed trains at 250 km/h. Once put out to tender in the coming years. completed, they will be the longest rail tunnels in Scandinavia. They will connect the cities of Oslo and Ski and form the axis of Oslo's interurban development in a southerly direction. ACCIONA Annual Report 2015 49

SWEDEN UK In 2015, ACCIONA Infrastructure ACCIONA has signed a 5-year energy completed the commissioning of the services contract for General Motors Barkarby bridge and three footbridges factories in the UK. The project includes for pedestrians and cyclists (Vasavägen, totally replacing the lighting at the Passadvägen and Kallhäll) as part of the General Motors factories in the UK (Luton Mälarbanan project (Stockholm), which and Liverpool), installing the latest LED consists of widening the Tomteboda– technology to achieve savings that allow Kallhäll line in northern Stockholm from the investment to be recouped in four to two to four tracks (a total of 20 km). The five years. project included design and construction. BELGIUM Sweden has an ambitious National Transport The Company completed the design, Plan for the next 10 years, with a total budget technical and constructive definition and of 50,000 million euros. Over 150 projects organisation of the documentation for the have been identified that represent business House of European History Museum, opportunities in the coming years. an initiative of the European Parliament in Brussels. It is currently supervising the TURKEY production and installation of the museum In 2015, ACCIONA was awarded the pieces, with innovations such as the ability first two EPC (turnkey) contracts by to provide visitors with information in the Turkish Ministry of Environment and the 24 official languages of the European Urban Planning: Union by means of a tablet that guides them through the museum and offers them The Kutahya and Aksehir waste-water additional information. treatment plants (located in the Aegean region, in western Turkey). The Aksehir RUSSIA plant will be able to process up to 15,000 ACCIONA carried out the technical m3/d in the first stage and more than development, manufacture, supply and 18,000 m3/d in the second. The Kutahya installation of the exhibition contents for plant will be able to process close to the Boris Yeltsin Presidential Center 100,000 m3/d in 2030 and more than Museum in Yekaterinburg, as well as 120,000 m3/d by 2045. providing advice and technical training to the museum's maintenance crews and PORTUGAL the technical and conservation-oriented In Portugal, the Company signed a survey of the Yeltsin Foundation contract for the design, construction document collection for this museum. and commissioning of the Companheira waste-water treatment in Portimão, in the Faro district (Algarve region). The plant will have the capacity to treat 25,278 m3/ day on average and will serve a population of close to 140,000. 50 ACCIONA Infrastructure

MIDDLE EAST growth in the world (the population is ACCIONA Infrastructure has consolidated The company is participating in major expected to increase by 30% by 2020), its position in the Middle East with tenders in the Gulf and has been This, coupled with the shortage of natural a presence in five of the six member prequalified in all the mega-projects for resources (apart from oil) and high living countries of the Gulf Cooperation Council railways, tunnels and roads. standards, offers significant business (GCC): United Arab Emirates (UAE), Saudi opportunities for the Company. Arabia, Oman, Qatar and Kuwait. During ACCIONA is beginning to be seen as a 2015, it strengthened the status of the new go-to company in the services sector after Infrastructure investment plans for the offices in Dubai (UAE) as the Company's landing major contracts such as facility coming years amount to 10 trillion dollars, platform in the GCC for expansion into the management at the Hamad Medical mainly in water, energy, hospitals, railways, Middle East. Corp. hospitals (Qatar) and the Shafallah airports, housing and military facilities. Centre for Children with Special Needs The company is a leading name in the (Qatar), as well as services in the passenger GCC in areas such as reverse osmosis terminal at Salalah Airport (Oman). It desalination and waste-water treatment also has major contracts with schools, AFRICA plant operation and maintenance. hotels and embassies. It produces over 700,000 m3/d of ACCIONA Infrastructure increased its order desalinated water under contracts worth The Company continues to achieve intake notably in Africa and strengthened more than 700 million euros. successes in the Middle East with projects its position in the continent. One of the in Kuwait, Qatar and Oman. A notable most significant contracts was the EPC It successfully completed construction project is the technical development (turnkey) contract for the 100 MW of the Fujairah desalination plant and museographic execution of the Kathu Solar Park I solar thermal plant, in the United Arab Emirates, with a Heritage House Museum in Doha, for Engie, which seeks to ease energy capacity of 137,000 m3/d, and has begun Qatar. In Oman, it carried out the problems in that area of South Africa. The the period of operation and maintenance. technical development, production and project will create 1,500 direct jobs during When operating at full capacity, it is installation of the exhibition content construction and an additional 200 during expected to serve a population of more for the Oman National Museum and operation. In line with its commitment to than 500,000. worked with the Ministry of Heritage and sustainability and development, ACCIONA Culture to catalogue the collection and will hire people from disadvantaged New contracts obtained in 2015 study, design and manufacture stands for backgrounds in South African society. include the two largest desalination the approximately 5,000 items of great plants in Qatar, which are also the historical value that are on display. The world situation, the drop in oil prices largest in the Gulf: Ras Abu Fontas 3, and the slowdown in China are affecting with a capacity of 164,000 m3/d and The engineering area recently won growth in Africa. However, to avoid energy Umm Al Houl, 284,0000 m3/d, in contracts in Lusail (Qatar) and is dependence, many countries are beginning Doha. They represent a milestone in the opening the market for ACCIONA in to exploit wind and solar resources, which history of desalination in Qatar as they other Gulf states. opens up new business opportunities as are the first large-scale applications of renewable energy projects are conducive reverse osmosis technology there. Despite the decline in crude oil prices, to foreign investment. The most attractive the Middle East is still a market of sectors for these investments are energy, opportunities for ACCIONA, since it has water and infrastructure. one of the highest rates of population ACCIONA Annual Report 2015 51

AUSTRALIA, NEW ZEALAND AND SOUTHEAST ASIA

AUSTRALIA

The Australian government continues to invest heavily to meet the growing need for infrastructure due to the country's rapid economic and population growth. Since 2007, Australia has invested over 45,000 million Australian dollars in infrastructure.

The Company is strongly positioned in Australia in areas such as desalination and waste-water treatment plant operation and maintenance.

In 2015, construction of the the Legacy Way tunnel in Brisbane (Queensland) was completed to the client's entire satisfaction, since the project came in SYDNEY LIGHT RAIL (Australia) on time and within budget. Legacy Way is a 4.6 km tunnel that provides a fast The new Central The project includes 12 This project obtained: direct connection between expanding Business District and km of track, 19 stops, a residential areas west of Brisbane and South East Light Rail, bridge over the Eastern PPP Deal of the Year the airport to the east of the city. The for Transport for New Distributor highway, at the Project Finance project, which was awarded in December South Wales Transport, a tunnel under Moore International awards. 2010, includes the operation and including design, Park, control centre Best Project Finance maintenance of the tunnel for 10 years. construction finance facilities, depots for Deal by Finance Asia In 2015, it was named Project of the and operation (PPP). trains, a maintenance APAC Deal of the Year in the Infrastructure Partnerships workshop, and Year award from Australia awards. substations and other service buildings along Infrastructure Investor. the route. The Australian government has earmarked 50,000 million Australian dollars for investment in land transport routes between 2013-2014 and 2019-2020 and thereafter. That figure is in addition to the SOUTHEAST ASIA amounts spent by state governments and the private sector. With a view to expanding in Southeast Asia, With a population of 600 million and ACCIONA opened an office in Singapore in a combined GDP of 1.8 trillion euros, Additionally, the concession approach, January 2016 to consider opportunities in Southeast Asia has experienced robust which has been in place in Australia transport and water. economic growth for the past two for over 25 years, will provide more decades. According to current estimates, opportunities for ACCIONA Infrastructure the region will need to invest over 7 to participate in PPP projects. trillion euros by 2030. ACCIONA INMOBILIARIA Third year of rising investment in property

The decline in interest rates, growth in employment and higher disposable household income are boosting demand and driving a recovery in sales.

The Spanish economy ended 2015 with Investment in Spain increased for the strong GDP growth. Very strong consumer third consecutive year and is already spending and business investment drove above the 10-year average. Direct GDP up 3.2% year-on-year, the fastest investment in real estate exceeded 12.8 growth rate since 2007. billion euros, over 30% more than in 2014. Although the tertiary sector is still The variables that have the greatest impact the segment where most deals are being on the real estate business performed very done, the total volume of land deals well in 2015. Interest rates continued to approached 1 billion euros. decline, which continued to reduce the cost of borrowing; employment continued to In this context, ACCIONA Inmobiliaria ended rise, ending the year with more than 17.3 the year with turnover of 51.4 million euros, million workers registered with the Social of which 34% corresponds to property Security, i.e. 656,000 more than at the end development and 66% to rentals. of December 2014; and gross disposable household income increased slightly (1%) In 2015, the Company spun off its rental on the back of a 3.9% increase in wages. property development and management business to a newly-created subsidiary, Home sales grew 11.2% in 2015 to over ACCIONA Real Estate, S.A. The business 354,500 units, the second consecutive year of developing property for sale continues of growth, according to the Association to be conducted by ACCIONA Inmobiliaria. of Property Registrars. The recovery Approximately one-half of the Group's in the economy and, in particular, in assets (in terms of GAV) were assigned to employment, together with stable financial each business. conditions and renewed confidence continue to drive demand and favour a recovery in sales. Prices increased by 6.65% during the year. ACCIONA Annual Report 2015 53

ACCIONA Inmobiliaria ended 2015 with turnover of 51.4 million euros: 34% 1. REAL ESTATE DEVELOPMENT of the Parque Reforma luxury apartment from property ACCIONA Inmobiliaria sold 85 homes in development in Cumbres de Santa Fe, 2015: 7% in Spain, 10% in Mexico and 83% Mexico City, consisting of 64 homes. development in Poland. Parque Reforma Santa Fe continued to and 66% from commercialise phase 2-C, having sold 57 A total of 71 homes were delivered: 36% in of the 60 homes in this phase by year-end. rentals Spain and 64% in other countries. Phase 2-C is scheduled for delivery in 2016.

1a. Real estate development in Spain Inmobiliaria Parque Reforma develops In Spain, the Company maintained its and has a 10% stake in the Maranta discount policy, instituted in 2009, in project in Vistahermosa, Mexico City. This order to continue disposing of completed development consists of approximately housing stock. However, some of the 220 homes of which the first 70 are under housing stock that had been for sale in construction and 71% pre-sold. Delivery previous years was transferred to the of this first phase is scheduled to begin rental business, as discussed below in the early in 2017. Property Rentals section. The market in Mexico continues to trend Land development work focused on zoning slowly towards apartment blocks, which the sites with the greatest visibility for favours sales in the mid- and high-end immediate development. The Company also residential segments, where amenities tracked cases of zoning and land planning and security play an important role. This from prior years that are before the courts. trend, and a good sales performance, make Mexico a favourable market for continuing 1b. International real estate development our growth strategy. The company was particularly active in the residential property business in Mexico and In Poland, commercialisation and Poland. construction of the Atmosfera project, in Wilanow, Warsaw, comprising 100 ACCIONA Inmobiliaria continued to homes and 13 commercial premises, strengthen its footprint in Mexico through continued in 2015. At year-end, 71 homes subsidiary Inmobiliaria Parque Reforma. and 9 premises had been sold after just 12 Parque Reforma Santa Fe, in which months of commercialisation. This project Inmobiliaria Parque Reforma has a 70% is expected to be delivered in 2016. stake, delivered practically all of phase 2-B 54 ACCIONA Inmobiliaria

The market in Mexico continues to trend slowly towards apartment blocks, which favours sales in the mid- and high-end residential segments, where amenities and security play an important role

In December, ACCIONA Nieruchomosci The Company ended the year with 61,975 Wilanow, a subsidiary of ACCIONA m2 of office space, mainly in the cities of Inmobiliaria, sold a 6,613 m² plot of land in Madrid, Barcelona, Sabadell and Zaragoza, the Wilanow area. with an average occupancy rate of 69%.

ACCIONA Inmobiliaria retains exposure to ACCIONA Inmobiliaria continued to Brazil through residential land in Penedo operate student residences under its (Rio de Janeiro state) and Guarujá (São CAMPUS brand, with close to 1,200 beds Paulo state). in Albacete, Murcia, Lleida, Castellón and Cádiz, ending the year with an average 2. PROPERTY RENTALS occupancy rate of 51%. In the hotel Real estate rentals provided 33.8 million sector, Sol Meliá Group continued to euros in turnover in 2015. manage Hotel Condal Mar in Barcelona under its TRYP brand. As regards home rentals, ACCIONA Inmobiliaria has a portfolio of 1,382 homes The Company retained ownership and and achieved a 94.1% occupancy rate at management of Hotel Club Marítimo, in year-end. In addition to the 849 homes Sotogrande, a 41-room boutique hotel that is owned by Compañía Urbanizadora del among the Small Luxury Hotels of the World. Coto, S.L., a company owned 97.47% by ACCIONA Inmobiliaria, an additional 366 The five-star Hotel Estrella del Mar in homes in a number of developments began Marbella continued to strengthen its to be operated under lease as a result of market position. Its 4,000 m² beach the spin-off. club with spa, tropical gardens, gym and restaurant with views of the sea make it a leading vacation hotel. ACCIONA Annual Report 2015 55

3. ADVANCING IN SUSTAINABILITY, R&D AND INNOVATION ACCIONA Inmobiliaria at market prices (million euros) ACCIONA Inmobiliaria remains committed to sustainability, and is aware of its sizeable impact on the surroundings. With a view Appraisals of the gross asset Inventories 536 to preserving and harnessing resources, the value (GAV) of real estate assets, Investment property 708 Company applies basic guidelines to all of developments, investment properties its day-to-day processes. and fixed assets by several independent Fixed assets 27 appraisers totalled 1.271 billion euros Total 1,271 In the international arena, ACCIONA (2015 prices), broken down as follows: Cumulative capital gains before taxes on Inmobiliaria delivered the Cumbres de those assets amounted to 76 million euros Santa Fe II B development in Parque at year-end. Reforma (Mexico City), with a certificate of 'Efficient' (the second-highest of the three existing categories) under Mexico City's Sustainable Certification and Environmental Efficiency Programme, the goal of which is to preserve natural resources and improve living standards.

New homes in the same development are being built with a view to obtaining the highest level of certification ("Excellent") under that same programme. TRASMEDITERRANEA Profitable growth and improved customer satisfaction

Trasmediterranea’s EBITDA rose by 12 million euros, an increase of 40% year-on-year. Net debt amounted to 33 million euros, 60% less than in 2014.

Trasmediterranea is Spain's leading The number of passengers increased by Continuous improvement of efficiency passenger and roll-on/roll-off ferry 3.70% and vehicles by 0.44% due to the and profitability through responsible company. Operating in Spain's three better fit of the vessels to the lines they management of resources so as to main ferry zones—the Balearic Islands, covered. Cargo shipments increased 3.38%. optimise operating costs and efficiency the Straits, and the Canary Islands—the indicators per unit of output. Company seeks to offer an end-to-end The Cruise Ship Unit handled 175 stopovers shipping service that meets clients' in the port of Valencia and provided Notable performance by efficiency needs efficiently while respecting the handling services for 375,209 cruise indicators in 2015 with respect to 2014: environment, remaining true to its passengers. principles, and generating value for society Fleet idling costs were cut by 44%. and its shareholders. The main thrusts of the Company's strategy are as follows: Average cruising speed increased by 2%. In 2015, the Company managed a fleet of 14 Company-owned ships and 7 other Continuous improvement to increase Fuel costs per mile sailed were cut by 9% vessels under charter, providing end- safety for passengers and goods. due to improved fuel prices and enhanced to-end transport services to 2,451,323 fleet operating efficiency. passengers and carrying 544,999 vehicles Vertical integration of services within the and 5,651,087 linear metres of cargo. transport value chain, enhancing existing In financial terms, the Trasmediterranea lines by expanding connectivity by road, Group increased EBITDA by 40% in 2015, rail and ship. basically as a result of an approximately 2% increase in net turnover and the ACCIONA Annual Report 2015

1,112,423 2,451,323 544,999 5,651,087 NAUTICAL MILES SAILED PASSENGERS VEHICLES TRANSPORTED LINEAR METRES OF CARGO HANDLED

reduction of operating costs by 2.5% with To make life easier for travellers, respect to 2014; in particular, fuel costs Trasmediterranea worked with other which fell 10% year-on-year. transport operators to enable passengers travelling without a vehicle to use a single KEY EVENTS IN 2015 ticket to travel to the port of Valencia or Trasmediterranea decided to enhance back to their point of origin in mainland connections between the port of Almería Spain, or by ship to Formentera via Ibiza. and Algeria, a country with a high growth To enhance rate and a very attractive destination for For the high season on the Strait of connections many Spanish companies in a wide range Gibraltar routes, Trasmediterranea of industries. To this end, it assigned a increased the number vessels to 10 and between Almería vessel with capacity for 1,256 passengers offered 25,000 seats per day each way, and Algeria, and 300 vehicles. connecting southern Spain (Algeciras, Almería and Málaga) with Ceuta, Melilla, Trasmediterranea In 2015, the Company was awarded the Morocco and Algeria. assigned a ship contract to provide maritime shipping services of public interest on the Málaga- OTHER DEVELOPMENTS with capacity for Melilla and Almería-Melilla routes For the second consecutive year, 1,256 passengers between 2015 and 2017. Trasmediterranea renewed its Shipping Company Service Quality Certificate, and 300 vehicles based on the Spanish State Ports Quality 58 ACCIONA Logistics & Transport Services

Standard. Trasmediterranea is also certified Once again, Trasmediterranea to ISO 9001 (since 1999) and ISO 14001, on sponsored the Melilla Nautical Week environmental management (since 2006). and the Acciona Sailing (Acciona la Vela) programme to offer persons with The Company is also a pioneer in disability access to the sport of sailing. signing Environmental Best Practices Agreements with port authorities as Trasmediterranea retains its lead in evidence of its commitment to being intermodality; 2015 was the first year in among the most environmentally- which combined Bus+Boat tickets were friendly companies in the industry, with sold through the integrated systems of a strong focus on sustainability. Trasmediterranea and Movelia, Spain's leading integrated bus ticket vendor. It is also working intensely on an Over 40,000 passengers travelled using a interdepartmental level to consider the combined ticket in 2015. use of liquefied natural gas (LNG) as fuel for ships, since this would not only

reduce CO2 emissions by over 20% but also eliminate emissions of sulphur and nitrogen gases.

It is examining the scope for using fuels with less than 0.1% sulphur content as well as modifications to ship hulls in conjuction with changes in propeller diameters in pursuit of optimal fuel consumption. ACCIONA Annual Report 2015 59

A mobility app was developed and implemented to provide online confirmation of break bulk cargo collection and delivery

ACCIONA Logistics

ACCIONA Logistics focuses on land warehouses with a total capacity of Additionally, an app was developed and transport and goods logistics as an 423,000 m3, of which 275,000 m3 are distributed to provide online confirmation integral part of the multimodal transport temperature controlled. of LCL cargo collection and delivery. The and integrated logistics value chain in app, together with GPS trackers and partnership with Trasmediterranea. KEY EVENTS IN THE YEAR: thermographs in refrigerated semi-trailers New business lines were launched in 2015, and warehouses, provides total traceability The Company has its own fleet of 278 including: of the temperature and location of refrigerated semi-trailers, 70 of which were foodstuffs throughout the logistics chain. upgraded in 2015; 169 45' refrigerated Refrigerated shipment of fruit and meat containers; 935 container trailers; and between Spain and Algeria. 1,144 20', 40' and 45' containers for construction materials. Weekly groupage (less-than-container load—LCL) shipments by land between It also has 11 crossdocking warehouses Barcelona, Seville and Casablanca spanning 36,000 m2 and two freezer (Morocco) to supplement the temperature-controlled full container load (FCL) and LCL service to the Canary Islands, Balearic Islands, Ceuta and Melilla.

Refrigerated FCL shipments from Morocco.

Transportation by road of construction material, particularly between Spain and North Africa. BESTINVER 2015 ended with double-digit returns

Good performance by the Bestinver team resulted not only in strong returns but also in a portfolio that will continue to provide returns in the future.

Bestinver, S.A. is wholly owned by ACCIONA. It was a positive year for the mutual funds Through subsidiaries Bestinver Gestión, S.A. managed by the Company. Not only did and Bestinver Pensiones, S.A., it provides Bestinver achieve good returns, it also asset management services in the form of increased the target value of its portfolios, mutual funds, pension funds and SICAVs. which entails greater appreciation potential The company's third subsidiary is Bestinver for investors in the long term. S.V., S.A., a securities firm with a seat on the Madrid Stock Exchange. To quote Seth Klarman, investors should always keep in mind that the most In 2015, the volume of assets under important metric is not the returns management or advice declined achieved but the returns weighed against by 21% to 5.106 billion euros at 31 the risks incurred. Although equities were December 2015. This decline was due attractively priced early in the year and to a net outflow of managed funds, the equity market advanced (too) quickly, principally in portfolios under advice, things changed in the second quarter. amounting to 1.962 billion euros, partly Thereafter, and until the beginning of 2016, offset by the positive average return investors focused on four big issues: falling obtained on the portfolios that the oil prices, the commodities crisis after Company manages. The average return the end of the Chinese supercycle, the in the period was 11%, resulting in a divergence between the big central banks' 597-million-eurosincrease in assets monetary policies, and political risk. These under management. factors created episodes of uncertainty characterised by significant fluctuations The reduction in assets under management in market prices. After years of truly or advice during the year resulted in a anomalous tranquillity, volatility returned 33% year-on-year reduction in revenues to the markets. Bestinver in 2015 to 92 million euros. Excluding the positive 28-million-euro effect of the sale of the Whereas many investors view this short- stake in Bolsas y Mercados Españoles (BME) term volatility as a threat, Bestinver sees it in 2014, earnings before taxes fell by 27%, as an opportunity, enabling the investment 11% to 66 million euros. Overall, Group net profit team to make the investments required to AVERAGE RETURN IN THE PERIOD in 2015 amounted to 48 million euros, the increase the portfolio's upside potential. third-highest figure ever. We were able to buy into good names at attractive prices. We increased exposure to The number of investors declined by 2% in companies already in the portfolio which 48 M€ 2015, to 59,526. had been punished unfairly by the market. GROUP NET PROFIT We also took profits and reduced exposure ACCIONA Annual Report 2015

to companies whose good performance had Bestinver maintains its commitment reduced their safety margin. in 2016: seek the best for its investors. The Company puts all its energy and In the first quarter, while equities climbed, capabilities into seeking the best possible the investment team built up a war chest long-term returns and it maintains its 12.49% by selling stocks that were approaching conviction that equities are still the best YIELD ON BESTINVER'S MODEL PORTFOLIO their target values. At the same time, the way to achieve this. 2016 promises to IN 2015 team continued working to identify the be challenging, but it will also be replete best companies, and to observe, analyse with opportunities. and value them. This resulted in a Bestinver 'shopping list' and, when the prices were In the past 20 years, Bestinver has received right, we began to buy. a total of 108 awards in recognition of its management performance. About 50% of the portfolio was rotated in 2015. As a result of all the changes, Bestinver's portfolios had around 50% upside potential at 2015 year-end. Additionally, our pension funds and plans 15.60% proved more resilient to the mid-year ANNUAL RETURN market decline and ended 2015 in positive ACHIEVED BY BESTINFOND, COMPARED WITH 9.03% territory, having beaten their benchmarks. BY ITS BENCHMARK

Bestinver's model portfolio, which is applied by the Bestinfond mutual fund, obtained a return of 12.49% in 2015, compared with 6.64% by its benchmark (80% MSCI, 14% IGBM, 6% PSI). Since its creation in 1993, this portfolio has generated an annual return of 15.61%, compared with 9.03% by its benchmark.

It was a complex and demanding year, but the skill of Bestinver's investment team made it possible not only to achieve good returns but also to build a portfolio that will continue to generate returns in the future. 62 HIJOS DE ANTONIO BARCELÓ

HIJOS DE ANTONIO BARCELÓ Export sales and business growth

Internationalisation, with 40% of turnover coming from foreign markets and EBITDA up 4%, shaped a successful year in terms of recognition.

Founded in 1876, Hijos de Antonio Barceló THE WINERIES AND THEIR BRANDS is one of Spain's top 20 wine groups. The The Company has wineries in five of Spain's company focuses on producing, ageing, most prestigious winegrowing areas, where bottling and marketing quality wines, and it operates various business lines: operates in Spain and in other countries. Ribera del Duero, Rueda and Toro International business accounts for 40% Denominations of Origin account for 30% of turnover, while the Company's exposure of the wine group's total turnover, mainly to leading Spanish Denominations of under the Viña Mayor brand, which covers Origin provides it with diversification and wines from all three districts. potential to expand. America accounts for 24% of sales, and Europe for 15%. Rioja Denomination of Origin: the Glorioso and Cosme Palacio brands are the key assets of Bodegas Palacio. Turnover increased by 11% in 2015 to account for 27% of the total.

Quality rosé wines by Bodegas Peñascal (Valladolid). Peñascal, Spain's leading rosé wine brand, accounts for 18% of total turnover. ACCIONA Annual Report 2015 63

Hijos de Antonio Barceló was ranked 16th in the Top 100 Wineries of the World and 4th among Spanish wineries

Aperitif and other sweet wines, and product mix and improved unit returns. As wines from Castilla y León, account for a result, EBT increased by 15% and EBITDA the remaining 25% of turnover. by 4%. Notable events in 2015:

The Company, which combines tradition Hijos de Antonio Barceló was ranked and innovation in the winemaking 16th among the Top 100 Wineries of the process, is certified to the following World and 4th among Spanish wineries. standards: ISO 9001 (Quality Management Systems), ISO 14001 The Company continued to work on (Environmental Management Systems), enhancing its brands through advertising and ISO 22000 (Food Safety Management in the media and at events. Systems). Moreover, as a reflection of its commitment to the environment, our The Cosme Palacio brand was revitalised Ribera del Duero vineyards conform to the and the Cosme Palacio 1894 red 2012 EU rules for organic wine. The Company achieved 95 points in the Peñin Guide. is a member of Wineries for Climate Protection and plays an active role in The Bodegas Palacio winery and activities to promote sustainability. surroundings are being refurbished. Work is scheduled to be completed in the first Greater focus on our main brands, which quarter of 2016. expanded sales by 13% in a market that grew by just 2.8%, coupled with process Optimisation of logistics and optimisation, resulted in a change in operational processes will enable us to be more competitive. INNOVATION Innovation as a tool for achieving excellence

ACCIONA challenges its innovation capacity with the goal of creating value in products and services.

At ACCIONA, innovation is the primary R&D&i spending source of sustainability, competitive (millions of euros) advantage and efficiency enhancement in all business units. Innovation at 88.1 93.6 166.2 173.2 174.9 180.4 ACCIONA focuses on creating value in products and services through distinctive technology, anticipating customers’ needs and requirements.

ACCIONA continues to focus on advanced technologies. In view of the progress being made in such fields as the Internet of Things (IoT), mobility, Big Data, Advanced Analytics and Digitisation, initiatives are being developed in business areas to place 2010 2011 2012 2013 2014 2015 ACCIONA in the vanguard in terms of innovation. The company has also renewed and extended strategic alliances with various globally-renowned universities and technology centres. ACCIONA Annual Report 2015 65

In 2015, ACCIONA stepped up its efforts retained 5th place among Spanish in the area of innovation, with record companies and ranked 144th in Europe expenditure in this area of €180.4M in terms of R&D&i spending, according €180.4M on 141 projects. Projects outside Spain to the 2015 EU Industrial R&D Investment ACCIONA'S account for 45.8% of the Group's total Scoreboard, drafted by IRI—Economics of LARGEST-EVER spending on innovation. Industrial Research and Innovation. INNOVATION In February 2014, the European The world innovation ranking drawn up by SPENDING Investment Bank (EIB) granted ACCIONA global consulting firm Strategy&, which a €120M loan to finance its four-year selects the 1,000 listed companies with the programme (2013-2016), which will highest R&D&i spending, ranks ACCIONA cost €240M. Accelerating innovation in 468th place, and 5th in Spain, due to its at ACCIONA was evidenced in the extensive innovation efforts, with spending document support for the first two annual that is several multiples of the average in instalments delivered in 2015 to the EIB's its industry in Europe. satisfaction. They evidence expenditure of €206.4M, amply exceeding the necessary ACCIONA works with entrepreneurs, 50% threshold in the two-year period. start-ups and suppliers to enable their +45.8% innovations to reach the market thanks TOTAL ACCIONA maintains its position in the to the Group's procurement policy. This INTERNATIONAL main innovation rankings. ACCIONA initiative, which has been implemented INNOVATION in recent years, received the 2015 66 INNOVATION

ACCIONA's innovation policy continues to receive international accolades:

'CEMEX project' award ‘Infraestructura 360º’ award

Granted for industrial This prize is granted by the Inter- engineering, with the American Development Bank (IDB) Special Award for Process to recognise sustainability in Innovation and Construction infrastructure projects implemented in Techniques in the Ventika Latin America and the Caribbean. It and Ventika II wind farms was awarded to the Eurus wind farm located in the municipality (250.5 MW), located in the state of General Bravo, Nuevo of Oaxaca, Mexico. León, Mexico.

National recognition in Spain:

XIV ‘Fundación Torres Quevedo’ award

Award for "Business Cooperation" due to the company's links with the University of Cantabria (UC), to which the Foundation is attached. The award is in recognition of ACCIONA's track record of cooperation with UC's research groups. ACCIONA Annual Report 2015 67

Comprendedor award from Fundación Innovation spending by business Empresa y Sociedad. 5% 7% 3% 2% 4% 11% 10% 11% The strategic plans, which were designed 25% 20% 22% 10% in 2014 with input from the business areas, the technology R&D&I centres and senior management, contributed to an increase in 38% 38% 30% 43% 50% 44% business-focused innovation in 2015.

ACCIONA's commitment to innovation and its R&D&I management system 47% 30% 47% 33% 35% 35% successfully passed the maintenance audit by AENOR under the UNE 166 0002 2010 2011 2012 2013 2014 2015 standard, in the updated 2014 version, which required ACCIONA to react and Other Agua Construction / Engineering Energy adapt in record time, achieving certification that same year. PUBLISHED BY: ACCIONA, S.A. Department of Corporate Image and Global Marketing Avda. de Europa, 18. Parque Empresarial La Moraleja. 28108 Alcobendas. Madrid. Spain Twitter: @acciona facebook.com/acciona linkedIn.com/company/acciona youtube.com/accionacorp instagram.com/acciona www.acciona.com

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