acciona corporative (en)

ACCIONAPIONEERS IN DEVELOPMENT AND SUSTAINABILITY

contents

0Mission,

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. 0Key figur

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. 0Business

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. 1ACCIONA

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vision and areas worldwidevalues

3A str

2.ategy

3ACCIONA

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3R&D and

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. Inno

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. for new approach Innovation ACCIONA, by challenges management the numbers

ACCIONA is one of Spain’s leading corporations, a front-runner in promoting and managing infrastructures, renewable energies, water and services. The Company goes back a hundred years and is made up of 30,000 professionals, and it is to be found in thirty countries on five continents. ACCIONA is an Ibex-35 listed company and an industry benchmark. In 2011, it posted 6.46 billion euro in revenues.

ACCIONA’s position as a pioneer in sustainability and development expresses its ability to use its full range of business activities to respond to the challenges posed by sustainable development. Among other specific commitments, ACCIONA sets out to gradually reduce its carbon footprint and lead the way towards a low-carbon economy. As a result, ACCIONA’s activities and businesses avoided 11.7 million metric tons of CO2

emissions to the atmosphere in 2011.

ACCIONA’s strategy revolves around sustainability principles and social wellbeing as vectors for economic growth, environmental balance and social progress. This commitment is underscored by the fact that the Company is a component of several highly reputed sustainability indices, such as the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Stoxx Sustainability Index (DJSI Stoxx), in which ACCIONA obtained the highest score in its sector. In 2012 it ranked 37th —the top Spanish company— in the Global 100 Most Sustainable Corporations in the World, a table compiled by Corporate Knights.

ACCIONA’s has consolidated its bet on innovation by stepping up investment and coming up with more and more projects, programmes and resources. Our intention is clear: we aim to continue to lead the field in more sustainable solutions and alternatives.

ACCIONA, pioneers indevelopment and sustainability

4 // 5 MISSION, VISION AND VALUES

mission, vision and values

Our MISSION is to be leaders in building, developing and managing infrastructure, energy and services, and to contribute actively to social well-being, sustainable development and value creation for our stakeholders

Our VISION is to face the challenge of achieving sustainable development in all of our business areas so that the generations of today and tomorrow will have a better life

Our values

HONESTY: We strive for transparency, dialog and participation in all of our actions. LEADERSHIP:

We believe that innovation and foresight will allow us to be pioneers and leaders in future trends in all aspects of our business activity. EXCELLENCE:

ACCIONA aims to set the benchmark in the markets where it operates. CONCERN FOR THE

ENVIRONMENT: In 2011, ACCIONA avoided the emission of 11.7 million metric tons of CO2, an increase of 3% on 2010. SOCIAL RESPONSIBILITY:

ACCIONA’s commitment to sustainable development is evidenced by its ranking as a sector leader in the Dow Jones Sustainability Index in recent years.

LONG-TERM VIEW:Our pledge to sustainability confirms our commitment to finding forward-looking solutions and business models. FINANCIAL STRENGTH:

We guarantee the viability and profitability of our businesses, creating a relationship of trust with our shareholders and stakeholders. CUSTOMER FOCUS:

Our customers’ satisfaction is one of the fundamental principles of our bid for excellence. INNOVACIÓN:

One of ACCIONA’s strategic pillars. CARE FOR PEOPLE:

Our system is based on integration and equal opportunities. We aim to create a work environment that promotes professional development, and respect for our employees’ personal lives, as well as their health and safety.

6 // 7 KEY FIGURES

SHARE PERFORMANCE JANUARY-DECEMBER 2011

Starting price (€) 53.11

Final price (€) 66.73

Appreciation (%) 25.6%

Low in 2011 (€) 51.43

High in 2011 (€) 80.47

Market capitalization at 31 December (million euros) 4,241

STOCK VS. IBEX 35 PERFORMANCE IN 2011

60% ACCIONA IBEX 35

50%

40%

+26%30%

20%

10%

0%1-11 2-11 3-11 4-11 5-11 6-11 7-11 8-11 9-11 10-11 11-11 12-11

-10% -13%

-20%

-30%

DIVIDEND YIELD (1) (%)

4.4% 4.4%

(1) Dividends as a % of the average share price in the year.

2010

2011

TURNOVER (million euros)

CHANGE (%)

2010 2011 11/10

Infrastructure 3,121 3,522 12.9

Real Estate 204 104 -48.9

Energy 1,497 1,650 10.2

Logistics & Transport 777 714 -8.1

Water & Environmental Services

732 697 -4.8

Other Businesses and Financials 119 135 13.6

Consolidation Adjustments -187 -177 n.a.

Turnover 6,263 6,646 6.1

CHANGE (%)

EBITDA (million euros)

2010 2011 11/10

Infrastructure 204 215 5.6

Real Estate 23 12 -49.7

Energy 821 956 16.4

Logistics & Transport 74 25 -66.6


60 55 -8.6



EBITDA 1,211 1,312 8.3

EBT (million euros)

CHANGE (%)

2010 2011 11/10

Infrastructure 97 123 26.5

Real Estate -6 -51 n.a.

Energy 81 101 24.1

Logistics & Transport 10 -34 n.a


23 18 -22.5



Extraordinary items 0 12 n.a

EBT 240 224 -6.8

TURNOVER (million euros)

6,646

2010

2011

6,263

BITDA (million euros)E

1,312

2010

2011

1,211

E BT (million euros)

240

2010

224

2011

8 // 13 LÍNEAS DE NEGOCIO

ACCIONA’s businessesINFRASTRUCTUREACCIONA Infrastructure operates in two main business areas: civil engineering and building. This division’s operations involve all areas of construction, from engineering to project execution and subsequent maintenance. The Company also has several specialized units such as metal structures workshops, machinery pool, an infrastructure maintenance area, and installation and

engineering divisions. ACCIONA Concessions manages infrastructure transport concessions, including highways, toll roads, railway lines and ports, as well as social infrastructure, such as hospital and school services concessions, in Spain and in other countries. ACCIONA Infrastructure approaches each initiative with consideration for environmental, social and economic factors. It also uses cutting-edge

technology to develop and apply the most advanced materials and the most sustainable construction processes.

///// KEY FIGURES

Jan-Dec 10 Jan-Dec 11 Change(%)

Revenues (€m) 3,121 3,522 12.9

EBITDA (€m) 204 215 5.6

Margin % 6.5% 6.1%

31 Dec 10 31 Dec 11 Change (%)

Portfolio (€m) 7,258 6,497 -10.5

% international 38% 41% +3pp

10 // 11 BUSINESS AREAS

ENERGYACCIONA Energy, which has more than 20 years of experience, operates globally in the field of renewable energy. It is one of the leading developers and operators of wind farms worldwide and it designs and manufactures wind turbine generators using proprietary technology developed by ACCIONA Windpower. The Company also has assets which use other clean technologies, including solar thermal, photovoltaic, hydro, biomass, biofuel, and cogeneration.

Through its subsidiary ACCIONA Green Energy, ACCIONA Energy sells renewable electricity to large clients. The Company also supplies charging infrastructure for electric vehicles.

ACCIONA Energy is one of the world’s foremost wind power developers

///// KEY FIGURES


Revenues (€m) 1,497 1,650 10.2

EBITDA (€m) 821 956 16.4

Margin % 54.9% 57.9%

31 Dec 10 31 Dec 11 Change(%)

Total installed capacity- wind (MW) 6,270 6,921 10.4

Total installed capacity(MW) 7,587 8,211 8.2

Total output (GWh) (Jan-Dec) 18,574 17,749 -4.4

REAL ESTATEACCIONA Real Estate develops and manages real estate. This company develops homes, and it develops and manages rental properties (offices, shopping centers, hotels and university apartments). All ACCIONA Real Estate projects are in line with eco-efficiency standards which focus on energy saving,

rational water consumption, improvements in habitability and sustainable design.

///// KEY FIGURES


Revenues (€m) 204 104 -48.9

EBITDA (€m) 23 12 -49.7

Margin % 11.4% 11.2%


GAV (€m)* 1,683 1,621 -3.7

Housing stock (#) 1,177 961 -18.4

* 2010 Proforma re-expressed in comparable terms, including the same assets portfolio existing at Dec. 2011, excluding assets sold-off during 2011

12 // 13 EL NEGOCIO DE ACCIONA

LOGISTICS AND TRANSPORT SERVICESACCIONA Logistics & Transport Services operates in passenger and goods transport through the following specialized companies: ACCIONA Trasmediterranea is the principal passenger and freight shipping company in Spain, and one of the biggest in Europe; ACCIONA Airport Services is specialized in airport management and handling; ACCIONA Logistics provides goods distribution and storage services;

ACCIONA Rail Services provides railway transport of cargo; and ACCIONA Forwarding offers tailored logistics solutions.

///// KEY FIGURES


Revenues (€m) 777 714 -8.1

EBITDA (€m) 74 25 -66.6

Margin % 9.5% 3.4%


No. Passengers 3,090,398 2,643,497 -14.5

Linear meters of cargo handled 5,797,608 5,361,484 -7.5

Vehicles 721,770 621,193 -13.9

14 // 15 BUSINESS AREAS

WATER AND ENVIRONMENTAL SERVICES This business line includes a range of services related to end-to-end water management, street cleaning, security, and maintenance of installations and green areas for the public and private sectors. These services are provided through ACCIONA Agua, ACCIONA Environment, ACCIONA Urban Services, ACCIONA Facility Services and ACCIONA Security Systems.

ACCIONA AGUA Provides the following services: water treatment; design, construction and operation of drinking water plants, wastewater treatment plants, tertiary treatment of wastewater for reuse, and reverse osmosis desalination (both seawater and brackish water). It provides end-to-end water services for cities, including management of reservoirs and the water distribution network; treatment, distribution and supply of drinking water; management of water supply and sewer networks; and ancillary services. ACCIONA Agua currently operates on five continents, supplying water to 50 million people.

///// KEY FIGURES


Revenues (€m) 732 697 -4.8

EBITDA (€m) 60 55 -8.6

Margin % 8.2% 7.8%


Water portfolio 4,812 4,783 -0.6

% international 39% 36% -3pp

OTHER ACTIVITIESACCIONA also operates in other sectors, providing fund management and brokerage services through Bestinver, producing top-quality wines through Hijos de Antonio Barceló, and designing and developing expositions, museums and shows through GPD (General de Producciones y Diseño).

///// KEY FIGURES

Jan-Dec 10 Jan-Dec 11 Change (%)

Revenues (€m) 119 135 13.6

EBITDA (€m) 46 55 19.6

Margin % 38.6% 40.7%

31 Dec 10 31 Dec 11 Change (%)

Bestinver - Assets under management 5,357 5,240 -2.2

The 2011 Annual Report includes more detailed information on all of ACCIONA’s activities, by business area.

ACCIONA’s operations worldwide

16 // 17 ACCIONA WORLDWIDE

WIND ENERGY SOLAR ENERGY INFRASTRUCTURE WATER REAL ESTATE

CANADA

USA

AUSTRALIA

CHILE

BRAZIL

COLOMBIA

POLAND

HUNGARY

CROATIA

GREECE

INDIA

PORTUGAL

MEXICO

DOMINICAN REPUBLIC

VENEZUELA

SOUTH KOREA

PANAMA

PERU

ALGERIA

GABON

UNITED KINGDOM

ITALY

UAE

SPAIN

GERMANY

SOUTH AFRICA

The weak outlook for growth in the European Union in general, and in Spain in particular, highlighted the importance of ACCIONA’s international strategy to identify opportunities in countries that have demonstrated more resilience to the global financial crisis. In 2011, ACCIONA continued to focus its international expansion on emerging economies such as Latin America and the Asia-Pacific region, as well as on mature economies such as Canada

and the US. The Company continues to expand its presence in countries where it already operates and is actively pursuing opportunities in the Middle East and North Africa, which offer attractive prospects for expansion following the recent political unrest.

The other markets where ACCIONA operates offer a better macroeconomic situation, but also present major obstacles. Fierce competition from both local and other foreign players is

putting downward pressure on margins; as a result, the Company must constantly strike a balance between growth and profitability. One way that ACCIONA addresses this challenge is by focusing on more complex sectors which require a technological component for which the Company is uniquely positioned. In infrastructure, ACCIONA offers innovative design structures and unique R&D experience in port, railway and tunnel construction. In energy, ACCIONA has an

ACCIONA Energy commenced operation ofits third wind farm in India and will begin construction in

2012 of its fourth facility


unparalleled track record in developing landmark projects using a range of renewable technologies. And in water, the Company is a leader in reverse-osmosis desalination and large, complex wastewater treatment plants.

ACCIONA will face even greater challenges as it continues to grow, including strengthening its international footprint, leveraging existing platforms to expand its presence across divisions, and entering new markets. Milestones in 2011 exemplify ACCIONA’s continuing success in these endeavors.

AustraliaAustralia is a key market for expansion, and 2011 was an important year for both the Company and the country. Australia’s government took measures to fight climate change, approving actions to promote renewable energies, and launched a CO

2 emissions market, which

will be the largest of its kind outside Europe.

Australian Prime Minister Julia Gillard and José Manual Entrecanales, Chairman & CEO of ACCIONA, inaugurated the Gunning wind farm in New South Wales in July. This wind farm (46.5 MW), which cost AU$147m, will produce enough renewable energy

to serve 23,250 households, reducing dependence on fossil fuels and avoiding the emission of more than 162,750 metric tons of CO

2 each year. Gunning is

ACCIONA’s third company-owned wind farm in Australia. Its three wind projects (one of which is a joint venture) provide enough electricity to meet the needs of more than 200,000 households.

ACCIONA achieved a new milestone in November 2011 in relation to the Legacy Way Tunnel project: the Mayor of Brisbane, Graham Quirk, commissioned and named the two tunnel boring machines to be used.

20 // 20 LOREM IPSUM

ACCIONA was chosen in consortium to design, build, operate and maintain the Legacy Way Tunnel, in the state of Queensland. The 10-year contract, worth AU$1.5b, will improve traffic and connections with downtown Brisbane.

The Company continued to reinforce its presence in the Australian water market in 2011. In February, the Helena Water consortium, comprising ACCIONA Agua, Trility, United Utilities Australia, Brookfield Multiplex and Royal Bank of Scotland, was chosen to design, build and operate a drinking water plant in Mundaring, Perth. This project is the first public-

private partnership (PPP) in Western Australia and ACCIONA’s first venture in the state.

The first phase of the Adelaide desalination plant (AU$1.83b), in Port Stanvac, was completed in August. The expansion will be complete at the end of 2012, providing 300,000 m3 of drinking water daily, i.e. half of Adelaide’s needs. ACCIONA is part of AdelaideAqua, the consortium which will design, build and operate that plant for 20 years; this reverse osmosis plant, powered by renewable energy, will be one of the largest in the world.

BrazilIn 2011, ACCIONA obtained a contract from LLX-OSX (EBX Group) for the engineering, design and construction of a breakwater at a shipyard in São João da Barra. It will be the largest in Latin America and will serve as an example for naval construction in the country. The Açu shipyard is part of a macro-project being developed by EBX Group, which is owned by Eike Batista. The project includes a super-port, which will have several port terminals and will accommodate large freight ships.

ACCIONA was chosen by Banco Santander to build its Data Processing Center


in the city of Campinas, Brazil, to support the bank’s operations in Latin America. The project calls for the construction of a complex with a floor area of 89,000 m2, including two data centers (each more than 28,000 m2) and a logistics center. The buildings will be equipped with cutting-edge technology and communications equipment to house and support the bank’s IT systems.

ACCIONA completed the sale of a car park concession in Brazil in 2011 to local company Horapark, in line with its car park divestment plans. The assets in Spain and Andorra were sold to the EQT mutual fund. ACCIONA maintained its 25-year contract with

Brazil’s National Land Transport Agency (ANTT) to operate and maintain the BR-393/RJ, a 200-kilometre highway in the state of Río de Janeiro.

ACCIONA also obtained a technology transfer contract to operate and maintain a wastewater treatment plant in Arrudas, in the state of Mina Gerais.The Company has a team of almost 600, the majority of which are engineers; its headquarters are in São Paulo and it is also opening new offices in the states of Brasilia and Río de Janeiro.

CanadaIn 2011, ACCIONA commenced operation of the Lamèque wind farm (45 MW), which cost

CAD115m to build. The wholly-owned ACCIONA facility will provide enough emission-free electricity to power 8,000 households. The commissioning of the Lamèque wind farm brings ACCIONA Energy’s total to four in Canada (181 MW in all), three of which are joint ventures with local companies, such as Suncor and Enbridge.The Lamèque project is the result of cooperation and leveraging of existing synergies between ACCIONA Group’s business units. ACCIONA Energy developed the facility and will operate it, ACCIONA Windpower supplied the turbines, and ACCIONA Infrastructure, in a joint venture with Canada’s Tetra Tech, built the


facility (including the civil engineering works) and assembled the turbines and the power off-take infrastructure.

Canada remains one of the most promising countries for ACCIONA’s infrastructure division, as evidenced by the five major projects it is developing under PPPs.

The Windsor Essex Mobility Group joint venture will build and operate a road in Ontario; the project office opened in March 2011 and construction got under way in August. Other large road concessions under construction include the Southeast Stoney Trail in Alberta and the new A-30 Châteauguay-Vaudreuil-Dorion in Quebec.

The ACCIONA-managed Royal Jubilee Hospital (British Columbia) became operational in 2011. ACCIONA Facility Services provides the cleaning and maintenance services. This is ACCIONA Facility Services’ first international services contract, and evidences the parent company’s success in expanding several lines of business simultaneously in a single country.

Construction continues on the Fort St. John Hospital in British Columbia. ACCIONA, which heads the consortium, will manage the hospital for 30 years. This is the Company’s second hospital concession in Canada under a PPP.

ChileACCIONA has been operating in Chile since 1993. The Infrastructure division was the first of the company’s businesses to open an office there, and was followed by ACCIONA Energy and ACCIONA Agua.

ACCIONA was awarded two projects in 2011 by Grupo CAP: a 20-year contract to design, build, commission and operate a seawater desalination plant in Valle de Copiapó (Atacama region), and a contract to build pipelines for desalinated water and ore concentrate slurry as part of the Cerro Negro Norte mining project. The latter represents the development of a comprehensive solution

for transporting iron ore concentrate from the CNN mining plant to the filtering plant, in Puerto Punta Totoralillo, via a special slurry pipeline. ACCIONA Agua, which was awarded the contracts, will work with ACCIONA Infrastructure during the construction phase—yet another example of cooperation between the Company’s divisions. These projects are expected to become operational in 2013.

In 2011, ACCIONA reached an agreement to sell its holdings in the “Autopista Vespucio Sur” and “Red Vial Litoral Central” toll road concessions in Chile to Italian group Atlantia, for €293m.

ColombiaThe Infrastructure division was awarded three major contracts in 2011. Firstly, it is to build a 170-kilometre gas pipeline between Apiay and Monterrey for state-owned company Ecopetrol. Secondly, it commenced the construction of phase II of a 36-kilometre gas pipeline for Transportadora de Gas Internacional, a local company owned by State-company Energía de Bogotá. Thirdly, Empresa de Acueducto y Alcantarillado de Bogotá awarded ACCIONA a contract to build the sewer and storm drain systems in Bello Horizonte neighborhood, in Bogota.

The Chairman of Adif, Antonio González Marín,

and the President of ACCIONA Infrastructure, Pedro Martínez, signed a cooperation agreement in September 2011 to develop railway projects in Colombia, including the construction of new corridors and the refurbishment of existing ones, as part of the Colombian government’s 2011-2014 modernization plans.

ACCIONA is also involved in logistics and transport works in the country, and its winery, Hijos de Antonio Barceló, has sales offices there.

USAACCIONA has 662 MW of installed wind capacity and 64 MW of solar

thermoelectric (CSP) energy in the US. Outside Spain, the US is the Company’s biggest market for renewable energies, with investment totaling US$1 billion. In 2011, ACCIONA built the Dempsey Ridge wind farm (132 MW), in Oklahoma. The facility is 100% owned by ACCIONA and is the Company’s sixth wind farm in the US.

It will generate clean energy equivalent to the needs of 46,000 households, avoiding the emission of 339,000 metric tons of CO

2 into the

atmosphere each year.

ACCIONA operates the largest seawater desalination plant in the US, located in Tampa Bay, Florida; the

plant uses Reverse Osmosis technology and is managed in a joint venture with American Water.

IndiaACCIONA was the first Spanish company to develop and operate a wind farm in India. ACCIONA Energy commenced operation of its third facility in India, the Tuppadahalli wind farm (56 MW), which cost €58m.Just like its two other wind farms in India, Tuppadahalli is registered as a Clean Development Mechanism (CDM) under the Kyoto Protocol. ACCIONA continues to grow in India, and has installed capacity of 85.8 MW, making it the leading Spanish wind farm developer there with proprietary

28 // 28 LOREM IPSUM

assets. ACCIONA Energy will commence construction in 2012 of its fourth wind farm (100 MW), which will more than double its capacity in the country.ACCIONA Infrastructure and ACCIONA Agua opened offices in New Delhi with a view to expanding their activities in India.

ItalyACCIONA’s three main business areas operate in

Italy. In energy, the Company focuses mainly on wind; Italy is the sixth-largest wind market in the world. ACCIONA Energy is currently building its fourth wind power facility in the country: the Santa Ana wind farm (64 MW), in the Calabria region.ACCIONA Agua has 40 projects in Italy, ranging from drinking water to wastewater treatment, serving over 2.5 million people. In December 2011, the company was

awarded the contract to upgrade one of the largest waste water treatment plants in Italy and the largest in Sardinia.

ACCIONA is also focusing on transport infrastructure and hospitals in Italy.

MexicoIn view of its geographic location and cultural factors in connection with North and Latin America, Mexico is

especially attractive for the Company as a strategic region for international growth. ACCIONA commenced operations there in 1978, when it opened its first Infrastructure office; since then its Energy, Water and Real Estate divisions have all opened offices. ACCIONA currently employs more than 800 people in Mexico.

The Company built three 102 MW wind farms in

Oaxaca in 2011 (306 MW in total) and grid-connected them, making for the largest wind farm complex in Latin America. The three farms have 204 wind turbines (1.5 MW of capacity each) manufactured by ACCIONA Windpower. The complex was inaugurated by the President of Mexico in March 2012. These three farms are in the same region as the 205.5 MW Eurus wind farm built and operated by

ACCIONA since 2009 to supply electricity to the CEMEX cement plants.In total, ACCIONA Energy has 556.5 MW, accounting for 65% of Mexico’s total wind capacity; it is the Company’s third most-important country in terms of renewable energy facilities, after Spain and the US. ACCIONA also has a wastewater treatment plant


in Atotonilco (Mexico City) which was named “Water Deal of the Year” by Global Water Intelligence magazine in 2011. This distinction recognized the ability of the consortium and the Mexican government to complete a US$900m financing package just seven months after signing the contract, which will allow for the construction of the world’s largest wastewater treatment plant.

ACCIONA Infrastructure was awarded 5 contracts, most of them in transport projects. ACCIONA Infrastructure and ACCIONA Engineering are working on industrial works and social infrastructure, especially projects linked to hospitals.

ACCIONA Real Estate commenced sales of phase II of PlayaMar Tres Cantos, in Playa Diamante beach, one of the fastest-growing areas of Acapulco. ACCIONA Real Estate will continue to focus on the residential segment and will shortly commence two additional projects in Mexico City.

PolandPoland is one of the most important infrastructure markets for ACCIONA. The Company has been operating in the country since 1999 via its subsidiary, Mostostal Warszawa, one of the Poland’s largest construction companies.

Mostostal was awarded more than 50 transport, social

and industrial infrastructure contracts in 2011, and currently has 120 projects under construction, including the Lublin Oncological Hospital (496 beds), several sections of road, a terminal at Warsaw’s Modlin Airport, a 20 MW biomass plant, and the expansion of mining installations.

The Company inaugurated several projects in 2011, including a 122-metre high bridge over the Odra River (one of the largest cable-stayed bridges in Europe), a section and junction of the Wrocław bypass, buildings in various Polish universities, a concert hall and headquarters for the Philharmonic Orchestra of Olsztyn, and a refinery.

In 2011, ACCIONA Energy built its first wind farm in Poland, in Golice (38 MW), and will build a second, 33 MW facility in 2012, further expanding ACCIONA’s renewable energy assets and projects in the country.

New markets In 2011, ACCIONA expanded its presence with several projects in new markets, such as the contract to build, design, operate and maintain the Escalerilla waste water treatment plant in Peru. The plant will help solve the health and environmental problems in Arequipa, the country’s second-largest city.

The Company will also design, build and operate the Chiripa wind farm in Costa

Rica (50 MW). This contract will boost the incipient development of wind energy in the country, which had 179 MW in total at the start of 2011.ACCIONA also operates in North Africa and the Middle East. The Company started up its first desalination plant in Algeria. A consortium comprising ACCIONA Agua and Canadian company SNC Lavalin will operate the plant for a 25-year period, in partnership with state-owned Algerian Energy Company. The Company has built four drinking water plants in recent years in Egypt. In early 2011, it completed construction of a wastewater treatment plant (100,000 m3/day), which it will

operate during the warranty period. It continues with the construction of four additional wastewater treatment plants there.From its offices in Abu Dhabi, ACCIONA serves the entire Gulf region, where there are major opportunities in railway, water desalination and renewable energy infrastructure.

In December, ACCIONA commenced construction of the Jelinak wind farm (30 MW) in Croatia, where it has been working on business development in the last few years.

32 // 33 UNA ESTRATEGIA PARA LOS NUEVOS DESAFÍOS

Opportunities and challenges whichdefine the success of sustainable businesses Over the course of this decade, we will face a

wide range of challenges requiring innovative strategies that address all of the major forces at play, the relationships between them, their effect on business

A strategy for new challenges

and the implications for achieving sustainable development. Sustainable practices are a strategic capability of ACCIONA, and the issues addressed in the

Sustainability Master Plan (SMP) are important for the Company’s competitiveness.In 2011, the Sustainability Committee and the Company’s management

approved the structural measures in the Sustainability Master Plan, applicable to all ACCIONA projects worldwide.

34 // 35 ACCIONA’S APPROACH

ACCIONA’s approach: Sustainability Master Plan 2010-2015El ACCIONA’s Sustainability Master Plan (SMP) is the roadmap which covers all sustainability-related activities, drives initiatives and generates new competitive capabilities. The process to update and revise the scope of the SMP extended ACCIONA’s strategic commitment, with more ambitious goals through 2015.

Adaptation of the Plan and its extension until 2015 were based on two principles: greater proximity and links to the business, and an

increase in competencies and skills focused on sustainable development.

The SMP 2015 is structured in nine work areas, unified by a guiding principle and broken down into objectives that make it measurable. They include:

SMP 2015

Environment

Society

People

Value Circle

Good Governance

Stakeholders

Dissemination & Leadership

Accountability

Innovation

///// INNOVATION

Innovation in technology, operations and design are the mainstays of competitiveness. 500 million euros in R&D expenditure in 2010-2015. Double the patent portfolio (baseline: 52 patents in 2009). Identify market opportunities in technology and business which reinforce existing businesses and maintain them at the leading edge of their respective sectors.

///// ENVIRONMENT

The environment must be considered when making decisions and in running the business, with a view to reducing our environmental impact.

Reduce the CO2 emissions to sales ratio by 15% (baseline: 2009).Improve the environmental efficiency ratio (baseline: 2009). l By 15% in energy consumption/sales. l By 7% in water consumption/sales. Include the carbon footprint of our suppliers with whom our business transactions exceed €100,000, with a view to reducing it by 2% each year. Implement the Sustainable Mobility Plan (business trips, employee travel, logistics chain) to reduce CO2 emissions by 10% (baseline: 2011).

///// SOCIETY

The Company’s contribution to society and commitment to progress in communities where it operates is based not only on economic impact, but also on early evaluation of their social impact. Implement a methodology to evaluate the social impact of all international projects in the Agua (water), Infrastructure and Energy divisions.

Contribute the equivalent of 5% of the dividend to social action each year. Export the ACCIONA Microenergy Foundation (FUNDAME) energy project to another country.

36 // 37 ACCIONA’S APPROACH

///// OUR PEOPLE

ACCIONA aims to set an example in its commitment to employees by creating a healthy environment, free of discrimination, to attract and nurture talent in the long term.

Reduce the rate of fatal accidents by 20% over three years.Extend the equal opportunities and non-discrimination policy to all ACCIONA companies. Implement variable remuneration linked to sustainability for the Company’s 300 most important executives (TOP 300).Hire differently-abled people so that they account for 3% of the workforce. Implement a single Workplace Health & Safety model certified to OHSAS 18001 in 90% of the countries where we operate.

///// VALUE CIRCLE

The concept of and commitment to sustainability extends to all of our suppliers, subcontractors and collaborators, and includes taking responsibility for their training and the development of new solutions. Mandatory self-assessment questionnaire on sustainability for 100% of the Group’s suppliers with whom business exceeds 100,000 euros.

Training-assessed suppliers on the environment, human and labor rights, and workplace health & safety. Draft a catalog of sustainable products and services in line with responsible procurement commitments.

///// CORPORATE GOVERNANCE

The Company strives to act in accordance with the highest levels of integrity and responsible management, responding to demands for greater information from regulators, shareholders, customers and communities. Train 100% of staff on their obligations under the Code of Conduct. Approve and publish ACCIONA’s book of policies. Mechanism to identify and evaluate long-term risks to sustainability. Formal adhesion to anti-corruption initiatives and implementation of an anti-corruption plan.

///// STAKEHOLDERS

Implementation of the necessary tools to get to know and manage the expectations of those whose opinions count. Organize periodic consultations to review and update relevant aspects of the Sustainability Master Plan. Develop a platform for dialogue with stakeholders at corporate level and in all key markets.

///// DISSEMINATION AND LEADERSHIP

Being recognized as leaders in sustainability requires that we raise awareness about a business model based on opportunities in sustainable development. Incentivize and encourage participation in a social network used by the Company’s top-tier executives

(TOP 100) and followed by at least 10% of the Group’s General Managers. Strengthen the commitment to employees with the sustainability practices contained in the Master Plan. Reinforce ACCIONA’s position as a leader in sustainability.

///// ACCOUNTABILITY

Transparency includes being accountable in the monitoring and performance of the SMP initiatives and in integrating those indicators in management. Include quarterly information on environmental and social indicators in the Company’s earnings report. Approval of the Sustainability Report by the Shareholders’ Meeting. Support the business in the development of specific opportunities, tenders and prequalifications.

R&D and Innovation managementInnovation at ACCIONA integrates the projects carried out in the Technology Centers of the companies, under the Innovation Area Directorate-General, implementing common policies that are reflected in the R&D and Innovation Management System.

The R&D and Innovation Management System implemented at ACCIONA follows the requirements established in UNE 166002:2006, the certification for which was renewed in 2011, and there are now seven companies in ACCIONA which hold it: Corporate, Infrastructure, Energy, Wind Turbine Manufacturing, Water, Installations and Engineering.

ACCIONA has three technology centers, which constitute the pillars of the Company’s research activity.

The Madrid Technology Center leads technological development in infrastructure, construction, transportation and the environment. Specifically, the center focuses on reducing environmental impact and on energy efficiency in building.

The Pamplona Technology Center focuses its R&D and Innovation-related activity on renewable energy.

The Barcelona Technology Center develops lines of research for water management technology. The labs have become a reference in the membrane technology sector.

ACCIONA’s Technology Centers

ACCIONA’s Technological and Competitive Observatory acts as a monitoring and forecasting body for the Company, allowing it to keep abreast of trends in technology, innovation and the market.

Its activity in 2011 has been centered around the following: Monitoring of competitiveness

in the Company, by publishing reports. Establishing knowledge

networks, through meetings, seminars and workshops, with world-level experts. Research into analysis methods

and tools.

ACCIONA’s Technological and Competitive Observatory

38 // 39 R&D AND INNOVATION MANAGEMENT

40 // 41 GESTIÓN I+D+i

Strategic axes for R&D and Innovation in ACCIONARENEWABLE ENERGY

RENEWABLE ENERGY

Solar Photovoltaic

Solar Thermoelectric

Onshore Wind

Offshore Wind Biomass

In 2011, two projects implemented by ACCIONA, in thermosolar and offshore wind power, were selected by the Ministry of the Environment and Rural and Marine Regions to represent Spain in the European macroproject, the New Entrance Reserve 300 (NER300).

In 2011, ACCIONA Energy consolidated Energy Storage as a strategic line of research with with it aims to complie a Storage Solutions catalog.

ACCIONA has received the necessary authorizations to build five experimental farms: Barasoain Experimental Farm (Navarre) Vedadillo Experimental Farm (Navarre) Villanueva Experimental Farm (Asturias) P. Groove Experimental Farm (USA). Experimental CENER Farm (Navarre).

The AW3000 turbines will be tested here, as well as the designs and prototypes for the reinforced concrete tower, carrying out studies on noise emission, strategies for mitigating wind gusts, and the development and testing of coordinated controls for a group of turbines.

Authorization of four new experimental wind farms for AW3000 turbines


SUSTAINABLE CONSTRUCTION

INFRASTRUCTURE

Smart citiesImprovement of processes

Infrastructure from composite

materialsOffshore

Infrastructure built from composite materialsWithin the Cenit TRAINER Project, ACCIONA is working on modeling self-repairing processes using elastic fibres and agents that allow for expansion, which will allow for a reduction in maintenance, with the resulting savings in costs, and in reducing accidents and CO2 emissions.

Process improvementACCIONA is working on the development of high-performance concrete, improving processes in autocompacting concrete

(HAC) and rapid-setting concrete (HFR). As well, work is being done to implement the Building Information Modeling methodology (BIM) in the Company’s work flows, which will bring added value to project bids, increasing quality in the projects and saving time and costs.

Smart citiesIn 2011, ACCIONA finalized the implementation and operation of an electricity micronetwork for the integration and monitoring of renewable energy projects that are under construction.

As well, a monitoring center for energy management of buildings was established.

Monetizing developmentsACCIONA is developing construction elements which incorporate photocatalytic activity into prefabricated or rigid paving concrete, or superficial layers over bituminous underlays. Work is also being done on external coverings (sol-gel or products like it) for building exteriors.


WATER MANAGEMENT TECHNOLOGY

WATER MANAGEMENT TECHNOLOGY

Treatment DesalinationReuse

Water treatment 2011 ACCIONA was awarded two projects in the INNPACTO call for bids, one for the project known as ESPROFAN, for optimizing energy equilibrium and favoring the production of biogas associated with the anaerobic treatment of standing water, and one for NANOBAC, for the study of new nano-engineered materials that may be used as catalyzers in photocatalytic disinfection processes and efficient elimination of emerging pollutants.

ReuseACCIONA’s Plinio Project uses an advanced nitrification system through anaerobic mechanisms, developed at the Rubí WWTP (Barcelona). Trials for this project have allowed for the development of a mathematical model that will allow for the technical specifications of the system to be defined, with the goal of obtaining a more cost-efficient process that improves the quality of the water.

DesalinationACCIONA continues to work on developing a new advanced remineralization system for the post-treatment of desalinated water to obtain a more efficient process that guarantees the quality of the drinking water that is obtained.

The Copiapó desalination plant (Chile)

Drinking water

Brine

Porous layer

Semi-permeable membranes

Separating mesh

SeawaterPressure

Pressure

How the spiral membranes work

1

2

4

3

DESALINATION STATION

MINING PLANT

How a desalination plant works.

Illustration of the ACCIONA Agua facilities in Copiapó NB. Not to scale OCÉANO

PACÍFICO

Seawater capture

Brine dissolved in seawater

Step 1The seawater is filtered to eliminate solids using

sand-filters in a pool.

Step 2The water is filtered and mixed with water under

pressure, the water is taken back to the pool where the light elements float and are eliminated.

ACTIDAFF System, patented by ACCIONAPRE-TREATMENT OF SEAWATER

A mixture made up of 50% of the water captured

and all of the salts.

BRINE Pure desalinated water. Mineral salts are added to make it potable.

WATER PRODUCT

DESALINATION PROCESS

The process involves passing 50% of the water obtained through the membra-ne. Water product is obtained, and the remaining 50% contains the entire mineral salts content.

The brine is discharged back to the sea after being processed by diffusers that help to dissolve the mixture and avoid the accumulation of salts that are harmful to the marine eco-system.

The mining company sells the remaining desalinated water to other mining companies and to local farmers.

The plant captures water from the Pacific Ocean at a depth of 17 meters and transports it to the pumping station located on the shore. From there, the water is transported to the desalination station located 800 meters from the shoreline. After treatment, the water product is pumped to the mining plant.

The seawater is mixed with ground iron ore to aid transport through a pipeline.

Selling on water unused by local farmers will help the local economy and aquifer recovery in the area.

ACCIONA desalination plant in Chile

Section of the installation NB. Not to scale

Water useWhen the plant is working at full capacity:

ACCIONA Agua has commenced work on a desalination plant that will provide water for the iron ore mine in Cerro Negro Norte (Copiapó, Chile). This industrial use of desalinated water will be carried out alongside the production of water for human consumption.

+5,000 m.

Height above sea-level:

+60 m.

0 m.-17 m.

Seawater capture

Pumping well

SeaEarth

Mine

Copiapó Mine

Other mining plants

Local farmers and livestock

DESALINATION STATIONPumping station

(mining plant)

800 m. 80 km.

54,000 m3/day 37,000 m3/day

Total desalinated water

17,000 m3/day

Pumping station (mining plant)

Desalination plant

Chile

Caldera

Copiapó

Chile

Seawater

PRESSURE

Pumping station

The desalination plant is to be built soon near Puerto Punta Totoralillo, in the north of Chile, and is projected to have a desalinating capacity of 200 liters/second, with the possibility of reaching up to 600 liters/second (54,000 m3 /day, approximately).The plant will use reverse osmosis technology with an innovative pre-treatment phase. The ACCDAFF system, developed by ACCIONA, allows the membranes to be protected from external phenomena. The system allows for different kinds of raw water to be treated, and is outstanding because of its competitive cost and respect for the environment.

46 // 47 INNOVATION AT ACCIONA

Innovation atACCIONA by the numbers

ACCIONA increased its investment in R&D&I in 2011 by 6.25% compared to 2010.

R&D investment 93.692.288.1

(millions of euros)

71.3

39

22.6

6.8

2005 2006 2007 2008 2009 2010 2011

Innovation intensity (%)

R&D&I/ R&D&I investment/EBITDA (%) sales (%)

7.3 7.1 1.41 1.41

2010 2011 2010 2011

Changes in R&D investment for each business line (%)

5% 7%

10%25%

38%

38%

47% OTHERS30% AGUA

INFRASTRUCTURE ENERGY

2010 2011

ACCIONA’s position in the European R&D and Innovation Ranking

The annual R&D&I ranking published by the European Commission’s Directorate General for Research (R&D Industrial Scoreboard) puts ACCIONA at the top among electricity and

construction companies in terms of strength in investment (R&D and Innovation investment/sales). Among Spanish companies, ACCIONA

is 8th in the amount of total investment in R&D and Innovation and holds the 1st and 2nd place respectively among construction and electricity companies.

TERNA 2.08%

ACCIONA 1.41%

VATTENFALL 0.88%

ELECTRICITÉ DE FRANCE 0.67%

FORTUM 0.48%

OBRASCON HUARTE LAIN 0.47%

IBERDROLA 0.43%

BOUYGUES 0.37%

RED ELÉCTRICA DE ESPAÑA 0.36%

Cez 0.36%

ACS 0.29%

ENERGÍAS DE PORTUGAL 0.26%

EnBWEnergie BADEN-WURTTEMBERG 0.2%

ENEL 0.12%

* The data from the R&D Scoreboard refer to statistics that were published in 2011 on data from 2010.

48 // 49 INNOVATION AT ACCIONA

Also in 2011, ACCIONA began highlighting innovative initiatives carried out outside Spain. These innovations are found in projects that are

being developed in Canada, the USA, Mexico, Brazil, Chile, Poland and Australia, and are distributed as follows by division:

Number of innovative projects in the businesses, 2011

52.15%INFRASTRUCTURE 1.23%

ACCIONA S.A.

9.82%OTHERS

18.40%ENERGY 18.40%

WATER

Number of patents

78

67

2010 2011

Project portfolio Projects

166163

89 201054 2011

Research Innovative projects projects in the businesses

National and international innovative projects in the businesses

216

27

22

3 ACCIONA S.A.65 8 OTHERS WATER

20 INFRASTRUCTURE ENERGY

National International

The transoceanic sailboat, IMOCA 60, the first racing yacht powered by renewable energy

ACCIONA is combining innovation and competitiveness in the design of the first zero-emissions transoceanic regatta boat. Its ACCIONA 100% Ecopowered energy generation systems are based entirely on renewable sources.

It has taken two years of applied R&D and Innovation carried out in two lines:

development of the zero-emissions sailing concept, and definition and design of the equipment to guarantee and optimize energy supply for all its systems, and; selection and testing of

new-generation materials and of ideal designs for maximizing the boat’s hydrodynamics.

50 // 51 ACCIONA AND THE EL GRECO 2014 FOUNDATION

ACCIONA has committed

itself to a project for future cultural

and social development

“El GrACCIONA is an Official Sponsor

eco”of the ‘El Greco 2014’ commemorations

ACCIONA and the Fundación El Greco 2014 [El Greco 2014 Foundation] have signed a colaboration agreement whereby ACCIONA joined the team of Official Sponsors of the programme of events to mark the 4th Centenary of the death of El Greco.

ACCIONA will be contributing to a cultural project designed and organized by the Foundation and scheduled for 2014. This ambitious Toledo-based (Spain) initiative will feature a number of commemorative events on a regional, national end international scale. ACCIONA has taken on a commitment with a long-term cultural and social project at the regional level. In addition, the Company is now the Official Sponsor of a sculpture project that Cristina Iglesias has been comissioned for Toledo.

The commemoration in 2014 of the death of El Greco has been officially declared “an event of

exceptional public interest”. The Fundación El Greco 2014 was set up on May 13th 2010, and the Honorary Chairs are Their Majesties the King and Queen of Spain.

DOMÉNIKOS THEOTOKÓPOULOS (Candia, Crete; 1541 - Toledo, Spain; 1614) El Greco, the painter who brought together the Greek painting tradition, Venetian color, and Roman design, enjoyed a fantastic and ever-changing career as an artist in Crete, Roma and Toledo; in this latter city he spent more than half of his life. In Spain, the so-called “Greek of Toledo” took his place as the country’s most singular artist during the reign of Philip II and Philip III. He amazed spectators with his complex compositions, his bright colors, his interplay of light and dark, transparency and reflections, his naturalistic skill when representing fabrics or cloudscapes, his boundless

imagination when it came to portraying the supernatural, or his ability to breathe life into pictorial fictions. Spain had never seen anything quite like El Greco’s work, and his complex, intellectualized and overwhelming art caused amazement and admiration but also uneasiness and rejection, above all because he eschewed convention and deliberately flaunted his courage and difference. El Greco used his brushes to create a new world of religious imagery and a revolutionary way of treating and displaying both divine and earthly beings, with such tremendous power that, even today, we are quick to recognize the works of the “Greek of Toledo”.

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