annual report 2013 -...

annual report2013

ACCionA 2013

Contents

4.

key figures

12.mission, vision & values

18.organizational Chart

24.aCCiona 2013

8.message from the Chairman

14.2013 milestones

20.international

92.innovation

a. aCCiona infrastructure b. aCCiona energy c. aCCiona agua d. aCCiona real estate e. aCCiona logistics & transport

services f. aCCiona service g. other businesses: Bestinver h. other businesses: Bodegas hijos

de antonio Barceló ACCIONA’s 2013 Annual Report is available in an online version. Access it by scanning the QR code from any of

various devices.

ACCIONA annual report 2013 5

absent the regulatory changes, eBitDa would have expanded by

3.8% and eBt by 16.7%

the 2013 figures reflect the sharp negative impact of the energy reform in spain, in terms of both operating performance and extraordinary items

Turnover (million euros)

2012 2013 Chg.

Infrastructure 3,326 2,733 -17.8%

Energy 2,107 2,120 0.6%

Water 506 585 15.6%

Services 592 641 8.3%

Other activities 631 641 1.6%

Consolidation adjustments -146 -113

Turnover 7,016 6,607 -5.8%

EBITDA (million euros)

2012 2013 Chg.

Infrastructure 163 82 -49.6%

Energy 1,125 979 -13.0%

Water 41 54 30.5%

Services 18 20 13.5%

Other activities 86 93 7.6%

Consolidation adjustments -3 0

EBITDA 1,431 1,228 -14.1%

EBT (million euros)

2012 2013 Chg.

Infrastructure 70 -28 n.a.

Energy 166 7 -95.9%

Water 23 24 7.6%

Services 2 3 92.6%

Other activities -14 21 n.a.

Consolidation adjustments -1 2 n.a.

ORDINARY EBT 245 29 -88.1%

Extraordinary items 1 -2,203

EBT 246 -2,174 n.a.

Share performance

2012 2013

Starting price € 66.7 56.2

Final price € 56.2 41.8

Variation (%) -15.8% -25.7%

Low in 2013 € 30.5 34.1

High in 2013 € 68.1 64.8

Market capitalization at 31 December (million euros) 3,219 2,391

ACCIONA share performance vs. IBEX 35 in 2013

30%

20%

10%

0%

-10%

-20%

-30%

-40%

1 sep 1 oct 1 nov 1 dec

-25.7%

21.4%

IBEx 35

ACCIONA

The Company presents, in a transparent way, its most important data for the 2013 financial year.

Key figures, aCCiona in numbers

1 jan 1 feb 1 mar 1 apr 1 may 1 jun 1 jul 1 aug

ACCIONA annual report 2013 76 key figures

Turnover (million euros)

2009

6,515

2010

6,263

2011

6,646

2012

7,016

2013

6,607

EBITDA (million euros)

2009

1,043

2010

1,211

2011

1,312

2012

1,431

2013

1,228

Dividend per share (euros)

2009

3.01

2010

3.10

2011

3.00

2012

2.65

20131

0.00

1 Awaiting approval from the General Shareholders’ Meeting.

Net interest-bearing debt (million euros)

2009

7,265

2010

6,587

2011

6,991

2012

7,482

2013

6,715

2009

1,377

2010

986

2011

564

2012

831

2013

278

Ordinary EBT (million euros)

2009

320

2010

240

2011

212

2012

245

2013

29

it was proposed not to make dividend payments out of 2013 income in the context of the major regulatory impact suffered and the objectives for improving the group’s debt and liquidity

the priority is to maintain a strong balance sheet; notable reductions in capex and debt were achieved in 2013

Ordinary net capital expenditure (million euros)


JOSÉ MANUEL ENTRECANALESChairman of ACCIONA

message from the Chairman

Dear Shareholders,

Firstly, I would like to share with all of you my optimism with regard to the global economic recovery under way. In the second half of 2013, the recession ended in the Euro area, US GDP expanded, and most emerging countries recovered from the turbulence they had experienced in the summer. The global economy expanded at an annual rate of close to 3.2% in the first quarter of 2014. In short, a moderate acceleration is expected in 2014-2015, sustained by the developed economies, supported in turn by a combination of fiscal and monetary policies and favorable financial conditions. In fact, the IMF expects global economic growth of 3.6% in 2014 and 3.9% in 2015.

In 2013, ACCIONA was impacted by energy reforms in Spain which, after several regulatory procedures, led to a Ministerial Order that established

new remuneration parameters for renewable energies. As a whole, the various regulatory amendments in 2012 and 2013, and those approved in 2014 (which have yet to be fully detailed), will have an estimated impact of around 370 million euros on our EBITDA for a standard year.

In view of this, ACCIONA reacted in a way that was flexible and proactive, implementing a Plan of Action to mitigate the impact of the regulatory reform and maintain growth and value creation in our Energy and Infrastructure businesses.

In this regard, we focused on two areas of action:

Strengthening our balance sheet and liquidity position, shifting our business model so as to grow in a way that is less capital intensive and drawing on

alternative sources of funding, such as teaming up with financial partners and tapping the capital markets.

Redefining the business model and creating a large Infrastructure division which comprises all of the construction, water and services businesses as a fundamental strategic initiative and as a way to achieve synergies in revenues and costs. The final objective is to improve and optimize our platform so as to achieve sustainable growth in our strategic Infrastructure and Energy businesses, in which we have over a century of experience and are global leaders.

In line with these goals, several decisions have been made which have improved our Company’s operational efficiency:

We have divested renewable assets in Germany and Korea, a hospital concession

in Canada and a rental property, raising approximately 370 million euros.

We placed our first convertible bond issue (342 million euros).

Additionally, and in accordance with our austerity policy, we took the unprecedented decision not to distribute a dividend out of 2013 earnings.

I would also like to highlight progress in the search for a partner for ACCIONA Energy International, and also in our restructuring and cost reduction plans.

Despite these efforts, ACCIONA ended the year with revenues of 6.607 billion euros, 5.8% less than the previous year, and EBITDA of 1.228 billion euros, a decline of 14.1% year-on-year. Ongoing regulatory reforms had a negative impact of 257 million euros on our EBITDA in 2013.

10 Message froM the ChairMan ACCIONA annual report 2013 11

This is the first time since it was listed that ACCIONA has reported a loss (-1.972 billion euros), and it is mainly due to sizeable provisions booked in 2013 to address the regulatory changes in the energy sector. Excluding the regulatory impact, Group EBITDA would have increased by 4% and ordinary pre-tax profit by 17%.

In 2013, ACCIONA Energy contributed 80% of group EBITDA, with 979 million euros. With regard to wind energy, 105 MW were installed, of which 75 MW were outside Spain, bringing the Group’s total capacity to 8,480 MW and strengthening our leading position in the market.

In the area of Infrastructure, the international construction business accounted for 54% of the backlog in 2013, boosting ACCIONA Infrastructure’s revenues to 2.733 billion euros. Our Water business obtained revenues of 585 million euros and EBITDA of 54 million euros. The Water backlog amounted to 10.730 billion euros at 2013 year-end.

As regards capital expenditure, ACCIONA maintained a selective policy in 2013 and invested 381 million euros, of which 205 million euros correspond to ACCIONA Energy and 198 million euros to Infrastructure, mainly in the concession business.

As a result of cash generation by our businesses, net interest-bearing debt amounted to 6.715 billion euros at 2013 year-end, 10% less than in the preceding year. We reinforced our financial structure and cash position, including unused credit lines, to approximately 2.600 billion euros. We do not face any major refinancing needs in the coming years, and 67% of our gross interest-bearing debt is without recourse.

We remain committed to accountability vis-à-vis our shareholders and other stakeholders and, in addition to presenting our financial information, this year we are submitting our third Sustainability Report for approval to the forthcoming Shareholders’ Meeting.

I would like to highlight some specific instances of progress in our Sustainability practices in 2013. These include the approval of ACCIONA’s Policy Book, which sets out our financial, social and environmental commitments and the lines of action we apply in the communities where the Group operates.

As a result of our focus on workplace health and safety, there were zero fatal accidents among Company employees in the year. We have also extended our sustainability practices to our international operations, such as: the implementation of our Social Impact Management methodology in Brazil, Morocco and South Africa, and of innovation processes in ten new countries, which now account for 28% of the total.

As for the environment, we avoided the emission of more than 15 million tonnes of CO

2, and we reduced CO

2 emissions by

21% and energy consumption by 15% with respect to 2012.

The ACCIONA Microenergy Foundation strengthened its Electricity at Home

program in Peru and Mexico in 2013. As a result, the living conditions of 1,700 families and 17 community centers in Peru and 180 families in Mexico have improved, thanks to clean energy.

All of these actions have been recognized by leading global sustainability fora, through our appointment to the Advisory Board of the Sustainable Energy for All program, and participation on the Executive Committees of the Global Compact LEAD platform and the Caring for Climate initiative, all of them organized by the United Nations. In Europe, we participated in both the Corporate Leaders Group on Climate Change and the European Green Growth Summit. We are the only Spanish company on the Global 100 Most Sustainable Corporations in the World 2014 list. We were confirmed as a component of the DJSI for the seventh consecutive year, this time in the Electric Utilities industry group, and we have been included in other indices, such as the Iberia 125 Climate Performance Leadership and Climate Disclosure Leadership, both created by the CDP.

These last few years of crisis have helped us achieve a business model that is sounder, more global and more lasting, enabling us to overcome a period of difficulties that is without precedent in our history.

Every day, the challenge of producing goods and services for a population in constant growth is ever more demanding. Moreover, the social divide between the developed and developing worlds is not shrinking, as would be desirable to maintain a geostrategic and social balance in an increasingly interconnected world. In view of this, ACCIONA is developing a new energy model and providing the infrastructure required for the increasingly necessary economic and social development of the countries where we operate.

Today ACCIONA is a Company with a solid business model and the committed support of its employees, shareholders, clients and partners. I can assure you that we will spare no effort to ensure that ACCIONA not only overcomes its current challenges but also emerges stronger and becomes the leader in the markets where it operates.

aCCiona reacted proactively, implementing a plan of action to

mitigate the impact of regulatory reform and maintain

growth and value creation in energy and Infrastructure


our MISSIon is to be a leader in the creation, development and management of infrastructure, Water, services and energy, contributing actively to social well-being, sustainable development and the creation of value for our stakeholders

our VISIon is to meet 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 want transparency, dialogue and participation to be the hallmark of our activities.

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

ExCEllEnCE ACCIONA aims to set the benchmark in the markets in which it operates.

EnvirOnmEntAl COnCErn In 2013, ACCIONA avoided 15 million metric tons of CO2 in net emissions to the atmosphere, 8% more than in 2012.

SOCiAl rESpOnSibility Our commitment to sustainable development is reflected in our position as sector leader in the Dow Jones Sustainability Index.

lOng-tErm viEw Our pledge to sustainability reflects our search for solutions and business models for the future.

FinAnCiAl StrEngtH We guarantee profitability and reliability, not only for our shareholders but also for society in general.

CuStOmEr FOCuS Our customers’ satisfaction is one of the fundamental principles of our commitment to excellence.

innOvAtiOn Innovation is one of ACCIONA’s strategic pillars.

CArE FOr pEOplE Our system is based on integration and equal opportunities. We aim to provide a work environment that promotes professional development and respect for employees’ personal lives and their health and safety.

Satisfying current needs without compromising those of future generations are essential priorities for ACCIONA. Transparency, excellence and innovation are just some of the values which define the Company.

Mission, vision and values, honesty in leadership


ACCIONA strengthened its position as a leader, demonstrating once again its capabilities in all of its actions on five continents.

2013 milestones, a world leader

AmEriCA

FEbruAry. Awarded the contract to build sections 4 and 6 of Rodoanel Mário Covas highway (Brazil) for 1.47 billion Brazilian reais.

mArCH. ACCIONA Windpower inaugurated its first wind power manufacturing plant in Brazil.

mAy. Reached an agreement to supply wind turbines to two wind farms in Rio Grande do Norte (Brazil).

mAy. The Oaxaca Electricity at Home programme commenced with the installation of 10,000 photovoltaic systems which will provide electricity to 25,000 people in rural areas of Oaxaca (Mexico).

JunE. Signed an agreement with Mexico's Secretariat for Labor and Social Welfare to strengthen workplace health and safety practices in construction.

JunE. Awarded the contract for the 45 MW Punta Palmeras wind farm in Chile.

JunE. The first installations under the Community electricity-Cajamarca program were completed, provid-ing electricity to community centers in Peru.

SEptEmbEr. Obtained accreditation to sell wind turbines in Brazil with special financing characteristics.

OCtObEr. Awarded the contract to build the eastern line of the Fortaleza Metro (Brazil) for 800 million euros.

dECEmbEr. Awarded the contract to supply 34 wind turbines for a 102 MW wind farm in Nova Scotia (Canada).

EurOpE

JAnuAry. The 38 MW Jelinak wind farm (Croatia) entered into operation.

July. Awarded the contract to supply renewable energy to the SEAT and Volkswagen plants in Spain.

mAy. Awarded the contract to provide handling services until 2030 at Frankfurt airport (Germany), the third-largest in Europe in terms of passenger traffic.

SEptEmbEr. Awarded the contract to build a drinking water treatment plant in Alentejo (Portugal).

JunE. Awarded a contract by Canal de Isabel II to provide renewable energy for its facilities in Madrid in 2014.

OCtObEr. The Company inaugurated its second wind farm (33 MW) in Poland.

JunE. Designed and built a 3D show to mark the Champions League final in London (UK).

OCtObEr. Awarded a contract for the end-to-end maintenance of Madrid's most iconic parks.

July. The President of Croatia inaugurated the Jelinak wind farm, which will meet the needs of over 30,000 households.

dECEmbEr. Awarded the contract to supply and assemble the Cercikaya wind farm (57 MW) in Turkey.

July. Awarded the contract to operate and maintain the Martos drinking water treatment plant in Quiebrajano, Jaén (Spain).

dECEmbEr. Sold 150.3 MW of wind power capacity in Germany for 157 million euros.

ASiA

JAnuAry. Awarded a two-year contract to operate and maintain the Hadda-1 and Arana-1 sewage treatment plants (Mecca, Saudi Arabia).

JAnuAry. Awarded the contract to design and build an extension to the Fujairah desalination plant (UAE).

AuguSt. Awarded the contract to design, build and install the exhibition entitled Hajj, The Journey Through Art, at the Museum of Islamic Art in Doha (Qatar).

nOvEmbEr. Sold the company owning a wind farm in South Korea, for 114 million euros.

AFriCA

mAy. Awarded the contract to build Gabon's largest drinking water treatment plant.

nOvEmbEr. Awarded the contract for the largest wastewater treatment plant in Africa, in Gabal Al Asfar, on the outskirts of Cairo (Egypt).

OCEAniA

July. World record for tunnel boring speed in the Legacy Way project in Australia (4.3 km in 6 months).

ACCIONA annual report 2013 1716 milestones

ACCIONA Windpower signed an agreement to supply, operate and maintain 93 MW of wind farms in Brazil owned by a joint venture comprising Voltalia, CHESF and Encalso.

The Electricity at Home (Luz en Casa) programs in Cajamarca and Oaxaca were recognized as best practices by UNESCO’s RENFORUS initiative. This program promotes energy sustainability at UNESCO Biosphere Reserves and World Heritage Sites.

ACCIONA will build the Mexican Social Security Institute General Hospital in Nogales,

Mexico. The project is worth 623 million Mexican pesos.

ACCIONA became a founding partner of the Employment Innovation Observatory. The goal is to establish a collaboration framework within business to analyze and drive the necessary changes to improve employment in Spain’s labor market.

ACCIONA obtained the highest rating from the Carbon Disclosure Project as a Sustainable Supplier, joining an index of the 80 most sustainable product and service providers in the world.

EvEntS FOllOwing yEAr-End

ACCIONA, among the 100 most sustainable companies in the world. The ranking, which includes companies from 22 countries on all continents in various sectors, is prepared by Corporate Knights, a magazine promoting clean capitalism.

ACCIONA was ranked among the top 25 in the world in the SMI-Wizness Social Media Sustainability Index, prepared by consulting company SMI-Wizness, which distinguishes companies that excel at communicating their sustainability practices via social networks.

ACCIONA was awarded a prestigious Deal of the Year award by Project Finance magazine for its innovative strategy of issuing bonds to fund a long-term project, the development of two wind farms in Mexico.

ACCIONA Agua was chosen as Water Company of the Year by Global Water Intelligence (GWI) magazine. The award recognizes the Company’s achievements in 2012 and its contribution to the international development of the water industry.

ACCIONA received three awards in Canada for Autoroute 30. The Quebec Association of Transportation and Roads gave the Company two Transport Excellence Awards, in the Distinction

and Infrastructure categories. The third award, Armatura 2013, was granted by the Quebec Reinforcing Steel Institute (IAAQ).

ACCIONA received the Cinco Días most innovative project 2013 award for the first energy self-sufficient water treatment plant system, which reuses a combination of organic industrial waste and sewage sludge.

Fort St. John Hospital, Canada, received the Vancouver Regional Construction Association (VRCA) award for high construction standards in the extreme climate of northern British Columbia.

The Canada-Spain Chamber of Commerce named ACCIONA Company of the Year for its achievements in Canada in recent years and its contribution to Spanish-Canadian business relations.

ACCIONA Production and Design received the award for Most Sustainable Event in Europe at the European Best Event Awards, held during the Music Day Festival in Madrid.

The Carbon Disclosure Project (CDP) distinguished ACCIONA for leading the fight against climate change, giving it the highest possible score for corporate environmental performance.

AwArdS

ACCIONA participated in the campaign against gender violence organized by the Spanish Ministry of Health, Social Services and Equality.

ACCIONA Windpower launched a new 125-meter rotor for its AW 3000 turbine.

ACCIONA headed the R&D makeSense project, part of the European Union’s Seventh Framework Programme, which will reduce the cost of installing wireless sensor networks and enhance automatic and remote control of buildings and machinery.

ACCIONA obtained turnover of 7.016 billion euros in 2012, 5.6% more than the previous year.

José Manuel Entrecanales, Chairman of ACCIONA, was appointed to the Advisory Board of the Sustainable Energy for All project, promoted by the United Nations and the World Bank. The initiative’s objectives include achieving universal access to electricity and for 30% of energy to come from renewable sources by 2030.

ACCIONA assumed the chair of the Spanish Wind Energy Business Association (AEE).

ACCIONA held its Shareholders’ Meeting, which approved a dividend of 2.65 euros/share.

ACCIONA joined the CSR Innolabs project, a network of companies backed by the Inter-American Development Bank (IDB) the goal of which is to promote Corporate Social Responsibility in Latin America.

Croatian President Ivo Josipovi inaugurated the Jelinak wind farm (30 MW), ACCIONA Energy’s first in that country.

ACCIONA retained its place in the Dow Jones Sustainability Index (DJSI World), and is now included in the Electric Utilities sector.

ACCIONA Water led the OFREA European project to improve the reuse of water in coastal areas.

ACCIONA participated in the European Green Growth Summit, which set out specific objectives for Europe for 2030 in the areas of renewable energy, greenhouse gas reduction, and energy efficiency.

ACCIONA implemented the Let’s Donate! campaign to collect food for the Food Bank, and toys, baby food and school materials for the Spanish Red Cross.

EvEntS

aCCiona beat a drilling record with the legacy Way tunnel in australia, completing excavation four months ahead of schedule


* member of the executive committee sed: senior executive director ed: executive director

at 1 january 2014

Organizational chart, the management team

corporate global brand and marKetIng offIcer

Pío Cabanillas* (SED)

InternatIonal Carmen Becerril* (SED)

cHIef corporate resources offIcer

Alfonso Callejo* (SED)

general secretary and general counsel

Jorge Vega-Penichet* (SED)

cHIef fInancIal offIcer Carlos Arilla* (ED)

cHIef corporate development and Investor

relatIons offIcer Juan Muro-Lara* (SED)

InstItutIonal relatIons Joaquín Mollinedo* (SED)

InnovatIon and QualIty Félix Rivas (ED)

cHaIrman José Manuel Entrecanales*

vIce-cHaIrman Juan Ignacio Entrecanales*

cHIef of staff Macarena Carrión* (ED)

accIona energy Rafael Mateo* (CEO)

real estate Isabel Antúnez (ED)

accIona Infrastructure, Water and servIces Luis Castilla* (CEO)

accIona trasmedIterranea Ignacio Aguilera (ED)


ACCIONA’s presence outside Spain accounted for 41% of total turnover in 2013. The adverse conditions in Spain confirmed that global expansion was the most appropriate strategy. ACCIONA’s achievements were recognized with several awards.

In 2013, ACCIONA remained committed to international growth, having strengthened its presence on the five continents.

ACCIONA maintained its international presence in 2013, and international turnover accounted for 41% of the Company’s total.

Although international sales slowed slightly, the Company remains committed to global expansion, a strategy which is proving successful, given the adverse conditions in Spain.

In 2013, revenues from international markets continued to grow as a percentage of the total. This trend is attributable to the long-term implementation of a strategic plan in the countries where the Company operates.

The outlook for Latin America remains favorable, auguring stability for most countries in the region, particularly those that are strategic markets for the Company. ACCIONA strengthened its presence in those markets in 2013, after being awarded major projects in Infrastructure, Energy, Water and Services. These include a contract to build the east line of the Fortaleza metro and a wind energy manufacturing plant in Brazil; a hydroelectric plant in Mexico; and a second wind farm and two photovoltaic plants in Chile, among others. ACCIONA strengthened its presence in countries that it entered in 2012, such as Peru and Ecuador.

ACCIONA International, expanding steadily

ACCIONA maintained its presence in the Asia-Pacific region, where its key countries maintained profiles of strong growth and stability. ACCIONA has strengthened its position in India and Australia, with new contracts in Energy and also in Infrastructure (Australia).

In 2013, the US continued to represent ACCIONA’s largest investment in renewable energies outside Spain. The Company strengthened its foothold in Canada with new contracts in Infrastructure and Energy.

The Company continues to expand its strategic presence in the Middle East and North Africa as part of its internationalization policy. For example, it was awarded a contract in Egypt to build what will be the largest drinking water treatment plant in Africa. ACCIONA strengthened its presence in the region with several water projects in Saudi Arabia and the United Arab Emirates and new services contracts in Qatar and Oman.

Elsewhere in Africa, ACCIONA maintained its presence in the Infrastructure, Water and Energy segments. The Company remains a leader in Sub-Saharan African countries such as South Africa and Gabon. It strengthened its presence in the latter with a number of Infrastructure and Water projects, including the contract to build the country’s largest drinking water treatment plant.

European countries affected by the crisis began to stabilize in 2013, and the Company commissioned wind farms in Croatia and Poland, obtained a large services contract at Frankfurt Airport, and maintains a strong presence in strategic countries such as Italy, where it has several water projects under way, and in Poland, where it operates via subsidiary Mostostal Warszawa, one of the country’s leading construction companies.

As in previous years, ACCIONA received several leading awards in 2013 in recognition of its values and performance. The Legacy Way tunnel in Brisbane, Australia was named major tunnelling project of the year by New Civil Engineer and Ground Engineering; the A-30 highway in Montreal received the Armature 2013 award (its third distinction), in recognition of the excellent materials used in construction; two wind farms in Mexico received the Deal of the Year award from Project Finance Magazine; and ACCIONA was named best international water company for the third consecutive year by Global Water Intelligence.

aCCiona consolidated its presence in latin

american markets by winning important

projects in energy, Water and services

International turnover (%)

2011

35

2009

25

2012

42

2010

31

2013

41

ACCIONA annual report 2013 2322 aCCiona international

aCCiona around the worldThe map below reflects the Company’s internationalization. Over more than 100 years, ACCIONA has strengthened its presence worldwide to become a leading company in Infrastructure, Water, Energy and Services.

energy

Water

infrastructure

real estate

service

CANADA

uSA

MEXICO

ECuADOR

PANAMA

COSTA RICA

PERu

ChIlE

DOMINICAN REPuBlIC

MOROCCO

GABON

SOuTh AFRICA

AuSTRAlIA

INDIA

GERMANy

uK SwEDEN

AlGERIA

ITAly

uAE

SAuDI ARABIA

COlOMBIA

BRAzIl

Includes those countries where turnover exceeds three million euros.

PORTuGAl

SPAIN

POlAND

CROATIA

GREECE

a. ACCIONA Infrastructure

b. ACCIONA Energy

c. ACCIONA Agua

d. ACCIONA Real Estate

e. ACCIONA Logistics & Transport Services

f. ACCIONA Service

g. Other businesses: Bestinver

h. Other businesses: Bodegas Hijos de Antonio Barceló

ACCIONA 2013


Sustainability, technical excellence, technological innovation and experience are the values which make ACCIONA Infrastructure an international leader in the industry. More than 100 years of efficiency validate the Company’s capacity and commitment.

ACCIONA Infrastructure, which is an international leader in construction, engineering, infrastructure management and R&D and innovation, complies rigorously with a set of values and a philosophy based on sustainability, technical excellence, technological innovation and experience.

Thousands of projects executed during its more than 100 years in operation all over the world validate ACCIONA Infrastructure’s capacities and its ongoing search for the most sustainable and efficient construction processes.

To this end, ACCIONA Infrastructure gives special consideration to sustainability, both environmental and social. This allows it to contribute fully to the social development of the communities in which it operates.

1. ACtivitiESACCIONA Infrastructure undertakes all aspects of construction: from design, engineering and execution through to infrastructure management and maintenance.

The division delivers all kinds of civil engineering projects. This includes roads, waterworks, subways and marine and industrial projects. Building is also an important part of the company’s activities.

With a view to offering distinctive, end-to-end services, the company has specialized units to provide support for construction, among them ACCIONA Engineering, ACCIONA Concessions, ACCIONA Infrastructure Maintenance, machinery services, metal structure workshops and specialized ancillary companies.

ACCIONA Infrastructure firm foundations, firm values

ACCIONA Infrastructure is today at the cutting-edge of innovation as a result of its intense, ongoing commitment to research. Because of its size and activity, ACCIONA Infrastructure’s R&D and innovation division is a European leader in applying and developing technology in construction processes with a view to enhancing efficiency and sustainability.

As a result of this leading position, ACCIONA Infrastructure is involved in many international research initiatives and projects, collaborating with world-renowned research institutions.

Arising out of its commitment to the environment, ACCIONA Infrastructure organizes contests to recognize best practices in workplace safety, quality and environmental management and the implementation of R&D and innovation in its projects. A committee of prestigious independent professionals evaluates the projects and selects the winners.

ACCIONA Infrastructure has a solid foothold in strategic markets, such as Brazil, Mexico, Chile, Canada, Australia, Poland, Colombia and Ecuador.

ACCIONA Infrastructure received many national and international awards in 2013:

AwArdS And rECOgnitiOnS

CONSTRUMAT 2013. CIVIL ENGINEERING CATEGORYACCIONA Infrastructure received the CONSTRUMAT 2013 award in the Civil Engineering category for the construction of the pedestrian walkway over the Júcar River in Cuenca. CONSTRUMAT 2013 is one of the construction industry’s leading global fairs, bringing together top professionals and companies.

The jury recognized the walkway in Cuenca for its innovative aspects, its adaptation to the surroundings, and the use of an ancient technique, namely ropes, to create a stressed ribbon bridge with the latest technology and materials, such as glass and carbon fiber.

TUNNELLING PROJECT OF THE YEAR (over $500mn)ACCIONA Infrastructure received the Tunnelling Project of the Year (over $500mn) Award from New Civil Engineer and Ground Engineering (in cooperation with the International Tunnelling and Underground Space Association) for the Legacy Way Tunnel project in Brisbane, Australia. This distinction, presented at the International Tunnelling Awards ceremony, is given only to tunnelling

projects valued at over 500 million dollars which set a precedent of excellence and quality.

CEMEx. CEMEx BUILDING AWARDS. INFRASTRUCTURE AND URBANISM CATEGORYAt the 22nd CEMEX Building Awards, CEMEX distinguished ACCIONA Infrastructure with the International Cemex Building Award in the Infrastructure and Urbanism category for the Zaragoza Tramway. The award recognizes the tramway as an urban integration project which provides the city with a sustainable infrastructure and complies with the highest standards of safety, quality and efficiency.

“ONE MILLION ACCIDENT-FREE MAN-HOURS” AT CERRO NEGRO NORTE, COPIAPÓ. CHILEThe Copiapó branch of the Chilean Chamber of Construction’s insurance company granted an award to ACCIONA for attaining one million accident-free man-hours on the Cerro Negro Norte project for Compañía Minera del Pacífico (part of CAP Group).

TURNOVER

2.733BILLION EUROS

BACKLOG

5.723BILLION EUROS

in figures

ACCIONA annual report 2013 29 ACCIONA INfrAstruCture 28 aCCiona 2013

COntrACtS ObtAinEd in SpAin in 2013INFRASTRUCTURE, AN INVESTMENT IN THE FUTURE

rAilwAy And undErgrOund prOJECtS Vitoria-Bilbao-San Sebastian-French Border high-speed line. Aramaio JV. (Vitoria).

Madrid-Galicia high-speed railway, Otero de Bodas-Cernadilla section. (Zamora).

Atlantic Axis of the high-speed rail line. Vigo-Das Maceiras Tunnel Southern End JV. (Pontevedra).

Railway access. Cantabria pier, Tarragona Port. (Tarragona).

Phase 2 of the intermodal railway station. Tarragona Port. (Tarragona).

rOAdwOrkS Reinforcement of the Manzanares-Alcázar de San Juan section. (Ciudad Real).

Upgrade of Road 2, Soldeu. (Andorra la Vieja).

Tunnelizing infrastructure on Sant Clement street, Pai. (Andorra la Vieja).

Emergency works. Repair work on the embankment on the access to the north side of the Rules reservoir viaduct, and of landslides at kilometer points 173+000 and 168+500. (Granada).

pOrtS And SEAwOrkS Southern expansion of Ingeniero Juan Gonzalo pier, Phase 2. Huelva Port. (Huelva).

Refurbishment of ramp no. 4 at the Repnaval Shipyard. Puerto de Las Palmas. (Las Palmas de Gran Canaria).

Expansion of moorings at cruise ship pier. Puerto Rosario. (Fuerteventura).

AirpOrt wOrkS Adaptation of Terminal 1 Departures area. Lanzarote Airport. (Lanzarote).

wAtErwOrkS Remodeling and expansion of the La Bañeza sewage treatment plant. La Bañeza. (León).

Collection of rain and waste water in Cabañas Raras and El Bayo industrial parks. Cabañas Raras. (León).

Repair of the Valira Canal. Batch 2 Tunnel 4. Andorra. (Andorra La Vieja).

Cenicero Irrigation JV. Logroño. (La Rioja).

A Gándara-Cadaval sewer. El Ferrol. (A Coruña).

induStriAl buildingS Azsa basement B. (Asturias). Electrical substation building. Asturias.

Ore store. (Asturias). Warehouse and armory at the Rota Naval Base. (Cádiz).

Execution of a set of industrial warehouses in the Villa de Rota industrial park (Cádiz).

“ZERO ACCIDENTS” AWARD FROM THE CANTABRIAN INSTITUTE OF WORKPLACE HEALTH AND SAFETYThe Cantabrian government, in cooperation with the Cantabrian Institute of Workplace Health and Safety (ICASST), recognized ACCIONA Infrastructure for improvements in workplace health and safety. The “Zero Accidents at Work” initiative seeks to encourage companies in the region to implement measures to improve safety at work, thereby enhancing their competitiveness, while seeking to involve both executives and employees in the activity.

EPD CERTIFICATIONThe railway viaduct over the Valchano creek, for the Madrid-Galicia high-speed line, is the second in Europe—and the first in Spain—to obtain EPD certification.

BREEAM CERTIFICATIONInfanta Sofía Hospital is the first in Spain to obtain this distinction in sustainable construction.

A-30The A-30 highway in Quebec, Canada, was the project that received the most distinctions in 2013. It received five in total:

DISTINCTION AND INFRASTRUCTURES AWARDSACCIONA Infrastructure received these two awards from the Quebec Association

of Transportation and Roads (AQTr), in cooperation with the Car Insurance Society of Quebec (SAAQ). Both awards recognize the A-30 as a sound, useful, unique and important infrastructure in Quebec province.

DESIGN AWARD FOR STEEL CONSTRUCTION. BRIDGES CATEGORYThe Canadian Institute of Steel Construction granted ACCIONA Infrastructure an award for the best design in the “Bridges” category for the Beauharnois Canal Bridge on the A-30 highway.

Measuring 2,550 meters long, it is the world’s second-longest incrementally launched bridge.

ARMATURA 2013 ACCIONA Infrastructure received the Armatura 2013 award from the Quebec Reinforcing Steel Institute (IAAQ), sponsored by Arcelor Mittal.

BEST BRIDGE 2013 The Scientific-Technical Association for Structural Concrete (ACHE) recognized the Beauharnois Canal Bridge as the best bridge built in 2013.


COntrACtS ObtAinEd in SpAin in 2013INFRASTRUCTURE, AN INVESTMENT IN THE FUTURE

nOn-rESidEntiAl buildingS BBVA Phase II. Outfitting and rest of Structure. (Madrid).

Francisco Ros Giner high school. Lorca. (Murcia).

Balearic Island University Teacher Training School. (Balearic Islands).

Elx School JV. (Alicante). Santa Gertrudis nursery and primary school. (Balearic Islands).

Conditioning work, León City Hall. (León). Villaverde multi-purpose sports grounds. (Madrid).

Andorra’s National Stadium. (Andorra la Vieja).

New engineering school building in Igualada. (Barcelona).

Escaldes-Engordany retirement home. Escaldes. (Andorra).

Locubsa projects (4 works). Andorra government. Andorra la Vieja. (Andorra).

Construction and office installations for the Cacaolat plant. Santa Coloma de Gramanet. (Barcelona).

San Mamés Stadium enclosure. Bilbao. (Vizcaya).

Pontepedriña training center. Santiago de Compostela. (A Coruña).

Miguel Rodríguez comprehensive care center for the elderly, on Calle Carboneros, 24. La Línea de la Concepción. (Cádiz).

induStriAl wOrkS Installations for Isla Verde Exterior free-standing breakwater. Algeciras Port. (Cádiz).

Demolition of Arganda school. Arganda del Rey. (Madrid).

lAnd dEvElOpmEnt Lezkairu Park site development. Navarra. Additional development work on San Juan neighbourhood. Aranda de Duero. (Burgos).

Redevelopment of the Los Llanos-El Molinillo site. Villavieja del Lozoya. (Madrid). Development of the Nuestra Señora de la Merced building. Santa Creu Hospital. (Barcelona).

Adaptation of the gradient on c/ Marina and c/ Ali Bei. (Barcelona).

Redevelopment, Plaza Gal. La Placida, Department of Gracia.(Barcelona).

Improvement in the road access between the Prat and Energía terminals. Barcelona Port. (Barcelona).

Project to revamp the Cumeno unit. Palos de la Frontera. (Huelva).

Phase IIB of the shopping zone in San Fernando (Phase IIA of the Master Plan). San Bartolomé de Tirajana. (Las Palmas de Gran Canaria).

rEFurbiSHmEnt MAZ JV. (Zaragoza). MAN 2 JV. (Madrid). Refurbishment of Merrimack II building. Phase II. (Madrid).

Corrective measures on RTVE building. (Madrid).

Burger King. Leganés. (Madrid). Room refurbishment at Torrespaña. (Madrid).

Restoration of Sant Pau Hospital patio walls. (Barcelona).

Partial refurbishment of the Aiguablava Parador hotel. Girona.

prOJECtS ExECutEd in 2013INFRASTRUCTURE, COMPLETED PROJECTS

rAilwAy And undErgrOund prOJECtS Madrid-Valencia high-speed railway. Madrid-Valencia maintenance JV.

Vitoria-Bilbao-San Sebastian-French Border high-speed line. Antzuola Tunnel JV. (Guipúzcoa).

Construction of Barcelona Metro line 9. Section 2: Parc Logistic-Zona Universitaria. Supplementary work on the interior structure, track and catenary for Line 2. Section: Pou, Calle Motors-Zona Universitaria. Includes a contract extension. (Barcelona).

New inter-city rail route. Martorell-Sant Vicenç de Calders JV. (Tarragona).

Railway access to the central zone of Cantabria pier. Tarragona Port. (Tarragona).

rOAdwOrkS A-60 Motorway, Valladolid-Villanubla. (Valladolid).

La Encina JV. (Cantabria). Recajo Road JV. Logroño. (La Rioja). A-8 Motorway, Mondoñedo-Lorenzana. Mondoñedo. (Lugo).

Baiona-A Gurada Route. Baiona. (Pontevedra). Mediterranean Highway A-7. Section: Motril (El Puntalón)-Carchuna. (Granada Province).

Subcontract of work on the A-49 Motorway, third lane, kilometer point 6,000 to 16,500. Section: Gines junction-Bormujos-Sanlúcar de Benacazón junction, and changes. (Seville Province).

Widening of the Arrecife bypass. (Lanzarote).

SEAwOrkS Crane runway beam in Sagunto Port. Sagunto. (Valencia).

Maintenance dredging in Seville Port shipping lane. 2011. (Seville).

Multi-purpose Terminal Site Development JV. (Murcia).

wAtErwOrkS Improvements to Riaza water supply system. Riaza (Segovia).

Supply network for Entrepeñas. Cifuentes. (Guadalajara).

La Mancha plain spur mains. Las Pedroñeras. (Cuenca).

Valmayor-Villanueva de la Cañada JV. (Madrid). Tanos-Polanco water main JV. (Cantabria). Palavea Water Supply JV. (A Coruña). Urgent works as part of the project to provide general irrigation infrastructure using recycled wastewater from La Víbora sewage treatment plant. Marbella and Mijas. (Málaga).

induStriAl wOrkS Project design and expansion of the Guadalquivir wastewater treatment plant. Palomares del Río. (Seville).

Torrevieja Seawater Desalination Facility JV. Torrevieja. (Alicante).

Restoration of the Nules landfill. Castellón.

nOn-rESidEntiAl buildingS Ibiza Hospital JV. Ibiza. (Balearic Islands). Tarongers Campus building. (Valencia). New Alcoy campus building. (Alicante). Balearic Island University Teacher Training School. (Balearic Islands).

Ávila bus station. (Ávila). El Miradero complex, Phase II. (Toledo). Barceló multi-purpose building JV. (Madrid). MAN JV. (Madrid). Giner de los Ríos Foundation headquarters. (Madrid).

FLC training center in Vicálvaro. (Madrid).


2. intErnAtiOnAlThe global economic crisis has created many notable challenges for international infrastructure and construction companies, due to the collapse of many domestic markets as a result of a lack of liquidity and to the consequent increase in competition in emerging markets. The current situation has clearly evidenced the need for a more global approach to the infrastructure market, which includes actively seeking and carefully selecting new markets which guarantee sustained medium and long term growth. It also highlights the need to reorganize resources to respond to markets which are increasingly demanding and competitive and to larger projects in less stable settings.

Having attained our internationalization objectives in 2012, and in view of the need to redirect our focus to continue to grow and to adapt our organization to the current market situation, 2013 was dedicated to analysis, both internal and external, i.e. of the many market opportunities. These efforts allowed us to identify activities where we contribute added value and the competitive advantages we have acquired, while also pinpointing the primary risk factors in international growth, since we are now better-positioned to manage them successfully.

New opportunities were analyzed for 2013, focusing especially on new markets and ensuring that they aligned with our sustainability and profitability criteria.

With respect to the markets where ACCIONA has been positioning itself in line with its international growth strategy, the company focused especially on strengthening its presence in the areas where it already operates. Major achievements in this regard include the following:

In Australia, the company was adjudicated a new road, short-listed for the East West Link mega-project, and received awards for the construction of Legacy Way Tunnel in Brisbane, all of which confirm our sound position in that market.

In brazil, ACCiOnA infrastructure’s presence in São paulo state was strongly reinforced with the adjudication of two of the six contracts for roads in the Rodoanel Norte project in São Paulo (Rodoanel Mário Covas). This, together with the contract for the east line of the Fortaleza Metro, reflect ACCIONA’s successful growth there.

The synergies achieved with ACCIONA’s Engineering division led to two major contracts to build solar-thermal projects in Morocco and South Africa.

prOJECtS ExECutEd in 2013INFRASTRUCTURE, COMPLETED PROJECTS

Carlos III University Student Residence. Getafe. (Madrid).

Colmenar Military Base Pharmacy. Colmenar Viejo. (Madrid).

New BBVA Headquarters. (Madrid). BBVA Phase I. Outfitting and Site Development. (Madrid).

Construction of a courthouse in Balaguer. (Lleida).

Infrastructure to expand the T1 Sky Center shopping area. Barcelona Airport. (Barcelona).

San Mamés Stadium JV. Bilbao. (Vizcaya). Uribe-Kosta II Hospital JV. (Vizcaya). New building, extension and refurbishment of the School of Economics and Business at the University of Granada. (Granada).

Construction of a Lecture Building at the Linares Science & Technology Campus. (Jaén).

Office for Citizen Information and other services in La Granja. (Santa Cruz de Tenerife).

rESidEntiAl buildingS 57 homes in Parque Venecia. (Zaragoza). Miralbueno residential development. (Zaragoza).

Oil And gAS pipElinES Huercal Overa-Baza-Guadix natural gas pipeline (31,000 m). (Almería and Granada provinces).

lAnd dEvElOpmEnt San Roque neighbourhood JV. (Alicante). Montport de Andratx industrial park. (Balearic Islands). Energy pier site development. Barcelona Port. (Barcelona).

Executive Project for the development of the Nuestra Señora de la Merced building at La Santa Creu i Sant Pau Hospital. (Barcelona).

Sewage network and paving of Coroso Road. Riveira. (A Coruña).

New walkway between General Astilleros and Avenida de Europa, near the Beni-Enzar border post. Phase II. (Melilla).

Landscaping of the Orzola Port access and remodeling of sidewalks in Orzola (both in the town of Haría). (Lanzarote).

Phase IB of the San Gregorio shopping center. Telde. (Las Palmas de Gran Canaria).

Maintenance, upkeep, installation and supply of urban furniture in Santa Cruz de Tenerife. (Santa Cruz de Tenerife).

rEFurbiSHmEnt Puchadas Palace. Calatayud. (Zaragoza). Refurbishment of Vía Ibérica homes. (Zaragoza).

Refurbishment of Ermita San Jaime building. (Zaragoza).

Olivenza Maintenance JV. Olivenza. (Badajoz). Refurbishment of Vasco de Quiroga school. (Madrid).

Refurbishment of former La Chartreuse Factory to house Tarragona’s Official Language School. (Tarragona).

Civil engineering required to replace roofing on the plant at Avenida Francesc Macia 255. Santa Coloma de Gramanet. (Barcelona).

Adaptation of ground floor of Building C at the Fabra i Coats Complex. Sant Andreu. (Barcelona).

Civil engineering work to adapt the new Cacaolat plant. Santa Coloma de Gramanet. (Barcelona).

AirpOrt wOrkS Pavement improvements in baggage handling area. Barcelona-El Prat Airport. (Barcelona).


3. ACCiOnA EnginEEringACCiOnA Engineering became firmly established in 2013 following the merger of its engineering and industrial infrastructure departments with a view to undertaking EPC (Engineering, Procurement and Construction) projects and leveraging the synergies between the two departments.

The resulting team at ACCIONA Engineering comprises over 500 professionals grouped in two main departments:

Industrial Infrastructure Engineering

Both departments are committed to internationalization, the Group’s main objective. The division performed very well in 2013 in terms of international order intake, exceeding its targets.

The industrial infrastructure department had a very successful year, obtaining three EPC contracts and securing a good position for future projects.

Notable were the EPC contracts for Ouarzazate and Bokpoort CSP plants, reflecting the company’s internationalization in the solar thermal power segment. Both are cylindro-parabolic, a feature only developed to date in plants in Spain (Morón and Olivenza). Contracts agreed in 2013 included:

Numerous contracts in mexico, from residential building through educational and healthcare facilities, roads and ports to energy projects, evidence that ACCIONA Infrastructure is currently well-positioned in Mexico and capable of undertaking all kinds of projects there.

ACCIONA was also successful in three new markets in 2013. ACCIONA Infrastructure obtained its first contract in peru, to build a hospital in Junín, and strengthened its base in Sweden due to the adjudication of a second railway contract in Stockholm, and in Ecuador, having been short-listed for the second phase of the Quito Metro, in which ACCIONA has already been involved through a contract for Phase I in 2012.

mostostal warszawa Capital group in 2013Mostostal Warszawa Capital Group operates in the main segments of the business in Poland: industrial, energy and environmental facilities, residential and commercial development, civil engineering and transport infrastructure.

Mostostal Warszawa continued to restructure the company in 2013, focusing its activities on regional development and energy projects.

Several large infrastructure projects were completed in 2013, such as the Kielce bypass (S7 expressway) and the refurbishment of a section of

EPC for the cylindro-parabolic solar thermal plant (160 MW) in Ouarzazate (Morocco), using molten salt for heat storage, for ACWA.

EPC for the cylindro-parabolic solar thermal plant in Bokpoort (50 MW), using molten salt for heat storage (South Africa), for ACWA.

EPC for the San Rafael (Mexico) hydroelectric plant with 3 Kaplan turbines (8 MW) for a total of 24 MW, which includes Operation and Maintenance, for Generadora Eléctrica San Rafael.

Progress was made on two major contracts in 2013:

EPC for a thermal power plant (three 45 MW units) in Rosarito (Tijuana, Mexico) for Mexico’s Federal Electricity Commission. The final phase of commissioning took place in 2013 and acceptance testing prior to commercial operation will take place in 2014.

Almería Solar Platform (Spain) for CEIMAT (to be completed in 2014).

In 2013, the Engineering department reinforced its position in the countries where it already has established bases, and it opened a new office in tunisia.

ACCIONA Engineering currently has subsidiaries in brazil, gabon,

poland, Canada, mexico and Qatar and an extensive network of offices in Honduras, guatemala, El Salvador, nicaragua, Colombia, Ecuador, peru, bolivia, romania, tunisia, Egypt and bulgaria (in the process of being established).

The company has two subsidiaries and eight offices in latin America, its primary foreign market.

The bolivian office signed several supervision contracts with the Bolivian Highway Administration:

Review, elaboration and validation of the design and supervision of the technical and socioenvironmental aspects of the San Buenaventura-Ixiamas roadworks.

Review, elaboration and validation of the final design, road safety audit, and supervision of the technical and environmental aspects of the construction of the Uyuni-Tupiza road.

Modification no. 1. Technical and environmental supervision of upgrading and paving work of the Yucumo-Rurrenabaque section.

Master plan for ecological zoning of land use in the Huayñajahuira river basin for La Paz regional government.

the S8 expressway in Radziejowice. The company completed other major projects, including the Gdynia Theater, the Jagiellonian Institute of Technology in Krakow, the University of Economics in Katowice, the construction of a new surgical wing at Elblag Hospital, refurbishment of the Gdynia Oncology Center, and energy projects such as the biomass plants in Opole and Ostroleka.

Mostostal Warszawa’s excellence in project execution was recognized with several prestigious distinctions in 2013. Three of Mostostal’s current projects received distinctions at the Polish Construction of the Year awards: refurbishment of the railway station in Krakow, reconstruction of a sports boarding school in Zakopane, and construction of the new surgical wing at the No. 4 Hospital in Lublin.

Mostostal Warszawa’s R&D program was recognized with the Crystal Brussels Prize for its outstanding achievements in the European Union’s Seventh Framework Programme for Research and Technological Development.

The company was also awarded new building projects, such as the Jordanki Concert Hall in Torun and the AGH University’s Energy Center in Krakow. Mostostal Warszawa also received approval to start building units 5 and 6 of the thermoelectric power plant in Opole in 2014.

aCCiona strengthened its presence in Brazil with the contract for the fortaleza metro east line


Technical design, execution details and technical assistance to reinforce and refurbish the drainage system on the DN55 national highway, between kilometer points 4+400 and 71+100, for the National Company of Motorways and National Roads (Romania).

Technical assistance and oversight of construction of the Medenine-Ras Jedir highway, for Tunisie Autoroutes (Tunisia).

Notable international contacts included:

Civil engineering design of the main building, electrical engineering study and monitoring of the desalination plant in Al Jubail, for ACCIONA Agua (Saudi Arabia).

Feasibility study of the Grand Eweng and Mouséré hydroelectric plants, for Hydromine, Inc. (Cameroon).

Contract 2 (Transport and Infrastructure) and Contract 6 (Environment) under the Framework Contract to provide short-term services exclusively for non-EU beneficiary countries, for the European Commission (Belgium).

Pre-investment analyses of the regional project in Chorotega, for the Central American Bank for Economic Integration (Costa Rica).

Upgrade and electrification of the Vinkovci–Vukovar railway line, for HŽ

Our brazilian subsidiary completed technical analyses in connection with the Açu superport and in the Rodoanel beltway in São Paulo. Synergies between ACCIONA Engenharia and ACCIONA Ingeniería S.A. led to the following adjudications:

Provision of engineering services for the Rodoanel Technical Department and drafting of the basic and execution structural design of the viaducts for Lots 4 and 6 of the north section of the Rodoanel beltway in São Paulo, for ACCIONA Infraestructuras, S.A.

Geotechnical survey of Açu superport’s TX2 for LLX Operações Portuárias, S.A.

Shipyard engineering project in Coruripe, for Estaleiro Eisa Alagoas, S.A.

Drafting of engineering designs to restore, reinforce and refurbish special structures, for the DNIT (Brazil’s National Department of Infrastructure Transport).

Analysis of the technical, economic and environmental viability of the railway in Andradina (12.6 km), San Manuel (50 km), Aquidauana (15 km), Sorocaba (33 km) and Bauru (20 km), for ALL (América Latina Logística, S.A.).

ACCiOnA Engineering’s other offices and subsidiaries in latin America also played an important role in 2014:

Phase I of Guayaquil’s outer port for the Ministry of Transport and Public Works (Ecuador).

INFRASTRUKTURA d.o.o (Croatia).

Drafting of the master plan and configuration of a deep water port, for the Ministry of Transport and Public Works (Uruguay).

ACCIONA Engineering also executed works in other countries, including Australia, Colombia, Chile, UAE, Ghana, Guatemala, Jamaica, Morocco, Mozambique, Panama, and Sweden.

The company executed a very broad range of projects in the Spanish market, including:

Auscultation, 2013 A2 highway, section 2, PK.62+000-L.P. Soria-Guadalajara, for ACCIONA Engineering.

Modification no. 3 in the contract for consulting and assistance in designing and monitoring platform works, the railway bed and line, and the Girona station, for the Madrid-Zaragoza-Barcelona-French border high-speed line, for ADIF.

Extension of the project to advise and monitor environmental aspects during the execution of high-speed railway lines, for ADIF.

Supervision and surveillance of Valdepatao reservoir works, for the Ebro Basin Authority.

Modification no. 2 in the consulting and assistance contract for the

supervision and surveillance of the Cantabrian Highway (A-8). Section: Lindín-Mondoñedo, for ADIF.

Modification no. 3 in the consulting and assistance contract for the supervision and surveillance of the Seville-Cádiz high-speed railway line. Lebrija-El Cuervo subsection, for the Directorate-General of Railway Infrastructure.

4. ACCiOnA COnCESSiOnSACCIONA Concessions is a world-class private sector developer, in terms of number of projects and turnover. The company manages a portfolio of 22 concessions in Spain, Canada, Mexico, Chile and Brazil in the areas of transport (roads, railways, ports and irrigation) and social services (hospitals).

The need to increase and improve infrastructure and services at the disposal of citizens encourages public administrations to use the concession format as a tool for long-term collaboration with the private sector. With this approach, private enterprise contributes experience, discipline and management capacity, which are key factors in developing complex projects.

In addition to the private sector’s experience and discipline, this formula enables the initial investment to be spread over the infrastructure’s entire lifetime, while also adding budgetary security by passing most of the risks on to the private sector, principally by fixing the price and construction deadline.

Road safety audit of the Region 3 road network, for the Ministry of Transport and Public Works (Ecuador).

Supervision of building of San Salvador Metropolitan Area Integrated Transport System (SITRAMSS) for the Ministry of Public Works, Transport, Housing and Urban Development (El Salvador).

Consultancy services for the implementation of the 2013-2018 road safety strategy, for the Ministry of Transport and Infrastructure (Nicaragua).

Drafting the master plan for the port terminal in Lambayeque for the regional government of Lambayeque (Peru).

Pre-investment study for shoreline regeneration of the Buenos Aires and Huanchaco beaches, for the Ministry of Transport and Communications (Peru).

ACCiOnA Engineering’s offices and subsidiaries in other parts of the world also contributed notably to order intake in 2014:

Design and refurbishment of the storm drain system in Port-Gentil (Gabon) for ACCIONA Infrastructure.

Construction design of the Ntoum 7 drinking water treatment plant, for ACCIONA Infrastructure (Gabon).

Construction design of a car park in Lusail (Doha), for Worley Parsons (Qatar).

aCCiona has been awarded contracts in such countries as saudi arabia, Cameroon, Belgium, Costa rica, Croatia and uruguay


To this end, and with a view to promoting private investment, the government engages private operators to execute (build, upgrade and/or refurbish) public works and to operate the infrastructure for a set period of time. Granting infrastructure concessions to the private sector helps overcome some of the traditional difficulties that projects face, e.g. insufficient funding, excessive dependency on the government budget, etc.

The company continues to expand outside Spain. It has been short-listed for several contracts and is analyzing investment opportunities in the US, Canada, Chile, Brazil, Colombia, Peru, New Zealand and Australia.

ACCIONA Concessions includes ACCIONA Hospital Services, which specializes in hospital concessions, an increasingly popular model in the healthcare industry in recent years. This division aims to be a leader, both nationally and internationally, in the comprehensive management of projects to design, build, finance, operate and maintain healthcare infrastructure using the concession format; it has bid in numerous tenders in recent years.

Asset rotationACCIONA sold its stake in the Royal Jubilee Hospital concession company in Victoria, BC, Canada, to investment fund DIF in August 2013. The hospital, which has 500 beds and over 30,000 m2 of floor space, cost 250 million euros to build and

equip. The concession had been classified as available-for-sale.

This transaction is in line with the plan to rotate assets under concession, which includes the sale of mature assets to fund new investments in this business, one of the company’s strategic areas.

ACCIONA continues to operate the concession business in Canada, where it has Fort St. John Hospital in British Columbia; the A30 highway, in Quebec; Southeast Stoney Trail, in Alberta; and Windsor Essex Parkway, in Ontario.

ACCIONA continues to view Canada as a strategic country for growth, and it currently operates several infrastructure, water and renewable energy projects there.

CommissioningIn 2013, the first section of Route 160 (Chile) and the Southeast Stoney Trail (Canada) were inaugurated, and the final sections of the A2 highway and the Zaragoza tramway (both in Spain) became operational.

FundingFunding was completed for La Plata highway, A-66 (Benavente-Zamora), the Gerediaga highway (Vizcaya) and the New Hospital in Vigo in 2013. The latter deal obtained the prestigious European Healthcare Deal of the Year 2013 award.

SPANISH INFRASTRUCTURE

TRAMWAYS AND UNDERGROUNDSOperational: Trambaix (Baix Llobregat tramway, Barcelona).

Trambesòs (Glóries-Besòs tramway, Barcelona).

Zaragoza Tramway.

HIGHWAYS AND TOLL ROADSOperational: R-2 toll road between Madrid-Guadalajara, and M-50 beltway (subsection A-2 to A-1).

CM-42 highway between Consuegra and Tomelloso (Ciudad Real).

Villafranca-El Burgo de Ebro highway (Zaragoza).

A-2 highway. R-2 section, from Soria provincial limit to Guadalajara (Guadalajara).

Under construction: A-334, Almanzora highway (Almería). N-636, Gerediaga highway (Vizcaya). A-66, La Plata highway (Zamora).

PORTS Operational: Roda de Bará marina

(Tarragona).

IRRIGATIONOperational: Navarre Canal irrigation scheme.

HOSPITAL SERVICESOperational: Infanta Sofía University Hospital, San Sebastián de los Reyes (Madrid).

Can Misses Hospital (Ibiza, Balearic Islands).

Under construction: Vigo University Hospital (Vigo, Galicia).

INTERNATIONAL INFRASTRUCTURE

HIGHWAYS AND TOLL ROADSOperational: A-30 highway in Montreal, Quebec (Canada).

Southeast Stoney Trail, Alberta (Canada).

Under construction and operational: Route 160. Tres Pinos-northern access to Coronel section (Chile).

Rodovia do Aço, BR-393, Rio de Janeiro (Brazil).

Under construction: Windsor Essex Parkway, Ontario (Canada).

HOSPITAL SERVICESOperational: Bajío Regional Highly-Specialized Hospital, Guanajuato (Mexico). Royal Jubilee Hospital, British Columbia (Canada). Fort St. John Hospital, British Columbia (Canada).

// list of concessions


Repair and seismic reinforcement of viaducts over the Berceto River, Pizzarota and Dei Cani (Italy) Geo Von Bridge in Bucaramanga, Colombia Bridges 5/6 via Bogota-Villavicencio, Colombia CEMAFE Ambulatory Medical Center (Argentina) Montes del Plata (Uruguay) Bahia de Todos os Santos Highway (Brazil) El Borracho Bridge (Mexico) Bridge over the River Orinoco (Venezuela).

5.2 tierra ArmadaTierra Armada’s main projects in 2013 included:

TerraClass bearing walls on Ruta del Sol, Guaduas, Colombia Geotel walls on Ruta del Sol, Guaduas, Colombia Bridge in Siete Tanques (Venezuela) Overpass connecting Argerich and Lorca. Area: 4,700 m2 (Argentina) Lomas Bayas II project, 17 retaining walls and four main walls (Chile) Flyover, El Gallo (Mexico) La Calera-Jalisco curved arch (Mexico) C-820 and C-822 viaduct. Santiago de Teide-Deje Artesa (Spain) SEA LGV Tours-Bordeaux Double T high-speed railway (France) Flyover, Antonio Quiroga Boulevard (Mexico) Pamplona Highway junction and extension of the LO-20 motorway Reinforced earth walls, primary crusher

5. AnCillAry COnStruCtiOn COmpAniESACCIONA Infrastructure undertakes projects of great technical complexity, supported by a group of specialized subsidiaries. This enables ACCIONA to apply their individual precision, experience and expertise to its projects.

5.1 Freyssinet groupThe Freyssinet Group is made up of companies which provide a wide range of specialized products and services for the construction sector. These highly-respected companies do business under the Freyssinet and Tierra Armada brands. Freyssinet participates in projects involving stays, prestressing, handling large loads, repair and refurbishment of buildings and structures, design and manufacture of special ancillary elements such as structural supports, dilation joints for roads, seismic shock absorbers, etc. Tierra Armada works with high-tech prefabricated components such as reinforced earth or buttressed containing walls, arches and caissons, acoustic screens, precast beams, and other turnkey prefabricated structures which greatly facilitate construction. Menard applies all kinds of soil treatments and improvements for both public and private projects.

in the expansion of Freeport McMoRan’s Cerro Verde mine (Peru) Embankment stabilization, crushing mills at Xstrata’s Las Bambas mines (Peru).

5.3 gtceisu Construcción, S.A.This is a leading company in projects related to special foundations, soil improvement and the environment. GTCEISU operates in the area of soil mechanics, providing a range of services which include excavation, drilling and soil treatment.

It executed the following projects in 2013, among others:

Foundation using precast piles for a Study Center (Palma de Mallorca, ACCIONA) Foundation using precast piles in the Center for Advanced Music Studies. (San Sebastián, Guipúzcoa, ACCIONA-Lugoien Musikene JV) Foundation using precast piles for a high-tension pylon in Pinar-Getares (San Roque, Cádiz, ACCIONA Installations) Foundation using precast piles for a storage tank (Cepsa) (Palos de la Frontera, Huelva, ACCIONA)

Foundation using piles built on-site for several structures on the A-15 Highway. Section: Medinaceli-Radona (Soria, ACCIONA) Containment using diaphragm walls in the Torrecardenas Maternity Hospital car park (Almería, ACCIONA-Tejera JV) Foundations of several structures for Line 1, section 1, subsection 2 of the Granada Metro (Granada, ACCIONA-Sando JV).

ACCiOnA infrastructure maintenanceACCIONA Mantenimiento de Infraestructuras, S.A. is in the business of building and providing comprehensive infrastructure maintenance services in the area of roads (motorways, highways, streets), water (canals, reservoirs) and the environment, as well as general infrastructure upkeep, primarily for public sector clients.

With central offices in Madrid, the company operates nationwide, in practically every autonomous region. At present, ACCIONA Infrastructure Maintenance is working on 10 contracts in different fields, for which it has a workforce of 254 and an extensive pool of machinery and additional resources.

The main contracts awarded to ACCIONA Infrastructure Maintenance in 2013 were the following:

Service contract to maintain and replace paving on public roads in Albacete

Contract for upkeep and operation services on the EX-A1 highway. Section: A-5 Moraleja, and EX-119, EX-118, and EX-102 regional roads. Section: EX-118-LP Toledo and EX-387. Section: Bohonal de Ibor-Toledo provincial limit.

Freyssinet Freyssinet projects in 2013 included:

Refurbishment of bridge in Castielfabib at CV 479 PK 5-150 (Valencia)

Repair of bridges on C16 Motorway Seville 2 building façade and ancillary work in Seville

Refurbishment of Arenal Bridge in Córdoba

Shoring and changes to supporting arches of Contreras viaduct in Cuenca

Work on the Arena viaduct, A-8 Motorway

Road connecting the border with the Villahermosa Road and Ciudad del Carmen (Mexico).

Marrutxipi façades 78-80, San Sebastián (Guipúzcoa)

Upkeep of drainage and structural works on the AP68 toll road, Bilbao-Zaragoza (Spain)

Repair of sluice gate seat at Belgrano-Bahía Blanca port (Argentina)

Restoration and reinforcement of the remains of the wall in the environs of the Tostonera gate and a section of the eastern city wall in Talamanca del Jarama, Madrid (Spain)

Reinforcement of the transept of the Collegiate Church of Santa María la Mayor in Calatayud, Zaragoza (Spain)

Arco Bridge in Logroño Tera Viaduct Vitoria-Bilbao-San Sebastian high-speed railway platform. Section: Eskoriatza–Aramayona. Incrementally-launched viaducts (Spain)

grupo freyssinet, tierra armada and gtceisu Construcción, s.a. contribute precision, experience and specialization to projects


The new regulations had an impact amounting to 257 million euros on ACCIONA Energy’s 2013 accounts. This situation forced the company to strengthen its action plan aimed at reducing costs and capital expenditure, stepping up services to customers, and bringing in equity partners.

ACCIONA Energy-owned facilities produced 22,404 GWh in 2013, 10% more than in the preceding year. In normal circumstances, the related economic magnitudes would have increased similarly; however, regulatory changes in Spain in 2012 and 2013 (the latter in force since July 2013) had an impact of 257 million euros on the company in 2013; in a full year with average output and prices, the impact would be between 360 and 370 million euros.

ACCIONA Energy’s turnover (2.120 billion euros) was practically flat with respect to 2012 (+0.6%) because the increase in power generation revenues (mainly due to the higher wind and hydroelectric load factors in Spain) offset the reduction in that item due to regulatory changes.

However, EBITDA fell by 13% to 979 million euros and EBT amounted to 7 million euros, 95.9% less than in the

previous year, mainly due to impairments of renewable assets in Spain and of goodwill (-1.675 billion euros).

Action planIn line with the action plan for 2013-2014, implemented in February last year to respond to the first phase of regulatory changes, capital expenditure was cut by 53% in 2013—from 440 million euros to 205 million euros.

Costs were cut by 39 million euros and divestments of assets in mature markets worth 271 million euros were arranged,

ACCIONA Energy, a year affected by regulatory changes in spain

of which 114 million euros were for 61.5 MW of operational capacity in South Korea (completed in 2013) and 157 million euros were for 150 MW of wind capacity in Germany, signed in the first quarter of 2014. The division’s debt was reduced by 14.3% (from 6.086 billion euros to 5.215 billion euros).

Under the action plan, the company has also begun to seek a financial partner to take a minority stake (up to 49%) in the international renewable portfolio (nearly 2.3 GW net) .

It has also enhanced the area of services to clients, having signed contracts or obtained commitments for 427 MW in the first quarter of 2014 for wind

and photovoltaic capacity in Australia, Canada, Mexico and Chile.

It has also greatly strengthened wind turbine sales, and 1,560 MW in sales of ACCIONA Windpower’s AW 3000 (3 MW) turbine had been signed in 2013 or were pending signature in the first half of 2014.

COmpAny-OwnEd ASSEtSStrong growth in production in Spain The increase in the company’s power output in 2013 is due basically to higher production in Spain (+15.9% with respect to 2012), attributable to both wind (+10%) and hydroelectric (+58%).

in the framework of the action plan, steps are being

taken to find a financial partner to take a minority stake in the international

renewable portfolio

technology 2012 (gwh) 2013 (gwh)difference

(%)

Wind 17,376 18,399 +5.9%

Hydroelectric 1,828 2,882 +57.7%

Biomass 450 454 +0.9%

Solar thermal 596 546 -8.4%

Photovoltaic 101 95 -5.9%

Cogeneration 28 28 -

Total 20,379 22,404 +9.9%

ACCIONA Energy total output, by technology

ACCIONA Energy output

total (gWh)

2012

20,379

2013

22,404

attributable (gWh)

2012

18,133

2013

19,971

+9.9% +10.1%

ACCIONA annual report 2013 45 ACCIONA eNergy 44 aCCiona 2013

Total output by facilities in which ACCIONA has a stake was 22,404 GWh, and attributable output was 19,971 GWh (10% higher year-on-year in both cases).

Facilities in Spain generated 15,209 GWh, 2,089 GWh more than in 2012. Wind and hydroelectric output increased by over 1,000 GWh in both cases, while there was a slight decline in solar thermal output.

Facilities outside Spain generated 7,195 GWh, almost the same as in 2012 (-0.9%). Output was virtually flat in the USA and it decreased in Australia and Mexico (-14.5%). Output increased somewhat in Canada and by more in Portugal, while it decreased in Germany, South Korea and Hungary.

The new operational capacity in Poland increased output in that country by 61%. Output increased by 25% in Italy due to the increased wind capacity and to the

stronger winds in southern Europe, which also benefited the farms in the Iberian Peninsula and Greece.

Spain accounted for 68% of ACCIONA’s output in 2013 (3.5 points more than in 2012); the United States for 9.4%, and Mexico for 8.3%. They were followed in importance by Australia (4.5%), Canada (2.5%), Portugal (1.8%), and Germany, India and Italy (1.1% each). South Korea, Greece, Poland, Croatia and Hungary accounted for less than 1%.

As regards technology, wind output expanded, particularly because of strong growth in Spain, as did hydroelectric (by 57%) due to heavy precipitation in the year.

Wind accounted for 82.1% of ACCIONA’s electricity output and hydroelectric for 12.9%. They were followed at a distance by solar thermal (2.5%), biomass (2%), photovoltaic (0.4%) and cogeneration (0.1%).

OVER 5% OF ELECTRICITY DEMAND IN SPAIN Electricity production by facilities owned by ACCIONA Energy in Spain (15,209 GWh) represented 5.8% of national electricity demand (260,870 GWh) according to REE’s Advance 2013 Report on the Spanish electricity system. Attributable output (13,422 GWh) accounted for 5.1%.

In terms of net power generation in Spain—273,598 GWh—ACCIONA had a 5.6% share (4.9% in attributable terms).

The company’s special regime output, i.e. excluding the ordinary regime hydroelectric plants, amounted to 13,246 GWh, i.e. 11.9% of total special regime output in Spain—111,679 GWh.

Total wind production by facilities in Spain in which ACCIONA has a stake—11,410 GWh—accounted for 21% of total wind production in Spain—54,301 GWh—while attributable wind output amounted to 9,626 GWh—17.7%.

ACCIONA Energy total output, by country*

Countries 2012 (gwh) 2013 (gwh) difference (%)

SpainRenewablesCogeneration

13,12013,092

28

15,20915,181

28

+15.9%+15.9%

0%

USA 2,089 2,114 +1.2%

Mexico 2,180 1,863 -14.5%

Australia 984 1,002 +1.8%

Canada 538 555 +3.2%

Portugal 375 413 +10.1%

India 208 244 +17.3%

Germany 269 242 -10%

Italy 188 236 +25.5%

South Korea 196 179 -8.7%

Greece 111 125 +12.6%

Poland 67 108 +61%

Croatia 0 66 -

Hungary 54 50 -7.4%

Total 20,379 22,404 +9.9%

* All of ACCIONA Energy's international facilities are renewable.* Includes output in South Korea, Greece, Poland,

Croatia and Hungary.

Production in 2013, by country (% of total)

spaIn 67.9%

usa 9.4%

mexIco 8.3%

australIa 4.5%

canada 2.5%

portugal 1.8%

germany 1.1%

IndIa 1.1%

Italy 1.1%

otHer countrIes* 2.3%

Production in 2013, by technology (Percentage of total output)

WInd 82.1%

HydroelectrIc 12.9%

solar tHermal 2.5%

pHotovoltaIc 0.4%

bIomass 2%

cogeneratIon 0.1%

Total ACCIONA Energy facilities at 2013 year-end, by technology

technology total capacity (mw) Attributable capacity ( mw)

Wind 7,139 6,271

Hydroelectric 912 912

Biomass 57 57

Solar thermal 314 314

Photovoltaic 49 33

Cogeneration 9 9

Grand total 8,480 7,596

the increase in power generation by aCCiona energy is due to higher wind and hydroelectric output in spain


of the capacity authorized under the preceding regulations), 33 MW in Poland, and 42 MW in Costa Rica.

After the Yeong Yang wind farm (61.5 MW) in South Korea was divested in 2013, the net increase in the company’s renewable capacity was 43.5 MW, and its total capacity stood at 8,480 MW at year-end.

Wind accounts for 84.2% of that capacity and hydroelectric for 10.7%. Solar thermal plants account for 3.7%; photovoltaic plants, 0.6%; biomass, 0.7%; and cogeneration, 0.1%.

The company’s attributable capacity amounts to 7,596 MW.

15.1 MILLION TONNES OF CO2 EMISSIONS AVOIDEDConsidering the emission factor in each of the countries where ACCIONA generated renewable electricity in 2013 (which depends on the energy mix in each country), a total of 15.1 million tonnes of CO

2 emissions were avoided.

That is a 14.4% year-on-year increase in avoided emissions, equivalent to the atmospheric purification capacity of photosynthesis by 755 million trees.

The increase in avoided emissions is due to increased output by the company and the higher emission factor in Spain, where the generation mix was more biased towards coal than in previous years.

ACCIONA Energy footprint, by country total numbers (mW) at 31.12.2013

* Wind, in countries where technology is not specified.** Attributable MW, proportionately consolidated.

Total Company-owned MW 8,480

Attributable MW 7,596 (**)

Spain 5.974

Wind 4.743Hydro 912Solar thermal

250

Biomass

57Photovoltaic

3

Cogeneration

9

Portugal 165

Wind 119Photovoltaic 46

USA 692

Canada 181

Mexico 556

Wind 628Solar thermal 64

India 86

Australia 305

Germany 150

Operational installation Projects under construction Industrial plants

Brazil South Africa

Costa Rica 42

Chile

Poland 71

Hungary 24

Croatia 30

Greece 48

Italy 156

Total installed capacity at 2013 year-end (mW and %)

Total capacity installed in 2013 (mW and %)

ACCIONA’s special regime hydroelectric output, 920 GWh, accounted for 12.8% of the 7,098 GW generated in Spain.

As for solar thermal, the 430 GWh produced by the company (7.7% less than in 2012) accounted for 9.4% of Spanish output, while its 454 GWh of biomass-fired output (slightly more than the previous year) accounted for 9% of Spain’s total output with this technology.

A SMALLER FOOTPRINTACCIONA installed 105 MW of renewable capacity—all wind—in 2012. Of that total, 30 MW were in Spain (the last

in 2013, aCCiona energy avoided the emission of 15.1 million metric tonnes of Co2, 14% more than in 2012

CO2 emissions avoided by electricity production (million tonnes)

2012

13.2

2013

15.1

+14%

spaIn

5,974 mW (70.4%)

spaIn

30 mW (28.6%)

otHer countrIes

2,506 mW (29.6%)

otHer countrIes

75 mW (71.4%)

total: 8,480 mW total: 105 mW


Countries 2012 (gwh) 2013 (gwh) difference (%)

Spain 10,344 11,410 +10.3%

USA 1,959 1,998 +1.5%

Mexico 2,180 1,863 -14.5%

Australia 984 1,002 +1.8%

Canada 538 555 +3.2%

Portugal 278 321 +15.5%

India 208 244 +17.3%

Germany 269 242 -10%

Italy 188 236 +25.5%

South Korea 196 179 -8.7%

Greece 111 125 +12.6%

Poland 67 108 +61%

Croatia 0 66 -

Hungary 54 50 -7.4%

Total 17,376 18,399 +5.9%

ACCIONA Energy total wind output, by country

HigHEr Output And A prESEnCE in tHrEE nEw COuntriESACCIONA’s total wind power output amounted to 18,399 GWh in 2013, an increase of 1,023 GWh (5.9%) on the previous year.

Wind farms in Spain produced 11,410.4 GWh, up 10.3%, and those in other countries, 6,998.5 GWh, 0.5% less than in 2012.

Spain accounted for 62% of our total wind power output. The USA accounted for 10.9% and Mexico for 10.1%.

Australia provided 5.4%; Canada 3%; Portugal, 1.7%; and Germany, India and Italy 1.3% each. South Korea, Greece, Poland, Croatia and Hungary produced less than 1% each.

In attributable terms, ACCIONA’s wind output amounted to 15,998 GWh, an increase of 5.5% on 2012.

The company moved into the wind business in three new countries: Costa Rica, South Africa and Chile.

more than 7,000 mw of operational wind capacity

ACCIONA ended 2013 with 7,139 MW in company-owned wind capacity (6,272 MW attributable) in 14 countries.

A total of 105 MW were installed in the year, of which 75 MW outside Spain:

42 MW in the Chiripa wind farm in Costa rica (the other 7.5 MW to complete the farm were installed in the first quarter of 2014).

33 MW in the krobia (gostyn) wind farm in poland, with the result that the

company now has 71 MW of capacity in that Central European country.

In Spain, 30 MW were installed in four wind farms, three of them experimental:

6 MW in the Experimental Area of barasoain in Navarre, in addition to the 9 MW installed there in 2012.

9 MW in the vedadillo Experimental Area, also in Navarre.

6 MW in the villanueva Research Wind Farm (Asturias).

9 MW in the Serra de vilobí ii wind farm in Catalonia.

At the end of 2013, installed capacity in Spain amounted to 4,743 MW, 66.4% of ACCIONA’s total installed capacity with this technology.

The USA, with 628 MW, accounts for 8.8%; Mexico for 7.8%; Australia for 4.3%; Canada for 2.5% and Italy for 2.2%. They are followed by Germany (2.1%), Portugal (1.7%) and India (1.2%), while South Korea, Greece, Poland, Croatia and Hungary account for less than 1%.

188 mw under constructionAt year-end, ACCIONA had 188 MW under construction. Of which:

135.1 MW in South Africa corresponding to the authorized capacity of the Gouda wind farm (138 MW nominal). That facility, being developed by a consortium in which

ACCIONA has a 51% stake, will be completed in the first half of 2015.

45 MW in the punta palmeras wind farm in Chile, which is wholly owned by the company and will be commissioned in the last quarter of 2014.

7.5 MW in the Chiripa (Costa rica) wind farm which had not been installed at year-end but were finally installed in the early months of 2014.

These three countries, where ACCIONA previously had no operating facilities, expanded the scope of the Company’s international portfolio.

Wind

Installed capacity at 2013 year-end (mW and %)

Capacity installed in 2013 (mW and %)

ACCIONA Energy wind output

total (gWh)

2012

17,376

2013

18,399

+5.9%

attributable (gWh)

2012

15,165

2013

15,998

+5.5%

spaIn

4,742.7 mW (66%)

otHer countrIes

2,396.7 mW (34%)

total: 7,139.4 mW

spaIn

30 mW (29%)

otHer countrIes

75 mW (71%)

total: 105 mW


rECOrd Output duE tO HigH prECipitAtiOnACCIONA has 912 MW of wholly-owned hydroelectric capacity in Spain, in the form of 80 plants. Of these, 680 MW are registered as ordinary regime (conventional) and their output is sold in the electricity pool; the other 232 MW are registered in what, to date, was called the “special regime”.

In 2013, ACCIONA generated 2,882 GWh with its hydroelectric plants, 58% more than in 2011, due to very high precipitation in the year. Conventional plants accounted for 68% of that output (1,962.8 GWh) and special regime plants for the other 32% (919.7 GWh).

Hydroelectricity represented 12.9% of ACCIONA’s total output and 14.4% of its attributable output.

hydroelectric

SligHt dEClinE in prOduCtiOn ACCIONA Energy owns 314 MW of operational solar thermal generating capacity. Five 50 MW plants in Spain (three in Extremadura and two in Andalusia) account for 250 MW, and a plant in the United States (Nevada desert) accounts for the other 64 MW.

These plants, all of which use parabolic trough technology, produced 546 GWh in 2013, 8.4% less than in the previous year. The plants in Spain produced 7.7% less than in 2012, while output by the Nevada plant was 11.2% lower.

Solar thermal accounted for almost 2.5% of ACCIONA’s total electricity output and 2.7% of its attributable output.

solar thermal

Distribution of hydroelectric output in 2013 (gWh and %)

ordInary regIme

1,963 (68%)

specIal regIme

919 (32%)

ACCIONA Energy total hydroelectric output (gWh)

2012

1,828

2013

2,882

+57.7%

ACCIONA Energy solar thermal output (gWh)

2012

596

2013

546

-8.4%

ACCIONA Energy solar thermal capacity (mW)

2012

314

2013

314


mAJOr prOJECt in SOutH AFriCAACCIONA owns 49 MWp of installed capacity, of which 94% are located in Portugal, specifically in the 46 MWp Amareleja (Moura) plant. The remaining 6% are located in Spain, where the company has mainly developed plants for customers (which amount to an additional 66.8 MWp).

The company’s photovoltaic facilities generated 95 GWh in 2013 (5.9% more than in 2012), of which 91.5 GWh are attributable to the Amareleja plant, which is part-owned by Mitsubishi Corporation. Total attributable output amounted to 63.3 GWh, of which 60 GWh were produced by the plant in Portugal.

The consortium in South Africa led by ACCIONA Energy began the construction of the Sishen photovoltaic plant in 2013. A plant with a rated capacity of 74 MW (94 MWp) was awarded in the second round of the PPE REBID program to foster renewable energy. The plant, jointly owned with South African group Aveng, is situated in Northern Cape province, near the Kalahari Desert, and will be operational in 2014.

Photovoltaic

Distribution of photovoltaic output (gWh and %)

spaIn

3.3 (3.5%)

portugal

91.5 (96.5%)

ACCIONA Energy photovoltaic capacity (gWh)

2012

101

2013

95

-5.9%

electricity production from biomass was stable

AlmOSt 8,000 HOurS OF AnnuAl Output ACCIONA has three operational biomass-fired power plants in Spain: Sangüesa (25 MW), in Navarre; Briviesca (16 MW), in Castile and León; and Miajadas (16 MW), in Extremadura. The first two burn cereal straw, and the third burns woody agricultural waste.

The combined output of these plants, which work continuously throughout the year, was 454 GWh in 2013, representing nearly 8,000 equivalent annual hours.

That was 0.9% more than in 2012. It accounted for 2% of ACCIONA’s total output and 2.3% of its attributable output.

Biomass

ACCIONA Energy biomass output (gWh)

2012

450

2013

454

+0.9%

ACCIONA Energy biomass capacity (mW)

2012

57

2013

57


1,560 mw in OrdErS FOr tHE Aw 3000 turbinEACCIONA Windpower, the Group’s subsidiary specialized in wind turbine design, manufacturing and sale, produced turbines totalling 178.5 MW in 2013, 44% less than in the preceding year.

Of the total supplied, 129 MW were AW 3000 turbines (3 MW), and 49.5 MW were AW 1500 turbines (1.5 MW). The AW 3000 turbines were supplied to wind farms in Brazil (90 MW), Canada (30 MW) and Spain (9 MW), and the AW 1500 turbines to a wind farm in Costa Rica.

During the year, the company field installed 303 MW of wind turbines, some of them manufactured in previous years. In the AW 3000 platform, it installed 189 MW: in Brazil (96 MW), Poland (33 MW), Canada (30 MW) and Spain (30 MW). In the 1.5 MW segment, it installed 114 MW: in Poland (58.5 MW), Costa Rica (42 MW) and Spain (13.5 MW).

The most positive development for ACCIONA Windpower in 2013 was in the commercial area, as the company signed orders for 945 MW and has commitments to sign for another 615 MW in the first half of 2014, making a total of 1,560 MW, entirely in the 3 MW platform.

88% FOr tHird pArtiES Of ACCIONA Windpower’s order intake, 43% was for projects in Brazil, where variants of the 3 MW turbine with greater rotor diameters (116 and 125 meters) on 100 and 120 meter towers are proving very successful. In 2013, the company signed three contracts for a total of 303 MW and will sign another three contracts for a total of 363 MW in the first half of 2014.

Also in 2013, it signed contracts to supply projects to customers in the US (300 MW), Canada (102 MW) and Turkey (57 MW), and in 2014 will sign one for Mexico (252 MW).

As a result, ACCIONA Windpower will supply 1,377 MW (88% of the aforementioned total) to customers outside the ACCIONA Group.

The other 12%—183 MW—is for ACCIONA Energy: 138 MW for a wind farm in South Africa, for a consortium in which the company owns 51%, and 45 MW for a wind farm in Chile owned 100% by the company.

As a result of new order intake, the company’s manufacturing plants in Spain will operate at full capacity in 2014 and part of 2015.

COSt rEduCtiOnIn 2013, ACCIONA Windpower undertook a program to reduce the cost of energy (COE) associated with each wind turbine; the COE combines a machine’s capital cost (acquisition of components, manufacture, transport,

installation and commissioning) and the cost of operating and maintaining it over its useful life (25 years on average). In 2013 alone, the company managed to cut the COE by 13% and expects to reach 25% by the end of 2014.

This program delivers a wind turbine that is very competitive in the fastest-growing segment of the wind power business at present: 3 MW units.

mAnuFACturing plAntS in brAzilIn 2013, ACCIONA Windpower opened a turbine hub manufacturing plant in Brazil (Bahia state) and began building a nacelle assembly plant in that same state which will be operational in the second half of 2014. This initiative, together with the procurement of major turbine components in Brazil, aims to fulfil the local content requirements imposed by Brazil for the development of wind energy.

ACCIONA Windpower is accredited with FINAME, which enables wind farm developers to acquire AW turbines with soft loans from the Brazilian Development Bank (BNDES).

In 2014, ACCIONA is already manufacturing some turbine units in Brazil and in 2015 it will begin supplying projects in that country from its Bahía assembly plant.

Aw 3000 turbine orders (mW and %)

in 2013, aCCiona Windpower signed orders for 945 mW and has commitments for another 615 mW

Wind turbines

brazIl 666 mW (43%)

usa 300 mW (19%)

mexIco 252 mW (16%)

canada 102 mW (6%)

turKey 57 mW (4%)

cHIle 45 mW (3%)

soutH afrIca 138 mW (9%)

total 1,560 mW

Customers 1,377 mW (88%)

aCCiona energy 183 mW (12%)


in FOur COuntriESAs regards EPCs (turnkey projects for third parties), ACCIONA Energy signed contracts in 2013, and has commitments for the first half of 2014, totalling 427 MW.

The company will complete commissioning of the photovoltaic plant in Royalla, Australia (24 MWp) for FRW in spring 2014. This is ACCIONA Energy’s first turnkey facility in Australia.

Additionally, the company is to commence construction of the South Canoe wind farm (102 MW) in Nova Scotia (Canada) for local developers. The project will be completed in 2015. It will also design and build an ambitious

252 MW wind farm in Mexico, for which negotiations are currently concluding. In both cases, the wind farms will use ACCIONA Windpower 3 MW turbines.

The company will build two photovoltaic plants in Chile totalling 49 MWp for a local utility.

Additionally, ACCIONA will participate as a minority partner in other developers’ projects if that will enable it to land turnkey construction contracts.

The company’s experience in the development, construction and operation of its own facilities—almost 8,500 MW—is an asset in its services offer.

Turnkey installations for customers (in 2014)

Country technology Capacity (*) Commissioned

Australia Photovoltaic 24 1H 2014

Canada Wind 102 2015

Mexico Wind 252 2015 - 2016

Chile Photovoltaic 49 2014 - 2015

Total 427

(*) MW in wind; MWp in photovoltaic

56% grOwtH in SAlES tO End uSErSACCIONA expanded the supply of renewable energies to large accounts in Spain in 2013. Its subsidiary ACCIONA Green Energy Developments supplied 5,110 GWh, an increase of 56% with respect to 2012.

ACCIONA sold electricity—100% renewable as certified by the Spanish National Markets and Competition Commission—to a large number of companies and entities, including Adif, Acuamed, Telefónica and the Prado Museum.

The company has signed additional contracts with other clients in 2014, among them Seat-Volkswagen, Canal Isabel II Gestión and Danone.

ACCIONA Green also manages sales to the Spanish electricity pool of power produced by Group installations and customer-owned facilities, totalling 6,160 MW. In 2013, the company sold 15,949 GWh to the market.

Electricity sales to final customers (gWh)

2010 2011 2012 2013

307 1,100 3,287 5,110

aCCiona supplied 5,110 gWh of

renewable electricity to end users

ePC contracts for customers energy supply


ASSEt impAirmEntSAt ACCIONA’s annual earnings presentation at the end of February, the Company highlighted the impact of the regulatory measures in Spain’s electricity sector on its financial statements for 2013.

The negative effect on ACCIONA Energy’s EBT amounted to 1.675 billion euros, due mainly to impairment of renewable assets in Spain and of goodwill.

The impact on EBITDA was 257 million euros (applying the effects of the final part of the regulatory reform, still not definitively approved, from 14 July 2013). The full-year impact, assuming average production and current prices, will be around 360 to 370 million euros.

tHE impACt in pHASESThe regulatory measures in Spain which have impacted ACCIONA’s accounts are as follows:

Act 15/2012, of 27 December, on fiscal measures for energy sustainability, established a 7% levy on generation revenues, a fee for hydroelectric output and a new remuneration framework for solar thermal production. In a normalized year, the impact of this Act will be around 100 million euros before taxes.

Royal Decree 2/2013 on urgent measures for the electricity system and financial sector eliminated the pool+premium option for remunerating renewable

energy (which had been adopted by the bulk of ACCIONA’s facilities), leaving the choice between a fixed tariff and the pool price with no premium; additionally, the index to update that tariff was revised downward. This measure has a pre-tax impact of 60 to 70 million euros during an average year.

Royal Decree Act 9/2013, of 12 July, adopting urgent measures to ensure financial stability of the electricity system. This Act gave rise to the draft Royal Decree regulating electricity production from renewable sources, cogeneration and waste, and the draft Order approving remuneration parameters for those categories of power production facilities. These two legal provisions had not been enacted at the time of writing this Annual Report; however, their potential effects have been estimated in ACCIONA’s 2013 financial statements. In a normalized full year, their pre-tax impact is around 200 million euros.

As a result of these regulations, 40% of wind assets in Spain, i.e. those that were commissioned prior to 2005, will lose their entitlement to a premium for electricity generated; additionally, remuneration parameters will be applied to those commissioned in or after 2005 based on criteria of reasonable returns on assets as established by the government.

events after year-end pArtnEr FOr tHE intErnAtiOnAl pOrtFOliOAs part of the 2013-2014 plan established by ACCIONA to address this regulatory impact, and in addition to the measures highlighted at the beginning of this section of the Annual Report (cost cutting, capex reduction, and divestments in non-core countries), the Company announced plans to sell up to 49% of its international asset portfolio to a financial partner.

This operation is expected to be completed in the first half of 2014, and will have an impact on ACCIONA Energy’s net 2,273 MW, both operational and under construction, in 14 countries on five continents.

It will enable the Company to reduce debt and drive growth in international markets. ACCIONA Energy will focus especially on emerging countries, which need to expand their energy capacity in line with economic growth and can do so using renewable sources, which are already competitive in some of those markets.

ACCIONA ENERGY INTERNATIONAL INSTALLATIONSAttributable capacity

(1) Consolidated assets have been calculated to date using the proportional consolidation method.

From 2014 onwards, due to accounting changes, the equity method will be used

Net MW: 2,273 (1)

USA 631 MW

Mexico 541 MW

Costa Rica

32 MW

South Africa 118 MW

Chile 45 MW

Canada

103 MW Portugal142 MW

India86 MW

Australia 272 MW

Croatia30 MW

Greece

35 MW

Italy156 MW

Poland71 MW Hungary

11 MW

Operational assetsUnder construction

Wind: 2,131 MWPhotovoltaic: 78 MWSolar thermal: 64 MW

the impairment of renewable assets

in spain had an impact on eBt of

1.675 billion euros

ACCIONA Energy’s international footprintnet capacity

1 Assets that were proportionately consolidated to date will be equity accounted from 2014 due to changes in accounting standards.


ACCIONA Agua designs, builds and operates plants for treating drinking water and wastewater, tertiary treatment of wastewater for reuse, and reverse osmosis desalination. It also manages the end-to-end water cycle for cities.

ACCiOnA Agua provides comprehensive solutions which contribute to sustainable development in the water industry. Since inception, the company has contributed to treating, processing, reusing, desalinating and managing water for over 70 million people in 20 countries on five continents, always to the highest standards of quality, innovation and sustainability.

ACCIONA Agua has placed its name on over 400 drinking water and wastewater treatment plants and over 70 desalination plants. It operates and maintains a full range of water treatment plants and provides end-to-end water services in over 180 cities (including water capture and distribution in 105 towns in Catalonia). innovation and the application of cutting-edge water technologies are among the cornerstones of ACCIONA Agua’s business approach. To this end, it has an r&d and innovation center in barcelona with a multidisciplinary team of over 30 highly-qualified, experienced people specialized in R&D applied to water and membrane technology. This extends from basic research in the laboratories through to analysis in pilot plants and industrial applications. ACCIONA Agua has more

than 19 patents related to desalination, biological membrane reactors, and reuse technologies.

The company has been recognized for seven consecutive years with various awards from global water intelligence magazine, one of the sector’s most prestigious publications, for the quality of its projects and its commitment to the environment and its professionals. Most recently, ACCIONA Agua was named Company of the Year for 2013.

In 2013, the company mainly executed projects outside Spain, when 91% of Design & Construction activity was international, compared with 77% in 2011. The Operation & Maintenance area’s international activities accounted for 10% in 2013, compared with 5% in 2011.

linES OF buSinESSdesalination (construction and operation)ACCIONA Agua, a world leader in sea and brackish water desalination by reverse osmosis, has built more than 70 desalination plants, which produce more than 2.2 million m3/day to supply over 10.5 million people. ACCIONA Agua also operates the majority of those plants.

ACCIONA Agua, an industry leader

The company’s extensive international experience is evidenced by its operations in Spain, the US, Australia, the UK, Italy, Peru, Algeria, Chile, Venezuela, UAE and Saudi Arabia.

COntrACtS ObtAinEd in 2013 Fujairah (united Arab Emirates) This is ACCIONA Agua’s third-largest contract in the Middle East. ACCIONA Agua, together with ACCIONA Infrastructure, was awarded the contract to design, build and operate (for seven years) the extension to the Fujairah desalination plant in the emirate of Fujairah. The expansion will increase capacity by 137,000 m3/day to a total output of 592,000 m3/day and serve a population of close to 600,000.

Design & Construction 2013

operation & maintenance 2013

2011 2011

spaIn 23%

InternatIonal 77%

spaIn 9%

InternatIonal 91%

spaIn 94%

InternatIonal 6%

spaIn 90%

InternatIonal 10%

... in business terms...

585 M€ IN TURNOVER IN 2013

2,806 WORKFORCE IN DECEMBER 2013

10,730M€ BACKLOG IN DECEMBER 2013

ACCIONA annual report 2013 63 ACCIONA AguA 62 aCCiona 2013

design and construction of plants for drinking water, wastewater and reuse, and plant Operation & maintenanceACCIONA Agua has built 115 drinking water treatment plants with a total capacity of over 7 million m3/day, supplying more than 26 million people. It has also built over 300 sewage treatment plants with a total capacity of more than 11.8 million m3/day, serving over 53 million people. The company’s main water infrastructure is located in Spain, Portugal, Italy, Puerto Rico, the Dominican Republic, Morocco, Australia and Egypt.

ACCIONA Agua aims to optimize Operation & maintenance processes by minimizing energy consumption, ensuring optimal process performance, controlling water quality, and assuring proper environmental management of sludge, waste and by-products from the treatment processes. The company seeks to minimize operating costs and maximize the useful lives of facilities.

The company obtained the following contracts recently in the water treatment plant design & Construction segment (sewage, drinking water, and tertiary treatment for reuse).

ACCIONA Agua obtained notable plant operation and maintenance concessions in 2013:

la China wastewater treatment plant

(Spain)

The contract includes operation and maintenance of the plant for 4 years. It has capacity to treat 3.75 m3/second (324,000 m3/day) serving around 2 million people in the following districts of Madrid: Chamartín, Tetuán, Moncloa-Aravaca, Chamberí, Centro, Arganzuela, Retiro, Ciudad Lineal, Salamanca, Moratalaz and Puente de Vallecas.

Arroyo Culebro wastewater treatment

plant (Spain) ACCIONA Agua renewed its contract for four years for the Arroyo Culebro Cuenca Baja wastewater treatment plant, which it has been operating since it completed construction. It is one of the most modern plants in Madrid, treating 2 m3/second (172,800 m3/ day, for 1,350,000 people), and uses a biological process to remove nutrients (nitrogen and phosphorus).

Hadda-1 and Arana-1 wastewater

treatment plants (Saudi Arabia)

The company was awarded the contract to operate and maintain the Hadda-1 and Arana-1 wastewater treatment plants, in Mecca, Saudi Arabia, for two years with a possible extension. Together, the plants have a capacity of 375,000 m3/day.

martos drinking water plant (Spain)

ACCIONA Agua won the contract to operate and maintain the Martos drinking water treatment plant and the water mains supplying Víboras

and Quiebrajano reservoirs in Jaén, guaranteeing water supply to over 200,000 people in 17 towns in Jaén province.

inAugurAtiOnS Notable inaugurations in 2013 include:

Oria medio wastewater treatment plant (Spain). Aduna, gipuzkoa. The company designed, built, equipped, assembled and commissioned the plant, which has a capacity of 28,080 m3/day, rising to 128,000 m3/day during rainy weather, and serves 115,317 people.

Alfamen wastewater treatment plant (Spain). zaragoza. Part of the Depur7B set of plants. This project is part of the Aragonese Water Institute’s Sanitation and Sewage treatment plan. This is the final plant in the Depur7B group to become operational.

...progress aCCiona agua has made for society...

115DRINKING

WATER TREATMENT

PLANTS BUILT, WITH A TOTAL

CAPACITY OF OVER

7 MILLION M3/DAY, SUPPLYING

OVER 26 MILLION PEOPLE

MORE THAN 300 TREATMENT PLANTS BUILT, WITH A TOTAL CAPACITY OF MORE

THAN

11.8 MILLION M3/DAY OF

WATER, SERVINGA POPULATION OF MORE THAN

53 MILLION PEOPLE

MORE THAN

70

DESALINATION PLANTS,

PRODUCING A TOTAL OF OVER

2.2 MILLION M3 OF DRINKING WATER

PER DAY, SUPPLYING MORE THAN 10.5 MILLION PEOPLE

MONTE DA ROCHA DRINKING WATER TREATMENT PLANT (PORTUGAL)

ACCiOnA Agua was awarded the contract to expand the Monte da Rocha drinking water treatment plant in Alentejo, Portugal, after which the plant will produce 6,400 m3/day, serving around 35,000 people.

COnStruCtiOn COntrACtS

NTOUM DRINKING WATER TREATMENT PLANT (GABON)

ACCiOnA Agua obtained its first contract in Gabon, to design and build a drinking water treatment plant, which will have a capacity of 140,000 m3/day. This will increase the supply capacity in the capital, Libreville, and its surrounding areas, serving an estimated one million people.

GABAL AL ASFAR WASTEWATER TREATMENT PLANT (EGYPT)

The company has been chosen to expand, design, build, commission, operate and maintain the plant for two years. It will have a capacity of 500,000 m3/day and will meet the needs of eastern Cairo, serving around 2 million people.


integrated water management servicesFor more than 30 years, ACCIONA Agua has been providing end-to-end water management services, supplying optimal quality water for daily use in a way that is environmentally friendly. End-to-end water management includes all phases of treatment, from raw water capture to purification at a drinking water plant, reservoir maintenance and control, distribution network management, distribution to consumers, maintenance of sewers, sewage treatment, and direct billing to end users.

Today ACCIONA Agua provides end-to-end water management services to over 180 cities in Spain, serving a population of over 7 million people. ACCIONA’s most significant water management contracts in Spain include end-to-end water management for the Tropical Coast

of Granada Group of Municipalities, renewed at the end of 2013; end-to-end water management as part of a public-private partnership with the Jaén Provincial Government in more than 35 municipalities, serving over 250,000 people; end-to-end municipal water management services in Molina de Segura (Murcia); and operation and maintenance of the entire sewer network in Valencia. ACCIONA Agua operates sewage networks in 25% of Madrid city.

nEw COntrACtSNoteworthy new contracts in 2013 include:

Almodóvar del Campo (Spain) ACCIONA Agua was awarded a 20-year end-to-end water management contract by the town, which includes supply, sewers, wastewater treatment and customer management services.

yuncos (Spain) Yuncos (Toledo) awarded ACCIONA Agua a contract to provide municipal drinking water supply, sewage and wastewater treatment, and customer management for 25 years. The company will serve 10,000 people and will also upgrade infrastructure and improve technology.

villafranca de los barros (Spain) In Extremadura, ACCIONA Agua obtained a 25-year concession, under which it will serve 13,000 people.

moraleja (Spain) The company landed a 23-year contract to supply water to Moraleja (Cáceres, Extremadura), where 7,000 people will benefit from its services.

Canal isabel ii One of the milestones of 2013 was the CYII contract to operate Madrid’s sewer network for four years.

r&d And innOvAtiOn Smart4Cáceres: The SmartWaterCáceres project is part of SmartWater4Europe, an EU research project that brings together 21 participants, including water utilities, technology companies, universities and research centers. ACCIONA’s Service, Automation and Control, and R&D and Innovation departments are executing

the project, which is being rolled out in the historic quarter and central part of the city of Cáceres. It includes a drinking water supply management system which allows for water quality, water consumption and network status to be monitored remotely in real time. As a result, Cáceres, which belongs to RECI (Spanish Network of Smart Cities), is a pioneer in incorporating Smart City technologies into its water supply system. ACCIONA Agua will use a single software platform that integrates several technologies, including remote meter readers, Geographic Information Systems, remote control information, a large number of water quality monitoring sensors and a mathematical model for predicting supply system performance. These, in turn, will enable ACCIONA Agua to develop an advanced business management strategy. The management system will be governed by the Business Intelligence platform, which allows for the detection of faults, jams or leaks as they happen, reducing the time required to locate and repair them. Until now, leaks could only be detected using conventional sound probes. These innovations are expected to

generate significant environmental benefits. The early detection of leaks, in particular, will significantly reduce the volume of drinking water that is “lost” or wasted.

OFrEA project, liFE+ The OFREA project aims to increase the amount of wastewater available for reuse in areas where the high salinity of treated water is a limiting factor, such as in coastal areas. ACCIONA Agua will research new desalination processes applicable to wastewater treatment and will work to reduce energy costs and analyze the suitability of output water for reuse, depending on the final purpose.

The OFREA project was chosen by the European Union as part of its LIFE+ programme, which aims to develop R&D and innovation projects with the greatest scope for impact on the environment.

The project will be executed over three years and will be implemented in cooperation with Murcia’s Sanitation and Wastewater Treatment Agency (ESAMUR).

enD-to-enD Water CyCle

01 raw water capture

02 Purification in drinking water

plant

03 reservoir

maintenance and control

04management of distribution

networks

05 Distribution

to end users

06 sewer

maintenance

aCCiona agua provides end-to-end water management

services in over 180 cities in Spain


OtHEr ACtivitiESACCIONA Agua has been very active in initiatives related to sustainability, sponsorship, participation in fora and conferences, training and awareness-raising in all areas related to water treatment.

Corporate Social responsibility world water day For the fourth consecutive year, ACCIONA Agua participated in World Water Day (22 March) by organizing activities in the towns where it operates. Highlights include children’s workshops, storytelling, a bicycle route, and tree planting in Cáceres and Soria (Spain).

water Stories On the occasion of World Water Day, the company distributed a collection of stories about water to schools in Spain. A total of 14,000 copies were distributed.

For the second consecutive year, and on the occasion of world Environment day, ACCiOnA water organized several fun water-themed activities in cities, including the 2nd Annual Painting Contest for kids, storytelling, face-painting, workshops on how to save water, and games involving the water cycle.

Carrera del Agua ACCIONA Agua, together with other members of the ATVM consortium, which is building the Atotonilco wastewater treatment plant, sponsored the Water Race in Mexico City, in which 5,000 runners participated. The race was organized to support victims of tropical storm Manuel in September 2013.

Social media 4th Facebook event on world water day This event allows people all over the world to send ACCIONA questions about water treatment.

twitter Active participation by ACCIONA Agua executives. ACCIONA Agua has three social media ambassadors in the company.

linkedin Creation of an ACCIONA Agua group with information about the annual meeting of executives and department heads, with a view to encouraging executive participation.

... creating real value...ACCiOnA AguA (hm3) 2013 2012

Desalinated water 99 hm3 121 hm3

Municipal water 133 hm3 51 hm3

Treated wastewater 431 hm3 396 hm3

TOTAL 663 hm3 568 hm3

The desalination plant in Adelaide obtained several awards in 2013, including: Water Industry Alliance Smart Water Award Australian Project of the Year Awards for Excellence – Technological Innovation IMPA Project Excellence Award in the Mega-sized project category 2013 GPM Global Sustainability Project of the Year Award

Several awards for the Adelaide desalination plant

World Finance magazine recognized the Aguas Tratadas del Valle de México Consortium (ATVM) with the 2013 award for the Atotonilco wastewater treatment plant. This award recognizes the plant’s capacity and scope: until now, only 5% of the country’s water was treated; going forward, 60% will be treated. This will mitigate problems related to health, crop irrigation and economic growth.

2013 Award of the year for the Atotonilco wastewater treatment plant

...recognition of a job well done...

With this award, Global Water Intelligence (GWI) magazine recognized the company’s achievements during the previous year and its contribution to the international development of the water industry. Moreover, the Adelaide plant—operated by ACCIONA Agua—obtained a distinction in the desalination plant of the year category.

water Company of the year

2013 Business Innovation Award in the field of new technologies for the first energy self-sufficient water treatment plant system which combines reused organic industrial waste and sewage sludge. The jury considered the project to be innovative in that it combines economic savings with a positive environmental impact.

Premios CINCO DIAS


The gradual economic recovery in Spain is attracting offers from investors and improving the outlook for business. The company has reinforced its position in Spain and strengthened its commitment to real estate in other countries.

Every aspect of the real estate sector continued to be affected by the general macroeconomic situation in 2013.

In Spain, easing of financial tensions and growth in exports are starting to drive the recovery in domestic demand.

Growth by the Spanish economy was insufficient to avoid a decline in GDP by close to -1.3% in the year.

The labor market is stabilizing and is approaching a turning point, albeit slowly: unemployment has declined for five consecutive months.

Real estate indicators reveal that investment in housing continues to decline. The contraction in new housing starts continues, although at a more moderate pace, resulting in a reduction in the number of new constructions.

In 2013, home sales in Spain were at their lowest level since 2007, when the historical series first began. Barely 300,000 units were sold in the year. Home prices continue to decline, although at a slower pace.

Sareb was created as a result of banks’ urgent need to restore their balance

sheets to health; and banks such as Santander, Popular, Caixabank, Bankia and Caixa Catalunya continued with the process of selling their real estate management divisions to various funds.

As regards the rental business, the occupancy rate of offices and of industrial and logistics buildings is very low as a result of the economic crisis, and this is the main challenge facing the market.

Office lease performance differed notably between Spain’s two main office markets: a sizeable 33% expansion in Madrid, contrasting with a slight decline in Barcelona in 2013.

Investment in rental space approached a turning point in the second half of the year. Investment volume expanded by 7% compared with 2012, and the number of transactions increased notably, from 13 in 2012 to 26 in 2013. The situation has changed due to the better economic outlook in Spain (risk premium), which is attracting investors and raising sellers’ expectations.

However, the credit crunch and low occupancy rates persisted in 2013, hindering greater market activity.

ACCIONA Real Estate, advancing steadily

In this context, ACCIONA Real Estate ended the year with turnover of 66.2 million euros, of which 53% corresponds to home sales and 47% to rentals.

1. rEAl EStAtE dEvElOpmEntACCIONA Real Estate sold 168 homes in 2013: 19 units in Spain, and the remainder in Mexico, Portugal and, mainly, in Poland.

It also delivered 125 homes to customers in 2013, of which 19% were in Spain and 81% were in other countries.

1a. real estate development in SpainThe Company maintained its discount policy on all of its developments in Spain. The policy, initially applied in 2009, is enabling the company to sell finished homes despite market difficulties.

In 2013, ACCIONA continued to focus on foreign buyers interested in coastal properties (Catalonia and the Canary Islands).

Zoning processes became more complicated in 2013 due to growing intervention by the courts in land use planning.

Despite such an adverse scenario, ACCIONA Real Estate continued to maintain and monetize land in 2013.

1b. international real estate developmentThe company was especially active in the residential property business in mexico.

ACCIONA Real Estate increased exposure to Mexico through subsidiary Parque Reforma Santa Fe, selling 68 luxury homes and delivering 27 units to customers.

Parque Reforma Santa Fe completed construction of Phase 2A of the Parque Reforma – Cumbres de Santa Fe luxury apartments in Mexico City. A total of 60 of the 62 homes in that phase had been sold by 2013 year-end, and 12 were delivered in December. Phase 2B of the complex will commence in April; 47 units of a total of 64 have already been sold.

aCCiona real estate obtained

66.2 M€ in turnover in 2013

ACCIONA annual report 2013 71 ACCIONA reAl estAte 70 aCCiona 2013

In Acapulco, 14 homes were delivered to customers as part of the second phase of the Playamar Tres Cantos project. This extensive beachfront development with views of the Pacific Ocean and more than 21,000 m² of green areas, swimming pools and a clubhouse, is Parque Reforma’s fourth project in Acapulco, where it has already delivered more than 600 homes.

The mexican market benefited in 2013 from favorable banking conditions and an increase in the number of loans and in total lending. Consumer confidence also increased, and buyers are increasingly choosing high-rise homes. These factors make Mexico an ideal market to continue with our growth strategy.

The company continued major efforts to reduce its housing stock in poland.

It sold 28 homes on Panska Street, in Warsaw’s financial district, and 52 homes in the Wilanów development, near Warsaw’s Wilanów Palace, a former royal residence. The sale of these 80 homes reduced stock by almost 74%.

ACCIONA Real Estate continues to operate in Brazil through projects in Penedo (Rio de Janeiro state) and Guarujá (São Paulo state). The company sold a plot of land in Guarujá in 2013.

2. prOpErty rEntAlSReal estate rentals in 2013 provided 31.3 million euros in turnover.

The Company ended the year with 73,548 m2 of office space under lease in Madrid, Barcelona, Sabadell and Zaragoza, and an occupancy rate of close to 90%, i.e. on par with previous years.

ACCIONA Real Estate continued to divest non-core assets in 2013, such as the D office building in the Albatros Complex, in Alcobendas, Madrid, with a total area of 15,138 m2 and 261 parking spaces.

As regards home rentals, Compañía Urbanizadora del Coto, S.L. (owned 50% by ACCIONA Real Estate), which has a portfolio of 853 homes in Madrid, ended the year with an average occupancy rate of 82%.

ACCIONA Real Estate continued to operate student residences in 2013, with space for close to 1,200 in Albacete, Murcia, Lérida, Castellón and Cádiz under its CAMPUS brand, ending the year with an occupancy rate of over 68%.

In the hotel sector, Hotel Condal Mar in Barcelona continued to operate in 2013 under the management of the Sol Meliá Group and its TRYP brand.

The Company retained ownership and management of Hotel Club Marítimo, in Sotogrande, a 41-room boutique hotel under the Small Luxury Hotels of the World brand.

The five-star Hotel Estrella del Mar in Marbella strengthened its market position. Its 4,000-m² beach club with spa, tropical gardens, gym and restaurant, with views of the sea, complement the hotel accommodation and establish it as a leading resort hotel.

3. AdvAnCing in SuStAinAbility, r&d And innOvAtiOn ACCIONA Real Estate, committed to sustainability, is aware of its impact on the surroundings. To preserve and harness resources, the Company applies conservation guidelines to all its day-to-day processes.

Its involvement in this area is reinforced by its active participation in the EU’s “Clear-up” R&D and innovation project, which pursues the goal of buildings with comfortable, healthy, environmentally-friendly living spaces.

As regards Parque Reforma’s Cumbres de Santa Fe I development (Mexico City), 140 homes obtained the Efficiency certificate (the second-highest of the three existing certification categories), under Mexico City’s Sustainable Certification and Environmental Efficiency Program, the goal of which is to preserve natural resources and improve citizens’ living standards.

New homes in the same development are being built with a view to obtaining the highest certification (“Excellent”) under that same program.

APPRAISALS OF THE GROSS ASSET VALUE (GAV) OF REAL ESTATE ASSETS, DEVELOPMENTS, INVESTMENT PROPERTIES AND FIXED ASSETS BY SEVERAL INDEPENDENT APPRAISERS TOTALLED 1.401 BILLION EUROS (2013 PRICES), BROKEN DOWN AS FOLLOWS:

Pre-tax cumulative capital gains on those assets amounted to 167 million euros at year-end.

aCCiona real estate at market prices

421 INVESTMENT PROPERTIES

26FIXED ASSETS

954INVENTORIES

1,401TOTAL

good banking conditions make mexico an appropriate market to continue our growth strategy


Trasmediterranea vessels travelled 1,084,943 miles in total, and passenger and vehicle numbers increased by 5.6% and 6%, respectively. New lines were added in Spain.

In 2013, Trasmediterranea managed a fleet of 18 own ships and 8 chartered ships at different periods throughout the year, and has 7 ships available for chartering to third parties and for sale. The ships sailed a total of 1,084,943 nautical miles.

In 2013, the company carried 2,653,721 passengers, 630,212 vehicles and 5,161,963 linear meters of cargo. The number of passengers increased by 5.6% and vehicles by 6% as a result of greater traffic on the Strait of Gibraltar routes; cargo transport expanded by 1.54%, due mainly to the new Valencia-Ibiza ferry line.

The Cruise Ship Unit handled 206 stopovers in the Port of Valencia and provided handling services to 437,218 cruise passengers.

The most noteworthy events in 2013 were as follows:

In February, the cargo line between Seville and Las Palmas de Gran Canaria and Santa Cruz de Tenerife become operational, supplementing the Cádiz-Canary Island route. The objective is to provide supplies to the islands and transport bananas and other Canary Island products to mainland Spain and the Balearic Islands.

A new route for passengers and goods between Valencia and the Port of Ibiza became operational on 5 March. For the

second consecutive year, the company presented a cooperation agreement with Estrella Damm beer in the Port of Valencia, on 27 June. The largest outdoor bar in the Mediterranean was built onboard the Scandola ferry, which covers this route. Participants at the event included Jorge Vega-Penichet and Ignacio Aguilera, Chairman and General Manager of Trasmediterranea, respectively; Jorge Villavecchia, General Manager of Estrella Damm; and Rafael Aznar, Chairman of Valencia Port Authority.

The new logo was imprinted on vessels and installations in May.

The contracts with the Spanish government for ferry transport of passengers and vehicles between mainland Spain and the Canary Islands, and the mainland and Melilla, concluded in October after two years. Trasmediterranea did not bid for the new tenders in June, in which no valid bids were presented.

The company continued to operate the contracts, which were extended to 31 December. That same month, Trasmediterranea was awarded a bridge contract for the Melilla lines (from 1 January to 30 April 2014) and for the mainland Spain-Canary Island line (to April 2014). In both cases, services,

logistics & Transport towards new horizons

schedules and tariffs will be the same as under the most recent contracts with the government.

Other notable events in the year:

The company, along with members of the Majorca Chamber of Commerce, formed part of a trade mission to Morocco in January led by the President of the Balearic Islands.

In early March, the company was awarded a contract by the Spanish Army to transport goods to the Balearic and Canary Islands, Ceuta and Melilla. It also signed agreements with Agriten, the Canary Island banana growers’ group, to transport bananas through 2015, and Gefco to transport its vehicles to the Balearic and Canary Islands.

Iberrail France, the general agent in France for all Trasmediterranea ferry tickets, inaugurated its new offices in Paris on 25 March.

In June, the company ferried 30,000 students on end-of-school-year trips between mainland Spain and the Balearic Islands. The Alborán catamaran was added to strengthen services on the route between Valencia and Ibiza (San Antonio) as from 28 June. The company collaborated once again with Air Europa to offer a Plane+Ferry combination, in force until

13 September, for Canary Island residents during their summer holidays.

The company began operating some ferry routes from the new Botafoc dock in July. Ticket sales, boarding card management and cargo services were transferred there in mid-October, while a sales office continued to operate in Ibiza’s old town.

The company had previously carried prefabricated beams and other materials

in 2013, the Company transported

630,212 VEHICLES

5,161,963 LINEAR METERS OF CARGO

2,635,721PASSENGERS

ACCIONA annual report 2013 75 ACCIONA lOgIstICs & trANspOrt servICes 74 aCCiona 2013

for the the Botafoc terminal from Valencia and Barcelona aboard the cargo vessel operating on that route.

In July, Trasmediterranea signed a collaboration protocol with Trasmapi to offer combined tickets from Barcelona and Valencia to Formentera via Ibiza.

New onboard services available since the summer include free Wi-Fi in common areas on eight ferries, a revamped website, a new travel search engine and new travel guides for the destinations served by the company. The company’s food service offer was certified by the Association of People with Celiac Disease and Gluten Sensitivity, and a Telepizza service was added to vessels on Balearic Island routes.

Activity on social media also increased, including Facebook (via the Me gusta el Mar... Trasmediterranea page), Twitter (@trasme_oficial) and Instagram (@trasmediterranea).

At the end of July, Trasmediterranea ferried Military Emergency Units to assist in extinguishing the Andratx fire. That same month, the Sorolla vessel participated in the search and rescue effort for 58 immigrants near Melilla.

In September, Olatz Gastelu-Iturri became the first woman to captain a company ferry.

On 21 September, GM Logistics began operating a new goods transport service to western Africa, operated by Trasmediterranea out of the Barcelona Ferry Terminal, serving: Abidjan (Ivory Coast), Douala (Cameroon), Lomé (Togo), Tema (Ghana), Cotonou (Benin), Lagos (Nigeria) and Dakar (Senegal).

In October, Trasmediterranea participated in roadshows in Málaga, Valencia, Madrid and Barcelona organized by the Balearic Island Ministry of Tourism to encourage Spaniards to visit the islands in low season.

Company Chairman Jorge Vega-Penichet and Managing Director Ignacio Aguilera met with the new President of the Balearic Island Port Authority, Alberto Pons, on 25 November.

At the end of November, the Baleares superfast ferry was chartered to transport over 300 trailers of material from Almería to Fuerteventura for the filming of the blockbuster movie Exodus.

On-the-job training for students of port management at the Ferry Terminal in Barcelona, as part of a cooperation agreement between the Mataró city government and Trasmediterranea, concluded in December.

ACCiOnA lOgiStiCSACCIONA Logistics has its own modernized fleet of 1,334 trailers, 1,444 containers (20’, 40’ and 45’ HCPW), 15 warehouses spanning over 300,000 m2, and 275,000 m3 of temperature-controlled facilities.

In March, the solar plant incorporated on the roof of the Interfrisa warehouses in Tarrasa, the result of a project with RdV, S.A., started to produce energy. The plant has a capacity of 357,210 Wp and is estimated to be able to produce 428,295 kWh/year. Jordi Ballart i Pastor, Mayor of Tarrasa, visited the facilities alongside Jorge Vega-Penichet, Trasmediterranea Chairman, and Carlos Gómez, ACCIONA Logistics Director, on 9 July 2013. Participating representatives from RdV, S.A. included Juan Ruiz de Velasco, Managing Director; Alberto Ruiz, Head of Energy; and Tomás Rivera, Head of Project.

Railway service between Madrid and Seville commenced in October 2013, to complement the existing banana and tomato logistics service. Temperature-controlled rail transport of goods commenced with two trips per week between Madrid and Seville.

2013, NOTABLE PARTICIPATION IN THE LEADING FAIRS

Once more, in 2013, the company participated in the top international tourism and logistics fairs. At Fitur, in February, the company had booths related to the regions of Spain in which it operates. The company signed intermodal transport agreements with Interbus and Avanza, and renewed tourism contracts with the City of Melilla.We also participated in ITB, berlin’s tourism fair, in March, the Cruise Shipping miami fair in April, and lOgiSmEd, Casablanca’s transport and logistics Fair, in the first week of May. It attended World Travel Market in London, held from 4 to 7 November, together with Turespaña, to enhance ferry ticket sales in the UK.

trasmediterranea assisted in extinguishing the andratx fire and the rescue of 58 immigrants


This division of ACCIONA, which focuses on providing services to companies, private undertakings and public administrations, groups a number of companies under a single brand in order to take advantage of synergies and to continue leading in the services sector.

ACCIONA Service is the result of combined efforts and a commitment to implement a multi-service model, through the coordination and management of all activities carried out by the various Group companies.

This brand groups ACCIONA Facility Services, ACCIONA Environment, ACCIONA Urban Services, ACCIONA Multi-services, ACCIONA Airport Services, ACCIONA Producciones y Diseño, ACCIONA Forwarding, and EROM (Renewable Energy Operations and Maintenance), among others. All of them are dedicated to providing services to companies and private sector undertakings as well as to public administrations.

In 2013, work was performed to foster integration and collaboration between units in pursuit of mutual enhancement and to take advantage of synergies between them. As a result, the new brand is now an established leader in the services

sector, with a strong impact in the media and events.

In the process of internationalization, a new company, ACCIONA & GSSG Facility Services MENA, was established in Qatar and will serve as the base for entering the Middle East market. We also strengthened our presence in many countries by accompanying our major clients in their international expansion.

ACCiOnA AirpOrt SErviCESIn 2013, ACCIONA Airport Services served more than 200 clients (200,000 operations) and is currently present in four airports in Spain (Palma de Mallorca, Menorca, Ibiza and Las Palmas) and three in Germany (Frankfurt, Berlin Tegel and Berlin Schönefeld).

In 2013, the Palma de Mallorca base passed the IATA Safety Audit for Ground Operations (ISAGO), which accredits the development and implementation of a safety system in conformity with the standards of the International Air Transport Association.

ACCIONA Service, integrating to succeed

The standard is specific to airport handling operators; the company adopted it voluntarily in order to demonstrate its commitment to safety.

Also in 2013, the handling contract at Frankfurt Airport was renewed for another seven years, until 2020, and we were recognized by several customers, including Lufthansa in Palma de Mallorca, as the best short and medium haul station in their network in the month of October.

in 2013, aCCiona service focused on integration

and cooperation between its various units

to optimize resources and retain its leading position

SERVED OVER

200CLIENTS (200,000 OPERATIONS)

WAS PRESENT IN

4AIRPORTS IN SPAIN

OPERATED AT

3AIRPORTS IN GERMANY

... in 2013 aCCiona airport service...

ACCIONA annual report 2013 79 ACCIONA servICe 78 aCCiona 2013

ACCiOnA FOrwArdingIn 2013, ACCIONA Forwarding experienced remarkable growth in some areas of traffic, and it expanded trade relations, especially in Asia.

The second involves the maintenance of high voltage installations associated with several wind farms and solar thermal and photovoltaic plants. The portfolio of wind assets under management was expanded by 600 MW to 3,500 MW, with the result that the company now ranks second in Spain in this field.

EROM is working with ACCIONA Energy and ACCIONA Windpower to maintain and enhance the reliability of the AW3000 wind turbines installed in Spain, as well as providing technical support in several countries for ACCIONA Energy and some of its clients (in Poland, Croatia, Australia, England, etc.).

EROM is committed to continuous improvement and innovation, in the knowledge that they represent a key competitive factor.

Development of high precision, high quality tools to improve ergonomics and efficiency during maintenance work. Certified for technological innovation by EQA (European Quality Assurance).

ACCiOnA intErprESSACCiOnA interpress again experienced substantial growth in 2013, as the subscription delivery business in Catalonia, which commenced in 2012, gained in strength.

Elsewhere, the company retained its position as Spain’s leading distributor of publications.

rEnEwAblE EnErgy OpErAtiOn And mAintEnAnCE (ErOm) EROM is the Group company specializing in operation and maintenance of renewable energy assets. Its aim is to achieve excellent maintenance to ensure that the equipment has a long service life, optimizing downtime so as to achieve greater productivity of customer installations and reducing O&M costs in the short and long term.

Two new lines of business were launched in 2013. The first is preventive and corrective maintenance of solar farms in Navarre, Extremadura and Ciudad Real that are operated by ACCIONA Energy and ACCIONA Solar.

With over 3,400 MW of wind capacity, 62,669 kWp of pV capacity

and a team of 500 specialized professionals, the company continued

its international expansion in 2013, moving into mexico, south korea,

Poland and the us, among other countries

TELEFÓNICA

The company again won the tender for transportation of mobile phones from China to Latin America, adding new origins and destinations; it carried 1,200,000 kg of mobile handsets by air during the year. There was also an increase in maritime transportation of landline telephony equipment to all the Latin American offices, amounting to a total of 2,500 TEUs. As a result of the high level of compliance with the requirements and transit times required by the customer, ACCIONA Forwarding was allotted contracts to ship to locations where the company did not have an office, and it achieved a 98% performance rating, indicating a high level of excellence.

PERISHABLES

Continuing with its drive to obtain more traffic in the food business, the company carried increased tonnage of fish between mainland Spain and the Canary Islands. It also obtained additional export traffic by air in this field (shark fins, tuna) from Spain to the Far East and China, carrying over 150,000 kg of fish. The company also obtained more asparagus imports from Peru to Spain, carrying over 300,000 kg.

TECHNOLOGY

Traffic of technology products, especially peripherals, electronic devices and aeronautical equipment, from Asia to Spain is rising, and the company increased traffic in this area by 400% with respect to 2012.

MACHINES AND TOOLS

The company commenced the transport of packages and cans by sea, having carried 1,100 TEUs. The company renewed the contract to handle all of Alcatel's logistics, resulting in an increase in traffic with the Canary Islands.

MAJOR PROJECTS

The construction of a solar power plant in Cape town (South Africa) required 3,855 metric tonnes of material to be carried, in four ships. The Panama Metro project required 10 shipments totalling 20 containers. Seventy-two containers, in 14 shipments, were required for the construction of the roof of Arena Natal stadium in Brazil.

traffic


Just-in-time system for communication with clients about the status of their equipment, directly from the wind farm.

Accident location and reporting system to control our fleet of vehicles and ensure our team’s safety.

Awards EROM was rated as the best independent maintenance provider by wind energy developers in the second survey conducted by Energías Renovables magazine, which was published in 2013.

In 2013, EROM expanded the certification of its comprehensive management system under the ISO 9001, ISO 14001 and OHSAS 18001 standards to all the new businesses and facilities mentioned above, with the result that 100% of its business is certified.

The agreement with the Navarre Government Department of Education to provide teachers with practical training in risk prevention concluded satisfactorily, and the company continues to work with the Spanish Government’s Ministry of Labor and the Regional Governments of Catalonia and Galicia in a number of areas related to wind turbine safety.

ACCiOnA prOduCCiOnES y diSEñOACCIONA Producciones y Diseño (APD)specializes in the design, production and installation of museums, exhibitions, shows, fairs, congresses and events. It delivers comprehensive solutions that include consulting, planning, concept, design, production, technical and artistic execution, exploitation and marketing. Quality, excellence, exclusivity and innovation are some of the features which characterize it and have won it a sound reputation in the industry.

milestonesThe year 2013 was a milestone in the international consolidation of the company, as international order intake accounted for 85% of the total, an increase of 25% year-on-year. Although APD has developed more than one hundred projects worldwide, last year it greatly increased its activity in the Middle East with projects in Qatar, Oman and Kuwait, with a strong possibility of moving into the UAE and Bahrain. It also expanded its presence outside Spain by opening a subsidiary in Oman, where it is developing the National Museum.

All of the events organized by APD in 2013 were carbon neutral, and these initiatives have avoided almost 500 metric tonnes of CO

2 emissions to date.

APD has been developing carbon-neutral events for its clients since 2012 (www.eventossostenibles.com). In such events, APD seeks to minimize CO2 emissions

associated with its activities and obtains the necessary emission rights for any CO2 emissions that cannot be avoided.

This division also organized the first event with accessible mapping for persons with disabilities: the Fuengirola, modern and medieval show. For the first time in an event of this kind, blind people were able to download, free of charge, an app providing a detailed audio description of what was being projected on the wall of the Town Hall. Persons with hearing difficulties had a reserved area close to the sound system so that they could hear the soundtrack that accompanied the images. Additionally, preferential seating was reserved for persons with physical disabilities.

The main activities carried out by APD in 2013 were:

Technical development, manufacture, supply and installation of the exhibits for the Olusegun Obasanjo Presidential Library and Museum in Abeokuta (Nigeria).

Project design, technical and constructive definition, organization of bidding documentation, and support in supervising production and assembly, for the House of European History at the European Parliament in Brussels (Belgium).

Technical development, manufacture, supply and installation of the museum

awards

The 2012 Music Day festival won the Golden Elephant for Best European Sustainable Event, as part of the European Best Event Awards, and the Bronze Medal for Best Responsible Event at the Eventoplus awards, which recognize the best events in Spain and Portugal. In this case, APD created and implemented a Sustainable Production Plan aimed at reducing environmental impacts and offsetting unavoidable CO

2 emissions. The

measures included designing an energy self-sufficient stage, selective waste management, choosing a fair trade catering service and ecological food, promoting the use of public transport and carpooling, using low energy lighting, and hiring local suppliers. APD also designed and produced the 2013 Music Day festival and its Sustainability Plan.

Best European Sustainable Event

The 2012 Multimedia Christmas Show in Seville won the Silver Elephant at the European Best Event Awards and Silver Medal for Best Cultural Event at the Eventoplus awards. Also, in 2013, APD designed and produced the The Spirit of Christmas show, sponsored by Movistar, in collaboration with the city of Seville.

European Best Event Awards


exhibits for the Msheireb Downtown Doha project in Doha (Qatar).

Technical development, manufacture, supply and installation of museum exhibits for the Boris Yeltsin Presidential Center in Yekaterinburg (Russian Federation).

Technical development, manufacture, supply and installation of the exhibits for the National Museum of Oman in Muscat.

Design, manufacture, supply, transportation and installation of the contents of the Santas de Zurbarán: Devoción y Persuasión exhibition at Santa Clara in Seville from 4 May to 20 July.

Design, manufacture, supply, transportation and installation of the contents for the Hajj, Journey to Mecca exhibition at the Museum of Islamic Art in Doha (Qatar), which opened on 9 October 2013 and closed on 5 January 2014.

Design, development and production of an immersive audiovisual installation entitled Monet’s Garden as part of a temporary exhibition devoted to the painter Claude Monet at the National Gallery of Victoria, Melbourne (Australia) from 10 May to 8 September.

Design, development, coordination, production and assembly of a 3D multimedia show to mark the Champions League Final at Trafalgar Square, London, on 22, 23 and 24 May.

Design, development, production and installation of a permanent Natives vs. Aliens 3D multimedia show at Lake Isla Mágica, Seville.

Design, development, production and assembly of a 3D multimedia show to mark the 1813-2013 Bicentenary of San Sebastián, projected onto the façade of City Hall on 20 and 30 June, and 1 and 2 July.

Organization and end-to-end management of the 23rd edition of SICAB (the International Horse Show) held at the Exhibition and Conference Center in Seville from 3 to 8 December.

Design, production and coordination of several corporate events: 13th edition of the Vodafone Journalism Awards; 6th Vodafone Awards for Innovation in Telecommunications; Adveo Leadership Workshop; 6th Bestinver Bestvalue Meeting for Investors; and 12th Bestinver Annual Investor Conference.

ACCIONA Service continues to provide clients with end-to-end solutions that include the design, management and operation of all of their non-core business activities. Once again, the company is the leading provider of these services to Spain’s top companies, particularly in the food, automobile and hospitality industries, as well as heavy industry and metallurgy. It also serves large service companies, shopping centers, banks and insurers.

In the area of services to public administrations, ACCIONA Service has achieved strong, steady growth. At a time when public services are being re-examined to ensure their sustainability over time as well as their quality, ACCIONA Service proposes management models which confirm that services can be optimized so as to continue delivering a better service to citizens. The best proof of this is our presence at the various echelons of the administration. From local level, where we deliver a range of services, to central government, where we serve some of the country’s largest infrastructures.

ACCIONA Services provides a complete services proposal, which includes:

ACCiOnA FACility SErviCES, ACCiOnA EnvirOnmEnt, And ACCiOnA urbAn SErviCESAn example of integration within the Group is the work by the executives of these three companies who, seeking to maximize the yield on their resources, have been working together to bid for complex, end-to-end projects to deliver services to the private and public sector.

ACCIONA Service is firmly established in the market for public and private services. Its wide range of services, and the ability to analyze and make proposals for improvement, enhance the value of the offerings of the various business lines within ACCIONA Service.

During the year, we continued to implement facility management projects for private companies in Spain and other countries. The research capabilities of our technical teams have enabled us to offer solidly grounded sustainable proposals that enable the management of companies and the control and optimization of production costs. ACCIONA Service acts as a partner that provides flexibility and improves service quality.

municipal services.

technical services and facility maintenance.

Handling.

event organization.

catering.

security services.

ancillary services.

park and garden maintenance and landscaping.

energy services.

specialized, technical cleaning services for industry, healthcare and laboratories.


ACCiOnA Service in the public Sector ACCIONA Service continues to expand successfully in the area of services to the community. Our fellow citizens’ living standards depend on, among other aspects, the quality of the services we deliver. The year 2013 was one of considerable growth in public services in all areas, in terms of the range of both services and administrations. We operate in the main classes of infrastructure, such as transport, rail and air. We have a presence in many large cities.ACCIONA Service is engaged in the following areas, among others:

Municipal waste collection and transport.

Park and garden maintenance and landscaping.

Ecopark and recycling center management.

Waste transfer station management. Treatment plant management. Landfill and composting plant operation.

Street cleaning. Cleaning and maintenance of beaches, coastlines and housing complexes.

Environmental services. Energy services.

ACCiOnA Service in the private Sector ACCIONA Service maintains its leading position in the automotive industry because of its presence in most manufacturing plants in Spain and of the diversity of services it offers: comprehensive internal logistics, technical cleaning, maintenance and support services in factories such as FORD Almusafes, NISSAN Zona Franca, SEAT Martorell, GENERAL MOTORS Figueruelas, Volkswagen Autoeuropa (Portugal), etc.

It is also active in the field of facility management in Spain and other countries, providing comprehensive multi-service solutions: San Luis Potosí University (Mexico), etc.

During 2013, it was very active in the area of sports facilities, particularly golf course maintenance in Spain, such as Vallromanes golf club in Barcelona and Almenara Golf in Sotogrande, Cádiz.

ACCIONA Service also has a notable presence among the leading hotel groups in Spain, to which it offers a novel multi-solution. Examples include AC Hoteles and NH Hoteles.

Another area in which ACCIONA Service has strengthened its strategic positioning is the food industry in Spain and internationally, and the banking industry, and it landed new contracts for cleaning, maintenance, logistics, etc. in companies such as Nestlé, Cobega, BBVA, Bankinter and Campofrío.

It is also active in the area of energy efficiency, having undertaken projects in the automotive industry and at hospitals such as the Guadarrama hospital in Madrid.

NOTABLE CONTRACTS IN 2013

Maintenance of Historic Parks in Madrid: eight-year contract worth 76 million euros in total.

Cleaning services at municipal buildings in Gandía: four-year contract worth 6 million euros in total. Beach and street cleaning services at Isla Cristina: one-year contract worth 1.3 million euros.

Public school cleaning in Móstoles: three-year contract worth 6.9 million euros in total.

Green area maintenance in Gandía: four-year contract worth 5.6 million euros in total.

Municipal building cleaning in Pamplona: two-year contract worth 1.48 million euros in total.

Street cleaning and municipal waste collection in Vinarós: eight-year contract worth 8.0 million euros in total. Green area maintenance at Las Palmas airport: three-year contract worth 1.68 million euros in total.

Boarding ramp operation at Prat airport for AENA; two-year contract worth 4.4 million euros in total.

NOTABLE CONTRACTS IN 2013

Multiple services at SEAT factory, Martorell: three-year contract worth 13.2 million euros in total.

Logistics services at VW Autoeuropa: three-year contract worth 10.5 million euros in total.

Cleaning at the Ford Logistics Center in Almusafes: five-year contract worth 19.9 million euros in total.

Contract to clean Alsa buses, stations and workshops: three-year contract worth 17.1 million euros in total.

Aircraft cleaning in Tenerife and Barcelona for Globalia: one-year contract worth 3 million euros.

Baggage handling for Creuers del Puerto de Barcelona: one-year contract worth 3.6 million euros.

Facility management services for Bankinter: one-year contract worth 1.5 million euros.

aCCiona service retained its leading

position in the automotive industry, working at most

automobile production plants in spain


Bestinver expanded assets under management by 51% in 2013, to 8.93 billion euros. Average assets in the year exceeded the 2012 figure, with the result that revenues increased to 114 million euros.

bEStinvEr Bestinver, S.A. is 100% owned by ACCIONA. Through subsidiaries Bestinver Gestión, S.A. and Bestinver Pensiones, S.A., it provides asset management services in the form of mutual funds, pension funds and SICAVs. The company’s third subsidiary is Bestinver S.V., S.A., a securities firm with a seat on the Madrid Stock Exchange.

Bestinver increased assets under management by 51%, to 8.93 billion euros at 2013 year-end. This growth is attributable to the average yield of 32% on portfolios managed by the company (which increased assets under management by 1.956 billion euros) and to a net influx of 1.059 billion euros in assets under management. Average assets in the year exceeded the 2012 figure, with the result that revenues expanded by 39%, to 114 million euros, and EBT increased by 42%, to 82 million euros. The number of investors rose by 22%, to 65,000.

The stock markets were the star performer in 2013. Global equities appreciated by more than 20% on

average during the year, according to the MSCI World Index. This appreciation was visible in both the US and Europe, although the former outperformed the latter. The S&P 500 reached a new record high and closed the year up 30%. However, the Nikkei performed even better, appreciating by 56%, its best year since 1972. BRIC indices performed the worst. Brazil, Russia and China ended 2013 in negative territory, in contrast with most bourses around the world.

The Ibex 35 appreciated by 21.4% in 2013 and reached 9,916 points, the highest level since 2009. This performance put an end to three consecutive years of declines: 4.6% in 2012, 13.11% in 2011, and 17% in 2010. Nevertheless, the Ibex 35 is still a long way from the levels attained before the crisis hit in 2008: it peaked at 16,000 points in November 2007. The Lehman Brothers bankruptcy in 2008 triggered the largest-ever decline by the Ibex 35, which shed 39%, though that was partially offset by 30% appreciation in 2009. However, high volatility persisted in 2013. The Spanish index swung

Bestinver,in search of yields

between its low and high for the year in less than four months: from 7,553 at market close on 24 June to 10,037 on 21 October.

Notable support from the central banks, flooding the market with liquidity and reducing returns on most financial assets to historical lows, drove investors to search for yields. This situation favored equities, which also benefited from expectations of economic recovery. This upward trend is expected to continue in 2014, although significant additional growth will hinge on evidence of the expected recovery in corporate earnings.

In the fixed-income market, pressure on Spanish government debt declined notably in the last 12 months. Spanish 10Y bonds’ risk premium over the German Bund was 223bp at year-end, with a yield of 4.15%, i.e. practically half the figure in January 2013 (400bp) and a far stretch from July 2012 levels (639bp), before Draghi announced clear support for the euro area. As for other non-core countries, Italy’s risk premium ended the year at 221bp, Portugal’s at 421bp and Greece’s held steady at 650bp.

+70%

2012

5.916

2013

8.930

2011

5.240

Bestinver assets under management (billion euros)

ACCIONA annual report 2013 89 Other businesses: bestinver 88 aCCiona 2013

After two years as ECB President, in 2013 Mario Draghi cut rates for the fifth time, from 1.5% to the current 0.25%, after executing several unconventional initiatives, including massive injections of liquidity into the banks with a 3-year maturity and a sovereign debt purchasing program in exchange for aid, which reined in the chaos threatening non-core Europe.

The decision to cut interest rates was further justified after 2014 euro area GDP growth projections were downgraded from 1.4% to 1.1%. Euro area inflation in October was 0.7%, compared with expectations of 1.1% (and it actually dipped into negative territory in Spain: -0.1%), i.e. a far cry from the ECB’s 2% target. In this context, the ECB expects rates to remain at current levels or even lower for a lengthy period of time, and it has extended its liquidity offer until July 2015.

In the currency market, the euro performed well during the year, compared with weak performance by the yen and

US dollar due to liquidity injections by the Bank of Japan and the Federal Reserve. The dollar ended the year at a five-year high with respect to the yen. The euro appreciated by close to 20% against the yen and by 5% against the dollar, to end the year at EUR/USD 1:1.38.

However, gradual tapering by the Fed and strong growth in the US compared with stagnation in Europe in 2014 could reverse the situation between the two currencies. Moreover, rates in the euro area will remain low since the ECB is assuming that inflation will continue to be controlled in the coming years, after falling below 1% in the last three months.

Equities appear to be the best investment option in 2014, supported by central bank liquidity and the incipient global economic recovery. The yields on currencies, deposits, and most fixed-income do not exceed inflation, fuelling interest in equities.

We expect similar volatility to last year given the number of persisting uncertainties. At Bestinver, where are always have a long-term mindset, we take advantage of short-term mismatches in the market to rotate portfolios, increasing or reducing positions in response to share performance. However, as strong believers in value investing , our primary focus is company valuation, to which the team dedicates 95% of its time.

At the end of 2013, Bestinfond’s net asset value was at a record high, far above the level attained in 2007, just before the crisis began. As a result of this good performance, some of the investments in portfolio have exhausted their upside potential, which poses the usual challenge of reinvesting in attractive alternatives. Nevertheless, we are investing in several companies that were not in portfolio in 2012. At the end of 2013, following notable returns and the consequent reduction in upside, and given the difficulties encountered in creating

value, the portfolio had a historically high level of cash: close to 10%—a level last seen in 2006-7.

Bestinver’s model portfolio, which is applied by the Bestinfond mutual fund, obtained a return of 31.82% in 2013, compared with 19.35% by its benchmark (70% MSCI, 20% IGBM, 10% PSI). Since its creation in 1993, this portfolio has generated an annual return of 16.52%, compared with 8.97% by its benchmark.

In the last 20 years, Bestinver has received a total of 117 awards in recognition of its management performance.

Bestinver’s management spends most of its time evaluating companies

notable support from the central banks, which flooded the markets with liquidity and reduced returns on most financial assets to record lows, drove investors to search for yields


Hijos de Antonio Barceló, founded in 1876, is one of Spain’s top 20 wineries. The company focuses on producing, ageing, bottling and marketing quality wines, and operates in Spain and in other countries.

International business accounts for 42% of turnover, placing the company in a more stable position in view of the current situation in Spain. South America accounted for 19.6% of turnover, Europe for 12.2% and the rest of America for 8.5%. The outlook is positive for the United States following a recent agreement with Bronco Wines, the fourth-largest producer of wine in the US, to import our leading wines.

The company has wineries in five of Spain’s most prestigious winegrowing areas, where it operates various business lines:

wines with denominations of Origin (d.O.) Ribera del Duero, Rueda and Toro This line accounts for almost 26% of the group’s total turnover. This business operates under the Viña Mayor umbrella brand, which has wines from those three D.O.s:

Viña Mayor D.O. Ribera del Duero, which is among the top five wineries in this district.

Viña Mayor D.O. Rueda and Viña Mayor D.O. Toro, which were added more recently and expanded by 15% in 2013.

dOCa wines. rioja: bodegas palacio With leading brands such as Glorioso and Cosme Palacio, Rioja accounts for 24% of Hijos de Antonio Barceló’s turnover. Rioja sales advanced by 5% in 2013.

Facilities in this region are to be upgraded and expanded in 2014.

Quality rosé wines from bodegas peñascal (Valladolid) Peñascal, Spain’s leading brand in quality rosé wines, performed well in 2013, expanding by 4%. It accounts for 19% of turnover.

Aperitifs, other sweet wines, and wines from Castile and león, account for the other 31% of turnover.

Innovation is a distinctive source of value for a consumer goods company, and Hijos de Antonio Barceló is developing new products for the Lifestyle segment, such as moscato wines under the Ponte Vecchio brand, and Peñascal Frizzante 5.5, a wine with a low alcohol content to cater for a younger public.

tHE vinEyArdSThe Group owns 284 hectares of vineyards in Finca Caserío de Dueñas (Villaverde de Medina - Valladolid) and 82 hectares in Finca Anzil (Toro). It applies a vertical integration approach, which allows it to control product quality from growing the grapes to shipping the wine.

Hijos de Antonio Barceló, which combines tradition and innovation in its winemaking, is certified to the following standards: ISO 9001 (Quality Management Systems), ISO 14001 (Environmental Management Systems), and ISO 22000 (Food Safety Management Systems). The company also maintains a commitment to the environment: Bodegas Viña Mayor offset its CO

2 emissions in 2012 and the Ribera

del Duero vineyard meets the standards to qualify as an ecological vineyard.

The company’s strategy focuses on:

Developing a broad portfolio from prestigious wine districts that is in tune with demand.

Developing brands in its segment and expanding internationally.

Implementing a policy of continuous improvement in management of the company’s various functional areas.

With almost 140 years of experience, Hijos de Antonio Barceló remains firmly committed to expanding internationally and to developing its brand in Spain. The quality of its wines and the balance between tradition and innovation are its distinguishing features.

hijos de Antonio Barceló, a winery with a global reach

Internationalization of the business provides the

company with a more stable position within

the current economic situation


In 2013, ACCIONA increased its commitment to R&D and innovation while also adopting a more flexible strategy to adapt innovation to the business. As a result, it received many national and international awards.

The European Union’s Horizon 2020 Programme was defined and approved in 2013. The EU’s new Research and Innovation Framework Programme for 2014-2020 contains changes in terms of the focus of the programs and funding instruments.

In this context, and due to global market performance, ACCIONA has deepened its commitment to innovation in the business, refocusing its innovation strategy in all of the businesses with a view to adapting to the changing context.

It remains committed to R&D and innovation, having increased spending to 173.2 million euros in 2013, an increase of 4.2% with respect to 2012 (166.2 million euros). ACCIONA is staunchly committed to leveraging synergies between Group divisions.

The R&D and innovation pipeline included 233 projects in 2013, of which 55% were under way in its Technology Centers. The Company had a team of 294 R&D professionals at year-end.

The previous four-year R&D and innovation program (2009-2012) was satisfactorily concluded in 2013. Half of the total budget, some 378.3 million

euros, was financed by the European Investment Bank (EIB).

ACCIONA’s positioning in the top innovation rankings improves year after year. ACCIONA is the Spanish company with the greatest growth in R&D spending in the last three years, according to the 2013 EU Industrial R&D Investment Scoreboard, drawn up by the European Commission’s IRI (Economics of Industrial Research and Innovation).

Global consulting firm Booz & Company ranked ACCIONA 461st of the 1,000 listed companies with the highest R&D and innovation spending. That is a notable improvement on 620th position, which ACCIONA attained in 2012.

ACCIONA’s innovation policy continues to receive international accolades:

Adelaide desalination plant: Global Water Intelligence named it Desalination Plant of the Year, and Green Project Management named it Sustainable Project of the Year.

The Atotonilco water treatment plant (Mexico) was named Project Finance Deal of the Year by World Finance.

ACCIONA Innovation, r&D and innovation that adapts to the situation

ACCIONA Energy’s ILIS Project took second place at the Solar Power Generation USA 2013 awards for the best renewable energy integration project.

The following distinctions were received in Spain:

Business Innovation Award in the field of technology for the energy self-sufficient water treatment plant which reuses its own sludge and other industrial waste (Cinco Días).

100 Ideas Award for the Alcantarilla water treatment plant (Murcia) (Actualidad Económica).

ACCIONA Infrastructure received the Construmat 2013 award for technological innovation in the civil engineering category for its walkway over the Júcar River (Cuenca).

Based on the target in the 2010-2015 Sustainability Master Plan, the Company aims to double its patent portfolio in the period and has advanced considerably towards that goal, having added 17 new patents. The Company had 111 patents, granted or pending, at the end of 2013.

ACCIONA approved a corporate regulation on innovation management in 2013, marking an important milestone in R&D and innovation management.

AENOR, the Spanish Association for Standardization and Certification, renewed ACCIONA’s R&D and innovation

management system certification to the UNE 166002:2006 standard. The R&D and innovation management system sets targets that are aligned with the 2010-2015 Sustainability Master Plan.

R&D investment (million euros)

energy Infrastructure Water otHers

2012

166.2

2011

93.6

2010

88.1

2009

92.2

2008

71.1

2007

39

2006

22.6

2013

173.2

Investment by business area

38%

47%

10%5%

2010

38%

30%

25%

7%

2011

30%

47%

20%

3%

2012 2013

44%

34%

20%2%

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

www.acciona.com

PRODUCTION:

mrm Worldwide spain, s.a.

LEGAL DEPOSIT:

m-15054-2014

© 2014 ACCiOnA S.A. All rights reserved.

annual report 2013 -...

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