LETTER FROM THE CHAIRMAN

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(1)WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. annual report 2007.

(2) WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963.


(4) Published: ACCIONA, S. A. Department of Institutional Relations, Corporate Marketing and CSR. Avda. Europa, 18 Parque Empresarial La Moraleja 28108 Alcobendas (Madrid) Spain Produced by: MRM Worldwide Spain, S. A. Legal deposit: M-25389-2008. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. annual report 2007.

(5) Principal Dimensions. 4. ACCIONA Energy. 58. Letter from the Chairman. 6. ACCIONA Agua. 78. Mission, vision and values. 8. ACCIONA Environmental and Urban Services. 84. Milestones in 2007. 12. ACCIONA Logistics and Transport Services. 88. Organigram. 16. Other businesses. 98. ACCIONA International. 18. Human Resources. 102. ACCIONA in 2007. 26. Innovation. 110. ACCIONA Infrastructures. 32. Corporate Responsibility. 120. ACCIONA Real Estate. 50. Corporate Gobernance. 128. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. index.

(6) Graphics of Stock in 2007 compared to IBEX-35 and DJSI (% of revaluation). Dividend distribution Million euro 231.9* 183.7 147. ACCIONA. 2005. 2006. 2007. (*) Subject to approval of General Shareholders’ Meeting 2008. Stock exchange information January-December IBEX-35. DJSI. JANUARY. FEBRUARY. MARCH. APRIL. MAY. Sales Million euro. JUNE. JULY. AUGUST. SEPTEMBER. OCTOBER. NOVEMBER. DECEMBER. EBITDA Million euro 2006. 2007 Var. (%). Infrastructures Real Estate Energy Logistic and Transport Services Environmental and Urban Services Other business Endesa Adjustments. 3,558 446 851 960. 3,639 446 1,093 925. 2.3 0.0 28.4 -3.8. 585 121 0 -249. 757 165 1,203 -275. 29.4 37.2 n/a. SALES. 6,272. 7,953. 26.8. 143.05 216.65 51.45% 136.8 241.9 13,768. BAI Million euro 2006. 2007 Var. (%). Infrastructures Real Estate Energy Logistic and Transport Services Environmental and Urban Services Other business Endesa Adjustments. 279 121 369 117. 284 125 392 69. 1.7 3.4 6.3 -40.7. 48 39 0 -13. 46 72 429 -11. -3.8 86.8 n/a. EBITDA. 960. 1,407. 46.6. 2006. 2007 Var. (%). Infrastructures Real Estate Energy Logistic and Transport Services Environmental and Urban Services Other business Endesa Adjustments. 208 87 164 64. 219 82 117 -2. 5.3 -5.9 -28.3 -103.4. 29 66 112 -18. 15 83 318 -14. -45.0 26.0 183.3. BAI. 713. 820. 15.0. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. 2007 Price 1 January 2007 Price 31 December 2007 Performance Minimum Maximum Capitalization (Million euro).

(7) Sales Million euro. 7,953.0. 8,000 7,000. EBITDA Million euro. Pretax profit Million euro. 1,500. 1,407. 1,000. 820. 6,272.0. 1,200. 800. 6,000. 2,873.00 3,025.90. 630. 900. 3,864.90 4,045.70. 4,000 3,000. 960. 4,853. 5,000. 600. 512. 743. 3,414.70. 568.7. 600. 400. 333.2. 411.4. 2,000 300. 287.6. 244.3. 288.3. 200 161.2. 193.8. 218.8. 258.5. 1,000 0. 0. 2000. 2001. 2002. 2003. 2004. 2005. 2006. 2007. Profit per share euro. 0. 2000. 2001. 2002. 2003. 2004. 2005. 2006. 2007. Dividend per share euro. 35. 4.0. 30. 3.5. 30.6 21.6. 2001. 2002. 2003. 2004. 2005. 2006. 2007. Capital resources per share euro 3.65* 101.6 100. 2.89. 3.0. 25. 2000. 80. 2.32. 2.5. 72.9. 20 2.0 1.5 10 5. 1.8. 2.2. 3.6. 2.5. 1.0. 5.1. 60. 1.67 1.2 0.6. 40 20. 2001. 2002. 2003. 2004. 2005. 2006. 2007. Pay-out %. 2000. 2001. 2002. 2003. 2004. 2005. 2006. 2007. ROE % 48. 50. 47. 11.7. 10.7. 12.2. 0. 0.0. 2000. 43.7. 0.7. 0.5. 0. 53.9 41.5. 1.38. 2000. 2001. 2002. 2003. 2004. 2005. 2006. 2007. Rate of return on dividend %. 80. 9.8. 10. 45.5 70. 40. 8. 60. 33.3. 6.5. 50. 30. 23.8*. 31.8 20. 6. 73.8. 40. 29.6. 30. 13.4. 20.6 20. 15.4. 15.1 8.1. 10. 9.5. 0. 0. 2000. 2001. 2002. 2003. 2004. 2005. 2006. 2007. 3.8. 4. 4.3. 4.0. 3.3. 3.6. 20.5. 10. 4.5. 5.1. 2. 0. 2000. 2001. 2002. 2003. 2004. 2005. 2006. 2007. (*) Subject to approval of General Shareholders’ Meeting 2008. 2000. 2001. 2002. 2003. 2004. 2005. 2006. 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. 15.3 15.

(8) LETTER FROM THE CHAIRMAN. Our commitment to sustainability over the past three years has resulted in our company’s leadership position and produced an indisputably positive outcome in our triple bottom line accounting – economic, social and environmental – which we have incorporated as an essential part of our business. With regards to the environment, the activities and business of ACCIONA over the past year have avoided the net emission of 4.77 million tonnes of CO² into the atmosphere, a 20% increase on 2006. Within society we have strengthened our influence and visibility as a sustainable company, receiving national and international recognition. It is worth highlighting our outstanding position as leaders in our sector in the European and Worldwide Dow Jones Sustainability Index. At a national level, the fact that ACCIONA is among the top ten companies in the Monitoring of Corporate Reputation (MERCO) demonstrates that we are fulfilling our objective of being a company that makes an active contribution to social wellbeing.. 6. ANNUAL REPORT / LETTER FROM THE CHAIRMAN. In terms of our financial results, the consolidated revenues grew by 26.8% to 7.953 billion euro, while EBITDA totalled 1.407 billion euro, representing an increase of 46.6%. Our net profit excluding extraordinary items has grown by 53% to 676 million euro. Endesa has contributed substantially to these results. In addition to this contribution, in Endesa we are consolidating the strategic objectives which we established on becoming major shareholders: to take on the management leadership; to create a global leader in renewable energy; and to drive the transition towards a model of sustainable energy. With regards the last objective, I am convinced that I have a privileged platform from which to influence this transition; from within one of the best companies in the energy sector worldwide. Regarding our business divisions, ACCIONA Infrastructures continues to be the largest division in terms of revenue, with 3.639 billion euro (45.8% of the total). In this financial year we have laid the foundations to participate in the global development of in-. frastructures, which has been boosted by, amongst other factors, the strong flow of capital from Europe and the United States to regions rich in raw materials. ACCIONA Infrastructures, together with other divisions, is driving eco-efficient building, in which ACCIONA Real Estate’s eco-efficient homes are an outstanding example (1st development launched last year). ACCIONA Energy was the leading division in terms of EBITDA in 2007, contributing 392 million euro, or 27% to the group’s total. During the year it reinforced its global position in renewable energy with the installation of a total of 1,025 MW, which increased the company’s installed power at the year end to 4,090 MW and electricity generation to almost 9,000 MW. Desalination is one of the solutions offered by ACCIONA Agua to combat water shortage, in which we are working to find processes that are even more environmentally and energy efficient. In 2007 ACCIONA Agua plants were responsible for the desalination of a total of 53 HM³, demonstrating the trend of growth in this activity.. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. dear shareholders.

(9) The consolidation of our sustainable project isn’t however an end in itself, but rather, the first step towards a new phase of our business. The globalisation of our combined offer of Infrastructure, Energy and Water is the natural path of expansion which we will accelerate in the immediate future. These basic needs to which we provide the solutions and to which we seek alternatives are global. Innovation is our ally in this search and is consequently another of the pillars of our future growth. The maxim of ‘being pioneers’ requires us to continue to advance ahead of others. This conviction has led us to take a new step, designed to maintain our leadership position, based on innovation. In 2007 we increased invest-. ment in R&D across 67 current projects by almost 72%, all within a new framework – the Strategic Innovation Plan, which will guide our activities until 2015 and which has a total investment forecast of 500 million euro until 2010. Total capital expenditure during the past financial year rose to 3.115 billion euro, principally for the acquisition of an additional stake in Endesa and to drive organic growth in the rest of the divisions. The net debt at year end rose to 17.804 billion euro. Of this, 5.312 billion euro corresponds to the proportionate consolidation of Endesa; 9.115 billion euro to finance the investment in Endesa and 3.337 billion euro of investment across various divisions. The composition of the debt, the put option to Enel valued at 10.943 billion euro which backs our investment in Endesa, and the fact that 55% of the debt is non-recourse finance to the company, gives us a solid financial position and allows us to pursue our ambitious plans for investment and organic growth.. The market recognises that our business model represents a strategic position with great potential. During last year, the share price increased by 51.5%. Additionally a dividend of 3.65 euro per share will be presented for approval at the Annual General Meeting, representing an increase of 26.2% with respect to 2006. I am extremely proud to state with conviction that as our business challenges grow so too does our ability to surpass them. It is the best sign that we have a business that is vital, dynamic and forward looking. With your confidence, our exceptional team of professionals and the Board of Directors, which I have the honour to chair, will continue working to create value, to achieve a more balanced progress and a better world for future generations.. JOSÉ MANUEL ENTRECANALES CHAIRMAN OF ACCIONA ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. In the service divisions the commitment to sustainability has resulted in innovative proposals such as the new route for intermodal cargo transportation of ACCIONA Trasmediterranea between Algiers and Barcelona, and the first contracts to improve the energy efficiency and complete waste management of ACCIONA Facility Services.. 7.

(10) 8. ANNUAL REPORT / MISSION, VISION AND VALUES. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. mission, vision and values.


(12) OUR VISION is to meet the challenge of achieving sustainable development in all our business areas, so that the generations of today and the future will have a better life.. 10. ANNUAL REPORT / MISSION, VISION AND VALUES. 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 future trends in all aspects of our business activity. • Excellence: ACCIONA aims to set the benchmark in the markets where it operates. • Environmental concern: In 2007, the renewable energy output of ACCIONA Energy avoided the equivalent of the emission into the atmosphere of 7.7 million tonnes of CO2 from coal-fired power plants. • Social responsibility: ACCIONA’s commitment to sustainable development is reflected in its position as leader in its sector 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 create a work environment that promotes professional development and respect for our employees’ personal lives, as well as their health and safety.. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. OUR MISSION is to be a leader in the creation, development and management of infrastructures, energy and water; contributing actively to social wellbeing, sustainable development and the creation of value for our stakeholder groups..

(13) ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. On page 7, ACCIONA Energy’s Zero Emissions building in Navarre (Spain). Above, sunset in Sagar (Africa).. 11.

(14) A man walks along a wall cut from the rock (Ethiopia).. 12. ANUAL REPORT / MILESTONES IN 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. milestones in 2007.


(16) a year filled with action JANUARY • ACCIONA receives Spain’s National Workplace Safety Award for its Adriatic LNG Terminal Algeciras project. • ACCIONA and Fundación ONCE sign an agreement for integration of persons with disabilities into work. • ACCIONA Agua to build four water treatment plants in Egypt for 17.1 million euro. • ACCIONA Rail Services inaugurates the first private rail freight service in Spain. • ACCIONA Agua to build the largest desalination plant in the US, in California. • ACCIONA inaugurates a bioethanol plant in Alcázar de San Juan (Ciudad Real).. 14. ANUAL REPORT / MILESTONES IN 2007. FEBRUARY • ACCIONA, together with Al Gore, proposes an alternative energy model at the First Conference on Energy, Cities and Global Warming. • Fifty of Pamplona’s city buses to run on biodiesel produced by ACCIONA. • ACCIONA completes Madrid’s M-30 tunnel linking the southern junction with Vicente Calderón stadium. • ACCIONA obtains 1.370 billion euro net profit in 2006.. MARCH • ACCIONA Agua completes Apraitz (Elgoibar) wastewater treatment plant. • ACCIONA Energy to add over 5,000 MW of renewable energy capacity within three years. • ACCIONA Energy inaugurates the largest photovoltaic facility worldwide in Navarre. • ACCIONA Infrastructures opens north tunnel of the M-30 southern bypass in Madrid. • Enel and ACCIONA sign an agreement to manage Endesa.. MAY • ACCIONA finishes building the experimental section of Murcia light railway. • ACCIONA increases net profit by 38.2% to 141 million euro in the first quarter of 2007. • ACCIONA Windpower to provide Naturener with more than 300 million euro worth of wind turbine generators for farms in the US.. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. APRIL • ACCIONA Agua named desalination company of the year at the Global Water Intelligence awards. • ACCIONA and Enel launch a bid for Endesa at 41.3 euro per share. • ACCIONA improves ranking to number 15 among companies with the best reputation according to the Merco survey.. JUNE • ACCIONA takes the lead on World Environment Day with an unprecedented advertising campaign in the press. • ACCIONA Agua awarded contracts worth 69.4 million euro. • ACCIONA Real Estate wins ASPRIMA-SIMA 2007 award for the Best Communication and/or Marketing Strategy. • ACCIONA’s shareholder’s meeting approves a 25% dividend increase. • ACCIONA Energy begins operating the largest solar thermal plant built worldwide in the last 17 years (US). • ACCIONA Real Estate to invest 47.8 million euro to build 100 homes in Pamplona. • ACCIONA’s SOStenibilidad.com campaign receives the Advertising Excellence award in the “Advertising in the Museum” competition held each year by the Reina Sofía Museum and the International Advertising Association (IAA). • ACCIONA becomes a patron of the Prado Museum. • ACCIONA raises air conditioning temperature at its offices by between 1 and 2 degrees Celsius during the summer period in order to reduce seasonal energy consumption and the greenhouse gas emissions associated with the use of air conditioning systems. • ACCIONA Real Estate enhances its offering in Warsaw by putting 168 new homes on the market..

(17) AUGUST • ACCIONA Agua signs a contract to build a desalination plant in Fouka (Algeria). • ACCIONA announces three new CENIT R&D projects worth 19 million euro over four years.. SEPTEMBER • ACCIONA, sector leader in the Dow Jones Sustainability Index. • ACCIONA and BRVias establish a consortium to develop toll roads in Brazil. • ACCIONA and Suncor inaugurate their first wind farm in Ontario (Canada). • ACCIONA Energy inaugurates its third wind farm in Canada, its largest there to date.. OCTUBRE • ACCIONA Trasmediterranea introduces a combined passenger and cargo ferry on routes between the Canary Islands. • Caja Madrid awards ACCIONA the contract to build Santiago Calatrava’s Obelisk in Madrid. • The Jaén provincial government chooses ACCIONA Agua to manage water in 34 municipalities. • ACCIONA named top renewable energy developer of the year by Euromoney and Ernst&Young. • José Manuel Entrecanales, Chairman of ACCIONA, assumes the role of Executive Chairman of Endesa. • ACCIONA Energy develops three biomass plants in Castilla y León. • ACCIONA wins the Corporate Governance Award from PRNoticias.. NOVEMBER • ACCIONA to invest 720 million euro in a toll road in Brazil. • ACCIONA to increase net profit by 25.3% to 401 million euro in the third quarter. • ACCIONA, the fourth most highlyvalued brand in raising awareness about climate change, according to research by the consulting company The Cocktail Analysis, published in the magazine Anuncios. • ACCIONA sells 50.1% of the French renewable energy company La Compagnie Du Vent. • ACCIONA Solar awarded the “European Solar Prize 2007” by the European Association for Renewable Energy.. DECEMBER • ACCIONA recognised for “Best social awareness commercial” by Telecinco’s ‘12 Months, 12 Causes’ programme. • ACCIONA launches its first training and hiring programme for workers in Senegal. • The acquisition of Endesa by ACCIONA and Enel named Financial Times Mergermarket M&A “Deal of the Year”. • ACCIONA to build a racetrack at Aragón Motor City for 50.49 million euro. • ACCIONA distributes an interim dividend of 1.34 euro per share. • ACCIONA Energy commences operation of three wind farms in Catalonia with a total installed capacity of 116MW.. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. JULY • ACCIONA acquires rights to develop 1,300 MW of wind assets in the US from EcoEnergy. • ACCIONA Rail Services inaugurates its first rail freight line at the Port of El Musel (Asturias). • ACCIONA, the Spanish company most highly rated because of its Corporate Social Responsibility, according to the KAR survey. • ACCIONA Agua reaches an agreement with United Utilities to enter the Australian desalination market. • ACCIONA obtains international recognition by the GRI for its 2006 Sustainability Report. • ACCIONA included in KLD Global Climate 100 index because of its focus on sustainability. • ACCIONA Real Estate delivers its first 291 ecoefficient homes. • Enel and ACCIONA get the green light from the CNMV for their bid for Endesa. • ACCIONA doubles net profit in the first six months of the year. • ENEL and ACCIONA announce the commencement of the acceptance period of the bid for Endesa.. 15.

(18) Gathering in a grotto in Haiti.. 16. ANNUAL REPORT / ORGANIGRAM. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. organigram.

(19) Chairmanship Chairman Vice-Chairman. ACCIONA, S.A. ACCIONA, S.A.. José Manuel Entrecanales Domecq Juan Ignacio Entrecanales Franco. ACCIONA, S.A.. Valentín Montoya Moya. ACCIONA, S.A. ACCIONA, S.A. ACCIONA, S.A. ACCIONA, S.A. ACCIONA, S.A. ACCIONA Infrastructures S.A. ACCIONA Infrastructures S.A. ACCIONA Infrastructures S.A. ACCIONA S.A. ACCIONA S.A. ACCIONA S.A. ACCIONA S.A. ACCIONA S.A. ACCIONA S.A. ACCIONA S.A.. Josu Arlabán Gabeiras Albert Francis Gelardin Juan Muro-Lara Girod Millan Álvarez-Miranda Navarro Peter Duprey José Mariano Cano Capdevila Roberto Redondo Álvarez Jaroslaw Popiolek Brett Thomas Jorge Vega-Penichet López Vicente Santamaría-Paredes Castillo Carmen Becerril Martínez Alfonso Callejo Martínez Juan Manuel Cruz Palacios Juan Ramón Silva Ferrada. ACCIONA Infrastructures S.A. ACCIONA Concessions S.L. ACCIONA Infrastructures S.A. ACCIONA Infrastructures S.A. ACCIONA Infrastructures S.A. ACCIONA Infrastructures S.A. ACCIONA Infrastructures S.A. ACCIONA Infrastructures S.A. ACCIONA Logistics and Transport Services ACCIONA Airport Services S.A. ACCIONA Energy S.A. ACCIONA Energy S.A. ACCIONA Energy S.A. ACCIONA Windpower S.A. ACCIONA Real Estate S.L. ACCIONA Agua S.A.. Pedro Martínez Martínez Francisco Adalberto Claudio Vázquez Jesús Alcázar Viela Javier Pérez-Villamil Moreno Justo Vicente Pelegrini José María Farto Paz Joaquín Eduardo Gómez Díaz Carlos López Fernández Juan Andrés Saez Elegido Carlos Navas García Fermín Gembero Ustarroz Alberto de Miguel Ichaso Jaime Solé Sedo Pedro Santiago Ruiz Osta Isabel Antúnez Cid Luis Castilla Cámara. Member of the Board of Directors and Economic-Financial General Director General Director Economic and Financial Area General Director International Area General Director Corporate Development and Investor Relations General Director International Area Area General Director USA Area General Director Mexico Area General Director Chile Area General Director Poland Area General Director Australia General Secretary General Director Legal Services General Director Corporate Resources and Institutional Relations General Director Human Resources and Organisation General Director Administration of Human Resources General Director Corporate Social Responsibility and Corporate Image. Operations Management Team General Director ACCIONA Infrastructures General Director International Infrastructures and Concessions General Director Construction (Eastern Area) General Director Construction (Central Area) General Director Construction (Western Area) General Director Construction (Galicia) General Director Studies and Contracting Area General Director ACCIONA Installations General Director Logistics and Transport Services General Director ACCIONA Airport Services General Director ACCIONA Energy General Director Development of International Energy General Director Electricity General Director Windpower Wind Power General Director ACCIONA Real Estate General Director ACCIONA Agua. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. Corporate Executive Team. 17.

(20) Couple on the Malecón (Havana).. 18. ANNUAL REPORT / ACCIONA INTERNATIONAL. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. acciona international.


(22) growing expansion upon a solid base ACCIONA has consolidated its growth and international development in five continents, though in 2007 it focused its efforts in six countries that account. Early in 2007, ACCIONA defined the two pillars on which it bases its growth and international expansion: establishment of the various divisions in countries with strong growth potential; and globalisation of the businesses in which we are already world leaders. ACCIONA identified six key countries on which to focus: Canada, USA, Mexico, Brazil, Poland and Chile. These countries account for 40% of world. 20. ANNUAL REPORT / ACCIONA INTERNATIONAL. GDP, 30% of the concession and construction market globally and 32% of the world’s installed power generating capacity projected for 2012. Canada had an ambitious infrastructure plan combined with an aggressive wind power policy; the USA was strengthening its bid for renewable energy and a number of states faced vital water problems, and there was also the need to renew infrastructure; Mexico and. Brazil were giving priority to construction and concession projects and were implementing legislation to promote the development of renewable energy and water treatment projects, not to mention the strength of the real estate sector; Chile offered opportunities in the concession business; and Poland had established a framework of business relations with other countries, focusing on infrastructure and building (UEFA Euro 2012 soccer. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. for 40% of world GDP: Canada, USA, Mexico, Brazil, Chile and Poland..

(23) WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. africa: Algeria, Egypt, Gabon, Morocco central america: Mexico, Puerto Rico north america: Canada, USA south america: Brazil, Chile, Peru, Venezuela asia: China, India, Indonesia europe: Andorra, Bulgaria, France, Germany, Greece, Hungary, Ireland, Italy, Poland, Portugal, Slovenia, United Kingdom middle east: United Arab Emirates, Turkey oceania: Australia.

(24) In addition, other major achievements took place in 2007 which have helped us validate our strategy. Most of the projects described in the following sections are located in key countries, selected in accordance with our international strategy, providing cohesion to the set of businesses in environments which offer the best combination of stability, growth and a good fit with the offer of ACCIONA’s various divisions.. ACCIONA ENERGY It is important to point out that in 2007 we started to create, working with all our divisions, a single ACCIONA for Mexico and Brazil, to seek synergy and a focus that would allow us to take better advantage of growth opportunities. 2007 has been the year that has seen the consolidation of ACCIONA Energy’s international expansion strategy.. 22. ANNUAL REPORT / ACCIONA INTERNATIONAL. It attained major milestones in the US, including the construction of the Iowa wind turbine generator plant, which was started in June 2007 and inaugurated on 17 January 2008. Also in 2007, ACCIONA received support from a number of authorities and institutions, including the Governor of Iowa Chet Culver, the Mayor of West Branch and a number of Spanish international bodies such as the Spanish Trade Board and the Spanish Consulate in Chicago. Iowan institutions lent their full support to the plant as part of the state’s bid to become an international benchmark in renewable energy facilities. This is the company’s fourth wind turbine generator plant (it has two in Spain and one in China). With the Iowa plant, ACCIONA is creating employment and strengthening its energy division. 2007 saw the purchase of Econergy’s rights (over 1,100 MW), the beginning of work on the Tatanka wind farm (180 MW), and in the summer the start of construction of the Nevada solar plant (64 MW), which was inaugurated in February 2008.. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. championship) and consolidating the real estate and renewable energy businesses..

(25) the US, the Tampa plant (109,000 m3/day) started up in August 2007 and it was officially inaugurated in January 2008. The plant will supply at least 10% of the Tampa Bay area’s water needs.. As a result of these activities, close to 40% of ACCIONA Energy’s total installed capacity will be located outside Spain by 2012.. The company also obtained the contract for the Carlsbad (California) plant, which will be one of the five largest in the world (204,000 m3/day); it also won the contract for the Thames Gateway treatment plant (150,000 m3/day) in England. In Algeria, it obtained the contract for the Fouka plant (120,000 m3/day), as well as contracts in the UAE to build seawater desalination plants at Imdad (73,000 m3/day), International City (110,000 m3/day) and Jumeirah Golf Estates (220,000 m3/day). The company moved into Australia in partnership with United Utilities Australia to undertake projects in Perth and Melbourne. It is also examining water treatment and water cycle management projects in Brazil and Mexico.. ACCIONA AGUA This was the first year in which the water division obtained major projects outside Spain. All of them were for reverse osmosis desalination plants. In. ACCIONA INFRASTRUCTURES AND CONCESSIONS In 2007, the Infrastructure and Concessions division optimised its international business by. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. In Portugal, construction of the Moura solar plant began. There are several projects under development in Mexico. In Canada, the Ripley wind farm was put into operation and the construction of a fourth wind farm (45.5 MW) in Lameque, awarded in January 2008, got underway. In Australia, the Cathedral Rocks (64 MW) facility is now operational and a 190 MW wind farm is under construction in Waubra. In India, foundations are being laid for the Anabaru wind farm (29.7 MW). In South Korea, construction of a 61.5 MW wind farm has commenced and in Germany, steps have been taken to complete the installed capacity envisaged in the business plan.. 23.

(26) Purification ritual with water (Philippines).. ACCIONA REAL ESTATE In Mexico, we are building the San Luis de Potosí and Campeche University projects, and a number of undertakings are under consideration. In Brazil, we were awarded a 25-year concession for 2,004 kilometres of federal toll road, and projects to build state toll roads in Brazil’s largest states are currently under consideration. Finally, a number of PPP concession projects are being considered in Chile. ACCIONA Real Estate developed its first 100% ACCIONA project in Poland. It began to make inroads into new markets in Latin America by. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. refocusing on seizing opportunities in strategic countries where it plans to establish a long-term presence. In Poland, considerable work was done on organisation and control mechanisms, which had a notable impact on revenues and earnings and on building a backlog. In Canada, we are prequalified for two major road projects (the A30 and Edmonton ringroad) and four hospitals. We are also pre-qualified to build the Dublin Metro and in a tender process to widen the Panama Canal..

(27) acciona infrastructures and concessions. refocused its strategy and. optimized its international. business in . ACCIONA URBAN & ENVIRONMENTAL SERVICES This division groups together the ACCIONA companies that provide municipal services to the private and public sectors. This year, in addi-. tion to its Hospital and University business lines, ACCIONA Facility Services added the possibility of comprehensive management of general services, thus contributing to maximising synergy within ACCIONA. ACCIONA LOGISTICS & TRANSPORT SERVICES Finally, the Logistics & Transport Services division is in the process of expanding into new markets, and has established shipping lines between mainland Spain and North Africa while consolidating the routes established in the last eighteen months.. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. acquiring land in Brazil and has a number of projects in the pipeline in two Brazilian cities, Santos and Sao Paulo. Considerable work was done in Mexico, culminating with the acquisition of Inmobiliaria Parque Reforma at the end of the year, which will enable us to enter new areas of business.. 25.

(28) Control centre, ACCIONA Solar, Navarre (Spain).. 26. ANNUAL REPORT / ACCIONA IN 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. acciona in 2007.


(30) consolidating a sustainable project ACCIONA has made further progress in its determined bid for sustainability and. In 2007, ACCIONA firmly established its sustainable business project through major initiatives in all its divisions. The common factor was a strong R & D component to find solutions that create resources and wealth combined with maximal environmental benefit and respect for people, the ultimate goal being to build a more habitable world for future generations.. 28. ANNUAL REPORT / ACCIONA IN 2007. The progress made towards this goal was validated during the year in various acts of international recognition. Amongst these, ACCIONA entered, as the leader of its sector, into the Dow Jones Sustainability Index (DJSI), the world-leading international sustainability index; ACCIONA was also ranked among the world’s 100 most sustainable com-. panies in a list published at the World Economic Forum in Davos, Switzerland; ACCIONA Agua was named ‘Desalination Company of the Year’ in the Global Water Intelligence Awards; and it received the Financial Times Mergermarket ‘Deal of the Year’ award for the Endesa takeover. From a financial viewpoint, 2007 has been a year of growth. ACCIONA ended 2007 with. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. has been included in the Dow Jones Sustainability Index as the leader of its sector..

(31) ACCIONA’s consolidated revenues increased by 26.8% to 7.953 billion euro. The increase was due principally to proportionate consolidation of Endesa in the fourth quarter and good revenue performance at ACCIONA Infrastructures, ACCIONA Urban & Environmental Services and ACCIONA Energy. Notable features: revenue growth at ACCIONA Infrastructures, because of its size within the group; the 29.4% increase at ACCIONA Urban & Environmental Services, due partly to consolidating Pridesa since the first quarter; and the 28.4% increase at ACCIONA Energy as a result of strong organic. Eco-efficient housing, Madrid (Spain). MEMORIA ANUAL 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. 935 million euro in EBIT, a 48.4% increase over the previous year. EBITDA totalled 1.407 billion euro, 46.6% more than in 2006, and the EBITDA margin was 17.7%. Endesa contributed 429 million euro to the total. Attributable net profit fell by 28.9%, from 1.370 billion euro to 975 million euro, principally as a result of the lower contribution from disposals of non-current assets (299 million euro vs. 1.044 billion euro in 2006, mainly from the sale of holdings in FCC and Vocento).. 29.

(32) As for the divisions’ contribution to EBITDA, ACCIONA Energy provided 27.6%, ACCIONA Infrastructures 20%, ACCIONA Real Estate 8.8%, the services divisions contributed 8.1%, and Endesa provided 30.3%. Impact of Endesa The impact of Endesa on EBITDA (429 million euro) and revenues (1.203 billion euro) is due to proportionate consolidation of 25% of Endesa in the fourth quarter of 2007.The impact of 318 million euro on the EBT (earnings before taxes) line is due to the dividends distributed by Endesa, net of the expenses associated with the acquisition of the stake, in the first nine months of the year, plus proportionate consolidation of the 25% stake in the fourth quarter. At 31 December 2007, ACCIONA owned 264,793,905 shares of Endesa, representing 25.01% of its capital stock, acquired for an. 30. ANNUAL REPORT / ACCIONA IN 2007. amount of 9.272 billion euro, i.e. equivalent to approximately 35 euro per share. The investment is part of the strategic plan to expand in the electricity business. The acquisition was financed in such a way as to preserve ACCIONA’s capacity to invest. Capital expenditure Capital expenditure amounted to 3.114 billion euro, mainly to acquire an additional 4.7% of Endesa. The remainder of capital expenditure was principally to drive organic growth at ACCIONA Energy, ACCIONA Infrastructures, ACCIONA Urban & Environmental Services and ACCIONA Real Estate. As a result of the investment in Endesa, consolidation of 25% of its debt (5.312 billion euro) and ACCIONA’s ongoing investment policy, net financial debt at 31 December 2007 amounted to 17.804 billion euro, i.e. 276% of equity. ACCIONA Energy’s revenues increased by 28.4% to 1.093 billion euro as a result of organic growth. This area’s EBITDA amounted to 392 million euro, a 6.3% increase due to. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. growth in installed wind power capacity (up 29% to 3,030 MW). Endesa contributed 1.203 billion euro in revenues in 2007..

(33) ACCIONA Infrastructures’ revenues amounted to 3.639 billion euro, a 2.3% increase on 2006. EBITDA rose by 1.7% to 284 million euro and the 7.8% EBITDA margin reflects the long-standing quality of the construction backlog. During the fourth quarter of 2007, the hospital services concessions formerly included under ACCIONA Urban & Environmental Services were transferred to ACCIONA Infrastructures. The backlog at year-end amounted to 5.755 billion euro, 5.2% more than at the end of 2006. ACCIONA Real Estate attained revenues of 445 million euro and EBITDA of 125 million euro (3.4% more than in 2006), with an EBITDA. margin of 28.1%. In the fourth quarter, the car parks business was transferred from ACCIONA Urban & Environmental Services to ACCIONA Real Estate. Revenues increased by 29.4% at ACCIONA Urban & Environmental Services, mainly as a result of adding Pridesa, and to growth in the other activities in this area: facility services, waste collection, sanitation, and burial services. The car park business and the hospital services concessions were transferred out of this division in the fourth quarter. The Other Business and Finance area increased revenues by 36.6% on 2006, and EBITDA rose by 86.6% to 72 million euro. Earnings before taxes increased by 26% to 83 million euro. The Finance area includes the Bestinver fund management business, which had 5.261 billion euro under management at 31 December 2007, 17% more than at the end of 2006.. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. strong growth in installed capacity, resulting in higher wind-power production, though offset by lower power prices in 2007.. 31.

(34) ACCIONA INFRASTRUCTURES. eco-efficient construction and integrated management as competitive advantages By employing the most innovative and advanced techniques and technologies in all aspects of construction, ACCIONA Infrastructures, at the cutting-edge. ACCIONA Infrastructures is among the world´s top construction companies. It is at the forefront in R&D (Research & Development) and has the ability to employ the most advanced and innovative technologies, choosing the most appropriate ones for each specific project. To this end, the company carefully selects the professionals who will organise, direct and control projects and utilises all the knowledge and experience gained from previous projects.. 32. ANNUAL REPORT / ACCIONA INFRASTRUCTURES. The company offers a complete range of construction services, from engineering through to execution and, thereafter, maintenance; it also manages public works concessions, particularly in the area of transport (roads and railways) and hospital services.. velop new, complex and innovative construction techniques. ACCIONA Infrastructures plays an active role in research projects on the management of construction materials and information and the shortening of construction times.. ACCIONA Infrastructures works in tandem with prestigious institutes and universities in Europe and worldwide on initiatives to research and de-. All ACCIONA Infrastructures’ activities are undertaken with attention to economic, environmental and social aspects, with an overarching criteria. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. of R&D, has become one of the world’s leading companies..

(35) aspects of construction. Veles e Vents building. Valencia port (Spain).. from engineering to. execution & maintenance ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. acciona infrastructures covers all. 33.

(36) To promote environmental protection, quality and sustainability an annual competition is held that recognises the best management practices within ACCIONA Infrastructures’ projects. The Evaluation Committee, comprises renowned external professionals and grants three awards: Best Safety Management, Best Quality and Environmental Management, and Best Project Management. In 2007, Barajas Airport’s Terminal T4, built through an ACCIONA Infrastructures partnership, received the Puente de Alcántara Award in recognition of the project’s quality of execution, functional design, attractiveness, adaptation to its surroundings, and for its economic importance as a driver of development and employment in the Madrid region. The Alqueva Hydroelectric Power Plant in Portugal also received the Puente de Alcántara. Recognition for the building of T4 Terminal T4 at Barajas Airport, built by ACCIONA Infrastructures and partners, was selected in 2007 for the International Puente de Alcántara Award in recognition of the quality of the project’s execution, its functional design, attractiveness, adaptation to its surroundings, and for its economic importance as a driver of development and employment in the Madrid region.. 34. ANNUAL REPORT / ACCIONA INFRASTRUCTURES. Award in 2007. Built by ACCIONA Infrastructures, it was judged in 2002-2004 as outstanding for its harmonious integration into the landscape and its contribution to the region’s economic and social development. The International Puente de Alcántara Award is granted to the public work with the greatest cultural, technological, aesthetic, functional and social importance, and which combines technical and aesthetic perfection in its execution. Architect Josep Mías’ project to remodel the Barceloneta Market, executed by ACCIONA Infrastructures in 2007, recently received the ‘Ciutat de Barcelona 2007’ Award in the architecture and town planning category. ACCIONA Infrastructures has a firm foothold in strategic international markets such as Poland, Mexico, and Chile, and is consolidating its position in Canada. Over the past half-century, ACCIONA has developed and participated in some of the world’s largest construction works.. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. of sustainability. We constantly seek to improve construction processes and apply measures to protect the environment..

(37) ACCIONA Infrastructures bid on projects in Spain valued at more than 28 billion euro, of which 69% were civil engineering and 31% were buildings.. SPAIN Contracts. Some of the contracts awarded in 2007 were: Railway works: • Castellbisbal/Papiol-Mollet/Sant Fost spur (Barcelona). • Rail track bed. Madrid-Galicia high-speed railway. Section: Olmedo-Zamora. Subsection: Villaverde de Medina-Villafranca de Duero (Valladolid). • Rail track bed for the new Madrid-Murcia high-speed railway to the east coast.. • Section: Aranjuez (Madrid)-Ontigola (Toledo). • Rail track bed for high-speed line between Madrid and the French border. Section: Riudellots-c/ Joan Torro (Girona). • Rail track bed for the Vitoria-Bilbao-San Sebastian high-speed line. • Section: Eskoriatza (Guipúzcoa)-Aramaio (Alava). Highway works: • Las Palmas de Gran Canaria bypass. Phase IV: Tamaraceite-Tenoya-Arucas Costa (Canary Islands). • Concession for maintenance and operation of the A-2 highway, kilometre point 62.0 to kilometre point 139.5. Section: R2-Limit (Soria/Guadalajara). • Navarran Highway A-15. Section: Medinaceli (A-2)-Radona (Soria). • Cantabrian Highway (A-8). Section: La Encina-Torrelavega (Cantabria). • Circuit and buildings for the Speed Project at Aragon Motor City, Alcañiz (Teruel).. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. Performance in 2007 In 2007, ACCIONA Infrastructures obtained contracts worth 3.874 billion euro, 82% of which were domestic, and the remainder of which were international.. 35.

(38) Airport works: • Extension of landing strips. Civil engineering and other work in bus stations. Malaga airport. • Extension of apron and taxiways at Santander airport (Cantabria). Ports and marine works: • Pier for multi-purpose bulk terminal at Escombreras dock, Cartagena (Murcia). • Extension of pier 1 at Rota naval base (Cadiz). Water works: • Segarra-Garrigues Canal project. Section II, Ponts-Loyola Canal (Lleida). • Sanitation and water treatment for the Vera farming district (Caceres). Construction of hospitals: • Vital Alvarez Buyllas Hospital in Santullano, Mieres (Asturias).. 36. ANNUAL REPORT / ACCIONA INFRASTRUCTURES. Industrial building: • LNG tanks, Huelva plant. • Malthouse at the Heineken Spain factory, Seville. • Design of Iberian ham salting and cutting plant, Guijuelo (Salamanca). • Solar thermal power plant (50MW) in Caceres, Campo Solar-La Risca (Badajoz). Non-residential building: • New Juvenile Courthouse, Valdebebas (Madrid). • Conference centre, shopping mall and hotel in Palma de Mallorca (Balearic Islands). • Office building at c/ José Echegaray 6, Las Rozas (Madrid). • `Centro de Servicios Empresariales’ real estate complex with three nine-storey buildings, underground car park and common outdoor areas at c/ Alcalá, 540 (Madrid). Residential building: • 120 apartments at the Magnolia Golf Resort, Caleta, Adeje (Tenerife). • 4 buildings with a total of 102 apart-. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. • A-7 Highway. Malaga’s new west bypass. Section: Connection from MA-417 to A357 highway in Guadalhorce (Malaga)..

(39) • Tenerife tramway. • Valencia Metro line 5. Section: Quart-ManisesAirport (Valencia).. Site development: • Las Cañas subdivision, Logroño (La Rioja).. acciona infrastructures bid. Renovation: • Phases I, II and III renovation of the Campus Comillas Foundation’s seminary building (Cantabria). • Extension of the Trade Fair and Congress Centre of Sevilla.. worth more than. Completed works Railway works: • Sant Joan Despi-Sant Boi Llobregat highspeed railway line (Barcelona). • Madrid-Segovia-Valladolid high-speed railway line, Guadarrama Tunnel (Madrid). Metropolitan: • Sections 1B and 1C of Madrid’s Metronorte. • Parla tramway (Madrid).. for contracts in spain.  billion euro Highway works: • La Plata Highway. Section: Cáceres-Aljucen (Cáceres/Badajoz). City roads: • M-30: San Isidro Bridge-Praga Bridge Section (Madrid). • M-30: North tunnel on the southern bypass (Madrid).. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. ments, 6 shops, a private car park and interior complex, Sant Antoni de Calonge (Girona). • 75 apartments, shops, and a private car park, Phase II, Sarriá de Ter (Girona).. 37.

(40) Sea works: • Extension of dyke at Tarragona Port. • Pier for bulk solids terminal at new Escombreras dock, Cartagena (Murcia). Water works: • Manzanares River right-bank sewer (Madrid). Construction of hospitals: • Hospital del Norte in San Sebastian de los Reyes (Madrid). • Rio Hortega Hospital, Valladolid. • Chinchilla de Montearagon Health Centre (Albacete). Industrial works: • Construction of two 150,000 m3 LNG storage tanks in Murgados (A Coruña). • Buildings for polymerisation and oxidation at the Ultem HPP plant on the Cartagena-Alhama highway (Murcia).. 38. ANNUAL REPORT / ACCIONA INFRASTRUCTURES. Non-residential building: • Construction and outfitting of spa and sauna facilities (A Coruña). • Headquarters for Social Welfare and Health Ministries in Toledo. • Foredeck Building, AC Park and underground parking at Valencia port as part of new infrastructure for America’s Cup (Valencia). Residential building: • Torre Lugano building with 204 apartments in Benidorm (Alicante). Site development: • Civil works and complex for Arcelor rolling mill in Zaragoza. • Site development and layout of supramunicipal project for López Soriano Recycling Park (Zaragoza). Renovation: • Renovation of old Metropolitan Seminary (Zaragoza). • Remodeling of Segovia hospital.. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. Airport works: • Extension of runways at Leon airport..

(41) Wind turbine generator manufacturing facility, Barasoain, Navarre (Spain).. INTERNATIONAL International projects worth 688.58 million euro were obtained in 2007, most of which are in Europe and the Americas, but also in Africa and Asia. The company continues to have a large number of projects in Poland.. In Mexico, construction has begun on the new campus for San Luis Potosí Polytechnic University, and on a tourist complex of 725 apartments at Campeche beach. In Canada, ACCIONA Infrastructures has bid actively for projects in British Columbia and Quebec, and was short-listed for the construction of various hospital conces-. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. Among the company’s most outstanding new contracts is extending and upgrading the 200.4-km BR-393 federal toll road in the state of Rio de Janeiro (Brazil)..

(42) and; the Outstanding Environmental Management & Performance Grand Award for its noise barriers in Tung Chung and Hong Kong.. ACCIONA Infrastructures was also shortlisted for the construction of the Panama Canal’s third set of locks, for which it is preparing a bid in 2008.. In Poland, construction work is primarily carried out through subsidiary Mostostal Warszawa; which was well-placed to take advantage of the strong growth registered in the sector in 2007.. The company continues work on the Mamiengue-Fougamou highway in Gabon and is completing the Lai Chi Kok viaduct in Hong Kong.. Contracts in Poland in 2007 included:. In Chile, the company continues work on the Ojos de Agua mini-hydroelectric plant, which will take advantage of leakage from the La Invernada reservoir (13.3 m3/sec, with a head of 71.5 metres); the plant is expected to generate 60 GWh per year. It is scheduled to begin operation in the first quarter of 2008. In 2007, ACCIONA Infrastructures received various international awards including: the Gold Award in the Hong Kong Construction Industry Safety Award Scheme for its Lai Chi Kok viaduct; the Considerate Contractor Site Award,. • Osiele Lesne residential building (24,961 m2 of floor space). • Gorczewska building (46,615 m2). • Modernisation of a filter plant for Warsaw’s water network.. MOSTOSTAL WARSZAWA GROUP IN 2007 In 2007, Mostostal Warszawa S.A. consolidated its position among Poland’s top construction companies by obtaining contracts for the most important projects in all the areas in which it operates: buildings, civil engineering, road building, industrial infrastructure and environmental engineering.. International awards for works in Hong Kong In 2007, ACCIONA Infrastructures received various international awards including: the Gold Award in the Hong Kong Construction Industry Safety Award Scheme for its Lai Chi Kok viaduct; the Considerate Contractor Site Award, and; the Outstanding Environmental Management & Performance Grand Award for its noise barriers in Tung Chung and Hong Kong.. 40. ANNUAL REPORT / ACCIONA INFRASTRUCTURES. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. sions in British Columbia, 18 schools in Alberta, a highway in Montreal (Quebec) and another in Edmonton (Alberta)..

(43) Mostostal Warszawa S.A. and the Mostostal Warszawa Capital Group increased revenues by more than 50% in 2007. The group was awarded 550 million euro in contracts to be executed in 2008-9. Some of the company’s main projects in 2007 include:. in Warsaw, the Presidential Palace and other important monuments (12 million euro net). • Modernisation of drinking water production plant to supply Warsaw (60 million euro).. ANCILLARY CONSTRUCTION WORK. in , mostostal warszawa. capital group sales. increased by more. than % • 3 stations and 2 sections of tunnel for Warsaw Metro, 2 km of Line 1 (70 million euro net). • 2 contracts for the construction of highways: 15.7 km of national highway N7 from Jedlinsk to Bialobrzegi (113.5 million euro net). • Reconstruction of Krakowskie Przedmiescie Street. Engineering: ACCIONA Infrastructures provides engineering services through AEPO and Iberinsa, two leading experienced engineering and consulting companies specialised in highly-complex projects. AEPO. AEPO is a leading Spanish company specialised in civil and industrial engineering, architecture and the environment. Its diverse activities include studies and projects for motorways, dams, railways, airports, bridges, etc. It also carries out material testing and road surface noise testing in its own labs. It operates in Europe, Africa and the Americas. Contracts awarded in 2007 for design include the access to Alicante (Phase II) within the. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. • 24-floor Class A office complex, North Gate Bonifraterska in Warsaw (33.5 million euro net).. 41.

(44) new high-speed rail access to the east coast (Madrid-Murcia); upgrading, refurbishing and maintaining the Madrid-Badajoz West Corridor (Toledo) as part of a consortium; construction of the Bailen-Albacete A-32 highway, and the N-332 highway from Cordoba to Valencia (Jaén); and upgrades to the Gijon commuter rail system, extending the new tunnel to Cabueñes (Asturias).. ways and Infrastructure for the Castile and Leon Infrastructure Ministry in 2007-9.. Other major contracts awarded to AEPO in 2007 include: consulting and pavement noise testing as well as measuring surface regularity, texture, cracks and ruts in various sections of Spain’s national motorway network.. In 2007, the company’s activities grew to include:. We also provided technical assistance for review of designs for the Directorate-General of High-. 42. ANNUAL REPORT / ACCIONA INFRASTRUCTURES. Railways: • Design of rail track bed for Sorbas-Lucainena de Torres section of the Mediterranean Corridor high-speed railway (Almeria). • Complementary survey of the LeonPonferrada (Leon) high-performance line. • Extension of Madrid Metro line 2. Highways: • Caceres-Portugal Highway preliminary study. • Design of Leganes-Fuenlabrada M-407 road for Madrid Regional Government.. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. In the area of control and security, outstanding works include the Sierra Nevada A-44 Highway, exterior Granada bypass, section: CalicasasAlbolote (Granada); and work on the A-23 Highway, section: El Morell-Variante de Valls. (Tarragona).. IBERINSA. IBERINSA is an engineering consultancy,that undertakes studies, engineering projects related to infrastructure and its management, architecture and project management. It is capable of undertaking large technologicallycomplex projects..

(45) Airports: • Basic design of the satellite building for the new south terminal at Barcelona airport. Waterworks: • Design of the Vega Baja (Alicante) desalination plant. • Design of main pipes in Valdurrios y Sastago de Monegros. • Design of Aguaviva Dam (Teruel). Environment: • Echocartographic study of Murcia, Almeria and Granada provinces. Project management: • Control and security of works at Barcelona Orbital Motorway. Viladecavalls-Terrasa section (Barcelona). • Control and security of the project to extend Madrid Metro line 11 to La Fortuna (Madrid).. IBERINSA continues consolidating its business overseas. In 2007 it opened a new branch in Honduras and two offices in Bulgaria, in addition to the offices already open in Egypt, Guatemala, El Salvador and Romania. Also, last year the company was awarded seven new contracts overseas, including technical assistance, design and supervision of the Smolian hydroelectric project and the Vidin-Sofia railway project, both in Bulgaria. FREYSSINET GROUP. The Freyssinet Group carries out its activities under the trading names of Freyssinet and Tierra Armada. Freyssinet specialises in projects involving pretensioning, repair and structure treatment techniques; Tierra Armada is a leader in geotechnical and structural projects. Contracts awarded to Freyssinet in 2007 include: Cables: • Cable-stayed bridge to Cantabria Science and Technology Park.. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. • Construction design of the Fuenmayor Bypass (La Rioja).. 43.

(46) WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. Metro interchange station, Madrid (Spain)..

(47) Renovation - Buildings. • Puerta del Puente and the Calahorra Tower (Cordoba). • Restoration of the Iglesia de Santa Maria in the Sant Pere de Terrassa group of churches (Barcelona). Renovation - Civil Engineering: • A Xestosa Viaduct (Orense).. Pretensioning - Civil Engineering: • Madrid-Valencia-Murcia high-speed railway line. Las Salinetas viaduct. • Madrid-Barcelona-French border high-speed railway line. San Boi de Llobregat viaduct. • Madrid-Barcelona-French border high-speed railway line. La Roca-Llinars section. • LNG tanks in Costa Azul, Mexico. TIERRA ARMADA. TIERRA ARMADA is a leading. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. Prestressing - Civil Engineering. • Foresta Business Park (Madrid). • Torre Espacio (Madrid).. 45.

(48) The group’s most significant projects in 2007 include: • Sax-Elda section (Alicante). Madrid-east coast high-speed railway line. • Alicante bypass. • A-67 Highway: Meseta-Cantabria. Section: Alar del Rey-Puebla de San Vicente (Palencia). SOLS. SOLS, Sociedad Levantina de Obras y Servicios, S.A., is specialised in civil engineering and non-residential construction, comprehensive residential refurbishment, and facade work in the Valencia region and. 46. ANNUAL REPORT / ACCIONA INFRASTRUCTURES. elsewhere on the east coast of Spain. SOLS´ most noteworthy projects in 2007 include the Colegio Consellería Cultura in Petres (Valencia) and the psychogeriatric home in El Palmar (Murcia). Work underway in 2008 includes the construction and resurfacing of N-1 highway (Alava Provincial Government) together with ACCIONA Infrastructures, and the transformation of the irrigation system in Riaño (Leon), as part of a consortium.. ACCIONA INFRASTRUCTURE MAINTENANCE ACCIONA Infrastructure Maintenance carries out technical studies and provides services and works in the areas of integrated maintenance and conservation of transport infrastructure (highways, railways, etc.) water works (canals, reservoirs), environmental projects (road embankments) and, in general, activities related to conservation, primarily of public infrastructure. Furthermore, the company has expanded its scope of projects to include maintenance of corporate networks, and conservation and maintenance of municipalities and hospitals.. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. company in the field of geotechnical and structural design. Because of its considerable experience and commitment to ongoing innovation, the company has developed in-house technology which offers numerous solutions ranging from three-hinged arches to prestressed beams. Additionally, prefabricated walls, pillars and capitals can be used to provide integrated solutions that greatly simplify project management..

(49) New contracts awarded in 2007 include comprehensive maintenance projects on the roads under the Aoiz maintenance depot (20082011), and maintenance and operation of various highways in Almeria province.. ACCIONA CONCESSIONS ACCIONA is one of the world’s leading companies in infrastructure concessions. The company ranks among the leaders in terms of both the number of projects and the volume of business. It currently has seventeen concessions in develop-. ment, both domestic and international, in transport, railway, irrigation, marinas, and buildings, not including hospitals. In 2007, the Hospital Services arm completed work on the Hospital Infanta Sofía (San Sebastian de los Reyes, Madrid), which provides 250 beds (total capacity of 350) with 100,000 m2 of built area. The hospital opened on 18 February 2008 and has proved a special success, not least in the challenge of selecting personnel from amongst the 24,000 applications received. Hospital del Bajío (Mexico), the first public-private partnership of its kind in Latin America, opened in 2007; there are more than 250 operation and maintenance people on staff.. acciona infrastructure maintenance. has extended its scope. to include corporate. network projects. ACCIONA Hospital Services was short-listed in four of the five international tenders in which it participated in 2007. Three of the projects are in Canada, which is one of the company’s main targets; the fourth is for the construction and operation of two hospitals in Chile.. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. The company, headquartered in Madrid, provides services throughout almost all of Spain.. 47.

(50) 1. San Luis Potosí Polytechnic University, Mexico. This service concession includes the construction, outfitting and operation of a new campus for 5,000 students. This is the first time in Latin America that a campus is to be managed under concession. 2. A2 road section 2, in Guadalajara. Part of the “First Generation” highway contracts tendered by the Infrastructure Ministry. This concession contract includes the refurbishment and upgrading of the A-2 road between kilometre point 62.0 and kilometre point 139.5 and covers the upkeep, maintenance and operation of this section of the road for 19 years. 3. Brazil federal toll road: Lot 3- BR-393/RJ. The project comprises the resurfacing, upgrading and operation as a toll road of the BR-393/RJ for 25 years. The toll road has a length of 200.4 km. In 2007, financial closures were reached on the following concessions: Navarre Canal Irrigation. 48. ANNUAL REPORT / ACCIONA INFRASTRUCTURES. Zone (133 million euro), Ebro Bridge (43 million euro) and the new Barà marina (36 million euro). Below is a list of concessions in which ACCIONA participates: Spain: Railways: • Baix Llobregat Tramway (Barcelona). • Besós Tramway (Barcelona). • Madrid Metro line 9, Puerta de Arganda - Arganda del Rey section (Madrid region). • Parla Tramway (Madrid region). • Murcia Tramway. Highways: • Radial 2 Madrid-Guadalajara toll road. • M-45 highway, A2-O’Donnell Axis (Madrid). • Ruta de los Pantanos, M-40-Quijorna section (Madrid region). • Viñedos road, Consuegra-Tomelloso section (Toledo). • Ebro Bridge, Villafranca-El Burgo de Ebro section (Aragon). • A-2 road, section 2 (Guadalajara).. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. In 2007, ACCIONA was awarded three new concessions:.

(51) ACCIONA IS ONE OF THE WORLD’S. LEADING COMPANIES. IN INFRASTRUCTURE. CONCESSIONS. Hospitals: • Hospital Infanta Sofía (Madrid).. Public buildings: • San Luis Potosí Polytechnic University (Mexico). Hospitals: • Hospital del Bajío (Mexico).. International: Highways: • Litoral Central toll road network (Chile). • Américo Vespucio Sur Highway (Chile). • Federal toll road Lot 3 BR-393/RJ (Brazil).. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. Irrigation: • Navarre Canal. Marina: • New marina in Barà (Tarragona).. 49.

(52) ACCIONA REAL ESTATE. new initiatives for new markets Fresh from delivering the first eco-efficient housing in Spain, ACCIONA Real Estate is taking new initiatives and bases growth on the diversity of its property activity. The residential property market slowed in 2007. Demand for housing was weaker than in previous years, mainly because of the uncertainty generated by general speculation that house prices were about to fall. That effect, coupled with tighter lending conditions that have raised the barrier to home ownership (higher interest rates, less bank liquidity), cooled the sector and led to a reduction in the pace of sales and an increase in unsold homes.. 50. ANNUAL REPORT / ACCIONA REAL ESTATE. Despite the market’s temporary difficulties, ACCIONA Real Estate attained 424 million euros in revenues, due partly to expanding its portfolio of assets and also to an increase in international activity. Diversifying the rental portfolio and entering new markets are the key factors that will underpin ACCIONA Real Estate’s growth in the short and medium term, whilst not forgetting the portfolio of residential property in Spain.. The residential developments completed during the year include Madrid’s first two projects involving eco-efficient homes: ‘Los Vencejos del Bercial’ and ‘Las Cigüeñas de Vallecas’. They were the first developments to be designed under criteria of eco-efficiency and, two years later, in fulfilment of its commitment to its customers, ACCIONA Real Estate delivered Spain’s first 261 eco-efficient homes. Over the next 50 years, ‘Las Cigüeñas de Valle-. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. and the opening of new markets..

(53) portfolio, acciona real estate. Eco-efficient housing, Madrid (Spain).. generated revenues of.  million euro ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. thanks to the expansion of its property. 51.

(54) has delivered the. first  eco-efficient. dwellings in spain cas’ is expected to avoid the emission of over 4,500 tonnes of CO2 and save over 300,000 m3 of water. These projects represent a tangible expression of ACCIONA Real Estate’s combined focus on development and sustainability. Other developments that were delivered include: 123 apartments in ‘El Mirador de Peñarredonda’ (Orense); ‘Los Flamencos’ (Almería), comprising 101 apartments, 50 apartments in ‘Edificio América’ (Malaga), Phase II of ‘Alosa Residencial’ (Lleida), comprising 71 dwellilngs; 45 in ‘Els Blauets’ (Gerona); Phase III of Parc Castellar, comprising 71, and 454 dwellings in a number of projects in Warsaw. ACCIONA Real Estate also continued to invest. 52. ANNUAL REPORT / ACCIONA REAL ESTATE. in land for residential development. It acquired sites in Extremadura and Pamplona (Navarre), its first inroads into the real estate business in these Spanish regions. It also bought five buildings on Avenida del Puerto in Valencia and land for residential construction in Umbrete (Seville) and El Ejido (Almeria). In the rental sector, the division continued to focus on office rentals by making additional investments and also strengthened its presence in other segments which it has entered recently, such as shopping centres and rental homes. ACCIONA Real Estate is developing or managing over 230,000 m2 of office space in Madrid, Barcelona, Seville and Valencia, and over 160,000 m 2 in Warsaw. In all cases, the yearend occupancy rate was excellent. In 2007, the company acquired land in Barcelona’s 22@ district to develop 31,135 m2 of office space, and it bought a plot of land in an area of Seville that is undergoing urban regeneration, where it plans to build 21,000 m2 of office space. In the area of retail investment, last year. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. acciona real estate.

(55) Continuing to expand abroad, ACCIONA Real Estate entered Brazil in 2007 by buying 213,000 m2 of land in Resende, Rio de Janeiro. It plans to build a unique gated community comprising of 372 homes surrounded by 98,000 m2 of green areas. The deal represents a total investment of 28 million euro.. ACCIONA Real Estate has continued to operate in the residential rental sector (both pricecontrolled and deregulated). El Coto is still one of Madrid’s most outstanding property rental portfolios, comprising over 1,000 homes in Parque Conde de Orgaz, with an occupancy rate of over 95%.. ACCIONA Real Estate is also active in Portugal, Poland and Mexico. It has over 6,500 homes at various stages of development.. The rental sub-division also has an administrative concession to manage over 1,200 student apartments; at the end of the 2006-07 academic year, occupancy was 100% in Castellon and Murcia, 99% in Lleida, 97% in Cadiz and 90% in Albacete. Additionally, the hotels managed by the company attained a 70% occupancy rate.. 1,200 university apartments The property portfolio also includes more than 1,200 university apartments, under administrative concesson regimes, which at the end of the 2006-7 academic year had occupancy rates of 100% in Castellon and Murcia, 99% and 97% respectively in Lleida and Cadiz, and 90% in Albacete.. In Poland, ACCIONA Real Estate is an established player in the industrial property sector and has acquired a 40,000 m2 plot with industrial buildings in Warsaw. The plot is in an expanding business area of Warsaw, adjoining the airport and with access to the main roads out of the city. In Mexico, where ACCIONA Real Estate is a byword for high-end luxury housing, the company has strengthened its presence by moving into the upper middle-class segment through the acquisition of a site in Mexico City. It. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. ACCIONA Real Estate reached an agreement to buy out Grupo Lar’s 50% stake in the Cornellá-El Prat shopping centre, thus attaining 100%. The company does not rule out future acquisitions in areas where it can offer customers a better service and contribute to local development.. 53.

(56) 54. ANNUAL REPORT / ACCIONA REAL ESTATE. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. Solar energy panels on the roof of eco-efficient housing in Madrid (Spain)..

(57) Customer satisfaction is a vital concern for ACCIONA Real Estate. For that reason, it has established three new initiatives: the ACCIONA Real Estate Club, which offers customers notable advantages in buying products and services associated with the purchase of a home; a call centre operating round the clock to provide information about any of ACCIONA Real Estate’s projects; and a system of surveys and audits at all points of sale to assess the quality of the service which the company provides and to identify areas where it can improve in order to enhance customer satisfaction. In line with its firm commitment to protecting the environment and as part of ACCIONA’s Climate Strategy, ACCIONA Real Estate has. begun to conduct energy audits at all its office buildings. The first audit was conducted in 2007 at its headquarters, at Avenida Europa, 20, Alcobendas, Madrid. The result was a number of proposals that will save over 30% of the electricity and over 15% of the gas consumed by the building. These measures include implementing good practices by users, improving the existing energy installations and enhancing maintenance and operating practices. As part of its R&D (Research and Development) initiative, ACCIONA Real Estate has obtained approval for its first European project. `Clear up´ is a research project to obtain smart buildings that are comfortable, healthy and non-polluting. It is based on technological efficiency, developing nanomaterials to improve energy performance in heating, ventilation, air conditioning and lighting, while improving indoor air quality. At the Madrid Real Estate Fair 2007, ACCIONA Real Estate received the award for Best Communication and Marketing Strategy for its. Pioneers in eco-efficient homes At the Madrid Real Estate Fair 2007, ACCIONA Real Estate received the award for Best Communication and Marketing Strategy work to communicate its position as “Pioneers in eco-efficient homes”. The campaign conveyed the benefits of eco-efficient homes, for both users and the environment. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. plans to build 224 apartments on this plot, which adjoins Polanco, an area well known for its hotels and shops. In the next year, the company plans to strengthen its presence in these countries through investments, and also to move into new markets that offer growth potential and have a stable legal system.. 55.

(58) ‘clear up’ is a research project. to develop intelligent. buildings free of. contamination work to communicate its position as “Pioneers in eco-efficient homes”. Developments Investment Property Fixed Assets Total Asset valuation In December 2007, according to the valuation performed jointly by several independent experts, the market value of the real estate assets (GAV), developments, investment property and fixed assets, rose to 2.739 billion euros, in accordance with the following breakdown:. 56. ANNUAL REPORT / ACCIONA REAL ESTATE. 1,634 748 262 2,644. The capital gains accumulated prior to taxes on those assets at the end of the financial year reached 645 million euro.. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. The campaign conveyed the benefits of eco-efficient homes, for both users and the environment, in a clear and understandable manner to its target audience.. Million euro.

(59) The company manages a total of 32 car parks in Spain and overseas (in Brazil and Andorra), which together provide a total of 17,706 parking spaces. Five car parks are currently under construction, including notably the Miradero in Toledo (600 spaces).. Milestones • In 2007, a second car park, allocated entirely to local residents, was built and opened in La Laguna. • All car parks have switched to the new system of charging per minute (formerly per hour), which came into effect on 1 September 2007. ACCIONA Parking expects to consolidate its presence by considering new projects both in Brazil and in those Spanish cities where it is already present.. ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. ACCIONA PARKING In 2007 ACCIONA Parking obtained 18.1 million euros in revenues, a 15% increase with respect to the previous year, due to an 18.9% growth in off-street car parks.. 57.

(60) ACCIONA ENERGY. biggest wind farm developer worldwide In using non-fossil fuel resources (wind, sun and biofuels), ACCIONA Energy expanded in 2007 in terms of international reach, capacity installed for the year. 2007 was the most outstanding year in the history of ACCIONA Energy in terms of capacity installed, energy production, and the scale of the division’s international expansion. Outstanding achievements include: Global figures • More than 1,000 MW new renewable capacity added, bringing the total to over 5,500 MW.. 58. ANNUAL REPORT / ACCIONA ENERGY. • 28.7% increase in renewable production to 7,886 GWh. • 941 MW of new wind capacity installed (23.6% more than in 2006) reaching a total of 5,296 MW (5.6% of the world total). • 796 MW installed in part-owned wind parks, totalling 3,824 MW. • 734 MW new attributable capacity, totalling 3,030 MW (29% increase).. • 31% increase in wind power generation to 7,494 GWh. • ACCIONA Windpower more than doubled wind generator production, producing a total of 873 MW. By region • Outstanding performance in the USA (now ACCIONA Energy’s second-largest market), where installed capacity quadrupled in 2007.. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. and total power generated from its plants..

(61) more than , MW. installed renewable Wind park, Navarre (Spain).. energy capacity ANNUAL REPORT 2007. WorldReginfo - d167a22e-6fef-498a-8cf5-afe9eb78e963. ACCIONA energy reached. 59.