ACS SERVICIOS, COMUNICACIONES Y ENERGIA S.L GREEN BOND ANNUAL REPORT 2019

GREEN BOND CHARACTERISTICS

ISSUER: ACS, Servicios, Comunicaciones y Energía, S.L.

ISSUE DATE: 18th April 2018

ISSUE IDENTIFICATION NUMBER: XS1799545329

NOMINAL AMOUNT: EUR 750,000,000

MATURITY DATE: 18th April 2026

COUPON: 1.875% (Annual, Fixed)

COUPON PAYMENT: Annually in arrear

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USE OF PROCEEDSThe net proceeds of green financing

instruments will be used to finance and/or

refinance, in whole or in part, assets or

activities that meet the eligibility

requirements

The Paris Agreement on Climate Change aims to limit

global temperature rise this century below 2ºC.

Renewable Energies will play an instrumental role in

the transition to a low-carbon economy. Investing in

renewable energy production ACS SCE contributes to

provide people with cleaner, reliable, sustainable

energy and to combat climate change and its impacts

Eligible Projects will fall into four broad categories:

Production of

Renewable Energy

Transmission &

Distribution

Network Projects

Water and Water

Management

Eligible Eficiency

Energy

Wind (Onshore and

Offshore)

Solar (Photovoltaic or

Concentrated)

Hydro (essential that is

developed sustainably)

Connecting Renewable

Energy Sources

Required to connect or

support integration of

Renewable Energy inputs to

national grids and systems

Helps to maintain clean

water for reuse and to

optimize resource recovery

Helps to resolve water

scarcity, waste minimization,

alleviating unsustainable

waste generating

Reducing GHG emissions

with efficient, stable and

reliable energy.

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Since the issuance of the Bond two new projects (1 Wind Farm and 1 PV) have been selected as Eligible once verified that the eligibility criteria is met. The investments transactions during this period sum an amount of 307,23 Mill €

Additionally 6 projects (2 Wind Farm, 3 PV and 1 T&D ) have been sold and the returns obtained have been reinvested in the rest of the portfolio. The total divestment is calculated in 110 mill €

As 31st March 2019 635Mill € are allocated in the different projects that compose the ACS GB portfolio.

Unallocated 109 Mill € are identified as near future disbursements on Renewable Wind projects

Complete list and characteristics of the projects can be found in annex I

Third party assurance report of the use of Green bond profits can be found in annex II

FUND ALLOCATIONS

Fund allocation per category

WIND CSP PV T&D WATER HYDRO LIGHTING

0,00

50,00

100,00

150,00

200,00

250,00

Fund allocation per country

Spain

Peru

Uruguay

UK

Taiwan

US

Sudafrica

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TOTAL FUND ALLOCATIONS

8 Projects

Total Invested 418,43 Mill €

217,28 Mill € Finance

201,15 Mill € Refinance

6 Projects

Total Invested 85,78 Mill €

41,93 Mill € Finance

43,85 Mill € Refinance

1 Project

Total Invested 5,52 Mill €

1,72 Mill € Refinance

3,80 Mill€ Finance

WIND POWER GENERATION

SOLAR POWER GENERATION

HYDROELECTRIC POWER GENERATION

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TOTAL FUND ALLOCATIONS 9 Projects

Total Invested 84,32 Mill €

83,42 Mill € Refinance

0,9 Mill € Finance

3 Projects

Total Invested 22,46 Mill €

4,63 Mill€ Finance

17,83 Mill € Refinance

24 Projects

Total Invested 18,49 Mill €

18,49 Mill € Refinance

TRANSMISSION LINES

WATER MANAGEMENT

ENERGY EFFICIENCY

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BENEFITS IN SUSTAINABILITY

As of 31st March 2019 the total tons of CO2 avoided in operational projects have been

286.645tons (188.878 tons coming from projects under ACS portfolio although sold during

the period analyzed, 97.767tons corresponds to projects included in the actual Green

Bond portfolio)

For projects in early stages of development and construction the quantitave impact

indicators have been calculated following GHG protocol guidelines. The total tons of CO2

avoided is estimated in 4.355.369 tons

Third party assurance report of the methology used for the CO2 avoided emissions can be

found in Annex III of this report

In an informative mode, CO2 avoided emissions for the under construction sold proyects

have been estimated in 293.570 tons

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ANNUAL ATRIBUTABLE GHG EMMISSIONS AVOIDED

6 Projects

Installed capacity: 1.380,68 MW

Energy produced: 293.315,72 MWh

Potential Energy generation: 5.987.881,16 MWh

GHG emissions avoided: 5.027,73 tCO2e

Potential GHG emissions avoided: 3.240.694,04 tCO2e

2 Operational projects sold during the period Installed capacity: 129,25MW

Energy Produced: 288.308,97MWh

GHG emissions avoided 121.089,77tCO2e

BENEFITS IN SUSTAINABILITYREPORTING INDICATORS BY CATEGORY

WIND POWER GENERATION

SOLAR POWER GENERATION

8 Projects

Installed capacity 1.395,03 MW

Energy produced 103.401,69MWh

Potential Energy generation: 2.487,24 GW

GHG emissions avoided: 74.826,88 tCO2e

Potential GHG emissions avoided: 1.069.513,41 tCO2e

1 Operational project sold during the period Installed capacity: 150 MW

Energy Produced: 125.767,56 MWh

GHG emissions avoided 67.788,71tCO2e

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9 Projects

4,182 KM of transmission

No renewable units connected yet

3 Projects

Capacity 1.522.710 M3/day

Total potential production: 549.372.333 M3

People impacted: 204.095 hab

24 Projects

Amount of energy saved: 41.656 MWh

GHG emissions reduced or avoided: 17.912 tCO2e

TRANSMISSION LINES

WATER MANAGEMENT

ENERGY EFFICIENCY

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BENEFITS IN SUSTAINABILITYREPORTING INDICATORS BY CATEGORY

HYDROELECTRIC POWER GENERATION

1 Project

Installed capacity 19,78 MW

Potential Energy generation: 107.128 MWh

Potential GHG emissions avoided: 45.162 tCO2e

ANNEX I- LIST OF ELIGIBLE PROJECTS AS OF MARCH 2019

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Total installed capacity CO2 avoiced emissions

CATEGORY Technology Project Location Operational date Stage (MW, ml, '') 2018-1T2019 tons ASC share

i) RENEWABLE ENERGY PRODUCTION

WIND Castilla y León ,

Spain

2018, 2019 Promotion 39 MW 41.092,34 64,28%

i) RENEWABLE ENERGY PRODUCTION WIND Uruguay 24/05/2017 Operation 49,2 MW 1.982,52 100,00%

i) RENEWABLE ENERGY PRODUCTION WIND Uruguay 19/05/2017 Operation 52,8 MW 2.175,47 90,00%

i) RENEWABLE ENERGY PRODUCTION WIND Aberdeen, UK 30/01/2020 Construction 49,63 MW 49.474,03 90,00%

i) RENEWABLE ENERGY PRODUCTION WIND Taiwan 2021, 2024, 2026 Promotion 1100 MW 3.122.931,24 90,00%

i) RENEWABLE ENERGY PRODUCTION CSP Nevada, US 19/11/2016 Operation 110 MW 63.673,97 36,67%

i) RENEWABLE ENERGY PRODUCTION CSP Upington, Sudáfrica 30/11/2018 Construction 100 MW 11.152,91 13,33%

i) RENEWABLE ENERGY PRODUCTION PV Aragón, Spain 2019 Promotion 349,47 MW 307.942,74 100,00%

i) RENEWABLE ENERGY PRODUCTION PV Aragón, Spain 2019 Promotion 199,5 MW 186.686,98 100,00%

i) RENEWABLE ENERGY PRODUCTION PV Aragón, Spain 2019 Promotion 249,64 MW 188.214,23 100,00%

i) RENEWABLE ENERGY PRODUCTION PV Ciudad Real, Spain 2019 Promotion 190 MW 185.755,87 100,00%

i) RENEWABLE ENERGY PRODUCTION PV Albacete, Spain 2019 Promotion 146,42 MW 151.672,09 100,00%

i) RENEWABLE ENERGY PRODUCTION HYDRO Uruguay 15/09/2019 Construction 19,78 MW 45.161,88 100,00%

i) RENEWABLE ENERGY PRODUCTION PV Spain 2019 Promotion 50MW 49.214,50 100,00%

i) RENEWABLE ENERGY PRODUCTION WIND Mexico 2020 Construction 90MW 28.066,13 70,00%

ii) ENERGY DISTRIBUTION AND MANAGEMENT T&D Brazil 2017 Operation 492,00 n/a 50,00%

ii) ENERGY DISTRIBUTION AND MANAGEMENT T&D Brazil 2017 Operation 301,00 n/a 50,00%

ii) ENERGY DISTRIBUTION AND MANAGEMENT T&D Brazil 2018 Construction 767,00 n/a 50,00%

ii) ENERGY DISTRIBUTION AND MANAGEMENT T&D Brazil 2020/2021 Promotion 435,00 n/a 50,00%

ii) ENERGY DISTRIBUTION AND MANAGEMENT T&D Brazil 2020 Promotion 451,00 n/a 50,00%

ii) ENERGY DISTRIBUTION AND MANAGEMENT T&D Brazil 2020 Promotion 485,00 n/a 50,00%

ii) ENERGY DISTRIBUTION AND MANAGEMENT T&D Brasil 2019 Promotion 932,000 n/a 50,00%

ii) ENERGY DISTRIBUTION AND MANAGEMENT T&D Chile 11/02/2022 Promotion 220,000 n/a 33,10%

ii) ENERGY DISTRIBUTION AND MANAGEMENT T&D Peru 25/11/2017 Operation 368,00 n/a 100,00%

iii) SUSTAINABLE WATER AND WASTE WATER MANAGEMENT WATER Lima, Perú 26/11/2019 Construction 35.000 m3/day n/a 100,00%

iii) SUSTAINABLE WATER AND WASTE WATER MANAGEMENT

WATER Emirate of Ras Al

Khaimah

2020 Construction 22 MIG/d n/a 40,00%

iii) SUSTAINABLE WATER AND WASTE WATER MANAGEMENT WATER Antrofagasta, Perú 2021 Construction 38,500 Ha of irrigation n/a 100,00%

iv) ENERGY EFFICIENCY LIGHTING Valencia (Spain) 2014 Operation n/a 532,58 100,00%

iv) ENERGY EFFICIENCY LIGHTING Valencia (Spain) 2014 Operation n/a 141,98 100,00%

iv) ENERGY EFFICIENCY LIGHTING Madrid (Spain) 2015 Operation n/a 85,09 100,00%

iv) ENERGY EFFICIENCY LIGHTING Tarragona (Spain) 2014 Operation n/a 452,31 100,00%

iv) ENERGY EFFICIENCY LIGHTING Murcia (Spain) 2014 Operation n/a 374,39 100,00%

iv) ENERGY EFFICIENCY LIGHTING Madrid (Spain) 2014 Operation n/a 269,26 100,00%

iv) ENERGY EFFICIENCY LIGHTING Tarragona (Spain) 2017 Operation n/a 119,33 100,00%

iv) ENERGY EFFICIENCY LIGHTING Toledo (Spain) 2014 Operation n/a 154,29 100,00%

iv) ENERGY EFFICIENCY LIGHTING Lanzarote (Spain) 2014 Operation n/a 681,13 100,00%

iv) ENERGY EFFICIENCY LIGHTING Valencia (Spain) 2017 Operation n/a 1.780,59 100,00%

iv) ENERGY EFFICIENCY LIGHTING Lanzarote (Spain) 2014 Operation n/a 285,89 100,00%

iv) ENERGY EFFICIENCY LIGHTING Jaen (Spain) 2014 Operation n/a 223,54 100,00%

iv) ENERGY EFFICIENCY LIGHTING Sevilla (Spain) 2015 Operation n/a 1.058,43 100,00%

iv) ENERGY EFFICIENCY LIGHTING Jaen (Spain) 2016 Operation n/a 1.614,00 100,00%

iv) ENERGY EFFICIENCY LIGHTING Huelva (Spain) 2014 Operation n/a 507,02 100,00%

iv) ENERGY EFFICIENCY LIGHTING Córdoba (Spain) 2014 Operation n/a 241,78 100,00%

iv) ENERGY EFFICIENCY LIGHTING Cáceres (Spain) 2016 Operation n/a 4.542,90 100,00%

iv) ENERGY EFFICIENCY LIGHTING Málaga (Spain) 2015 Operation n/a 940,92 50,00%

iv) ENERGY EFFICIENCY LIGHTING Madrid (Spain) 2014 Operation n/a 1.003,90 40,00%

iv) ENERGY EFFICIENCY LIGHTING Valencia (Spain) 2014 Operation n/a 749,51 50,00%

iv) ENERGY EFFICIENCY LIGHTING Tenerife (Spain) 2015 Operation n/a 305,09 100,00%

iv) ENERGY EFFICIENCY LIGHTING Sevilla (Spain) 2017 Operation n/a 717,56 100,00%

iv) ENERGY EFFICIENCY LIGHTING Huelva (Spain) 2017 Operation n/a 142,11 100,00%

iv) ENERGY EFFICIENCY LIGHTING Sevilla (Spain) 2017 Operation n/a 665,59 100,00%

ANNEX II – ANNUAL ASSURANCE REPORT

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ANNEX III- CO2 AVOIDED EMISSIONS THIRD PARTY ASSURANCE REPORT

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