ACS SERVICIOS, COMUNICACIONES Y ENERGIA S.L ...Since the previous report 14 new projects (13 PV and 1 T&D) have been selected as Eligible once verified that the eligibility criteria

ACS SERVICIOS, COMUNICACIONES Y ENERGIA S.L GREEN BOND ANNUAL REPORT 2020

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

2

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

Reducing GHG emissions

with efficient, stable and

reliable distribution

Helps to maintain clean

water for reuse and to

optimize resource recovery

Helps to resolve water

scarcity, waste minimization,

alleviating unsustainable

waste generating

Required to connect or

support integration of

Renewable Energy inputs to

national grids and systems

3

Since the previous report 14 new projects (13 PV and 1 T&D) have been selected as Eligible once verified that the eligibility criteria is met. The investments transactions during this period sum an amount of 151,89 Mill €

Additionally 3 T&D projects have been sold and the returns obtained have been reinvested in the rest of the portfolio. The total divestment is calculated in 184,9 mill €. This sum includes the divestment produced as a result of a 49,89% sell of part of the PV portfolio projects.

As 31st March 2020 601,98Mill € are allocated in the different projects that compose the ACS GB portfolio.

Unallocated 142 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

4

132,70

223,29

152,30

40,10

26,0511,12 16,41

Fund allocation per category

WIND CSP PV T&D WATER HYDRO LIGHTING

170,88

25,15

63,5543,42

5,25

198,86

24,4334,66

5,44

29,44

0,00

50,00

100,00

150,00

200,00

250,00Fund allocation per country

Spain

Peru

Uruguay

UK

Taiwan

US

Sudafrica

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TOTAL FUND ALLOCATIONS

24 Projects

Total Invested 375,59 Mill €

174,44 Mill € Finance

201,15 Mill € Refinance

6 Projects




1 Project




WIND POWER GENERATION

SOLAR POWER GENERATION

HYDROELECTRIC POWER GENERATION

5


TOTAL FUND ALLOCATIONS 7 Projects




3 Projects


10,56 Finance


24 Projects



TRANSMISSION LINES

WATER MANAGEMENT

ENERGY EFFICIENCY

6


BENEFITS IN SUSTAINABILITY

As of 31st March 2020 the total tons of CO2 avoided in operational

projects have been 429,067,94 since 2018

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

11,654,615,83 since 2018

Third party assurance report of the methology used for the CO2

avoided emissions can be found in Annex II ii of this report

7

6 Projects

Installed capacity: 2.781 MW

Energy produced: 657.758,87 MWh

Potential Energy generation: 19.133,014 GW

GHG emissions avoided: 16.622,71 tCO2e

Potential GHG emissions avoided: 9.613.385 tCO2e


WIND POWER GENERATION

SOLAR POWER GENERATION

HYDROELECTRIC POWER GENERATION

24 Projects

Installed capacity 3.004,16 MW

Energy produced 406.746,69MWh

Potential Energy generation: 3.065,254 GW

GHG emissions avoided: 195.673,46 tCO2e

Potential GHG emissions avoided: 1.280.858 tCO2e

1 Project

Installed capacity 19,78 MW

Potential Energy generation: 212.259,18 MWh

potential GHG emissions avoided: 89.148,85 tCO2e

8

7 Projects

2,183 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: 79.669,71 MWh

GHG emissions reduced or avoided: 25.246,92 TCO2e


TRANSMISSION LINES

WATER MANAGEMENT

ENERGY EFFICIENCY

9

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ANNEX I- LIST OF ELIGIBLE PROJECTS AS OF MARCH 2020ACS SCE GREEN BOND

ELEGIBLE PROYECTS

31 March 2020

Total installed capacity CO2 avoiced emissions Refinancing

CATEGORY Technology Project Location Operational date Stage (MW, ml, '') 2018-1T2020 tons ASC share or financing

i) RENEWABLE ENERGY PRODUCTIONWIND Spain 2018, 2019 Promotion 39 MW 63.239,12 100,00% Financing

i) RENEWABLE ENERGY PRODUCTIONWIND Uruguay 24/05/2017 Operation 48,6 MW 6.538,08 100,00% Refinancing

i) RENEWABLE ENERGY PRODUCTIONWIND Uruguay 19/05/2017 Operation 52,8 MW 7.415,21 90,00% Refinancing

i) RENEWABLE ENERGY PRODUCTIONWIND UK 30/01/2020 Construction 50 MW 91.469,12 95,00% Financing

i) RENEWABLE ENERGY PRODUCTIONWIND Taiwan 2021, 2024, 2026 Promotion 996 MW 9.326.874,40 90,00% Financing

i) RENEWABLE ENERGY PRODUCTIONCSP US 19/11/2016 Operation 110 MW 76.457,84 36,67% Refinancing

i) RENEWABLE ENERGY PRODUCTIONCSP Sudafrica 30/11/2018 Construction 100 MW 59.100,86 13,33% Refinancing/financing

i) RENEWABLE ENERGY PRODUCTIONPV Spain 2020 Construction 24MW 15.244,98 50,20% Financing

i) RENEWABLE ENERGY PRODUCTIONPV Spain 2020 Construction 49,88MW 192.555,65 50,20% Financing

i) RENEWABLE ENERGY PRODUCTIONPV Spain 2020 Operation 49,88MW 1.962,08 50,20% Financing

i) RENEWABLE ENERGY PRODUCTIONPV Spain 2019 Operation 350 MW 15.943,67 50,20% Financing




i) RENEWABLE ENERGY PRODUCTIONPV Spain 2020 Promotion 50MW 33.274,69 100,00% Financing


i) RENEWABLE ENERGY PRODUCTIONPV Spain 2021 Promotion 25,3MW 4.802,52 100,00% Financing


i) RENEWABLE ENERGY PRODUCTIONPV Spain 2021 Promotion 99,76MW 37.873,54 100,00% Financing







i) RENEWABLE ENERGY PRODUCTIONPV Spain 2019 Promotion 146,42 MW 5.607,28 100,00% Financing

i) RENEWABLE ENERGY PRODUCTIONHYDRO Uruguay 15/09/2019 Construction 19,78 MW 89.148,85 100,00% Refinancing/financing

ANNEX I- LIST OF ELIGIBLE PROJECTS AS OF MARCH 2020

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Total installed capacity CO2 avoiced emissions Refinancing

CATEGORY Technology Project Location Operational date Stage (MW, ml, '') 2018-1T2020 tons ASC share or financing

ii) ENERGY DISTRIBUTION AND MANAGEMENT T&D Brasil 2018 Construction 495,00 n/a 50,00% Refinancing

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

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



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

iii) SUSTAINABLE WATER AND WASTE WATER MANAGEMENT WATER Peru 26/11/2019 Construction 33,264 m3/d n/a 100,00% Refinancing/financing

iii) SUSTAINABLE WATER AND WASTE WATER MANAGEMENT WATER Dubai 2020 Construction 22 MIG/d n/a 40,00% Refinancing/financing

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

i) RENEWABLE ENERGY PRODUCTION PV Spain 2019 Promotion 50MW 73.060,65 100,00% Financing

i) RENEWABLE ENERGY PRODUCTION WIND Mexico 2020 Construction 90MW 134.472,46 70,00% Financing

i) RENEWABLE ENERGY PRODUCTION PV Spain 2020 Promotion 530,26MW 264.291,51 100,00% Financing

i) RENEWABLE ENERGY PRODUCTION PV Mexico 2022 Promotion 622MW 611.702,29 100,00% Financing

ii) ENERGY DISTRIBUTION AND MANAGEMENT T&D Peru 2024 Promotion 317km n/a 100,00% Financing

iv) ENERGY EFFICIENCY LIGHTING Spain 2014 Operation n/a 790,12 100,00% Refinancing







iv) ENERGY EFFICIENCY LIGHTING Spain 2017 Operation n/a 2.248,31 100,00% Refinancing















ACS SCE GREEN BOND

ELEGIBLE PROYECTS 31 March 2020

12

ANNEX – II THIRD PARTY ASSURANCE REPORT

Inscrita en el Registro Mercantil de Madrid Tomo 12003, Folio 30, Hoja M-188.830 Inscripción 1ª. CIF: A81670614

Tel: +34 93 594 44 80 www.tuv-sud.es

TÜV SÜD Iberia Dirección Comercial: Avda. de los Artesanos, 20 28760. Tres Cantos (Madrid) España

Independent verification Report

CO2 AVOIDED EMISSIONS (Green Bond)

Company COBRA INSTALACIONES Y SERVICIOS S.A.

Address 10, Cardenal Marcelo Spínola Street – 28016 - Madrid

Autor(es) José Manuel Rodríguez

Verifier

UN QUALITY

TÜV SÜD Iberia SAU

Proyect Number 715833637

Tres Cantos, july, 02 2020

http://www.tuv-sud.es/

CO2 avoided emission verification report

Proyect number: 715833637

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1 Object

On 02.07.2020, a Verification was carried out by TÜV SÚD Ibérica SAU, at the company Cobra Instalaciones y Servicios S.A. CIF A46146387, at the offices of Cardenal Marcelo Spinola nº 10, in order to verify the system followed by the Department of Procedures and Standards (0550) for the Calculation of Avoided CO2 Emissions regarding Projects assigned to Green Bonds, and the quantities obtained.

2 Scope

This Report cover the conclusions of the verification of the Calculations carried out to obtain the Avoided Emissions of CO2, of the results obtained and related to the Projects in Operation of the Green Bonds. It is also verified that the estimates that have been made in the calculation (for non operation projects) are adequate.

3 References

The calculation of CO2 emissions avoided carried out and presented during the audit, has been carried out following the guidelines of the GHG Protocol. Verification has been carried out by TÜV SÜD Iberia SAU, following the guidelines of the UNE EN ISO 14064-3:2012 Greenhouse gases -- Part 3: Specification with guidance for the verification and validation of greenhouse gas statements.

4 Límits

During the years 2018, 2019 and first quarter of 2020, projects participated by companies of the ACS GROUP have been developed. The presented calculation is made from data obtained from the integrated projects, according to the following classification, depending on the state they are in:

Projects in exploitation phase

Projects under construction

Projects in the promotion phase The types of projects that have been considered are:

Energy efficiency

Renewable energy generation

Sustainable water management (do not contribute CO2 to the calculation)

Transmission lines (do not contribute CO2 to the calculation)

5 Assistants

Javier Román (GRUPO COBRA) Patricia Rodríguez (GRUPO COBRA) Jose Manuel Rodríguez Clavero (TÜV SÜD IBERIA SAU)

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6 Calculation Method

During the course of the audit, the following method is verified to calculate the CO2 avoided emissions:

EMISSIONS = ACTIVITY DATA x EMISSION FACTOR Differentiating by Project Type, have been considered as ACTIVITY DATA to:

Energy produced by a sustainable source that is no longer generated by conventional energy sources or

Energy saved by "energy efficiency projects". In order to obtain Activity Data, factors such as:

Percentage of participation

Percentage of performance or number of equivalent hours

Approximation to the exact operating days

Installed potency

7 Conclusions of the Verifications carried out.

For the presentation of the Calculations of CO2 avoided emissions, COBRA has used an Excel Sheet. Projects in the exploitation phase included in the calculation of avoided CO2 emissions, belong to the categories of Energy Efficiency Projects (ESEs) and Renewable Energy Projects. Activity Data: for the calculations, the amounts of energy generated in the Renewable Energy Projects are being considered as Activity Data. Emission Factors: It is verified that in the calculation for the 2018 period, Emission Factors corresponding to said period have been used, in accordance with the activity data; In the calculation for the 2019 period, Emission Factors corresponding to said period have been used in accordance with the activity data; Emission Factors (by estimate) for the year 2019 have been used in the calculation for the first quarter of 2020. It should be noted that in 2019, the Verification of Avoided Emissions for the year 2018 was carried out, [Report made by TÜV SÜD: Independent Verification Report CO2 AVOIDED EMISSIONS (Green Bonds) dated 03/22/19] in which they were verified tons of CO2 avoided corresponding to the 2018 financial year. The calculation presented was based on both Activity Data obtained and estimated Activity Data, as well as on an Emission Factor used, by estimation, in the calculation of tCO2 for the year 2018, corresponding to the year 2017. As of the date of this verification, it can be seen that the tons of CO2 avoided in that period have been recalculated, because improvements in the estimated activity data have been considered, since currently data obtained where estimates had previously been made are available (See cited report); Likewise, and since the Emission Factors for 2018 are already known, these have also been used in the new calculation. The company presents traceable justifications with arguments about the changes in the Activity Data (associated with ESEs projects) and the Emission Factors (Report on tons of CO2 avoided 2018-2020-Update, dated July 2020) for the period 2018. The new values have been verified.



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EXPLOITATION PHASE

RENEWABLE ENERGY PROJECTS In each calculated year, Renewable Energy Projects can be found in Exploitation, Construction and Promotion phase (pending to start). The last two (Construction and Promotion) are not calculated as real valid contributions but estimated, for Green Bonds (by definition of the quantitative impact indicators). The amounts of t CO2 avoided associated with Renewable Energy projects in the Exploitation phase are:

PERIOD EXPLOITATION PHASE

RENEWABLE ENE

2018 248.689,54 tCO2

2019 87.668,36 tCO2

2020 (1Trim.) 66.958,45 tCO2

ENERGY EFFICIENCY PROJECTS Energy Service Companies (ESEs) in operation. Data corresponding to the Energy Service Companies (ESEs) projects, linked to the ACS Group companies, provided by SICE and IMESAPI (ACS Group Companies) and accounted for by the provided savings measured in kWh are analyzed. The total verified amount for each year of emissions avoided in ESEs projects in operation are:

PERIOD EXPLOITATION PHASE

ENERGY EFFICIENCY (ESEs)

2018 13.595,56 tCO2

2019 9.426,73 tCO2

2020 (1Trim.) 2.729,29 tCO2

UNDER CONSTRUCTION

Projects under construction are of different types (Renewable Energies, Transmission Lines, Sustainable water management), The tons of CO2 avoided calculated by estimation are:

PERIOD CONSTRUCTION PHASE

2018 920.143,58 tCO2

2019 329.603,29 tCO2

2020 (1Trim.) 77.693,72 tCO2



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PROMOTION PHASE Projects in the promotion phase are of different types (Renewable Energies, Transmission Lines, Sustainable water management). The tons of CO2 avoided calculated by estimation are:

PERIOD PROMOTION PHASE

2018 2.498.344,99 tCO2

2019 6.153.758,26 tCO2

2020 (1Trim.) 1.675.071,99 tCO2

OTHER PROJECTS WITHOUT AVOIDED EMISSIONS CALCULATION Sustainable Water Management projects do not have associated CO2 emissions, although other indicators are taken into account to include these projects in the Green Bonds scope. Transmission line projects are not associated with CO2 emissions, although other indicators are taken into account to include these projects in the Green Bonds scope.



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8 Declaration of Verification

This verification audit has been carried out by TÜV SÜD Iberia following the GHG Protocol guidelines and based on the UNE EN ISO 14064-3:2012 “Greenhouse gases. Part 3: Specification with guidance for the verification and validation of greenhouse gas statements”. TÜV SÜD Iberia has realized the verification to obtain the information, explanations and evidence necessary to provide a reasonable level of assurance that the avoided CO2 emissions calculated by GRUPO COBRA for the years 2018 (update of the previous verification), 2019 and 2020 (1Trim ) have been correctly defined. a) Independent Opinion Calculation of CO2 Emissions Avoided by the Department of Procedures and Standards (0550) of Cobra Instalaciones y Servicios S.A. corresponding to the year 2018, 2019 y 2020 (1T):

- It is correct and accurately represents data and information about CO2 avoided emissions. - It is based on the GHG Protocol guidelines.

This verification report must be interpreted in conjunction with the Report and the Excel data that is prepared by COBRA to present avoided emissions calculations of projects included in the Green Bonds. The uncertainty accepted in the verification by TÜV SÜD Iberia is below 5%. CO2 emissions avoided that are considered in the calculations in the years 2018, 2019 and 2020 (1T) and that have been verified by TÜV SÜD Iberia are:

tCO2 avoided emissions

EXPLOITATION PHASE

TOTAL

EXPLOITATION

CONSTRUCTION

PHASE

PROMOTION

PHASE

RENEWABLE

ENERGY

ENERGY

EFFICIENCY

2018 248.689,54 13.595,56 262.285,11 920.143,58 2.498.344,99 2019 87.668,36 9.426,73 97.095,08 329.603,29 6.153.758,26 2020 (1T) 66.958,45 2.729,29 69.687,75 77.693,72 1.675.071,99

TOTAL 403.316,35 25.751,58 429.067,94 1.327.440,59 10.327.175,24

Verified by

Jose Manuel Rodriguez

TÜV SÜD Iberia S.A.U.



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CONFIDENTIALITY

All the information received during the process of the verification of avoided emissions, will have a confidential

treatment, committing TÜV SÜD IBERIA S.A.U. not to transmit it to third parties without the express authorization

of the client.

In any case, TÜV SUD IBERIA S.A.U. complies with the provisions of the Organic Law on Data Protection.

Datos.

Documents

ACS SERVICIOS, COMUNICACIONES Y ENERGIA S.L ...Since the previous report 14 new projects (13 PV and 1 T&D) have been selected as Eligible once verified that the eligibility criteria