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2021 INTEGRATED REPORT

FOR ANY FURTHER INFORMATION

OR QUERIES

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S U M M A R Y

LETTER FROM THE

BOARD OF DIRECTORS

DISCOVER THE

THE ELECNOR GROUP

CHAIRMAN

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ELECNOR GROUP

IN 2021

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SERVICES AND PROJECTS

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CONCESSIONS BUSINESS

88

SUSTAINABLE VALUE

APPENDICES

99

197

OUR PEOPLE,

OUR BEST ASSET

100

WE LOOK AFTER

OUR PEOPLE

115

OPERATIONAL EXCELLENCE

126

COMMITMENT TO THE

ENVIRONMENT

130

TECHNOLOGY AND

INNOVATION

146

RESPONSIBLE MANAGEMENT

155

SOCIAL IMPACT

182

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L E T T E R

GRI 102-14

Dear Friend,

I am once again pleased to present the Elecnor Group's Integrated Report to you. These pages provide you with a picture of what we are like and of how we act, take on challenges and succeed in our business.

In this Report, we also renew our commitment to the Principles of the United Nations Global Compact, to the Sustainable Development Goals and to sustainability, thereby considering our environmental, social and corporate governance responsibilities.

Before getting into details about the Elecnor Group's activities, processes, strategies and actions, I would like to highlight the work of its excellent human team. The companies of the Group are formed by people: the main, number one asset of this corporation over which I am proud to preside. I would like to express my utmost thanks to the over 21,000 people who work at the Elecnor Group, for their commitment, effort and responsibility.

CORPORATE REORGANISATION

Internally, 2021 represented a key financial year within the corporate reorganisation of the Group. The Board of Directors prepared the project for the spin-off of Elecnor, S.A. to Elecnor Servicios y Proyectos, S.A.U., which was approved at the General Shareholders' Meeting. The projected entailed the spin-off of part of the equity of Elecnor, S.A. devoted to the services and projects business activity, comprising one economic unit was acquired by universal succession by Elecnor Servicios y Proyectos, S.A.U.

Accordingly, Elecnor, S.A. continues to be the Group's listed parent company and the subsidiaries Elecnor Servicios y Proyectos, S.A.U. and Enerfín Sociedad

F R O M T H E

de Energía, S.L.U., as well as the partner company Celeo Concesiones e Inversiones, S.L., report to it.

This process has allowed us to adapt the corporate structure of the Group to the organisational reality according to which we have been working for several years. Furthermore, it facilitates management and coordination between activities. As a result, the added value of each activity can be differentiated and shown with greater transparency to be fully understood by the market.

2021, A YEAR WITH EXCELLENT RESULTS

2021 was one of the most outstanding years in our long history. Despite still being in a pandemic situation, the Elecnor Group earned a net profit of EUR 86 million, a 9.7% increase over 2020.

This increase was based on significant growth in business volume due to activities related to services that the Group provides in European countries, mainly Spain, the United Kingdom and Italy, as well as in the United States. The beginning of execution of major projects in Australia, Chile and Brazil has also had a positive impact.

Regarding turnover, the Group surpassed EUR

3,122 million, with a year-on-year increase of 27%. While this is a considerable figure, it is not one of our priority objectives, rather we are focused on increasing margins. It is important to point out here -because it gives us future visibility- that our portfolio of projects to be executed ended 2021 with a total of 2,507 million, after growing 10.3% with respect to 2020.

In both figures, the international component continues to show its dominant weight, with percentages of 54% of total sales and 72% of the overall portfolio to be executed.

C H A I R M A N

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As we have shown year after year, internationalisation is one of the cornerstones of our strategy, along with prudent diversification, improved cash generation, strict debt control and active interaction in pursuit of the maximum operational efficiency of our two major businesses: Services and Projects and Concessions.

GREEN AND SUSTAINABLE FINANCING

One of the other keys that has continued to define our financial strategy this year is resolute debt control, as well as the firm commitment to so-called green financing.

In 2021, the Group generated a cash flow of EUR 206 million through operations, and its net investment amounted to 100 million. The net financial debt with recourse was reduced by 8.1% with respect to the end of 2020, dropping to EUR 119 million. This was mainly due to the positive cash generation performance of the Group's businesses as a result of their operating activities.

Continuing with our permanent challenge to achieve goals linked to the sustainable agenda, we have restructured our sources of long-term financing, which have become sustainable due to complying with the requirements laid down by the Sustainability Linked Loan Principles.

Furthermore, three long-term private placements have been signed, likewise qualified as sustainable, for the total amount of EUR 100 million.

With these new lines, we have successfully extended the long-term financing periods, while maintaining reduced levels of costs and promoting the development of sustainable and environmentally friendly projects.

OUR SHAREHOLDERS

AND THE CREATION OF VALUE,

THE FOCAL POINT OF OUR STRATEGY

As you know, one of the main objectives of our strategic lines is the creation of continuing value for shareholders. In 2021, our securities ended at a price of EUR 10.5 per share, and the dividend yield was 3.1% for the year, repeating the figure of the preceding year, thanks to the company's financial strength.

And even in the uncertain scenario within which we are currently immersed, the dividend proposal to the General Shareholders' Meeting represents an increase of 6.5% compared to the distribution charged to 2020, and a payout of 36% of the Group's profit for the year 2021, in line with previous years and the Elecnor Group's shareholder care policy.

This policy, which has become a tradition, is most likely what led to us having been chosen, at the beginning of the year, to form a part of the Ibex Top Dividend Index.

LONG-TERM COMMITMENTS

All these results have a direct impact on our stakeholders, they drive the company's sustainability and they foster initiatives that promote an environmental, social and governance dividend.

We find ourselves at a unique moment in time to reinforce environmental policies with support for a short-term green economic recovery and with transformation of the economic model to one that is more sustainable and environmentally-friendly for the future.

The commitment of the Elecnor Group to environmental sustainability is inherent to the undertaking of its activities and its business strategy. On the one hand, the Group contributes to building a sustainable, low-carbon future through its renewable energy generation, energy efficiency, water and environmental activities; and, on the other hand, reducing its carbon footprint and undertaking appropriate environmental management.

In 2021 we continued to take steps towards decarbonisation by adhering to the Science-Based Targets initiative (SBTi), which identifies and fosters innovative approaches to setting science-based targets.

Following the Group's adherence to the SBT initiative, our Climate Change Strategy for 2035 has been updated. The new Strategy contributes to giving more effective responses to climate change, and

it is the basis of a profitable and growing business, thereby making the Elecnor Group a resilient, competitive and sustainable company.

As it is detailed in the Sustainable Value chapter of this Report, this Strategy is structured into four overall areas of action and three cross- cutting lines, the purpose of which is to adapt to the best disclosure practices in line with the recommendations of the Task Force on Climate- related Financial Disclosures (TCFD).

Moreover, for the fourth consecutive year the Elecnor Group has participated in the Carbon Disclosure Project (CDP), presenting its voluntary report on climate change. In 2021, it upheld the score of A- achieved in 2020, a score that positions the Group yet again at the highest level in terms of sustainability, adaptation and mitigation of the impact of climate change.

The Elecnor Group's commitment to society is linked to the Elecnor Foundation through social infrastructure and training projects. Beginning this year, I would like to highlight the "Growing in Prevention" project, an education programme that seeks to provide children with the tools for identifying and perceiving the risks they face every day. Over 5,000 students in the Community of Madrid from 71 schools (17 of which are Special Education schools) have already participated, as well as nearly 1,500 students from 33 schools in Extremadura (7 of which are Special Education schools).

This programme is in line with the priorities that our Group has had since its beginnings. We have always emphasised that people are the main asset of our company, which underpins its strategy on values such as talent, transparency and team work in conditions of utmost safety. In this connection, occupational risk prevention is a common

denominator throughout all the Group's activities. As you well know, health and safety form a part of our culture.

Among all these initiatives, I would like to make special mention of our unwavering commitment to ethical and responsible management. A commitment to the highest ethical standards by permanently perfecting our compliance system. A commitment acquired with our customers, employees and society as a whole as an essential value of our activity.

To conclude, I would like to convey to you not only my firm commitment but that of all members of the Elecnor Group to reach the objectives of this great company and the goals we have ahead.

And once again, I would like to thank all the people who work at the Elecnor Group for their effort, support and daily dedication. Without their participation and collaboration, none of what I have mentioned here would be possible.

I would also like to send a message of thanks to our shareholders, customers, partners and employees for trusting in a project that has an exciting, ambitious and promising future.

All that remains is for me to invite you to read this Integrated Report and discover the most important points of our activities, businesses and corporate policies during the year. The information is complemented by the Annual Accounts, the Annual Corporate Governance Report and the Annual Directors' Remuneration Report.

Yours sincerely,

Jaime Real de Asúa

CHAIRMAN

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Elecnor SA published this content on 23 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 June 2022 12:05:05 UTC.