ACCIONA earns €441 million and closes the year with an investment of €2,004 million

Acciona statement

This is an automated translation of the press release issued in Spanish

ACCIONA closed 2022 with a net profit of €441 million (+32.7%). In a complex environment, the group maintained its commitment to growth throughout the year, with a total investment of €2,004 million. ACCIONA Energía was boosted by the good performance of the long-term clean electricity sales business for companies with revenues of €2,111 million (+120.9%). The Infrastructure division ended the year with a record portfolio of €22,020 million (+21.7%).

ACCIONA's total income during the period amounted to €11,195 million (+38.1%). The Infrastructure division registered a turnover of €6,016 million (+23.5%) with strong growth in Brazil, Australia, Saudi Arabia and Canada. ACCIONA Energy's turnover reached €4,351 million (+76%), of which almost half (€2,111 million) is due to the business of commercializing energy for companies, which grew strongly (+120.9%) during the term. The rest of the group's activities (real estate, Bestinver, urban electric mobility, airport handling, services and ACCIONA Culture) brought in a total of €1,183 million (+12.1%).

The company's gross operating result (EBITDA) was €2,068 million (+39.4%). The Infrastructure division contributed €369 million (+14.2%); ACCIONA Energy, €1,653 million (+52.2%) and the rest of the businesses, €73 million (-29.3%).

The group's profit before tax reached €869 million (+51.1%) impacted by the impairment of the company's energy assets in Ukraine (-€35 million) and by the negative contribution of Nordex (-€194 million ). Excluding the impact of Nordex, profit before tax would have amounted to €1,063 million (+62%).

ACCIONA closed the year with a net financial debt of €5,253 million, with an improvement in the net debt/EBITDA ratio, which fell from 2.93 times to 2.54 times.

The net investment flow reached €2,004 million (+22.5%, excluding the divestments made in 2021 due to the IPO of ACCIONA Energy). As part of its deployment policy, ACCIONA Energy invested €1,279 million (+56.2%); Infrastructures, €244 million (+31.5%); Real estate, €61 million (-73%), and €421 million for the rest of the activities. This last section includes a €243 million investment in Nordex within the framework of two capital increases carried out in 2022, with which ACCIONA's stake in the wind turbine manufacturer grew from 33.6% to 40.97% .

INFRASTRUCTURES

ACCIONA's Infrastructure division reached a turnover of €6,016 million (+23.5%). By geographical area, turnover came mainly from Australia and Southeast Asia (30%); Spain (19%); Europe, the Middle East and Africa (26%); Latin America (17%) and the US and Canada (7%).

During 2022, the company won new awards worth €9,142 million. The main contract of the year was the award of the Western Harbor tunnel in Sydney (€2,746 million), the largest project in ACCIONA's history. Other notable projects were the Collahuasi desalination plant in Chile (€258 million), the expansion of the Palma de Mallorca airport (€218 million) or the La Serena hospital in Chile (€134 million).

The total Infrastructure portfolio once again broke its all-time record and increased to €22,020 million (+21.7%). By geography, the portfolio is divided between Australia and Southeast Asia (29%); Spain (18%); Latin America (27%); Europe, the Middle East and Africa (20%); and the US and Canada (5%).

The Infrastructure business closed the year with an EBITDA of €369 million (+14.2%) and a margin of 6.1%, driven by the improvement in profitability in the Construction activity, mainly international.

Within the division, Construction recorded revenues of €4,560 million (+25.8%) with EBITDA of €227 million (+39.4%). Water billed €1,272 million (+20.9%) with an EBITDA of €89 million (-11.2%), which mainly reflects the impact of the rising cost of energy on operation and maintenance activities. Urban and Environmental Services closed with a turnover of €148 million (-10.3%) and an EBITDA of €15 million (+10.9%). Concessions entered €52 million (-1.8%) with an EBITDA of €37 million (-18.8%), a figure that reflects the divestment of a portfolio of assets in Spain that was completed last year.

ACCIONA ENERGY

ACCIONA Energy obtained attributable net profit of €759 million (+109%) in 2022. The company's total revenues stood at €4,351 million (+76%), of which almost half (€2,111 million) are due to precisely to the commercialization of clean energy for companies, which grew strongly (+120.9%) during the period.

In 2022, the company signed power purchase agreements (PPAs) for a total of 2.5TWh. Among the agreements signed, those agreed with Fortia (which integrates some of the main industrial groups in Spain), Interxion, Mango, Makro, ZEN Energy or Barwon Renewable Energy Partnership (BREP), among others, stand out. The PPAs provide stability for long-term energy prices to the industry in one of its main inputs for production.

Bloomberg NEF distinguished ACCIONA Energy last year as the company that signed the third most green contracts of this type in the world.

The rest of the revenues in 2022 correspond to the wholesale generation business of ACCIONA Energía, which reached €2,240 million (+47.7%), distributed between Spain (€1,555 million) and the rest of the countries in which it operates ( €685 million), mainly Chile, Mexico and Australia.

The company's EBITDA was €1,653 million (+52.2%) and was obtained in a general environment of high energy prices, thanks to adequate commercial and risk management and the stabilization of ACCIONA Energy's financial costs under the new structure of the company, implemented for its IPO, in July 2021.

In the midst of the global race to decarbonise the economy and despite the uncertain environment, ACCIONA Energy made a gross investment of €1,640 million (+167.2%) in 2022, mainly in its projects under construction in Australia (McIntyre), in USA (Red Tailed Hawk, Fort Bend, High Point and Union) and Spain (San Serván and Bolarque), as well as the acquisition of an energy storage facility and a portfolio of projects in an advanced state of development in Texas.

Overall, the capacity under construction as of December 31, 2022 stood at 2.2GW, of which the company expects to complete almost 1.8GW in 2023.

Total installed capacity in December 2022 was 11,826MW (+5.2%), a net increase of 581MW reflecting the new capacity built (706MW) and a certain perimeter reduction in Spain (124MW). The company registered a consolidated production of 19,657GWh (-2.2%) in 2022.

Despite the strong investment, ACCIONA Energy maintained its level of debt stable at €2,021 million, with an improvement in the net financial debt/EBITDA ratio, which fell from 1.83 times to 1.22 times, which places the company in a solid balance sheet position to face new investments within its growth plan.

The entity was the most sustainable company in the utilities sector in Spain and the second most sustainable in the world, according to the analysis carried out by S&P in its ESG rating.

Additionally, MSCI, Sustainalytics, and CDP analyzed ACCIONA Energy for the first time during 2022, placing the company in a leadership position in its first year, unprecedented in the sector.

In sustainable financing, the company issued its second green public bond (€500 million) and its first green private placement in the US (US$200 million) throughout the year.

In its first full year as a listed company, ACCIONA Energy became part of relevant stock market indices such as the Ibex-35, the S&P Global Clean Energy Index, the Stoxx Europe 600 or the MSCI Europe, among others.

OTHER ACTIVITIES

In Other Activities, the Real Estate area obtained total income of €247 million (+30.5%) during the year, as a result of the delivery of 617 homes (+39.3%). The delivery of a project of 395 units for rent ( build to rent ) located in Valdebebas (Madrid), in the last quarter, stands out. The Gross Asset Value (GAV) of ACCIONA's real estate portfolio stood at €1,541 million (+13.2%).

Bestinver recorded a turnover of €101 million (-21%) and an EBITDA of €47 million
(-30.4%), due to the negative evolution of the fixed income and variable income markets during the year. Average assets under management at the end of the year were €5,929 million (-16%). The Bestinver Infra FCR Fund experienced a positive evolution, having committed €240 million of investment.

In the Services area, Facility Management increased its revenue figure by 9.4%, while there was a good evolution of Airport Services, with 33% more flights assisted compared to the previous year. In December, ACCIONA renewed one of the three handling licenses for the Düsseldorf airport (Germany) for a period of seven years.

Regarding the Urban Electric Mobility area, Silence increased the number of vehicles sold by 43% in 2022, reaching 12,826 units.

PROGRESS IN ESG

ACCIONA reached a percentage of 22.2% in the number of women in managerial and executive positions (26.0% in the case of ACCIONA Energy), increased the number of projects with social impact management by 24% and reduced the index accident frequency by 9.5%.

ACCIONA's investment (CAPEX) remained 98% (+4.8pp) aligned with the taxonomy of sustainable activities of the European Union during the year (100% in the case of ACCIONA Energy). The company reduced its CO2 emissions by -3.3% (-39.5% in the case of ACCIONA Energy) in line with the commitments made.

INCOME STATEMENT

(MILLIONS OF EUROS)	FY 2022	FY 2021	VAR.(%)
Sales	11,195	8,104	38.1%
EBITDA	2,068	1,483	39.4%
bai	869	575	51.1%
Net attributable profit	441	332	32.7%

INVESTMENT BALANCE SHEET

(MILLIONS OF EUROS)	31-DEC-22	31-DEC-21	VAR.(%)
Attributable Net Worth	4,884	4,312	13.3%
Net financial debt (excluding IFRS16)	4,742	3,847	23.3%
net financial debt	5,253	4,344	20.9%
NFD/EBITDA	2.54x	2.93x	-13.3%

(MILLIONS OF EUROS)	31-DEC-22	31-DEC-21	VAR.(%)
ordinary investment	1,943	1,320	47.3%
Net investment cashflow	2004	twenty	na

OPERATING MAGNITUDES

MAGNITUDES	31-DEC-22	31-DEC-21	VAR.(%)
Infrastructure portfolio (Millions of Euros)	22,020	18,096	21.7%
Average number of employees	45,892	41,664	10.1%

MAGNITUDES	31-DEC-22	31-DEC-21	VAR.(%)
Total capacity (MW)	11,826	11,245	5.2%
Consolidated capacity (MW)	9,884	9,169	7.8%
Assets under management of Bestinver (Millions of Euros)	5,117	7,046	-27.4%
Total production (GWh)	23,910	24,541	-2.6%
Consolidated production (GWh)	19,657	20,093	-2.2%

INCOME STATEMENT - ACCIONA ENERGY

(MILLIONS OF EUROS)	FY 2022	FY 2021	VAR. (€M)	VAR.(%)
Generation Spain	1,555	799	756	94.6%
International Generation	685	718	-33	-4.6%
Intragroup adjustments, trade and others	2,111	956	1,155	120.9%
turnover	4,351	2,472	1,878	76.0%
Generation Spain	1,272	573	698	121.9%
International Generation	436	542	-106	-19.5%
Intragroup adjustments, trade and others	-55	-29	-26	90.4%
EBITDA	1,653	1,086	567	52.2%
Generation margin (%)	76.2%	73.5%
bai	1,057	562	494	87.9%
Margin (%)	24.3%	22.7%
Net Attributable Result	759	363	396	109.0%

NET DEBT AND INVESTMENT-ACCIONA ENERGY

(MILLIONS OF EUROS)	31-DEC-22	31-DEC-21	VAR.(%)
net financial debt	2,021	1,989	1.6%
Net financial debt/EBITDA	1.22x	1.83x	-0.61x

(MILLIONS OF EUROS)	FY 2022	FY 2021	VAR.(%)
ordinary gross investment	1,640	614	167.2%
Net investment cashflow	1,279	819	56.2%

OPERATING FIGURES-ACCIONA ENERGÍA

MAGNITUDES	31-DEC-22	31-DEC-21	VAR.(%)
Total capacity (MW)	11,826	11,245	5.2%
Consolidated capacity (MW)	9,884	9,169	7.8%
Total production (GWh)	23,910	24,541	-2.6%
Consolidated production (GWh)	19,657	20,093	-2.2%
Sales volumes - Spain and Portugal (GWh)	9,144	7,254	26.1%
Average load factor (%)	27.0%	27.6%	-0.6pp
Contracted production (%)	78.4%	87.6%	-9.3pp
Average residual contracted life (years)(*)	7	8	na
Average age of assets -ex-hydro (years)	12	12	na
Average price (€/MWh)	114.0	75.5	51.0%
Generation EBITDA margin (%)	76.2%	73.5%	+2.7pp
Availability (%)	94.1%	96.5%	-2.3pp

MAGNITUDES	31-DEC-22	31-DEC-21	VAR.(%)
Average number of employees	2,354	1,762	33.6%