Integrated Annual Report 2020

Business as Unusual

REIMAGINING THE FUTURE
INVESTING IN THE PLANET

For the third consecutive year, ACCIONA shows the value of its Business as Unusual model. Launched in 2018, this strategy allows us to face global challenges in a comprehensive way, with a positive local impact and ensuring a presence in solid markets or in emerging markets with a long-term perspective.

The main challenge of 2020 is COVID-19 and its consequences, both in the economy and in reaching Sustainable Development Goals.

To ensure that economies stay afloat and that the countries most striken by the pandemic perceive signs of improvement, it is essential than we avoid the mistakes of the past.

Traditional business has proven ineffective in protecting the most vulnerable

The coronavirus crisis has confirmed the importance of having access to safe water and a sanitation network or facilities that allow adequate hand washing.

It has put the spotlight on access to other types of resources such as energy, especially electricity, critical in the healthcare sector, where its absence or the intermittent shutdowns of a poor-quality network can endanger the lives of many people.

Education and food should not be forgotten either since confinements or the increase in poverty have complicated the fulfillment of these basic rights.

72% of the goals set by the SDGs are linked to infrastructure development

BUSINESS AS UNUSUAL, ACCIONA'S SOLUTION

The solution to this challenge is to go for a regenerative economy that enhances economic growth and sustainable development, to meet the needs of the present without compromising future generations.

Ensuring the balance between:

  • The progress of the economy
  • Caring for the environment
  • Social welfare
  • Meeting the SDGs

Keys in generating business for ACCIONA

  • Increase in the supply of capital that is looking for a positive impact.
  • ACCIONA offers a sustainable financing framework aligned with the European taxonomy.
  • Easy access to sustainable financing.
  • ACCIONA has identified a range of comprehensive solutions.
  • The solutions are of high positive impact.
  • Technical excellence to respond to challenges.
  • Improved positioning when it comes to getting projects.
  • Relationships created with public institutions and governments that need to advance towards achieving the Sustainable Development Goals.
  • Emergence of new business models that meet the Sustainable Development Goals.
  • New impact indicators, 169 subgoals related to the SDGs.
  • The improvement of the quality of life as an ultimate need of 21st century projects.

2018 – 2020: 3 YEARS OF GOALS ACCOMPLISHED

Since the development of our new Business as Unusual model, financial targets have been met year after year. The roadmap envisioned to position ourselves as a company in a new sector has produced the following results

INDICATORS

Financial

EBITDA growth compared to the previous year

2018

2019

2020

EBITDA decreased in 2020 due to the impact of the pandemic

Increasing or maintaining the group's net margins (Profit / EBITDA)

2018

2019

2020

Constant improvement of business productivity

Increasing and stable dividend distribution

2018

2019

2020

FY19 dividend was adjusted due to the impact of the pandemic

Similar investment or increase in gross CAPEX compared to the previous year

2018

2019

2020

Disinvestments have been a strategic part in the management of FY20

Debt/EBITDA ratio below 4x

2018

2019

2020

In FY 2020, due to the pandemic, the target was adjusted * to contain the ratio below 4.5x

Target return on investments made above the WACC + 200-300 bp

2018

-

2019

-

2020

-

Target to be met in the coming years

Non financial

Increase in installed capacity for renewable electricity production

2018

2019

2020

Achieved target of exceeding 10,500 MW to reach 10,694 MW

Lower accident rate

2018

2019

2020

34% reduction, against a target of 15%.

Alignment of CAPEX, EBITDA and Sales with the taxonomy

2018

N.A.

2019

2020

In FY2020 85% of CAPEX is achieved (target: 90%) and 84% of EBITDA (target: 80%). In 2019, the alignment exceeded these goals

Increase the net percentage of women in management and pre-management positions

2018

2019

2020

The percentage is increasing to 20.7%, but the goal of 23% has not yet been met

Reduction of greenhouse gas emissions

2018

2019

2020

Reduction by 38% compared to 2017, exceeding the science-based target

INNOVATE TO IMPROVE PRODUCTIVITY

ACCIONA has been reinforcing its sustainability strategy since 2005. Since 2018, the company's alignment with the SDGs is full. This innovative approach to working on infrastructures while at the same time reaching the SDGs by 2030 allows ACCIONA to channel the necessary investment capital to accelerate this goal.

Solutions are built with a regenerative approach, contributing to increase the planet's capacity and the multiplying effect of infrastructures. This new way of understanding and operating in the sector allows the resources and created value to be distributed more effectively to the different stakeholders.