Integrated Annual Report 2020

Results

In 2018 the strategy Business as Unusual was launched, aimed at finding solutions to tackle the challenges of a more sustainable future. Every country that committed to meet the Sustainable Development Goals in 2030 demands this sort of solutions. Moreover, ACCIONA assists in funneling the necessary funding to carry out these projects.

2020: Resilient and ready to grow

ACCIONA’s active management during the pandemic has enabled us to overcome the hardest COVID-19 stage, validating our Business as Unusual model and strengthening our growth potential.

  • Business resilience with a 17.37% EBITDA in a falling demand and electricity price decline environment.
  • In FY20 sales in water solutions and licenses went up minimizing the pandemic economic effects in other areas.
  • Debt and investment concerted action kept the Debt/EBITDA ratio at 4.21x, very close to the 4x goal prevailing in pre-crisis times and below 4.5x10 set for 2020 due to the pandemic.
  • A 3.9€ per share dividend distribution even in times of crisis, displaying the resilience of the business model and the owned assets.
  • Financial strength to invest up to € 839 million, seizing market opportunities.
  • Due to market interest in ACCIONA’s assets, € 318 million in divestitures.

SIGNIFICANT INDICATORS EVOLUTION

2018 2019 2020
Financial Performance
Sales (million €) 7,510 7,191 6,472
EBITDA (million €) 1,245 1,356 1,124
CAPEX gross (million €) 643 1,270 1,024
Nonfinancial performance
Personnel at year end 38,544 39,699 38,355
Female executives (% of total executives) 13.99 15.25 16.36
Average yearly training hours per employee 18.47 14.52 10.64
Number of fatal accidents (employees and subcontractors) 3 0 0
Accident rate: overall frequency index (employees and subcontractors) 2.4 2.5 1.9
Generated emissions (million tons of CO2) 0.18 0.17 0.13
Avoided emissions (million tons of CO2) 14.7 13.1 13.2
Sales in line with European taxonomy of low carbon activities (%) NA 58 47
CAPEX in line with European taxonomy of low carbon activities (%) NA 93 85
ACCIONA’s water consumption (hm3) 4.29 3.66 4.68
Treated water (hm3) 790 1,030 923
Non-recoverable waste (million tons) 4.1 0.9 1.5
Total innovation (million €) 225.4 230.4 237.0
Innovative intensity (% of total RDI/sales) 3.0 3.2 3.7
Local suppliers over the total (%) 87 91 94
Turnover certified with ISO 9001 (%) 91 87 84
Global customer satisfaction index 97 97 99
Projects with Social Impact Management (n.) 98 124 127
Social contribution (million €) 13.7 12.5 11.7

INVESTMENT EVOLUTION

Managing investment and debt during the pandemic has been one significant aspect in our resilience strategy. The company’s leadership and planning in the second and third quarter were crucial to keep investment levels in long term solutions, while divesting in projects to obtain the necessary cash to maintain our financial robustness at any time.

Investment by division FY18 FY18(€m) FY19(€m) FY20(€m) % Var. 2020 vs 2019
Energy 554 608 607 -0.1
New energy capability 554 509 595 16.9 %
Nordex capital increase 0 99 12 -87.9 %
Infrastructures 146 392 205 -47.6 %
Construction 22 45 79 77.4 %
Licenses 4 288 72 -75.1 %
Water 59 15 10 -32.7 %
Services 61 44 44 0.4 %
Other activities 28 35 17 -52.1 %
Ordinary net investment 726 1,034 829 -19.9 %
Real estate 100 272 14 -94.7 %
Divestitures -1,420 -66 -318 381.6 %
Net investment 1,023 1,241 526 -57.6 %

DEBT AND LIABILITIES EVOLUTION

Active investment management and cash from divestitures went a long way to keep the financial debt/EBITDA ratio at 4.21, exceeding the 4x goal set prior to the crisis years and a widespread lockout in countries where ACCIONA also operates. In such a pandemic context, we have been able to curb the net financial debt at 4,733 million euros.

EVOLUCIÓN DE LA DEUDA Y LAS OBLIGACIONES

Breakdown by type of debt (million euros)

Evolución de la deuda deta e interés netos (millones de euros)

Net debt and net interest evolution (million euros)

Due to investment and divestiture handling, net debt was curbed 14%.

The sustainable financial framework has enabled ACCIONA to improve its access to the increasing availability of funds requiring a positive impact on the planet, thus being able to diversify its funding sources and achieving an efficient cost of capital.

Previsión de las obligaciones de deuda por año y tipo, junto con la liquides disponible (millones de euros)

Yearly liability forecast breakdown along with available liquidity (million euros).