A year on, the financial crisis has affected the engineering and industrial construction sectors due, on the one hand, to the low level of private investment as a result of limited access to financing and on the other hand, to the cutbacks in the number of contracts in Public Administrations, thus penalising the launch of new public infrastructure projects.

In this economic climate, businesses from this sector have suffered major losses in sales, especially in the Spanish market, and only a few of the more international companies, including Inabensa, have been able to make up their income with projects overseas.

In 2010, Inabensa has continued with its commitment to increase its international presence by adding to its network of associates and permanent establishments in France, Portugal, Morocco, India, Costa Rica, Abu Dhabi, China and Saudi Arabia, new ones in Australia and Qatar.

It has been a year of reorganisation, focussing traditional businesses towards a more global outlook to maximise synergies and channel them towards the customer/country binomial. New activities have also been launched following the challenge of diversification and technological innovation.

As a result of our commitment to diversification, a business line in Industrial Plants has been created this year, with the aim of developing turnkey EPC projects in the energy, oil & gas, chemical and mining sectors.

As is the case each year, we have continued with our efforts to encourage and guarantee training for our employees, with more than 80,000 hours of training, paying special attention to training in occupational risk prevention and on-line language training with our new strategy of internationalisation.

We have also continued with our objective to become more “excellent” for our customers and suppliers. In this respect, in 2010, Inabensa was Recognised for Excellence 4 stars + EFQM, being the first company from its sector to receive this distinction. Furthermore, other awards and recognitions include the award for the most Sustainable Supplier, given by the “Achilles” supplier assessment platform.

In summary, it has been a slightly sluggish year in terms of sales, in which measures have been taken to rapidly return to the path of growth, with the conviction that from 2011, positive increases in Inabensa’s business will once again be visible.

INABENSAYour Partner in Industrial Engineering and Construction

Activity Report

Informe 2010 Ina 08 qrro INGLES.indd 1 20/6/11 10:15:00

InternationalMarket

Contracting (€M)

Human Resources: 2.560

Increase 124% in sales and 20% in Ebitda in the last decade

Electric Installations Hydroelectric and thermal power plants Renewable energy and cogeneration power plants Combined cycle power plants Substations and transformation centers Industrial installations Airport installations Integral installations in buildings and commercial centers Urbanizations and industrial estates Substations for railway traction LV and MV electricity distribution

Large HV Lines Transmission lines up to 800 kV In-vicinity works Live line works Line maintenance works

Mechanical Installations Hydroelectric, thermal and concentrated solar power plants Combined cycle power plants Cogeneration, biomass and renewable (solar) power plants Petrochemical plants Viaducts and metal bridges Gas and oil pipelines Gas distribution Conduits

Insulation/Refractory/Passive Fire Protection Materials Thermal and acoustic insulation Refractory material linings Fire protection

Maintenance and Instrumentation Chemical and gas production plants Nuclear and thermal power plants Military bases State bodies Singular buildings Programmable automation

Railways Railway electrification Overhead 3 kV dc line Overhead 25 kV ac (50 Hz) AVE (High-Speed Rail) line Communication systems Railway line maintenance

Communications Communication system engineering Stationary and mobile communication infrastructures Networks and radio systems

Manufacturing Motor control centers MV cabinets LV boards Relay racks Auxiliary services boards Electronic cards Control panels

Concessions Singular edification Hospitals Public transport (railways and metros) Energy conveyance Solar photovoltaic and wind power plants Energy efficiency

Industrial Plants Energy: generation from coal and fuel, desulfurization power plants Refining: auxiliary units for refineries Gas: regasification plants, compression plants, cleaning and storage

Energy from the Sea

Activity Report

// Electric Installations // Electric Transmission // Mechanical Installations // Insulation/Refractory/Passive Fire Protection Materials // Maintenance and Instrumentation // Railways // Communications // Manufacturing // Concessions // Industrial Plants // Energy from the sea //

Activ

ities

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Of the projects started, continued or finished by Inabensa in 2010 in the different sectors of activity, the following are of note:

Electrical installations

In the overhead line sector, the repowering of the Alzira-Valldigna (Valencia) line from 132 kV to 220 kV is being carried out on behalf of Iberinco, in addition to the repowering from 132 kV to 220 kV of the line between Palmar- Albajón (Murcia) for Iberdrola. In North Catalonia, Inabensa has won the contract for the remodelling of the existing electric lines to provide them with greater capacity for energy transportation. The 110 kV line joining the Sant Celoni substation to the Tordera (Barcelona) substation has been remodelled.

From among the comprehensive projects, the most notable include the installations of the Campus de la Salud hospital complex in Granada, the new management and office block for IDEA in Aerópolis (Seville) and the transport hub at Mairena del Aljarafe (Seville).

For Adif, the work for the services affected by the Madrid-Barcelona-French Border high speed line was carried out for the following subsections: La Torrasa-Sants, Hospitalet-La Torrasa, and Sants-Sagrera. This work consisted in the civil engineering work and the Low Voltage (LV) and Medium Voltage (MV) variants in the accesses to Barcelona.

n the railways sector, the Cabezón de la Sal (Cantabria) substation was completed for FEVE. Work continued on the execution of the framework contract for Iberdrola of the Corella (Navarra), La Serna (Cantabria), Mazarredo and Orcoyen (Navarra) substations.

In Madrid work on the remodelling of the stations on Metro lines 5 and 6 has been completed. The civil engineering project and the installation of the third frequency converter at the deep space monitoring station in Robledo de Chavela-Madrid for NASA (National Aeronautics and Space Administration) have also been carried out.

Work in the airport sector includes the renovation of the airfield at El Hierro Airport, the remodelling in LV of La Gomera airport and the installation of the new distribution panels and LV lines at El Hierro Airport.

Work has also been carried out on electrical maintenance installations, access controls, data transmissions and communications in fibre optic integral networks in the automobile sector, among others, at the PSA de Vigo, Mangualde and Gkn Driveline factories.

// Electric Installations // Electric Transmission // Mechanical Installations // Insulation/Refractory/Passive Fire Protection Materials // Maintenance and Instrumentation // Railways // Communications // Manufacturing // Concessions // Industrial Plants // Energy from the sea //

Informe 2010 Ina 08 qrro INGLES.indd 3 20/6/11 10:15:25

Electrical Transmission

With REE, we have worked on a number of projects for newly constructed electric lines at 400 kV, including the completion of the Arcos (Cádiz) to Roda (Seville) line, Aparecida-Tordesillas (Valladolid) E/S to Torrente substation (Valencia) and in Udalla substation (Cantabria) and a new section of the Soto-Penagos line in Asturias.

We should highlight participation in the extension and modification of the OPGW network in several of REE’s installations throughout Spain, as well as with other customers from the electricity sector, including with Iberdrola on the Cueza-Vilecha line, and with Unión Fenosa on the Coslada-Loeches (Madrid) line.

Also of note is our participation in the overhead and underground power transmission lines for various solar energy farms belonging to Abengoa Solar, including Helionergy I and II, and in the electricity supply for the Palmas Altas Campus on behalf of Abengoa.

Railways

We should underline the commissioning on behalf of Adif of the construction project for the overhead contact line installations and associated systems for the new rail access on the Madrid –Levante High Speed Line, in the Motilla del Palancar-Valencia and Motilla del Palancar-Albacete sections.

With respect to traction substations, we highlight the projects for the Jaen and Granada tramlines on behalf of Ferrocarriles

Andaluces, the maintenance of the Madrid-Valladolid and Olmedo-Medina high speed lines, and the substation at Cerro Negro (Madrid).

Furthermore, work continues on the GSM-R on the Barcelona local lines, phases I, II and III for Seitt/Adif.

Maintenance and Instrumentation

Notable projects in this area include the fuel storage stations for CLH in Barcelona, Alcázar de San Juan (Ciudad Real), Albuixech (Valencia) and Torrejón (Madrid). The Lubrisur plant belonging to Cepsa San Roque (Cadiz), the control system at Candelaria Thermal Power Plant (Tenerife), the electrical and instrumentation

assembly of the solar field based on cylinder-parabolic technology and power island at the Solnova 3 and 4 thermoelectric plant and in Helioenergy 1 and 2 for Abengoa Solar, Seville.

Inabensa has been awarded the contract for the execution of the new substations in Amoeiro (Galicia) at 220 kV and in Silleda (Pontevedra) at 400 kV.

Insulation/Refractory/Passive Fire Protection

In 2010, work has been completed on the insulation of the Solnova 3 and Solnova 4 plants belonging to the Solucar solar platform, the Sulphur Block plant in the ACPDM project, and enlargement of the Cepsa refinery in Huelva.

In the area of fire protection, we have been contracted for the supply and assembly of the Técnicas Reunidas project at the Galp plant in Sines (Portugal), and we have continued to supply material for different applicators of fire retardant solutions in construction and industry.

Mechanical Installations

In the solar energy sector, work is being carried out at the 50 MW Helioenergy 1 and 2 solar plants in Écija (Seville) on the prefabrication of cylinder-parabolic modules and the corresponding absorbent tubes, together with the supply, manufacture and assembly of the corresponding piping and equipment for the entire HTF system and power island. A number of mechanical installations are being carried out for the new solar plants, Solacor 1 and 2 in El Carpio (Cordoba).

Communications

Work continues on projects with leading technology firms including Huawei and Ericsson. As a result of work with the first of these, we draw your attention to the naming of Inabensa as

Electrical TransmissionElectrical Transmission

Mechanical InstallationsMechanical Installations

CommunicationsCommunications

Activity Report

// Electric Installations // Electric Transmission // Mechanical Installations // Insulation/Refractory/Passive Fire Protection Materials // Maintenance and Instrumentation // Railways // Communications // Manufacturing // Concessions // Industrial Plants // Energy from the sea //

Informe 2010 Ina 08 qrro INGLES.indd 4 20/6/11 10:15:34

“Outstanding Technologies Partner”, in recognition of our development, capacity and technological co-operation and receipt of the “European Partner Award”, consolidating Inabensa as one of the leading partners of Huawei in Europe. Furthermore, we are working with Ericsson at the switching centres for Orange and with NSN we are carrying out work for the operators, Orange and Telefónica.

Concessions

We have continued with management of the Costa del Sol Hospital Car Park, a service which coincides with the completion of the construction of the centre and which is linked to the existing operating concessions including the Hospital de Aranjuez and the Olot, Cerdañola and Santa Coloma Courts, in Catalonia.

In the area of photovoltaic energy, we have undertaken projects for rooftop plants, and the extension of work at the Expo Zaragoza, the solar energy plant at San Roque municipal swimming pool (Cadiz) and at the Almanzora desalination plant (Almería).

With respect to energy efficiency, work has started on a project to reduce the energy consumption of the Eucomsa plant in Utrera, with the migration of fuel to natural gas.

Manufacturing

This year, for the energy sector, we have manufactured auxiliary service panels, protection

relay racks and centralisation boxes, remote CCS, front-end and mini ULCs for REE.

In the traffic and transport sectors, we have manufactured track signalling and control cabinets, and ticket dispensing machines and traffic controllers for the Jaen tram. We have also manufactured the equipment and associated electronics for the introduction of contactless technology. In the gas and petrochemical sector, we have supplied several LV distribution panels and 6/12 kV and 30/36 kV MV cabinets to Enagas, Repsol Química, Repsol Petróleo, Fluor and Initec.

In the solar energy sector, delivery of different LV and MV equipment has been completed for the Helioenergy power stations, in addition to the collector control boxes, and the associated control electronics.

In the defence sector, several prototypes and control electronics have been manufactured for 122 Pizarro II vehicles for GDSBS. In the aerospatial sector, satellite test benches have been manufactured on earth for Crisa- EADS-Astrium.

International References

On the HV Line sector, work continues in Central America on the Siepac project, involving four countries (Nicaragua, Panamá, Costa Rica and Guatemala).

With respect to manufacturing for the international market, the supply of turbine and gas generator containers for India, Greece, Iraq, Portugal, Angola, etc. was of note.

In the traffic sector, urban traffic regulators have been manufactured for Telvent in Morocco, Mexico and China. In the environmental sector, several SCADA control units were delivered to Telvent Environment, for projects in Libya.

In the rail sector, Inabensa’s participation in the consortium of Spanish companies bidding for the construction of the high speed railway between Mecca and Medina (Saudi Arabia) was particularly significant.

ConcessionsConcessions

ManufacturingManufacturing

International ReferencesInternational References

// Electric Installations // Electric Transmission // Mechanical Installations // Insulation/Refractory/Passive Fire Protection Materials // Maintenance and Instrumentation // Railways // Communications // Manufacturing // Concessions // Industrial Plants // Energy from the sea //

Informe 2010 Ina 08 qrro INGLES.indd 5 20/6/11 10:15:40

In the International Concessions section, work has continued on the construction of the Centro Cultural Mexiquense (Mexican Cultural Centre) in Texcoco, expected to be completed in mid 2011.

The Department of Thermal and Acoustic Protection carried out the complete insulation of the ISCC Ain Beni Mathar plant in Morocco and the supply of materials for the Hassi R’Mel plant in Algeria.

Inabensa Maroc

Inabensa Maroc has continued working on the construction of GSM sites for the second and third leading telephony operators in the country, Meditel and Wana, and has included the latter as a customer for laying fibre optic cables, as they have already done for the former.

In the energy sector, a new customer, Acería Ynna Steel, has been added to the customers for work on the HVL, already underway for Autopistas de Marruecos (ADM).

Inabensa Bharat

In India, work continued with the construction of the two 400 km sections of the 765 kV direct current line in Biswanath Chariyali-Agra. Landmarks of note include the contracting of the 132 kV Dumre-Damauli line and the laying of the second circuit of the 132 kV Middle Marsyangdi-Marsyangdi line for NEA in Nepal.

Inabensa Tianjin

With respect to the subsidiary in China, the consolidation of the manufacturing activity is of note, as work has been taken on for different customers and countries, together with the diversification of products including: local traffic control regulators, ticketing, LED lighting, motor control centres and modular equipment for the control of gas turbines.

Inabensa France

Work continued on the engineering project for the customer RTE EDF Transport. Of note are the projects completed and currently underway on the 400 kV Coulange-Pivoz Cordier lines (RTE TERAA region) and La Gaudière–Rueyres (RTE TESO region).

With respect to work on the Overhead High Voltage Transmission Lines, of note was the participation in the 400 kV overhead Villarodin-Venaus line, linking France and Italy.

Inabensa Abu Dhabi

Work on the definition of the layout and design of supports, topographical work, the launch of floor plans and cross-sections and the study of soils have been carried out for the construction of the 132 kV, Fujairah-Tayween-Dibba line. Furthermore, work has progressed on the opening of tracks to permit the construction of the line in this complicated terrain.

In the substations division, work has been completed on the energisation of the ten new 33/11 kV substations for ADDC.

Activity Report

// Electric Installations // Electric Transmission // Mechanical Installations // Insulation/Refractory/Passive Fire Protection Materials // Maintenance and Instrumentation // Railways // Communications // Manufacturing // Concessions // Industrial Plants // Energy from the sea //

Informe 2010 Ina 08 qrro INGLES.indd 6 20/6/11 10:15:46

Inabensa Portugal

The Portuguese subsidiary has started work on the 150 kV Riba de Ave-Oleiros High Voltage Line for REN (Rede Eléctrica Nacional).

Inabensa Saudi Arabia

Construction has commenced of the 132 kV HVL in Qurayyat for the SEC (Saudi Electricity Company). Furthermore, the substations in Jeddah and Riyadh are being run using GIS (Gas Insulated Substations) technology.

Inabensa R&D

In 2010, the R&D department at Inabensa continued to develop projects and initiatives for the growth of the company in future new business. These include energy efficiency, the capture and reuse of CO2, marine energies and the launch of a new line of research into electric vehicles.

The execution of projects such as Perseo, for energy saving measures should be highlighted. Regarding the reduction of CO2 emissions, work focussed on the AvantO2/Nasa-OTM and Wollastonita projects. Research into marine energies has involved the elaboration of a map of the currently existing technologies, and initial agreements have been made with leading technology companies for the development of this line of business.

The Communication Division has strengthened their activities in the ICT sector, with the Cenit project, “Inredis: Interfaces for relations between the environment and disabled persons”.

Quality, Sustainability and Occupational Risk Prevention

Instalaciones Inabensa has a firm and clear commitment to quality and environmental sustainability. This is the reason it has received a number of prizes and awards including the Recognition for Excellence 4 star + EFQM and the

Achilles award for the most sustainable supplier. Certification of the R&D&I management system has been completed this year, in accordance with the UNE 166002 standard, and comes in addition to the previously available certifications: ISO 9001, ISO 14001, Pecal 2120, ISO 17020 and OHSAS 18001.

In the framework of corporate and social responsibility, during 2010 Inabensa has developed and introduced a system of occupational social responsibility in accordance with the SA 8000 standard, and has continued with the integration of the environmental performance indicators, following the criteria of the Global Reporting Initiative (GRI), a report of international reference. These actions come in addition to the consolidation of the system for the inventory of greenhouse gases, in effect since 2008, and expected to be certified in 2011 under the ISO 14064 standard, which guarantees the accounting and verification of emissions.

For the first time, Inabensa took part in the Carbon Disclosure Project (CDP), which groups together leading companies on a global level committed to the fight against climate change.

To develop and implement the ORP management system, several technical instructions have been prepared for the information and training of employees and the awareness of risks in the course of their work. Inabensa’s essential premise is to continue to reduce the rate and severity of accidents at work.

Inabensa R&DInabensa R&D

// Electric Installations // Electric Transmission // Mechanical Installations // Insulation/Refractory/Passive Fire Protection Materials // Maintenance and Instrumentation // Railways // Communications // Manufacturing // Concessions // Industrial Plants // Energy from the sea //

Informe 2010 Ina 08 qrro INGLES.indd 7 20/6/11 10:15:51

INABENSACorporate Offices

Energía Solar 1, Edif. C (Palmas Altas) 41014 Seville - Spain T. +34 95 493 60 00 F. +34 95 493 60 05

CIL Torrecuellar Ctra.de la Esclusa s/n. Polg. Torrecuéllar 41011 Seville - Spain

T. +34 95 498 35 00 F. +34 95 493 60 15

C.P. Alcala de Henares Ctra. M-300, Km 28,6 - 28802 Alcalá de Henares (Madrid) - Spain

T. +34 91 888 07 36 F. +34 91 882 73 41

Maintenance, Electricity and Instrumentation Energía Solar 1, Edif. C (Palmas Altas) 41014 Seville - Spain

T. +34 95 493 60 00 F. +34 95 493 60 12

South Regional Office Energía Solar 1, Edif. C (Palmas Altas) 41014 Seville - Spain

T. +34 95 493 60 00 F. +34 95 493 60 12

Central Regional Office Marqués de Encinares, 5 - 28029 Madrid - Spain

T. +34 91 315 01 43 F. +34 91 315 87 18

Galicia Regional Office Bajada a la Gándara, Nave 8 - 36330 Corujo (Vigo) - Spain

T. +34 98 629 94 51 F. +34 98 629 80 14

Canary Island Regional Office Castillo, 7 - 35001 Las Palmas - Spain

T. +34 92 832 31 15 F. +34 92 831 66 06

Railways Marqués de Encinares, 5 - 28029 Madrid - Spain

T. +34 91 315 01 43 F. +34 91 315 32 89

Mechanical Assemblies Energía Solar 1, Edif. C (Palmas Altas) 41014 Seville - Spain

T. +34 95 493 60 00 F. +34 95 493 60 12

Protisa Los Vascos, 17 - 28040 Madrid - Spain

T. +34 91 129 24 47 F. +34 91 129 26 61

Electric TransmissionEnergía Solar 1, Edif. C (Palmas Altas) 41014 Seville - Spain

T. +34 95 493 60 00 F. +34 95 493 60 12

Industrial PlantsEnergía Solar 1, Edif. C (Palmas Altas) 41014 Seville - Spain

T. +34 95 493 60 00 F. +34 95 493 60 12

Energy from the SeaCtra.de la Esclusa s/n. Polg. Torrecuéllar 41011 Seville - Spain

T. +34 95 498 35 00 F. +34 95 493 60 15

Levant Regional Office Polg. El Molí Partida El Testar, s/n - 46980 Paterna (Valencia) - Spain

T. + 34 96 360 28 00 F. + 34 96 361 86 08

Catalonia/Aragon Regional Office Perú, 214-226 - 08020 Barcelona - Spain

T. +34 93 303 45 40 F. +34 93 307 00 94

North Regional Office Santa Ana, 26.Pol. Barrondo 48450 Etxebarri (Biscay) - Spain

T. +34 94 440 05 00 F. +34 94 440 02 52

Communications Los Vascos, 17 - 28040 Madrid - Spain

T. +34 91 129 24 47 F. +34 91 129 26 61

Concessions Ctra. de la Esclusa s/n. Polg. Torrecuéllar - 41011 Seville - Spain

T. +34 95 498 35 00 F. +34 95 493 62 84

Inabensa Maroc 179, Av. Moulay Hassan I - 1º étage - 20000 Casablanca - Morocco

T. +212-22 22 50 66 F. +212-22 22 97 36

Inabensa Bharat Flat no 902, 9th Floor Eros Corporate Tower. Nehru Place 10019 New Delhi -

India T. +91-11 416 081 68 F. +91-11 465 424 84

Inabensa France GVio Parc de la Bastide Blanche, Batiment D2 -13127 Vitrolles - France

T. +33 442 46 99 50 F. +33 442 89 01 35

Inabensa Portugal Rua Professor Henrique de Barros, 4. Edificio Sagres 6º C 2685/338 Prior Velho -

Lisbon - Portugal T. +351 219 41 11 82 F. +351 219 41 11 69

Inabensa Tianjin Workshop D3, HongTai Industrial Garden, No. 78

Taihua Road - 300457 Teda TianJin- PR ChinaT. +862 266 29 81 76 F. +862 266 29 83 38

Inabensa Costa Rica 2ª Avenida de los Yoses. 100m. Sur del Automercado de los Yoses.

Casa esquinera -1508-1000. San José de Costa Rica - Costa Rica T. +506 2234 86 14 F. +506 2225 08 93

Inabensa Libya Gurji road nearby Hai Al-Andalus souk, above Al-Gumhuria Bank 1st floor, flat

nº 3 - Tripoli - Libya T. +218 214 77 92 83 F. +218 214 77 45 55

Inabensa Abu Dhabi Al Mussafah Business Complex. Al Fahim Building (Mercedes-Benz Showroom)

Office 421. Mussafah IndustrialAbu Dhabi – United Arab Emirates

T. +971 263 51 010 F. +971 263 51 015

Inabensa Saudi Arabia King fahed airport road - Al faysalia area. Street 71. P.O.Box 1083

Dammam 31431 (Saudi Arabia) T. +34 95 493 61 11 F. +34 95 493 60 16

Inabensa AustraliaLevel 9, 440 Collins Street - VIC 3000 Melbourne (Australia)

T. +61 396 071 331 F. +61 396 071 332

Inabensa TurkeyTuran Günes Bulvan,No100/806550 Çankaya/Ankara (Turkey)

T. +90 312 442 3008 F. +90 312 442 3028

Inabensa QatarAl Fardan Tower (Regus) 8th floor. Off. Nº 948 P.O. Box 31316 West Bay, Doha

T. +974 441 01 655 F. +974 441 01 500

Addresses

www.inabensa.com

Informe 2010 Ina 08 qrro INGLES.indd 8 20/6/11 10:15:54