3 - Abengoa Solar
Transcripción
3 - Abengoa Solar
3 Annual Report 2010: 1. External Audit Report.....................................................................Page2 2. 2010 Consolidated Annual Accounts.............................................Page5 3. Consolidated Management Report............................................ Page208 4. Auditor’s PCAOB Report on Internal Control over Financial Reporting................................................................... Page229 1 3 1. External Audit Report 2 3 2. 2010 Consolidated Annual Accounts a) Consolidated Statement of Financial Position.......................... Page 6 b) Consolidated Income Statement ............................................... Page 9 c) Consolidated Statement of Comprehensive Income .............. Page 11 d) Consolidated Statement of Changes in Equity ...................... Page 13 e) Consolidated Cash Flows Statement ...................................... Page 15 f) Notes to the Consolidated Annual Account........................... .Page 17 g) Appendices I to X.................................................................. Page 172 4 3 a) Consolidated Statements of Financial Position 5 3 Consolidated Statement of Financial Position of Abengoa Solar at 31/12/2010 and 31/12/09 - Figures in thousands of euros - Assets Note (1) 31/12/2010 31/12/2009 A. Non-current Assets I. Other intangible assets Provisions and depreciation Intangible Assets II. Property, plant and equipment Provisions and depreciation Property, plant and equipment Intangible assets Provisions and depreciation Property, plant and equipment Provisions and depreciation III. Fixed Assets in Projects 4 90.584 (53.822) 36.762 69.583 (44.055) 25.528 5 181.898 (72.993) 108.905 96.905 (62.871) 34.034 6 53.218 (7.521) 1.589.608 (30.738) 1.604.567 53.355 (5.528) 925.079 (17.842) 955.064 Investments in associates Financial assets available for sale Financial accounts receivables Derivative financial instruments IV. Financial Investments 7 10 12 11 6.615 0 138.070 31.023 175.708 4.829 172 12.775 13.763 31.539 V. Deferred Tax Assets 20 60.981 93.497 1.986.923 1.139.662 8 26.804 32.149 12 69.994 107.112 177.106 40.151 105.936 146.087 To Total Non-current Assets C. Current Assets I. Inventories II. Trade receivables for sales and services Credits and other receivables Clients and Other Receivables Financial assets available for sale Financial accounts receivables Derivative financial instruments III. Financial Investments 10 12 11 329.610 3.263 332.873 52 179.336 194 179.582 IV. Cash and Cash Equivalents 13 220.425 79.840 757.208 437.658 2.744.131 1.577.320 Total Current Assets Total Assets (1) Notes 1 to 35 and Appendices I to X are an integral part of these Consolidated Financial Statements at 31 December, 2010. 6 3 Consolidated Statement of Financial Position of Abengoa Solar at 31/12/2010 and 31/12/09 - Figures in thousands of euros - Shareholders' Equity and Liabilities Notes (1) 31/12/2010 A. Capital and Reserves 31/12/2009 (22.752) 2.462 I. Share Capital 21 12.060 12.060 II. Parent company reserves 22 (34.006) 13.175 III. Other reserves 23 (40.044) (32.363) At fully or proportionally consolidated companies IV. Translation differences 24 (4.934) (4.934) (10.366) (10.366) V. Other equity instruments 21 93.117 101.644 VI. Retained earnings 25 (48.945) (81.688) B. Non-controlling interest 26 50.874 195 28.122 2.657 14 1.192.823 821.406 707 211.359 12.025 28 224.119 Total Equity C. Non-current Liabilities I. Long-term non-recourse Financing (Project Finance) II. Bank loans Loans with related companies Other loans and borrowings Finance lease liabilities Corporate Financing 15 12.175 532.129 45.642 32 589.978 III. Grants and Other Liabilities 16 9.844 7.958 IV. Provisions for Other Liabllities and Expenses 18 10.764 2.397 V. Deriviative Financial Instruments 11 58.055 41.873 VI. Deferred Tax Liabilities 20 7.878 10.451 VII. Employee Benefits 35 3.640 54 1.872.982 1.108.258 14 140.510 64.231 15 1.310 16.883 14.909 16 33.118 909 18.127 4.130 14 23.180 III. Trade Payables and Other current liabilities 17 654.293 374.613 IV. Current Tax Liabilities 20 12.375 4.381 V. Derivative Financial Instruments 11 2.731 0 843.027 466.405 2.744.131 1.577.320 Total Non-current Liabilities E. Current Liabilities I. Short-term non-recourse Financing (Project Finance) II. Bank loans Loans with related companies Other loans and borrowings Finance lease liabilities Corporate Financing Total Current Liabilities Total Equity and Liabilities (1) Notes 1 to 35 and Appendices I to X are an integral part of these Consolidated Financial Statements at 31 December, 2010. 7 3 b) Consolidated Income Statement 8 3 Consolidated Income Statement of Abengoa Solar for the years ended December 31, 2010 and 2009 - Figures in thousands of euros - Nota (1) Revenue Change in inventories of finished goods and work in progress Other operating income Raw materials and consumables used Employee benefit expenses Depreciation, amortisation and impairment Research & Development costs and impairment charges Other operating expenses I. 27 28 29 30 30 Operating Profit Financial income Financial expenses Net exchange differences Other net finance income/expenses II. 31 31 32 Finanace cost net III. Share of Profits of Associates 7 IV. Profit/(Loss) before Income Tax Expense Corporate Income Tax 20 V. Profit/(loss) for the year from Continuing Operations Profit attributable to non-controlling interests from continuing operations 26 VII. Profit/(Loss) for the year attributable to Parent Company Number of ordinary shares outstanding (thousands) VII. Earnings per share from continuing operations atributable to the equity holders of company during the year (€ per share) 33 31/12/2010 31/12/2009 168.149 (1.922) 45.290 (79.647) (32.058) (41.291) (8.791) (20.815) 115.924 (15.235) 38.629 (80.087) (22.343) (84.507) (11.661) (3.654) 28.915 (62.934) 9.333 (52.639) (610) 10.839 2.002 (31.680) (40) (13.583) (33.077) (43.301) 487 189 (3.675) (106.046) (9.074) 45.393 (12.749) (60.653) 1.890 459 (10.859) (60.194) 9.765 989 (1,1) (60,9) (1) Notes 1 to 35 and Appendices I to X are an integral part of these Consolidated Financial Statements at 31 December, 2010. 9 3 c) Consolidated Statement of Comprehensive Income 10 3 Consolidated Statement of Comprehensive Income of Abengoa Solar for the years ended December 31, 2010 and 2009. - Figures in thousands of euros - Notes (1) 31/12/2010 31/12/2009 (12.749) (60.653) 23 (16.036) 5.432 4.825 (5.779) 1.639 (2.955) (492) (1.808) 23 5.042 (1.512) 3.530 1.619 1.030 (795) 1.854 (2.249) 46 (14.998) (60.607) 1.890 459 (13.108) (60.148) A. Consolidated Profit/Loss) after Tax I. Fair Value of Cash-Flow Hedges Currency Translation Differences Tax effect Net Income/(Expenses) 24 Fair Value of Availabel-for-sale Financial Assests Fair Value of Cash-Flow Hedges Tax effect II. Transfers to Income Statement B. Other Comprehensive Income C. Total Comprehensive Income (A + B) Total Comprehensive Income Attributable to Non-controlling Interests D. Total Comprehensive Income attributable to Parent Company 26 (1) Notes 1 to 35 and Appendices I to X are an integral part of these Consolidated Financial Statements at 31 December, 2010. 11 3 d) Consolidated Statement of Changes in Equity 12 3 Consolidated Statement of Changes in Equity of Abengoa Solar for the years ended December 31, 2010 and 2009. - Figures in thousands of euros - Attributable to the Owners of the Company Share Capital Noncontrolling Interest Total Total Equity (Notes 21,22 & 23) (32.691) (Note 24) (7.411) (Note 25) (7.333) (35.375) - - - (60.194) (60.194) (459) (60.653) - 1.619 2.669 (1.287) (2.955) - - 1.619 2.669 (2.955) (1.287) - 1.619 2.669 (2.955) (1.287) II. Other Comprehensive Income - 3.001 (2.955) - 46 - 46 III. Total Comprehensive Income (I + II) - 3.001 (2.955) (60.194) (60.148) (459) (60.607) Distribution of 2008 profit Convertible loan IV. Transactions with Owners - 10.502 101.644 112.146 - (10.502) (10.502) 101.644 101.644 - 101.644 101.644 V. Other Movements of Equity - - - (3.659) (3.659) (2.316) (5.975) A. Balance at 31 December, 2009 I. Consolidated Profit/(Loss) after Tax Fair Value of Financial Assest Available-for-sale Fair Value of Cash-flow Hedges Currency Tranlation Differences Tax effect (Note 21) 12.060 Accumulated Currency Translation Retained Earnings Difference Reserves & Other Reserves (Note 26) 2.970 (32.405) B.Balance at 31 December, 2009 12.060 82.456 (10.366) (81.688) 2.462 195 2.657 C. Balance at 1 January, 2010 12.060 82.456 (10.366) (81.688) 2.462 195 2.657 I. Profit/ (loss) before Income tax expenses - - - (10.859) (10.859) (1.890) (12.749) Fair Value of Cash-flow Hedges Convertible loan Tax effect - (10.994) 3.313 5.432 - - - (10.994) 5.432 3.313 II. Other Eomprehensive Income - (7.681) 5.432 - (10.994) 5.432 3.313 (2.249) - (2.249) III. Total Comprehensive Income (I + II) - (7.681) 5.432 (10.859) (14.998) - (47.181) (8.527) (55.708) - 47.181 47.181 - (8.527) (8.527) V. Other Movements of Equity - - - (3.579) (13.108) (8.527) (8.527) (3.579) (1.890) Distribution of 2009 profit Convertible loan IV. Transactions with Owners 52.569 48.990 (4.934) (48.945) (22.752) 50.874 28.122 D.Balance at 31 December, 2010 12.060 19.067 13 3 e) Consolidated Cash Flow Statement 14 3 Consolidated Cash Flow Statement of Abengoa Solar for the years ended December 31, 2010 and 2009. - Figures in thousands of euros - Note (1) I. Consolidated after Tax Profit Non-monetary adjustments: Depreciation, amortisation, provisions and impairment charges Gain/loss on financial assets available for sale Finance income/expenses Share of loss/ (profit) from associates Income tax Foreign exchange losses/ (gains) and other non-monetary items 31/12/2010 31/12/2009 (12.749) (60.653) 41.291 33.077 (487) 9.074 - 84.507 (1.748) 43.181 (189) (45.393) 695 70.206 20.400 (2.976) (35.872) 159.411 (14.380) (14.194) (47.092) 38.351 19.038 III. Variations in Working Capital 106.183 (3.897) Income tax received/ paid Interest received/ paid IV. Cash generated from Operations 14.257 (17.720) (3.463) (3.340) (31.050) (34.390) A. Net Cash Flows from Operating Activities 172.926 (17.887) (779.724) (21.540) (85.680) (339.204) (30.831) - (886.944) (370.035) 21.512 650 1.760 64 7.983 22.162 9.807 (864.782) (360.228) 505.987 (57.251) 339.783 (8.921) 50.057 309.421 (3.851) 26.307 101.644 - C. Net Cash Flows from Financing Activities 829.655 433.521 Net Increase/Decrease in Cash and Cash Equivalents 137.799 55.406 79.840 2.786 24.315 119 220.425 79.840 30 31 & 32 7 20 II. Cash generated by Operations Inventories Clients and other receivables Suppliers and other payable accounts Other current assets/liabilities Property, plant and equipment Intangible assets Acquisitions of subsidiary 5 & 6 4 & 6 I. Investments Group, multi-group and associated companies Property, plant and equipment Intangible assets Other assets/liabilities 5 & 6 4 & 6 II. Disposals B. Net Cash Flows from Investing Activities Income from loans and borrowings Repayment of loans and borrowings Income/repayments from corporate financing Other financing activities / convertible loan Contributions of non-controlling interests Cash or cash equivalents and bank overdrafts at beginning of year Translation differences cash or cash equivalent 13 Cash and Cash Equivalents at End of Year (1) Notes 1 to 35 and Appendices I to X are an integral part of these Consolidated Financial Statements at 31 December, 2010. 15 3 f) Notes to the Consolidated Annual Accounts 16 3 Contents Notes Note 1.- General Information and Activities 18 Note 2.- Summary of Key Accounting Policies 22 Note 3.- Accounting Estimates and Opinions 64 Note 4.- Intangible Assets. 69 Note 5.- Property, Plant and Equipment. 71 Note 6.- Fixed Assets in Projects 76 Note 7.- Investments in Associated Companies 82 Note 8.- Inventories 83 Note 9.- Financial Risk Management and Information on Financial Instruments 86 Note 10.- Financial Assets Available for Sale 94 Note 11.- Derivative Financial Instruments 95 Note 12.- Clients and Other Receivables Accounts 103 Note 13.- Cash and Cash Equivalents 106 Note 14.- Non-recourse Financing 107 Note 15.- Corporate Financing 112 Note 16.- Grants and Other Liabilities 115 Note 17.- Trade and Other Payables 116 Note 18.- Provisions and Contingent Liabilities 119 Note 19.- Third-Party Guarantees and Commitments 120 Note 20.- Tax Situation. 122 Note 21.- Share Capital 127 Note 22.- Parent Company Reserves 128 Note 23.- Other Reserves 130 Note 24.- Translation Differences 131 Note 25.- Retained Earnings 131 Note 26.- Non-controlling Interests 132 Note 27.- Revenue 135 Note 28.- Other Operating Income 135 Note 29.- Employee Benefit Expenses 136 Note 30.- Depreciation, Amortization, Impairment Charges and Other Operating Expenses 136 Note 31.- Financial Income and Expenses 141 Note 32.- Other Net Financial Income and Expenses 141 Note 33.- Earnings per Share 142 Note 34.- Financial Information by Segment 143 Note 35.- Other Information 147 17 3 Notes to the Consolidated Annual Accounts Note 1.- General Information and Activities 1.1. General Information Abengoa Solar, S.A. is the parent of a group of companies (hereinafter, Abengoa Solar or Group), which, at the 2010 year end, was formed by 313 companies: the parent company itself, 293 subsidiaries, 7 associated companies and 10 joint ventures. Likewise, Group companies were participating in 3 temporary joint ventures (UTEs). Additionally, Group companies held interests of less than 20% in other companies. Abengoa Solar, S.A., was incorporated in Spain on 18 December, 2006 under the name Solúcar Solar, S.A., which was changed to the present corporate name on 3 September, 2007. It is registered in the Seville Companies Register, Folio 1-9, Volume 4,568, Sheet No. SE-71,375, 2nd entry and holds tax identification code A-916809982. Until the 2009 year end, its registered office was in Seville, at Avenida de Buhaira, 2, On 25 January, 2010, the Board of Directors of Abengoa resolved to move the registered office within the municipal area of Seville and the company’s registered office was entered in the Companies Register as Campus Palmas Altas, Parcela ZE-33, Palmas Altas, 41012 Seville, with the resulting amendment of article 2 of the Bylaws. The controlling shareholder of Abengoa Solar is Abengoa, S.A. (a listed company), which holds 99.99% of the shares and is, in turn, a subsidiary of Inversión Corporativa, S.A. The consolidated annual financial statements of Inversión Corporativa, S.A are filed at the Companies Registry of Madrid, where its registered office is located. The balances and transactions that refer to related companies refer to those companies that, although they do not form part of the Abengoa Solar consolidated group, are consolidated with Abengoa, S.A. and Inversión Corporativa, S.A. These balances and transactions are not, therefore, eliminated in the consolidation process. The Board of Directors of Abengoa, S.A. met on 23 February, 2011 to formulate the consolidated annual financial statements of Abengoa, S.A., the Group parent, for 2010. Said financial statements are filed at the Seville Companies Registry. 18 3 According to its Bylaws, the corporate purpose of the company Abengoa Solar, S.A. is the organisation and exploitation of businesses and activities related to the promotion of the use of renewable energy sources or improvements in the energy efficiency of industrial processes in the fields of Solar Energy, Environment and Industry, including the research and development of applications, technologies and materials, the design, manufacture, construction, operation and maintenance of related installations, the import and marketing of these products or derivatives thereof, together with advisory and support services, including financial, economic, legal and business organisation services, control and tax auditing services, human resource services and information, commercial management, supply and risk management services. These Consolidated Annual Financial Statements were formulated by the Board of Directors of 10 March, 2011 and are expected to be approved by the Shareholders’ Meeting without any changes. All public documentation on Abengoa Solar can be consulted on our website, www.abengoasolar.com. 1.2. Activities Abengoa Solar develops and applies solar energy technologies to combat climate change and ensure sustainable development through its own thermosolar and photovoltaic technologies. For more than 20 years, Abengoa, S.A. has been investing in solar project research and development and subsequently created the Abengoa Solar business group, which engages in the promotion, construction and operation of electricity plants and solar installations and the development and marketing of the technologies necessary to do so (R&D). The activities of Abengoa Solar are based on the design, development, engineering supervision, construction and operation of electricity plants and solar energy installations. The Group is present in two principal markets: Spain and the United States, with important international expansion through its participation in the construction of plants in Algeria and Abu Dhabi. The Group is currently betting on entering other markets. Abengoa Solar has developed knowledge of different types of solar energy: 19 3 - In the thermosolar branch, the Group builds thermosolar plants using tower and paraboliccylinder technologies and solar-cycle hybrid combined plants for electricity generation, while, for personalized industrial installations, it uses parabolic-cylinder technology. - In the photovoltaic area, it constructs electricity plants with different configurations: fixed plants with tracking (on one or two axes) and photovoltaic concentration. In addition, the Group applies its technology in one-off projects, such as roofs and the integration into buildings. Moreover, the Group is involved in developing projects of its own and projects in collaboration with research institutes of recognized prestige worldwide. The Group works to develop more efficient solar technologies. In addition to the sales of solar energy generated by the plants it operates, the Group generates income through the sale of certain key manufactured components for solar energy generation using parabolic-cylinder and photovoltaic technology (for example, structure, mirrors, parabolic-cylinder technology receivers or photovoltaic panels). Promotion and Supervision of the Construction of Solar Energy Plants The Group handles the promotion, design, engineering supervision, construction and start-up of its solar plants and the construction of solar plants for third parties. The promotion process for solar energy plants involves primarily: seeking partners and/or investors, seeking financing, choosing a site, surface rights, obtaining solar resources, administrative processes and obtaining the relevant authorisations and connection to the grid. The construction of the plants is carried out by a builder, which is usually a related company, under a turnkey contract, at market price. On occasions, the Group participates in temporary joint ventures under turnkey contracts. Abengoa carries out a large part of the engineering work (research and development of the technology and supervision of the plant construction, together with the startup). The construction process of a parabolic-cylinder solar plant requires an approximate period of between 18 and 36 months, depending on the size of the plant and whether or not it is able store the solar energy. The construction process of a photovoltaic plant is generally shorter, approximately 6 months. 20 3 Operating and maintaining plants This activity includes the production and sale of electricity and the operation and maintenance of solar energy plants. Once the plants come into operation, they can begin to generate income by the sale of the energy produced. The production level and electricity price are two factors that have a direct effect on the amount of income generated by the plants. The mechanisms used to determine the electricity selling price vary in accordance with the legislation applicable to the plant location and include regimes based on regulated tariffs and those in which a tariff is fixed for each project. Once the plant is operational, the Group also supplies materials, tools and workers for plant maintenance work. Income from this business activity comes from the sale of energy. Development of new technologies (R&D) An important part of growth strategy is seeking, developing and innovating projects, which allows the Group to develop technologies that can be applied to the solar sector, while costs are reduced and solar technology is helped to come closer to conventional technologies in terms of costs. The Group’s development activities are carried out in the Excellence Centres in Spain and the United States, in addition to collaborating with leading-edge research centres worldwide, including universities and technological institutions. The following table provides a detailed summary of the Group’s projects in operation and under construction: 21 3 Project PS10 PS20 Solnova 1 Solnova 3 Solnova 4 Helioenergy 1 Helioenergy 2 Solaben 2 Solaben 3 Helios 1 Helios 2 Solacor 1 Solacor 2 Solana Company Type Mw Tariff type Tower Tower Parabolic Cylinder Collector Parabolic Cylinder Collector Parabolic Cylinder Collector Parabolic Cylinder Collector Parabolic Cylinder Collector Parabolic Cylinder Collector Parabolic Cylinder Collector Parabolic Cylinder Collector Parabolic Cylinder Collector Parabolic Cylinder Collector Parabolic Cylinder Collector Parabolic Cylinder Collector 11 20 50 50 50 50 50 50 50 50 50 50 50 280 M / RT M / RT M / RT M / RT M / RT M / RT M / RT M / RT M / RT M / RT M / RT M / RT M / RT RT Technology Country Location Status Operation (O) Construction (C) Start of operations Estimated years in operation Financing (project finance -PF- or own resources -OR-) Sevilla Seville Seville Seville Seville Écija Écija Cáceres Cáceres Ciudad Real Ciudad Real Córdoba Córdoba Arizona (O) (O) (O) (O) (O) (C) (C) (C) (C) (C) (C) (C) (C) (C) 2007 2009 2010 2010 2010 2011 2012 2012 2012 2012 2012 2012 2012 2013 25 25 30 30 30 30 30 30 30 30 30 30 30 30 PF PF PF PF PF PF PF PF PF PF PF PF PF PF Sanlúcar Solar S.A. Solar Processes S.A. Solnova Electricidad S.A. Solnova Electricidad Tres S.A. Solnova Electricidad Cuatro S.A. Helio Energy Electricidad Uno S.A. Helio Energy Electricidad Dos S.A. Solaben Electricidad Dos, S.A. Solaben Electricidad Tres, S.A. Helios I Hyperion Energy Investments S.L. Helios II Hyperion Energy Investments S.L. Solacor Electricidad Uno S.A. Solacor Electricidad Dos S.A. Arizona Solar One Termosolar Termosolar Termosolar Termosolar Termosolar Termosolar Termosolar Thermosolar Thermosolar Thermosolar Thermosolar Thermosolar Thermosolar Thermosolar Shams - 1 Shams Power Company PJSC (1) Thermosolar Parabolic Cylinder Collector 100 RT Sevilla Pv Casaquemada Linares Las Cabezas Copero 1 - 10 Fotovoltaica Solar Sevilla S.A. Casaquemada Fotovoltaica S.L. Linares Fotovoltaica S.L. Las Cabezas Fotovoltaica S.L. Copero Solar Huerta Uno a Diez S.A. Photovoltaic Photovoltaic Photovoltaic Photovoltaic Photovoltaic 2-axis tracking 2-axis tracking 2-axis tracking 1-axis tracking 2-axis tracking 1,2 1,9 1,9 5,2 1 RT RT RT RT RT Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain Spain United States United Arab Emirates Spain Spain Spain Spain Spain - - - - - Abu Dhabi (C) 2012 30 PF Seville Seville Jaen Seville Seville (O) (O) (O) (O) (O) 2006 2008 2008 2008 2007 / 2008 25 25 25 25 20 PF PF PF PF PF Spain Seville In operation 2009 - OR Spain Seville In operation 2009 - OR - Spain Seville In operation 2009 - OR - Spain Seville In operation 2010 - OR - - Spain Seville In operation 2008 - OR - - United States Colorado In operation 2009 - OR Solar Technologies Demonstration Projects Eureka Abengoa Solar New Technologies Planta GDV Abengoa Solar New Technologies Tes PS10 Abengoa Solar New Technologies Hercules Abengoa Solar New Technologies Photovoltaic Laboratory Abengoa Solar New Technologies Cameo Abengoa Solar Inc. I+D+i Termosolar High-temperature tower Direct vapour generation parabolic cylinder technology I+D+i Termosolar Thermal storage in molten salts I+D+i Hydrogen production using solar Fotovoltáico energy I+D+i Test of FV materials Fotovoltáico I+D+i Termosolar I+D+i Inst. Solares Solar thermal installation Industriales (1)Percentage interest of Abengoa of 2% (see Appendix II attached) Tariff types: RT Regulated tariff (fixed) M Market price The Group is currently operating a total of 193 MW (43 MW in 2009). The difference between the figures for the years 2010 and 2009 is primarily because three paraboliccylinder thermosolar plants (Solnova 1, 3 and 4) came into operation in 2010. In addition, the construction of seven new plants commenced in 2010 and the construction of four thermosolar plants continued. Note 2.- Summary of Key Accounting Policies The key accounting policies adopted in preparing the Consolidated Annual Financial Statements are described below: 2.1. Basis of presentation The Consolidated Annual Financial Statements at 31 December, 2010 have been prepared in accordance with International Financial Reporting Standards adopted for use in the European Union (hereinafter, IFRS-EU). Unless otherwise stated, the policies mentioned in this Note have been applied consistently to all the years presented in these Consolidated Annual Financial Statements. 22 3 In general, the Consolidated Annual Financial Statements have been prepared on a historical cost basis, except for those headings for which the aforementioned Standards expressly mention a different mandatory measurement criterion. The preparation of financial statements under IFRS-EU requires the use of certain critical accounting estimates. It also requires Management to exercise its judgement in the process of applying the accounting policies of Abengoa Solar. Note 3 mentions the areas that involve a higher degree of complexity and the areas where the assumptions and estimates are most significant. The figures contained in the documents that comprise the Consolidated Annual Financial Statements (Consolidated Statement of Financial Position, Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows and the Notes to the Consolidated Annual Financial Statements) are expressed in thousands of euros unless otherwise stated. All the Group companies have their year end at 31 December. Unless otherwise stated, the percentage interest in the share capital of the companies includes both direct and indirect holdings. For a better understanding of the Consolidated Annual Financial Statements, the name of the heading “Borrowings and Loans” in the Statement of Financial Position of the Consolidated Annual Financial Statements for the preceding year has been changed to the new name of “Corporate Financing”. Likewise, regroupings have been made under the Corporate Financing and Trade and Other Receivables headings and a separate heading has been created for Grants and Other Liabilities in the Consolidated Statement of Financial Position for 2010 and 2009. 2.1.1 Going-concern Principle These Group Consolidated Annual Financial Statements show, at 31 December, 2010, equity of 28,122 thousand euros (2,657 thousand euros at 31 December, 2009), a loss of 10,859 thousand euros attributed to the parent company (a loss of 60,194 thousand euros at 31 December, 2009) and negative working capital of 85,819 thousand euros (negative working capital of 28,747 thousand euros at 31 December, 2009). These Consolidated Statements have been prepared under the going-concern principle, taking the following circumstances and mitigating factors into account: 23 3 - The negative working capital and loss are primarily due to the solar plant project operation activity, which currently has a significant portfolio of projects in progress. During their construction phase, these projects are financed by own funds, loans and borrowings and funds for settling short-term payables to suppliers and creditors for construction of the plants. Once these assets come into operation, they will generate stable cash flows. - The support of the majority shareholder is demonstrated by the financing obtained through the net debt received from Abengoa, S.A. through the Centralised Treasury System, recognized as “Loans with Related Companies” under the Corporate Financing heading (see Note 15) and as “Credits with related companies” under Financial Receivables with Related Companies under the Financial Receivables heading (see Note 12), a net amount of 445,099 thousand euros of which had been drawn at the 2010 year end. In addition, the Group has financed itself through a convertible loan of 110,000 thousand euros from said company approved in the year 2009, as described in Note 21. 2.1.2 Changes and amendments to accounting standards The IASB has recently approved and published certain accounting standards, amendments to standards that were already in force and IFRIC interpretations. In this respect, the Group has adopted the following measures: a) Standards, amendments and interpretations mandatory for all annual periods commencing 1 January, 2010 applied by the Group: ‐ IFRS 3 (amended) “Business Combinations” and the resulting amendments to IAS 27 “Consolidated and Separate Financial Statements” and IAS 31 “Interests in Joint Ventures” (which it is mandatory to apply, prospectively, to all business combinations the acquisition date of which is after the commencement of the first annual period starting on or after 1 July, 2009). The amended standard maintains the acquisition method for business combinations, although it introduces important changes in comparison with the former standard. For example, all payments for acquisition of a business are recognized at their fair value at the acquisition date and contingent payments classified as liabilities are measured at each year end at their fair value, recognising the changes in the profit and loss account. An accounting policy option applicable at the level of each business combination is introduced, consisting of measuring non-controlling interests at fair value or at the proportional amount of the net assets and liabilities of the business acquired. All transaction costs are recognized as expenses. The Group has adopted IFRS 3 (amended) prospectively for all business combinations as from 1 January, 2010. 24 3 ‐ IAS 27 (amended), “Consolidated and Separate Financial Statements”. The amended standard requires that the effects of all transactions with non-controlling interests be recognized in equity if no change in control takes place, meaning that these transactions no longer generate goodwill or to losses or gains. The standard also establishes an accounting procedure for when control is lost. Any residual interest maintained in the entity is remeasured at fair value and a gain or loss is recognized in profit and loss. As stated in Note 2.2.2 below, the Group has applied IAS 27 (amended) prospectively to all transactions with non-controlling interests as from 1 January, 2010. ‐ IFRS 2 (amended), “Group Cash-Settled Share-Based Payment Transactions”. The amendments to IFRS 2 provide a clear basis for determining the classification of share-based payment in the consolidated and separate financial statements. The amendments incorporate IFRIC 8 “Scope of IFRS 2” and IFRIC 11 “IFRS 2 – Group and Treasury Share Transactions” into IFRS 2. They also expand the guide of IFRIC 11 for the treatment of agreements between entities in a group that were not considered in this Interpretation. In this respect, the amended IFRS 2 covers share-based payments settled in cash made by a group company that does not hold contracts with the employees receiving the payments. The Group has adopted the amendment to IFRS 2 prospectively as from 1 January, 2010, with no significant effect on the Consolidated Annual Financial Statements for the year. ‐ IFRIC 12, “Service Concession Arrangements”. This interpretation affects public-private service concession arrangements where the grantor regulates the services which the grantee must provide using the infrastructure and to whom and at what price the service must be provided, controlling any significant residual interest in the infrastructure at the end of the term of the arrangement. According to this interpretation, the infrastructure used in the concession may be classified as a financial asset or an intangible asset, depending on the nature of the payment rights fixed in the arrangement. Regulation EC 254/2009 of 25 March made this interpretation mandatory for European companies, at the latest, from the starting date of the first annual period after 29 March, 2009. Therefore, the Group has adopted it as from 1 January, 2010. According to this interpretation, the activities of the construction of the installation and its subsequent operation and maintenance can be recognized separately in the accounting. It thus recognizes the completely different business nature of the two activities and the existence of clearly distinguishable business risks and rewards that must be recognized and measured separately. 25 3 Thus, the infrastructure construction activity and the results thereof must be recognized in accordance with the applicable accounting method, while the operation and maintenance activity must be recognized in accordance with the terms of its execution and the generation of effective collection rights in favour of the grantee for provision of the services when the latter materialise as such. To apply this interpretation, the specific aspects of the holder of the concession must be taken into account, provided that they meet the requirements that the definition of a concession arrangement includes, basically delimited by the following two substantial aspects: a) the existence of an infrastructure controlled by the grantor; and b) the operation of said infrastructure implies the provision of a public service of an economic nature that may be operated in exchange for a price. At the date of the first application of IFRIC 12, Abengoa Solar Management, together with the Management of Abengoa, S.A. (parent company), made an analysis a certain agreements held by Abengoa Solar and identified infrastructures which might potentially be classified as service concession arrangements. These were thermosolar plants in Spain to which the special regime of RD 661/2007 was applied and which were entered in the Pre-Assignment Register in November 2009. By mutual agreement with the regulatory body of the Spanish securities market, the Corporate Management of Abengoa, S.A. decided to go into further depth with the analysis and delay the application of IFRIC 12 in the accounting, to extent that this new accounting interpretation does not yet have any precedents in other listed companies with similar installations and, especially, because, at the 2010 year end, the arguments that support the application of this interpretation to the accounting had not been fully verified and approved by the regulatory body, particularly in respect of the nature of the public service provided by the thermosolar activity in Spain by entities to which the special regime of RD 661/2007 is applied and which are registered in the Pre-assignation Register. ‐ IFRIC 15, “Agreements for the Construction of Real Estate” (applicable for annual periods commencing on or after 1 January, 2010). This interpretation clarifies the conditions under which revenue derived from agreements for the construction of real estate should be recognized and, in particular, whether said agreements fall within the scope of IAS 11”Construction Contracts” or IAS 18 “Revenue”. The Group has adopted IFRIC 15 prospectively as from 1 January, 2010, with no significant effect on the Consolidated Annual Financial Statements for the year. 26 3 - IAS 39 (amended), “Eligible Hedged Items” (mandatory for all annual periods commencing on or after 1 July, 2009 and must be applied retroactively). This amendment makes two important changes to IAS 39. Firstly, in prohibits the designation of inflation as an eligible component for hedging in a fixed-rate debt. Secondly, when hedging a unilateral risk with options, it prohibits the inclusion of the time value in the risk hedged. As stated in Note 9 below, the general interest rate hedging policy is based on contracting options in exchange for a premium (purchase of call option) whereby the company entering into the contract ensures payment of a maximum fixed-interest rate. The standard establishes that the intrinsic value and the time value of an option contract must be separated and that only the change in the intrinsic value may be designated as a hedging instrument, while the change in the time value is excluded. Therefore, only the intrinsic value of the options purchased may be designated as a hedging instrument recognising the effect in equity, while the changes in the time value of the options are recognized in the Consolidated Income Statement. The intrinsic value of an option is defined as the result that would be obtained if exercised at a given moment, i.e. the difference between the market value of the underlying asset and the strike price of the option. The application of this standard represents a change in the designation of hedges and, therefore, there is no change in the valuation of the financial instrument. The Group has applied IAS 39 (amended) considering that the impact on the figures for the year 2009 is not significant and, therefore, it has not re-expressed the consolidated figures for 2009 for the purposes of comparison, given that the effect on equity in previous years totals 971 thousand euros, net of the tax effect, which has been presented as a movement on Retained Earnings in 2010. If the Consolidated Annual Financial Statements had been re-expressed to include the effect of IAS 39 (amended), this would have meant an increase of 2,021 thousand euros, net of the tax effect, in the loss under the initial Retained Earnings heading at 1 January, 2009 and a decrease of 1,050 thousand euros, net of the tax effect, in the Consolidated Loss after Tax for the year 2009. ‐ Improvements Project for 2009, published in April 2009 by the IASB, which amends IFRS 2, 5 and 8 and IAS 1, 7, 17, 18, 36, 38 and 39, as well as IFRICs 9 and 16. The amendments introduced under this improvement project are mandatorily applicable for annual periods beginning on or after 1 January 2010, with exception of amendments to IFRS 2 and IAS 38, which are applicable to annual periods starting on or after 1 July 2009. 27 3 The application of these amendments and revisions has no significant effect on the Group’s Consolidated Financial Statements, except as stated in the Notes thereto. b) Standards, amendments and interpretations mandatory for all annual periods commencing on or after 1 January, 2010 that are not applicable to the Group: ‐ IFRS 5 (amended), “Non-current Assets Held for Sale and Discontinued Operations” (and the related amendment of IFRS 1 “First Time Adoption of IFRS”, mandatory for all annual periods commencing on or after 1 July, 2009). ‐ IFRIC 16, “Hedges of a Net Investment in a Foreign Operation”. (mandatory for all annual periods commencing on or after 30 June, 2009). ‐ IFRIC 17, “Distributions of Non-cash Assets to Owners”. This interpretation is part of the IASB’s Annual Improvements Project published in April 2009 (mandatory for all years commencing on or after 1 July, 2009). ‐ IFRIC 18, “Transfers of Assets from Customers” (mandatory to apply prospectively to all transfers of assets from customers received on or after 1 July, 2009). The application of these amendments and revisions has no significant effect on the Group’s Consolidated Annual Financial Statements. c) Standards, amendments and interpretations available for early adoption for annual periods commencing on or after 1 January, 2010: ‐ IAS 32 (amended), “Classification of Rights Issues” (applicable to annual periods commencing on or after 1 February, 2010). ‐ IFRS 1 (amended), “Limited Exemption for First-time Adopters from the comparative information required by IFRS 7” (applicable to annual periods commencing on or after 1 July, 2010). ‐ IAS 24, “Related Party Disclosures” (applicable to annual periods commencing on or after 1 January, 2011). 28 3 ‐ IFRIC 14 (amended), “Prepayments of a Minimum Funding Requirement” (applicable to all annual periods commencing on or after 1 January, 2011) ‐ IFRIC 19 “Extinguishing Financial Liabilities with Equity Instruments” (applicable to all annual periods commencing on or after 1 July, 2010). The new amendments or interpretations are not expected to have a significant effect on the Group’s Consolidated Annual Financial Statements. d) Standards, amendments and interpretations of existing standards that have not been adopted by the European Union: At the date of preparation of these Consolidated Financial Statements, the IASB and the IFRIC had published the following standards, amendments and interpretations which are not mandatory for annual periods commencing on 1 January, 2010: ‐ IFRS 9, “Financial Instruments” (applicable for annual periods commencing on or after 1 January, 2013). ‐ IFRS 7 (amendment), “Disclosures – Transfers of Financial Assets (applicable to annual periods commencing on or after 1 July, 2011). ‐ IAS 12 (amended), “Deferred Tax: Recovery of Underlying Assets” (applicable to annual periods commencing on or after 1 January, 2012). ‐ 2010 Improvements Project. The Improvements Project for 2010 amends six standards (IFRS 1, IFRS 3, IFRS 7, IAS 1, IAS 27 and IAS 34) and IFRIC 13. The amendments generally apply to annual periods commencing on or after 1 January, 2011, although early adoption is permitted. 2.2. Consolidation 2.2.1. Consolidation Principles In order to present the information on a consistent basis, the parent company’s valuation principles and standards have been applied to all companies included in the consolidation. The methodology used to translate the annual financial statements of foreign companies is described in Note 2.22. The subsidiaries, associates and joint ventures / temporaryconsortia included in the consolidation in 2010 (2009) are shown in Appendix I (VI), II (VII) and III (VIII), respectively. 29 3 a) Subsidiaries Subsidiaries are all those companies in which Abengoa Solar has the power to govern their financial and operating policies so as to obtain benefits from their activities. Control is presumed when more than half of the voting rights of the entity are held, either directly or indirectly through other subsidiaries, except under circumstances where it can be clearly proven that such possession does not imply control. Control will also exist when half or less of the voting right in an entity are held as well as: - power over more than one half of the voting rights by virtue of an agreement with other investors, or - power to govern the financial and operating policies of the entity under a statute, the Bylaws or some kind of agreement, so as to obtain benefits from its operations ; or - power to appoint or remove the majority of the members of the Board of Directors or equivalent governing body when the entity is governed thereby; or - power to cast the majority of votes at a meeting of the Board of Directors or equivalent governing body when the entity is governed thereby. When the Group ceases to hold control, joint control or a significant influence, any interest retained in the entity is recalculated to obtain its fair value, recognising the change in the net amounts in profit and loss. The fair value is the initial net value for the purposes of subsequent recognition of interests retained in an associated company, joint ventures or financial assets. Furthermore, any other amount previously recognized in the Statement of Comprehensive Income with respect to said entity is recognized as if the Group had disposed of the related assets or liabilities. This could mean that amounts previously recognized in the Statement of Comprehensive Income are reclassified to profit and loss. Subsidiaries are fully consolidated as from the date on which control is transferred to the Group and are excluded from the consolidation on the date that said control ceases. 30 3 The Group accounts for the acquisition of subsidiaries using the acquisition method. The consideration transferred for the acquisition of a subsidiary corresponds to the fair value of the assets transferred, the liabilities incurred and the equity instruments issued by the Group. The consideration transferred also includes the fair value of any asset or liability that comes from a contingent consideration agreement. Acquisition-related costs are recognized as expenses in the years in which they are incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are initially measured at their fair value at the acquisition date. For each business combination, the Group may choose to recognize any noncontrolling interest in the acquiree at fair value or for the proportional part of the noncontrolling interest in the acquiree’s net identifiable assets. Investments in subsidiaries are recognized at cost less accumulated impairment. The cost is adjusted to reflect any changes in the amount of the consideration resulting from variations in the contingent consideration. Cost also includes costs directly attributable to the investment. Goodwill is measured as the amount by which the consideration transferred plus the amount of any non-controlling interest in the acquiree plus the fair value at acquisition date of the interest previously held by the acquirer in the acquiree’s equity exceed the net amount, at acquisition date, of the identifiable assets acquired and liabilities assumed. If this amount were less than the fair value of the net assets of the subsidiary acquired and if the purchase was made under advantageous conditions, the difference is recognized directly in the Statement of Comprehensive Income as a gain. The values of non-controlling interests in the equity and consolidated profit or loss are presented, respectively, under the headings “Non-Controlling Interest” in the equity in the Consolidated Statement of Financial Position and the Consolidated Income Statement. The profit or loss and each component of any other comprehensive gain or loss is attributed to the owners of the parent company and the owners of non-controlling interests in proportion to their percentage interest. The total comprehensive profit or loss is attributed to the owners of the parent company and those of non-controlling interests even if this gives rise to a debit balance for the latter. The gains or losses on internal transactions are eliminated and deferred until they are realised with third parties outside the Group. 31 3 Reciprocal credits and debits between consolidated Group companies are eliminated in the consolidation process. In Appendices I and VI hereto, the 293 and 280 subsidiaries that formed part of the consolidated group in 2010 and 2009, respectively, are identified. The change in the consolidated group has not had any significant effect on the consolidated figures, except as explained in Note 2.2.2. b) Associated companies Associates are all those companies over which Abengoa exercises a significant interest but does not hold control, generally accompanied by an interest of between 20% and 50% of the voting rights. Investments in associates are consolidated by the equity method and are initially recognized at cost. The Group’s investment in associates includes the goodwill (net of any accumulated impairment losses) identified on the acquisition. The share in gains or losses subsequent to the acquisition of associated companies is recognized in the consolidated income statement and the share in movements on reserves subsequent to the acquisition is recognized in reserves. Post-acquisition movements are adjusted against the carrying amount of the investment. When the share in the losses of an associate equals or exceeds the interest held therein, including any other unsecured receivables, additional losses are not recognized unless Abengoa has assumed commitments or made payments on behalf of the associate. Gains on transactions between the Group and its associates that have not been realised with third parties are eliminated in accordance with the Group’s percentage interest in the associate. Unrealised losses are also eliminated unless the transaction provides evidence of impairment of the asset transferred. The accounting policies of associates are changed where necessary to ensure consistency with the policies adopted by the Group. Appendices II and VII hereto identify the 7 and 3 companies that, in the years 2010 and 2009, respectively, formed part of the consolidated group and were consolidated by the equity method. The change in the Group did not have a significant effect on the consolidated figures, except as stated in Note 2.2.2. 32 3 c) Joint ventures Joint ventures are entities which are jointly managed by the company in question and by third parties unrelated to the Group under an agreement between the parties, no party holding a greater degree of control than any other. Interests in joint ventures are consolidated by the proportional consolidation method. The Group combines its share in the assets, liabilities, revenues and expenses, other comprehensive income and cash flows of the jointly-controlled entity with the similar items in its own accounts on a line-by-line basis. Balances and transactions that exist between certain Group companies and joint ventures are eliminated in the consolidation process only for the proportional part of the share in said joint venture. Thus, balances and transactions for the part that has not been eliminated remain in the consolidated financial statements, where they are presented as outstanding balances with third parties, i.e. with the external partner in the present case. The share in the profits or losses on sales of Group assets to joint ventures is recognized for the portion that corresponds to other interest-holders. However, when profits or losses derive from the purchase of assets of the joint venture by a Group company, the share therein is not recognized until said assets are sold to an independent third party. A loss on a transaction is recognized immediately if it evidences a reduction in a current asset’s net realisable value or an impairment loss. When necessary to ensure consistency with the policies adopted by the Group, the accounting policies of joint ventures are changed. A business combination among entities or joint ventures is a business combination in which all the entities or businesses combined are ultimately controlled by the same party or parties both before and after the combination and this control is not temporary. When the Group carries out a business combination of joint ventures, the assets and liabilities acquired are recognized at the same carrying amount as previously and are not measured at fair value. No goodwill is recognized on the transaction. Any difference between the acquisition price and the net carrying amount of the net assets acquired is recognized in equity. Appendices III and VIII hereto identify the 10 and 8 companies that, in the years 2010 and 2009, respectively, formed part of the consolidated group. The variation in the group did not have any significant effect on the consolidated figures, except as stated in Note 2.2.2. 33 3 Note 35.5 shows the amounts that the Group’s share represents, applying the percentage that corresponds to it, in the assets and liabilities and revenue and profits or losses of the joint ventures. d) Temporary joint ventures A temporary consortium is defined as an entity without a separate legal personality through which a system of collaboration between companies is established for a certain time period, fixed or otherwise, for developing or executing a works project, service or supply.. The proportional part of the items in the temporary consortium’s Statement of Financial Position and Income Statement are included in the investor’s Statement of Financial Position and Income Statement in proportion to its percentage interest. Likewise, the cash flows are included in the Statement of Cash Flows. Appendices III and VIII hereto identify the 3 temporary joint ventures the formed part of the consolidated group in both 2010 and 2009. Note 35.6 shows the amounts that the Group’s share represents, applying the percentage that corresponds to it, in the assets and liabilities and revenues and profits or losses of the temporary joint ventures. e) Transactions and non-controlling interests The Group applies the policy of considering transactions with non-controlling interests as transactions with holders of equity instruments in the Group’s capital. For acquisitions of noncontrolling interests, the difference between the price paid and the applicable proportion of the carrying amount of the subsidiary’s net assets is deducted from the equity. The gains and/or losses on the sale of an interest to a minority interest holder is likewise recognized in equity. 2.2.2. Changes in the consolidated group Details are set forth below of those transactions that, during 2010, led to a significant change in the consolidated group (subsidiaries, joint ventures and associates), including the reason for the change. 34 3 - On 6 May, 2010, the share purchase/sale agreement between Abengoa Solar España, S.A., Écija Solar Inversiones, S.A. and E.ON First Future BV was executed. Under this agreement, E.ON First Future B.V. was sold an interest of 50% in the companies Helioenergy Electricidad Uno, S.A. and Helioenergy Electricidad Dos, S.A. for an amount of 21,512 euros. At the transaction date, the two aforementioned companies had only an initial investment of 50 MW each in a thermosolar plant, construction of which commenced in May 2010, on their Statements of Financial Position. The transaction did not generate any significant effect on the Consolidated Income Statement. In line with the interests held and the shareholders’ agreement, joint control is exercised by the parties and, therefore, the companies are consolidated on a proportional basis (they were fully consolidated in 2009). - On 22 June, 2010, the share purchase/sale agreement between Abengoa Solar España, S.A., Carpio Solar Inversiones, S.A. and the Japanese company JGC Corporation was executed. Under this agreement, JGC Corporation was sold an interest of 26% in the companies Solacor Electricidad Uno, S.A. and Solacor Electricidad Dos, S.A. for 31 thousand euros. At the transaction date, said companies had only an initial investment of 50 MW each in a thermosolar plant, construction of which commenced in October 2010, in the Statements of Financial Position. At the end of the reporting period, control over these companies was still held, with a percentage interest of 74% (100% in 2009). - On 16 December, 2010, a share purchase/sale agreement between Abengoa Solar España, S.A. and I-Solar Investment Ltd. (an Itochu Group company) was executed. Under this agreement, an interest of 30% in the companies Solaben Electricidad Dos, S.A. and Solaben Electricidad Tres, S.A. was sold to the latter for 36 thousand euros. The transaction did not generate a significant effect on equity. At the end of the reporting period, control over these companies was still held, with a percentage interest of 70% (100% in 2009). No companies left the consolidated group during the year (subsidiaries, joint ventures and associates). In the year 2009, changes in the consolidated group were not significant. 2.3. Intangible assets This heading includes the intangible assets of companies or projects financed with own resources or through non-recourse financing formulas. Other intangible assets are classified as “Intangible assets in projects”, see Note 2.5. 35 3 a) Computer software Software licences are capitalised on the basis of the costs incurred in acquiring them and preparing the specific program for use. Additionally, costs necessary for the installation and implementation of computer programs are incurred and are capitalised. These costs are amortizeamortized on a straight-line basis over their estimated useful lives, which do not exceed 10 years. Costs associated to software maintenance are allocated directly as an expense in the year in which they are incurred. b) Research and Development expenses Research expenses are recognized as an expense for the year in which they are incurred and there is an itemised breakdown for each project. Expenses incurred in development projects (related to the design and testing of new or improved projects) are recognized under intangible assets when: ‐ The project is likely to be a success (considering its technical and commercial viability) in such a way that said project will be available for use or sale. ‐ The project is likely to generate future economic profits in terms of both external and internal sales. ‐ ‐ ‐ Management intends to complete the project in order to use or sell it. The entity is able to use or sell the intangible asset. Appropriate technical, financial or other assets are available to complete development and to use or sell the intangible assets; and ‐ Its costs can be reliably estimated. The capitalised costs are amortized from the beginning of the commercial production of the product on a straight-line basis over the period in which it is expected to generate profits, which does not usually exceed 5 years, except in cases where the Group estimates a longer useful life for the asset and the technical success and economic and commercial viability of the project over the period assigned for its Amortization is duly proven, as occurs with tower-technology thermosolar plants, which are amortizeamortized over 25 years. 36 3 Amounts received as grants or subsidised loans to finance research and development projects are taken to profit and loss in a manner similar to the treatment and percentages of completion with which they are capitalised or classified as operating expenses, in accordance with previouslyestablished rules, as stated in Note 2.16 below. c) Other intangible assets Industrial property is measured at acquisition cost and is amortizeamortized on a straight-line basis over the term for which its exclusive use is recognized. The Group does not have significant amounts relating to this type of intangible asset. 2.4. Property, Plant and Equipment 2.4.1. Presentation This heading includes property, plant and equipment of companies or projects financed through own resources or non-recourse financing formulas. Other property, plant and equipment is classified as “Property, plant and equipment in Projects”, see Note 2.5. 2.4.2. Measurement As a general rule, the assets included in property, plant and equipment are recognized at acquisition cost less accumulated depreciation and impairment losses, except for land, which is recognized at acquisition cost less impairment, when applicable. Historical cost includes expenses directly attributable to acquiring the assets. Costs subsequent to acquisition are included in the asset’s carrying amount or recognized as a separate asset when it is likely that the associated future economic profits can be reliably determined. Other repairs and maintenance are charged to profit and loss in the year in which they are incurred. Work carried out by the Group for its property, plant and equipment is measured at production cost and appears under “Other operating income” in the Consolidated Income Statement. Internal profits are eliminated to calculate to asset’s acquisition cost. 37 3 For internal asset construction projects carried out for Abengoa Solar, the totality of the revenue and expenses arising between Group companies are eliminated, so that said assets are shown at acquisition cost. In addition, for said internal construction projects, financial expenses accrued during the construction period, including both specific financing obtained to fund each of the projects undertaken and the rest of the non-commercial borrowing, are recognized as an increase in value of the property, plant and equipment, in accordance with the procedures established in accounting legislation. Said capitalisation of financial expenses ceases at the moment when the initially forecast process is halted or lengthened as a result of delays or inefficiencies. The cost during the construction period may also include gains or losses on cash flow hedges in foreign currency relating to property, plant and equipment acquisitions and transferred from equity. In the case of investment in property, plant and equipment on land held in ownership or belonging to third parties, the initial estimate of the costs of dismantling or removing the element and restoring the site on which it stands will be included in the capitalised cost of the asset. Obligations relating to said costs will be recognized and measured at current market value, in accordance with IAS 37 ( see Note 18). Surface rights are considered as an increase in the value of the associated asset. Therefore, they are classified under the heading under which the asset is classified. They are measured at acquisition price and depreciated on a straight-line basis over the useful life of the associated project, which ranges from 25 to 30 years. The annual straight-line depreciation rates applied to property, plant and equipment (including property, plant and equipment in projects) are as follows: 38 3 Asset Rate Buildings 2% - 3% Plant 4% - 12% - 20% Plants in operation 4%-3,33% Machinery 12% Tools and equipment 15% - 30% Furniture 10% - 15% Data-processing equipment 25% Vehicles 8% - 20% In the case of electricity plants in operation, the Group estimates the years of useful life for depreciation purposes as follows, depending on the type of technology: - Photovoltaic technology: 20 - 25 years - Parabolic-cylinder thermosolar technology: 30 years The residual value and useful life of the assets are reviewed and, if necessary, adjusted, at the end of the companies’ reporting period. When the carrying amount of an asset its higher than its estimated recoverable amount, its carrying amount is immediately written down to its recoverable amount, see Note 2.7. Losses and gains on sales of property, plant and equipment are calculated by comparing the revenue obtained with the carrying amount and recognized in the Consolidated Income Statement under the heading “Other operating income”. 2.5. Fixed assets in projects In order to manage its business, the Group classifies its portfolio of intangible assets and property, plant and equipment in accordance with the type of financing obtained to develop them. In the case of fixed assets in projects, the intangible assets and property, plant and equipment of consolidated companies that are financed through “Project Finance” are included, i.e. non-recourse financing applied to projects, as explained in Note 14 below. 39 3 These assets with non-recourse financing usually represent the results of projects that consist of the design, construction, financing, operation and maintenance of an owned project and are, in general financed through the aforementioned Project Finance (non-recourse financing applied to projects). In this type of financing, the basis of the financing agreement between the company and the bank lies in the allocation of the cash flows generated by the project to the repayment of the principal and interest expenses, excluding or limiting the amount secured by other assets, in such a way that the bank recovers the investment solely through the cash flows generated by the project financed, any other debt being subordinated to the debt arising from the Project Finance until the non-recourse debt has been fully repaid. For this reason, fixed assets in projects are separately reported in the Assets of the Consolidated Statement of Financial Position in the same way as the related Project Finance is presented separately in the liabilities of the same Statement. Intangible assets in projects and property, plant and equipment in projects are governed by the same measurement, classification and Amortization or depreciation rules as other intangible assets and property, plant and equipment, as explained in Notes 2.3 and 2.4 above, respectively. 2.6. Interest expenses Interest expenses incurred in the construction of any qualifying asset are capitalised over the period necessary to complete and prepare the asset for its intended use, in accordance with the contents of IAS 23. Abengoa Solar defines qualifying assets as those which meet the requirements for capitalisation and have a construction or production period longer than one year. Costs incurred in non-recourse factoring transactions are applied as expenses at the time of transfer to the financial institution when the accounting treatment implies derecognition of the factored financial assets. Other interest costs are recognized as expenses in the year in which they are incurred. 2.7. Impairment of non-financial assets. Assets subject to Amortization or depreciation are tested for impairment whenever any event or change in circumstances indicates that the carrying amount may not be recoverable. The same analysis is made for assets under construction that have not yet come into operation. 40 3 If there are indications of impairment, the Group carries out an impairment test to determine whether the assets have incurred an impairment loss. In order to determine the extent of the impairment loss, the recoverable amount of the asset is calculated as the higher of market value less cost of sales and value in use, defined as the present value of estimated future cash flows. If the asset does not generate cash flows independently of other assets, Abengoa Solar calculates the recoverable amount of the cash-generating unit to which the asset belongs. In order to calculate the value in use, the assumptions used include the discount rates, growth rates and forecast changes in selling prices and costs. The directors estimate pre-tax discount rates that reflect the time value of money and the risks associated with the cash-generating unit. The growth rates and estimated changes in selling prices and costs are based on internal and industry forecasts and on experience and future prospects, respectively. Financial projections usually cover a period of 25 years, depending on the growth potential of the cash-generating unit. In the specific case of development expenses, apart from the commercial and economic viability based on the future cash flow estimates described above, the Group assesses the technical viability of each one of the projects on the basis of internal technical reports and technical reports from external entities. If the recoverable amount is less than the asset’s carrying value, the relevant impairment loss is recognized by a charge to “Amortization, depreciation and impairment” in the Consolidated Income Statement. Impairment losses recognized on assets in previous years are reversed by crediting the aforementioned heading when the estimated recoverable amount changes, with a limit of the carrying amount that the asset would have had if the impairment loss had not been recognized. 2.8. Financial Investments (current and non-current) Financial assets are classified in the following categories, on the basis of the purpose for which they were acquired: a) loans and receivables; b) Financial assets available for sale; c) Financial assets held at fair value through profit and loss. Group Management determines the classification of financial assets upon initial recognition and reviews the classification at the end of the reporting period. 41 3 a) Loans and receivables This category includes loans and receivables considered as non-derivative financial assets, with fixed or determinable payments, that are not listed on an active market. They are included in current assets except for those maturing more than 12 months after the end of the reporting period. Loans and receivables are included in the lines “Trade and other receivables” (also see Note 2.12), and “Financial receivables” in the Consolidated Statement of Financial Position. They are initially recognized at fair value plus transaction costs and subsequently at their amortized cost in accordance with the effective interest rate method. Interest calculated using the effective interest rate method is recognized in the Consolidated Income Statement under the heading “Other net financial expenses/income”. Balances maturing at less than one year are measured at nominal value, provided that the effect of not discounting the flows is not significant. The amount of the provision for impairment is calculated as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the effective interest rate. If, in a later period, the amount of the impairment loss decreases and the decrease can objectively be attributed to an event that has taken place since the impairment was recognized (such as an improvement in the debtor’s credit rating), the reversal of the previouslyrecognized impairment will be recognized in the Consolidated Income Statement. b) Financial assets available for sale This category includes non-derivative financial assets that are not included in any other category of financial assets. In the case of Abengoa Solar, they are primarily interests in other companies that do not belong to the consolidated group. They are recognized as non-current assets, unless Group Management intends to dispose of the investment within the 12 months following the date of the Consolidated Annual Financial Statements. They are recognized initially and subsequently at fair value plus transaction costs. Changes in said fair value are recognized in equity. 42 3 When securities classified as available for sale are sold or impaired, the cumulative fair value adjustments are recognized in the Income Statement under the heading “Other net financial income/expenses”. In order to determine whether securities are impaired, the Group considers whether there has been a significant or prolonged decline in the fair value of the securities below cost. The accumulated loss is the difference between the acquisition cost and current fair value less any impairment loss previously recognized in profit and loss. Acquisitions and disposals of investments are recognized at the trade date, i.e., on the date the Group undertakes to acquire or sell the asset. Investments are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and all risks and rewards of ownership have substantially been transferred. The fair values of quoted investments are based on prevailing bid prices. If the market for a financial asset is not active (and for unlisted securities), the fair value is established by using valuation techniques, making maximum use of market data. The Group’s financial assets held for sale are not significant and they are fully impaired (see Note 10). c) Financial assets measured at fair value through profit and loss This category includes both financial assets acquired for trading and those designated upon initial recognition. A financial asset is classified in this category if it is acquired primarily in order to be sold in the short term or if Management designates it as such. Financial derivatives are also classified as held for trading unless designated as hedges. Assets in this category are classified as current assets, except when held for trading or expected to be realised at more than 12 months after the end of the reporting period, in which case they are classified as non-current assets. They are recognized initially and subsequently at fair value, not including transaction costs. Successive changes in said fair value are recognized in profit and loss. Financial assets classified in this category are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and when all the risks and rewards of ownership have been substantially transferred. 43 3 There are no other financial assets at fair value through profit and loss, except for the derivatives described in Notes 9 and 11. 2.9. Derivative Financial Instruments and Hedging Activities Financial derivatives are recognized at inception at fair value, which is adjusted subsequently. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument and the nature of the item being hedged. The ratio between hedging instruments and the items hedged, as well as the risk management objectives and the strategy to be employed in each hedge transaction, is documented at inception. Additionally, both at inception of the hedge and subsequently, on an ongoing basis, the effectiveness of the derivatives is documented when offsetting changes in fair values or cash flows from the hedged items. The most usual methods chosen by the Group for measuring the effectiveness of the financial instruments designated as hedges are the dollar offset method and regression analysis. Either of the aforementioned two methods are applied by the Group to perform the following effectiveness tests: - Prospective effectiveness test performed at the designation date and at the end of each reporting period, in order to determine that the hedge ratio continues to be effective and can be designated for the following period. - Retrospective effectiveness test performed at the end of each reporting period, in order to determine the ineffectiveness of the hedge, which must be recognized in profit and loss. The fair values of certain derivative instruments used as hedges are broken down in Note 11. Movements on the hedging reserve included in equity are shown in Note 23. The whole of the fair value of a hedging derivative is classified as a non-current asset or liability if the remaining period until maturity of the item hedged is more than 12 months and as a current asset or liability if the remaining period until maturity of the item hedged is less than 12 months. Derivatives other than hedges are classified as current assets or liabilities or non-current assets or liabilities in accordance with their maturity and are classified as assets and liabilities at fair value through profit and loss, pursuant to IAS 39 (see Note 11). 44 3 In accordance with the foregoing, the Group holds the following types of derivatives: a) Fair value hedges of recognized assets and liabilities. These are intended to hedge exposure to changes in the value of a recognized asset or liability or firm commitments to transactions to be performed. Changes in fair value are recognized in the Consolidated Income Statement under the heading “Other Net Financial Income/Expenses”, together with any change in the fair value of the hedged assets or liability that is attributable to the risk hedged. b) Cash flow hedges for forecast transactions The objective is to hedge exposure in highly probable future transactions and variations in cash flows. As a general rule, the effective portion of changes in the fair value of the financial instruments designated as cash flow hedges is recognized in equity, while the gain or loss related to the ineffective part is immediately recognized in the Consolidated Income Statement under the heading “Other net financial income/expenses”However, when a unilateral risk is designated as the risk hedged, the intrinsic value and time value of the financial instrument designated are separated, recognising the changes in the fair value of the intrinsic value in equity and those of the time value in profit and loss. The time value cannot be included in the risk hedged. The Group holds financial instruments with these characteristics, such as the call options (caps), described in Note 11. Amounts accumulated in equity are transferred to profit and loss in the year in which the hedged item affects the profit or loss. However, when the forecast transaction hedged results in recognition of a non-financial asset or a liability, the losses and gains previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset or liability. 45 3 When the hedging instrument matures or is sold, or when a hedging transaction ceases to qualify for hedge accounting, the gains and losses accumulated in equity until that time remain in equity and are recognized when the forecast transaction is finally recognized in profit and loss. However, if the transaction is no longer considered probable, the gains or losses accumulated in equity are immediately transferred to the Consolidated Income Statement under the heading “Other net financial income/losses”. 2.10. Fair value estimation In accordance with IFRS 7 for financial instruments, in Note 9.2 the Group breaks down by levels the measurements of the fair values of those financial instruments that are measured at fair value in the Statement of Financial Position. The fair value of financial instruments traded in active markets is based on quoted market prices at the year end. A market is considered to be active when the quoted prices are easily and regularly available through a stock exchange of financial intermediaries, among others, and said prices reflect current market transactions taking place on a regular basis under arm’s-length conditions. The fair value of financial instruments that are not listed on an active market is determined using several measurement techniques and through assumptions based on market conditions at the end of each reporting period. For non-current debt, market prices for similar instruments are used. Other techniques, such as estimated discounted cash flows, are used to determine fair value of other financial instruments. The fair value of interest-rate swaps is calculated as the present value of the estimated future cash flows. The fair value of forward foreign exchange contracts is determined using forward exchange market rates at the end of the reporting period. The nominal value less estimated credit adjustments of receivables and payables are assumed to approximate their fair values because of their short-term nature. The fair value of financial liabilities is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. Information on the fair values of all the financial instruments is provided in Note 9.2. 46 3 2.11. Inventories The inventories heading includes the following: a) The value of the items acquired that are necessary for the manufacture of parabolic mirrors for the thermosolar energy plants and the manufacturing costs incurred in producing them. Likewise, the production cost of the semi-finished and finished mirrors is included. b) The value of the items acquired that are necessary for the construction, assembly and sale of all kinds of metallic, mechanical or concrete structures, among others, together with the costs incurred in manufacturing them. c) The value of the costs incurred by the Group’s promotion companies in photovoltaic and thermosolar promotion projects, such as the geotechnical study expenses, external engineering, the approvals and costs required to obtain licences and permits, among others, when they qualify for capitalisation. Inventories are measured at the lower of their cost or their net realisable value. The net realisable value is the estimated selling price in the ordinary course of business less the applicable variable sales costs. When the net realisable value of inventories is lower than their costs, the appropriate valuation adjustments are made and recognized as an expense in the Consolidated Income Statement under the heading “Amortization, depreciation and impairment”. If the circumstances that caused the value adjustment cease to exist, the amount of the adjustment is reversed and recognized as income in the Consolidated Income Statement under the same heading where the adjustment was made. The cost of raw materials is generally determined by the weighted average cost method. The cost of finished products and work in progress includes raw material costs, direct labour, other direct costs and manufacturing overheads (based on normal operating capacity). Inventories related to work in progress in the construction and assembly of the metallic structures mentioned in point b) above are recognized at the value of the costs directly attributable to the work and the applicable part of the indirectly attributable costs, to the extent that said costs relate to the production period. Inventories related to thermosolar and photovoltaic promotions are measured at the costs incurred that are directly attributable to said promotions and the part of indirect costs that may reasonably be attributed to the promotions in question, to the extent that such costs relate to the period of the promotion and are necessary in order to attain it, once the possibilities of its success have been assessed. 47 3 2.12. Trade and Other Receivables Trade receivables relate to amounts due by customers for sales of goods and services carried out in the ordinary course of operations. If debts are expected to be collected at one year or less, they are classified as current assets. Otherwise, they are shown as non-current assets. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method, less any impairment provisions. Balances maturing at no more than one year are measured at their nominal value, provided that the effect of not discounting the flows is not significant. An impairment provision is recognized for trade receivables when there is objective evidence that the Group will not be able to collect all amounts due on the original terms of the receivables. Impairment losses on trade receivables are recognized under the heading “Amortization, depreciation and impairment” in the Consolidated Income Statement. The existence of significant financial difficulties on the part of the debtor, the likelihood of the debtor entering bankruptcy or carrying out a financial reorganisation and/or non-payment or late payment are deemed to be indications of impairment of the receivable. Factored customer and other current receivables are derecognized when the right to receive the cash flows has ceased and all the risks and rewards of ownership have substantially been transferred (see Note 12). 2.13. Cash and Cash Equivalents The cash and cash equivalents heading includes cash in hand and at bank. If any, sight deposits with credit institutions and other highly-liquid short-term investments with initial maturities of three months or less are classified under this heading. 2.14. Share Capital Parent company shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown, net of tax, as a deduction from the proceeds obtained. Any amount received from the sale of treasury stock is shown, net of said incremental costs, in the equity attributable to the company shareholders. 48 3 2.15. Compound Financial Instruments Compound financial instruments issued by the Group include a loan convertible into shares, as described in Note 21 below. The liability component of a compound financial instrument is initially recognized at the fair value of a similar liability without the option of conversion into equity. The equity component is initially recognized as the difference between the fair value of the compound financial instrument considered overall and the fair value of the liability component. Any directly attributable transaction cost is assigned to the liability and equity components in proportion to their initial carrying amounts. After initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest rate method. The equity component of a compound financial instrument is not remeasured except upon conversion or maturity or, if applicable, a subsequent modification of the instrument. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement for at least 12 months after the end of the reporting period. 2.16. Grants Official grants relating to the acquisition of intangible assets or property, plant and equipment are recognized as non-current liabilities at the fair value of the amount granted, under the heading “Grants and other liabilities”. They are recognized once notification that they have been awarded is received and no reasonable doubts are deemed to exist as to meeting the conditions fixed by the entity awarding the grant and, therefore, the collection thereof. Grants relating to the acquisition of assets are credited to the Consolidated Income Statement as an increase in the operating gains under the heading “Other operating income” on a straight-line basis over the forecast lives of the related assets. Operating grants are deferred as non-current liabilities under the heading “Grants and other liabilities” and are recognized in the Consolidated Income Statement under the heading “Other operating income” over the period necessary to match them to the costs they are intended to offset. 49 3 2.17. Loans and borrowings Loans and Borrowings are classified in the following categories: a) Non-recourse financing applied to projects (Project Finance) (see Note 14) b) Corporate financing (see Note 15) Borrowings are initially carried at fair value net of transaction costs. They are subsequently measured at amortized cost. Any differences between the funds obtained (net of the costs necessary to obtain them) and their repayment value are recognized in the Consolidated Income Statement under the “Financial expenses” heading over the life of the debt, using the effective interest rate method. Commissions paid on the arrangement of credit lines are recognized as debt transaction costs provided that it is probable that part or all of the line will be used. In this case, the commissions are deferred until the line is utilised. Insofar as it is not probable that all or part of the credit line will be used, the commission is capitalised as an advance payment for liquidity services and is amortized over the period for which the facility is available. Loans received with a lower-than-market interest rate or zero interest (“soft” loans) are recognized at fair value in the liabilities. In the case of development project grants, the difference between the fair value and the repayment value is recognized as a grant under the “Grants and other liabilities” heading and is transferred to profit and loss on a straight-line basis on the “Grants” line of the “Other operating income” heading” of the Consolidated Income Statement, in line with the subsidised interest that is incurred over the life of the loan that gave rise to it. If the grant is applied to research expenses, the difference between the fair value and the repayment value is recognized in profit and loss, on the line “Grants” of the “Other operating income” heading of the Consolidated Income Statement, when the expenses have been incurred, or on the line “Grants and other liabilities” of the Consolidated Statement of Financial Position when the expenses have not been incurred. Borrowings are classified as current liabilities unless there is an unconditional right to defer settlement for at least 12 months after the end of the reporting period. 50 3 2.18. Current and Deferred Taxes Tax expense for the year consists of current and deferred taxes. The tax expense is recognized in the Consolidated Income Statement, except insofar as it refers to items recognized in other comprehensive income or directly in equity. In this case, the expense is recognized in equity. Current tax expense is calculated based on the tax legislation that has been enacted or substantially enacted at the year end in the countries in which subsidiaries and associates operate and generate taxable income. Deferred income tax is calculated, using the statement of financial position method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. However, if the deferred tax arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting profit or loss nor taxable profit nor loss, such deferred tax is not recognized. The deferred tax is determined using tax rates approved or about approved at the date of the Statement of Financial Position and expected to apply when the corresponding deferred tax asset is realised or the deferred tax liability is settled. Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be offset.. Deferred tax is recognized on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary differences can be controlled and it is probable that they will not reverse in the foreseeable future. All the Spanish companies belonging to the Group have applied a corporate tax rate of 30% for the years 2010 and 2009. 2.19. Employee Benefits a) Variable remuneration plan The Group recognizes a liability and an expense for variable compensation to managers, depending on attainment of objectives and conditions subject to the plan, as described in Note 35.2. The Group recognizes a provision when it is contractually obliged or when past practice has created an implicit obligation. 51 3 b) Severance payments Severance payments are paid to employees as a result of the Group’s decision to rescind their employment contracts before the normal retirement age or when the employee agrees to resign voluntarily in exchange for these benefits. The Group recognizes these benefits when it has made a demonstrable commitment to pay severance payments or to dismiss current workers in accordance with a detailed formal plan from which it cannot withdraw. c) Stock option plans The Group has acquired a series of obligations under share-based incentive programs with management and employees, which are explained in Note 35.2 (one refers to shares of Abengoa, S.A. –the parent company- and another the shares of Abengoa Solar, S.A.), under which the Group receives services from the managers and employees in consideration for equity instruments or cash, depending on certain conditions being met. According to IFRS 2, the party that receives the goods and services in a transaction with sharebased payments must recognize the expense, even when not obliged to settle the transaction, and it can classify said transaction as settled by equity instruments or in cash, taking into account: ‐ the nature of the share-based payments granted; and ‐ its own rights and obligations. The party receiving the goods and services may classify the transaction as settled by equity instruments taking into account whether: ‐ the equity instruments granted are its own; or ‐ the entity is not obliged to settle the transaction, i.e. it does not have to hand over either equity instruments or cash to the providers of the goods or services. If the obligation to settle the transaction is held directly by Abengoa Solar, the transaction is classified as settled by equity instruments only if it is settled by Abengoa Solar’s own equity instruments. Otherwise, the transaction is classified as a transaction with share-based payments, settled in cash. 52 3 2.20. Provisions and Contingent Liabilities Provisions for taxes, litigations, risks and expenses are recognized when: ‐ There is a present legal or implicit obligation as a result of past events; ‐ It is more probable than not that an outflow of funds will be necessary to settle the obligation; and ‐ The amount has been reliably estimated. Provisions are measured at the present value of the outflows that are expected to be necessary to settle the obligation, recognising the increase in the provision over time as an interest expense. Compensation to be received from a third party at the time the obligation is settled does not reduce the amount of the debt, notwithstanding recognition of the related collection right in the assets provided that there is no doubt that said amount will be received. The amount at which the asset is recognized may not exceed the amount of the obligation recognized. The Group recognizes certain specific provisions, which are mentioned below: a) Provision for warranties:: The Group agrees the warranty cover that it will assume individually in each contract with a customer. In the specific case of the parabolic mirrors for thermosolar energy plants, the normal period of warranty in the national market varies between 5-6 years in relation to compliance with technical specifications, such as the reflectivity level, geometrical precision and anticorrosion. For manufacturing defects, the usual warranty periods are from 2-3 years. However, in the foreign market, warranties are for 10 years for all items. On the basis of requirements of specific contracts, as well as its accumulated experience, the Group only estimates some significant risks derived from contracts with foreign customers. b) Dismantling provision: The provision for obligations derived from dismantling or removing the production facilities or restoring the site on which they stand are determined in accordance with the present value of the outflows that are expected to be necessary to settle the obligation, applying a discount rate before tax that reflects the evaluations of the current market and the time value of money. This is updated each year in accordance with the financial effect of the discount, without prejudice to any revision of the initial amount that may result from a new estimate of the cost of the aforementioned work or the discount rate applied. 53 3 Contingent liabilities are possible obligations with third parties and existing obligations that are not recognized because it is either improbable that an outflow of funds will be required to settle them or the amount involved cannot be reasonably estimated. Contingent liabilities are not recognized on the Statement of Financial Position unless they have been acquired for a consideration within the framework of a business combination. 2.21. Trade and Other Payables Trade payables are payment obligations for goods or services acquired in the ordinary course of operations and are initially recognized at fair value. Subsequently, they are measured at amortized cost using the effective interest rate method. Other trade payables are payment obligations that do not originate from the acquisition of goods or services and that are not considered as debt from financing transactions. Trade and other payables are classified as current liabilities if the payments mature at one year or less. Otherwise, they are shown as non-current liabilities. Customer advances received are recognized at fair value and included as liabilities under the “Trade and other receivables” heading. Payments to the Group’s providers and suppliers are made through reverse factoring, which is a product based on transferring the management of the Group’s payments to the financial institutions. For the supplier, reverse factoring is a way of collecting in cash. This procedure allows Abengoa Solar to transfer a large part of the payment process administration, eliminating part of the costs derived from payment management (handling documents, issuing promissory notes, mail, reconciliation, etc.). This system allows an active commercial policy to be followed in relation to supplier financing as well as the optimisation of the placement of cash surpluses with higher remuneration than that of normal market conditions. 54 3 2.22. Foreign Currency Transactions a) Functional and presentation currency The items included of each one of the Group companies included in these Consolidated Annual Financial Statements are measured in the currency of the primary economic environment in which the Group operates (functional currency). The Consolidated Annual Financial Statements are presented in Euros, which is the functional and presentation currency of Abengoa Solar, S.A., the parent company. b) Transactions and balances Transactions in foreign currency are translated to the functional currency using the exchange rates prevailing at the transaction dates. Foreign currency gains and losses resulting from both the settlement of transactions and translation at the year-end exchange rates of monetary assets and liabilities denominated in foreign currency are recognized in the Consolidated Income Statement under the heading “Net exchange differences”, unless they are deferred in equity, as in the case of qualifying cash flow hedges. c) Translation of the financial statement of foreing companies within the Group The results and financial position of all Group companies (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency (Euro) are translated to the presentation currency as follows: 1) All assets, rights and obligations are translated to the presentation currency using the exchange rate prevailing at the end of the reporting period. 2) The items on the income statement of each foreign company are translated to the presentation currency using the annual average exchange rate, calculated as the arithmetic mean of the average exchange rates for each of the twelve months of the year that do not differ significantly from the rate at the transaction date. 3) The difference between the equity, including the profit or loss calculated as in the preceding point,, translated at the historical rate of exchange, and the equity resulting from the translation of assets, rights and obligations in accordance with paragraph 1) above, is shown, with a positive or negative balance, as appropriate, under equity in the Consolidated Statement of Financial Position under the “Exchange differences” heading. 55 3 The results of companies consolidated by the equity method are translated, where applicable, at the average exchange rate for the year, calculated in accordance with paragraph 2) above. 2.23. Revenue Recognition Ordinary revenues include the fair value of sales of goods and services not including the taxes on these transactions. All discounts, returns and intra-Group sales are deducted from the amount of the transaction. Within the different activities carried on by the Group, ordinary revenue is recognized as follows: a) Energy sales: Revenues from energy sales are recognized at the fair value of the consideration to be received and represent the amounts receivable for services provided in the ordinary course of the activity. The principal market where the Group operates in this activity is Spain and the Group’s activity is subject to Royal Decree 661/2007. The tariff receivable for energy sales in Spain made by the solar plants in operation that belong to Abengoa Solar is regulated by the aforementioned Royal Decree and the owner of the installations may choose between a fixed tariff or selling in the electricity production market. In the latter case, the price is supplemented by a premium. Revenue is recognized as the plant generates electricity and the latter is sold to the network. This situation commences when the Provisional Acceptance Certificate is signed and the installations are entered in the Register of Special-Regime Electricity-Generating Installations. b) Mirror sales: The Group manufactures and sells parabolic mirrors for thermosolar energy plants. Sales of goods are recognized when the products have been delivered to the customer and no obligation that may affect the customer’s acceptance of the products has not been met. Delivery does not take place until the product has been sent to the specific place, the risks of obsolescence and/or losses have been transferred to the customer and the Group has sufficient objective evidence that all acceptance criteria have been met. 56 3 c) Construction contracts: For construction contracts, costs are recognized when incurred. When the profit or loss on a construction contract cannot be reliably estimated, revenue from the contract is only recognized up to the limit of the costs incurred in the contract that are likely to be recovered. When the profit or loss on a construction contract can be reliably estimated and it is likely to be profitable, the revenue from the contract is recognized over the contract term. When it is probable that the costs of the contract will exceed the total revenue from it, the expected loss is immediately recognized as an expense. To determine the appropriate amount to be recognized in a certain period, the percentage-of-completion method is used. The percentage of completion is determined in accordance with the costs incurred up to the date of the Statement of Financial Position as a percentage of the total estimated costs for each contract. Costs incurred in the year in relation to future activity on a contract are excluded from the contract costs when determining the percentage of completion. They are shown as inventories, prepayments or other assets, depending on their nature. Partial billing that has not yet been paid by customers and withholdings are shown under the “Trade and other receivables” heading. The gross amounts owed by customers for work in progress where costs incurred plus recognized profits (less recognized losses) exceed the partial billing are shown on the line “Customers, work completed pending certification” under the “Trade and other receivables” heading. On the contrary, gross amounts owed to customers for work in progress where the partial billing exceeds costs incurred plus recognized profits (less recognized losses) are shown as liabilities on the line “Prepayments from customers” under the “Trade and other payables” heading. Lastly, as stated in point 2.4.2 on measuring property, plant and equipment, for internal asset construction projects, the totality of the intra-Group revenues and profits are eliminated, so that said assets are shown at acquisition cost. 57 3 d) Revenues from services and transfer of know-how Service sales are recognized in the year in which the services are provided, using the completion of the specific transaction measured as a reference on the basis of the actual service provided as a percentage of the total service to be provided. Service revenues are recognized when the profit or loss on the transaction can be reliably measured, considering the percentage of completion of the service at the end of the reporting period. Consequently, revenues from services are recognized when it is probable that the Group will have received the benefits or economic yields derived from the transaction at the end of the reporting period and when the revenues and costs already incurred and those to be incurred in the future can be reliably measured. The Group generates revenue from the sale of the promotion of projects for thermosolar plants and installations, together with the transfer of site supervision and management and technology know-how. These revenues are passed on internally to the Group’s plants and are recognized by work completed certificates for the projects. As stated in point 2.4.2 on the measurement of property, plant and equipment, for internal asset construction projects, intra-Group revenues and profits and eliminated, so that said assets are shown at acquisition or production cost. Notwithstanding, for the items mentioned above, the revenues accrued on the projects over which joint control is held (see Note 35.5) are recognized for the percentage that is not eliminated by the consolidation method applied. e) Interest income Interest income is recognized using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, discounting the estimated future cash flows at the original interest rate on the instrument and recognising the discount as a decrease in interest income. Interest income on impaired loans is recognized when the cash is collected or on a cost recovery basis when the conditions are guaranteed. 2.24. Leases Leases in which the Group is the lessee and does not retain a significant part of the risks and rewards of ownership are classified as operating leases. Operating lease payments (net of any incentive received from the lessor) are charged to the Consolidated Income Statement under the “Other operating expenses” heading on a straight-line basis over the lease term. 58 3 The Group holds finance leases on assets for amounts of little significance (see Note 15). 2.25. Segment Reporting Information on the operating segments is presented on the basis of the internal information reported to the highest decision-making body. The highest decision-making body, which is responsible for assigning resources and measuring the performance of the operating segments, is Senior Management. Senior Management considers the business from a product standpoint. At product level, Management identifies the Solar Business Group’s principal lines of action as segments: a) Energy refers to the management, operation, maintenance and exploitation of thermosolar and photovoltaic plants and installations. In this segment, Abengoa Solar obtains revenue by selling energy in the market and carrying out operation, maintenance and exploitation tasks. b) Technology includes both the activity of promoting new plants and the sale of technology and components. In the promotion phase, Abengoa Solar seeks sites for solar plants and installations and takes the appropriate steps to obtain the permits and technical studies required to build them and bring them into operation, as well as financing. It receives fees for all the foregoing. As far as technology is concerned, revenue is obtained from the transfer of know-how and technology and the sale of key components for the solar plants that are of strategic importance to the Group. Abengoa Solar Management has decided that, for 2010, two of the segments that were defined separately in the 2009 financial reporting should be grouped together. Thus, the promotion and development of technologies are grouped into the segment called “Technology”, which covers both these activities. The definition for energy sales (“Energy”) remains unchanged. This change better represents the real situation of the business and its day-to-day management, as well as its strategy for the future. 59 3 Detailed information by business segment appears in Note 34 below. 2.26. Regulatory Aspects of Electricity Activities We set forth below the main regulatory aspects of the Spanish electricity market: Law 54/1997 of 27 November, on the Electricity Sector, and its subsequent implementing regulations, governs activities related to electricity supply: production or generation, transmission, distribution, marketing and intra-Community and international exchanges, together with the economic and technical management of the electricity system. This also includes self-producers and producers under the special regime governed by said Law. Royal Decree 661/2007 of 25 May, which governs electricity production under the special regime, lays down the methodology to update and systematise the legal and economic regime of electricity production activities under the special regime and establishes new regulations for electricity production under said special regime, while maintaining the basic reulatory structure. Royal Decree 1578/2008 of 26 September, on the remuneration of electricity produced through photovoltaic solar energy technology for installations later than the deadline for applying the remuneration of Royal Decree 661/2007 of 25 May for said technology. Order ITC /3519/2009 of 28 December, whereby access tolls were reviewed as from 1 January 2010, as well as the tariffs and premiums of installations under the special regime. Royal Decree-Law 6/2009 of 7 May, with respect to the special regime, aims to adopt an emergency measure that guarantees investors the necessary legal security and lays the bases for the establishment of new economic regimes that promote meeting the objectives sought: the attainment of power objectives by technology at a reasonable cost for the consumer and the technical development thereof to allow a gradual decrease in costs and, therefore, competition with conventional technologies, i.e. it seeks to prevent the objectives by technology described in Royal Decree 661/2007 from being exceeded. In November 2009 the Resolution of the Secretary of State for Energy was published in the Official State Gazette, which published the resolution adopted by the Council of Ministers on 13 November, 2009. This resolution concerned installations that had applied for registration in the Pre-assignation Register. 60 3 In 2009, Abengoa Solar entered total nominal power of 650 Mw in the Pre-assignation Register, to be added during the period 2010-2013. These plants are located in Andalusia (7), Extremadura (4) and Castilla-La Mancha (2). Royal Decree 1565/2010 of 19 November, which regulates and amends certain aspects concerning the activity of special-regime electricity production, amending certain articles of Royal Decree 661/2007 of 25 May. The annulment of the values of the regulated tariffs stated for type b.1.1. installations (in table 3 of Art. 36 of RD 661/2007) as from the twenty-sixth year should be highlighted. For Abengoa Solar, the installations affected by this change are those with photovoltaic technology. In Spain, the basic regulatory framework applicable to Abengoa Solar’s installations for electricity generation using thermosolar and photovoltaic technology is established in Royal Decree 661/2007 of 25 May, which regulates the activity of electricity production under a special regime (“Royal Decree 661/2007”). Among other aspects, said Royal Decree 661/2007 fixes the remuneration applicable to these installations (the main feature of which is the definition of regulated tariffs, premiums and upper and lower limits). Said remuneration model divides the plant’s operations into two basic periods: (i) the first 25 years that the plant is in operation and (ii) the period after the first 25 years that the plant is in operation. In the last two months of 2010, the following legislation was published regulating and amending certain aspects of electricity production under a special regime: Royal Decree 1565/2010 of 19 November and Royal Decree 1614/2010 of 7 December, together with Royal Decree-Law 14/2010 of 23 December, which put in place urgent measures to correct the tariff deficit in the electricity sector. International regulation: In the United States, the Federal Government regulates some environmental issues, while the State and local governments regulate the construction of electricity production installations, the sale of electricity to the retail market and some aspects concerning the environment and the granting of permits. - Electricity wholesaling and the transmission of electricity in the inter-State market through the Federal Energy Regulatory Commission, the competencies of which come from the Federal Power Act and the successive amendments and changes thereto, as well as other federal laws, such as the 1978 Public Utility Regulatory Policies Act (“PURPA 1978”), the 1992 Energy Policy Act (“EPACT 1992”) and the 2005 Energy Policy Act (“EPACT 2005”), which, among other things, revoked and replaced the 1935 Public Utility Holding Company Act by the 2005 Public Utility Holding Company Act (hereinafter, the “PUHCA 2005”). 61 3 Electricity transactions in the United States are either bilateral or take place in a single centralised market where electricity is purchased at the spot price at any given moment. - In October 2008, with the promulgation of the 2008 Emergency Economic Stabilization Act (“EESA”), which, among other things, sought to increase the flow of capital towards the renewable energy sector in the United States by prolonging the 30% federal investment tax credit (“ITC") for solar energy for a further eight years, until 2016, which was the first time that a tax incentive for investment in renewable energy had been extended for so long. The EESA also made it possible for regulated investment companies to apply for investment tax credits and allowed these tax credits to be offset against company taxes without reference to the upper limit on tax benefits previously fixed in the Alternative Minimum Tax rules. This trend was reinforced by the promulgation of the 2009 American Recovery and Reinvestment Act (“ARRA”), which was one of the first laws of the Obama Administration. The principal elements of the current federal incentive plan for renewable energy in the United States are described briefly below. - The investment tax credit (ITC): the ITC, which was created in 1978, currently offers a credit of 30% of the tax base of investments made in “eligible property” coming into operation between 2009 and 2016. The ITC will be reduced to 10% of the tax base for eligible property coming into operation after 31 December, 2016. The owner of this type of installations will be able to choose whether or not to apply the ITC, depending on each specific project, and only the owner may make this decision, i.e. nobody else may do so on its behalf. - A grant instead of the ITC: a project promoter may “monetise” the value of said tax incentives in some other way, for example, by entering into transactions with tax equity investors, who have excess tax capacity against which to use said tax benefits. Given the recent weakness of the tax equity market, the ARRA includes a provision that allows the promoters of new commercial solar energy projects coming into operation in 2009, 2010 or 2011 the option of receiving the same amount as they would have been able to claim as an ITC in cash from the United States Treasury Department. This option is also offered to solar energy projects the construction of which commences in 2009, 2010 or 2011 provided that they will come into operation before 2016. The Treasury cannot decide on these payments on a discretionary basis, but any amounts thus paid will be subject to refund if the project is disqualified within a fiveyear warranty period. 62 3 - Accelerated depreciation: Solar energy project promoters also benefit from the accelerated depreciation of certain solar energy equipment over a five-year period under the Modified Accelerated Cost Recovery System (“MACRS”), as provided in the 1986 U.S. Internal Revenue Code. Most equipment used in thermosolar energy (CSP – Concentrating Solar Power) and photovoltaic solar energy projects meets the requirements to apply the MACRS, which means enjoying other important tax benefits that are independent of the electricity output. The MACRS has been in existence since 1987 and, at present, there is no reason to think it will cease to be applied. - The Federal Loan Guarantee Program: the ARRA authorized the United States Department of Energy to guarantee certain credits or security for renewable energy projects, renewable energy production installations and electricity transport projects. Specifically, section 406 of the ARRA added to the Department of Energy’s previously-existing guarantee programs a new program under the provisions of section 1705 of the EPACT 2005, intended to foster the swift commencement of construction of renewable energy projects and renewable energy transport projects (Section 1705 Program). - Other: furthermore, the ARRA offers another 30% tax credit to promote the construction of facilities that manufacture products and components used in the “green economy” and authorised the issue of a series of new bonds with tax benefits that could be used to finance renewable energy projects and plants of this type. Pre-assignation Register On 7 May, 2009, Royal Decree-Law 6/2009 of 30 April was published and came into force (hereinafter, “RDL 6/2009”). In RDL 6/2009, certain measures for the energy sector were adopted. This new legislation directly affects all special-regime projects (except photovoltaic projects, which are expressly excluded because they are regulated by the specific legislation provided for in RD 1578/2008), since it imposes a new requirement in order to obtain said remuneration regime, consisting of being entered in the Pre-assignation Register created for this purpose, in order to acquire the right to receive the applicable remuneration regime (currently the regime provided for in RD 661/2007). For thermosolar projects that have not been pre-assigned, the Council of Ministers will have to approve a new legal regime. In accordance with the foregoing, all projects that have been registered will receive the economic regime provided for in RD 661/2007, provided that they meet the deadlines fixed for coming into operation. The Group has had 650 MW included in the Pre-assignation Register. 63 3 Abengoa Solar considers that it will be able to put the MW of each phase into operation by the dates fixed or, if applicable, will be able to apply certain measures for flexibility between phases established in the Resolution of the Secretary of State for Energy. In Abengoa Solar’s opinion, as a consequence of the aforementioned aspects, no significant additional liabilities will be incurred and it will not be necessary to write down any assets for a significant amount. Appendices IV and IX provide details of the electricity sector companies that were consolidated in 2010 and 2009, respectively. 2.27. Environmental assets Provisions for restoring the environment, restructuring costs and litigations are recognized when the Group has a present legal or implicit obligation as a result of past events, it is probable that an outflow of resources will be necessary to settle the obligation and the amount can be reliably estimated. Note 3.- Accounting Estimates and Opinions 3.1. Accounting Estimates. The preparation of Consolidated Financial Statements under IFRS-EU requires the use of assumptions and estimates that have an impact on the amount of the assets, liabilities, revenues and expenses and breakdowns related thereto. The estimates and assumptions made are based on, among other aspects, historical experience or other factors deemed reasonable given the events and circumstances considered at the end of the reporting period, the result thereof representing the basis for judgement of the carrying amounts of assets and liabilities that cannot be otherwise determined immediately. The actual results may differ from those estimated. An understanding of the accounting policies for these elements is vitally important in understanding the Consolidated Financial Statements. We set forth below information on the estimates and assumptions used for these items in accordance with IFRS-EU, which must be read jointly with the Notes to our Consolidated Financial Statements. The most critical accounting policies, which reflect management assumptions and estimates that are significant in determining amounts in the Consolidated Financial Statements, are as follows: 64 3 ‐ ‐ ‐ ‐ ‐ ‐ Impairment losses on fixed assets. Useful lives of property, plant and equipment and intangible assets. Estimates of provisions. Derivative financial instruments and hedges. Corporate income tax and recoverable value of deferred tax assets Revenue from construction contracts. Some of these accounting policies require Management to apply significant judgements in order to elect the appropriate assumptions to determine the estimates. These assumptions and estimates are based on our historical experience, the advice of expert consultants, forecasts and other circumstances and expectations at the year end. Our assessment is considered in relation to the global economic situation of the industries and regions where the Group operates, taking the future development of our business into account. Given their intrinsic nature, these judgements are subject to a inherent degree of uncertainty and, therefore, the actual results may differ materially from the estimates and assumptions used. If this is the case, the values of the assets and liabilities will be adjusted. At the date of preparation of these Consolidated Annual Financial Statements, no significant changes in the estimates are expected and, therefore, there are no plans for significant adjustments to the values of the assets and liabilities recognized at the year end. Although these estimates were made using the best information on the events analysed at each year end, it is possible that future events will force them to be modified (increased or decreased) in forthcoming years. In accordance with IAS 8, this would be done prospectively, recognising the effects of the change in estimate in the relevant Consolidated Income Statement. Our key accounting policies are described in greater detail in Note 2. a) Impairment losses on fixed assets As described in Note 2.7, in accordance with the applicable accounting legislation, Abengoa Solar tests for impairment of non-financial assets whenever any event or change in circumstances indicates that the carrying amount may not be recoverable. These impairment tests require an estimate of the future cash flows of the assets and the most appropriate discount rate in each individual case. Abengoa Solar believes its estimates in this respect to be appropriate and consistent with current market circumstances and that its discount rates reflect the risks relating to each asset appropriately. 65 3 b) Useful lives of property, plant and equipment and intangible assets Abengoa Solar determines the estimated useful lives and the related depreciation or Amortization expense for its property, plant and equipment and intangible assets (see Notes 2.3 and 2.4). For assets related to the energy sector, this estimate is based on the forecast life cycles for use of the solar plants and, in certain cases, independent experts’ reports. Notwithstanding, said estimates could change significantly as a consequence of technical innovations in response to the sector’s future development. The depreciation or Amortization charges are increased when the useful lives are shorter than the previously-estimated lives, or technically-obsolete or non-strategic assets that have been abandoned or sold are written down or derecognized. c) Estimation of provisions As stated in Notes 2.20 and 18, Abengoa Solar recognizes certain provision for which it makes its best estimate. In the case of dismantling provisions, it makes an annual review of the costs that, if applicable, would be incurred in the dismantling and definitive closure of its electricity-generating installations. For provisions for warranties on the products manufactured by the Group (mirrors), the warranty risk associated to each contract with a customer is estimated in accordance with experience, the term of the warranty period and the technical requirements agreed and the liability to be recognized at the end of each reporting period is estimated. d) Fair value of derivatives and other financial instruments As described in Note 2.9, the Group uses derivative financial instruments in order to mitigate financial risks derived from exchange and interest rate fluctuations. Financial derivatives are recognized at fair value at the commencement of the contract and said value is subsequently adjusted in the Consolidated Statement of Financial Position at the end of each reporting period. The method for recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument and the nature of item hedged, which is explained in Note 2.9. The data used to calculate the fair value financial derivatives are based on the use of observable market inputs that are available, based either on quoted market prices or the application of measurement techniques (Level 2). The measurement techniques used to calculated the fair value of financial derivatives include the discounting of future cash flows associated thereto, using assumptions based on market conditions at the measurement date or prices established for similar instruments, among others. The measurement of derivative financial instruments requires the use of considerable professional judgement. 66 3 e) Corporate income tax and recovery of deferred tax assets The Group is subject to corporate income tax under various jurisdictions (see Notes 2.18 and 20). The corporate income tax provision for the year is calculated on the basis of the tax legislation in force at the date of the Statement of Financial Position in countries where subsidiaries and associates operate and generate taxable income. Subsidiaries not included in the tax consolidation of Abengoa, S.A. settle their corporate income tax under numerous tax jurisdictions all over the world. Calculating corporate income tax requires interpretations of the tax legislation applicable to each Group company. There are a number of factors, linked primarily, but not exclusively, to changes in both current tax laws and the interpretation thereof, which require Group Management to make estimates. Consequently, additional contingencies and/or liabilities might arise from, among other items, possible different interpretations of current tax legislation as a result of an inspection by the tax authorities. The recoverability of deferred tax assets is assessed when they are generated and subsequently at the end of each reporting period, in accordance with the evolution of the Group’s results forecast in its business plan. When making this assessment, Management considers possible reversals of deferred tax liabilities, projected taxable profits and tax planning strategy. This assessment is made on the basis of internal projections, which are updated to reflect the Group’s most recent operating trends. The Group’s current and deferred corporate income tax may be affected by events and transactions that arise in the ordinary course of business and/or by special non-recurring circumstances. The assessment of the appropriate amounts and the classification of the corporate income tax depend on several factors, including the estimated calendar for realisation of deferred tax assets and payment of corporate income tax. Actual collections and payments may differ significantly from those originally estimated as a result of changes in tax legislation or unforeseeable future transactions that affect the corporate income tax balances. Deferred taxes are determined using tax rates approved or about to be approved at the end of the reporting period of each company and expected to apply when the corresponding deferred tax asset is realised or the deferred tax liability is settled. 67 3 As stated in Note 20, at the date of formulation of the Consolidated Annual Financial Statements, the tax inspection of the consolidated tax group headed by Abengoa, S.A., of which the company Abengoa Solar España, S.A. forms part, was in progress, although no proposed tax adjustments had been notified. Parent company Directors consider that, although additional liabilities could arise from possible different interpretations of the tax legislation as a result of this inspection, these would not have a significant effect on the Consolidated Annual Financial Statements. This estimate has been made using the best information available and the circumstances at 31 December, 2010 and 2009, although the final outcome of the inspection cannot be predicted with certainty. f) Revenue from construction contracts As stated in Note 2.23, revenue from construction contracts is recognized using the percentage-ofcompletion method for contracts where the result of the contract may be reliably estimated and it is probable that it will generate profits. When the result of a construction contract cannot be reliably estimated, the revenue from the contract is recognized only up to the limit of the contract costs incurred that are likely to be recovered. The percentage of completion is determined in accordance with the actual costs of the contract incurred up to the date of the Statement of Financial Position as a percentage of the total estimated costs for each contract. Costs incurred in the year in relation to future activity on a contract are excluded from the contract costs when determining the percentage of completion. They are shown as inventories, prepayments or other assets, depending on their nature. When applying the percentage-of-completion method, estimates are made in relation to the total estimated costs of the contract, provisions related to the contract, the period of execution of the contract and the recoverability of claims. Over past years, the Group has established a sound project and internal control management system, monitoring each project regularly. As far as possible, the Group applies past experience to estimating the principal elements of construction contracts and uses objective data, such as physical inspections or third-party confirmations, as a basis. Although estimates relating to construction contracts are reviewed regularly on an individual basis, significant judgements are made and not all the possible risks can be specifically quantified. 68 3 Note 4.- Intangible Assets 4.1. The breakdown of the movements on the main categories of intangible assets at 31 December, 2010 and 31 December, 2009, including those generated internally and other intangible assets, was as follows: Cost Computer Software Other Intangible Assets Development Projects Total 92 41,389 563 42,044 Increases 430 29,990 329 30,749 Decreases (64) Balances at 31 December, 2008 (12) (25) (27) Changes in consolidation - - 1 1 Translation differences - (3,271) 124 (3,147) Total at 31 December, 2009 Increases Decreases Changes in consolidation Translation differences Reclasifications Other movements Total at 31 December, 2010 69 510 68,083 990 69,583 7,659 13,329 188 21,176 - - - - - - - - (4) - - (4) 129 372 - 501 - - (672) (672) 8,294 81,784 506 90,584 3 Accumulated Amortization Computer Software Development Projects Other Intangible Assets Total Balances at 31 December, 2008 (84) (41,010) (17) (41,111) Increases (35) (6,135) (9) (6,179) Decreases - - - - Changes in consolidation - - - - Translation differences - 3,221 14 3,235 Total at 31 December, 2009 (119) (43,924) (12) (44,055) Increases (provision) (587) (8,855) (19) (9,461) Decreases - - - - Changes in consolidation - - - - Translation differences - - - - (93) (112) - (205) - - (101) (101) (799) (52,891) (132) (53,822) Net balances at 31 December, 2009 391 24,159 978 25,528 Net balances at 31 December, 2010 7,495 28,893 374 36,762 Reclasifications Other movements Total at 31 December, 2010 This heading includes the intangible assets of Group companies that do not use Project Finance to execute their projects. Companies that use this type of finance are presented as Intangible Assets in Projects, as stated in Notes 2.5 and 6. Computer software includes the licence and implementation of the SAP R2 system that was acquired by a related company of the Simosa I.T. Group (which, in turn, passed this amount on to companies where said system has been implemented). The Group capitalised 7,349 thousand euros for this item in the year. Abengoa Solar makes an important R&D investment effort, intended to improve the performance of the thermosolar and photovoltaic plants, which is classified as Development Projects. The most significant variations in the year related primarily to development projects for an amount of 13,329 thousand euros (30,119 thousand euros in 2009). The assets are primarily related to the Solúcar Platform in Seville. Said assets are used to operate and test both parabolic-cylinder and tower thermosolar technologies applied at the Group’s other plants. In addition to this investment in Development, the Group carries on other Research activities that are recorded in the Consolidated Income Statement, the total effort in the year 2010 (including both Research and Development) being 22,120 thousand euros (41,780 thousand euros in 2009). 70 3 The useful economic life of Development Projects is based on the technical estimate of applicability of this technology, used continuously during the text phase and subsequent commercial operations of the generation plants that are or will be in operation. As stated in Note 16, there are some intangible assets, specifically Development Projects, that have been partially financed through official grants. Almost all the assets under development are constructed by related companies (primarily Abener Energía, S.A.) (see Note 35.3). At the end of the reporting period, the Group did not hold any significant future commitments with related companies for the construction of intangible assets (see Note 9.1.c). The net amount of Intangible Assets outside Spanish territory is not significant. No financial expenses arising on the financing of intangible assets were capitalised in either year. There are no intangible assets with indefinite useful lives. Likewise, there are no intangible assets with restricted ownership or pledged in guarantee of liabilities.. According to the information available to the Directors, it was not necessary to recognize any impairment losses on intangible assets for significant amounts during the year. Note 5.- Property, Plant and Equipment 5.1. The breakdown of and movement on the different categories of property, plant and equipment at 31 December, 2010 and 31 December, 2009 were as follows: 71 3 Cost Balances at 31 December, 2008 Increases Decreases Changes in consolidation Translation differences Total at 31 December, 2009 Increases Decreases Changes in consolidation Translation differences Reclasifications Other movements Total at 31 December, 2010 Accumulated Depreciation Balances at 31 December, 2008 Increases Decreases Changes in consolidation Translation differences Reclasifications Consolidation adjustments Total at 31 December, 2009 Increases (provision) Decreases Changes in consolidation Translation differences Reclasifications Other movements Total at 31 December, 2010 Land & Buildings 65.831 27 8.669 74.527 15.369 4.150 12.878 402 107.326 Land & Buildings (996) (27) (15) (1,038) (225) (2,030) (104) (3.397) Plant & Machinery 8.401 21 (76) 186 8.532 3.612 (211) 95 21.482 (1.730) 31.780 Prepayments & PPE in the course of construction 15.153 1.529 (1.344) (3.571) 11.767 27.258 (263) 260 39.023 Other property, plant & equipment 2.030 375 (55) (271) 2.079 515 49 1.127 3.770 Plant & Machinery (3,387) (284) 5 (45) (3,711) (6,321) (155) (4,274) (14.461) Prepayments & PPE in the course of construction - Other Property, Plant & Equipment (598) (193) 6 (5) (790) (1,017) 65 (1.742) Total (4,981) (504) 11 (65) (5,539) (6,546) (155) (2,030) (5,395) 65 (19.600) Other Property, Plant & Equipment Total Total 91.415 1.952 (1.475) 5.013 96.905 46.754 (211) 4.031 35.747 (1.328) 181.898 (57,332) (57,332) (11,901) 20,636 (4,796) (53,393) - Prepayments & PPE in the course of construction - - - - Net balances at 31 December, 2009 16,157 4,821 11,767 1,289 (57,332) (57,332) (11,901) 20,636 (4,796) (53,393) 34,034 Net balances at 31 December, 2010 50,536 17,319 39,022 2,028 108,905 Impairment Balances at 1 January, 2009 Impairment Total at 31 December, 2009 Impairment Reversal of impairment Transfer Total at 31 December, 2010 Land & Buildings 72 Plant & Machinery - 3 This heading includes the property, plant and equipment of the Abengoa Solar companies that do not use Project Finance to construct their assets. The companies that have this type of financing are presented as Property, Plant and Equipment in Projects, as stated in Notes 2.5 and 6. Principal variations in the year 2010 The most significant variations that took place in 2010 primarily correspond to: - Increases due to the acquisition of land in the United States by the company Abengoa Solar Inc. for 9,368 thousand euros. - The increase in the “Transfers” line as a result of the transfer made in order to improve the presentation of certain assets that were classified as Property, Plant and Equipment in Projects in the previous year (see Note 6.2) for an approximate amount of 53 million euros (47 million euros net of depreciation). - The decrease in the “Transfers” line of the assets of the company Arizona Solar One Llc due to transfer to Property, Plant and Equipment in Projects for 26,638 thousand euros, since the company is now considered a project company because it has obtained new non-recourse financing to carry on its activity (see Note 14). - The increase in the line “Prepayments and PPE in the course of construction” for project promotion expenses of 7,821 thousand euros in the United States, as well 9,980 thousand euros for the same item in companies for which the financing is expected to be concluded in 2011. - The increase in the line “Prepayments and PPE in the course of construction” for surface rights of 9,457 thousand euros in companies in the project promotion phase. Principal variations in the year 2009 No significant variations in Property, Plant and Equipment arose in the year 2009. Impairment charges for the year 2010 The principal impairment charge recognized in the year 2010 related to the investment made in the promotion of the Mojave project for an amount of 10,546 thousand euros. As previously occurred in 2009, problems still exist in obtaining financing for the development of said project and, considering that the contracts signed with the electricity distribution company for construction of the solar plant are subject to financing being obtained, the recoverability of this amount in the medium term has been classified as doubtful. 73 3 The amount of this impairment, together with the charge made in the year 2009, relates to the excess of the carrying amount (37,275 thousand euros) over the recoverable amount (5,847 thousand euros), the latter being considered as the fair value less selling costs. On 21 December, 2010, the financing of the Solana project was concluded for an amount of 1,450 million dollars, meeting the requirements of the 1603 Program sponsored by the United States Treasury Department. Therefore, having concluded the financing as stated in Note 14, Group Management decided that the reasons for which the impairment of the assets acquired was considered probable to have disappeared. Therefore, at the end of the 2010 reporting period, it reversed the impairment for an amount of 20,636 thousand euros, which is shown in the movement “reversal of impairment” (see explanation of the 2009 impairment charges). The line “Transfers” includes the impairment relating to the companies transferred from the Property, Plant and Equipment in Projects heading, as stated above, to improve the presentation of certain assets classified under said heading in the preceding year. Impairment charges for the year 2009 The impairment charges recognized in 2009 corresponde to a write-down of the carrying amounts of certain items of property, plant and equipment to their recoverable amount. The circumstances identified at the end of the 2009 reporting period as indications of possible impairment were probable external factors relating to the legal, economic, financial and/or market environment in which said items operated or were intended to operate. This impairment led to the recognition of a loss in the Consolidated Income Statement under the heading “Amortization, depreciation and impairment” for an amount of 62,128 thousand euros in 2009, distributed between 57,332 thousand euros under the Property, Plant and Equipment heading and 4,796 euros under the Property, Plant and Equipment in Projects heading (see Note 6.2). The amount recognized under Property, Plant and Equipment relates specifically to the impairment of land acquired in the States of Arizona and California in the United States, for an amount of 32,616 thousand euros, and to constructions and promotion expenses for these assets, for an amount of 24,716 thousand euros, for the development of these two projects related to thermosolar technology electricity generation (Solana –Arizona- and Mojave –California-). 74 3 The amount of said impairment is the excess of the carrying amount (79,413 thousand euros) over the recoverable amount (22,080 thousand euros), the latter being considered to be the fair value of the land less selling costs. The carrying amount of the land associated to these projects is based on their industrial use. Given the problems existing in the financing for development of the projects and considering that the contracts signed with the energy distribution company for construction of the solar plants were subject to financing being obtained, they were then considered as land for non-industrial use for the purposes of estimating their fair value. Thus, the fair value of the impaired assets was calculated on the basis of the best information available on the value of land for non-industrial use, so that it reflected the amount that could be obtained in a sale transaction on this type of asset between interested and informed parties, after selling costs had been deducted. The assets related to the solar activity in the United States have not been classified as assets held for sale because the Group does not intend to recover their value by selling them, which is a requirement of IFRS 5. However, when determining the fair value less selling costs of said assets, the Group has considered the sale thereof as the most probable recovery method, taking into account the financial difficulties associated thereto and, consequently, the delays in the development of these projects. These solar plants are among the largest constructed to date and require a significant investment of funds obtained through borrowings. Due to market conditions in the year 2009, the Group was not certain that it would obtain the financing for these projects. 5.2. As stated in Note 2.4, there are surface right options in favour of the Group on land belonging to third parties and related parties, which are included as an increase in the value of the asset. This land is used to exploit, operate and maintain solar plants. 5.3. The Property, Plant and Equipment has no kind of mortgage guarantee or similar. Guarantees on Property, Plant and Equipment are set forth in Note 6. 5.4. Interest costs on these assets have not been capitalised because Property, Plant and Equipment comprises assets that are not in the construction phase and do not, therefore, qualify as eligible assets, as stated in Note 2.6. 5.5. It is Group policy to take out all the insurance policies deemed necessary to cover any possible risks 75 3 that might affect the Property, Plant and Equipment. 5.6. The Group has no Property, Plant and Equipment outside Spain that belongs to companies whose registered office is in Spain. 5.7. Property, Plant and Equipment in currencies other than the euro and located outside Spain, is 24,183 thousand dollars (26,202 thousand dollars in 2009), net of accumulated depreciation and impairment. The associated exchange differences are shown in the movement table of Note 5.1. These assets are in the United States. 5.8. Property, Plant and Equipment acquired from related companies did not represent significant amounts in either of the two years. The Group did not hold significant future commitments for the construction of Property, Plant and Equipment (other than Projects) with related companies at the year end (see Note 9.1.c). 5.9. In the cases of investments in Property, Plant and Equipment on owned land or land owned by third parties, Abengoa Solar has estimated the costs of dismantling or removing the items affected and the cost of restoring the site on which they stand (see Note 18). 5.10. As stated in Note 16, there are items of Property, Plant and Equipment that have been financed through official grants. The gross amount of subsidised property, plant and equipment was 9,360 thousand euros at 31 December, 2010 (8,593 thousand euros in 2009). Note 6.- Fixed Assets in Projects As stated in Note 2.5, in order to manage its business, the Group classifies its portfolio of intangible assets and property, plant and equipment in accordance with the type of financing obtained to develop them. Fixed Assets in Projects includes the intangible assets and property, plant and equipment of those companies that have the corporate purpose of developing a project consisting of the design, construction, financing, operation and maintenance of an owned project that is financed through Project Finance, i.e. non-recourse financing for projects (see Note 14). This Note provides both details of the fixed assets attached to said projects and any other relevant information concerning the assets (excluding details of the non-recourse financing and guarantees applied to the projects, which are described in Note 14 below). 76 3 As stated in Note 1.2, Abengoa Solar uses related companies, in which Abengoa Solar, S.A. (parent company) holds an interest, to construct its solar plants, primarily Abener Energía, S.A., Teyma gestión de contratos de construcción e ingeniería, S.A. and Teyma USA & Abener Engineering, (See Note 35.3) Intangible Assets in Projects 6.1. The breakdown of intangible assets in projects and movement on these accounts at 31 December, 2010 and 31 December, 2009 are shown below: Cost Balances at 31 December, 2008 Increases Decreases Changes in consolidation Translation differences Total at 31 December, 2009 Increases Decreases Changes in consolidation Translation differences Reclasifications Other movements Total at 31 December, 2010 Computer Software 127 4 131 (131) - (84) (39) 70 (53) (10) 63 - Development Projects (3,267) (2,182) (26) (5,475) (2,086) 104 (64) (7,521) Net balances at 31 December, 2009 78 Net balances at 31 December, 2010 - Accumulated Amortization Balances at 31 December, 2008 Increases Decreases Changes in consolidation Translation differences Total at 31 December, 2009 Increases (provision) Decreases Changes in consolidation Translation differences Reclasifications Other movements Total at 31 December, 2010 Computer Software Development Projects 53,319 69 (366) 53,022 364 (168) 53,218 34 11 157 0 202 (202) - Other Intangible Assets Total 53,480 84 157 (366) 53,355 364 (501) 53,218 0 - Total (3,351) (2,221) 44 (5,528) (2,086) (10) 167 (64) (7,521) 47,547 202 47,827 45,697 - 45,697 No significant variations took place in the years 2010 and 2009. 77 Other Intangible Assets 3 The Development Projects column includes the first tower thermosolar plant in the world, which has been in commercial operation since May 2007 (PS10). This plant generates clean energy able to supply 5,500 homes per year. It was built by a company related to the Group. Development Projects guaranteed financial debt of 38,407 thousand euros in 2010 (39,774 thousand euros in 2009), included in Note 14. As stated in Note 16, there are intangible assets in projects financed through official grants. The gross amount of subsidised intangible assets in projects was 1,202 thousand euros at 31 December, 2010 (same amount in 2009). There are no intangible assets in projects outside Spanish territory. According to the information available by the Directors, it was not necessary to recognize impairment losses for significant amounts on the intangible assets in projects during the year. There are no intangible assets in projects with indefinite useful lives. Likewise, there are no intangible assets in projects with restricted ownership. Property, Plant and Equipment in Projects 6.2. The breakdown of the different categories of property, plant and equipment in projects at 31 December, 2010 and 31 December, 2009 and movement on these accounts during the years are shown below: 78 3 Cost Balances at 31 December, 2008 Increases Decreases Changes in consolidation Translation differences Reclasifications Other movements Total at 31 December, 2009 Increases Decreases Changes in consolidation Translation differences Reclasifications Other movements Total at 31 December, 2010 Accumulated Amortization and Depreciation and Impairment Balances at 31 December, 2008 Increases (provision) Impairment Decreases Changes in consolidation Translation differences Reclasifications Other movements Total at 31 December, 2009 Increases (provision) Impairment Decreases Changes in consolidation Translation differences Reclasifications Other movements Total at 31 December, 2010 Net balances at 31 December, 2009 Net balances at 31 December, 2010 Land and Constructions 14,575 39,338 12,447 66,360 9,836 Plant and Machinery 101,145 6,174 (132) 117,986 (8,050) 217,123 15,521 (17,235) (238) 6,327 728,463 65,050 961,107 Prepayments and PPE in the course of construction 471,312 287,312 (164) (117,986) 640,474 707,614 Other Property, Plant and Equipment 767 355 1,122 (11,078) (1,113) (760,938) (11,508) 563,451 Land and Constructions (4,796) (4,796) 4,931 (135) - Plant and Machinery (2,164) (9,475) (715) (12,354) (22,666) 4,282 (30,738) Prepayments and PPE in the course of construction - 61,564 204,769 65,050 930,369 (1,124) 2 Other Property, Plant and Equipment Total 587,799 333,179 (296) 4,397 925,079 732,971 (28,313) (1,351) (27,272) (11,506) 1,589,608 (247) (445) (692) 1,017 (325) - Total (2,164) (9,722) (4,796) (1,160) (17,842) (22,666) 10,230 (460) (30,738) 640,474 430 907,237 563,451 - 1,558,870 Principal variations in the year 2010: The most significant variations that took place in the year 2010 relate primarily to the increase, in the line “Increases”, due to the execution of new thermosolar technology plant projects, basically as a result of progress in projects located in Spain and the United States, making investments of more than 700 million euros in the construction of the plants Solacor Electricidad Uno, S.A, Solacor 79 3 Electricidad Dos, S.A., Solaben Electricidad Dos, S.A., Solaben Electricidad Tres, S.A., Helioenergy Electricidad Uno, S.A., Helioenergy Electricidad Dos, S.A., Arizona Solar One, LLC, Solnova Electricidad S.A., Solnova Electricidad Tres, S.A. and Solnova Electricidad Cuatro, S.A. In 2010, the line “Transfers” shows the completion and start up of the thermosolar technology plants Solnova Electricidad, S.A., Solnova Electricidad Tres, S.A. and Solnova Electricidad Cuatro, S.A., which came into operation during the year. Likewise, the line “Changes in the consolidated group” shows a 50% decrease in the balance due to the change in the group relating to the companies Helioenergy Electricidad Uno, S.A. and Helioenergy Electricidad Dos, S.A., which totalled 28,313 thousand euros, when these companies changed from full consolidation to the propotional method (see Note 2.2.2). Principal variations in the year 2009 The amounts included on the line “Transfers” in the year 2009 show primarily the transfer of property, plant and equipment in the course of construction, due to the commencement of the activity of PS-20, together with the purchase and sale of land between parent companies and projects. Additionally, the variations in the year 2009 relate basically to the progress in the construction of the thermosolar plants, with both tower and parabolic-cylinder technology, located on the Solúcar Platform. In the year 2009, the PS-20 Thermosolar Tower came into operation. 6.3. As stated in Note 2.4, there are surface rights in favour of the Group on land belonging to third parties and related companies. These rights are shown as an increase in the value of the asset. This land is used for the exploitation, operation and maintenance of solar plants. 6.4. Almost all the property, plant and equipment in projects has been contracted to related companies under the EPC (turnkey) contracts signed with these companies. The amount of the property, plant and equipment constructed by related companies was 1,340,800 thousand euros in 2010 (799,689 thousand euros in 2009). 6.5. Future commitments for construction of property, plant and equipment with related companies totalled 2,004,448 thousand euros (see Note 9.1.c), relating to the contracts signed for the construction of the plants in progress. At the 2009 year end, Abengoa Solar held signed contracts 80 3 for the construction of thermosolar technology plants the execution of which was pending completion for a total amount of 95,059 thousand euros. 6.6. According to the information available to the Directors, it was not necessary to recognize impairment losses of significant amounts on property, plant and equipment in projects. 6.7. The property, plant and equipment in projects is placed as a guarantee for repayment of the respective debt from the Project Finance, broken down in Note 14. The amount of the property, plant and equipment guaranteeing such debt is the whole of Property, Plant and Equipment in Projects. 6.8. Financial costs capitalised during the year 2010 were 31,860 thousand euros (28,387 thousand euros in 2009), which related to interest accrued on debt with financial institutions and subordinated debt at average rates of between 1.76% and 4.76% (3.84% and 4.57% in 2009) and the interest on credit contracts with Abengoa, S.A. at a rate of 8.35% in 2010 (6.99% in 2009). 6.9. As stated in Note 16, there are items of property, plant and equipment in projects financed through official grants. The amount of the subsidised property, plant and equipment in projects is 3,327 thousand euros. 6.10. Group companies follow the policy of taking out all the insurance policies deemed necessary to cover any possible risks that might affect the property, plant and equipment in projects. 6.11. The Group does not have any property, plant and equipment in projects outside Spain that belongs to companies whose registered offices are in Spain. 6.12. Property, plant and equipment in projects in currencies other than the euro and located outside Spain is 199,898 thousand dollars, net of accumulated depreciation. The associated exchange differences are shown in the movement table of Note 6.2. These assets are in the United States. At 31 December, 2009, no assets were held in currencies other than the euro. 6.13. In the cases of investments in property, plant and equipment on own land or land owned by third parties, Abengoa Solar has estimated the costs of dismantling or removing the elements affected and the cost of restoring the site on which they stand (see Note 18). 81 3 Note 7.- Investments in Associated Companies The breakdown of investments in associated companies at 31 December, 2010 and 31 December, 2009 was as follows: Balance at 31.12.09 Construcciones Metálicas Mexicanas Comemsa, S.A. de C.V. Cedisolar, S.A. Changes in consolidated group Taken to profit and loss Company 2,334 Balance at 31.12.10 487 2,821 2,495 2,495 Evacuación Valdecaballeros 2009 S.L. 1,024 Evacuación Villanueva del Rey, S.L. - - - - 17 17 228 228 Shams One Company LLC Shams Power Company PJSC Fundación Soland Total 4,829 Balance at Company Taken to profit and loss 31.12.08 Construcciones Metálicas Mexicanas Comemsa, S.A. de C.V. 487 2,155 30 30 1,299 6,615 Changes in consolidated group Balance at 31.12.09 189 (10) 2,334 - - 2,495 2,495 2,155 189 2,485 4,829 Cedisolar, S.A. Total 1,024 As stated in Note 2.21, the Group has 7 companies as investments in associated companies, none of which is listed. The Group’s share in the profits or losses of its main associate, Construcciones Metálicas Mexicanas Comemsa, S.A. de C.V., and its share in the assets thereof (including goodwill and liabilities) are shown below: Construcciones Metálicas Mexicanas Comemsa, S.A. de C.V Country of incorporation Assets Liabilities Profit/Loss % interest At 31 December, 2010 Mexico 13,554 11,297 487 25% At 31 December, 2009 Mexico 29,600 23,440 755 25% The rest of the associated companies do not represent amounts of sufficient significance to be further broken down in the Consolidated Annual Financial Statements. All the notifications necessary have been made to the companies in which an interest of more than 10% is directly or indirectly held, in compliance with Art. 155 of the Capital Companies Act. There were no commitments to investments in associated companies in either of the years. 82 3 There are no restrictions on the transfer of funds to the investor in any of the associated companies. Note 8.- Inventories 8.1. The composition of inventories at 31 December 2010 and 31 December, 2009 was as follows: Amount at 31/12/2010 Items Raw materials and other supplies 5,243 Work in progress and semi-finished goods Projects in progress Finished goods Advance Payments Impairment Total Amount at 31/12/2009 7,402 95 292 17,372 17,558 679 849 14,797 9,485 -11,382 -3,437 26,804 32,149 As stated in Note 2.11, the Inventories heading includes: ‐ The value of the necessary raw materials acquired for manufacture of parabolic mirrors for thermosolar energy plants made by the companies Rioglass Solar, S.A. and Rioglass Solar Dos, S.A., together with the manufacturing expenses incurred in the production of the mirrors. Once the production process is completed, the mirrors are classified as finished goods. ‐ The value of the raw materials necessary for the construction, assembly and sale of all kinds of metal and mechanical structures or objects, among other items, made by the company Eucomsa, S.A., together with the costs incurred in the manufacture thereof. While the asset is in the process of construction, the Group classifies the execution thereof as work in progress and semi-finished goods. ‐ The value of the costs incurred by the Group’s promotion companies (primarily Abengoa Solar España, S.A. and Abengoa Solar PV, S.A.) in thermosolar and photovoltaic promotion projects, such as the expenses of geotechnical studies, external engineering, approvals and costs necessary to obtain licences and permits, among other items, which are classified as projects in progress. The principal variation in the Inventories heading in the year 2010 related to the increase in prepayments to suppliers authorised for the commencement of the supply of tubes and turbines for thermosolar plants. 83 3 The impairment provision recognized in the year 2010 for a total amount of 7,945 thousand euros relates primarily to projects in progress, due to the impairment of photovoltaic technology modules and mechanisms in stock, the realisation of which is considered doubtful, for an amount of 7,244 thousand euros, as well as the impairment of promotion expenses incurred in Spain for certain thermosolar projects, for an amount of 653 thousand euros. The impairment loss of 3,437 thousand euros recognized in 2009 related to some photovoltaic technology components in stock, due to a drop in their market price. 8.2. The amount of inventories in companies outside Spanish territory was 128 thousand euros in the year ended 31 December, 2010 (691 thousand euros at the end of 2009). 8.3. There are no limitations on the availability of the inventories due to factors such as guarantees, pledges or bonds, except for normal project construction guarantees, which are released as the contractual milestones are met. 8.4. The Group holds several insurance policies to cover the risks to which inventories are subject. The cover of these policies is deemed sufficient. 8.5. The Group held firm commitments of 15,353 thousand euros for the acquisition of inventories at 31 December, 2010. At 31 December, 2009, there were no significant commitments for the acquisition of inventories. Note 9.Financial Risk Management and Information on Financial Instruments 9.1. Financial Risk Factors Abengoa Solar’s activities are exposed to various types of financial risk: market risk (including exchange rate risk, interest rate risk and price risk), credit risk, liquidity risk and capital risk. Abengoa Solar’s Risk Management Model attempts to minimize the potential adverse impact of such risks upon the Group’s financial performance. Risk management is controlled by the Corporate Finance Department of Abengoa S.A., which identifies and evaluates the financial risks in close collaboration with the Group’s operating units and quantifies them by project, area and company. See the financial instruments employed to cover certain risk exposures in Note 11. 84 3 The internal management rules provide written policies for global risk management and for specific areas such as foreign exchange risk, credit risk, interest rate risk, liquidity risk, use of hedging instruments and derivatives and investing excess liquidity. Both internal management rules and key control procedures in the Group are drawn up in writing and compliance is supervised by the Internal Audit Department. Each of the financial risks to which the Group is exposed in the course of its activities is set forth below: a) Market risk The Group’s activities fundamentally are exposed to financial risks deriving from changes in exchange rates and interest rates. In order to hedge these exposures, Abengoa Solar uses forward options and swaps for foreign currency and interest rate futures. As a general rule, it does not use derivative financial instruments for speculative purposes (see Note 11). ‐ Foreign exchange rate risk The Group operates internationally and, therefore, is exposed to foreign exchange risk. This risk arises when future commercial transactions and recognized assets and liabilities are denominated in a currency other than the company’s functional currency. In this respect, the Group’s main foreign exchange exposure relates to the United States dollar against the euro (see Note 2.22). In order to control foreign exchange risk, foreign currency forwards are used (see Note 11). The Group uses primarily the following currencies in the course of its activity: Average Exchange Rate US Dollar Mexican Peso Closing Exchange Rate 2010 2009 2010 2009 0.7551 0.7196 0.7484 0.6942 0.0598 0.0533 0.0606 0.0537 At 31 December, 2010, if the US dollar exchange rate had varied by +/- 10% in respect of the euro, all other variables remaining constant, the effect on the profit and loss account and reserves would not have been significant for either of the two years. Exchange rate hedges were not significant at 31 December, 2010 and 31 December, 2009 and, therefore, their sensitivity analysis is almost inappreciable (see Note 11). 85 3 ‐ Interest rate risk The Group actively manages its exposure to interest rate risk to mitigate its exposure to the variation in interest rates derived from borrowing bearing variable rates. Interest rate risk arises primarily from financial liabilities at variable interest rates (nonrecourse financing and corporate financing, see Notes 14 and 15, respectively). In this respect, the Group’s main exposure to interest rate risk relates to variable interest rates indexed to Euribor. Loans received at variable interest rates expose the Group to cash flow interest rate risk. In relation to interest rate risk, it is managed by the Group to minimize the impact of possible variations in the financial expense related to debt at variable interest by entering into interest rate derivatives. To control interest rate risk, basically swaps and interest rate options (caps) are used, which, in exchange for a premium, furnish protection against an upward evolution of the interest rate. Loans at fixed rates expose the Group to fair value interest rate risks. These loans are not hedged with any financial derivative. The financing of solar plant projects has the characteristic of being linked to the projects’ own flows. In this context, the objective is to try, as far as possible, to assure the flows by entering into hedges against possible interest rate variations, avoiding any potential subsequent changes in the profitability of the project provoked by a variation in said interest rates. These hedging mechanisms fall within the obligations that are often imposed by the financial institutions. A breakdown thereof is shown in Note 11. The interest rates used by the Group at 31 December, 2010 and 31 December, 2009 were as follows: Variable interest rate (Euribor 6M plus spread) Variable interest rate (LIBOR 3M plus spread) Fixed interest rate 31/12/2010 31/12/2009 1.44% - 4.97% 1.64% - 4.55% 0.75% - 0.80% - 17% 17% At 31 December, 2010, if the interest rate indexed to Euribor had varied by +/- 25 b.p., with all other variables remaining constant, the effect on the profit and loss account would have been +/- 3,302 thousand euros, due to the increase in the time value, and the impact on other reserves would have been +/- 30,471 thousands of euros, due primarily to the increase in value of the interest rate hedges with swaps and caps. 86 3 A breakdown of interest rate derivatives at 31 December, 2010 and 31 December, 2009 is given in Note 11. In the year ended 31 December, 2010, Abengoa Solar held hedges for between 70% and 100% of the notional value, with maturities up to 2030 and guaranteed average rates of 1.23% and 4.87%. In 2009, hedges were held for between 70% and 100% of the notional value, with maturities up to 2030 and insured average rates of 3.84% and 4.87%. The amounts of the financial debt at variable interest rates that was not hedged with interest rate derivatives at 31 December, 2010 and 31 December, 2009 were 704,974 thousand euros and 469,954 thousand euros, respectively, representing 39% and 43% of the debt, respectively. These unhedged amounts relate primarily to the financial liabilities, net, held with Abengoa, S.A. through the Centralised Treasury (see notes 12, 14 and 15). ‐ Price risk Energy sales price risk arises primarily from changes in tariffs or the selling price of energy in the organised market. Depending on the jurisdictions, electricity selling prices are determined (i) wholly or partially at the decision of the regulatory authorities in the form of fixed, tariffs, administrative procedures for fixing tariffs and/or incentives, or a combination of the foregoing; or (ii) long-term energy purchase contracts signed with distribution companies or other purchasers. In Spain, the Group’s main market, there are currently 193 MW (43 MW in 2009) in operation that apply the national long-term tariff systems for thermosolar energy provided for in Royal Decree 661/2007. Furthermore, there are other plants in the construction phase that have been entered in the special register provided for in Royal Decree-Law 6/2009 of 30 April, whereby determined measures in the energy sector were adopted. Provided they meet the requirements established in this Royal Decree-Law, they will also benefit from the tariff systems fixed in Royal Decree 661/2007 (see Note 2.26). Additionally, only a limited number of suppliers are currently in a position to supply certain specialised equipment that is used in the plants, such as mirrors, structures, tubes and steam turbines for PCC (Parabolic Cylinder Collector) technology. Although, in general, these suppliers supply the Group through subcontractors, Abengoa Solar is subject to the general availability of this equipment in the market. Possible bottlenecks in supply that affect the materials, components and equipment necessary to construct and operate the solar plants could have a significant negative impact on the business. Notwithstanding, the key component manufacturing activity allows Abengoa Solar to position itself favourably in comparison with other competitors who might be affected by occasional limitations on supply and the price volatility of certain components. 87 3 The price risk associated to financial assets available for sale is not significant. b) Credit risk The main financial assets exposed to credit risk derived from a third-party counterparty’s failure to meet its obligations are: a) investments in financial assets included in the balance of cash and cash equivalents (Note 13) b) non-current financial assets (Note 12) c) derivatives (Note 11) d) balances relating to trade and other receivables (Note 12) The maximum global amount of the Group’s exposure to credit risk is formed by the above mentioned items, since the Group has not granted credit lines for significant amounts to third parties, apart from those mentioned in Note 12 below. In relation to credit risk on investments in financial products (included in points a, b and c above), the counterparties are always financial institutions, with which a strict diversification policy is followed, taking into account their credit rating according to recognized international agencies and consisting of fixing maximum limits, which are reviewed on a regular basis. In the specific case of the restricted cash relating to the financing of solar plant projects, the financing agreements are most of the time the ones that fix the amounts that must be held as restricted cash usually also fix the conditions to be met by the financial products in which said obligations materialise. Most receivables relate to customers in different industries with contracts that require payments as the project progresses, upon provision of the service or upon delivery of the product. The Group’s normal practice is to reserve the right to cancel the work in the event of material breach of contract, especially non-payment. For more information on the counterparty risk of the items of trade and other receivables, Note 12 below gives details of the customers’ credit ratings and an analysis of the ageing of trade receivables, as well as the table of movement on the provision for receivables at 31 December, 2010 and 2009. 88 3 Most collection rights form part of the guarantee granted to the financial institutions that are taking part in long-term loans under Project Finance arrangements (see Note 14). Likewise, there is an pledge on the project accounts, which includes the debt servicing reserve accounts classified as “Cash and cash equivalents” (see Note 13). The Group considers that there is no concentration of credit risks in the balances exposed to this type of risk. c) Liquidity risk Abengoa Solar’s liquidity and financing policy is designed to ensure that it has sufficient funds available to fulfill its financial commitments. Abengoa Solar uses two main financing sources: - Non-recourse financing applied to projects, i.e. Project Finance, which, as a general rule, is used to finance any significant investment (see Notes 2.5 and 14). The debt repayment profile of each project is established in accordance with the fund-generating capacity of each business, within a range that varies according to the forecastability of the flows of each business and project. This allows for suitable financing in terms of timing and maturity, significantly mitigating the liquidity risk. As stated in Note 13, these financing contracts for solar plant projects establish the need to hold accounts (restricted cash) the availability of which is furnished as a guarantee of certain short-term obligations concerning the payment of the interest or principal of the debt. Said accounts are an additional guarantee against liquidity risk. Corporate financing, intended to finance the activity of the rest of the companies that are not financed as described above or that, although they have Project Finance, supplement their resources when said financing does not cover the whole investment. This financing is managed through Abengoa, S.A., the parent company of Abengoa Solar, which centralises the cash surpluses of the rest of the companies for distribution in accordance with Group needs (see Notes 2.17 and 15) and obtains the necessary funds in the bank and capital markets. To ensure a suitable level of debt repayment capacity in relation to cash-generating capacity, both Abengoa Solar and the companies in which it holds interests fix the following criteria and lines of action: 89 3 ‐ Maintaining a Debt Service Coverage Ratio (DCSR) for Group companies that hold Project Finance credit contracts. There have been no non-compliances in the financing contracts. ‐ The annual preparation of a Financial Plan by the Corporate Finance Department and its approval by the Board of Directors. This Plan includes all the financing needs and the way in which they will be covered. ‐ Fund-generating capacity to meet current and non-current financial obligation. To do this, there are corporate working capital lines and long-term non-recourse financing granted by different financial institutions (Project Finance). In relation to the latter, see Note 14 for the amount granted and the balance drawn at 31 December, 2010 and 2009, including a breakdown of the new financing lines signed in 2010 that have not yet been used. ‐ In all cases where there are commitments to new investments, said commitments are usually covered by specific financing prior to their execution. As set forth above, there is a diversification of financing sources, which try to avoid concentrations that could affect the working capital liquidity risk. Management monitors the Group’s liquidity reserve forecasts (which cover credit availability – Note 14-) and cash and cash equivalents –Note 13-) on the basis of the expected cash flows. The table below analyses the Group’s non-derivative financial liabilities, grouped by maturity date considering the remaining period from the end of the reporting period to maturity of the contract. The amounts shown in the table relate to non-discounted future contractual cash flows at 31 December, 2010: Financial Liability 2011 Non-recourse financing (Note 14) Loans with credit institutions (Note 15) 2012 2013 140,510 37,096 2014 44,953 Subsequent 51,104 1,059,670 5,332 1,182 - - 1,311 5,660 Trade and other payables (Note 17) 654,293 - - Purchase commitments (Note 19) 824,161 1,151,500 456,900 - - 57,947 60,634 59,115 57,230 509,000 Estimated interest payable over the useful lives of the loans 90 3 The contractual maturities of derivative financial liabilities that are settled for a net amount are shown in Note 11. Derivatives settled for a net amount include the swaps that the Group uses to manage the variable interest rate risk profile. The above table does not show the net balance payable on the financing granted by Abengoa, S.A. as the centralised treasury for a net amount of 445,099 thousand euros, classified as “Corporate financing” in non-current liabilities (525,827 thousand euros) and “Financial receivables” in non-current assets (80,728 thousand euros) (see Notes 12 and 15). Either of the parties may end, partially or fully, the net debt from this financing, even when it does not have a specific maturity, with three months’ prior notice. At the 2010 year end, its classification reflects the parties’ wishes to maintain maturity at more than 12 months. d) Capital risk management The Group manages its investments in capital to ensure that the subsidiaries are assured continuity from the point of view of their equity situation, maximising the return for shareholders by optimising the structure of equity and borrowing in the liabilities of the respective statements of financial position. In this respect, the Group is using the following channels for growth: - Cash flows generated by its conventional business (energy sales, technological components and project promotion development); - Financing of new investments through non-recourse financing; - Corporate financing through the ultimate parent, Abengoa, S.A.; - Search for external partners to participate in new projects. The Group’s optimal level of debt is not fixed on the basis of a global ratio of debt over own resources, but by employing different criteria in accordance with the different levels into which the debt is structured. In the case of solar plant projects, each project has a level of debt linked to its operational variables or prospects of future flows. In this respect, the high debt level is justified by the existence of long-term projects with foreseeable recurring flows, always seeking borrowing that is suitable for the project to be undertaken. 91 3 Capital management is carried out by the Group’s Strategic Committee, whose approach concentrates on the increase in the value of the business in the long term, both for shareholders and investors and for employees and customers. The objective is a constant and sustained attainment of results through organic growth. For this purpose, it is necessary for there to be a balance in the business between control over financial risks, combined with the degree of flexibility required to attain said objectives. For activities financed by non-recourse financing, a target leverage level is assigned to each project, based on cash-generating capacity and the existence, generally speaking, of contracts that endow these projects with a highly recurrent and predictable cash-generating capacity. In general, relatively high leverage levels are reached. Likewise, certain subsidiaries are obliged to meet a series of financial ratios throughout the lives of the loans, which forces them to maintain a certain level of own resources (Note 14). 9.2. Information on Financial Instruments The Group’s financial instruments consist primarily of deposits, trade and other receivables, derivatives, suppliers and loans. The financial instruments by category, reconciled with the items on the Statement of Financial Position, were as follows: Category Notes Loans and receivables / payables at amortized cost Assets / liabilities at fair value Hedging derivatives Available for sale Total at 31.12.10 Financial assets available for sale 10 - - - - - Financial derivatives 11 - 21,216 13,070 - 34,286 Financial receivables 12 467,680 - - - 467,680 Trade and other receivables 12 177,106 - - - 177,106 Cash and cash equivalents 13 220,425 - - - 220,425 865,211 21,216 13,070 - 899,497 1,333,333 - - - 1,333,333 Total financial assets Non-recourse financing 14 Corporate financing 15 623,096 - - - 623,096 Trade and other payables 17 654,293 - - - 654,293 Financial derivatives 11 2,332 58,454 - 60,786 2,332 58,454 - 2,671,508 Total financial liabilities 2,610,722 92 3 Category Notes Financial assets available for sale 10 Financial derivatives 11 Loans and receivables / payables at amortized cost Assets / liabilities at fair value Hedging derivatives Available for sale Total at 31.12.09 - - 224 224 - 12,604 1,353 - 13,957 Financial receivables 12 192,111 - - - 192,111 Trade and other receivables 12 146,087 - - - 146,087 Cash and cash equivalents 13 Total financial assets 79,840 - - - 79,840 418,038 12,604 1,353 224 432,219 Non-recourse financing 14 885,637 - - - 885,637 Corporate financing 15 247,299 - - - 247,299 Trade and other payables 17 374,613 - - - 374,613 Financial derivatives 11 - - 41,873 - 41,873 1.507.549 - 41.873 - 1.549.422 Total financial liabilities The fair value of assets and liabilities measured at amortized cost is considered to be subject, primarily, to a variable interest rate indexed to market rates and, therefore, said value is considered to be similar to the carrying amount, except for financial liabilities indexed to a fixed interest rate, the fair value of which is broken down in Note 14. Balances maturing at no more than one year are measured at nominal value, provided that the effect of not discounting the flows is not significant. Financial instruments measured at fair value are set forth below, in accordance with the following classification for measuring the fair value: - Level 1: Quoted prices in active markets for identical assets or liabilities. - Level 2: Measured in accordance with market prices that are observable but not quoted, either using direct prices or by applying valuation models. - Level 3: Measured in accordance with non-observable market data. All the Group’s financial derivatives measured at fair value are at Level 2 of the fair value measurement hierarchy. The measurements made by the Group are compared, on a monthly basis, with those received from the counterparty banks in the transactions. Financial instruments classified as Level 2 are financial assets available for sale. There were no significant changes in the fair value of the Level 3 assets and liabilities in 2010 and 2009. Note 10.- Financial Assets Available for Sale 10.1 The breakdown of financial assets available for sale at 31 December, 2010 and 31 December, 2009 was as follows: 93 3 Financial Assets Available for Sale Balances At 31 December, 2008 18.298 Additions 197 Gains/losses transferred to equity 1,748 Disposals (20,019) At 31 December, 2009 224 Additions ‐ Gains/losses transferred to equity - Disposals ‐ Other movements (224) At 31 December, 2010 - Less: non-current portion - Current portion - Available-for-sale financial assets comprise the investment in the company Heliovolt, in which shares for an amount of 2,937 thousand euros were held (same amount for 2009). This investment represents a percentage interest of 2.64% and was fully provided for at the end of both years. The Group does not consider the fair value of this investment to have varied in either of the two years. No impairment losses on available-for-sale financial assets were recognized in either 2010 or 2009. The “Disposals” heading in 2009 shows the sale of the interest in Concentrix Solar, the registered office of which is in Freiburg (Germany). Abengoa Solar’s interest was 17.8%, meaning a reduction of 14,100 thousand euros in the investment portfolio. The effect is included in Note 32. None of the available-for-sale assets is in foreign currency. 10.2 When applicable, all the necessary notifications are made to companies in which a direct or indirect interest of more than 10% is held, in compliance with Art. 155 of the Capital Company Act. 10.3 There are no substantive circumstances that affect the financial assets on the portfolio, such as litigations, attachments, etc., and there are no firm purchase and/or sale commitments that can be considered significant. 94 3 Note 11.- Derivatives Financial Instruments 11.1 The breakdown of the fair value of current financial derivates at 31 December, 2010 and 31 December, 2009 was as follows: 31.12.10 Item Assets 31.12.09 Liabilities Assets Liabilities Interest rate derivatives – cash flow hedges 13,070 58,454 1,353 41,873 Interest rate derivatives – non-accounting hedges 17,920 - 12,410 - 3,296 2,332 194 - Total 34,286 60,786 13,957 41,873 Non-current part 31,023 58,055 13,763 41,873 3,263 2,731 194 - Exchange rate derivatives – non-accounting hedges Current part The classification of derivatives designated as non-accounting hedges includes derivatives that, in spite of having been acquired for the purpose of covering certain market risks (interest rate and foreign exchange) and having initially met the requirements to qualify as hedges, do not, from an accounting viewpoint, meet all the requirements specified in IAS 39 to be designated as hedging instruments. The situation relates primarily to the specific case of call options (caps), where, after the entry into force of the amendment to IAS 39, there was a change in the designation of the hedge, as stated in Note 2.1.2, which meant that part of the classification of said financial instruments became non-hedge accounting. Since these derivatives designate a unilateral risk as the risk hedged, their intrinsic value and time value are separated and only the first may be designated as a hedge accounting. Therefore, the part of the fair value assigned to the time value of the financial instrument must be presented as a non-hedge accounting. In 2010, there were increases in the fair value of interest rate derivatives in the assets for an amount of 17,260 thousand euros, as well as an increase in interest rate derivatives in the liabilities of 16,182 thousand euros. The variation is primarily due to entering into contracts for new financial instruments in the year 2010, within the framework of new financing contracts concluded during the year (see Note 14). The amount of losses and gains due to changes in the fair value of financial instruments designated as hedges recognized in the reserve in the equity is broken down in Note 23. The amount of the fair value transferred to profit and loss in the year for these financial instruments was an expense of 3,529 thousand euros in 2010 (an expense of 721 thousand euros in 2009), net of the tax effect. 95 3 The inefficient portion recognized in the Consolidated Income Statement and originating from cash flow hedges is not significant in either of the two years (see Note 32). 11.1.1 Interest Rate Hedges As mentioned in Note 9, the general interest rate hedging policy is based on contracting options in exchange for a premium (purchase of call option), whereby each company ensures payment of a maximum fixed interest rate, and contracting swaps of variable to fixed interest. For non-recourse financing (Note 14) and loans with financial institutions included under the “Corporate Financing” heading (Note 15) in euros at 31 December, 2010, there was hedging ranging from 70% to 100% of the notional value of these debts, with maturities up to 1 July, 2030 and guaranteed average rates of between 1.23% and 4.87%. At 31 December, 2009, between 70% and 100% of the notional non-recourse financing debt was hedged, with maturities up to 2030 and guaranteed average rates of between 3.84% and 4.87%. a) a Cash flow hedges The breakdown of the maturities of the notional amounts guaranteed by cash flow hedging derivatives was as follows at the 2010 and 2009 year ends: Notional 31/12/2010 Asset derivatives 2011 - Swap 2012 2013 2014 Subsequent - - - - - - Cap 96,909 97,710 93,824 87,620 84,858 Total 96,909 97,710 93,824 87,620 84,858 2011 2012 2013 2014 Subsequent 848,915 Notional 31/12/2010 Liability derivatives - Swap 906,748 933,578 909,623 880,473 - Cap - - - - - Total 906,748 933,578 909,623 880,473 848,915 Notional 31/12/2009 2010 2011 2012 2013 Subsequent Asset derivatives - Swap - - - - - - Cap 46,116 27,439 26,489 25,434 24,350 Total 46,116 27,439 26,489 25,434 24,350 2010 2011 2012 2013 Subsequent 280,582 446,158 432,865 418,902 404,027 - Cap - - - - - Total 280,582 446,158 432,865 418,902 404,027 Notional 31/12/2009 Liability derivatives - Swap 96 3 The maturities of the fair values of the cash flow hedging derivatives are almost all longer than 5 years, with a fair value at 31 December, 2010 of 13,070 thousand euros for the asset derivatives and 58,454 thousand euros for the liability derivatives (1,353 thousand euros for the asset derivatives and 41,873 thousand euros for the liability derivatives in 2009). The accumulated gains/losses after tax of the cash flow hedging derivatives in equity at the end of the years 2010 and 2009 were 37,898 thousand euros and -30,216 thousand euros, respectively (see Note 23). b) Non-accounting hedging derivatives The breakdown of the maturities of the notional amounts guaranteed by non-accounting hedging derivatives was as follows: Notional 31/12/2010 Asset derivatives 2011 2012 - Swap 2013 2014 Subsequent - - - - - - Cap 281,793 284,124 272,822 254,783 246,752 Total 281,793 284,124 272,822 254,783 246,752 Notional 31/12/2009 Asset derivatives - Swap 2010 2011 2012 2013 Subsequent - - - - - - Cap 422,786 251,561 242,853 233,175 223,240 Total 422,786 251,561 242,853 233,175 223,240 The maturities of the fair values of the non- hedge accounting derivatives are almost all at longer than 5 years, with a fair value at 31 December, 2010 of 17,920 thousand euros for asset derivatives (12,410 thousand euros in 2009). The Group does not hold any non-accounting liability derivatives.. At the 2010 and 2009 year ends, the fair value of financial derivatives recognized directly in the Consolidated Income Statement under the heading “Other net financial expenses/income” because they did not meet all the requirements specified in IAS 39 to be designated as hedging instruments totalled 3,069 thousand euros (1,387 thousand euros in 2009). 97 3 The interest rate derivatives that the Group contract include: Interest rate swaps (IRS) IRS are financial swaps in which the counterparties exchange, at certain future times that have been established previously, cash flows determined in accordance with a reference rate and with nominal amounts that are also pre-established. There are very different type of IRS (with fixed reference against variable, with both references variable, with fixed nominal amounts at maturity, with amortisable nominal amounts, ...), but the valuation method is basically the same in all cases. Any IRS is measured on the basis of the discounted value of its future flows of payments and collections at the measurement date. The estimate of these future flows with a variable reference is made using the forward curves that the market quotes at the measurement date. Each flow is discounted at the zero-coupon market rate, at the term of its settlement, that exists at the measurement date. Once the flows of collections and payments have been discounted, they are netted and the amount thus obtained is the fair value of the IRS at that date. Purchase of call options (CAP) Through this type of financial instrument, the purchaser of a cap option acquires the right to have the seller pay it the difference, if positive, between the reference interest rate in force in the market at determined future dates and the interest rate fixed in the option (strike), exercise price, by payment of a premium and for a theoretical nominal amount. For the purchaser of a cap, its usefulness stems from the fact that it allows hedging against possible rises in the interest rate, establishing an upper limit for the cost of his financing, at the same time as it leaves the possibility of benefiting from a drop in the interest rate open. In these options, the economic risk will be equal to the amount of the premium paid. 98 3 At 31 December, 2010 and 31 December, 2009, the interest rate derivatives, expressed in thousands of euros, were as follows: Interest Rate Swaps: Counterparty Sanlúcar Solar, S.A. Solar Processes, S.A. Contract date 18/12/2006 18/12/2006 Maturity date 17/05/2028 17/05/2030 Notional amount contracted at 31/12/2010 13,007 28,368 Solnova Electricidad, S.A. Solnova Electricidad Tres, S.A. y Solnova Electricidad Cuatro, S.A. 18/12/2007-08/08/2008 31/12/2027- 01/07/2030 635,070 09/12/2008 21/09/2015 1,725 06/05/2010 31/12/2011 - 30/06/2028 225,077 23/09/2010 31/12/2011-31/12/2029 273,269 1,176,516 Rioglass Solar, S.A. Helioenergy Electricidad Uno, S.A. y Helioenergy Electricidad Dos, S.A. Solacor Electricidad Uno, S.A. y Solacor Electricidad Dos, S.A. Total Fixed interest rate 4.068% 4.070% 4.345%4.870% 3.840% 1.227% 3.821% 1.30%-3.20% Caps: Maturity date 17/05/2028 17/05/2030 Notional amount contracted at 31/12/2010 30,351 66,192 Fixed interest rate 4.25% 4.50% 07/04/2022-01/11/2022 5,577 4.00%-4.50% Counterparty Sanlúcar Solar, S.A. Solar Processes, S.A. Copero Solar Huerto Uno, S.A. - Copero Solar Huerto Diez, S.A. Contract date 18/12/2006 18/12/2006 11/04/200719/06/2007 Solnova Electricidad Tres, S.A. y Solnova Electricidad Cuatro, S.A. 21/01/200812/08/2008 01/01/2011-31/12/2027 306,773 4.65%-4.75% Abengoa Solar New Technologies Abengoa Solar España, S.A. Solacor Electricidad Uno, S.A. y Solacor Electricidad Dos, S.A. 28/04/2010 09/07/2010 01/03/2014 20/05/2016 10,981 2,489 2.95% 2.50% 23/09/2010 31/12/2029 49,419 3.25% 02/12/2010 30/06/2026 65,603 2% - 3.75% Casaquemada Fotovoltaica, S.L., Linares Fotovoltaica, S.L. y Las Cabezas Fotovoltaica, S.L. Total 537,385 99 3 Interest Rate Swaps: Counterparty Sanlúcar Solar, S.A. Solar Processes, S.A. Contract date 18/12/2006 18/12/2006 Maturity date 17/05/2028 17/05/2030 Notional amount contracted at 31/12/2009 13,007 28,368 Solnova Electricidad, S.A. Solnova Electricidad Tres, S.A. y Solnova Electricidad Cuatro, S.A. 18/12/2007-08/08/2008 31/12/2027- 01/07/2030 635,070 4.7625% Rioglass Solar, S.A. 09/12/2008 21/09/2015 1,725 678,170 3.840% Total Fixed interest rate 4.07% 4.070% Caps: Contract date 18/12/2006 18/12/2006 Maturity date 17/05/2028 17/05/2030 Notional amount contracted at 31/12/2009 30,351 66,192 11/04/2007-19/06/2007 07/04/2022-01/11/2022 5,577 4.00% Solnova Electricidad Tres, S.A. y Solnova Electricidad Cuatro, S.A. 21/01/2008-12/08/2008 01/01/2011-31/12/2027 306,773 4.65% Casaquemada Fotovoltaica, S.L., Linares Fotovoltaica, S.L. y Las Cabezas Fotovoltaica, S.L. 02/12/2010 30/06/2026 71,906 2% - 3.75% Counterparty Sanlúcar Solar, S.A. Solar Processes, S.A. Copero Solar Huerto Uno, S.A. Copero Solar Huerto Diez, S.A. Total Fixed interest rate 4.25% 4.500% 480.799 These contracts were signed with different financial institutions, both Spanish and foreign. The interest rates hedged by the IRS are variable interest rates accrued on the underlying to which they are associated (see Note 14). 11.1.2 Exchange Rate Hedges In respect of exchange rate derivatives, the Group does not hold sufficiently significant balances to require a breakdown into notional amounts and fair values. The most significant exchange rate derivative held by the Group is a forward contract entered into in 2010, the fair value of which was an asset of 2,895 thousand euros and a liability of 2,276 thousand euros at 31 December, 2010. At the 2010 year end, the fair value of exchange rate derivatives recognized directly in the Consolidated Income Statement because they did not meet the requirements specified in IAS 39 to be designated as hedges was not significant (see Note 32). 100 3 Note 12.- Clientsand Other Receivables Accounts 12.1. The breakdown of trade and other receivables at 31 December, 2010 and 31 December, 2009 was as follows: Balance at 31/12/10 Item Trade receivables, sales to customers Balance at 31/12/09 14.772 10.721 4.994 5.508 Trade receivables with related companies (Note 35.3) 51.983 24.438 Other receivables with related companies (Note 35.3) 12.646 18.354 Provisions for bad debts -1.755 -516 Public Administrations 81.417 62.478 Other receivables 13.049 25.104 177.106 146.087 Trade receivables, work completed pending certification Total 12.1.1. Trade receivables, sales to customers The outstanding balance on trade receivables, sales to customers, was 14,772 thousand euros (10,721 thousand euros in 2009), relating primarily to photovoltaic and thermosolar energy sales, the prices of which are regulated in Royal Decree 661/2007 of 25 May, which regulates the activity of electricity production under a special regime (see Note 2.26), as well as sales of structures and mirrors. In these transactions, the customers are companies that market electricity, together with the National Energy Commission (CNE), since they are energy sales made either at a “regulated tariff” or to the energy production market, respectively (see Note 2.23). The credit quality is high and Group Management constantly monitors any associated risk factor that could give rise to indications of impairment. Most of the Group’s customers are in Spain. As stated in Note 9.2, the carrying amount of trade and other receivables is close to its fair value. At 31 December, 2010, the Group had transferred non-recourse balances for a total amount of 1,233 thousand euros (16,050 thousand euros in 2009) to financial institutions (transfers of all the rights and guarantees inherent thereto). Therefore, this amount was eliminated from the trade receivables upon transfer of the risk to the financial institution. 101 3 The amounts of trade and other receivables in foreign currency were not significant in either of the two years. 12.1.2. Trade receivables with related companies The balances of trade receivables with related companies in the year 2010 related primarily to outstanding trade receivables with the construction companies Abener Energía, S.A. y Teyma gestión de contratos de construcción e ingeniería, S.A. for a total amount of 41,740 thousand euros (12,493 thousand euros in 2009) for the transfer of technology know-how and site supervision and management of the plants under construction, as stated in Note 2.23. The variation is due to the increase in projects under construction (see Note 1.2). 12.1.3. Other receivables with related entities The balance of other receivables with related entities in the year 2010 related primarily to the effect of integrating temporary joint ventures (see Note 35.6). The age of these accounts does not exceed one year. 12.1.4. Public Administrations The breakdown of Public Administrations was as follows: Balance at 31/12/10 Item VAT receivables Social Security receivables VAT charged Withholdings tax and income tax advance Total Balance at 31/12/09 67,686 33,867 15 15 11,972 28,128 1,744 468 81,417 62,478 The principal variation in the Public Administrations section relates to the increase in input VAT to be collected due to the higher number of investments made during the year (Note 6). As a consequence of the loans recognized under the heading “Non-recourse financing” (see Note 14), the balances with the Public Administrations for the refund of input VAT not reinvoiced were pledged in favour of the financial institution as security for said financing for an amount of 57,009 euros at the 2010 year end (51,282 thousand euros in 2009). 102 3 12.1.5. Other receivables The balance of “Other receivables” relates primarily to non-repayable grants awarded to Group companies that had not been collected at the 2010 year end, for an amount of 11,054 thousand euros (5,638 thousand euros in 2009) (see Note 16). This amount will be collected by the Group once the agreed investments are made. The provisions for bad debts cover the risk of customer defaults in accordance with the age of the balances. 12.2 The breakdown of the ageing of “Trade receivables, sales to customers”, at 31 December, 2010 and 31 December, 2009 was as follows: Age Up to 3 months Balance at 31/12/10 Balance at 31/12/09 13,759 10,357 From 3 to 6 months 871 38 Over 6 months 142 326 14,772 10,721 Total The Group does not consider there to exist any risk of late payment of its receivable balances and expects to collect them in the ordinary course of its operations. Movement on the provision for impairment of receivables was as follows: Item Initial balance Provision for receivables impairment Reversal of unused amounts Other minor items Final balance 12.3 Balance at 31.12.10 Balance at 31.12.09 (516) (76) (1,709) (39) 69 0 401 (401) (1,755) (516) The credit quality of the balance of “Trade receivables, sales to customers”, and “Trade receivables, work completed pending certification” can be assessed in accordance with the following classification: 103 3 Balance at 31/12/10 Trade and other receivables Trade and other receivables that may be factored without recourse by the bank Balance at 31/12/09 1,147 570 - - Other non-categorised trade and other receivables 18,619 15,659 Total trade and other receivables 19,766 16,229 Trade and other receivables that may be factored with recourse by the bank In the case of “Trade receivables with related companies” and “Public Administrations”, the Group does not consider there to be any credit risk on said accounts. There is no concentration of credit risk in the balances receivable. The Group does not hold any guarantees to secure collection. The outstanding balances of “Trade receivables, sales to customers” guarantee the non-recourse project finance, as stated in Note 14. 12.4 The breakdown of financial receivables at 31 December, 2010 and 31 December, 2009 was as follows: Item Balance at 31.12.10 Credits with related companies (Note 35.3) Balance at 31.12.09 140.491 22.285 35.485 - 289.271 169.519 Guarantees 1.226 307 Other financial receivables 1.207 0 Total 467.680 192.111 Non-current part 138.070 12.775 Current part 329.610 179.336 Other credits receivable Deposits As stated in Note 9.2, the carrying amount of financial receivables is close to its fair value. 12.4.1 Credits with related companies The balances of credits with related companies relate primarily to: 104 3 - Receivable balances of 80,728 thousand euros at 31 December, 2010 (15,612 thousand euros in 2009) relating to credits that the Group holds with the majority shareholder, Abengoa, S.A., as a result of the centralised treasury management. The rate of remuneration applied for the year 2010 was 8.35% (6.99% in 2009). The credits are classified as noncurrent assets, since they will be collected in accordance with the availability of resources of Abengoa, S.A., as agreed with the parent company. The interest accrued but not collected is capitalised as an increase in the value of the credit. Note 15 shows the credit position held with Abengoa, S.A. for this item. - Credit receivable granted in 2010 to the related company Shams One Company LLC for an amount of 37,835 thousand euros as subordinated debt. This credit matures in the year 2036 and, therefore, is a non-current receivable. It is remunerated at a 0% interest rate. This credit is granted in foreign currency and its total amount is 50,555 thousand US dollars. As stated in Note 35.8, after the end of the reporting period, this credit became a current receivable when Shams One Company LLC concluded its financing with financial institutions. - Balances receivable from the parent company, Abengoa, S.A., arising on the tax consolidation of some Group companies, for an amount of 20,245 thousand euros at 31 December, 2010 (11,499 thousand euros at 31 December, 2009). These balances are classified as current assets. 12.4.2 Other receivables The balances of other receivables relate primarily to: ‐ Non-current receivables for outstanding balances due from third parties for the subordinated debt granted in 2010 to certain joint ventures (see Note 35.4), namely the companies Helioenergy Electricidad Uno, S.A. and Helioenergy Electricidad Uno, S.A., for a total amount of 15,598 thousand euros, maturing at 6 June, 2030, although partial repayments are expected before said date. This debt is remunerated at Euribor at 12 months plus a variable spread. - Current receivables for outstanding balances due from third parties for financing granted in the year 2010 to a joint venture (Total Abengoa Solar Emirates Investment Company BV “TASEIC”, see Note 35.4) for an amount of 19,877 thousand euros, maturity of which is 10 June, 2011. It is remunerated at an interest rate of Libor at 3 months. This credit is granted in foreign currency and the total amount is 25,582 thousand dollars. 105 3 The companies Helioenergy Electricidad Uno, S.A., Helioenergy Electricidad Dos, S.A. and TASEIC are joint ventures for the Group (see Note 35.4) and began to be consolidated by the proportional consolidation method in the year 2010 (see Note 2.2.2). 12.4.3 Deposits The variation of 119,752 thousand euros in the “Deposits” line relates primarily to the increase in the companies Solacor Electricidad Uno, S.A. and Solacor Electricidad Dos, S.A. for an amount of 261,991 thousand euros relating to the deposits with which said companies guarantee the reverse factoring issued and, secondly, to a decrease of 170,596 thousand euros in the balances that the companies Solnova Electricidad, S.A., Solnova Electricidad Tres, S.A. and Solnova Electricidad Cuatro, S.A. hold for the same purpose. The interest rate at which these deposits are remunerated is Euribor at 6 months plus a spread which ranged between 0.40 and 0.50 in both years. These amounts are restricted as payment guarantees for settlement of supplier balances and are presented as current assets. None of the financial assets pending maturity was renegotiated during the respective years. The financial receivables balances were not placed in guarantee in either of the two years, except as stated in this Note. In the case of balances of “Credits with related companies”, the Group does not consider any credit risk to exist in relation to these accounts. The deposits are placed with financial institutions with high credit quality, as stated in Note 9.1. Note 13.- Cash and Cash Equivalents The cash and cash equivalents balance at 31 December, 2010 was 220,425 thousand euros (79,840 thousand euros at 31 December, 2009), representing available liquid cash and immediately-available sight account balances with banks and financial institutions. The breakdown of these balances by the main currencies in which they are denominated is shown below: 106 3 31.12.2010 Currency Euro Spanish companies Foreign companies Spanish companies Foreign companies 195,582 - 42,842 101 4,084 20,528 1,544 33,962 US dollar Dirham Total 31.12.2009 231 - 1,391 - 199,897 20,528 45,777 34,063 The amount of cash and cash equivalents in companies with non-recourse financing (see Note 14) was 195,152 thousand euros (38,538 thousand euros at 31 December, 2009). The cash of the different companies that use Project Finance has to follow a strict order of priority in payments pursuant to the contracts signed (see Note 14). In this payment cascade, operating payments are made first, then payments of any nature to financial institutions and, finally, amounts are transferred to the reserve accounts. Any surpluses are distributed to the shareholders once all the requirements have been met. For the year 2009, this heading included an amount of 11,832 thousand euros for restricted prepayments that form part of the financing agreements with the BEI and which were for use in payment of the assets the acquisition of which they financed. In the year 2010, this cash was no longer restricted. At the year end 31 December, 2010, this heading included reserve accounts for debt servicing for an amount of 9,692 thousand euros (6,965 thousand euros at 31 December, 2009) related to project financing. These balances secured the non-recourse financing debt, as stated in Note 14. Cash is remunerated at the market interest rate for current accounts. Note 14.- Non-recourse Financing As stated in Note 2.5, the consolidated group includes interests in a number of companies the corporate purpose of which is, in general, the development of an integrated product and which, in general, use a Project Finance financing formula. This Note provides both details of the non-recourse financing and other relevant information related thereto (excluding details of the fixed assets in projects related to the financing, the information of which is contained in Note 6). 107 3 In this type of financing, the basis of the financing arrangement with the financial institution is the assignation of the cash flows generated by the project to repayment of the financing and settling the financial charges, with no or limited recourse to any other assets, meaning that the financial institution recovers the investment solely through the cash flows of the project financed, any other debt being subordinated to the debt derived from the Project Finance until the latter has been fully repaid. Non-recourse financing is generally used as a means to construct and/or acquire an asset, taking solely the assets and cash flows of the company or group of companies that carries on the activity linked to the asset finance as security. In most cases, the assets and/or contracts are used to guarantee repayment of the financing. The following are the usual Project Finance guarantees: ‐ ‐ ‐ ‐ ‐ ‐ Pledge on the shares of the project company (Note 19). Transfer of collection rights (Note 12). Cash and cash equivalents (Note 13). Pledge on the project’s accounts (receivables and reserve account) (Notes 12 and 13). Limitations on the availability of the project’s assets (Note 6). Mortgage promise on all possible assets with irrevocable power of attorney in the financial institution’s favour. ‐ Pledge of the credit rights derived from the construction and maintenance contracts and all other contracts related to the project. ‐ ‐ Meeting debt coverage ratios. Subordination of interest payments and dividends to shareholders to meeting said ratios. In relation to the specific conditions of each contract, there are certain debt servicing coverage ratios that must be met, as stated in Note 9.1.c). At 31 December, 2010, there was no non-compliance in relation to the coverage ratios and none is forecast, as stated in Note 9.1.c). Likewise, no noncompliance is forecast in relation to any other guarantee used to secure the debt. 14.1 The amounts and variations undergone in the years 2010 and 2009 by Project Finance were as follows: 108 3 Item Non-current nonrecourse financing Current nonrecourse financing Total Balances at 31 December, 2009 821,406 64,231 885,637 Increases 397,678 108,309 505,987 Decreases (repayment) - (57,107) (57,107) Translation differences (foreign currency) - - - Changes in consolidation - - - (25,077) 25,077 (0) - - - (1,184) - (1,184) 1,192,823 140,510 1,333,333 Transfers Transfer from held-for-sale assets Other movements Total at 31 December, 2010 Item Non-current nonrecourse financing Balances at 31 December, 2008 576,663 5,227 581,890 Increases 298,762 10,659 309,421 (3,851) (3,851) Decreases (repayment) Current nonrecourse financing Total Translation differences (foreign currency) - Changes in consolidation - Transfers (52,196) 52,196 - Transfer from held-for-sale assets Other movements (1,823) Total at 31 December, 2009 821,406 (1,823) 64,231 885,637 The most significant variations in the year 2010 were primarily due to the increase resulting from use of the debt relating to the new financing obtained during the year, the main projects being those related to Helioenergy Electricidad Uno, S.A., Helioenergy Electricidad Dos, S.A., Solacor Electricidad Uno, S.A. and Solacor Electricidad Dos, S.A., included in “Increases”. Increases likewise include the amounts drawn during the year on financing from previous years, in accordance with the degree of completion of the projects financed. Decreases relate to repayment of the debt of projects that are in operation or refunds of input VAT paid during construction. Unpaid interest accrued totalled 1,208 thousand euros at 31 December, 2010 (1,352 thousand euros at 31 December, 2009). 109 3 At 31 December, 2010, the heading “Cash and cash equivalents” included reserve accounts for debt servicing of 9,692 thousand euros (6,965 thousand euros at 31 December, 2009), related to project financing (see Note 13). The fair value of the non-recourse financing at 31 December, 2010 and 31 December, 2009 was as follows: For fixed-interest debt, it related basically to a loan of 61,983 thousand euros indexed to a fixed interest rate of 17%, which is measured at amortized cost, recognising the interest accrued in accordance with the effective interest rate, defined as the discount rate that equals the carrying amount of the instrument to the totality of its estimated cash flows until maturity. The fair value of said loan was 67,501 thousand euros at 31 December, 2010 (44,800 thousand euros at 31 December, 2009). For variable-interest debt, no significant differences are considered to exist between its fair value and its carrying amount, since the interest rate applied is indexed to a market rate (Euribor). The portion of non-recourse financing drawn in foreign currency was 19,153 thousand euros (25,592 US dollars) at 31 December, 2010. At 31 December, 2009, there was no non-recourse financing in foreign currency. 14.2 The breakdown of the non-recourse financing arrangements that the Abengoa Solar companies held with financial institutions at 31 December, 2010 and 31 December, 2009, expressed in thousands of euros, was as follows: 110 3 Company Transaction Grant Date Maturity Date Segments Country % Status (*) Abengoa Drawn 2010.12 Drawn 2010.12 Solar Casaquemada Fotovoltáica, S.L. Project Finance 23/07/2008 30/06/2026 Photovoltaic Energy España (O) 100 14.189 14.676 Copero Solar Huerta Uno, S.A. Project Finance 15/02/2007 07/04/2022 Photovoltaic Energy Spain (O) 50 426 453 Copero Solar Huerta Dos, S.A. Project Finance 15/02/2007 07/04/2022 Photovoltaic Energy Spain (O) 50 426 602 Copero Solar Huerta Tres, S.A. Project Finance 15/02/2007 07/04/2022 Photovoltaic Energy Spain (O) 50 426 453 Copero Solar Huerta Cuatro, S.A. Project Finance 17/05/2007 01/11/2022 Photovoltaic Energy Spain (O) 50 449 451 Copero Solar Huerta Cinco, S.A. Project Finance 17/05/2007 01/11/2022 Photovoltaic Energy Spain (O) 50 449 475 Copero Solar Huerta Seis, S.A. Project Finance 17/05/2007 01/11/2022 Photovoltaic Energy Spain (O) 50 449 475 Copero Solar Huerta Siete, S.A. Project Finance 17/05/2007 01/11/2022 Photovoltaic Energy Spain (O) 50 449 475 Copero Solar Huerta Ocho, S.A. Project Finance 17/05/2007 01/11/2022 Photovoltaic Energy Spain (O) 50 449 475 Copero Solar Huerta Nueve, S.A. Project Finance 17/05/2007 01/11/2022 Photovoltaic Energy Spain (O) 50 574 483 Copero Solar Huerta Diez, S.A. Project Finance 17/05/2007 01/11/2022 Photovoltaic Energy Spain (O) 50 574 607 Las Cabezas Fotovoltáica, S.L. Project Finance 23/07/2008 30/06/2026 Photovoltaic Energy Spain (O) 100 36.414 37.858 Linares Fotovoltáica, S.L. Project Finance 23/07/2008 30/06/2026 Photovoltaic Energy Spain (O) 100 14.047 14.530 Rioglass Solar, S.A. Project Finance 19/12/2008 19/09/2015 Thermosolar Energy Spain (O) 50 - 1.839 Sanlúcar Solar, S.A. Project Finance 17/11/2006 17/05/2028 Thermosolar Energy Spain (O) 88 38.546 39.902 Solar Processes, S.A. Project Finance 17/11/2006 17/05/2030 Thermosolar Energy Spain (O) 100 89.899 93.485 Solnova Electricidad, S.A. Project Finance 18/12/2007 18/12/2029 Thermosolar Energy Spain (O) 100 232.138 229.058 Solnova Electricidad Tres, S.A. Project Finance 15/01/2008 30/12/2029 Thermosolar Energy Spain (O) 100 234.142 222.927 Solnova Electricidad Cuatro, S.A. Project Finance 05/08/2008 05/08/2030 Thermosolar Energy Spain (O) 100 212.412 182.422 Solnova Solar Inversiones, S.A. Project Finance 25/05/2009 30/06/2024 Thermosolar Energy Spain (O) 100 61.983 43.989 Helioenergy Electricidad Uno, S.A. Project Finance 06/05/2010 06/05/2030 Thermosolar Energy Spain (C) 50 69.063 - Helioenergy Electricidad Dos, S.A. Project Finance 06/05/2010 06/05/2030 Thermosolar Energy Spain (C) 50 68.510 - Solaben Electricidad Dos, S.A. Project Finance 16/12/2010 16/12/2030 Thermosolar Energy Spain (C) 70 - - Solaben Electricidad Tres, S.A. Project Finance 16/12/2010 16/12/2030 Thermosolar Energy Spain (C) 70 - - Abengoa Solar Inc. Project Finance 21/12/2010 15/11/2038 Thermosolar Energy USA (C) 100 - - Solacor Electricidad Uno, S.A. Project Finance 06/08/2010 06/08/2030 Thermosolar Energy Spain (C) 74 119.243 - Solacor Electricidad Dos, S.A. Project Finance 06/08/2010 06/08/2030 Thermosolar Energy España (C) 74 118.922 - TASEIC Project Finance 10/06/2010 09/06/2011 Thermosolar Energy Arab Emirates (C) 50 19.153 - 1.333.334 885.637 (*) Operation (O); Construction (C) The amount of the balance drawn includes unpaid interest accrued at the 2010 and 2009 year ends, as well as other amounts taken into account when measuring the amortized cost. The interest rates at which non-recourse financing are remunerated range between approximately: - Euribor at 6 months plus a variable spread of (0.50-1.40) for a total amount drawn of - 664,048 thousand euros at 31 December, 2010 (659,225 thousand euros at 31 December, 2009), - Euribor at 6 months plus a variable spread of (1.50-1.60) for a total amount drawn of 450,777 thousand euros at 31 December, 2010 (182,422 thousand euros at 31 December, 2009), - Euribor at 6 months plus a variable spread of (3.25-3.75) for a total amount drawn of 137,573 thousand euros at 31 December, 2010 (no balance had been drawn at 31 December, 2009), 111 3 - Libor at 3 months plus a variable spread of 0.5 for a total amount drawn of € 19,153 thousands at 31 december, 2010 (no balance had been drawn at 31 December, 2009), and - Fixed interest rate of 17% for a total amount drawn of 61,983 thousand euros at 31 December, 2010 (43,989 thousand euros at 31 December, 2009). In December 2010, new financings were concluded but remained unused at 31 December, 2010. The most significant were the financings of Arizona Solar One Llc, Solaben Electricidad Dos and Solaben Electricidad Tres. 14.3 The maturities of Project Finance are shown below: At 31 December, 2010: 2011 2012 140,510 2013 2014 44,953 37,096 Subsequent 51,104 1,059,670 At 31 December, 2009: 2010 2011 64,231 2012 2013 31,615 25,705 Subsequent 30,998 The above tables include current interest accrued but not paid at the 2010 and 2009 year end Note 15.- Corporate Financing 15.1 The breakdown of corporate financing at 31 December, 2010 and 2009 was as follows: 112 733,088 3 Non-current Balance at 31.12.10 Loans with credit institutions Loans with related companies (Note 35.3) Debentures and other loans 12,175 707 532,129 211,359 45,642 12,025 Liabilities under finance leases Total non-current Current Balance at 31.12.09 32 28 589,978 224,119 Balance at 31.12.10 Loans with credit institutions Balance at 31.12.09 1,310 909 Loans with related companies (Note 35.3) 16,883 18,127 Debentures and other loans 14,909 4,130 16 14 33,118 23,180 623,096 247,299 Liabilities under finance leases Total current Total corporate financing The fair value of the financial liabilities from corporate financing at 31 December, 2010 and 31 December, 2009 were as follows: For variable-interest debt: no significant differences are considered to exist between the fair value and the carrying amount, since the interest rate applied is indexed to a market interest rate. There were no financial liabilities from corporate financing for significant amounts indexed to a fixed interest rate. 15.2. Bank Loans Loans with financial institutions include primarily three loans signed with La Caixa in 2010 to finance the different development projects carried out by the company Abengoa Solar New Technologies, S.A. for a total amount of 10,992 thousand euros. Two of these loans mature in the first half of 2012 and the other matures in the first quarter of 2014. The interest that accrues during the term of these loans is 1.95% in a first phase, which ends in the last quarter of 2010, and Euribor + 1% in the second phase, which ends upon maturity of each one of the loans. Said interest is payable on a quarterly basis. Unpaid interest accrued at 31 December, 2010 was 118 thousand euros. Since this debt bears variable interest indexed to a market rate (Euribor), no significant difference is considered to exist between the fair value and the carrying amount. 113 3 No security was provided and there have been no early repayment requirements in relation to the loans with financial institutions. The contractual conditions have not been breached and no breach thereof is foreseen. Said loans are not subject to meeting any financial ratio. 15.3. Loans with related companies Loans with related companies included primarily 525,827 thousand euros at 31 December, 2010 (210,138 thousand euros in 2009) relating to the debts held by the Group with the majority shareholder, Abengoa, S.A., materialising through its central treasury system. Unpaid interest accrued is capitalised as an increase in the value of the debt. The purpose of these loans is to cover the financing needs associated to the construction of the different projects that the Group carries out, as stated in Note 9. The remuneration rate applied for the year 2010 was 8.35% (6.99% for 2009). The debt is classified as a non-current liability, since it will become payable depending on the availability of the Group’s resources, as agreed with the parent company. Likewise, current loans with related companies included an amount of 16,883 thousand euros at 31 December, 2010 (8,356 thousand euros at 31 December, 2009) relating to the liability component of a compound financial instrument that the Group has recognized for the conviertible loan granted by Abengoa, S.A., as stated in Note 21. The breakdown of loans with financial institutions and loans with related companies at 31 December, 2010 and 31 December, 2009 is estimated as follows: At 31 December, 2010 2011 2012 2013 2014 2015 Subsequent 18,193 5,970 320 5,654 231 532,129 At 31 December, 2009: 2010 2011 2012 2013 2014 Subsequent 19.036 - - - - 212.066 114 3 15.4. Notes and other loans Obligations and other non-current loans are outstanding balances due to third parties for the subordinated debt held by certain companies in joint ventures with their external partners, primarily the subordinated debt of the companies Helioenergy Electricidad Uno, S.A. and Helioenergy Electricidad Uno, S.A. for a total amount of 16,009 thousand euros, maturing at 6 June, 2030, although partial repayments are planned before said date. The interest rate accruing on this debt is Euribor at 12 months plus a variable spread. The limit on said debt is 17,885 thousand euros. Likewise, the subordinated debt with external partners of the companies Solaben Electricidad Dos, S.A. and Solaben Electricidad Tres, S.A. is included for a total amount of 10,569 thousand euros, maturing in 2030. The interest rate accruing on this debt is indexed to Euribor at one year plus the spread applicable to senior credit plus 1%. The limit on said debt is 29,849 thousand euros. Obligations and other non-current loans includes a credit received from Square Lake Holding, Inc., entered into in May 2010, with an amount of 7,189 thousand euros drawn at the 2010 year end and a credit limit of 8,310 thousand euros. This credit has a maturity date of 20 May, 2016 and is remunerated at a variable interest rate of Euribor plus 3.50%. For this loan, Abengoa, S.A. (parent company) provided a joint and several guarantee in favour of the lender. Likewise, this heading shows non-current balances payable to official entities for the repayment of interest-free subsidised loans granted for Research and Development projects for an amount of 3,242 thousand euros at 31 December, 2010 (3,207 thousand euros in 2009), together with noncurrent debt of 3,309 thousand euros and current debt of 6,896 thousand euros with official entities classified as grants, the conditions fixed for their recognition as grants having been met (see Note 2.16). Also included in current debentures and other loans is a debt 8,012 thousand euros owing to third parties for promotions acquired for thermosolar projects. Note 16.- Grants and Other Liabilities This heading shows the grants awarded to the Group by official entities, primarily for the construction of thermosolar and photovoltaic plants that are now in operation and for Research and Development projects (see Notes 4 and 6). 115 3 The breakdown of grants received at 31 December, 2010 and 31 December, 2009 is shown below: Entity awarding the grant Type of grant Andalucian Energy Agency Capital Innovation & Development Agency of Andalusia Technological Corporation of Andalusia Capital Fondos Mineros Capital Development Institute of Andalusia Capital Regional Government of Andalusia Capital Ministry of Education and Science Capital European Union Capital Amount awarded (thousands of euros) Capital Capital Total Amount not yet executed (thousands of euros) 31/12/2010 31/12/2009 3,096 2002 & 2008 2,766 2,876 157 2010 146 - 536 2008-2010 536 - 5,149 2008 & 2009 2,461 2,614 423 114 129 2,183 2,339 335 2004 2007,2008 & 2010 2002, 2003 & 2004 310 - 2,734 2010 229 - 6,291 2010 1,099 - 9,844 7,958 2,793 Technological Industrial Development Centre Date awarded 21,514 As stated in Note 12, there are outstanding balances that have not yet been paid on the grants received. Movement on grants at 31 December, 2010 and 31 December, 2009 was as follows: Grants 31/12/2010 Initial balance 31/12/2009 7,958 Additions Transfers to profit and loss Derecognitions 6,477 3,660 2,735 -1,774 -1,254 - Other movements Final balance 9,844 7,958 Note 17.- Trade and Other Payables 17.1 The breakdown of the heading “Trade and Other Payables” at 31 December, 2010 and 31 December, 2009 was as follows: 116 3 Amount at 31.12.2010 Item Amount at 31.12.2009 Trade payables, suppliers 75,899 76,159 Trade payables with related companies (Note 35.3) Trade payables, commercial paper payable 12,091 8,204 6,258 5,173 5,328 42,186 402,094 167,365 32,444 28,409 Payables for services received with related companies (Note 35.3) 8,085 2,859 Prepayments from customers 2,049 779 Prepayments from customers with related companies (Note 35.3) 87,929 28,999 Debts with related companies (Note 35.3) 19,180 12,669 2,936 654,293 1,809 374,613 Fixed asset suppliers Fixed asset suppliers with related companies (Note 35.3) Payables for services received Other payables Total The Group’s main trade suppliers are companies that provide key quality components for development of the different technologies. Likewise, the Group ensures its supply by signing agreements with important suppliers and manufacturing some components directly through its companies Rioglass Solar and Eucomsa. The line “Fixed asset suppliers with related companies” includes the balance with companies that carry out the construction of Abengoa Solar’s plants under turnkey arrangements, primarily Abener Energía, S.A. and Teyma gestión de contratos de construcción e ingeniería, S.A. (see Note 35.3). The increase on the preceding year is due to the higher volume of projects under construction. As stated in Note 2.21, the Group pays its trade debts through reverse factoring, where the financial institution can advance payment to suppliers and creditors. Among the requirements of this payment method is that the Group had to hold deposits of 289,271 thousand euros at 31 December, 2010 (169,519 thousand euros at 31 December, 2009) with the financial institutions, recognized under the “Financial receivables” heading (see Note 12.4.3), to cover the payment remittances to suppliers and creditors at 180 days. The amount of the payables settled by reverse factoring under the Project Finance scheme was 288 million euros at 31 December, 2010 (167 million euros at 31 December, 2009). The variation in 2010 was basically due to the increase in fixed assets suppliers with related companies, as a result of a higher volume of billing from said suppliers at the 2010 year end, which was related to the construction of new projects. 117 3 Additionally, prepayments from customers with related companies increased by 64,300 thousand euros received for manufacturing key components for the construction of solar plants, as well as the transfer of technology know-how and site supervision and management for the Group’s plants under construction. Trade payables in foreign currency at 31 December, 2010 were 126,260 thousand euros (168,708 thousand US dollars) and 14,007 thousand euros (20,177 thousand US dollars) at 31 December, 2009, coming from companies located in the United States. The increase on the preceding year was due to the progress in the construction of the Solana plant (Arizona Solar One, LLC). The fair values of the balances of “Trade and Other Payables” are equivalent to their carrying amounts, since the effect of discounting is not significant. 17.2 In accordance with the Resolution of 29 December, 2010 of the Institute of Accounting and Account Auditing concerning the information to be included in the Notes to the Annual Financial Statements in relation to delays in payment to trade suppliers, companies must expressly publish information on their payment periods to suppliers in the Notes to their Annual Financial Statements in the case of companies incorporated in Spain that submit individual and consolidated accounts. The disclosure duty affects commercial payment transactions, i.e. trade creditors included under the relevant heading in the current liabilities of the statement of financial position. Therefore, creditors or suppliers who do not hold this status in relation to the reporting entity, such as fixed asset suppliers or creditors under lease agreements, are outside the scope of its application. For the first year this Resolution is applied, companies must provide solely information on the amount of outstanding balance payable to suppliers that, at the end of the reporting period, had accumulated a delay longer than the legal payment period. Additionally, in the financial statements for this first reporting period, no comparative information is presented in relation to this new obligation. The information in the Consolidated Financial Statements refers to the Group’s suppliers, the reporting entity being the Group, once all reciprocal credits and debits with subsidiaries and, if applicable, those with multi-group companies have been eliminated in accordance with the applicable consolidation rules, as well as those of suppliers related to the construction of owned assets. 118 3 In this respect, details are given below of the ageing of the outstanding balance of suppliers of companies incorporated in Spain at the 2010 year end in accordance with the procedure established in the aforementioned Resolution: Age 31.12.2010 Less than 85 days 71,409 Between 85-180 days 2,397 Over 180 days 381 74,187 In accordance with the foregoing, taking into account the fact that, in general, Abengoa Solar uses reverse factoring through financial institutions as its payment management method under the contracts signed with several financial institutions, at the 2010 year end, the outstanding balances payable to suppliers with an accumulated delay that exceeded the stipulated legal payment period totalled 2,778 thousand euros. Note 18.- Provisions and Contingent Liabilities Movement on the heading “Provisions for Other Liabilities and Expenses” at 31 December, 2010 and 31 December, 2009 was as follows: Item Balance at 31.12.09 Increases Decreases Transfers Balance at 31.12.10 Provisions for warranties 1,000 - - - 1,000 Provision for liability 1,397 3,704 (15) (3,565) 1,521 Provision for dismantling Total Item Provisions for warranties - 8,243 - - 8,243 2,397 11,947 (15) (3,565) 10,764 Balance at 31.12.08 Increases Decreases Transfers Balance at 31.12.09 - 1,000 - 1,000 - Provision for liability 1,205 544 (352) 1,397 Total 1,205 1,544 (352) 2,397 “Transfers” in 2010 relates to the fact that, in the year 2009, the outstanding balance payable in relation to obligations with employees (see Note 35.2) were shown under this Provisions heading. At 31 December, 2010, this balance was reclassified to the heading “Employee benefit obligations” in the non-current liabilities in the Consolidated Statement of Financial Position. 119 3 The breakdown by type of provision at 31 December, 2010 and 31 December, 2009 was the following: Provision 31/12/2010 Provisions for warranties Employee benefit obligations Provision for liability 31/12/2009 1.000 1.000 - 1.397 1.521 - Provision for dismantling 8.243 - Total 10.764 2.397 Provisions for warranties: Provisions for warranties are recognized to cover possible liabilities arising from warranties related to contracts signed with customers, primarily for the sale of mirrors, in accordance with the Group’s best estimate, as stated in Note 2.20. Provision for liability: This relates primarily to provisions made on the basis of best estimates and intended to cover mainly future risks related to litigations, arbitrations and claims in progress in which different Group companies are involved as defendants, fundamentally in Spain, for liability inherent to the activities they carry on, when an outflow of funds is considered probable in the medium or long term. Provision for dismantling: This heading includes provisions made on the basis of best estimates and intended to cover primarily the contractual obligations related to the expense of dismantling or removing the elements affected, or restoring the sites on which the solar plants in production stand (see Note 6.2). There were no contingent liabilities of sufficient significance to be reported in these Consolidated Annual Accounts as at 31 December, 2010 and 31 December, 2009. 120 3 Note 19.- Third-Party Guarantees and Commitments Guarantees and security: As stated in Note 14, some Group companies,which use Project Finance have pledged their own shares to secure the debt. The Group has different guarantee lines for the Group’s ordinary operations. Financial guarantees are delivered, as a general rule, to the owners of the sites on which some of the plants stand, to secure compliance with the contractual obligations for the assignment of the surface rights. The amount drawn at the 2010 year end was 7,470 thousand euros (4,920 thousand euros in 2009). Technical guarantees are mostly granted to public institutions as a requirement for carrying out solar plant construction projects and are created to guarantee compliance with the obligations acquired under such construction contracts or because they are legally mandatory. They are returned as certain requirements are met, basically the commissioning of the plants, the connection thereof to the grid and the dismantling at the end of their useful lives. At the year end, the amount furnished was 232,948 thousand euros (347,537 thousand euros in 2009). These guarantees are received from both Abengoa, S.A. (parent company) and third parties as guarantees to customers, and public entities and third parties for the promotion of photovoltaic and thermosolar technology plants. Commitments: ‐ In the year 2010, Abengoa Solar acquired new commitments within the framework of its commercial activity. The following may be highlighted: ‐ Financing agreement with HSBC France for 78,000 thousand dollars that its subsidiary Abengoa Solar Ventures, S.A. has signed with Taseic, B.V., a company in which it is a 50% shareholder with Total, S.A., to finance, in turn, Shams One Company, LLC, in which it holds 40% of the capital, for construction of a thermosolar technology plant of 100 MW in Abu Dhabi. 121 3 ‐ Abengoa Solar, together with E.On, completed more than 70% of the construction of two plants located on the Écija Platform. The two plants, of 50 MW each and parabolic-cylinder technology, are scheduled to come into operation at the end of 2011 and beginning of 2012, respectively. Abengoa Solar’s share in these two projects is 50% (Helioenergy 1 and Helioenergy 2). ‐ Together with JGC Corporation, an alliance was created to construct two thermosolar plants of 50 MW each in El Carpio (Cordoba). Abengoa’s interest in these two projects is 74% (Solacor 1 and Solacor 2). - Together with Itochu Corporation, an alliance was created to construct two thermosolar plants of 50 MW each in Logrosán (Cáceres), Solaben 2 and Solaben 3, in which Abengoa Solar holds a 70% interest. - A contract was signed with Arizona Public Service Company (New York Stock Exchange: Pinnacle West Capital), the largest electricity company in Arizona (U.S.A.), to sell the electricity produced by Solana for 30 years. Abengoa Solar signed an EPC contract for the construction of the project, for which it has, in addition to its own financial capacity, the credit of 1,450 million dollars guaranteed by the Department of Energy. - Abengoa Solar has provided guarantees for 20 million euros of projects, as established as one of the requirements for inclusion in the Pre-assignation Register, to the General Deposit Office of the General State Administration in favour of the Directorate General of Energy Policy and Mines. Total future commitments with third parties were 2,433 million euros (see Note 9.1). Note 20.- Tax Situation 20.1. Application of Tax Tegimes and Tax Groups in 2009 For tax purposes, certain Group companies (see Appendices V and X) are included under the Special Tax Consolidation Regime as group No. 2/97, the parent company of which is Abengoa, S.A. Other Spanish and foreign companies not included in the Special Tax Consolidation Regime pay corporate income tax under the general regime. 122 3 To calculate the tax base for the tax group and the different individual companies included in the consolidation, the accounting profit or loss is adjusted in accordance with any temporary or permanent differences that may exist, giving rise to the pertinent deferred tax assets and liabilities. In general, deferred tax assets and liabilities arise as a consequence of adjusting the accounting policies and principles of individual companies to make them consistent with those of the consolidated group, to which the policies and principles of the parent company are applicable. The corporate income tax payable, under either the general regime or the Special Tax Consolidation Regime, is the result of applying the tax rate for each taxpayer in accordance with current legislation in each of the different territories and/or countries where the companies have their respective registered offices. Likewise, the tax credits and allowances to which each company is entitled are applied, relating primarily to double inter-company and international taxation and investments made. At the date of formulation of the Consolidated Annual Financial Statements, a tax inspection of the company Abengoa Solar España, S.A., which forms part of the consolidated tax group of Abengoa, S.A., had commenced for the following items: Items Periods Corporate income tax 2005 to 2008 Value-added tax 2006 to 2008 Withholdings/payments on account of earned income/professional fees 2006 to 2008 Withholdings/payments on account of investment income 2006 to 2008 The Directors consider that, although, as a result of this inspection, additional liabilities could arise from possible interpretations of current tax legislation, these would not have a significant effect on the Consolidated Annual Financial Statements. This opinion is held on the basis the best information available and circumstances at 31 December, 2010, although the final outcome of the inspection cannot be predicted with certainty. At 31 December, 2010, the years 2004 to 2009 could be considered to be open to inspection for corporate income tax and 2005 to 2010 for the rest of the applicable taxes, for all Group companies other than the company that was undergoing the tax inspection. 20.2. Deferred Taxes The breakdown of deferred tax assets and liabilities at 31 December, 2010 and 31 December, 2009 is shown below: 123 Deferred tax assets from tax loss carry forwards 3 Balance at 31.12.09 Balance at 31.12.10 Item 1,988 9,599 Deferred tax assets from tax credits pending application: Export tax credits 6,921 3,104 R&D&I tax credits 23,320 22,581 0 20,873 Temporary differences: Impairment Stock option plans and other provisions for variable remuneration Derivative financial instruments Elimination of margins on consolidation Other Total deferred tax assets 947 196 17,773 13,190 8,538 21,452 1,494 60,981 93,497 Balance at 31.12.10 Item 2,502 Balance at 31.12.09 Accelerated tax depreciation 4.044 Derivative financial instruments 3.088 260 698 5.846 48 7.878 10.451 Elimination of margins on consolidation Other Total deferred tax liabilities 4.296 49 Movement on the deferred tax assets and liabilities at 31 December, 2010 and 31 December, 2009 was as follows: Deferred tax assets Amount At 1 January, 2009 45,793 43,816 Increases/decreases through profit and loss 3,888 Increases/decreases in comprehensive income At 31 December, 2009 93,497 (23,817) Increases/decreases through profit and loss 5,889 Increases/decreases in comprehensive income (18,396) Changes in consolidated group and reclassifications 3,808 Other movements in operating profit/loss (export tax credit) At 31 December, 2010 60,981 Deferred tax liabilities Amount At 1 January, 2009 Increases/decreases through profit and loss 70 4,277 Increases/decreases in comprehensive income 6,104 At 31 December, 2009 10,451 13,835 Increases/decreases through profit and loss 2,576 Increases/decreases in comprehensive income (18,984) Changes in consolidated group and reclassifications At 31 December, 2010 7,878 The variation in deferred tax assets relating to impairment in the Statement of Financial Position is due to the reversal of the recoverability of the temporary difference, which, at the present time, is not foreseeable. 124 3 Variations in the consolidated group and reclassifications include the effect of certain deferred taxes which, after calculation of the corporate income tax of the consolidated tax group, were reclassified. - R&D tax credits: in accordance with Abengoa Solar’s policy of investing in Research & Development, the Group applies certain tax credits pursuant to article 35 of the Corporate Income Tax Act. Abengoa Solar has Reasoned Reports from the Ministry of Industry, Trade and Tourism on the R&D&I projects and the treatment thereof as “research”, “development” or “innovation”. At the 2010 year end, the amount of tax credits pending application was 22,190 thousand euros (15,663 thousand euros in 2009), all of which had been generated between the years 2006 and 2010. These tax credits have a statute of limitations of 15 years under the applicable legislation. - As part of the export activity, in 2008, Abengoa Solar, S.A. decided to begin to apply the tax benefits associated with the tax credit for export activities (DAEX) contained in Art. 37 of the Revised Text of the Corporate Income Tax Act, for both 2008 itself and previous years that were not yet statute-barred. As a consequence, Abengoa Solar reflected a tax credit of 11,071 thousand euros in its corporate income tax returns for 2010 (9,900 thousand euros in 2009, including the tax credits from previous years that were not yet statute-barred). Notwithstanding, for tax planning reasons, given the legally-established 10-year limit on application of this tax credit, none of the amount has yet been deducted from the corporate income tax payable. The Group considers that, at present, after taking into account the rest of the tax credits and limits applicable under the Corporate Income Tax Act, it is likely that the DAEX will be applied in future years for an amount of 6,912 thousand euros at 31 December, 2010 (3,100 thousand euros at 31 December, 2009), having recognized income of 3,808 thousand euros in the Consolidated Income Statement in 2010. No amount was recognized in the Income Statement for this item in the preceding year. - Environment tax credits: under Art. 39.3 of the Corporate Income Tax Act, Abengoa Solar has generated tax credits for investments in new property, plant and equipment intended to make use of renewable energy sources coming from the sun to be transformed into electricity. The amount in 2010 was 12,205 thousand euros (8,468 thousand euros in 2009), generated between 2007 and 2010. As of today’s date, these tax credits are not capitalised on the Statements of Financial Position of the Group companies since, taking into account the rest of the tax credits and the limits applicable under the Corporate Income Tax Act, it was not considered likely at the year end that these amounts could be recovered. Said tax credits become statute-barred after 10 years according to the applicable legislation. 125 3 The Group also considers that all deferred tax assets generated will be recovered on the basis of the tax group’s business plans or, for companies taxed under the general regime, the plans of the company itself. 20.3. Income Tax The breakdown of corporate income tax at 31 December, 2010 and 31 December, 2009 was as follows: Item Current tax Deferred tax Total tax revenue/(expense) Balance at 31.12.10 28,578 Balance at 31.12.09 (2,149) (37,652) 47,542 (9,074) 45,393 The corporate income tax expense/income at 31 December, 2010 and 31 December, 2009, respectively, has been recognized on the basis of Group Management’s best estimate, based on applying the tax rate to the accounting profit or loss and recognising tax credits and allowances. Corporate income tax expense is calculated at the tax rates in force in each of the countries: Spain 30% and United States 36%. The reconciliation between the consolidated profit before tax and the expense (income) from corporate income tax recognized in 2010 and 2009 would be as follows: Item Profit before tax Statutory tax rate Corporate income tax at the statutory tax rate (theoretical amount) Income/Expenses not subject to taxation Corporate income tax (effective amount) - Amount at 31.12.10 (3,675) Amount at 31.12.09 (106,046) 30% 30% 1,103 31,814 (10,177) 13,579 (9,074) 45,393 The main adjustments to the profit before tax are primarily due to the tax effect of the impairment recognized as described in Notes 5 and 6, as well as the effect of eliminating intraGroup margins as a consequence of the consolidation process. 126 3 - Among the reasons for these differences, we can highlight taxation in Spain under the Special Tax Consolidation Regime: since the beginning, most of the companies in which Abengoa Solar holds interests in Spain (see Appendices V and X) have been taxed under the tax consolidation regime, which allows, among other aspects, the offsetting of negative tax bases of subsidiaries, the application of higher tax credits for investments made in R&D&I and other activities, the deferral of the tax burden in transactions carried out between companies belonging to the same tax group, which may even, depending on the transaction, neutralise the tax effect. As of today’s date there are no tax bases used by the consolidated group that have not yet been offset in Group companies belonging to the Abengoa consolidated tax group and1 have not yet been duly credited. Note 21.- Share Capital 21.1. Share capital The share capital at 31 December, 2010 and 31 December, 2009 was 12,060,200 euros. 31/12/2010 31/12/2009 % interest % interest Abengoa , S.A. 99.99% 99.99% Abengoa Solar España, S.A. 0.01% 0.01% Shareholder At 31 December, 2010, the share capital of the parent company was divided into 964,816 registered shares (241,204 registered shares in 2009) with a face value of 12.50 euros each (face value of 50 euros each in 2009), belonging to a single class and series and numbered correlatively from 1 to 964,816 (from 1 to 241,204 in 2009), inclusive, all of which are fully paid up. On 4 January, 2010, the parent company decided to reduce the face value of the totality of the shares representing its own share capital from 50 euros to 12.50 euros, simultaneously increasing the number of shares from 241,204 to 964,816. The shareholders received four new shares with a par value of 12.50 euros each for each one of their old shares. At the 2010 year end, Abengoa Solar, S.A. held treasury shares of 0.01% (0.01% in 2009) of its share capital through the interest that Abengoa Solar España, S.A. (a subsidiary of Abengoa Solar, S.A.) held in Abengoa Solar, S.A., formed by four shares with a face value of 12.50 euros each. 127 3 21.2. Other Equity Instruments On 30 December, 2009, the parent company issued a compound financial instrument with its majority shareholder, Abengoa, S.A., represented by an obligatorily convertible loan into shares for an amount of 110,000 thousand euros. This loan had an initial maturity date of 31 December, 2010 and was renewed for an additional term of one year. The liability component of this compound financial instrument is included in loans with related companies under the “Corporate financing” heading in current liabilities (see Note 15.2). The convertible loan recognized in the Statement of Financial Position is calculated as follows: 31/12/2010 Nominal value 31/12/2009 110,000 110,000 Equity component 93,117 101,644 Liability component 16,883 8,356 The repayment of the loan will be made at maturity by converting the principal into eight million eight hundred thousand shares (8,800,000) of the same series and class as the existing ones. After the explicit renewal signed at 30 December, 2010, the parties agreed that the loan would accrue an annual rate of 8.47% (an annual rate of 8.35% for the first year) during the term thereof, the maturity agreed being 30 December, 2011, although this could be explicitly extended by the parties. Interest will be calculated and settled at the end of each financial year and upon maturity of the loan. No kind of security is associated to this loan. 128 3 Note 22.- Parent Company Reserves 22.1 The amounts of the accounts that formed part of the parent company reserves heading at 31 December, 2010 and 31 December, 2009 and movement on these accounts in the years were as follows: Distribution of profit/(loss) for 2009 Balance at 31.12.09 Item Other movements Balance at 31.12.10 Parent company reserves. - Distributable - Non-distributable 11,984 - - 1,191 - - 1,191 - (47,181 ) - (47,181) 13,175 (47,181 ) - (34,006 ) - Losses from previous years Total other reserves 11,984 Balance at 31.12.08 Item Distribution of profit/(loss) for 2008 Other movements Balance at 31.12.09 Parent company reserves. - Distributable - Non-distributable Total other reserves 1,264 9,452 1,268 11,984 140 1,051 - 1,191 1,404 10,503 1,268 13,175 22.2 The legal reserve, totalling 1,191 thousand euros, has been set aside in accordance with Art. 274 of the Capital Company Act, which states that, in all cases, an amount equal to 10% of the profit for the year must be set aside until at least 20% of the share capital is reached. The legal reserve cannot be distributed and, if used to offset losses in the event that there are insufficient other available reserves for said purpose, it must be replenished with future profits. At 31 December, 2010, it had not reached the amount required by law. 22.3 The proposed distribution of the profit at 31 December, 2010 and 31 December, 2009, calculated in accordance with the current Spanish General Accounting Plan (Spanish GAAP), and other parent company reserves to be submitted to the General Shareholders’ Meeting is as follows: Amount at 31.12.10 Distribution bases Profit/(loss) for the year 56,264 Amount at 31.12.10 Distribution Amount at 31.12.09 (47,181) Amount at 31.12.09 Legal reserves 1,221 - Voluntary reserves 7,862 - Loss from previous year 47,181 (47,181) Total 56,264 (47,181) 129 3 Art. 273 of the Capital Company Act states that the General Meeting will adopt a resolution on the application of the profit or loss for the year, determined pursuant to general-accepted accounting principles and standards in Spain, in accordance with the Statement of Financial Position approved, taking the following into account: - Once the items provided for by law or in the Bylaws have been covered, dividends charged to the profit for the year or freely-available reserves can only be distributed if the equity is not, or will not be as a result of the distribution, lower than the share capital. For these purposes, profits recognized directly in equity cannot be distributed either directly or indirectly. - If there are losses from previous years that reduce the value of the company’s equity to below the amount of the share capital, the profit must be used to offset said losses. - Likewise, any distribution of profit is prohibited unless the amount of available reserves is at least equal to the amount of the Research & Development expenses shown in the assets in the Statement of Financial Position. - At any event, a frozen reserve equivalent to the goodwill that appears in the assets in the Statement of Financial Position must be created, using, for this purpose, a portion of the profit that represents at least 5% of the amount of said goodwill. If there is no profit or the profit is insufficient, freely-available reserves will be used. Note 23.- Other Reserves The amount included under the Other Reserves heading shows the effect in equity arising on the measurement of hedging transactions (derivatives), available-for-sale investments and the stock option plan held at the year end. The amounts of items under the heading Other Reserves at 31 December, 2010 and 31 December, 2009 and movement thereon are shown below: Item Hedging reserves Reserves available-forsale investments Reserves Share Plan Total Balance at 31 December, 2009 (30,216) (2,147) - (32,363) - Fair value gains/(losses) in the year (16,036) - - (16,036) - Tax effect on fair value gains/losses 4,825 - - 4,825 - Transfer to profit and loss 5,042 - - - Tax effect of transfer to profit and loss (1,512) - Other movements Balance at 31 December, 2010 (37,897) 130 5,042 (1,512) (2,147) - (40,044) 3 Item Hedging reserves Balance at 31 December, 2008 Reserves available-forsale investments Reserves Stock Option Plan Total (32,084) (3,280) 1,269 (34,095) - Fair value gains/(losses) in the year 1,639 - - 1,639 - Tax effect on fair value gains/losses (492) - Transfer to profit and loss 1,030 1,619 - Tax effect of transfer to profit and loss (309) (486) (30,216) (2,147) - Other movements Balance at 31 December, 2009 - (492) - 2,649 (1,269) - (1,269) (32,363) (795) For further information on hedging transactions, see Note 11. Note 24.- Translations Differences Translation differences arise from the translation into the presentation currency of the financial statements of Group companies that have a functional currency other than the presentation currency, which is the euro. The amount of translation differences of Group and associated companies at 31 December, 2010 and 31 December, 2009 was as follows: Companies (full/proportional consolidation) Currency Amount at 31/12/2010 Amount at 31/12/2009 Abengoa Solar Inc. US $ (4,335) (10,018) Abengoa Solar PV, Inc. US $ (363) (348) Arizona Solar One, LLC US $ (238) 0 TASEIC Total 2 0 (4,934) (10,366) The main decrease that took place in the year ended 31 December, 2010 was due to the rise in value of the US dollar in said year. Note 25.- Retained Earnings The amounts of the accounts that formed part of the Retained Earnings heading at 31 December, 2010 and 31 December, 2009 and movement on said accounts during the years were as follows: 131 3 Item Reserves in fully/proportionally consolidated companies Reserves in companies consolidated by equity method Distribution of profit/loss 2009 Balance at 31.12.09 Profit/loss 2010 Other movements Balance at 31.12.2010 (21,956) (13,202) - (3,579) (38,737) 462 189 - - 651 - (47,181) - 47,181 - Total Reserves (21,494) (60,194) 0 43,602 (38,086) Consolidated profit/(loss) for year (60,653) 60,653 (12,749) - (12,749) 459 (459) 1,890 - 1,890 (60,194) 60,194 (10,859) - (10,859) (81,688) - (10,859) 43,602 (48,945) Parent company reserves Profit/(loss) attributed to non-controlling interests Total profit/(loss) parent company Total retained earnings Item Reserves in fully/proportionally consolidated companies Reserves in companies consolidated by equity method Distribution of profit/loss 2008 Balance at 31.12.08 Consolidated profit/(loss) for year Balance at 31.12.2009 (22,156) - (986) (21,956) 222 240 - - 462 - 13,175 - (13,175) - 1,408 (8,741) - (14,161) (21,494) (9,535) 9,535 (60,653) - (60,653) 794 (794) 459 - 459 (8,741) 8,741 (60,194) - (60,194) (60,194) (14,161) (81,688) Profit/(loss) attributed to non-controlling interests Total profit/(loss) parent company Other movements 1,186 Parent company reserves Total Reserves Profit/loss 2009 (7,333) - Total retained earnings Note 26.- Non-Controlling Interests This heading shows the proportional part of the equity of fully consolidated Group companies in which other shareholders outside the Group hold interests. 26.1 Movement on the Non-controlling Interests heading in the year 2010 was as follows: Company Changes in consolidated group & other Balance at 31.12.09 Attribution profit/(loss) 2010 Balance at 31.12.10 Copero Solar Huerta Cinco, S.A. 34 0 0 34 Copero Solar Huerta Cuatro, S.A. 37 (0) (1) 36 Copero Solar Huerta Diez, S.A. 27 (1) (3) 23 Copero Solar Huerta Dos, S.A. 44 (1) (2) 41 Copero Solar Huerta Nueve, S.A. 23 8 (4) 27 Copero Solar Huerta Ocho, S.A. 35 (0) (6) 29 Copero Solar Huerta Seis, S.A. 32 (0) (2) 30 Copero Solar Huerta Siete, S.A. 34 (0) (4) 30 Copero Solar Huerta Tres, S.A. 44 (1) 0 43 Copero Solar Huerta Uno, S.A. 45 (6) 2 41 132 3 Fotovoltaica Solar Sevilla, S.A. 386 (15) 44 415 Helios I Hyperion Energy Investments, S.L. 512 (128) (0) 384 Helios II Hyperion Energy Investments, S.L. 487 (147) (0) 340 Rioglass Solar, S.A. 0 0 0 0 Rioglass Solar 2 0 0 0 0 669 (35) (65) 569 Sanlúcar Solar, S.A. Sol3G (764) 764 0 0 Solaben Electricidad Dos 0 13,504 0 13,504 Solaben Electricidad Tres 0 15,741 0 15,741 Solacor Electricidad Dos, S.A 0 10,821 (32) 10,789 Solacor Electricidad Uno, S.A 0 12,056 (34) 12,022 Solnova Electricidad Cuatro, S.A 0 0 0 0 Solnova Electricidad Tres, S.A 0 0 0 0 Solnova Electricidad, S.A 0 0 0 0 Solnova Solar Inversiones, S.A 0 0 0 0 (1,450) 9 (1,783) (3,224) 195 52,569 (1,890) 50,874 Elimination of intercompany balances Total Movements on changes in the consolidated group relate primarily to the entry of external shareholders into the companies Solacor Electricidad Uno and Solacor Electricidad Dos and Solaben Electricidad Dos and Solaben Electricidad Tres (see Note 2.2.2). 26.2 Movement on the Non-controlling Interests heading in the year 2009 was as follows: Company Changes in consolidated group & other Balance at 31.12.08 Attribution profit/(loss) 2009 Balance at 31.12.09 Copero Solar Huerta Cinco, S.A. 32 0 2 34 Copero Solar Huerta Cuatro, S.A. 33 0 3 36 Copero Solar Huerta Diez, S.A. 29 1 (3) 27 Copero Solar Huerta Dos, S.A. 40 (1) 5 44 Copero Solar Huerta Nueve, S.A. 29 0 (5) 24 Copero Solar Huerta Ocho, S.A. 32 0 2 34 Copero Solar Huerta Seis, S.A. 32 (1) 1 32 Copero Solar Huerta Siete, S.A. 33 0 1 34 Copero Solar Huerta Tres, S.A. 40 (1) 4 43 Copero Solar Huerta Uno, S.A. 41 (1) 5 45 Fotovoltaica Solar Sevilla, S.A. 311 7 Helios I Hyperion Energy Investments, S.L. 0 513 Helios II Hyperion Energy Investments, S.L. 0 501 Rioglass Solar, S.A Sanlúcar Solar, S.A. Sol3g S.L. Eliminations of intercompany balances Total 3,076 683 0 (1,441) 2,970 (3,076) 38 (288) (8) (2,316) 68 386 (2) 511 (13) 488 0 (51) (476) 0 (459) 0 670 (764) (1,449) 195 The amounts of “Other” movements were primarily generated by changes in the consolidated group. 133 3 26.3 The list of non-Group companies that hold interests equal to or higher than 10% in the share capital of any of the consolidated subsidiaries is as follows: At 31 December, 2010: Company in which the interest is held 2010 Sanlúcar Solar, S.A. AE&EH Shareholder % Interest 12 Fotovoltaica Solar Sevilla, S.A. Copero Solar Uno(Diez Helioenergy Electricidad Uno, S.A. Helioenergy Electricidad Dos, S.A. Solacor Electricidad Uno, S.A. Solacor Electricidad Dos, S.A. Solaben Electricidad Dos Solaben Electricidad Tres Almadén Solar, S.A. I.D.A.E Emasesa E.On First Future Energy Holding B.V. E.On First Future Energy Holding B.V. JGC Corporation JGC Corporation Itochu Europe PLC Itochu Corporation PLC I.D.A.E. 20 50 50 50 26 26 30 30 20 Almadén Solar, S.A. Evacuación Valdecaballeros 2009 S.L Evacuación Valdecaballeros 2009 S.L Evacuación Valdecaballeros 2009 S.L Evacuación Villanueva del Rey, S.L Evacuación Villanueva del Rey, S.L Cycon Solar, LTD Freener(g LLC (Solar Flow Energy) SEPIDES Planta Solar de Extremadura, S.L Planta Solar de Extremadura 2, S.L Serrezuel P&T Acciona Renagel Holding Ltd. Casa Ruiz 29 25 25 10 18.3 36.6 34 24 At 31 December, 2009: Company in which the interest is held 2009 Shareholder % Interest Almadén Solar, S.A. I.D.A.E. Almadén Solar, S.A. SEPIDES 20 29 Copero Solar Uno – Diez Emasesa 50 Fotovoltaica Solar Sevilla, S.A. I.D.A.E. 20 Sanlúcar Solar AE&EH 12 Sol3G Valldoreix Consulting, S.A. Helios I Hyperion Energy Investments, S.L. Hyperion Management, S.L. 10 Helios II Hyperion Energy Investments, S.L. Hyperion Management, S.L. 10 22.2 Freener(g Casa Ruiz 24 Total Abengoa Solar Emirates Investment Company Total Energie Solaire Concentrée 50 Total Abengoa Solar Emirates O&M Company BV Total Energie Solaire Concentrée 50 Significant changes in the consolidated group are described in Note 2.2.2. 134 3 Note 27.- Revenue The breakdown of the Revenue heading at the 2010 and 2009 years ends was as follows: Item Sales of Energy Balance at Balance at 31.12.10 31.12.09 57,529 23,666 Sales of Technology and Promotion 110,620 92,258 Net Sales 168,149 115,924 Geographically-speaking, most sales are made in national territory. Note 28.- Other Operating Income The heading “Other Operating Income” in the Consolidated Income Statement relates primarily to the work carried out on fixed assets and revenue from operating grants. The breakdown is as follows: Item Amount at 32.12.10 Revenue from sundry services Amount at 31.12.2009 4,722 3,540 30,951 30,291 Grants 7,042 4,297 Other 2,575 501 Total 45,290 38,629 Work carried out on fixed assets The amount of work carried out on fixed assets relates primarily to the capitalisation of costs as “Development assets” and “Property, plant and equipment in projects” (see Notes 4 and 6). The balance recognized under operating grants refers to those received from different official entities for carrying on the R&D activity (see Note 16). At 31 December, 2010, the “Grants” line included an amount of 3,808 thousand euros relating to the tax credits for export activities when the accounting treatment to be applied is considered to be the treatment specified in IAS 20 (see Note 20). In 2009, no tax credits were recognized for this item. 135 3 Note 29.- Employee Benefit Expenses The breakdown by expense of Employee Benefit Expenses at 31 December, 2010 and 31 December, 2009 was as follows: Amount at Amount at Item 31.12.10 31.12.09 Wages and salaries (23.530) (18.521) Staff welfare expenses (6.024) (4.016) Stock option plans and other employee remuneration (2.504) 194 (32.058) (22.343) Total Note 30.- Depreciation, Amortization, Impairment Charges and Other Operating Expenses 30.1 The breakdown of Amortization, depreciation and impairment at 31 December, 2010 and 31 December, 2009 was as follows: Item Amortization & depreciation Impairment Total Amount at 21.12.10 Amount at 31, 10.09 (40,418) (19,005) (873) (65,502) (41,291) (84,507) At 31 December, 2010, impairment included provisions of 21,085 thousand euros for the year relating to property, plant and equipment, inventories and trade and other receivables (see Notes 5, 6, 8 and 12, respectively). Likewise, it included the reversal of impairment charges in previous years for an amount of 20,636 thousand euros, relating primarily to property, plant and equipment in the Solana project, as explained in Note 5. At 31 December, 2009, the most significant item on the “Impairment” line was the provision for the year in relation to property, plant and equipment for the United States project (see Notes 5 and 6). 30.2 The breakdown of Other Operating Expenses at 31 December, 2010 and 31 December, 2009 was follows: 136 3 Item Amount at 31.12.10 Amount at 31.12.09 (3,206) (1,058) (335) (124) External services (7,480) (1,099) Transport (1,528) (377) Supplies (4,817) (494) (519) (137) (2,930) (365) (20,815) (3,654) Leases and fees Repairs and maintenance Taxes Other management expenses Total At 31 December, 2010, Abengoa Solar, S.A. had signed office rental contracts for its different offices. Details of contracts signed with related parties are given in Note 35.3. The breakdown of operating lease agreements and the annual rental expense expressed in thousands of euros is shown below: At 31 December, 2010 Company Rental expense 2010 Use Location Abengoa Solar, S.A. Offices Madrid 534 Abengoa Solar, S.A. Offices Almería 93 Sol3G, S.L. Offices Cerdanyola del Valles (Barcelona) 27 Abengoa Solar, Inc. Offices Berkley (U.S.A..) 55 Abengoa Solar, Inc Offices Victorville (U.S.A..) 38 Abengoa Solar, Inc Offices Phoenix (U.S.A. 57 Abengoa Solar, Inc Offices Lakewood (U.S.A..) 222 Abengoa Solar España, S.A. Offices Mérida 10 Abengoa Solar Engineering, Co. Ltd Offices Beijing (China) 14 Abengoa Solar PV Offices Roma (Italia)e 44 Abengoa Solar South Africa Pty Ltd. Offices Pretoria (South Africa) 11 Abengoa Solar India Pvt Ltd. Abengoa Solar España, S.A., Abengoa Solar New Technologies, S.A., Abengoa Solar PV, S.A., Abengoa Solar, S.A Offices Mumbai (India) Centro Tecnológico Palmas Altas (Seville) 7 137 Offices 1,076 3 At 31 December, 2009: Company Abengoa Solar, S.A. Use Offices Location Madrid Rental expense 2010 523 Abengoa Solar, S.A. Offices Almería 38 Sol3g, S.L. Offices Cerdanyola del Valles (Barcelona) 32 Abengoa Solar, Inc. Offices Berkeley (U.S.A..) 48 Abengoa Solar, Inc. Offices Victorville (U.S.A..) 33 Abengoa Solar, Inc. Offices Phoenix (U.S.A..) 44 Abengoa Solar, Inc. Offices Lakewood (U.S.A..) 118 Abengoa Solar España, S.A. Offices Mérida 10 Abengoa Solar Engineering (Beijing), Co. Ltd. Offices Beijing (China) 19 Abengoa Solar España, S.A., Abengoa Solar New Technologies, S.A., Abengoa Solar PV, S.A., Abengoa Solar, S.A. Offices Centro Tecnológico Palmas Altas (Seville) 193 The line “Other operating expenses” includes the amounts for the Group’s surface rights. The following table gives details of said commitments: 138 3 Year 2010: Company Solar Processes, S.A. Abengoa Solar New Technologies, S.A. Annual payment (in thousands of euros) Term (years) 30 60 30 12 30 Casaquemada Fotovolatica S.L. Solnova Electricidad Cuatro, S.A. 15 30 26 30 Solnova Electricidad, S.A. Solar Processes, S.A. 107 30 2 30 Sanlúcar Solar, S.A. Fotovoltaica Solar Sevilla, S.A. 42 30 7 Copero Solar Huerta Uno, S.A. 25 0.3 Copero Solar Huerta Dos, S.A. 25 0.3 Copero Solar Huerta Tres, S.A. 25 0.3 Copero Solar Huerta Cuatro, S.A. 25 0.2 Copero Solar Huerta Cinco, S.A. 25 0.2 Copero Solar Huerta Seis, S.A. 25 0.2 Copero Solar Huerta Siete, S.A. 25 0.2 Copero Solar Huerta Ocho, S.A. 25 0.2 Copero Solar Huerta Nueve, S.A. 25 0.2 Copero Solar Huerta Diez, S.A. 25 0.2 139 Extension (years) May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years 3 Year 2009: Annual payment (in thousands of euros) 60 Term (years) 30 Abengoa Solar New Technologies, S.A. 12 30 Casaquemada Fotovoltaica, S.L. 15 30 Solnova Electricidad Cuatro, S.A. 26 30 Solnova Electricidad, S.A. 107 30 Solar Processes, S.A. 2 30 Sanlúcar Solar, S.A. 42 30 Fotovoltaica Solar Sevilla, S.A. 7 30 Copero Solar Huerta Uno, S.A. 0.2 25 Copero Solar Huerta Dos, S.A. 0.2 25 Copero Solar Huerta Tres, S.A. 0.2 25 Copero Solar Huerta Cuatro, S.A. 0.2 25 Copero Solar Huerta Cinco, S.A. 0.2 25 Copero Solar Huerta Seis, S.A. 0.2 25 Copero Solar Huerta Siete, S.A. 0.2 25 Copero Solar Huerta Ocho, S.A. 0.2 25 Copero Solar Huerta Nueve, S.A. 0.2 25 Copero Solar Huerta Diez, S.A. 0.2 25 Company Solar Processes, S.A. Extension (years) May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years May be extended to 50 years The Group has signed surface rights contracts for the land, belonging to third parties or related companies, upon which the companies installations described above stand. During the term of these contracts a monthly payment is made, which is updated annually in accordance with the Consumer Price Index. At the end of the term of the contract, the grantee is obliged to return the buildings and installations in a normal condition and without any damage other than that caused by normal use. In relation to this obligation, the company has recognized the relevant provisions for dismantling and removal (see Note 18). There are no contractual purchase options on these sites. There are no future minimum payment commitments of significant amounts under finance lease agreements. The most significant future minimum payments under operating lease agreements due for payment in the next five years total 8,564 thousand euros. 140 3 Note 31.- Financial Income and Expenses The breakdown of Financial Income and Expenses at 31 December, 2010 and 31 December, 2009 was as follows: Financial income 31.12.2010 31.12.2009 6,264 2,002 - - 3,069 - - - 9,333 2,002 Amount at Amount at 31.12.2010 (51,634) 31.12.2009 (31,447) - Loans with financial institutions (22,476) (10,188) - Other debt Income from interest on debt Profits on financial assets at fair value Profits on interest rate contracts – non-accounting hedges Profits on interest rate contracts: fair value hedges Total Financial expenses Interest expense: (29,158) (21,259) Losses on interest rate contracts: cash flow hedges (1,003) (233) Losses on interest rate contracts: fair value hedges (2) Total (52,639) (31,680) Net financial expenses (43,306) (29,678) The “Other debt” heading includes 26,938 thousand euros (18,350 thousand euros at 31 December, 2009) relating to interest expense on debt with Abengoa, S.A., the parent company (see Notes 15 and 35.3). Note 32.- Other Net Financial Income / Expenses The breakdown of Other Net Financial Income/Expenses at 31 December, 2010 and 31 December, 2009 was as follows: Other financial income Amount at 31.12.10 Amount at 31.12.09 Other financial income 13,304 4,682 Total 13,304 4,682 Other financial expenses Amount at 31.12.10 Other financial losses Amount at 31.12.09 (2,465) Total (18,265) (2,465) Other net financial revenue/expenses (18,265) 10,839 (13,583) Other financial income basically includes the amounts for the reversal of provisions of 6,088 thousand euros, as well as 5.292 thousand euros for capitalisation of financial costs in Fixed Assets in Projects (see Note 6). 141 3 Other financial losses includes primarily the expense of settling hedging operations carried out in the year for an amount of 8,111 thousand euros (1,030 thousand euros in 2009), together with income from the capitalisation of financial costs in Fixed Assets in Projects for an amount of 10,790 thousand euros (see Note 6). In 2009, an expense of 7,867 thousand euros for the sale of availablefor-sale assets (see Note 10.1) was also included, as well as the provision that was subsequently reversed in 2010, mentioned above. Note 33.- Earnings per Share 33.1. Basic Earnings per Share Basic earnings per share are calculated by dividing the profit/loss attributable to the company shareholders by the weighted average number of outstanding ordinary shares during the year. Item Amount at 31/12/10 Loss from continuing activities attributable to shareholders Weighted average number of outstanding ordinary shares (thousands) Basic earnings per share (€ per share) Amount at 31/12/09 (10,859) (60,194) 9,765 989 (1.1) (60.9) In the calculation, information relating to the obligatorily convertible loan and the split of the shares, as described in Note 21, has been taken into account. 33.2. Diluted Earnings per Share The diluted earnings per share are calculated by dividing the profit/loss attributable to the parent company shareholders by the weighted average number of outstanding ordinary shares during the year, taking into account the diluting effects inherent to potential outstanding ordinary shares during the year. In the year ended 31 December, 2010, there were no diluting factors. 142 3 Note 34.- Financial Information by Segments 34.1 Information by Activity At 31 December, 2010, the segments identified for reporting purposes are the two business segments in which Abengoa Solar operates and on which it reports internally to the highest decisionmaking authority, as explained in Note 2.25. Likewise, said Note explains the reason for the change in segments in relation to the information presented at 31 December, 2009. The segments of Abengoa Solar are: ‐ Energy, which refers to the management, operation, maintenance and exploitation of thermosolar and photovoltaic plants and installations, and ‐ Technology, which includes both the new plant promotion activity and the sale of technology and components. a) The breakdown of the Income Statement by business segment for the years ended 31 December, 2010 and 31 December, 2009 was as follows: Energy Item Thermosolar Revenue Photovoltaic Technology & Promotion Total at 31.12.2010 47,983 9,546 110,620 168,149 6,244 5,282 17,389 28,915 II. Financial profit/(loss) (31,775) (5,310) 4,008 (33,077) IV. Consolidated profit/(loss) before tax (25,530) (28) 21,883 (3,675) (15,982) (20) 5,143 (10,859) I. Operating profit/(loss) VII. Profit/(loss) parent company 143 3 Energy Item Thermosolar Revenue Photovoltaic Technology & Promotion Total at 31.12.2009 13,100 10,566 92,258 115,924 I. Operating profit/(loss) 1,962 6,007 (70,903) (62,934) II. Financial profit/(loss) (6,992) (2,845) (33,464) (43,301) IV. Consolidated profit/(loss) before tax (5,030) 3,162 (104,178) (106,046) (3,576) 2,213 (58,831) (60,194) VII. Profit/(loss) parent company The data have been grouped into each one of the segments using consolidated amounts. Sales between segments are carried out under market conditions. Ordinary revenue from external customers which is reported to the highest decision-making authority is measured using criteria consistent with those applied in the Consolidated Income Statement. The amount of revenue for the two years is diversified among a number of customers. b) The breakdown of assets and liabilities by business segment at 31 December, 2010 and 31 December, 2009 was as follows: Energy Item Thermosolar Technology & Promotion Photovoltaic Adjustments on consolidation Total at 31.12.2010 Assets Property, plant & equipment Intangible assets Financial investments Other non-current assets Current assets Total assets 1,605,306 84,446 93,392 (115,369) 1,667,775 45,622 - 36,764 73 82,459 548,260 13,176 845,843 (1,231,571) 175,708 18,360 98 50,197 (7,674) 60,981 600,117 24,185 203,314 (70,408) 757,208 2,817,665 121,905 1,229,510 (1,424,949) 2,744,131 354,186 19,288 216,511 (561,863) 28,122 1,869,063 84,503 721,929 (802,513) 1,872,982 594,416 18,114 291,070 (60,573) 843,027 2,817,665 121,905 1,229,510 (1,424,949) 2,744,131 Liabilities Equity Non-current liabilities Current liabilities Total liabilities 144 3 Energy Item Thermosolar Technology & Promotion Photovoltaic Adjustments on consolidation Total at 31.12.2009 Assets Property, plant & equipment 859,996 87,625 95,433 47,493 1 25,861 126,377 10,784 322,143 (427,765) 31,539 12,940 251 38,020 42,286 93,497 270,869 28,384 211,003 (72,598) 437,658 1,317,675 127,045 692,460 (559,860) 1,577,320 75,925 17,715 173,308 (264,291) 2,657 Non-current liabilities 911,221 88,556 341,902 (233,421) 1,108,258 Current liabilities 330,529 20,774 177,250 (62,148) 466,405 1,317,675 127,045 692,460 (559,860) 1,577,320 Intangible assets Financial investments Other non-current assets Current assets Total assets (101,783) 941,271 73,355 Liabilities Equity Total liabilities Energy Item Thermosolar Additions to non-current assets (*) Photovoltaic - 733,334 811,252 Energy Thermosolar Additions to non-current assets (*) 31.12.2010 77,918 (*) Other than financial instruments and deferred tax assets Item Total at Technology & Promotion 333,263 Total at Technology & Promotion Photovoltaic - 31.12.2009 32,700 365,963 (*) Other than financial instruments and deferred tax assets The criteria employed to obtain the figures of assets and liabilities by business segment are described below: 1. The figures for each segment were grouped together using aggregated amounts for each Group company. 2. The “Adjustments upon consolidation” column includes adjustments that arise in the consolidation process, basically related to eliminating internal transactions between business segments. 145 3 c) The breakdown of Net Debt by business segment a 31 December, 2010 and 31 December, 2009 was as follows: Energy Item Thermosolar Photovoltaic Technology & Promotion Total at 31.12.2010 543,113 549,012 2,488 4,673 9,844 1,264,010 69,323 - 1,333,333 Current financial receivables (317,380) (5) (12,225) (329,610) Cash and cash equivalents (177,482) (9,949) (32,994) (220,425) 777,730 61,857 502,567 1,342,154 (1,264,010) (69,323) - (1,333,333) (486,280) (7,466) 502,567 8,821 Non-current and current debt with related companies 5,899 Non-current and current debt with official entities 2,683 Non-current and current non-recourse financing Total net debt Non-current and current non-recourse financing Total net debt (excluding non-recourse financing) Energy Item Thermosolar Non-current and current debt with related companies Non-current and current debt with official entities Non-current and current non-recourse financing Current financial receivables Cash and cash equivalents Total net debt Non-current and current non-recourse financing Total net debt (excluding non-recourse financing) Photovoltaic Technology & Promotion Total at 31.12.2009 275 821 228,390 229,486 2,932 2,283 2,743 7,958 660,143 223,655 1,839 885,637 (169,612) (111) (9,613) (179,336) (24,385) (9,638) (45,817) (79,840) 469,353 217,010 177,542 863,905 (660,143) (223,655) (1,839) (885,637) (190,790) (6,645) 175,703 (21,732) The criteria employed to obtain the figures of Net Debt by business segment are described below: 1. The figures for each segment were grouped together using aggregated amounts for each Group company. 2. When making the calculation, financial investments were included as a reduction in the Net Debt, since the items that form said heading are highly liquid and should not, therefore, be excluded from the calculation. 146 3 Note 35.- Other Information 35.1 Average number of employees The average number of employees at 31 December, 2010 and 31 December, 2009, distributed by categories, was as follows: Category Average No. 2010 Women Senior Management Middle Management % Total Men 4 22 6% Average No. 2009 Women % Total Men 5 22 7% 6 48 12% 5 38 11% Engineers and graduates 94 155 56% 83 138 57% Assistants and professionals 38 75 25% 34 59 24% 0 5 1% - 4 1% 142 305 100% 127 261 100% Workers Total The average number of people is distributed between 79.2% based in Spain (79.9% in 2009) and 20.8% abroad (20.1% in 2009). To accumulate this information, the totality of the companies that form part of the consolidated group have been considered solely in the cases where the full consolidation method is applied to them when preparing the consolidated financial statements. The average number of people employed in the Group’s joint ventures was 440 (434 in 2009), all of whom were in Spain. Of the total number of men and women at 31 December, 2010, 23 and 5, respectively, were members of Senior Management (21 men and 1 woman at 31 December, 2009). The distribution by sex of the employees of the Group’s joint ventures and temporary joint ventures at the 2010 year end was 36 women and 426 men (32 women and 409 men in 2009). The Group’s total headcount includes 4 disabled employees (2 men and 2 women). 35.2 Remuneration and Other Benefits The position of director of Abengoa Solar is not remunerated and directors no not receive any benefit for carrying out said function. Notwithstanding, some members of the Board of Directors form part of the Group’s Senior Management. The remuneration they receive for their functions in the different Group companies is described below. 147 3 The parent company does not provide any credits, advance payments or other types of benefit to former or current directors of the parent company or any of its subsidiaries as of the date of formulating these Consolidated Annual Financial Statements, except for the stock option and variable remuneration plans described below. The parent does not hold any pension or guarantee obligations with former or current members of the Board of Directors. At 31 December, 2010 and 2009, the members of the Board of Directors were the following: Miguel A. Jiménez-Velasco Mazario Pedro Robles Sánchez Santiago Seage Medela Since 19 June, 2003, when Law 26/2003 came into force, amending Law 24/1988 of 28 July on the Securities Market and the Revised Text of the Corporations Act, in order to reinforce the transparency of corporations, the members of the Board of Directors have not held interests in the capital of companies that carry on directly activities of a type that is the same as or analogous or complementary to those that form the corporate purpose of the parent company. Likewise, they have not carried on and do not carry on at present any activities, as self-employed persons or employees, of a type that is the same as or analogous or complementary to those that form the corporate purpose of Abengoa Solar, S.A., except for those described below: Mr. Santiago Seage Medela, Chairman of the company’s Board of Directors and legally-empowered representative of the company, forms part of the following companies, which, given the description of their corporate purposes, could carry on activities that are the same as or analogous or complementary to those carried on by Abengoa Solar, S.L.: Chairman of the Board of Directors of Abengoa Solar España, S.A. Chairman of the Board of Directors of Abengoa Solar New Technologies, S.A. Chairman of the Board of Directors of Abengoa Solar PV, S.A. Chairman of the Board of Directors of Abengoa Solar Extremadura, S.A. Chairman of the Board of Directors of Solar de Receptores de Andalucía, S.A. 148 3 Director of Hypesol Energy Holding, S.L. Chairman of the Board of Directors of Helios I Hyperion Energy Investments, S.L. Chairman of the Board of Directors of Helios II Hyperion Energy Investments, S.L. Deputy Chairman of the Board of Directors of Sol3g, S.L. Director of Abengoa Solar Internacional, S.A. Director of Abengoa Solar Ventures, S.A. Director of Abengoa Solar Power, S.A. Director of Écija Solar Inversiones, S.A. Director of Solnova Solar Inversiones, S.A. Director of Carpio Solar Inversiones, S.A. Director of Logrosan Solar Inversiones, S.A. Director of Rioglass Solar Holding, S.A. Director of Rioglass Solar, S.A. Director of Aznalcollar Solar, S.A Director of Almadén Solar, S.A. Director of Sanlúcar Solar, S.A. Director of Solar Processes , S.A. Director of Helionergy Electricidad Uno, S.A Director of Helionergy Electricidad Dos, S.A. Director of Helionergy Electricidad Tres, S.A. Director of Helionergy Electricidad Cuatro, S.A. Director of Helionergy Electricidad Cinco, S.A. Director of Helionergy Electricidad Seis, S.A. Director of Helionergy Electricidad Siete, S.A. Director of Helionergy Electricidad Ocho, S.A. Director of Helionergy Electricidad Nueve, S.A. Director of Helionergy Electricidad Diez, S.A. Director of Helionergy Electricidad Once, S.A. Director of Helionergy Electricidad Doce, S.A. Director of Helionergy Electricidad Trece, S.A. Director of Helionergy Electricidad Catorce, S.A. Director of Helionergy Electricidad Quince, S.A. Director of Helionergy Electricidad Dieciséis, S.A. Director of Helionergy Electricidad Diecisiete, S.A. 149 3 Director of Helionergy Electricidad Dieciocho, S.A. Director of Helionergy Electricidad Diecinueve, S.A. Director of Helionergy Electricidad Veinte, S.A. Director of Helionergy Electricidad Veintiuno, S.A. Director of Helionergy Electricidad Veintidós, S.A. Director of Helionergy Electricidad Veintitrés, S.A. Director of Helionergy Electricidad Veinticuatro, S.A. Director of Helionergy Electricidad Veinticinco, S.A. Director of Solaben Electricidad Uno, S.A. Director of Solaben Electricidad Dos, S.A. Director of Solaben Electricidad Tres, S.A. Director of Solaben Electricidad Cuatro, S.A. Director of Solaben Electricidad Cinco, S.A. Director of Solaben Electricidad Seis, S.A. Director of Solaben Electricidad Siete, S.A. Director of Solaben Electricidad Ocho, S.A. Director of Solaben Electricidad Nueve, S.A. Director of Solaben Electricidad Diez, S.A. Director of Solaben Electricidad Once, S.A. Director of Solaben Electricidad Doce, S.A. Director of Solaben Electricidad Trece, S.A. Director of Solaben Electricidad Catorce, S.A. Director of Solaben Electricidad Quince, S.A. Director of Solaben Electricidad Dieciséis, S.A. Director of Solaben Electricidad Diecisiete, S.A. Director of Solaben Electricidad Dieciocho, S.A. Director of Solaben Electricidad Diecinueve, S.A. Director of Solaben Electricidad Veinte, S.A. Director of Solargate Electricidad Uno, S.A. Director of Solargate Electricidad Dos, S.A. Director of Solargate Electricidad Tres, S.A. Director of Solargate Electricidad Cuatro, S.A. Director of Solargate Electricidad Cinco, S.A. Director of Solargate Electricidad Seis, S.A. 150 3 Director of Solargate Electricidad Siete, S.A. Director of Solargate Electricidad Ocho, S.A. Director of Solargate Electricidad Nueve, S.A. Director of Solargate Electricidad Diez, S.A. Director of Solargate Electricidad Once, S.A. Director of Solargate Electricidad Doce, S.A. Director of Solnova Electricidad, S.A. Director of Solnova Electricidad Dos, S.A. Director of Solnova Electricidad Tres, S.A. Director of Solnova Electricidad Cuatro, S.A. Director of Solnova Electricidad Cinco, S.A. Director of Solnova Electricidad Seis, S.A. Director of Solnova Electricidad Siete, S.A. Director of Solnova Electricidad Ocho, S.A. Director of Solnova Electricidad Nueve, S.A. Director of Solnova Electricidad Diez, S.A. Director of Solnova Electricidad Once, S.A. Director of Solnova Electricidad Doce, S.A. Director of Solacor Electricidad Uno, S.A. Director of Solacor Electricidad Dos, S.A. Director of Solacor Electricidad Tres, S.A. Director of Casaquemada Fotovoltaica, S.L. Director of Las Cabezas PV, S.L. Director of Las Cabezas Fotovoltaica, S.L. Director of Linares Fotovoltaica, S.L. Director of Aleduca, S.L. Director of Solúcar Andalucía FV1, S.A. Director of Solúcar Andalucía FV2, S.A. Director of Solúcar Extremadura FV1, S.A. Director of Solúcar Extremadura FV2, S.A. Director of Solúcar Castilla FV1, S.A. Director of Solúcar Castilla FV2, S.A. Director of Captasol Fotovoltáica 1, S.L. Director of Captasol Fotovoltáica 2, S.L. 151 3 Director of Captasol Fotovoltáica 3 S.L. Director of Captasol Fotovoltáica 4, S.L. Director of Captasol Fotovoltáica 5, S.L. Director of Captasol Fotovoltáica 6, S.L. Director of Captasol Fotovoltáica 7, S.L. Director of Captasol Fotovoltáica 8, S.L. Director of Captasol Fotovoltáica 9, S.L. Director of Captasol Fotovoltáica 10, S.L. Director of Captasol Fotovoltáica 11, S.L. Director of Captasol Fotovoltáica 12, S.L. Director of Captasol Fotovoltáica 13, S.L. Director of Captasol Fotovoltáica 14, S.L. Director of Captasol Fotovoltáica 15, S.L. Director of Captasol Fotovoltáica 16, S.L. Director of Captasol Fotovoltáica 17, S.L. Director of Captasol Fotovoltáica 18, S.L. Director of Captasol Fotovoltáica 19, S.L. Director of Captasol Fotovoltáica 20, S.A. Director of Captasol Fotovoltáica 21, S.A. Director of Captasol Fotovoltáica 22, S.A. Director of Captasol Fotovoltáica 23, S.A. Director of Captasol Fotovoltáica 24, S.A. Director of Captasol Fotovoltáica 25, S.A. Director of Captasol Fotovoltáica 26, S.A. Director of Captasol Fotovoltáica 27, S.A. Director of Captasol Fotovoltáica 28, S.A. Director of Captasol Fotovoltáica 29, S.A. Director of Captasol Fotovoltáica 30, S.A. Director of Captasol Fotovoltáica 31, S.A. Director of Captasol Fotovoltáica 32, S.A. Director of Captasol Fotovoltáica 33 , S.A. Director of Captasol Fotovoltáica 34, S.A. Director of Captasol Fotovoltáica 35, S.A. Director of Captasol Fotovoltáica 36 , S.A. 152 3 Director of Captasol Fotovoltáica 37, S.A. Director of Captasol Fotovoltáica 38, S.A. Director of Captasol Fotovoltáica 39, S.A. Director of Captasol Fotovoltáica 40, S.A. Director of Captasol Fotovoltáica 41, S.A. Director of Captasol Fotovoltáica 42, S.A. Director of Captasol Fotovoltáica 43, S.A. Director of Captasol Fotovoltáica 44, S.A. Director of Captasol Fotovoltáica 45, S.A. Director of Captasol Fotovoltáica 46, S.A. Director of Captasol Fotovoltáica 47, S.A. Director of Captasol Fotovoltáica 48, S.A. Director of Captasol Fotovoltáica 49, S.A. Director of Captasol Fotovoltáica 50, S.A. Director of Captasol Fotovoltáica 51, S.A. Director of Captasol Fotovoltáica 52, S.A. Director of Captasol Fotovoltáica 53, S.A. Director of Captasol Fotovoltáica 54, S.A. Director of Captasol Fotovoltáica 55, S.A. Director of Captasol Fotovoltáica 56, S.A. Director of Captasol Fotovoltáica 57, S.A. Director of Captasol Fotovoltáica 58, S.A. Director of Captasol Fotovoltáica 59, S.A. Director of Captasol Fotovoltáica 60, S.A. Director of Captasol Fotovoltáica 61, S.A. Director of Captasol Fotovoltáica 62, S.A. Director of Captasol Fotovoltáica 63, S.A. Director of Captasol Fotovoltáica 64, S.A. Director of Captasol Fotovoltáica 65, S.A. Director of Captasol Fotovoltáica 66, S.A. Director of Captasol Fotovoltáica 67 , S.A. Director of Captasol Fotovoltáica 68, S.A. Director of Captasol Fotovoltáica 69, S.A. Director of Captasol Fotovoltáica 70, S.A. 153 3 Director of Captasol Fotovoltáica 71, S.A. Director of Captasol Fotovoltáica 72, S.A. Director of Captasol Fotovoltáica 73, S.A. Director of Captasol Fotovoltáica 74, S.A. Director of Captasol Fotovoltáica 75, S.A. Director of Captasol Fotovoltáica 76, S.A. Director of Captasol Fotovoltáica 77, S.A. Director of Captasol Fotovoltáica 78, S.A. Director of Captasol Fotovoltáica 79, S.A. Director of Marismas PV A1, S.L. Director of Marismas PV A2, S.L. Director of Marismas PV A3, S.L. Director of Marismas PV A4, S.L. Director of Marismas PV A5, S.L. Director of Marismas PV A6, S.L. Director of Marismas PV A7, S.L. Director of Marismas PV A8, S.L. Director of Marismas PV A9, S.L. Director of Marismas PV A10, S.L. Director of Marismas PV A11, S.L. Director of Marismas PV A12, S.L. Director of Marismas PV A13, S.L. Director of Marismas PV A14, S.L. Director of Marismas PV A15, S.L. Director of Marismas PV A16, S.L. Director of Marismas PV A17, S.L. Director of Marismas PV A18, S.L. Director of Marismas PV B1, S.L. Director of Marismas PV B2, S.L. Director of Marismas PV B3, S.L. Director of Marismas PV B4, S.L. Director of Marismas PV B5, S.L. Director of Marismas PV B6, S.L. Director of Marismas PV B7, S.L. 154 3 Director of Marismas PV B8, S.L. Director of Marismas PV B9, S.L. Director of Marismas PV B10, S.L. Director of Marismas PV B11, S.L. Director of Marismas PV B12, S.L. Director of Marismas PV B13, S.L. Director of Marismas PV B14, S.L. Director of Marismas PV B15, S.L. Director of Marismas PV B16, S.L. Director of Marismas PV B17, S.L. Director of Marismas PV B18, S.L. Director of Marismas PV C1, S.L. Director of Marismas PV C2, S.L. Director of Marismas PV C3, S.L. Director of Marismas PV C4, S.L. Director of Marismas PV C5, S.L. Director of Marismas PV C6, S.L. Director of Marismas PV C7, S.L. Director of Marismas PV C8, S.L. Director of Marismas PV C9, S.L. Director of Marismas PV C10, S.L. Director of Marismas PV C11, S.L. Director of Marismas PV C12, S.L. Director of Marismas PV C13, S.L. Director of Marismas PV C14, S.L. Director of Marismas PV C15, S.L. Director of Marismas PV C16, S.L. Director of Marismas PV C17, S.L. Director of Marismas PV C18, S.L. Director of Marismas PV E1, S.L. Director of Marismas PV E2, S.L. Director of Marismas PV E3, S.L. 155 3 Mr. Pedro Robles Sánchez, Member of the Board of Directors and legally-empowered representative of the company, forms part of the following companies, which, give the description of their corporate purposes, could carry on activities that are the same as or analogous or complementary to those carried on by Abengoa Solar, S.L.: Director of Abengoa Solar España, S.A. Director of Abengoa Solar New Technologies, S.A. Director of Abengoa Solar PV, S.A. Director of Hypesol Energy Holding, S.L. Director of Helios I Hyperion Energy Investments, S.L. Director of Helios II Hyperion Energy Investments, S.L. Director of Solugás Energía, S.A. Director of Abengoa Solar Extremadura, S.A. Chairman of the Board of Directors of Fotovoltáica Solar Sevilla, S.A. Chairman of the Board of Directors of Écija Solar Inversiones, S.A. Chairman of the Board of Directors of Solnova Solar Inversiones, S.A. Chairman of the Board of Directors of Carpio Solar Inversiones, S.A. Chairman of the Board of Directors of Logrosan Solar Inversiones, S.A. Director of Evacuación Villanueva del Rey, S.L. Director of Evacuación Valdecaballeros, S.L. Chairman of the Board of Directors of Aznalcóllar Solar, S.A. Chairman of the Board of Directors of Almadén Solar, S.A. Chairman of the Board of Directors of Sanlúcar Solar, S.A. Chairman of the Board of Directors of Solar Processes, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Uno, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Dos, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Tres, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Cuatro, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Cinco, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Seis, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Siete, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Ocho, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Nueve, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Diez, S.A. 156 3 Chairman of the Board of Directors of Helioenergy Electricidad Once, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Doce, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Trece, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Catorce, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Quince, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Dieciséis, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Diecisiete, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Dieciocho, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Diecinueve, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Veinte, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Veintiuno, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Veintidós, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Veintitrés, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Veinticuatro, S.A. Chairman of the Board of Directors of Helioenergy Electricidad Veinticinco, S.A. Chairman of the Board of Directors of Solaben Electricidad Uno, S.A. Chairman of the Board of Directors of Solaben Electricidad Dos, S.A. Chairman of the Board of Directors of Solaben Electricidad Tres, S.A. Chairman of the Board of Directors of Solaben Electricidad Cuatro, S.A. Chairman of the Board of Directors of Solaben Electricidad Cinco, S.A. Chairman of the Board of Directors of Solaben Electricidad Seis, S.A. Chairman of the Board of Directors of Solaben Electricidad Siete, S.A. Chairman of the Board of Directors of Solaben Electricidad Ocho, S.A. Chairman of the Board of Directors of Solaben Electricidad Nueve, S.A. Chairman of the Board of Directors of Solaben Electricidad Diez, S.A. Chairman of the Board of Directors of Solaben Electricidad Once, S.A. Chairman of the Board of Directors of Solaben Electricidad Doce, S.A. Chairman of the Board of Directors of Solaben Electricidad Trece, S.A. Chairman of the Board of Directors of Solaben Electricidad Catorce, S.A. Chairman of the Board of Directors of Solaben Electricidad Quince S.A. Chairman of the Board of Directors of Solaben Electricidad Dieciséis, S.A. Chairman of the Board of Directors of Solaben Electricidad Diecisiete, S.A. Chairman of the Board of Directors of Solaben Electricidad Dieciocho, S.A. Chairman of the Board of Directors of Solaben Electricidad Diecinueve, S.A. 157 3 Chairman of the Board of Directors of Solaben Electricidad Veinte, S.A. Chairman of the Board of Directors of Solargate Electricidad Uno, S.A. Chairman of the Board of Directors of Solargate Electricidad Dos, S.A. Chairman of the Board of Directors of Solargate Electricidad Tres, S.A. Chairman of the Board of Directors of Solargate Electricidad Cuatro, S.A. Chairman of the Board of Directors of Solargate Electricidad Cinco, S.A. Chairman of the Board of Directors of Solargate Electricidad Seis, S.A. Chairman of the Board of Directors of Solargate Electricidad Siete, S.A. Chairman of the Board of Directors of Solargate Electricidad Ocho, S.A. Chairman of the Board of Directors of Solargate Electricidad Nueve, S.A. Chairman of the Board of Directors of Solargate Electricidad Diez, S.A. Chairman of the Board of Directors of Solargate Electricidad Once, S.A. Chairman of the Board of Directors of Solargate Electricidad Doce, S.A. Chairman of the Board of Directors of Solnova Electricidad, S.A. Chairman of the Board of Directors of Solnova Electricidad Dos, S.A. Chairman of the Board of Directors of Solnova Electricidad Tres, S.A. Chairman of the Board of Directors of Solnova Electricidad Cuatro, S.A. Chairman of the Board of Directors of Solnova Electricidad Cinco, S.A. Chairman of the Board of Directors of Solnova Electricidad Seis, S.A. Chairman of the Board of Directors of Solnova Electricidad Siete, S.A. Chairman of the Board of Directors of Solnova Electricidad Ocho, S.A. Chairman of the Board of Directors of Solnova Electricidad Nueve, S.A. Chairman of the Board of Directors of Solnova Electricidad Diez, S.A. Chairman of the Board of Directors of Solnova Electricidad Once, S.A. Chairman of the Board of Directors of Solnova Electricidad Doce, S.A. Director of Solacor Electricidad Uno, S.A. Director of Solacor Electricidad Dos, S.A. Chairman of the Board of Directors of Solacor Electricidad Tres, S.A. Mr. Miguel Ángel Jiménez Velasco Mazario, member of the Board of Directors and legallyempowered representative of the company, does not hold any positions in companies with a corporate purpose that is the same as or analogous or complementary to that of Abengoa Solar, S.A. (Art. 229 Capital Company Act). 158 3 As provided in Art. 231 of the Capital Company Act, no person related to the members of the Board of Directors hold any interest in the share capital of or any position or function in any company or companies with a corporate purpose that is the same as or analogous or complementary to that of Abengoa Solar, S.A. No situation of direct or indirect conflict of interest came into evidence in the years 2010 and 2009, as provided for is Art. 229 of the Capital Company Act. Remuneration of Senior Management The total annual remuneration (primarily salaries, social security and variable remuneration) of the General Managers of the parent company and persons performing equivalent functions in 2010 was 1,697 thousand euros of fixed remuneration and 1,043 thousand euros of variable remuneration (1,494 euros of fixed remuneration and 442 of variable remuneration in 2009). Of these amounts, approximately 485 euros of fixed remuneration and 843 thousand euros of variable remuneration related to the remuneration of members of Senior Management who were Executive Directors on the Board of Directors in 2010 (484 thousand euros of fixed remuneration and 325 thousand euros of variable remuneration in 2009). Group companies do not hold any obligations relating to pensions or any other type of complementary retirement remuneration with the Senior Management personnel. a) Stock option plans a.1) Plan for the acquisition of shares in Abengoa, S.A. Abengoa Solar forms part of a Plan for the Acquisition of Shares in its parent company, Abengoa, S.A., for Group management personnel (including that of Abengoa Solar), approved by the Board of Directors and the Extraordinary General Shareholders’ Meeting of the parent company (Abengoa, S.A.) on 16 October, 2005. The basic terms for Abengoa Solar are as follows: ‐ Beneficiaries: up to 6 members of Group Management (Business Group manager, Business Unit managers, technical and R&D managers and corporate services managers) who work for different present or future Abengoa Solar companies and who voluntarily wish to participate. The Plan establishes certain requirements for meeting individual annual management objectives for each manager and remaining with the Group. 159 3 ‐ Volume of shares: 181,500 shares of Abengoa, S.A., representing 0.001% of the company’s share capital. ‐ The Plan beneficiaries obtained a bank credit to purchase Abengoa shares, already issued and outstanding, at market price, in accordance with the Securities Market Act, with the guarantee of Abengoa, S.A. and exclusion of their personal liability, for an amount of 3 million euros (including expenses, commissions and interest). The repayment date of this credit is 7 August, 2011. ‐ The obligation to settle the transaction is held by the Plan’s promoter, Abengoa, S.A. On the above premises, the operation qualifies as a share-based payment transaction settled by equity instruments, since Abengoa Solar is not obliged to settle the transaction. Under these circumstances, the company receiving the goods and/or services must recognize the valuation of the Plan and, as the balancing item, the corresponding effect in equity, thus reflecting the consideration for the service rendered by the employees employed by Abengoa Solar who are subject to the Plan. The fair value of the managers’ services in exchange for the granting of the option is recognized in the Income Statement under the heading “Employee benefit expenses”. The total amount to be expensed over the accrual period is determined by reference to the fair value of a hypothetical put option granted by Abengoa, S.A. to the manager, excluding the impact of any accrual conditions other than market conditions. For these purposes, the calculation considers the number of options that are expected to be exercisable, which is updated at each year end, recognising the revision of the original estimates, if applicable, in the Income Statement. The fair value of the options granted in the year 2010 determined in accordance with the BlackScholes valuation model was an increase in expense of 278 thousand euros (expense of 695 thousand euros in 2009). The main input data in the model were the share price, an estimated yield per dividend, an expected life of the option of 5 years, an annual interest rate and a market volatility for the share. 160 3 a.2) Plan for acquisition of shares in Abengoa Solar, S.A. On 22 February, 2010, Abengoa Solar, S.A., with the consent of Abengoa, S.A., agreed to implement a Stock Option Plan that could be exercised only if the company is officially listed (or has formally initiated the listing process at the exercise date of the options). In the event that the company is not officially listed, Abengoa Solar will recognize extraordinary remuneration in favour of the beneficiary, which will be paid in cash and settled by the company. i) The principal terms of the Stock Option Plan are the following: ‐ The Stock Option Plan on shares of Abengoa Solar is addressed to a group of 44 specific people, including executive directors, members of the management team and other Group professionals, the total number of options granted being 44,495 (9,939 of which are for Directors and 18,819 for Senior Management). The number of options granted may be adjusted in accordance with contractually-established variables. ‐ The options are assigned on an individual basis, depending on the responsibility, performance and development potential of each beneficiary. ‐ The total volume of shares planned if all the beneficiaries meet their objectives represents 4.61% of the current share capital of Abengoa Solar, S.A. ‐ The cumulative conditions of the purchase option include: • • • the need for Abengoa Solar to be officially listed or to have formally initiated the process for listing at the exercise date of the options, meeting annual management objectives each year, the need to remain as an employee of Abengoa Solar for 5 years. ‐ The Plan is granted to the managers because of their employment relationship with the Group and a purchase option on the assigned shares is granted until 30 June, 2014 (the exercise date of the options is fixed as from 1 to 25 June, 2014). At the end of the period, provided the conditions have been met, Abengoa, S.A. is obliged to settle the Plan as established in the contract. ‐ The beneficiary has the option of purchasing the shares at the purchase price, which will be their nominal value (12.50 euros per share), payable in cash. If Abengoa Solar were in the process of stock market flotation during the period in which the option may be exercised, i.e. June 2014, the parties may agree for the beneficiary to adhere to the potential process of placing his shares on the stock exchange and deferring payment until said process is completed. 161 3 According to Abengoa Solar’s estimate, it is considered that, for the purposes of recognising the above mentioned Plan, certain conditions thereof cannot be classified as probable, since there are external factors that must be taken into account when determining the probability. ii) The principal terms of the extraordinary remuneration are: Abengoa Solar recognizes in favour of the beneficiary extraordinary remuneration to be paid in cash and settled by said company. In this case, the managers and directors are entitled to a fixed sum payable in cash, provided the conditions established are met: ‐ remaining as an employee of Abengoa Solar for 5 years, ‐ ‐ the meeting of annual management objectives each year, the meeting of Abengoa Solar’s 2013 consolidated budget as per the Strategic Plan. The total amount of the extraordinary remuneration to be settled is 3,457 thousand euros, assigned individually among the participating managers. In this case, said amount is not related to the value of the Abengoa Solar shares and will be recognized as a liability as the conditions are consolidated on a proportional basis in each year. Therefore, at the year end, since the conditions for the irrevocability of the Stock Option Plan were not met, the liability for the extraordinary remuneration was recognized in accordance with IAS 19. In the event that the conditions for it to qualify as a Stock Option Plan were met, it would be recognized in accordance with the provisions of IFRS 2. At the year end, the liability recognized under the heading “Employee benefits obligations” was 1,729 thousand euros (124 thousand euros of which related to Directors and 235 thousand euros to Senior Management), this same amount being recognized as a personnel expense in the Consolidated Income Statement for 2010, corresponding to the amount accrued in accordance with the percentage consolidation of the objectives fixed. In the year 2009, no amount was recognized, since the Plan was signed in 2010. 162 3 b) Variable remuneration plans On 24 July, 2006 and 11 December, 2006, the Board of Directors of Abengoa, S.A., the parent company, approved an Extraordinary Variable Remuneration Plan for managers of all the Group (Plan Dos) at the proposal of the Compensation and Nominating Committee. This Plan has 14 beneficiaries in Abengoa Solar for a total amount of 3,310 thousand euros, with a duration of five years from 2007 to 2011, inclusive. Its conditions include attaining, at personal level, the objectives set in the Strategic Plan and remaining as an employee over the period considered, among others. 35.3 Relations with Related Companies The transactions carried out be Abengoa Solar and its subsidiaries with the parent company, Abengoa, S.A., and the rest of the related companies are carried out at market value. As stated in Note 1, the balances and transactions that refer to related companies concern companies that, although they do not form part of the consolidated group of Abengoa Solar, do belong to the consolidated groups of Abengoa, S.A. and Inversión Corporative, S.A. and, therefore, are not eliminated in the consolidation process. A summary of the balances and transactions with related companies at 31 December, 2010 and 31 December, 2009 is shown below: 31/12/2010 Abengoa, S.A. Abener Energía, S.A. Teyma, Gest. Contratos Construcción Ing. Receivables (Note 12) Current Financial Debt (Note 15) Payables / Creditors (Note 17) Noncurrent Financial Debt (Note 15) Sales & Other Revenue Purchases & Other Expenses Financial Income Financial Expenses 104,753 11,276 16,883 526,231 277 (2,490) 4,109 (26,938) 27,682 101,258 - 5,898 63,796 (33,921) 130 (121) 21,086 16,958 - - 50,108 (114) 76 (0) Teyma USA & Abener Engineering - 115,125 - - - - - - UTE Abener Teyma Solacor- El Carpio I - 124,499 - - - - - - UTE Abener Teyma Solacor- El Carpio I I - 136,717 - - - - - - Shams One Company LLC 37,835 - - - - - - - Solar Power Plan One/SPA - - - - 23,489 - - - 13,764 205,120 23,546 529,379 16,883 532,129 9,875 147,545 (13,455) (49,980) 3 4,318 (1) (27,060) Other related parties Total 163 3 31/12/2009 Receivable s (Note 12) Payables / Creditors (Note 17) Noncurrent Financial Debt (Note 15) Current Financial Debt (Note 15) Sales & Other Revenu e Purchases & Other Expenses Financial Income Financial Expenses Abengoa, S.A. 26,753 36 9,745 210,137 76 (1,727) 672 (18,350) Abener Energía, S.A. 19,066 171,753 - 1,222 85,585 (13,444) - (19) 8,943 9,093 - - 25,394 - - - - 5,781 - - 11,607 - - - Other related parties 10,315 33,433 8,382 0 2,006 (12,704) - - Total 65,077 220,096 18,127 211,359 124,668 (27,876) 672 (18,369) Solar Power Plan One/SPA Abengoa Transmisión Norte, S.A. As stated in Notes 4, 5 and 6, the Group holds fixed asset construction contracts with related companies and, therefore, part of the fixed assets were constructed by related companies. Transactions carried out with related companies at 31 December, 2010 and 31 December, 2009 were: ‐ In order to adapt the cash flows of the thermosolar activities within the relevant business line, on 31 March, 2010, Abengoa Solar and Abener Energía, S.A. signed a transaction that took the form of a Total Return Swap (TRS) within the framework of a 1992 ISDA Master Agreement, under which Abener transferred to Abengoa Solar the economic rights derived from the 51% interest held by Abener in the company Solar Power Plan One/SPA (SPP1/SPA). On 31 May, 2010, Abengoa Solar and Abener decided to terminate the aforementioned TRS by signing another agreement in which the original agreement was terminated and the two parties waived the right to make any claim against each other in this respect. During the period the agreement was in force, no economic rights were accrued or settled and, therefore, the transaction had no accounting impact. ‐ Abengoa Solar España, S.A., Abengoa Solar New Technologies, S.A., Abengoa Solar PV, S.A. and Abengoa Solar, S.A. signed reciprocal current account credit contracts dated 1 January, 2009 with Abengoa, S.A. These were amended on 1 January, 2010. Under these contracts, both Abengoa, S.A. and any of aforementioned Abengoa Solar companies can reciprocally request funds from each other. The contracts are long term, as agreed between the parties. The daily account balance in favour of the company that has acted as lender accrues interest in accordance with the financing cost of Abengoa, S.A. This interest rate is revised annually on the basis of Euribor plus a market spread. The applicable rate during the year ended 31 December, 2010 was 8.35% (6.99% at 31 December, 2009). Interest is calculated and settled at the end of each financial year and upon maturity of the credit. 164 3 At financial level, this structure facilitates Abengoa Solar’s access to financing for the promotion of new projects and development of existing ones considerably, since it is not strictly necessary to resort to external financing sources such as bank financing. Abengoa, S.A. may also use the cash surpluses of the Abengoa Solar companies, which thus obtain a yield that facilitates the financing of Abengoa, S.A. At 31 December, 2010, the net debt with Abengoa, S.A. was 445,099 thousand euros (194,526 thousand euros at 31 December, 2009) (see Note 9). In relation to current debt, at 31 December, 2010, there was 20,245 thousand euros (9,745 thousand euros at 31 December, 2009) relating to debt with Abengoa, S.A. because it was the parent of the consolidated tax group and 16,883 thousand euros (8,356 thousand euros at 31 December, 2009) of debt with Abengoa due to the granting of the convertible loan explained in Note 21. ‐ On 2 January, 2008, Abengoa Solar España, S.A., Abengoa Solar New Technologies, S.A., Abengoa Solar PV, S.A. and Abengoa Solar S.A. signed service provision agreements with Abengoa, S.A. Under these agreements, Abengoa, S.A. provides them with general management services (economic/financial management, legal advice, tax advice, commercial management support, etc.) and corporate services specifically requested of Abengoa, S.A. by the Abengoa Solar companies. The agreements were for a term expiring on 31 December, 2008, but are extended automatically for annual periods if neither party notifies the other of its intention to terminate. The amount of this item in the year ended 31 December, 2010 was 2,088 thousand euros (1,392 thousand euros at 31 December, 2009) as a corporate fee and the remainder, 173 thousand euros (335 thousand euros at 31 December, 2009) was the transfer of costs and services provided for different items. ‐ The Abengoa Solar companies have signed a service provision agreement with Gestión Integral de Recursos Humanos, S.A. (“GIRH”), an Abengoa company, whereby GIRH provides the Abengoa Solar companies with certain services in relation to human resource management. Said services include the following: 165 3 o Personnel administration (administrative management of human resources in accordance with the legislation in force at any given time). o Training. o Recruitment. o Development (managing the career plans the Abengoa Solar employees and internal promotion). o Prevention of risks at work. o Labour relations (relations between the company and the workers). o Human resource management system. o For the year ended 31 December, 2010, the fees of GIRH for providing services to all the Abengoa Solar companies amounted approximately 236 thousand euros (193 thousand euros at 31 December, 2009). ‐ Abengoa Solar España, S.A., Abengoa Solar New Technologies, S.A:, Abengoa Solar PV, S.A., Abengoa Solar Inc. and Abengoa Solar PV have signed service provision contracts for the outsourcing of information technology, fixed and mobile IP telephony, licence support and other corporate projects with the Abengoa company Simosa IT, S.A. The contracts have been being signed for annual periods. The amount for this item in the year ended 31 December, 2010 was 1,419 thousand euros (1,240 thousand euros at the 2009 year end). ‐ Abengoa Solar España, S.A., Abengoa Solar New Technologies, S.A., Abengoa Solar PV, S.A. and Abengoa Solar, S.A. have signed a long-term office rental agreement for 5 years with Centro Tecnológico Palmas Altas, S.A. in Seville. In the year ended 31 December, 2010, the first full year at Campus Palmas Altas, expenses were 1,208 thousand euros (193 thousand euros at the 2009 year end). ‐ The Abengoa company Telvent Implantación de Sistemas, S.L.U. provides the Abengoa Solar companies with SAP system implementation services, including hardware and installation, software licences, platform construction and implementations. The amount of this item in the year ended 31 December, 2010 was 7,349 thousand euros (405 thousand euros at the 2009 year end), which is capitalised in the intangible assets (see Note 4). 166 3 ‐ Although there is no exclusivity agreement, Abengoa Solar entrusts the construction of its plants to Abener Energía, S.A. and Teyma Gestión de Contratos de Construcción e Ingeniería, S.A. under the turnkey system. Both of these related companies have the human, technical and financial resources necessary to guarantee the quality and efficiency required in the installations. As of today’s date, Abengoa Solar holds contracts with several temporary joint ventures (“UTEs”) formed by Abener Energía, S.A. and Teyma Gestión de Contratos de Construcción e Ingeniería, S.A. for the construction of the plants Helioenergy Electricidad Uno, S.A., Helioenergy Electricidad Dos, S.A., Solacor Electricidad Uno, S.A., Solacor Electricidad Dos, S.A., Solaben Electricidad Dos, S.A. and Solaben Electricidad Tres, S.A., which have work not yet executed of 560,562 thousand euros. At 31 December, 2009, the contracts signed with Abener Energía, S.A. related to the construction of the plants Solnova Electricidad, S.A. Solnova Electricidad Tres S.A. and Solnova Electricidad Cuatro, S.A., which had work not yet executed of 95,059 thousand euros. ‐ At 31 December, 2010, the amount included under the “Trade and other payables” heading for the acquisition of fixed assets, primarily from Abener Energía, S.A. and Teyma Gestión de Contratos de Construcción e Ingeniería, S.A., which was paid by the reverse factoring, was 288,071 thousand euros (205,921 thousand euros at the 2009 year end). ‐ Abengoa Solar, through its subcontractor Abener, has, as of today’s date, payment commitments with third parties for the supply of equipment for the projects included in the Preassignation Register of Royal Decree 6/2009 of 30 April. The maturity calendar for said commitments is: 64,767 thousand euros in 2011. Likewise, Abengoa Solar, in accordance with the requirements of the aforementioned Royal Decree, holds orders with other related companies for up to 50% of the equipment necessary for construction of the plants. ‐ Within the framework of its business strategy, Abengoa Solar signs agreements for the transfer of the use of the industrial property and technology know-how, together with site supervision and management. In return, a series of charges are made to Abener and Inabensa. Likewise, any engineering services that are carried out are billed. ‐ Sanlúcar Solar S.A., Solar Processes, S.A., Solnova Electricidad, S.A. and Solnova Electricidad Cuatro, S.A. hold surface rights that were signed with subsidiaries of Inversión Corporativa, the majority shareholder of Abengoa, S.A., Abengoa Solar’s parent, for a number of sites for a total amount of 1,648 thousand euros according to the contracts (same amount in 2009) 167 3 ‐ No transactions were carried out with the Group’s Directors or members of its Senior Management other than those disclosed above in these Notes. 35.4 Joint Ventures Details of Abengoa Solar’s interests in joint ventures are given in Appendices III and VIII. Details of the joint ventures and percentage interests at 31 December, 2010 and 31 December, 2009 are set forth below: Company 31.12.2010 Europea Construcciones Metálicas, S.A. Italgest Abengoa Solar Rioglass Solar 2 S.A. Rioglass Solar Holding, S.A Rioglass Solar Inc. Rioglass Solar S.A. Total Abengoa Solar Emirates Investment Company BV Total Abengoa Solar Emirates O&M Company BV Helioenergy Electricidad Uno, S.A. Helioenergy Electricidad Dos, S.A. 31.12.2009 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 - 50 100 50 100 The amounts shown below represent the Group’s share in the assets and liabilities and the sales and profits/(losses) of the joint ventures. These amounts are included in the Statement of Financial Position and Income Statement: 31.12.2010 31.12.2009 Assets: Non-current assets 349,730 Current assets 38,155 61,607 41,984 Liabilities: Non-current liabilities 270,230 Current liabilities 17,951 128,047 Revenue Expenses Profit / (loss) after tax 36,915 76,612 80,115 (63,552) (57,939) 13,060 168 22,176 3 There are no contingent liabilities relating to the Group’s interests in joint ventures. Likewise, there are no commitments to invest capital in said companies. 35.5 Temporary joint ventures (UTEs) Details of the Group’s interests in temporary joint ventures are given in Appendices III and VIII. The amounts shown below represent the Group’s share in the assets and liabilities and the sales and profits/(losses) of the temporary joint ventures. These amounts are included in the Statement of Financial Position and Income Statement: 31.12.2010 31.12.2009 Assets: Non-current assets 13,853 2,983 Current assets 15,945 31,350 Liabilities: Non-current liabilities Current liabilities 4,185 3,651 20,699 27,990 Revenue 34,944 29,696 Expenses (30,030) (27,003) 4,914 2,693 Profit / (loss) after tax There are no contingent liabilities relating to the Group’s interests in temporary joint ventures. 35.6 Audit Fees In the year 2010, fees of 613 thousand euros were accrued (182 thousand euros in 2009) for financial audit work, including both the year-end audit and the SOX internal control audit. Of said amount, 592 thousand euros (166 thousand euros in 2009) relate to the Group’s main auditor PricewaterhouseCoopers. Additionally, in 2010, audit firms were paid 779 thousand euros (402 thousand euros in 2009) for other work, basically for financial advisory and verification services in company purchase transactions. 329 thousand euros of this amount was paid to the main auditor (157 thousand in 2009). 169 3 35.7 Environmental Information Abengoa Solar, which, since its beginnings, has been committed to sustainable development and combating climate change, manages the attainment of its business objectives through a suitable policy that ensures the conservation of the environment while carrying on its business activity. In accordance with its environmental management policy, Abengoa has established the implementation of Environmental Management Systems meeting the requirements of ISO 14001 as a strategic objective for its companies overall. The environmental certification systems promote correct environmental management, limiting the risk associated with the environmental impact of our activities and compliance with the applicable legislation. It is within this framework that specific objectives are set for reducing any negative environmental impacts that the products and services developed may have and for eliminating or minimising the risk derived. In the permormance of the environmental management system, at the 2010 year end, the percentage of companies with Environmental Management Systems certified under ISO 14001 was 71% in relation to the sales volume (87% in 2009). In 2010, Abengoa Solar made an environmental investment of 32 thousand euros. In 2009, no environmental investment was made. 35.8 Events after the end of the reporting period On 25 February, 2011, through its United States subsidiary, Abengoa Solar made the first drawdown on the loan granted by the United States Federal Financial Bank (FFB), guaranteed by the United States Department of Energy (DOE), once the prior conditions had been met. Likewise, on 3 March, 2011, Shams Power Company concluded the financing of Shams 1. The transaction was concluded for an amount of 600 million dollars repayable over 22 years, with ten regional and international entities participating. Abengoa holds an indirect interest of 20% in this company. 170 3 g) Appendices 171 3 Appendix I Dependent companies included in the 2010 consolidation perimeter using the global integration method Corporate Name Registered Office Cost in Thousands of Euro % of Nominal Capital Company Holding the Interest (*) Activity (see page 8) Auditor Abengoa Hellas Solar Power Systems Limited Liabilities Company Athens (GR) 5 100,00 Abengoa Solar / Abengoa Solar PV - (1) C Abengoa Solar Australia Pty Limited Melbourne (AU) 0 100,00 Abengoa Solar Internacional - (3) A Abengoa Solar Engeneering (Beijing), Co. Ltd. Beijing (China) 103 100,00 Abengoa Solar - (3) - Abengoa Solar España S.A. Seville (ES) 500 100,00 Abengoa Solar / Abengoa Solar PV - (5) A 100,00 Abengoa Solar España / Abengoa Solar NT - (5) - 100,00 Abengoa Solar - (5) A 100,00 Abengoa Solar Internacional, S.A./Abengoa Solar, S.A. - (3) Abengoa Solar Extremadura S.A. Seville (ES) Abengoa Solar Inc. New York (USA) 60 155.896 Abengoa Solar India Private Limited Mahrashtra (IN) Abengoa Solar Internacional S.A. Seville (ES) 802 Abengoa Solar New Tecnologies S.A. Seville (ES) 3.986 1 Abengoa Solar Power, S.A. Seville (ES) 60 Abengoa Solar PV Inc. Colorado (USA) Abengoa Solar PV S.A. Seville (ES) Abengoa Solar Sicilia Sr.l Rome (IT) Abengoa Solar South Africa Pretoria (Sudáfrica Abengoa Solar Ventures S.A. Seville (ES) Aleduca S.L. Madrid (ES) Almadén Solar S.A. Seville (ES) Arizona Solar One Holding, LLC Colorado (USA) 26.640 100,00 Abengoa Solar Inc Arizona Solar One, LLC Colorado (USA) 26.640 100,00 Arizona Holding Company Ashalim Solar Power One Ltd. Tel Aviv (IS) 0 ASI Operations Inc. Colorado (USA) 0 - 100,00 Abengoa Solar / Abengoa Solar PV - (1) - 100,00 Abengoa Solar / Abengoa Solar España - (5) A (*) (5) - 8.971 100,00 Abengoa Solar / Abengoa Solar PV 100,00 Abengoa Solar - (5) - 12.846 100,00 Abengoa Solar / Abengoa Solar España - (5) A - 15 0 60 7.000 153 100,00 Abengoa Solar / Abengoa Solar PV - (1) 100,00 Abengoa Solar Internacional - (3) - 100,00 Abengoa Solar / Abengoa Solar PV - (5) - 100,00 Abengoa Solar PV - (5) - - (1) - (*) (1) A - (1) A 100,00 Abengoa Solar, S.A. (*) (1) A 100,00 Abengoa Solar Inc (*) (1) A 51,00 Abengoa Solar España Aznalcóllar Solar S.A. Seville (ES) 60 100,00 Abengoa Solar / Abengoa Solar España - (1) - Captasol Fotovoltaica 1 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 2 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 3 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 4 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 5 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 6 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 7 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 8 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 9 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 10 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 11 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 12 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 13 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 14 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 15 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 16 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 17 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 18 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 19 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica - (3) - Captasol Fotovoltaica 20 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 21 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 22 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 23 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 24 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 25 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 26 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 27 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 28 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 29 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 30 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 31 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 32 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 33 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 34 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 35 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 36 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 37 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 38 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica - (3) - Captasol Fotovoltaica 39 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 40 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 41 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 42 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 43 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 44 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 45 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 46 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 47 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - 172 3 Appendix I Dependent companies included in the 2010 consolidation perimeter using the global integration method.(continued) Interest Corporate Name Registered Office Cost in Thousands of Euro % of Nominal Capital Company Holding the Interest (*) Activity (see page 8) Auditor Captasol Fotovoltaica 48 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 49 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 50 S.L. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 51 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 52 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 53 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 54 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 55 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 56 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 57 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 58 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 59 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 60 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 61 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 62 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 63 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 64 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 65 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 66 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 67 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 68 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 69 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 70 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 71 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 72 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 73 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 74 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 75 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 76 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 77 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 78 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - (3) - Captasol Fotovoltaica 79 S.L. Seville (ES) 3 100,00 Abengoa Solar PV / Abengoa Solar España - Carpio Solar Inversiones, S.A. Seville (ES) 60 Casaquemada Fotovoltaica S.L. Seville (ES) 2.816 100,00 Abengoa Solar España / Abengoa Solar NT 100,00 Abengoa Solar PV / Abengoa Solar España - (3) (*) (1) - - (3) - Copero Solar Huerta Uno S.A. Seville (ES) 44 50,00 Abengoa Solar PV - (3) A Copero Solar Huerta Dos S.A. Seville (ES) 44 50,00 Abengoa Solar PV - (3) A Copero Solar Huerta Tres S.A Seville (ES) 44 50,00 Abengoa Solar PV - (3) A Copero Solar Huerta Cuatro S.A. Seville (ES) 44 50,00 Abengoa Solar PV - (3) A Copero Solar Huerta Cinco S.A. Seville (ES) 44 50,00 Abengoa Solar PV - (3) A Copero Solar Huerta Seis S.A. Seville (ES) 44 50,00 Abengoa Solar PV - (3) A Copero Solar Huerta Siete S.A. Seville (ES) 44 50,00 Abengoa Solar PV - (3) A Copero Solar Huerta Ocho S.A. Seville (ES) 44 50,00 Abengoa Solar PV - (3) A Copero Solar Huerta Nueve S.A. Seville (ES) 53 50,00 Abengoa Solar PV - (3) A 50,00 Abengoa Solar PV A Copero Solar Huerta Diez S.A. Seville (ES) 44 Cycon Solar, LTD Cyprus (GR) 0 Dimange Inversiones, S.L Madrid (ES) 3 Ecija Solar Inversiones S.A. Seville (ES) 60 Fotovoltaica Solar Sevilla S.A. Seville (ES) 800 Freener-g, LLC Minneapolis (USA) Gestión Evacuación Don Rodrigo, S.L. Seville (ES) 534 0 Harper Dry Lake Land Company LLC Delaware (USA) Helioenergy Electricidad Tres S.A. Seville (ES) 1 60 66,00 Abengoa Solar Internacional 100,00 Captasol Fotovoltaica 43 / Captasol Fotovoltaica 44 100,00 Abengoa Solar / Abengoa Solar España 80,00 Abengoa Solar España 76,00 Abengoa Solar 99,95 Solargate Electricidad 1, 2, 3, 4, 5, y Helioenergy Electricidad 11y 12 100,00 Abengoa Solar Inc 100,00 Abengoa Solar España / Abengoa Solar NT - (3) (*) (1) - (*) (5) - - (5) - - (3) A (*) (3) C - - (3) - - (1) - Helioenergy Electricidad Cuatro S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Cinco S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Seis S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Siete S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Ocho S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Nueve S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Diez S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Once S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Doce S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Trece S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Catorce S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Quince S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Dieciséis S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Diecisiete S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Dieciocho S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Diecinueve S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Veinte S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - 173 3 Appendix I Dependent companies included in the 2010 consolidation perimeter using the global integration method.(continued) Interest Corporate Name Registered Office Cost in Thousands of Euro % of Nominal Capital Company Holding the Interest (*) Activity (see page 8) Auditor Helioenergy Electricidad Veintiuno S.A Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Veintidós S.A Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Veintitrés S.A Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Veinticuatro S.A Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Helioenergy Electricidad Veinticinco S.A Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT Helios I Hyperion Energy Investments S.L. Seville (ES) 1.553 Helios II Hyperion Energy Investments S.L. Madrid (ES) 1.553 Hypesol Energy Holding S.L. Seville (ES) 5 Insolation 1 S.R.L. Rome (IT) Insolation 2 S.R.L. 85,00 Hypesol Energy Holding 85,00 Hypesol Energy Holding - (1) - - (1) A - (1) A 100,00 Abengoa Solar España - (1) - 15 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Rome (IT) 15 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation 3 S.R.L. Rome (IT) 16 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 4 S.R.L Rome (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 5 S.R.L Palermo (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 6 S.R.L Palermo (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 7.R.L Palermo (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 8 S.R.L Palermo (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 9 S.R.L Palermo (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 10 S.R.L Palermo (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 11 S.R.L Palermo (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 12 S.R.L Palermo (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 13 S.R.L Palermo (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 14 S.R.L. Palermo (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 15 S.R.L. Rome (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 16 S.R.L. Rome (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 17 S.R.L. Rome (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 18 S.R.L. Rome (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 19 S.R.L. Rome (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Insolation Sic 20 S.R.L. Rome (IT) 10 100,00 Abengoa Solar PV / Abengoa Solar - (3) - Khi CSP South Africa (Pty) Limited. Gauteng (SDF) 100,00 Abengoa Solar South Africa (Pyt) Ltd (*) (1) A 100,00 Abengoa Solar South Africa (Pyt) Ltd 0 Kaxu CSP South Africa (Pty) Limited Gauteng (SDF) Las Cabezas Fotovoltaica S.L. Seville (ES) 7.193 0 Las Cabezas PV, S.L. Seville (ES) 3 Linares Fotovoltaica S.L. Seville (ES) 3.173 Logrosan Solar Inversiones, S.A. Extremadura Marismas PV A1 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV Marismas PV A2 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV 60 (*) (1) A 100,00 Abengoa Solar PV / Abengoa Solar España - (3) A 100,00 Aleduca, S.L. - (3) - 100,00 Abengoa Solar PV / Abengoa Solar España - (3) A 100,00 Abengoa Solar España / Abengoa Solar NT (*) (1) - - (3) - - (3) - Marismas PV A3 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A4 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A5 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A6 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A7 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A8 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A9 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A10 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A11 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A12 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A13 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A14 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A15 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A16 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A17 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV A18 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B1 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B2 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B3 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B4 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B5 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B6 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B7 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B8 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B9 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B10 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B11 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B12 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B13 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B14 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B15 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B16 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV B17 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - 174 3 Appendix I Dependent companies included in the 2010 consolidation perimeter using the global integration method.(continued) Interest Corporate Name Registered Office Cost in Thousands of Euro % of Nominal Capital Company Holding the Interest (*) Activity (see page 8) Auditor - Marismas PV B18 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) Marismas PV C1 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C2 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C3 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C4 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C5 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C6 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C7 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C8 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C9 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C10 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C11 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C12 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C13 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C14 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C15 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C16 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C17 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV C18 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV E1 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV E2 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marismas PV E3 S.L. Seville (ES) 123 100,00 Las Cabezas Fotovoltaicas / Abengoa Solar PV - (3) - Marudhara Akshay Urja Private Limited Maharashtra (IN) 8 100,00 Abengoa Solar India Private Limited/Abengoa Solar Internacional (*) (1) A Marusthal Green Power Private Limited Maharashtra (IN) 8 100,00 Abengoa Solar India Private Limited/Abengoa Solar Internacional (*) (1) A Mojave Solar LLC Berkeley (USA) 1 100,00 Abengoa Solar Inc - (1) - Rajathan Photon Energy Maharashtra (IN) 0 100,00 Abengoa Solar India Private Limited/Abengoa Solar Internacional (*) (1) A Sanlúcar Solar S.A. Seville (ES) Sol3G Barcelona (ES) 7 6.762 Solaben Electricidad Uno, S.A Badajoz (ES) 60 Solaben Electricidad Dos, S.A. Badajoz (ES) 31.511 87,99 Abengoa Solar España 100,00 Abengoa Solar 100,00 Abengoa Solar España / Abengoa Solar NT 70,00 Logrosan Solar Inversiones / Abengoa Solar NT 70,00 Logrosan Solar Inversiones / Abengoa Solar NT - (1) A - (4) C - (1) - - (1) A A Solaben Electricidad Tres, S.A. Badajoz (ES) 36.729 - (1) Solaben Electricidad Cuatro, S.A. Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Cinco,S.A. Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Seis, S.A. Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Siete S.A. Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Ocho S.A. Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Nueve S.A. Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Diez S.A. Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Once S.A. Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Trece S.A Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Catorce S.A. Solaben Electricidad Doce S.A. Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Quince S.A Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) Solaben Electricidad Dieciséis S.A Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Diecisiete S.A Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Dieciocho S.A Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solaben Electricidad Diecinueve S.A Badajoz (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - 60 100,00 Abengoa Solar España / Abengoa Solar NT Solaben Electricidad Veinte S.A Badajoz (ES) Solacor Electricidad Uno S.A. Seville (ES) 42.069 - (1) - 74,00 Carpio Solar Inversiones - (1) A Solacor Electricidad Dos S.A. Seville (ES) 38.513 Solacor Electricidad Tres S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT 74,00 Carpio Solar Inversiones - (1) A - (1) Solar de Receptores de Andalucía S.A. Seville (ES) 60 100,00 Abengoa Solar / Abengoa Solar NT - - (4) - Solar Processes S.A. Seville (ES) 15 - (1) A Solargate Electricidad Uno S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT 99,99 Abengoa Solar España - (1) - Solargate Electricidad Dos S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solargate Electricidad Tres S.A. Seville (ES) 62 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solargate Electricidad Cuatro S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solargate Electricidad Cinco S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solargate Electricidad Seis S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solargate Electricidad Siete S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solargate Electricidad Ocho S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) Solargate Electricidad Nueve S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solargate Electricidad Diez S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solargate Electricidad Once S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solargate Electricidad Doce S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solnova Electricidad S.A. AZ-50 Seville (ES) 30.986 99,99 Solnova Solar Inversiones 100,00 Abengoa Solar España / Abengoa Solar - (1) A Solnova Electricidad Dos S.A. Seville (ES) 60 - (1) - Solnova Electricidad Tres S.A. Seville (ES) 30.110 99,99 Solnova Solar Inversiones - (1) A Solnova Electricidad Cuatro S.A. Seville (ES) 28.964 99,99 Solnova Solar Inversiones - (1) A 175 3 Appendix I Dependent companies included in the 2010 consolidation perimeter using the global integration method.(continued) Interest Corporate Name Registered Office Cost in Thousands of Euro % of Nominal Capital Company Holding the Interest (*) Activity (see page 8) Auditor Solnova Electricidad Cinco S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar - (1) - Solnova Electricidad Séis S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solnova Electricidad Siete S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solnova Electricidad Ocho S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solnova Electricidad Nueve S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solnova Electricidad Diez S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solnova Electricidad Once S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solnova Electricidad Doce S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (1) - Solnova Solar Inversiones S.A. Seville (ES) 60 100,00 Abengoa Solar España / Abengoa Solar NT - (5) A Solúcar Andalucía FV1 S.A. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar NT - (3) B Solúcar Andalucía FV2 S.A. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar NT - (3) - Solúcar Castilla FV1 S.A. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar NT - (3) - Solúcar Castilla FV2 S.A. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar NT - (3) - Solúcar Extremadura FV1 S.A. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar NT - (3) - Solúcar Extremadura FV2 S.A. Seville (ES) 60 100,00 Abengoa Solar PV / Abengoa Solar NT - (3) - Solugas Energía S.A. Seville (ES) 60 100,00 Abengoa Solar NT / Abengoa Solar - (1) - Son Rivieren (Pty) Limited Gauteng (SDF) (*) (1) A 0 100,00 Abengoa Solar South Africa (Pyt) Ltd Activity (1) Thermosolar Energy area of activity. (2) Thermosolar Components area of activity. (3) Photovoltaic Energy area of activity. (4) Photovoltaic Components area of activity. (5) Other activities. (*) Companies incorporated or acquired that joined the consolidated group during the year. Auditor A Audited by PricewaterhouseCoopers B Audited by Auditoría y Consulta. C Audited by Other Auditors. 176 3 Appendix II Associated Companies included in the 2010 Consolidation Perimeter using the Participation Method Interest Corporate Name Registered Office Cost in Thousands of Euros % Capital Company Holding the Interest (*) Art. of R.D. 1815/91 Activity Auditor Construcciones Metálicas Mexicanas Comemsa, SA de CV Celaya (Mex) 2.186 25,00 Eucomsa - (5) A Cedisolar, S.A. Galicia (ES) 4.992 28,75 Rioglass Solar Holding - (4) - Evacuación Valdecaballeros 2009 S.L. Madrid (ES) 1.024 33,97 Solaben 1, 2, 3 y 6 (*) - (1) - 32,82 Helioenergy 1 Helioenergy 2 Helioenergy 3 - Evacuación Villanueva del Rey, S.L. Seville (ES) 2 (*) - (1) Fundación Soland Seville (ES) 30,00 20,00 Abengoa Solar España (*) - (5) - Shams One Company LLC Abu-Dhabi 6.360 20,00 TASEIC (*) - (1) A Shams Power company PJSC Abu-Dhabi 84.101 20,00 TASEIC (*) - (1) A Activity (1) Thermosolar Energy area of activity. (2) Thermosolar Components area of activity. (3) Photovoltaic Energy area of activity. (4) Photovoltaic Components area of activity. (5) Other activities. (*) Companies incorporated or acquired that joined the consolidated group during the year. Auditor A Audited by PricewaterhouseCoopers B Audited by Auditoría y Consulta. C Audited by Other Auditors. 177 3 Appendix III Joint Ventures included in the 2010 consolidation Perimeter using the proportional integration Method Interest Corporate Name Registered Office Cost in Thousands of Euros % Capital 15 Company Holding the Interest in the Joint Venture (*) Art. of R.D. 1815/91 Activity (see page 3) Italgest Abengoa Solar Rome (IT) 50,00 Abengoa Solar - - (1) Helioenergy Electricidad Uno, S.A. Seville (ES) 32.687 50,00 Ecija Solar Inversiones - - (1) Helioenergy Electricidad Dos, S.A. Seville (ES) 31.761 50,00 Ecija Solar Inversiones - - (1) Rioglass Solar Holding, S.A Asturias (ES) 500 50,00 Abengoa Solar - 5º 3 (5) Rioglass Solar S.A. Asturias (ES) 6.906 50,00 Rioglass Solar Holding - 5º 3 (4) Rioglass Solar Inc. Delaware (USA 758 50,00 Rioglass Solar Holding - - (4) Rioglass Solar 2 Asturias (AU) 60 - - (4) Total Abengoa Solar Emirates O&M Company BV Amsterdam 105 50,00 Abengoa Solar Ventures 50,00 Rioglass Solar Holding (*) - (1) Total Abengoa Solar Emirates Investment Company BV Amsterdam 50 50,00 Abengoa Solar Ventures - - (1) Europea Construcciones Metálicas, S.A. Seville (ES) 3.500 50,00 Abengoa Solar - c (5) Ute Abener Hassi R'Mel Construction Algiers (DZ) - 30,00 Abengoa Solar New Technologies - 4º2.a (5) Ute Inabensa-Eucomsa-Perú Seville (ES) 450 15,00 Eucomsa - - (5) UTE Abener Hassi R´Mel O&M Seville (ES) 0 (*) - (5) 30,00 Abengoa Solar España Activity (1) Thermosolar Energy area of activity. (2) Thermosolar Components area of activity. (3) Photovoltaic Energy area of activity. (4) Photovoltaic Components area of activity. 178 3 Appendix IV Companies with Electricity Operation included in the 2010 Consolidated Perimeter Corporate Name Activity (*) Comments Athens (GR) (1) In construction phase Abengoa Solar Australia Pty Limited Melbourne (AU) (1) In construction phase Abengoa Solar Engeneering (Beijing), Co. Ltd. Beijing (China) (1) In construction phase Abengoa Solar India Private Limited Mahrashtra (IN) (1) In construction phase Abengoa Solar Sicilia Sr.l Rome (IT) (1) In construction phase Abengoa Solar South Africa Pretoria (Sudáfrica) (1) In construction phase Almadén Solar S.A. Seville (ES) (1) Operational Arizona Solar One, LLC Colorado (USA) (1) In construction phase Aznalcóllar Solar, S.A. Seville (ES) (1) In construction phase Abengoa Hellas Solar Power Systems Limited Liabilities Company Registered Office Ashalim Solar Power One Ltd. Tel Aviv (IS) (1) In construction phase Captasol Fotovoltaica 1 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 2 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 3 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 4 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 8 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 9 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 10 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 11 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 12 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 13 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 14 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 15 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 16 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 17 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 18 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 19 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 20 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 21 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 22 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 23 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 24 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 25 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 26 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 27 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 28 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 29 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 30 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 31 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 32 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 33 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 34 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 35 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 36 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 37 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 38 S.L. Seville (ES) (3) Operational Captasol Fotovoltaica 39 S.L. Seville (ES (3) Operational Captasol Fotovoltaica 40 S.L. Seville (ES (3) Operational 179 3 Appendix IV Companies with Electricity Operation included in the 2010 Consolidated Perimeter (continued) Corporate Name Registered Office Activity (*) Comments Captasol Fotovoltaica 41 S.L. Seville (ES (3) Operational Captasol Fotovoltaica 42 S.L. Seville (ES (3) Operational Captasol Fotovoltaica 43 S.L. Seville (ES (3) Operational Captasol Fotovoltaica 44 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 45 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 46 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 47 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 48 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 49 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 50 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 51 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 52 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 53 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 54 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 55 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 56 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 57 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 58 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 59 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 60 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 61 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 62 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 63 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 64 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 65 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 66 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 67 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 68 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 69 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 70 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 71 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 72 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 73 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 74 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 75 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 76 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 77 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 78 S.L. Seville (ES (3) In construction phase Captasol Fotovoltaica 79 S.L. Seville (ES (3) In construction phase Casaquemada Fotovoltaica S.L. Seville (ES) (3) Operational Cedisolar, S.A. Galicia (ES) (4) Operational Copero Solar Huerta Uno S.A. Seville (ES) (3) Operational Copero Solar Huerta Dos S.A. Seville (ES) (3) Operational Copero Solar Huerta Tres S.A Seville (ES) (3) Operational Copero Solar Huerta Cuatro S.A. Seville (ES) (3) Operational Copero Solar Huerta Cinco S.A. Seville (ES) (3) Operational 180 3 Appendix IV Companies with Electricity Operation included in the 2010 Consolidated Perimeter (continued) Corporate Name Registered Office Activity (*) Comments Copero Solar Huerta Seis S.A. Seville (ES) (3) Operational Copero Solar Huerta Siete S.A. Seville (ES) (3) Operational Copero Solar Huerta Ocho S.A. Seville (ES) (3) Operational Copero Solar Huerta Nueve S.A. Seville (ES) (3) Operational Copero Solar Huerta Diez S.A. Seville (ES) (3) Operational Cycon Solar, LTD Evacuación Valdecaballeros 2009 S.L. Evacuación Villanueva del Rey, S.L. Cyprus Madrid (ES) Seville (ES) (1) In construction phase (1) In construction phase (1) In construction phase Fotovoltaica Solar Sevilla S.A. Seville (ES) (3) Operational Freener-g, LLC Minneapolis (USA) (4) Operational Gestión Evacuación Don Rodrigo, S.L. Seville (ES) (1) In construction phase Harper Dry Lake Land Company LLC Delaware (USA) (1) In construction phase Helioenergy Electricidad Uno S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Dos S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Tres S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Cuatro S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Cinco S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Seis S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Siete S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Ocho S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Nueve S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Diez S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Once S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Doce S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Trece S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Catorce S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Quince S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Dieciséis S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Diecisiete S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Dieciocho S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Diecinueve S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Veinte S.A. Seville (ES) (1) In construction phase Helioenergy Electricidad Veintiuno S.A Seville (ES) (1) In construction phase Helioenergy Electricidad Veintidós S.A Seville (ES) (1) In construction phase Helioenergy Electricidad Veintitrés S.A Seville (ES) (1) In construction phase Helioenergy Electricidad Veinticuatro S.A Seville (ES) (1) In construction phase Helioenergy Electricidad Veinticinco S.A Seville (ES) (1) In construction phase Helios I Hyperion Energy Investments S.L. Seville (ES) (1) In construction phase Helios II Hyperion Energy Investments S.L. Madrid (ES) (1) In construction phase 181 3 Appendix IV Companies with Electricity Operation included in the 2010 Consolidated Perimeter (continued) Activity (*) Comments Insolation 1 S.R.L. Corporate Name Rome (IT) Registered Office (3) In construction phase Insolation 2 S.R.L. Rome (IT) (3) In construction phase Insolation 3 S.R.L. Rome (IT) (3) In construction phase Insolation Sic 4 S.R.L Rome (IT) (3) In construction phase Insolation Sic 5 S.R.L Palermo (IT) (3) In construction phase Insolation Sic 6 S.R.L Palermo (IT) (3) In construction phase Insolation Sic 7.R.L Palermo (IT) (3) In construction phase Insolation Sic 8 S.R.L Palermo (IT) (3) In construction phase Insolation Sic 9 S.R.L Palermo (IT) (3) In construction phase Insolation Sic 10 S.R.L Palermo (IT) (3) In construction phase Insolation Sic 11 S.R.L Palermo (IT) (3) In construction phase Insolation Sic 12 S.R.L Palermo (IT) (3) In construction phase Insolation Sic 13 S.R.L Palermo (IT) (3) In construction phase Insolation Sic 14 S.R.L. Palermo (IT) (3) In construction phase Insolation Sic 15 S.R.L. Rome (IT) (3) In construction phase Insolation Sic 16 S.R.L. Rome (IT) (3) In construction phase Insolation Sic 17 S.R.L. Rome (IT) (3) In construction phase Insolation Sic 18 S.R.L. Rome (IT) (3) In construction phase Insolation Sic 19 S.R.L. Rome (IT) (3) In construction phase Insolation Sic 20 S.R.L. Rome (IT) (3) In construction phase Italgest Abengoa Solar, S.r.l.. Rome (IT) (3) In construction phase Kaxu CSP South Africa (Pty) Limited Gauteng (SDF) (1) In construction phase Khi CSP South Africa (Pty) Limited. Gauteng (SDF) (1) In construction phase Las Cabezas Fotovoltaica S.L. Seville (ES) (3) Operational Las Cabezas PV, S.L. Seville (ES) (3) In construction phase Linares Fotovoltaica S.L. Seville (ES) (3) Operational Marismas PV A1 S.L. Seville (ES) (3) Operational Marismas PV A2 S.L. Seville (ES) (3) Operational Marismas PV A3 S.L. Seville (ES) (3) Operational Marismas PV A4 S.L. Seville (ES) (3) Operational Marismas PV A5 S.L. Seville (ES) (3) Operational Marismas PV A6 S.L. Seville (ES) (3) Operational Marismas PV A7 S.L. Seville (ES) (3) Operational Marismas PV A8 S.L. Seville (ES) (3) Operational Marismas PV A9 S.L. Seville (ES) (3) Operational Marismas PV A10 S.L. Seville (ES) (3) Operational Marismas PV A11 S.L. Seville (ES) (3) Operational Marismas PV A12 S.L. Seville (ES) (3) Operational Marismas PV A13 S.L. Seville (ES) (3) Operational Marismas PV A14 S.L. Seville (ES) (3) Operational Marismas PV A15 S.L. Seville (ES) (3) Operational Marismas PV A16 S.L. Seville (ES) (3) Operational Marismas PV A17 S.L. Seville (ES) (3) Operational Marismas PV A18 S.L. Seville (ES) (3) Operational Marismas PV B1 S.L. Seville (ES) (3) Operational Marismas PV B2 S.L. Seville (ES) (3) Operational Marismas PV B3 S.L. Seville (ES) (3) Operational Marismas PV B4 S.L. Seville (ES) (3) Operational Marismas PV B5 S.L. Seville (ES) (3) Operational Marismas PV B6 S.L. Seville (ES) (3) Operational 182 3 Appendix IV Companies with Electricity Operation included in the 2010 Consolidated Perimeter (continued) Corporate Name Marismas PV B7 S.L. Registered Office Seville (ES) Activity (*) (3) Comments Operational Marismas PV B8 S.L. Seville (ES) (3) Operational Marismas PV B9 S.L. Seville (ES) (3) Operational Marismas PV B10 S.L. Seville (ES) (3) Operational Marismas PV B11 S.L. Seville (ES) (3) Operational Marismas PV B12 S.L. Seville (ES) (3) Operational Marismas PV B13 S.L. Seville (ES) (3) Operational Marismas PV B14 S.L. Seville (ES) (3) Operational Marismas PV B15 S.L. Seville (ES) (3) Operational Marismas PV B16 S.L. Seville (ES) (3) Operational Marismas PV B17 S.L. Seville (ES) (3) Operational Marismas PV B18 S.L. Seville (ES) (3) Operational Marismas PV C1 S.L. Seville (ES) (3) Operational Marismas PV C2 S.L. Seville (ES) (3) Operational Marismas PV C3 S.L. Seville (ES) (3) Operational Marismas PV C4 S.L. Seville (ES) (3) Operational Marismas PV C5 S.L. Seville (ES) (3) Operational Marismas PV C6 S.L. Seville (ES) (3) Operational Marismas PV C7 S.L. Seville (ES) (3) Operational Marismas PV C8 S.L. Seville (ES) (3) Operational Marismas PV C9 S.L. Seville (ES) (3) Operational Marismas PV C10 S.L. Seville (ES) (3) Operational Marismas PV C11 S.L. Seville (ES) (3) Operational Marismas PV C12 S.L. Seville (ES) (3) Operational Marismas PV C13 S.L. Seville (ES) (3) Operational Marismas PV C14 S.L. Seville (ES) (3) Operational Marismas PV C15 S.L. Seville (ES) (3) Operational Marismas PV C16 S.L. Seville (ES) (3) Operational Marismas PV C17 S.L. Seville (ES) (3) Operational Marismas PV C18 S.L. Seville (ES) (3) Operational Marismas PV E1 S.L. Seville (ES) (3) Operational Marismas PV E2 S.L. Seville (ES) (3) Operational Marismas PV E3 S.L. Seville (ES) (3) Operational Marudhara Akshay Urja Private Limited Maharashtra (IN) (1) In construction phase Mojave Solar LLC Berkeley (USA) (1) In construction phase Rajathan Photon Energy Maharashtra (IN) (1) In construction phase Rioglass Solar 2, S.A. Asturias (ES) (2) Operational Rioglass Solar, S.A Asturias (ES) (2) Operational Sanlúcar Solar S.A. Seville (ES) (1) Operational Shams Power company PJSC Abu-Dhabi (1) In construction phase Sol3G Barcelona (ES) (4) Operational 183 3 Appendix IV Companies with Electricity Operation included in the 2010 Consolidated Perimeter (continued) Activity (*) Comments Solaben Electricidad Uno, S.A. Corporate Name Badajoz (ES) Registered Office (1) In construction phase Solaben Electricidad Dos, S.A. Badajoz (ES) (1) In construction phase Solaben Electricidad Tres, S.A. Badajoz (ES) (1) In construction phase Solaben Electricidad Cuatro, S.A. Badajoz (ES) (1) In construction phase Solaben Electricidad Cinco, S.A. Badajoz (ES) (1) In construction phase Solaben Electricidad Seis, S.A. Badajoz (ES) (1) In construction phase Solaben Electricidad Siete S.A. Badajoz (ES) (1) In construction phase Solaben Electricidad Ocho S.A. Badajoz (ES) (1) In construction phase Solaben Electricidad Nueve S.A. Badajoz (ES) (1) In construction phase Solaben Electricidad Diez S.A. Badajoz (ES) (1) In construction phase Solaben Electricidad Once S.A. Badajoz (ES) (1) In construction phase Solaben Electricidad Doce S.A. Badajoz (ES) (1) In construction phase Solaben Electricidad Trece S.A Badajoz (ES) (1) In construction phase Solaben Electricidad Catorce S.A. Badajoz (ES) (1) In construction phase Solaben Electricidad Quince S.A Badajoz (ES) (1) In construction phase Solaben Electricidad Dieciséis S.A Badajoz (ES) (1) In construction phase Solaben Electricidad Diecisiete S.A Badajoz (ES) (1) In construction phase Solaben Electricidad Dieciocho S.A Badajoz (ES) (1) In construction phase Solaben Electricidad Diecinueve S.A Badajoz (ES) (1) In construction phase Solaben Electricidad Veinte S.A Badajoz (ES) (1) In construction phase Solacor Electricidad Uno S.A. Seville (ES) (1) In construction phase Solacor Electricidad Dos S.A. Seville (ES) (1) In construction phase Solacor Electricidad Tres S.A. Seville (ES) (1) In construction phase Solar de Receptores de Andalucía S.A. Seville (ES) (4) Operational Solar Processes S.A. Seville (ES) (1) Operational Solargate Electricidad Uno S.A. Seville (ES) (1) In construction phase Solargate Electricidad Dos S.A. Seville (ES) (1) In construction phase Solargate Electricidad Tres S.A. Seville (ES) (1) In construction phase Solargate Electricidad Cuatro S.A. Seville (ES) (1) In construction phase Solargate Electricidad Cinco S.A. Seville (ES) (1) In construction phase Solargate Electricidad Seis S.A. Seville (ES) (1) In construction phase Solargate Electricidad Siete S.A. Seville (ES) (1) In construction phase Solargate Electricidad Ocho S.A. Seville (ES) (1) In construction phase Solargate Electricidad Nueve S.A. Seville (ES) (1) In construction phase Solargate Electricidad Diez S.A. Seville (ES) (1) In construction phase 184 3 Appendix IV Companies with Electricity Operation included in the 2010 Consolidated Perimeter (continued) Activity (*) Comments Solargate Electricidad Once S.A. Corporate Name Seville (ES) Registered Office (1) In construction phase Solargate Electricidad Doce S.A. Seville (ES) (1) In construction phase Solnova Electricidad S.A. AZ-50 Seville (ES) (1) Operational Solnova Electricidad Dos S.A. Seville (ES) (1) In construction phase Solnova Electricidad Tres S.A. Seville (ES) (1) Operational Solnova Electricidad Cuatro S.A. Seville (ES) (1) Operational Solnova Electricidad Cinco S.A. Seville (ES) (1) In construction phase Solnova Electricidad Séis S.A. Seville (ES) (1) In construction phase Solnova Electricidad Siete S.A. Seville (ES) (1) In construction phase Solnova Electricidad Ocho S.A. Seville (ES) (1) In construction phase Solnova Electricidad Nueve S.A. Seville (ES) (1) In construction phase Solnova Electricidad Diez S.A. Seville (ES) (1) In construction phase Solnova Electricidad Once S.A. Seville (ES) (1) In construction phase Solnova Electricidad Doce S.A. Seville (ES) (1) In construction phase Solúcar Andalucía FV1 S.A. Seville (ES) (3) In construction phase Solúcar Andalucía FV2 S.A. Seville (ES) (3) In construction phase Solúcar Castilla FV1 S.A. Seville (ES) (3) In construction phase Solúcar Castilla FV2 S.A. Seville (ES) (3) In construction phase Solúcar Extremadura FV1 S.A. Seville (ES) (3) In construction phase Solúcar Extremadura FV2 S.A. Seville (ES) (3) In construction phase Son Rivieren (Pty) Limited Gauteng (SDF) (1) In construction phase Marusthal Green Power Private Limited India (1) In construction phase Activity (1) Thermosolar Energy area of activity. (2) Thermosolar Components area of activity. (3) Photovoltaic Energy area of activity. (4) Photovoltaic Components area of activity. 185 3 Appendix V Companies Taxed under the Special Regime for Company Groups at 31.12.2010 Corporate Name Abengoa Solar S.A Abengoa Solar Internacional, S.A. Abengoa Solar España Abengoa Solar Extremadura, S.A. Abengoa Solar New Technologies, S.A. Abengoa Solar Power, S.A. Abengoa Solar PV, S.A. Abengoa Solar Venture, S.A. Aleduca, S.L. Aznalcollar Solar, S.A. Captasol Fotovoltaica 1 S.L. Captasol Fotovoltaica 2 S.L. Captasol Fotovoltaica 3 S.L. Captasol Fotovoltaica 4 S.L. Captasol Fotovoltaica 5 S.L. Captasol Fotovoltaica 6 S.L. Captasol Fotovoltaica 7 S.L. Captasol Fotovoltaica 8 S.L. Captasol Fotovoltaica 9 S.L. Captasol Fotovoltaica 10 S.L. Captasol Fotovoltaica 11 S.L. Captasol Fotovoltaica 12 S.L. Captasol Fotovoltaica 13 S.L. Captasol Fotovoltaica 14 S.L. Captasol Fotovoltaica 15 S.L. Captasol Fotovoltaica 16 S.L. Captasol Fotovoltaica 17 S.L. Captasol Fotovoltaica 18 S.L. Captasol Fotovoltaica 19 S.L. Captasol Fotovoltaica 20 S.L. Captasol Fotovoltaica 21 S.L. Captasol Fotovoltaica 22 S.L. Captasol Fotovoltaica 23 S.L. Captasol Fotovoltaica 24 S.L. Captasol Fotovoltaica 25 S.L. Captasol Fotovoltaica 26 S.L. Captasol Fotovoltaica 27 S.L. Captasol Fotovoltaica 28 S.L. Captasol Fotovoltaica 29 S.L. Captasol Fotovoltaica 30 S.L. Captasol Fotovoltaica 31 S.L. Captasol Fotovoltaica 32 S.L. Captasol Fotovoltaica 33 S.L. Captasol Fotovoltaica 34 S.L. Captasol Fotovoltaica 35 S.L. Captasol Fotovoltaica 36 S.L. Captasol Fotovoltaica 37 S.L. Tax Address Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Company Holding the Interest Abengoa / Abengoa Solar España Abengoa Solar / Abengoa Solar PV Abengoa Solar / Abengoa Solar PV Abengoa Solar España / Abengoa Solar NT Abegoa Solar / Abengoa Solar España Abengoa Solar / Abengoa Solar PV Abegoa Solar / Abengoa Solar España Abengoa Solar / Abengoa Solar PV Abengoa Solar PV Abengoa Solar / Abengoa Solar España Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Linares Fotovoltaica 186 3 Appendix V Companies Taxed under the Special Regime for Company Groups at 31.12.2010 (continued) Corporate Name Captasol Fotovoltaica 38 S.L. Captasol Fotovoltaica 39 S.L. Captasol Fotovoltaica 40 S.L. Captasol Fotovoltaica 41 S.L. Captasol Fotovoltaica 42 S.L. Captasol Fotovoltaica 43 S.L. Captasol Fotovoltaica 44 S.L. Captasol Fotovoltaica 45 S.L. Captasol Fotovoltaica 46 S.L. Captasol Fotovoltaica 47 S.L. Captasol Fotovoltaica 48 S.L. Captasol Fotovoltaica 49 S.L. Captasol Fotovoltaica 50 S.L. Captasol Fotovoltaica 51 S.L. Captasol Fotovoltaica 52 S.L. Captasol Fotovoltaica 53 S.L. Captasol Fotovoltaica 54 S.L. Captasol Fotovoltaica 55 S.L. Captasol Fotovoltaica 56 S.L. Captasol Fotovoltaica 57 S.L. Captasol Fotovoltaica 58 S.L. Captasol Fotovoltaica 59 S.L. Captasol Fotovoltaica 60 S.L. Captasol Fotovoltaica 61 S.L. Captasol Fotovoltaica 62 S.L. Captasol Fotovoltaica 63 S.L. Captasol Fotovoltaica 64 S.L. Captasol Fotovoltaica 65 S.L. Captasol Fotovoltaica 66 S.L. Captasol Fotovoltaica 67 S.L. Captasol Fotovoltaica 68 S.L. Captasol Fotovoltaica 69 S.L. Captasol Fotovoltaica 70 S.L. Captasol Fotovoltaica 71 S.L. Captasol Fotovoltaica 72 S.L. Captasol Fotovoltaica 73 S.L. Captasol Fotovoltaica 74 S.L. Captasol Fotovoltaica 75 S.L. Captasol Fotovoltaica 76 S.L. Captasol Fotovoltaica 77 S.L. Captasol Fotovoltaica 78 S.L. Captasol Fotovoltaica 79 S.L. Carpio Solar Inversiones, S.A. Casaquemada Fotovoltaica S.L. Ecija Solar Inversiones S.A. Eucomsa Fotovoltaica Solar Sevilla S.A. Tax Address Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Company Holding the Interest Abengoa Solar PV / Linares Fotovoltaica Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar España / Abengoa Solar NT Abengoa Solar PV Abengoa Solar / Abengoa Solar España Abengoa Solar Abengoa Solar España 187 3 Appendix V Companies Taxed under the Special Regime for Company Groups at 31.12.2010 (continued) Corporate Name Helioenergy Electricidad Tres S.A. Helioenergy Electricidad Cuatro S.A. Helioenergy Electricidad Cinco S.A. Helioenergy Electricidad Seis S.A. Helioenergy Electricidad Siete S.A. Helioenergy Electricidad Ocho S.A. Helioenergy Electricidad Nueve S.A. Helioenergy Electricidad Diez S.A. Helioenergy Electricidad Once S.A. Helioenergy Electricidad Doce S.A. Helioenergy Electricidad Trece S.A. Helioenergy Electricidad Catorce S.A. Helioenergy Electricidad Quince S.A. Helioenergy Electricidad Dieciséis S.A. Helioenergy Electricidad Diecisiete S.A. Helioenergy Electricidad Dieciocho S.A. Helioenergy Electricidad Diecinueve S.A. Helioenergy Electricidad Veinte S.A. Helioenergy Electricidad Veintiuno S.A Helioenergy Electricidad Veintidós S.A Helioenergy Electricidad Veintitrés S.A Helioenergy Electricidad Veinticuatro S.A Helioenergy Electricidad Veinticinco S.A Helios I Hyperion Energy Investments S.L. Helios II Hyperion Energy Investments S.L. Hypesol Energy Holding S.L. Las Cabezas Fotovoltaica S.L. Las Cabezas PV, S.L. Linares Fotovoltaica S.L. Logrosan Solar Inversiones, S.A. Marismas PV A1 S.L. Marismas PV A2 S.L. Marismas PV A3 S.L. Marismas PV A4 S.L. Marismas PV A5 S.L. Tax Address Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Extremadura (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Company Holding the Interest Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España Abengoa Solar España / Abengoa Solar NT Abengoa Solar España Abengoa Solar España Abengoa Solar España Abengoa Solar España Hypesol Energy Holding Hypesol Energy Holding Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Aleduca S.L. Abengoa Solar PV Abengoa Solar España, Abengoa Solar NT Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV 188 3 Appendix V Companies Taxed under the Special Regime for Company Groups at 31.12.2010 (continued) Corporate Name Marismas PV A6 S.L. Marismas PV A7 S.L. Marismas PV A8 S.L. Marismas PV A9 S.L. Marismas PV A10 S.L. Marismas PV A11 S.L. Marismas PV A12 S.L. Marismas PV A13 S.L. Marismas PV A14 S.L. Marismas PV A15 S.L. Marismas PV A16 S.L. Marismas PV A17 S.L. Marismas PV A18 S.L. Marismas PV B1 S.L. Marismas PV B2 S.L. Marismas PV B3 S.L. Marismas PV B4 S.L. Marismas PV B5 S.L. Marismas PV B6 S.L. Marismas PV B7 S.L. Marismas PV B8 S.L. Marismas PV B9 S.L. Marismas PV B10 S.L. Marismas PV B11 S.L. Marismas PV B12 S.L. Marismas PV B13 S.L. Marismas PV B14 S.L. Marismas PV B15 S.L. Marismas PV B16 S.L. Marismas PV B17 S.L. Marismas PV B18 S.L. Marismas PV C1 S.L. Marismas PV C2 S.L. Marismas PV C3 S.L. Marismas PV C4 S.L. Marismas PV C5 S.L. Marismas PV C6 S.L. Marismas PV C7 S.L. Marismas PV C8 S.L. Marismas PV C9 S.L. Marismas PV C10 S.L. Marismas PV C11 S.L. Marismas PV C12 S.L. Marismas PV C13 S.L. Marismas PV C14 S.L. Tax Address Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Company Holding the Interest Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV 189 3 Appendix V Companies Taxed under the Special Regime for Company Groups at 31.12.2010 (continued) Corporate Name Marismas PV C15 S.L. Marismas PV C16 S.L. Marismas PV C17 S.L. Marismas PV C18 S.L. Marismas PV E1 S.L. Marismas PV E2 S.L. Marismas PV E3 S.L. Sanlúcar Solar S.A. Sol3G Solaben Electricidad Uno, S.A Solaben Electricidad Cuatro, S.A. Solaben Electricidad Cinco,S.A. Solaben Electricidad Seis, S.A. Solaben Electricidad Siete S.A. Solaben Electricidad Ocho S.A. Solaben Electricidad Nueve S.A. Solaben Electricidad Diez S.A. Solaben Electricidad Once S.A. Solaben Electricidad Doce S.A. Solaben Electricidad Trece S.A Solaben Electricidad Catorce S.A. Solaben Electricidad Quince S.A Solaben Electricidad Dieciséis S.A Solaben Electricidad Diecisiete S.A Solaben Electricidad Dieciocho S.A Solaben Electricidad Diecinueve S.A Solaben Electricidad Veinte S.A Solacor Electricidad Tres S.A. Solar de Receptores de Andalucía S.A. Solar Processes S.A. Solargate Electricidad Uno S.A. Solargate Electricidad Dos S.A. Solargate Electricidad Tres S.A. Solargate Electricidad Cuatro S.A. Solargate Electricidad Cinco S.A. Solargate Electricidad Seis S.A. Solargate Electricidad Siete S.A. Solargate Electricidad Ocho S.A. Solargate Electricidad Nueve S.A. Solargate Electricidad Diez S.A. Solargate Electricidad Once S.A. Solargate Electricidad Doce S.A. Solnova Electricidad S.A. AZ-50 Solnova Electricidad Dos S.A. Tax Address Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Valles (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Badajoz (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Company Holding the Interest Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Abengoa Solar España Abengoa Solar Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar / Abengoa Solar NT Abengoa Solar España Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Solnova Solar Inversiones Abengoa Solar España / Abengoa Solar 190 3 Appendix V Companies Taxed under the Special Regime for Company Groups at 31.12.2010 (continued) Corporate Name Solnova Electricidad Tres S.A. Solnova Electricidad Cuatro S.A. Solnova Electricidad Cinco S.A. Solnova Electricidad Séis S.A. Solnova Electricidad Siete S.A. Solnova Electricidad Ocho S.A. Solnova Electricidad Nueve S.A. Solnova Electricidad Diez S.A. Solnova Electricidad Once S.A. Solnova Electricidad Doce S.A. Solnova Solar Inversiones S.A. Solúcar Andalucía FV1 S.A. Solúcar Andalucía FV2 S.A. Solúcar Castilla FV1 S.A. Solúcar Castilla FV2 S.A. Solúcar Extremadura FV1 S.A. Solúcar Extremadura FV2 S.A. Solugas Energía S.A. Tax Address Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Seville (ES) Company Holding the Interest Solnova Solar Inversiones Solnova Solar Inversiones Abengoa Solar España / Abengoa Solar Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar PV / Abengoa Solar NT Abengoa Solar PV / Abengoa Solar NT Abengoa Solar PV / Abengoa Solar NT Abengoa Solar PV / Abengoa Solar NT Abengoa Solar PV / Abengoa Solar NT Abengoa Solar PV / Abengoa Solar NT Abengoa Solar NT / Abengoa Solar 191 3 Appendix VI Dependent companies included in the 2009 consolidation perimeter using the global integration method Interest Corporate Name Abengoa Hellas Solar Power Systems Limited Liabilities Company Abengoa Solar Australia Pty Limited Abengoa Solar Engeneering (Beijing), Co. Ltd. Abengoa Solar España S.A. Cost in % of Registered Office Thousands Nominal Company Holding the Interest of Euro Capital Athens (Greece) 4 99,30 Abengoa Solar / Abengoa Solar PV Melbourne (AU) 0 (*) Activity Auditor (1) - 100,00 Abengoa Solar Internacional (*) (3) - (*) (3) - (5) A Beijing (China) 103 100,00 Abengoa Solar Sevilla (Spain) 500 99,99 Abengoa Solar Abengoa Solar Extremadura S.A. Sevilla (Spain) Abengoa Solar Inc. New York (USA) Abengoa Solar India Private Limited S.A) Sevilla (Spain) 60 Abengoa Solar New Tecnologies S.A. Sevilla (Spain) 3.986 Mahrashtra (IN) 60 122.399 7 100,00 Abengoa Solar España / Abengoa Solar NT (5) - 100,00 Abengoa Solar (5) A (3) - 100,00 Abengoa Solar Internacional / Abengoa Solar (*) 99,90 Abengoa Solar / Abengoa Solar PV (1) - 99,99 Abengoa Solar (5) A Abengoa Solar PV Inc. Sevilla (Spain) 4.684 100,00 Abengoa Solar (5) - Abengoa Solar PV S.A. Sevilla (Spain) 9.060 100,00 Abengoa Solar / Abengoa Solar España (5) A Abengoa Solar Sicilia Sr.l Abengoa Solar South Africa (1) - Pretoria (South Afric Abengoa Solar Ventures S.A. Sevilla (Spain) Aleduca S.L. Madrid (Spain) Almadén Solar S.A. Sevilla (Spain) Arizona Solar One Colorado (USA) Rome (Italy) 10 100 60 7.000 153 1 100,00 Abengoa Solar / Abengoa Solar PV 100,00 Abengoa Solar 99,90 Abengoa Solar / Abengoa Solar PV 100,00 Abengoa Solar PV 51,00 Abengoa Solar España 100,00 Abengoa Solar Inc (*) (3) - (5) - (5) - (1) - (1) - Aznalcóllar Solar S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España (1) - Captasol Fotovoltaica 1 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 2 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 3 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 4 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 5 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 6 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 7 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 8 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 9 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 10 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 11 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 12 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 13 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 14 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 15 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 16 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 17 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 18 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 19 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Casaquemada Fotovoltaica (3) - Captasol Fotovoltaica 20 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 21 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 22 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 23 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 24 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 25 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 26 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 27 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 28 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 29 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 30 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 31 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 32 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 33 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 34 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 35 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 36 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 37 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 38 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Linares Fotovoltaica (3) - Captasol Fotovoltaica 39 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 40 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 41 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 42 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 43 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 44 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 45 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 46 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 47 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 48 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 49 S.L. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar España (3) - 192 3 Appendix VI Dependent companies included in the 2009 consolidation perimeter using the global integration method.(continued) Interest Captasol Fotovoltaica 50 S.L. Cost in % of Registered Office Thousands Nominal Company Holding the Interest of Euro Capital Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 51 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 52 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 53 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 54 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 55 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 56 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 57 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 58 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 59 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 60 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 61 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 62 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 63 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 64 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 65 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 66 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 67 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 68 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 69 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 70 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 71 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 72 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 73 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 74 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 75 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 76 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 77 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 78 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Captasol Fotovoltaica 79 S.L. Sevilla (Spain) 3 100,00 Abengoa Solar PV / Abengoa Solar España (3) - Casaquemada Fotovoltaica S.L. (formerly Egeria Densam S.L) Sevilla (Spain) 2.816 100,00 Abengoa Solar PV (3) A Copero Solar Huerta Uno S.A. Sevilla (Spain) 44 50,00 Abengoa Solar España (3) A Copero Solar Huerta Dos S.A. Sevilla (Spain) 44 50,00 Abengoa Solar España (3) A Copero Solar Huerta Tres S.A Sevilla (Spain) 44 50,00 Abengoa Solar España (3) A Copero Solar Huerta Cuatro S.A. Sevilla (Spain) 44 50,00 Abengoa Solar España (3) A Copero Solar Huerta Cinco S.A. Sevilla (Spain) 44 50,00 Abengoa Solar España (3) A Copero Solar Huerta Seis S.A. Sevilla (Spain) 44 50,00 Abengoa Solar España (3) A Copero Solar Huerta Siete S.A. Sevilla (Spain) 44 50,00 Abengoa Solar España (3) A Copero Solar Huerta Ocho S.A. Copero Solar Huerta Nueve S.A. Sevilla (Spain) 44 50,00 Abengoa Solar España (3) A Sevilla (Spain) 44 50,00 Abengoa Solar España (3) A Copero Solar Huerta Diez S.A. Sevilla (Spain) 44 50,00 Abengoa Solar España (3) A Ecija Solar Inversiones S.A (formerly Copero Solar S.A.) Sevilla (Spain) 60 100,00 Abengoa Solar España (5) - Fotovoltaica Solar Sevilla S.A. Sevilla (Spain) 800 (3) A Freener-g, LLC Minneapolis (USA) 534 (3) C Harper Dry Lake Land Company LLC Delaware (USA) Helio Energy Electricidad Uno S.A. Sevilla (Spain) Corporate Name 1 60 (*) 80,00 Abengoa Solar España,S.A. 76,00 Abengoa Solar 100,00 Abengoa Solar Inc (*) 100,00 Abengoa Solar España / Écija Solar Inversiones Activity Auditor (3) - (1) - Helio Energy Electricidad Dos S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Écija Solar Inversiones (1) - Helio Energy Electricidad Tres S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Cuatro S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Cinco S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Seis S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Siete S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Ocho S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Nueve S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Diez S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Once S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Doce S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Trece S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Catorce S.A. Helio Energy Electricidad Quince S.A. Sevilla (Spain) Sevilla (Spain) 60 60 100,00 Abengoa Solar España / Abengoa Solar NT 100,00 Abengoa Solar España / Abengoa Solar NT (1) (1) - Helio Energy Electricidad Dieciséis S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Diecisiete S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Dieciocho S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Diecinueve S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helio Energy Electricidad Veinte S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Helioenergy Electricidad Veintiuno S.A Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (*) (1) - Helioenergy Electricidad Veintidós S.A Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (*) (1) - 193 3 Appendix VI Dependent companies included in the 2009 consolidation perimeter using the global integration method.(continued) Interest Helioenergy Electricidad Veintitrés S.A Cost in % of Registered Office Thousands Nominal Company Holding the Interest of Euro Capital Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (*) (1) Helioenergy Electricidad Veinticuatro S.A Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (*) (1) - Helioenergy Electricidad Veinticinco S.A Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (*) (1) - Corporate Name (*) Activity Auditor - Helios I Hyperion Energy Investments S.L. Sevilla (Spain) 1.497 80,00 Hypesol Energy Holding, S.L. (*) (1) B Helios II Hyperion Energy Investments S.L. Madrid (Spain) 1.497 80,00 Hypesol Energy Holding, S.L. (*) (1) B Hypesol Energy Holding S.L. Sevilla (Spain) 5.353 100,00 Abengoa Solar España (1) - Insolation 1 S.R.L. Rome (Italy) 0 100,00 Abengoa Solar PV / Abengoa Solar (3) - Insolation 2 S.R.L. Roma (taly) 0 100,00 Abengoa Solar PV / Abengoa Solar (3) - Insolation 3 S.R.L. Roma (Italy) 0 100,00 Abengoa Solar PV / Abengoa Solar (3) - Insolation Sic 4 S.R.L Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (3) - (*) Insolation Sic 5 S.R.L Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 6 S.R.L Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 7.R.L Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) Insolation Sic 8 S.R.L Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 9 S.R.L Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 10 S.R.L Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 11 S.R.L Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 12 S.R.L Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 13 S.R.L Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 14 S.R.L. Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 15 S.R.L. Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 16 S.R.L. Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 17 S.R.L. Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 18 S.R.L. Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 19 S.R.L. Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Insolation Sic 20 S.R.L. Palermo (Italy) 10 100,00 Abengoa Solar PV / Abengoa Solar (*) (3) - Las Cabezas Fotovoltaica S.L. (formerly Orjinella S.L.) Sevilla (Spain) 7.193 100,00 Abengoa Solar PV / Abengoa Solar España (3) A Las Cabezas PV, S.L. Sevilla (Spain) 3 Linares Fotovoltaica S.L. (formerly Stellata World S.L. ) Sevilla (Spain) 3.173 100,00 Aleduca, S.L. (3) - 100,00 Abengoa Solar PV / Abengoa Solar España (3) A Marismas PV A1 S.L. (formerly Andalucita Uno S.L) Sevilla (Spain) Marismas PV A2 S.L. (formerly Abelsonita Dos S.L.) Sevilla (Spain) 7.000 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) Marismas PV A3 S.L. (formerly Andersonita Tres S.L.) - Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A4 S.L. (formerly Aquilarita Cuatro S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A5 S.L. (formerly Akermanita Cinco S.L. ) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A6 S.L. (formerly Alabandina Seis S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A7 S.L. (formerly Alactita Siete S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A8 S.L. (formerly Alargento Ocho S:l.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A9 S.L. (formerly Alforsita Nueve S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A10 S.L. (formerly Armangita Diez S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A11 S.L. (formerly Aloclasita Once S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A12 S.L. (formerly Aspidolita Doce S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A13 S.L. (formerly Alvanita Trece S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A14 S.L. (formerly Amakinita Catorce S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A15 S.L. (formerly Amicita Quince S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A16 S.L. (formerly Anandita Dieciséis S.l.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A17 S.L. (formerly Antarticita Diecisiete S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV A18 S.L. (formerly Avicenita Dieciocho S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B1 S.L. (formerly Barquillita Uno S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B2 S.L. (formerly Bernardita DosS.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B3 S.L. (formerly Barilita Tres S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B4 S.L. (formerly Barrerita Cuatro S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B5 S.L. (formerly Batiferrita Cinco S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B6 S.L. (formerly Batisita Seis S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) Marismas PV B7 S.L. (formerly Bememntina Siete S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B8 S.L. (formerly Benavidewsita Ocho S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B9 S.L. (formerly Benjaminita Nueve S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B10 S.L. (formerly Benleonardita Diez S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B11 S.L. (formerly Bergenita Once S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B12 S.L. (formerly Barilonita Doce S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B13 S.L. (formerly Bianchita Trece S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B14 S.L. (formerly Bermanita Catorce S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B15 S.L. (formerly Borcarita Quince S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B16 S.L. (formerly Braunita Dieciseis S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B17 S.L. (formerly Boulangerita Diecisiete S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV B18 S.L. (formerly Brucita Dieciocho S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C1 S.L. (formerly Cafetita Uno S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C2 S.L. (formerly Calcomenita Dos S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - 194 3 Appendix VI Dependent companies included in the 2009 consolidation perimeter using the global integration method.(continued) Interest Marismas PV C3 S.L. (formerly Calcosina Tres S.L.) % of Cost in Company Holding the Interest Registered Office Thousands Nominal of Euro Capital Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV Marismas PV C4 S.L. (formerly Caldenorita Cuatro SL) Sevilla (Spain) 123 Corporate Name (*) Activity Auditor (3) - 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C5 S.L. (formerly Caracolita Cinco S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C6 S.L. (formerly Catarmacaita Seis S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C7 S.L. (formerly Cerolita Siete S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C8 S.L. (formerly Choloaita Ocho S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C9 S.L. (formerly Cavoite Nueve S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C10 S.L. (formerly Chambersita Diez S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C11 S.L. (formerly Charoita Once S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C12 S.L. (formerly Chorlo Doce S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C13 S.L. (formerly Cervanita Trece S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C14 S.L. (formerly Clinoclaja Catorce S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C15 S.L. (formerly Coffinita Quince S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C16 S.L. (formerly Confrodita Dieciséis S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C17 S.L. (formerly Cordeorita Diecisieta S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV C18 S.L. (formerly Cuspidina Dieciocho S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV E1 S.L. (formerly Eclarita Uno S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV E2 S.L. (formerly Efremovita Dos S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Marismas PV E3 S.L. (formerly Elpasolita Tres S.L.) Sevilla (Spain) 123 100,00 Las Cabezas Fotovoltaica / Abengoa Solar PV (3) - Mojave Solar LLC Berkeley (USA) (1) - Sanlúcar Solar S.A. Sevilla (Spain) 7.378 87,99 Abengoa Solar España (1) A Sol3G Barcelona (Spain) 2.443 77,78 Abengoa Solar (4) C Solaben Electricidad Uno Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Dos Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Tres Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Cuatro Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Cinco Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Seis Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Siete S.A. Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Ocho S.A. Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Nueve S.A. Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Diez S.A. Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Once S.A. Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Doce S.A. Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Trece S.A Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Catorce S.A. Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Quince S.A Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Dieciséis S.A Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Diecisiete S.A Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Dieciocho S.A Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Diecinueve S.A Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solaben Electricidad Veinte S.A Badajoz (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solacor Electricidad Uno S.A. Sevilla (Spain) 2.874 100,00 Abengoa Solar España (1) - Solacor Electricidad Dos S.A. Sevilla (Spain) 2.874 100,00 Abengoa Solar España (1) - Solacor Electricidad Tres S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solar de Receptores de Andalucía S.A. Sevilla (Spain) 60 100,00 Abengoa Solar / Abengoa Solar NT (4) - Solar Processes S.A. Sevilla (Spain) 14.578 (1) A Solargate Electricidad Uno S.A. Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (1) - Solargate Electricidad Dos S.A. Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (1) - Solargate Electricidad Tres S.A. Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (1) - Solargate Electricidad Cuatro S.A. Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (1) - Solargate Electricidad Cinco S.A. Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (1) - Solargate Electricidad Seis S.A. Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (1) - Solargate Electricidad Siete S.A. Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (1) - Solargate Electricidad Ocho S.A. Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (1) - Solargate Electricidad Nueve S.A. Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (1) - Solargate Electricidad Diez S.A. Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (1) - Solargate Electricidad Once S.A. Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (1) - 99,99 Abengoa Solar España / Abengoa Solar NT 1 Solargate Electricidad Doce S.A. Sevilla (Spain) 60 Solnova Electricidad S.A. Sevilla (Spain) 30.986 Solnova Electricidad Dos S.A. Sevilla (Spain) 60 Solnova Electricidad Tres S.A. Sevilla (Spain) 30.110 Solnova Electricidad Cuatro S.A. Sevilla (Spain) 23.266 Solnova Electricidad Cinco S.A. Sevilla (Spain) 60 Solnova Electricidad Séis S.A. Sevilla (Spain) 60 Solnova Electricidad Siete S.A. Sevilla (Spain) Solnova Electricidad Ocho S.A. Sevilla (Spain) 100,00 Abengoa Solar Inc 100,00 Abengoa Solar España (*) (*) (1) - 100,00 Solnova Solar Inversiones (1) A 99,99 Abengoa Solar España (1) - 100,00 Solnova Solar Inversiones (1) A 100,00 Solnova Solar Inversiones (1) A 99,99 Abengoa Solar España (1) - 100,00 Abengoa Solar España / Abengoa Solar NT (1) - 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - 195 3 Appendix VI Dependent companies included in the 2009 consolidation perimeter using the global integration method.(continued) Interest Solnova Electricidad Nueve S.A. % of Cost in Company Holding the Interest Registered Office Thousands Nominal of Euro Capital Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solnova Electricidad Diez S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solnova Electricidad Once S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solnova Electricidad Doce S.A. Sevilla (Spain) 60 100,00 Abengoa Solar España / Abengoa Solar NT (1) - Solnova Solar Inversiones S.A. Sevilla (Spain) 60 99,99 Abengoa Solar España / Abengoa Solar NT (5) B Solúcar Andalucía FV1 S.A. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar NT (3) - Solúcar Andalucía FV2 S.A. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar NT (3) - Solúcar Castilla FV1 S.A. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar NT (3) - Solúcar Castilla FV2 S.A. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar NT (3) - Solúcar Extremadura FV1 S.A. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar NT (3) - Solúcar Extremadura FV2 S.A. Sevilla (Spain) 60 100,00 Abengoa Solar PV / Abengoa Solar NT (3) - Solugas Energía S.A. Sevilla (Spain) 60 100,00 Abengoa Solar NT /Abengoa Solar (1) - Corporate Name Activity (1) Thermosolar Energy. (2) Thermosolar Components (3) Photovoltaic Energy. (4) Photovoltaic Components. (5) Other (*) Companies incorporated or acquired and added to consolidation during the year Auditor A Audited by PricewaterhouseCoopers B Audited by Auditoría y Consulta. C Audited by other auditors. 196 (*) (*) Activity Auditor 3 Appendix VII Associated Companies included in the 2009 Consolidation Perimeter using the Participation Method Interest Corporate Name Registered Office Cost in % Capital Thousands Company Holding the Interest Construcciones Metálicas Mexicanas Comemsa, SA de CV Celaya (Mex) 2.187 50,00 Eucomsa Cedisolar, S.A. Evacuación Villanueva del Rey, S.L., Nudo Villanueva del Rey, S.L., Gestión de Evacuación Villanueva del Rey, S.L. 4.992 57,50 Rioglass Solar Holding Helioenergy Uno / Helioenergy Dos / 55,24 Helioenergy Tres Asturias (Spain) Sevilla (Spain) 1 Activity (1) Thermosolar Energy. (2) Thermosolar Components (3) Photovoltaic Energy. (4) Photovoltaic Components. (5) Other (*) Companies incorporated or acquired and added to consolidation during the year Auditor A Audited by PricewaterhouseCoopers B Audited by Auditoría y Consulta. C Audited by other auditors. 197 (*) Activity Auditor (5) A (*) (4) - (*) (1) - 3 Appendix VIII Joint Ventures included in the 2009 consolidation Perimeter using the Proportional Integration Method Participación Denominación Social Europea Construcciones Metálicas, S.A. Domicilio Seville (ES) Coste en % Sobre Sociedad Socio en la Entidad Miles de € Nominal 3.500 50,00 Abengoa Solar Huadian Abengoa Solar Development (Beijing) Co. Ltd ("HASD")Beijing (China) Italgest Abengoa Solar 105 Rome (IT) 10 50,00 Abengoa Solar 99,99 Rioglass Solar Holding Rioglass Solar 2 S.A. Asturias (AU) 60 Rioglass Solar Holding, S.A Asturias (ES) 500 Rioglass Solar Inc. Delaware(USA) Rioglass Solar S.A. Asturias (ES) Total Abengoa Solar Emirates Investment Company BV Amsterdam Ute Abener Hassi R'Mel Construction Algiers (DZ) Ute Inabensa-Eucomsa-Perú Seville (ES) - 100,00 Rioglass Solar Holding 100,00 Rioglass Solar Holding 450 (1) Thermosolar Energy. (2) Thermosolar Components. (3) Photovoltaic Energy (4) Photovoltaic Components (5) Others (*) Companies incorporated or acquired and added to consolidation during the year. 198 50,00 Abengoa Solar Ventures 30,00 Abengoa Solar New Technologies 7,50 Eucomsa Actividad (2) (*) (3) (1) (*) 50,00 Abengoa Solar 7.365 50 Actividad 50,00 Abengoa Solar Internacional (*) (4) (5) (*) (4) (*) (3) (4) (5) (5) 3 Appendix IX Companies with Electricity Operations included in the 2009 Consolidated Perimeter Corporate Name Registered Office Activity (*) Comments Abengoa Hellas Solar Power Systems Limited Liabilities Company Atenas (GR) 1 Under construction Abengoa Solar Australia Pty Limited Melbourne (AU) 3 Under construction Abengoa Solar Engeneering (Beijing), Co. Ltd. Beijing (China) 3 Under construction Abengoa Solar India Private Limited Mahrashtra (IN) 3 Under construction Abengoa Solar Internacional S.A. (formerly Abengoa Solar China S.A) Sevilla (Spain) 1 Under construction Abengoa Solar Sicilia Sr.l Roma (Italy) 3 Under construction Under construction Abengoa Solar South Africa Pretoria (Sudáfrica) 3 Almadén Solar S.A. Sevilla (Spain) 1 In operation Arizona Solar One Colorado (USA) 1 Under construction Aznalcóllar Solar, S.A. Sevilla (Spain) 1 Under construction Captasol Fotovoltaica 1 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 2 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 3 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 4 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 5 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 6 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 7 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 8 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 9 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 10 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 11 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 12 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 13 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 14 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 15 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 16 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 17 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 18 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 19 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 20 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 21 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 22 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 23 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 24 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 25 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 26 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 27 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 28 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 29 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 30 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 31 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 32 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 33 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 34 S.L. Sevilla (Spain) 3 In operation In operation Captasol Fotovoltaica 35 S.L. Sevilla (Spain) 3 Captasol Fotovoltaica 36 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 37 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 38 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 39 S.L. Sevilla (Spain) 3 In operation In operation Captasol Fotovoltaica 40 S.L. Sevilla (Spain) 3 Captasol Fotovoltaica 41 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 42 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 43 S.L. Sevilla (Spain) 3 In operation Captasol Fotovoltaica 44 S.L. Sevilla (Spain) 3 Under construction Under construction Captasol Fotovoltaica 45 S.L. Sevilla (Spain) 3 Captasol Fotovoltaica 46 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 47 S.L. Sevilla (Spain) 3 Under construction z Captasol Fotovoltaica 48 S.L. Sevilla (Spain) 3 Under construction 199 3 Appendix IX Companies with Electricity Operations included in the 2009 Consolidated Perimeter (continued) Corporate Name Captasol Fotovoltaica 49 S.L. Registered Office Activity (*) 3 Sevilla (Spain) Comments Under construction Captasol Fotovoltaica 50 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 51 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 52 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 53 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 54 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 55 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 56 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 57 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 58 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 59 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 60 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 61 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 62 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 63 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 64 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 65 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 66 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 67 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 68 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 69 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 70 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 71 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 72 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 73 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 74 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 75 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 76 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 77 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 78 S.L. Sevilla (Spain) 3 Under construction Captasol Fotovoltaica 79 S.L. Sevilla (Spain) 3 Under construction Casaquemada Fotovoltaica S.L. (formerly Egeria Densam S.L) Sevilla (Spain) 3 In operation Cedisolar, S.A. Asturias (Spain) 4 In operation Copero Solar Huerta Uno S.A. Sevilla (Spain) 3 In operation Copero Solar Huerta Dos S.A. Sevilla (Spain) 3 In operation Copero Solar Huerta Tres S.A Sevilla (Spain) 3 In operation In operation Copero Solar Huerta Cuatro S.A. Sevilla (Spain) 3 Copero Solar Huerta Cinco S.A. Sevilla (Spain) 3 In operation Copero Solar Huerta Seis S.A. Sevilla (Spain) 3 In operation Copero Solar Huerta Siete S.A. Sevilla (Spain) 3 In operation Copero Solar Huerta Ocho S.A. Copero Solar Huerta Nueve S.A. Sevilla (Spain) 3 In operation Copero Solar Huerta Diez S.A. Evacuación Villanueva del Rey, S.L., Nudo Villanueva del Rey, S.L., Gestión de Evacuación Villanueva del Rey S L Fotovoltaica Solar Sevilla S.A. Sevilla (Spain) 3 In operation Sevilla (Spain) 3 In operation Sevilla (Spain) Sevilla (Spain) 1 3 In operation In operation Under construction Freener-g, LLC Minneapolis (USA) 4 Harper Dry Lake Land Company LLC Victorville (USA) 1 Under construction Helio Energy Electricidad Uno S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Dos S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Tres S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Cuatro S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Cinco S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Seis S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Siete S.A. Sevilla (Spain) 1 Under construction Under construction Helio Energy Electricidad Ocho S.A. Sevilla (Spain) 1 Helio Energy Electricidad Nueve S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Diez S.A. Sevilla (Spain) 1 Under construction Under construction Helio Energy Electricidad Once S.A. Sevilla (Spain) 1 Helio Energy Electricidad Doce S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Trece S.A. Sevilla (Spain) 1 Under construction 200 3 Appendix IX Companies with Electricity Operations included in the 2009 Consolidated Perimeter (continued) Corporate Name Registered Office Activity (*) 1 Comments Helio Energy Electricidad Catorce S.A. Sevilla (Spain) Under construction Helio Energy Electricidad Quince S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Dieciséis S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Diecisiete S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Dieciocho S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Diecinueve S.A. Sevilla (Spain) 1 Under construction Helio Energy Electricidad Veinte S.A. Sevilla (Spain) 1 Under construction Helioenergy Electricidad Veintiuno S.A Sevilla (Spain) 1 Under construction Helioenergy Electricidad Veintidós S.A Sevilla (Spain) 1 Under construction Helioenergy Electricidad Veintitrés S.A Sevilla (Spain) 1 Under construction Helioenergy Electricidad Veinticuatro S.A Sevilla (Spain) 1 Under construction Helioenergy Electricidad Veinticinco S.A Sevilla (Spain) 1 Under construction Helios I Hyperion Energy Investments S.L. Sevilla (Spain) 1 Under construction Helios II Hyperion Energy Investments S.L. Madrid (Spain) 1 Under construction Huadian Abengoa Solar Development (Beijing) Co. Ltd ("HASD") Beijing (China) 3 Under construction Insolation 1 S.R.L. Palermo (Italy) 3 Under construction Insolation 2 S.R.L. Palermo (Italy) 3 Under construction Insolation 3 S.R.L. Palermo (Italy) 3 Under construction Insolation Sic 4 S.R.L Palermo (Italy) 3 Under construction Insolation Sic 5 S.R.L Palermo (Italy) 3 Under construction Insolation Sic 6 S.R.L Palermo (Italy) 3 Under construction Insolation Sic 7.R.L Palermo (Italy) 3 Under construction Insolation Sic 8 S.R.L Palermo (Italy) 3 Under construction Insolation Sic 9 S.R.L Palermo (Italy) 3 Under construction Insolation Sic 10 S.R.L Palermo (Italy) 3 Under construction Insolation Sic 11 S.R.L Palermo (Italy) 3 Under construction Insolation Sic 12 S.R.L Palermo (Italy) 3 Under construction Insolation Sic 13 S.R.L Palermo (Italy) 3 Under construction Insolation Sic 14 S.R.L. Palermo (Italy) 3 Under construction Insolation Sic 15 S.R.L. Palermo (Italy) 3 Under construction Insolation Sic 16 S.R.L. Palermo (Italy) 3 Under construction Insolation Sic 17 S.R.L. Palermo (Italy) 3 Under construction Insolation Sic 18 S.R.L. Palermo (Italy) 3 Under construction Insolation Sic 19 S.R.L. Palermo (Italy) 3 Under construction Insolation Sic 20 S.R.L. Palermo (Italy) 3 Under construction Italgest Abengoa Solar, S.r.l.. Rome (Italy) 3 Under construction Las Cabezas Fotovoltaica S.L. (formerly Orjinella S.L.) Sevilla (Spain) 3 In operation Las Cabezas PV, S.L. Sevilla (Spain) 3 Under construction Linares Fotovoltaica S.L. (formerly Stellata World S.L. ) Sevilla (Spain) 3 In operation Marismas PV A1 S.L. (formerly Andalucita Uno S.L) Sevilla (Spain) 3 In operation Marismas PV A2 S.L. (formerly Abelsonita Dos S.L.) Sevilla (Spain) Marismas PV A3 S.L. (formerly Andersonita Tres S.L.) Sevilla (Spain) 3 3 In operation In operation Marismas PV A4 S.L. (formerly Aquilarita Cuatro S.L.) Sevilla (Spain) 3 In operation Marismas PV A5 S.L. (formerly Akermanita Cinco S.L. ) Sevilla (Spain) 3 In operation Marismas PV A6 S.L. (formerly Alabandina Seis S.L.) Sevilla (Spain) 3 In operation Marismas PV A7 S.L. (formerly Alactita Siete S.L.) Sevilla (Spain) 3 In operation In operation Marismas PV A8 S.L. (formerly Alargento Ocho S:l.) Sevilla (Spain) 3 Marismas PV A9 S.L. (formerly Alforsita Nueve S.L.) Sevilla (Spain) 3 In operation Marismas PV A10 S.L. (formerly Armangita Diez S.L.) Sevilla (Spain) 3 In operation Marismas PV A11 S.L. (formerly Aloclasita Once S.L.) Sevilla (Spain) 3 In operation Marismas PV A12 S.L. (formerly Aspidolita Doce S.L.) Sevilla (Spain) 3 In operation Marismas PV A13 S.L. (formerly Alvanita Trece S.L.) Sevilla (Spain) 3 In operation Marismas PV A14 S.L. (formerly Amakinita Catorce S.L.) Sevilla (Spain) 3 In operation Marismas PV A15 S.L. (formerly Amicita Quince S.L.) Sevilla (Spain) 3 In operation In operation Marismas PV A16 S.L. (formerly Anandita Dieciséis S.l.) Sevilla (Spain) 3 Marismas PV A17 S.L. (formerly Antarticita Diecisiete S.L.) Sevilla (Spain) 3 In operation Marismas PV A18 S.L. (formerly Avicenita Dieciocho S.L.) Sevilla (Spain) 3 In operation Marismas PV B1 S.L. (formerly Barquillita Uno S.L.) Sevilla (Spain) 3 In operation Marismas PV B2 S.L. (formerly Bernardita DosS.L.) Sevilla (Spain) 3 In operation 201 3 Appendix IX Companies with Electricity Operations included in the 2009 Consolidated Perimeter (continued) Corporate Name Registered Office Activity (*) Comments Marismas PV B3 S.L. (formerly Barilita Tres S.L.) Sevilla (Spain) 3 Marismas PV B4 S.L. (formerly Barrerita Cuatro S.L.) Sevilla (Spain) 3 In operation Marismas PV B5 S.L. (formerly Batiferrita Cinco S.L.) Sevilla (Spain) 3 In operation In operation Marismas PV B6 S.L. (formerly Batisita Seis S.L.) Sevilla (Spain) 3 In operation Marismas PV B7 S.L. (formerly Bememntina Siete S.L.) Sevilla (Spain) 3 In operation Marismas PV B8 S.L. (formerly Benavidewsita Ocho S.L.) Sevilla (Spain) 3 In operation Marismas PV B9 S.L. (formerly Benjaminita Nueve S.L.) Sevilla (Spain) 3 In operation Marismas PV B10 S.L. (formerly Benleonardita Diez S.L.) Sevilla (Spain) 3 In operation Marismas PV B11 S.L. (formerly Bergenita Once S.L.) Sevilla (Spain) 3 In operation Marismas PV B12 S.L. (formerly Barilonita Doce S.L.) Sevilla (Spain) 3 In operation Marismas PV B13 S.L. (formerly Bianchita Trece S.L.) Sevilla (Spain) 3 In operation Marismas PV B14 S.L. (formerly Bermanita Catorce S.L.) Sevilla (Spain) 3 In operation Marismas PV B15 S.L. (formerly Borcarita Quince S.L.) Sevilla (Spain) 3 In operation Marismas PV B16 S.L. (formerly Braunita Dieciseis S.L.) Sevilla (Spain) 3 In operation Marismas PV B17 S.L. (formerly Boulangerita Diecisiete S.L.) Sevilla (Spain) 3 In operation Marismas PV B18 S.L. (formerly Brucita Dieciocho S.L.) Sevilla (Spain) 3 In operation Marismas PV C1 S.L. (formerly Cafetita Uno S.L.) Sevilla (Spain) 3 In operation Marismas PV C2 S.L. (formerly Calcomenita Dos S.L.) Sevilla (Spain) 3 In operation Marismas PV C3 S.L. (formerly Calcosina Tres S.L.) Sevilla (Spain) 3 In operation Marismas PV C4 S.L. (formerly Caldenorita Cuatro SL) Sevilla (Spain) 3 In operation Marismas PV C5 S.L. (formerly Caracolita Cinco S.L.) Sevilla (Spain) 3 In operation Marismas PV C6 S.L. (formerly Catarmacaita Seis S.L.) Sevilla (Spain) 3 In operation Marismas PV C7 S.L. (formerly Cerolita Siete S.L.) Sevilla (Spain) 3 In operation Marismas PV C8 S.L. (formerly Choloaita Ocho S.L.) Sevilla (Spain) 3 In operation Marismas PV C9 S.L. (formerly Cavoite Nueve S.L.) Sevilla (Spain) 3 In operation Marismas PV C10 S.L. (formerly Chambersita Diez S.L.) Sevilla (Spain) 3 In operation Marismas PV C11 S.L. (formerly Charoita Once S.L.) Sevilla (Spain) 3 In operation Marismas PV C12 S.L. (formerly Chorlo Doce S.L.) Sevilla (Spain) 3 In operation Marismas PV C13 S.L. (formerly Cervanita Trece S.L.) Sevilla (Spain) 3 In operation In operation Marismas PV C14 S.L. (formerly Clinoclaja Catorce S.L.) Sevilla (Spain) 3 Marismas PV C15 S.L. (formerly Coffinita Quince S.L.) Sevilla (Spain) 3 In operation Marismas PV C16 S.L. (formerly Confrodita Dieciséis S.L.) Sevilla (Spain) 3 In operation Marismas PV C17 S.L. (formerly Cordeorita Diecisieta S.L.) Sevilla (Spain) 3 In operation Marismas PV C18 S.L. (formerly Cuspidina Dieciocho S.L.) Sevilla (Spain) 3 In operation Marismas PV E1 S.L. (formerly Eclarita Uno S.L.) Sevilla (Spain) 3 In operation Marismas PV E2 S.L. (formerly Efremovita Dos S.L.) Sevilla (Spain) 3 In operation Marismas PV E3 S.L. (formerly Elpasolita Tres S.L.) Sevilla (Spain) 3 In operation Mojave Solar LLC Berkeley (USA) 1 Under construction In operation Rioglass Solar 2 Asturias (Spain) 2 Rioglass Solar, S.A Asturias (Spain) 2 In operation Sanlúcar Solar S.A. Sevilla (Spain) 1 In operation Sol3G Barcelona (Spain) 4 In operation Solaben Electricidad Uno Sevilla (Spain) 1 Under construction Solaben Electricidad Dos Sevilla (Spain) 1 Under construction Solaben Electricidad Tres Sevilla (Spain) 1 Under construction Solaben Electricidad Cuatro Sevilla (Spain) 1 Under construction Solaben Electricidad Cinco Sevilla (Spain) 1 Under construction Solaben Electricidad Seis Sevilla (Spain) 1 Under construction Solaben Electricidad Siete S.A. Sevilla (Spain) 1 Under construction Solaben Electricidad Ocho S.A. Sevilla (Spain) 1 Under construction Solaben Electricidad Nueve S.A. Sevilla (Spain) 1 Under construction Solaben Electricidad Diez S.A. Sevilla (Spain) 1 Under construction Solaben Electricidad Once S.A. Sevilla (Spain) 1 Under construction Solaben Electricidad Doce S.A. Sevilla (Spain) 1 Under construction Solaben Electricidad Trece S.A Sevilla (Spain) 1 Under construction Solaben Electricidad Catorce S.A. Sevilla (Spain) 1 Under construction Solaben Electricidad Quince S.A Sevilla (Spain) 1 Under construction Solaben Electricidad Dieciséis S.A Sevilla (Spain) 1 Under construction Solaben Electricidad Diecisiete S.A Sevilla (Spain) 1 Under construction 202 3 Appendix IX Companies with Electricity Operations included in the 2009 Consolidated Perimeter (continued) Corporate Name Registered Office Activity (*) Comments Solaben Electricidad Dieciocho S.A Sevilla (Spain) 1 Under construction Solaben Electricidad Diecinueve S.A Sevilla (Spain) 1 Under construction Solaben Electricidad Veinte S.A Sevilla (Spain) 1 Under construction Solacor Electricidad Uno S.A. Sevilla (Spain) 1 Under construction Solacor Electricidad Dos S.A. Sevilla (Spain) 1 Under construction Solacor Electricidad Tres S.A. Sevilla (Spain) 1 Under construction Solar de Receptores de Andalucía, S.A. Sevilla (Spain) 4 In operation Solar Processes S.A. Sevilla (Spain) 1 In operation Solargate Electricidad Uno S.A. Sevilla (Spain) 1 Under construction Solargate Electricidad Dos S.A. Sevilla (Spain) 1 Under construction Solargate Electricidad Tres S.A. Sevilla (Spain) 1 Under construction Solargate Electricidad Cuatro S.A. Sevilla (Spain) 1 Under construction Solargate Electricidad Cinco S.A. Sevilla (Spain) 1 Under construction Solargate Electricidad Seis S.A. Sevilla (Spain) 1 Under construction Solargate Electricidad Siete S.A. Sevilla (Spain) 1 Under construction Solargate Electricidad Ocho S.A. Sevilla (Spain) 1 Under construction Solargate Electricidad Nueve S.A. Sevilla (Spain) 1 Under construction Solargate Electricidad Diez S.A. Sevilla (Spain) 1 Under construction Solargate Electricidad Once S.A. Sevilla (Spain) 1 Under construction Solargate Electricidad Doce S.A. Sevilla (Spain) 1 Under construction Solnova Electricidad S.A. Sevilla (Spain) 1 Under construction Solnova Electricidad Dos S.A. Sevilla (Spain) 1 Under construction Solnova Electricidad Tres S.A. Sevilla (Spain) 1 Under construction Solnova Electricidad Cuatro S.A. Sevilla (Spain) 1 Under construction Solnova Electricidad Cinco S.A. Sevilla (Spain) 1 Under construction Solnova Electricidad Séis S.A. Sevilla (Spain) 1 Under construction Solnova Electricidad Siete S.A. Sevilla (Spain) 1 Under construction Solnova Electricidad Ocho S.A. Sevilla (Spain) 1 Under construction Solnova Electricidad Nueve S.A. Sevilla (Spain) 1 Under construction Solnova Electricidad Diez S.A. Sevilla (Spain) 1 Under construction Solnova Electricidad Once S.A. Sevilla (Spain) 1 Under construction Solnova Electricidad Doce S.A. Sevilla (Spain) 1 Under construction Solúcar Andalucía FV1 S.A. Sevilla (Spain) 3 Under construction Solúcar Andalucía FV2 S.A. Sevilla (Spain) 3 Under construction Solúcar Castilla FV1 S.A. Sevilla (Spain) 3 Under construction Solúcar Castilla FV2 S.A. Sevilla (Spain) 3 Under construction Solúcar Extremadura FV1 S.A. Sevilla (Spain) 3 Under construction Solúcar Extremadura FV2 S.A. Sevilla (Spain) 3 Under construction Total Abengoa Solar Emirates Investment Company BV Amsterdam (Hol) 3 Under construction Activity (1)Thermosolar Energy (2)Thermosolar Components. (3) Photovoltaic Energy. (4)Photovoltaic Components. 203 3 Appendix X Companies Taxed under the Special Regime for Company Groups at 31.12.2009 Abengoa Tax Group 02/97 Corporate Name Abengoa Solar España S.A. Abengoa Solar Extremadura, S.A. Abengoa Solar Internacional S.A. (antes Abengoa Solar China S.A) Abengoa Solar New Tecnologies SA Abengoa Solar PV, S.A. Abengoa Solar S.A Abengoa Solar Ventures S.A Aleduca, S.L Aznalcóllar Solar, S.A. Captasol Fotovoltaica 1 S.L. Captasol Fotovoltaica 2 S.L. Captasol Fotovoltaica 3 S.L. Captasol Fotovoltaica 4 S.L. Captasol Fotovoltaica 5 S.L. Captasol Fotovoltaica 6 S.L. Captasol Fotovoltaica 7 S.L. Captasol Fotovoltaica 8 S.L. Captasol Fotovoltaica 9 S.L. Captasol Fotovoltaica 10 S.L. Captasol Fotovoltaica 11 S.L. Captasol Fotovoltaica 12 S.L. Captasol Fotovoltaica 13 S.L. Captasol Fotovoltaica 14 S.L. Captasol Fotovoltaica 15 S.L. Captasol Fotovoltaica 16 S.L. Captasol Fotovoltaica 17 S.L. Captasol Fotovoltaica 18 S.L. Captasol Fotovoltaica 19 S.L. Captasol Fotovoltaica 20 S.L. Captasol Fotovoltaica 21 S.L. Captasol Fotovoltaica 22 S.L. Captasol Fotovoltaica 23 S.L. Captasol Fotovoltaica 24 S.L. Captasol Fotovoltaica 25 S.L. Captasol Fotovoltaica 26 S.L. Captasol Fotovoltaica 27 S.L. Captasol Fotovoltaica 28 S.L. Captasol Fotovoltaica 29 S.L. Captasol Fotovoltaica 30 S.L. Captasol Fotovoltaica 31 S.L. Captasol Fotovoltaica 32 S.L. Captasol Fotovoltaica 33 S.L. Captasol Fotovoltaica 34 S.L. Captasol Fotovoltaica 35 S.L. Captasol Fotovoltaica 36 S.L. Captasol Fotovoltaica 37 S.L. Captasol Fotovoltaica 38 S.L. Captasol Fotovoltaica 39 S.L. Captasol Fotovoltaica 40 S.L. Captasol Fotovoltaica 41 S.L. Captasol Fotovoltaica 42 S.L. Captasol Fotovoltaica 43 S.L. Captasol Fotovoltaica 44 S.L. Captasol Fotovoltaica 45 S.L. Captasol Fotovoltaica 46 S.L. Captasol Fotovoltaica 47 S.L. Captasol Fotovoltaica 48 S.L. Captasol Fotovoltaica 49 S.L. Captasol Fotovoltaica 50 S.L. Captasol Fotovoltaica 51 S.L. Captasol Fotovoltaica 52 S.L. Captasol Fotovoltaica 53 S.L. Captasol Fotovoltaica 54 S.L. Captasol Fotovoltaica 55 S.L. Captasol Fotovoltaica 56 S.L. Captasol Fotovoltaica 57 S.L. Captasol Fotovoltaica 58 S.L. Captasol Fotovoltaica 59 S.L. Tax Address Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Madrid (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Company Holding the Interest Abengoa Solar Abengoa Solar España / Abengoa Solar New Technologies Abengoa Solar Abengoa Solar Abegoa Solar / Abengoa Solar España Abengoa / Abengoa Solar España Abengoa Solar Abengoa Solar PV Abengoa Solar España Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Abengoa Solar Solar Solar Solar Solar Solar Solar Solar Solar Solar Solar Solar Solar Solar Solar Solar Solar Solar Solar PV PV PV PV PV PV PV PV PV PV PV PV PV PV PV PV PV PV PV / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica / Linares Fotovoltaica Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España 204 3 Appendix X Companies Taxed under the Special Regime for Company Groups at 31.12.2009 (continued) Abengoa Tax Group 02/97 Corporate Name Captasol Fotovoltaica 60 S.L. Captasol Fotovoltaica 61 S.L. Captasol Fotovoltaica 62 S.L. Captasol Fotovoltaica 63 S.L. Captasol Fotovoltaica 64 S.L. Captasol Fotovoltaica 65 S.L. Captasol Fotovoltaica 66 S.L. Captasol Fotovoltaica 67 S.L. Captasol Fotovoltaica 68 S.L. Captasol Fotovoltaica 69 S.L. Captasol Fotovoltaica 70 S.L. Captasol Fotovoltaica 71 S.L. Captasol Fotovoltaica 72 S.L. Captasol Fotovoltaica 73 S.L. Captasol Fotovoltaica 74 S.L. Captasol Fotovoltaica 75 S.L. Captasol Fotovoltaica 76 S.L. Captasol Fotovoltaica 77 S.L. Captasol Fotovoltaica 78 S.L. Captasol Fotovoltaica 79 S.L. Casaquemada Fotovoltaica S.L. (antes Egeria Densam S.L) Ecija Solar Inversiones S.A (antes Copero Solar S.A.) Eucomsa, Europea Const. Metálicas, S.A. Fotovoltaica Solar Sevilla, S.A. Helio Energy Electricidad Uno, S.A. Helio Energy Electricidad Dos, S.A. Helio Energy Electricidad Tres, S.A. Helio Energy Electricidad Cuatro, S.A. Helio Energy Electricidad Cinco, S.A. Helio Energy Electricidad Seis, S.A. Helio Energy Electricidad Siete, S.A. Helio Energy Electricidad Ocho, S.A. Helio Energy Electricidad Nueve, S.A. Helio Energy Electricidad DIez, S.A. Helio Energy Electricidad Once, S.A. Helio Energy Electricidad Doce, S.A. Helio Energy Electricidad Trece, S.A. Helio Energy Electricidad Catorce S.A. Helio Energy Electricidad Quince, S.A. Helio Energy Electricidad Dieciseis, S.A. Helio Energy Electricidad Diecisiete, S.A. Helio Energy Electricidad Dieciocho, S.A. Helio Energy Electricidad Diecinueve S.A. Helio Energy Electricidad Veinte, S.A. Helioenergy Electricidad Veintiuno, S.A Helioenergy Electricidad Veintidos, S.A Helioenergy Electricidad Veintitres, S.A Helioenergy Electricidad Veinticuatro, S.A Helioenergy Electricidad Veinticinco, S.A Las Cabezas Fotovoltaica S.L. (antes Orjinella S.L.) Las Cabezas PV S.L. Linares Fotovoltaica S.L. (antes Stellata World S.L. ) Marismas PV A1 S.L. (antes Andalucita Uno S.L) Marismas PV A2 S.L. (antes Abelsonita Dos S.L.) Marismas PV A3 S.L. (antes Andersonita Tres S.L.) Marismas PV A4 S.L. (antes Aquilarita Cuatro S.L.) Marismas PV A5 S.L. (antes Akermanita Cinco S.L. ) Marismas PV A6 S.L. (antes Alabandina Seis S.L.) Marismas PV A7 S.L. (antes Alactita Siete S.L.) Marismas PV A8 S.L. (antes Alargento Ocho S:l.) Marismas PV A9 S.L. (antes Alforsita Nueve S.L.) Marismas PV A10 S.L. (antes Armangita Diez S.L.) Marismas PV A11 S.L. (antes Aloclasita Once S.L.) Marismas PV A12 S.L. (antes Aspidolita Doce S.L.) Marismas PV A13 S.L. (antes Alvanita Trece S.L.) Marismas PV A14 S.L. (antes Amakinita Catorce S.L.) Marismas PV A15 S.L. (antes Amicita Quince S.L.) Marismas PV A16 S.L. (antes Anandita Dieciséis S.l.) Tax Address Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) Company Holding the Interest Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Casaquemada Fotovoltaica Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Abengoa Solar España Abengoa Solar Abengoa Solar España Abengoa Solar España / Écija Solar Inversiones Abengoa Solar España / Écija Solar Inversiones Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España Abengoa Solar España Abengoa Solar España Abengoa Solar España Abengoa Solar España Abengoa Solar PV / Abengoa Solar España Aleduca S.L. Abengoa Solar PV / Abengoa Solar España Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV 205 3 Appendix X Companies Taxed under the Special Regime for Company Groups at 31.12.2009 (continued) Abengoa Tax Group 02/97 Corporate Name Marismas PV A17 S.L. (antes Antarticita Diecisiete S.L.) Marismas PV A18 S.L. (antes Avicenita Dieciocho S.L.) Marismas PV B1 S.L. (antes Barquillita Uno S.L.) Marismas PV B2 S.L. (antes Bernardita DosS.L.) Marismas PV B3 S.L. (antes Barilita Tres S.L.) Marismas PV B4 S.L. (antes Barrerita Cuatro S.L.) Marismas PV B5 S.L. (antes Batiferrita Cinco S.L.) Marismas PV B6 S.L. (antes Batisita Seis S.L.) Marismas PV B7 S.L. (antes Bememntina Siete S.L.) Marismas PV B8 S.L. (antes Benavidewsita Ocho S.L.) Marismas PV B9 S.L. (antes Benjaminita Nueve S.L.) Marismas PV B10 S.L. (antes Benleonardita Diez S.L.) Marismas PV B11 S.L. (antes Bergenita Once S.L.) Marismas PV B12 S.L. (antes Barilonita Doce S.L.) Marismas PV B13 S.L. (antes Bianchita Trece S.L.) Marismas PV B14 S.L. (antes Bermanita Catorce S.L.) Marismas PV B15 S.L. (antes Borcarita Quince S.L.) Marismas PV B16 S.L. (antes Braunita Dieciseis S.L.) Marismas PV B17 S.L. (antes Boulangerita Diecisiete S.L.) Marismas PV B18 S.L. (antes Brucita Dieciocho S.L.) Marismas PV C1 S.L. (antes Cafetita Uno S.L.) Marismas PV C2 S.L. (antes Calcomenita Dos S.L.) Marismas PV C3 S.L. (antes Calcosina Tres S.L.) Marismas PV C4 S.L. (antes Caldenorita Cuatro SL) Marismas PV C5 S.L. (antes Caracolita Cinco S.L.) Marismas PV C6 S.L. (antes Catarmacaita Seis S.L.) Marismas PV C7 S.L. (antes Cerolita Siete S.L.) Marismas PV C8 S.L. (antes Choloaita Ocho S.L.) Marismas PV C9 S.L. (antes Cavoite Nueve S.L.) Marismas PV C10 S.L. (antes Chambersita Diez S.L.) Marismas PV C11 S.L. (antes Charoita Once S.L.) Marismas PV C12 S.L. (antes Chorlo Doce S.L.) Marismas PV C13 S.L. (antes Cervanita Trece S.L.) Marismas PV C14 S.L. (antes Clinoclaja Catorce S.L.) Marismas PV C15 S.L. (antes Coffinita Quince S.L.) Marismas PV C16 S.L. (antes Confrodita Dieciséis S.L.) Marismas PV C17 S.L. (antes Cordeorita Diecisieta S.L.) Marismas PV C18 S.L. (antes Cuspidina Dieciocho S.L.) Marismas PV E1 S.L. (antes Eclarita Uno S.L.) Marismas PV E2 S.L. (antes Efremovita Dos S.L.) Marismas PV E3 S.L. (antes Elpasolita Tres S.L.) Sanlucar Solar, S.A. Sol3G Solaben Electricidad Uno Solaben Electricidad Dos Solaben Electricidad Tres Solaben Electricidad Cuatro Solaben Electricidad Cinco Solaben Electricidad Seis Solaben Electricidad Siete, S.A. Solaben Electricidad Ocho, S.A. Solaben Electricidad Nueve, S.A. Solaben Electricidad Diez, S.A. Solaben Electricidad Once, S.A. Solaben Electricidad Doce, S.A. Solaben Electricidad Trece, S.A Solaben Electricidad Catorce, S.A Solaben Electricidad Quince, S.A Solaben Electricidad Dieciseis S.A Solaben Electricidad Diecisiete, S.A Solaben Electricidad Dieciocho, S.A Solaben Electricidad Diecinueve, S.A Solaben Electricidad Veinte, S.A Solacor Electricidad Tres, S.A. Solar de Receptores de Andalucía, S.A. Solar Processes, S.A. Solargate Electricidad Uno , S.A. Solargate Electricidad Dos , S.A. Tax Address Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Barcelona (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Badajoz (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Sevilla (Spain) Company Holding the Interest Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Las Cabezas Fotovoltaica / Abengoa Solar PV Abengoa Solar España Abengoa Solar Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar / Abengoa Solar NT Abengoa Solar España Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT 206 3 Appendix X Companies Taxed under the Special Regime for Company Groups at 31.12.2009 (continued) Abengoa Tax Group 02/97 Corporate Name Solargate Electricidad Tres , S.A. Solargate Electricidad Cuatro , S.A. Solargate Electricidad Cinco , S.A. Solargate Electricidad Seis , S.A. Solargate Electricidad Siete , S.A. Solargate Electricidad Ocho, S.A. Solargate Electricidad Nueve , S.A. Solargate Electricidad Diez , S.A. Solargate Electricidad Once , S.A. Solargate Electricidad Doce , S.A. Solnova Electricidad, S.A. Solnova Electricidad Dos, S.A. Solnova Electricidad Tres, S.A. Solnova Electricidad Cuatro, S.A. Solnova Electricidad Cinco, S.A. Solnova Electricidad Séis , S.A. Solnova Electricidad Siete , S.A. Solnova Electricidad Ocho , S.A. Solnova Electricidad Nueve , S.A. Solnova Electricidad Diez , S.A. Solnova Electricidad Once, S.A. Solnova Electricidad Doce, S.A. Solnova Solar Inversiones, S.A Solúcar Andalucía FV1, S.A Solúcar Andalucía FV2, S.A Solúcar Castilla FV1, S.A Solúcar Castilla FV2, S.A Solúcar Extremadura FV1, S.A Solúcar Extremadura FV2, S.A Solugas Energía S.A. Tax Address Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla Sevilla (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) (Spain) Company Holding the Interest Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solas España Abengoa Solas España Abengoa Solas España Abengoa Solas España Abengoa Solas España Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España / Abengoa Solar NT Abengoa Solar España Abengoa Solar PV / Abengoa Solar NT Abengoa Solar PV / Abengoa Solar NT Abengoa Solar PV / Abengoa Solar NT Abengoa Solar PV / Abengoa Solar NT Abengoa Solar PV / Abengoa Solar NT Abengoa Solar PV / Abengoa Solar NT Abengoa Solar NT / Abengoa Solar 207 3 3. Management Report 208 3 Consolidated Management Report for the year 2010 1.- Organisational structure and activities Abengoa Solar, S.A. is the parent of a group of companies, which, at the 2010 year end, included the following: • The parent company itself • 293 subsidiaries • 7 associated companies and 10 joint ventures; likewise, Group companies participate in 3 temporary joint ventures (UTEs). Apart from the above legal composition of the company group, Abengoa acts through the organisational structure described below for management and operating management purposes. Abengoa Solar develops and applies technologies for producing electricity using the sun, constructing and operating generation plants and installations with thermosolar and photovoltaic technologies. 2.- Strategy In spite of the economic context, the year 2010 meant the consolidation of the solar power generation market worldwide, due to the attainment of numerous projects in existing markets and the appearance of new opportunities in emerging markets. The changes in the energy sector in general have led to a considerable increase in competition between the different sources of renewable energy, increasing the pressure that existed between the different technologies. In this respect, thermosolar energy maintains a competitive position due to value-addeds such as manageability, scalability or the multiple technological options that reinforce its strategic position. In spite of the financial uncertainty that exists and the limitations of the debt markets, the sector’s development has been reinforced by governmental support, as in the case of Spain, with the confirmation of the current regulatory framework in December, which allowed the existing uncertainties to be eliminated, the assignment of federal credit guarantees on the part of the United States Administration, or the publication of stable and attractive regulatory frameworks in new markets. 209 3 The principal consolidated figures in the years 2010 and 2009 were as follows: Solar (millions of €) 2009 2010 Sales Ebitda (*) Ebitda/ Sales Var (%) 168.1 115.9 45.0% 70.2 21.6 225.0% 41.8% 18.6% (*) Ebitda calculated as operating profit/(loss) plus Amortization, depreciation and impairment. In the sales evolution for year 2010, we can see the growth in our business resulting from energy sales, which reached the amount of 58.0 million euros, coming from the 193 MW that we have in operation with both thermosolar and photovoltaic technology (we highlight the fact that 150 MW came into operation during the year), in addition to the sales of technology components, the transfer of knowhow to third parties and solar promotions, all of which totalled 110.1 million euros. We have strengthened our strategic position in the industry and, at the end of the 2010 reporting period, had a total of 3,448 MW on our portfolio, including 193 MW in operation, with both tower and parabolic-cylinder technology, 930 MW under construction, and 2,325 MW in the promotion phase. At product level, Management identifies Energy and Technology as the Group’s principal lines of action: a) Energy refers to the management, operation, maintenance and exploitation of thermosolar and photovoltaic plants and installations In this segment, Abengoa Solar obtains revenue from the sale of energy in the market and carrying out tasks of operation, maintenance and exploitation. b) Technology includes both our new plant promotion activity and the sale of technology and components. During the promotion phase, we seek sites for the solar plants and installations and manage the obtaining of the permits and technical studies necessary for constructing the plant and putting it into operation as well as the financing. We receive fees for all of the foregoing. 210 3 Regarding technology, we receive revenue for the transfer of technology know-how and the sale of key components for the solar plants that are strategic for us. If we analyse our business according to the three-horizon scheme, we see that: H3 H2 H1 • Constructing and bringing into • operation plants in Spain, Operating TS plants on the Solúcar platform and PV plants 193 MW in operation ‐ USA, North Africa and the Middle East • Promoting new solar plants in Spain, USA and internationally • Developing new solar electricity-generating technologies • Developing more efficient components Selling solar technology 930 MW under construction More than 2.000 MW under promotion At Abengoa Solar, our Horizon 1 businesses concentrate on running the plants in operation in the south of Spain (thermosolar and photovoltaic) efficiently. ‐ In the Horizon 2 businesses (profitable growth over forthcoming years), our objective is to invest and grow profitably. We are among the world leaders in size, capacities and technology, which allows us to continue growing, even in an economic environment like the one that is expected. In this respect, our priorities are: ‐ 1. To construct and bring into operation, gradually until 2013, the 10 pending plants for a total of 500 MW that are included in the Register created by the Ministry of Industry, Tourism and Trade under RD 6/2009 of 30 April, as well as the USA plant, Solana, the construction of which began in the last month of the year. 2. To continue with our efforts to promote projects in Spain and the rest of the world, especially the United States, north Africa and the Middle East. 3. To manufacture and supply certain, more efficient, key technology elements. In the Horizon 3 businesses (future growth generators), we are getting ready for the efficient and “storable” solar energy of the future and, to do this, we are betting on R&D&I investment. We firmly believe that the creation of value in the long term will depend, in our market, on the success of R&D&I and, therefore, we will use the time available to prepare our next generation of new technologies. 211 3 Additionally, in 2010, our number of employees increased by an average of almost 60 professionals. This increase was mainly due to the increase in activities and expansion of the company’s project portfolio in a number of countries. Furthermore, we carried out almost thirty-three thousand hours of training and developed a scholarship programme with participants in collaboration with universities and educational institutions. We manage our greenhouse gas emissions, anticipating the entry into force of more stringent regulations, in the geographical markets where we operate, which will encourage technologies and business models that give rise to less pollution. From Abengoa Solar, in 2010 we continued to bet on smooth communication with all the interest groups and the new communication channels as part of our commitment to transparency and proper management. To do this, we have internal control systems that help the company’s activities and processes to be carried on effectively, efficiently and transparently. Any procedure intended to identify and eliminate business risks is put into operation through this system, which represents a common culture in the business management of Abengoa Solar. Compliance with the Common Management Systems is mandatory for the whole organisation and, therefore, they are known to all its members. Furthermore, they are continually being updated. The model developed in the Sarbanes Oxley Act, which establishes greater control procedures for financial information, completes the Common Management Systems, the main objective of which is the control and mitigation of business risks. Following the doctrine of the Institute of Internal Auditors and its Spanish chapter, the Instituto de Auditores Internos, the ultimate purpose of this structure is to endow ourselves with an additional line of “control” information, running parallel to the usual hierarchical line, with criteria of clearness and transparency, and to safeguard the confidential information involved. 3.- Business Trends 3.1. Recent Trends 3.1.1. Assets in operation Spain At Abengoa Solar, we currently have ten plants in operation, all of which are in Spain, representing a total of 193 MW of installed power. The five thermosolar plants represent 181 MW, while the remaining five plants, with photovoltaic technology, account for the other 11.7 MW. 212 3 We set forth below details of each one of the plants that the Company has in operation, to which the regime established in RD 661/2007 is applied (see Note 2.26). PS10 plant (11MW) The thermosolar plant PS10 of Abengoa Solar, located on the Solúcar Platform, came into operation in March 2007. The plant, with 11 MW of installed power, consists of a solar field with 624 heliostats of 120 m2 each, which concentrate the solar radiation on to the receiver located at the top of a 115m high tower, in order to produce steam and operate a turbine connected to the electricity generator that is connected to the grid. The plant has a storage system of almost one hour, which allows occasional cloudy periods to be managed without having to stop the plant and then start it again. This is the first plant in the world to include a storage system. The plant generates energy equivalent to the needs of 5,500 homes and saves 6,700 tonnes of CO2 per year. Since it came into operation in 2007 to date, it has attained the expected results. Since that time, PS10 has served to test the viability of the tower concept and as a learning and improvement tool for future plants with this technology. PS20 plant (20MW) The thermosolar plant PS20 was the second plant with this technology to be put into operation by Abengoa Solar on the Solúcar Platform. Commencing its activity in February 2009, it benefits from the experience accumulated by Abengoa Solar in the construction and operation of the PS10, which allowed it to include several improvements in the design and operation of the plant, leading to greater efficiency and less self-consumption during the almost two years it has been in operation. Among these improvements, we can highlight a more efficient receiver and a number of improvements in the control and operation system and the thermal energy storage system. The plant has installed power of 20 MW, composed of 1,255 heliostats of 120m2, which concentrate the solar radiation on to the receiver located at the top of a 165m-high tower, in order to produce steam and operate a turbine connected to the electricity generator that is connected to the grid. It generates energy equivalent to the needs of 10,000 homes and saves 12.100 tonnes of CO2 per year. Solnova, Solnova 3 and Solnova 4 plants (150MW) 213 3 In 2010, Abengoa Solar began to operate the first three plants with parabolic cylinder collectors on the Solúcar Platform (Seville): Solnova, Solnova 3 and Solnova 4, with 50MW each. With the coming into operation of these plants, we now have plants in operation with the two commercial thermosolar technologies. The technology consists of concentrating the solar radiation using high-precision curved mirrors on to a heat-absorbing tube inside which a fluid that reaches high temperatures is circulating. This fluid allows steam to be produced, which is sent to a turbogenerator, where it expands in order to produce energy. Each plant consists of 54,000m2 of collectors distributed over 120 hectares, which allows energy to supply 26,000 homes to be produced and saves the emission of approximately 31,000 tonnes of CO2. A collector has 6m2 of aperture and almost 150m2 of surface. Sevilla PV plant (1.2 MW) It is the first commercial plant with low-concentration photovoltaic technology in the world. With nominal power of 1.2 MW, it stands on the Solúcar Platform, in Sanlúcar La Mayor. Sevilla PV has 154 trackers that occupy an area of 12 hectares. This plant is able to generate sufficient energy to supply around 650 homes, avoiding the emission of more than 1,800 tonnes of CO2 per year. Copero PV plant (1MW) This is a series of ten photovoltaic installations with total nominal power of 1 MW, constructed within the boundaries of the Wastewater Purifying Station (EDAR) that Empresa Metropolitana de Abastecimiento y Saneamiento de Aguas de Sevilla, S.A (hereinafter, “Emasesa”) has in El Copero, in the municipal area of Dos Hermanas (Seville). 50% of these plants belongs to the company. Las Cabezas PV (5.2MW) Photovoltaic plant with 5.2 MW of power and single-axis trackers, standing in an area with high radiation in the province of Seville. Casaquemada PV (1.9MW) Plant with 1.9 MW of nominal power and photovoltaic double-axis tracking technology, standing on the Solúcar Platform. It includes 19 high-concentration installations of 100 kW each, constructed with leading edge technology. 214 3 Linares PV (1.9MW) Photovoltaic plant with 1.9 MW of nominal power and double-axis trackers, located in Jaén. It includes 19 high-concentration installations of 100 kW each, constructed with leading edge technology. 3.1.2 Industrial installations Abengoa Solar carries out the promotion, design and construction of personalised installations of all sizes. Industrial solar installations use parabolic-cylinder technology to produce thermal energy (heat and steam) for industrial processes. The main advantages of this technology are its adaptation to different needs, its swift implementation and the contribution to the reduction of CO2 emissions, since one of the principal sources that produce this gas is industries. Three industrial solar installation projects put into operation by Abengoa Solar in 2010 can be highlighted: • The solar thermal installation integrated into a coal electricity plant belonging to Xcel Energy (Colorado). This project, which began its operations at the beginning of 2010, increase the plant’s thermal efficiency, while reducing CO2 emissions due to the decrease in the consumption of coal. • A new industrial solar system was installed at the Correctional Institution of Englewood, Colorado. The installation has an integrated storage tank that allows the supply of hot water during the whole day. The system supplies 50% of the hot water consumed by the building. • Also in 2010, the industrial solar air-conditioning installation of the Palmas Altas building came into operation, allowing the electricity needs of the Palmas Altas complex, where Abengoa has its offices, to be minimised. 3.1.3. Assets under construction In 2010, Abengoa Solar began the construction of most of the plants that were entered in the Spanish Ministry of Industry’s Pre-assignation Register in 2009. Each of this plants will produce electricity equivalent to the supply of 26,000 homes and reduce the emission of more than 31,000 tonnes of CO2 per year. 215 3 Furthermore, construction activities of Solana in the United States and Shams in Abu Dhabi commenced. Spain Écija Solar Platform (Helioenergy Plants 1 and 2 -100 MW-) Helioenergy Plants 1 and 2 stand in the municipal area of Écija (Seville). They are parabolic-cylinder technology plants of 50 MW each. To construct and operate these two plants, the company incorporated a joint venture at 50% with E.ON Climate and Renewables. The construction work is progressing satisfactorily and both plants are planned to come into operation during 2011. Currently, the main work at both of them is concentrating on installing mirrors in the solar field. Extremadura Platform (Solaben 2 and Solaben 3 Plants -100MW-). Two of the four thermosolar plants of 50 MW each that comprise the Extremadura Solar Platform are in the construction phase. A collaboration agreement with Itochu has been signed for the construction and operation of these two plants. The construction of both plants is progressing satisfactorily as planned. El Carpio Platform (Solacor 1 and Solacor 2 Plants -100 MW-) To construct and operate the two 50 MW parabolic-cylinder technology plants, Abengoa Solar entered into an alliance with JGC Corporation, where Abengoa Solar holds an interest of 74%. Non-recourse financing has now been obtained. The construction of these two plants, which began in summer 2010, continues to progress satisfactorily. Currently, the work is concentrating on the foundations of the solar field. Castilla-La Mancha Platform (Helios I and Helios II -100 MW-) Abengoa Solar is constructing two thermosolar solar plants in the province of Ciudad Real (CastillaLa Mancha). They use parabolic-cylinder technology and are of 50 MW each. The initial construction phase has concluded successfully and work on the foundations of the power island of the two plants is very well advanced. 216 3 International Solana Solana, located 70 km to the south-east of Phoenix, Arizona, is one of the largest thermosolar plants under construction in the word and has 280 MW gross (250 MW net) of leading-edge paraboliccylinder technology. Solana will produce sufficient energy to supply 70,000 American homes, avoiding the emission of 475,000 tonnes of CO2 per year. This energy will be sold to APS, the largest electricity company in the State of Arizona, under a 25-year electricity purchase agreement. Solana will include six hours of storage using molten salt technology, which will allow energy to be supplied during cloudy intervals and after sunset. With these storage capacities, Solana will be able to generate electricity to meet the peak in the demand last thing in the evening in summer. Abengoa Solar has received a federal guarantee for a value of 1,450 billion dollars from the United States government, which has helped it to conclude the financing and commence construction. Currently, earth is being moved and the foundations of the assembly building are in progress. The construction and operation of Solana will bring huge benefits, among which the creation of 1,600-1,700 jobs during the construction phase and 85 permanent jobs to operate the plant may be highlighted. Hybrid combined-cycle solar plant in Algeria (150 MW) The first hybrid parabolic-cylinder and combined-cycle plant in the world in Hassi- R´mel (Algeria). The plant will have 150 MW of installed power, 20 MW of which will come from a solar field that will have more than 180,000 m2 of useful reflective surface. This plant belongs to a related company in the Engineering and Industrial Construction business group. The plant is in the final phase of construction and is expected to come into operation during 2011. The Engineering and Industrial Construction business group, Abengoa Solar and Neal (New Energy Algerie) are collaborating on this project. Abu Dhabi Solar Plant (100 MW) The Shams-1 plant, which began construction in mid-2010, stands on 300 hectares in the Abu Dhabi desert and will have power of 100 MW, thanks to its 600,000 m2 of parabolic-cylinder collectors. 217 3 The project originates with a consortium formed by Abengoa Solar, Total Energie Solaire Concentreé and Masdar, which entered into association to develop and operate the largest solar plant in the Middle East. This first Middle Eastern solar energy project, awarded in an international call for tenders, represents one of the Abu Dhabi government’s first steps to introduce renewable energies in a region that, today, still shows great dependence on hydrocarbons. For Abengoa Solar, it represents a strategic milestone, given the great development potential of the whole Middle Eastern region. Shams-1 has the most advanced leading-edge parabolic-cylinder technology. In this respect, we can highlight, among other innovations, the plant’s dry cooling system and the existence of an auxiliary heating boiler. The dry cooling system reduces the plant’s water consumption considerably, while the auxiliary boiler, which allows the temperature of the water steam to be increased at the turbine entrance, increases the efficiency of the cycle considerably. These two new features place Shams-1 in the vanguard of parabolic-cylinder technology. Construction work is progressing satisfactorily and the plant is planned to come into operation in summer 2012. 3.1.4 Assets under promotion Abengoa Solar has an important portfolio of future projects of almost 4 GW at an advanced stage of the promotion phase. Abengoa Solar has a team of more than 100 people, located in Spain, the United States and the rest of the markets in which it operates, engaged in promotion. Over recent years, Abengoa Solar has made a great effort in the promotion of solar plants. As a result, it has an extensive portfolio in different phases of promotion with both thermosolar and photovoltaic technology. Spain Abengoa Solar has more than 1300 MW in thermosolar plants prioritised by the different autonomous regions. Most of these plants will be constructed when there is a new regulatory framework, from 2014 onwards. United States Abengoa Solar has a specialised team that has been carrying on promotion activities since 2006 and that has allowed the Group to have two large projects in Arizona and California with signed supply contracts. Abengoa Solar currently has other projects in the promotion phase in several States, with both thermosolar and photovoltaic technology. 218 3 Other countries Outside Spain and the United States, Abengoa Solar has teams able to offer the best solution to meet any need in the markets considered most attractive due to the existence of high solar radiation and a certain regulatory framework. At present, Abengoa Solar has several projects at various stage of the promotion phase with both thermosolar and photovoltaic technology. 3.1.5 The evolution of the key figures in the Statement of Financial Position and Income Statement in the last two years, in millions of euros, was as follows: Item Δ% 2009 Total equity 28.1 980.7% 2.6 Total assets 2,744.1 74.0% 1,577.3 Item Sales Gross Flows (1) Profit attrib. parent company (1) 2010 2010 Δ% 2009 168.1 45.0% 115.9 97.6 33.5% 73.1 (10.9) (81.8%) (60.2) Profit before interest, taxes, Amortization and depreciation and provisions, adjusted by the flows on the work carried out on own fixed assets. 3.1.6 Highlights of the Statement of Financial Position: Towards the end of 2010, we signed the extension of the loan signed on 28 December, 209 for one hundred and ten million euros (110,000,000 euros), obligatorily convertible into shares of Abengoa Solar upon maturity, which will take place on 31 December 2011, unless expressly agreed otherwise between the parties. This provoked a decrease of the equity component of this instrument and an increase in its liability component. Even so, in spite of need to enter into new interest rate derivatives, the valuation of which is reflected in the equity for the year, the entry of new partners who contributed capital in some of the plants and the reversal of part of the impairment provisions for our projects in the United States meant that equity increased in 2010 by 25.5 million euros in comparison with 2009. 219 3 Our total assets grew by 74%, totalling 2,744 million euros, where the weight of Fixed Assets in Projects (1,605 million euros) may be highlighted and we can observe the investment effort made in the first few years of operating and bringing into operation plants that guarantee future cash generation. Investments in plants were made by Project Finance, a financing formula arranged with financial institutions so that the latter recover the credit through the funds generated by the operation of the projects themselves, with no further security. There is, therefore, no recourse to the shareholders in this type of financing. The balancing item of these investments is shown in the liabilities in the Statement of Financial Position under the heading Project Finance structure, which, at the 2010 year end, represented 1,192.8 million euros under the non-current heading and 140.5 million euros under the current heading, in comparison with 821.4 million euros and 64.2 million euros, respectively, in 2009. Consolidated sales at 31 December, 2010 were 168.1 million euros, an increase of 45% on the preceding year. This increase was due mainly to: The sale of solar energy for an amount of 58.0 million euros, which came from the 193 MW in operation. The sale of technology components, the transfer of know-how to third parties and solar promotions, for 110.1 million euros. In this section, we highlight solar plant components and industrial heat-generating systems with various applications, such as air conditioning, water or industrial processes. The Gross Cash Flows from Operating Activities (earnings before interest, taxes, Amortization, depreciation and provisions, adjusted by the flows from the work carried out on own fixed assets) was 97.6 million euros, 33.5% up on 2009. In euros, the contribution rose by 24.5 million euros. Since 2007, Abengoa Solar has invested 147.5 million euros in R&D, which includes projects in Europe and the United States in collaboration with institutions and universities that are leaders in solar energy. The impact on the 2010 Income Statement was 8.8 million euros. Furthermore, during the year 2010, some of the impairment recognized on certain Property, Plant and Equipment, especially in the United States on the Solana project, was reversed. 220 3 Even so, the recognition of impairment of certain Group assets represented an expense of 21.0 million euros in the Income Statement, as a result of the assessment carried out on the existence of indications of impairment of said assets due to probable external factors that had either taken place or would take place in the near future in relation to the legal, economic, technical and/or market environment in which the Group operates or the market in which the assets are located. In relation to the preceding paragraph, the most significant amount to be highlighted is the impairment of land and constructions acquired in the United States for developing projects in the promotion phase for an amount of 11.9 million euros, together with the impairment caused by a number of photovoltaic technology components capitalised at 31 December, 2010 (7.2 million euros). Nevertheless, the indications of impairment of certain assets have disappeared due, primarily, to the conclusion of the financing for Solana. This has allowed an amount of 20.6 thousand euros to be reversed. The financial loss improved from -43.3 million euros in 2009 to -33.1 million euros in 2010, primarily as a result of the reversal of the impairment of financial credits and the positive effect on the Income Statement of the measurement of derivatives, with the effect of the time value of call option purchases on profit and loss, as stated in IAS 39 (see Note 11 to the 2010 Consolidated Financial Statements of Abengoa Solar). The loss before tax attributable to the parent company is -10.8 million euros, in comparison with the -60.9 million euros of 2009. 3.1.7 The comparative situation in respect of the average number of employees is as follows: Average Number of 2010 % 2009 % Spain 353 78.9% 310 79.9% Abroad 94 21.0% 78 20.1% Total 447 100.0% 388 100.0% Employees 221 3 4.- Information on the Forecast Evolution of the Group - In Spain, at first, we are continuing with the construction of 400 MW in thermosolar plants and, during 2011, will commence the remaining 100 MW, until the 650 MW included in the PreAssignation Register published in the year 2009 are completed. Secondly, in the twelve months of 2010, we brought 150 MW into operation on our Solúcar Platform, thus reaching a total, for thermosolar, of 181 MW in operation, which, combined with the photovoltaic energy of 11.7 MW, make up our installed capacity. - In the United States, close to 3,785 billion dollars have been furnished in federal credit guarantees, 1,450 billion dollars of which were granted to Abengoa Solar for the Solana project, thus providing definitive support to the plant’s financing. - Continuing with our activity abroad, in June 2010, we began the construction in Abu Dhabi of what will be the largest plant in the Middle East in operation in 2012. Shams 1, as it is called, will have an installed capacity of 100MW and is the result of our strategic alliance with Total Energie Solaire Concentrée and ADFEC. In addition, new opportunities have arisen in markets in north Africa and the Middle East, for example in the United Arab Emirates and Morocco. - With the foregoing, Abengoa Solar has reinforced its strategic position in the industry, holding a total of 3,448 MW on its portfolio, including: 193 MW in operation, with both tower and parabolic-cylinder technology, 930 MW under construction and 2,235 MW in the promotion phase. - The changes in the energy sector in general have led to a considerable increase in competition between the different sources of renewable energy, increasing the pressure that existed between the different technologies. In this respect, thermosolar energy maintains a competitive position due 222 3 to added values such as manageability, scalability or the multiple technological options that reinforce its strategic position. - In spite of the financial uncertainty that exists and the limitations of the debt markets, the sector’s development has been reinforced by governmental support, as in the case of Spain, with the confirmation of the current regulatory framework in December, which allowed the existing uncertainties to be eliminated, the assignment of federal credit guarantees on the part of the United States Administration, or the publication of stable and attractive regulatory frameworks in new markets. - At Abengoa Solar, we are experiencing a high growth rate in Spain due to the 13 projects included in the current Pre-assignation Register, which will benefit from the economic regime established in RD 661/2007. - We began activities in the United States in 2006 and have a project with a gross installed capacity of 280 MW under construction (Solana) and a second project in the promotion phase (Mojave). - Since 2009, we have been participating in "Desertec Industrial Iniciative", a European project to construct thermosolar and other renewable energy plants in north Africa and the Middle East, which could cover 15% of the energy demand of Europe and a substantial part of the electricity of north Africa and the Middle East by 2050. - From 2015 onwards, practically all our investment plan will be converted into profits, once that all the assets that are currently under construction come into operation. Our objective for that time is to reach an EBITDA of 412 million euros. This geographic diversification of the business gives us significant competitive advantages, such as less dependence on one specific regulatory environment, thus helping us to achieve greater stability in the business and less exposure to one specific market and its economic context. Likewise, we carry on our activities in a market showing high growth all over the world and with prospects of maintaining that trend, due to the global need for energy solutions that combat climate change, the need de reduce countries’ energy dependence and the increase in cost and price volatility of fossil fuels. In addition, from the start, Abengoa Solar has positioned itself throughout the different stages of the value chain of the thermosolar business. This vertical integration allows us to attain synergies 223 3 between the activities of energy sales, promotion and development of new technologies, such as the design of optimal solutions, the control of key components and the supply thereof and the increase in cost competitiveness. Lastly, the experience accumulated in internationalisation processes has allowed us to adapt to different geographies with varying types of regulations. This knowledge has been necessary and useful in expanding into new markets with thermosolar or photovoltaic energy potential, facilitating a swifter adaptation than that of the competition. 5.- Financial Risk Management The activities we carry on are exposed to a number of risks. Abengoa Solar’s Risk Management model attempts to minimise any potential adverse effects on the Group’s financial profitability. Internal management rules provide written policies for global risk management and also for specific areas, such as exchange rate risk, interest rate credit risk, liquidity risk, the use of hedging instruments and derivatives and the investment of surplus liquidity. • Market risk: the Group’s activity exposes it primarily to the financial risks derived from variations in the exchange rate and interest rates. To hedge this exposure, Abengoa Solar uses options and swaps for foreign currency and interest rate futures. • Credit risk: the principal financial assets exposed to credit risk derived from the third-party counterparty’s failure to meet its obligations are investments in the financial assets included in the balances of cash and cash equivalents, non-current financial assets, derivatives and balances relating to trade and other receivables. • Liquidity risk: Abengoa Solar’s liquidity and financing policy is intended to ensure that the company keeps sufficient funds available to meet its financial commitments. • Capital risk management: The Group manages its investments in capital to ensure that the subsidiaries are assured continuity from the point of view of their equity situation, maximising the return for shareholders by optimising the structure of equity and borrowing in the liabilities of the respective statements of financial position. For further information, see Note 9 to the Consolidated Financial Statements. 224 3 6.- Research and Development Information Abengoa Solar continued to increase its R&D&I efforts in 2010 (in spite of the prolongation of the worldwide technological crisis), convinced that, in order for these efforts to bear their fruits, they require a continuity that cannot be interrupted by crises or economic cycles. Furthermore, it has reinforced its presence and, in some cases, leadership in different public and private institutions and forums in which cooperation between large technological companies is promoted and the short- and long-term future of the R&D&I activity is decided. The programme established for this type of activity has substantially been met. Following the different lines of research, we make, on a day-to-day basis, every effort to attain the highest degree of innovation in our products, as required by the characteristics of our activities. Among the objectives of the company’s R&D&I programme, we can highlight, for both tower and parabolic-cylinder technology, the attainment of higher operating temperatures that increase the efficiency of the power cycles, an improvement in the plants’ control and operating systems, the reduction of investment and operating costs for each technology, the optimisation of storage systems and, in addition, the development of new, more efficient, photovoltaic technologies. In line with these challenges, the company continued to operate several pilot plants on the Solúcar Platform during 2010, which allowed it to consolidate several key innovation concepts: ‐ The operation, since April 2009, of a tower with overheated steam generated in a second receiver, reaching temperatures of over 500ºC. ‐ Confirmation of water as an alternative to oil as the heat-bearing fluid is the loops of paraboliccylinder technology. The Direct Steam Generation Plant (DSG) that also came into operation at the beginning of 2009 is serving to ratify the control system developed by Abengoa Solar in direct steam generation systems. ‐ Validation of thermal storage. The operation of a demonstration molten salt plant since 2009 has allowed great experience to be gained in using this fluid to store energy in the form of sensible heat and quantify the global performance of this type of storage. ‐ Development of new photovoltaic technologies due to the experience acquired in the photovoltaic laboratory that has been operating since 2008 on the Solúcar Platform. As a result of this R&D&I activity, Abengoa Solar has its own technology, which it protects under patents. Thus, the company holds priority right over a number of crucial inventions that, in 2010, gave rise to 33 patent applications, making a total of 80 patent applications over recent years. 225 3 At present, Abengoa Solar is carrying on both its own Research and Development projects and projects in collaboration with institutions and universities. In this respect, the company collaborates closely with prestigious institutions, such as the National Renewable Energy Laboratory (NREL), the main renewal energy laboratory in the United States, the Centro de Investigaciones Energética, Medio Ambientales y Tecnológicas (CIEMAT), an official research entity into excellence in matters related to energy and the environment, or the Thermodynamics Department of the German Aerospace Centre (DLR). From all this combined effort, we can highlight the fact that, in 2010, we conducted the Research and Development activity in accordance with the needs that arose. Most of the projects fall within the R&D lines promoted by the Spanish Administration (actions by the Ministry of Industry and Energy), the European authorities (R&D Framework Programmes) and the United States Administration (Department of Energy). In the year 2010, the investment in R&D&I was 24.2 million euros, in comparison with 32.4 million euros in2009. Since 2007, Abengoa Solar has invested 147.5 million euros in R&D, including projects in Europe and the United States in collaboration with the leading institutions and universities in solar energy. 7.- Environmental Information Abengoa Solar, which, since its beginnings, has been committed to sustainable development and combating climate change, manages the attainment of its business objectives through a suitable policy that ensures the conservation of the environment while carrying on its business activity. In accordance with its environmental management policy, Abengoa has established the implementation of Environmental Management Systems meeting the requirements of ISO 14001 as a strategic objective for its companies overall. The environmental certification systems promote correct environmental management, limiting the risk associated with the environmental impact of our activities and compliance with the applicable legislation. It is within this framework that specific objectives are set for reducing any negative environmental impacts that the products and services developed may have and for eliminating or minimising the risk derived. In implementing the environmental management system, at the 2010 year end, the percentage of companies with Environmental Management Systems certified under ISO 14001 was 71% in relation to the sales volume (87% in 2009). Climate change, greenhouse gas emissions and other environmental impacts. 226 3 In 2008, Abengoa Solar brought into operation a complete system for measuring greenhouse gas emissions in an internal standard, which was comparable to international standards and audited by an independent external entity. As a result of the foregoing, the 2010 Greenhouse Gas Emissions Inventory has provided us with a realistic photo of the CO2 emissions of each one of our activities, which will allow us to identify points for improvement in the sustainability of all our activities and to generate value added for our customers. Thanks to the experience and good results obtained after putting this Greenhouse Gas Emissions Inventory into operation, Abengoa Solar will implement a system of sustainability indicators in 2011, which will allow us to measure and fix quantified improvement objectives, adding a valuation of all possible environmental dimensions in carrying on our business activities. The combination of these two initiatives places Abengoa Solar as the world leader in sustainable development management. 8.- Treasury Shares At the 2010 year end, Abengoa Solar, S.A. held treasury shares of 0.01% (0.01% in 2009) through the interest that Abengoa Solar España, S.A. (a subsidiary of Abengoa Solar, S.A.) holds in Abengoa Solar, S.A., formed by four shares with a face value of 12.50 euros each. 9.- Information on important events that have taken place since the end of the reporting period On 25 February, 2011, through its United States subsidiary, Abengoa Solar made the first drawdown on the loan granted by the United States Federal Financial Bank (FFB), guaranteed by the United States Department of Energy (DOE), once the prior conditions had been met. Likewise, on 3 March, 2011, Shams Power Company concluded the financing of Shams 1. The transaction was concluded for an amount of 600 million dollars repayable over 22 years, with ten regional and international entities participating. Abengoa holds an indirect interest of 20% in this company. 227 228 ABENGOA SOLAR www.abengoasolar.com ABENGOA SOLAR Informe Anual 2010