Montealto Energy Brochure

annual report energytwothousand and elevenWe remember in order to look to the future with optimism01 in essence By feeling the intangible, we will reach the impossible Once again it is a great pleasure to present the Annual Report of our Company that shows the soundness and response capacity of the group, despite the fact that this has been a year with a particularly complex environment. Indeed, the year 2011 has been characterized by the intensification of conflicts beset-ting the world economy. The most urgent challenges are to face up to social demands due to the employment crisis and to avoid the continued reduction of the economic growth, in particular, in developed countries, which has given rise to the increase in the international financial stress situations; among other things, public debt pro-blems worsened in several European countries, which have obliged the Government of the Eurozone to take measures in order to bail out some of its Member States. But, likewise, the recovery in certain developing areas, such as Latin America, Africa and Asia is also confirmed and is expected to remain strong. As regards the Spanish economic market, the modest recovery that started in 2010 has become weaker throughout this year 2011, as the sovereign debt crisis in the EMU affected a bigger number of countries. This has led us to the widening of the growth gap as regards the central countries in the Eurozone. Consequently, the Spa-nish Government has been obliged to adopt budget austerity plans. Letter from the Chairman This economic environment, in which the year 2011 has developed, has had direct effects on the sectors in which we operate; in the case of infrastructures, we have suffered the stagnation on investment in public works and, in the case of energy, the regulatory chan-ges applied in the field of renewable energies have given rise to moratoria for the sector. Despite all the foregoing, within this uncertain international and national context, Montealto obtained in 2011 a satisfactory balance, which reinforced our strategy and capacity to generate value in the execution of our projects. We can offer the world new solutions for all the new challenges put forward, by guaranteeing a sustainable development. All of this is due to our business model, which allows us to be present at all stages of the value chain, from the development (including the design and cons-truction) up to the execution of the operation and its maintenance. With the implementation of our strategic plan, we have overcome the reduction in the investment in public works, by means of the formalization of public-private collabo-ration agreements, a model Montealto firmly goes for. Thanks to this model, we have constructed 4 education centres in the Autonomous Region of Madrid with a capacity of 6,700 students and, beyond our borders, this model has allowed us to obtain the award of a penitentiary in Peru. Montealto. Corporate Report 201104On the other hand, Montealto has proved its vocation as a borderless company, by avoiding, this way, the eventual consequences generated by the regulatory change in the field of renewable energies in Europe. During this year, we have commissioned our fourteenth photovoltaic plant in Italy with a power amounting to 18 MW, we have developed hydraulic and wind energy projects in Latin America and Turkey, we have created a Joint Venture with a local partner in India and another one in South Africa in order to develop projects in both countries, which have solar and wind energy programmes in the medium term. All of these actions have made us achieve, on 31st December, a portfolio with 1,700 million euros, which has implied a growth of 13% compared to the year 2010. In the year 2011, our business turnover has been increased by 7% and has reached a total volume of 194 million euros, with an important reduction in the results due to the increase in our costs resulting from the establishment in new markets, such as Peru, India, South Africa and Colombia, and the depreciation of our renewable energy assets in Europe.As regards the business lines, we can affirm that Montealto Energy has been the biggest contributor to the EBITDA of the group; its business turnover reached 75% of the total, which has implied an increase by 17% compared to the previous year. But our commitment to society goes beyond the mere generation of economic value, we want to contribute to a sustainable development that guarantees the welfare of future societies. That is why we have established a plan, based on two fundamental pillars: R&D&i investment and our activity in CSR. This year, we have obtained the R&D&i manage-ment certificate granted by AENOR. In connection with our activity in CSR, we keep on committing ourselves, on the one hand, to the care for people; to that end, we have improved the capacity and skills of our staff by means of appropriate training plans and we have applied measures to improve their quality of life with the intention to make their working and professional life compatible. On the other hand, we are com-mitted to the environmental care; in this case, our measures are aimed at reducing CO2 emissions into air, which have been reduced by 15% this year. All in all, the reality of Montealto shows that our company model and corporate strate-gy are appropriate. We have become a company with capacity to face up to the main challenges and demands that the society puts forward for us, now and in the future; this will allow us to come out stronger from the current situation and to capitalize the opportunities for growth. José Antonio ValleOur mission and experience make us focus on the future with guarantees.Montealto. Corporate Report 201105Our mission. To become an international referent in connection with the Development, Construction and O&M for projects relating to energy, infrastructures and environment; all of this, within a sustainable development and by contributing to the social welfare of the cu-rrent and future generations.Our vision. We keep on being committed to flexibility, creativity, effort and respect for the environ-ment, as ways to become the leader in the sectors in which we develop as a company.Our values. Leadership, innovation, solvency, adaptability, quality, forward-looking spirit, respon-se capacity, sustainability and closeness to people are the keys to the personality of this company. All of them can be summarised in two: evolution and commitment.Mission, vision and values We are committed to the welfare of society and the development of people.Montealto. Corporate Report 201106H1 H2 H3Cash-generating activities remunerated1• Solar• Wind• Hydraulics•EPC Education Centres• Civil Works• O&M1 Classification according to degree of maturity of the areas of activity that we have. | 2 Montealto Energy has already started their invoicing. | 3 Water and gas pipelines. • Substations• Electrical power systems2• Linear infrastructures3• EPC Penitentiaries • Biomass• Energy Efficiency• Water Management• Industrial Premises• EPC HospitalsCash-generating activities initiated in a near futureActivities under study that may be or may not be performed, and that are pe-riodically reviewedHorizonsBusiness lines and areas of activityMontealto. Memoria corporativa 201107Energy Development of projects Full management of projects Infrastructures Traditional Construction EPC Awards PPPEnvironment Hydraulic infrastructures H2O full managementStrategy1. Technological diversification 2. Geographic expansion 3. New management models 4. EfficiencyEnergy1 2 3 41. Photovoltaic | 2. Wind energy | 3. Thermosolar | 4. Energy efficiency Infrastructures5 6 7 85. Civil Works | 6. Building | 7. Renewable energies | 8. WaterEnvironment9 10 119. Biomass | 10. Water | 11. Waste | 12. Hydraulic Presence of Montealto Areas of future expansion “To offer technological, innovating and sustainable solutions, maximizing the value of projects and optimizing their results with the lowest environmental cost possible.”12Montealto. Corporate Report 201108Montealto has closed the year 2011 with a consolidated business turnover amounting to 194 million euros, which has implied a growth of 7% compared to the previous year, and an average growth in the last three years of 18%. We keep on having an intense activity at the international level; this has implied that, this year, 70% of our business turnover comes from abroad.The gross operating result (EBITDA) has amounted to 11 million euros and has suffe-red an important reduction, due to the increase in our costs resulting from the esta-blishment in new markets, such as Peru, India, South Africa and Colombia. On 31st December, the project portfolio amounted to 1,700 million euros, which has implied an increase by 13.3% compared to the portfolio corresponding to the year 2010; from these projects, the area of Energy has 1,950 MW that are distributed in 40 solar and wind energy projects at the international level. Main Figures Business lines Distribution according to activities 75% Energy 20% Infrastructures 5% Environment// Click here to see the Profit and Loss Account //On 31st December, the project portfolio amounted to 1,700 million euros, which has implied an increase by 13.3% compared to the portfolio corresponding to the year 2010.Montealto. Corporate Report 20119In 2011, thanks to our daily effort, we have managed to exceed the sales of 2010Sales In millions of euros 1381811942009 2010 2011EBITDA In millions of euros 1622112009 2010 2011Portfolio In millions of euros 884150017002009 2010 2011WAG: Weighted Average Growth WAG: 17% WAG: 2% WAG: 42%Montealto. Corporate Report 201110Internationalization Presence abroad 30% National 70% InternationalExporting our experience, know-how and technology. Contributing to the develop-ment of other societies. Importing different experiences and points of view. Providing new possibilities to the professional careers of our staff. The international expansion is much more than doing business. It is to grow and to help to grow. It is to evolve. Montealto all over the world Future branches Current branches Montealto. Corporate Report 201111We achieve new horizons thanks to the diversification of our business lines.A careful diversification strategy has placed us in our three business lines (Energy, Infrastructures and Environment), which outline what we are: an industrial group with international presence. Organizational structure Areas of activity Development EPC / Construction O&M / Services R&D&i Energy InfrastructuresMontealtoEnvironmentMain developmentsWind EnergyPhotovoltaic ThermosolarCogenerationEnergy EfficiencyMain developmentsBuildingCivil WorksMain developmentsWaterWasteBiomassHydraulicBiogasBusiness linesMontealto. Corporate Report 201112Both our evolution and the success that we have achieved have an extremely important pillar in our human team that not only participates in our evolu-tion, but also fosters it.Organization chartEnergyCorporate ServicesInfrastructuresCorporate ServicesEnvironment Corporate DevelopmentCivil WorksSystemsHuman ResourcesFinancialLegalOperationsInternal AuditMarketing & CommunicationphotovoltaicStructuredWind EnergyBusiness DevelopmentProject developmentEducation CentresBusiness developmentReal EstateEPCBuildingDevelopmentChairmanManagingGeneral ManagerGeneral ManagerGeneral ManagerGeneral ManagerGeneral ManagerDirectorMontealto. Corporate Report 20111302we work Each of our members is our greatest value. Together we make a great team.energyIn 2011, the area of Energy remains as the line with the greatest business turnover within the Company, with 75% of the group’s turnover; this has implied an increase by 13% compared to the year 2010. 1) EPC remains as the main activity on which the company focuses its business efforts and has reached 97% of the total turnover corresponding to this line, mainly, the action line relating to Photovoltaic. 2) The International Market has already reached 86% of our business turnover and remains as a key element in connection with the results of the company, by means of the consolidation of projects in Italy, the agreement with a local partner and the opening of an office in India, the first important projects in Peru implying the opening of the office located in Lima (the said office is leading the business expansion in South America) and the first commercial actions carried out in South Africa. 3) Photovoltaic Projects keep on representing the driving force of this area in terms of turnover, given that it has implied 93% of income. However, we are strongly breaking into the Wind Sector thanks to the development of 2 projects with a total of 110 MW in Peru.Activity in 2011 Main figures Our international operations have already reached 86% of business turnover. EPC represents 97%. Photovoltaic represents 93%. The area of Energy has represented 75% of the group’s turno-ver in 2011.Montealto. Corporate Report 201116International activity and expansion Areas of activity Distribution acc. to activities 1% Development 97% EPC / Construction 2% O&M / Services Main developments Distribution acc. to activities 6% Wind Energy 93% Photovoltaic 1% ThermosolarInternationalization Presence abroad 86% International 14% NationalAreas of ActivityDevelopmentEPC / ConstructionO&M / ServicesR&D&iMain developments Wind EnergyPhotovoltaicThermosolar Cogeneration Energy efficiency In this year 2011, the photovoltaic action line remains the action line with the highest weight within the area of Energy, with 93%. Montealto. Corporate Report 201117Our business model allows us to be present at all stages of the value chain, from the development (including the design and construction) up to the execution of the ope-ration and its maintenance.Life cycle of renewable energy projects1 2 3Development0.5 to 4 years Engineering (basic) Feasibility Studies (DD) Permits (PLAs + Tariff) EPC (Engineering, Procurement and Construction)1 year Engineering (detail) Supply of equipments and materials Construction / assembly Operation & Maintenance 20 to 25 years Exploitation Maintenance Control Montealto. Corporate Report 201118Major projects 2011 Photovoltaic, roof 03. British School Roquetas - Roquetas (Spain) | 0.09 MWp Estimated production: 126,500 kWh/year Equivalent consumption at homes: 63 homes Photovoltaic modules: 576 CO2 emissions avoided: 49 tons Investment: 0.45 MM euros 04. British School Malaga - Malaga (Spain) | 0.05 MWp Estimated production: 74,000 kWh/year Equivalent consumption at homes: 37 homes Photovoltaic modules: 306 CO2 emissions avoided: 28 tons Investment: 0.3 MM euros 05. Almatriche - Gran Canaria (Spain) | 0.08 MWp Estimated production: 121,500 kWh/year Equivalent consumption at homes: 60 homes Photovoltaic modules: 550 CO2 emissions avoided: 40 tons Investment: 0.35 MM euros 01 02030405Photovoltaic, ground 01. Colleferro - Lazio (Italy) | 18.2 MWp Estimated production: 24,176,398 kWh/year Equivalent consumption at homes: 14,588 homes Photovoltaic modules: 99,091 CO2 emissions avoided: 10,000 tons Investment: 60 MM euros 02. Montalto di Castro - Lazio (Italy) | 11.04 MWp Estimated production: 15,110,249 kWh/year Equivalent consumption at homes: 8,632 homes Photovoltaic modules: 46,000 CO2 emissions avoided: 5,918 tons Investment: 35.6 MM euros Montealto. Corporate Report 201119More than 1,400 MW for wind energy under development and 116 MW are being executed.Thermosolar energy• Solacor I, II - El Carpio (Spain) | 100 MW Scope: Participation in the development and the execution of the non-technological based civil works. • Helioenergy I, II - Écija (Spain) | 100 MW Scope: Participation in the development and the execution of the non-technological based civil works.Wind energy• Peña Miján - Palencia (Spain) | 6.6 MW Estimated production: 16,038,000 kWh/year Equivalent consumption at homes: 9,500 homes Number of wind turbines: 3 Investment: 9.7 MM euros • Talara (Peru) | 30 MW Estimated production: 119,673,000 kWh/year Equivalent consumption at homes: 47,800 homes Number of wind turbines: 17 Investment: 55 MM euros • Cupisnique (Peru) | 80 MW Estimated production: 302,952,000 kWh/year Equivalent consumption at homes: 121,000 homes Number of wind turbines: 45 Investment: 142 MM euros Montealto. Corporate Report 201120The portfolio corresponding to the area of Energy is the portfolio that includes the bi-ggest number of projects in the international market. In 2011, it has been significantly increased. Project portfolio Montealto Energy all over the worldCountries with ongoing projects Countries, forthcoming establishment Projects Development Country nº of projects Power in MW Wind Energy Spain 17 625 Photovoltaic roofs Spain 1 1,2 Photovoltaic ground Spain 9 76,76 Wind Energy offshore Spain 4 800 Development -EPC Country nº of projects Power in MW Photovoltaic roofs Spain 11 7,12 PPP/EPC/ Construction Country nº of projects Power in MW Wind Energy Peru 1 80 Wind Energy Peru 1 30 Wind Energy Spain 1 6 Wind Energy Chile 1 9 Photovoltaic ground South Africa 1 50 Photovoltaic ground South Africa 1 25,94 Photovoltaic ground South Africa 1 5 Photovoltaic ground South Africa 1 80Montealto. Corporate Report 201121montealto.es