Sacyr S A : 4 Consolidated financial statements and consolidated 2020

March 29, 2021 at 02:50 pm IST

Sacyr Group

(Sacyr, S.A. and Subsidiaries)

Consolidated Financial Statements and

Consolidated Management Report for the year ended 31 December 2020 and

AUDITORS' REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

Audit report on the Consolidated Financial Statements issued by an Independent Auditor

SACYR, S.A. AND SUBSIDIARIES

Consolidated Financial Statements and Management Report for the year ended

December 31, 2020

Ernst & Young, S.L.	Tel: 902 365 456
Calle de Raimundo Fernández Villaverde, 65	Fax: 915 727 238
28003 Madrid	ey.com

AUDIT REPORT ON CONSOLIDATED FINANCIAL STATEMENTS ISSUED BY AN INDEPENDENT

AUDITOR

(Translation of a report and financial statements originally issued in Spanish. In the event of discrepancy, the

Spanish-language version prevails). (See note 44)

To the shareholders of SACYR, S.A.:

Report on the consolidated financial statements

Opinion

We have audited the consolidated financial statements of SACYR, S.A. (the parent) and its subsidiaries (the Group), which comprise the consolidated statement of financial position at December 31, 2020, the separate consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of cash flows, and the notes thereto, for the year then ended.

In our opinion, the accompanying consolidated financial statements give a true and fair view, in all material respects, of consolidated equity and the consolidated financial position of the Group at December 31, 2020 and of its consolidated financial performance and its consolidated cash flows, for the year then ended in accordance with International Financial Reporting Standards, as adopted by the European Union (EU-IFRS), and other provisions in the regulatory framework applicable in Spain.

Basis of the opinion

We conducted our audit in accordance with prevailing audit regulations in Spain. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report.

We are independent of the Group in accordance with the ethical requirements, including those related to independence, that are relevant to our audit of the consolidated financial statements in Spain as required by prevailing audit regulations. In this regard, we have not provided non-audit services nor have any situations or circumstances arisen that might have compromised our mandatory independence in a manner prohibited by the aforementioned regulations.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Domicilio Social: C/ Raimundo Fernández Villaverde, 65. 28003 Madrid - Inscrita en el Registro Mercantil de Madrid, tomo 9.364 general, 8.130 de la sección 3ª del Libro de Sociedades, folio 68, hoja nº 87.690-1, inscripción 1ª. Madrid 9 de Marzo de 1.989. A member firm of Ernst & Young Global Limited.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our audit opinion thereon, and we do not provide a separate opinion on these matters.

Impairment of the value of concession projects and investments accounted for using the equity method

Description

At December 31, 2020, the Group recorded concession projects and investments accounted for by the equity method in its consolidated statement of financial position amounting to 880,832 thousand euros and 1,255,962 thousand euros, respectively. The disclosures pertaining to these assets can be found in Notes 7 and 10 to the accompanying consolidated financial statements.

At year end, Parent Company management and directors test for indications of impairment and, if necessary, estimate the recoverable amount. The purpose of this analysis is to conclude whether it is necessary to recognize an impairment loss against the aforementioned assets when the carrying amount is higher than the recoverable amount. To determine the recoverable amount, Parent Company management and directors test for impairment using the discounted free cash flow method.

Given the high risk that these assets may be impaired, the relevance of the amounts involved and the fact that the analyses conducted by Parent Company management and directors entail making complex estimates and judgments, we determine the possible impairment of these assets to be a key audit matter.

Our response In this regard, our audit procedures included:

 Understanding the Group's policies and procedures for assessing the existence of impairment, and where applicable, estimating the recoverable amount of concession projects and investments accounted for using the equity method, including evaluation of the design and implementation of relevant controls.
 Reviewing, in collaboration with valuation specialists, the reasonableness of the methodology used by Parent Company management and directors and the construction of discounted cash flows, focusing specifically on the discount rate and long-term growth rate applied, as well as the related sensitivity analyses.
 Reviewing the projected financial information used when testing for impairment by analyzing:
-  Historical and budgetary financial information
-  Current market conditions and our own expectations of their future performance
-  Public information provided by other companies in the sector
-  Assessment of reasonable compliance with the terms established in the Specific Administrative Clauses as well as those set out in the financial business forecasts, in addition to the estimates made by group management for certain concession assets.
 Checking that the disclosures made in the notes to the consolidated financial statement comply with the applicable financial reporting framework.

Measurement of accounts receivable from concession assets

Description

As explained in Note 3.d10 to the accompanying consolidated financial statements, concession arrangements in which the concessionaire does not assume the demand risk are recorded using the financial asset model, in accordance with the Interpretation of International Financial Information Reporting Standards on Service Concession Arrangements (IFRIC 12). The Group recognized 523,701 thousand euros and 5,590,902 thousand euros for these items in "Current and non-current accounts receivable from concession assets", respectively, in the consolidated statement of financial position at December 31, 2020. The disclosures pertaining to these assets can be found in Note 12 to the accompanying consolidated financial statements.

Parent Company management and directors make judgments and estimates regarding concession models which include, among others, forecasts of operating expenses, investments, and the internal rate of return.

Due to the relevance of the amounts involved and the fact that the analyses made by Group management and directors require them to make complex estimates and judgments regarding cash flows from concession models, we determine the measurement of these assets to be a key audit issue.

Our response In this regard, our audit procedures included:

 Understanding Group management's processes for preparing the estimates for valuing receivables from concession assets, including evaluation of the design and implementation of the relevant controls.
 Reviewing and assessing, for a sample of concession assets, the reasonableness of the methodologies used by Group management to estimate payments and collections and their effect on the internal rate of return.
 Checking that the disclosures made in the notes to the consolidated financial statement comply with the applicable financial reporting framework.

Recoverability of deferred tax assets

Description

At December 31, 2020, the Group recognized deferred tax assets amounting to 1,071,914 thousand euros in the consolidated statement of financial position. The disclosures pertaining to these assets can be found in Note 14 to the accompanying consolidated financial statements.

To determine the recoverable amount of these assets, Parent Company management and directors evaluated the Group's capacity to generate taxable profits on the basis of the business plans of its components and the business plan of the Sacyr Group. At least at each reporting period, the recoverability of deductions and unused loss carryforwards are reviewed and recognized as assets to the extent that it has become probable that future taxable profit will allow it to be recovered. Due to the significance of the amounts involved and given that the analysis conducted by Parent Company management and directors entail making complex estimates and judgments on the future taxable earnings of the companies comprising the Group, we determined this to be a key audit matter.

Our response In this regard, our audit procedures included:

 Understanding the processes established by Group management for estimating the recoverable amount of deferred tax assets, including evaluating the design and implementation of relevant controls.
 Reviewing, in collaboration with our tax specialists, the reasonableness of the methodology applied by Parent Company management and directors and the construction of economic forecasts used, focusing primarily on:
-  Historical and budgetary financial information.
-  Current market conditions and our own expectations of their future performance.
-  The tax strategies implemented.
 Checking that the disclosures made in the notes to the consolidated financial statement comply with the applicable financial reporting framework.

Recognition of revenue from non-current contracts

Description

Revenue from construction includes the sum of the stipulated contract price, plus the value of the changes made to original work, as well as claims or incentives which are highly probable to be received and can be reasonably quantified. If contract revenue can be reliability measured, it is recognized based on the contract's stage of completion at the reporting date, using the percentage-of-completion method, that is, costs incurred as a percentage of the total estimated costs. The revenue and cost estimation exercise is significant and involves the use of complex and highly subjective judgment.

We determined non-current revenue recognition in long-term contracts to be a key audit matter since it affects both the measurement of "Completed work pending certification," which at December 31, 2020 amounts to 514,869 thousand euros, and a significant amount of the total volume of consolidated revenue, requiring Parent Company management and directors to make significant and complex estimates.

Our response In this regard, our audit procedures included:

 Understanding the policies and procedures for recognizing revenue, including evaluation of the design, implementation and analysis of the effectiveness of controls related to revenue recognition processes used by the Group's key components for this type of contract.
 Performing, for the Group's key components using this type of contracts, substantive tests, which involved conducting a detailed and individual analysis of a sample of projects to determine the reasonableness of the principal hypotheses applied, as well as analyzing the consistency of the estimates made by the Group last year with the actual contract data for the current year.
 Reviewing, in collaboration with our valuation experts, the reasonableness of the methodology used by Parent Company management and directors to recognize and value submitted claims, focusing primarily on expected estimated recovery and the likelihood that claims will prosper.
 Checking that the disclosures made in the notes to the consolidated financial statement comply with the applicable financial reporting framework.

Other information: Consolidated Management Report

Other information refers exclusively to the 2020 consolidated management report, the preparation of which is the responsibility of the parent company's directors and is not an integral part of the consolidated financial statements.

Our audit opinion on the consolidated financial statements does not cover the consolidated management report. Our responsibility for the consolidated management report, in conformity with prevailing audit regulations in Spain, entails:

a) Checking only that the consolidated non-financial statement and certain information included in the Corporate Governance Report, to which the Audit Law refers, was provided as stipulated by applicable regulations and, if not, disclose this fact.
b) Assessing and reporting on the consistency of the remaining information included in the consolidated management report with the consolidated financial statements, based on the knowledge of the Group obtained during the audit, in addition to evaluating and reporting on whether the content and presentation of this part of the consolidated management report are in conformity with applicable regulations. If, based on the work we have performed, we conclude that there are material misstatements, we are required to disclose this fact.

Based on the work performed, as described above, we have verified that the information referred to in paragraph a) above is provided as stipulated by applicable regulations and that the remaining information contained in the consolidated management report is consistent with that provided in the 2020 consolidated financial statements and its content and presentation are in conformity with applicable regulations.

Responsibilities of the parent company's directors and the audit committee for the consolidated financial statements

The directors of the Parent are responsible for the preparation of the accompanying consolidated financial statements so that they give a true and fair view of the consolidated equity, financial position and results of the Group, in accordance with IFRS-EU and other provisions in the regulatory framework for financial information applicable to the Group in Spain, and for such internal control as they determine is necessary to enable the preparation of consolidated financial statements free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the directors of the parent company are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The audit committee is responsible for overseeing the Group's financial reporting process.

Auditor's responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with prevailing audit regulations in Spain will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with prevailing audit regulations in Spain, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
 Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We are solely responsible for our audit opinion.

We communicate with the audit committee of the Parent regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the audit committee of the Parent with a statement that we have complied with relevant ethical requirements, including those related to independence, and to communicate with them all matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Among the matters communicated to the Parent's audit committee, we determined those that were of greatest significance in the audit of the consolidated financial statements of the current period and therefore constitute the key audit matters.

We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.

Report on other legally-stipulated disclosure requirements

Additional report to the Parent's audit committee

The opinion expressed in this audit report is consistent with the additional report we issued for the Parent's audit committee on February 25, 2021.

Contracting period

The ordinary general shareholders' meeting held on June 11, 2020 appointed us as auditors of the Group for a one year period, counting from the year ended December 31, 2019.

Previously, we were appointed as auditors by the shareholders for three years and we have been carrying out the audit of the financial statements continuously since the year ended December 31, 2003.

ERNST & YOUNG, S.L.

(Registered in the Official Register of

Auditors under No. S0530)

(Signed in the original version in Spanish)

_______________________________ Antonio Vázquez Pérez

(Registered in the Official Register of

Auditors under No. 8960)

February 25, 2021

Contents:

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ..................................................................... 4

SEPARATE CONSOLIDATED INCOME STATEMENT ................................................................................. 7

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ........................................................... 9

CONSOLIDATED STATEMENTS OF CASH FLOWS ................................................................................ 11

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ..................................................................... 13

1. Sacyr's activity .................................................................................................................................... 16

2. Scope of consolidation and subsidiaries ...................................................................................... 17

3. Basis of presentation and consolidation ....................................................................................... 29

4. Non-current assets held for sale and discontinued operations ................................................ 53

5. Property, plant and equipment ...................................................................................................... 55

6. Leases .................................................................................................................................................. 57

7. Concession projects .......................................................................................................................... 58

8. Other intangible assets ..................................................................................................................... 68

9. Goodwill .............................................................................................................................................. 69

10. Investments accounted for using the equity method ............................................................. 74

11. Contribution by proportionately consolidated companies .................................................... 89

12. Receivables from concessions ...................................................................................................... 89

13. Non-current and current financial assets ................................................................................... 93

14. Tax situation ...................................................................................................................................... 94

15. Other non-current assets .............................................................................................................. 101

16. Inventories ....................................................................................................................................... 102

17. Trade and other receivables ....................................................................................................... 102

18. Cash and cash equivalents ......................................................................................................... 103

19. Equity ................................................................................................................................................ 104

20. Deferred income ........................................................................................................................... 109

21. Provisions ......................................................................................................................................... 110

22. Contingent liabilities ...................................................................................................................... 113

23. Bank borrowings ............................................................................................................................ 115

24. Other secured financial debt ..................................................................................................... 129

25. Non-current payables .................................................................................................................. 130

26. Derivative financial instruments .................................................................................................. 130

27. Trade and other payables and current payables to associates ......................................... 142

28. Risk management and control policy ....................................................................................... 143

29. Revenue .......................................................................................................................................... 153

30. Supplies ............................................................................................................................................ 154

31. Other operating expenses ........................................................................................................... 155

32. Gains and losses on acquisition/disposal of assets ................................................................. 156

33. Finance income and costs .......................................................................................................... 156

34. Earnings per share ......................................................................................................................... 157

35. Backlog by activity ........................................................................................................................ 158

36. Directors' and Senior Management remuneration and other benefits ............................. 159

37. Related party transactions .......................................................................................................... 164

38. Events after the reporting date .................................................................................................. 167

39. Environment .................................................................................................................................... 168

40. Audit fees ........................................................................................................................................ 168

41. Personnel ......................................................................................................................................... 169

42. Segment information .................................................................................................................... 170

43. Disclosures by geographic location .......................................................................................... 176

44. Additional note for English translation ....................................................................................... 177

APPENDIX I: SCOPE OF CONSOLIDATION 2019 .............................................................................. 178

APPENDIX I: SCOPE OF CONSOLIDATION 2020 .............................................................................. 184

APPENDIX II: CONSOLIDATED TAX GROUP OF SACYR, S.A . .......................................................... 191

IN 2019 .................................................................................................................................................... 191

APPENDIX II: CONSOLIDATED TAX GROUP OF SACYR, S.A . .......................................................... 192

IN 2020 .................................................................................................................................................... 192

APPENDIX III: ALTERNATIVE PERFORMANCE MEASURES ................................................................. 193

CONSOLIDATED MANAGEMENT REPORT ......................................................................................... 197

Sacyr Group

Sacyr, S.A. and Subsidiaries

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

ASSETS	NOTE	2020	2019
A) NON-CURRENT ASSETS	9.954.680	9.309.909
5	318.071	334.174
6	127.712	135.052
7	880.832	876.680
8	34.209	21.572
9	96.148	96.327
10	1.255.962	1.844.856
12	5.590.902	4.576.454
13	295.591	226.978
26	248.650	110.714
14.4	1.071.914	992.135
15	34.689	94.967
4.436.977	4.597.115
4	0	347.254
16	230.887	241.321
17	1.921.300	1.971.128
469.602	321.351
837.093	992.213
1.699	1.861
214.342	275.650
398.564	380.053
12	523.701	328.912
13	63.947	74.880
26	370.690	1.941
18	1.296.947	1.611.896
29.505	19.783
14.391.657	13.907.024

X XI.

I. Property, plant and equipment
II. Rights of use on leased assets
III. Concession projects
IV. Other intangible assets
V. Goodwill
VI. Investments accounted for using the equity method
VII. Receivables from concessions
VIII. Non-current financial assets
IX. Derivative financial instruments

Deferred tax assets Other non-current assets

B) CURRENT ASSETS

I. Non-current assets held for sale
II. Inventories
III. Trade and other receivables
- - Trade receivables for sales and services
- - Receivable from construction contracts
- - Personnel
- - Receivable from public entities
- - Other receivables
IV. Receivables from concessions
V. Current financial investments
VI. Derivative financial instruments
VII. Cash and cash equivalents
VIII. Other current assets

TOTAL ASSETS

Notes 1 to 44 and Appendices I, II and III form an integral part of this consolidated statement of financial position.

LIABILITIES

NOTE

2020

2019

A) EQUITY

962.593 1.190.371

EQUITY OF THE PARENT 557.307 825.199

I. Share capital
II. Share premium
III. Reserves
IV. Profit for the year attributable to the Parent
V. Treasury shares
VI. Financial assets at fair value through equity
VII. Hedging transactions

604.572 582.006

46.314 46.314

275.416 685.675

35.697 (297.733)

(54.320) (55.491)

(238)

1.983

(88.138) (80.459)
VIII. Translation differences (262.011) (57.161)IX.

Valuation adjustments

EQUITY OF NON-CONTROLLING INTERESTS

405.286

365.172

B) NON-CURRENT LIABILITIES 8.891.429 8.178.417

I. Deferred income
II. Non-current provisions
III. Bank borrowings
IV. Other secured financial debt
V. Non-current payables
VI. Non-current lease obligations
VII. Derivative financial instruments
VIII. Deferred tax liabilities

IX.

Non-current payables to associates

C)CURRENT LIABILITIES

I. Liabilities associated with non-current assets held for sale
II. Bank borrowings
III. Other secured financial debt
IV. Trade and other payables

- Suppliers 1.597.553 2.466.051

- Personnel
- Current tax liabilities
- Payable to public entities 163.658 170.361
- Other payables 495.738 309.594

V. Current payables to associates

VI. Current lease obligations
VII. Derivative financial instruments
VIII. Current provisions

TOTAL LIABILITIES

20 21.1

42.883 41.044 191.853 214.396

23 5.814.174 5.070.098

649.796 1.617.442

1.398.113 591.085

85.573 90.296

210.993 209.410

14.4

488.470 344.646

9.574

4.537.635 4.538.236

4 23 24 27

0 227.543

758.740 931.869

967.646

2.369.604 3.044.349
55.056 52.295 57.599 46.048
6 26 21.2
171.375 71.474 30.739 38.338 18.558 20.555 220.973 204.108
14.391.657
13.907.024
Notes 1 to 44 and Appendices I, II and III form an integral part of this consolidated statement of financial position.
0
0

Sacyr Group

Sacyr, S.A. and Subsidiaries

SEPARATE CONSOLIDATED INCOME STATEMENT FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

Separate consolidated income statement for the years ended on 31 December (Thousands of euros)

SEPARATE INCOME STATEMENT	NOTE	2020	2019
Revenue	29	4.547.878	4.169.467
Own work capitalised	676	8.668
Other operating income	301.635	354.039
Government grants released to the income statement	2.055	4.485
TOTAL OPERATING INCOME	4.852.244	4.536.659
Change in inventories	16	(4.753)	(11.475)
Supplies	30	(1.752.448)	(1.621.973)
Staff costs	41	(1.184.839)	(1.187.378)
Depreciation and amortisation expense	(177.975)	(186.297)
Impairment of consolidated goodwill	9	(177)	(67.829)
Change in operating provisions	(76.897)	19.614
Change in provisions for non-current assets	(1.430)	(4.264)
Other operating expenses	31	(1.186.599)	(1.036.075)
TOTAL OPERATING EXPENSES	(4.385.118)	(4.095.677)
OPERATING PROFIT/(LOSS)	467.126	440.982
PROFIT/(LOSS) OF ASSOCIATES	10	(337.358)	(259.841)
GAIN/(LOSS) ON ACQUISITION/DISPOSAL OF ASSETS	32	95.847	46.486
Revenue from other marketable securities and asset-backed loans	5.360	11.322
Other interest and similar income	22.213	41.815
Gain/(loss) on financial instruments	26.1	514.327	5.014
Exchange differences	0	5.798
TOTAL FINANCE INCOME	541.900	63.949
Finance costs and similar expenses	(302.461)	(369.057)
Change in provisions for financial investments	(38.479)	11.317
Gain/(loss) on financial instruments	(133.514)	(117.696)
Exchange differences	(56.813)	0
TOTAL FINANCE COSTS	(531.267)	(475.436)
FINANCIAL PROFIT/(LOSS)	33	10.633	(411.487)
CONSOLIDATED PROFIT BEFORE TAX	236.248	(183.860)
Corporate income tax	14.3	(125.361)	(89.327)
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS	110.887	(273.187)
PROFIT/(LOSS) FOR THE YEAR FROM DISCONTINUED OPERATIONS	4	0	0
CONSOLIDATED PROFIT FOR THE YEAR	110.887	(273.187)
NON-CONTROLLING INTERESTS	(75.190)	(24.546)
ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT	35.697	(297.733)
Basic earnings per share (euros)	34	0,06	(0,53)
Diluted earnings per share (euros)	34	0,07	(0,48)
Basic earnings per share for discontinued operations (euros)	0,00	0,00
Diluted earnings per share for discontinued operations (euros)	0,00	0,00
Basic earnings per share for continued operations (euros)	0,06	(0,53)
Diluted earnings per share for continued operations (euros)	0,07	(0,48)

Notes 1 to 44 and Appendices I, II and III form an integral part of this separate consolidated income statement.

Sacyr Group

Sacyr, S.A. and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

Consolidated statement of comprehensive income at 31 December (thousands of euros)

110.887	(273.187)
0	(1.484)
0	0
0	0
0	0
0	(1.484)
0	0
0	0
(231.339)	(42.624)
(14.419)	(40.255)
(82.213)	(61.437)
67.794	21.182
0	0
0	0
(85.244)	(27.748)
(85.244)	(27.748)
0	0
0	0
(135.230)	15.354
(21.243)	(18.270)
(113.987)	33.624
0	0
0	0
0	0
0	0
0	0
(50)	(41)
(50)	(41)
0	0
0	0
3.604	10.066
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (A+B+C)	(120.452)	(317.295)
a) Attributable to the Parent	(179.103)	(301.096)
b) Attributable to non-controlling interests	58.651	(16.199)

Notes 1 to 44 and Appendices I, II and III form an integral part of this consolidated statement of comprehensive income.

A) CONSOLIDATED PROFIT FOR THE YEAR
B) OTHER COMPREHENSIVE INCOME - ITEMS NOT RECLASSIFIED DURING THE PERIOD

TO BE RECLASSIFIED SUBSEQUENTLY TO THE INCOME STATEMENT

1. Revaluation/(reversal of the revaluation) of property, plant and equipment and intangible assets
2. Actuarial gains and losses
3. Participation in other comprehensive income from investments in joint ventures and associates
4. Equity instruments with changes in other comprehensive income
5. Other income and expenses not reclassified to profit/(loss)
6. Tax effect

C) OTHER COMPREHENSIVE INCOME - ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY TO THE INCOME STATEMENT

1. Hedging transactions
- a) Revaluation gains/(losses)
- b) Amounts transferred to the income statement
- c) Amounts transferred to initial carrying amount of hedged items
- d) Other reclassifications
2. Translation differences:
- a) Revaluation gains/(losses)
- b) Amounts transferred to the income statement
- c) Other reclassifications
3. Participation in other comprehensive income from investments in joint ventures and associates:
- a) Revaluation gains/(losses)
- b) Amounts transferred to the income statement
- c) Other reclassifications

4. Debt instruments at fair value with changes in other comprehensive income:
- a) Revaluation gains/(losses)
- b) Amounts transferred to the income statement
- c) Amounts transferred to initial carrying amount of hedged items
5. Other income and expenses that may be reclassified subsequently to the income statement:
- a) Revaluation gains/(losses)
- b) Amounts transferred to the income statement
- c) Other reclassifications
6. Tax effect:

Sacyr Group

Sacyr, S.A. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

Consolidated statement of cash flows at 31 December (thousands of euros)

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (INDIRECT METHOD)

A) CASH FLOWS FROM OPERATING ACTIVITIES (1+2+3+4+5+6)

1. Profit/(loss) before tax from continuing operations
2. Adjustment to profit/(loss) (for EBITDA)

(+) Depreciation and amortisation expense (+/-) Other adjustment to profit/(loss) (net)

NOTE

+/- Provisions and impairment losses 9,21

+/- Profit/(loss) of companies accounted for using the equity method 10

+/- Financial profit/(loss) 33

+/- Gains and losses on the sale of assets and other adjustments 32

EBITDA (1+2)

3. Adjustments for finance income from the concession account receivable and other adjustments 12

4. Changes in working capital 27

5. Other cash flows from operating activities

6. Income tax refunded (paid) 14

B) CASH FLOWS FROM INVESTING ACTIVITIES (1+2+3) 1. Payments on investments:

(-) Property, plant & equipment, intangible assets, concession projects and property investments (-) Financial assets and concession account receivable

(-) Other assets

2. Income from disposals

(+) Property, plant & equipment, intangible assets, concession projects and property investments (+) Financial assets and concession account receivable

(+) Other assets

3. Other cash flows from investing activities (+) Cash flows from dividends

(+) Cash flows from interest (+/-) Discontinued operations

C) CASH FLOWS FROM FINANCING ACTIVITIES (1+2+3+4)

1. Cash flows and (payments) on share-based instruments (+) Issue

(-) Cancellation

2. Cash flows and (payments) on financial liability instruments (+) Issue

(-) Redemption and amortisation

3. Payments for dividends and returns on other equity instruments
4. Other cash flows from finance activities

(-) Interest payments

(+/-) Other cash flows/(payments) from finance activities

D) EFFECT OF EXCHANGE RATE FLUCTUATIONS
E) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C+D)
F) CASH AND CASH EQUIVALENTS AT START OF PERIOD
G) CASH AND CASH EQUIVALENTS AT END OF PERIOD (E+F)

COMPONENTS OF CASH AND CASH EQUIVALENTS AT END OF YEAR (+) Cash on hand and at banks

(+) Other financial assets

TOTAL CASH AND CASH EQUIVALENTS AT END OF YEAR

2020 545.230

236.248 (183.860)

487.357 863.618

177.975 186.297

309.382 677.321

78.504 52.479

337.358 259.841

(10.633) 411.487

(95.847) 723.605

(510.373) (404.410)

367.244 233.951

0 5.697

(35.246) (5.164)

(963.777) (1.336.336)

5,6,7,8 12,13

(135.013) (1.201.323)

226.995 317.653

5,6,7,8 12,13

5.467 22.869

221.528 294.784

145.564 170.354

10 33

119.236 120.499

26.328 49.855

163.964 (36.672)

13.748 38.908

14.850 101.927

(1.102) 680.088 1.046.436

(366.348) (1.307.582)

(33.811)

(496.061) (392.766)

(455.910) (509.420)

(40.151)

1.611.896 1.990.365

1.296.947 1.611.896

1.186.547 1.443.068

110.400 1.296.947

Notes 1 to 44 and Appendices I, II and III form an integral part of this consolidated statement of cash flows.

2019 509.832

(46.486) 679.758

(851.242) (1.339.249)

(202.687) (1.136.562)

(63.019) 339.078 1.646.660

(21.892)

116.654

168.828 1.611.896

Sacyr Group

Sacyr, S.A. and Subsidiaries

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

Consolidated statement of changes in equity at 31 December (thousands of euros)

Thousands of euros Balance at 31 December 2018

Adjusted opening balance Total recognised income/(expense) Transactions with shareholders or owners

Capital increases/(reductions)

Transactions with treasury shares or own equity instruments (net)

Other changes in equity

Transfers between equity accounts

Other changes Balance at 31 December 2019

Thousands of euros Balance at 31 December 2019

Adjusted opening balance Total recognised income/(expense) Transactions with shareholders or owners

Capital increases/(reductions)

Distribution of dividends

Transactions with treasury shares or own equity instruments (net)

Other changes in equity

Transfers between equity accounts

Other changes Balance at 31 December 2020

Equity attributable to the Parent Shareholders' equity

553,555 553,555 0 28,451 28,451

Treasury shares and own equity instruments

17,162 17,162 0 0 0 0

598,546 598,546 0

(44,771)

(28,451)

(10,720)

(28,451)

(10,720)

0 0 0 582,006

29,152 29,152 0 46,314

115,580 121,112 (5,532) 685,675

0 0 0 (55,491)

Equity attributable to the Parent Shareholders' equity

Treasury shares and own equity instruments

Profit/(loss) for the year attributable to the Parent 150,264 150,264 (297,733)

0 0 0

0 0 0 0 0 0

(132,209) (132,209)

361,358 361,358

(3,363)

(16,199) (317,295)

0 0 0

0 (10,720)
0
0 (10,720)

(150,264)

0 (297,733)

(150,264)

0 0 0 0

0 0 0 (135,572)

20,013 0 20,013

365,172 1,190,371

582,006

22,566

582,0060

46,314 46,314

685,675 685,675

00 0 0 604,572

22,566

0 0 0 00 0 0 46,314

(25,997)

(384,262)

(297,733) (86,529) 275,416

(22,566)

(2,312)

(1,119)

(55,491)

(55,491)0

1,171 0 0 1,1710 0 0 (54,320)

(297,733)

(297,733)Profit/(loss) for the year attributable to the Parent

35,6970 0 0 0 297,733 297,733 0 35,697

0000 0 0 00 0 00

(135,572)

365,172 1,190,371
(135,572)
365,172 1,190,371
(214,800)
58,651 (120,452)

0 0 0 00 0 0 (350,372)

0 (2,260)

(18,537)

0 (18,537) 405,286

Notes 1 to 44 and Appendices I, II and III form an integral part of this consolidated statement of changes in equity.

1,503,905 1,503,905

14,481 0 14,481

0 0 0

0 (2,312)

(105,066)

0 (105,066) 962,593

Sacyr Group

Sacyr, S.A. and Subsidiaries

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2020

1. Sacyr's activity

The Sacyr Group (formerly known as the Sacyr Vallehermoso Group until it changed its name following the approval of the General Shareholders' Meeting on 27 June 2013) is formed by the Parent, Sacyr, S.A. and its subsidiaries and associates, which are detailed in Appendix I. Sacyr, S.A. (incorporated in Spain) arose from the merger by absorption of the Sacyr, S.A. Group (absorbed company) by Vallehermoso, S.A. (absorbing company) in 2003, as explained in the financial statements for the year then ending.

The registered office of the Parent is Calle Condesa de Venadito 7, Madrid. The Parent is registered in the Madrid Mercantile Register, volume 1884, folio 165, sheet M-33841, entry 677, and its tax identification number is A-28013811.

Its corporate purpose is as follows:

a. The acquisition and construction of urban property for rent or sale.
b. The purchase and sale of land, building rights and urban development lots, as well as their allocation, land transformation, development of urban infrastructure, division into lots, subdivision, compensation, etc., and, in some cases, subsequent construction of buildings, with involvement in the entire urban development process through to construction.
c. The administration, conservation, maintenance and, in general, all activities related to the provision of urban facilities and services and the associated land, infrastructure, civil engineering works and other urban facilities provided for by local planning stipulations, either on the Company's own behalf or for third parties, and the provision of architecture, engineering and urban development services relating to the urban lots or their ownership.

d. The provision and sale of all types of services and supplies relating to communications, IT and power distribution networks, as well as collaboration in the marketing and brokerage of insurance, security services and transport services, either on the Company's own behalf or for third parties.
e. The management and administration of shopping centres, senior citizen homes and centres, hotels and tourist and student accommodation.
f. The contracting, management and execution of all kinds of construction work in the broadest sense, both public and private, including roads, water supply projects, railways, port facilities, buildings, environmental projects and, in general, all activities related to construction.
g. The acquisition, administration, management, development, operation through rental or any other means, construction, purchase and sale of all types of properties, as well as the provision of advisory services in any of the above activities.
h. The development of all types of engineering and architectural projects, as well as the management, oversight and advisory services on the execution of all types of construction work.
i. The acquisition, holding, exploitation, administration and sale of all kinds of marketable securities on the Company's own behalf, except for those activities reserved by law, and specifically by the Spanish Securities Market Act, for other types of entities.

j. The management of public water supply, sewer systems and sewage works.
k. The management of all types of concessions, subsidies and administrative permits for projects, services and mixed ventures awarded to the Company by the central, regional, provincial and local governments, and investment in the capital of companies responsible for such concessions.
l. The operation of mines and quarries and the sale of the products extracted.
m. The manufacture, purchase, sale, import, export and distribution of equipment, and the installation of construction equipment and materials or other items for use in construction.
n. The acquisition, use in any form, sale, transfer and disposal of all types of intellectual property and patents, and other kinds of industrial property.
o. The manufacture and sale of prefabricated and other products related to construction.
p. The provision of support services to Spanish and foreign subsidiaries and investees.
q. The exploitation, import, export, transport, distribution sale and commercialisation of raw materials of any type, whether vegetable or mineral.

The Company may also carry out any of the activities comprised in its corporate purpose indirectly through equity investments in other entities or companies with similar or identical corporate purposes.

Appendix I provides a list of the subsidiaries that compose the Sacyr Group, their activities and registered addresses, and the percentage of ownership held by the Group.

2. Scope of consolidation and subsidiaries

For the purposes of preparing the consolidated financial statements, the companies that compose the Group are classified as follows:

a) Subsidiaries: legally independent companies that form a single economic unit with a unified management strategy and over which the Group exercises effective direct or indirect control.
b) Joint ventures: a joint arrangement in which the parties which have joint control over this arrangement hold rights over its net assets.
c) Jointly controlled operation: arrangement in which the parties which have joint control over this arrangement hold rights over its net assets and have obligations with respect to its liabilities.
d) Associates: companies over which one or more Group companies have significant management influence.

a) Consolidated companies.

Subsidiaries have been fully consolidated, such that all the assets, rights and liabilities of the subsidiaries are included in the consolidated statement of financial position of Sacyr, S.A. andall the income and expenses used to determine the subsidiaries' profit or loss are included in the separate consolidated income statement.

Associates have been accounted for using the equity method. Under this method, an investment in an associate is initially recognised at cost and its carrying amount is then increased or decreased to reflect the Group's share in the profit or loss of the associate for the year, since the acquisition date. In the event of changes recognised directly in the associate's equity, the Group recognises its share of these changes directly in its own equity.

Jointly controlled operations included in the scope of consolidation were proportionately consolidated if they have two or more venturers related by a contractual agreement that establishes joint control. The Group reports its share of the assets, liabilities, income and expenses of the joint venture, line by line, in its consolidated financial statements.

Joint ventures have been accounted for using the equity method.

A1) 2019

Companies included within the scope of consolidation are listed in Appendix I, along with details of the ownership interest held, the consolidation method used, their classification group, the activity carried on, their registered office and other information.

Auditors' reports for the following companies, audited by an auditor other than the main auditor, were unavailable at the date on which these consolidated financial statements for 2019 were prepared: Sacyr Infraestructure USA, LLC, Sacyr Concessions Limited, N6 Operations Ltd, N6 Concession Holding Ltd, N6 Concession Ltd, GSJ Maintenance Ltd, Grupo Vía Central, S.A., Sacyr Construcción Saudí Company LTD, Sacyr Canadá, INC, Constructora ACS-Sacyr, S.A., Sacyr Costa Rica, S.A., Constructora San José - Caldera, S.A., B.F. Constructions Limited, N6 Construction Ltd, M50 (D&C) Ltd, SIS, S.C.P.A, Superestrada Pedemontana Veneta, S.R.L., Nodo di Palermo, S.C.P.A., Consorcio GDL Viaducto, S.A. de C.V., Consorcio Túnel Guadalajara, S.A. de C.V., Metrofangs, S.L., Valdemingómez 2000, S.A., Suardiaz Servicios Marítimos de Barcelona, S.L., Parque Eólico La Sotonera, S.L., Consorcio Stabile VIS Societá, C.P.A., Sacyr Operación y Servicios Perú, S.A.C., Consorcio Isotron Sacyr, S.A., Sacyr Industrial USA, LLC and Sacyr Industrial Mant. Eléctricos Panamá, S.A.

The companies Sacyr Activos II, S.A., Castellana Norte, S.A., Biothys, S.L., S.A., Agroconcer, S.A., Servicio de Estacionamiento Regulado, S.L., Tecnologías Medioambientales Asturianas, S.L., Sílices Turolenses, S.A. and EPC Tracker Developments, S.L. were excluded from the scope of consolidation since, as a whole, the effect of their inclusion in the consolidated Group was insignificant.

The items in the consolidated statement of financial position and the separate consolidated income statement of the most significant foreign companies included in the scope of consolidation have been translated into euros at the following exchange rates:

2019

Exchange rate	Method	Year-end
US dollar/euro	1.1194	1.1213
Australian dollar/euro	1.6102	1.5971
Chilean peso/euro	787.14	844.85
Libyan dinar/euro	1.5656	1.5699
Mexican peso/euro	21.5456	21.2290
Brazilian real/euro
New Mozambique metical/euro
Angolan kwanza/euro	406.8253	537.1589
Algerian dinar/euro	133.6700	133.6415
Peruvian nuevo sol/euro	3.7351	3.7179
Colombian peso/euro	3,673.48	3,685.00
Bolivian peso/euro	7.7358	7.747
Indian rupee/euro	78.8497	80.0858
Qatari rial/euro	4.0947	4.1023
Pound sterling/euro	0.8772	0.8459
Omani rial/euro	0.4310	0.4317
Uruguayan peso/euro	39.4418	41.6423
Saudi riyal/euro	4.1990	4.2065
Paraguayan guaraní/euro	6,982.9790	7,249.5316
Canadian dollar/euro	1.4852	1.4567
Dominican peso/euro	57.4269	59.4439
Kuwaiti dinar/euro	0.3402	0.3398

4.4160	4.5123
69.9281	69.1155

A2) 2020

Auditors' reports for the following companies, audited by an auditor other than the main auditor, were not available at the date on which these consolidated financial statements for 2020 were prepared: Grupo Unidos por el Canal, S.A., S.C. Ruta del Limarí, S.A., S.C. Vespucio Oriente, S.A., Operadora Avo, S.A., Sacyr Infraestructure USA, LLC, Sacyr Plenary Utility Partners Idaho, LLC, Sacyr Concessions Limited, N6 Operations Ltd, N6 Concession Holding Ltd, N6 Concession Ltd, GSJ Maintenance Ltd, Sacyr Infraestructure UK, Ltd, Grupo Vía Central, S.A., Pilemburg, S.A., Sacyr Construcción Saudí Company LTD, Sacyr Canadá, INC, Constructora ACS-Sacyr, S.A., Constructora San José - Caldera, S.A., Sacyr Construction Gibraltar Limited, N6 Construction Ltd, M50 (D&C) Ltd, SIS, S.C.P.A, Superestrada Pedemontana Veneta, S.P.A., Nodo di Palermo, S.C.P.A., Eurolink, S.C.P.A., Consorcio GDL Viaducto, S.A. de C.V., Consorcio TúnelGuadalajara, S.A. de C.V., Bani Hajer JV (CGC Sacyr JV), Al Kheesa JV (CGC Sacyr JV), Sacyr UK Limited, Valdemingómez 2000, S.A., Suardiaz Servicios Marítimos de Barcelona, S.L., Parque Eólico La Sotonera, S.L., Consorcio Stabile VIS Societá, C.P.A., Sacyr Operación y Servicios Perú, S.A.C., Consorcio Isotron Sacyr, S.A., Sacyr Industrial Colombia, S.A.S. and Sacyr Industrial Mant. Eléctricos Panamá, S.A.

2020

Exchange rate	Method	Year-end
US dollar/euro	1.1419	1.2216
Australian dollar/euro	1.6551	1.5876
Chilean peso/euro	902.79	873.30
Libyan dinar/euro	1.5832	1.6380
Mexican peso/euro	24.5105	24.3083
Brazilian real/euro	5.8976	6.3446
New Mozambique metical/euro	79.4547	91.4903
Angolan kwanza/euro	662.2611	795.1687
Algerian dinar/euro	144.9838	162.2701
Peruvian nuevo sol/euro	3.9929	4.4221
Colombian peso/euro	4,217.04	4,187.00
Bolivian peso/euro	7.8831	8.411
Indian rupee/euro	84.6535	89.7598
Qatari rial/euro	4.1824	4.5075
Pound sterling/euro	0.8894	0.8937
Omani rial/euro	0.4394	0.4703
Uruguayan peso/euro	47.9710	51.5914
Saudi riyal/euro	4.1869	4.4867
Paraguayan guaraní/euro
Canadian dollar/euro
Dominican peso/euro
Kuwaiti dinar/euro

7,741.46248,442.9805

1.52981.5545
64.670671.1056
0.35020.3715

b) Changes in the scope of consolidation

The Group files all relevant notices when its interest in any of its direct or indirect subsidiaries exceeds 10% and on any subsequent acquisitions of more than 5%.

B1) 2019

b.1. Business combinations and other acquisitions or increases in interests in subsidiaries, joint ventures, jointly controlled operations and/or associates

- On 25 January 2019, Sacyr Construcción México, S.A. de C.V., incorporated Sacyr Servicios Técnicos, S.A. de C.V., whose corporate purpose is the supply of personnel to third parties and the provision of technical services. It holds a 100% ownership interest and an investment of 4,617 euros.
- On 7 March 2019, Sacyr Conservación, S.A., increased its ownership interest by 8% in Concesionaria AP-1 Araba, S.A., whose corporate purpose is the conservation and operation of the A-P1 Vitoria-Gasteiz-Eibar motorway, and an investment of 99,000 euros, giving it an ownership interest of 33%.
- On 28 March 2019, Sacyr Concesiones, S.L. acquired 15% of the concession company Autopista del Guadalmedina Concesionaria Española S.A., subsequently acquiring a further 15% on 6 June. The company's corporate purpose is to operate the Málaga - Las Pedrizas motorway, with a final ownership interest is 100% and an investment of 122,734,744 euros.
- On 31 March 2019, Sacyr Industrial, S.L.U. increased its ownership interest in Consorcio Sacyrmondisa, S.A. de C.V. by 1,175,099.98 euros, increasing its ownership interest to 99.36%.
- On 31 March 2019, Sacyr Industrial, S.L.U. increased its ownership interest in Ekamai, S.A. de C.V. by 872,956.84 euros, increasing its ownership interest to 87.75%.
- On 23 April 2019, Sacyr Concesiones, S.L. formed Grupo Vía Central, S.A., the corporate purpose of which is the construction and maintenance of the Puerto de Montevideo - Paso de los Toros stretch of railway in Uruguay. It holds an ownership interest of 40% and an investment of 9,727,382 euros.
- On 26 April 2019, Sacyr Concesiones Chile, S.A. and Sacyr Chile, S.A. formed Sociedad Concesionaria Aeropuerto de Arica, S.A., whose corporate purpose is the upkeep and operation of the public works at Challacuta de Arica Airport in Chile, holding an ownership interest of 62% and 1%, respectively, and an investment of 10,856,271 euros and 175,101 euros, respectively.
- On 2 May 2019, Sacyr Concesiones, S.L. formed Concesiones Chile Newco, S.p.A., the corporate purpose of which is the acquisition, subscription, holding, administration and disposal of securities and shares. It holds a 100% interest and an investment of 48,871,476 euros.

Subsequently, 49% of the Sociedad Concesionaria Viales Andinas, S.A. group and 19% of

Salud Siglo XXI, S.A., which were owned by Sacyr Concesiones Chile, S.A., were transferred to this newly formed company.

- On 27 May 2019, Sacyr Facilities México, S.A. de C.V. and Sacyr Operaciones y Servicios México, S.A. de C.V., formed Sacyr Facilities Servicios Personal, S.A. de C.V. (formerly Sacyr Administración de Infraestructuras, S.A. de C.V.), the corporate purpose of which is the supply of personnel to third parties and the provision of human resources services; they hold 99.998% and 0.002% ownership interests, respectively, and an investment of 2,395 and 4.79 euros, respectively.
- On 30 June 2019, Sacyr Agua, S.L. formed Sohar Operation Services LLC, the corporate purpose of which is the purification and treatment of water. It holds a 51% ownership interest and an investment of 196,650 euros.
- On 1 July 2019, Sacyr Construcción México, S.A. de C.V., formed Sacyr Urbanización y Edificación, S.A. de C.V., the corporate purpose of which is to build and operate all manner of public and private civil and industrial works. It holds a 100% ownership interest and an investment of 4,633 euros.
- On 17 July 2019, Sacyr Construction, S.A., formed Sacyr Construction Kuwait for Construction and Repair Bridges and Tunnels, S.P.C., the corporate purpose of which is the contracting and execution of all manner of private and public works. It holds a 100% ownership interest and an investment of 297,176.82 euros.
- On 12 August 2019, Cavosa Obras y Proyectos, S.A., formed the Brazilian company Cavosa Obra y Projetos EIRELI, the corporate purpose of which is the construction and execution of engineering projects. It holds a 100% ownership interest and an investment of 30,000 euros.
- On 28 August 2019, Sacyr Industrial, S.L.U. formed Asta Renovables, S.L., the corporate purpose of which is the development, construction and operation of photovoltaic and wind-powered facilities. It holds a 70% ownership interest and an investment of 3,000 euros.
- On 28 August 2019, Sacyr Industrial, S.L.U. formed Faucena, S.L., the corporate purpose of which is the development, construction and operation of photovoltaic and wind-powered facilities. It holds a 70% ownership interest and an investment of 3,000 euros.
- On 28 August 2019, Sacyr Industrial, S.L.U. formed Hoya del Espino, S.L., the corporate purpose of which is the development, construction and operation of photovoltaic and wind-powered facilities. It holds a 70% ownership interest and investment of 3,000 euros.
- On 1 October 2019, Sacyr Chile Servicios Corporativos, S.p.A. was included in the scope of consolidation, the purpose of which is to provide corporate back-office services; Sacyr Chile, S.A. holds an ownership interest of 100% and an investment of 125,849 euros.
- On 10 October 2019, Sacyr Concesiones, S.L. acquired 11% of the concession company Autovía del Turia, Concesionaria de la Generalitat Valenciana S.A., the corporate purpose of which is the concession of the CV-35 dual carriageway together with the CV-50 northern bypass; the final ownership interest is 100%, with an investment of 550,000 euros.
- On 1 November 2019, Sacyr Concesiones Participadas II, S.L.U. was included in the scope of consolidation. Its corporate purpose is the construction and operation of motorways, roads and tunnels. Sacyr Concesiones, S.L. holds an ownership interest of 100% and an investment of 152,000 euros.
- On 1 November 2019, Sacyr Concesiones Participadas III, S.L.U. was included in the scope of consolidation. Its corporate purpose is the construction and operation of

motorways, roads and tunnels. Sacyr Concesiones, S.L. holds an ownership interest of 100% and an investment of 142,000 euros.

- On 1 November 2019, Sacyr Concesiones Participadas IV, S.L.U. was included in the scope of consolidation. Its corporate purpose is the construction and operation of motorways, roads and tunnels. Sacyr Concesiones, S.L. holds an ownership interest of 100% and an investment of 142,000 euros.
- On 1 November 2019, Sacyr Concesiones Participadas V, S.L.U. was included in the scope of consolidation. Its corporate purpose is the construction and operation of motorways, roads and tunnels. Sacyr Concesiones, S.L. holds an ownership interest of 100% and an investment of 142,000 euros.
- On 22 November 2019, Sacyr Industrial, S.L.U. formed Saresun Rufa, S.L., the corporate purpose of which is the development, construction and operation of photovoltaic and wind-powered facilities. It holds a 100% ownership interest and an investment of 3,000 euros.
- On 22 November 2019, Sacyr Industrial, S.L.U. formed Saresun Trespuntas, S.L., the corporate purpose of which is the development, construction and operation of photovoltaic and wind-powered facilities. It holds a 100% ownership interest and an investment of 3,000 euros.
- On 22 November 2019, Sacyr Industrial, S.L.U. formed Saresun Buenavista, S.L., the corporate purpose of which is the development, construction and operation of photovoltaic and wind-powered facilities. It holds a 100% ownership interest and an investment of 3,000 euros.
- On 22 November 2019, Sacyr Industrial, S.L.U. formed Saresun Gorrión, S.L., the corporate purpose of which is the development, construction and operation of photovoltaic and wind-powered facilities. It holds a 100% ownership interest and an investment of 3,000 euros.
- On 22 November 2019, Sacyr Industrial, S.L.U. formed Saresun Rosales, S.L., the corporate purpose of which is the development, construction and operation of photovoltaic and wind-powered facilities. It holds a 100% ownership interest and investment of 3,000 euros.
- On 1 December 2019, Circuitus Real Asset I, SCSp was included in the scope of consolidation. Its corporate purpose is the acquisition, subscription, holding, administration and disposal of securities and shares; Sacyr Activos I, S.A., holds an ownership interest of 49% and an investment of 26,104,359 euros.
- On 5 December 2019, Sacyr Concesiones Chile, S.A. and Sacyr Chile, S.A. formed Sociedad Concesionaria Ruta del Elqui, S.A., whose corporate purpose is the upkeep and operation of the public works of Ruta Cinco Tramos los Vilos-La Serena, holding an ownership interest of 99% and 1%, respectively, and an investment of 74,995,561 euros and 74,995 euros, respectively.
- On 9 December 2019, Sacyr Concesiones Chile, S.A. and Sacyr Chile, S.A. formed Sociedad Concesionaria Ruta de la Fruta, S.A., whose corporate purpose is the upkeep and operation of the public works concession "Concesión Ruta 66 Camino de la Fruta"; they hold an ownership interest of 99% and 1%, respectively, and an investment of 41,013,197 and 410,131 euros, respectively.
- On 27 December 2019, Sacyr Concesiones, S.L. formed Sacyr Concesiones Renovables, S.L., the corporate purpose of which is the construction, operation and

maintenance of facilities for the production of renewable energy. It holds a 100% ownership interest and an investment of 3,000 euros.

- On 31 December 2019, Sacyr Industrial, S.L.U. increased its ownership interest in Sacyr Industrial México, S.A. de C.V. by 423,809.14 euros to 90.68%.

b.2. Decrease in interests in subsidiaries, joint ventures, jointly controlled operations and/or associates, and other similar transactions

- On 28 February 2019, Sacyr Concesiones, S.L. sold Itinere Infraestructuras, S.A., in which it held an ownership interest of 17.56%.
- On 13 March 2019, Valoriza Minería, S.L. reduced its shareholding in Tecnologías Extremeñas del Litio, S.L. by 25%; the final ownership interest held is 25%.
- On 21 March 2019, Sacyr Industrial, S.L.U., dissolved Geolit Climatización, S.L., in which it had held an ownership interest of 64.7%.
- On 5 April 2019, Sacyr Concesiones, S.L. sold the company formed in that year, Concesiones Chile Newco, S.p.A., and indirectly sold 49% of the Sociedad Concesionaria Viales Andinas, S.A. group and 19% of Sociedad Concesionaria Salud Siglo XXI, S.A., which were owned by Sacyr Concesiones Chile, S.A.
- On 30 June 2019, the following concession operators were removed from the scope of consolidation since they were in the process of being liquidated: Inversora Autopista del Levante, S.L., Alazor Inversiones, S.A. and Accesos de Madrid, S.A., in which the ownership interest had been 40%, 35% and 25.16%, respectively.
- On 18 July 2019, as a result of having opted to receive the cash dividend, Sacyr group's interest in Repsol, S.A. was reduced by 0.196%, the total ownership interest being 7.6748%. Subsequently, on 30 October 2019, as a result of the share repurchase plan carried out by Repsol, S.A., the Group increased its ownership interest by 0.3589% and the total ownership interest was 8.0336%. On 9 January 2020, it repeated the same operation as in July and once again opted to receive the cash dividend. This reduced the Sacyr Group's ownership interest by 0.1983%, with the final ownership interest in Repsol, S.A. being 7.8353%.
- On 28 September 2019, India Infra Projects Private Limited was dissolved, in which the Group had held an ownership interest of 100%.
- On 5 November 2019, Sacyr Industrial, S.L.U., sold the following companies: Sacyr Industrial Renovables, S.L., in which it had held an ownership interest of 100%; Compañía Energética de Linares, S.L., in which it had held an ownership interest of 100%; Compañía Orujera de Linares, S.L., in which it had held an ownership interest of 100%; Bioeléctrica de Linares, S.L., in which it had held an ownership interest of 100%; Puente Genil, S.L, in which it had held an ownership interest of 78.08%; Compañía Energética La Roda, S.L., in which it had held an ownership interest of 100%; Compañía Energética Puente del Obispo, S.L., in which it had held an ownership interest of 100%; Compañía Energética Pata de Mulo, S.L., in which it had held an ownership interest of 78.08%; Compañía Energética Las Villas, S.L., in which it had held an ownership interest of 90%; and Secaderos de la Biomasa, S.L., in which it had held an ownership interest of 78.28%.

- On 12 November 2019, Sacyr Servicios, S.A. sold Somague Ambiente, S.A., in which it had held an ownership interest of 100%.

b.3. Other changes in the composition of the Group.

There were no other changes in 2019.

B2) 2020

b.1. Business combinations and other acquisitions or increases in interests in subsidiaries, joint ventures, jointly controlled operations and/or associates

- On 9 January 2020, Sacyr Concesiones Chile, S.A. formed Infra Tec Global España,

S.L., the corporate purpose of which is the design, development and production of systems that make use of information technology and the provision of technology consultancy services, with a 100% interest and an investment of 471,481 euros.

-On 30 January 2020, Sacyr Facilities México, S.A. de C.V. formed Operadora de Hospitales de Tlahuac Servicios Técnicos, S.A. de C.V., whose corporate purpose is the supply of personnel to third parties and the provision of professional technical services. It holds a 60% ownership interest and an investment of 1,132 euros.

On 6 February 2020, Sacyr Concesiones, S.L.U. formed Financiera Montes de Maria, S.L., the corporate purpose of which is the provision of services related to financial and administrative activities. It holds an ownership interest of 100% and an investment of 3,000 euros.

- On 13 February 2020, Valoriza Chile S.p.A formed Sacyr Agua Chile Servicios Sanitarios, S.p.A., the corporate purpose of which is the construction, operation and maintenance of waste and water treatment plants and facilities, the provision of sanitation and cleaning services, and studies for all kinds of works. It holds an ownership interest of 100% and an investment of 815,011 euros. Valoriza Chile S.p.A. subsequently sold all of this company to Operaciones SK en Chile, S.L.
- On 1 March 2020, the company Medgulf Construction Company, W.W.L. was included in the scope of consolidation. Its corporate purpose is the construction of all types of road infrastructure in the south of Qatar. Sacyr Construcción, S.A. holds a 60% interest and an investment of 1 euro.
- On 1 March 2020, Circulo Tecnológico, S.L. joined the scope of consolidation. Its corporate purpose is the manufacture and marketing of products and services for industry and construction, and the provision of environmental services. Valoriza Servicios Medioambientales, S.A. holds a 51% interest and an investment of 1,530 euros.
- On 4 March 2020, Sacyr Operación y Servicios México, S.A. formed Autovía Operación Servicios Técnicos, S.A. de C.V., whose corporate purpose is the supply of personnel to third parties and the provision of technical services. It holds a 60% ownership interest and an investment of 1,234 euros.

- On 1 April 2020, Pilemburg, S.A. was included in the scope of consolidation. Its corporate purpose is all forms of industrialisation and marketing, and the leasing of goods, works and services. Sacyr Concesiones, S.L. holds an ownership interest of 40% and an investment of 646 euros.
- On 1 April 2020, Caraminer, S.A. was included in the scope of consolidation. Its corporate purpose is all forms of industrialisation and marketing, and the leasing of goods, works and services. Sacyr Concesiones, S.L. holds an ownership interest of 40% and an investment of 646 euros. Subsequently, on the company was transferred to Sacyr Construcción on 1 July
- On 7 May 2020, Sacyr Concesiones Participadas I, S.L. formed Autopista de Peaje Colombianas 1, S.A., the corporate purpose of which is the provision of services related to financial and administrative activities. It holds an ownership interest of 100% and an investment of 60,000 euros.
- On 26 May 2020, Sacyr Agua, S.L. formed Operaciones SK en Chile, S.L., the corporate purpose of which is the construction, operation and maintenance of waste and water treatment plants and facilities, and the provision of sanitation and cleaning services. It holds an ownership interest of 51% and an investment of 414,775 euros.
- On 23 June 2020, Sacyr Industrial, S.L.U. increased its holding in Sacyr Flúor, S.A.U. by 50%. The corporate purpose of Sacyr Fluor, S.A.U. is the provision of services in the petrochemical industry, the total investment was 49,048,999 with a holding of 100%.
- On 29 July 2020, Sacyr Agua Chile Servicios Sanitarios, S.p.A. bought 100% of the Chilean group Sembcorp Utilities, S.A. The corporate purpose of this group is the construction, operation and maintenance of waste and water treatment plants and facilities, and the provision of sanitation and cleaning service. This group owns 100% of the following companies: Sacyr Agua Utilities, S.L., with investment of 795,349 euros; Sacyr Agua Norte, S.L., with investment of 108,698 euros; Sacyr Agua Santiago, S.L., with investment of 4,666,111 euros; Sacyr Agua Chacabuco, S.L., with investment of 10,230,621 euros; Sacyr Agua Lampa, S.L., with investment of 1,832,145 euros; Sercon, S.L., with investment of 6,913,504 euros; and Libardon, S.L., with investment of 3,239,274 euros.
- On 1 October 2020, Sacyr Operación y Servicios Paraguay, S.A. formed Sabal, S.A., whose corporate purpose is commercial, industrial, agricultural and export operations. It has a 60% ownership interest and investment of 370,674 euros.
- On 23 October 2020, Sacyr Plenary Idaho Holdings LLC formed Sacyr Plenary Utility Partners LLC, whose corporate purpose is the maintenance and improvement of energy management at the University of Idaho. It holds a 100% interest and an investment of 20,900,888 euros.
- On 26 October 2020, Sacyr Infraestructure USA, LLC formed Sacyr Plenary Idaho Holdings LLC, whose corporate purpose is the holding of shares in other companies. It holds a 50% interest and an investment of 10,450,444 euros.
- On 27 November 2020, Consorcio Stabile SIS Societá Consortile Per Azioni formed Salerno Pompei Napoli, S.p.A., the corporate purpose of which is the construction, management and maintenance of the A3 Naples-Pompei-Salerno motorway. It holds an ownership interest of 100% and an investment of 200,000 euros.
- On 30 November 2020, Sacyr Concesiones Renovables, S.L. formed Sacoren Bargas, S.L. the corporate purpose of which is the management, construction, operation and

maintenance of facilities for the production of renewable energy. It holds a 100% ownership interest and an investment of 3,000 euros.

- On 30 November 2020, Sacyr Concesiones Renovables, S.L. formed Sacoren Cerroquemado, S.L. the corporate purpose of which is the management, construction, operation and maintenance of facilities for the production of renewable energy. It holds a 100% ownership interest and an investment of 3,000 euros.
- On 30 November 2020, Sacyr Concesiones Renovables, S.L. formed Sacoren Encinar, S.L. the corporate purpose of which is the management, construction, operation and maintenance of facilities for the production of renewable energy. It holds a 100% ownership interest and an investment of 3,000 euros.
- On 30 November 2020, Sacyr Concesiones Renovables, S.L. formed Sacoren La Plana, S.L. the corporate purpose of which is the management, construction, operation and maintenance of facilities for the production of renewable energy. It holds a 100% ownership interest and an investment of 3,000 euros.

- On 30 November 2020, Sacyr Concesiones Renovables, S.L. formed Sacoren Leciñena, S.L. the corporate purpose of which is the management, construction, operation and maintenance of facilities for the production of renewable energy. It holds a 100% ownership interest and an investment of 3,000 euros.
- On 30 November 2020, Sacyr Concesiones Renovables, S.L. formed Sacoren Montesa, S.L. the corporate purpose of which is the management, construction, operation and maintenance of facilities for the production of renewable energy. It holds a 100% ownership interest and an investment of 3,000 euros.
- On 30 November 2020, Sacyr Concesiones Renovables, S.L. formed Sacoren Olivar, S.L. the corporate purpose of which is the management, construction, operation and maintenance of facilities for the production of renewable energy. It holds a 100% ownership interest and an investment of 3,000 euros.
- On 30 November 2020, Sacyr Concesiones Renovables, S.L. formed Sacoren Pinilla, S.L. the corporate purpose of which is the management, construction, operation and maintenance of facilities for the production of renewable energy. It holds a 100% ownership interest and an investment of 3,000 euros.
- On 30 November 2020, Sacyr Concesiones Renovables, S.L. formed Sacoren Portichuelos, S.L. the corporate purpose of which is the management, construction, operation and maintenance of facilities for the production of renewable energy. It holds a 100% ownership interest and an investment of 3,000 euros.
- On 30 November 2020, Sacyr Concesiones Renovables, S.L. formed Sacoren Torrellano, S.L. the corporate purpose of which is the management, construction, operation and maintenance of facilities for the production of renewable energy. It holds a 100% ownership interest and an investment of 3,000 euros.
- On 18 December 2020, Sacyr Agua, S.L. bought Valorinima, S.L., whose corporate purpose is the management and performance of R&D projects and viability studies. It has a 20% holding and investment of 862,000 euros. This company, in turn, has a 74% stake and investment of 3,700,000 euros in Sociedad Economía Mixta de Aguas de Soria, S.L., whose corporate purpose is the management of public water supply, sewer systems and sewage works for households.

b.2. Decrease in interests in subsidiaries, joint ventures, jointly controlled operations and/or associates, and other similar transactions

- On 11 February 2020, Sacyr Concesiones, S.L. sold 47.5% of the concession company Autopista del Guadalmedina Concesionaria Española S.A., of which it owned 100%. On 18 June, Sacyr Concesiones, S.L. sold a further 47.5% of this company. It now has a 5% holding.
- On 8 July 2020, as a result of having opted to receive the cash dividend, Sacyr group's interest in Repsol, S.A. was reduced by 0.291%, the total ownership interest being 7.5446%. Subsequently, on 8 October 2020, as a result of the share repurchase plan carried out by Repsol, S.A., the Group's ownership interest increased by 0.48% and the total ownership interest was 8.0336%. On 12 January 2021, it repeated the same operation as in July and once again opted to receive the cash dividend. This reduced the Sacyr Group's ownership interest by 0.20%, with the final ownership interest in Repsol, S.A. being 7.8261%.
- On 22 July, the company Sacyr-Necso, S.L. was sold, in which the Group had a 50% interest.
- On 18 November 2020, Sacyr Maintenance Ireland Limited (previously Valoriza Infraestructuras Ireland Limited) was dissolved, in which the Group had an ownership interest of 100%.

b.3. Other changes in the composition of the Group.

There were no other changes in 2020.

3. Basis of presentation and consolidation

a) Basis of presentation

The parent company's directors have prepared these consolidated financial statements in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union.

a.1) Standards and interpretations adopted by the European Union applicable in 2020

The accounting policies used to prepare these consolidated financial statements are the same as those applied in the consolidated financial statements for the year ended 31 December 2019, as none of the amendments to the standards, interpretations or modifications that are applicable for the first time in this financial year have had any impact on the Group's accounting policies.

(a.2) Standards and interpretations adopted by the European Union but whose application is not mandatory for this year.

The Group intends to adopt the standards, interpretations and amendments to the standards issued by the IASB, which are not obligatory in the European Union at the date of preparation of these consolidated financial statements, when they enter into force, if they are applicable. Although the Group is currently analysing their impact based on the analyses to date, the Group considers that first-time application of these standards and interpretations will not have a material effect on its consolidated financial statements.

The 2020 individual financial statements of each Group company will be presented for approval at their respective General Shareholders' Meetings within the periods established by prevailing legislation. The Sacyr Group's consolidated financial statements for 2020 were prepared by the Parent's Board of Directors on 25 February 2021. They are expected to be approved at the Parent's General Shareholders' Meetings without any modifications.

Unless stated otherwise, the figures in these consolidated financial statements are shown in thousands of euros, rounded to the nearest thousand.

b) Comparative information

For comparison purposes, these consolidated financial statements include figures at the previous year's reporting date in the statement of financial position, in the separate consolidated income statement, in the consolidated statement of comprehensive income, in the consolidated statement of changes in equity and in the consolidated statement of cash flows. Notes to items in the separate consolidated income statement and consolidated statement of financial position show comparative information for the previous year's close.

The Group undertook a corporate restructuring in 2020, with its industrial business becoming part of the construction business. To reflect this and facilitate comparisons, the figures and explanations for 2019 in which the industrial business featured as an independent business have been re-expressed to present them in the construction business. For presentation purposes, the Group has also decided to include figures for the water area, which belongs to the services business, in the concessions business.

c) Effects of the COVID-19 pandemic on the Group's activity

On 11 March 2020, the World Health Organisation raised the public health emergency corresponding to the outbreak of coronavirus (COVID-19) to the status of an international pandemic. Events at the national and international level have unfolded into an unprecedented health crisis, impacting the macroeconomic environment and the performance of businesses. A series of measures was introduced in 2020 to address the economic and social impact of this situation. Among other things, these placed restrictions on the mobility of people. The Government of Spain declared a state of alarm, through Royal Decree 463/2020, of 14 March, which ended on 1 July 2020, and approved a series of extraordinary urgent measures to overcome the economic and social impact of COVID-19, including Royal Decree-Law 8/2020, of 17 March. At the time of drawing up these financial statements, the state of alarm declared by the Spanish government through Royal Decree 926/2020, of 25 October, remains in force. This was initially approved until 9 November 2020, but then extended to 9 May 2021, through Royal Decree 956/2020 of 3 November.

The pandemic is having effects on the economy in general and its impact over the coming months is currently uncertain, and will depend largely on the spread and development of the pandemic and the pace of vaccination of the population.

There have been no significant effects on the Group's activities at the date of drawing up these consolidated financial statements. The directors of the Parent company, with all due caution, do not expect any material effects in the current financial year, 2021.

d) Accounting policies

The accompanying consolidated financial statements were prepared in accordance with IFRS and comprise the consolidated statement of financial position, separate consolidated income statement, consolidated statement of comprehensive income, consolidated statement of cash flows, consolidated statement of changes in equity, and the accompanying notes, which form an integral part of the consolidated financial statements. These consolidated financial statements have been prepared on a historical cost basis, except for financial assets at fair value through other comprehensive income, financial assets at fair value through profit and loss and derivative financial instruments, which have been measured at fair value.

The accounting policies were applied uniformly to all Group companies.

The most significant accounting policies applied by the Sacyr Group in preparing the consolidated financial statements under IFRS are as follows:

d.1) Use of judgements and estimates

In preparing the consolidated financial statements the Group's directors have used estimates to measure certain items. These estimates are based on past experience and various other factors believed to be reasonable under the circumstances. The Group has considered the potential impact of the COVID-19 pandemic in its estimates and judgements. However, as mentioned in note 3 c), the pandemic did not have a serious impact on the Group's activity in 2020, and it is not expected to have any significant impact in 2021 or subsequent years. These estimates refer to:

 The assessment of potential impairment losses on certain assets (see Notes 5, 6, 7, 8, 9 and 10).

 The useful life of property, plant and equipment and intangible assets (see Notes 5, 6,
7, 8 and 9).
 The recoverability of deferred tax assets (see Note 14).
 Estimates for the consumption of concession assets (see Note 7).
 Provisions against liabilities (see Note 21).

The Group continuously revises its estimates. However, given the inherent uncertainty of such estimates, particularly with regard to the uncertainty about the effects of the COVID-19 pandemic, there is substantial risk of significant changes in the future value of these assets and liabilities should the assumptions, facts or circumstances on which these estimates were based change significantly. The key assumptions about the future and other significant data regarding the estimation of uncertainty at the reporting date that carry a significant risk of causing material changes in the value of assets or liabilities in the coming year are as follows:

- Impairment of non-financial non-current assets
The Group assesses non-financial assets annually for indications of impairment, based on appropriate impairment tests where circumstances make it advisable to do so.
- Deferred tax assets
Deferred tax assets are recognised based on the Group's estimate of their future recoverability in light of projected future taxable profit.
- Provisions
The Group recognises provisions against risks based on judgements and estimates as to their probability and the amount of any loss, recognising the corresponding provision when the risk is considered probable.
- Measurement of fair value, value in use and present value
Measurements of fair value, value in use and present value require the Group to calculate future cash flows and make assumptions about the future values of these flows and the discount rates to apply. Estimates and assumptions are based on past experience and other factors believed to be reasonable under the circumstances.
- Percentage-of-completion method based on costs
For construction contracts, the Group considered the percentage of completion method to be the most appropriate method for determining progress in meeting the obligations, as indicated in Note 3.d.24.

d.2) Basis of consolidation

The consolidated financial statements comprise the financial statements of Sacyr, S.A. and subsidiaries at 31 December 2020 and 2019. The financial statements of the subsidiaries are prepared for the same accounting period as those of the Parent, using uniform accounting policies. Adjustments are made as required to harmonise any differences in accounting policies.

Information on subsidiaries, joint ventures and associates is provided in Appendix I, which forms an integral part of these consolidated financial statements.

d.2.1 Consolidation principles

Consolidated companies are consolidated from the date that the Group obtains control of the company and deconsolidated when the Group ceases to exercise control. When control of a subsidiary ceases during the course of a year, the consolidated financial statements report its results only for the part of the year during which the subsidiary was under Group control.

d.2.2 Subsidiaries

Companies included in the scope of consolidation are fully consolidated in the following circumstances: (i) where the Parent company has a direct or indirect shareholding of over 50% and a majority of the voting rights in the corresponding governing bodies, (ii) where the ownership interest is equal to or less than 50% but there are agreements between shareholders that allow the Sacyr Group to control the management of the subsidiary.

d.2.3 Jointly controlled operations

Jointly controlled operations are included in the scope of consolidation using the proportionate consolidation method if there are two or more venturers related by a contractual arrangement that establishes joint control. The Group reports its share of the assets, liabilities, income and expenses of the joint venture, line by line, in its consolidated financial statements.

The Sacyr Group also includes temporary joint ventures (Uniones Temporales de Empresas, or UTEs) and economic interest groupings (Agrupaciones de Interés Económico, or AIEs) under this heading.

d.2.4 Associates

The companies in which the Sacyr Group does not hold control, but over which it does exercise significant influence or joint control in those cases in which the requirements of IFRS 11 are not met in order to be classified as "Jointly controlled operations", were accounted for using the equity method. For the purpose of preparing these consolidated financial statements, it was considered that the Group exercises significant influence over those companies in which it has a holding of over 20%, except in specific cases where, although the percentage ownership is lower, the existence of significant influence can be clearly demonstrated, as it may participate in the financial and operating decisions of the investee, mainly through representation on the board of directors, participation in policy-making processes or the provision of essential technical information.

Investments in associates are recognised in the consolidated statement of financial position at cost plus changes in the percentage of ownership subsequent to the initial acquisition, depending on the Group's interest in the net assets of the associate, less any impairment in value. The profit or loss of the associate is reflected in the separate consolidated income statement in proportion to the Group's ownership interest. In the event of changes recognised directly in the associate's equity, the Group recognises its share of these changes directly in its own equity.

d.2.5 Intra-group transactions

The following transactions and balances have been eliminated on consolidation:

- Reciprocal debit and credit balances and costs and income arising from intra-group transactions.
- Gains and losses from buying and selling property, plant and equipment and any material unrealised gains on inventories or other assets.
- Internal dividends and interim dividends payable recognised by the company paying them.

d.2.6 Financial year end

The reporting date for the financial statements of most Sacyr Group companies is 31 December. Companies whose financial years do not end on 31 December have prepared pro-forma financial statements as at that date.

d.2.7 Non-controlling interests

The interest of non-controlling shareholders in the equity and profit or loss of the consolidated subsidiaries is presented under "Equity attributable to non-controlling interests" in the consolidated statement of financial position and under "Non-controlling interests" in the separate consolidated income statement, respectively.

d.2.8 Translation of financial statements of foreign subsidiaries

The consolidated statement of financial position and separate consolidated income statement items of consolidated foreign companies are translated to euros using the year-end exchange rate method, which means:

 All assets, rights and obligations are converted to euros using the exchange rate prevailing at the foreign subsidiaries' reporting date.
 Separate consolidated income statement items are translated at the average exchange rate for the year.
 The difference between the equity of foreign companies, including the separate consolidated income indicated in the preceding section, translated at historical exchange rates, and the equity value arising from translating the assets, rights and obligations using the above criteria, is shown with a negative or positive sign as "Translation differences" under equity in the consolidated statement of financial position.

Transactions in currencies other than each company's functional currency are recognised at the exchange rates prevailing at the transaction date and are subsequently translated to euros as explained in this note.

d.3) Business combinations and goodwill

Business combinations are recognised using the acquisition method.

Identifiable assets acquired and liabilities assumed are recognised at their fair value at the acquisition date. For each business combination, the acquirer measures any non-controlling interests in the acquiree either at fair value or at the non-controlling interest's proportionate share of the acquiree's identifiable net assets. Acquisition costs are recognised as expenses in the income statement.

When the Group acquires a business, it will classify or designate the acquired assets and liabilities as necessary based on contractual agreements, economic circumstances, accounting and operating policies and other relevant conditions applying at the acquisition date.

If the business combination is carried out in several steps, the Group remeasures its previous interest in the equity of the acquiree previously held at fair value at the acquisition date and recognises any resulting gains or losses in income.

Any contingent consideration that the Group transfers is recognised at fair value at the acquisition date. Subsequent changes in fair value of contingent considerations classified as an asset or liability will be recognised with any resulting gain or loss being recognised in either income or other comprehensive income. If the contingent consideration is classified as equity it is not remeasured and subsequent settlement is accounted for within equity.

Goodwill arising from a business combination is initially measured at cost at the time of the acquisition. This is the excess of the consideration transferred plus any non-controlling interest in the acquiree over net identifiable assets acquired and liabilities assumed. If the consideration is less than the fair value of the acquiree's net assets, the difference is recognised in income.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the carrying amount may be impaired.

For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group's cash-generating units, or groups of cash-generating units, that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units.

Impairment is determined for goodwill by assessing the recoverable amount of the cash-generating unit or group of cash-generating units to which the goodwill relates. Where the recoverable amount of the cash-generating unit or group of cash-generating units is less than their carrying amount, the Group recognises an impairment loss.

Impairment losses relating to goodwill cannot be reversed in future periods.

If goodwill has been allocated to a cash-generating unit and the entity sells or otherwise disposes of an activity from this unit, the goodwill associated with the activity is included in the carrying amount of the business when determining the gain or loss from disposal, and it is measured based on the relative values of the activity disposed of and the retained portion of the cash-generating unit.

d.4) Other intangible assets

This heading includes computer software, industrial property and leasehold assignment rights. These assets are carried at acquisition or production cost, less accumulated amortisation and any accumulated impairment losses. An intangible asset is recognised only if it is probable that the future economic benefits attributable to the asset will flow to the Group and the cost of the asset can be measured reliably.

Costs incurred in each development project are capitalised when the Group can demonstrate:

- the technical feasibility of completing the intangible asset so that it will be available for use or sale,
- its intention to complete the asset for use or sale,
- how the asset will generate future economic benefits,
- the availability of resources to complete the asset, and
- the ability to measure reliably the expenditure during development.

Capitalised development costs are amortised over the period of expected future revenue or benefit from the project.

"Computer software" shows the carrying amount of computer programmes acquired from third parties and intended for use over several years. Computer software is amortised over its useful life, which is generally four years.

"Leasehold assignment rights" is the amount paid for the right to lease business premises. Assignment rights are amortised over their useful life, which is generally five years.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net proceeds from disposal and the carrying amount of the asset. They are recognised in the separate consolidated income statement when the asset is derecognised.

d.5) Property, plant and equipment

Property, plant and equipment is measured at cost, including all directly related costs incurred before the asset becomes available for use, net of accumulated depreciation and accumulated impairment losses.

The costs of expanding, upgrading or improving property, plant and equipment that increase its productivity, capacity or efficiency, or prolong its useful life are capitalised as an increase in the cost of the asset.

Repair and maintenance costs for the year are recognised in the separate consolidated income statement.

Depreciation is recognised in the separate consolidated income statement on a straight-line basis over the estimated useful life of each asset. Depreciation of the assets begins from the moment they become available for use.

The cost of property, plant and equipment is depreciated using the straight-line method over the period of the asset's estimated useful life, except for machinery, which is depreciated using the declining balance method in nearly all cases:

Buildings for own use	50 - 68
Machinery	5 - 10
Materials for installations	2 - 4
Tools and associated equipment	4 - 8
Transport equipment	5 - 8
Furniture and fittings	9 - 12
Data processing equipment	3 - 4
Complex pieces of plant and equipment	2 - 4
Other property, plant and equipment	5

At the end of each reporting period, the Group reviews and, where necessary, adjusts the assets' residual values, useful life and depreciation method.

Borrowing costs that are directly attributable to the acquisition or development of property, plant and equipment are capitalised when assets require more than a year to be ready for use.

d.6) Leases

The Group acts as a lessee of various plants, machinery, vehicles, buildings and other assets. The Group applies a single recognition and measurement model for all leases in which it acts as a lessee, except for low-value assets and short-term leases.

• Rights of use

The Group recognises rights of use at the start of the lease. That is, the date on which the underlying asset is available for use. Rights of use are measured at cost less any accumulated depreciation and impairment losses, and are adjusted for any changes in the measurement of the associated lease liabilities. The initial cost of rights of use includes the amount of the recognised lease liabilities, initial direct costs and lease payments made before the commencement date of the lease. Incentives received are deducted from the initial cost.

Rights of use are amortised on a straight-line basis over the estimated useful life or the term of the lease, whichever is shorter:

Buildings for own use	50 - 68
Machinery	5 - 10
Materials for installations	2 - 4
Tools and associated equipment	4 - 8
Transport equipment	5 - 8
Furniture and fittings	9 - 12
Data processing equipment	3 - 4
Complex pieces of plant and equipment	2 - 4
Other property, plant and equipment	5

However, if the Group deems it reasonably certain that ownership of the leased asset will be obtained at the end of the lease term or that the purchase option will be exercised, the rights of use would be amortised over the useful life of the asset. Rights of use are subject to impairment analysis.

The Group's leases do not include decommissioning or restoration obligations.

The rights of use are presented under a separate heading in the balance sheet.

• Lease liabilities

At the commencement of the lease, the Group recognises the lease liabilities at the present value of the lease payments to be made over the term of the lease. Lease payments include fixed payments (including payments that contractually could qualify as variable, but are essentially fixed) minus lease incentives, variable payments that depend on an index or rate, and amounts expected to be paid as residual value guarantees. Lease payments also include the price of exercising a purchase option if the Group is reasonably certain that it will exercise that option and lease termination penalty payments if the lease term reflects the Group's exercise of the option to terminate the lease. Variable lease payments that do not depend on an index or rate are recognised as an expense in the period in which the event or condition that triggers the payment occurs.

When calculating the present value of lease payments, the Group uses the incremental interest rate at the commencement date of the lease if the interest rate implicit in the lease cannot be readily determined. After the commencement date, the amount of lease liabilities is increased to reflect the accumulation of interest and is reduced by the lease payments made. In addition, the lease liability shall be remeasured if a modification, change in the term of the lease, change in the fixed lease payments in substance, or change in assessment is made to purchase the underlying asset. The liability also increases if there is a change in future lease payments resulting from a change in the index or rate used to determine such payments.

• Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its machinery and equipment leases that have a lease term of 12 months or less from the commencement date and do not have a purchase option. It also applies the exemption from recognition of low value assets to leases of office equipment that are considered low value. Lease payments on short-term leases and low-value asset leases are recognised as a straight-line expense over the term of the lease.

• Judgements applied in determining the term of the lease with option to renew

The Group determines the term of the lease as the non-cancellable term of a lease, to which are added the optional periods for extending the lease, if it is reasonably certain that the option will be exercised. Also included are the periods covered by the option to terminate the lease if it is reasonably certain that the option will not be exercised.

The Group has the option, under certain of its contracts, to lease the assets for additional periods of three to five years. The Group assesses whether it is reasonably certain it will exercise the option to renew.

In other words, it considers all the relevant factors that create an economic incentive to renew. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances within its control that affects its ability to exercise, or not exercise, the renewal option. The Group included the renewal period as part of the lease term for plant and machinery leases due to the importance of these assets to itsoperations. These leases have a short non-cancellable period (i.e. three to five years) and there would be a negative effect on production if replacement does not easily occur. Renewal options for motor vehicle leases were not included as part of the lease term because the Group has a policy of leasing motor vehicles for no longer than five years and therefore the renewal options are not expected to be exercised.

d.7) Concession projects

Under the various concession agreements, until each concession project becomes operational, all planning, construction, expropriation and other expenses, including the corresponding portions of administration expenses and finance costs until the start-up date, and the depreciation of other property, plant and equipment, are capitalised as investments in concession projects.

Investment in these concession projects includes any revaluations applied by any company under prevailing legislation until the date of transition to IFRS.

For certain subsidiaries where the carrying amount of equity at the date of acquisition is greater than the associated investment, the excess is recorded under "Concession projects".

Certain companies have begun to depreciate some items of returnable property, plant and equipment whose estimated useful life is less than the concession period. These items continue to be depreciated over their estimated useful life.

In relation to other investments in concession projects, i.e. returnable assets that are not technically depreciated over the life of the concession, the Group has opted to use a depreciation method based on the economic use of the assets under concession, except for hospital concessionaire companies, which depreciate the assets on a straight-line basis over the period in question.

Service concession arrangements acquired through business combinations after 1 January 2004 (transition date to IFRS) are measured in accordance with IFRS 3 at fair value (based on discounted cash flow valuations at the acquisition date) and depreciated on a straight-line basis over the concession period.

With respect to accounting methods, see Note 3.d.10).

d.8) Financial assets

Financial assets are initially measured at fair value, which generally coincides with acquisition cost, adjusted for any directly attributable transaction costs, except financial assets held for trading, for which gains or losses are recognised in profit or loss for the year.

The Group classifies financial assets into the following groups:

- Loans to companies accounted for using the equity method: these include loans granted by the various Group companies to companies accounted for using the equity method. These assets are measured at amortised cost.

Equity financial instruments at fair value with changes in other comprehensive income: correspond to investments in equity instruments that have been irrevocably designated by the Group as at fair value with changes in other comprehensive income. These assets are initially measured in the consolidated statement of financial position at fair value. Changes in the fair value of these instruments are recorded asincome or expense in the statement of other comprehensive income and are not subsequently reclassified to the income statement. The dividends generated by these equity instruments are recorded in the income statement as income if there is any.

- Financial assets at fair value through profit or loss: this heading includes the financial assets held for trading, derivative financial instruments not assigned as accounting hedges as well as financial assets which, when initially recognised, are designated to be measured at fair value through profit or loss. They are initially measured at fair value which, unless proven otherwise, is the transaction price, which is equivalent to the fair value of the consideration received. Directly attributable transaction costs will be recognised in profit and loss for the year.
Such assets are subsequently measured at fair value, recognising the gains and losses from the changes in this fair value in the income statement, without deducting transaction costs.
- Receivables from certain service concession agreements which apply the financial asset model under IFRIC 12 (see Note 3.d.10). This right is measured at its amortised cost, and during the term of the agreement, at the closing date, a financial income calculated on the basis of an effective interest rate is recorded.
- Other loans: after their initial measurement at the fair value of the collection rights, loans and receivables are carried at amortised cost, which means the original carrying amount less repayments of principal, plus interest receivable, less any provision for impairment or default. Accrued interest is recognised in the consolidated income statement as an increase in the amount receivable, unless paid as accrued.
- Financial assets held for trading: those acquired for the purpose of selling them in the near term to obtain profits from fluctuations in their prices. They are measured at fair value through profit or loss.
- Derivative financial instruments at fair value: the Group uses derivative financial instruments such as currency contracts and interest rate swaps to hedge its interest rate and foreign currency risks. The related explanation is detailed in Note 3.d.22).
- Hybrid financial instruments: include financial instruments which combine a non-derivative host contract and an embedded derivative, which cannot be transferred separately.
The Company recognises and values the main contract and the embedded derivative separately when the nature of the financial instrument is one of liability and:

a) The characteristics and economic risks inherent to the embedded derivative are not closely related to those of the host contract.

b) A separate instrument with the same conditions as those of the embedded derivative would comply with the definition of a derivative instrument.

c) The hybrid instrument is not measured at fair value through profit or loss.

In this case, the embedded derivative is accounted for as a derivative financial instrument and the host contract is accounted for according to its nature.

When the nature of the hybrid financial instrument is that of an asset, the main contract component is not separated from the implicit derivative component andthe classification standards for financial assets are applied to the hybrid instrument as a whole.

On initial recognition, an entity may elect to designate the entire hybrid (combined) contract as a financial asset or financial liability at fair value through profit or loss unless:

a) the embedded derivative(s) do not significantly modify the cash flows which it would otherwise have generated, or
b) it is clear with little or no analysis when a similar hybrid (combined) instrument is first considered that separation of the embedded derivative(s) is prohibited.

Guarantees and deposits given: these represent the amounts posted as a guarantee of compliance with obligations or as a deposit.

Financial assets are derecognised when:

- the rights to receive cash flows from the asset have expired; or

- the Group has transferred its rights to receive cash flows from the asset and transferred substantially all the risks and rewards incidental to ownership of the asset.

In the accompanying consolidated statement of financial position, financial assets and, in general, all assets and liabilities, are classified on the basis of their contractual or estimated maturity. For this purpose, those maturing in 12 months or less are classified as current and those maturing in over 12 months, as non-current.

The Group generally recognises normal purchases and sales of financial assets at the settlement date.

There are no significant differences between the fair value and the carrying amount of the Sacyr Group's financial assets and liabilities that are measured using the amortised cost method.

d.9) Impairment d.9.1 Impairment of property, plant and equipment and intangible assets

Impairment losses are recognised for all assets or, where appropriate, the related cash-generating units, when an asset's carrying amount exceeds its recoverable amount. Impairment losses are recognised in the separate consolidated income statement.

The Group assesses at each reporting date whether there is an indication that a non-current asset may be impaired. Where such indications exist, in the case of goodwill, the recoverable amount of the assets is estimated, as the case may be.

Recoverable amount is the higher of net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For assets that do not generate largely independent cash flows, the recoverable amount is determined for the cash-generating units to which the asset belongs.

Impairment losses in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the unit and, second, to reduce the carrying amount of the other assets based on a review of the individual assets that show indications of impairment.

Except in the case of goodwill, a previously recognised impairment loss is reversed if there has been a change in the estimates used to determine the asset's recoverable amount. The reversal of an impairment loss is recognised in the separate consolidated income statement.

An impairment loss can only be reversed up to the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset.

d.9.2 Impairment losses on financial assets (net)

IFRS 9 introduced an impairment model based on expected loss, rather than the incurred loss that was the model in IAS 39.

Under this model, a financial asset must be impaired at all times based on its expected loss in value over the next 12 months, unless there has been a significant increase in credit risk, in which case it must be impaired based on the expected loss over the remaining life of the asset.

If a financial asset has become impaired by a substantial change in its credit risk and there is objective evidence of such impairment, its interest will then begin to be calculated at its net provision value.

The new impairment model also applies to commercial assets and customer contracts under IFRS 15 and to receivables generated in accordance with IFRIC 12.

The methodology used by the Group consists of applying a percentage calculated on the basis of the probability of default (PD) and the percentage of effective loss that is ultimately uncollectable to the balances of its financial assets, based on the best estimates for each period.

The determination of the expected loss has been carried out on the basis of listed and unlisted information from financial information providers, in particular Bloomberg and Reuters. For public customers, the probability of default (PD) implicit in CDS (credit default swaps) quoted on government bonds of the countries where they operate has been considered. For the most significant private customers, the individualised PD derived from the financial analysis of each of them was used. The analysis of other customers was carried out by grouping them by the sectors and countries in which they operate and using their specific PD.

d.10) Concession assets

IFRIC 12 regulates the accounting treatment of public-private partnership agreements on service concession arrangements from the concession operator's point of view and prescribes accounting methods based on the nature of the agreements entered into with the grantor. It applies to public-private service concession agreements when:

 The grantor controls or regulates which services the concession operator needs to provide in respect infrastructure, to whom it should provide the services and at what price.

 The grantor controls all significant residual interests in the infrastructure once the concession agreement expires.

Under such agreements, the concession operator acts as service provider, rendering construction or infrastructure upgrade services, and operating and maintenance service during the lifetime of the concession assigning the contract price to each of the performance obligations.

Depending on the type of rights that the concession operator receives as consideration for the construction or upgrade work, the following accounting methods are applied:

1. Intangible asset model

This method is usually applied when the concession operator has the right to charge users for the use of the public service. The right is not unconditional but depends on users using the service. Therefore the concession operator assumes the demand risk.

In these cases the asset that should be recognised as consideration for the construction or upgrade services (i.e. the value of the right to charge users for a public service under the concession) is measured in accordance with IAS 38 "Intangible assets" and amortised over the lifetime of the concession.

2. Financial asset model

Under this model, the concession operator recognises a financial asset where it has an unconditional contractual right to receive from the grantor (or from others on the grantor's behalf) cash or another financial asset as consideration for the construction and operation services provided, and the grantor has little or no possibility of avoiding the payment. This means that the grantor guarantees payment to the concession operator of a fixed or measurable sum or, in some cases, makes good on any deficit in income. In this case, the operator assumes no demand risk, as it would be paid even if no one used the infrastructure.

In this case the measurement shall be in accordance with IAS 32, IFRS 9 and IFRS 7 in relation to financial assets. The concession right is recognised under financial assets from the moment the Group acquires the unconditional right to receive cash or other financial assets from the grantor, calculated using an effective interest rate equal to the project's internal rate of return.

3. Mixed model

Under the mixed model, the financial asset model is applied to the elements of the agreement where payment of a sum is guaranteed and the intangible asset model is applied to the unguaranteed portion. The key distinction is between the elements of income that offset the initial investment in the assets (intangible asset model) and those that are paid in settlement of receivables (financial asset model).

The Group recognises income and expenses separately corresponding to infrastructure construction or upgrade services for the concession, irrespective of whether the construction is performed by a Group company or a third party, recognising the degree of progress in accordance with IFRS 15 "Revenue from contracts with customers", with a balancing intangible asset or contract asset. During the provision of the operating or maintenance services for the infrastructure, such income and expenses are also recognised in accordance with IFRS 15 "Revenue from contracts with customers".

d.11) Non-current assets held for sale and associated liabilities

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sales transaction rather than through continued use. This condition is deemed to have been met only when disposal is highly probable and the asset is available for immediate sale in its current state. The sale must be expected to occur within one year from the classification date.

These assets are measured at the lower of carrying amount and fair value less costs to sell or, where IFRS 9 applies, at fair value without deducting any costs to sell.

Liabilities related to assets that meet the above definition are recognised under "Liabilities associated with non-current assets held for sale" on the liability side of the consolidated statement of financial position.

d.12) Inventories

Land lots, developments under construction and completed buildings, in each case held for sale, are measured at cost of acquisition or construction, as described below:

 Buildings: are measured according to the cost system indicated below for developments under construction or at cost in the case of buildings that were acquired after completion, including costs directly attributable to the acquisition.
 Developments under construction: include costs incurred for real estate developments whose construction is not yet complete. This heading includes direct construction costs certified by the relevant project managers, development costs and finance costs incurred over the construction phase. Once construction has begun, the value of buildings and other structures includes the cost of the land lots on which they are built.
 Land lots and adaptation of land: are valued at cost of acquisition, which includes costs directly related to purchases. The value of undeveloped land and lots also includes the capitalised cost of spending on the project, on urban development and on planning up to the point where the lot is ready for development.

"Inventories" includes the finance costs accrued during the construction phase.

Stockpiles of raw and other materials and consumables are valued at cost.

Products and work in progress are measured at production cost, which includes the cost of materials, labour and any direct production costs incurred.

The Group writes down the value of its inventories where the cost booked exceeds market value, based on independent appraisals.

Project start-up costs are costs incurred up to the start of construction and are recognised in profit or loss based on the stage of completion over the lifetime of the project.

In the real estate business, impairment losses are recorded to cover any estimated losses on projects in full.

d.13) Receivables

Discounted bills pending maturity at 31 December are included in the accompanying consolidated statement of financial position under "Trade receivables for sales and services", with a balancing entry in "Bank borrowings".

d.14) Cash and cash equivalents

"Cash and cash equivalents" comprise cash on hand and at banks, and short-term deposits with an original maturity of three months or less and no exposure to significant changes in value. However, this cash may only be used by the Group company owning it.

d.15) Capital increase costs

Capital increase costs are recognised as a decrease in equity, net of any tax effect.

d.16) Treasury shares

Shares of the Parent held by the Group are shown at cost and recognised as a deduction from equity. No gain or loss is recognised in profit or loss on the purchase, sale or redemption of treasury shares. Any gains or losses on the sale of these shares are recognised directly in equity at the time they are sold.

d.17) Provisions and contingencies

Provisions are recognised in the consolidated statement of financial position when the Group has a present obligation (legal, contractual or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Amounts recognised as provisions are the best estimate of the amounts required to offset the present value of the obligations at the reporting date.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate of the liability.

The policy on contingencies and expenses is to make provisions for the estimated amount of probable or certain liabilities arising from legal proceedings in progress, compensation or obligations pending, and for guarantees and other similar commitments. This provision is recorded when the contingency or obligation giving rise to the indemnity or payment arises.

The provision for completion of construction is recorded as a liability in the consolidated statement of financial position and reflects the estimated amount of the payment liabilities for completing construction which cannot yet be determined or for which the actual settlement date is not known, since they depend on the fulfilment of certain conditions. Provisions are made according to the best estimates of the annual accrual, which is between 0.5% and 1% of the completed project.

The Group assesses its obligations and liabilities by considering the potential obligations arising from past events whose existence must be confirmed by uncertain future events not under the Group's control as "contingent liabilities".

d.18) Financial liabilities

Financial liabilities are classified, for measurement purposes, into the following categories:

 Bank borrowings and payables
These include trade payables for goods and services plus negative balances on non-trade transactions not including derivatives.
They are initially recognised in the consolidated statement of financial position at fair value, which, unless there are indications to the contrary, is the transaction price measured as the fair value of the consideration received less directly attributable transaction costs.
Subsequently, they are measured at amortised cost. Accrued interest is recognised in the separate consolidated income statement using the effective interest rate method.
However, trade payables due within one year that have no contractual interest rate and are expected to be paid in the short term are measured at their nominal value when the effect of not discounting cash flows is insignificant.
 Hedging derivatives
See Note 3.d.22).

Financial liabilities are derecognised when the corresponding obligation is settled, cancelled or expires.

Liabilities maturing in less than 12 months from the date of the consolidated statement of financial position are classified as current and those with longer maturity periods as non-current, except mortgage loans on items of inventory or related to non-current assets held for sale, which are classified as current regardless of the maturity date.

d.19) Foreign currency transactions

Foreign currency transactions are converted to euros at the exchange rate prevailing at the date of the transaction. Gains or losses from foreign currency transactions are recognised in the separate consolidated income statement as they occur.

Foreign currency receivables and payables are translated to euros using the closing exchange rate. Unrealised exchange differences on transactions are recognised in the separate consolidated income statement.

d.20) Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with.

Non-repayable grants used to finance returnable assets are recognised as deferred income at their fair value. These grants are recognised as income in proportion to the depreciation charged for the assets financed with the grants.

Certain Chilean companies have recognised in their financial statements the annual grants receivable from the Chilean Ministry of Public Works under their respective concession contracts. These receivables are recognised in income following the same criteria as those used to depreciate the concession assets.

d.21) Income tax

The income tax expense each year is calculated as the sum of the current tax resulting from applying the appropriate tax rate to the taxable profit for the year, after taking into account all applicable tax credits and relief, and the change in deferred tax assets and liabilities recognised in the separate consolidated income statement.

The income tax expense is recognised in the separate consolidated income statement except when it relates to items recognised directly in equity, in which case it is recognised in equity.

In accordance with Royal Decree 4/2004, of 5 March, approving the consolidated Corporate Income Tax Law, Sacyr, S.A. and its subsidiaries have decided, with the approval of each company's corporate bodies, to file consolidated tax returns, and have duly notified the Spanish tax authorities, which assigned tax identification number 20/02 to the head of the Tax Group.

The companies forming part of the Tax Group are listed in Appendix II of these consolidated financial statements.

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax authorities, on the basis of the tax rates in force at the reporting date.

Deferred income tax is recognised using the liability method for all temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

The Group recognises deferred tax assets for all deductible temporary differences, and unused tax credit and tax loss carryforwards, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the unused tax credit and tax loss carryforwards can be utilised, except:

 where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and which, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss, and
 in respect of deductible temporary differences relating to investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be recovered.

The carrying amount of the deferred tax assets is reviewed by the Group at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be applied. The Group also reassesses unrecognised deferred tax assets at each reporting date and recognises them to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

The Group recognises deferred tax liabilities for all taxable temporary differences, except:

 where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or loss.
 in respect of taxable temporary differences associated with investments in subsidiaries and interests in joint ventures, where the timing of the reversal of the temporary difference can be controlled by the Parent and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year in which the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

d.22) Hedging derivatives

The Group uses derivative financial instruments such as currency contracts and interest rate swaps to hedge its interest rate and foreign currency risks. Such derivative financial instruments are initially recognised at fair value at the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives that do not qualify for hedge accounting are taken directly to the separate consolidated income statement for the year.

The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles. The fair value of interest rate swap contracts is determined by discounting future flows payable and receivable with zero coupon interest rate curves of the market.

For the purpose of hedge accounting, hedges are classified as:

 fair value hedges when hedging exposure to changes in the fair value of a recognised asset or liability;
 cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a forecast transaction, or
 hedges of a net investment in a foreign operation.

Hedges of the foreign currency risk of a firm commitment are recognised as cash flow hedges.

At the inception of a hedging relationship, the Group formally designates and documents the hedging relationship to which the Group wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument's effectiveness in offsetting exposure to changes in the hedged item's fair value or the cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in offsetting changes in fair value or cash flows, and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated.

Hedges that meet the strict criteria for hedge accounting are accounted for as follows:

- Fair value hedges

Fair value hedges are hedges of the Group's exposure to changes in the fair value of a recognised asset or liability, or of an unrecognised firm commitment, or of an identified portion of such an asset, liability or firm commitment, that is attributable to a particular risk and could affect profit or loss. In fair value hedges, the carrying amount of the hedged item is adjusted to reflect gains and losses in the hedged risk, the derivative is remeasured at fair value and the gains and losses from both are recognised in the income statement.

When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability, with a corresponding gain or loss recognised in profit or loss. Gains or losses arising from changes in the fair value of hedging instruments are also recognised in profit or loss, excluding from such treatment firm commitments in relation to currencies, as explained previously.

The Group discontinues the hedge accounting if the hedging instrument expires or is sold, terminated or exercised, or no longer meets the criteria for hedge accounting.

- Cash flow hedges

Cash flow hedges are hedges of exposure to variability in cash flows attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction and that could affect profit or loss. The effective portion of the gain or loss on the hedging instrument is recognised directly in equity, while any ineffective portion is recognised immediately in the separate consolidated income statement.

Amounts taken to equity are transferred to the income statement, for example, when the hedged transaction affects profit or loss, such as when the hedged finance income or expense is recognised or when a forecast sale or purchase occurs. Where the hedged item is the cost of a non-financial asset or non-financial liability, the amounts taken to equity are transferred to the initial carrying amount of the non-financial asset or liability.

If the forecast transaction is no longer expected to occur, amounts previously recognised in equity are transferred to the separate consolidated income statement. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, amounts previously recognised in equity remain in equity until the forecast transaction occurs. If the related transaction is no longer expected to occur, the amount is taken to the separate consolidated income statement.

- Hedges of a net investment

Hedges of a net investment in a foreign operation, including hedges of a monetary item accounted for as part of the net investment, are treated similarly to cash flow hedges. Gains or losses on the hedging instrument relating to the effective portion of the hedge are recognised directly in equity, while any gains or losses relating to the ineffective portion are recognised in the separate consolidated income statement. On disposal of the foreign operation, the accumulated value of any such gains or losses recognised directly in equity is transferred to the separate consolidated income statement.

d.23) Related parties

The Group defines related parties as its direct and indirect shareholders, related companies, directors and key management personnel, as well as any individuals or legal entities dependent on such persons.

d.24) Income and expense recognition

In general, revenues and expenses are recognised on an accrual basis, i.e. when the actual flow of the related goods and services occurs, regardless of when the resulting monetary or financial flow arises.

In 2018, the Group applied IFRS 15 for the first time, adapting its policy of recognising revenue from contracts with customers. The application of IFRS 15 involves the following:

i. General income recognition criteria

IFRS 15 indicates that for each contract with a customer, the separate performance obligations contained in the contract must be identified and the contract price allocated to each identified performance obligation.

An entity recognises revenue from a contract to the extent that it meets its contractual obligations to perform by transferring a promised good or service to the customer at the price assigned to the obligation indicated above. When establishing the exact moment at which the transfer of the good or service to its customer takes place, the entity must determine whether the obligations of the contract are met over time or at a given moment.

Given the nature of the Group's activities, the transfer of goods and services to its customers is generally satisfied over time because either the customer simultaneously receives and consumes the benefits provided by the entity's performance of the obligations, or the entity's performance of the obligations does not create an asset with an alternative use for the entity and the entity has a claimable right to payment of what has been performed to date or a right to compensation for what has been performed to date in the event of termination.

Once it has been established that the transfer of goods or services occurs over time, the entity must determine an appropriate method to measure the progression in the fulfilment of the obligations and recognise the corresponding income according to the price assigned to the obligation and the progression in its fulfilment.

The methods selected by the Group to measure progress in meeting its contractual obligations vary depending on the specific good or service covered by the contract, but in general terms the following were considered to be the most appropriate:

 Elapsed time method

For recurring service contracts (maintenance, cleaning, waste collection, etc.) with a homogeneous transfer pattern over time and with fixed periodic payments over the life of the contract (monthly payments, annual instalments, etc.), the Group considered that the most appropriate method of measuring progress in compliance with obligations is the elapsed time method, whereby revenues are recognised on a straight-line basis over the term of the contract and their costs on an accrual basis.

 Percentage-of-completion method based on costs

In the case of construction contracts, the Group considered the percentage-of-completion method to be the most appropriate method for determining the progression in compliance with the obligations. Under this method, the costs incurred are measured each month in relation to the total estimated costs for completing the contract, giving rise to a percentage of the percentage of completion. Recognised revenue shall be the contract price multiplied by the percentage of completion. The costs of these contracts are recognised on an accrual basis.

The difference between the original production amount at the beginning of each project and the amount certified up to each reporting date is recorded as "Completed work pending certification" under "Trade and other receivables".

Auxiliary work performed for construction projects, including general and specific construction installations and study and project expenses, is allocated proportionally in accordance with the ratio of costs incurred to total budgeted costs. The unamortised amount is recognised under "Inventories" in the consolidated statement of financial position.

The estimated costs of termination of the project or contract are provisioned on an accrual basis to "Trade provisions" in the consolidated statement of financial position over the life of the project or contract, and recognised in profit or loss based on the proportion of work completed as a percentage of estimated costs. Costs incurred after completion of the work up to its final settlement are charged against these provisions.

 Revenues recorded in concessionaires (IFRIC 12)

The concession companies in the group record their ordinary revenues in accordance with IFRIC 12, which is described in note 3.d.10.

ii. Recognition of revenue from modifications, claims and disputes

A modification to a contract is a change in the scope or price of the contract (or both). The Group's general criterion is to recognise the income derived from a contract modification when there is agreement by the customer. The Group's criterion is not to recognise income derived from such additional work until there is approval from the customer, which, in general, is considered to be when the customer gives their technical and economic approval.

If the work is approved but its measurement is pending, income is recognised as per IFRS 15 for cases of "variable consideration".

The recognition of revenue in the case of 'variable consideration' implies that revenue from variable consideration is recognised only when it is highly probable that a significant reversal of the amount of recognised revenue will not occur in the future when the uncertainty associated with such claims or variable prices is subsequently resolved, taking into account both the probability and the magnitude of such a reversal.

The costs related to the execution of amendments to the contract are recognised when they occur, regardless of whether or not the customer has approved them and whether or not revenue related to their execution has been recognised.

A claim is a direct request for payment or compensation to the customer, such as cases of compensation, reimbursement of costs and mandatory inflation reviews. The Group's criterion for such claims is to apply the procedure set out about for modifications whensuch claims are not covered by the contract, or as variable consideration when they are covered by the contract, but their quantification is required.

A dispute is the result of disagreement or rejection of a claim made to the customer under the contract where resolution is pending with the customer or through legal or arbitration proceedings. Under the Group's criteria, revenue related to disputes where the enforceability of the amount claimed is in question is not recognised, and revenue already recognised is derecognised, as a dispute shows that the customer has not approved the completed work. If the customer questions the value of the work performed, income is recognised based on the criteria applied in cases of "variable consideration", as already mentioned. The revenue can only be recognised in cases when there is a legal report confirming that the disputed rights are clearly enforceable and that, therefore, the costs directly related to the service in question, at least, will be recovered. Such revenue can only be recognised up to the value of such costs.

d.25) Transferable mortgage loans

Transferable mortgage loans are recognised under "Bank borrowings" in the consolidated statement of financial position and classified as current if they relate to inventory financing carried as current assets in the consolidated statement of financial position.

d.26) Advances received on orders

This line item appears under "Trade and other payables" on the liability side of the accompanying consolidated statement of financial position and includes prepayments received from customers on uncompleted work, and on buildings awaiting delivery.

d.27) Termination benefits

Companies must compensate employees contracted for a project or service when they cease to work on the projects for which they were contracted through no fault of their own.

As there is no foreseeable need to terminate the contracts of employees and given that employees who retire or leave the Company of their own accord are not entitled to compensation, any termination benefits are recognised in the income statement when decisions are made and notified to the employee concerned.

d.28) Environment

Costs incurred to acquire systems, equipment and installations for the purpose of eliminating, mitigating or monitoring the potential environmental impact of the Group's activities carried out in the normal course of business are considered to be investments in fixed assets.

Other environment-related expenses that do not concern the acquisition of fixed assets are recorded as expenses for the year.

The parent company's directors consider that any contingencies arising in connection with environmental matters are adequately covered by existing insurance policies.

d.29) Segment information

The Group identifies segments based on the following factors:

- The businesses engage in similar economic activities.
- To provide consolidated financial statements to users, with the relevant financial information on the activities of the Group's businesses and the economic environments in which it operates.

The Group's management controls the volume of assets, revenue and operating results of the operating segments separately for the purposes of making decisions on the allocation of resources and assessing results and performance. (see note 42).

4. Non-current assets held for sale and discontinued operations

At 31 December 2019, assets and liabilities relating to the Group's ownership interest in Autopista del Guadalmedina Concesionaria Española, S.A. were classified as non-current assets and liabilities held for sale.

The detail of the consolidated statement of financial position in respect of these non-current assets held for sale at 31 December 2019 is as follows:

Miles de euros

ASSETS

2019

A) NON-CURRENT ASSETS

I. Property, plant and equipment
II. Concession projects

335,739 16 310,240

III. Other intangible assets 1

IV. Non-current financial assets 9

V. Deferred tax assets 25,473

B) CURRENT ASSETS 11,515

I. Trade and other receivables 473

II. Cash and cash equivalents 10,987

III. Other current assets TOTAL ASSETS

55 347,254

LIABILITIES A) EQUITY

Miles de euros 2019 0

B) NON-CURRENT LIABILITIES 224,522

II. Bank borrowings 223,720

II. Non-current payables 217

III. Deferred tax liabilities 585

C) CURRENT LIABILITIES 3,021

I. Bank borrowings 2,044

II. Trade and other payables 810

III. Current payables to associates 167

TOTAL LIABILITIES

227,543

4.1. Autopista del Guadalmedina Concesionaria Española, S.A.

In accordance with IFRS 5, at 31 December 2019, the Group's 100% ownership interest in Autopista del Guadalmedina Concesionaria Española, S.A. was classified as a non-current asset held for sale, since it was estimated that the value of this asset would be recovered through a sale transaction rather than through continued use based on the sale agreement reached with the Abeerdeen Infraestructure and Core Infrastructure II funds.

As stated in note 2.B.2, 95% of the holding in this company was sold in 2020, in two tranches of 47.5%, as follows:

- On 11 February 2020, a purchase and sale agreement for the sale of 47.5% of the ownership interest in Autopista de Guadalmedina, Concesionaria Española, S.A. and 47.5% of the assignment of participating loans between the Group and Asisuncoast, S.L.U. was recorded in a public deed, as the conditions precedent had been met.
- On 18 June 2020, a purchase and sale agreement for the sale of 47.5% of the ownership interest in Autopista de Guadalmedina, Concesionaria Española, S.A. and 47.5% of the assignment of participating loans between the Group and Core Infrastructure II S.A.R.L. was recorded in a public deed, as the conditions precedent had been met.

All of the balances relating to "Non-current assets held for sale" and "Liabilities associated with assets classified as held for sale" were therefore derecognised. As a result, the Group lost its control over the concessionaire, resulting in the remaining 5% holding being classified as a financial asset at fair value recognised in "Non-current financial assets".

The consolidated gains on this transaction were 88,802 thousand euros, as described in note 32.

5. Property, plant and equipment

Movement in property, plant and equipment in 2019 and 2020 and the related accumulated depreciation are as follows:

2019

Thousands of euros

Land and buildings Plant and machinery

Other installations, tools and furniture Prepayments and work-in-progress

173,227 615,003 111,593 42,330

Restatements and transfers

Other items of property, plant and equipment 268,721

Cost 1,210,874

Impairment (12,459)

Land and buildings (85,673) Plant and machinery

Other installations, tools and furniture

(419,407) (84,122)

Other items of property, plant and equipment(166,401)

4,067 57,535 22,166 12,048 46,273 142,089 317 317 (2,653) (42,253) (15,007) (33,025)

(14,921) (15,175)

(750)

(4,979)

157

156,801

(36,379)

(185,125)

1,737

437,596

(8,122) (3,382)

209

(1,749)

(118)

123,979

(10,416)

(42)

600

41,138

(16,631)

(72,104)

(3,819)

(58,231)

(119,440)

(195,714)

273 2,649

222,713 982,227

Accumulated amortisation

TOTAL

(755,603) 442,812

(92,938) 49,468

839 839 5,425 13,394 5,479 15,810 40,108 (17,284)

285 0

0 0

(11,018)

23,839 4,744 34,625 63,199

(9) 290 103,662 1,598 4,183

(23) (1,340)

(82,643)

153 (324)

(322,105) (87,155) (145,132)

(55,956)

109,733 (85,981)

(1,534)

(637,035)

1,115

334,174

2020

Thousands of euros

Balance at 31-Dec-19

Restatements and transfers

Changes in scope of

Exchange rate effect

Balance at 31-Dec-20

Land and buildings Plant and machinery

Other installations, tools and furniture Prepayments and work-in-progress

156,801 437,596 123,979 41,138

Other items of property, plant and equipment 222,713

Cost 982,227

Impairment (11,018)

1,624 57,229 10,213 2,593 38,300 109,959 (1,443)

(5,975) (30,633) (6,491) (4,259)

30,754

8,028

847

192,079

(2,260)

31,725

(15,745)

477,912

(2,788)

41,686

(1,257)

165,342

(33,737)

(1,790)

3,945

(22,300)

(3,760)

(69,658)

(11,791)

250 81,689

(6,772)

228,431

(24,717) 1,067,709

Impairment (11,018)

(1,443)

Land and buildings (82,643)

(3,784)Plant and machinery

(322,105)

Other installations, tools and furniture

(87,155)

Other items of property, plant and equipment(145,132)

(45,430) (13,455) (31,033)

Accumulated amortisation

TOTAL

(637,035) 334,174

(93,702) 14,814

584 584 2,171 31,071 2,731 6,991 42,964 (26,110)

(1,037)

(42,850)

(1,482) (57,246)

(1,037)

(42,850)

(1,482) (57,246)

(483) 5,298 4,360 (768) 8,407

(3,192) (6,063)

(7) (87,938)

(14,116)

(177)

(23,548)

7,834 319 2,376 10,522

(329,395)

(107,316)

(167,743)

(4,421)

15,291

(15,677)

(692,392) 318,071

In 2019, the increase in plant and machinery and other property, plant and equipment was due mainly to the continuation of various projects in Colombia.

The decreases due to reclassifications and transfers were mainly due to the initial application of IFRS 16, which involved transferring the balance of property, plant and equipment accounts to rights of use on leased assets.

Lastly, the decreases in the scope of consolidation were mainly due to the sale of the companies Sacyr Industrial Renovables, S.L., Compañía Energética de Linares, S.L., Compañía Orujera de Linares, S.L., Bioeléctrica de Linares, S.L., Puente Genil, S.L., Compañía Energética La Roda, S.L., Compañía Energética Puente del Obispo, S.L, Compañía Energética Pata de Mulo, S.L., Compañía Energética Las Villas, S.L. and Secaderos de la Biomasa, S.L., all of which belong to the Group's industrial area, and the classification of the Group's interest in Autopista del Guadalmedina Concesionaria Española, S.A. as non-current assets and liabilities held for sale.

In 2020, the increase in plant and machinery and other property, plant and equipment were again due mainly to the progress of various projects in Colombia and new projects in the United States.

Impairment losses and the corresponding reversals are reported under "Change in provisions for non-current assets" in the separate consolidated income statement. The main assets affected by impairment losses relate to plant at the Group's different energy plants.

The detail of property, plant and equipment located outside Spain at 31 December 2019 and 2020 is as follows:

2019

Thousands of euros

PortugalLibyaUSAngolaItalyCape VerdeChileIrelandMexicoColombiaAustraliaOtherTOTAL

Land and buildings Plant and machinery

41,010

68,071

Other installations, tools and furniture Prepayments and work-in-progress

15,616

Other items of property, plant and equipment 15,234

Cost Impairment

139,931 (6,808)

Accumulated amortisation TOTAL

(100,091)

666 8,169 117 0 5,833 14,785 0 (14,525)

3,300

2,828

3,706

446

4,760

56,777

15,138

5,477

7,783

4,694

6,533

148

21,300

64,700

1,252

3,589

206,854

3,177

1,254

5,163

1,075

3,609

389

10,319

2,312

43,076

126

5,205

31,778

231

37,352

1,738 20,179

1,226 11,257

2,041 14,987

1,051 9,648

2,293 12,453

39 3,934

374 22,075

32,824 113,494

29 37,823

1,983 8,158

64,665 408,724

33,032

260

0 (2,556) 17,623

(548)

(469)

(8,051) (11,020)

(6,901) (10,244)

2,658

3,967

2,278

2,209

0 (2,573) 1,361

0 (19,311)

2,764

0 (43,213) 70,281

0 (105) 37,718

0 (2,388) 5,770

(7,825)

(220,978) 179,921

2020

Portugal

LibyaUSAngolaItaly

Thousands of euros

Cape VerdeChileIrelandMexicoColombiaAustraliaOtherTOTAL

Land and buildings Plant and machinery

36,039

63,365

Other installations, tools and furniture Prepayments and work-in-progress

15,489

Other items of property, plant and equipment 14,391

Cost Impairment

129,284 (6,331)

638 7,829 112 0 5,591 14,170 0

2,900

2,485

8,532

3,706

454

36,526

212

91,492

29,564

5,098

7,806

4,370

40,289

148

6,123

50,538

1,264

6,100

222,494

2,916

1,244

4,995

1,066

50,973

380

6,105

3,925

87,261

115

587

714

1,934 34,529

1,158 10,400

2,137 14,938

993 8,914

4,196 103,991

40 3,935

388 6,901

20,705 77,803

1,234 39,626

2,364 12,601

55,131 457,092

Accumulated amortisation TOTAL

(95,200) (14,170)

27,753

0 (5,955) 28,574

(509)

(437)

(45,369)

(7,657) (12,038)

2,234

2,900

(6,563) 1,914

(34,717) (2,760)

0 (6,306)

23,905

1,175

595

0 (55,911) 21,892

0 (2,365) 37,261

0 (3,604) 8,997

(52,646)

(247,246) 157,200

At year-end 2020, the Group had 300,826 thousand euros of fully depreciated property, plant and equipment in use (252,399 thousand euros in 2019).

All items of property, plant and equipment are used in operations.

In 2020 and 2019, no finance costs were capitalised as an addition to property, plant and equipment.

Group companies take out insurance policies to adequately cover potential risks that could affect the items recognised under "Property, plant and equipment".

6. Leases

The movement for 2019 and 2020 is broken down as follows:

Thousands of euros

Land and buildings Plant and machinery

Other installations, tools and furniture Transport equipment

Balance at 1-Jan-19 63,071 21,762 1,929 33,957

Changes in scope of consolidation

Exchange rate effect

Balance at 31-Dec-19

9,973

(1,815)

(11,694)

(8) 59,527

9,103

(404)

(5,972)

(38) 24,451

1,177

(753)

0 2,353

21,694

(1,080)

(9,066)

(183) 45,322
Other items of property, plant and equipment 1,184
Total rights of use Lease liabilities
121,903 121,335
3,222 45,169 48,475
(250)
(757)
(3,549) (1,482)
(28,242) (39,524)
0 0 0
0 3,399
(229) 135,052
(170) 128,634

Thousands of euros 31-Dec-19

Balance at

Additions

Disposals

DepreciationChanges in scope ofExchange rate effectBalance at 31-Dec-20

Land and buildings 59,527

6,294

(3,909)

(11,536)

572

(745) 50,203

Plant and machinery 24,451

11,447

(12,160)

(4,870)

(37) 18,831

Other installations, tools and furniture 2,353

1,278

(1,674)

0 1,956

Transport equipment 45,322

21,647

(3,374)

(10,116)

186

(51) 53,614

Other items of property, plant and equipment 3,399

Total rights of use Lease liabilities

135,052 128,634

640 41,305 29,231

(34)

(871)

(19,477) (3,526)

(29,066) (38,097)

0 758 806

(27) 3,107

(859) 127,712 (734) 116,312

In 2019, the main movement under this heading relates to the recognition of the underlying assets of operating leases amounting to 75,200 thousand euros upon the entry into force of the new standard, which regulates the accounting treatment of leases, IFRS 16. In addition, the assets associated with finance leases recognised in the balance sheet at 31 December 2018, amounting to approximately 46,703 thousand euros, were reclassified to this new heading of "Rights of use".

At 31 December 2019 and 2020 the balance of liabilities associated with lease contracts is as follows:

2020	2019
Thousands of euros
Non-current lease obligations	85,573	90,296
Current lease obligations	30,739	38,338
TOTAL	116,312	128,634

7. Concession projects

Movements in the various items under "Concession projects" in 2019 and 2020 and the related accumulated depreciation were as follows:

2019

Thousands of euros

Balance at 31-Dec-18

AdditionsDisposalsRestatements and transfersChanges in scope ofExchange rate effectBalance at 31-Dec-19

Concession projects

1,855,751

Concession projects under construction Cost

31,522 1,887,273

Impairment Impairment Depreciation Accumulated amortisation TOTAL

(8,258)

16,339 18,988 35,327 0 0

(453)

14,128

0 (453)

0 14,128

(518,380) (25,743)

(3,985) (1,202)

1,363,400

23,565

(544,123)

(5,187) 1,386,965

(525,359)

(61,436)

(525,359) 1,353,656

(61,436)

(26,109)

508 508 10,133 10,133 10,188

(285)

(9,903)

(9,903) 3,940

0 0 84,229 84,229 (459,894)

0 (8,035)

86 (502,250)

(5,101)

876,680

2020

Thousands of euros

Balance at 31-Dec-19

Additions

Disposals

Restatements and transfers

Changes in scope ofExchange rate effect

Balance at 31-Dec-20

Concession projects

1,363,400

Concession projects under construction Cost

23,565 1,386,965

Impairment Impairment Depreciation Accumulated amortisation TOTAL

(8,035)

2,455 55,463 57,918 0 0

(255)

0 (255)

3,237 (3,057)

1,536

(3,118)

1,367,255

(1,351)

180 0 0

(502,250)

(51,168)

(635)

(172)

(502,250) 876,680

(51,168)

(635)

(172)

6,750

(2,241)

0 1,536 0 0 0 0 1,536

941

76,912

(2,177) 1,444,167

0 (9,386)

276 (553,949)

(1,901)

880,832

In 2019, the decreases due to changes in the scope of consolidation related mainly to Autopista del Guadalmedina Concesionaria Española, S.A., as explained in Note 4 ("Non-current assets held for sale and liabilities associated with non-current assets held for sale"), and to the sale of Somague Ambiente in Portugal.

In 2020, the main increases were in "Concession projects under construction", corresponding mainly to investment to various projects in Spain and Chile.

The concession projects under construction or being operated by the Group's concessionaire companies at the reporting dates in 2020 and 2019 are as follows:

2019

Operation

Thousands of euros

CostAccum. amortisationProvisionNet

CostConstruction Provision

Net

Viastur Conc. del Principado de Asturias, S.A. Aut. del Eresma. Cons. Junta Castilla y Leon, S.A. Aut. del Barbanza Conc. Xunta de Galicia, S.A. Aut. Del Arlanzón, S.A.

123,360

(59,716)

63,644

0 0

106,383

(34,137)

72,246

0 0

110,425

(40,859)

69,566

0 0

245,550

(117,534)

128,016

0 0

S.C. de Palma de Manacor, S.A.

173,196

(74,639)

98,557

0 0

Autov. del Turia, Conc. Generalitat Valenciana S.A Total motorways in Spain

S.C. Ruta del Limarí, S.A. S.C. Ruta del Elqui, S.A.

Total other motorways

260,540 1,019,45461,205 0 61,205

(80,728)

(407,613)

(1,421)

0 00 0 0

179,812 611,84159,784 0 59,784

2,182 2,1820 10,468 10,468

0 2,182

02,182

0 10,468

M otorways

(409,034)

Valoriza Servicios Medioambientales, S.A. Tratamientos de Residuos La Rioja, S.L. Biorreciclaje de Cádiz, S.A.

41,591

(17,937)

23,654

3,057

0 3,057

4,491

(1,892)

2,599

0 0

25,401

(7,182)

18,219

0 0

Waste treatment

(27,011)

Empresa Mixta Aguas Santa Cruz de Tenerife, S.A. Sacyr, S.A.U . Alcudia desalination plant

59,906

(33,187)

(285)

26,434

0 0

1,367

(841)

526

0 0

Aguas del Valle del Guadiaro, S.L. Sacyr Agua, S.L.

50,593

(7,327)

43,266

0 0

40,847

(13,628)

27,219

0 0

W at er

(54,983)

Somague SGPS

300

(163)

137

0 0

Sociedad Concesionaria Aeropuerto del Sur, S.A. Sociedad Concesionaria Aeropuerto de Arica, S.A. Sacyr Construccion Aparcamiento Plaza del Milenio, S.L. Sacyr Construccion Aparcamiento Virgen del Romero, S.L. Sacyr Construccion Aparcamiento Daoiz y Velarde, S.L. Sacyr Construccion Aparcamientos Juan Esplandiu, S.L. Sacyr Construccion Plaza de la Encarnacion, S.L.

4,283

0 4,283

1,877

0 1,877

3,028

(438)

(2,274)

316

0 0

30,069

(5,972)

(1,359)

22,738

0 0

5,065

(485)

4,580

0 0

4,005

(860)

(2,333)

812

0 0

14,022

(3,034)

10,988

1,700

Sacyr Construcción Mercado del Val, S.L.

2,050

(267)

(1,783)

0 0

1,700 0

Other

CONCESSION PROJECTS

(11,219)

1,363,394

(502,247)

(8,034)

853,113

23,567

0 23,567

2020

Operation

Thousands of euros

CostAccum. amortisationProvisionNet

CostConstruction Provision

Net

Viastur Conc. del Principado de Asturias, S.A. Aut. del Eresma. Cons. Junta Castilla y Leon, S.A. Aut. del Barbanza Conc. Xunta de Galicia, S.A. Aut. Del Arlanzón, S.A.

123,360

(63,727)

0 59,633

106,383

(37,120)

0 69,263

110,425

(44,436)

0 65,989

245,550

(134,434)

0 111,116

S.C. de Palma de Manacor, S.A.

173,196

(78,825)

0 94,371

Autov. del Turia, Conc. Generalitat Valenciana S.A Total motorways in Spain

260,540 1,019,454

(88,205)

0 172,335

(446,747)

0 572,707

S.C. Ruta del Limarí, S.A. S.C. Ruta del Elqui, S.A.

59,269

(2,321)

0 56,948

Total other motorways Motorways

Valoriza Servicios Medioambientales, S.A. Tratamientos de Residuos La Rioja, S.L. Biorreciclaje de Cádiz, S.A.

0 59,269 1,078,723 45,088 4,655 25,401

(2,321)

0 56,948

(449,068) (20,905) (2,131) (7,782)

Waste treatment

75,144

(30,818)

Empresa Mixta Aguas Santa Cruz de Tenerife, S.A. Sacyr, S.A.U. Alcudia desalination plant

59,906

(35,563)

1,363

(946)

Aguas del Valle del Guadiaro, S.L.

50,967

(8,660)

Sacyr Agua Chile Servicios Sanitarios, S.P.A. Sacyr Agua, S.L.

1,406

41,139

(15,790)

Water

154,781

(60,959)

Somague SGPS

300

(176)

3,028

(448)

4,648

(1,129)

5,065

(623)

4,005

(888)

39,505

(9,570)

2,050

(267)

Other

CONCESSION PROJECTS

58,601 1,367,249

(13,101)

(553,946)

(9,385) 803,918

0	0	0
0	0	0
0	0	0
0	0	0
0	0	0
28,898	0	28,898
28,898	0	28,898
0	0	0
17,953	0	17,953
17,953	0	17,953
46,851	0	46,851
256	0	256
0	0	0
0	0	0
256	0	256
0	0	0
0	0	0
0	0	0
0	0	0
0	0	0
0	0	0
0	0	0
16,636	0	16,636
6,330	0	6,330
0	0	0
0	0	0
0	0	0
0	0	0
6,841	0	6,841
0	0	0
29,807	0	29,807
76,914	0	76,914

Concession projects under construction include interest on the borrowings that effectively finance investment in the motorway concerned. These finance costs were capitalised under "Concession projects under construction". "Concession projects in operation" also includes interest capitalised by the concessionaire companies.

The Group performs impairment tests on its concession assets, with the breakdown of the most significant being the following: a) Autovía de Barbanza Concesionaria Xunta de Galicia, S.A.:

With regard to the company Autovía del Barbanza, Concesionaria de la Xunta de Galicia, S.A., the Group performed impairment tests at year-end 2019 and 2020. The agreement signed in October 2019 and the future optimisation of financial leasing expected from 2029 were considered in both cases. The 2020 test reinvestment curve considered that 80% of the CAPEX assigned for replacement of aggregates considered in the 2019 impairment test would be performed between 2021 and 2027. This adjustment is based on there being lower traffic on the motorway. The traffic curves and growth estimates in the 2020 test considered the mobility restrictions resulting from the COVID-19 pandemic during the year. Traffic is assumed to grow in 2021 and 2023, with use of the infrastructure returning to 2019 levels in 2022. Traffic growth is then expected to continue with the traffic levels considered in the 2019 analysis being reached in 2027. This growth is then expected to slow over the remaining life of the concession. The 2020 and 2021 tolls have been updated in the 2020 test, already approved. At the end of both years, the recoverable amount estimated was not considered to be less than the carrying amount, so no provision for impairment was recognised.

The values used to perform the impairment test were as follows:

Risk-free (Rf) rate = 1.99% (2.00% in 2019).

Market spread (Ms) = 7.00% (6.50% in 2019). Unleveraged beta = 0.62 (0.58 in 2019).

The calculation of the Ke = Risk-free rate + market spread x leveraged beta.

The calculation of leveraged beta is obtained from the product of unleveraged beta multiplied by 1 plus the ratio of net financial debt to the value of equity for each year, net of the tax effect.

The choice of the dynamic Ke as the discount rate instead of the WACC (weighted average cost of capital) is based on two aspects:

- The concession is an end-of-life asset, accordingly, projections should be made until the end of the concession.
- The debt/equity ratio changes over time. It begins with a very high leverage and ends with an unlevered asset.

There are three key assumptions to take into account in the analyses of the impairment test: inflation, interest rates and traffic.

The value assigned to inflation was determined by taking the consensus of analysts and national and international bodies for the years 2020 to 2025.

In relation to the amount the concession operator will have to pay the banks for interest on the loan granted, in the case of Barbanza 80% of the interest rate is covered by a derivative that mitigates any possible fluctuations in the Euribor projections for the coming years. In this case, the Euribor yield curve used was obtained from the US company Bloomberg in December 2020.

The key assumption on which the calculation of the recoverable amount should be based is traffic levels. The impairment test estimated an average rise in traffic of 4.33% (2.76% in 2019).

b) Viastur Concesionaria del Principado de Asturias, S.A.
The same impairment tests were performed at year-end 2019 and 2020 for the company Viastur Concesionaria del Principado de Asturias, S.A. The agreement signed in February 2018 and the future optimisation of financial leasing expected from 2022 were considered in both cases.
The 2020 test retained the previous restructuring assumption. The 2020 test CAPEX curve considered that 80% of the CAPEX considered in the 2019 impairment test would be performed between 2021 and 2027. This adjustment is based on there being lower traffic on the motorway. In both the 2019 and 2020 tests, recurrent OPEX was estimated expressed in 2018 euros, updated each year by 50 % of the CPI, according to the technical report for the bank restructuring. Traffic was estimated at the end of 2020, considering the mobility restrictions resulting from the COVID-19 pandemic during the year. Traffic is assumed to grow between 2021 and 2023 such that use of the infrastructure will return to 2019 levels in 2022. From 2022, traffic will continue to increase gradually until 2027, when traffic growth will converge with the assumptions used in the 2019 impairment test. At the end of both years, as the recoverable amount was not considered to be less than the carrying amount, no provision for impairment was recognised.
The values used to perform the impairment test were as follows:
Risk-free (Rf) rate = 1.99% (2.00% in 2019).
Market spread (Ms) = 7.00% (6.50% in 2019). Unleveraged beta = 0.62 (0.58 in 2019).
The calculation of the Ke = Risk-free rate + market spread x leveraged beta.
The calculation of leveraged beta is obtained from the product of unleveraged beta multiplied by 1 plus the ratio of net financial debt to the value of equity for each year, net of the tax effect.
The choice of the dynamic Ke as the discount rate instead of the WACC is based on two aspects:
- - The concession is an end-of-life asset, accordingly, projections should be made until the end of the concession.
- - The debt/equity ratio changes over time. It begins with a very high leverage and ends with an unlevered asset.
There are three key assumptions to take into account in the analyses of the impairment test, namely inflation, interest rates and traffic.
The value assigned to inflation was determined by taking the consensus of analysts and national and international bodies for the years 2020 to 2025.
Regarding the amount that the concession operator has to pay to financial entities for interest on the loan extended to it. The Euribor yield curve used was that obtained from the US company Bloomberg in December 2019.
The key assumption on which the calculation of the recoverable amount should be based is traffic levels. The impairment test estimated an average rise in traffic of 3.43% (2.12% in 2019).
c) Autovía del Eresma, Concesionaria de la Junta de Castilla y León, S.A.:

The Group performed impairment tests for the company Autovía del Eresma, Concesionaria de la Junta de Castilla y León, S.A. at year-end 2019 and 2020. The 2020 test retained the reinvestment curve considered in the 2019 impairment test, adjusting CAPEX entries by 80% (-20%) for the period 2021-2026, due to a significant decrease in Average Daily Traffic (ADT) compared to the previous forecast used in the model, resulting in lower infrastructure spending. With regard to OPEX, there were no changes in the operating costs assumed in the 2019 test. In the 2020 test, traffic is assumed to grow such that use of the infrastructure will return to 2019 levels by year-end 2021. Traffic will then continue to increase gradually until 2027, when traffic growth will converge with the assumptions used in the 2019 impairment test. At the end of both years, as the recoverable amount was not considered to be less than the carrying amount, no provision for impairment was recognised.

The values used to perform the impairment test were as follows:

Risk-free (Rf) rate = 1.99% (2.00% in 2019).

Market spread (Ms) = 7.00% (6.50% in 2019). Unleveraged beta = 0.62 (0.58 in 2019).

The calculation of the Ke = Risk-free rate + market spread x leveraged beta.

The calculation of leveraged beta is obtained from the product of unleveraged beta multiplied by 1 plus the ratio of net financial debt to the value of equity for each year, net of the tax effect.

The choice of the dynamic Ke as the discount rate instead of the WACC is based on two aspects:

- The concession is an end-of-life asset, accordingly, projections should be made until the end of the concession.
- The debt/equity ratio changes over time. It begins with a very high leverage and ends with an unlevered asset.

The average value of the Ke discount rate over the life of the concession resulting from applying this method is 10.88%. The average value of this discount rate would have to increase to 11.48% for the carrying amount to equal the recoverable amount. This increase would be derived from increasing the key variables Risk Free Rate (Rf) to 2.18% and the Market Premium (Rm) to 7.20%.

The key assumption on which the calculation of the recoverable amount should be based is traffic levels. In the event of a 2.47% decrease in traffic, the recoverable value would equal its book value.

d) Autovía del Turia, Concesionaria de la Generalitat Valenciana, S.A.:

Impairment tests were also carried out for Autovía del Turia, Concesionaria de la Generalitat Valenciana, S.A. at year-end 2019 and 2020. The 2020 test considered the tolls that will be applied in the Valencia region in 2021. These will be similar to those for 2020, as the change in the annual CPI (August 2019 to August 2020) was -0.5%. As with the 2019 test, in the 2020 test, the toll increases in section 2 were applied for the subsequent years, from 2022 to 2041, irrespective of the updating of the tolls for the CPI, in accordance with the Resolution of the Regional Government of 30 May 2018 approving the new proposed plan for phase II, which was submitted to the regional government of Valencia on 28 September 2017. Traffic figures were updated with the actual traffic in 2020 (projecting the final months of the year). Traffic volumes are expected to return to 2019 levels in 2023 and subsequent years. From 2022, the traffic increases included in the 21 June 2018 Traffic Study by Deloitte as part of the duediligence for the financing of Phase II of the project were applied. The maximum limits for traffic payments are those considered in the approved New Planning Proposal for Phase II works. The amount of the investment in the Phase II works is that of the EPC signed with Sacyr Infraestructuras, S.A., with a distribution of 17.70 million euros in the second half of 2020 and 7.53 million euros in the first half of 2021. The reinvestments planned for the period 2020-2041 are equivalent to those included in the Technical Due Diligence report issued by Steer Davies, within the framework of the Due Diligence of the Phase II Works Financing process. The OPEX for the years 2020 to 2041 was updated by 50% of the CPI. As in the 2019 test, in the 2020 test a new tranche of subordinated debt was considered to cover the financing needs relating to Phase II works, as well as a restructuring of this debt in 2023. At the end of both years, as the recoverable amount was not considered to be less than the recognised carrying amount, no provision for impairment was recognised.

The values used to perform the impairment test were as follows:

Risk-free (Rf) rate = 1.99% (2.00% in 2019).

Market spread (Ms) = 7.00% (6.50% in 2019). Unleveraged beta = 0.62 (0.58 in 2019).

The calculation of the Ke = Risk-free rate + market spread x leveraged beta.

The calculation of leveraged beta is obtained from the product of unleveraged beta multiplied by 1 plus the ratio of net financial debt to the value of equity for each year, net of the tax effect.

The choice of the dynamic Ke as the discount rate instead of the WACC is based on two aspects:

- The concession is an end-of-life asset, accordingly, projections should be made until the end of the concession.
- The debt/equity ratio changes over time. It begins with a very high leverage and ends with an unlevered asset.

The average value of the Ke discount rate over the life of the concession resulting from applying this method is 10.85%. The average value of this discount rate would have to increase to 19.08% for the carrying amount to equal the recoverable amount. This increase would be derived from increasing the key variables Risk Free Rate (Rf) to 4.72% and the Market Premium (Rm) to 9.73%.

The key assumption on which the calculation of the recoverable amount should be based is traffic levels. In the event of a 3.89% decrease in traffic, the recoverable value would equal its book value.

e) Carretera Palma-Manacor Concessionària del Consell Insular de Mallorca, S.A.:

Impairment tests were also carried out for the company Carretera Palma-Manacor Concessionària del Consell Insular de Mallorca, S.A. at year-end 2019 and 2020. Identical CAPEX curves were used in both years. The OPEX figures estimated in 2019 and 2020 were updated taking into account those expected at year-end and in the budget. With regard to traffic, apart from 2019 and 2020, which used the traffic volumes considered at year-end and projected in the budget, respectively, traffic is expected to return to pre-COVID levels in 2023, with a weighting of 2/3 of the recovery in 2021 and 1/3 in 2022. From 2023, the traffic increases in the Traffic Report prepared by Deloitte in September 2017 were applied. With regard to tolls, the 2019 test was updated with the 2019 tolls; the 2020 tolls applied the CPI and the increases in post-2021 tolls were based on current macroeconomic forecasts. The 2020 impairment test also maintains the current financing. At the end of both years, as the recoverable amount was not considered to be less than the carrying amount, no provision for impairment was recognised.

The values used to perform the impairment test were as follows:

Risk-free (Rf) rate = 1.99% (2.00% in 2019).

Market spread (Ms) = 7.00% (6.50% in 2019). Unleveraged beta = 0.62 (0.58 in 2019).

The calculation of the Ke = Risk-free rate + market spread x leveraged beta.

The calculation of leveraged beta is obtained from the product of unleveraged beta multiplied by 1 plus the ratio of net financial debt to the value of equity for each year, net of the tax effect.

The choice of the dynamic Ke as the discount rate instead of the WACC is based on two aspects:

- The concession is an end-of-life asset, accordingly, projections should be made until the end of the concession.
- The debt/equity ratio changes over time. It begins with a very high leverage and ends with an unlevered asset.

The average value of the Ke discount rate over the life of the concession resulting from applying this method is 6.70%. For the carrying amount to equal the recoverable amount, the average value of this discount rate would have to increase to 18.75%. This increase would result from increasing the key variables Risk Free Rate (Rf) to 7.51% and the Market Premium (Rm) to 12.53%.

The key assumption on which the calculation of the recoverable amount should be based is traffic levels. In the event of a 42.58% decrease in traffic, the recoverable value would equal its book value.

f) Autovía del Arlanzón, S.A.:

Impairment tests were also carried out for the company Autovía del Arlanzón, S.A. at year-end 2019 and 2020. Both the CAPEX curve and the curve of expected traffic growth were updated in 2019 with real data and in 2020 with the latest year-end forecasts. From 2021 onwards, the data is adapted according to the best estimates made by the concessionaire, based on the technical analysis of both curves carried out by the technical and traffic consultancy company Steer Davies Gleave (SDG). The depreciation rates of the concession assets, approved by the Administration, have been applied. Adoption continues of the financial conditions of the new financial debt (On Loan contract) signed on 8 February 2018 with Financiera Marsyc, S.A. With regard to the allocation to the separate consolidated income statement of the cost of derivative disruption, this has been adjusted to a non-linear criterion. With respect to the subordinated debt, the formula for payment of the interest accrued has been maintained, so that the interest accrued and due in the year is paid in that year, and there was no debt at the end of the period for this item. The amounts in the reserve accounts have been adjusted to those included in the Financial Model of the refinancing, as well as the amounts considered for the payment of dividends. At the end of both years, as the recoverable amount was not considered to be less than the carrying amount, no provision for impairment was recognised.

The values used to perform the impairment test were as follows:

Risk-free (Rf) rate = 1.99% (2.00% in 2019). Market spread (Ms) = 7.00% (6.50% in 2019). Unleveraged beta = 0.62 (0.58 in 2019).

The calculation of the Ke = Risk-free rate + market spread x leveraged beta.

The calculation of leveraged beta is obtained from the product of unleveraged beta multiplied by 1 plus the ratio of net financial debt to the value of equity for each year, net of the tax effect.

The choice of the dynamic Ke as the discount rate instead of the WACC is based on two aspects:

- The concession is an end-of-life asset, accordingly, projections should be made until the end of the concession.
- The debt/equity ratio changes over time. It begins with a very high leverage and ends with an unlevered asset.

The average value of the Ke discount rate over the life of the concession resulting from applying this method is 8.27%. The average value of this discount rate would have to increase to 28.53% for the carrying amount to equal the recoverable amount. This increase would be derived from increasing the key variables Risk Free Rate (Rf) to 11.44% and the Market Premium (Rm) to 16.45%.

The key assumption on which the calculation of the recoverable amount should be based is traffic levels. In the event of a 5.74% decrease in traffic, the recoverable value would equal its book value.

g) Sociedad Concesionaria Ruta del Limarí, S.A.:

An impairment test was performed for Sociedad Concesionaria Ruta del Limarí, S.A. at the end of 2020. The 2020 test assumed that the tolls for 2021 would be determined in accordance with the tender terms and conditions published by the concession operator. The tolls for 2021 for light vehicles would increase by 100 pesos compared to 2020, as the annual CPI was 2.29%.

In the 2020 test, the tolls for subsequent years, 2022 to 2051, are updated using the CPI. The actual traffic for 2020 was updated (projecting the final months), assuming that traffic would return to 2019 levels in 2022 and subsequent years. From 2022 onwards, the test applied the traffic increases in the 2020 Updated demand projections for the Ruta del Limarí concession report by the company CIPRES Ingeniería Ltda. in the 2020 Ciprés Traffic Study.

The investment in 2020 corresponded to the items Investment in additional works - change of services, other investment, motorway investment and VAT on investment. The OPEX for the current and subsequent years is as set out in the budget.

The values used to perform the impairment test were as follows:

Risk-free rate (Rf) = 3.32%

Market spread (Ms) = 6.50% Unleveraged beta = 0.45

The calculation of the Ke = Risk-free rate + market spread x leveraged beta.

The calculation of leveraged beta is obtained from the product of unleveraged beta multiplied by 1 plus the ratio of net financial debt to the value of equity for each year, net of the tax effect.

The choice of the dynamic Ke as the discount rate instead of the WACC is based on two aspects:

- The concession is an end-of-life asset, accordingly, projections should be made until the end of the concession.
- The debt/equity ratio changes over time. It begins with a very high leverage and ends with an unlevered asset.

The average value of the Ke discount rate over the life of the concession resulting from applying this method is 7.24%. The average value of this discount rate would have to increase to 11.01% for the carrying amount to equal the recoverable amount. This increase would be derived from increasing the key variables Risk Free Rate (Rf) to 3.99% and the Market Premium (Rm) to 9.71%.

h) Plaza de la Encarnación, S.L.

Impairment tests were also carried out for the company Plaza de la Encarnación, S.L. at year-end 2019 and 2020. The 2020 test assumed a 5% monthly increase in visitor traffic to the viewing point in 2021. A recovery to 75% of the revenue from visits to the viewing point compared to 2019 is expected, reaching 100% in 2023. Work on the new hotel is expected to be completed in April 2021, together with the other new activities, coinciding with the tenth anniversary of the Las Setas structure in Seville, which will generate new revenue sources.

Costs are assumed to increase in line with the CPI. From May 2021 there will be additional operating and maintenance costs related to the opening of the new immersive reality room and the LED light show, also resulting in higher costs for personnel and supplies.

CAPEX has been calculated using the financial impairment model from the date of the 2019 capital increase, updated for projections of drawdowns and actual certifications. No additional investments are assumed for this finance contract.

The values used to perform the impairment test were as follows:

Risk-free (Rf) rate = 1.99% (2.00% in 2019).

Market spread (Ms) = 6,50% (6.50% in 2019). Unleveraged beta = 0.47 (0.47 in 2019).

The calculation of the Ke = Risk-free rate + market spread x leveraged beta.

The calculation of leveraged beta is obtained from the product of unleveraged beta multiplied by 1 plus the ratio of net financial debt to the value of equity for each year, net of the tax effect.

The choice of the dynamic Ke as the discount rate instead of the WACC is based on two aspects:

- The concession is an end-of-life asset, accordingly, projections should be made until the end of the concession.
- The debt/equity ratio changes over time. It begins with a very high leverage and ends with an unlevered asset.

The average value of the Ke discount rate over the life of the concession resulting from applying this method is 5.27%. The average value of this discount rate would have to increase to 24.74% for the carrying amount to equal the recoverable amount. This increase would be derived from increasing the key variables Risk Free Rate (Rf) to 11.52% and the Market Premium (Rm) to 16.03%.

The key assumption on which the calculation of the recoverable amount should be based is the level of demand.

The accrued capitalised borrowing costs, concession periods and investments committed are as follows:

Capitalised finance costs

Concession period

2020

2019

Date put into serviceEnd of concession

Committed investment (thousands of euros)

Motorways

Aut. del Eresma. Cons. Junta Castilla y Leon, S.A. Aut. del Barbanza Conc. Xunta de Galicia, S.A. Autop. del Guadalmedina Conc. Española, S.A. Viastur Conc. del Principado de Asturias, S.A. Autovía del Arlanzón, S.A.

4,557

2008

2041 0

5,478

2008

2036 0

8,547

2011

2044 0

4,537

2007

2035 0

4,214

2011

2026 0

S.C. de Palma de Manacor, S.A.

4,642

2007

2042 0

Aut. del Turia, Conc. Generalitat Valenciana, S.A S.C. Ruta del Limarí, S.A.

7,892

2008

2041 10,734

3,357

2018

2044 2,650

S.C. Ruta del Elqui, S.A.

2027

2032 394,811

Waste treatment

Valoriza Servicios Medioambientales, S.A.

Las Calandrias waste treatment plant Guadarrama green areas Puertollano car park Majadahonda SUW

2002

2022 0

2008

2022 0

2011

2045 0

2012

2022 0

Los Hornillos waste treatment centre Maresme integrated waste treatment centre Edar Cariño water treatment plant Butarque thermal sludge-drying plant La Paloma plant

25,353

22,040

2011

2030 0

2007

2024 0

2006

2026 0

705

2002

2019 0

2003

2023 0

La Rioja waste treatment

476

2009

2029 0

Water

Emp. Mixta Aguas S. Cruz de Tenerife, S.A. Sacyr Agua, S.L.

2006

2031 0

Guadalajara water concession Almaden water concession Valdaliga concession

2009

2034

5,799

2010

2035 0

2012

2025 151

Concesión de Abastecimiento Biar Aguas del Valle del Guadiaro, S.L.U.

2019

2039 768

2003

2053 0

Other

Plaza del Milenio, S.L.

2011

2051 0

Aparcamiento Virgen del Romero, S.L. Aparcamiento Daoiz y Velarde, S.L. Aparcamientos Juan Esplandiú, S.L. Plaza de la Encarnación, S.L. Mercado del Val, S.L.

2011

2049 0

2016

2056 0

2011

2049 0

306

2011

2014

2051 2032

3,286 0

S.C. Aeropuerto del Sur, S.A. S.C. Aeropuerto de Arica, S.A.

2021

2024 14,210

2023

2034 37,480

At 31 December 2019 and 2020, none of the items reported by Group companies under "Concession projects" were subject to guarantees, other than the terms of the project financing, or to ownership restrictions.

At 31 December 2019 and 2020, the entire investment recognised under "Concession projects" relates to returnable assets that Group companies will transfer back to the concession grantors upon expiry of the concession period, as per the specific concession agreements. These companies do not expect to incur any additional costs on the reversion of the infrastructures at the end of the concession periods, other than those already budgeted in the relevant economic and financial plans.

Group companies take out insurance policies to adequately cover potential risks that could affect the items recognised under "Concession projects".

There are no significant undertakings to make repairs now or in the future other than those that are usual for this type of company.

8. Other intangible assets

Movements in "Other intangible assets" in 2019 and 2020 and the related accumulated amortisation were as follows:

2019

Thousands of euros

Industrial property Goodwill Development costs Transfer rights Computer software Other intangible assets Down payments

Greenhouse gas emission rights Cost

Impairment Impairment Industrial property Goodwill

Other intangible assets Transfer rights Computer software Accumulated amortisation TOTAL

2020

Thousands of euros Industrial property Goodwill Development costs Transfer rights Computer software Other intangible assets Down payments

Cost Impairment Impairment Industrial property Goodwill

Other intangible assets Transfer rights Computer software Accumulated amortisation TOTAL

Balance at 31-Dec-18

AdditionsDisposals

7,347

2,059

71,263

8,090

193

34,363

3,458

11,094

(1,696)

3,154

4,767

0 137,370 0 0

0 6,767

0 0

(4,693)

(314)

(708)

(487)

(73,147)

(1,427)

(3,554)

(192)

(29,364)

(2,005)

(111,466)

25,904

(4,425) 2,342

Balance at 31-Dec-19

8,538

2,059

71,263

7,310

361

35,421

4,587

9,370

811 134,772

(116)

1,346 6,372 14 14

(4,952)

(379)

(1,181)

(473)

(74,568)

(577)

(3,317)

(275)

(29,066)

(2,335)

(113,084)

21,572

(4,039) 2,347

There were no significant changes in 2019 and 2020.

Restatements and transfersChanges in scope of consolidation

Exchange rate effectBalance at 31-Dec-19

(1,142)

2,300

(12)

8,538

2,059

71,263

(1,470)

1,340

(840)

(3)

7,310

(982)

(1,335)

(70)

(13)

35,421

(28)

9,370

(1,367)

(5,743)

811

0 (4,961)

0 (3,438)

0 (922)

0 (44)

0 134,772

(116)

0 0

(116)

722

(671)

(4,952)

(1,181)

(74,568)

1,475

(1,494)

448

(3,317)

984 3,195 (1,882)

1,242 (923)

68 520 (402)

9 15 (29)

(29,066)

(113,084)

(4,361)

21,572

Restatements and transfersChanges in scope ofExchange rate effectBalance at 31 December

(29)

6,625

224

15,436

2,059

71,263

(568)

(1,581)

5,226

174

10,922

(214)

2,110

(27)

41,877

(1,118)

8,308

(2,149)

(220)

(586)

(57)

0 11,851 0 0

9 436 0 0

1,360 151,225

0 0

(102)

(11)

(193)

(7)

(5,542)

(1,654)

(20)

(75,165)

1,544

(2,046)

367 356 (1,793)

(1,488)

0 (193) 11,658

15 (10) 426

(32,507)

56 (1)

(116,914)

34,209

The detail of intangible assets located outside Spain at 31 December 2019 and 2020 is as follows:

2019

Thousands of euros

PortugalLibyaChileIrelandItaly

OtherTOTAL

Industrial property Development costs Transfer rights Computer software Cost

Accumulated amortisation TOTAL

105 0 0 16 121 (120)

0 0 0 98 98 (98)

0 0 0 142 142 (132)

0 0 0 6 6 (6)

0 0 0 18 18 (8)

0 105

1 1

52 52

152 432

205 590

(84) (448)

121

142

2020

Thousands of euros

PortugalLibyaChileIrelandItaly

OtherTOTAL

Industrial property Development costs Transfer rights Computer software Down payments Cost

105

6,849

0 1

6,954 1

5,403

49 5,452

127 347

Accumulated amortisation

0 127 (123)

0 94 (94)

0 12,332 (297)

0 6 (6)

0 18 (12)

1,054 1,054

1,231 13,808

(99) (631)

TOTAL

12,035

1,132

13,177

At 31 December 2020 and 2019 fully amortised intangible assets in use totalled 80,575 thousand and 80,802 thousand euros, respectively.

9. Goodwill

9.1. Movements

Movements in "Goodwill" in 2019 and 2020 were as follows:

2019

Thousands of euros

Services Group

98,804

Valoriza Servicios Medioambientales Suardiaz

94,987

1,337

Hidurbe

633

Aguas do Marco

1,847

0 0 0 0 0

(2,480)

3 96,327

0 94,987

0 (633) (1,847)

3 1,340

0 0

Industrial Group

Sacyr Fluor

TOTAL

67,829 67,829 166,633

0 0 0

(67,829) 0

0 (2,480)

(67,829) 0

(67,826)

96,327

2020

Thousands of euros

Services Group

Valoriza Servicios Medioambientales Suardiaz

TOTAL

96,327 94,987 1,340 96,327

0 0 0 0

(179) 96,148

0 94,987

(179) 1,161

(179) 96,148

In 2019, there was total impairment of the Group's goodwill in relation to Sacyr Fluor, since the recoverable amount was lower than the carrying amount.

There were no significant changes in 2020.

9.2. Impairment test of goodwill

At each reporting date, the Group performs an impairment test on each cash-generating unit to which goodwill has been assigned. An analysis is performed in order to identify the recoverable amount. Recoverable amount is the higher of the asset's fair value less costs to sell and value in use. Fair value is defined as the price for which a company could be sold between knowledgeable, willing parties in an arm's length transaction.

The recoverable amount of each cash-generating unit determined by this method is then compared to its carrying amount. Where the recoverable amount is less than the carrying amount, an irreversible impairment loss is recognised in the separate consolidated income statement.

Where the recoverable amount cannot be measured reliably (usually because the company is not listed on an organised financial market), it is assessed using other valuation methods.

Goodwill is valued by discounting forecast future cash flows to their present value at a discount rate that reflects the time value of money and the risks specific to the asset.

a) Goodwill of Valoriza Servicios Medioambientales

Valoriza Servicios Medioambientales (VSM) projects the cash flows of all projects currently in its backlog until the end of their concession term. The cash flows of each project carry the value of the assets of each project until they end (concession projects, accounts receivable for concession assets, property, plant and equipment, etc.).

The flows are based on the company's budgets, and on the best performance estimate of these contracts until maturity, in conformity with the contracts signed with customers, normally from the public sector. Values do reflect past experiences, as urban service contracts are usually quite stable. Normally a fee is charged to the customer, reviewable on the basis of a series of parameters (personnel costs, fuel, CPI) associated with operating costs, and our experience indicates that there is usually a notable improvement in margins when the contracts reach maturity (more efficient service, stability and improved collection, use of synergies and other services in the area).

In order to prepare cash flows for the goodwill impairment test, the company adds the flows of all its individual projects. From a certain year onwards, the flows reflect the completion of certain contracts but they do not show the inclusion of new contracts. That is, in the projection of the total flows of VSM, only the contracts in force for the first five years have been considered, without including new awards. Therefore, in year five a perpetual income is assumed, which reflects the value of continuity of the company, of contracting new contracts, which replace expiring contracts. This assumption reflects the company's past reality. In 2010-2020, the pace of growth in contracts for Valoriza Servicios Medioambientales remained strong, reaching a backlog of 1,799 million euros. Accordingly, the perpetual income in year five to validate goodwill does not represent a residual value, since the company has contracts in its portfolio with terms far exceeding five years (service concessions usually last 8-10 years in the area of cleaning and collection, and 10-15 years in the waste services area). But year five is considered to reflect the appropriate time to assign a value to the company based on perpetual income, given that the non-inclusion of new contracts would distort the company's value in use. The percentage of the residual value with respect to the recoverable amount obtained in this way is 73%.

Accordingly, the key assumptions used in the goodwill impairment test are as follows:

a. Discount rate
b. Perpetual growth rate from year five

An analysis was performed on the variations in the key variables in the goodwill impairment test in 2019 and 2020. It was established that with a perpetual growth rate of between 1% and 2% the company's valuation fluctuates by between -12.2% and 1.5%, without the value of the asset being impaired in any case.

Varying the discount rate between 6.0% and 7.0%, the company's valuation ranged between +13.7% and -6.6%, without giving rise to asset impairment at any time.

The estimated cash flow projections are based on the budgets approved by company management, using a discount rate of 6.63% (6.63% at 31 December 2019).

b) Goodwill of Sacyr Fluor

The Company's management engaged an independent expert to perform an impairment test of the goodwill allocated to the cash generating unit (CGU) "Sacyr Fluor", which specialises in comprehensive design and engineering services, project management, procurement, construction, manufacturing, start-up and operation and maintenance for oil and gas projects (upstream, midstream and downstream).

It was considered that the most reasonable method of estimating the value of Sacyr Fluor, S.A. and its subsidiaries was the discounted cash flow "DFC" method, which is a dynamic valuation method based on the updating of the free cash flows estimated to be generated by the companies, consistently with the principle of transforming income into value. The estimated cash flow projections were based on the six-year Business Plan approved by the company's management.

The following information was used to prepare the future cash flows:

 Contributory financial statements of the Sacyr Fluor subgroup for the years 2016, 2017, 2018 and 2019.
 Six-year Business Plan for the years 2020 to 2025, both inclusive.
 The Company's 2019 year-end presentation.
 Projection matrix of projects in the backlog and future opportunities.
 Audited individual financial statements and audit report of Sacyr Fluor for the years 2016, 2017 and 2018.

In order to prepare cash flows for the goodwill impairment test, this method requires certain core parameters to be determined, such as:

 Income to be updated (estimated free cash flows).
 Discount rate.
 Perpetual growth rate from year six.

The income to be discounted is normally projected into the future for a period of between five and ten years, depending on the business cycle and the ability to make reasonable estimates of it in the long term. In this case, it was considered reasonable to value the company by discounting the cash flow projections from its six-year business plan to present value.

The viability and business plan of Sacyr Fluor, S.A. were based on the opportunities identified by the shareholders in Portugal, Germany, France and South America, specifically in Colombia and Peru.

The discount rate was determined as the minimum return required from the Company and was calculated as the weighted average cost of capital ("WACC") of the different sources of financing available to the Company, using a discount rate of 13.4% (9% as of 31 December 2018) and a perpetual growth rate of 1% (4.5% at 31 December 2018).

The parent company engaged an independent expert to carry out a valuation of Sacyr Fluor to determine the recoverable value of the investment. As a result of this, a valuation range was obtained for the value in use of the net assets. From this, the parent company concluded that the recoverable value determined was within the range of amounts obtained.

As a result of the study carried out, and taking into account all the considerations included and cited above, the range of the value in use of Sacyr Fluor's net assets as at 31 December 2019 would be between 4,615 and 8,083 thousand euros. This range was obtained using a discount rate between 11.9% and 14.9%, and a perpetual growth rate between 0.5% and 1.5%.

In accordance with IFRS 3 on Business Combinations, goodwill must be tested for impairment at least annually by comparing the recoverable amount of the asset ("cash-generating unit" or "CGU") with its carrying amount. The carrying amount of the cash generating unit was estimated at 72,455 thousand euros at 31 December 2019. Considering the recoverable amount as the result of the discounted cash flow valuation of Sacyr Flúor's equity, with a range of between 4,615 thousand and 8,083 thousand euros, and with a central point of the estimate of 6,067 thousand euros, the impairment test gave the following results:

Lower range	Middle range	Upper range
Thousands of euros
(+) Amount recoverable through DCRL (100%)	4,615	6,067	8,083
(-) CGU carrying amount	(72,455)	(72,455)	(72,455)
Impairment loss	(67,840)	(66,388)	(64,372)

Therefore, the impairment test on Sacyr Flúor's goodwill revealed impairment of between 64,372 thousand to 67,840 thousand euros. As a result of this analysis, the management of the parent company considered that there was sufficient objective evidence to recognise in 2019 impairment of 100% of the consolidation goodwill allocated to Sacyr Flúor, and recognised an impairment loss of 67,829 thousand euros in the consolidated income statement at 31 December 2019. The overall worldwide decline in construction and engineering services activity, as well as current economic uncertainties, have led to a decrease in demand, the loss of opportunities in projects with a high probability of being contracted and a delay and/or cancellation of major tenders in the oil and gas sector.

The Group performed sensitivity analysis for the discount rate of +/-0.5%. A change in the discount rate of -0.5% implies a 12% increase in the valuation; while a change of +0.5% implies a 11% reduction in the valuation, with no change in the results of the valuation of the asset.

The Group performed sensitivity analysis for the perpetual growth rate of +/-0.5%. A change in the growth rate "g" of -0.5% implies a 5% decrease in the valuation, while a change of +0.5% implies a 5% increase in the valuation, with no change in the results of the valuation of the asset.

10. Investments accounted for using the equity method

Under IAS 28 (paragraphs 29 and 30), once the value of an investment in companies accounted for using the equity method is zero, any additional losses are recorded by the Group as non-current provisions, insofar as it has incurred any legal or constructive obligations.

Movements in this heading in 2019 and 2020 were as follows:

Balance at
31 December 2018
Thousands of euros
AC Technology, S.A.S.	0	0	2	0	0	4	0	0	6
Biomasas del Pirineo, S.A.	34	0	0	0	0	0	0	0	34
Camarate Golf, S.A.	610	0	(129)	0	0	(279)	0	0	202
Circuitus, Ltd	0	12,132	(2,975)	0	0	0	0	0	9,157
Concesionaria AP-1 Araba, S.A.	67	0	49	0	0	53	0	0	169
Consorcio Stabile VIS Societá C.P.A.	66	0	0	0	0	0	0	0	66
Cultivos Energéticos de Castilla, S.A.	0	0	(1)	0	0	(2)	0	0	(3)
Desarrollo Vial al Mar, S.A.S.	19,310	0	3,110	0	0	(2,347)	0	0	20,073
Enervalor Naval, S.L.	20	0	0	0	0	0	0	0	20
Eurolink S.C.P.A.	7,013	0	0	0	0	0	0	0	7,013
Finsa, S.R.L.	0	0	167	0	0	(112)	0	0	55
Geida Skikda, S.L.	6,464	0	1,347	0	(1,163)	(1)	0	0	6,647
Geida Tlemcen, S.L.	18,038	0	4,569	0	(4,601)	563	0	0	18,569
Grupo Unidos por el Canal, S.A.	0	0	0	0	0	371	0	0	371
GSA - Gestao de Sitemas Ambientais, S.A.	153	(200)	47	0	0	0	0	0	0
H.S.E. - Empreendimentos Imobiliários, Lda	1	0	0	0	0	(1)	0	0	0
Infoser Estacionamiento Regulado, A.I.E.	66	0	0	0	0	0	0	0	66
Iniciativas Medioambientales del Sur, S.L.	136	0	0	0	0	0	0	0	136
N6 Concession Ltd	221	0	0	0	0	(380)	0	0	(159)
Operadora Avo, S.A.	15	0	(1)	0	0	(1)	0	0	13
Parque Eólico La Sotonera, S.L.	2,661	0	320	0	(581)	0	0	0	2,400
Pazo de Congreso de Vigo, S.A.	2,165	0	0	0	0	0	0	(1,307)	858
Plataforma por la Movilidad, A.I.E.	0	0	15	0	0	0	0	0	15
Procesador de Información del Servicio de Aseo, S.A.S.	51	0	14	0	0	(7)	0	0	58
Repsol, S.A.	2,021,861	0	(315,255)	43,032	(113,992)	73,546	83	0	1,709,275
Sociedad Concesionaria Vespucio Oriente, S.A.	62,631	0	2,240	0	0	(14,903)	0	0	49,968
Somague Panama	8	0	0	0	0	0	0	0	8
Valdemingómez 2000, S.A.	765	0	914	0	0	(207)	0	0	1,472
Grupo Via Central, S.A.	0	8,951	(1,489)	0	0	0	0	0	7,462
Via Expresso	9,346	0	1,981	0	0	(1,849)	0	(4,433)	5,045
Associates	2,151,702	20,883	(305,075)	43,032	(120,337)	54,448	83	(5,740)	1,838,996
Compost del Pirineo, S.A.	24	0	(15)	0	0	0	0	0	9
Constructora ACS-Sacyr, S.A.	43	0	0	0	0	3	0	0	46
Constructora Necso Sacyr, S.A.	7	0	0	0	0	5	0	0	12
Constructora San Jose-San Ramon, S.A.	46	0	0	0	0	5	0	0	51
Constructora. San Jose - Caldera, S.A.	1	0	0	0	0	(47)	0	(16)	(62)
Constructora Vespuciio Oriente, S.A.	124	0	673	0	0	(89)	0	0	708
Desarrollos Eólicos Extremeños, S.L.	684	0	(12)	0	0	0	0	0	672
GSJ Maintenance Ltd	1,459	0	893	0	0	(1,393)	0	0	959
Metrofangs, S.L.	2,815	0	77	0	0	8	0	0	2,900
N6 Operations Ltd	404	0	587	0	0	(500)	0	0	491
NDP, S.C.P.A.	1	0	0	0	0	(1)	0	0	0
Tecnologias Extremeñas del Litio, S.L.	3	0	0	0	0	(1)	0	0	2
Sociedad Sacyr Agua Santa, S.A.	79	0	(1)	0	0	(6)	0	0	72
Joint Arrangements	5,690	0	2,202	0	0	(2,016)	0	(16)	5,860
SACYR GROUP	2,157,392	20,883	(302,873)	43,032	(120,337)	52,432	83	(5,756)	1,844,856

Changes in	Share of	Dividends	Change in	Balance at
scope	profit/(loss)	received	equity	31 December 19

Impairment

AdditionsDisposals

Balance at	Changes in	Share of	Dividends	Change in	Additions	Balance at
31 December 19	scope	profit/(loss)	received	equity	31 December 20

Thousands of euros

Impairment

Disposals

AC Technology, S.A.S.	6	0	1	0	0	(1)	0	6
Biomasas del Pirineo, S.A.	34	0	0	0	0	0	0	34
Boremer, S.A.	0	0	1,363	0	0	(314)	0	1,049
Camarate Golf, S.A.	202	0	(157)	0	0	(1)	0	44
Caraminer, S.A.	0	0	(1,351)	0	0	1,353	0	2
Circuitus, Ltd	9,157	0	(2,722)	0	0	27,381	0	33,816
Concesionaria AP-1 Araba, S.A.	169	0	88	0	0	(3)	0	254
Consorcio Stabile VIS Societá C.P.A.	66	0	0	0	0	0	0	66
Cultivos Energéticos de Castilla, S.A.	(3)	0	0	0	0	3	0	0
Desarrollo Vial al Mar, S.A.S.	20,073	0	(291)	0	0	(5,984)	0	13,798
Enervalor Naval, S.L.	20	0	0	0	0	0	0	20
Eurolink S.C.P.A.	7,013	0	0	0	0	0	0	7,013
Finsa, S.R.L.	55	0	(4)	0	0	23	0	74
Geida Skikda, S.L.	6,647	0	1,287	0	(997)	(273)	0	6,664
Geida Tlemcen, S.L.	18,569	0	4,640	0	(4,079)	(890)	0	18,240
Grupo Unidos por el Canal, S.A.	371	0	0	0	0	(371)	0	0
Infoser Estacionamiento Regulado, A.I.E.	66	(66)	0	0	0	0	0	0
Iniciativas Medioambientales del Sur, S.L.	136	0	0	0	0	0	0	136
N6 Concession Ltd	(159)	0	0	0	0	159	0	0
Operadora Avo, S.A.	13	0	0	0	0	0	0	13
Parque Eólico La Sotonera, S.L.	2,400	0	113	0	0	0	0	2,513
Pazo de Congreso de Vigo, S.A.	858	0	0	0	0	0	0	858
Pilemburg, S.A.	0	31	(27)	0	0	(4)	0	0
Plataforma por la Movilidad, A.I.E.	15	0	0	0	0	(15)	0	0
Procesador de Información del Servicio de Aseo, S.A.S.	58	0	(2)	0	0	(9)	0	47
Repsol, S.A.	1,709,275	0	(260,659)	(85,587)	(95,709)	(162,980)	0	1,104,340
Sociedad Concesionaria Vespucio Oriente, S.A.	49,968	0	3,699	0	0	(5,434)	0	48,233
Valorinima Group	0	1,093	(2)	0	0	0	0	1,091
Somague Panama	8	0	0	0	0	0	(8)	0
Valdemingómez 2000, S.A.	1,472	0	844	0	0	16	0	2,332
Grupo Via Central, S.A.	7,462	0	(549)	0	0	(1,777)	0	5,136
Via Expresso	5,045	0	242	0	0	2,101	(3,716)	3,672
Associates	1,838,996	1,058	(253,487)	(85,587)	(100,785)	(147,020)	(3,724)	1,249,451
Compost del Pirineo, S.A.	9	0	0	0	0	(10)	0	(1)
Constructora ACS-Sacyr, S.A.	46	0	0	0	0	(1)	0	45
Constructora Necso Sacyr, S.A.	12	0	0	0	0	4	0	16
Constructora San Jose-San Ramon, S.A.	51	0	0	0	0	(7)	0	44
Constructora. San Jose - Caldera, S.A.	(62)	0	0	0	0	81	0	19
Constructora Vespuciio Oriente, S.A.	708	0	1,350	0	0	16	0	2,074
Desarrollos Eólicos Extremeños, S.L.	672	0	(12)	0	0	0	0	660
GSJ Maintenance Ltd	959	0	(56)	0	(720)	(26)	0	157
Metrofangs, S.L.	2,900	0	20	0	0	0	0	2,920
N6 Operations Ltd	491	0	415	0	(400)	0	0	506
Tecnologias Extremeñas del Litio, S.L.	2	0	0	0	0	0	0	2
Sociedad Sacyr Agua Santa, S.A.	72	0	(1)	0	0	(2)	0	69
Joint Arrangements	5,860	0	1,716	0	(1,120)	55	0	6,511
SACYR GROUP	1,844,856	1,058	(251,771)	(85,587)	(101,905)	(146,965)	(3,724)	1,255,962

In addition to the companies included in these tables, the Group has shareholdings in other companies accounted for using the equity method whose value is zero.

The assumptions and procedures used to assess impairment in the various companies are explained below:

Repsol, S.A.:

The Sacyr Group is represented on Repsol's Board of Directors, since it holds two positions thereon, one of which is the Deputy Chairman of the company.

In addition, one of the directors is a member of the delegated committee of the Board of Directors and the other of the following committees in which the financial and operating policies of the investee company are established: appointments and remuneration committee and sustainability committee.

As a result, Sacyr considers that it complies with the conditioning factors of significant influence under IAS 28. Accordingly, it accounts for its investment in Repsol, using the equity method.

The Sacyr Group measures its investment in Repsol at its recoverable amount. NIC 36 defines the recoverable value of an asset as the higher of the asset's fair value less the costs to sell and its value in use.

The Sacyr Group views this shareholding as a stable long-term investment and has no plans to accept a selling price for the shares below their recoverable value. The Group estimates the value in use pursuant to IAS 36.

Since it acquired its interest in Repsol, the Group estimates its value in use, which was based on the calculation of the value of total assets by the free discounted cash flows method (cash flows) which this Group expects to generate, subsequently deducting the value of net financial debt and the non-controlling interests at the reference date of the analysis:

The Group estimated free cash flows based on its forecasts of the cash flows it will receive as a core shareholder in Repsol and on the Strategic Plan announced by Repsol.

On 31 December 2020, Repsol reported losses of 3,289 million euros, due largely to the application of various impairments and the effects of COVID-19. The attributable profit for Sacyr Group's holding is -346 million euros, including the valuation adjustment. This means that the carrying amount of the holding prior to the impairment analysis is lower than the market value. The corresponding analysis was made comparing the carrying amount with its recoverable amount and an adjustment made to equal the value of the interest at least to the recoverable value.

At 31 December 2020, the quoted price of Repsol shares was 8.25 euros per share (13.93 euros per share in 2019), leading to a valuation (fair value) of Sacyr's holding of 1,012 million euros (1,709 million euros in 2019). Nonetheless, the value in use of the Repsol investment is higher than its fair value, and the stake's recoverable value is therefore considered to be its value in use.

Based on Repsol's financial statements for the year ended 2020 and the updating of the 2021-2025 Strategic Plan, the Group has estimated the recoverable amount of its holding in Repsol by comparing it with the carrying amount of this investment, in order to reassess the value recognised for this holding. The Group estimated free cash flows based on its forecasts of the cash flows it will receive as a core shareholder in Repsol and on the Strategic Plan announced by Repsol.

Medium-term projections were used (five years), taking into account the maturity periods of the Group's major exploration and extraction projects. Likewise, perpetual income was considered from the last projected period, using the Gordon-Shapiro model. This applies a normalised free cash flow based on the cash flow for the last projected year, recurring perpetual investment in line with that of the last projected period and maintenance of the productive capital stock. A perpetual growth rate (g) of 0% in nominal terms was applied (0% in 2019).

Projected cash flows were discounted at a rate based on the weighted average cost of capital (WACC), which, considering the weightings of each source of capital, is estimated at around 9.26% (8.76% in 2019). The key assumptions used in calculating the WACC were as follows:

 Cost of equity (Ke): using a discount rate of 11.26% (10.3% in 2019), based on the capital asset pricing model (CAPM) for construction, and the following parameters:



Risk-free rate (Rf): using the average weighted risk-free rates of countries in which Repsol operates (Spain, Argentina, Brazil, Mexico, Libya, Algeria, the United States, etc.) based on the yield on the respective long-term government fixed-interest assets (generally maturing at 10 years). The weighted average for these rates, based on Repsol's share of the net assets and exposure, is approximately 3.22% (3.61% in 2019).



Market risk spread of 6.4% (6.5% in 2019), considered globally for all markets in which Repsol operates.



Leveraged beta of 1.25 (1.04 in 2019), based on the correlation between the trading price of Repsol shares and the Spanish benchmark index.

 Specific spread: a specific spread may be applied to allow for any risk factors not addressed by the previous parameters.

 The cost of bank borrowings after tax (Kd): a rate of around 1.26% is considered (2.43% in 2019).

In addition, a sensitivity analysis was performed for the residual growth rate (between -0.5% and 0.5% in 2020 and between -0.5% and 0.5% in 2019) and the WACC (between 8.66% and 9.86% in 2020, and between 8.16% and 9.36% in 2019).

The range of the value per share reached with this analysis, after excluding extreme values, lay between 8.71 euros and 9.31 euros per share, placing the central value at 9.0 euros per share, which represents a value of the stake of 1,104 million euros.

A cross-over of values was obtained from this analysis, which excludes extreme values, in order to calculate the sensitivity of reasonably possible changes in any of the key assumptions. This cross-over of values shows the following underlying impact of Sacyr's profit/loss after tax (in millions of euros):

-0.50%

-0.25%

0.00%

0.25%

0.50%

Perpetual growth

Pursuant to IAS 36, the Group assessed a reasonably possible change in two other key assumptions on which management based its calculation of the recoverable amount of Repsol, S.A.: the euro/dollar exchange rate and the price of a barrel of Brent. Due to the correlation between these variables, their sensitivity must be analysed jointly. Moreover, variations in key assumptions beyond the confines of normal market setups mean the measurement method may need to be reviewed, since this may result in a change to the business model. As a result of this analysis, it was concluded that:

a. A 1% appreciation in the euro against the dollar in the entire projected period led to a drop in the value per share of -2.6% (-1.9% in 2019).

b. An increase of 1% in the price of a barrel of Brent in the entire projected period led to a rise in the value per share of 1.0% (0.6% in 2019).

Moreover, variations of key assumptions beyond the confines of normal market conditions mean the measurement method requires a global analysis, or even a change to the business model.

Autopista Madrid Sur (Radial 4):

Inversora de Autopistas del Sur, S.L., in which the Group holds a 35% interest and which owns 100% of the concessionaire Autopista Madrid Sur, C.E.S.A., which relates to the R4 motorway asset.

On 14 September 2012, the respective boards of directors of Inversora de Autopistas del Sur, S.L. and Autopista Madrid Sur, C.E.S.A. agreed to file for insolvency for these companies. On 4 October 2012 an Order was received accepting voluntary insolvency proceedings. The insolvency proceedings for Inversora de Autopistas del Sur, S.L. and Autopista Madrid Sur, C.E.S.A. are being processed jointly.

On 12 April 2017, the company filed for liquidation, with Commercial Court no. 4 of Madrid processing the bankruptcy. An Order was received on 17 May confirming the passage to the liquidation phase. Subsequently, Madrid Commercial Court no. 4 gave notice of approval of the Liquidation Plans submitted by the Insolvency Administrators for Inversora de Autopistas del Sur, S.L. and Autopista Madrid Sur, C.E.S.A. The Government representative in National Concessionaires of Toll Highways notified that SEITTSA intended to take over control of the management of the R4 on 1 February 2018. The transfer finally took place without incident on 21 February 2018.

On 14 July 2018, the Official State Gazette published the 13 July 2018 Resolution of the government delegation to the National Toll Motorway Concession Companies, which provides for the publication of the Council of Ministers agreement of 13 July 2018, terminating the administrative concession contract for the construction, upkeep and operation of the toll motorway.

This resolution agrees: to terminate the concession contract; to order the Ministry of Development to seize the construction and operation bonds; to order the Ministry of Development to process the contract liquidation file, with due quantification of the value of the liability of the Administration; to authorise the Ministry of Development to adopt the provisional measures necessary to guarantee the correct provision of the service; and to order the Ministry of Development to proceed to pay into the Public Treasury, with charge to the construction bond seized, the investment corresponding to the cultural 1% that has not been executed.

On 26 April 2019, the Council of Ministers approved the "Agreement on the interpretation of certain motorway concession contracts with regard to calculating the liability of the public administration (Responsabilidad Patrimonial de la Administración or RPA)". In 2020, the press reported that the Ministry of Transport, Mobility and the Urban Agenda had initiated hearing proceedings for the provisional settlement of the RPA for the R4 motorway.

On 23 November 2020, the Ministry of Transport, Mobility and the Urban Agenda (MITMA) initiated hearing proceedings for the provisional settlement of the RPA for the R4 motorway (Madrid South).

When this hearing - which will last 15 days - concludes, the arguments made will be assessed. This assessment will be used to issue an initial resolution determining the RPA.

MITMA's calculations conclude that the amount to be settled is zero euros, as the value of the provisional withholding exceeds the recognised RPA.

The Group is involved in the following judicial proceedings:

With regard to the ordinary proceedings arising from the claim filed by a group of financial institutions against the shareholders of Inversora de Autopistas del Sur, S.L., claiming certain contributions of funds to the latter company by virtue of the shareholders' or sponsors' agreement in relation to the financing of the R4 motorway concession, on 20 October 2015 the Court of First Instance handed down a judgement dismissing the claim in its entirety. The counter-appeal lodged by the plaintiffs was dismissed by a judgement of the Madrid Provincial Court handed down on 16 December 2016.

Having filed an extraordinary appeal for a procedural infringement, the Civil Chamber of the Supreme Court upheld the appeal in a ruling dated 19 February 2020, ordering that the proceedings be referred back to the Provincial Court of Madrid for a new ruling on the merits of the case, which has not yet been handed down.

The Provincial Court of Madrid handed down a ruling on 30 September 2020 declaring the liability of the co-respondent entities to meet their obligations to provide funds to the borrower (Autopistas del Sur S.L., in bankruptcy) pursuant to clause 3.3 of the Sponsors contract (in the final version dated 12 June 2012). It therefore ordered the respondents to pay into the Tranche A account of the borrower (Autopistas del Sur S.L., in bankruptcy) the amounts due under clause 3.3 of the Sponsors contract. Specifically, Sacyr Concesiones, S.L.U. and Sacyr, S.A. should jointly and severally pay 8,050,000 euros, plus the legally-determined interest since 21 September 2012 (5 business days from the final maturity date, 28 September 2012). A cassation appeal was filed against this ruling on 10 November 2020.

The directors of the parent company and the external legal advisors responsible for providing legal advice in these proceedings consider that the position of Sacyr S.A. and its subsidiary Sacyr Concesiones, S.L. is soundly and reasonably based.

Nevertheless, the directors of the parent company have made a provision of 10,314,557 euros for the amount claimed plus the legally-determined interest.

The Group has made impairment provisions for the entire investment and the subordinated loans with both companies.

Madrid - Levante Motorway (AP-36):

Inversora de Autopistas de Levante, S.L., in which the Group holds a 40% interest, owns 100% of the concessionaire Autopista Madrid-Levante Sur, C.E.S.A., in relation to the AP36 motorway asset (Ocaña-La Roda).

The Ocaña-La Roda Motorway filed for bankruptcy on 19 October 2012. On 4 December 2012 an Order was received in acceptance of voluntary insolvency proceedings.

On 24 February 2015 the Judge at Commercial Court No. 2 refused to accept the proposed proceedings submitted by SEITTSA, and ruled that the liquidation phase should commence for both companies. On 4 September 2015 the company was notified of a Resolution of 31 July 2015 to suspend the period granted to the Insolvency Administrators to present the Liquidation Plan until the appeal submitted by the State Lawyer against the Order of 26 February 2015 had been resolved.

By agreement between the Government Delegation to the National Concession Companies of Toll Highways and the Insolvency Administrators, on 15 March 2018 SEITTSA took control of the management of the AP36 without incident.

On 14 July 2018, the Official State Gazette published the Resolution of 13 July 2018, of the Government Delegation to the National Toll Motorway Concession Companies, which provides for the publication of the Council of Ministers Resolution of 13 July 2018 terminatingthe administrative concession contract for the construction, upkeep and operation of the toll motorway.

This resolution resolves: to terminate the concession contract, to order the Ministry of Development to retain one hundred per cent of the construction bond in order to guarantee payment of the amount due as the cultural 1% and to seize the operating bond; to order the Ministry of Development to process the liquidation file of the contract, with due quantification of the value of the liability of the Administration; to authorise the Ministry of Public Works to adopt the necessary provisional measures to guarantee the correct provision of the service; to order the Ministry of Public Works to pay the investment corresponding to the part of the cultural 1% that has not been executed, which may be covered by the guarantee, into the Public Treasury from the retained construction bond; and to order the Ministry of Public Works to initiate a procedure to determine and demand the amount of the investment of the cultural 1% that cannot be covered by the guarantee.

On 26 April 2019, the council of ministers approved the "Agreement on the interpretation of certain motorway concession contracts with regard to calculating the liability of the public administration (Responsabilidad Patrimonial de la Administración or RPA)". The press has reported that the Ministry of Transport, Mobility and the Urban Agenda has initiated hearing proceedings for the provisional settlement of the RPA for the AP36 motorway.

On 12 March 2020, the Ministry of Transport, Mobility and the Urban Agenda (MITMA) announced to the interested parties the hearing proceedings for the provisional settlement of the RPA for the AP36 Ocaña-la Roda motorway, with a period of 15 days to present their arguments.

Following the Interpretation Agreement, the recognised RPA has been calculated as 319,905,783.72 euros, discounting the amount pending for compulsory purchases (at the time, 1,777,896.04 euros). Based on this calculation, a payment on account of 318,127,887.68 euros was recognised.

The Group has made impairment provisions for the entire investment and the subordinated loans with both companies. It did not recognise any further provisions, nor did it consider that any additional liabilities would arise.

Accesos de Madrid (R-3 and R-5 Motorways):

Alazor Inversiones, S.A., in which the Group holds a 25.16% interest, owns 100% of the concessionaire Accesis de Madrid, C.E.S.A., which relates to the concessionaire assets of the R3 and R5 motorways.

With respect to the insolvency proceedings in which the two companies are involved pursuant to the Order of November 2017 the following is agreed: (i) the opening, ex officio, of the liquidation phase; (ii) the suspension, during the liquidation phase, of the company administrators in their administration and provision faculties, which shall be entirely assumed by the insolvency administrators, (iii) the removal of the company administrators and/or liquidators, where relevant, who shall be replaced in their positions, faculties, functions and duties by the insolvency administrators; (iv) dissolution of the company; (v) the early repayment of deferred claims and conversion of those amounts consisting of other forms into cash; (vi) notices of the initiation of the liquidation phase published on the Court bulletin board and publication in the Insolvency Public Register; (vii) registration of the initiation of the liquidation phase in the Trade Register; (viii) registration of the initiation of the liquidation phase in the Property Register and in the other Registers in which assets of the insolvent party appear; (ix) submission of the various official documents and orders to the Inspector of the insolvent party for them to be completed; (x) the insolvency administrators are required to submit the liquidation plan in a period of fifteen days; and for Accesos de Madrid, (xi) theconcession contract signed between the National Administration and the insolvent party is declared terminated and ineffective by means of Ministry of the Law and this Resolution.

Pursuant to Order of 14 March 2018, the liquidation plan of Accesos de Madrid, C.E.S.A is approved, with the date set for transfer to the public entity, SEITTSA, of 10 May 2018 at 6 am.

The Government Delegate in the National Concessionaires of Toll Motorway Concession notified the intention for SEITTSA to become responsible for the management of R3 and R5 on 10 May 2018, the transfer having been made without incident.

On 14 July 2018, the Official State Gazette published the Resolution of 13 July 2018, of the Government Delegation to the National Toll Motorway Concession Companies, which provides for the publication of the Council of Ministers Resolution of 13 July 2018 terminating the administrative concession contract for the construction, upkeep and operation of the toll motorways.

Orders of 4 July 2018 and 17 October 2018 of Madrid Commercial Court No. 6 dismissed section 6 of the qualification of the tendering of Accesos de Madrid, C.E.S.A. and Alazor Inversiones, S.A., respectively, as the Insolvency Administration and the Public Prosecutor had qualified the tendering processes of the two companies as successful.

On 6 November 2020, the Ministry of Transport, Mobility and the Urban Agenda (MITMA) initiated hearing proceedings for the provisional settlement of the RPA for the R3 and R5 (Accesos de Madrid).

When this hearing - which will last 15 days - concludes, the arguments made will be assessed. This assessment will be used to issue an initial resolution determining the RPA.

MITMA's calculations conclude that the amount to be settled is zero euros, as the value of the provisional withholding exceeds the RPA recognised. In terms of the claim for declaratory judgement filed by financial institutions and communicated to shareholders in October 2013, it is worth noting that, after abandoning appeal proceedings in September 2018 that had been filed against the dismissal thereof, the funds acquiring the credits prepared a new claim for declaratory judgement against the shareholders of Alazor Inversiones S.A. (Sacyr S.A.) and against its guarantors (Sacyr Concesiones S.L.U. and Sacyr Construcción S.A.), which was notified in January 2019, asking for certain fund contributions to be made to Alazor Inversiones S.A. under the Support Agreement in relation to the financing of the administrative concession of the construction, upkeep and operation of the R3 and R5 motorways. The suit demands from Sacyr, S.A. and its guarantors payment of the sum of 180,123,711 euros. A reply was filed on 18 February 2019, and the preliminary hearing has been postponed until 8 March 2021. The directors and the external legal advisors responsible for providing legal assistance in these proceedings consider that the position of Sacyr, S.A. and its guarantors is soundly and reasonably founded and documented, and consider the risk to be possible.

In May 2019, leave was granted for hearing of the lawsuit filed by Haitong Bank, S.A., Branch in Spain, in its capacity as agent of the banking syndicate that granted the financing necessary for the execution of the concession works, against the shareholders of AlazorInversiones, S.A. (Sacyr S.A.) and against its guarantors (Sacyr Concesiones S.L.U. and Sacyr Construcción S.A.), requesting certain fund contributions under the support agreement entered into in connection with the financing. The suit demands from Sacyr, S.A. and its guarantors payment of the sum of 141,543,779 euros. On 20 June 2019, a statement of defence was filed. The preliminary hearing was held on 16 December 2020, with the hearing date being set for 2 June 2021.

The directors and the external legal advisors responsible for providing legal assistance in this procedure consider that the position of Sacyr S.A. and its guarantors is soundly and reasonably founded and documented, considering the risk to be possible.

It did not recognise any further provisions, nor did it consider that any additional liabilities would arise.

The Group has made impairment provisions for the entire investment and the subordinated loans with both companies.

Pazo de Congresos de Vigo:

The Sacyr Group has a total holding in Pazo de Congresos de Vigo, S.A. of 11.11%.

No significant events occurred in 2019, following approval in the previous financial year of the liquidation plan filed by the bankruptcy administrator, resulting in the liquidation and collection of the concession asset.

In 2020, Pazo de Congresos de Vigo, S.A. was subject to VAT inspections for financial year 2018, with regard to the tax treatment applied to the liquidation of the concession agreement.

- On 17 November, a dispute was filed with the Regional Inspection Service of the Galicia Tax Office, resulting in a tax liability of 1,374,233.16 euros.
- On 2 December, the arguments for this dispute were filed, arguing that the proposal was not lawful.

N6 Concession Ltd:

N6 Concession Ltd is a mixed asset, in view of the income flows arising from the payment of users ("traffic risk"), plus payments guaranteed by the Administration.

Historically, the low level of traffic on the road made it necessary to verify year after year whether it was expected that the portion of the company's intangible assets could be borne by the discounting of future operating flows, without including the amount of traffic income, which had led to classification as a mixed asset.

In order to calculate the operating flows, the company considered the assumptions to be taken into account (traffic, OPEX, CAPEX, etc.) were always based on the reports of the company's external advisors or on ongoing contracts. When these flows had been calculated, a discount rate of 0.4% was considered for the year ended 31 December 2020 (1.7% for the year ended 31 December 2019).

These are the main assumptions which were included in the impairment test for intangible assets.

At 31 December 2020, the calculation of the impairment test for this company did not entail any impairment (the same as in the year ended 31 December 2019).

Concerning financial assets, the payments by the Irish administration are discounted at 9.4%. The financial model assumed collection of sums indexed against a 2% consumer price index: however, this rate has not been reached in recent years. As a result, impairment provision was made against receivables on concession financial assets in the amount of 0.42 million euros at 31 December 2020 (0.16 million euros for the year ended 31 December 2019).

The table below presents the financial highlights of the main companies accounted for using the equity method in 2019:

Circuitus, Ltd Finsa, S.R.L.

Desarrolo Vial al Mar, S.A.S. Grupo Via Central, S.A. GSJ Maintenance Ltd

N6 Operations Ltd
N6 Concession Holding Ltd
N6 Concession Ltd

Sociedad Concesionaria Vespucio Oriente, S.A. Operadora Avo, S.A.

Consorcio Stabile VIS Societá C.P.A. Enervalor Naval, S.L.

Tecnologias Extremeñas del Litio, S.L. Concesionaria AP-1 Araba, S.A. Biomasas del Pirineo, S.A.

Residuos de Construcción de Cuenca, S.A. Sacorec, S.L.

Boremer, S.A.

Compost del Pirineo, S.A.

Cultivos Energéticos de Castilla, S.A. Desgasificación de Vertederos, S.A. Gestión de Partícipes del Biorreciclaje, S.A. Reciclados y Tratamientos Andaluces, S.L. Infoser Estacionamiento Regulado, A.I.E. Iniciativas Medioambientales del Sur, S.L. Inte RCD Huelva, S.L.

Alcorec, S.L.

Inte RCD Bahía de Cádiz, S.L. Inte RCD, S.L.

Metrofangs, S.L.

Parque Eólico La Sotonera, S.L. Valdemingómez 2000, S.A.

Procesador de Información del Servicio de Aseo, S.A.S. AC Technology, S.A.S.

Plataforma por la Movilidad, A.I.E. Geida Skikda, S.L.

Geida Tlemcen, S.L.

Desarrollos Eólicos Extremeños, S.L. M 50 (D&C) Ltd

N6 Constructuion Ltd

Grupo Unidos por el Canal, S.A. Sociedad Sacyr Agua Santa, S.A. Constructora ACS-Sacyr, S.A. Constructora Necso Sacyr, S.A. Constructora Vespuciio Oriente, S.A. Constructora San Jose-San Ramon, S.A. Constructora. San Jose - Caldera, S.A. Eurolink S.C.P.A.

Pazo de Congreso de Vigo, S.A. Repsol YPF, S.A.

Puerta Oro Toledo, S.L. Camarate Golf, S.A.

Haçor Domus, Compra e Venda de Imoveis, Ltda H.S.E. - Empreendimentos Imobiliários, Lda

Via Expresso

Dividends	Non-current	Profit/(loss)
received	Current assets	assets	Current liabilities	continuing	Total profit
operations
19,12 6	31,387	438	0	0	(6,07 2)	0	0	(6,0 72)
7	280	175	0	0	340	0	0	340
80,70 6	491,893	89,422	429,656	0	8,294	0	0	8,294
28,83 9	88,711	42,987	55,909	0	(3,72 3)	0	0	(3,7 23)
4,57 1	0	2,433	0	0	1,986	0	0	1,986
1,29 2	267	555	22	1,491	1,174	0	0	1,174
0	0	0	0	0	0	0	0	0
24,75 9	45,288	2,770	151,569	0	(4,24 1)	0	0	(4,2 41)
33,96 6	259,773	12,930	180,870	0	4,479	0	0	4,479
356	18	350	2	0	(2)	0	0	(2)
8,41 3	1,105	9,368	0	3,462	0	0	0	0
52	0	0	0	0	0	0	0	0
(1,465)	1,472	1	0	0	0	0	0	0
1,57 1	1,038	1,265	833	0	148	0	0	148
243	0	166	0	0	(0)	0	0	(0)
37	0	99	0	0	(0)	0	0	(0)
(58)	0	0	0	0	0	0	0	0
7,21 0	4,108	6,035	5,919	319	(38)	0	0	(38)
52	472	274	231	0	(30)	0	0	(30)
(197)	309	43	75	0	(2)	0	0	(2)
1	0	182	0	0	(0)	0	0	(0)
70	0	42	237	0	(0)	0	0	(0)
0	0	0	0	0	0	0	0	0
182	0	(178)	0	0	0	0	0	0
0	279	8	(0)	0	(0)	0	0	(0)
(107)	0	0	0	0	0	0	0	0
311	52	142	976	0	0	0	0	0
(472)	0	0	0	0	0	0	0	0
0	(0)	219	0	0	(1)	0	0	(1)
13,43 5	0	17	0	58	355	0	0	355
1,67 4	11,037	2,265	2,488	0	1,061	0	0	1,061
19,91 8	242	14,300	2,180	297	2,285	0	0	2,285
777	51	443	0	0	92	0	0	92
187	2	159	(0)	0	9	0	0	9
618	890	482	922	0	100	0	0	100
742	10,810	6	20	3,774	3,658	0	0	3,658
261	21,432	7	0	9,371	9,536	0	0	9,536
3	2,175	109	726	0	(24)	0	0	(24)
151	0	53	7,798	0	(0)	0	0	(0)
472	0	266	90,589	0	(0)	0	0	(0)
1,589,956	0	351,485	1,237,579	5,938	0	0	0	0
149	0	3	0	0	(2)	0	0	(2)
716	229	855	0	0	(0)	0	0	(0)
78	49	301	0	0	2	0	0	2
32,01 5	14,696	33,181	12,111	10	1,345	0	0	1,345
432	0	270	0	0	0	0	0	0
928	23	4,643	0	0	(52)	0	0	(52)
61,23 5	0	23,735	0	700	0	0	0	0
75,45 4	0	67,724	0	0	0	0	0	0
16,487,000	41,408,000	15,085,000	17,601,000	0	(3,816,000)	0	0	(3,816,000)
N/A	N/A	N/A	N/A	N/A	0	0	0	0
5,68 8	0	4,910	0	0	(497)	0	0	(497)
171	0	4	0	0	(4)	0	0	(4)
329	9	319	68	0	0	0	0	0
44,55 9	140,157	26,309	123,821	21,095	30,301	0	0	30,301

Revenue from ordinary operations

Non-current liabilitiesProfit/(loss) discontinued operations

Other profit

3,80 9

8,89 8

113,99 2

1,36 6

Cash

Current financial liabilitiesNon-current financial liabilities

Depreciation and amortisationBorrowing income

Borrowing CostsCapital gains tax

Circuitus, Ltd Finsa, S.R.L.

Desarrolo Vial al Mar, S.A.S. Grupo Via Central, S.A. GSJ Maintenance Ltd

N6 Operations Ltd
N6 Concession Holding Ltd
N6 Concession Ltd

Sociedad Concesionaria Vespucio Oriente, S.A. Operadora Avo, S.A.

Consorcio Stabile VIS Societá C.P.A. Enervalor Naval, S.L.

Tecnologias Extremeñas del Litio, S.L. Concesionaria AP-1 Araba, S.A. Biomasas del Pirineo, S.A.

Residuos de Construcción de Cuenca, S.A. Sacorec, S.L.

Boremer, S.A.

Compost del Pirineo, S.A.

Alcorec, S.L.

Inte RCD Bahía de Cádiz, S.L. Inte RCD, S.L.

Metrofangs, S.L.

Parque Eólico La Sotonera, S.L. Valdemingómez 2000, S.A.

Procesador de Información del Servicio de Aseo, S.A.S. AC Technology, S.A.S.

Plataforma por la Movilidad, A.I.E. Geida Skikda, S.L.

Geida Tlemcen, S.L.

Desarrollos Eólicos Extremeños, S.L. M 50 (D&C) Ltd

N6 Constructuion Ltd

Pazo de Congreso de Vigo, S.A. Repsol YPF, S.A.

Puerta Oro Toledo, S.L. Camarate Golf, S.A.

Haçor Domus, Compra e Venda de Imoveis, Ltda H.S.E. - Empreendimentos Imobiliários, Lda

3,363

0 0

356

0 0

80,433

8,481

349,325

407

3,239

39,279 5,628

4,408

651

55,876

338 3,740

1,082

600

0 284

423

0 166

0 0

20,554

759

119,224

2,223

6,049 6

25,113

313

152,225

174

270

4,410 186

0 1

583

557

225

27 0

0 0

(1,480)

0 0

183

233

833

187

17 49

243

0 0

(58)

0 0

6,724

2,960

7 0

12 0

(197)

0 0

159

0 0

182

0 0

0 (0)

(107)

0 0

(472)

0 0

1 0

4,212

125

0 0

935

821

650

73 354

9,050

103

210 186

108

0 (4)

4 2

313

0 0

156

0 0

148

0 0

590

23 0

149

3,299

0 0

471

39,447

0 0

1,105

225,719

5,710,480

276

44,630 0

147

0 0

533

0 0

797

1,581

1,671

255 597

0 0

462

0 4

804

38,670

0 0

2,979,000

6,538,000

10,929,000

7,756,000

148,000

391,000

(588,000)

N/A

2,260

255

0 0

170

0 0

319

0 0

Via Expresso

40,363

20,607

117

10,818

1,097

2,268

2,415

Reconciliation

Shareholders' equity

% stake

Shareholding valueAdjustments

PPETransfer restriction on equity

Cash outflow commitments

Circuitus, Ltd Finsa, S.R.L.

Desarrolo Vial al Mar, S.A.S. Grupo Via Central, S.A. GSJ Maintenance Ltd

N6 Operations Ltd
N6 Concession Holding Ltd
N6 Concession Ltd

Sociedad Concesionaria Vespucio Oriente, S.A. Operadora Avo, S.A.

Consorcio Stabile VIS Societá C.P.A. Enervalor Naval, S.L.

Tecnologias Extremeñas del Litio, S.L. Concesionaria AP-1 Araba, S.A. Biomasas del Pirineo, S.A.

Residuos de Construcción de Cuenca, S.A. Sacorec, S.L.

Boremer, S.A.

Compost del Pirineo, S.A.

Alcorec, S.L.

Inte RCD Bahía de Cádiz, S.L. Inte RCD, S.L.

Metrofangs, S.L.

Parque Eólico La Sotonera, S.L. Valdemingómez 2000, S.A.

Procesador de Información del Servicio de Aseo, S.A.S. AC Technology, S.A.S.

Plataforma por la Movilidad, A.I.E. Geida Skikda, S.L.

Geida Tlemcen, S.L.

Desarrollos Eólicos Extremeños, S.L. M 50 (D&C) Ltd

N6 Constructuion Ltd

Pazo de Congreso de Vigo, S.A. Repsol YPF, S.A.

Puerta Oro Toledo, S.L. Camarate Golf, S.A.

Haçor Domus, Compra e Venda de Imoveis, Ltda H.S.E. - Empreendimentos Imobiliários, Lda

50,074

49%

24,536

112

49%

53,521

38%

20,070

18,654

40%

7,462

2,138

45%

962

982

50%

491

45%

(84,291)

45%

(37,931)

99,939

50%

49,970

50%

150

47%

40%

25%

511

33% 169

44% 34

(61)

50% (31)

(58)

5% (3)

(637)

50% (319)

50% 10

(6)

44% (3)

(181)

50% (90)

(209)

33% (70)

5% 0

360

18% 66

271

50% 135

(107)

20% (21)

(755)

10% (76)

(472)

20% (94)

(219)

33% (73)

13,418

22% 2,898

7,958

30% 2,400

3,680

40% 1,472

385

15% 57

20% 6

104

15% 15

11,526

33% 3,804

21,686

50% 10,843

1,342

50% 671

15,379

9,157

0 0

(3)

20,073

0 0

7,462

0 0

959

0 0

491

0 0

(37,772)

(159)

0 0

49,968

0 0

(2)

0 0

(1)

0 0

169

0 0

(31)

0 0

(3)

0 0

(319)

0 0

(3)

0 0

(90)

0 0

(70)

0 0

(1)

136

0 0

(21)

0 0

(76)

0 0

(94)

0 0

(73)

0 0

(2) 2,900

0 0

0 2,400

0 0

(0) 1,472

0 0

(1) 58

0 0

0 6

0 0

0 15

0 0

2,843 6,647

0 0

7,726 18,569

0 0

(1)672

0 0

(7,701)

43%

(3,273)

0 0

(90,382)

43%

(38,413)

0 0

892

42%

371

(0)

371

0 0

145

50%

0 0

50%

(1)

0 0

(174)

50%

(87)

(99)

0 0

1,419

50%

709

708

0 0

162

33%

0 0

(3,692)

33%

(1,218)

(1,156)

(62)

0 0

37,500

19%

7,013

(1)

7,013

0 0

7,730

11%

859

858

0 0

23,904,000

1,974,805

265,530

1,709,275

0 0

5,988

35%

2,096

0 0

778

26%

202

0 0

39%

0 0

28%

0 0

Via Expresso

34,586

11%

3,804

1,241

5,045

0 0

For 2020:



Circuitus, Ltd	0
Finsa, S.R.L.	0
Desarrolo Vial al Mar, S.A.S.	0
Grupo Via Central, S.A.	0
Pilemburg, S.A.	0
Autop. del Guadalmedina Conc. Española, S.A.	0
GSJ Maintenance Ltd	0
N6 Operations Ltd	0
N6 Concession Holding Ltd	0
N6 Concession Ltd	0
Sociedad Concesionaria Vespucio Oriente, S.A.	0
Operadora Avo, S.A.	0
Consorcio Stabile VIS Societá C.P.A.	0
Enervalor Naval, S.L.	0
Tecnologias Extremeñas del Litio, S.L.	0
Concesionaria AP-1 Araba, S.A.	0
Biomasas del Pirineo, S.A.	0
Residuos de Construcción de Cuenca, S.A.	0
Sacorec, S.L.	0
Boremer, S.A.	0
Compost del Pirineo, S.A.	0
Cultivos Energéticos de Castilla, S.A.	0
Desgasificación de Vertederos, S.A.	0
Gestión de Partícipes del Biorreciclaje, S.A.	0
Reciclados y Tratamientos Andaluces, S.L.	0
Iniciativas Medioambientales del Sur, S.L.	0
Inte RCD Huelva, S.L.	0
Alcorec, S.L.	0
Inte RCD Bahía de Cádiz, S.L.	0
Inte RCD, S.L.	0
Metrofangs, S.L.	0
Parque Eólico La Sotonera, S.L.	0
Valdemingómez 2000, S.A.	1,150,220
Procesador de Información del Servicio de Aseo,	0
AC Technology, S.A.S.	0
Plataforma por la Movilidad, A.I.E.	0
Geida Skikda, S.L.	997
Geida Tlemcen, S.L.	4,079
Valorinima Group	0
Desarrollos Eólicos Extremeños, S.L.	0
M 50 (D&C) Ltd	0
N6 Constructuion Ltd	0
Grupo Unidos por el Canal, S.A.	0
Sociedad Sacyr Agua Santa, S.A.	0
Constructora ACS-Sacyr, S.A.	0
Constructora Necso Sacyr, S.A.	0
Constructora Vespuciio Oriente, S.A.	0
Constructora San Jose-San Ramon, S.A.	0
Constructora. San Jose - Caldera, S.A.	0
Eurolink S.C.P.A.	0
Pazo de Congreso de Vigo, S.A.	0
Caraminer, S.A.	0
Repsol YPF, S.A.	0
Puerta Oro Toledo, S.L.	0
Camarate Golf, S.A.	0
Haçor Domus, Compra e Venda de Imoveis, Ltda	0
H.S.E. - Empreendimentos Imobiliários, Lda	0
Via Expresso	0

Dividends	Non-current	Profit/(loss)
received	Current assets	assets	Current liabilities	continuing
operations
72,899	46,236	3,886	0	0	(5,555)	0	0
10	688	547	0	0	(8)	0	0
68,003	591,251	93,613	528,853	0	(775)	0	(8)
62,834	211,687	63,598	198,083	0	(1,372)	0	(9,718)
5,300	0	5,416	0	0	(68)	0	0
13,157	333,711	7,545	299,260	498	(7,428)	0	0
686	0	326	4	0	(124)	0	0
1,167	311	445	20	737	830	0	0
0	0	0	0	0	0	0	0
23,666	42,134	2,971	155,124	0	(7,881)	0	(124)
26,050	536,976	27,946	438,611	0	7,398	0	(7,863)
366	7	350	0	0	0	0	0
19,534	675	20,059	0	6,128	(0)	0	0
52	0	0	0	0	0	0	0
(1,465)	1,499	29	0	0	0	0	0
1,735	1,726	1,583	1,110	0	266	0	0
243	0	166	0	0	0	0	0
37	0	99	0	0	0	0	(456)
(58)	0	0	0	0	0	0	0
8,995	95	1,074	5,919	102	2,725	0	0
43	460	273	231	0	(20)	0	0
(197)	306	43	75	0	(2)	0	0
1	0	182	0	0	0	0	(128)
70	0	42	237	0	0	0	0
0	0	0	0	0	0	0	0
0	279	3	4	0	0	0	(254)
(107)	0	0	0	0	0	0	0
311	52	142	976	0	0	0	0
(472)	0	0	0	0	0	0	0
0	0	219	0	0	0	0	0
13,525	0	16	0	97	91	0	0
943	10,941	1,752	1,799	21	375	0	0
11,577	301	4,062	1,983	301	2,111	0	0
729	38	453	0	318	(13)	0	0
180	1	150	0	0	4	0	37
642	866	1,505	0	0	0	0	0
20,193	10,811	19,808	0	3,488	3,901	0	0
36,468	21,433	19,358	0	9,587	9,279	0	0
6,926	13,416	6,530	6,203	5,749	(12)	0	0
2	2,175	109	750	0	(25)	0	0
133	0	36	7,798	0	0	0	0
453	0	246	90,589	0	0	0	0
1,508,324	0	326,777	1,143,269	0	0	0	0
147	0	8	0	0	(1)	0	0
691	221	826	0	0	0	0	0
78	47	291	0	0	2	0	0
62,267	14,979	60,649	12,447	53	2,700	0	0
387	0	248	0	0	0	0	0
773	21	4,240	0	0	(15)	0	0
60,375	0	22,875	0	719	0	0	0
75,454	0	67,724	0	0	0	0	0
217	517	465	264	0	4	0	0
13,584,000	35,718,000	10,519,000	18,244,000	985,000	(3,289,000)	0	0
5,988	0	0	0	0	0	0	0
3,968	0	(2,295)	(1,500)	0	(604)	0	0
0	0	0	0	0	0	0	0
329	9	319	68	0	0	0	0
0	0	0	0	0	0	0	0

Revenue from ordinary operations

Non-current liabilities

Total profit
Circuitus, Ltd	(5,555)	136	0
Finsa, S.R.L.	(8)	1	0
Desarrolo Vial al Mar, S.A.S.	(783)	67,158	15,089
Grupo Via Central, S.A.	(11,090)	1,347	3,575
Pilemburg, S.A.	(68)	2	0
Autop. del Guadalmedina Conc. Española, S.A.	(7,428)	12,034	5,353
GSJ Maintenance Ltd	(124)	412	0
N6 Operations Ltd	830	358	0
N6 Concession Holding Ltd	0	0	0
N6 Concession Ltd	(8,005)	21,004	1,193
Sociedad Concesionaria Vespucio Oriente, S.A.	(465)	1,097	791
Operadora Avo, S.A.	0	135	0
Consorcio Stabile VIS Societá C.P.A.	(0)	239	163
Enervalor Naval, S.L.	0	52	0
Tecnologias Extremeñas del Litio, S.L.	0	(1,469)	0
Concesionaria AP-1 Araba, S.A.	266	294	477
Biomasas del Pirineo, S.A.	0	243	83
Residuos de Construcción de Cuenca, S.A.	(456)	37	0
Sacorec, S.L.	0	(58)	0
Boremer, S.A.	2,725	3,100	0
Compost del Pirineo, S.A.	(20)	42	58
Cultivos Energéticos de Castilla, S.A.	(2)	(197)	0
Desgasificación de Vertederos, S.A.	(128)	1	90
Gestión de Partícipes del Biorreciclaje, S.A.	0	70	0
Reciclados y Tratamientos Andaluces, S.L.	0	0	0
Iniciativas Medioambientales del Sur, S.L.	(254)	0	0
Inte RCD Huelva, S.L.	0	(107)	0
Alcorec, S.L.	0	61	0
Inte RCD Bahía de Cádiz, S.L.	0	(472)	0
Inte RCD, S.L.	0	0	0
Metrofangs, S.L.	91	4,270	0
Parque Eólico La Sotonera, S.L.	375	551	0
Valdemingómez 2000, S.A.	2,111	8,858	0
Procesador de Información del Servicio de Aseo, S	(13)	291	0
AC Technology, S.A.S.	41	44	0
Plataforma por la Movilidad, A.I.E.	0	506	0
Geida Skikda, S.L.	3,901	20,193	0
Geida Tlemcen, S.L.	9,279	36,468	0
Valorinima Group	(12)	4,695	0
Desarrollos Eólicos Extremeños, S.L.	(25)	2	0
M 50 (D&C) Ltd	0	133	0
N6 Constructuion Ltd	0	453	0
Grupo Unidos por el Canal, S.A.	0	865	207,032
Sociedad Sacyr Agua Santa, S.A.	(1)	146	0
Constructora ACS-Sacyr, S.A.	0	509	0
Constructora Necso Sacyr, S.A.	2	2	0
Constructora Vespuciio Oriente, S.A.	2,700	683	0
Constructora San Jose-San Ramon, S.A.	0	0	0
Constructora. San Jose - Caldera, S.A.	(15)	31	61
Eurolink S.C.P.A.	0	450	0
Pazo de Congreso de Vigo, S.A.	0	804	38,670
Caraminer, S.A.	4	5	332
Repsol YPF, S.A.	(3,289,000)	18,365,000	3,880,000
Puerta Oro Toledo, S.L.	0	5,988	0
Camarate Golf, S.A.	(604)	727	(22,954)
Haçor Domus, Compra e Venda de Imoveis, Ltda	0	0	0
H.S.E. - Empreendimentos Imobiliários, Lda	0	75	319
Via Expresso	0	0	0

Cash

Current financial	Non-current financial	Depreciation and	Borrowing income	Borrowing Costs	Capital gains tax
liabilities	liabilities	amortisation
0	0	0	0	0
0	0	0	0	0
431,174	385	2,119	51,702	(1,961)
198,041	34	63	8,503	8,212
0	0	0	1	59
222,952	4,400	0	13,854	(2,476)
4	0	0	0	(18)
20	100	0	0	117
0	0	0	0	0
119,434	2,494	1	6,439	0
407,249	174	85	8,567	1,624
0	6	0	0	0
0	225	0	16	0
0	0	0	0	0
0	0	0	0	0
1,110	312	87	21	49
0	0	0	0	0
0	0	0	0	0
0	0	0	0	0
2,960	0	451	0	3,933
0	12	0	0	0
0	2	0	0	0
0	0	0	0	0
159	0	0	0	0
0	0	0	0	0
4	0	0	0	0
0	0	0	0	0
0	0	0	0	0
0	0	0	0	0
0	0	0	0	0
0	0	113	0	0
0	601	0	46	125
0	169	187	1,372	374
0	7	0	0	2
0	0	0	2	2
0	154	32	32	0
0	0	0	0	0
0	0	0	0	0
0	0	0	0	0
613	0	0	24	0
3,299	0	0	0	0
39,447	0	0	0	0
5,241,618	0	0	6,444	0
0	0	4	0	0
0	0	18	0	0
0	0	0	0	0
4,179	4,708	0	690	1,216
0	0	0	0	0
0	0	0	0	0
0	0	0	0	0
0	0	0	0	0
227	164	0	26	0
12,123,000	4,366,000	96,000	340,000	(16,000)
0	0	0	0	0
(1,500)	0	(1,770)	30,529	0
0	0	0	0	0
36	0	0	0	0
0	0	0	(2,188)	(4,762)

Circuitus, Ltd Finsa, S.R.L.

Desarrolo Vial al Mar, S.A.S. Grupo Via Central, S.A. Pilemburg, S.A.

Autop. del Guadalmedina Conc. Española, S.A. GSJ Maintenance Ltd

N6 Operations Ltd
N6 Concession Holding Ltd
N6 Concession Ltd

Sociedad Concesionaria Vespucio Oriente, S.A. Operadora Avo, S.A.

Consorcio Stabile VIS Societá C.P.A. Enervalor Naval, S.L.

Tecnologias Extremeñas del Litio, S.L. Concesionaria AP-1 Araba, S.A. Biomasas del Pirineo, S.A.

Residuos de Construcción de Cuenca, S.A. Sacorec, S.L.

Boremer, S.A.

Compost del Pirineo, S.A.

Cultivos Energéticos de Castilla, S.A. Desgasificación de Vertederos, S.A. Gestión de Partícipes del Biorreciclaje, S.A. Reciclados y Tratamientos Andaluces, S.L. Iniciativas Medioambientales del Sur, S.L. Inte RCD Huelva, S.L.

Alcorec, S.L.

Inte RCD Bahía de Cádiz, S.L. Inte RCD, S.L.

Metrofangs, S.L.

Parque Eólico La Sotonera, S.L. Valdemingómez 2000, S.A.

Shareholders' equity

36,788

Reconciliation

Procesador de Información del Servicio de Aseo, S AC Technology, S.A.S.

Plataforma por la Movilidad, A.I.E. Geida Skikda, S.L.

Geida Tlemcen, S.L. Valorinima Group

Desarrollos Eólicos Extremeños, S.L. M 50 (D&C) Ltd

N6 Constructuion Ltd

Pazo de Congreso de Vigo, S.A. Caraminer, S.A.

Repsol YPF, S.A. Puerta Oro Toledo, S.L. Camarate Golf, S.A.

Haçor Domus, Compra e Venda de Imoveis, Ltda H.S.E. - Empreendimentos Imobiliários, Lda

% stakeShareholding value

Via Expresso

115,249

21,185,000

151

(92,296)

49% 49%

56,472 74

38% 13,796

12,839

40% 5,136

(116)

40% (46)

40,063

5% 2,003

356

45% 160

1,012

50% 506

45% 0

96,468

(90,383)

45% 50%

(41,533) 48,234

50% 11

150

47% 70

40% 21

25% 1

768

33% 254

44% 34

(62)

50% (31)

(58)

5% (3)

2,098

50% 1,049

(1)

50% 0

(8)

44% (4)

(181)

50% (90)

(209)

33% (70)

5.0% 0

271

50% 135

(107)

20% (21)

(755)

10% (76)

(472)

20% (94)

(219)

33% (73)

13,508

22% 2,918

8,333

30% 2,513

5,832

40% 2,333

314

15% 46

20% 6

15% 1

20,193

33% 6,664

36,468

50% 18,234

6,926

20% 1,091

1,318

50% 659

(7,701)

43% (3,273)

43% (38,413)

38,278

(3,446)

42%

15,924

139

50% 70

50% 43

(166)

50% (83)

4,150

50% 2,075

140

33% 46

33% (1,137)

37,500

19% 7,013

7,730

11% 859

40% 2

7.83%

1,657,959

5,988

35% 2,096

174

26% 45

166

39% 65

28% 16

33,413

11% 3,742


Adjustments
22,656	33,816	0	0
0	74	0	0
(2)	13,798	67,158	0
0	5,136	1,347	0
(46)	0	2	0
2,003	0	0	0
3	157	412	0
0	506	358	0
0	0	0	0
(41,533)	0	21,004	0
1	48,233	1,097	0
(2)	13	135	0
4	66	0	0
1	20	0	0
(1)	2	0	0
0	254	0	0
0	34	0	0
(31)	0	0	0
(3)	0	0	0
0	1,049	0	0
1	(1)	0	0
(4)	0	0	0
(90)	0	0	0
(70)	0	0	0
0	0	0	0
(1)	136	0	0
(21)	0	0	0
(76)	0	0	0
(94)	0	0	0
(73)	0	0	0
(2)	2,920	0	0
0	2,513	0	0
1	2,332	0	0
(1)	47	0	0
0	6	0	0
1	0	0	0
0	6,664	0	0
(6)	18,240	0	0
(0)	1,091	0	0
(1)	660	0	0
(3,273)	0	0	0
(38,413)	0	0	0
15,924	0	0	0
1	69	0	0
(2)	45	0	0
(99)	16	0	0
1	2,074	0	0
2	44	0	0
(1,156)	19	0	0
(1)	7,013	0	0
1	858	0	0
0	2	0	0
553,619	1,104,340	0	0
2,096	0	0	0
1	44	0	0
65	0	0	0
16	0	0	0
70	3,672	17,120	0

Transfer restriction on equity

PPE

Cash outflow commitments

The Group classifies companies as associates when it exercises significant influence over their management, regardless of whether its holding is less than 20%, in fulfilment of the conditions of IAS 28.

11. Contribution by proportionately consolidated companies

The tables below present the financial highlights of the proportionately consolidated companies in 2019 and 2020:

2019

Thousands of euros

Non-current assetsCurrent assets

Non-current liabilitiesCurrent liabilitiesRevenueExpenses

Consorcio GDL Viaducto, S.A. de C.V. Consorcio Túnel Guadalajara, S.A. de C.V.

6 32

15,010 23,119

2,574

177

7,429 23,994

13,042 14,675

17,511 21,928

2020

Thousands of euros

Non-current assets

Consorcio GDL Viaducto, S.A. de C.V. Consorcio Túnel Guadalajara, S.A. de C.V.

5 28

Current assets 9,061 20,667

Non-current liabilities

2,248

154

Current liabilities 4,674 21,316

RevenueExpenses

1,882 4,097

6,045 6,170

There were no contingent liabilities or commitments in respect of the investments of the above-mentioned businesses in 2020 and 2019.

12. Receivables from concessions

As indicated in Note 3.d.10), following application of IFRIC 12 some concession projects have been classified as financial assets and recorded under "Receivables from concessions". This item includes receivables from the public authorities granting the concessions under the various agreements.

Pursuant to IFRIC 12 "Service Concession Arrangements", these companies recognised a financial asset instead of an intangible asset for the building investment undertaken (construction services) from the moment that they have an unconditional right acknowledged in legally enforceable agreements to receive cash or other financial assets from the grantor for the construction services provided, either through the collection of specific measurable amounts, or through the collection of any shortfalls between the amounts received from users of the public services and the specific or measurable amounts.

Pursuant to the instructions in the Interpretation of IFRIC 12, the Group recognised a receivable by way of a consideration for construction services in relation to Sociedad Concesionaria Rutas Limarí, S.A., as the company has an unconditional contractual right to receive cash or other financial assets from the grantor (investment subsidies), the value of which discounted at the risk rate for this type of instrument is equivalent to 64.97% of the estimated cost of construction. This is therefore a combined concession asset consisting of intangible assets, and also a financial asset in the percentage stated.

The movements in this heading in 2020 and 2019 were as follows:

2019

Thousands of euros

Non-current receivables from concessions TOTAL NON-CURRENT

Current receivables from concessions TOTAL CURRENT

Balance at 31-Dec-18 3,552,834 3,552,834 293,238 293,238

Restatements and transfers

1,383,610 1,383,610 37,443 37,443

(2,444)

(299,197) 0

(2,444)

(299,197) 0

(286,932)

2020

Thousands of euros

Non-current receivables from concessions

Impairment of non-current receivables from concessions TOTAL NON-CURRENT

Current receivables from concessions

Impairment of current receivables from concessions TOTAL CURRENT

Balance at 31-Dec-19 4,576,454 0 4,576,454 328,912 0 328,912

Restatements and transfers

1,718,229

(2,545)

(506,721)

(698) 1,717,531 40,358 (124) 40,234

(2,545) (506,721)

(340,187)

0 (340,187)

292,066 0

Changes in	Exchange	Balance at
scope of	rate effect	31-Dec-19
(58,349)	4,576,454
(58,349)	4,576,454
(6,903)	328,912
(6,903)	328,912
Changes in	Exchange	Balance at
scope of	rate effect	31-Dec-20
(193,849)	5,591,568
32	(666)
(193,817)	5,590,902
(15,134)	523,822
3	(121)
(15,131)	523,701

292,066 0

506,721 0 506,721

0 0 0 3,152 0 3,152

In 2019, construction work on the Colombian, Mexican, Italian, Uruguayan and Paraguayan concessions continued to progress with respect to 2018. In addition, two new companies located in Chile were included in the scope of consolidation and began to make a contribution under this heading, with the contribution in the case of the motorway being significant. These relate to the companies Sociedad Concesionaria Ruta de la Fruta, S.A. and Sociedad Concesionaria Aeropuerto de Arica, S.A.

In 2020, there were significant increases in the accounts receivable for concession projects due to progress with work on concessions in Colombia, Paraguay, Italy and Mexico, mainly. There was also a contribution by a new company that entered the consolidation scope during the year, representing the Group's entry into the concession market in the United States, namely the company Sacyr Plenary Utility Partners Idaho LLC.

The disposals in both years relate to the amounts received from the grantor authority by each concession operator.

The detail of "Receivables from concessions" is as follows:

2020

2019

Thousands of euros	NON-CURRENT	CURRENT	NON-CURRENT	CURRENT
Autovía del Noroeste Concesionaria de CARM, S.A.	35,482	11,163	41,051	11,318
Total motorways in Spain	35,482	11,163	41,051	11,318
Sociedad Concesionaria Vial Sierra Norte, S.A.	59,991	55,850	84,887	60,232
Sociedad Concesionaria Valles del Desierto, S.A.	84,662	14,508	87,193	20,866
Sociedad Concesionaria Ruta del Limarí, S.A.	95,373	9,890	102,661	11,243
Sociedad Concesionaria Rutas del Desierto, S.A.	138,618	12,570	136,452	13,296
Sociedad Concesionaria Valles del Bio Bio, S.A.	272,451	21,620	269,026	22,777
Sociedad Concesionaria Ruta del Algarrobo, S.A.	248,516	20,557	242,585	27,014
Sociedad Concesionaria Ruta de la Fruta, S.A.	37,013	0	21,178	0
Concesionaria Vial Unión del Sur, S.A.S.	443,965	126,323	379,063	0
Sociedad Concesionaria Vial Montes de María, S.A.S.	171,255	35,612	172,994	0
Consorcio PPP Rutas del Litoral S.A.	67,394	8,721	76,794	704
Rutas del Este, S.A.	155,391	0	78,660	0
Autovia Pirámides Tulancingo Pachuca, S.A. de CV	47,878	20,184	59,200	26,796
Unión Vial Río Pamplonita, S.A.S.	201,796	23,468	115,301	0
Superstrada Pedemontana Veneta, S.R.L.	2,594,210	0	1,941,044	0
Total motorways abroad	4,618,513	349,303	3,767,038	182,928
Motorways	4,653,995	360,466	3,808,089	194,246
Sociedad Concesionaria Salud Siglo XXI, S.A.	131,558	49,294	151,955	49,373
Hospital de Parla, S.A.	68,174	15,948	70,794	15,702
Hospital del Noreste, S.A.	63,563	17,513	67,212	17,242
Consorcio Operador de Hospitales Regionales del Sur, S.A. de C.V.	90,183	39,378	65,329	10,448
Hospitals	353,478	122,133	355,290	92,765
Intercambiador de Transportes de Moncloa, S.A.	127,605	15,386	129,333	15,487
Interc. de Transporte de Plaza Elíptica, S.A.	44,380	7,855	45,390	7,986
Transport hubs	171,985	23,241	174,723	23,473
Valoriza Servicios Medioambientales, S.A.	35,484	3,467	38,756	4,222
Waste treatment	35,484	3,467	38,756	4,222
Myah Gulf Oman Desalination Company SAOC	159,323	13,093	180,578	13,606
Sacyr Agua Norte, S.A.	2,075	652	0	0
Valoriza Agua, S.A.	888	91	877	150
Water	162,286	13,836	181,455	13,756
Sociedad Concesionaria Aeropuerto del Sur, S.A.	1,352	0	382	0
Sociedad Concesionaria Aeropuerto de Arica, S.A.	0	0	276	0
Sacyr Plenary Utility Partners Idaho LLC	195,393	0
Sacyr Construcción, S.A.U (Gisa police stations)	16,929	558	17,483	450
Other	213,674	558	18,141	450
RECEIVABLES, CONCESSION PROJECTS	5,590,902	523,701	4,576,454	328,912

Concession periods and the investment commitment are as follows:

Committed investment (thousands of euros)

Concession period

Motorways

Autovía del Noroeste Concesionaria de CARM, S.A. Sociedad Concesionaria Valles del Desierto, S.A. Sociedad Concesionaria Ruta del Limarí, S.A. Sociedad Concesionaria Rutas del Desierto, S.A. Sociedad Concesionaria Valles del Bío Bío, S.A. Sociedad Concesionaria Rutas del Algarrobo, S.A. Sociedad Concesionaria Ruta de la Fruta, S.A. Sociedad Concesionaria Vial Sierra Norte, S.A. Concesionaria Vial Unión del Sur, S.A.S.

2001

2026 0

2011

2025 0

2018

2044

2,209

2014

2043 0

2016

2046 0

2015

2045 302

2026

2064 535,941

2014

2039 33,837

2015

2044 95,274

Sociedad Concesionaria Vial Montes de María, S.A.S. Consorcio PPP Rutas del Litoral, S.A.

2015

2043 2,853

2017

2041

Rutas del Este, S.A.

2017

2047

297,151

Autovia Piramides Tulancingo Pachuca, S.A. de C.V. Unión Vial Río Pamplonita, S.A.S.

2017

2027

2017

2044

264,196

Superstrada Pedemontana Veneta, S.R.L.

2022

2061

2,258,000

Hospitals

Hospital de Parla, S.A. Hospital del Noreste, S.A.

Sociedad Concesionaria Salud Siglo XXI, S.A.

Consorcio Operador de Hospitales Regionales del Sur, S.A. de C.V.

2007 2007 2017 2020

2035 0

2032 0

2043 0

Transport hubs

Intercambiador de Transportes de Moncloa, S.A. Interc. de Transporte de Plaza Elíptica, S.A.

2008 2007

2043 0

2040 0

Waste treatment

Valoriza Servicios Medioambientales, S.A.

Los Hornillos waste treatment centre La Paloma plant

2011

2030 0

2003

2023 0

Las Calandrias Guadarrama green areas

2003

2022 0

2008

2022 0

Cleaning and solid urban waste collection, Majadahonda

2012

2022 0

Water

Alcudia desalination plant

Myah Gulf Oman Desalination Company SAOC Sacyr Agua Norte

2010 2019 1994

2025 0

2038 0

2024 980

Other

Sacyr Construcción, S.A.U (Gisa police stations) Sociedad Concesionaria Aeropuerto del Sur, S.A. Sociedad Concesionaria Aeropuerto de Arica, S.A. Sacyr Plenary Utility Partners Idaho, LLC

2007 2018 2023 2020

2032 0

2024 4,667

2034 16,177

2070

There are no significant undertakings for repairs or replacements either now or in the future, other than the habitual repairs and replacements for this type of company. Concession arrangements usually include the following infrastructure procedures:

a) Major repair and replacement works when they are carried out with respect to periods of use exceeding one year, enforceable in relation to the conditions that must be met by each of the infrastructures to make them suitable for the services and activities for which they are used.

b) The procedures required to revert the infrastructure to the grantor entity at the end of the concession, in the state of use and operation set forth in the concession arrangement.

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Sacyr SA published this content on 29 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 March 2021 09:19:03 UTC.

Market Closed - BME Other stock markets 09:05:22 15/05/2024 pm IST			5-day change	1st Jan Change
3.748 ^EUR	+0.97%		+5.16%	+19.90%

29/04	Transcript : Sacyr, S.A., Q1 2024 Earnings Call, Apr 29, 2024
29/04	Sacyr, S.A. Reports Earnings Results for the First Quarter Ended March 31, 2024	CI

Transcript : Sacyr, S.A., Q1 2024 Earnings Call, Apr 29, 2024	29/04
Sacyr, S.A. Reports Earnings Results for the First Quarter Ended March 31, 2024	29/04	CI
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ACS increases its profit by 17% in 2023 boosted by construction abroad	01/03	RE
ACS posts 17% rise in 2023 profit stoked by construction overseas	29/02	RE
Transcript : Sacyr, S.A., 2023 Earnings Call, Feb 29, 2024	29/02
Sacyr's profit jumps 39% in 2023 on sale of cleaning business	29/02	RE
The Ibex-35 is unmoved by the avalanche of results as it awaits macro news from the U.S.	29/02	RE
Sacyr, S.A. Reports Earnings Results for the Full Year Ended December 31, 2023	29/02	CI
Sacyr initiates capital increase for stock dividend	09/01	RE
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ACS hires SocGen to sell services unit in 700 million-800 million euro deal, Expansion reports	13/11	RE
Transcript : Sacyr, S.A., Nine Months 2023 Earnings Call, Nov 03, 2023	03/11
Sacyr's profit soars 36% thanks to toll road concessions	03/11	RE
Sacyr's nine-month profit soars 36% on motorway concessions	03/11	RE
Sacyr, S.A. Reports Earnings Results for the Nine Months Ended September 30, 2023	03/11	CI
Morgan Stanley Infrastructure Inc. acquired Valoriza Servicios Medioambientales, SA from Sacyr, S.A for ?600 million.	31/23/31	CI
EU Commission OKs Morgan Stanley Infrastructure's Takeover of Sacyr Unit	09/23/09	MT
SACYR : H1 23: Focus on highways to boost margins	09/23/09
Sacyr About to Complete Sale of Stake in N6	07/23/07	CI
Sacyr, S.A. Reports Earnings Results for the Half Year Ended June 30, 2023	28/23/28	CI
Transcript : Sacyr, S.A., H1 2023 Earnings Call, Jul 28, 2023	28/23/28
Corporate results drive the Ibex-35 to pre-pandemic highs	28/23/28	RE

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