2011

2012

2013

37,2

11,79,7

Milestones in 201305Page 18

5 / 2013 Annual Report ABENGOA WATER4 / 2013 Annual Report ABENGOA WATER

Chairman´s Letter

Company Profile

Key Figures

Projects

01Page 06

02Page 08

03Page 12

04Page 14

Table of Contents

7 / 2013 Annual Report ABENGOA WATER6 / 2013 Annual Report ABENGOA WATER

Abengoa Water believes in

investment in technology as a driver

for growth. This year our R&D

program made great strides. Most

notable were the lauch of our ZELDA

project for sustainable desalination,

the Value From Urine project

developed in collaboration with the

European Union, and the closing of

our TEcoAgua project with the

Spanish Ministry of Innovation.

Attribute all of our successes this

year, as every year, the commitment

of our staff. Our team excels in the

water market because we have a

deep understanding of the technical

and financial aspects of our field. Not

only are we a team with decades of

combined experience in the field, we

are also globally minded and

understand that while water issues

are global, the solutions are local and

must be adapted to each region.

After watching this sector evolve over

the past 20 years I believe that we are

in a very exciting moment. The

advances being made in water

treatment technology and financial

backing are tremendous and continue

to open up markets in new regions

and markets all the time. The work

that we are doing at Abengoa Water

will alleviate one of the greatest

challenges our generation faces,

water scarcity and water pollution

through the creation of new water

sources as well as the treatment and s

ubsequent reuse of polluted water.

I am proud of the work we did last

year and look forward to great things

to come in 2014.

I am pleased to share our 2013

Annual Report, which is highlighted

by significant progress in Abengoa

Water’s strategic plan. The year

started strong as we were awarded

the Desalination Company of the Year

award at the 2013 Global Water

Awards which were held in our own

backyard in Seville, Spain.

We saw a 25.5 % growth of our

consolidated EBITDA over last year, as

well as a 21.4 % increase in sales. In

terms of production, 2013 was a

record year with a total production of

102.2 million cubic meters and an

installed capacity of 615,000 cubic

meters per day. It is also notable that

our Skikda plant achieved 100% of its

production capacity.

We continue to expand as a global

company through the work we’ve

done this year. Our groundbreaking

desalination plant in Qingdao, China

was commissioned in January, and

entered into production.

Additionally, we continue to reinforce

and expand our presence in China

through the acquisition of a

Beijing-based water treatment

technology company.

In Africa, the construction of our

Accra desalination plant continues on

schedule and is expected to be

commissioned by the end of 2014.

We were also awarded our fourth

desalination plant in Northern Africa,

a desalination plant in Agadir,

Morocco.

Additionally, we continue to expand

in the Latin American market through

a desalination project for industrial

water production in Northern Chile. In

the United States we are developing a

strong pipeline of projects thanks to

the company’s investment in the

region. This year we were selected as

the final candidate for a project that

would supply and treat groundwater

in Texas.

After watching

this sector evolveover the past 20years I believe thatwe are in a veryexciting moment

“The yearstarted

strong as we wereawarded the Desalination Company of theYear award at the2013 Global WaterAwards

“

”

01 | Chairman’s Letter

Carlos Cosín Fernández

CEO & ChairmanAbengoa Water

”

Development

Finance

Design - Build

Procurement

Construction

O&M

Technical Consulting

R&D

9 / 2013 Annual Report ABENGOA WATER8 / 2013 Annual Report ABENGOA WATER

The increasing demand for high quality water coupled with the effects of climate change has resulted a global water scarcitycrisis. We commit to use our human and financial capital to create sustainable, technology-driven solutions to the water scarcity crisis and improve living conditions for humans

Abengoa Water is technology-driven water company that provides integrated solutions for municipal and industrial clients.

·Design, built, operation and finance of water treatment plants·Turn key solutions·Operation and maintenance·Process technology·Water infrastructure services

Our markets and solutions:

Desalination Water treatment Wastewater

treatment

Reuse

We develop projects throughcombining our capacity for projectfinance, design, build, R&D, andoperation & maintenance.Additionally, we offer high value services such as technical consulting,delegated management projects, andthe management of water basinsthrough our innovative technologicalcapability.

02 | Company Profile

Municipal WaterAbengoa Water in the world

Energy Refining Mining Oil & Gas

Industrial Water

2%

0,5%Office

Project

Staffdistribution

1%

21%

58%

0,5%8%

9%

%

Abengoa Water has a extensive international presence. Our team is made up of highly experienced, local teams build by localpersonnel. We currently operate in the countries displayed in the following map:

11 / 2013 Annual Report ABENGOA WATER10 / 2013 Annual Report ABENGOA WATER

Abengoa Water invests in R&D and aims to improve theperformance of existing products in the water market andthe develop of completely new technologies that solve problems in the water market.

In additon to our offices and projects Abengoa Water alsooperates an R&D center located in Seville, Spain, whichprovides us with a competitive advantage. The center consists of over 3,000 square meters dedicated to pilotplants, laboratories, workshops, a state of the art controlroom, showroom, and a capacity for over 70 researchers.

In 2013 we invested 4.7 million euro in R&D for researchand the development of in-house technology which provideour plants and processes with the lastest technology.

Technology and innovation

In adherance with our committment to transparency andrigor, the Abengoa Water Annual Report is supported byfour independently verified reports in the following areas:

·Annual Economic Data Report

·Internal SOX (Sarbanes Oxley) report

·Corporate Social Responsibility Report

·The design and application of the company’s Risk Management System that complies with the ISO 31000 regulation

AuditCorporate Social Responsiblity (CSR) is a key factor in thedevelopment of Abengoa Water and is one of thefundamental pillars of the company’s strategy.

All our business activity is aligned with our CSR policy. Fromthe implementation of policies, our business model andbehavior, to our management systems, it is taken into account in all dimensions of the company.

Additional, in 2013 we renewed the Integrated Certificationof Quality Control, Environment, and Prevention (ISO 9001,ISO 14001 y OSHAS 18001) as well as the verification ofemissions through GEI.

CSR

Desalination Company ofthe Year 2012

Recognitions2012

Desalination Deal of theYear 2010. Qingdao(China)

2010

Desalination Plant of theYear 2007. Cartagenaphase I & II (Spain)

2008

Honorable Mention WaterCompany of the Year

2011

2011

Desalination Company ofthe Year 2009

2009

International Developer ofHydraulic Infrastructures;

Desalination Deal of the Year2006. Beni Saf (Algeria)

2007

4.7 million euro

in R&D

13 / 2013 Annual Report ABENGOA WATER12 / 2013 Annual Report ABENGOA WATER

2011 2012 2013

45.0

72

50.6

03 | Key Figures

Revenue (millions EUR)

2011

2012

2013

37.2

11.79.7

EBITDA* (millions EUR)

EMEA* 25.3

Spain 20

Asia 26.5

Rest of countries 0.2

Total 72 M€

Revenue by geographical area (millions EUR)

2013

2012

2011

478.5

546.3

620.2

Total assets (millions EUR)

2011 2012 2013

3.4

4.94.7

R&D+i Investment (millions EUR)

Total 1,021,100 m /d

Design-Build and Operation115,000

Design-Build406,100

Concessions500,000

3

Total installed capacity (m3/d)

2011 2012 2013

335

369

391

Human capital

2013

2012

2011 80,671,220

98,801,736

102,166,507

Production (m3/year)

(*) Earnings before interest, tax, depreciation and amortization.

(*) Europe, Middle East and Africa, excluding Spain

15 / 2013 Annual Report ABENGOA WATERABENGOA WATER

04 | Projects

GeographyAlgeria

ClientSonatrach y Algerienne desEaux

StatusIn operation since March2009

O&M Period25 years

TechnologyReverse osmosis

Investment$ 136 million

Capacity100,000 m3/d

Skikda

Desalination plants under concession:

GeographyIndia

ClientChennai MetropolitanWater Supply and SewerageBoard (CMWSSB)

StatusIn operation since July 2010

O&M Period25 years

TechnologyReverse osmosis

Investment$ 108 million

Capacity100,000 m3/d

Chennai

Algeria

2005

2006

2007

2008

2009

2010

2011

2012

2013

25 years

Reverseosmosis

$ 136 million

GeographyAlgeria

ClientSonatrach y Algerienne desEaux

StatusIn operation since September 2011

O&M Period25 years

TechnologyReverse osmosis

Investment$ 294 milion

Capacity200,000 m3/d

Honaine

Algeria

2005

2006

2007

2008

2009

2010

2011

2012

2013

25 years

Reverseosmosis

$ 294 million

GeographyChina

ClientQingdao Municipal Engineeringand Public Utility Bureau andQingdao Water Group

StatusIn operation since January2013

O&M Period25 years

TechnologyReverse osmosis

Investment€ 135 million

Capacity100,000 m3/d

Qingdao

China

2005

2006

2007

2008

2009

2010

2011

2012

2013

25 years

Reverseosmosis

€ 135 million

India

2005

2006

2007

2008

2009

2010

2011

2012

2013

25 years

Reverseosmosis

$ 108 million

14 / 2013 Annual Report

17 / 2013 Annual Report ABENGOA WATER16 / 2013 Annual Report ABENGOA WATER

Geography

Algeria

Client

Sonatrach y Algerienne des

Eaux

Status

In construction

O&M Period

25 years

Technology

Reverse osmosis

Investment

$ 264 million

Capacity

200,000 m3/d

Ténès

Algeria

2005

2006

2007

2008

2009

2010

2011

2012

2013

25 years

Reverseosmosis

$ 264 million

Geography

Ghana

Client

Ghana Water Company

Ltd.

Status

In construction

O&M Period

25 years

Technology

Reverse osmosis

Investment

$ 126 million

Capacity

60,000 m3/d

Accra

Ghana

2005

2006

2007

2008

2009

2010

2011

2012

2013

25 years

Reverseosmosis

$ 126 million

Desalination O&M:

GeographySpain

ClientAlmeria City Council

StatusIn operation since January 2005

O&M Period15 years

TechnologyReserve osmosis

InvestmentEPC: € 44 millionAnnual O&M budget: € 3 million

Capacity50,000 m3/d

AlmeríaSpain

2005

2006

2007

2008

2009

2010

2011

2012

2013

15 years

Reverseosmosis

€ 44 million

GeographySpain

ClientEnvironmental Ministry of Spain

StatusIn operation since January 2005

O&M Period15 years

TechnologyReserve osmosis

InvestmentEPC: € 55.4 millionAnnual O&M budget: € 10.5 million

Capacity65,000 m3/d

CartagenaSpain

2005

2006

2007

2008

2009

2010

2011

2012

2013

15 years

Reverseosmosis

€ 55.4 million

GeographySeville, Spain

ClientEmasesa

StatusIn operation since2008

O&M Period6 years

TecnologyActivated sludge andanaerobic digestion

InvestmentEPC: € 7.8 millionAnnual O&M budget: € 1.5 million

Capacity50,000 m3/d

TabladaSpain

2005

2006

2007

2008

2009

2010

2011

2012

2013

6 years

Activated sludge and anerobic digestion

€ 7.8 million

Wastewater treatmentO&M:

19 / 2013 Annual Report ABENGOA WATER18 / 2013 Annual Report ABENGOA WATER

Renewal of the Quality

Control

Desalination

Company of

the Year

Closing of the

TecoAgua R&D

project

We were recognized as DesalinationCompany of the Year at theprestigious 2013 Global WaterAwards, organized by Global WaterIntelligence.

Strategy investment

in China

Abengoa Water has established astrategic agreement with aBeijing-based water technologycompany.

Commissioning of

the Qingdao

Desalination

Plant

This project is the first desalinationplant developed under the projectfinance model in China and wascompletely financed by local bankswith an investment of 134 millioneuro.

Abengoa finalized the research project CENIT TecoAgua which worked to develop alternative waterresources with a budget of 18 millioneuro. The project was spearheaded byAbengoa Water and supported by 10companies and 22 research centers.

During the project, over 39 prototypes, six products (in pre-commercial phase), and morethan 20 innovative processes in watertechnology were patented.

Skikda achieves

100 % of its capacityFinanced by the European Unionunder the Seventh Framework Program for R&D Technology.

The objective of the ValueFromUrineproject is to develop an effective,energy efficient system to recuperatenutrients from urine.

Environment and Preventioncertifications (ISO 9001, ISO 14001 yOSHAS 18001).

ISOOSHAS

ISOOSHAS

The commencement

of the

ValueFromUrine

project

05 | Milestones in 2013

Signing of an MoU with

AES Gener to develop a

desalination plant in Chile

for energy production in

the industrial market

Abengoa will be responsable for theengineering, construction and subsequentoperation of the plant, which will have atotal budget of 26 million USD and willsupply over 19,200 m3 of water per daytowards the generation of energy in central Angamos.

Reactivation of

construction of Ténès

project

This project is Abengoa Water’s thirddesalination plant in Algeria. Constructionis scheduled to be completed in September of 2014.

Skikda is one of the first projectsdeveloped under the project financemodel in Algeria.

Beginning of ZELDA

project with the

General Environmental

Direction of the

European Union

The key objective of the ZELDA project is todemonstrate the economic and technicalviability of sustainable desalinationtechnology.

The project, coordinated by the CTMFoundation, has a budget of 2.3 millioneuro and Abengoa Water will be responsable for the management of 40 %of the total budget.

Awarded the

desalination project in

Agadir, Morocco

The plant will have a capacity of100,000 m3/day and will be our firstdesalination project in Morocco andfourth in Northern Africa.

21 / Informe Anual 2013ABENGOA WATER20 / 2013 Annual Report ABENGOA WATER