KEY FINANCIAL DATA. Financial highlights. Share price performance. Net Asset Value. Investment portfolio. Industry diversifi cation

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Darren Hubbard
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2 KEY FINANCIAL DATA 12 Financial highlights 12 Share price performance 15 Net Asset Value 18 Investment portfolio 22 Industry diversifi cation

3 KEY FINANCIAL DATA Financial highlights (In millions of euros unless otherwise indicated) Share capital at year-end Shareholders equity at year-end 3,077 2,952 2,765 2,863 Ordinary shares in issue (thousands), average for the year 58,235 58,232 58,226 58,363 Net profi t (299) 406 Dividends Earnings/(Loss) per share (euros) (5.14) 6.96 Dividend per share (euros) Note: Per share data calculated using the average number of shares outstanding during the year. Share price performance Closing share price (in euros per share) High Low Close Market capitalisation at 31/12 (millions of euros) 2,367 2,478 2,059 1,762 Volume traded Number of securities (thousands) 8,323 6,721 9,890 12,989 In millions of euros Daily average (millions of euros) Dividend yield (on closing price for the year) 2.5% 2.4% 2.8% 13.2% P/E ratio (on closing price for the year) 9.8 x 10.9 x neg. 4.3 x 12 ANNUAL REPORT CORPORACIÓN FINANCIERA ALBA

4 Alba s share price fell by 4.5% in, underperforming the Ibex 35 and the Eurostoxx 50, which gained 3.7% and 1.2%, respectively. Alba share price performance in SHARE PRICE ( ) EUROS IBEX 35 (REBASED TO ALB) mar. jun. sep. Source: Bloomberg. KEY FINANCIAL DATA 13

5 KEY FINANCIAL DATA Alba s strong share price performance over the last ten years shows the signifi cant value creation achieved by our company in the long term. From December 2004 to the end of Alba s share price increased by 58.0%, while the Ibex 35 and the Eurostoxx 50 rose 13.2% and 6., respectively. The graph shows the depth of the stock market plunge of 2007 and 2008, the signifi cant recovery from the trough in March 2009 and the subsequent relapse in 2011, caused mainly by the sovereign debt crisis in the euro zone. The recovery in the second half of 2012 followed the decisive action taken by the European Central Bank and the agreements reached by the Eurogroup in July of that year, which substantially diminished the uncertainties over a possible bailout of Spain and the future of the single currency. We believe that the European Central Bank s expansive monetary policies should help equities perform well relative to other asset types in Alba share price performance over the last 10 years compared to Ibex 35 and Eurostoxx 50 ALBA IBEX 35 BASE 100 EUROSTOXX Source: Bloomberg. 14 ANNUAL REPORT CORPORACIÓN FINANCIERA ALBA

6 Net Asset Value (In millions of euros unless otherwise indicated) Data at 31/12 Gross Asset Value (1) 3,422 3,034 2,697 2,951 Net Asset Value (2) 3,668 3,231 2,765 2,937 Net Asset Value in euros per share (2) Share price in euros per share Discount to Net Asset Value 35.5% 23.4% % (1) Includes investments in listed and unlisted companies, properties and, where relevant, net cash position. (2) Before taxes. Includes net fi nancial debt and other assets and liabilities. In, the Gross Asset Value increased by 12.8% thanks to the share price performance of ACS, Acerinox, BME and Viscofan and the increased value of the Company s investments in unlisted companies. Net Asset Value, meanwhile, which includes changes in the Company s net financial position, increased by 13.5% in the year. The performance of the Net Asset Value since the end of 2004 can be seen in the chart below, which shows the sharp increase in and the significant drop in 2011, partly due to the extraordinary dividend paid that year: Net Asset Value before taxes (31 Dec.) MILLIONS OF EUROS 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, ,293 3,174 4,901 4,452 3,614 4,030 4,089 2,937 2,765 3,231 3, KEY FINANCIAL DATA 15

KEY FINANCIAL DATA The following chart shows the performance of the Net Asset Value per share before taxes over the same period, at 31 December each year: Net Asset Value per share before taxes (31

7 KEY FINANCIAL DATA The following chart shows the performance of the Net Asset Value per share before taxes over the same period, at 31 December each year: Net Asset Value per share before taxes (31 Dec.) EUROS INFORME ANUAL CORPORACIÓN FINANCIERA ALBA

Over the last 10 years, Alba s NAV per share increased by 81.3%, representing an annual compound growth of 6.1%, and outperformed the Ibex 35 (1.2% annually compound growth).

8 Over the last 10 years, Alba s NAV per share increased by 81.3%, representing an annual compound growth of 6.1%, and outperformed the Ibex 35 (1.2% annually compound growth). The growth in NAV per share is attributable to the value creation of our investees during the period, the good results of the investment and divestment decisions made during the period and the positive effect for our shareholders of the purchases and subsequent amortisations of own shares. The different performance of the share price and the NAV per share over time is due to the change in the discount at which the Alba share trades in the market compared to the value of its assets. At the end of 2004 the shares were trading at a discount of 26.0% while this had increased to 35.5% at the end of (from 23.4% in December 2013). NAV before taxes per share compared to share price SHARE PRICE ( ) NAV PER SHARE ( ) DISCOUNT EUROS DISCOUNT % 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Source: Bloomberg for share prices. DATOS MÁS SIGNIFICATIVOS 17

01% ACS 13.88% BOLSAS Y MERCADOS ESPAÑOLES S 8.

9 KEY FINANCIAL DATA Investment portfolio Structure of the main investees in Alba s portfolio at 31 December (1): ACERINOX 23.09% EBRO FOODS 10.01% ACS 13.88% BOLSAS Y MERCADOS ESPAÑOLES S 8.28% CORPORACIÓN FINANCIERA ALBA (2) HOCHTIEF 61.40% 18 ANNUAL REPORT CORPORACIÓN FINANCIERA ALBA

10 VISCOFAN 6.79% ANTEVENIO 14.54% INDRA 12.53% CLÍNICA BAVIERA 20.00% DEYÁ CAPITAL S.C.R % 8.78% MECALUX 15.60% PEPE JEANS 12.00% PANASA 26.48% ROS ROCA 17.3 FLEX 19.75% OCIBAR 21.6 ENCAMPUS SIRESA CAMPUS 32.75% 17.44% (1) Other investees: Artá Capital S.G.E.C.R., S.A.U. (81.01%) and Corporación Empresarial de Extremadura, S.A. (1.01%). (2) Interests held through the companies Alba Participaciones, S.A.U., Balboa Participaciones, S.A.U. and Deyá Capital, S.C.R., all fully owned by Corporación Financiera Alba, S.A. KEY FINANCIAL DATA 19

11 KEY FINANCIAL DATA Portfolio value at 31 December : Listed Companies ( 1 ) Market value (2) Shareholding (%) Millions of euros Share price ( ) Stock exchange ACS , Madrid Acerinox Madrid BME Madrid Ebro Foods Madrid Indra Madrid Viscofan Madrid Clínica Baviera Madrid Total market value 2,788.0 Total book value 2,214.7 Unrealised capital gains Unlisted companies Book value Real Estate Independent appraisal (1) Investments under equity method. In addition, at 31 December, investments included a 14.54% holding in Antevenio carried at 1.6 million euros within Financial assets at fair value through profi t or loss. (2) Prices at closing price in December. 20 ANNUAL REPORT CORPORACIÓN FINANCIERA ALBA

Details of portfolio performance over the last three fi nancial years are given below: Shareholding (%) LISTED COMPANIES 31-12- Change 31-12-2013 31-12-2012 ACS 13.88 (2.42) 16.30 18.30 Acerinox 23.

12 Details of portfolio performance over the last three fi nancial years are given below: Shareholding (%) LISTED COMPANIES Change ACS (2.42) Acerinox (0.41) Bolsas y Mercados Españoles Ebro Foods Indra Viscofan Clínica Baviera Antevenio (4.17) Prosegur UNLISTED COMPANIES Change Mecalux Pepe Jeans (0.13) Panasa Ros Roca Flex Ocibar EnCampus Siresa Campus During two new investments in listed companies were added to the portfolio, a 8.28% interest in BME and 6.79% in Viscofan. In addition, Alba increased its interest in Ebro Foods and Indra and sold shares in ACS, Acerinox and Antevenio. The decrease in ownership in Acerinox was due to the capital increase carried out by the company as a result of the issue of new shares to those shareholders who opted to the scrip dividend. Unlike in previous fi nancial years, there were no changes in the structure of the unlisted portfolio. KEY FINANCIAL DATA 21

13 KEY FINANCIAL DATA Industry diversifi cation By aggregating Alba s listed, unlisted and real estate investments, the Company s investments breakdown by sector results as follows (%): Breakdown of Alba s portfolio by industry (31 Dec.) 9% 1% 13% 2% 1% 9% 1% 11% 2% 1% 25% 2% 5% 21% 3% 3% 7% 18% 4% 1% 21% 5% 5% 5% 3% 5% 18% 8% 8% 20% 8% 8% 7% 7% 19% 10% 8% 8% 8% 20% 11% 7% 10% 7% 5% 3 54% 7% 10% 22% 33% 22% 6 65% 68% 61% 58% 45% 41% 4 38% CONSTRUCTION AND SERVICES BANKING AND FINANCE SECURITY FOOD RETAIL REAL ESTATE TECHNOLOGY OTHER INDUSTRIAL TELECOMMUNICATIONS 22 ANNUAL REPORT CORPORACIÓN FINANCIERA ALBA

The composition of Alba s portfolio has changed substantially over the last years as a result of investments and divestments and the investees stock market performance.

14 The composition of Alba s portfolio has changed substantially over the last years as a result of investments and divestments and the investees stock market performance. The incorporation of new sectors and investees, together with the divestments implemented, have reduced the weighting of the Construction and Services sector (ACS) which in the last decade has been the largest sector represented in the portfolio. Since 2008 Alba has invested in new sectors such as Food (Ebro Foods and Viscofan), Technology (Indra) and Banking and Finance (BME) and has increased its presence under the Other heading (including stakes in Clínica Baviera and Antevenio and investments in Mecalux, Pepe Jeans, Panasa, Ros Roca, Flex, Ocibar, EnCampus and Siresa Campus). On the other hand, the Company, over the last 10 years, has completely disposed its investments in Retail (Carrefour) in 2006, and Security (Prosegur) in All these movements have ensured a more diverse portfolio, reducing the combined weight of the Construction and Services and Industrial sectors from 8 at the end of 2008 to 60% at the end of last year. DATOS MÁS SIGNIFICATIVOS 23

KEY DATA ECONOMIC AND FINANCIAL SHARE PRICE PERFORMANCE NET ASSET VALUE INVESTMENT PORTFOLIO INDUSTRY DIVERSIFICATION

KEY DATA 22 23 26 30 34 ECONOMIC AND FINANCIAL SHARE PRICE PERFORMANCE NET ASSET VALUE INVESTMENT PORTFOLIO INDUSTRY DIVERSIFICATION 21 KEY DATA ECONOMIC AND FINANCIAL In millions of euros unless stated