Fersa Energías Renovables, S.A. Financial Report

Transcription

1 2007 Fersa Energías Renovables, S.A. Financial Report

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3 2007 Fersa Energías Renovables, S.A. Financial Report

4 01 Presentation

5 01. Presentation p.2 President s Letter 02. Fersa Group p.6 Main figures p.10 Board of Directors and representative committees p.11 Quotation p.14 Milestone of the accounting year p.16 Post balance sheet events p.17 Results distribution proposal 03. Business development p.20 Eolian: Spain p.27 Eolian: International p.28 Eolian: Panama p.39 Eolian: Estonia p.30 Eolian: Poland p.31 Eolian: Italy p.22 Eolian: China p.33 Biogas/Solar Photovoltaic: Spain p.34 Biogas: Spain p.35 Solar Photovoltaic: Spain 04. Financial Statements p.3 A. Financial Statements Fersa Energías Renovables, S.A. p.3 B. Financial statements Fersa Group consolidated

6 01 PRESENTATION President s letter Dear shareholders, We will always remember this year we spent as a far-reaching one in the Company s history; this year has marked a turning point. Year 2007 was loaded of events that made Fersa one of the reference companies in renewable energies in the world, both nationally and internationally. This year we went from quotation in Second Market to be in Continuous Market (SIBE), what did the company became an emblem for the history, for being the first quoted company in renewable energies of the Spanish stock market. Furthermore, we increased from a net equity of 44 to 192 million Euros, through a Capital s Increase which was fully covered in the Preference Subscription Period. It shows the trust and support from all of you in our project. This year, Fersa signed different agreements which allowed company s attributable power to increase from 217 MW to 1,678 MW. This increase means more than 650% and Company s share was revaluated a 99.5% until closing the year in 5 Euros. All this was the result of our team s effort, who strives to grow up and to keep an independent, dynamic and professional company s spirit which is clearly showing its great field s knowledge, its stability and its clear entrepreneurial project. Likewise, our staff and its behaving are also creating a company s philosophy. One of the keys of our success is the clear Company s entrepreneurial course, which I will not get tired to underline. In 2007, Fersa consolidated itself as the great pure project of independent company in renewable energies, a long term project whose purpose is to keep on growing, giving day per day a greater value to its shareholders. So, we can not forget that Fersa has to look for new markets which let it grow up bringing, as I said, a higher profitability to its projects. This year, we also started the Company s internationalization from being exclusively in Spanish market to be in eight countries: Spain, Italy, Panama, Estonia, Poland, India, France and China. p.2 PRESENTATION FERSA ENERGÍAS RENOVABLES financial report 2007

7 For all this reasons, 2007 has been a far-reaching year in Fersa s life. For all this reasons, 2007 has been a far-reaching year in Fersa s life. It is evident that we are about to achieve the iceberg s top and, step by step, we are working on Fersa as an entrepreneurial project reference which collects from any point of view a profitability model for our shareholders and a sustainable one for our planet. We are not resigning ourselves and we are working in order to keep on showing, next year, all Fersa s capability to going on a project with a present and with a better future. Thank you very much for your trust in our project which encourages us to keep on improving for you all. José Mª Roger Ezpeleta Fersa Energías Renovables, S.A. s President. p.3 PRESENTATION FERSA ENERGÍAS RENOVABLES financial report 2007

8 02 Fersa Group

9 01. Presentation p.2 President s letter 02. Fersa Group p.6 Main figures p.10 Board of directors and representative committees p.11 Quotation p.14 Milestone of the accounting year p.16 Post balance sheet events p.17 Results distribution proposal 03. Business development p.20 Eolian: Spain p.27 Eolian: International p.28 Eolian: Panama p.39 Eolian: Estonia p.30 Eolian: Poland p.31 Eolian: Italy p.22 Eolian: China p.33 Biogas/solar photovoltaic: Spain p.34 Biogas: Spain p.35 Solar photovoltaic: Spain 04. Financial Statements p.3 A. Financial statements Fersa Energías Renovables, S.A. p.3 B. Financial statements Fersa Group consolidated

10 02 FERSA GROUP Main figures FERSA ENERGÍAS RENOVABLES, S.A. - FINANCIAL REPORT Balance sheet Stockholders equity 25,166,822 25,149,760 39,996,894 40,039, ,969,278 Social Capital 24,099,569 24,099,569 37,755,975 37,755,975 75,511,950 Reserves 680, ,742 2,054,844 1,520, ,471,172 Profit and loss 387, , , , ,156 Resources obtained through capital increase 10,600, ,022, ,023,900 Result account Total incomes 775, ,680 1,061,565 1,867,165 4,813,344 Advice to partecipated companies 80,500 84, , ,111 Dividends and partecipated interests 711, , ,345 1,580,351 1,658,210 Financial incomes from Treasury 64, , , ,295 2,958,023 Other exploitation costs 261, , , ,557 2,026,126 Benefit before Corporate Income Tax 441, , , ,683 1,304,645 Corporate Income Tax 12.3% 21.6% 0.0% 0.0% 24.4% Net profit 387, , , , ,156 Dividend 348, , , , ,111 Pay-out 90% 109% 387% 90% 100% Ratios Shares at closing year no. 24,099,569 24,099,569 37,755,975 37,755,975 75,511,950 Shares with right to dividend (weighted) no. 14,674,911 24,099,569 35,922,649 37,755,975 75,511,950 Profit from individual share Profit from weighted share Dividend from weighted share Quotation at December 31, (Euros/share) Annual quotation variation 7.0% 5.6% 5.3% 202.5% 99.5%* Dividend profitability about last quotation 2.2% 1.3% 1.7% 0.5% 0.3% Figures in Euros. (*) Adjusted for capital increase. p.6 FERSA GROUP FERSA ENERGÍAS RENOVABLES financial report 2007

11 FERSA GROUP Main figures 02 GRUPO FERSA GROUP FERSA CONSOLIDATED CONSOLIDADO Balance de sheet situación Fondos Stockholders equity propios 24,419,675 38,927,405 44,339, ,360,950 Social Capital Capital social 24,099,569 37,755,975 37,755,975 75,511,950 Reserves Otras reservas 320,106 1,171,430 6,583, ,849,000 Cuenta Result account de Resultados Total Ingresos Incomes 995,505 1,179,597 3,680,515 7,741,112 Net Importe turnover neto de la cifra de negocios 995,505 1,179,597 3,679,772 7,523,164 Other Otros incomes ingresos ,948 Participation Participaciónin enincomes company beneficios sociedades 33, , , ,079 with puesta equity en equivalencia method Other Gastosexploitation de explotación costs 666, ,629 1,188,091 2,721,498 Other Otras ganancias profit and loss pérdidas 378,995-11,397-1,535 52,874 Consolidate Beneficio consolidado benefits before antescorporate de impuestos Income Tax 442,621 1,057,250 1,983,282 3,229,413 Corporate Impuesto sociedades Income Tax (%) 34.5% 4.9% 18.6% 28.6% Consolidated Beneficio consolidado profit of the del year ejercicio 290,101 1,005,786 1,615,142 2,307,213 Profit Beneficio attributed atribuido to external a sociospartners externos 37,267 61, , ,582 Profit Beneficio attributed atribuido to Parent a la sociedad Company dominante 252, ,300 1,331,333 1,506,631 Figures in euros. Figures in euros. + 13% 110% in incomes 150% in EBITDA in net result p.7 FERSA GROUP FERSA ENERGÍAS RENOVABLES financial report 2007

12 02 FERSA GROUP Main figures Stockholders equity Million Euros Net profit and dividend Million Euros Consolidated net profit (NIIF) Dividend 376% own resources + p.8 FERSA GROUP FERSA ENERGÍAS RENOVABLES financial report 2007

13 FERSA GROUP Main figures 02 Attributable power 1,800 1,600 1,400 1,200 1, MW On promotion Authorized/on building On exploitation Attributable power on exploitation MW Aggregate production Gwh p.9 FERSA GROUP FERSA ENERGÍAS RENOVABLES financial report 2007

14 02 FERSA GROUP Board of directors and representative committes Board of Directors President Members of Board D. José María Roger Ezpeleta Grupo Catalana Occidente, S.A. represented by Mr. Jorge Enrich Izard Caja de Ahorros y Monte de Piedad de las Baleares represented by Mr. Antonio Reus French Mytaros B.V. represented by Mr. José Vicens Torradas Pefarval, S.L. represented by Mr. Jorge Campins Figueras BCN Godia, S.L. represented by Mr. Manel Torreblanca Ramírez D. Manel Barangé Bofill D. Esteban Sarroca Punsola D. Ignacio García-Nieto Portabella Secretary not member of Board D. Xavier Amat Badrinas Auditing Committee President Members of Board D. Esteban Sarroca Punsola Caja de Ahorros y Monte de Piedad de las Baleares represented by Mr. Antonio Reus French D. Ignacio García-Nieto Portabella Appointment and Remunerations Committee President Members of Board D. Manel Barangé Bofill D. Esteban Sarroca Punsola D. Manel Torreblanca Ramírez General Manager D. Ignacio Moreno Hernández p.10 FERSA GROUP FERSA ENERGÍAS RENOVABLES financial report 2007

15 + FERSA GROUP Quotation 02 Fersa s shares quotation during 2007 has been marked by the beginning of shares engagement in Continuous Market of Spanish Stock Exchange. Since April 23, 2003 the company s shares have been allowed to quotation in the Second Market for Small and Medium Companies of Barcelona Securities Market. In April 2007 Fersa s shares have been admitted to negotiation in the First Market of Barcelona Stock Exchange and in the First Market of Madrid Stock Exchange and, subsequently, in May , have been included into the Continuous Market (SIBE). This fact has meant an important qualitative jump in the liquidity share s level. Quotation summary accounting year Quotation at Quotation at Adjusted yearly variation (*) 99.5% Annual Variation Ibex % Average medium diary volume (shares) In the Second Market (from January 2 to April ) 117,138 In SIBE (from May 2 to December ) 714,199 In the year 524,771 Diary effective average 4,272,363 Stock Exchange capitalization at ,559,750 Figure in Euros. (*) Adjusted by capital increase. p.11 FERSA GROUP FERSA ENERGÍAS RENOVABLES financial report 2007

16 02 FERSA GROUP Quotation After its inclusion in the Continuous Market, the Company has made a capital increase for an amount of 151 million Euros, with issuing price of 4 Euros for share. This increase has been closed in July, during Preferring Subscription Period. Capital increase June 2007 Period From 19 June 2007 to 3 July 2007 New issued shares 37,755,975 Proportion Issuing price 4.00 Actual amount 151,023,900 Shares before increase 37,755,975 Shares after increase 75,511,950 Quotation before increase Current value of rights 3.10 Quotation ex.right 7.10 Adjustment factor Rights quotation First day 2.89 Last day 3.20 Maximum 3.20 Minimum 2.70 Negotiated rights 12,607,968 Figures in Euros. 1x1 Fersa s shareholders have obtained a revaluation near to 100% + p.12 FERSA GROUP FERSA ENERGÍAS RENOVABLES financial report 2007

17 FERSA GROUP Quotation 02 Quotation ( /share) Quotation evolution E F M A M J J A S O N D Million of bonds Negotiation volume Adjusted quotation Non adjusted quotation p.13 FERSA GROUP FERSA ENERGÍAS RENOVABLES financial report 2007

18 02 FERSA GROUP Milestone of the accounting year MARCH :: It is reached an agreement with ENHOL Group in order it could bring to Fersa eolian projects for an initial power of 223 MW. 04 APRIL :: Admission to negotiation of Fersa s shares to the First Market of Barcelona Stock Exchange. :: It is reached an agreement for the acquisition of 70.3% of the Company Castellwind 03, S.L. which is holder of promotion of 3 eolian parks for 115 MW en Tivissa (Tarragona). :: It is reached an agreement with companies Explotaciones Energéticas Sinia XXI, S.L. and Totvent 2000, S.A., companies shared by Banc Sabadell in order to bring to Fersa eolian parks on promotions, with a foreseen total power of 73.2 MW, of which 55.5 MW will be attributable to Fersa. :: Admission to negotiation of Fersa s shares in the First Market of Madrid Stock Exchange. 05 MAY :: Integration of Fersa s shares in Interconnection Spanish Market System (SIBE). :: It is reached an agreement for acquisition of eolian parks on promotion in Italy, for 270 MW. :: It is reached an agreement for acquisition of eolian parks on promotion in Panama, for 368 MW. :: Acquisition of a share of 75% of the Company ÖU Est Wind Power, company holder of an eolian park in Estonia of 75 MW. :: Acquisition of a share of 50% in the company promoter of renewable energies Energía Cijara, S.L. :: Shareholders General Meeting approved the payment of a dividend corresponding to results of 2006 of 686, Euros and increase of Company s social capital of 37,755,975 shares, with issuing price of 4 Euros for share, for a total amount of 151 million Euros. p.14 FERSA GROUP FERSA ENERGÍAS RENOVABLES financial report 2007

19 FERSA GROUP Milestone of the accounting year JULY :: Capital increase for a total of 151 million Euros is fully subscribed and paid out in the Preferring Subscription Period. :: It is reached a final agreement with ENHOL Group for bringing to Fersa eolian parks with total power of 354 MW in France, Poland and India. OCTOBER 10 :: The Board of Directors approves to propose to the General meeting of Shareholders the bringing of several companies with eolian parks in different transaction stages for a total power of 570 MW in return for a no money capital increase: contributing companies are ENHOL Group, Banc Sabadell, Caja Granada, and shares in parks already participated by Fersa. :: Ending of building of eolian parks of Hinojal I, Hinojal II and Zarzuela II, belonging to Parque Eólico Hinojal, S.L., a company participated by Fersa, for a total of 36 MW. DECEMBER 12 :: Obtaining of administrative authorization of eolian park Els Pessells of MW in the town hall of Horta de Sant Joan, belonging to the Company Orta Eólica, S.L., participated by Fersa p.15 FERSA GROUP FERSA ENERGÍAS RENOVABLES financial report 2007

20 02 FERSA GROUP Post balance sheet events FEBRUARY :: In February, , the General Meeting of Shareholders agreed a no money capital increase through which several entrepreneurial groups have brought to Fersa several companies with eolian parks in different development stages. This operation has included parks in Spain, France and Poland. This capital increase has been realized through the issuing of 64,491,828 new shares with issuing price of 4,262 Euros for share, for a total amount of million Euros. This increase has meant the joining of companies for 571 MW. :: Gestora Fortovoltaica de Castellón, S.L. puts in motion its 11 solar photovoltaic plants of 100 Kw for a total power of 1.1 MW located in Coves de Vinromà (Castellón). :: It is reached an agreement for the creation of a Joint venture with the Chinese company Shandong Lubei Enterprise Group Company for the development of 10,000 MW eolian in China. Fersa will have a participation of 48 MW which has all permissions and authorization to start the building. :: It is reached a cooperation agreement with funds manager Green alliance SGECR, S.A. for the development of renewable projects in Spain. Green manages participated funds for European Bank of Investments (BEI). :: It is reached an agreement for the development of eolian parks in Russia with local promoters for a total of 575 MW. 571 MW are incorporated trough this capital s increase+ p.16 FERSA GROUP FERSA ENERGÍAS RENOVABLES financial report 2007

21 FERSA GROUP Results distribution proposal 02 The results distribution proposal of the year 2007 is as follows: Propuesta Results distribution de proposal Euros Distribution Base de reparto basis Profits Pérdidas and y ganancias losses 986, Issuing Prima deprice emisión 14,918, TOTAL 15,904, Euros for shares Euros Euros for shares Distribution Distribución To A Reserva legal reserve Legal 14,918, To A Reserva voluntary voluntaria reserve To A dividendos dividends 986, TOTAL 15,904, p.17 FERSA GROUP FERSA ENERGÍAS RENOVABLES financial report 2007

22 03 Business development

23 01. Presentation p.2 President s letter 02. Fersa Group p.6 Main figures p.10 Board of directors and representative committees p.11 Quotation p.14 Milestone of the accounting year p.16 Post balance sheet events p.17 Results distribution proposal 03. Business development p.20 Eolian: Spain p.27 Eolian: International p.28 Eolian: Panama p.39 Eolian: Estonia p.30 Eolian: Poland p.31 Eolian: Italy p.22 Eolian: China p.33 Biogas/solar photovoltaic: Spain p.34 Biogas: Spain p.35 Solar photovoltaic: Spain 04. Financial Statements p.3 A. Financial statements Fersa Energías Renovables, S.A. p.3 B. Financial statements Fersa Group consolidated

24 03 BUSINESS DEVELOPMENT Eolian: Spain On promotion Authorized/on building On exploitation Spain (On exploitation) Company Park Location Start up Power % Fersa Attributable exploitation (MW) power (MW) Parque Eólico Altos Cruz de Hierro, Ojos Albos, Ávila, Ávila/ % 18.6 del Voltoya, S.A. Villacastín y Ampliación Cruz de Hierro Segovia Parque Eólico Monte Altos de Cartagena, Navas del Marqués Ávila % 2.5 de las Navas, S.L. y Navazuelo Eólica el Pedregoso A y B Cádiz Oct % 23.8 Pedregoso, S.L. Eólica del Pino, S.L. Pedregoso D Cádiz Oct % 6.0 Parque Eólico Hinojal I, Hinojal II Cádiz Oct ,0% 16.2 Hinojal, S.L. Zarzuela II TOTAL Spain (Authorized/ Building) Company Park Location Start up Power % Fersa Attributable exploitation (MW) power (MW) Catalana d Energies Renovables, S.L. Mudéfer y Mudéfer II Tarragona % 24.4 Empordavent, S.L. Escambrons Lérida 48,0 76.0% 36.5 Electravent, S.L. Tramuntana Gerona % 14.8 Orta Eólica, S.L. Els Pessells Tarragona % 33.2 Texte, S.L. Coll Ventós Tarragona % 5.3 Tossa del Vent, S.L. Tossa del Vent Tarragona % 7.4 TOTAL Spain (On promotion) Company Park Location Start up Power % Fersa Attributable exploitation (MW) power (MW) Eolener, S.L. Els Brois Tarragona % 12.9 Cater Eólica, S.L. Varios Cataluña % 12.0 Eólica Cijara, S.L. Fuenlabrada de los Montes Badajoz % 25.0 TOTAL p.20 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

25 BUSINESS DEVELOPMENT Eolian: Spain 03 Eólica el Pedregoso, S.L. and Eólica del Pino, S.L. On exploitation These two companies are exploiting 3 eolian parks contiguous for a total of MW: parks Pedregoso A (14.85 MW) and Pedregoso B (14.85) are hold by Eólica el Pedregoso, and park Pedregoso D (14.85 MW) corresponds to Eólica del Pino. These parks are located in Tarifa (Cadiz) and are made up of 9 wind turbines VESTA V90 of 1.65 MW each. The parks went on exploitation in October Company % Fersa Park Location Power (MW) Attributable power (MW) Eólica el Pedregoso, S.L. 80% Pedregoso A Cádiz Pedregoso B Cádiz Eólica del Pino, S.L. 40% Pedregoso D Cádiz TOTAL These parks have their own Transforming Substation (SET) El Pedregoso 20/66 KV which through underground line of 4 km of length evacuates energy produced to SET Facinas 66/220 KV. Through an air line of High Voltage of 15.7 km energy is dumped to the SET Puerto de la Cruz 220/400 KV, with a total power of 400 MW. Fersa holds a share of 80% in Eólica el Pedregoso and 40% in Eólica del Pino, even if in February it has increased its participation in Eólica del Pino until to 80%. The main figures for year 2006 and 2007 are as follows: Principales magnitudes Production Producción (GWh) Equivalent Horas equivalentes hours * 1,742 Incomes Ingresos 2,149 6,466 Net Beneficio profit Neto Distributed Dividendo repartido dividend 0 0 Pay-out (%) 0% 0% Own Recursos resources Propios 5,191 5,361 Financial Deuda Bancaria liability 54,914 45,132 Figures Cifras enin miles thousand de euros. (*) Year Inicio2006: de explotación Since exploitation octubre de starting 2006in October 2006 During the first months of the year the parks have been ending their start-up and have registered a production less than the one foreseen, situation that has modified itself during the second part of the year. p.21 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

26 03 BUSINESS DEVELOPMENT Eolian: Spain Parque Eólico Hinojal, S.L. On exploitation This company has started in the fourth trimester of 2007 the exploitation of 3 eolian parks (Hinojal I, Hinojal II and Zarzuela II) with a total of 36 MW in Tarifa (Cadiz). The total of wind turbines VESTAS V90 of 1.8 and 2 MW is of 19. The three parks are sharing with other eolian local parks the SET Los Siglos 20/66 KV, which through an underground line of 12 km of length evacuates energy produced to SET Facinas 66/220 KV. Through an air line of High Voltage of 15.7 km energy is dumped to the SET Puerto de la Cruz 220/400 KV, with a total power of 400 MW. Fersa holds a share of 45% in the company, being the remaining 55% in the hands of Corporación Caja Granada, S.A., even if in the first months of 2008 Fersa has increased its participation until a 100%. Company % Fersa Park Location Power (MW) Attributable power (MW) Parque Eólico Hinojal, S.L. 45% Hinojal I Cádiz Hinojal II Cádiz Zarzuela II Cádiz TOTAL Parque Eólico Altos del Voltoya, S.A. On exploitation Fersa holds a share of 30% in the company Parque Eólico Altos del Voltoya, S.A, a company which exploits 5 eolian parks located in the bordering zone of Avila and Segovia provinces, with a total power installed of MW. The breakdown of the parks and their power is as follows: Company % Fersa Park Location Power (MW) Attributable power (MW) Parque Eólico Altos del Voltoya, S.A. 30% Cruz de Hierro Ávila Ojos Albos Ávila Ávila Ávila Villacastín Segovia Ampliación Cruz de Hierro Ávila TOTAL p.22 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

27 BUSINESS DEVELOPMENT Eolian: Spain 03 Altos del Voltoya s Parks registered in 2007 a production of Gwh, a 7.9% less than the one registered in 2006, due to a scanty eolian resource during the year. The main figures from year 2003 to 2007 are as follows: Production Producción (GWh) Equivalent Horas equivalentes hours 2,320 1,939 2,119 1,967 1,811 Incomes Ingresos 8,069 7,193 11,444 11,676 8,797 Net Beneficio profit Neto ,745 3,397 1,335 Distributed Dividendo repartido dividend ,520 3, Pay-out (%) 100% 134% 92% 100% 54% Own Recursos resources Propios 6,743 8,141 10,647 11,287 9,568 Financial Deuda Bancaria liability 40,678 42,414 38,842 33,932 30,563 Figures Cifras enin miles thousand de euros. Parque Eólico Monte de las Navas, S.A. On exploitation Parque Eólico Altos del Voltoya, S.A. holds a share of 17% in the company Parque Eólico Monte de las Navas, S.A. The last company exploits 3 eolian parks with a power of MW in Avila s province. These parks share evacuation with Altos del Voltoya and are located at few kilometres from them. The main figures from year 2003 to 2007 have been as follows: Production Producción (GWh) Equivalent Horas equivalentes hours 2,162 2,002 1,947 1,894 2,146 Incomes Ingresos 6,613 6,162 8,310 8,315 8,254 Net Beneficio profit Neto 1, ,143 2,105 2,109 Distributed Dividendo repartido dividend 1, ,929 1,894 1,898 Pay-out (%) 90% 90% 90% 90% 90% Own Recursos resources Propios 7,635 8,459 9,229 7,811 8,589 Financial Deuda Bancaria liability 37,032 32,657 26,942 23,416 20,838 Figures Cifras enin miles thousand de euros. Booking the 17% of Parque Eólico Monte de las Navas, the total power attributable to Parque Eólico Altos del Voltoya amounts to MW. p.23 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

28 03 BUSINESS DEVELOPMENT Eolian: Spain Empordavent, S.L. Authorized/on building Empordavent, S.L. is holder of Administrative Authorization of eolian Park Els Escambrons of 48 MW, located in Almatret (Lerida). The park started evacuation infrastructures building, together with other local promoters, through the Company Aprofitament d Energies Renovables de l Ebre, S.L. (AERE), in which participates with 11 %. This evacuation has as most relevant infrastructure the SET Maials 132/400 KV for a total power of 750 MW. The company has reached an agreement with the producer Ecotecnia for installing 16 wind turbines EC 100 of 3 MW of nominal power. It is foreseen that the park will start its exploitation at the end of 2009, once finished the building of electric infrastructures of AERE. During 2007, Fersa has increased its participation in the company from 70% to 76%; in February 2008 has increased again its participation until to 100%. Company % Fersa Park Location Power (MW) Attributable power (MW) Empordavent, S.L. 76% Els Escambrons Almatret TOTAL p.24 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

29 BUSINESS DEVELOPMENT Eolian: Spain 03 Catalana d Energies Renovables, S.L. Authorized/on building Catalana d Energies Renovables, S.L. (CATER) is a company which has administrative authorizations for exploiting two eolian parks, Mudéfer and Mudéfer II for 57.6 MW in Caseres (Tarragona). These parks have started the building of evacuation infrastructures, together with other local promoters, through the Company Aprofitament d Energies Renovables de la Terra Alta, S.A. in which participates with a 30%. This evacuation has as most relevant infrastructures SET Fatarella 132/220 and SET Maials 132/400 KV for a total power of 750 MW. These parks will start exploitation at the end of 2009, once finished the building of electric infrastructures of AERTA. In 2007 it has been formalized an agreement of supply and installation with the producer Vestas for installing 32 wind turbines V90 of 1.8 MW. During 2007, Fersa has increased its participation in the company from 32.3% to 42.3%; in February 2008 has increased again its participation until to 100%. Company % Fersa Park Location Power (MW) Attributable power (MW) Catalana d Energies Renovables, S.L. 42.3% Mudéfer Caseres Mudéfer II Caseres TOTAL p.25 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

30 03 BUSINESS DEVELOPMENT Eolian: Spain Fercom Eólica, S.L. Authorized/on building This company participates with a 100% of the equity of 5 companies which develop so many eolian parks in Catalonia for a total of 105 MW. Comapny Park Power (MW) Attributable power (MW) Stage Evacuation La Tossa del Vent, S.L. La Tossa del Vent Authorized BERTA Texte, S.L. Coll Ventós Authorized BERTA Eolener, S.L. Els Brois On promotion BERTA Orta Eólica, S.L. Els Pesells Authorized AERTA Electravent, S.L. Tramuntana Authorized Others TOTAL The eolian parks Tossa del Vent, Coll Ventós and dels Brois foresee to evacuate the produced energy through evacuation infrastructures which the company BERTA, S.L., together with other local promoters, is negotiating and building. It is foreseen that these infrastructures could be operating at the end of Fersa holds a share of 70% in Fercom Eólica, S.L. even if in February has increased its share until to 100%. Eólica Cijara, S.L. On promotion In the last trimester of 2007 Fersa has acquired 50 % of company Eólica Cijara, S.L. This company is carrying out the promotion of an eolian park located in Fuenlabrada de los Montes (Badajoz) of 50 MW. The park is ending the administrative transaction of evacuation infrastructures. p.26 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

31 BUSINESS DEVELOPMENT Eolian: International 03 During this year 2007 Fersa has started in a resolute way a process of internalization which started its first steps in Fersa has concluded cooperation agreements and has acquired eolian parks in countries as Panama, Estonia, Poland, Italy, India, France and China. France Spain Estonia Poland Italy China Panama India p.27 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

32 03 BUSINESS DEVELOPMENT Eolian: Panama Enrilews, S.A. On promotion The company is carrying out the promotion of several eolian parks in Panamá for a total power of more than 400 MW. These parks are at the present in different development stages among which stand out the eolian park Toabré (150 MW) and the eolian park Mendoza (250 MW). The building of the first parks will start during Fersa holds a share in Enrilews, S.A. of 92%. On promotion Panama (On promotion) Company % Fersa Park Location Power (MW) Attributable power (MW) Enrilews, S.A. 92% Toabré Coclé Mendoza Panamá TOTAL p.28 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

33 BUSINESS DEVELOPMENT Eolian: Estonia 03 OÜ Est Wind Power Authorized/on building This company, participated by Fersa in a 75%, has at its disposal authorizations and permissions necessary to build an eolian park of 75 MW in Päite-Vaivina, in Estonia north-west coast, close to Russian frontier. It is the biggest eolian park of the three Baltic countries (Estonia, Latvia and Lithuania) promoted until this date. OÜ Est Wind Power is ending the signature of building and wind-turbines supply signature and is also closing financing contracts through Project Finance way. It is foreseen to start the building in the fourth trimester of 2008 and start exploitation of the park at the end of Authorized/on building Estonia (Authorized/on building) Company % Fersa Park Location Power (MW) Attributable power (MW) Öu Est Wind Power 75% Päite Vaivina Päite Vaivina TOTAL p.29 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

34 03 BUSINESS DEVELOPMENT Eolian: Poland Eólica Postolin Sp. Zoo Authorized/on building In the fourth trimester of 2007 Fersa has acquired form ENHOL Group 100% of the company Eólica Postolin Sp. Zoo. This company has at its disposal permissions and authorizations for the building of an eolian park of 40 MW located in Postolin. In the park will be installed 20 wind turbines Gamesa G90 of 2MW of nominal power. It is foreseen that the building will start during Authorized/on building Poland (Authorized/on building) Company % Fersa Park Location Power (MW) Attributable power (MW) Eólica Postolin Sp. Zoo 100% Postolin Postolin TOTAL p.30 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

35 BUSINESS DEVELOPMENT Eolian: Italy 03 Italy On promotion Fersa has reached an agreement for the acquisition of 100% of two eolian parks in Basilicata region called Palazzo San Gervasio of 60 MW and San Mauro Forte of 210 MW. These parks are ending the negotiation of permissions and administrative authorizations as well as the negotiation of evacuation infrastructures. On promotion Italy (On promotion) Park Location Power (MW) Palazzo San Gervasio La Basilicata 60 San Mauro Forte La Basilicata 210 TOTAL 270 p.31 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

36 03 BUSINESS DEVELOPMENT Eolian: China China Authorized/on building Fersa has reached an agreement with petrochemical Chinese group Shandong Lubei Enterprise for the constitution of a Joint Venture for the development of eolian parks in Chinese province of Shandong. Fersa will flaunt a 48% of JV, in which Lubei Enterprise will have a 40% and local partner the remaining 12%. In the first phase it will be built a park of 48 MW, even if the plan in the future contemplates the development until 10,000 MW. Authorized/on building China (Authorized/on building) Location % Fersa Power (MW) Attributable power (MW) Binzhou 48% TOTAL p.32 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

37 BUSINESS DEVELOPMENT Biogas/solar photovoltaic: Spain 03 Biogas (On exploitation) Photovoltaic (On building) Spain - Biogas (On exploitation) Company Plant Location Start Power % Fersa Attributable exploitation (MW) power (MW) Invetem Mediteránea, S.L. Basseta Blanca Valencia % 1.42 TOTAL Spain - Solar photovoltaic (On building) Company Plant Location Start Power % Fersa Attributable exploitation (MW) power (MW) Gestora Fotovoltaica de Castellón, S.L. Les Coves de Vinromá Castellón % 0.84 TOTAL p.33 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

38 03 BUSINESS DEVELOPMENT Biogas: Spain Invetem Mediterránea, S.L. On exploitation This company exploits an electric generator plant starting from energetic exploitation of biogas of urban Dumping site of Basseta Blanca, located in Ribarroja del Túria (Valencia). The installation stays within the Special Regime of electric energy production and has a power installed of 2 MW, distributed in 2 engines of 1 MW. The plant has an esteemed life of 10 years; therefore it is expected to produce electric energy with biogas until This peculiarity means that the production is decreasing in time, until its foreseeable exhaustion in In 2007, Invetem s production has located itself in 9.45 Gwh, according to which is established in the budget, and a 17.3% less than the one obtained in the previous year. The decrease in production is attributable to the production decreasing in time of the biogas plant. The main figures from the year 2003 to 2007 have been as follows: Production Producción (GWh) Incomes Ingresos ,122 1, Net Beneficio profit Neto Dividendodistributed repartido con charged cargotoaresults resultados Dividendodistributed repartido con withcargo chargea to reservas reserves Distributed Total dividendo dividend repartido total Pay-out (%) 468% 155% 241% 93% 100% Figures Cifras enin miles thousand de euros. Fersa holds a share of 70.8 % in the company being the remaining 29.2% in the hands of EMTE Group, which carries on the exploitation and maintenance of the plant. p.34 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

39 BUSINESS DEVELOPMENT Solar photovoltaic: Spain 03 Gestora Fotovoltaica de Castellón, S.L. On building This company is a holding of a joint of 11 companies which are carrying out the building of so many solar photovoltaic plants of 100 Kw of power each one, located in Les Coves de Vinromá (Castellón), for a total power of 1.1 MW as a whole. The company started solar installations building in December 2006 in virtue of the contract of turn-key building subscribed with Suntechnics Técnicas Solares, S.L., with a total investment of 7.9 million Euros. The project has a financing in Project Finance way of 6.7 million Euros. Fersa holds a share of 76% in the Company, being the remaining capital distributed among several private investors. Company % Fersa Plant Location Power (MW) Attributable power (MW) Gestora Fotovoltaica 76% Les Coves de Vinromá Castellón de Castellón, S.L. TOTAL p.35 BUSINESS DEVELOPMENT FERSA ENERGÍAS RENOVABLES financial report 2007

40 04 A. Financial Statements

41 01. Presentation p.2 President s letter 02. Fersa Group p.6 Main figures p.10 Board of directors and representative committees p.11 Quotation p.14 Milestone of the accounting year p.16 Post balance sheet events p.17 Results distribution proposal 03. Business development p.20 Eolian: Spain p.27 Eolian: International p.28 Eolian: Panama p.39 Eolian: Estonia p.30 Eolian: Poland p.31 Eolian: Italy p.22 Eolian: China p.33 Biogas/solar photovoltaic: Spain p.34 Biogas: Spain p.35 Solar photovoltaic: Spain 04. Financial Statements A. Financial statements Fersa Energías Renovables, S.A. p.3 Independent auditor s report Annual accounts: p.4 Balance sheet p.5 Profit and loss account p.6 Notes to financial statements p.47 Management report B. Financial statements Fersa Group consolidated p.3 Independent auditor s report Consolidated balance sheet: p.4 Balance sheet p.6 Profit and loss account p.7 Income and expenses recognised in the consolidated Shareholders net equity p.8 Cash flow statements p.9 Notes to consolidated financial statements p.68 Consolidated financial statements management report

42 FERSA ENERGÍAS RENOVABLES, S.A. Financial Statements and Management Report (With the Auditor s Report) December 31, 2007 This is a free translation of a report and financial statements originally issued in Spanish and prepared in accordance with generally accepted accounting principles in Spain. In the event of a discrepancy, the Spanish-language version prevails. This is not a sworn translation and the report has been translated to facilitate the comprehension of the Statutory Annual Accounts

43 This is a free translation of a report and financial statements originally issued in Spanish and prepared in accordance with generally accepted accounting principles in Spain. In the event of a discrepancy, the Spanish-language version prevails. This is not a sworn translation and the report has been translated to facilitate the comprehension of the Statutory Annual Accounts FINANCIAL AUDIT REPORT To the Shareholders of FERSA ENERGÍAS RENOVABLES, S.A. 1. We have audited the accompanying financial statements of FERSA ENERGÍAS RENOVABLES, S.A. which includes the balance sheet as of December 31, 2007, the profit and loss account and the notes to the financial statements for the year then ended. These financial statements are the responsibility of the directors of FERSA ENERGÍAS RENOVABLES, S.A. Our responsibility is to express an opinion on these financial statements as a whole based on the work performed. We conducted our audit in accordance with generally accepted auditing standards in Spain, which require the examination, by means of selective tests, of the documentation supporting the financial statements and evaluation of their presentation, of the accounting principles and of the estimates made. 2. According to the mercantile legislation, the Directors of FERSA ENERGÍAS RENOVABLES, S.A. present besides comparative balance sheets, profit and loss accounts and financing tables as of December 31, 2007, the figures for the previous year. Our audit opinion refers only to the financial statements as of December 31, We issued the audit report as of March 26, 2007 for the year ended at December 31, 2006, in which we expressed a qualified opinion. 3. As it is shown in Note 6, FERSA ENERGÍAS RENOVABLES, S.A. is the parent company of a Group of Companies which, according to the current Spanish legislation, is obliged to issue consolidated financial statements according to the content of the Article 42 and following to the Commerce Code. The impact that should have on the balance sheet and the profit and loss accounts by applying the consolidation criteria and valuation according to the International Financial Reporting Standards endorsed by the European Union, in order to give a true view of the activities and financial and equity situation of the Group, should mean an increase in the assets, the turnover and the results of the year 2007 of , and 521 thousand Euros, respectively, as well as a reserves decrease of thousand Euros. 4. In our opinion, the accompanying financial statements for the year 2007 present fairly, in all material respects, the equity and financial position of FERSA ENERGÍAS RENOVABLES, S.A., as of December 31, 2007 and of the results of its operations and its cash flow for the year then ended and contain the necessary and required information for a proper interpretation and understanding, in accordance with the generally accepted accounting principles and standards that were also applied in the previous year. 5. The accompanying management report for the year 2007 contains the explanations which the Directors consider appropriate about the Company situation, the evolution of its business and other matters, and it is not an integral part of the financial statements. We have checked that the accounting information in the above-mentioned management report is consistent with that contained in the financial statements for year Our work as auditors is confined to checking the management report with the aforementioned scope and does not include a review of any information other than that drawn from the accounting records of the Company. April 4, 2008 MOORE STEPHENS & SANTACANA AUDITORES Y CONSULTORES, S.A. (Original in Spanish signed by) Joan Siurana Tolrà Partner 3

44 FERSA ENERGÍAS RENOVABLES, S.A BALANCE SHEET AS OF DECEMBER 31 (Figures in Euros) ASSETS LIABILITIES FIXED ASSETS SHAREHOLDERS' EQUITY (Note 9) Setting-up costs (Note 5) , ,52 Subscribed capital , ,00 Financial fixed assets (Note 6) , ,30 Issuing premium , ,77 Reserves , ,53 Legal reserve , ,53 Voluntary reserves ,50 - Total fixed assets , ,82 Results , ,96 Total shareholders' equity , ,26 LONG-TERM CREDITORS (Note 10) Other long-term debts , ,82 Non demanded outlays on shares pending to be paid ,50 Long-term received deposits , ,09 EXPENSES TO BE DISTRIBUTED IN SEVERAL YEARS 1.808, ,00 Total long-term creditors , ,41 CURRENT ASSETS SHORT-TERM CREDITORS (Note 11) Debtors , ,79 Clients for selling and service's rendering ,83 - The Group and associated companies (Note 13) , ,57 Trade creditors , ,66 Sundry debtors 1.209,73 799,71 Other non-commercial debts ,50 - Public Administration (Note 12) , ,51 Public Administration (Note 12) 1.914,05 676,91 Temporary financial investments (Note 7) , ,86 The Group and associated companies' credits (Note 13) , ,80 Temporary financial investments , ,06 Short term nominal shares (Note 8) ,50 - Treasury , ,67 End-of period adjustments , ,10 Total current assets , ,42 Total short-term creditors , ,57 TOTAL ASSETS , ,24 TOTAL LIABILITIES , ,24 Attached notes from 1 to 17 are the main part of this balance sheet 4

45 FERSA ENERGÍAS RENOVABLES, S.A PROFIT AND LOSS ACCOUNT AS OF DECEMBER 31 (Figures in Euros) DEBIT CREDIT EXPENSES: INCOME: Fixed assets depreciation Net turnover , ,64 allowance , ,67 Other income - - Other operational costs , , , , , ,64 Operating profit - - Operating losses , ,27 Financial assimilated expenses , ,00 Income from participations on capital , ,46 Variation in the provisions for financial investments , ,41 Other interests and assimilated income , ,15 Negative exchange rate 10,43 Positive exchange rate 1.001, , , , ,61 Positive financial results , ,20 Negative financial results - - Profit from ordinary activities , ,93 Losses of ordinary activities - - Extraordinary expenses - - Extraordinary income - - Profit and loss account from previous years ,42 Income and profit from previous years , , ,00 - Positive extraordinary results ,00 - Negative extraodinary results ,42 Profit over tax , ,51 Corporate Income Tax , ,55 Profit of the year , ,96 Result of the year (losses) - - Attached notes from 1 to 17 form the main part of this profit and loss account 5

46 FERSA ENERGÍAS RENOVABLES, S.A. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2007 NOTE 1 - CONSTITUTION, HEAD OFFICE AND ACTIVITY OF THE COMPANY FERSA ENERGÍAS RENOVABLES, S.A. (hereinafter the Company) was set up in Barcelona in July 10, 2000 for indefinite length in time. The current head office is in Travessera de Gracia, 30 in Barcelona. Its aim is to promote all kind of activities related to the production of electricity power in a special regime, for which it could represent, take and hold shares, bonds, participations and rights in Trading Companies, whose corporate purpose is the promotion, building and exploitation of electricity power installations obtained from renewable sources of energies. Additionally, the Company could hold, keep, manage and dispose of all kind of bonds, shares securities, rights, fees or participations in individual or social companies, by its own, excluding the intermediaries and keeping safe the legislation of the Stock Market and Collective Investment Institutions. FERSA ENERGÍAS RENOVABLES, S.A. is the head holding of a Group of dependent companies, joint business and associated companies which produce electrical power in a special regime (wind, solar and biomass etc.) and that constitute the FERSA ENERGÍAS RENOVABLES GROUP. As a consequence, the Company is obliged to set up, besides its financial statements, also the consolidated financial statements of the Group. 6

47 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 2 - BASIS OF PRESENTATION Information basis The financial statements have been carried out according to the accounting records of the Company, having applied the current legislation in accountancy in order to show a fair view of the Company s net worth, financial position and results. According to the mercantile legislation, the financial statements 2007 present comparative balance sheets, the profit and loss accounts and the cash flow statement for the previous year. The financial statements of the year 2006 have been approved by the General Meeting of Shareholders hold in May, The Company Directors estimate that the financial statements 2007 will be approved by the General Meeting of Shareholders without any modification. As of November 20, 2007, it was published the RD 1514/2007, by which the new National Accounting Plan was approved, which went into effect in January, and has a compulsory application for the accounting years started from this date. The above mentioned Royal Decree establishes that the first annual accounts carried out according to the criteria contained in it have to be considered as first time annual accounts, therefore comparative figures will not be shown, although it is allowed to show previous year s comparative information as long as the information is adjusted to new plan. Additionally, this Royal Decree contains several temporary arrangements in which different applications criteria are allowed and voluntary adoption of specific exceptions to their first applications. The Company is carrying out a transition plan for its adaptation to new accounting arrangement which includes, among other aspects, the analysis of the differences of criteria and accounting standards, the assessment of the opening balance s date, the selection of accounting criteria and standards to be applied in the transition and the evaluation of the necessary modifications in the methods and information s system. Fair view The Company keeps minority and majority holding interests in different companies which were appropriately registered according to the accounting policies of the Spanish General Accounting Plan, as it is stated in Note 4. 7

48 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 2 - BASIS OF PRESENTATION (CONTINUATION) In March 31, 2008 the Company has set up the consolidated financial statements of the year 2007, according to the Article 42 of the Commerce Code and to the International Financial Reporting Standards, as adopted by the European Union, whose main figures are as follows: Total assets Shareholders equity Turnover Result of the year attributed to the Parent Company (profit) The Directors have presented separately the consolidated financial statements of the Fersa Group required by the current legislation. Presentation of figures All figures in this report are expressed in Euros, unless otherwise stated. NOTE 3 DISTRIBUTION OF LOSS AND PROFIT RESULTS IN 2007 The loss/profit distribution as of December 31, 2007, which will be proposed by the Directors to the General Meeting of Shareholders, is as follows: Distribution basis Profit and loss account Issuing premium Distribution Legal reserve Voluntary reserves Dividends , , ,07 ========== ,47 45, , ,07 ========== 8

49 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 4 - ACCOUNTING POLICIES The main accounting criteria and policies applied by the Company when preparing the financial statements have been as follows: Setting-up costs Setting-up costs are the incorporation and the capital increase costs which are registered at the amortization cost less consolidated depreciation. This amortization is performed in a period of maximum 5 years according to the current regulation. Financial fixed assets Securities included in the caption financial fixed assets are registered at the lowest value between the acquisition prices to the subscription or purchase and the market price, considering all incurred costs related to the investment as part from the acquisition price. These securities are devalued through the corresponding provision, when the market price is lower than the acquisition one. The market price is calculated, as the securities are not admitted at the Stock Exchange, according to the bookvalue which corresponds to the participations and is adjusted by possible capital gains when they are acquired and still remains. Temporary financial investments Temporary financial investments are valued at the lowest value between the acquisition price and market price. The underlying drop is charged to the account funding of a provision for negotiable securities of the profit and loss account. Own shares - Short-term - Own shares are valued at lowest value among the acquisition price, last day s accounting year quotation, average quotation of the last quarter or bookvalue. As for the difference between the stockholder equities acquisition price and the lowest amount according to three values a provision is made which is shown in the heading Nominal shares of the attached balance reducing the acquisition price. Short- and long-term debts Debts are registered at their nominal value distinguishing between short and long-term whether the due date is higher than or till 12 months, respectively, from the closing date of the financial year. 9

50 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 4 - ACCOUNTING POLICIES (CONTINUATION) Incomes and expenses Income and expenses are registered according to the accrual principle, i.e. they are allocated in accordance with real services they offer with independence from the established financial current. Outsourcing and management In January 29, 2004 the Company signed an administration and management contract with the company Fomento de Inversiones y Capital, S.L. (FOINCA), which has been extended in the year 2005 until July 19, In June, it has been made a revising substitution of the contract which had an indefinite duration and which established new salaries. Annual 1,50% of the equity valued according to the closing balance at the end of each month. Annual 4% of the net profit after taxes at the year end. 4% over the value of each acquisition and/or participations in companies kept by the Company by commission for broker of the transactions. This cost is registered in the caption Financial fixed assets of the fixed assets of the balance sheet. Since June 20, 2006 the contract will have an indefinite length but it could be cancelled in any time by the Company with a 5 years notice. If the Company decides to cancel it immediately, it should compensate to FOINCA, S.L. for an equivalent amount to the management of five years calculated over the value of the stock market capitalization. On the other hand, FOINCA could not terminate the contract without a one year s notice. In June 5, 2007 a new modification of the contract has been made according to which the parties agreed that FOINCA will exclusively dedicate itself to rendering of services to the Company. Corporation Income Tax Corporation Income Tax is calculated based on the modified account result by the differences between the accountancy and tax result, distinguishing whether they are permanent or temporary to determine the accrued Corporate Income Tax. The differences between the Corporation Income Tax to be paid and the expense of that tax are entered, as appropriate, in the anticipated or deferred Corporate Income Tax. Tax profit corresponding to bonus and deduction for investments is considered as a lower amount than the Corporate Income Tax of each financial year. 10

51 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 5 SETTING-UP COSTS The breakdown of the balance and its movement during the year 2007 has been as follows: Opening Closing balance Additions Amortization balance Capital Increase Costs , ,42 ( ,85) ,09 ========== ========== ========== ========== NOTE 6 FINANCIAL FIXED ASSETS The breakdown of the balance and its movement has been as follows: Opening balance Additions Decreases Reclassifications Closing balances Participations in the group companies , , , ,87 Participations in companies other the group , ,24 - ( ,03) ,74 Participations in associated companies , , , , , , ,93 Long-term credits of the group companies , ,88 ( ,10) , ,29 Long-term credits of associated companies , , , ,32 Long-term interests of the credits associated companies 2.020, ,99 ( ,02) , ,04 Note , ,17 ( ,12) , ,65 Purchase option , ( ,00) - Other financial assets Note , ,00 Total cost , ,63 ( ,12) , ,58 Depreciation ( ,41) ( ,00) - - ( ,41) , ,63 ( ,12) , ,17 11

52 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 FINANCIAL FIXED ASSETS (CONTINUATION) Direct and indirect shares in the Group companies and the main indirect shares in the group and associated companies correspond to: Negative results Dividend Result % shares Share Issuing from previous to be of the Company Direct Indirect Cost value Depreciation capital premium Reserves years charged year Eólica El Pedregoso, S.L 80% ,18 ( ,62) , , , (16.851,84) Invetem Mediterránea, S.L 70,83% ,38 ( ,51) , , , ,18 Empordavent, S.L 60% 16% , , (23.267,28) - (5.938,07) (*) Energia Renovable Mestral, S.L 80% , , ,00 - (8.503,16) - (6.057,55) (*) Eólica Del Pino, S.L 40% ,19 (50.039,35) , , , ,13 Parque Eólico Hinojal, S.L 45% , , ,20 - (33.344,46) ,78 (*) Parque Eólico Altos del Voltoya, S.A 30% ,60 ( ,93) , , ,15 Catalana d'energies Renovables, S.L. 15,65% 26,64% , , (79.294,31) ,82 (*) Energia Renovable Mestral Eólica, S.L 50% , , ,00 - (334,36) - (1.898,40) (*) Aprofitament d'energies renovables T.A. ( AERTA) - 20,63% ,00-2,43 (44.729,50) - (61.866,83) (*) Fercom Eólica, S.L. 70% , , (3.946,94) ,18 (*) La Tossa del Vent, S.L. - 70% , (9.221,73) - (1.115,51) (*) Texte, S.L. - 70% , (10.118,05) - (331,10) (*) Eolener, S.L. - 70% , (4.180,18) - (899,86) (*) Orta Eólica, S.L. - 70% , (3.115,05) - (290,65) (*) Electravent, S.L. - 70% , (4.950,40) - (2.142,07) (*) Gestora Fotovoltaica de Castellón, S.L. 76% , , ,00 668, (27.262,15) (*) Fotovoltaica Fer, S.L. - 76% , (77,48) (*) Weinsberg Ecotec, S.L. - 76% , (118,13) (*) Fotovoltaica Ecotec, S.L. - 76% , (36,83) (*) Joso Fotovoltaica, S.L. - 76% , (77,48) (*) Fotovoltaica Padua, S.L. - 76% , (77,48) (*) Fotovoltaica Vergos, S.L. - 76% , (80,79) (*) Fotovoltaica La Mola, S.L. - 76% , (77,48) (*) Inversions Trautt, S.L. - 76% , (77,48) (*) Fotovoltaica de Castelló, S.L. - 76% , (77,48) (*) Fotovoltaica de les Coves, S.L. - 76% , (77,48) (*) Inversions Vinroma, S.L. - 76% , (77,48) (*) Energía de Cijara, S.L. 50% , , (14,08) - (20,00) (*) Eólica Cijara,S.L. 50% , , (2.368,94) (*) Enrilews, S.A. 92% , , (11.705,25) (*)(a) Eolica Postolin Sp, z.o.o. 100% , , (106,00) (*)(b) Est Wind Power Oü 75% , , , ,00 (*)(c) Siljan Port, SL 80% , , (*) Fergest Biomasa, S.L. 50% , , ,00 (*) Fomento de Inversiones y Capital, S.L , ,00 - ( ,00) , ,93 ( ,41) ========== ========== (*) Companies which have not started their activity as of December 31, 2007 (a) Figures expressed in dollars (b) Figures expressed in slotys (c) Figures expressed in Estonian crowns 12

53 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 FINANCIAL FIXED ASSETS (CONTINUATION) Information about participating companies Eólica El Pedregoso, S.L. Eólica El Pedregoso, S.L. was set up in March 26, 2001 as a limited company for an indefinite length in time. Its corporate purpose is the building and exploitation of installations aimed to produce electricity power in a special regime according to the Royal Decree 661/2007. The current head office is in Málaga, calle Arenal, 21. Eólica El Pedregoso, S.L. share capital amounts to Euros , which is divided into social shares with a nominal value of Euros 10 each. Eólica El Pedregoso, S.L. and Eólica del Pino, S.L. have finished and are exploiting since October 2006 the building of three eolian parks in Tarifa (Cádiz). These parks are called Parque Eólico Pedregoso A, Parque Eólico Pedregoso B and Parque Eólico Pedregoso D. The first two parks are owned by Eólica El Pedregoso, S.L. and the third one belongs to Eólica del Pino, S.L. The settled power of each park is of 14,85 MW from a total of 44,55 MW. Both companies have their social shares pledged in favour of the banks Banco de Sabadell, S.A., Caixa d Estalvis de Catalunya, Caja de Ahorros del Mediterráneo, Instituto de Crédito Oficial, Dexia Sabadell Banco Local, S.A. y Barclays Bank, S.A., as a guarantee of the liabilities assumed by the banks through a contract, which finances the investment. Invetem Mediterranea, S.L. Invetem Mediterranea, S.L. was set up in January 30, 1998 as a limited company with an indefinite length in time. From October 2001 this company built and carried out exploitation of an electricity autogenerating plant in a Special Regime (biomass), with a power of 2MW, from the energetic exploitation of a dumping site gas called Baseta Blanca, located in Ribarroja del Túria (Valencia). The current head office is in Esplugues de Llobregat (Barcelona), Avenida Baix Llobregat 10. Invetem Mediterranea, S.L. share capital amounts to Euros , which is divided into 1200 social shares with a nominal value of 60,10 each. 13

54 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 FINANCIAL FIXED ASSETS (CONTINUATION) In December 21, 2005 the Regional Custom Unit of Barcelona Tax Agency initiated a Definitive Nonconformity Minute to Invetem Mediterránea, S.L., for the tributary concept of Special Tax on Hydrocarbons from 2001 to 2004, for using of biogas as fuel for electric power production. In this minute is retrieved a liquidation proposal which amounts to thousand Euros, 813 thousand Euros correspond to delay interests and the remaining to esteemed amount of the mentioned tax. In February 21, 2006 the Head of Custom and Special Taxes Regional Office confirmed the minute pronouncing the corresponding administrative proceedings. In 2006 the subsidiary company submitted the corresponding economicadministrative demand against the pronounced administrative proceeding, before the Economic-Administrative Regional Court of Catalonia, having been requested the corresponding proceeding s suspension. Fersa Energías Renovables, S.A. signed an agreement with EMTE, S.A., company to which acquired the share in Invetem Mediterránea, S.L. in 2002, by which if the mentioned liquidation against Invetem Mediterránea, S.L. was finally satisfied by the company, EMTE, S.A. pledges itself to re-buy Fersa Energías Renovables, S.A. s share in order that the last obtains a TIR of 10%; as of December 31, 2007, the resulting price for this re-buy would imply for Fersa Energías Renovables, S.A. a loss quantified in 401 thousand Euros. Consequently Fersa Energías Renovables, S.A. has booked a provision for depreciation of the participation in Invetem Mediterránea, S.L., esteemed in 401 thousand Euros, in order to cover the possible losses, derived from this process. Empordavent, S.L. Empordavent, S.L. was set up in May 4, 1999 as a limited company with an indefinite length in time. Its main activity is to promote the eolian park Els Escambrons with a power of 48 MW in Almatret (Lleida). The eolian park has at its disposal the administrative authorization and is processing the necessary licensees for building the evacuation infrastructures, which is in course jointly with other eolian promoters in the region, through the company Aprofitament d Energies Renovables de l Ebre (AERE), of which Empordavent has 11% of participation. The current head office is in Barcelona, Travessera de Gracia, 30. Empordavent, S.L. share capital amounts to Euros , which is divided into social shares with a nominal value of a Euro each. 14

55 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 FINANCIAL FIXED ASSETS (CONTINUATION) Energía Renovable Mestral, S.L. Energía Renovable Mestral, S.L. was set up in July 20, 2005 as a limited company with an indefinite length in time. The main asset of Energia Renovable Mestral, S.L. is a participation of 33,33% in the company Catalana d Energies Renovables, S.L. and of 20% in the company Empordavent, S.L. The current head office is in Avenida Marià Fortuny 83, Reus. Energía Renovable Mestral, S.L. share capital amounts to Euros, divided into social shares with a nominal value of 1 Euro each. Eólica del Pino, S.L. Eólica del Pino, S.L. was set up in October 28, 1999 as a limited company with an indefinite length in time. Its corporate purpose is the building and exploitation of installations aimed to produce electricity power in a special regime according to the Royal Decree 661/2007. The current head office is in Málaga, calle Arenal, 21. Eólica del Pino, S.L. share capital amounts to Euros ,07, which is divided into social shares with a nominal value of Euros 6, each. Fersa Energías Renovables, S.A. dominates Eólica del Pino, S.L. s Board of Directors, and consequently the investment in this company is considered as Participation in group companies, notwithstanding it disposes of the 40% of shares. Parque Eólico Hinojal, S.L. Parque Eólico Hinojal, S.L. was set up in November 13, 2001 as a limited company with an indefinite length in time. Its main activity consists in the working out and exploitation of the eolian parks. The current head office is in Calle Júcar, 3, Tarifa (Cádiz). Parque Eólico Hinojal, S.L. share capital amounts to Euros , which is divided in social shares with a nominal value of a Euro each. The company has started in 2006 the building of three eolian parks Hinojal I, Hinojal II and Zarzuela II in Tarifa (Cádiz) for a total power of 36 MW. At the closing date of this year 2007 these parks were starting their activities and started to run in January

56 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 FINANCIAL FIXED ASSETS (CONTINUATION) The shares of Parque Eólico Hinojal, S.L. are pledged in favour of the banks Caja General de Ahorros de Granada, Barclays Bank, S.A.E., Caixa d Estalvis de Catalunya, Caja de Ahorros del Mediterráneo, Caja de Ahorros Castilla-La Mancha, Natexis Bankes Populaires, Sucursal en España y Barclays P.L.C., as a guarantee of the liabilities assumed with these banks through loan agreement, which finances the investment. Additionally, there is a security in the loan contract about the whole rights and balances of the current bank accounts. Parque Eólico Altos del Voltoya, S.A. Parque Eólico Altos del Voltoya, S.A. was set up in December 21, 1998 as a public limited company with an indefinite length in time. Its main activity consists on the generation, transport and distribution of the eolian energy, as so the prospecting, promotion, building and exploitation of eolian parks and all their complementary buildings and installations. At present the Company carries out exploitation of the eolian parks Cruz de hierro, Ojos Albos, Ávila, Villacastín and Ampliación de Cruz de hierro, with an installed total power of 62,04 MW. Parque Eólico Altos del Voltoya, S.A. share capital amounts to Euros ,36, which is divided into ordinary share with a nominal value of Euros 6, each, pending to be reimbursed 17,51% (see Note 11). Shares are pledged in favour of Caja de Ahorros y Monte de Piedad de Madrid, Instituto de Crédito Oficial, Caja España de Inversiones, Caja de Ahorros y Monte de Piedad y Banco BPI, S.A., as a guarantee of the liabilities assumed by the company Parque Eólico Altos del Voltoya, S.A. opposite to these companies, through a loan contract. Furthermore, Parque Eólico Altos del Voltoya, S.A. owns 17% of the shares of the company Parque Eólico Monte de las Navas, S.L. which operates 3 eolian parks with a joint power of 48,84 MW in Ávila. Catalana d Energies Renovables, S.L. Catalana d Energies Renovables, S.L. was set up in May 4, 2000 as a public limited company with an indefinite length in time. The company has at its disposal the administrative authorizations to install the eolian parks Mudefer and Mudfer II for a total power of 57 MW in Caseres (Tarragona). The current head office is in Avenida Marià Fortuny, 83, Reus. Catalana d Energies Renovables, S.L. share capital amounts to Euros , which is divided into social shares with a nominal value of Euros 60 each. 16

57 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 - FINANCIAL FIXED ASSETS (CONTINUATION) Energía Renovable Mestral Eólica, S.L. Energía Renovable Mestral Eólica, S.L. was set up in May 24, 2006 as a limited company with an indefinite length in time. Its corporate aim consists in the promotion, direction, performance, carrying-out, management, rendering of technical services of projects and installations related to renewable energies eolian installations, photovoltaic installations of biomass, biogas and biofuel- and the environment. The current head office is in Avenida Marià Fortuny, 83, Reus. Energía Renovable Mestral Eólica, S.L. share capital amounts to Euros 5.000, which is divided into social shares with a nominal value of one Euro each. Aprofitament d Energies Renovables de la Terra Alta, S.A. Aprofitament d Energies Renovables de la Terra Alta, S.A. was set up as a public limited company in May 14, Its main activity consists in study, project and planning, building, starting, exploitation, managing, keeping and maintenance of a system of electric lines transportation and receiver substations in high voltage lines in Terra Alta district and its influence area, in Tarragona province. At the present the company has at its disposal administrative authorizations and has started evacuation infrastructures buildings of several eolian parks in Tarragona province. The current head office is in Travessera de Gracia, 56, mezzanine, Barcelona. Aprofitament d Energies Renovables de la Terra Alta, S.A. share capital amounts to Euros , divided into shares with a nominal value of 10 Euros each. Fercom Eólica, S.L. Fercom Eólica, S.L. was set up as a limited company in September 20, This company is holder of 100% of share of companies promoter of eolian parks La Tossa del Vent, S.L., Eolener, S.L., Orta Eólica, S.L. and Electravent, S.L. which are ending administrative procedures for a total of 105 MW eolian in Catalonia. Likewise it is ending the evacuation infrastructures procedure through Berta Energies Renovables, S.L. and Aprofitament d Energies Renovables de la Terra Alta, S.A., in which Fercom Eólica, S.L. participates jointly with other eolian promoters area. The current head office is in Travessera de Gracia, 30, Barcelona. Fercom Eólica, S.L. share capital amounts to Euros , divided in Euros shares with a nominal value of 1 Euros each. 17

58 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 - FINANCIAL FIXED ASSETS (CONTINUATION) La Tossa del Vent, S.L. La Tossa del Vent, S.L. was set up in March 23, 1995 as a limited company. This company is processing the authorizations and licensees of Parque Eólico Tossa del Vent of 10MW, located in Prat de Compte (Tarragona). The park has at its disposal the Administrative Authorization. The current head office is in C/ Travessera de Gracia, 30, Barcelona. Tossa del Vent, S.L. share capital amounts to Euros, which is divided into 500 social shares with a nominal value of Euros 50 each. Texte, S.L. Texte, S.L. was set up in July 14, 1982 as a public limited company but was converted into a limited company in June 26, This company is processing the authorizations and licensees of Parque Eólico Coll Ventós of 7,5 MW, located in Prat de Compte (Tarragona). The park has at its disposal the Administrative Authorization. The current head office is in C/ Travessera de Gracia, 30, Barcelona. Tossa del Vent, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of Euros 6 each. Eolener, S.L. Eolener, S.L. was set up in July 6, 1995 as a limited company. This company is processing the authorizations and licensees of Parque Eólico del Brois of 18,37 MW, located in Pinell de Brai (Tarragona). The current head office is in C/ Travessera de Gracia, 30, Barcelona. Eolener, S.L. share capital amounts to Euros, which is divided into 500 social shares with a nominal value of Euros 50 each. 18

59 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 - FINANCIAL FIXED ASSETS (CONTINUATION) Orta Eólica, S.L. Orta Eólica, S.L. was set up in December 17, 2002 as a limited company. This company is processing the authorizations and licensees of Parque Eólico els Pesells of 49,5 MW, located in Horta de Sant Joan (Tarragona). The park has Administrative Authorization. The current head office is in C/ Travessera de Gracia, 30, Barcelona. Orta Eólica, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of a Euro each. Electravent, S.L. Electravent, S.L. was set up in July 6, 1995 as a limited company. This company is processing the authorizations and licensees of Parque de Tramuntana of 21,25 MW, located in Portbou y Colera (Gerona). The park has at its disposal the Administrative Authorization and is finishing the evacuation infrastructure procedure. The current head office is in C/ Travessera de Gracia, 30, Barcelona. Electravent, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of a Euro each. Gestora Fotovoltaica de Castellón, S.L. Gestora Fotovoltaica de Castellón, S.L. was set up in May 4, 2006 as a limited company. This company is the holding of 11 companies which finished in 2007 their building works of other photovoltaic solar plants of 100 Kw each in Coves de Vinromá (Castellón), with a total power of 1,1 MW. Plants exploitation started in The shares of Gestora Fotovoltaica de Castellón, S.L. are pledged in favour of Banco de Sabadell, S.A. as guarantee of the liabilities assumed against this entity by the loan contract which finances the investment. Additionally, credit rights and balances of current accounts are guaranteed. The current head office is in Travessera de Gracia 66, in Barcelona. Gestora Fotovoltaica de Castellón, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. 19

60 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 - FINANCIAL FIXED ASSETS (CONTINUATION) The eleven companies of the administrative authorizations to run into exploitation of the respective photovoltaic solar plants are the following: Fotovoltaica Fer, S.L. Fotovoltaica Fer, S.L. was set up in April 4, 2005 as a limited company. The current head office is in Travessera de Gracia 66, Barcelona. Fotovoltaica Fer, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. Weinsberg Ecotec, S.L. Weinsberg Ecotec, S.L. was set up in April 4, 2005 as a limited company. The current head office is in Travessera de Gracia 66, Barcelona. Weinsberg Ecotec, S.L share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. Fotovoltaica Ecotec, S.L. Fotovoltaica Ecotec, S.L. was set up in April 4, 2005 as a limited company. The current head office is in Travessera de Gracia 66, Barcelona. Fotovoltaica Ecotec, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. Joso Fotovoltaica, S.L. Joso Fotovoltaica, S.L. was set up in April 4, 2005 as a limited company. The current head office is in Travessera de Gracia 66, Barcelona. Joso Fotovoltaica, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. 20

61 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 - FINANCIAL FIXED ASSETS (CONTINUATION) Fotovoltaica Padua, S.L. Fotovoltaica Padua, S.L. was set up in April 4, 2005 as a limited company. The current head office is in Travessera de Gracia 66, Barcelona. Fotovoltaica Padua, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. Fotovoltaica Vergos, S.L. Fotovoltaica Vergos, S.L. was set up in April 4, 2005 as a limited company. The current head office is in Travessera de Gracia 66, Barcelona. Fotovoltaica Vergos, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. Fotovoltaica La Mola, S.L. Fotovoltaica La Mola, S.L. was set up in April 4, 2005 as a limited company. The current head office is in Travessera de Gracia 66, Barcelona. Fotovoltaica La Mola, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. Inversiones Trautt, S.L. Inversiones Trautt, S.L. was set up in April 4, 2005 as a limited company. The current head office is in Travessera de Gracia 66, Barcelona. Inversiones Trautt, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. 21

62 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 - FINANCIAL FIXED ASSETS (CONTINUATION) Fotovoltaica de Castelló, S.L. Fotovoltaica de Castelló, S.L. was set up in April 4, 2005 as a limited company. The current head office is in Travessera de Gracia 66, Barcelona. Fotovoltaica de Castelló, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. Fotovoltaica de les Coves, S.L. Fotovoltaica de les Coves, S.L. was set up in April 4, 2005 as a limited company. The current head office is in Travessera de Gracia 66, Barcelona. Fotovoltaica de les Coves, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. Inversiones Vinromá, S.L. Inversiones Vinromá, S.L. was set up in April 4, 2005 as a limited company. The current head office is in Travessera de Gracia 66, Barcelona. Inversiones Vinromá, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. Energía Cijara, S.L. Energía Cijara, S.L. was set up in February 6, 2006 as a limited company with indefinite duration. Its activity aim consists in running, selling and maintenance by its own initiative or by request of third parties, of renewable energies production s installations. The current head office is in Rambla Catalunya 54, Barcelona. Energía Cijara, S.L. share capital amounts to Euros, which is divided into social shares with a nominal value of one Euro each. 22

63 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 - FINANCIAL FIXED ASSETS (CONTINUATION) Eólica Cijara, S.L. Eólica Cijara, S.L., was set up as a limited company with indefinite duration in November 27, Its activity aim is creation, building, development, commercialization, running and maintenance of eolian parks. The Company is managing the authorization of an eolian park of 50 MW in Badajoz province. The current head office is in Badajoz, Bartolomé J. Gallardo 1. Eólica Cijara, S.L. share capital amounts to Euros, divided into social shares with a nominal value of 1 Euro each. Enrilews, S.A. Enrilews, S.A. was set up as a public limited company in August 22, Its main activity consists in production, transmission and distribution of electric power. The current head office is in Calle Cincuenta, Edificio 2000, 5 th floor, Panama. The Company has been provided by National Authority of Public Services of Republic of Panama with temporary permissions for installing, working and exploiting of two eolian parks called Parque Eólico Mendoza and Parque Eólico Toabré of 250 MW power and 150 MW power respectively. Enrilews, S.A. share capital amounts to USD, divided into 50 shares with a nominal value of 100 USD each. Eolica Postolin Sp, z.o.o. Eolica Postolin Sp, z.o.o. was set up as a company in August 24, Its main activity consists in production, transmission and distribution of electric power as well as research and development tasks. This company is promoting a project of eolian energy of 40 MW, located in Postolin (Poland). The current head office is in Bydgoszcz, Poland. Eolica Postolin Sp, z.o.o. share capital amounts to Polish Zlotys, divided into 31 shares of Polish Zlotys with nominal value each. 23

64 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 - FINANCIAL FIXED ASSETS (CONTINUATION) Est Wind Power Oü Est Wind Power Oü was set up as company in March 19, Its main activity consists in promoting, building, exploiting and maintaining of eolian parks. This company is promoting a project of eolian power of 75 MW, located in Päite Vaivina (Estonia) The current head office is in Hiiu-Maleva 13-3, Tallinn 11619, Republic of Estonia. Est Wind Power Oü share capital amounts to Estonian Crowns, divided into shares of 100 Estonian Crown with nominal value each. Siljan Port, S.L. Siljan Port, S.L. was set up as a limited company with indefinite duration in April 19, Its main activity consists in promoting and running eolian parks in Shandong province in Popular Republic of China for a total power of MW in a period of 10 years, with a first park of 48 MW which has corresponding authorizations and permissions. The current head office is in Rambla Catalunya 54, 3 rd, Barcelona. Siljan Port, S.L. share capital amounts to euros, divided into social shares of one Euro each. Fergest Biomasa S.L. Fergest Biomasa S.L. was set up as a limited company with indefinite duration in April 11, Its main activity consists in development, promotion, financing, carrying out and exploitation of power production projects through biomass. The current head office is in Calle Travessera de Gracia 30, Barcelona. Fergest Biomasa S.L. share capital amounts to Euros, divided into social shares with nominal value of 1 Euro each. 24

65 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 6 - FINANCIAL FIXED ASSETS (CONTINUATION) Fomento de Inversiones y Capital, S.L. Fomento de Inversiones y Capital, S.L. was set up as a limited company in December 5, Its main activity consists in advice rendering of services, consulting, management and administration of companies which develop industrial or commercial activities. The current head office is in Travessera de Gracia, 30 Barcelona. Fomento de Inversiones y Capital, S.L. share capital amounts to Euros, divided into social shares with nominal value of 60 Euros each. This Company is property of Fersa Group because of a connection of horizontal ownership according to which is established in SIC 12. Additions of participations in the Group companies, multigroup and associated companies carried out in 2007 The main additions in Group participations, multigroup and associated companies during the year 2007 have been as follows: Enrilews, S.A. Eolica Postolin Sp, z.o.o. Est Wind Power Oü Siljan Port, SL Fergest Biomasa, S.L. Energías de Cijara, S.L. Eólica de Cijara, S.L. 25

66 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 7 TERMPORARY FINANCIAL INVESTMENTS The breakdown and movement of the accounts of this caption during 2007 corresponds to the following: Opening Closing Kind of financial investments balance Additions Decreases Reclassifications balance Credits with the group companies, and associated companies , ,41 ( ,48) ( ,36) ,37 Investment Funds ,06 - ( ,06) - - Short term investments , ,71 ( ,88) ,83 Dividends pending to collect , ,00 ( ,00) , , ,12 ( ,42) ( ,36) ,20 In the account Short term investments are registered two main equity securities with a due date in the first trimester of 2008 with an annual interest rate of 4,9 % and the accrued interests and pending to be charged. In the account Credits with the group and associated companies it is registered the main credit granted by the Company to the Group companies and Intercompany and accrued interests and pending to be charged (see Note 13). NOTE 8 - SHORT TERM NOMINAL SHARES The breakdown of the caption Short term nominal shares during the year 2007 has been as follows: Opening Closing balance Additions Provision balance Nominal shares , ,00 Less: Provision for nominal shares - - ( ,50) ( ,50) ,00 ( ,50) ,50 In favour of the authorization received by General Meeting of Shareholders in May 2, 2007 and in order to facilitate exchange rate s liquidity, the Company has at its disposal as of December 31, own shares for an amount of Euros for average price of 4,995 Euros each share. 26

67 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 8 - SHORT TERM OWN SHARES (CONTINUATION) As of December 31, 2007 given that shares bookvalue was below the acquisition cost, it has been booked a provision against reserves for an amount of ,50 Euros (See Note 9). NOTE 9 SHAREHOLDERS EQUITY The breakdown of the shareholders equity during the year 2007 has been as follows: Opening balance Distribution of the result 2006 Nominal Shares Capital increase Acquisition Provision Result year Closing balance Capital , , ,00 Issuing premium , ,00 ( ,13) ,64 Legal reserve , , ,53 Voluntary reserve - 9,87 - ( 9,87) Reserve for own shares (See Note 8) ,00 ( ,50) ,50 Results ,96 ( ,96) , ,60 Dividends , Shareholders equity , ,00 - ( ,50) , ,27 Capital Company s capital as of December 31, 2007 is made up of shares, with a nominal value of one Euro each, entirely subscribed and fully paid out. All shares have the same politic and economic rights. The Extraordinary General Meeting of the Company in May 2, 2007 agreed to a capital increase of Euros, by means of issuing of ordinary shares with nominal value of one Euro each, with issuing premium of 3 Euros for each share. In July 2007 the mentioned capital increase has been booked, after its entry to Spanish Securities and Exchange Commission, make public and inscription in Mercantile Register. 27

68 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 9 SHAREHOLDERS EQUITY (CONTINUATION) The breakdown of the Company Shareholders which hold shares higher than 10% as of December 31, 2007 is as follows: Shareholders Nominal value % Seguros Catalana Occidente, S.A. de Seguros y Reaseguros ,53% Caja de Ahorros y Monte Piedad de las Baleares ,00% Other shareholders ,47% ,00% Issuing Premium The issuing premium is of free disposition. This account could only be affected as result of agreements reached on the General Meeting of Shareholders. Legal reserve The companies that have obtained profit will be obliged to apply 10% of the profit in order to constitute a reserve fund which reaches at least 20% of the capital. The mentioned reserve will be aimed to the compensation of losses in case there are no other available reserves enough for this purpose, while do not exceed the indicated restriction. Nevertheless, it will be aimed to increase the capital in the part which exceeds 10% of the already increased capital. Reserve for nominal shares The section 79 of Limited Company s Law establishes that when a company acquires nominal shares will endow an unavailable reserve equivalent to the amount of mentioned own shares. This reserve will have to be kept when the shares are not transferred or depreciated, and for the same amount to accounting net equity of the same. 28

69 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 10 LONG-TERM CREDITORS The breakdown of this caption is as follows: Other long-term debts ,82 Received long-term deposits , ,91 ========== The balance of account Other long-term debts corresponds to the long-term debt held with the minority shareholders of Eólica del Pino, S.L. and Eólica El Pedregoso, S.L by acquiring these companies shares. NOTE 11 SHORT-TERM CREDITORS The breakdown of accounts of this caption is as follows: Debts from purchases and services rendering ,65 Other no-commercial debts ,50 Public Administration (Note 12) 1.914, ,20 ======== The balance of account Other no-commercial debts corresponds to the outstanding amount to be paid on the shares of the company Parque Eólico Altos de Voltoya, S.A., whose due date to be fully paid up is in June, NOTE 12 PUBLIC ADMINISTRATIONS AND TAX MATTERS The breakdown of this caption has been as follows: ASSETS LIABILITIES Public Administration creditor by Income Tax/ Capital Tax ,05 Public Administration debtor by VAT ,18 - Public Administration debtor by Corporate Income Tax ,60 - Public Administration debtor by Corporate Income Tax , , ,05 According to the current legislation, tax liquidations could not be considered definitive until they have not been reviewed by the tax administrations or until a four years prescription period has been completed. 29

70 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 12 PUBLIC ADMINISTRATIONS AND TAX MATTERS (CONTINUATION) The Company has pending to be reviewed all taxes that are enforceable for the last four years. In the Company Direction s opinion, there are not contingencies which can arise from the review of the tax periods open for inspection. The conciliation between the accounting result and the tax basis of the corporation tax is as follows: Increases Decreases Total Accountancy result for the year ,73 Permanent differences Temporary differences , ,00 - Tax basis (tax result) ,73 Corporation tax before deductions: 25% (the first Euros ,41) 30% , , ,40 Deductions: Double taxation Reinvestment ( ,93) ( ,34) Net tax payable: ,13 Withholding and payment on account of the year ( ,85) Corporation Tax to return ,72 ========= The Company had recourse to the special tax system as a small company. The tax applied to the tax basis until 120 thousand Euros is of 25 %. 30

71 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 13 THE GROUP COMPANIES AND ASSOCIATED COMPANIES The breakdown of debtors and creditors balances granted to the group companies and associated companies, which are in force as of December , is as follows: Company Debtors Granted credits Short-term Long-term Short-term Eólica del Pino, S.L , ,65 Eólica el Pedregoso, S.L , , ,04 Parque Eólico Hinojal, S.L , , ,14 Empordavent, S.L , ,00 - Invetem Mediterranea, S.L , Energía Renovable Mestral, S.L ,75 - Enrilews, S.A , ,66 Parque Eólico Altos del Voltoya, S.A ,54 - FercomEólica, S.L , , ,88 Energía Renovable Mestral Eólica, S.L ,66 - Catalana d Energies Renovables, S.L , ,00 Eólica Cijara, S.L , , , ,37 ========= ========== ========== NOTE 14 GUARANTEES WITH THIRD PARTIES Guarantees with third parties The company Parque Eólico Hinojal, S.L. has submitted together with other promoters of the region, a guarantee for an amount of Euros ,31 that has been lent by Banco de Finanzas e Inversiones, S.A. before the City Hall of Tarifa as reparation guarantee of the access road to the parks by possible damages caused during the building and guaranteed by Company. Eolener, S.L. and Orta Eólica, S.L. have presented guarantees to arrange authorizations to set eolian parks for an amount of Euros ,75 and ,42, respectively, guaranteed by Fersa Energías, S.A. in its participation (70%). Likewise, Fersa Energías Renovables, S.A. has presented guarantee to Eólica Cijara, S.L. for the same reason for total amount of Euros. 31

72 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 14 GUARANTEES WITH THIRD PARTIES (CONTINUATION) The Company has at its disposal as of December 31, 2007 a time deposit of 25 million Euros, with due date March, , included in the account Short-term portfolio in the caption Temporary Financial Investment which is pledged as guarantee of two guarantees received by Deutsche Bank for a total amount of thousand Euros. These guarantees have been given in order to cover the financing of specific eolian parks in India, which the Company acquires in NOTE 15 - OTHER INFORMATION Remunerations of the Board of Directors The Board of Directors has not been provided with any kind of remuneration during the year Neither loans, advances, liabilities have been contracted on pensions and life insurances nor guarantees have been lent by any other old or current member of the Board of Directors. Information required by article 127 of the Corporation Law. 32

73 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 15 - OTHER INFORMATION (CONTINUATION) As of December 31, 2007, the participations, positions and/or the functions of the FERSA ENERGÍAS RENOVABLES, S.A.'s Directors in companies with the same, analogous or complementary kind of activity as the one of the company (see Note 1), are the following ones : Member of the Board of Directors Shareholding % participation Position José Mª Roger Ezpeleta Real Wind, S.L. 50% President José Mª Roger Ezpeleta Real Wind Isaba, S.L. On behalf of Real Wind, 100% President José Mª Roger Ezpeleta Eólica el Pedregoso, S.L. On behalf of FERSA, 80% President José Mª Roger Ezpeleta Eólica del Pino, S.L. On behalf of FERSA, 40% President José Mª Roger Ezpeleta Parque Eólico Hinojal, S.L. On behalf of FERSA, 45% Deputy president José Mª Roger Ezpeleta Aprofitament d energies renovables de la Terra Alta, S.L. On behalf of FERCOM EÓLICA, 11,69% Adviser José Mª Roger Ezpeleta Berta Energies Renovables, S.L. On behalf of FERCOM EÓLICA, President 33,33% José Mª Roger Ezpeleta Fercom Eólica, S.L. On behalf of FERSA, 70% President José Mª Roger Ezpeleta La Tossa del Vent, S.L. As a representative of FERCOM President EOLICA, 100% José Mª Roger Ezpeleta Texte, S.L. As a representative of FERCOM President EOLICA, 100% José Mª Roger Ezpeleta Orta Eólica, S.L. As a representative of FERCOM President EOLICA, 100% José Mª Roger Ezpeleta Eoloner, S.L. As a representative of FERCOM President EOLICA, 100% José Mª Roger Ezpeleta Electravent, S.L As a representative of FERCOM President EOLICA, 100% José Mª Roger Ezpeleta Gestora Fotovoltaica de Castellón, S.L. On behalf of FERSA, 76% Joint Administrator José Mª Roger Ezpeleta Fotovoltaica Fer, S.L. As a representative of Gestora Fotovoltaica de Castellón, S.L., 100% Joint Administrator José Mª Roger Ezpeleta Weinsberg Ecotec, S.L. As a representative of Gestora Fotovoltaica de Castellón, S.L., 100% Joint Administrator José Mª Roger Ezpeleta Fotovoltaica Ecotec, S.L. As a representative of Gestora Fotovoltaica de Castellón, S.L., 100% Joint Administrador 33

74 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 15 - OTHER INFORMATION (CONTINUATION) Member of the Board of Directors Shareholding % participation Position José Mª Roger Ezpeleta Joso Fotovoltaica, S.L. As a representative of Gestora Fotovoltaica de Castellón, S.L., 100% Joint Administrator José Mª Roger Ezpeleta Fotovoltaica Padua, S.L. As a representative of Gestora Fotovoltaica de Castellón, S.L., 100% José Mª Roger Ezpeleta Fotovoltaica Vergos, S.L. As a representative of Gestora Fotovoltaica de Castellón, S.L., 100% Joint Administrator Joint Administrator José Mª Roger Ezpeleta Fotovoltaica La Mola, S.L. As a representative of Gestora Fotovoltaica de Castellón, S.L., 100% Joint Administrator José Mª Roger Ezpeleta Inversions Trautt, S.L. As a representative of Gestora Fotovoltaica de Castellón, S.L., 100% Joint Administrator José Mª Roger Ezpeleta Fotovoltaica de Castelló, S.L. As a representative of Gestora Fotovoltaica de Castellón, S.L., 100% Joint Administrator José Mª Roger Ezpeleta Fotovoltaica de les Coves, S.L. As a representative of Gestora Fotovoltaica de Castellón, S.L., 100% Joint Administrator José Mª Roger Ezpeleta Inversions Vinroma, S.L. As a representative of Gestora Fotovoltaica de Castellón, S.L., 100% Joint Administrator José Mª Roger Ezpeleta Enrilews, S.A. On behalf of FERSA 92% Deputy President José Mª Roger Ezpeleta Fergest Biomasa, S.L. On behalf of FERSA 50% President José Mª Roger Ezpeleta Silban Port, S.L. On behalf of FERSA 80% President José Mª Roger Ezpeleta OÜ Est Wind Power On behalf of FERSA 75% Adviser ENERGIA INTELIGENTE ENERGENA, S.L. ENERGIA INTELIGENTE ENERGENA, S.L. ENERGIA INTELIGENTE ENERGENA, S.L. ENERGIA INTELIGENTE ENERGENA, S.L. GRUPO EMPRESARIAL ENHOL Energía Termosolar ENERTOL, S.L. 50% Innovación Verde INVER, S.L.U 100% Eólica Navarra, S.L.U. 100% Enhol Bulgaria, E.O.O.D. 100% Energía Inteligente Energena, S.L.U. 100% 34

75 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 15 - OTHER INFORMATION (CONTINUATION) Member of the Board of Directors GRUPO EMPRESARIAL ENHOL, S.L GRUPO EMPRESARIAL ENHOL, S.L Shareholding % participation Position Sanjol Inversiones, S.L. 50% Eólica Cabanillas, S.L. 50% GRUPO EMPRESARIAL ENHOL, S.L Eólica Montes de Cierzo, S.L. 50% GRUPO EMPRESARIAL ENHOL, S.L Eólica Caparroso, S.L. 50% GRUPO EMPRESARIAL ENHOL, S.L Eólica La Bandera, S.L. 50% Central Eléctrica Solar Altiplano XXI, S.L. Central Eléctrica Solar Altiplano XXII, S.L. Central Eléctrica Solar Altiplano XXIII, S.L. Central Eléctrica Solar Altiplano XXIV, S.L. Central Eléctrica Solar Altiplano XXV, S.L. Central Eléctrica Solar Altiplano XXVI, S.L. Central Eléctrica Solar Altiplano XXVII, S.L. Central Eléctrica Solar Altiplano XXVIII, S.L. 35

76 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 15 - OTHER INFORMATION (CONTINUATION) Member of the Board of Directors Shareholding % participation Position Central Eléctrica Solar Altiplano XXIX, S.L. Central Eléctrica Solar Altiplano XXX, S.L. Central Eléctrica Solar Altiplano XXXI, S.L. Central Eléctrica Solar Altiplano XXXII, S.L. Central Eléctrica Solar Altiplano XXXIII, S.L. Central Eléctrica Solar Altiplano XXXIV, S.L. Central Eléctrica Solar Altiplano XXXV, S.L. Central Eléctrica Solar Altiplano XXXVI, S.L. Central Eléctrica Solar Altiplano XXXVII, S.L. Central Eléctrica Solar Altiplano XXXVIII, S.L. Central Eléctrica Solar Altiplano XXXIX, S.L. Central Eléctrica Solar Geoibérica I, S.L. Central Eléctrica Solar Geoibérica II, S.L. 36

77 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 15 - OTHER INFORMATION (CONTINUATION) Member of the Board of Directors Shareholding % participation Position Central Eléctrica Solar Geoibérica III, S.L. Central Eléctrica Solar Geoibérica IV, S.L. Central Eléctrica Solar Geoibérica V, S.L. Central Eléctrica Solar Geoibérica VI, S.L. Central Eléctrica Solar Geoibérica VII, S.L. Central Eléctrica Solar Geoibérica VIII, S.L. Central Eléctrica Solar Geoibérica IX, S.L. Central Eléctrica Solar Geoibérica X, S.L. Central Eléctrica Solar Geoibérica XI, S.L. Central Eléctrica Solar Geoibérica XII, S.L. Central Eléctrica Solar Geoibérica XIII, S.L. Central Eléctrica Solar Geoibérica XIV, S.L. Central Eléctrica Solar Geoibérica XV, S.L. 37

78 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 15 - OTHER INFORMATION (CONTINUATION) Member of the Board of Directors Shareholding % participation Position Central Eléctrica Solar Geoibérica XVI, S.L. Central Eléctrica Solar Geoibérica XVII, S.L. Central Eléctrica Solar Geoibérica XVIII, S.L. Central Eléctrica Solar Geoibérica XIX, S.L. Central Eléctrica Solar Geoibérica XX, S.L. Central Eléctrica Solar Geoibérica XXI, S.L. Central Eléctrica Solar Geoibérica XXII, S.L. Central Eléctrica Solar Geoibérica XXIII, S.L. Central Eléctrica Solar Ibersol I, S.L. Central Eléctrica Solar Ibersol II, S.L. Central Eléctrica Solar Ibersol III, S.L. Central Eléctrica Solar Ibersol IV, S.L. Central Eléctrica Solar Ibersol V, S.L. 38

79 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 15 - OTHER INFORMATION (CONTINUATION) Member of the Board of Directors Shareholding % participation Position GRANADA, S.A. Central Eléctrica Solar Ibersol VI, S.L. GRANADA, S.A. Central Eléctrica Solar Ibersol VII, S.L. GRANADA, S.A. Central Eléctrica Solar Ibersol VIII, S.L. GRANADA, S.A. Central Eléctrica Solar Ibersol IX, S.L. GRANADA, S.A. Central Eléctrica Solar Ibersol X, S.L. GRANADA, S.A. Central Eléctrica Solar Ibersol XI, S.L. GRANADA, S.A. Central Eléctrica Solar Ibersol XII, S.L. GRANADA, S.A. Central Eléctrica Solar Ibersol XIII, S.L. GRANADA, S.A. Central Eléctrica Solar Ibersol XIV, S.L. GRANADA, S.A. Central Eléctrica Solar Ibersol XV, S.L. GRANADA, S.A. Central Eléctrica Solar Ibersol XVI, S.L. GRANADA, S.A. Central Eléctrica Solar Ibersol XVII, S.L. GRANADA, S.A. Central Eléctrica Solar Ibersol XVIII, S.L. 39

80 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 15 - OTHER INFORMATION (CONTINUATION) Member of the Board of Directors Shareholding % participation Position Central Eléctrica Solar Ibersol XIX, S.L. Central Eléctrica Solar Ibersol XX, S.L. Central Eléctrica Solar Ibersol XXI, S.L. Central Eléctrica Solar Ibersol XXII, S.L. Central Eléctrica Solar Ibersol XXIII, S.L. Central Eléctrica Solar Ibersol XXIV, S.L. Central Eléctrica Solar Ibersol XXV, S.L. Central Eléctrica Solar Ibersol XXVI, S.L. Central Eléctrica Solar Ibersol XXVII, S.L. Central Eléctrica Solar Ibersol XXVIII, S.L. Central Eléctrica Solar Ibersol XXIX, S.L. Central Eléctrica Solar Ibersol XXX, S.L. Central Eléctrica Solar Ibersol XXXI, S.L. 40

81 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 15 - OTHER INFORMATION (CONTINUATION) Member of the Board of Directors Shareholding % participation Position Central Eléctrica Solar Ibersol XXXII, S.L. Central Eléctrica Solar Ibersol XXXIII, S.L. Central Eléctrica Solar Ibersol XXXIV, S.L. Central Eléctrica Solar Ibersol XXXV, S.L. Central Eléctrica Solar Ibersol XXXVI, S.L. Central Eléctrica Solar Ibersol XXXVII, S.L. Central Eléctrica Solar Ibersol XXXVIII, S.L. Energía Oriental, S.L. 35% Energías Renovables del Guadiana Menor, S.L. 50% Eólica del Zenete, S.L. 42,99% Parque Eólico Hinojal, S.L. 55% Prader Energías Renovables, S.L. 20% Silicio Energía, S.A. 5% 41

82 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 15 - OTHER INFORMATION (CONTINUATION) Member of the Board of Directors Shareholding % participation Position Sinergia Andaluza, S.L. 20% Solnaya Alfa, S.L. Distribuidora Eléctrica Bermejales, S.A. 20% Hidroeléctrica Cuerva, S.A. 20% Hidroeléctrica San Buenaventura, S.L. 20% Montajes Eléctricos Cuerva, S.A. 20% COMSA MEDIO AMBIENTE, S.L. Parque Solar de Ecija, S.L. 100% Sole Administrator COMSA MEDIO AMBIENTE, S.L. Eólica las lanchas, S.L. 100% Sole Administrator COMSA MEDIO AMBIENTE, S.L Eólica El Hornico, S.L. 100% Sole Administrator COMSA MEDIO AMBIENTE, S.L Eólica La Carrasca, S.L. 100% Sole Administrator COMSA MEDIO AMBIENTE, S.L Eólica Sierra Gadea 100% Sole Administrator COMSA MEDIO AMBIENTE, S.L TFM Energia Solar Fotovoltaica, S.A. 75% Adviser COMSA MEDIO AMBIENTE, S.L Generación Energía Sostenible, S.L. 100% Sole Administrator 42

83 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 15 - OTHER INFORMATION (CONTINUATION) Member of the Board of Directors Shareholding % participation Position COMSA MEDIO AMBIENTE, S.L Comsa Energías Renovables, S.L. 100% Sole Administrator COMSA MEDIO AMBIENTE, S.L Comsa Inversiones Solares, S.L. 100% Sole Administrator COMSA MEDIO AMBIENTE, S.L Maials Solar, S.L. 100% Sole Administrator COMSA MEDIO AMBIENTE, S.L Villoldo Solar, S.L. 100% Sole Administrator COMSA MEDIO AMBIENTE, S.L Parque Solar Viso del Marques, S.L. 100% Sole Administrator Remuneration of the auditors Fees received by audit services during the year 2007 by Moore Stephens & Santacana, Auditores y Consultores, S.A. refer exclusively to the audit engagement and amounts to 91 thousand Euros. These fees correspond to the company and other subsidiaries. NOTE 16 POST BALANCE SHEETS EVENTS Capital Increase In February 20, 2008 Fersa Energías Renovables, S.A. s Extraordinary General Meeting has agreed to an operation through which different business groups have brought to Company several companies with running eolian parks and in different processing stages. As consideration, the Company has made a capital increase with no-money contributions. This action has included Spanish parks as well as foreign ones, specifically in India, France and Poland. This no-money capital increase has been made through issuing of new shares, with issuing rate of 4, Euros for share, with a par value of 1 Euro each and a prime of 3, for each share, which have been adjudged in proportion to no moneycontributions which have been made by new shareholders. Operations which cause this increase are the following: 43

84 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 16 POST BALANCE SHEETS EVENTS (CONTINUATION) ENHOL GROUP (Eólica de Navarra) new strategic partner and BANC DE SABADELL have brought companies with different eolian projects, on working, production or promotion, which represent a total of 314 MW and 73,2 MW respectively. They have been acquired shares in companies already owned which has meant, in all almost cases, obtaining entitlement of 100% of these subsidiaries. These new operations, have represented 81, 7 MW additional for the Group. Corporación Caja de Granada S.A. and Inversiones Programada S.A., S.C.R. have made a contribution of eolian projects and share which mean 93,8 MW additional for the Group. Fomento de Inversiones and Capital S.L. (FOINCA), company entrusted for management and administration of the Company, has managed to form all know-how and company s team, in such a way that the Company has managed to control 100% of its management. In short the no-money increase operation has meant the incorporation of 562,7 MW and entry of contribution for an amount of 274,8 million Euros. New shares acquisition and agreement made in 2008 In Februrary 18, 2008, Fersa Energías Renovables, S.A. has acquired 50% of Nextwind, S.r.L., Italian company whose main activity is eolian parks development. Nextwind, S.r.L. (company participated by Entropya S.r.L.) has at the present a portfolio of MW in different development stages, of which are in advanced stages of development and in initial stage. Once parks on development were on building stage, the Company has call option for acquiring up to 100% of MW. Disbursement to be made by Company for acquisition of 50% amounts approximately to Euros in next three years. Final price will depend on promotion parks result and production s conditions and financing of them. This action is linked to agreement made in May 2, 2007 for acquisition by the Company of 270 MW to Entropya S.r.L. In 2007 have been made payments on account previous to acquisition agreement for a total of 570 thousand Euros revealed in the account Other financial assets of caption Financial fixed and other no current assets. In February 16, 2008, Fersa Energías Renovables, S.A. came to an agreement, through Siljan Port, S.L., company shared by Fersa for 80%, of creating a Joint Venture with Chinese company Shandong Lubei Enterprise Group Company. This company which will be called Association of Shandong Lusa New energy Co. Ltd will be shared for 60% by Siljan Port, S.L. and for 40% by Shandong Lubei Enterprise Group Company. This Joint Venture relies on projects for eolian parks development in Shandong district (China) up to MW, with a fist project already authorized of 48 MW. The Company will made contributions to Joint Venture as projects will develop into the way corresponding to its participation. 44

85 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 16 POST BALANCE SHEETS EVENTS (CONTINUATION) In February 11, 2008, the Company has come to a cooperation agreement with GREEN ALLIANCE SGECR, S.A. for development of eolian parks in Spain. Likewise it has come to agreement for development of eolian parks in Russia with local promoters. Own shares selling During February 2008 the Company has sold for a total of Euros, with average price of 5,714 Euros for share, own shares which were at its disposal as of December 31, 2007 and which were acquired for a total of euros, with average price of 4,995 Euros for share. Given that sale value has been superior to shares book value, the Company will proceed to revert provision against reserves registered as of December 31, 2007 for a total amount of ,5 Euros (see Note 8). NOTA 17 FINANCING TABLES CORRESPONDING TO THE FINANCIAL STATEMENTS AS OF DECEMBER 31 Changes in the working capital Increases Decreases Increases Decreases Debtors Temporary financial investments Short-term own shares Treasury End-of-period adjustments Commercial creditors Other non-commercial debts , , , , , , , , , , , , ,78 - TOTAL , , , ,09 CHANGES IN THE CAPITAL ACCOUNT ,07 =========== - ========= - ========= ,61 ========== 45

86 FERSA ENERGÍAS RENOVABLES, S.A. Notes to Financial Statements December 31, 2007 NOTE 17- FINANCING TABLES CORRESPONDING TO THE FINANCIAL STATEMENTS AS OF DECEMBER 31 (CONTINUATION) APPLICATIONS ORÍGENES Additions to setting up costs ,42 - Loss and profit results , ,96 Increase to financial investments , ,28 Entries which modify the results and do not mean Increase of expenses to be distributed in several years - - funds movements: Dividends , ,00 Provision participations of the group companies , ,41 Net decrease of long-term creditors , ,00 Depreciation of setting-up costs , ,67 Own shares provision ,50 - OPERATION RESOURCES , ,04 Capital increase ,00 - Issuing premium of shares ,00 - Rundown of financial investements , ,63 Decrease of expenses to be distributed in several years 904, , , ,63 TOTAL APPLICATIONS , ,28 TOTAL RESOURCES , ,67 EXCESS OF RESOURCES OVER EXCESS OF APPLICATIONS APPLICATIONS ,07 - OVER RESOURCES ,61 TOTAL , ,28 TOTAL , ,28 46

87 FERSA ENERGÍAS RENOVABLES, S.A. MANAGEMENT REPORT DECEMBER 31, MEANINGFUL EVENTS The year ended as of December 31, 2007 has supposed a very relevant milestone in Fersa Energías Renovables s history in which stand out 2 very important events: - In the first place, Fersa managed a capital increase of 151 million Euros, through which has multiplied for 4 its own resources, and locates itself in an excellent financial position to face company s development. The increase has been successful and has been fully subscribed and paid out in its preferential section. - In the second place it has to be underlined the admission to negotiation of Fersa s shares in Madrid Stock Exchange and, subsequently, in Continuous Market (Spanish Stock Exchange Interconnection-SIBE). This has meant Company stock exchange come to age, which started its going in stock exchange rings in the Second Market of Barcelona Stock Exchange in RUNNING PLANTS In the second semester of the year the company Parque Eólico Hinojal, S.L., shared by Fersa in 45% has finished building of 3 eolian parks in Tarifa (Cádiz), with a joint power of 36 MW. Parks have a total of 19 wind turbines Vesta V.90 of 1,8 MW and 2,0 MW of nominal power. This building has meant an investment of 45 million Euros and has been financed by Project finance with Barclays and Caja Granada leaderships. The companies Eólica El Pedregoso, S.L. shared by Fersa with 80%, and Eólica del Pino, S.L., shared with a 40% have ended in 2007 the first completed production year after having started their activity in October The parks Pedregoso A and Pedregoso B belonging to Eólica El Pedregoso, have registered a production of 50 Gwh, while production accumulated by Pedregoso D has amounted to 27,7 Gwh. Production in both companies located itself at the beginning of the year below the foreseen, caused by time dilation of wind turbines starting-up. Notwithstanding, this deviation in production has been diminishing during the year at the same time as wind turbines have been adjusting their production level. The turnover has reached 4,2 million Euros in Eólica El Pedregoso, S.L. and 2,3 million Euros in Eólica del Pino S.L., having been all the production generated during 2007 sold at market rate. 47

88 Finally, Fersa has finished in 2007 building of 11 photovoltaic solar plants owned by Gestora Fotovoltaica de Castellón, S.L. in which Fersa participates with 76%. The company has 100% of 11 companies which will exploit so many solar photovoltaic plants of 100 KW of power each, adding a joint power of 1,1 MW. Plants are located in town council of Les Coves de Vinromá in Castellón province. The total investment amounts to more than 10 million Euros and has been financed with a Project Finance with Banc Sabadell. 3. STRATEGIC AGREEMENTS During the year 2007 Fersa has managed several strategic agreements by which different companies with assets in eolian field have agreed to bring to Fersa eolian parks in different development stages in exchange for subscribing an increase capital in Fersa. The different agreements are: 3.1 Grupo ENHOL Grupo ENHOL (Eólica de Navarra) ha agreed to bring assets for a total amount of 131 million Euros, with the following specification: - 3 eolian parks in Poland for a total of 122 MW, which will be started-up between 2009 and eolian parks in India for a total of 181 MW, 31 MW of them are already working and the remaining will be started-up between 2009 and eolian park in France of 12 MW on exploitation Caja Granada Corporación Caja Granada and linked companies have agreed to bring several companies for a total amount of 37 million Euros, with the following specification: - A share of 30,4 % in company Parque Eólico Hinojal, S.L. in which Fersa has already participated with 45% and which has 3 eolian parks on exploitation for a total power of 36 MW. - 5 eolian parks in Andalucía for a total of 170 MW, 83 MW of them attributable to Fersa and which will be starting-up between 2009 and

89 3.3 Grupo Banc Sabadell Sinia XXI, S.L., Totvent 2000, S.A. both companies controlled by Banco Sabadell and other minority stockholders have agreed to bring shares in projects on promotion in Spain, for a total amount of 33 million Euros, with the following breakdown: - 2 eolian parks in Catalonia for a total of 30 MW, which will be started-up between 2009 and eolian park in Murcia of 43 MW, which will be started-up in Minorities Roll Ups To these agreements have been added the ones managed with minority sharers in companies in which Fersa participates ( Roll Up ) according to the following breakdown: - Agreement with EMTE, S.A. and Vallser Energias Renovables, S.L.for acquisition of 57,7% of social capital of Catalana d Energies Renovables, S.L., a company which has 2 eolian parks on building in Tarragona with a total power of 57,6 MW. With this agreement Fersa will control 100% of the company. - Agreement with Comsa Medio Ambiente, S.L. for acquisition of 30% of Fercom Eólica, S.L., a company which has 100% of 5 eolian parks in Catalonia for a total of 105 MW in different development stages, some of them already on building. With this agreement Fersa will control 100% of the company. - Agreement with Calvent Calculos de Viento, S.L. and Vallser Energias Renovables, S.L. for acquisition of 19,2 % of social capital of Empordavent, S.L., a company which has 1 eoalian park on building in Lleida, with a power of 48MW. With this agreement Fersa will control 100% of the company. - Agreement with minority sharers integrated into Grupo Simón of Eólica Del Pino, S.L. for acquisition of 40% of social capital, which has an eolian park on working, Pedregoso D, with a total power of 14,85 MW. With this agreement Fersa will control 80% of the company. 3.5 Integration of Fersa s management structure Finally, Fersa has reached an agreement with Fomento de Inversiones y Capital, S.L. (Foinca) s partners, for acquisition of 100% of its shares. Foinca is the company responsible for administration and management of Fersa and is shared by management staff and some advisors of Fersa. With this acquisition Fersa internalizes fully all company s management structure, which until now was externalized. 49

90 This agreement will mean an important saving for Company s operating expenses and implies to eliminate all risks caused by total externalization of management s company. It implies a relevant change in organization structure which is indispensable to face with success the new growing stage. In all previous acquisition agreements it has been established that Fersa as consideration will make a capital increase and will deliver to contributors new Fersa s shares. These agreements have been made in Extraordinary General Meeting in February 20, 2008 in which it has been agreed to increase Fersa capital in 274,8 million Euros through issuing of new shares at issuing price of 4,261 Euros for share. The carrying out of previous agreements means for Fersa an important increase as well as in own resources and assets, and in MW portfolio which will increase from 663 MW to more than MW through this operation. 4.ACQUISITION At the same time the company has kept on increasing in acquisitions way, whose most relevant achievements have been: Acquisition of 92% of Enrilews, S.A., a company that is making promotion of 400 MW in eolian parks in Panama, in advanced negotiation stage. Acquisition of 100% of Eolica Postolin, Sp, z.o.o. by Grupo Enhol, a company located in Poland which carries out the promotion of eolian park of 40 MW, in advanced negotiation stage. Agreement for acquisition of 100% eolian parks on promotion in Italy to Entropya, S.r.l. with a total capacity of 270 MW. Acquisition of a participation of 75% of OÜ Est Wind Power, company that will start the building during the second semester of 2008 of an eolian park in Estonia with capacity of 75 MW. Acquisition of 50% of company Energia Montes de Cijara, S.L. It s activity consists in promoting renewable energies plants in Extremadura, and has projects with up to 77 MW to develop in photovoltaic power, biomass and eolian. 50

91 5. MAIN FIGURES Fersa has closed the year 2007 with an increasing in business figures for management services it renders to its share companies of 51% up to Euros. The starting running of Pedregoso s parks at the end of 2006, and Hinojal s parks in the fourth trimester of 2007, have been the main cause of this growing. The incomes for loans to shared company have increased until Euros with an increase of 23%. On the other hand dividends deriving from shared companies, have reached Euros, a rundown of 6%. On the other hand, increasing in treasury caused by capital increase of 151 million Euros carried out in June has caused a meaningful increase of financial incomes for treasury, until 2,9 million Euros. Consequently, total incomes have increased to 4,8 million Euros, which has meant an increase of 159% with regard to Running expenses less amortization have increased a 183%, until to Euros, caused mainly for increasing of management costs incurred after capital increase. This increasing has been compensated by increase of financial incomes for treasury, accumulating at the end of the period an ordinary benefit of Euros, with an increase of 67% with reference to Amortizations are in Euros, with an increase of 208%, corresponding mainly to amortization of expenses incurred in capital increase. On the other hand, provisions for depreciation of shared companies have increased until to Euros and retrieve an extraordinary endowment of Euros caused for covering fully the possible depreciation of share consequence of possible contingency caused by Minute of Tax Agency for Tax on Hydrocarbons to our shared company Invetem Mediterránea S.L. In this way it is eliminated from the audit report of 2007 an exception which was in reports corresponding to years 2005 and Result before tax and extraordinary has been increased a 67% until to Euros. Company tax has been of Euros, which implies a tax rate of 24,41%...In this way the net income of Fersa locates itself in Euros, a 29% over the ones registered in the previous year. Shares quotation at the closing of 2007 was 5,00 Euros for share. In order to define annual revaluation it has to be taken into account money capital s increase which was carried out in July for issuing price of 4 Euros for share; from quotation of subscription rights preferential of acquisition it is deduced an adjustment factor of 1,4366 which implies that annual revaluation of share in 2007 has been of 99,5%. 51

92 This increase in share quotation price was accompanied by liquidity increase, which culminates with Fersa shares admission to the First Stock Exchange Market of Barcelona and Madrid, and subsequently in the Continuous Market of Spanish Stock Exchange. As of December 31, 2007 the Company has at its disposal own shares in auto portfolio for an amount of Euros, which implies an average acquisition price of 4,995 Euros for share. 6.FORESEEABLE RISKS WHICH COULD AFFECT COMPANY S EVOLUTION They are considered as risks which could affect the economical-financial evolution of the Company, the ones produced by possible changes in electric field s regulation as well as the one incurred for climate conditions of the place in which the plants generating energy are located. Additionally have to be considered as other risks the following ones: a) Dependence of qualified suppliers of wind turbines. The worldwide market of wind turbines producers is reduced and this can limit the ability to choose suppliers. b) Possible technical failures for machines used for electricity production. Notwithstanding, in order to cover this risk the Company has guarantees offered by builders of plants generating power, as well as with Working and Maintenance Contracts which tend to minimize the impact in case of incidence. c) Dependence of permissions and authorizations for parks development until to start their buildings. 7.POST BALANCE SHEET EVENTS 2007 In January 31, 2008 Fersa concluded the purchase of 67,39% of shares of company Castellwind-03, S.L. This company is carrying out the promotion of 3 eolian parks for a total of 115 MW in municipal district of Tivissa (Tarragona). In February 20, 2008 Fersa made an Extraordinary General Meeting of Shareholders which agreed to a capital increase of the Company in new shares with nominal value of 1 Euro and an Issuing Price of 3, Euros for a total amount of 274,8 million Euros, with no money contributions and with total elimination of preferential subscription right. These new shares were issued in order to act as consideration in shares acquisition in companies which have international eolian parks projects in different development stages, as well as Foinca s acquisition. 52

93 This Meeting agreed three statutory modifications: a) The article 2, by which company s main activity was modified establishing that The Company s main activity is promotion of all kind of activities related to electric power production starting from renewable energies sources, for this reason it could constitute, acquire and detain shares, equities, participations and rights in Mercantile Companies which main activity is promotion, building and running of plants of electric power production starting from renewable energies sources. Acquisition, holding, administration, transfer of all kind of bonds, securities, financial assets, rights, rates or participations in individual or social companies, all by its own account, excluding intermediation and leaving safe legislation characteristic of Stock Market and of Corporate Investment. b) The article 17 by which is established that exercise of administrator charge will be adjusted to the following rules: a) Charge s duration will be of six years. b) Administrators whose charge finish could always be re-elected without limitation in possible number of re-elections. c) In order to be elected and keep the charge it is not required to flaunt shareholder position. They could not fill the charge of Administrator persons who are included in some of suppositions of incompatibility, prohibition or incapacity established by Laws, in measures and conditions set in them. c) The clause 17 bis, by which it is established that annual retribution of advisers, for their management as members of Company Board of Directors, is set in a share in clear profits, which could be received after having been covered reserves and dividend cares which Law determines and could not exceed, in any case and as a whole, of eight per cent of the same. Board of Directors will distribute among its members this share, in shape and quantity which consider proper to be agreed, being registered in the annual report this information in a legally established way. After meeting s agreement in terms established by Limited Company Law, advisers who unroll executive functions could participate additionally in incentive projects approved by company directors, who grant a consistent retribution in shares delivery, recognition of rights of option on them or retribution referred to shares value. Retribution foreseen in previous section, derived from belonging to Board of Directors, will be compatible with rest of professional or labour perceptions which correspond to Advisers for whatever other executive or advise functions, which, in their case, carry out for the company functions different from supervision and collegiate decision proper of their condition as Advisers, which will be submitted to legal system which could be applicable. 53

94 Finally, in the same Extraordinary Shareholders General Meeting was agreed the Board of Directors modification, which in March, was partially newly modified in order to remain with the following settlement: POSITION MEMBER President D. José Mª Roger Ezpeleta Deputy President GRUPO EMPRESARIAL ENHOL, S.L (represented by D. Luis Oliver Gómez) Member of the ENERGIA INTELIGENTE ENERGENA, S.L. UNIPERSONAL Board (represented by D. Vidal Amatriain Méndez) Member of the Board GRUPO CATALANA OCCIDENTE, S.A. (represented by D. Jorge Enrich Izard) Member of the Board MYTAROS B.V. (represented by D. Josep Vicens) Member of the BCN GODIA, S.L. (represented by D. Manuel Torreblanca Ramírez) Board Member of the LARFON, S.A.U (represented by D. Alfonso Líbano ) Board Member of the D. Esteban Sarroca Punsola (Independent) Board Member of the D. Ignacio Garcia-Nieto Portabella (Independent) Board Member of the D. Manuel Barangé Bofill (Independent) Board Member of the COMSA MEDIO AMBIENTE (represented by D. Javier Martí) Board Member of the Board GRANADA (represented by D. Jesús Quero Molina) In February 25, 2008 Fersa communicated a creation of a Joint Venture with Chinese company Shandong Lubei Enterprise Group Company for development of MW in renewable energies projects. Fersa will have a participation of 60% and 40% will be hold by local Chinese partner. The Joint Venture has a project of 48 MW and has all permissions and authorizations to start building. Likewise, in the same date, Fersa communicated acquisition s agreement of 50% of Nextwind, S.r.L., an Italian company which only main object is eolian parks development. Nextwind S.r.L. has a portfolio of MW in different development stages. Nextwind, S.r.L. is a company participated by Entropya, S.r.L. with whom Fersa made an agreement in 2007 in order to acquire 270 MW in eolian parks in Italy once developed. 54

95 8.CAPITAL STRUCTURE. MEANINGFUL PARTICIPATIONS. Fersa s social capital as of December 31, 2007 was made up of shares, all of the same kind. Shareholders with significant ownership in Fersa s capital, directly or indirectly owned, of whom Fersa has acknowledgment, according with information kept in official registers of Spanish Securities and Exchange Commission as of December 31, 2007 are as follows: Direct owner of shares SEGUROS CATALANA OCCIDENTE-S.A. SEG.R CAJA DE AHORROS Y MONTE DE PIEDAD DE BALEARES Shares number % Participation FERSA , ,00 9.AGREEMENTS BETWEEN COMPANY AND ITS ADMINISTRATION AND MANAGEMENT POSITIONS At closing date of 2007 Fersa had signed since January 29, 2004 a contract with company Foinca which contemplates rendering to Fersa of the total practice of company s management, among others advice, management and intermediation services. Foinca is participated by Real Wind ISABA, S.L.(company participated chiefly by D. José Mª Roger Ezpeleta, President of Fersa Board of Directors), by Joholding 2006, S.L. (company participated at 100% by Jordi Jofre Arajol, member of Board of Fersa until May 2007), by Anterma Uno, S.L. (shared chiefly by D. Ignacio Moreno Hernández, General Manager of Fersa ), D. Tomás Feliu Bassols (member of Board of Fersa until May 2007), Grupo Catalana Occidente, S.A. (member of Board of Fersa), Caja de Ahorros y Monte de Piedad de las Baleares (member of Board of Fersa until February 2008) all shareholders of Fersa. In October 19, 2007 Fersa and Foinca s shareholders agreed the acquisition of Foinca s shares by the Company with a suspensive clause by which the acquisition s agreement was subjected to carrying out of no money capital s increase. This capital s increase was approved by Extraordinary General Meeting of Shareholders in February 20, in which Foica s sharers received new shares as consideration of their shares in Foinca. 55

96 10. POWER OF BOARD OF DIRECTORS MEMBERS The General Ordinary meeting of Shareholders in May 2, 2007 approved: a) To delegate to Board of Directors the faculty to agree in one or more times capital increase, according to conditions and within terms established by article b) of Limited Company Law, with possibility of eliminating fully or partially subscription right preferring in its case, leaving without any effect the delegation approved by General Meeting of Shareholders in June 20, b) To authorize Board of Directors, in conformity with which is established in clause 75 of Limited Company Law in force, for derivative acquisition of Fersa Energías Renovables, S.A. s shares, through any onerous bond admitted by Law, within legal terms and requisites, until to reach a maximum of shares which do not surpass 5% of company s social capital, and for a price for share minimum of 1 Euro of nominal value and as maximum that does not surpass quotation rate in Stock Exchange. This authorization is subjected to fulfilment of all remaining legal requirements, will have a duration of 18 months, starting from the date of current General Meeting, and leaves without any effect that one agreed in last Ordinary General Meeting hold in June,

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98 04 B. Financial statements Fersa Group consolidated