Duro Felguera, S. A. Corporate Presentation

Informe al Consejo

Index

1. Overview

2. Energy

3. Mining & Handling

4. Oil & Gas

5. Services

6. Other activities

Overview

EPC Projects and services for industry and power generation

A multinational company based in Spain with over 150 years’ experience. The company has been listed on the Madrid

Stock Exchange since 1905.

Present in numerous countries in Europe, America, Asia, Africa and Oceania.

Among the main international companies specialised in the execution

of turnkey projects for the power generation, oil & gas and mining and handling sectors

Implements engineering, erection, commissioning, operation and

maintenance through its own means

158 years of industrial history

1858

The company Duro y Cia. is set up to manufacture iron products at

the factory in La Felguera (Asturias-Northern Spain)

1900

The company changes to become Sociedad Metalúrgica Duro

Felguera (SMDF) and leads the domestic steel and coal markets

for several years..

1905

SMDF shares start trading on the Madrid Stock Exchange.

1966-67

Sale of mining and steel assets and the company focuses its business on

the capital goods manufacturing.

1970

International actitivies commence and the company evolves towards

industrial construction and assembly.

1994

Specialisation in turnkey power generation and industrial

projects..

2009

New headquarters in Gijón where engineering and projects are

concentrated.

2015

Opening of the new office building in Madrid and celebration of the 40th anniversary of Felguera IHI

Complete engineering and development of

projects

Erection, commissioning and O&M of power and industrial facilities

Manufacturing capacity

A multi-specialist company…

Integrators

Design is Scheduled to Support Project, Purchasing and Construction Phases

Present in all of the value chain …

NTP. Notice To Proceed COD. Commercial Operation Date O&M. Operation & Maintenance COMM. Commissioning

Engineering

Supplies

Civil works, mechanical and

electrical erection

Commi- ssioning

Operation and Maintenance

EPC Projects

Present in all of the value chain …

Global presence…

The perfect size to work everywhere

Engineering, Procurement & Construction (EPC)

Erection, (ETC) Operation & Maintenance (O&M)

Other Activities

Energy Mining & Handling Oil & Gas

Coal Power Plants

FGD & DeNox

Biomass Plants

Cogeneration Plants

Simple & Combined Gas Cycles P.P

Renewable Energy (Solar PV Plants,

Solar-thermal PP…)

Mineral Processing

Port Handling Equipment

Process Units

Storage Tanks & Terminals

LNG Terminals

Pressure Vessels

Railway Systems

Tunnel formworks

Communication

Manufacturing Intelligent Systems

Geothermal Power Plants

Stockyard Systems

Mechanical, E&I Installation, Heat Insulation

Operation & Maintenance

Services

Chemical Plants

Warehouse Management Systems

Infrastructures & Energy

Erection, Overhauling of steam & gas turbines

E-Services

Operating in sectors of the future

Security and Defence

A team of multidisciplinary professionals

1.957 2.028

1.969

2.048 2.150

2011 2012 2013 2014 2015

2,028 2,150

1,929 2,007 2,005

37% 58%

5%

Graduates

Management personnel

Workers

2011 2012 2013 2014 2015

International Domestic market

1,607 1,635

2,079

1,530

2,176

2,129

1,473

2,026

1,568 1,492

115 67 53 57 47

BACKLOG EVOLUTION (Mn. €) 2015 BACKLOG BY GEOGRAPHICAL AREAS

3%

64%

2%

10%

21%

África y Oriente Medio

Asia Pacífico

Latam

Europa

España

2015 Financial data

ORDER INTAKE EVOLUTION (Mn. €)

2011 2012 2013 2014 2015

908 1,042

1,521

453

1,573

1,499

353

1,419 930

751

157 112 102 100 74

International Domestic market

88%

12%

2015 SALES (Mn. €)

International Domestic market

771

2015 Financial data

PROFIT AFTER TAX (Mn. €)

EBITDA (Mn. €)

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

101.8 111.1

85.9

50.8

-80.1

112.5 126.3

106

70.8

-96

Financial data

Sales

2015 Financial data

Increasing geographical diversification of business

AFRICA & MIDDLE EAST

22.4%

AMERICA 29.1%

ASIA PACIFIC 21.8%

EUROPE 26.7%

Engineering, Procurement and Construction (EPC)

Energy Mining & Handling Oil & Gas Services Other activities

Energy

Over 22,000 MW installed

• Among the main international companies specialised in the turnkey construction of all types of power generation plants

• Operating as sole contractor or in collaboration with the main turbine manufacturers (OEMs)

• Over 20 years’ experience in the execution of projects

ENERGY

52 projects finalised in Europe Latin America and Africa

Core business

• Gas-fired Power Generation Facilities (open and combined cycle)

• Conventional power plants

• Desulphurisation and denitrification projects

• Solar power plants

• Biomass plants

• Cogeneration plants

• Solar PV plants

• Wind farms

Turnkey contractor for:

GFPP 4

2,550 MW

Argentina

GFPP 1

850 MW

Brazil

GFPP 2

1.080 MW

Venezuela

GFPP 1 / Cogen 1

150 MW / 77 MW + 125 t/h

Chile

GFPP 4

790 MW

Peru

GFPP 15

4.934 MW

Mexico

GFPP 6

1.244 MW

Colombia

34 power projects built or under execution

11,675 MW

*GFPP: Gas Fired Power Plants

* Cogen: Cogeneration

LATIN AMERICA

ENERGY

LATIN AMERICA

Country Projects Client COD Site Type* Capacity MW Partner / OEM

COLOMBIA Las Flores I Banco Ganadero 1994 Barranquilla C/C 1 x 150 Westinghouse

Las Flores II Westinghouse 1996 Barranquilla S/C 1 x 100 Westinghouse

Las Flores III Westinghouse 1997 Barranquilla S/C 1 x 150 Westinghouse

Termopon Westinghouse 1998 Santander S/C 2 x 115 Westinghouse

Termolasierra E.E.P.P. Medellín 1998 Puerto Nare S/C 2 x 150 General Electric

Termocandelaria KMR Power Co. 2000 Cartagena de Indias S/C 2 x 157 Westinghouse

Subtotal 1.244

MEXICO El Sauz Westinghouse 1998 Querétaro S/C 1 x 150 Westinghouse

Huinalá Westinghouse 1998 Monterrey S/C 1 x 150 Westinghouse

Hermosillo Westinghouse 1998 Hermosillo S/C 1 x 150 Westinghouse

Monterrey I y II ABB Alstom Power 1999 Monterrey C/C 2 x 250 Alstom Power

Hermosillo ABB Alstom Power 2001 Hermosillo C/C 1 x 250 Alstom Power

Rosarito ABB Alstom Power 2001 Rosarito C/C 2 x 250 Alstom Power

Monterrey III ABB Alstom Power 2001 Monterrey C/C 4 x 250 Alstom Power

El Sauz II SiemensWestinghouse 2002 Querétaro S/C 1 x 150 SiemensWestinghouse

El Encino SiemensWestinghouse 2002 Chihuahua S/C 1 x 150 SiemensWestinghouse

Valle de México AlstomPower 2002 México D.F. C/C 3 x 115 Alstom Power

Naco-Nogales Unión Fenosa 2002 Aguaprieta C/C 1 x 300 SiemensWestinghouse

San Lorenzo SiemensWestinghouse 2003 Puebla S/C 2 x 150 SiemensWestinghouse

Tuxpan SiemensWestinghouse 2003 Veracruz S/C 1 x 150 SiemensWestinghouse

Petroquímica PajaritosPemex 2004 Coatzacoalcos (Veracruz) COGEN 39 MW+180 t/h DF EPC Contractor

Empalme II CFE 2018 Sonora C/C 800 Consortium DF-Elecnor

Subtotal 4.934

PERU Ventanilla Siemens Westinghouse 2006 Lima / Callao Ext. to C/C1 x 160 SiemensWestinghouse

Kallpa GLOBELEC / Siemens Power Generation 2007 Chilca / Perú S/C 1 x 180 Siemens PG

Chilca I y II ENERSUR / Siemens Power Generation 2007 Chilca / Perú S/C 2 x 170 Siemens PG

Chilca Plus ENERSUR 2016 Chilca / Perú C/C 1 x 110 DF EPC Contractor / General Electric

Subtotal 790

ARGENTINA Manuel Belgrano Termoeléctrica Manuel Belgrano 2009 Campana/Buenos Aires C/C 1 x 800 Consortium DF-Siemens PG

San Martín Termoeléctrica José de San Martín 2009 Rosario/Santa Fe C/C 1 x 800 Consortium DF-Siemens PG

Genelba Petrobras Energía 2009 Cañuelas / Buenos Aires S/C 1 x 150 DF EPC Contractor/Siemens PG

Vuelta de Obligado Central Vuelta de Obligado, S.A. 2015 Rosario/Santa Fe C/C 1 x 800 Consortium DF-General Electric

Subtotal 2.550

CHILE Tierra Amarilla Southerncross Group 2008 Tierra Amarilla, Copiapó S/C 150 DF EPC Contractor/Siemens PG

Cogen. Aconcagua ENAP 2017 Concón Cogen 77 MW + 125 t/h DF EPC Contractor/General Electric

Subtotal 227

VENEZUELA Termocentro EDC 2013 Estado Miranda C/C 1080 DF EPC Contractor/Siemens PG

Bahía Tacoa Barges Corpoelec 2013 Bahía Tacoa, Vargas GCP

Subtotal 1.080

BRAZIL Parnaíba MPX 2013 Maranhao S/C 5x170 DF EPC Contractor/General Electric

Subtotal 850

TOTAL 11.675

(*): COGEN= Cogeneration (*): S/C= Open Cycle; C/C= Combined Cycle (*): GCP= Gas Compress ion Plant

EUROPE AND AFRICA

GFPP: 17 – 8,402 MW

FGD: 4 – 2,450 MW

TSPP: 1 - 50 MW

Spain

GFPP: 1

880 MW

United Kingdom

Italy

GFPP: 1 - 80 MW

FGD: 1 - 340 MW

Algeria GFPP: 1

1,200 MW

22 power projects built or under execution (10,992 MW) and 5 FGD in Europe and North Africa

*GFPP: Gas Fired Power Plants

*FGD: Flue Gas Desulphurization

*TSPP: Thermal Solar Power Plant

Romania

GFPP 1 – 430 MW

EUROPE AND NORTH AFRICA

Country Projects Client COD Site Type* Capacity MW Partner / OEM

SPAIN Besós Endesa/Gas Natural 2002 Barcelona C/C 2 x 400 Consortium DF-Alstom Power

San Roque Endesa/Gas Natural 2002 Cádiz C/C 2 x 400 Consortium DF-Alstom Power

Castejón Hidrocantábrico 2002 Navarra C/C 1 x 400 Consortium DF-Alstom Power

Son Reus Endesa (GESA II) 2002 Palma de Mallorca C/C 1 x 225 Consortium DF-Alstom Power

Barranco Tirajana Endesa (UNELCO) 2004 Gran Canaria C/C 1 x 219 DF EPC Contractor / General Electric

Son Reus II Endesa (GESA II) 2005 Palma de Mallorca C/C 1 x 218 DF EPC Contractor / General Electric

Guia de Isora Endesa (UNELCO) 2004 Tenerife S/C 2 x 25 DF EPC Contractor / Pratt & Whitney

Barranco Tirajana II Endesa (UNELCO) 2006 Gran Canaria C/C 1 x 230 DF EPC Contractor / General Electric

Cas Tresorer I Endesa (GESA II) 2006 Palma de Mallorca C/C 1 x 230 DF EPC Contractor / General Electric

Puentes Endesa 2007 La Coruña (As Pontes) C/C 1 x 800 Consortium DF-General Electric

Reforma As Pontes Endesa 2008 La Coruña (As Pontes) C/C 4 x 350 Consortium DF-Foster Wheeler

Castejón II Hidrocantábrico 2007 Navarra C/C 1 x 400 Consortium DF-Alstom Power

Soto IV Hidrocantábrico 2008 Asturias C/C 1 x 400 Consortium DF-Alstom Power

Cas Tresorer II Endesa (GESA II) 2010 Palma de Mallorca C/C 1 x 230 DF EPC Contractor / General Electric

Puerto de Barcelona Gas Natural 2010 Barcelona C/C 1 x 800 Consortium DF-General Electric

Besós V Endesa 2010 Barcelona C/C 1 x 800 Consortium DF-General Electric

Soto V Hidrocantábrico 2011 Asturias C/C 1 x 400 Consortium DF-Alstom Power

Subtotal 8.402

ITALY Fiume Santo Endesa Italia 2005 Sardinia S/C 2 x 40 DF EPC Contractor / General Electric

Subtotal 80

UK Carrington Carrington Power Ltd 2016 Carrington C/C 1 x 880 Consortium DF-Alstom Power

Subtotal 880

ALGERIA Djelfa SPE / Sonelgaz 2017 Ain Oussera (Djelfa) C/C 1.200 DF EPC Contractor

Subtotal 1.200

ROMANIA Iernut Romgaz 2019 Iernut, Transilvania C/C 430 Consortium DF-Romelectro

Subtotal 430

(*): S/C= Open Cycle; C/C= Combined Cycle Total 10.992

FLUE GAS DESULPHURISATION

Country Projects Client COD Site Type* Capacity MW Partner / OEM

SPAIN Compostilla Endesa 2008 Ponferrada FGD 2x350 Consortium DF-MHI

Velilla Iberdrola 2008 Palencia FGD 1x350 Consortium DF-MHI

Teruel Endesa 2007 Teruel FGD 3x350 Consortium DF-MHI

Lada Iberdrola 2009 Langreo FGD 1x350 Consortium DF-MHI

Subtotal 2.450

ITALY Monfalcone Endesa Italia 2008 Monfalcone FGD 2x170 Consortium DF-MHI

Subtotal 340

(*): FGD: Flue Gas Desulphurisation TOTAL 2.790

THERMAL SOLAR POWER PLANT

Country Project Client COD Site Type Capacity MW Partner / GEM

SPAIN Andasol 3 Marquesado Solar 2012 Granada TSPP 1X50 Consortium DF-Ferrostaal, Solar Millennium & Flagsol

Subtotal 50

(*): TSPP: Thermal Solar Power Plant TOTAL 50

Mining & Handling

• Engineering and turnkey projects in the mining and mineral handling field.

• Among the major international companies in the construction of mineral processing and bulk material handling facilities, and bulk loading and unloading port terminals.

• Wide experience and own know-how. • Large projects executed in India, Mexico, Venezuela, Argentina, Chile, USA, Spain, Abu Dhabi, Qatar,

Mauritania, Egypt, Indonesia, Liberia, Senegal, etc.

Among the major international companies in the sector

Over 150 years’ experience in the mining sector

Open cast or underground mines:

Mineral Treatment Plants:

• Vertical shafts and all related equipment

• Underground and surface loading stations

• Crushing and Screening Plants

• Conveyor systems

• Truck loading and unloading stations

• Ore storage and homogenisation yards

• Crushing

• Grinding

• Classification

• Magnetic separation

• Gravity

• Flotation

• Tailings deposition

Turnkey projects

Mining

MINING & HANDLING

Engineering capacity and high know-how

Equipment Materials

• Stackers and reclaimers

• Grab shipunloaders

• Ship loaders

• Train loading and

unloading systems

• Conveyor systems

• Coal

• Iron ore - HBI - DRI

• Aggregates

• Cement and Clinker

• Petroleum coke

• Sulphur

• Phosphates

MINING & HANDLING

Handling

USA

Venezuela

Chile

Spain

India

Indonesia

MINING & HANDLING

International presence

Italy

Abu Dhabi

Egypt

Liberia

Mauritania

Senegal

Qatar

Executing projects in the main worldwide mining centres

Australia

Mexico

Algeria

Oil & Gas

• Turnkey execution of different types of installations for the Oil & Gas sector.

• Projects executed in different countries for outstanding petrochemical companies among which we could highlight those in Spain, Mexico, Brazil, Peru, Costa Rica, Belarus, Argentina and Jordan, among others.

• Fuel storage is envisaged as one of DF’s core businesses due to group subsidiary Felguera IHI’s ample experience.

Turnkey projects for the oil & gas sector with high technological capacity in

fuel storage

OIL & GAS

Fuel Storage

At the forefront of LNG storage installations

DF is a major Spanish company is the storage of fuels, whether liquid or gaseous, and carries out the turnkey construction of complete plants and various types of individual pieces of equipment. Through its subsidiary Felguera IHI, a company owned by DF and the Japanese IHI Corporation, we carry out the following activities: • Design and construction of Liquefied Natural

Gas (LNG) tanks.

• Design and construction of vertical and spherical storage tanks.

• Turnkey design and construction of hydrocarbon storage plants.

• Operation and Maintenance at refineries and storage plants.

USA

Mexico

Costa Rica

Venezuela

Bolivia Peru

Chile

Spain Portugal

Argelia

Libya

Egypt

Turkey

China

Turkmenistan

Iran

Saudi Arabia

Greece

Jordan

Brazil

OIL & GAS

International presence

Projects and equipment for petrochemical and fuel storage installations

South Africa

Panama Nigeria

Belgium

Services

Specialists in the erection, commissioning, operation and maintenance of power and industrial installations.

Core business:

• Structure, mechanical, electrical erection, piping and instrumentation.

• Maintenance of industrial plants in the energy, petrochemical, chemical, iron and steel and metallurgical sectors.

• Supply and installation of thermal and acoustic insulation.

• Commissioning, operation and maintenance of power generation plants and industrial facilities.

• Installation, operation and maintenance of wind farms.

Over 40 years’ experience in industrial assembly

Leaders in the construction and overhaul of turbines and generators

Core business

• Turbine and generator installation and overhauls at power generation plants.

• Turnkey projects execution for:

• Cogeneration and biomass plants • Pellets plants • Logistics systems

DF Mompresa

SERVICES

Mexico

United Kingdom

Ireland

Spain

Holland

France Romania

Colombia

Venezuela

Germany

Peru Brazil

Argentina

SERVICES

International presence

Chile

Professionals and technical equipment with increasingly high international impact

Belgium

Other activities

OTHER ACTIVITIES

Manufacturing

DF has its own workshops in Asturias (Northern Spain) with a long-standing experience in capital goods manufacturing and whose production is almost entirely exported

Aerial view of FCP workshop, Gijón (Asturias) Aerial view of Felguera Rail workshop, Mieres (Asturias)

OTHER ACTIVITIES

Manufacturing

Design and innovation for industrial equipment

Large pressure vessels for the petrochemical industry: The Felguera Calderería Pesada (FCP) workshop is near the Port of El Musel (Gijón, Northern Spain), on the coast and therefore with direct access to the sea. Specialised in the design and manufacturing of thick-walled reactors, coking chambers, FCC units, large columns, processing units and high pressure separators. Over 40 years’ experience and an intense research and development programme which has enabled DF Calderería Pesada to constantly innovate its production processes.

OTHER ACTIVITIES

Manufacturing Railway turnout systems and crossings: Through its subsidiary DF Rail, the company designs and manufactures several types of rail equipment and crossings, with its own patents thanks to an intense effort in research and development, and its technologically advanced facilities.

• Wooden sleepers, concrete sleepers, slab track ...

• Track gauges of 1,000, 1,435, 1,445, 1,668 mm ... different gauge combinations 1,000/1,435, 1,435/1,668

• Casted Mn steel crossings, swing nose crossings

• Transition Rails RN45/54E1, RN45/60E1, 54E1/60E1...

• Insulated Glued Joints

Complete manufacturing capacity for high speed projects

OTHER ACTIVITIES

Smart systems

Advanced solutions with cutting-edge technology

Smart infrastructures Energy: control centres, substation automation systems, smart grids, control and measuring systems. Environmental protection: water distribution and treatment stations. Waste water treatment. Transport: catenary and traction systems. Control centre and traffic operation. Communications Airports: aeronautical communication systems, air traffic management operations and airport infrastructures. Ports: Complete management of maritime and port operations Security and defence Homeland security: Command and control centres, border surveillance systems, perimeter security solutions. Defence: C4I command systems for strategic, tactical and operational levels. Communication inhibitors.

Occupational Hazard Prevention forms part of our business activity in all technical and organizational processes and at all levels in the company

Safety, our target

Our culture is based on positive reinforcement, interdependence among workers and good practices.

Strengthening preventive culture on all business lines and throughout the whole hierarchy, with people as the main value to protect.

Commitment to professional development and acquiring good preventive habits for the organisation’s professionals.

Promotion of safety in contractors in the international field.

Development of training, information and awareness programmes among DF employees and our contractors.

Safety, our target

Corporate Presentation 2014