In financial year 2017, the traditional programs in progress have been consolidated in the markets of greatest attraction at present, such as China, United Kingdom and India. In the same way, the new trend in the sector has been confirmed, consisting of technologies and reactors of new generation, which are more economical, smaller and, above all, based on passive security measures. In China, the projects underway continue advancing with new plants, among them the first AP-1000-type reactors from Westinghouse, with the support of the local industry that continues supplying large components. The first plant with this technology is very advanced in the tests prior to being connected to the grid. CGN (China General Nuclear Power Group) and CNNC (China National Nuclear Corporation) have officially confirmed that they will export jointly the Generation III reactor called Hualong. This reactor has been formally proposed for the United Kingdom (Bradwell).

As for the international projects with Chinese financing, plans are confirmed for Argentina (CNNC) and Romania (CGN), with the first units being proposed with the CANDU design. For Argentina, agreements have been closed with China to construct a CANDU in Atucha 3 plus the future construction and start-up of a new plant, whose location is yet to be decided by the Argentine authorities. In the case of Romania, progress has been very limited and the political decisions on the project have not yet permitted its launching. Therefore, it can be expected that during 2018 the circumstances may arise to be able to activate and close the agreements that allow starting work on the future units 3 and 4 of Cernavoda. Most of the activity in the United Kingdom in 2017 has taken place at Hinkley Point, which has led to the launching of the first contracting of components and equipment by the EDF and Framatome (formerly Areva).

The EDF-CGN association count on using reactors of the EPR type for Sizewell C, while for the Bradwell B site, it is expected that the design will be Chinese. On the other hand, Horizon (Hitachi-GE) continues with its project for Wylfa and an investment decision is expected in 2019. With respect to NuGeneration (Westinghouse), KEPCO (Korea) was finally chosen as buyer of 100% of the shares, and it is expected that the negotiations will conclude during the year 2018 and the investment decision is expected in 2019. Also in 2017 the Toshiba situation has evolved and, more specifically, that of its former owner Westinghouse. After the American company declared bankruptcy last March and the restructuring of part of its business lines and management team, efforts have been focussed on consolidating the main business lines: engineering, fuel and services. Parallel to this, the judicial process of supervision of the bankrupt company (Chapter 11) and the acquisition of Westinghouse by a new owner that substitutes Toshiba as the principal shareholder of the Pittsburgh entity have been carried out.

Regarding this, the willingness to purchase has been formalized by a Canadian investment group, which is expected to be completed in the second half of 2018 and that this will bring more stability to Westinghouse, allowing the launching of projects that were planned (AP-1000 of India, among others), as well as speed up the exit from the bankrupt situation. In the USA, the construction continues of the new AP-1000 Vogtle 2 plant, after redirecting the project. On the contrary, the operator responsible for VI Summer announced the suspension of the project although at present it is awaiting confirmation of its decision.

Within the European framework, in France, the government posed a national energy strategic plan consisting of a mixture of energy sources where the percentage of nuclear power of the country would decrease nearly 50%, while this decision was notified during the year. The French Minister of Environment affirmed in November that it postpones from 2025 to 2030 or 2035 the objective of reducing the nuclear energy quota in the mix, since it would put into danger the reliable supply of power from 2020 and would not fulfil the objectives of reducing the CO2 emissions. In this context, the plans to replace components of 900 MW and 1300 MW plants continue their process and currently suppose a high percentage of the activity in the industrial sector. In July 2017 EDF issued a tender for a new package of steam generators of the 900 MW type that is expected to be awarded to the main designers and manufacturers in the year 2019. The year 2017 has been a year of changes for AREVA, which has restructured its business units. In this sense, the French government has confirmed the purchase of Areva by EDF (75.5%) as majority shareholder and the Japanese firm MHI (19.5%) and the French firm Assystem (5%) as minority shareholders.

In Saudi Arabia, an announcement was expected throughout 2017 on specific construction plans of new plants. With respect to the reactors with new and experimental design, there are increasingly fewer doubts that they will have an important role in the sector. The Department of Energy (DoE) of the USA continues financing companies such as NuScale or X-Energy, among others, for the development of the designs of new components.

In 2017 the NRC accepted the licencing request that NuScale had made for its SMR, advancing in this way in the plans for the company from Oregon for putting into operation a plant of these characteristics. In turn, NuScale has formally requested offers from the different industries for the manufacturing of the first 12 SMR reactors, with an option for 24 more.

ECONOMIC FIGURES

Financial year 2017 presents the following parameters:

• The profit and loss account shows a negative result of (3,589) thousand euros after taxes.

• The turnover amount was 78,003 thousand euros, of which 37% were directed to foreign markets.

• The activity was 305 thousand hours of occupation.

• The orders portfolio at the end of the year reach a figure of 209,637 thousand euros, allowing the normal development of the business.

ACTIVITY DURING 2017

a) NUCLEAR BUSINESS

Replacement Market

EDF has issued last summer a tender for four sets of

three 900 MWe-type steam generators. The award is

expected in the first quarter of 2019.

In the USA, no significant novelties have been produced

in the replacement market of large components.

New Plants

Ensa is watching the different opportunities that are

presented:

In the United Kingdom, the Hinckley Point nuclear plant

and the project of NuGen in Moorside.

The nuclear expansion of India, both the domestic

program of heavy water plants and in collaboration with

Westinghouse for the AP-1000 plants.

The launching of the plants in Argentina and in Romania.

The project of Dominion for an ESBWR plant in North

Anna 3.

Small Modular Reactors

Ensa maintains contacts with the main technologists,

performing different tasks for them.

b) BUSINESS DEVELOPMENT

The commercial activity in this area has been very

intense, in the national as well as the international

market, focussing mainly on markets with short- and

medium-term opportunities.

ATC

The ATC (Centralized Temporary Storage Facilities)

matters continue without progressing at the expected

pace and the planned contracts are delayed once more,

although we continue supervising very closely the

opportunities that the ATC may offer.

Casks (containers)

After the obtaining of the licence for the Ensa

“ENUN32P” container in 2015 for the storage and

loading of 32 PWR-type fuel elements, for the Trillo,

Almaraz, Ascó and Vandellós plants, we continue

advancing to obtain the transport licences for high-grade

burned out fuel.

For its part, the ENUN24P container, designed to meet

the demands of the Chinese market was licenced in 2017

in Spain, and the Chinese nuclear regulator, NNSA, has

evaluated the safety study, so we hope that the client

may obtain the licence in China in the first months of

2018.

As for the “ENUN52B” container, Ensa already has the

licence for transport and storage, which allows the use of

the container for its loading, at the time in which the

client considers it appropriate.

Furthermore, four (4) units of MPC-type containers

(Holtec design) are being manufactured for Ascó and the

manufacturing has been finalized of four TN81-type

containers in the first days of 2018.

An agreement with WEC has been signed for the joint

development of a concrete container.

The 2017 agreement with the Chinese company THH has

been signed, for cooperation in the container market.

Racks (frames)

The manufacturing of five new interlocking racks has

been finalized for the nuclear plant of Olkiluoto, which

are already located at the nuclear plant awaiting

installation in the upcoming weeks.

At the end of 2017, ANAV has awarded us the reracking

work for Vandellós II, which consists of the design and

supply of six new racks, the extraction of part of the

racks existing in the pool and the installation of these

new racks.

Laboratories, ITER and Others

The work on the ITER project, of supplying four tanks for

tritiated water and the review of the possibility of

manufacturing the TBM system progress at a good pace.

In the same way, the development carried out for the

joining of the VV sectors of the ITER are already

finalized, and the work is prepared to begin the

validation of the equipment and processes on the

models.

Dismantling and Waste

In the Zorita Nuclear Plant, the work has finalized on the

decontamination of facings.

In Bulgaria we have also finalized the dismantling work

for Kozloduy.

In Italy, we have presented a proposal for modification of

the engineering for the nuclear plant of Trino.

The contract with the Marinha of Brazil has been

formalized for the supply of the Waste Plant.

The first campaign has been carried out on the cutting of

control bars for the Cofrentes nuclear plant, based on the

technology developed by Ensa for the cutting of these

downstream components.

The realization of electropolishing of Steam Generators

has been awarded to us.

In-plant Services

In 2017 we carried out the loading of three containers in

Ascó.

New ENUN32P containers. We have finalized and

delivered all the ancillary equipment necessary for the

loading of containers in Almaraz and in Trillo, and we

have also begun the internal cold tests.

The services of plugging and leak tests on an exchanger

in the Trillo nuclear plant have been performed.

Special projects, tanks and exchangers

Throughout 2017 we have presented various offers for

packages of tanks, expecting a decision in 2018.

A new “special tool” for fuel has been supplied, which

was developed at ENSA, for the Almaraz nuclear plant.

c) ENWESA OPERATIONS

During the fourth quarter of the year, the refueling

outages were carried out as planned for the Cofrentes,

Ascó II and Penly nuclear plants.

The scope of ENWESA at Cofrentes was focussed on the

review of rotating equipment and valves, similar to the

previous outage programs.

The scope of Ascó II has been much broader, both in the

nuclear area, with work on the reactor, steam

generators, fuel and main pumps and in the area of

valves. To this must be added the high load of work of

mechanical maintenance and design modifications of the

UTE ENWESA-NAVEC during this refueling.

Regarding the fuel activity, work was done during the

refueling of Ascó II, in Almaraz II (reception of fresh fuel)

and in different inspection and repair projects of spent

fuel in various plants, as well as in the design and

manufacturing of equipment for repairing fuel elements.

Work has been done on the tests prior to the loading of

containers in Trillo and Almaraz.

In France, we participated in the review of valves during

the outage of Penly I.

On the works of long duration begun in previous years,

the following can be highlighted:

• Dismantling the installations of Zorita, a contract recently finalized.

• Mechanical maintenance in ANAV. • Integral maintenance in CTCC Plana del Vent. • Maintenance of the HVAC system in Ascó. • Maintenance of the megaphone system of

Almaraz. • Integral maintenance of the Saelices mine of

ENUSA, a contract finalized recently. • Support to the tests of valves with Ringo. • Assembly and welding contract of a vessel in the

shipyards of Navantia in Cádiz.

The manufacturing work in the workshop of components

for the nuclear industry continues as planned.

The main projects in the area of robotics have been

implemented for Renault (crankshaft load cell and gantry

for unloading motor blocks), Nissan (manipulation of

axles and of sand cores) and Fermacell (manufacturing

lines and transport).

At the end of 2017, the ENUSA-ENWESA-Westinghouse

AIE (economic interest grouping) was restructured,

allowing Westinghouse to leave and Ensa to enter, thus

leading to the creation of a new AIE named ENUSA-ENSA

AIE.

d) WTS

The WTS Company, with minority shareholding by the

Ensa Group of 30%, maintains the evolution followed by

the business during the past financial years in:

Support Services for the Exploitation of Nuclear Plants in

Almaraz units 1 and 2, Ascó and Vandellós.

Engineering Services, diverse activities in Spanish

nuclear plants.

Nuclear Services, in the nuclear plants of Ascó, Almaraz 1

and 2.

Commercial Support Services, providing commercial

support services to different organizations of the

Westinghouse Group.

The expectations in the national market continue to be

limited to the maintenance services and improvement of

the current plants in operation.

TECHNOLOGICAL DEVELOPMENT

During the year 2017, the Global Technological

Improvement Plan constituted the basis for progressing

in the improvement of the level of innovation and

technological development, and achieving financing and

subsidy opportunities for R&D&I projects.

As in previous years, Ensa has continued working

according to the Annual Technological Improvements

Plan-2017, managing 130 Innovation and Technological

Improvement Actions, where strategic projects,

developments in priority technologies and R&D&I

projects are prioritized.

Along with the CAPA platform, created to gather new

ideas of innovative development, the use of tools for

promoting creativity (Brainstorming, Design Thinking,

...), the development of our “Intraemprendimiento”

(Intraentrepreneurial) model and the launching of the

Digitalization Plan, have been the principal “tools” for

posing the new technological solutions and

improvements in project developments.

The actions during the year 2017 were directed to

improving our processes, means and products

technologically.

The most relevant activities continue being focussed on:

the welding processes, the non-destructive tests, led

from the areas of Automation and Robotics; Welding

Development, Fuel Management Inspection and

Calculation, and Plant Services and new products.

We have consolidated our presence in the R&D&I

programs of the European Union, achieving in our

program, at the end of 2017, a new project (MEACTOS)

that is added to the three achieved the previous year and

currently underway (TRUSS, COROMA and OPTOSTEEL),

which improves our participation within the

subprograms of H2020: INDUSTRIAL LEADERSHIP;

RFCS and EURATOM.

As for our technological partners, the activities of the

program continue increasing collaborations with the UC

(Universidad de Cantabria) and the CTC (Centro

Tecnológico de Componentes) and with ENUSA in the

field of Calculation and Design.

Collaboration has continued with the partners in the

United Kingdom (TWI, Nuclear AMRC) and France

(Areva or EDF) in the approved European projects.

In addition, new activities of WEC collaboration have

been consolidated (ENUNH Container and GV

segmentation) and Areva (Thermal Treatment

Equipment and MEACTOS European Project).

HUMAN RESOURCES AND CORPORATE SOCIAL

RESPONSIBILITY

The Ensa Group has stood out for its quality and

innovation, always paying special attention to its

environment, trying to reconcile economic, social and

environmental development, favouring the use of quality,

equality of opportunities and respect for the

environment.

In order to continue its openness and strengthening policy

in the international markets and reaching its goals, it has

two main pillars: its human team and the commitment to

innovation and improvement. In order to reinforce both

pillars, the company requires applying the best practices

of People Management in order to develop the staff’s

potentials and improve their performance.

In order to maintain the trust and credibility of its

shareholder, clients, suppliers and other related parties,

values such as operational excellence, ethical and socially

responsible actions, occupational health and safety,

people development and passion for continued

improvement guide the activities of the Group.

To guarantee responsible corporate behaviour, the

Company has established ten differentiated action lines

with their corresponding application tools.

1. Strengthen equality of treatment and

opportunities; the Equality Plan in effect since 2008.

2. Prevent harassment at work; the internal protocol in effect since 2010.

3. Contribute to the development of the milieu; Social Programs and Solidarity Projects implemented in the company practically since its incorporation.

4. Identify the standard of conduct that all the persons must observe who work for Ensa or who maintain with it a relationship that may influence in its activity; the Code of Corporate Conduct established in 2013.

5. Help in identifying any violation of the regulations; the Crime Prevention Plan, in effect since 2014.

6. Safeguard the safety and health of the people; the Zero Accidents Plan.

7. Contribute to the protection of the environment; the Environmental Improvement Plan.

8. Guarantee the labour relations and the right to collective bargaining; the Collective Bargaining Agreement of the company, the last published in the BOE in February 2015.

9. Guarantee an orderly transfer of knowledge and skills and professional development; the Knowledge Management Plan.

10. Facilitate the access to information, the Transparency Portal.

Premio Pablo Zuluaga 2017- Roberto Ruiz

The principal actions carried out during the year 2017:

a) Staff rejuvenation program

The Ensa Group has been undertaking in recent years a

Staff Rejuvenation Plan with relief contracts. At Ensa, a

total of 65 workers have entered this plan, of which 7

entered it in the year 2017. As for ENWESA, a total of 15

workers have entered this Plan up to now, with 2 of them

entering in the year 2017.

b) Knowledge Management Program

During the year 2017, actions have been continued

aimed at improving the performance or acquiring of new

skills and competences of the persons who work in the

Ensa Group that qualify them to assume a post of greater

responsibility.

The 2017 Training Plan was designed taking into

account the strategic objectives defined in the Action

Plan and based on the proposals and priorities received

from the different Divisions. In this respect, the training

during 2017 has mainly been directed towards

reinforcing the “Culture of Nuclear Safety and the

implementation of the tools of Good Practices (HuP)” with

the objective of acting on the individual behaviours as a

channel for reducing the possibility of errors and

consequently, improve the competitiveness of the

company.

From the HuP and culture of Nuclear Safety training

program, 88 training actions have been carried out

which have represented a total of 1,240 hours in which

the entire staff has participated.

The Ensa Training Plan for the year 2017 was structured

according to the group to which it was directed:

b.1) TRAINING PLAN FOR DIRECT PERSONNEL OF

THE WORKSHOP:

• Training in Good Practices and Culture of Nuclear Safety (HuP):

Reinforcement on tools of HuP and Culture of Nuclear Safety.

Prejobs, Post-jobs and Learned Lessons. Lean Manufacturing. Training in carrying out procedures and work

instructions. Talks on quality indices and obtained productivity

values. Training aimed at communication and incidents

identified as having operational impact. Communication of the valuation of incidents in

terms of cost and planning.

Training in Prevention of Labour Risks: occasional

bridge crane operator, first intervention team, first aid

and rescue team, specific training in ORP and risk

evaluation of the boiler and assembly posts, training in

risks of entrapment in mechanized machines, prevention

of musculoskeletal disorders, ....

• Training in qualification:

Training in innovation and improvement of processes: Ultrafit Plus electromagnet, EMAT Training of handling PowerBoxH (UT) equipment, interpretation of plans, Level 2 penetrating fluids, layout of boilers and Level 2 TOFD ultrasounds.

Specific training for ITER projects, loading of containers, etc.

Consolidation and opening of new markets (new work processes, designs and procedures, quality codes, ...).

Training in work performance: basics on Warming up, Soaking and Thermal Treatments carried out in Ensa, training for the validation of the filler material, instructions for properly preparing the work stations, maintaining order in them, generating a good image of the workshop and always maintaining the safety conditions, return on the experience of the French contracts, ....

In total, 113 training actions were carried out for direct personnel of the workshop, receiving an average of 18 hours of training per person.

b.2) TRAINING PLAN FOR INDIRECT PERSONNEL:

• Training In Good Practices and Culture of Nuclear

Safety (HuP). • Technical Fridays: training aimed at the

transmission of internal knowledge and culture of the Group. It deals with training that is given by veterans and experienced personnel in the company on Friday afternoons and which is directed mainly to Project Engineers, Project Heads and Quality Engineers with the purpose of reinforcing the knowledge necessary to perform their job and homogenize criteria for confronting problems. The courses given on Technical Fridays during the year 2017 were: Use of self-learning tool: Moodle; Law on State contracting/contracts; Welding Processes; Systematic identification of environmental risks per project; Coordination of company activities; Plant/fuel components; Manufacturing Sequences of Components, materials, Inspections, etc.; Decision-making and problem solving; Training in Manufacturing Codes (RCC-M) and Risk management. Elaboration of a practical case.

In all, 10 courses were carried out on Technical Fridays, with 449 hours and the participation of 299 persons. • Brainstorming/Design Thinking Methodology:

training actions based on the pooling of ideas with the goal of developing and exercising creative imagination and the search for solutions to problems.

• Digitalization: training actions directed to

incorporating the digital environment in a functional manner in the daily work of the organization. This specific program intends for Ensa to lead the digital transformation through an integral, global and updated vision of the digital business tools. Nine training actions were carried out within the Digitalization Plan, dedicating 501 hours and with the participation of 289 persons.

Training in Occupational Risk Prevention: training of

workshop managers in the management of equipment

and safe work; Training on PSE-17: consignment of

machines and installations; safety in working at heights,

alarm and evacuation team, first intervention team, and

training in specific ORP for access to plants by personnel

of the Business Development Division.

Training for Qualification: multidisciplinary training

aimed at the improvement and recycling in the post:

legislative update, languages, etc.

In total, 241 training actions were given to the indirect

personnel, which has signified 6,534 hours of training,

with each person receiving an average of 24 hours of

training.

In the global calculation of the Ensa & Enwesa Company

Group, during the year 2017, a total of 50,740 hours of

training were given, of which 20.702 hours were

directed to train staff and the rest dealing with training

of third parties (university interns and vocational

education students in practicums).

Integral program for factory absenteeism control

and reduction

The factory integral absenteeism control and reduction

program contains actions in the area of accidents,

illnesses, paid leave and improvement of the work

climate.

During the year 2017, we have continued working in the

implementation of the actions contained in the “Zero

Accidents Plan” whose purpose is:

To create the necessary conditions so that all the Ensa

personnel, or those that work in its premises, may carry

out their activity efficiently and without risks, avoiding

events and damages that can affect their health and

physical integrity.

To reinforce the culture of safety by means of

implementing actions that progressively improve the

accident rate with the objective of reaching “zero

accidents”, mainly consisting of our actions regarding

people: “Safety based on conduct”.

In the year 2017 the total absenteeism index of Ensa was

situated at 4.01 and in Enwesa at 2.90.

Program of contribution to sustainable development

We think that “how we do things is as important as what

we do”; therefore, Social Responsibility is a precept

included in the corporate and cultural values of the

entire organization and is reflected in the company’s

annual plans. Also, the ethical and socially responsible

actions are included in the Company’s Code of Corporate

Conduct.

During the year 2017, the Human Relations and

Corporate Social Responsibility Division carried out the

following actions in the framework of the policies on

Social Responsibility:

d.1) Strengthen equality of treatment and of

opportunities: Equality Plan

On 31 December 2017, 100% of the 43 measures

contained initially in the Equality Plan signed by the

Management and the Company Committee on 28 May

2008 had been carried out. Afterwards, the Equality

Commission designed 49 new measures, with 42 being

implemented or in the implementation phase.

Specifically, on 31 December 2017, 95 of the 102

planned measures had been carried out, which

represents 93.14% fulfilment.

During the year 2017, the staff has continued being

sensitized and made aware of the subject of equality

through the publication of campaigns and informative

messages. Furthermore, external diffusion has been

made of the Equality Plan through the participation in

talks and forums in which the measures adopted by Ensa

on the subject of Equality were made known.

medidas adoptadas por Ensa en materia de Igualdad.

With respect to the most relevant facts carried out, the following stand out: • On the date of 28 September 2017, the Secretariat

of State of Social Services and Equality granted to Ensa the 2nd Extension of the seal of distinction “Equality in the Company”. This extension is for three years. Ensa obtained this recognition in the first award of the seal carried out in the year 2010.

• Inclusion of two good practices of Ensa in the

Guide published in May 2017 by the Women’s Institute and for the Equality of Opportunities in which the measures appear that were more innovative and transferable for equality of opportunities among women and men (DIE network). Specifically, the two selected good practices were:

1. Ensa designed and prepared an “Action Protocol for the Prevention of Harassment” and

2. Holding courses and workshops that deal specifically with the subject of equality of opportunities and are directed, in general, to all the personnel of the company and, specifically, to certain groups, stressing the training on the principles of non-discrimination and equality of opportunities to those who had responsibilities in the leadership and management of teams.

• The Ministry of Health, Social Services and

Equality included Ensa in the Special Bulletins published in the Ministry’s website, published to commemorate the “Day of Salary Equality”, “International Women’s Day” and the “International Day for the Elimination of Violence against Women” in which several of the companies of the DIE Network participated.

• Sending to the Global Compact the “Annual Progress Report”, corresponding to the third year of application of the principles of

the United Nations Global Compact where the actions and measures implemented in Ensa during this period are reflected, related

to Human Rights, Labour Regulations, Environment and the Fight against Corruption.

• Active participation in the working groups organized by the Network of Companies with the Seal of Equality “DIE Network”.

• Participation as speakers in the commemorative acts organized by the Ministry of Health, Social Services and Equality related to

the tenth anniversary of the Law of Equality; specifically, Ensa participated in the seminar "Women in science and technology”.

Furthermore, Ensa participated as speaker in the Workshop in the implementation of Equality Plans in Companies organized by

the Padre Menni Hospital Centre.

• Collaboration with educational centres for promoting attitudes of entrepreneurship and facilitating employability of young people of the region: we receive visits of students from secondary education centres and universities; we give talks to young students with the aim of favouring their attraction towards studies related to the nuclear sector, mainly for women where they have a lesser representation, through the Association of Nuclear Youths or of the cycle of Conferences “Thursdays of Mining and Energy”, organized by the University of Cantabria; giving talks on the subject of equality to young students in the framework of the “STARTinnova” project, a project consisting of the mentoring of a secondary education centre in the development of a business project with the aim of promoting attitudes of entrepreneurship among boys and girls who study in an educational centre near the company’s installations.

• Giving training to the entire staff on the “Crime Prevention Plan of the Ensa Group”. Specifically, on the subject of equality, the crimes included in articles 311 to 318 bis of the Criminal Code are specified, referring to the Crimes against the Rights of Workers.

• Celebration of meetings with the Equality Commission with the aim of monitoring the actions and proposing new measures for the Equality Plan.

• Participation in the study on the presence of women in the nuclear sector, with the aim of obtaining an image of the current reality and having it as a reference for the evolution in upcoming years. Furthermore, these data will contribute to other studies and will serve to analyse the participation of women in the different scientific and technological areas (WIN)

• Collaboration in the study “Of what does ethical management consist?” organized by the ETHOS Department of the Universidad Ramón Llull.

• Providing training on the subject of equality, increasing the number of persons training in this subject. Since the entry into effect of the Equality Plan, 677 persons have been trained. Therefore, the entire staff has received training in the subject of equality.

d.2) Commitment to safety and health of persons: OHSAS

18001:2007

Ensa gives maximum importance to the protection of the

physical integrity and health of people and the

prevention of any type of risk in the workplace. The

company maintains a firm commitment to the

integration of the preventive activities at all the

hierarchical levels of the organization, ensuring that all

the workers are aware of the need to collaborate in the

adoption of and compliance with the preventive

measures:

Within the area of the Improvement Plans, the

implementation of the “Zero Accidents Plan” has

continued. For the year 2017, 28 action measures were

considered, of which 100% were implemented.

From among the implemented measures the following

are highlighted:

• Provide training to all departments on the risk of entrapment of hands.

• Give importance to the daily patrols on order and cleanliness of the workshop.

• Enable and use adequate auxiliary means for the support of parts with the aim of avoiding unstable forms such as support on blocks.

• ORP Training Plan to Managers and Masters in the management of safe work teams.

• Training for the prevention of musculoskeletal disorders.

• Adoption of measures to avoid accessing parts at a different level being done, using elements not designed for such purpose.

• Awareness on the need to protect horizontal spaces in the assembly of work stations.

• Ensuring that scaffolding is not used if it does not have its corresponding register duly filled out.

• Installation of fixed partitions to delimit the workshop qualification area.

• Acquisition of specific protection for sharp edges in the lifting of parts.

• Insist on the use and correct placement of protective partitions in the handling the grinding and welding work for the purpose of avoiding accidents by projection of particles and radiations.

• Sensitivity campaigns on hand accidents and falls. • Awareness on how to carry out safely the loading

and unloading manoeuvres, etc.

The number of accidents with sick leave in the year 2017 was 5 minor accidents.

In addition to the actions contained in the Improvement Plan, during the year 2017, the following actions, among others, were carried out: • The legal audit of our prevention service and of

the maintenance of our management system based on OHSAS 18001, performed by the company Lloyd’s Register LROA, was successfully passed. The audit was passed without having found any type of non-conformity.

• New technical safety instructions were development and implemented to improve the execution of the work. In all, we developed 7 new work instructions (Safety Rules for Pinacho 260-DD CTA Lathe, General Rules for Kompakt CTA milling cutter, General Rules for Behringer Vertical Saw, Safety Rules for AF3 Zayer milling cutter, Transport of Hazardous Merchandise, Safety Rules for handling compressed gases and Safety rules for Juaristi milling machine), new risk evaluations were drawn up and procedures and instructions were reviewed.

• Nine safety plans for the realization of work in different nuclear plants and different evaluations and occasional reviews were prepared.

• The technical sheets of the lifting tools were begun to be prepared, designed by the tool department for our own use within our installations.

• New software was prepared for the control and management of the lifting elements, improving the system which we previously had and updating in real time the state of the equipment and the introduction in the system of new lifting elements with their corresponding safety certificates.

• A working group, constituted by the Welding and Tools units, along with the prevention delegates and the prevention service, was established with the aim of analysing and improving the work that is done at high temperatures. During this year, the work of the union of the SA-33 has been studied and an adequate solution was contributed which improves the working conditions of the welders.

• A new peripheral protection system was implemented in the Eyher lifting platforms, with the aim of facilitating access regardless of the height at which one is found, having folding panels that function as a handrail.

• New fire detectors were placed in data processing plants situated by factory.

• Two points for supplying ear plugs for auditory protection have been installed for visitors.

• Annual review of life lines.

• Preventive inspections for legionella.

• Inspection of the lifting means (slings, lifting straps, shackles, clamps, ...).

• Inspection of the fire extinguishing and detection means (extinguishers, hose reels, hydrants, ...).

d.3) Welfare subjects and on the contribution to society

During the year 2017, Ensa continued with the

scholarship programs for university students, post-

graduate students, students of medium and advanced

training cycles and vocational training students for the

qualification and obtaining of the certificate of

professional standards. In this sense the following

collaboration agreements can be highlighted:

Agreement with the Orientation and Intraining Centre

for Employment (COIE) of the Universidad de Cantabria

so that the students of different degrees can carry out

internships in Ensa. During the year 2017, 30 interns

carried out practicums in different areas of the company.

Agreements with vocational centers of the area so that

students of different disciplines (programming of

production in mechanical manufacturing,

electrotechnical and automated systems, laboratory of

quality analysis and control, metallic constructions,

prevention of professional risks, welding and

boilermaking, mechanical manufacturing, welding and

industrial pipe fitting and administration and finance)

can carry out the period of internship necessary for

obtaining the degree. In the year 2017, 10 students were

chosen, coming from these centres.

Collaboration agreement with the CESINE University

Centre (a centre attached to the University of Wales and

to the London Metropolitan University) so that students

can carry out practicums in Ensa. In the year 2017 two

students coming from this centre were accepted.

Educational collaboration agreement with the

Universidad Europea del Atlántico (UNEATLÁNTICO)

for the development of programs of external academic

practicums for university students. In the year 2017 one

student coming from this centre was accepted.

Collaboration agreement with IAESTE for the realization

of training practicums for foreign students. In the year

2017 one student coming from the Universidad de

Sharjah (United Arab Emirates) as accepted.

Educational collaboration agreement between the

Energy, Environmental and Technological Research

Center (CIEMAT) and ENSA to contribute to excellence

training in the Master’s Program in Nuclear Energy and

Applications (MINA). In the year 2017 one student

coming from this master’s program was accepted.

Agreement with the Labour Foundation of Metal of

Cantabria, a collaborating training entity through the

Regional Ministry of Employment and the Regional

Ministry of Education, so that unemployed workers can

carry out practicums in companies and obtain in this way

the certificate of professional standards. In the year 2017

one student coming from the course “Forklift and

warehouse operator” was accepted.

Collaboration agreement with the Centro de Training

AMC S.L. for realizing the non-labour professional

practicums for the obtaining of the Certificate of

Professional Standards: "Design of moulds and models for

casting and forging” in collaboration with the Cantabrian

Employment Service of the Government of Cantabria.

One student coming from this centre was accepted.

Collaboration agreement with the centre Aula Dédalo,

Latitud 43 S. L. U. for the realization of professional

non-labour practicums with the goal of obtaining the

Certificate of Professional Standards: “Commercial and

financial management of road transport” in collaboration

with the Cantabrian Employment Service of the

Government of Cantabria. In the year 2017 one student

coming from this centre was chosen.

Collaboration agreement with the Valle de Camargo

Secondary Education Institute to promote

entrepreneurial attitudes and facilitate employability

among youths who study Secondary Education (Start

Innova Project). Ensa’s contribution has consisted of

participating actively in education promotion projects so

that young students have knowledge of the reality of the

company and assimilate the spirit of entrepreneurialism

and innovation.

Collaboration with different educational centres of the

region in the realization of guided visits to Ensa.

Collaboration with the Universidad de Cantabria in the

contest called “Cantabria the Contest of Crystallization in

the School”. Ensa’s participation has consisted of

supporting this initiative of Science in which nearly 500

students coming from 25 centres throughout the region

participated.

As in previous years, the company has continued

carrying out “Social Programs and Solidarity Projects” of

a marked social character:

Periodic blood drives that are carried out in the factory

in collaboration with the Brotherhood of Blood Donors of

Cantabria (in the year 2017 two drives were carried out

in which 62 donors participated: 9 women and 53 men).

After adhesion to the program “Solidarity in Companies”,

promoted by the Spanish Association Against Cancer

(AECC), we tried to make the staff aware of the

importance of the cancer prevention. To do this, during

the year 2017 awareness campaigns have been

disseminated with messages of cancer awareness and

prevention.

Campaign for the collection and later recycling of plastic

lids whose economic amount is destined to a social cause

(contribution in the year 2017: 115 kg with the

accumulated collection from the time we began to collect

them in the year 2013 of 812 kg).

A system has been defined for the donation of all the

discarded material by the company that can be reused by

NGOs, special employment centres, associations, etc.,

with social purposes. After defining this system, a

donation of computer equipment was made to the

special employment centre “AMICA” and to the

Fundación Obra San Martin dedicated to the

occupational centre “La Semilla”.

Furthermore, the awareness campaign of the staff has

continued with regard to current social subjects,

publishing campaigns in this respect on the factory

screen: diffusion of the campaign: “A nice gesture for

Christmas” consisting of making workers aware of the

donation of toys and/or clothing through the “Princesa

Letizia” collection centre as a way to help the most

unfortunate persons of the region, a large collection of

food organized by the Cantabrian Food Bank, ....

e) Action to ensure Responsible Business Conduct During the financial year 2017, Ensa has continued dedicating special attention to business actions and good practices through the following means: • Internal Audit Statute and Annual Audit Plan for

the Group of Companies, supervised by the Internal Audit Division, and approved and ratified by the Management Committees and Boards of Directors of the companies.

• Audit Commissions in the midst of the Boards of Directors of the companies.

• Code of Business Conduct for the companies, supervised and approved by the Management Organizations and Boards of the Group.

• Corporate Bylaws according to the regulations in force on the subject of companies.

• Internal Regulations of the Board of Directors of the companies of the Group formulated and supervised by the internal legal advisement body of the companies and by their respective Boards of Directors.

• Crime Prevention Plan of the Ensa Group in which the directives of punishable behaviours are defined, so that they may be helpful in making employees as well as managers know and be able to comply with the applicable regulations, as well as knowing how to identify and correct, where applicable, any behaviour that they consider to be against the principles of the Plan. The Crime Prevention Plan imposes certain obligations on Ensa’s employees, which must be followed along with those established in the Code of Business Conduct.

During the year 2017 the training was completed of all of the staff in the “Crime Prevention Plan of the Ensa Group”.

Environment

The protection of the environment is one of the main

guiding principles of the Ensa Group’s business actions.

Therefore, the company has a system of rules and

procedures of environmental management to identify

and minimize the different environmental risks and the

potential impacts that its activity may cause on the very

singular setting in which the factory is located.

The Group is committed to the technological

development and innovation also in the subject of the

environment, seeking an effective and sustainable use of

resources and a minimization of generated waste.

These concepts are always present in the new

developments but also the technological improvement of

the existing processes is sought.

Along this line, Ensa focusses its efforts in four areas: • IMPROVEMENT OF PROCESSES FOR THE

REDUCTION OF GENERATED WASTE, favouring reutilization so that the consumption of materials used is reduced and the amount of generated waste is minimized. Currently we are working on the optimization of waste recovery, of that from which income is obtained from their sale as raw materials.

• STUDIES ON THE SUBSTITUTION OF HAZARDOUS MATERIALS for use by others, with less hazardous or more efficient materials, in compliance with the European regulation on hazardous substances.

• REDUCTION OF ENERGY CONSUMPTION through the application of rational protocols on the use of equipment and the design of preventive maintenance programs of the installations where large consumption of energy is produced. In recent years, important investments have been made in the substitution of the lighting in productive areas and outside, by low-consumption technologies, with this being one of the large electrical energy consumers of our activity.

• IMPROVEMENT IN THE QUALITY OF DISCHARGES, especially those that are dumped to the sea. Waste water is not dumped to the sea, only rainwater, but the rainwater can carry dust and contaminants present in the soil. To avoid these contaminants being carried to the sea, rainwater purification systems have been installed and exhaustive controls are performed.

•

The most significant systems, equipment and installations that the Group has dedicated to environmental activities are: warehouses of hazardous products, waste facilities and environmental management equipment with an accounting value of 828 thousand euros and an accumulated amortization of 501 thousand euros. In December, the follow-up Audit was successfully passed of the certification of the Environmental Management System implemented in Ensa, and the transition to the new version of the UNE-EN ISO 14001:2015 standard was performed. In the year 2017 a total of 65 tons of hazardous waste was generated compared to the 173 tons generated in 2016. However, in 2016 a significant amount of waste was generated due to extraordinary and sporadic operations. If we consider only the waste generated regularly, they have been reduced by approximately 10%.

As for non-hazardous waste, 492 tons were generated, compared to the 428 tons generated in 2016. A larger quantity of waste from pruning and mowing, cause by the increase in hours of sunlight, especially in the winter months, was generated.

A significant increase was produced in the generation of recoverable metallic waste, those generated in the mechanized processes (chips) and the scrap coming from cutting or scrapping of obsolete tools. The system of gathering and separation of metallic waste has been improved to optimize its value. Of the total waste generated, 83% has been dedicated to recycling or recovery.

The environmental preventive maintenance plan has been carried out as usual, focussing efforts on actions in two areas: the cleansing and purification of waste water and rainwater, and the treatment systems of the polluting emissions to the atmosphere. In the regulatory inspections carried out by control organizations, no non-compliance was detected of the regulatory limits in the parameters of emission to the atmosphere or dumping to the sea. Moreover, in 2017 a system was implemented to control pests, specifically pigeons and cats that were causing a problem of cleanliness and hygiene in the installations. Due to the fact that we are in a delicate natural setting, in an area of importance for birds and near a protected space, we opt for a natural system such as falconry, whose environmental impact is nil. For these actions, an organization for the protection of animals has collaborated. In the subject of communication and dissemination, we have participated in the sessions organized by the Business Forums on Sustainable Development and Energy, of which we are members, in the panel on the Cantabrian strategy against climate change and in the workshops on Nature and Environment organized by the Civil Guard. In addition, actions have been initiated for the substitution of substances used in certain productive processes by other more environment-friendly processes.

The expenses in environmental activities of the Ensa Group of the financial year 2017 were 193 thousand euros, compared to 224 thousand euros in 2016. From the sale of scrap metal and chips for their recovery, revenue of 84 thousand euros was obtained, which absorbs nearly 50% of the total environmental costs. Furthermore, in February 2017, the concession was achieved of a partial exemption from the energy tax, which has supposed a savings in the electric bill of 13 thousand euros. Since the year 2001, Ensa has a building for the storage of hazardous products. The investment made was 173 thousand euros and for the realization of this investment, a subsidy was received from the Autonomous Region of Cantabria of 61 thousand euros. To date, the investment is completely amortized and the capital subsidy fully attributed to results.

COMMUNICATION PLAN The companies have defined a Communication Plan with an internal and external character. The purpose of the internal communication is to keep the entire staff informed on the different matters, which can be of interest to the collective from the business and labour perspective, covering areas such as: order portfolio, special benchmarks reached by the different areas of the company, labour, research, relationships in collaborations, etc. The external communication has as its objective the strengthening of the company’s image in our sector, coinciding mainly with benchmarks existing regarding our orders, technological milestones and on development of research activities. The entire plan and process is an active element that is permanently being reviewed..

RISK PLAN The Company has a Corporate Risk Management Procedure that describes how to manage risks that, from a corporate point of view, may affect the business performance and activity of the Company. It is a procedure that involves all the levels of the company organization, clearly defines the responsibilities and establishes the process of Corporate Risk Management that includes the identification, analysis, treatment and action on the risks. A risk map has been defined that includes a variety of aspects (strategic, operative, financial, compliance, fortuitous events, environmental) and a plan to minimize the most important risks, which are reviewed periodically to keep them up to date.

PLAN DE BUEN GOBIERNO (PLAN DE COMPLIANCE) La empresa dentro de su objetivo de buen gobierno corporativo, viene implantando y desarrollando una serie de actuaciones que conforman el Plan de buen Gobierno de Ensa. Algunas de las principales herramientas que comprenden este Plan han sido descritas en los apartados anteriores: • Formación en Buenas Prácticas. Plan Hup. • Compromiso en la seguridad y salud de las personas.

Ver apartado d) OHSAS.18001:2007. • Formación en prevención de Riesgos Laborales. Plan

cero accidentes. • Programa de contribución al desarrollo sostenible:

Plan de Medio Ambiente. Ver apartado d) y f). • Plan para potenciar la igualdad del trato y

oportunidades. Ver apartado d-1). • Garantizar la Conducta Empresarial Responsable. Ver

apartado e). • Desarrollo del Plan de Riesgos empresariales. • Desarrollo del Plan de Trasparecía Corporativa. • Desarrollo del Plan de Prevención de Delitos. • Desarrollo del Plan de Auditoría y Control Interno.

Entendemos que este programa de actuaciones, trata de garantizar los aspectos prácticos de compliance y favorecer el objetivo del buen gobierno corporativo. Garantizar una conducta empresarial ética y responsable. Todas estas actuaciones, algunas implantadas desde hace varios años, están en todo momento evolucionando con los requisitos que la legalidad, la sociedad y el mercado solicitan.

GOOD GOVERNANCE PLAN (COMPLIANCE PLAN) The company, within its objective of good corporate governance, has been implementing and developing a series of actions that make up Ensa’s Good Governance Plan. Some of the main tools that make up this Plan were described in the previous sections: • Training in Good Practices. HuP Plan • Commitment to persons’ safety and health. See

section d) OHSAS 18001:2007 • Training in Occupational Risk Prevention. Zero

Accidents Plan • Program of contribution to sustainable

development • Environmental Plan. See sections d) and f) • Plan to strengthen equality of treatment and

opportunities. See section d-1) • Guarantee Responsible Business Conduct. See

section e) • Development of the Business Risk Plan. • Development of the Corporate Transparency Plan • Development of the Crime Prevention Plan • Development of the Audit and Internal Control

Plan.

We understand that this program of actions tries to guarantee the practical aspects of compliance and favours the objective of good corporate governance. Guaranteeing an ethical and responsible business conduct. All these actions, some having been implemented for several years, are at all times evolving with the requirements that the law, the society and the market require.

BALANCE SHEETS AS AT DECEMBER 2017

BALANCE SHEETS AS AT DECEMBER 2017

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2017

CONSOLIDATED BALANCE SHEETS AS AT DECEMBER 2017

CONSOLIDATED BALANCE SHEETS AS AT DECEMBER 2017

CONSOLIDATED PROFIT AND LOSS

ACCOUNT FOR THE YEAR ENDED 31

DECEMBER 2017