OHL Developments. OHL Developments. Picture of the Mayakoba resort (Mexico). 342 Annual Report 2014 of the OHL Group

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1 OHL Developments The division was created in 2001 for the purpose of identifying strategic opportunities for diversification by the OHL Group in the tourism, real estate and hotel sector. B 5 Thanks to the experience and know-how acquired in the Mayakoba and Canalejas projects, has become consolidated as a global international developer of top-level projects. Picture of the Mayakoba resort (Mexico). 342 Annual Report 2014 of the OHL Group

2 Business performance in 2014 ended the 2014 financial year with several significant milestones in relation to its activity and the three projects being carried out by this division in the tourism and hotel sector: Mayakoba and Ciudad Mayakoba, in Mexico s Riviera Maya, Centro Canalejas Madrid and the Old War Office, in London. The Mayakoba resort The resort sector is one of the most significant markets in expansion on a world scale. In some regions, particularly in areas of Latin America and Asia, a considerable increase in tourism is being observed, especially luxury tourism. Accordingly, in 2014, the growth of Mexico s tourism industry has become consolidated, notably in Riviera Maya, where has undertaken the development of the Mayakoba tourism complex. This resort -the seed that germinated into the division and one of the most exclusive in the world- has not been an exception to this positive trend in the sector. In 2014, the resort obtained a weighted average occupancy of 60.2% in its three hotels, improving upon the 57.8% figure for the 2013 financial year, and raised its average daily rate per room by 15.1%, to 458 dollars, and the ratio of revenues per available room by 19.6 %, to 275 dollars. These ratios have enabled the Mayakoba complex to increase its recurring revenues from 98.8 to million dollars, representing an increase of 13.7%. At a distance of 10 km from Playa del Carmen, Mayakoba has three 5-star ultra-luxury hotels in operation: the Fairmont (401 rooms), the Rosewood (128 rooms) and the Banyan Tree (132 rooms), in addition to the El Camaleón golf course, designed by Greg Norman, which has made history by ranking as the first golf course to host an official tournament on the PGA Tour outside of the United States and Canada. Two new hotels will complete the first phase of this complex, one of which is an Andaz hotel (Hyatt lifestyle brand), started at the end of Ciudad Mayakoba Ciudad Mayakoba comprises the second phase of the Mayakoba project. This phase involves the development of 409 ha of land, divided into three areas for accommodating three different real estate products geared to specific market segments and their demand: the residential area, Parques de Mayakoba, with 221 ha; the Mayakoba Country Club area, 165 ha, and the Village, 23 ha. The approvals and permits for the development of this phase were obtained during 2014, and the initial projects have already been formalized and are underway. Ciudad Mayakoba will set a precedent in the real estate development in Mexico, being planned full-premise sustainability. Centro Canalejas Madrid Mayakoba has three 5-star ultra-luxury hotels in operation: the Fairmont, the Rosewood and the Banyan Tree. Two new hotels will complete the first phase of this complex, one of which is an Andaz hotel (Hyatt lifestyle brand), started at the end of Centro Canalejas Madrid, with an investment of close to 500 million euros, will deliver a revulsive boost to tourism in the city of Madrid. The project will recover an example of the rich historical and cultural heritage of Madrid in the city s nerve center and will enhance the value of the tourism-shopping axis extending from Plaza de Cibeles, through Puerta del Sol and on to the Royal Palace. In line with OHL s commitment to heritage preservation, the elements of heritage value of the seven buildings included in the project have been removed, restored and classified. Centro Canalejas Madrid will include the first Four Seasons hotel in Spain a 5-star ultra-luxury hotel, residences operated by the hotel and an exclusive shopping area. Plans are for the complex to be fully operational in Sustainability Report Five divisions, five visions of sustainability 343

3 Old War Office In December 2014, the opportunity arose for the Old War Office project in London, in which, forming a consortium with the Indian group Hinduja, acquired a long-term lease on the building. Located at 57 Whitehall, this landmark building, the emblematic headquarters in its day of the British War Ministry and, therefore, of Sir Winston Churchill s offices, will be restored and renovated for accommodating a five-star hotel and residential units, and will also have a number of meeting rooms for private uses, together with a spa and a gymnasium. -Position Development of unique mixed use and top quality projects, operated by the foremost hotel chains worldwide. Expansion and business development strategy in the international market, capitalizing on the experience and the know how acquired in Mayakoba and Canalejas as a global developer of top level projects. Markets America: Mexico Europe: Spain and the United Kingdom Milestones of the year The Mayakoba project has continued its consolidation as a world reference for luxury tourism in Riviera Maya: The development of the Andaz hotel (Hyatt Group) continued to advance. The three hotels in operation have obtained, yet another year, the AAA Five Diamond Award, the maximum rating given by the American Automobile Association (AAA). Three special purpose entities were formalized with co-investors and co-developers, and one of the projects has commenced in Ciudad Mayakoba. Centro Canalejas Madrid has moved ahead on schedule, having reached the following milestones: Finalization of the planning phase. Obtaining of the permit and the demolition of interiors and reinforcement of the façades of the buildings. Signature of the management contracts with Four Seasons. Close of the financing for the project. In the month of December,, in a consortium with the Indian group Hinduja, obtained a long-term lease on the Old War Office building, in London, the site in its day of Sir Winston Churchill s offices. 344 Annual Report 2014 of the OHL Group

4 Noted CSR practices MAYAKOBA RESORT. MEXICO Economic, social and environmental balance Project Data Name of project Location Start year 1998 Surface area Phase 1: Mayakoba Resort (Operation and construction) Phase 2: Ciudad Mayakoba (Design and construction) No. employees in 2014 Mayakoba Resort Riviera Maya (Mexico) 649 ha Fairmont Mayakoba Hotel Rosewood Mayakoba Hotel Banyan Tree Mayakoba Hotel El Camaleón Golf Course Residential in low, medium and high density. Shopping center Parks Fitting-out Golf Course 1,759 Mayakoba, resort The part of the Mayakoba project dedicated to the resort occupies a land surface of considerable ecological value, in which there are several ecosystems with a fragile equilibrium and a great diversity of plant and animal life. A natural heritage which the OHL Group has always striven to preserve. The Mayakoba Environmental Management System was created in order to monitor compliance with the Group s environmental obligations with respect to the resort s immediate environment, to develop best practices that will make it possible to enhance the natural resources and to carry out community involvement actions furthering integration into the community. Eight programs and twenty four sub-programs comprise the environmental management system. The Sustainable Development Department of coordinates the environment and social responsibility managers of the Fairmont, Banyan Tree and Rosewood hotels, who are supported by an environmental team in order to implement the management system and, in this way, to reach the compliance goals set in the relevant environmental legislation and certification requirements. The vacation complex is a source of wealth for the area thanks to the generation of an annual average of 1,700 direct and 4,250 indirect jobs, and to the thrust of a range of initiatives that stimulate the local economy and social development. Quarterly audits are performed according to the assessment criteria of PROFEPA and the Rainforest Alliance Global Sustainability Criteria. The Tourism Environmental Quality Certification, granted in 2013 by the Federal Attorney Generalship of Environmental Protection (PROFEPA) demonstrates Sustainability Report Five divisions, five visions of sustainability 345

5 El Camaleón golf course. the high level of compliance with Mexico s environmental legislation, and represents the maximum recognition granted by the Mexican Government in environmental terms. The re-certification process was initiated during 2014 and will be consolidated in Since 2006, the El Camaleón Mayakoba golf course has also qualified for Audubon certification in recognition of its sustainable practices, in addition to being considered a nature sanctuary. In 2011, the World Tourism Organization granted the Ulysses Award in the category of Innovation in Enterprises, and the Rainforest Alliance, a member of the Global Sustainable Tourism Council (GSTC), the Sustainable Standard-Setter Award for surpassing 75% of compliance with the standards for sustainable tourism, ranking as the first tourist destination where three hotels have achieved this level of compliance. These are the three top distinctions that are granted by these prestigious institutions. Together with these international recognitions, the Fairmont and Rosewood hotels, and recently the Banyan Tree, renewed their Five Diamond Award from the American Automobile Association (AAA) in 2013 and merited a multitude of awards granted by sector specific organizations and the specialized media, recognizing the high quality and level of exclusivity offered by these establishments. Environmental Management System Milestones in 2014 Integrated Fauna Management Program Integrated Vegetation Management Program This program guarantees that the animal species inhabiting the various Mayakoba ecosystems are not affected by tourism activities. It promotes a positive interaction between people and fauna through measures such as: continuous monitoring, the control of wildlife and of fauna with significant health implications through sustainable resources, as well as the rescue and veterinary care of animals requiring this attention, the preservation of their habitats, among other actions. 19 sea turtle nests protected. 87 specimens of wildlife rescued and relocated. 87 species of migratory birds present. 36% of the Quintana Roo fauna represented in Mayakoba. This program responds to the needs for maintaining the vegetation of the land in good condition during the different stages of the project. This is achieved by means of strategies such as: rescue and maintenance of plants, the proper use of agrochemicals, use of plants from the region or approved plants, watering with treated water, continuous monitoring, management of conservation areas and sustainable maintenance of the green and landscaped areas. 35% of Mayakoba consists of conservation and protected areas. 287,510 m 3 of water processed in the treatment plant, used for watering the golf course. 2,500 plants used for reforestation, landscaping and maintenance of conservation areas. 60 hectares of conservation of mangroves that are under continuous sustainable maintenance. 346 Annual Report 2014 of the OHL Group

6 Integrated Waste Management Program Environmental Supervision Program The purpose of the program is to ensure that the liquid, solid and hazardous waste generated by the range of activities carried out at Mayakoba is managed properly, in accordance with current legislation. For this purpose, agreements are signed with companies approved for the collection of separated, organic and hazardous waste for proper final disposal. The program also includes alternatives for waste reduction, sorting, collection, recovery and reuse. 118,052 Kg of recyclable solid waste generated in the hotels and sent to approved management companies. 2,930 Kg of hazardous waste managed. 189,726 kg of organic waste used for compost or swine farms. The purpose of the program is to maintain the hydraulic functionality of the lakes and canals by means of the monitoring of the water quality, the removal of objects that hinder or block their flow, the control of aquatic vegetation, extraction of sediment deposited on the bed, preventing pollution and maintaining constant surveillance to ensure the proper use of the lake system and avoid contingencies of all kinds. Maintenance of the Profepa certification. The distinctive S of Mexico s Tourism Secretariat is maintained, in coordination with Earthcheck. Environmental Dissemination Program Integrated Lake and Canal Management Program This program was implemented for informing, training and raising the awareness of all of the players in Mayakoba with respect to the ecological and economic value implicit in the conservation of natural resources. Through graphic and printed materials and talks, information is provided on the actions being taken in the project both for the preservation of the resources as well as for disseminating the environmental legislation applicable. 487 employees attended talks and environmental training. 19 releases of turtles (2,057 hatchlings) with the support of employees and tourists 3,055 ecotours in electric boats for resort guests and stakeholders. The purpose of the program is to maintain the hydraulic functionality of the lakes and canals by means of the monitoring of the water quality, the removal of objects that hinder or block their flow, the control of aquatic vegetation, extraction of sediment deposited on the bed, preventing pollution and maintaining constant surveillance to ensure the proper use of the lake system and avoid contingencies of all kinds. 3 water quality monitoring processes. 1,825 rounds of the lake system for the control of aquatic vegetation. Safety and Attention to Environmental Contingencies Program The role of the program is to prevent and confront the environmental contingencies derived mainly from meteorological phenomena, forest fires and hydrocarbon spills. The program maintains a preventive information channel focused on hurricanes or storms threatening the Mexican Caribbean for the protection of people and infrastructures. Social and Cultural Responsibility Program The purpose of the program is to support underprivileged communities and vulnerable individuals, by participating in and promoting charitable and sponsorship activities with the local communities. The program also promotes small producers and artisans by marketing and distributing their products and works of art, in addition to providing training to families in a trade as a source of income. Six emergency situation drills, such as for chemical spills, fires in buildings and water rescues. 85,065 euros invested in a range of initiatives. Three Mayan communities benefited directly. Sustainability Report Five divisions, five visions of sustainability 347

7 Key projects and initiatives in 2014 Community involvement at the Fairmont Hotel In 2014 the Fairmont Hotel merged the Sustainability Team and the My Community Committee, entrusted with approving and implementing environmental and social best practices. The following stand out among the social initiatives undertaken during the past year by this new body: Campaign to assist Mayan communities Communities benefited Dzula Laguna Kan Yoactun Items donated by the Fairmont Mayakoba Hotel 150 cushions 150 bath towels 30 bath mats 15 comforters 60 robes 16 bags of toilet paper 18 bags of slippers 5 bags of amenities (cream) 3 playpens Participation in the campaign of the Riviera Maya Hotel Association for assisting the most vulnerable communities, benefiting 100 families in the Municipality of Felipe Carrillo Puerto. Support to people affected by Hurricane Odile in Baja California (Mexico) Collection and donation of food for people affected by the hurricane. A total of 542 kg were collected. Collection and donation of basic foodstuffs to the Yoliguani Foundation Collection of foodstuffs (rice and beans, mainly) and donation to the Yoliguani Foundation, which provides shelter and assistance to helpless pregnant women to facilitate the future of their children. Community cleanups Collection of approximately 650 kg of waste, the large majority trash and plastics. The Fairmont team with the foodstuffs collected for the people affected by Hurricane Odile. Ciudad Mayakoba, a sustainable residential community Ciudad Mayakoba is comprised by infrastructures and services for a maximum of 17,000 dwellings, ensuring respect for the environment by means of the inclusion of biological corridors. It has a total surface area of 409 ha, of which 68% will be used for development and 32% for conservation, with an investment estimated at 1,000 million dollars. 348 Annual Report 2014 of the OHL Group

8 Ciudad Mayakoba began in 2014 with the infrastructure construction for the first residential project, designed for middle-income housing and called Residencial Senderos de Mayakoba, to include a total of 2,600 dwellings. The procedures were initiated for a second project for the construction of 3,600 social housing units. With these two projects, the goal of providing the employees of the Mayakoba hotels the opportunity of accessing affordable decent housing within a sustainable environment will become a reality. Ciudad Mayakoba has been conceived for becoming the first sustainable residential community in Riviera Maya. The efforts in sustainability in developing the project are set within the following guidelines: Alignment with Mexico s national housing plan to overcome the housing shortage problem in communities with exponential growth such as Playa del Carmen. Integration of the fit-out necessary to ensure that services, such as health, education, sports and culture, are available to families and that they can access such services by walking or by bicycle in order to minimize the use of cars. Creation of the first municipal public park with an extension of 10 ha, to include areas for sports and social and cultural leisure activities in an environment of forest conservation. Minimization of the visual impact of the constructions, within a concept of tree-lined streets in vegetation conservation areas and the generation of green boulevards. Maintenance of the environmental quality of the development, by means of the creation of biological corridors to facilitate the permanence of the native fauna. Guarantee of compliance with and observance of the criteria and parameters of sustainability established in the design for the conservation of the forest ecosystem by the partners and subcontractors. Implementation of an environmental management system comprised by 8 programs for the care of the vegetation, fauna, waste, environmental contingencies, dissemination of environmental requirements, control of the water of the cenotes (sinkholes) and karst structures and the social and cultural aspects of the neighboring communities. Ciudad Mayakoba has been conceived as the first sustainable residential community in Riviera Maya. Sustainability Report Five divisions, five visions of sustainability 349

9 CANALEJAS PROJECT. SPAIN A project for Madrid Name of project Location Customer Start year 2014 Project Data Centro Canalejas Madrid Madrid (Spain) Villar Mir Group Budget 500 million Total surface area Contractor 50,000 m² OHL Construction Value Generation Rehabilitation of seven historic buildings in the center of Madrid. Economic, commercial and tourism stimulus, and the creation of 4,800 jobs. Reorganization of public space. More space for pedestrians and lesser noise impact. Sustainable construction, with Leed Gold certification. Spain s first Four Seasons hotel. Reinforcement of Madrid s position as a venue for international events. The Canalejas Project consists of the rehabilitation of a group of seven adjacent buildings located between Alcalá Street, Sevilla Street, Plaza de Canalejas and Carrera de San Jerónimo, which had been vacant for more than ten years. The start-up of the Canalejas Project signifies the definitive repositioning of the city center of Madrid as a quality tourist destination. These buildings stand out for their architectural value and uniqueness, and for their privileged location in the historic center of the city, a few meters away from the Puerta del Sol plaza. A note of interest is that, during the most recent decades, the buildings served as the headquarters of financial institutions such as Banesto, Central Hispano and Zaragozano. Reopening these buildings will give rise to a positive impact for the city and its citizens, since it will generate a significant number of direct and indirect jobs close to 3,000 permanent positions, 1,000 direct and 2,000 indirect, once the complex is operational, and 1,800 temporary jobs- in addition to the spill-over effects, as considerable movement to invest in this part of the city is becoming apparent with the formalization of real estate transactions in the immediate area surrounding the project. Centro Canalejas Madrid will also involve an undeniable need for reorganizing the public space, public transportation and the vehicle traffic in the area, which will translate into an improvement for local residents, as they will be able to enjoy more pedestrian space, with less noise and a much improved image of their immediate urban landscape. 350 Annual Report 2014 of the OHL Group

10 With respect to the execution of the project itself, two very important challenges must be met: the removal, classification and restoration of all of the landmark elements of the buildings and the effective management of the waste generated. In the context of the recovery work at Centro Canalejas Madrid, stained glass windows, ornate bars on windows, plaster moldings, elements in stone and the like were removed and are being restored for later use, with more than 130 references cataloged. A large number of professionals and artisans associated with the traditional trades in the fields of construction, glass, wood, stone, among others, are contributing to the preservation and enhancement of the ornamental elements for subsequently incorporating them into the decoration of the building. The management of all of the waste is being performed according to a plan approved by the Autonomous Community of Madrid, with specific treatment for the considerable amount of inert waste (plaster, brick) and the recycling and reuse of materials such as copper, glass, aluminum, wiring and plastics. More than 10,000 tons of waste were generated in the demolition of the parts of the building to be rebuilt, 30 of which were identified as hazardous. All of these wastes have been managed in accordance with current regulations, preventing adverse environmental impacts. From the point of view of sustainability, the project is subject to the new Building Act and will also obtain energy efficiency certification for the entire building: Leed Gold (U.S. Green Building Council). Although, due to its characteristics and level of heritage protection, solar panels cannot be installed, the complex will have all of the elements that enable savings and energy efficiency: Led lighting, control of the air quality, temperature control and a maximum level of thermal insulation. In terms of aids to mobility at Centro Canalejas Madrid, there will be charging points for electric cars in the parking garage and the possibility of parking bicycles and motorcycles. Preliminary recreation of Centro Canalejas Madrid. Sustainability Report Five divisions, five visions of sustainability 351