President´s letter

Dear readers,

It is my pleasure to welcome you to the X-ELIO Sustainability Report, setting out our commitment to provide a complete account of the most relevant and notable information from 2015.

In order to present our economic, social and environmental performance, we have taken into consideration the guidelines established in the Global Reporting Initiative, the information having been externally reviewed by an independent body. This year we likewise renewed our support for and adhesion to the United Nations Global Compact.

The focus of this new reporting framework, and hence the report itself, essentially addresses the demands of stakeholders and those aspects that are material for X-ELIO, allowing us to develop and integrate our vision and management as regards these aspects.

During the year, we attained a figure of 278.35 MW of solar power in operation with the commissioning of 3 new facilities: 2 in Japan and 1 in Honduras. We likewise contributed to combating climate change through the generation of more than 1,352,377 GJ of renewable energy, avoiding the emission of 160,925 tonnes of CO2 into the atmosphere.

This year 2015 has been a year of substantial changes caused largely by the acquisition by the KKR Group of an 80% stake in the company through its subsidiary Aurora Energy Holding, S.L. This entailed a change in branding, to the name of X-Elio Energy, S.L. (hereinafter, X-ELIO). It also involved organisational changes with the aim of working more efficiently and obtaining even more successful results. We likewise continue to strive to provide safe working environments, in which risk prevention is the key to avoiding accidents.

In 2015 it has established an internal Compliance Office. This office is responsible for defining and communicating the ethical framework employed to achieve honest and transparent dealings in accordance with the undertakings given, and to establish consultation and whistleblowing mechanisms, while investigating and responding to the issues raised. Within its functions, it also advises and informs the company as to potential risks associated with operations in the different countries where it does business and partnerships which may arise, helping us in our decision-making and risk management.

X-ELIO is involved in the socio-economic development of the regions where it operates, generating shared value in local communities through dialogue, the promotion of training and support for local culture. One clear example would be the initiatives undertaken at the Honduras facility, where through various local authorities and dialogue with communities, we contribute to the creation of a sustainable business fabric, by means of local job creation and training projects.

If there is one thing that makes our Company stand out it is the development of sustainable, profitable and efficient projects that generate value for all our stakeholders. This would not be possible without the commitment of all those who are involved and who trust in the development of our projects.

I do hope that reading this report will arouse your interest and fulfil your expectations.

-Jon Riberas


CEO letter

X-ELIO is a company founded in 2005, a leader in the development of renewable energy, with a long track record in the solar sector. It specialises in the development, construction, operation and maintenance of solar power plants in North America, the Middle East, Asia, Africa, Latin America and Europe.

2015 was a year of change for X-ELIO. In July, an initial agreement was reached with the KKR Group, a financial investor, to acquire 80% of the company. The agreement was formalised in December.

Through the acquisition by KKR, we now form a part of a major investment fund, with substantial financial resources and sound capital. This allow us to fund the development and construction costs of new facilities, and to acquire others from third parties.

Following the agreement, the company was rebranded X-ELIO. The idea behind the name comes from ‘Ex’, meaning ‘out of’ or ‘from’, and ‘Helios’, the God representing the sun in Greek mythology. The brand celebrates the history of the company and reflects its ambition to be a global leader in the industry, with solid financial performance, as a sustainable provider of renewable energy, helping to reduce greenhouse gas emissions and fight against climate change.

X-ELIO continues to grow in accordance with a responsible business model, based on a sector in which we truly believe: renewable energy as an inexhaustible supply of power.

The forecasts for the future indicate ever-increasing energy consumption, and the global demand for renewable energy generation is therefore expected to grow by 45% by 2020, while by 2050 solar energy will have become the greatest source of electricity worldwide.

This trend has been underpinned by the staging of the 21st United Nations Climate Change Summit (COP 21), which, through the emissions reduction targets, helps to strengthen the use of clean energies.

This combination of substantial support for green energy policies promoted by governments, cost reductions, profitability aligned with risk and increasingly competitive technology, indicates an attractive future for development and investment in the field of renewables.

In 2015 we had a presence in 8 countries, attaining a figure of 278.35 MW of photovoltaic energy in operation, with projects under development in such countries as Japan, Mexico, Peru, Chile, South Africa, Egypt and the UK. The forecast for next year is to install 250 additional megawatts in Mexico and Japan.

The medium and long-term strategy are to promote the leading position of X-ELIO, consolidate the various opportunities for growth and to continue expanding its market presence. This will allow us to minimise the portfolio risk through a stable and diverse profile, examining initiatives to optimise funding through both shareholder equity and project finance, in order ultimately to obtain a strong balance sheet, all this focused on the creation of value for the various stakeholders.

In 2015, although it was a challenging year, we obtained a positive bottom line in terms of economic results, despite such circumstances as the devaluation of the South African currency and the performance of the plant in Peru, which was below expectations, while competitive tender projects were also not won in, for example, South Africa.

Within this context, we expect to continue achieving sustainable growth in countries that offer opportunities of profitability and regulatory stability, encouraging the development of competitive renewable energy projects. As I reflect on our development over the past decade, I am convinced that a successful future and new projects awaits us at X-ELIO.

This would not be possible without our greatest asset: the professionals who make up X-ELIO, as we understand that it is only through teamwork that we can offer quality, long term profitable solutions, fulfilling all legal requirements and creating value in the context in which we operate.

I invite you to discover our operations and our results for 2015 by reading this report.

Warm regards,

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Part I:General Standard disclosures

At X-ELIO we believe that companies must go beyond mere legal compliance, and so become ethical flagships through the decisions taken by their members, achieving the highest standards of quality, safety, health and respect for the environment.

  • Strategy and analysis
  • Organizational profile
  • Identified material aspects and boundaries
  • Stakeholders' engagement
  • Report profile
  • Governance
  • Ethics and integrity

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Part II: Specific Standard Disclosures

X-ELIO continues to progress towards the objective of increasing its international presence in creating value in those communities where it sets up in business. This is possible thanks to a positive balance sheet and appropriate financing.

  • Economic Dimension
  • Social Dimension
  • Environmental Dimension

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Part III: Annex

  • Independent Review Report
  • GRI G4 Content Index
  • Content related to the Principles of the UN Global Compact
  • Scope considered for the elaboration of this Sustainability Report