INERCO turnover grows 40% in

INERCO INCREASES ITS TURNOVER BY 40% IN 2014, INVOICING 50.8 MILLION EUROS

INERCO ended 2014 with its turnover up 40% on the previous year, translated into income of 50.8 million euros (36.4 million in 2013) and a gross operating profit (Ebitda) of 3.6 million euros. These figures are the result of the group’s growth in Spain and abroad. This year, INERCO reinforced its international development strategy, establishing itself in Brazil, Mexico and Portugal, incorporating the old ITSEMAP (MAPFRE) subsidiaries in those countries into the group in July 2014. INERCO has therefore continued to consolidate its position as a technological engineering firm on the international stage, growing in the countries where it has a presence and projecting itself into markets such as Canada and Turkey.

The INERCO Group is made up of 17 technology companies specialising in the fields of engineering, energy optimisation, emissions monitoring, industrial waste water treatment, noise and vibration control and consultancy on the environment, workplace risk prevention and industrial safety. At the end of 2014, the Group’s payroll reached 420 employees, “20% up from last year; this figure demonstrates INERCO’s principle of being committed to our highly qualified team,” says José González, the company’s chief executive.

In the last year, INERCO has maintained its R&D+i investment, to which it allocated 2 million euros. This fundamental commitment to innovation was validated with the creation of a specialised directorate in the company to coordinate INERCO Group companies’ existing R&D+i capacities and to incentivise new, competitive technologies. Both cornerstones of INERCO’s strategy, its qualified staff and innovation, are advantages that set the company apart from the competition. According to José González, these “enable us to be a leading company in Spain and to continue our international expansion, thanks to the effort and commitment of all the people that make up INERCO.” In accordance with its priorities, INERCO allocates a very significant proportion of its budgets and earnings to compensating effort and encouraging the professional development of the people who make up the company.

The INERCO Group’s future prospects rely on consolidating the process of internationalisation, specifically in Latin America and particularly in the three countries where it has newly established itself. In addition to all this is INERCO’s extensive international experience, with projects in over 50 countries on four continents. In terms of technological progress, the Group continues to equip itself with innovative technology (through proprietary development, partnerships or external purchase) in the areas of renewable energy, environmental technology, safety and risk prevention.

INERCO aims on the one hand, to be a leading provider of comprehensive engineering services in industry, and on the other, to become a leading firm in the development of energy and environmental technology and the provision of specialised environmental, industrial safety and risk prevention technical services.

INERCO’S MAIN PROJECTS IN 2014

ENGINEERING

INERCO has for another year occupied an important position in the energy, oil&gas and chemicals sectors. In the field of industrial engineering, it carried out projects including those to modernise and improve energy efficiency at CEPSA’s industrial complexes in Campo de Gibraltar (HDS IV) and Huelva (vacuum unit 2 and the DMB project).

The Group has also continued to develop technologies to exploit biomass as a source of renewable energy. One example of this is the project carried out for the Vine and Wine Institute of Castilla-La Mancha (IVICAM), which awarded INERCO the contract for the engineering of the Clamber project biorefinery.

TECHNOLOGY

In terms of developing and implementing proprietary technologies, INERCO was the company selected by ENDESA Chile for the project to reduce emissions and optimise the yield of the Bocamina I thermal power station in Chile, investing almost 11 million euros. In the same field, INERCO is implementing low-NOx burners at the Cartagena power station in Colombia and completing the installation of primary Nox reduction measures at the Termozipa station in Colombia and for Scottish Power in Longannet (UK).

A new company, INERCO Tecnología Chile, was also created in 2014, and is already providing INERCO’s technology in Chile. Other noteworthy work in the country are the activities performed in projects to install automatic continuous emissions monitoring systems (CEMS) for the country’s main electricity companies (Endesa Chile, Guacolda, Colbún), opening the doors to new possibilities in other countries. In North America, the subsidiary INERCO Etech continues to advance in Canada, working for companies such as ATCO (Battle River plant) and TransAlta.

INERCO has also positioned itself as a leader in the area of industrial acoustics, designing and developing competitive noise control technologies at energy and oil&gas facilities.

INERCO also received the City of Seville Award for Sustainable Development for its projects to exploit tree pruning debris from municipal parks and gardens for energy generation using the company’s proprietary biomass gasification technology.

CONSULTANCY SERVICES

In addition to its intense activity in Spain, the company’s activities in Turkey in 2014 are also noteworthy. In the area of industrial safety, INERCO established bases for workplace accident prevention, control and risk management in industry in Turkey (Seveso II), consequently winning the initial contracts. Another significant project is the diagnosis of coal-powered thermal energy plants to reduce CO2 emissions, developed in collaboration with the Turkish authorities. A Turkish government delegation and representatives of the country’s main cities also visited Spain within the framework of an INERCO-led European project to monitor, manage and assess noise pollution in the country, one of the largest overall projects of this type to have been carried out worldwide.

INERCO has consolidated its position as a leading company in the areas of environmental management, industrial safety and risk prevention in strategic sectors including oil&gas (Repsol, Cepsa, BP Oil, Petrobras, Ecopetrol, Enap, Mansarovar Energy and Petroperú, among others), mining (BHP Billiton, Glencore, Anglo American, First Quantum, Trafigura, Emed Tartessus) and energy (Endesa, Iberdrola, Gas Natural Fenosa, Enel, Colbún, ISA).

INERCO is also proceeding with its activities as a leading provider of advanced training and rescue in Latin America, for various elite units of the armed forces of Mexico, Ecuador and Colombia.

ABOUT INERCO

INERCO, a group of companies with three decades’ experience, works in the fields of industrial project engineering, the development of advanced emissions-reduction technologies, renewable energy exploitation, noise control and industrial waste water treatment.It also provides consulting services in the fields of the environment, industrial safety, workplace risk prevention and professional emergency and rescue training.

INERCO’s activities focus on the chemicals, , electricity, cement production, mining, agro-food and infrastructure sectors, among others. The company is present in Europe, where it is headquartered in Seville, the United States and Latin America.

In its areas of activity, INERCO is an active participant in R&D at both the national and European levels. It participates in programmes supported by the Ministry of Science and Innovation, the Industrial Technology Development Centre (CDTI) , the Technological Corporation of Andalusia, the Innovation and Development Agency of Andalusia (IDEA) and European Union Framework Programmes.