Informe Anual de Responsabilidad Social Empresarial 2015 Renfe RSE en v3.pdf · 01 ANNUAL REPORT 2015 | 5 LETTER FROM THE CHAIRMAN The year 2015 has been a historic one for Renfe

2015ANNUAL REPORT

Corporate Social Responsibility

2015ANNUAL REPORT

Corporate Social Responsibility

ANNUAL REPORT 2015 | 3

INDEX

01 LETTER FROM THE CHAIRMAN 5

02 RENFE AT A GLANCE 9

$ About Renfe ............................................................................................................................................ 9

$ Main financial, social and environmental indicators ................................................................................ 10

$ Renfe Organisational model ................................................................................................................... 13

$ Management Team of the Public Business Entity Renfe ............................................................................ 20

$ Risk management .................................................................................................................................. 22

$ Companies of the Renfe Group ............................................................................................................... 24

$ Renfe’s contribution to the sustainable development of Spain ................................................................. 34

$ Dialogue with stakeholders .................................................................................................................... 35

$ Internationalisation ............................................................................................................................... 41

03 +RENFE PLAN 47

04 OUR COMMITMENTS 53

$ Commitment to quality .......................................................................................................................... 53

$ Customer commitment ........................................................................................................................... 58

$ Commitment to safety ............................................................................................................................ 62

$ Commitment to innovation ..................................................................................................................... 68

$ Commitment to employees ..................................................................................................................... 71

$ Commitment to suppliers ....................................................................................................................... 86

$ Commitment to Corporate Social Responsibility ...................................................................................... 89

05 CHALLENGES 121

06 ANNEXES 125

$ Table of contents and Principles of the United Nations Global Compact ................................................. 126

$ Espacios naturales afectados por las instalaciones de Renfe .................................................................. 127


01 LETTER FROM THE CHAIRMANThe year 2015 has been a historic one for Renfe Operadora. The first thing I would mention is the consolidation of the new business model with the current public business entity as the parent of a group of companies created through the application of article 1 of Royal Decree-Law 22/2012, of 20 July, adopting measures in matters of rail infrastructures and services. This reorganisation is focused on the specialisation by business of the companies within the Renfe group, reinforcing its capabilities to result in more efficient, competitive and customer-oriented management.

Secondly, it is worth mentioning the expansion of the high-speed network, with the addition of new destinations and new routes, such as León, Palencia and Zamora, and the improvement in journey times resulting from this for the entire north of the peninsular. In this way, the benefits of high-speed rail continue to be extended to more people throughout the entire country.

However, if we had to choose one aspect from 2015 as being the best for us, it would be the financial profit for the year, the best in the company’s history. Renfe closed 2015 with a net profit of €42.97 million,

which represents an improvement of 120% compared to the close of the previous year. Revenue grew by 10% to €3,263.24 million, while expenditure was contained (0.87%) to €2,779.03 million. Earnings before depreciation and interest (EBITDA) amounted to €484.20 million, 126% higher than the figure from the end of 2014.

In 2015, we have launched an ambitious business transformation programme that we are calling +Renfe. In essence, this programme forms a strategic plan with targets for profitability and quality improvements and is based on a series of projects for all key areas of the company. These add value to our position as a leading rail operator and key player in the passenger and goods transport system in Spain.

+Renfe seeks to engage the entire company in an effort to modernise its presence with our customers and be more competitive in the face of the arrival of the liberalisation of the rail sector, and most crucially in the face of the changes demanded by a more open society and more competitive environment.

Profitability is the most important focus for initiatives and the objective is to achieve a financial balance,

6 | LETTER FROM THE CHAIRMAN

reducing the level of indebtedness and dependence on the state through improved efficiency, the optimisation of assets and installed capacity, the generation of synergies, the reduction of costs and the increase in productivity. This is measured through three indicators: revenue, EBITDA and occupancy.

In this group we include important projects on the loyalty of our customers and the sale of tickets, the study of optimal fleet dimensioning to respond to an expanded network, a definition of the fleet available to the market, as well as an energy efficiency plan that contributes to further enhancing the key role of rail in environmental matters.

The improvement in quality parameters is based on a better customer service to consolidate the growth in demand. We seek to increase quality in several areas in order to promote innovative, safe, competitive, modern and environmentally-friendly services, and thus increase the satisfaction of our customers.

This group of projects is organised around three parameters: quality of service, quality in customer service and quality in the network, related to the Internet and new technologies.

Of particular importance are projects to improve our commercial website, the study of on-board connectivity options for our customers (Wi-Fi) and enhancing the presence of the company on the social networks and in the digital environment.

In short, the +Renfe plan seeks to drive forward the progressive transformation of the company acting in all key areas in order to improve its profitability and sustainability and the quality of all its services in response to a more open society and a scenario of increased competition. This objective has been achieved in one year thanks mainly to a very significant improvement in the operating profit of the Viajeros company, which represents over 85% of the group’s revenue.

This result is also explained by the fact that in 2015 Renfe completed a negotiation with Adif on

usage surface areas which has allowed it to record the outstanding rights for a total of €96 million.

In 2015, Renfe also provisioned the amount for the severance plan and the amount for the bonus wage payment for 2012 for a total of €49.8 million. The effort made to recover the outstanding debt is also significant: throughout 2015, the payment of €182 million was made effective, representing 92% of the outstanding debt at the beginning of the financial year.

The Renfe Group closed 2015 with a debt figure of €4,667.70 million, which represents a cumulative reduction of more than 10% since 2011.

With regard to the companies, Renfe Viajeros, the company operating all public and commercial passenger services (Cercanías (commuter), AVE (high speed), etc.), increased its revenue by 3.0% to stand at €2,707.60 million, and reduced its expenditure by 3.6% to €2,337.20 million, figures that result in a gross operating profit (EBITDA) of €370.5 million, an improvement of 81.4%. The net profit of Renfe Viajeros was €4.0 million, which represents an improvement of 102.7% compared to the previous year.

It is also worth mentioning the significant improvement in train occupancy levels: the 2015 financial year closed with an average occupancy of 68%, 4.3% higher than in 2014. On the high-speed services, the average was 72%, 6% more than in the previous year.

The revenue from passenger tickets grew by 3.4% to €2,006.90 million, of which €1,295.60 million corresponds to commercial services (High Speed-Long Distance), a 5.2% increase. The commercial revenue for items other than tickets also grew by 14%.

Renfe Mercancías, the operating and commercial company for all logistics services, improved its gross operating profit by 72.5% compared to 2014, to record a loss of €9.3 million. The company did not increase its revenue (€233.6 million, -6.2%) but reduced its expenditure by over 11%, allowing its earnings after depreciation and interest to improve by 31.5% compared to 2014, to now be situated at a loss of €37.3 million.


Moreover, Renfe Fabricación y Mantenimiento, the industrial company responsible for the maintenance, manufacturing and repair of trains and locomotives, closed the year with a gross operating profit of €9.3 million, following an increase in its revenue and expenditure of 3.1% and 5.6% respectively, due mainly to an increase in major vehicle repairs that, in accordance with the maintenance plans, must be carried out regularly on railway material. In 2015, 40% more of this activity was carried out than in the previous year.

Finally, the recent rolling stock leasing company (Renfe Alquiler de Material Ferroviario) closed its first full financial year with earnings after depreciation and interest of €0.9 million, achieving revenue of €17.2 million.

2015 has been a record year in the history of long-distance rail in Spain, with 30.8 million passengers on the commercial services run by Renfe Viajeros (High Speed - Long Distance). The progressive expansion of new high-speed infrastructures and Renfe’s commercial policy have led to a growth of 3.8% in passenger numbers compared to 2014, a figure that for the AVE services stands at 8.1% and exceeds 19.4 million passengers.

Public high-speed services (Avant) also recorded an increase of 7.2%, being used by 6.7 million passengers last year. With this, the number of passengers benefiting from the different high-speed services in Spain exceeded 37 million.

Looking at all journeys recorded in 2015, including the public commuter and medium-distance services, Renfe achieved a figure of 465.2 million passengers, 0.2% higher than in 2014.

Moreover, Renfe Mercancías closed the year with a slight decrease in the load transported across all markets, of 2%, with a figure of 20.8 million tonnes.

In this year of the company’s transformation, one key factor has been the involvement and enthusiasm of the more than 14,200 employees, people committed to the development of rail in our country and whom I would like to especially thank for their constant dedication and commitment.

Pablo Vázquez VegaChairman of Renfe


02 RENFE AT A GLANCE

About RenfeRenfe Operadora is a Public Business Entity under the responsibility of the Ministry of Development, dedicated to the marketing of passenger and goods rail services, mainly operating in Spain.

The public business entity Renfe is organised through four state-owned companies, whose share capital belongs fully to Renfe.

465.2million passengers

20.9million tonnes

14,229employees

10 | RENFE AT A GLANCE

Main financial, social and environmental indicators

Financial aspect 2015 2014

Gross operating profit (EBITDA) (millions of €) 484.2 213.8

Total revenue (millions of €) 3,263.2 2,969.0

Traffic revenue (millions of €) 2,872.6 2,819.5

Miscellaneous revenue (millions of €) 390.6 149.4

Total expenditure to EBITDA (millions of €) 2,779.0 2,755.1

Adif railway fees (millions of €) 608.8 607.4

Earnings for the year (millions of €) +43.0 -210.4

Number of suppliers registered 1,276 1,305

Payments to suppliers (millions of €) 2,248.2 2,249.5

Data on the activity of passengers and goods 2015 2014

Passengers (millions) 465.2 465.0

PK supply (millions of seats - km) 53,737.0 53,769.5

PK demand (millions of passengers - km) 24,825.3 23,753.5

Tonnes (millions) 20.9 21.3

Gross tonnes-km (millions) 17,209.4 18,361.3

Net tonnes-km (millions) 7,080.1 7,556.5

Social aspects 2015 2014

Number of employees 14,229 14,319

Number of women in the workforce 1,481 1,470

Average length of service of the employees (men - years) 30.86 30.23

Average length of service of the employees (women - years) 24.24 23.54

Turnover of the workforce men (%) 1.51 2.54

Turnover of the workforce women (%) 1.19 2.00

Investment in training (thousands of €) 3,840.22 6,358.84

Total hours of training 405,829 386,740

Employees who receive a formal performance assessment 2,666 2,654

% of employees covered by collective agreements 94.28% 94.25%

Absenteeism rate due to an accident at work 0.49 0.51

Work days lost due to an accident at work 22,526 23,809

Training in health and safety (hours) 21,523 21,808

Investment in the community (thousands of €) 138,904 135,400


Environmental dimension 2015 2014

Electric traction GWh 2,422.5 2,431.6

Millions of litres of diesel consumed 75.8 79.0

GWh L of diesel 752.4 784.3

Total GWh 3,174.9 3,215.9

Energy Intensity (Wh/UT) 100.5 102.7

Energy Intensity of Production (Wh/UTO) 42.0 44.6

Carbon Intensity (g CO2 /UT) 24.26 19.60

Carbon Intensity of Production (g CO2 /UTO) 10.52 8.50

Environmental expenditure and investments (thousands of €) 5,343 3,047

Water consumption (m³) 941,651 1,023,534

SO2 emissions (tonnes) 1,300.4 1,176.0

NOx emission (tonnes) 3,756.9 3,473.2

Generation of hazardous waste (tonnes) 1,201.0 1,249.4

% passenger traffic with low acoustic emission trains 95% 95%

% goods traffic with low acoustic emission trains 73% 72%

Saving in external costs (millions of €) 1,703 1,656

VISION

Renfe Operadora’s vision is to be the leading transport operator in terms of quality and efficiency of service.

MISSION

Renfe Operadora’s mission is the provision of safe passenger and goods services, running its business with a clear customer focus, following the principles of quality, efficiency, profitability and innovation, seeking to increase rail’s market share, on the basis of a commitment to society and the development of its employees.

VALUES

With regard to achieving the mission: $ Safety $ Customer focus $ Competitiveness $ Quality $ Efficiency $ Innovation - modernisation $ Focus on results $ Coordination among the agents comprising the rail system

With regard to its employees: $ Professionalism $ Development of people $ Active communication

With regard to Society: $ Commitment to the communities in which it operates $ Respecting the environment. $ Social and ethical commitment $ Transparency and good corporate governance


Main Products and Services

Metric Gauge

High Speed Medium Distance

High Speed

Long Distance

Commuter

Medium Distance

Tourist Trains

Goods

Services


Renfe Organisational model

Renfe Operadora, Public Business Entity

The current public business entity, Renfe Operadora, was established as the parent of a group of companies created by virtue of the application of article 1 of Royal Decree-Law 22/2012, of 20 July, adopting measures in matters of rail infrastructures and services.

The application of the aforementioned RDL entailed the separation of the old public business entity, Renfe-Operadora, into four state-owned companies, whose capital belongs 100% to the public business entity, Renfe-Operadora.

$ Renfe Viajeros, S.A. $ Renfe Mercancías, S.A. $ Renfe Fabricación y Mantenimiento, S.A. $ Renfe Alquiler, S.A.

Renfe also has rail integration companies. These companies consist of Renfe’s holding in the companies created 50% between the Fomento Group and the corresponding local authorities (Councils and Autonomous Communities), to facilitate the coordination and execution of various initiatives corresponding to the rail integration works in cities resulting from the development of the high-speed lines, as well as the promotion and management of the urban transformation resulting from these works.

Rail integration companies

Investee company or entity % holding

Alta Velocidad Alicante Nodo de Transporte, S.A. 12.50

Barcelona Sagrega Alta Velocitat, S.A. 12.50

Gijón al Norte, S.A. 12.50

Logroño Integración del Ferrocarril, S.A. 12.50

Valencia Parque Central Alta Velocidad, S.A. 12.50

Valladolid Alta Velocidad, S.A. 12.50

Zaragoza Alta Velocidad, S.A. 12.50

Almería Alta Velocidad, S.A. 12.50

León Alta Velocidad, S.A., in liquidation 12.50


Other Companies

Investee company or entity%

holding

Consorcio Español de Alta Velocidad Meca-Medina, S.A. 26.90

INECO, S.A. 12.78

EUROFIMA 5.22

Bureau Central de Clearing, S.A. 2.04

EMGRISA 0.08

Fenit Rail, S.A., en liquidación 40.63

Included among the main functions assigned to the Public Business Entity (PBE) are the following:

$ Definition of the Group’s policy and business strategy. $ Legal advice. $ Human resources, occupational health and safety, medical services, planning of the workforce, selection and recruitment, definition of remuneration, training, management of wages and administration with social security and tax bodies.

$ Financial, accounting, tax and insurance policies. $ Budget control. $ Negotiation of programme contracts. $ Development of international projects. $ Internal audit of the Group. $ Relations with external institutions and other bodies. $ Safety in circulation. $ Civil protection and security. $ Communication, media relations, branding and advertising.

Sociedad Renfe Viajeros, S.A.

The activity of Renfe Viajeros is carried out in two clearly defined areas: the provision of passenger transport services by rail, declared by the competent authority as a Public Service Obligation, as established in (EC) Regulation no. 1370/2007, of 23 October 2007, of the European Parliament and of the Council, on public passenger transport services by rail and road; and all other passenger transport services that are operated as commercial services.

Services falling under the responsibility of the Public Administration

In 2013, the process of studying and defining the commuter and medium-distance services that can be classified as a public service obligation was completed, having begun in the year 2010.

The Agreements of the Council of Ministers that have allowed this classification to be made are as follows:

$ In the case of commuter services, the Agreement of the Council of Ministers dated 30 December 2010.

$ In the case of medium distance services provided over the conventional Iberian gauge network, the Agreement of the Council of Ministers dated 28 December 2012.

$ In the case of medium distance services provided over the high-performance network (AVANT) and the passenger transport services provided over the metric gauge network, the Agreement of the Council of Ministers dated 5 July 2013.

In each case it is stressed that there is a need for the Ministry of Development to draw up, following a favourable report from the Ministries of the Economy and Competitiveness and of Finance and Public


Administrations, the public service contract that reflects the conditions under which these public service obligations must be exercised, as well as the compensation mechanisms, all in accordance with the content of (EC) Regulation 1370/2007, of the European Parliament and of the Council, of 23 October 2007, on public passenger transport services by rail and road. This contract, for the 2013-2015 period, was entered into between the Ministry of Development and Renfe-Operadora on 16 December 2013, and its main characteristics are:

$ Duration of three years, extendible. $ Inclusion of the list of services to be provided. $ Concession of the exclusive operating right. $ Audit of the services by the Ministry of Development. $ Provision of the services in accordance with defined quality levels and possible penalties.

$ Creation of a Monitoring Committee for it. $ Determination of monetary compensation and its settlement procedure.

The extension to this is currently being negotiated, based on the communication from the Ministry of Development of 3 June 2015 which indicates that, after assessing the compliance and results of the provision of the public service obligations during the period elapsed until that time, Ministry has decided, taking into account the sector policy on the matter, to extend the contract for an additional period of one year from 1 January 2016.

Agreement with the Generalitat de Cataluña

In 2009 and 2010, with effective date from 1 January 2010 and 2011 respectively, responsibility for the commuter and medium distance services provided in this region over the general interest Iberian gauge railway network was transferred to the Generalitat de Cataluña.

On 17 June 2013, within the Renfe-Operadora/Generalitat Joint Coordination and Control Body, the text of the contract for the provision of the aforementioned services by Renfe-Operadora during the 2011-2015 period was approved. It is now awaiting approval by the Bilateral Committee and the State-Generalitat Joint Committee for Economic and Tax Matters.

Until this approval occurs, and in order to not worsen the operator’s financial situation, the Government has included in the Laws on General State Budgets for 2014 and 2015, an additional provision bestowing budgetary

allocation on the Ministry of Development so that, after verification by the General Intervention Board of the State Administration of the proposals for the settlement of the financial valuation of the services provided in the years 2011 - 2014 by Renfe Operadora, it can make a payment on account to this entity of the result of those verifications, pending the definitive signing of the aforementioned contract.

It should be noted that the text of the contract approved on 17 June 2013 contains, among other things, the amounts planned as compensation for the years 2011 to 2015 which, as has been indicated, have served as support for the inclusion of these in the Laws on General State Budgets for 2014 and 2015, through an additional provision that allows their payment to be made to Renfe-Operadora.

These amounts have been calculated in accordance with the content of the appendix of (EC) Regulation no. 1370/2007, of 23 October 2007, of the European Parliament and of the Council, on public passenger transport services by rail and road, which develops the conceptual system for calculating this compensation.

In the meeting of the Joint Generalitat Cataluña-Renfe Coordination and Control Body held on 25 November 2015, the extension of the Action Plan for the 2015 and 2016 financial years was approved, along with the budget for the Rodalies Catalunya services for the 2016 financial year.

It is worth mentioning the efforts made in 2014 and 2015 by Renfe-Operadora, in different meetings with representatives from the Ministry of Finance and Public Administrations, to, as far as possible, explain the content of the text approved in June 2013 and demand its processing before the aforementioned bodies, or obtain the new lines to negotiate with the Generalitat.

Services falling under the responsibility of other Autonomous Communities

During 2015, services were provided for the Autonomous Communities of Extremadura and Aragón, covered by the corresponding public service obligation contracts, in order to maintain the supply in certain services that had not been subject to a public service declaration by the General State Administration.

Thus, in Extremadura the contract established in 2014 has remained in force and a new agreement has been established for 2016 with new financial and commercial conditions.


The agreement established in Aragón in 2014 has also remained in force, and for 2016 it will continue providing the same service under an agreement signed by both parties.

Commercial Services

With regard to the passenger rail transport services provided on a “commercial” basis, the RDL itself dedicates its Chapter II to the liberalisation of passenger rail transport services, amending the first paragraph of the third transitional provision of Law 39/2003, to establish 31 July 2013 as the date on which the market for the passenger rail transport services provided across the international, conventional Iberian and metric gauge general interest rail network would be opened.

Subsequently, Royal Decree-Law 4/2013, of 22 February, on measures to support entrepreneurs and stimulate growth and job creation, dedicated its Section IV, among other things, to specifying that previously established by RDL 22/2012, particularly regarding the progressive opening of passenger rail transport to free market competition, contemplating the transitory establishment of a system of markets in which access for new operators would be carried out through obtaining operating permits, whose number and scope will be determined by the Council of Ministers and whose granting will be carried out by the Ministry of Development through the corresponding tender procedure.

In this regard, the Resolution of the Secretariat of State for Infrastructure, Transport and Housing, of 27 June 2014, transposes the Agreement of the Council of Ministers of 13 June 2014, which determines both the number and term of the aforementioned operating permits, consisting of one with a term of seven years, as well as the lines for which they will be granted (basically the Madrid-Levante lines).

On 30 September 2015, the Order FOM/1977/2015, of 29 September, was published on the tender procedure for awarding the passenger rail transport operating permit, although this process has not continued to progress.

Exempt from the aforementioned transitional liberalisation system are the passenger transport services primarily for tourist purposes, whose provision was regulated by Order FOM/1403/2013, of 19 July, on passenger rail transport services purely for tourist purposes.

Subsidiary companies

Renfe Viajeros closes 2015 with a holding in the company Elipsos.

Elipsos, created in December 2000 as a Joint Venture, is currently a company under Spanish law, owned in equal parts by SVD/SNCF and Renfe Viajeros. It is responsible for managing the marketing of High Speed trains under the trade name “Renfe-SNCF en Cooperación” that travel on three different infrastructures (Adif, RFF and TP Ferro).

In international traffic, despite there being very strong competition from air travel, especially on the Barcelona-Paris route, it has managed to increase the number of passengers by 9% and revenue by 5% compared to 2014. By route:

$ Barcelona-Paris has grown by 4%. $ Barcelona-Toulouse by 6%. $ Madrid/Barcelona-Marseilles has grown by 15%. $ Barcelona-Lyon by 29%.

Domestic traffic has also performed well. On the Renfe side, passenger growth was 7%, whilst French domestic traffic increased by 12%.

The total number of international passengers transported was 877,000 and the total domestic passengers transported was 484,000 by Renfe and 678,000 by SNCF, producing a total of more than 2 million passengers, 9% higher than in 2014.

International occupancy was 64%, French domestic occupancy was 55% and Renfe domestic occupancy was 73%: in total the occupancy was 61%, which is 4% higher than in the previous year.


Company: Renfe Mercancías, S.A.

The corporate purpose of RENFE Mercancías, S.A. is to provide goods transport services by rail, among others the transporting of solid bulks, performance of general services for the transportation of iron, steel and similar products, general transportation services for all kinds of containers by rail or other means, transportation of vehicles and automotive components, and rail logistics operator, capable of managing or participating in any integral logistics chain, domestic or international, as well as provide other services or activities that are supplementary or linked to the rail transportation of goods.

It should be noted that the activity of this company has been taking place for several years under conditions of competition, both intermodal and intramodal, as there are different companies with a rail company licence that offer this activity in this market.

Companies in which Renfe Mercancías, S.A. has a holding

Investee company or entityHolding of Renfe

Mercancías

Logirail, S.A 100%

PECOVASA RENFE Mercancías, S.A. 60%

LTF, S.A. (2) 100%

Puerto Seco Ventastur, S.A. (1) 48% (*)

Alfil Logistics, S.A. 40%

Construrail, S.A. 49%

Conterail, S.A. 50%

TRANSFESA, S.A. 20.36%

SEMAT, S.A. 36.36%

Intercontainer Ibérica, S.A. 46%

Railsider Logística Ferroviaria, S.A. 49%

Railsider Mediterráneo, S.A. 41.26%

Railsider Atlántico, S.A. 49%

Algeposa Ferrocarril, S.A. 49%

Algeposa Terminales Ferroviarios, S.A. 49%

Hendaye Manutention, S.A.S. 49%(1) ceased activity(2) in liquidation


Company: Renfe Fabricación y Mantenimiento, S.A.

Renfe Fabricación y Mantenimiento is responsible for the comprehensive management of the maintenance service for the rolling stock fleet of the operating companies, in order to optimise both the technical and financial conditions of the maintenance.

During 2015, Renfe Fabricación y Mantenimiento was established as the entity in charge of maintaining the rolling stock fleet of Renfe Operadora, obtaining the accreditation of the State Rail Safety Agency as a certified entity in charge of maintenance for train carriages, in accordance with Community Directive 2004/49/EC, implemented in Spain through regulation 455/2011.

This certification implies:

$ A cultural change, going from being a mere maintainer of material to a maintenance manager, making key decisions about this material. The certification includes, in addition to the maintenance function itself, the management of the maintenance (function that cannot be delegated), development of the maintenance and maintenance management of the fleet.

$ This is a strategic area which will allow us to showcase the work that has been carried out for years, guaranteeing the know-how of the maintenance and preservation of the Renfe Operadora fleet, from carrying out the maintenance to managing the fleet

and developing a maintenance system that includes risk management.

Moreover, the service provision agreements between Renfe Fabricación y Mantenimiento and the Group’s operating companies have been outlined within the development of the new model. These new agreements are much more demanding for the company and contemplate a higher level of service for our customers, which translates into greater technical demands and financial responsibility in the event that the levels of quality set forth in the agreements are not met and/or bonuses in the event that the agreed ratios are exceeded.

Companies in which Renfe Fabricación y Mantenimiento, S.A. has a holding

Company

Investee company or entity

Holding of Renfe Fabricación y

Mantenimiento Name Holding

Nertus Mantenimiento Ferroviario y Servicios S.A. 49% Siemens 51%

Actren Mantenimiento Ferroviario S.A. 49% CAF 51%

Btren Mantenimiento Ferroviario S.A. 49% Bombardier 51%

Erion Mantenimiento Ferroviario S.A. 49% Vossloh España 51%

Irvia Mantenimiento Ferroviario S.A. 49% Alstom Transporte, S.A. 51%

Albitren Mantenimientoy Servicios Industriales S.A. (*) 50% Grupo Albatros 50%

(*) ceased its activity on 31 March 2015


Company: Renfe Alquiler de Material Ferroviario, S.A.

The corporate purpose of RENFE Alquiler de Material Ferroviario, S.A. is to provide the sale, lease and/or any other form of service involving the provision of the rolling stock it owns, as well as its facilities, the management and operation of third party rolling stock, and the provision of services and activities that are supplementary or related to these.

In order to carry out the activity forming its corporate purpose, Renfe Alquiler owns a series of assets (passenger trains, locomotives and goods carriages). Some of these were provided on its incorporation

through a non-monetary contribution by its sole shareholder, and the rest were subsequently purchased by the company itself.

The main asset of Renfe Alquiler is the rolling stock it owns, which at the end of 2015 is as follows:

$ 19 passenger trains suitable for travelling on UIC gauge tracks (high speed), 12 of which have a variable gauge system (suitable for also travelling on the Iberian and conventional gauge network).

$ 43 passenger trains suitable for travelling on the Iberian or conventional gauge network.

$ 2 compositions of Talgo material from the IV Series. $ 49 locomotives: 37 electric and 12 diesel. $ 1,826 carriages of various series.


Management Team of the Public Business Entity Renfe

Management Committee as at 31 December 2015

Of the 8 members forming part of Renfe’s Management Committee, 2 are female (25%) and 6 are male (75%).

General Directorate of Operations

CHAIRMAN

Economic-Financial General Directorate

General Directorate of Security, Organisation and Human Resources

PUBLIC BUSINESS ENTITY

General Directorate of Renfe Viajeros

General Directorate of Renfe Mercancías

General Directorate of Renfe Fabricación

y Mantenimiento

General Directorate of Renfe Alquiler de Material Ferroviario

STATE TRADING COMPANIES

Internal Audit Department Chairman’s Department

Secretariat General and of the Board of Directors

Department of Communication, Branding and Publicity


Board of Directors

The Board of Directors is the highest executive body responsible for the running of the organisation and the management of the company. It is made up of the following members:

$ Chairman of Renfe as Chairman of the Board of Directors.

$ 15 independent members appointed by the Ministry of Development, three of whom belong to the trade unions CCOO, UGT and SEMAF.

$ Secretary of the Board. $ Special Delegate from the Ministry of Finance and Public Administrations.

Of the 15 members on Renfe’s Board of Directors, 3 are female (20%) and 12 are male.

All members of the Board are professionals with extensive experience in official bodies, public and private companies, with a clear commitment to environmental, social and sustainability issues involving Renfe.

The responsibilities of Renfe’s Board of Directors, which meets monthly, are established in Renfe’s Articles of Association, approved by Royal Decree 2396/2004, of 30 December.

With regard to remuneration, the members of the Board of Directors who attend its meetings receive the monetary compensation authorised by the Ministry of the Economy and Finance, as proposed by the Ministry of Development, in accordance with that established in article 14 of the entity’s Articles of Association, approved by Royal Decree 2396/2004, of 30 December. It should be noted that the members who are classified as Senior Officials do not receive any remuneration, and this amount is destined for the Public Treasury. For this reason, only 4 directors have been paid fees.

Composition of the Board of Directors as at 31 December 2015

Chairman:Mr. Pablo Vázquez Vega

Members:Mr. Pablo Arellano PardoMr. Benito Bermejo PalaciosMr. Miguel Ángel Cilleros SánchezMr. José Luis Esparcia GilMs. Pilar Fabregat RomeroMr. Iñigo Fernández de Mesa VargasMr. Mario Garcés SanagustínMr. Juan Jesús García FraileMs. Pilar Garrido SánchezMr. Gerardo Luis Gavilanes GinerésMr. Jaime Haddad Sánchez De CuetoMs. Carmen Librero PintadoMr. Eugenio López ÁlvarezMr. Juan Antonio López AragónMr. Pascual Villate Ugarte

Secretary to the Board:Mr. José Luis Marroquín Mochales

Special Delegate from the Ministry of Financeand Public Administrations:Ms. Marta Fernández Currás


Risk management

The work to implement the Risk Management System for the Renfe Group began in 2014 with the design and development of the methodology for the Group’s Risk Map, led by the Internal Audit Department, and with the approval in the RENFE-Operadora Management Committee of the Renfe Group’s Risk Control and Management Policy, which was presented to the Board of Directors of RENFE-Operadora in December 2014.

Renfe Group’s Risk Control and Management Policy defines the responsibilities of the different members of the organisation with regard to the existence, definition, operation and supervision of the Risk Management System, with the Board of Directors being responsible for its existence and the Senior Management for ensuring its implementation.This Risk Management System for the Renfe Group covers the companies Renfe Viajeros, S.A., Renfe Mercancías, S.A., Renfe Fabricación y Mantenimiento, S.A. and Renfe Alquiler de Material, S.A. as well as the Public Business Entity RENFE-Operadora.

The objective of this Risk Management System is to reasonably ensure that all significant risks are identified, assessed and subject to continuous monitoring and kept within the risk appetite and tolerance levels that must be approved by the Board of Directors.

In 2015, the main work focused on the prevention of criminal risk, so a model has been developed for the Risk Management System.

The criminal risk prevention model has been reviewed by an independent third party, which on 4 November issued a verification report which states that “[...] verify that the Renfe Group has designed a Criminal Risk Prevention Organisation and Management Model that complies with that established in article 31 bis 5 of the Criminal Code (Organic Law 1/2015, of 30 March) [...]”

This verification report could be provided in any possible legal procedures that may be filed against the Renfe Group in Spain, exclusively in the context of that

established in article 31.bis of the Criminal Code, and particularly with regard to the declaration, before the Spanish Courts of Justice, of the establishment of the necessary control measures by the Group to prevent crimes being committed by its directors or persons under their authority.

As part of the Risk Management System development project, it has been considered necessary to implement a computer tool that supports and helps with the tasks of reporting and monitoring the information that must be handled. For this reason, during 2015 work has taken place on the design, parametrisation and powering of an application.

Finally, it should be noted that due to being classified as a public business entity, and in the case of the other Group companies due to being state-owned, various regular communications to the following authorities are required: Court of Auditors, Bank of Spain, Ministry of Finance and Public Administrations and the Ministry of Development, among others. These communications involve additional supervision by independent bodies that afford greater security and reliability to the information of the Renfe Group.

In the work methodology established for the Risk Management System of the Renfe Group, four blocks of analysis have been defined:

General Risk Analysis

This contains the bulk of the Risk Management System. It is structured into 12 risk management areas. Each of these manages its associated risks. Some of these cut across several areas, although the management, establishment of mitigating controls and monitoring indicators must be independent in each area. This analysis methodology defines, for each company, department or area, the risks, actions to execute, the probability and impact of the risk (both inherent and residual), the risk category, the controls in place and the controls pending implementation, as well as the monitoring indicators.


The Renfe Group has defined four basic strategies for responding to the existence of a risk (actions to execute): reduce, eliminate, transfer or assume each risk.

Satellite Risk Analysis

These are the risks that may materialise in the scope of certain departments or functions of the company, which due to their characteristics are considered critical and independently managed. They were already managed prior to implementing the Risk Management System. This block includes the risks linked to the areas of safety in circulation, environmental risks, civil protection, occupational health and safety risks and security of information.

Criminal Risk Analysis

The work developed in the model to prevent criminal offences being committed by the legal entity is included here. It contains a list of the crimes contained in the Criminal Code that could be committed by the legal entity. Both the impact and probability of occurrence have been rated on a scale of 1 to 5 (from very low to very high). A register of all controls existing in the company has also been developed, highlighting training, the existence of a code of ethics and a complaints channel.

Financial Risk Analysis

At the end of the 2015 financial year, the contracting of a support service to implement an Internal Financial Information Control System started, in order to establish greater control and monitoring of the financial information risks. This project will be implemented throughout 2016. Additionally, as established in note 7 of the Notes to the Consolidated Annual Accounts, there is a risk management policy associated with the financial instruments used by all companies comprising the Group, with regard to credit risk, liquidity risk, exchange rate risk and interest rate risk, which will form an integral part of the Renfe Group’s Risk Management System on which it is working.


Renfe Viajeros, S.A.

Main figures in 2015

Passengers Transported465.2 million passengers.0.1% increase compared to 2014.

EBITDA - Gross operating profit€370.5 million

Investment€169.8 million

2015 was a very positive year for Renfe Viajeros, recording a pre-tax profit of €8.4 million, which means an improvement over that obtained in the 2014 financial year of €159.5 million. This profit is the result of the strategy of consolidation and attraction of passengers, the optimisation of prices and the rationalisation of supply followed at the company.

Companies of the Renfe Group

In terms of the demand captured, the overall number of passengers, 465.2 million, slightly exceeds that obtained in 2014 (0.1%), although it is possible to differentiate between the evolution of Commercial Services and that of Public Service Obligation Services compared to the previous year.

The provision of passenger transport activities and associated services is structured into:

Commercial Services $ High Speed $ Long Distance $ Tourist trains

Public Service Obligations $ Commuter $ Conventional gauge

$ Metric gauge $ Generalitat $ Avant (High Speed Medium Distance)

$ Medium Distance $ Conventional Medium Distance $ Metric gauge $ Generalitat


Main Milestones of Renfe Viajeros in 2015

NEW HIGH-SPEED LINES

Santiago - Vigo Atlantic Route

On 18 April 2015, the new Santiago-Vigo line came into service. This new service in the Atlantic Corridor combines a new rapid service to connect the main towns on the route with the local services to provide mobility for the smaller towns.

Since the launch of the service toward the end of the year, more than 1.8 million travellers have used the services established in the Atlantic Corridor. This represents more than 7,600 passengers per working day and 9,000 passengers on the eves of public holidays on the fast Medium Distance and local services.

These figures show a 14.7% increase in passengers compared to the services that previously existed, and 10.9% for the whole of 2015 compared to 2014.

The combination of a larger number of seats available to passengers and a notable reduction in journey times has led to these new services in Galicia being well received by users.

With the new service, travel times have improved on all journeys. So, for example, the complete journey from A Coruña to Vigo now takes 47 minutes less time, the Santiago-Vigo stretch has improved by 40 minutes over the previous time and the Vigo-Pontevedra route takes just 15 minutes.

Valladolid-Palencia-León

Since its launch on 30 September 2015, this high-speed line has extended the high-speed Madrid-Segovia-Valladolid corridor into the Castile and León region, improving long distance rail connections from Madrid to Asturias, Cantabria and the Basque Country. It has also allowed for the remodelling of the Medium Distance Madrid-Valladolid-Palencia-León service and the

adaptation of the Madrid-Valladolid Avant service to the new commercial services.

The new High-Speed Valladolid-León line offers a notable improvement in journey times for our customers: with Asturias the reduction is 33 minutes and 53 minutes on direct services; with Cantabria the journey time is improved by 22 minutes (on top of the 25 minutes due to the improvement to the track between Palencia and Santander); with León the journey time is reduced by 40 minutes; and with Valladolid, two extra services are offered on the Madrid-Valladolid Avant service and two on the Madrid-Santander service.

Since the beginning of the commercial operation up until the end of the year, the total number of passengers using this service between Madrid – León – Asturias / Cantabria has exceeded one million, compared to the 870,000 who travelled in the same period in 2014, representing a 17% increase. This figure demonstrates a very positive response to the new service and an improvement in mobility in the areas of influence.

Madrid-Salamanca

These new services entered into operation on 17 December 2015. The launch of the new infrastructures on the Olmedo-Medina del Campo-Salamanca route significantly reduces journey times. So, the Madrid-Salamanca route takes 1 hour and 36 minutes, reducing the journey time by 64 minutes, also allowing a direct connection between Segovia and Salamanca. The supply is also increased with a new Alvia service that operates 3 times in each direction.

The number of passengers between Madrid and Salamanca experienced a 50% increase in its first month of service, and by the end of 2015, 12,600 passengers had used it.


Madrid-Zamora

On 17 December 2015, the new high-speed stretch between Olmedo and Zamora came into operation. With these new high-speed routes, passengers between Madrid and Zamora increased by 139% in its first weeks of service.

The reduction in the journey times between Madrid and Zamora, as well as its connection with Galicia, is between 20 and 30 minutes, depending on the stops made by the train.

STATION PLAN

The Station Plan, as well as addressing different needs at the Cercanías Commuter Stations managed by Renfe Viajeros, comprises a set of actions to improve accessibility that directly affect customers, facilitating access to the train.

The Plan includes 109 actions, mostly aimed at improving accessibility at stations: screeds, extensions and widening of platforms; installation of lifts; renovations and optimisation of buildings; construction of new underpasses and general improvements to facilities. This plan represents an increase of approximately 45% in the number of Cercanías commuter stations that will be accessible.

The investment associated with the Plan is €159.6 million; €149.7 million for stations and €9.9 for other improvements (signage, furniture, etc.).

During 2015, new Cercanías commuter stations were also opened in Valdebebas, Soto del Henares in Madrid and Jardines de Hércules in Seville.

Jardines de Hércules Station

Renfe opened this new station on 28 September 2015. It is located in the Seville neighbourhood of Bellavista and is part of the Seville Cercanías hub.

The service at Jardines de Hércules on a working day is 117 trains, 76 on the C-1 Line (Lora del Río-Sevilla-Utrera-Lebrija) and 41 on the C-5 Line, whose current route is extended to the new Jardines de Hércules-Benacazón station. The established service frequency is 15 minutes at peak times and 30 minutes during the rest of the day.

This station has a direct connection with the towns of Dos Hermanas, Utrera, La Rinconada, Cantillana and Lora del Río, as well as with the municipalities of Aljarafe that form part of the C-5 Cercanías Line.

The journey time from Jardines de Hércules station to Virgin del Rocio is 3 minutes. It takes 7 minutes to San Bernardo station and 11 minutes to Seville-Santa Justa.

The new station is located a few metres from the residential area of Jardines de Hércules. It has lifts and access points adapted for people with a disability or reduced mobility, which facilitates the movement of passengers through the station.

Soto del Henares Station

On 31 August 2015, this new station opened in Torrejón de Ardoz. The station forms part of the C-2 and C-7 Lines on the Madrid Cercanías network. It is situated close to the new hospital in Torrejón and the residential developments of Soto del Henares, Mancha Amarilla, La Zarzuela, Saucar and Juncal, as well as the Casablanca industrial estate.

This station is equipped with two platforms covered by shelters that are connected through an underpass which has lifts to make it more accessible.

Valdebebas Cercanías Station

On 16 December 2015, the trains service at the new station in Valdebebas was launched. This new point on the Madrid Cercanías network will connect to Barajas train station in 3 minutes, Chamartín in 12 minutes and Atocha in 26 minutes. The station is located in the urban development of the same name in the neighbourhood of Valdelasfuentes, next to Real Madrid’s Sports City and close to the trade fair centres of Campo de las Naciones, Sanchinarro and adjacent to Barajas.

This new station is underground and has modern facilities that make it fully accessible for people with a disability or reduced mobility.

INTERMODALITY

In 2015, various agreements were signed with transport companies, enhancing the use of integrated tickets that favour the intermodality of the train with other means of transport and the expansion of destinations and travel options.


These agreements represent a significant step in the marketing strategy, intended to capture new customers for Renfe from new market segments, based on intermodality, integrating different modes of transport into a single ticket, which guarantees the link between the two.

The main intermodality agreements signed in 2015 were:

$ Renfe + Balearia. With this agreement, customers who wish to make an intermodal trip by boat+train obtain a 50% discount on the second means of transport in the journey. They can combine journeys by train from any point on the peninsular to Valencia and Barcelona, with departures by boat from these two cities to the Balearic Islands. They may also combine the train from or to Algeciras with trips by boat to Ceuta or Tangier. There are plans to incorporate Malaga and Denia as connection points in the future.

$ Renfe + Iberia. Renfe and Iberia have launched a single plane-high speed train ticket that connects the international network of the Iberia Group with various national Renfe destinations. The combined tickets can be obtained in a single process, on the websites of both Renfe and Iberia, as well as at travel agencies and on Serviberia. This new service connects Córdoba,

Malaga, Seville, Valladolid and Zaragoza with the entire international network of Iberia, Iberia Express and Air Nostrum.

$ Tren + Coach. This new product allows the purchase of a single ticket, ensuring the connection between both modes of transport, offering customers an integrated transport solution that meets their mobility needs. There are currently agreements with the following coach companies: ALSA, AVANZA, BAILE, MONBÚS and TEISA; and as new high-speed services are opened, these collaborations with coach companies will increase in order to provide a better local service to the customer.

$ Improved intermodality with Terminal 4 at Barajas airport. In order to facilitate access for our customers to Terminal 4 at Adolfo Suarez Airport in Madrid, two new Cercanías services from Madrid Atocha have been provided, as well as the services with integrated tickets connecting Salamanca and Galicia.

NEW +RENFE LOYALTY PROGRAMME

The new +Renfe loyalty programme introduces important new features in order to offer:

$ 4 types of card: +Renfe, + Renfe Plata (+Renfe Silver), +Renfe Oro (+Renfe Gold) and +Renfe Premium.


$ Promotion to the higher card levels (Silver, Gold and Premium) is made more accessible, encouraging the use of the train.

$ The catalogue of benefits and services for members of the programme is extended: new customer benefits.

$ The collection and exchange of points has been made more flexible.

$ This allows for an improvement in personalised customer management.

$ Cercanías services are added to the +Renfe loyalty programme, rewarding those registered ticket holders who meet the general criteria of making 30 journeys in one month.

$ It allows registered holders of multi-trip tickets to collect points: Abono Estudio (Study Pass), Abono Estudiante (Student Pass), Abono Mensual (Monthly Pass), Abono Mensual ilimitado (Unlimited Monthly Pass), abono Trimestral (Quarterly Pass) and Trimestral Universitario (University Quarterly Pass). Moreover, it will allow points to be exchanged on all other non-registered tickets.

$ A new loyalty card is created for young people (14-26 years old), the +Renfe Joven 50. This card offers discounts of up to 50% for AVE (High Speed) and Long Distance tickets, and 25% for Avant, Medium Distance and Cercanías.

IMPLEMENTATION OF THE BONO AVE FLEXIBLE AND BONO AVE COLABORATIVO

The BonoAVE Flexible is an individual, registered, non-transferable multi-destination pass, valid for 10 outward and/or return journeys on any AVE service over a period

of 4 months, counted from the date of purchase. The unique feature of this pass lies in the flexibility it offers in terms of the routes taken: passengers do not have to select a single route, but instead can travel on all AVE routes whilst benefiting from a large discount. This product is aimed at customers who travel for work and professional reasons.

The BonoAVE Colaborativo, for high-speed services, is a multi-person card which can be shared by up to four associated holders who regularly make the same journey. This pass offers 8 outward and/or return journeys to be made between two predetermined stations during the 4 months following purchase of the pass, or from its first use. This pass offers a 30% discount on the Flexible Rate and is aimed at small companies, families and groups of passengers who want to make the most of the advantages of the collaborative economy, since they can travel on the same date and train.

OTHER MARKETING INITIATIVES

$ New sales channel renfe.com-Compra Exprés $ The site “Renfe en familia” $ Development of a new app for the Atendo service $ Renfe Holidays. In 2015, Renfe put three contracts out for tender that will allow Renfe to sell hotel rooms, car hire, leisure products and tickets for shows on renfe.com. With this it intends to offer customers a new line of products in addition to rail travel in order to provide added value to our customers who use the train as a means of transport.


Renfe Mercancías, S.A.


Net Tonnes20.9 million tonnes2% decrease compared to 2014

Net tonnes-km7,080.1 million net tonnes-km6.3% decrease compared to 2014

EBITDA - Gross operating profit €-9.28 million


Renfe Mercancías is owner of the assets of the locomotives, containers and wagons, and is responsible for the provision and marketing of the services of traction and transportation of goods by rail.

The company Renfe Mercancías, S.A. has a series of subsidiary and investee companies that in some cases offer it flexibility when providing services complementary to transportation, the core of its activity, and in other cases allow it to have strategic partners in certain markets, so that its positioning in these improves.

The activity and earnings of Renfe Mercancías, S.A. show a very significant improvement compared to the results from the previous year, as a consequence of a set of commercial and management measures aimed at resizing its resources, increasing their productivity and making logistical changes to the services offered to our customers, which have produced very positive results.

Compared to 2014, commercial activity has decreased by 6.2% in terms of traffic revenue and by 2% in terms of tonnes transported.

The different changes to revenue and tonnes are due to the mix of traffic in this period, in which there has been an increase in certain traffic for coal, in both the Metric Gauge and the Multi-product market. This represents a large volume in tonnes, but since it is transported a short distance it makes a below-average contribution to revenue.

Breakdown of Activity

INTERMODAL BUSINESS (CONTAINERS)

Intermodal is the area of Renfe Mercancías specialising in the rail transport of containers, swap-bodies and semi-trailers.

IRON AND STEEL BUSINESS

Specialising in the transport of material associated with the metal industry: steel coils, rails, piping, wire rods, profiles, bars, scrap metal, billets, etc.

MULTI-PRODUCT BUSINESS

Multi-product is the area of Renfe Mercancías specialising in bulk solids (coal, cement, ash, clinker, food and fertilisers), bulk liquids (petrochemicals, fuels and bio-fuels) and other products (building materials, stones, earth, wood, paper, prefabricated products, manufactured products, etc.), as well as the management of special and exceptional transportation.

AUTOMOTIVE BUSINESS

Dedicated to the transportation of vehicles, and automotive parts and components. Pecovasa is the subsidiary that carries out the activity of the Automotive Business, specialising in the transportation of finished vehicles. The partner companies of Pecovasa are: Renfe (60%), COMSA Rail Transport S.A.U. (15%), DB Schenker Rail Automotive (14.55%) and Grupo SUARDIAZ (10.45%).

LOGIRAIL

The purpose of Logirail is to provide a flexible and cross-cutting service to all business areas of Renfe Mercancías, constituting the supplier of “Ground Logistics Services”, making it possible to transfer between rail and all other modes of transport (maritime or road).


Its main activities are:

$ Provision of services in land terminals. $ Self-provision of complementary and ancillary services in ports and rail terminals, both public and private.

$ Management and marketing of rail car lots. $ Marketing and leasing of assets associated with freight logistics.

$ Haulage of goods, loading and unloading of trains.

METRIC GAUGE BUSINESS

Business area specialising in the transportation of goods on the Metric Gauge Network.

The main services offered are: intermodal transport services: haulage at source and destination, handling of loads, provision of ancillary transport material (containers, tankers, carriers and reel holders), traffic combined with other means of transport (road, maritime, rail) and international connection with France via Hendaye through the agreement with EUSKOTREN. All of this takes place on the metric gauge track.

Main Milestones of Renfe Mercancías in 2015

COMMERCIAL MEASURES

$ Renegotiation of the logistics conditions of the transportation, aimed at a greater use and optimisation of resources (increase in the length of trains, of the tonnes transported by train, use of empty returns, etc.).

$ Analysis of the portfolio of actual and potential customers, with a detailed analysis of the traffic services, which allows for sustainable and profitable growth, abandoning those that are strongly deficient and where it has not been possible to turn them around using prices or logistical changes.

$ Rationalisation of the offer in the Multi-Customer Network, offering solutions to customers of “Tren Cliente” and “Policliente” (marketing by slots).

$ International traffic has evolved very positively in the intermodal and automotive markets, with growth of 8% and 22% respectively, with a highlight being the growth and good prospects for 2016 for international traffic through the TP Ferro Tunnel.

$ Significant efforts have been made to negotiate contracts with the main customers in order to achieve long-term contracts with selective price increases and changes to the logistical conditions

to achieve savings in production costs, within the quality of service commitment.

$ With regard to 2014, there has been a 10.9% increase in the tonnes transported through ports, which affects all sectors except intermodal, a market which has seen a decrease in the incoming traffic at ports during the last quarter of the year.

$ On 25 July 2015, the Copasa S.A. – Renfe Mercancías S.A. – Logirail S.A. joint venture was awarded the public tender for the Comprehensive Service for the Combined Transportation of the Urban Waste of different Councils within Galicia, at the decision of the company SOGAMA, which is entrusted by the Xunta de Galicia (Galicia Government) with the treatment of waste. The award is for a term of ten years.

MANAGEMENT MEASURES

The policy which began in 2014 has continued throughout 2015, with a significant reduction of both human and material resources used, with the following actions standing out during the year:

$ The human resources adjustment policy has been extended, with a decrease in the average workforce of 5.9% compared to 2014.

$ The fleet of wagons has been reduced by 1,953, of which 1,600 have been made available to Renfe Alquiler for their marketing. The number of locomotives in operation has also fallen by 9% and work is currently taking place to process their use in the market through the aforementioned material leasing company. The two measures have led to increases in the productivity of material and human resources of around 10%.

$ There has been an increase in activity at railway terminals, with 6 new terminals being declared in the self-service system, and operations in the Abroñigal terminal have continued through the TILO joint venture (with a 50% holding), created in October 2014.

$ In the last quarter of the year, the Processes and Systems Transformation Plan was launched in order to modernise and provide support for the changes experienced in the market, the growing demands of customers and the increased pressure on business margins, globally addressing commercial and customer management, production management and business analysis.

Staff from the company have also defined a Viability Plan for the forthcoming three years, which covers a set of management and commercial strategies that will constitute the main lines of action over the coming years.


Renfe Fabricación y Mantenimiento, S.A



Revenue€669.7 million


Breakdown of Activity

The Industrial Department at Renfe is separated into various activities, of a different scale and profitability, which are facing important challenges in the short and medium-term.

$ Engineering of design and maintenance, as well as performing tests for the receipt of new material prior to its use.

$ Maintenance of the fleet of trains owned by Renfe, using for this its own resources and investee companies.

$ Services to third parties, including the maintenance of the rail rolling stock owned both by public entities (Adif and the Ministry of Defence), and by individuals (construction companies and private operators).

$ Management of maintenance facilities, including the planning and design of new workshop facilities and their equipment, according to needs, as well as their maintenance.

$ Industrial tasks such as the manufacturing of rolling stock, transformation of vehicles and repair of components.

$ Other activities, consultancy and technical advice, audits, both technical and management, of the maintenance and scrapping of rolling stock and equipment.

Train maintenance cycles

Order FOM/233/2006, of 31 January, establishes the requirements that must be met by the rail rolling stock in order to be able to travel on the General Interest Railway Network. For the purposes of this order, the following definition is used: “Maintenance Plan for a Railway Vehicle: document containing the set of maintenance operations


that define each of the maintenance tasks that must be carried out on a railway vehicle and the frequency with which they must be performed throughout its entire useful life in order to preserve, in the condition required during its validation, the technical characteristics that, in matters of security, reliability, technical compatibility, health standards, environmental protection and, where appropriate, interoperability, are required in accordance with the provisions of the ETH (technical specifications for approval)”.

The authorisation for a railway vehicle to travel will be temporarily suspended, among other causes, when the maintenance plan of the railway vehicle is breached and/or any unauthorised amendment is made to the vehicle’s maintenance plan.

Maintenance Plans are produced on the basis of the information provided by the manufacturers on delivery, along with the experience acquired and the appropriate behaviour of the basic safety components. These plans list the set of maintenance tasks and operations, defined in accordance with the type of material and series to which it belongs, which must be carried out on a railway vehicle and the frequency with which they must be carried out, and are classified into two types of maintenance:

PREVENTATIVE MAINTENANCE (SCHEDULED)

$ First-level maintenance: Simple maintenance tasks that are carried out regularly in average cycles of kilometres between two commercial services, not requiring the material to remain immobilised for long. Checking of safety elements, especially under the vehicle (bogies, axles, brakes, etc.) and cleaning operations.

$ Second-level maintenance or major interventions: Maintenance operations that force the vehicle to be immobilised and are carried out regularly in large cycles of kilometres, during which complex operations are performed where the vehicle is completely disassembled and that require a longer period with the material immobilised (major interventions). Repairs of major components

(bogies, brakes, axles, traction motors, etc.), mid-life operations, interior redesign and updating of components.

CORRECTIVE MAINTENANCE (UNSCHEDULED)

$ Corrective maintenance: maintenance tasks that are carried out regularly to repair faults, accidents, vandalism, etc.

Main Milestones of Renfe Fabricación y Mantenimiento in 2015

Assumption, in 2015, of the comprehensive management of maintenance, for which purpose the maintenance contracts with external maintenance companies and those that were previously assigned in the “Viajeros” department were transferred.

$ Formalisation through Framework Agreements of the provision of maintenance services to the Operator Companies in the Renfe Group.

$ Increased activity and cost management. Although a certain reduction in first-level activity has been observed in 2015, due to the fact that the vehicles have travelled a lesser number of kilometres as a whole, this decrease has been offset by the increase in second-level repairs, Major Interventions.

$ This increase in second-level activity, which is still lower than budgeted, has been a challenge for the organisation as a whole, which has had to boost its activity at all levels. This situation has led to Major Interventions being carried out in workshops traditionally adapted for first-level maintenance (Valencia, Seville), requiring specific investments to adjust these. The specific second-level workshops have also had to improve their equipment and suitability in order to be able to carry out the planned workloads, especially the maintenance centres in Malaga and Vilanova, and to a lesser extent those in Valladolid and Villaverde.

$ Certification as Entity in Charge of the Maintenance of Wagons for the transportation of goods, awarded by the Ministry of Development, on behalf of Renfe Fabricación y Mantenimiento, S.A.


Renfe Alquiler de Material Ferroviario, S.A.



Revenue€17.4 million


Main Milestones of Renfe Alquileres in 2015

The main actions implemented by the Company in 2015 have been:

$ Management of the contract for the lease and comprehensive maintenance of vehicles from the 592 series with CP (Comboios de Portugal), in which the progressive replacement of various trains was planned, with growth of up to 20 trains.

$ The launch of the commercialisation through leasing of the goods transportation locomotives owned by Renfe Alquiler. As a result of this launch and the commercial actions undertaken, throughout 2015 Renfe Alquiler signed various lease contracts with private rail companies, having leased a total of 7 locomotives.

$ The acquisition of 1,600 wagons of various types from Renfe Mercancías, S.A., as well as another 109 vehicle transportation wagons from the company Logística y Transporte Ferroviario, S.A., in liquidation (LTF), in December.

$ Carrying out of an analysis of the technical condition of the newly acquired wagons and the needs of the goods rail transportation operators with regard to this type of material, as a prior step in their commercialisation.

$ Launch of the commercialisation of wagons. As a result of this commercial action, the first 47 wagons have been leased.

$ Implementation of the Renfe Alquiler website to advertise its activity and the different types of passenger and goods material it owns for lease to third parties.


Renfe’s contribution to the sustainable development of Spain

Renfe directly contributes to the national economy through the wealth we generate, the taxes we pay, the purchases we make from our suppliers; and indirectly through the hiring of security services, cleaning services, on-board services, contributions to society, and environmental investments, among others.

Renfe’s contribution to the country’s sustainable development in 2015 amounts, in financial terms, to €2,865 million; we generate 14,229 direct jobs and 10,112 indirect jobs through the hiring of services, and we make social contributions valuing €138.9 million. In recent years we have reduced our carbon footprint by 52%, which is now situated at 24.26 g of CO

2 per unit

transported; our energy intensity-energy efficiency (Wh per Unit Transported) is 100.5Wh/UT; 34.68% of our trains use renewable energies and we have a minimal impact on biodiversity of 0.26 km² of occupied surface area.

Financial Contribution

€657 millionWages

€608.8 millionFee paid to Adif for the use of

infrastructure and stations

€184.7 millionPersonal Income Tax and Social Security

paid by employees

€8.6 millionTaxes

€188 millionSocial Security

€1,287 millionPurchase of products and services

Social Contribution

14,229Employees

10,112Indirect jobs

€3.84 millionTraining

29Average training hours

per employee

2,577Number of employees in preventive

health campaigns

98.35%Permanent contract

20%Women on the Board of Directors

138.9 M€Investment in the community

Environmental Contribution

100.5 Wh/UTEnergy intensity-efficiency

24.26gCO

2 Carbon footprint

52%Reduction in the carbon footprint

€1,703 millionSaving in external costs

34.68%of the energy consumed by our trains

comes from renewable sources

1,398 million tonnes of CO2

Reduction in the carbon footprint


Dialogue with stakeholders

Dialogue with stakeholders is key for the management at Renfe. It is a continuous dialogue that allows us to identify the needs and expectations of the stakeholders, in order to meet these as far as possible, in a balanced and realistic manner.

In addition to the usual communication channels, the company is present on the main social networks: Twitter, Facebook, Flickr and Youtube, as well as having a corporate blog. Various applications for mobile telephones and tablets have also been developed in recent years, which allow our customers to keep informed about our services at all times.

Main stakeholders

$ Customers $ Employees $ Suppliers $ Public Administrations $ Society

Main communication channels

Renfe offers its stakeholders a wide variety of communication channels through which to converse with the company and meet their information needs, make suggestions and/or complaints, and manage the service.

Dialogue with stakeholders is a key tool in understanding the demands of the environment and identifying expectations and opportunities.


Renfe has four groups of communication channels:

Communication channels with stakeholders Customers Employees SuppliersAll

stakeholders

Face-to-face and via post:Avenida Pío XII, nº 110 28036 Madrid

Telephone InformationComprehensive customer information: 902 320 320 Internet sales: 902 109 420 Assistance for passengers with a disability: 902 240 505

Website: www.renfe.com

Irene: Virtual assistant

Virtual customer service office

Website of Rodalies: www.rodaliesdecatalunya.cat

Website for mobile devices: renfe.mobi

Applications for phones and tablets

[email protected] [email protected] [email protected] [email protected] [email protected]

Service centres and customer service

Trade fairs and congresses / Groups

Cercanías Customer Committees

Conferences / Participation in Debates

Renfe Annual Report

Social NetworksTwitter Facebook Flickr Youtube

Press Releases

Renfe Corporate Intranet: Interesa

Collaborative environments 2.0: Digital newsletters with information about Renfe

Consoles at operative work centres and specific campaigns for groups

Breakfasts with the Chairman

“Contractor’s Profile” on Renfe’s website:www.renfe.com

Institutional Relations (Autonomous Communities, Public Administrations, Congress, Senate, etc,)

http://www.renfe.com

http://www.rodaliesdecatalunya.cat



Breakfasts with the Chairman

Forming part of the company’s internal communication strategy, these meetings are created with a dual purpose. First for the chairman to be able to learn about and listen to the perception of these professionals and, second, to encourage participation and communication, giving the employees a voice, and the exchange of information with informal meetings through two-way communication.

During 2015, meetings were held with maintenance staff, technical teams, management staff and commercial staff at stations.

In addition to the chairman, the Managing Director of Operations, the Managing Director of Safety, Organisation and Human Resources, and the Director of the Chairman’s Department have also participated in these meetings.

Cercanías Customer Committees

This is a forum for exchanging opinions and proposals between customers and Renfe Cercanías. There are currently Customer Committees in the Cercanías Hubs in Cantabria, Valencia, San Sebastián, Bilbao and Asturias.

These customers, taken from among the people who travel regularly and maintain some kind of relationship with this means of transport, were previously asked to take part.

The primary objective of the committee is to establish regular contact to encourage a closer relationship with customers, obtain first-hand information and learn about the reality perceived by the customer, as a basic platform for introducing improvements to the service in real time. Renfe Cercanías undertakes to study the proposals and suggestions of the customers, taking into account the opinion of the passenger.

The customer committee aims to encourage a closer relationship with the customers. In order to continuously improve the service it is essential to know what customers think and analyse the effective provision of the service, assessing the commitments acquired by Renfe and the level of quality that Cercanías is obliged to provide. These customer committees are formed by a representation of passengers from all lines forming the hub. These customers, taken from among the people who travel regularly and maintain some kind of relationship with this means of transport, were previously asked to take part.

Website

Renfe’s website was updated in 2015, turning it into an online distribution tool aligned with the rest of the digital sales channels. It has improved functionality, an “Express” purchase solution, a new image and a unique customer portal. All of this was carried out in order to increase revenue, reduce distribution costs and improve the quality perceived by the customer.

With this development, a ticket can be purchased in just three steps. Sales through the website represent 44% of total ticket sales. 82% of sales are made through the new website and 18% through the classic website. The average session time on the new website has fallen by 18.6% compared to the classic website.

This new website has led to a huge increase in the use of mobile ticketing: in 2015, 23.3% of customers used this feature, as a proportion of all tickets sold across all channels.

The main characteristics of the new website that improve and streamline the purchase process are:

$ 3-click purchase. The steps involved in purchasing tickets are reduced - saving time

$ A design that improves the page’s usability - easy $ A visually more attractive design $ A more intuitive model

The “Renfe en familia” site has also been created. This site brings together, on one specific website, all the information about the features, prices and services that Renfe has for children. It contains Renfe’s promotions and offers for travelling with children, as well as ideas for travelling as a family and holiday packs, travel information related to menus, film schedules, pets, luggage, etc.

During 2015, Renfe’s website was one of the most consulted in the travel sector and the most visited in the transport sector, with 132 million visits. On this website, customers have access to a virtual assistant called Irene who responds to user queries 24 hours a day. During 2015, Irene received 2.6 million questions with a success rate of 79%.

Included among the different dialogue and management tools available on www.renfe.com is the Virtual Customer Service Office, which allows customers to ask any questions they want using an online form.



In the case of Cercanías, there is direct access to Cercanías Customer Service so that users can make queries related to the Cercanías commuter services by hub.

In the Rodalies de Catalunya services, provided by Renfe, there are two customer information and assistance services: the website www.rodaliesdecatalunya.cat and a Contact Centre. These are two specific platforms for channelling all types of information and queries related to the Rodalies de Catalunya service: information on the usual services, detailed information on scheduled changes and the current status of the service (incidents), complaints and suggestions.

Customers of High Speed-Long Distance and Medium Distance train services can contact the company through the general form on Renfe’s website, specifying the department for which this communication is intended.

With this new website, the use of mobile ticketing has increased sharply to stand at 23.3% of customers.

Social Networks

RENFE ON THE INTERNET

This Project, included in the +Renfe Plan, aims to continue increasing its presence on the social networks. It also intends to reinforce the sales channels in a streamlined and flexible manner in terms of new products, last-minute offers and the seats in low demand, whilst seeking new revenue with a low investment.

The noteworthy aspects of this project are:

$ The management of notifications and incidents in real time.

$ Establishing the channel as a customer service office. $ The recent creation of a Twitter account for Renfe Cercanías in Madrid.

$ The sale, through the social networks, of products and exclusive offers.

Renfe is currently present on five channels: Twitter, Facebook, Flickr, YouTube and a blog. It has 100,000 official followers, with a Klout of 87.

TWITTER

The company’s presence on the social network Twitter, since January 2010, forms part of the business challenge to innovate its customer interaction channels. These channels have evolved to become tools that encourage conversation, a more personalised service, quality and immediacy in the interaction with society.

http://www.rodaliesdecatalunya.cat


Customer Service Centres

Customer Service Centres are located at large stations with a considerable flow of passengers, and their objective is to provide a personalised service to customers every day of the year.

Activity at the Service Centres during 2015 amounted to 1,633,397 customers served at the following stations: Albacete los Llanos, Barcelona Sants, Camp de Tarragona, Córdoba Central, Cuenca Fernando Zobel, Girona, Lleida Pirineus, Madrid Puerta de Atocha (2), Málaga María Zambrano, Requena-Utiel, Santiago de Compostela, Seville Santa Justa, Valencia Joaquín Sorolla and Zaragoza Delicias.

Customer complaints

VIAJEROS AREA

During 2015, the number of complaints received across all Viajeros services again grew compared to the previous year, except on the Cercanías commuter service where the number of complaints per thousand passengers remained unchanged.

For the High Speed, Long Distance and Medium Distance services, delays were the main cause of customer complaints, whereas on the Cercanías commuter services the main cause was tickets.

Number of complaints per thousand passengers across all services

Complaints per 1,000 passengers 2015 2014

High Speed - Long Distance 2.50 2.34

Medium Distance 0.44 0.40

Cercanías Commuter trains 0.11 0.11

Atendo (per 1,000 times people helped) 1.98 1.73

Metric Gauge 0.29 0.21

Goods and Logistics Area

Complaints 2015 2014

Goods 69 89

In order to bring information much closer to the daily

customer, on 2 May (Madrid Community Day) a new channel opened on Twitter,

@CercaníasMadrid, to exclusively attend to this service which accounts for more than two thirds of all Renfe passengers. It mainly offers information on the rail traffic on the Cercanías commuter lines, although there are also commercial products and leisure options. In little more than half a year, this channel achieved 11,700 followers. During 2015, @renfe reached the figure of 76,870 followers.

The interactive Twitter page of Rodalies de Catalunya also interacts with Twitter users, that is to say, it not only offers information about all the initiatives and latest news for the Rodalies de Catalunya services, but also responds to any possible queries from users. As well as the generic profile, there are specific profiles for each of the lines in service that provide specific information about the service on the line, as well as more personalised customer queries. The number of followers of the general Rodalies account is 23,173 and the number for the accounts of the specific lines is 32,469, giving a total of 55,642 followers.

FACEBOOK

Renfe has had a Facebook profile since 2011. The objective is to advertise, among other content, promotions and offers, as well as the more curious and interesting aspects that often have no place in traditional communication, such as recommendations for trips by train and the best routes for using this means of transport. In 2015, the number of Renfe fans reached 42,594.

YOUTUBE

In 2015, Renfe’s Youtube video channel achieved the figure of 1,807 videos distributed across 863 playlists, 853 subscribers and 1,198,504 video views since its creation in March 2006.


CLAIMS, FINES AND PENALTIES

During 2015, the number of claims filed against Renfe and processed amounted to 198, which implied an amount of €675,612.90 for the judgements against it. Of this, 80.8% corresponded to injuries on-board the train and at the station.

Moreover, in 2015 Renfe received eighty-six administrative complaints, for a total amount of €24,037. 66.3% of these corresponded to issues related to consumption.

2015 2014

Files processed

Number of files processed 198 179

Financial amount of judge-ments against it (€)

675,612.90 312,428.72

Type of files processed

Persons run over 3 6

Injuries on-board the train 80 65

Injuries at the station 80 79

Other 35 29

Complaints

Number of complaints received 86 91

Financial amount (€) 24,037 79,315

Types of complaints (number)

Fires 7 5

Consumption 57 61

Data Protection Agency 0 1

Competition 1 3

Labour discipline 16 19

Other 5 2

Criminal proceedings

Number of criminal proceedings 42 44

Financial amount (€) 25,013.77 42,108.76

Type of criminal proceedings (number)

Persons run over 8 6

Injuries 22 21

Incidents on the train 5 16

Workplace accidents 2 1

Other 5 0

Participation in external forums

To encourage transparency in its management, Renfe has a continuous dialogue with all its stakeholders through multiple communication channels, face-to-face meetings and through its participation in different associations and entities such as:

$ Club de Excelencia en Sostenibilidad (Excellence in Sustainability Club)

$ Club Excelencia en Gestión Vía Innovación (Excellence in Management Via Innovation Club)

$ Red Española del Pacto Mundial (Spanish Global Compact Network)

$ Asociación Española de la Calidad (Spanish Quality Association)

$ Foro de Marcas Renombradas (Renowned Brands Forum) $ Asociación Española de Cargadores y Usuarios del Transporte de Mercancías (Spanish Association of Dockers and Users of Goods Transport - AEUTRANSMER)

$ Unión Internacional de Ferrocarriles (International Union of Railways - UIC)

$ Comunidad de Empresas Ferroviarias y Gestores de Infraestructura Europeos (Community of Railway Undertakings and European Infrastructure Managers - CER)

$ International Rail Transport Committee (CIT) $ Forum Train Europe in the Goods Area (FTE Goods) $ Asociación Latinoamericana de Ferrocarriles (Latin American Railway Association - ALAF)

$ General Contract for Use of Wagons (GCU) $ European Company for the Financing of Railroad Rolling Stock (EUROFIMA)

Additionally, since 2002, Renfe has been a member of Autocontrol, a non-profit organisation that manages the Spanish advertising self-regulation system, and maintains its commitment to comply, in all its commercial communications, with Autocontrol’s Advertising Code of Conduct, based on the Code of Advertising Practices of the International Chamber of Commerce.


Internationalisation

Haramain High Speed development project in Saudi Arabia

The so-called “Haramain High Speed Rail Project” (development of the high-speed rail link in Saudi Arabia between Medina and Mecca), whose awarding to a Spanish-Saudi consortium was completed in 2012 for a sum of €6,736 million, has a scope that includes the construction of the super-structure, the supply of the rolling stock, the commissioning and operating of the railway and the maintenance of the line and material.

Fourteen companies participate in the aforementioned consortium, 12 Spanish and 2 Saudi, and of the 12 Spanish companies, 3 are public (RENFE, ADIF and INECO) and the rest private.

This project consists of two phases:

$ CAPEX, which in the case of Renfe involves the construction of the workshops for maintaining the rolling stock and the preparation of the line’s commercial operations.

$ OPEX, which in the case of Renfe involves the commercial operation of transporting passengers once the line is operational.

Renfe manages this project through a Permanent Establishment, created in that country on 8 January 2013 for the management and defence of Renfe’s interests in Saudi Arabia, and entitled “Renfe Operadora, Saudi Arabian Branch”.

In 2015, work continued on the construction of the workshops and the preparation for the commercial operation, from both the viewpoint of hiring and training the necessary staff and designing the operation itself.

Other noteworthy projects

SALE OF MATERIAL TO ECUADOR

During the 2014 financial year, the refurbishment works on a metric gauge rail arrangement were carried out

in the workshops of Candás (Asturias) to turn it into a tourist train, acquired by Ferrocarriles de Ecuador Empresa Pública (FEEP).

During the first quarter of 2015, Renfe completed the work and delivered the so-called “Costa Sierra tourist train” to Ecuadorian railways, along with the spare parts necessary for its maintenance.

PARTICIPATION IN THE TWINNING PROGRAMME WITH UKRAINE

During 2015, the actions corresponding to the twinning project entitled “Institutional Support to the Ministry for Infrastructure of Ukraine on Increasing the Operation Performance and the Competitiveness of Rail Transport in Ukraine” continued. Renfe participates in this Twinning in the role of Mandated Body.

CONSULTANCY AND TECHNICAL ASSISTANCE SERVICES

In the final quarter of 2015, Renfe and Israel Railways (ISR) signed a Framework Agreement for consultancy services, through which Renfe may provide ISR with these types of services ranging from the operation to the maintenance of trains, including the sales and IT areas.

TRAINING PROGRAMMES AND SEMINARS

During 2015, Renfe’s International Department managed the contracting, by third party companies, of training programmes and seminars. These programmes involve the International Department itself along with experts from other areas of the company and other companies in the group, depending on the topic covered in the training.

Renfe has given the following courses during the year:

$ Seminar on “the Spanish experience of passenger traffic innovations and high-speed train maintenance”, aimed at employees of Russian Railways (RZD).


$ Seminar on the development of high speed rail in Spain to members of JREA (Japan Railway Engineers Association).

$ Seminar on ERTMS and implementation of electrification systems to employees of Israel Railways (ISR).

$ Seminar to employees of the Korean operator Korail on the maintenance of high speed trains.

$ Seminar given in Ukraine on dual gauge track solutions.

$ Training Day and technical visit to the driving simulator of a Ukrainian delegation, within the twinning programme with this country.

$ Third edition of Level 2 training on high speed systems, given in Madrid and organised by the Railways Foundation and UIC.

PROJECTS FOR THE SALE OF SECOND-HAND MATERIAL

During 2015, the International Department established the contacts necessary with other rail companies for the sale or lease of surplus second-hand material. Highlights among these actions are the following:

$ Government of Madagascar. Talks began on the sale of goods wagons, locomotives and diesel trains. The Spanish Ministry of Development and the Ministry of Transport and Meteorology of the Republic of Madagascar signed a Memorandum of Understanding (MoU) in the area of rail transport.

$ Italian operators. Renfe opened talks with private Italian operators INRail, AWRail and Arriva Italia for the lease or sale of overnight material for passenger transportation.

INTERNATIONAL ENVIRONMENT

Throughout 2015, the European legislative processes leading to the approval of the Fourth Railway Package continued. These provisions are divided into three pillars: Technical Pillar, Market Pillar and Governance.

This process began in January 2013 when the European Commission approved its proposed Fourth Railway Package.

On 10 December 2015, the European Council adopted its position on first reading on the rail security and interoperability directives, and the regulation on the European Railway Agency (ERA). Overall, these legislative acts constitute the Technical Pillar of the fourth railway package. To conclude the procedure, these still need to be formally approved by the European Parliament on second reading. It is hoped that the

technical pillar will be finally approved during the first half of 2016. This pillar has a technical component relating to safety, rail interoperability and the reinforcement of the functions of the European Railway Agency, all of this with a view to establishing a single European railway area and liberalising the rail market.

With regard to the Market Pillar and Governance, this legislative package includes, among other measures, the opening up of domestic passenger rail transport services to competition and new rules relating to the governance models, with a greater separation between the managers of the infrastructure and the rail operators.

This European environment clearly demonstrates Renfe’s need to continue and redouble its efforts to prepare for the opening of the railway markets and the consequent increased competition.

Rail projects and developments continue to occur outside the EU, as do tenders, and these create new internationalisation opportunities for Renfe, in a very competitive environment and in a framework of slow-down and greater or lesser economic and financial difficulties.

RENFE’S POLICY AND ACTIVITY

Renfe has maintained the aspects that have defined its international policy in recent years:

$ International services have continued to be promoted through partnerships with other railway companies within the EU, especially with France and Portugal.

$ The presence and influence of Renfe in the different international rail organisations has been maintained and strengthened, the primary objective being to protect the Company’s interests abroad.

$ Renfe’s participation has also been strengthened in cooperation projects carried out in different countries, the marketing of Renfe’s surplus material, training courses, technical assistance and consultancy services, as well as the organisation of seminars and visits.

EUROPEAN UNION

Renfe continues exploring opportunities for participation in future tenders for domestic passenger services in countries forming part of the EU, which offer profitable businesses.

Renfe has continued strengthening its alliance with the French public operator SNCF, especially in the area of the high-speed passenger service that connects various cities in both countries, which began in 2013.


The international traffic of goods from and to the Port of Barcelona has also increased, especially container goods, through the Figueras-Perpignan connection.

Renfe has also continued its collaboration with the Portuguese Railways (CP) to improve the international passenger services between the two countries (Madrid-Lisbon and Vigo-Porto).

Renfe also continues to lease various rolling stock items owned by Viajeros to CP. In accordance with the established agreements, Renfe has also continued offering the services contracted for the CP train called “Surexpreso”, which connects Lisbon with Hendaye.

REST OF THE WORLD

Renfe is also actively working to internationalise outside of Europe. The main geographic areas

where its activity is focused, with different degrees of intensity, are: Latin America, USA, Middle East, South-east Asia and the Persian Gulf (especially Saudi Arabia). All these initiatives require long periods of time, from the activity beginning to them resulting in specific actions.

In this area, we can highlight the Cooperation Agreement signed with Ferrocarriles de Paraguay S.A. and the renewal, for a two-year period, of the Cooperation Agreement with Turkish Railways (TCDD).

COOPERATION WITH RAIL COMPANIES

In addition to the aforementioned agreements with rail companies in neighbouring countries, France and Portugal, Renfe maintains a cooperative relationship with rail companies in various countries throughout the world. Included among the agreements and contracts in force during 2015 are the following:


Collaboration agreements in force in 2015

$ Framework Agreement with Israel Railways (ISR) for the provision of consultancy services.

$ Cooperation Agreement between Renfe and Railways Lines of the Turkish state (TCDD).

$ Cooperation Agreement with MIIT, Moscow State University of Transport.

$ Cooperation Agreement between West Japan Railway Company, Renfe and Adif.

$ Cooperation Agreement between Indian Railways, Renfe and Adif.

$ Cooperation Agreement between Renfe and Ferrocarriles del Ecuador Empresa Pública (FEEP).

$ Cooperation Agreement between Renfe Operadora and the State Railway Administration in Uruguay (AFE).

$ Cooperation Agreement between Renfe and Ferrocarriles de Paraguay S.A.

$ Collaboration Agreement between the Spanish Association of Manufacturers, Exporters of Material, Equipment and Rail Services (MAFEX) and Renfe for carrying out activities involving

training and the promotion of the Spanish railway sector abroad.

$ Agreement between the International and Ibero-American Foundation for Administration and Public Policies (FIIAPP) and Renfe, for participation in the Project for Twinning with Ukraine.

VISITS FROM FOREIGN DELEGATIONS

Throughout 2015, Renfe has organised or participated in the programmes of visits to Spain by various foreign delegations, from both the public and private rail sector and governmental bodies.

Included among the main governmental visits received in 2015 it is worth mentioning those made by the Secretary of State for Communication and Transport of the Government of Mexico; the Association of Southeast Asian Countries (ASEAN); the Ministry of the Interior and Transport of Argentina; the Ministry of Transport of Egypt, with which the Ministry of Development signed a collaboration agreement; a Delegation of MPs from India and another from Australia; a Delegation from


the Gulf Cooperation Council; the Ministry of Transport of the United Kingdom; the Ministry of Public Works of Jordan, with which the Spanish Ministry of Development also signed a collaboration agreement; the Ministry of Transport of Abu Dhabi; a delegation from SICA (Central American Integration System), which includes eight countries from that geographic area; the Ministry of Transport and the Environment of Holland; and the Ministry of Infrastructures of Ukraine, through the European Union TAJEX programme.

With regard to the visits made by rail transport authorities, some highlights include the American delegations from CHSRA (California High Speed Rail Authority) and TxHSR (Texas High Speed Rail), entities that are responsible for developing the high-speed projects in their respective States.

It has also received a visit from British company HS2, responsible for the development of high speed rail in the United Kingdom.

OTHER ACTIVITIES

Renfe actively participated in the World Congress on High Speed Rail, held on this occasion in Tokyo (Japan), during the month of July.

Renfe has continued to participate in the NEC Partner Forum, organised by AMTRAK, which also involves other rail companies, both operators and infrastructure managers: ADIF, Network Rail (United Kingdom), Japan Rail, Korean Rail and HS-2 (United Kingdom).

The International Department has had one of its employees on secondment to the UIC since the beginning of the year. They are responsible for the Energy and CO

2 Project started by Unión Internacional

de Caminos de Hierro (International Iron Roads Union). The Spanish expert will remain with the UIC at its Paris headquarters until January 2017, when it is expected that the aforementioned project will be completed.


This is a transformation plan led by the chairman, Pablo Vázquez, designed with a focus on business profitability and improving the quality of the service Renfe offers to the customer. It was also designed to enhance the Renfe brand, both inside and outside the company.

The objective of the plan has been to improve the Renfe Group’s competitiveness, sustainability and efficiency in preparation for a liberalised environment.

In terms of profitability, the objective has been to increase revenue without forgetting overall economic earnings, seeking a better balance. It has also worked on improving the company’s efficiency, optimising resources, generating synergies and increasing productivity.

With regard to the customer, the +Renfe plan includes an improvement to perceived quality, which helps consolidate the growth of demand. It is about increasing customer satisfaction by offering services that are innovative, safe, competitive, high quality and environmentally-friendly.

These two strategic objectives have been structured around three pillars (improving revenue, efficiency and quality) and eight programmes (commercial action for customers, new revenue, efficiency in human resources,

in processes, cost reduction, quality in the service, for the customer and on the Internet), which have been implemented through 50+1 key projects for all areas of the company.

Actions Performed and Results

RENFE VIAJEROS

Commercial Strategy and Customers

$ Development of a new commercial plan that involves an extensive updating of the commercial offer of Renfe Viajeros.

$ Increased occupancy of trains. The occupancy of the commercial services in 2015 was 68%, 4.6% higher than in the previous year.

$ Launch of the new loyalty programme in June 2015, called +Renfe. Around 100,000 new registrations were recorded as of 31 December.

$ New Commercial Website that includes the three-step purchase system.

$ Refurbishment of 22 Cercanías commuter stations. $ Opening of the Cercanías Madrid Twitter channel and revamp of the Rodalies Catalunya Twitter channel.

$ Installation of the first self-service check-in devices (they allow passengers to check-in themselves).

03 +RENFE PLAN

48 | +RENFE PLAN

$ Launch of the first edition of the new Renfe magazine (presented at FITUR).

$ Opening of new channels of advertising revenue from assets, which is expected to be able to generate €1.5 million in its first year.

$ Implementation of the anti-fraud plan, which is estimated to have had a positive impact of €0.5 million in 2015 and this will continue growing in future years.

60,000

120,000

90,000

105,000

75,000

-0.6%

PSO trains-km (thousands)

2014 2015

107,334 106,648

50,000

66,000

58,000

62,000

54,000

-4.7%

Commercial Services trains-km (thousands)

2014 2015

64,148

61,125

500

800

700

600

+1.3%

710 719

PSO (Public Service Offer) traffic revenue(thousands of €)

2014 2015

1,000

1,400

1,300

1,200

1,100

+5.5%1,231

Traffic revenue from Commercial Services(thousands of €)

1,300

2014 2015

6

7

6.75

6.50

6.25

+0.8%

Average perception of PSO traffic(€ cents/passenger-km)

2014 2015

6.66.7

7

11

10

9

8

+1.8%

Average perception of Commercial Servicestraffic (€ cents/passenger-km)

2014 2015

9.47 9.64

Operations and Production

$ Estimation of the fleet requirements and approval of a Fleet Plan in Commercial Services. The tender for the purchase of 30 high speed, large capacity UIC-gauge trains was approved at the Board of Directors of Renfe on 10 November.

$ Launch of the first stations with Wi-Fi (Plaza Cataluña and Getafe Centro).

$ Advanced implementation of the 22 security measures established by the Ministry of Development.


RENFE MERCANCÍAS

$ Development of the Viability Plan for Renfe Mercancías.

$ Approval, by the Board of Directors of Renfe, of the incorporation of an Industrial Partner.

$ Transfer of assets to Rosco, with a net profit of €6.5 million for Mercancías.

$ The productivity of train drivers has increased to reach an average of 150 minutes of driving per day per driver.

$ The Mercancías Scrapping Plan has been finalised which, as well as reducing the costs deriving from their ownership, has generated revenue of €1.7 million (of which €1.1 million was obtained in 2015).

RENFE FABRICACIÓN Y MANTENIMIENTO-40

0

-10

-20

-30

-71.3%

-33.8

-9.7

EBITDA (millions of €)

2014 2015

130

160

150

140

+9.5%137.4

150.4

Driver Productivity (minutes)

2014 2015

-80

0

-20

-40

-60

-31.2%

-57.7

-39.7

Profit/Loss (millions of €)

2014 2015

Revenue (millions of €) (Other) (Traffic)

2014 2015

200

270

242

256

228

214

-3.7%

259.8250.2

249.0

10.8

11.0

232.1

Other

Other+1.5%

Other

-6.8%Traffic

Traffic

Traffic

50 | +RENFE PLAN

$ Completion of approval as an Entity in Charge of Maintenance.

$ Development of the Specialisation Plan for Fabricación y Mantenimiento.

$ Implementation and start of the new Comprehensive Maintenance Fee model (CIM) between Fabricación y Mantenimiento and the Viajeros and Mercancías companies, to achieve an assignment of costs accrued.

$ Improvements in material that is more accessible, refurbished, sockets, cleaning, etc.

$ Establishment of a new customer segmentation and relations model.

RENFE ALQUILER

97%

100%

99%

98%

+0.2%

99.83% 99.99%

Availability - AV

2014 2015

97%

100%

99%

98%

+1.1%97.95%

99.00%

Availability - High Speed

2014 2015

200

340

305

270

235

+5.3%

295.0310.8

Integria Revenue (millions of €)

2014 2015

0

28

21

14

7

+26.9%

18.1

23.0

Adjusted EBITDA (millions of €)

2014 2015


$ The first contract for the lease of locomotives to third parties was finalised.

$ Entry into a new market segment through the marketing of the first Mercancías wagons.

$ Incorporation of 7 S/592.2 Iberian gauge diesel trains and 1,709 wagons of various series and Iberian gauge.

$ Revenue of €17.4 million at the close of 2015, of which €7.1 million is from the lease of material to third parties.

RENFE OPERADORA (EPE)

0

8

6

4

2

+500%

1

6

Third Party Lease Contracts

2014 2015

0

20

15

10

5

+45.9%11.9

17.4

Revenue (millions of €)

2014 2015

0

15

12

9

6

3

+24.3%

9.912.3

EBITDA (millions of €)

2014 2015

Human Resources

$ Design and approval of the new voluntary redundancy plan for the Renfe Group, and agreement of the new Collective Bargaining Agreement for the workforce.

$ Implementation of the Professional Careers Plan.

Economic-Financial

$ As at 31 December 2015, €182 million of debt had been collected; which represents 92% of the debt pending collection in 2014.

$ Approval of the Manual of Best Practices for the commercial management of customers and organisational proposal for the management of collections within the Renfe Group (reduce non-payments and procedure to reduce collection costs and periods).

Efficiency and Processes

$ Agreement with Adif for the Sustainability and Energy Efficiency of the Railway System, aligning strategies and planning actions and investments including the agreement on the distribution of energy returned to the network (50% Renfe - 50% Adif), the standardisation of all electricity meters and charging for actual energy used.

$ Definition of the process map for the Group and its Companies.

$ Design of a procurement and investment process with a target 90-day purchase period from when the requirement arises.

$ New Register of Suppliers in SAP that facilitates the subscription of participating companies and the internal management of suppliers.

Information Technologies

$ Approval of the Group’s new Information Systems Governance model, with the following results: Identify economic efficiency plans in the reduction of spending and in revenue opportunities, establishing the responsibilities of the corporation and the companies, use technology to meet the objectives of the businesses and adapt the services to their needs, create incentives with ANS (bonuses/penalties), new workplace management models, payment for use and outsourcing, and design a new ICT Security Plan, identifying the main technological risks promoting protection measures.


04 OUR COMMITMENTS

Commitment to quality

One of the strategic objectives of the +Renfe transformation plan is improving perceived quality and profitability, transforming the company internally from within. Renfe’s management aims to achieve high standards of excellence, to raise the quality standards perceived by customers, providing products and services suited to their needs and desires, working on critical aspects such as punctuality, accessibility, sales channel, improved material and safety, as well as on others detected through the dialogue channels established with customers

Quality as a pillar of the service

Renfe understands quality in an integrated and cross-cutting way, as a process of continuous improvement to the products and services offered to passengers, in order to meet their needs and expectations through knowledge of the current and potential customers, achieving greater consistency and competitiveness in the domestic and international markets.

54 | OUR COMMITMENTS

Renfe Viajeros

Annual surveys are carried out in the different services: High Speed-Long Distance, Cercanías Commuter service, Conventional Medium Distance and High Speed-Medium Distance.

These surveys are designed to identify how the service is rated by our customers and obtain the rating for a series of indicators: Customer Experience Indicator (NPS), Perceived Quality Index (IQP), Satisfaction Index (ISP), Recommendation Index, allowing an evolutionary analysis of the quality of the service provided and its recommendation by users.

Perceived quality indicators

The indicator for the overall satisfaction of customers and users of Viajeros is 7.56.

2015 2014

High Speed-Long Distance 7.80 7.78

High Speed-Medium Distance 7.87 7.87


Rodalies Catalunya* 7.38 7.21

Cercanías Madrid 6.22 6.60

Cercanías Asturias 7.41 7.66

Cercanías Bilbao 6.79 6.81

Cercanías Cádiz 7.19 7.39

Cercanías Málaga 7.84 7.71

Cercanías Murcia-Alicante 7.06 6.73

Cercanías San Sebastián 7.34 7.14

Cercanías Santander 7.37 7.65

Cercanías Sevilla 6.79 6.82

Cercanías Valencia 6.95 6.91

Cercanías Zaragoza 7.16 7.45

Cercanías AM 6.80 6.62*Only Barcelona hub

Certified activities of Renfe Viajeros

UNE-EN ISO 9001:2008 CERTIFICATIONS

$ The transport of passengers and provision of the service across the Madrid-Seville and Madrid-Malaga high-speed lines, as well as the monitoring and control of the contracted activities.

$ Rail passenger transport service in the Cercanías hub around Málaga.

$ Rail passenger transport service in the Cercanías hub around Asturias.

$ Rail passenger transport service on the Metric Gauge Cercanías lines: Bilbao-Balmaseda; Santander-Liérganes; Oviedo-Infiesto; Gijón-Laviana; Oviedo-San Esteban de Pravia; Santander-Cabezón de la Sal; Ferrol-Ortigueira; León-Cistierna-Guardo; Gijón-Cudillero; Caudal-Aller; and the Customer Assistance service.

$ Planning and provision of the travel, accommodation, catering and leisure services on the Tourist Trains of Renfe Viajeros SA: “Transcantábrico Clásico”; “Transcantábrico Gran Lujo”; “Expreso de La Robla” and “Al Andalus”.

$ AENOR certification company: Certificate (scope) Management of Cercanías Catalonia (Renfe Viajeros S.A.) “The transportation of passengers and provision of the Cercanías Barcelona, Girona and Tarragona commuter service, and the regional services of Rodalies de Catalunya” (validity of last issuance 11-02-2016, ends 03-02-2017).

UNE-EN ISO 14001:2004 CERTIFICATION

$ The transportation of passengers and provision of the service across the Madrid-Seville and Madrid-Malaga high-speed lines, as well as the monitoring and control of the contracted activities.

$ UNE 182001:2008/1M:2010 Certification on the Q of Tourism Quality; Tourist Hotels and Apartments for their official category and/or classification. (Adapted to Tourist Trains)

$ Planning and provision of the travel, accommodation, catering and leisure services on the Tourist Trains of Renfe Viajeros SA: “Transcantábrico Clásico”; “Transcantábrico Gran Lujo”; “Al Andalus”; “Expreso de La Robla”.

$ AENOR certification company: Certificate (scope) Management of Cercanías Catalonia (Renfe Viajeros S.A.) “The transportation of passengers and provision of the regional services of Rodalies de Catalunya” (validity of last issuance 22-02-2016, ends 03-02-2017).

CERTIFICATION OF UNIVERSAL ACCESSIBILITY UNE 170001-2:2007

ATENDO Renfe Service: The transit of people with a disability and/or reduced mobility from/to the meeting


point at the origin and destination railway stations, which includes the access, journey and accommodation in the embarkation/disembarkation in relation to the allocated seat, travelling on Renfe trains between the stations contained in the annex of addresses.

SERVICE CHARTERS UNE 93200:2008

$ Valencia Service Charter, for the hub of Valencia Cercanías.

$ Bilbao Service Charter, for the hub of Bilbao Cercanías.

$ Asturias Service Charter, for the hub of Asturias and Cantabria Cercanías.

$ Madrid Service Charter, for the hub of Madrid Cercanías.

$ Zaragoza Service Charter, for the hub of Zaragoza Cercanías.

SERVICE CERTIFICATES (UNE-EN 13816:2003). PUBLIC PASSENGER TRANSPORTATION

$ Valencia Cercanías hub. Lines: C-1 Valencia Nord – Gandía. C-2 Valencia Nord – Xátiva/Moixent. C-6 Valencia Nord - Castellón Plana

$ Bilbao Cercanías hub. Lines: C-1 Bilbao Abando – Santurtzi. C-2 Bilbao Abando – Muskiz. C-3 Bilbao Abando – Orduña.

$ Asturias Cercanías hub. Lines: C-1 Gijón/Oviedo - Puente de los Fierros. C-2 Oviedo - El Entrego. C-3 Llamaquique/Oviedo - Avilés-San Juan de Nieva.

$ Zaragoza Cercanías hub. Line: C-1 Casetas - Miraflores.

$ Madrid Cercanías hub. Lines: C-1 Príncipe Pio-Atocha-Recoletos-Aeropuerto T4; C-2 Guadalajara-Alcalá de Henares-Atocha-Chamartín; C-3 Aranjuez-Atocha-Sol-Chamartín-El Escorial; C-4 Parla-Atocha-Chamartín-Cantoblanco-Colmenar Viejo / C-4 Parla-Atocha-Chamartín-Cantoblanco-Alcobendas-San Sebastián de los Reyes; C-5 Móstoles El Soto-Atocha-Fuenlabrada-Humanes; C-7 Alcalá de Henares-Atocha-Chamartín-P.Pío-Atocha-Chamartín-Fuente de La Mora; C-8 Atocha-Chamartín-Villalba-Cercedilla / C-8 Atocha-Chamartín-Villalba-El Escorial; C-9 Cercedilla-Cotos; C-10 Villalba-P.Pío-Atocha-Chamartín-Fuente de La Mora.

MADRID EXCELENTE

“Madrid Excelente” guarantee seal, Madrid Cercanías.

Strategy Department. Management of the Information and Communications Technology Department

UNE-EN ISO 9001:2008 CERTIFICATION

$ Management of the central computing equipment. The launch of centralised applications and monitoring of the central systems. (Use of Central Computers).

$ The user assistance services for the management of requests, incidents and technical assistance for computer systems. (Monitoring of Faults/User Assistance Centre).


UNE-EN ISO 9001:2008 CERTIFICATION (COMPANIES AND SCOPE)

$ LOGIRAIL S.A. Provision of logistics and modal transfer services, related to the railway, in land terminals (areas of logistics activity, dry ports, logistics platforms, seaports, logistics centres, modal interchanges, rail terminals and intermediate rail facilities, customer facilities and similar).

$ PECOVASA Renfe Mercancías S.A. Comprehensive Logistics Operator specialised in the rail transportation of vehicles and in the management of logistics centres for vehicles. Management of the logistics centre for vehicles, loading and loading of vehicles by rail, storage of vehicles. Management of the rail transport of vehicles and associated activities.

Renfe Mercancías


2015 2014

Mercancías 6.84 7.15

Certified activities of Renfe Mercancías

INTEGRATED UNE-EN ISO 9001:2008 AND UNE-EN ISO 14001:2004 CERTIFICATION (COMPANY AND SCOPE)

RENFE Mercancías, S.A.: Transportation by rail, in a complete wagon and container, of iron and steel goods, vehicles, bulk goods, conventional goods, perishable goods, hazardous goods, salt, wood, paper and military transport.


Renfe Mantenimiento


2015 2014

Fabricación y Mantenimiento 6.02 5.9

Certified activities of Renfe Mantenimiento

UNE-EN ISO 9001:2008 CERTIFICATIONS

The unified certification of Renfe Fabricación y Mantenimiento S.A. has been renewed, for all its maintenance centres, with the AENOR ER-0505/1997 certificate with the following scope:

$ Manufacturing, transformations, painting and modifications; comprehensive maintenance (preventative, corrective, safety visits/inspections, online technical assistance, accident assistance); repair and testing of components of the sub-systems of railway vehicles.

$ Management of construction projects for workshops and facilities for the maintenance of railway vehicles.

$ Repair and testing of rotary electric machines and thermal motors, mechanical equipment and components; calibration of measurement and testing equipment; and the production of self-adhesive signs related to the rail sector.

$ Technical Consultancy in Rail Maintenance Engineering. $ Installation of the 3D braking system and automatic breaking for trains in metric-gauge wagons.

ISO 14001/2004 CERTIFICATION

In 2015, 11 more centres were incorporated under the scope of the environmental certification of Renfe Fabricación y Mantenimiento, in accordance with ISO Standard 14001/2004, making a total of 40 maintenance centres certified by Aenor, with the Company Register GA-2001/0065.

CERTIFICATION AS AN ENTITY IN CHARGE OF MAINTENANCE

Certification from the Ministry of Development, as an Entity in Charge of Maintenance, on behalf of Renfe Fabricación y Mantenimiento, S.A. All wagons dedicated to the transportation of goods must have an associated Entity in Charge of Maintenance in order to be able to travel on a European rail network.


Renfe provides rail transport services, driven by respect for the parameters of quality, accessibility, efficiency, sustainability and environmental protection, all with a clear vocation to meet the needs of the customers before, during and after the journey. These are the principles that mark out the actions of the company as being socially responsible.

Concept of comfort

Nowadays, customers have a more global idea of comfort on a journey, which is not limited to acoustic, dynamic and climatic criteria but instead takes into account aspects related to the emotional welfare of people, including services such as catering, the options to use the interior space of the train and carry out various activities on-board, new technologies, entertainment, etc. Such features make the customers feel relaxed and safe during the journey.

Product Delay Refund commitment

High Speed Trains Madrid - Seville More than 5 minutes 100% refund

All other AVE (High Speed) and Avant trainsMore than 15 minutes 50% refund

More than 30 minutes 100% refund

Aliva, Euromed and AV City trains




Talgo, Altaria, Alvia, Intercity (Long Distance), Regional Express and Regional Trains




Medium Distance and Intercity (Medium Distance) Trains




Trenhotel TrainsMore than 60 minutes 50% refund


Customer commitment

Inside the trains, passengers will find extremely comfortable sliding seats, 17-inch monitors, folding tables and armrests, luggage racks, sockets in each seat, lights for reading, footrests, places to secure bicycles and a new type of coat stand and baby change facilities, among other equipment.

Voluntary punctuality commitment

Punctuality is one of Renfe’s hallmarks. The financial compensation policy established by Renfe exceeds that required by legislation on the matter and is positioned as one of the most ambitious in Europe.


INTEGRATED TICKETS

The following compensation will apply for delays in the passenger’s arrival time at the final destination.

The connections made with Cercanías or Feve trains will not be subject to the Voluntary Punctuality Commitment,


Link for high speed combinations (AVE+AVANT, AVANT+AVE, AVE+AVE):



Connection for combinations of all other productsMore than 30 minutes 50% refund


Compensation for delay


Cercanías and Rodalies operated by the Generalitat de Catalunya More than 15 minutes

Receive a Devolució Xpress transport ticket for a delay of more than 15 minutes in the time of arrival at the destina-tion, provided that the delay is attributable to the operations of the railway. Can be used for one month for the same journey and train category as the original ticket.

Cercanías and RegionalMore than 30 minutes 50% refund


PUNCTUALITY INDICATORS

Along with the punctuality commitment, Renfe has a process of continuous improvement in the efficiency of its train routes, with the intention being to reduce the journey time.

% 2015 2014

High Speed-Long Distance 80.3 80.84

AVE 85.7 86.90

Long Distance 74.1 73.61


Conventional 74.05 77.04

Avant 93.99 94.77

Metric gauge 68.9 60.13

Metric Gauge Network

FEVE Medium Distance 68.9 60.13

FEVE Cercanías 92.9 92.97

and the compensation established in the Regulations of the Rail Sector Law will apply in the event of a delay in the arrival time at the destination.

% 2015 2014

Cercanías Commuter Hubs

Asturias 98.65 98.97

Barcelona 95.0 93.96

Bilbao 97.81 98.70

Cádiz 98.90 98.50

Madrid 97.32 97.77

Málaga 99.29 99.47

Murcia - Alicante 92.85 94.75

Santander 96.16 97.61

San Sebastián 96.07 96.55

Sevilla 95.19 97.51

Valencia 94.67 95.21

Zaragoza 98.87 98.98


Added value services for customers

UNACCOMPANIED CHILDREN SERVICE

This service must be requested and contracted a minimum of 48 hours before the train departs and is available for children from 6 to 13 years of age travelling alone in the first class area of most Alteria, Alvia, AVE and Euromed trains.

Ground-handling staff and on-board crew are involved in transferring the child so that the service is satisfactorily provided to the customer.

Number of accompaniment services

Product 2015 2014

AVE 15,033 13,732

Alvia 3,182 3,144

Altaria 546 480

Euromed 1,771 1,685

Total 20,532 19,041

DIVERSITY OF MENUS FOR PASSENGERS

The catering services provided by Renfe on-board the High Speed and Long Distance trains include an extensive variety of menus to meet the specific needs and diversity of our customers. The offer of special menus includes vegetarian, gluten-free, diabetic, Muslim, kosher, meat-free, salt-free, lactose-free and a children’s menu.

These special menus must be requested at the time of purchasing your ticket, at least 24 hours in advance.

During 2015, Renfe served over 1.9 million menus, of which around 30,600 were special menus.

SALAS CLUB

The objective of these lounges is to offer customers a service that makes the wait more comfortable and access to the train more secure. These lounges are air-conditioned, have areas for rest and reading, working, meetings, leisure and a self-service cafeteria, where they will be looked after by the ground service staff.


There are currently Sala Clubs at the stations in Albacete Los Llanos, Alicante Terminal, Barcelona-Sants, Camp de Tarragona, Córdoba Central, Girona, Lleida Pirineus, Madrid-Chamartín, Madrid-Puerta de Atocha (2), Málaga María Zambrano, Seville Santa Justa, Valencia-Joaquín Sorolla, Valladolid Campo Grande and Zaragoza-Delicias.

Number of users of the Sala Clubs

2015 2014

Number of users 826,424 657,536

COMPLEMENTARY PARKING

Renfe rewards its AVE-Long Distance, Avant and Conventional Medium Distance customers, who have purchased a ticket in Club, 1st Class, High Comfort Seat (Butaca Gran Confort), High Class Bed (cama Gran Clase) or 1st Class Bed, with 24 or 48 hours of complementary parking at both the origin and destination stations, for both single and return tickets respectively.

This service can also be used by customers who have a ticket purchased with a 1st Class AVE Pass, regardless of the class of the ticket, and the customers who hold a valid +Renfe Plata, +Renfe Oro or +Renfe Premium Card with an AVE, Long Distance or Avant ticket of any class and tariff, but the number of the card must be printed on the ticket.

AGREEMENTS WITH TRADE FAIRS AND CONFERENCES

In order to support business, Renfe offers a 30% discount on their journeys to all participants of trade fairs and conferences of more than 75 people that have requested this service.

Operations carried out for conferences

2015 2014

Number of passengers 222,131 120,478

Number of Trade Fairs 1,573 1,439

LAST MINUTE POINTS

These are information points provided in the boarding area of the stations of Barcelona Sants and Madrid Puerta de Atocha, which allow us to quickly manage changes for our AVE/Long Distance customers. Their main duties are dealing with changes to trains, day and class; managing cancellations, missed trains and rises in the general tariff; and they also perform tasks related to information, guidance and the promotion of Renfe’s commercial products.


The safety of customers is the foundation of an efficient and high quality service, this being understood to refer to safety in circulation, the safety of people and property, self-protection and the health of employees.

Safety in circulation forms part of the company’s mission under a comprehensive concept that involves four aspects: technology, the human factor, legislation and enhancing the culture of Safety via Return on Experience (REX).

The Safety Management System is governed through different bodies with the mission of ensuring and monitoring the proper operation of the system and enabling the participation of people, facilitating coordination between the different services involved in the planning, control and management of rail transportation.

The company prepares an Annual Safety Plan which contains the Operating Targets and Safety Targets, both common and Renfe’s own, whose compliance is verified through the Safety Indicators.

Also included in its Action Programme are the inspection and management actions aimed at consolidating the levels achieved and continuous improvement.

2015 Safety in Circulation Indicators

In terms of compliance with the Common Safety Targets established for 2015, the results are below

the threshold values for severe train and manoeuvre accidents. In the case of accidents caused to persons by moving rolling stock, there have been 3 accidents when the target set was none, although they are not considered significant accidents.

The table summarising compliance with the Safety Targets, for the Iberian gauge, UIC gauge and Metric gauge lines, is as follows:

Commitment to safety

Type of Accident2015 Frequency Rate Target

Admissible Risk RateActual Frequency

Rate 2015Actual Frequency

Rate 2014

Severe 0.000 0.000 0.000

Train 0.022 0.021 0.021

Manoeuvre 0.046 0.042 0.042

Persons 0.000 0.016 0.005


Acceptable Risk Index

This index is specific to Renfe and has been developed to collect and record precursor events, or in other words, those with the potential to cause accidents had they occurred under different circumstances. These precursor events recorded in 2015 correspond to near misses, signal overruns, speeding, unauthorised movement, decompositions of cargo, vehicle faults, overheated axles or wheels, outbreak of fire on trains and material spillages.

It also includes the events that effectively occurred, all in relation to the annual number of train-km of Renfe’s trains in its operations.

This index supports the preventative management of safety, from the approach of the potential risk value, in line with mandatory Regulation 402/2013 of the European Commission referring to risk assessment and valuation.

The target value of this indicator for 2015 was set at 0.353, closing the year with a value of 0.319, or in other words, below the expected target value.

Acceptable Risk Index Target

RealFrequency

Index

2015 0.353 0.319

2014 0.460 0.327

Improvements in the commitment to safety 2015

During the year 2015 a series of activities and procedures have been implemented in relation to the Safety Certificates of Renfe Mercancías and Renfe Viajeros and with the Programme for the implementation of the new Railway Circulation Regulations (RCR).

MANAGEMENT SYSTEM REVIEW

A fundamental activity launched in the previous year was the review of the Safety Management System (SMS), in accordance with the new organisation of Renfe Operadora into four companies. The adaptation of the SMS of Renfe Operadora to the activities of the new Renfe Viajeros and Renfe Mercancías railway companies

has been carried out throughout 2015. This task has involved the Security departments of both companies and the Safety in Circulation Division of the Group.

SAFETY CERTIFICATES

During 2015 Renfe Operadora applied its own system of Safety Management in the transport of passengers and, in Renfe Mercancías, until 28 July, the date on which this company obtained its Safety Certificate.

During 2015, work has mainly been focussed on avoiding situations of risk, due to the transfer of safety responsibilities, during this phase of transition from a common SMS to the two respective SMS of each of the two new subsidiaries.

IMPLEMENTATION OF THE NEW RCR

Once the new RCR was approved, working groups were established to begin the process of preparing the Book of Regulations for Drivers on the Iberian Gauge, UIC Gauge and Metric Gauge Network, as well as the Operational Personnel Regulations Book. These working groups were made up of personnel from Renfe Mercancías, Renfe Viajeros, Renfe Fabricación y Mantenimiento, the Professional Technical School of Railway Training and the Safety in Circulation Division of the Group. A specific Training Plan has been developed and courses have started to be given for driving personnel.

Operational Targets 2015

Within the annual Renfe Safety Plan are Operational Targets, aimed at improving the management of safety and the Safety Management System (SMS).

A set of Operational Targets was established in 2015 to reduce accidents and incidents caused by human and technical failure, through the implementation of management measures and the development of new technologies, especially in the field of rail vehicle driving, such as:

TECHNOLOGICAL INNOVATIONS

The positive trend in the number of train-km performed under the protection of high performance cab signalling equipment (ERTMS, LZB) has been maintained. In 2015


the number of train-km under the protection of this equipment was 29.39% of the annual train-km for Renfe Operadora (including metric gauge).

The replacement of Analog Asfa equipment with Asfa Digital equipment in the Renfe Operadora fleet has continued during the year. During the year, 64 more pieces of equipment were installed, meaning that 1,448 vehicles are now equipped with Asfa Digital. The implementation of this measure has contributed, very significantly, to the reduction of signal overruns and the overall improvement of safety.

The implementation of the DASS Device (Exit Signal Warning Device) continued to reinforce the verification by the driver of the indication of the exit signals at commuter stations. As of 31 December 2015, this has been installed in 238 commuter trains.

A “Tablet-Train” Project has been started to give all drivers access to communication and information, with the aim of facilitating management.

An Automated Log Analysis Program (AIR) has been developed that is capable of analysing the Legal Safety Recorders (RJS) independent of the model in question and applying predefined search patterns, facilitating the reading of the recorded data.

SAFETY MONITORING

In order to monitor compliance with the SMS implemented in Renfe, the Safety in Circulation Division has launched an Audit Plan for the Management Centres, Driving Groups and Training Departments of the companies Renfe Viajeros and Renfe Mercancías, carrying out 48 System Audits for the purpose of proposing improvements in the coordination of the Group’s rail activities, as well as harmonising the safety framework of the companies and the Group as a whole.

An Internal Audit was also performed on the Renfe Operadora Safety Management System, in which the appropriate level of compliance with the Safety Management System was verified.

BEST PRACTICE SHEETS AND POINTS OF SPECIAL ATTENTION IN THE INFRASTRUCTURE SHEETS

As of 31 December 2015, 13 Best Practice sheets and more than one hundred sheets on Points of Special Attention in the Infrastructure have been published.

The purpose of these sheets is to inform the driving staff about those elements of the routes taken by the trains that require greater knowledge of the particular features of the infrastructure or more attention when they are passed, to prevent potential risks during the driving and to be a complement to the training in the infrastructure qualifications of the drivers.

COMPUTER APPLICATIONS TO IMPROVE MANAGEMENT

The Asegur@ Platform, to inform the organisation about safety incidents, has continued to be developed through the implementation of new evolutions.

Improvements in the commitment to safety 2016

The most important actions for 2016 are:

$ Common Security Targets for the year 2016 have been drawn up from the average of the last three years.

$ Implementation of the RCR and the new functions that will be transferred to the Operational areas and Management Centres of the Railway Companies, functions that the Command Posts of the Infrastructure Administrators will stop performing.

$ Actions to comply with the Recommendations of the CIAF (Rail Accident Investigation Commission). Follow-up on compliance with the safety measures proposed by the CIAF, resulting from the analysis and study of the causes of accidents and precursor events occurring within the General Interest Railway Network (RFIG), for the prevention and improvement of Safety in the Circulation of Trains and Manoeuvres.

$ Supervision of the safety of the Renfe Group. The most relevant targets pursued in the implementation of Regulation EU/1078/2012 on Safety Monitoring and Surveillance are as follows:

$ Audit compliance with the recommendations published by the National Safety Authorities, National Investigation Bodies or any other relevant entity.

$ Harmonise the safety framework of the companies and the Group as a whole, through the supervision and verification of the Companies’ SMS.


$ Reinforce monitoring and supervisory actions for the safety-related activities carried out by the companies.

$ Promote the prevention of human and technical failure within the Group.

$ Contribute to the maintenance of the established safety levels and to the achievement of the safety objectives established in the Renfe Group.

$ Technological innovations: The implementation of measures for management and the development of new technologies will continue, especially in the field of driving railway vehicles (ERTMS, DASS, Tablet-Train, etc.) in order to reduce accidents and incidents.

$ Learning from Experience: Work will continue on the analysis of accidents and incidents in the Participation Bodies, in the Training Forum and the preparation of alerts in the Safety tab of the Renfe Intranet, in order to learn from errors and strengthen the reliability of operations.

Public SafetyThe number of negative incidents in the Renfe Group during 2015 totalled 15,493, which represents a reduction of 9% on those taking place in 2014,

performing strongly against the goals set, since far from stabilising the numbers there has been a significant reduction.

This has been due to the fact that since the end of June 2015 the Ministry of the Interior, through the Secretariat of State for Security, has activated the Anti-Terrorism Prevention and Protection Plan, raising it to LEVEL 4, which entailed the intensification by the Renfe Group of the security measures and resources, and to the police forces implementing the permanent posting of officers in the stations with the greatest movement of travellers.

In trains, 6,644 negative incidents were recorded, 24.23% fewer than in the previous year (8,769). There were also 7,502 incidents in stations, which represents an increase of 16.98% over those in 2014 (6,413). For 2016, attempts will be made to stabilise the results in both areas: trains and stations.

As regards obstacles on the track, these have fallen by 16.34%. This is the third consecutive year in which these figures have fallen, since in 2013 there was a reduction of 28.19% (from 557 to 400) and in 2014 the equivalent figure was 306.


Incidents of anti-social behaviour detected in Renfe during 2015 were 15% higher than those seen in 2014 (9,694 instead of 8,462).

In terms of incidents requiring humanitarian aid and relief for travellers and employees, a total of 18,763 incidents were recorded in 2015, a decrease of 1.20% compared to the figure of 18,990 in 2014.

In 2015 there were 1,807 cases of graffiti, which is a decrease of 56% on the 4,102 seen in 2014. This important result is due to the pressure from the security measures and resources dedicated by the Department of Security at the Renfe Group, and to the consequences of the police and judicial pressure exerted on graffiti artists, on having specific legislation penalising such behaviour. In addition, the State Security Forces and Bodies have formed specialised groups dedicated to the investigation of the activities of graffiti groups involved in these activities.

The Renfe Group will continue to try and ensure that these activities are considered, by both the police and the legal system, as a crime against property, given the damage it causes to our rail interests. It also causes danger in terms of rail safety and the integrity of passengers as one of the methods systematically used by graffiti artists to stop the train is to activate the emergency brake. Indeed, during 2015 there was an increase of 23% in the use of this “modus operandi” compared to the previous year: in 2014 there were 115

cases of unjustified use of the emergency brake and in 2015 they were 142.

It has also achieved an improvement in the degree of safety for passengers and employees, since the total absolute number of general incidents was 31,027, when in 2014 this figure was 50,457. This represents a significant decrease of 38.51%.

This is due to the use of organisational measures adopted on the issue and the presence of surveillance personnel, the exhaustive supervision of action and inspection protocols and procedures, on the basis of the places of greater risk, and the intensification of the police presence in railways.

SELF-PROTECTION

As a result of the external legal audit carried out during the year 2014 in terms of self-protection in Renfe, in 2015 the Integral Self-Protection Plan project was developed, encompassed within the +Renfe Plan.

The basis of this project was the development of the Self-Protection Management System (SPMS), which is the framework for regulating the actions that, in terms of self-protection, are carried out in the Renfe Group, establishing the competencies and responsibilities of each of the Group companies and the Public Business Entity Renfe Operadora, as well as the governing bodies and the processes of the system. The SPMS has


been agreed between all parties (Renfe Operadora and companies).

Among the issues regulated by the SPMS, it is important to highlight the key areas of developing, implementing, applying and maintaining plans for self-protection, action, evacuation and rescue of train and emergency station plans, the training schedules in self-protection and the management of self-protection risks.

In addition, and after the approval of Royal Decree 627/2014, of 18 July, on assistance to the victims of rail accidents and their relatives, the Renfe Group has prepared the Plan of Assistance to the Victims of Rail Accidents and their Relatives. This was submitted to the Ministry of Development, which approved it on 15 June 2015.

This plan covers issues relating to the post-emergency situation, such as the creation of the Crisis Room and the Family Care Centres, the procedures allowing it to provide, to both relatives and victims, transportation, accommodation, support, financial assistance, psychological assistance and the storage, deposit, cleaning and return of personal effects.

During 2016 the implementation of both the Self-Protection Management System and the Plan of Assistance to the Victims of Rail Accidents and their Relatives will begin.

TRAINING ACTIVITY

Below are the figures on self-protection training in the business group for the year 2015:

2015 2014 % 2015/2014

Courses 962 575 67.3 %

Hours 22,663 14,501 56.3 %

Participants 3,979 2,211 80.0 %

In addition to internal training on self-protection, training sessions are also held with external bodies in order to promote collaboration with different institutions.

There is close collaboration with the Directorate General of Civil Protection and Emergencies which in 2015 has once again facilitated the offering of a Self-Protection and Emergency Management Course in Renfe and Adif, this year with the new feature of joint participation with the Administrator of Railway Infrastructures, Adif

In addition, it participated in two editions of the course on interventions related to hazardous goods organised by the Fire Extinguishing and Rescue Service at Malaga Council and designed for middle managers of the Fire Brigade in this locality.

For the future, the plan is to continue the process of collaboration and coordination with different Public Administrations, local, regional and state.


Commitment to innovation

Renfe’s innovation stems from the customers’ priorities, internal efficiency and competitiveness needs, and the convenience of exploring other possible business opportunities that contribute to increasing revenues and ensuring the sustainability of the company.

In 2015 the Renfe Group launched an innovative transformation plan, implemented with a view to business profitability and improving the quality of service offered to the customer. There has been a commitment to greater cross-cutting participation in the company, enhancing management through projects and processes, with the promotion of 51 strategic projects (+ Renfe plan) and the review and addition of procedures for the company’s strategic processes. As an example of +Renfe projects, it is worth mentioning the iCliente + project, which will allow Wi-Fi and digital content to be offered on high-speed trains and in Cercanías commuter train stations. With regard to processes, the review is highlighting numerous opportunities for innovation and efficiency improvements.

Renfe is also committed to contributing, through its capacity for innovation, to initiatives of high strategic value not only for Spain, but also for Europe. In 2015, it submitted proposals for innovation projects

in response to the European calls for proposals from Shift²Rail (S2R), which channel the entire European innovation subsidy up to 2020, and the Connecting Europe Facility (CEF) calls, which subsidise the implementation of innovative solutions that contribute to the realisation of the Trans-European Transport Network for 2030. These include proposals designed to develop the ERTMS signalling system, one of the most strategic innovations for Spain and where we want to see progress both in its own natural evolution (simplification of the validation processes, adaptation to particular needs, introduction of virtual testing, etc.), as well as in the development of future applications on ERTMS, which allow other types of high-value functionalities for the development of rail (ATO, efficient driving, etc.).

Renfe is also aware that it is facing a very competitive and changing environment, supported by a very rapid evolution in digital technology and the needs for communicability in all areas, social and technological. Consequently, Renfe also wants to incorporate more flexible innovation, capable of reacting sufficiently quickly to the market, which is why it is committed to a more open and faster innovation. In 2015, it has begun to develop the foundations to be able to have an incubator and accelerator of ideas, which can come from both internal and external sources.


Innovation Achievements 2015

iClient+ (iC+) Project

This project is part of a competitive strategy for service differentiation for the High Speed product in a scenario of imminent liberalisation and with both intramodal and intermodal competition, aligned with the EU objectives to encourage a modal shift to rail, without the need to reduce prices.

The objective of the project is to improve the services offered to passengers aboard AVE trains and in a series of Multi-Operator and Cercanías Commuter Stations through a Wi-Fi network and a digital content platform. The passengers will access internet connection and content services with their mobile devices through a Wi-Fi network inside High Speed trains and in Cercanías stations.

The project allows us to find out more about the customer and includes the possibility of channelling added value services to the customer, along with information that may be of interest to them (advertising, etc.).

The scope of the current project includes high speed trains and Cercanías commuter train stations and will be carried out in two phases:

$ Phase I: 2016-2018: installation of the solution in the High Speed Madrid-Seville corridor, involving 30 High Speed trains. Installation in 20 Cercanías commuter train stations.

$ Phase II: 2019-2020: Installation of the solution in the High Speed Madrid-Barcelona-Figueres, Madrid-Málaga and Madrid-Valencia-Alicante corridors, involving 59 trains. Extension to other stations, depending on the analysis of the Phase I results.

SOUTH SUMMIT 2015

South Summit is an annual meeting of entrepreneurs, investors and start-ups in Madrid that has become the most important global entrepreneurship and innovation hub in southern Europe.

In 2015, it brought together more than 12,500 visitors of about 100 nationalities, 500 start-ups (100 of them finalists), 6,300 entrepreneurs, 3,100 corporations, 650 investors, 325 journalists and 275 speakers.

The event was opened by the President of the Government, Mariano Rajoy, and involved leading speakers such as Gwynne Shotwell of SpaceX; Ali Partovi, business angel of Iranian descent and discoverer of projects like Dropbox and Facebook, Dirk Ahlborn of Hyperloop, and Fadi Ghandour of Aramex. The event was closed by His Majesty King Felipe VI, who delivered the awards to the winning start-ups in the closing ceremony.

As one of the partners, Renfe played a prominent role in the South Summit. Renfe’s presence involved four different aspects:

$ Active participation in the sessions: During the opening day of this summit the Chief Operating Officer, Berta Barrero, participated in a panel on the future of transport, together with experts from companies such as Amadeus, Endesa, Moovit, Hyperloop and DFJ.


$ Interviews with start-ups: Numerous start-ups were identified whose solutions fit the Renfe innovation strategy. Different Renfe managers held specific meetings with these in which more detailed information about their potential to contribute value to Renfe was obtained.

$ Information stand: Renfe participated with an information stand that brought us closer to the ecosystem of the most recent disruptive innovation. Throughout the event, hundreds of start-ups and small innovative companies came to see us to offer their products and services and to find out about our interests and future challenges.

$ Attendance at sessions and visiting stands: Professionals from all areas of Renfe attended the sessions and had the opportunity to meet entrepreneurs and innovation leaders in person, coming into contact and becoming familiar with cutting-edge developments that have the potential to affect it in a significant way.

SHIFT²RAIL PROJECT

Shift²Rail is a public-private partnership European joint initiative (S2R JU) that will channel all community funding for railway innovation until 2020.

The Renfe-Operadora group wants to participate actively in innovative activity and during 2015 a consortium of the Fomento Group was created, facilitated by the Ministry itself, in which Renfe participates, in order to promote and highlight rail innovation in Spain at the European level, and especially in the field of ERTMS. In particular, in December 2015, open calls were issued to develop projects subsidised by S2R JU, and Renfe has proposed, in a consortium with other companies, to run an ERTMS development project.

IMAGINE EXPRESS PROJECT TO DEVELOP MOBILE APPLICATIONS

This Renfe-SNCF collaboration is integrated in the Mobile World Congress in Barcelona and is a project in which 36 entrepreneurs specialised in new technologies aim to create a computer application during a 4-day trip between the cities of Barcelona, Paris and London.

The journey begins on a Renfe-SNCF in cooperation train between Barcelona and Paris, on which the 36

participants (12 creatives + 12 software engineers + 12 MBA) will leave Barcelona on an international train bound for Paris. During the journey, the participants are organised into 12 teams of 3 people to develop mobile applications following the specific characteristics of the competition for one of the four selected strategic sectors (health, tourism/culture, social and open theme).

From Paris, the participants, on a train to London must present the projects to investors who choose the best project in each category. Finally their projects are presented in Barcelona at the Mobile World Congress.

RENFE FABRICACIÓN Y MANTENIMIENTO

Likewise, Renfe Fabricación y Mantenimiento, as part of its pursuit of innovation, has defined the following innovation areas:

$ Openness to the market of alternative suppliers. $ Development of tools that allow for an integral management of the rolling stock.

$ Study and definition of filters to reduce the interference of the public telephone network with GSM-R.

$ Use of on-board diagnostics to support predictive maintenance.

$ Development of a tool that allows the management of maintenance by processes.


Commitment to employees

Following the consolidation of the Renfe Group model, structured into four companies under the Public Business Entity and constituted on 1 January 2014, in 2015 it focused on developing a model of management and commitment to its staff to prepare for two key aspects. To respond to the necessary process of rejuvenating its workforce, and to gain in competitiveness and productivity, to be able to deal with the process of the liberalisation of the passenger market in the best conditions.

In this renewal process, with the incorporation of new professionals, one of the challenges for the company is to guarantee the transfer of knowledge in the process of replacing the outgoing professionals and adapt its resources to the new needs.

To this end, work has been carried out in all areas of human resources management with programmes that address the professional development of the new joiners, as well as professional development programmes for both operational groups such as those involved in driving, sales, maintenance and administration and management, as well as those involved in the support structure or management and direction.

These plans are complemented by other talent identification and development programmes such as creating an Assessment Centre and beginning a mentoring process.ent Center o el inicio de un proceso de mentoring.

Union elections

In the last union elections held on 3 March 2015, Sindicato Español de Maquinistas y Ayudantes Ferroviarios (Spanish Trade Union of Train Drivers and Assistants - SEMAF) obtained 136 union representatives; Comisiones Obreras (Workers’ Commissions - CCOO) 105; Unión General de Trabajadores (General Workers’ Union - UGT) 98; Confederación General del Trabajo (General Confederation of Labour - CGT) 43; Sindicato Ferroviario (Railway Trade Union - SF) 28; Unión Sindical Obrera (Workers’ Syndical Union - USO) 2; and other unions obtained 3 representatives.

As a result of these elections the General Committee of the Renfe Group is made up of 4 representatives from Sindicato Español de Maquinistas y Ayudantes Ferroviarios (SEMAF), 3 from Comisiones Obreras (CCOO), 3 from Unión General de Trabajadores (UGT), 2 from Confederación General del Trabajo (CGT) and 1 from Sindicato Ferroviario (SF).


Renfe Group Collective Agreement

The Negotiating Committee of the 1st Collective Agreement of the Renfe Group is formed of 12 members for each of the parties, the part corresponding to the workers’ representatives being composed of 4 from SEMAF, 3 from CCOO, 3 from UGT, 1 from CGT and 1 from SF-Intersindical.

On 17 December 2015, a pre-agreement was reached on the 1st Collective Agreement of the Renfe Group, which was submitted to the Committee for the Monitoring of the Collective Negotiation of Public Enterprises.

This 1st Collective Agreement aims to regulate the working relationships in the Renfe Group, which is currently constituted by Renfe-Operadora Public Business Entity, Renfe Viajeros S.A., Renfe Mercancías S.A., Renfe Fabricación y Mantenimiento S.A., and Renfe Alquiler de Material Ferroviario S.A.

This agreement includes a rise of 1% for 2016, as established in the rules on remuneration in the Law on General State Budgets and its implementing regulations. One of the aspects it has addressed is the convergence and integration of professional categories for the personnel joining from Feve. It also regulates aspects and improvements in relation to productivity and competitiveness, seeking the rejuvenation of the workforce through the implementation of the Employment Plan that establishes the voluntary departure of workers, and recruitment, through a

Voluntary Redundancy Plan, in addition to creating new categories of joiners and employment exchanges.

This last aspect is to meet the needs of the Renfe Group in terms of renewal, knowledge transfer and adaptation to the new needs and challenges of the company in the field of human resources.

Equal Opportunities

The signatories to the 1st Collective Agreement undertake to continue guaranteeing the fundamental right to equal treatment and opportunities in the Renfe Group, as a result of which an Equal Opportunity Committee has been created with five representatives from each of the parties, the social part being formed by representatives of the unions signing up to the 1st Collective Agreement of the Renfe Group.

This Committee ordinarily meets every three months, and on an extraordinary basis when this is decided by the member parties, in order to enforce the rights to the balancing and co-responsibility of the personal, family and work life, established in the current legislation.

Profile of Renfe workers

Renfe has 14,229 workers, most of whom are men (89.59%) and in the age group between 46 and 55 years old (49.03%).

The development of the workforce has been as follows:

No. of employees

15,000

2011 2012 2013* 2014 2015

(*) Integration of Feve into Renfe

14,800

14,600

14,200

14,000

13,800

13,600

13,400

14,400

13,95413,866

14,785

14,31914,229


Percentage male/female staff

201189.87%

10.13%

89.00%10.14%

89.73%10.27%

89.59%10.41%

89.94%10.06%

2012

2013

2014

2015

Men Women

Distribution of the Management Structure by age and sex

76

266

229

183

11

716

909

4,363

511

664

40

6,261

Over 60 years old

56-60 years old

46-55 years old

36-45 years old

26-35 years old

Under 26 years old

WomenMen

Distribution of workforce by professional category

• Management Structure159

196

94

438

124

470

655

624

5,448

2.716

2.579

726

• Support Structure

• Admin. and Manage.

Driving

Sales

Workshops

WomenMen

Distribution of the Management Structure by age and sex

15

28

53

3

60

70

223

62

6

294

WomenMen

Over 60 years old

56-60 years old

46-55 years old

36-45 years old

26-35 years old


Distribution of the workforce by Business Area

BUSINESS AREA 2015 2014

Economic Financial G.D. 136 245

International Department* – 23

G.D. of Security, Organisation and HR 234 231

Dept. of Communication, Branding and Publicity 51 31

Chairman’s Department 18 15

General Secretariat and Board of Directors 29 29

G.D. of Operations 196 43

Internal Audit Dept. 10 10

G.D. of Renfe Mercancías 1,501 1,556

G.D. of Renfe Fabricación y Mantenimiento 3,376 3,383

G.D. of Renfe Viajeros 8,673 8,747

G.D. of Renfe Alquiler de Material Ferroviario 5 6

Total 14,229 14,319

(*) In 2015, International Department was integrated with G.D. of Operations

Distribution of the workforce by sex, region and type of contract

2015 2014

Autonomous Community Contract Type Men Women Men Women

Andalusia Permanent 1,606 133 1,625 128

Aragón Permanent 425 9 426 9

Asturias Permanent 690 66 700 64

Cantabria Permanent 326 16 335 14

Castilla-La Mancha Permanent 240 7 246 7

Castilla-León Permanent 1,427 107 1,449 107

Catalonia Permanent 1,730 231 1,801 236

Valencian Community Permanent 1,006 52 1,014 51

Extremadura Permanent 102 - 104 -

Galicia Permanent 477 42 487 42

La Rioja Permanent - 1 - 1

Madrid Permanent 3,650 705 3,687 713

Murcia Permanent 231 8 239 8

Navarre Permanent 56 1 56 1

Basque Country Permanent 584 66 597 67

12,550 1,444 13,257 1,452

Total employees with a permanent contract 13,994 14,218


2015 2014

Autonomous Community Contract Type Men Women Men Women

Asturias Temporary 13 4 19 5

Cantabria Temporary 5 2 3 2

Castile-León Temporary 4 3 3 2

Catalonia Temporary 98 8 47 4

Galicia Temporary 4 - 2 -

Madrid Temporary 56 19 2 5

Murcia Temporary 3 - - -

Basque Country Temporary 15 1 7 -

198 37 41 83

Total employees with a temporary contract 235 101

Employees included/excluded from the Collective Agreement

2015 2014

Included in the Collective Agreement 13,415 (94.28%) 13,495 (94.25%)

Excluded from the Collective Agreement 814 (5.72%) 824 (5.75%)

In Renfe, the system of management through targets, which determines a part of the remuneration linked to the performance of each worker, affected 18.7% of the workforce in 2015. The areas of management, support and middle managers, with the exception of driving middle managers, are the workers included in the system.

Number of workers with assessment of targets

2015 2014

Men Women Men Women

Management Structure 655 159 668 156

Support Structure 548 165 546 171

Middle Managers 921 218 906 207

Total2,124 542 2,120 534

2,666 2,654


Employment stability

A key factor for the integral development of the organisation and its workers are the policies that Renfe promotes for employment stability. Temporary and/or permanent contracts are established through agreements with the General Company Committee, depending on specific needs.

Turnover of the workforce

2015 2014

Men 1.51 2.54

Women 1.19 2.00

Length of service of the workforce

2015 2014

Men 30.86 30.23

Women 24.24 23.54

Breakdown of the workforce by type of contract/working day

2015 2014

Full Time Part Time Total Full Time Part Time Total

Indefinite or permanent contract 13,878 116 13,994 14,124 94 14,218

Temporary or fixed duration contract 216 19 235 91 10 101

The reduced working day of the employees ranges from 50% to 87.5% of their working day.

Maternity and paternity leave 2014

2015 2014

Men Women Men Women

Number of employees eligible for maternity/paternity leave 68 39 74 47

Number of employees that took maternity/paternity leave 68 39 74 47

No. of employees who returned to work at the end of their maternity/paternity leave 68 37 74 46

Number of employees who remained in the company twelve months after returning from maternity/paternity leave 68 37 74 45

Percentage of employees who returned to their jobs after the requested leave periods came to an end 100.00% 94.87% 100.00 % 97.87 %

Number of registered leavers

2015 2014

Dismissal due to disciplinary action 6 11

Express resignation - 4

Secondment to an investee company 5 2

Voluntary leave of absence 7 4

Forced leave of absence 5 -

Family care leave of absence 5 2

Employment Regulation Plan (ERE) 55 445

Maternity/Paternity Leave 5 3

Termination of employment (Death/Disability) 59 84

End of contract 21 8

Retirement 103 70

Total 271 633


Training Strategy

The policy of the Renfe Group is to develop and strengthen continuing training in order to permanently enhance and update the skills of the employees, allowing greater professional development and the best possible performance of the activities entrusted, not forgetting that continuing education:

$ Contributes to the achievement of the strategic objectives in a cross-cutting way.

$ Improves motivation, helping to ensure a good working environment and internal communication and increasing the degree to which people are involved in strategic projects.

$ Guarantees the operability of the company, keeping up-to-date the qualifications of the operational staff necessary for the running of the company.

$ Improves professional, individual and organisational skills, increasing employability and ensuring equal opportunities for all workers.

Within the training strategy, the key strategic lines are as follows:

$ Promotion of the New Training Model based on innovation, both technological and methodological/management. Emphasising the combined use of:

$ Different training methodologies (e-learning, face-to-face and blended-learning).

$ Videoconferencing training systems. $ Online tutorials.

$ Design of new strategic training initiatives in response to the objectives set by +Renfe.

$ Promotion of the activity of the Renfe Group Training Schools.

$ Training support to business representatives, at both the national and international level, in all forums, working groups, conferences and sector discussions.

$ Proposal of training solutions to meet the needs arising from the new reality of the sector, derived from the existing and new legislation:

$ Orders FOM 2872/2010 and FOM 679/2015. $ Railway Circulation Regulations.


Hours of training by gender

2015 2014

Training of Women 24,439 23,989

Training of Men 381,390 362,751

Total 405,829 386,740

Average hours per employee

2015 2014

Training of Women 16.49 16.32

Training of Men 30.52 28.15

Total 29.03 26.93

Hours and average hours of training by professional category

2015 2014

Hours of Training Hours Average hours Hours Average hours

Management Structure 14,260 17.78 19,893 24.20

Support Structure 19,909 24.82 23,058 27.88

Administration and Management 12,109 10.13 11,087 9.38

Driving 273,342 50.08 227,038 40.84

Sales 49,192 15.98 56,329 17.60

Workshops 37,017 14.01 49,335 17.81

Total 405,829 29.03 386,740 26.93

The training effort in terms of the total hours of training has increased by 4.94% compared to the previous year. This increase is mainly concentrated in the Driving group.

ANNUAL TRAINING PLAN

Renfe produces an Annual Training Plan that includes objectives, itineraries, detection of needs, assessment systems, as well as all the training programmes aimed at different groups, among other content.

The programmes designed are intended to ensure maximum transparency and promote equal opportunities for employees. This Plan was presented and validated by the Legal Representation of the Workers present in the General Company Committee, who form an active part of the Training Advisory Council.


Training investment (€)

gráfica10,000,000

8,000,000

4,000,000

2,000,000

0

6,000,000

2015

3,840,224

2014

6,358,840

2013

8,403,022

2012

7,198,087

2011

6,840,706

Hours of training

gráfica500,000

400,000

200,000

100,000

0

300,000

20152014

300,625

48,01628,93828,250

251,156

60,904

41,18633,949 Sales

Manufacturing and Maintenance

Skills

Integral Safety

Planning of Cross-Cutting Training for the Renfe Group

The following is a list of the cross-cutting actions promoted for the Group as a whole, for their execution during the year.

LANGUAGE TRAINING

Continuous language training is managed through the Language School of the Training Management of

the Renfe Group, promoting the development of the knowledge and communication skills of the workers in English, French, German, Portuguese and Catalan. This also manages the response to specific needs, through face-to-face, telephone or e-learning methodologies.

The training objectives and accreditation of levels for the students at the School are defined within the Common European Framework of Reference for Languages (CEFR).


The face-to-face, telephone and e-learning training is mainly aimed at those workers involved in or related to international projects or for those who need to improve or maintain their linguistic skills in order to perform the duties of their job.

Approved training in languages is required for the qualification and/or adaptation of the workers in the driving and sales groups for certain lines and services, and is given by institutions and entities officially approved by the Administration of the countries or regions of the required languages.

Thus, in the case of the Portuguese language, the objective is for workers on the Vigo-Porto line to train, prepare and take the exam for the level B1 certification in this language. It is designed for the Renfe Viajeros Driving Group and trainers of the Professional Technical School of Driving and Operators. This training is face-to-face.

In the case of training in the Catalan language, the aim is to improve the care and attention for customers and the training is aimed at the Renfe Viajeros sales group.

CORPORATE TRAINING FOR THE GROUP

The corporate training of the Group is that which is established or is considered, in general, as a priority and/or necessary for certain work groups. Among the subjects taught are:

Equality Plan

With the aim of publicising the Renfe Group’s Equality Plan, as well as the legislation, concepts and values that make up the context in which it is implemented, a training module has been added to the Welcome Programme for all new staff.

Organic Law on Data Protection

To disseminate aspects relating to Computer Security and the Organic Law on Data Protection in the Renfe Group, a training module has been added to the Welcome Programme for all new staff.

Training in the Railway Sector

This consists of training on management in the railway sector, in different areas and aspects of activity such

as the experience and role of different agents, legislative developments and techniques that affect management and innovation and best practices. Within this type of training, the Land Transport General Course should be mentioned, which aims to provide comprehensive training in the different areas of the land transport sector. It is aimed at Support and Management Structure staff.

Other programmes are taught in Blended Learning mode by the Fundación de los Ferrocarriles Españoles (Spanish Railways Foundation) and the Bureau Veritas University Centre, and certified by the Universidad Camilo José Cela, which grants the qualification of University Expert in Land Transport.

CONTINUOUS TRAINING FOR THE GROUP

This is the training scheduled so that the workers acquire and gradually improve the knowledge and skills necessary for the performance of their functions and their professional development.

Self-protection

Collaboration in issues relating to the administration and management of training on self-protection, defined and established by the Department of Self-Protection, Safety and Risk Prevention.

In the training relating to Self-Protection Plans, the objectives are to learn about the specific self-protection plans for different infrastructures in the Railway Network (tunnels, stations, logistics complexes, etc.). It is designed for the staff of Renfe Viajeros, Renfe Fabricación and Mantenimiento, Renfe Mercancías and Renfe Operadora (Civil Protection Area and ETPCO).

Development

It promotes the acquisition and application of skills and knowledge and management tools. The Skills Courses aim to provide the Renfe Group workers with the tools and skills that facilitate the performance of their functions, the achievement of targets and the adaptation to change, through practical and collaborative learning. Designed and given by internal trainers, they are aimed at staff in the Structure and Middle Management areas across the whole Group. The courses include those related to Conflict Management, Motivation, Negotiation, Stress Management, Teamwork, Organisational Culture and Change Management.


DUAL PROFESSIONAL TRAINING

Dual VT Actions - Intermediate Level Training Course on Railway Rolling Stock Maintenance

During the 2015 financial year the Renfe-Operadora business group actively participated in the continuation of the training course with the Departments of Education from the Autonomous Communities of Catalonia, Castile and León, Madrid and Andalusia for the effective implementation of the intermediate level training course on the maintenance of rolling stock in the dual vocational training mode.

The dual mode training course in Renfe-Operadora

This intermediate training course on the maintenance of railway rolling stock has a curricular load of 2,000 hours and is distributed across two academic years running from September to the end of June, each of 36 teaching weeks.

It belongs to the professional group of transport and vehicle maintenance, it is an intermediate level vocational training course and the general skill to be gained is carrying out maintenance and assembly in the areas of mechanics, pneumatics, electricity and electronics in relation to railway rolling stock.

The exact nature of the educational programme was developed in coordination with the General Directorates of Vocational Training from the Departments of Education, producing different configurations in each Community.

Through the Technical Vocational School of Maintenance of the Fabricación y Mantenimiento company, tutors and trainers are appointed with the appropriate professional qualifications or experience to provide the training and help the students fit into the company environment, ensuring the evolution of their training. This is complemented during the second year with work experience, for which they receive a scholarship, in direct production teams in the Comprehensive Maintenance Centres in Vilanova, Valladolid, Malaga and Madrid.


Internal communication in the Renfe Group

Internal communication in the Renfe Group is designed from a strategic point of view, in a way that favours the commitment of the employees to the company objectives, while looking further at the efficiency and productivity of the organisation. On being designed as a cross-cutting function, it contributes to consistency in the messages and values, in addition to enhancing the pride of belonging to the Group.

The main internal communication channel in the Renfe Group is the intranet, which is why it has chosen to offer access to the largest possible number of workers, adapting it to their professional profiles to achieve greater transparency, efficiency and impact, so as to reduce the distances with the operational groups that do not use a computer in their jobs.

During the year 2015 a communication campaign was run to involve all employees in the + Renfe Plan, a project with two strategic objectives: financial profitability and perceived quality. All of this has resulted in 50+1 (communication plan) projects as a road map to produce a cultural transformation,

strengthen positioning and improve the competitiveness of the company. Communication has been a strategic tool in supporting the leadership and transferring these objectives throughout the organisation, giving the managers and leaders of teams and projects visibility, involvement and a leading role to play.

Similarly, the Chairman’s meetings with different professional groups also continued, creating a meeting point and a direct communication channel.

SESSIONS IN 2015

3,281,212

DAILY AVERAGE ACCESS

11,519

ACCESS ROUTE

21%external network

(Internet and mobile)

79%internal network


Occupational health and safety

TRAINING

The main objective in this area is to avoid or minimise accidents involving Renfe Group workers, on the basis of the risks detected and the preventive measures taken. In this sense, training in the field of Health and Safety is a fundamental element in preventing workplace accidents.

The scope of the training involves all hierarchical levels of the company and is implemented using a more practical and productive methodology, in accordance with that established in the internal health and safety procedure, POP 06 Training.

Below we have set out the figures on training within the Health and Safety training catalogue during 2015, with the number of participants and total hours:

2015 2014

Participants Hours Participants Hours

Continuing Training 3,271 16,456 4,346 19,385

Initial Training 568 4,998 357 2,205

Situational Training 20 69 57 218

Total 3,859 21,523 4,760 21,808

In addition to the figures on Health and Safety reported, we must add 15,867 hours of training on health and safety given through modules of general courses found in the training catalogue.

We must continue to emphasise the important effort made by the Renfe Joint Health and Safety Service, its health and safety experts and the medical service in running training courses both for internal staff (general and specific risks) and for external staff from the different companies that request the qualification that accredits and certifies them to carry out the corresponding tasks and for candidates hoping to gain the qualification of driver of rail vehicles or train operations.

We should emphasise the professionalism of the health and safety experts who continuously update their health and safety knowledge by participating in and attending workshops and conferences in health and safety matters given by the institutions related to Occupational Health and Safety, law firms, etc.

Preventive campaigns for workers

No. Workers 2015 2014

Colorectal cancer 314 361

Ocular health 490 598

Gynaecological health 251 277

Bone health 87 75

Cardiovascular risk 489 735

Prevention of prostate cancer 946 1,370

Total 2,577 3,416


Rate of absenteeism, occupational diseases, lost days and fatalities

2015 2014

Absenteeism rate due to an accident at work 0.49 0.51

Work days lost due to an accident at work 22,526 23,809

2015 2014

Men Women Men Women

Non-traumatic occupational accident fatalities 0 0 0 0

Declared professional illnesses 5 0 7 0

HEALTH AND SAFETY PLAN FOR THE RENFE GROUP

Within the scope of the first General Health and Safety Committee held in 2015, the publication of the Occupational Health and Safety Plan for the Renfe Group was announced on the Interesa Portal.

In the last General Health and Safety Committee held that year, in accordance with point 11 of that document, Implementation, monitoring and dissemination of the plan, and in particular point 11.1., Updating, revision and dissemination of the Plan, “The Health and Safety Plan shall be reviewed annually in the same Bodies to which it is submitted for consultation and approval, and whenever there are changes of a legislative or organisational nature that affect its content”, it was determined that since there have not been any legislative or organisational change affecting its content and one year has passed since its approval (the last GHSC of 2014), the document will be revised. After this updating, the document will be published on the Portal Interesa with the revision date.

INTERNAL CONTROL PROCEDURE FOR THE HEALTH AND SAFETY ACTIVITY OF THE RENFE GROUP

The internal control procedure for the health and safety activity began to be implemented on 1 January 2015, having been completed in full.

This is an internal control procedure for the health and safety activity of the Renfe Group that has been developed by the PBE with the collaboration of the companies, in accordance with the following frequencies:

$ Quarterly/Annual: monitoring of the health and safety activity included in the planning of activities for the year 2015 has been carried out. For this, what was included and its subsequent fulfilment by each Company/PBE has been verified. The results from this phase will be reported to the RLT as part of the General Health and Safety Committee during 2016.

$ Annual: 16 visits have been made to significant work centres for the PBE/Companies. During the visits, check lists have been prepared, requesting and establishing the control and supervision of the health and safety activity being carried out in those centres; various interviews were also held with the managers and workers at each centre visited.

During the implementation of this phase of the procedure, a documented study of the health and safety system has been carried out, analysing the following items in a specific and detailed way:

$ Identification of the Company/Unit/Collective. $ Identification of person(s) responsible for the audit and the report and the person supervising them.

$ Identification of the people who carry out and accompany the visit.


$ Number of workers assigned to this unit $ Description of the activities of the company. $ Elements of the Occupational Health and Safety System observed:

$ Evaluation of risks $ Emergency measures $ PPE $ Participating Bodies $ Coordination of Business Activities (CAE) $ Training and Information for workers $ Accident rate $ Occupational Health

Subsequently, a report was drawn up for each visit carried out with the conclusions reached and, where appropriate, improvement actions or recommendations were proposed to each of the affected Companies/PBEs.

Each of the reports was signed by the person in charge of the Public Business Entity who made the visit and prepared the report and by the manager of the Occupational Health and Safety Area that supervised each of them.

Each of the companies in the Renfe Group was given a copy of these reports.

The last phase of this procedure is to follow up on the Adjustment Plans of the Legal Audit carried out, resolving any non-conformities detected.

This last part has an end date that is subject to the resolution of the non-conformities detected, regardless of whether the corrective action proposed to resolve the non-conformity is of a continuous nature or for a specific date.


Commitment to suppliers

Main achievements of 2015

In 2014 a process of adaptation of the internal regulations was carried out with the objective of giving our procurement procedures greater transparency, participation and publicity. Work on this continued in 2015, carrying out the following actions:

$ Implementation of the service of subscriptions to tender announcements

$ Possibility of publishing tender announcements in simplified management procurement cases. These cases are those whose amount is €50,000 or less.

$ Publication of the results of the tender procedure (awarding, withdrawal or declaration of not-awarding) of any type of case, both on the website and in the Public Sector Procurement Platform.

Procedure

Renfe’s procurement system is subject to the rules of private law, without prejudice to the provisions of the public procurement legislation for the so-called special sectors applying to the preparation and awarding of the contracts. In this sense, Renfe’s procurement procedures are subject to Law 31/2007 of 30 October, on procurement procedures in the water, energy, transport and postal services sectors, known by its Spanish initials

LSE, which is applicable to contracts for works worth more than €5,186,000 and for contracts for services and supplies worth more than €414,000.

Contracts worth less than the aforementioned thresholds are governed by “Administrative Instruction IN-SGC-001/08, Instructions governing the procurement procedures for Renfe Operadora”, of 29 April 2008, whose first revision was approved by the Board of Directors on 30 October 2013.

On 16 December 2014, administrative instruction IN-DCP-004/14 was approved, which defines provisions that supplement the general principles of the procurement function. This Instruction includes a series of measures aimed at continuing to improve transparency and objectivity in procurement procedures. These measures were implemented in 2015.

Suppliers and purchase volume

2015 2014

Normal Management

Suppliers awarded contracts 570 564

Amount (€) 677,555,618,75 472,268,870

Total (including Simplified Management)

Suppliers awarded contracts 1,276 1,305

Amount (€) 713,437,450.71 510,418,699


Average Term for Payment to suppliers

At present, the maximum legal payment term applicable to the entity in the 2014 financial year was 60 days, in accordance with Law 3/2004, which established measures to combat late payment in commercial transactions. This law was amended by Law 4/2013 of 22 February which from its date of application establishes a legal maximum term of 30 days unless there is an agreement between the parties with a maximum term of 60 days.

At the close of the 2015 financial year the company has calculated an average payment term to its suppliers, in accordance with the resolution of 29 January 2016, of 60.06 days (68.25 days in 2014).

Internal regulations

Renfe’s internal regulations on procurement reflect its social and environmental commitment. Thus, for example, the General Principles of the Procurement Function establish that, as far as possible, environmental and social aspects, among others, must be considered as criteria when evaluating offers.

Integrating CSR into the supply chain

Renfe goes beyond its firm commitment to service and the provisions of the Procurement Policy and has an environmental policy, complemented by a list of rules that it extends to all its subsidiaries, contractors and suppliers. The aim is to maximise best practices in the environmental field.

Compliance mechanisms

Renfe has defined mechanisms to comply with the principles of publicity, participation, transparency, confidentiality, equal treatment and non-discrimination:

PRINCIPLES OF PUBLICITY AND TRANSPARENCY

$ All tenders, by open procedure, restricted or negotiated with advertising, subject to the LSE, are published in the OJEU and Official State Gazette. In the OJEU it also publishes the awards for the corresponding contracts, as well as the procedures declared non-awarded or withdrawn

$ In the Contractor’s Profile, located on Renfe’s website, and in the Public Sector Procurement Platform, all tenders are published whether by open procedure, restricted or negotiated with advertising, and in the case of simplified management cases, those whose procedure requires publicity. All awards, withdrawals and non-awarding procedures are also published through these methods, regardless of the award procedure.

$ Without prejudice to the publication of the award, the declaration of non-awarding or the withdrawal, in all cases other than simplified management Renfe notifies the decision on the procedure to all participating economic operators.

PRINCIPLE OF PARTICIPATION

$ As a general rule, all purchases worth €1,800 or more are made with advertising of the tender. When the estimated value exceeds €50,000, a failure to publicise it must be justified on the basis of any of the reasons established in Article 59 of the LSE. When the estimated value does not exceed €50,000, the failure to publicise must be justified to the Delegated Procurement and Investment Committee.


$ In simplified management cases, which are not processed with advertising, at least three quotes must be requested unless there is an objective reason why only a quote from one supplier can be requested.

$ In negotiated and restricted procedures, in accordance with Rule IN-DCP-004/14, Provisions Complementary to the General Principles of the Procurement Function, it is established that when the number of candidates to be invited is limited, it shall not be fewer than 10.

CONFIDENTIALITY PRINCIPLE

In accordance with the provisions of section 2 of Chapter II of Title I of Administrative Instruction IN-SGC-001/08, Renfe is committed to not disclosing the information provided by bidders/candidates that they have classified as confidential. Such information includes, in particular, technical or commercial secrets and the confidential aspects of the quotes.

EQUALITY AND NON-DISCRIMINATION PRINCIPLE

The principles of equality and non-discrimination are set out in section 1 of Chapter II of Title I of Administrative Instruction IN-SGC-001/08. These principles also form the basis for the entire procurement procedure regulated in Standard NG-DCP-001/08, General Principles of the Procurement Function, particularly as regards the criteria for the selection of candidates, which must be objective, appropriate and proportionate to the subject of the contract.

Commitment to responsible procurement

As part of its environmental commitment, Renfe requires partner companies, subsidiaries, contractors and suppliers to also be committed to complying with environmental regulations, this requirement being put into practice through the policies for the procurement of goods and services.

Communication with suppliers

Renfe has provided suppliers with access through the website www.renfe.com to the “Contractor Profile”, a space where the tenders in progress are published, in both normal and simplified management cases, along with the contracts awarded, tenders not awarded or withdrawn and, in general, all the applicable regulations, as well as the statement of compliance forms used in the procurement procedures.

Similarly, the subscription service can be accessed from the Bidders’ Area, which allows companies to set up alerts to inform them by email of all the tenders taking place in Renfe that comply with the conditions defined when they subscribed for the service.

There is also access to the Register of Suppliers through the Renfe website. This access is restricted to Renfe’s reference suppliers, which are those that have been awarded tenders that are not simplified management. Access to the Suppliers Register allows them to see the data and documents that are already incorporated into that register, meaning that they do not have to produce these in future procurement procedures in which they participate. In the “Suppliers Portal” there is a mailbox allowing suppliers to make queries regarding the Portal.



Commitment to Corporate Social Responsibility

Renfe is aware that it cannot run its business without taking into account the social environment. For this reason, it has a Corporate Social Responsibility strategy whose framework promotes an ongoing commitment to its stakeholders that goes beyond the financial and qualitative objectives of any company and incorporates social, environmental, cultural and ethical aspects.

Renfe has chosen four commitments around this strategy through which all the Corporate Social Responsibility and sponsorship actions of the Company are aligned.

$ Commitment to society and accessibility $ Commitment to culture, education and sport $ Commitment to sustainability and the environment $ Commitment to ethics and good governance

Investment in Corporate Social Responsibility

In 2015, Renfe made an investment in the community that amounted to €138.9 million. The majority of this investment comes from Renfe’s commitment to society and accessibility, where the Atendo service for limited mobility passengers and the discounts offered through the Renfe Tarjeta Dorada (Gold Card) are the most costly investment items.

thousands of € 2015 2014

Commitment to society and accessibility 133,411 € 135,400 €

Commitment to culture, education and sport 28 € 17 €

Commitment to sustainability and the environment 122 € 436 €

Commitment to ethicsand good governance 5,343 € 3,047 €

Total 138,904 € 135,400 €


Commitment to society and accessibility

Renfe’s commitment to activities of social interest dates from the very creation of the company, always showing a desire to understand and be involved with the environment in which it operates. This is a commitment to society and accessibility, with special attention being paid to users with a disability or mobility difficulty, and a commitment to integration, diversity, tolerance, respect and understanding for the best possible coexistence among citizens.

Accessibility in Renfe - Atendo

During 2015, the Atendo service was provided in 129 accessible stations in Spain, of which 68 permanently provide the service during the entire opening hours of the stations when requested at least 30 minutes before the departure of the train. In 61 stations this is offered on a one-off basis when requested a minimum of 12 hours before the time of travel.

The public taking the train is increasingly diverse, and elderly and disabled people are travelling more and increasingly using the train for their journeys.

This service increases the value and quality of the service provided by the company, assisting passengers from their arrival at the station of origin until they leave the destination station at the end of their journey.

The request for assistance under the Atendo Service can be made at the time of purchasing the ticket, through any of the sales channels that Renfe makes available to the customers (internet, stations, etc.), or by calling 902 24 05 05 which is the specific number for the service for these passengers.

Atendo is Renfe’s main corporate social responsibility project.

THE MAIN ACHIEVEMENTS OF THE ATENDO SERVICE DURING 2015 ARE AS FOLLOWS:

$ The number of times the service was used in 2015 has increased by 8.67% compared to the previous year, reaching a total of 631,106 times.

$ The quality level of the Atendo Service was 8.55 out of 10 in 2015.

$ The Atendo Service has the Universal Accessibility certification according to the UNE 170001-2 standard granted by AENOR. In the certification, it is recognised that Renfe “has a universal accessibility management system in keeping with the UNE 170001-2:2007 standard for the transit of people with disabilities and/or reduced mobility from/to the meeting point in the railway stations of origin and destination, including access, travel and accommodation in Renfe trains that travel between the stations which have the Atendo service”.

No. of times the Atendo Service has been used

750,000

600,000

300,000

150,000

0

450,000

2015

631,106

2014

625,360

2013

575,485

2012

465,126

2011

388,977


Distribution of times used by disability type

0.28%Visual

impairment

4.76%Chair in special

reduced mobility seat

35.04%Elderly

(without wheelchair)

24.60%PRM upper/lower limbs

(or wheelchair)

11.39%People withpushchairs

OtherPRM

3.85%

Chair inregular seat

8.57%

Intellectualdisability

1.21%

Pregnantwomen

0.56%

Hearingimpairmentl

9.74%

NEW ATENDO APP

This new app has been developed in collaboration with Ilunion, the business group of Once and its Foundation, and is a new simple and convenient way to request assistance and access all the information associated with the service from mobile phones. This can be used to request the service and consult the Atendo Service Guide, developed following easy reading principles in accessible pdf.

A free telephone service for the visually impaired has also been created, which can be used to purchase tickets, request ticket information, changes, cancellations, and purchase for the user or other persons.

NEW INFORMATION AND TELEPHONE SALES SERVICE FOR THE VISUALLY IMPAIRED

In 2015, a new and exclusive free service was also launched whereby visually impaired customers can obtain information and buy tickets or any other online Renfe product, at the same price as found on renfe.com, that is, without booking fees.

ACCESSIBILITY

Renfe Operadora’s general objective is to create universal accessibility to all products and services offered, in collaboration with the institutions and social agents who are experts in accessibility. The Station Plan is especially concerned with improving the accessibility

of stations, with the raising of platforms, installation of lifts and the construction of underpasses.

A project is also being developed to provide accessibility to the trains of the 447 Cercanías Commuter Train series, with a carriage with a low floor, at platform height.

It is also working on the new Cercanías commuter train self-service ticket machines through the installation of voice navigation software in the stations at Zaragoza and Madrid and actions have been initiated to resolve or reduce accessibility barriers to this Renfe sales channel.

Renfe Tarjeta Dorada (Gold Card)

During 2015, 3.9 million transactions have been carried out in relation to the Tarjeta Dorada, of which 56% correspond to actions carried out in the sales systems at stations, 28% in Travel Agencies and the remaining 16% to transactions carried out over the Internet.

Tarjeta Dorada registrations and renewals in 2014

2015 2014

Stations - Sale without Reservation 252,403 194,006

Stations - Sale withReservation 608,639 580,400

Agencies 162,989 165,388

Banks 740,121 858,042

Total 1,764,152 1,797,836


The number of Renfe Tarjeta Dorada cards for the elderly or people with disabilities amounted to 1,764,152 in 2015 and the number of transactions carried out for people accompanying the disabled amounted to 37,434.

The contribution of Renfe in the form of discounts through Tarjeta Dorada cards amounted to €92.5 million in 2015.

Renfe and social action

Renfe is aware that it cannot run its business in isolation from its social environment. That is why we support disadvantaged groups, collaborating with special employment centres, NGOs and Foundations.

COLLABORATION WITH SPECIAL EMPLOYMENT CENTRES

Renfe helps disabled people to enter the world of work by collaborating with Special Employment Centres through the Jardines de España Foundation, an organisation dedicated to the social integration of mentally handicapped people. Since 2005, it has been in charge of conserving and maintaining the gardens of the central office complex of Renfe, ‘Las Caracolas’, in Madrid.

COLLABORATION WITH THE NATIONAL TRANSPLANT ORGANISATION

In 2015 Renfe signed an agreement with the National Transplant Organisation that will allow paired organ transplants within the national territory, between towns and cities connected by train, preferably High Speed or Long Distance trains that run on high-speed lines. Whenever there is a paired-transplant, Renfe will mobilise different departments: Call Centre, Operations Management Centre, Atendo Service, service centres etc. to ensure that the operation is carried out in accordance with the established procedure, also providing tickets for the medical professional accompanying the organ to be transplanted.

CHARITABLE CUSTOMERS

Renfe offers its customer the opportunity to collaborate with the organisations SOS Children’s Villages, Federación Española de Padres de Niños con Cáncer (Spanish federation Parents of children with cancer) and Nuevo Futuro (New Future) through the Tempo and +Renfe cards, donating their europoints and Renfe points. Thanks to their charity, €11,279.76 was raised in 2015.

Donations to NGOs by customers of the Tempo and +Renfe Cards

Amount in € 2015 2014

Children’s Villages 5,631 5,796

Federación Española de Padres de Niños con Cáncer 1,003 3,579

Nuevo Futuro 4,646 263

Total 11,279.76 9,638

COMMITTED TO THE FIGHT AGAINST DOMESTIC VIOLENCE

Renfe is affiliated to the Red de Empresas por una Sociedad Libre de Violencia de Género (Network of Companies for a Society Free of Domestic Violence). Through its membership, it has committed to collaborate on raising awareness about violence against women.

The Network of Companies for a Society Free of Domestic Violence was created in 2012 with the aim of raising the profile of domestic violence in society, as well as promoting the employment of the victims. Since its inception, 1,426 contracts have been signed by these women, which has allowed them to become financially independent and escape violence.

Through its adhesion to the Network of Companies for a Society Free of Domestic Violence, Renfe is committed to communicating to employees and customers the campaigns against domestic violence promoted by the Ministry of Health, Social Services and Equality.


Violence against women is a scourge and eradicating it will require the involvement of everyone and all the institutions and public and private entities involved.

With this affiliation, Renfe wants to show its commitment to this cause and to the achievement of a society characterised by equality between men and women, respectful of fundamental rights and free from any type of violence against women.

LA GRAN RECOGIDA DE ALIMENTOS (THE GREAT FOOD COLLECTION) CAMPAIGN

Once again this year Renfe collaborated with the Federación Española de Bancos de Alimentos (Spanish Federation of Food Banks) in its project “La Gran Recogida de Alimentos”, which took place throughout Spain.

The Food Banks located throughout Spain encouraged everyone to join in and beat the figures from 2014, when they managed to help more than 1,500,000 people in need in Spain. In 2015, they have managed to collect 22 million kilograms of food, 5% more than was collected in the previous year.

During November, an audio-visual was broadcast on all high-speed and long-distance trains. The objective

of the audio-visual was to encourage participation, allowing people to collaborate in two ways: through the donation of food in the supermarkets taking part in this campaign or by becoming volunteers helping to collect food.

COLLABORATION WITH THE SOÑAR DESPIERTO FOUNDATION

The Soñar Despierto Foundation is dedicated to the social integration of children and young people from broken homes living in reception centres and residential centres. It does this through a socio-educational project. During 2015, Rodalies de Catalunya provided transport for 520 children from Barcelona to Port Aventura during the charity day held in the park.

COLLABORATION WITH THE INSTITUT MUNICIPAL D’EDUCACIO DE BARCELONA (BARCELONA MUNICIPAL INSTITUTE OF EDUCATION - IMEB)

Renfe will collaborate with the IMEB in its activities to promote public transport among schoolchildren. As part of this collaboration agreement, Renfe contributes a maximum of 500 free combined tickets each school year for the Renfe-Catalonia Railway Museum in Vilanova y la Geltrú, for students of school groups from the city of Barcelona with financial difficulties.


Commitment to culture, education and sport

Renfe has developed a series of its own activities, focused on growing closer to its passengers through using its skills, products and services in relation to cultural, educational or informational aspects. For example, it has already run a series of competitions and prizes focused on the participation of users of the Cercanías commuter services, in addition to having a series of its own products in which the rail route promotes cultural and tourist activities in various locations.

In addition to these Renfe actions, which are explored below, the company maintains a constant policy of collaboration through sponsorship with other institutions or entities, through the link with different cultural, educational and sports events, both directly and facilitating the transport for these events, applying commercial discounts to promote the travel by rail of those attending these activities or giving up its own spaces for their dissemination among users.

Renfe cultural and educational projects

PHOTOGRAPHY CONTEST “ACERCANDO EL OBJETIVO” (ZOOMING IN THE LENS)

In 2015, Cercanías de Madrid held the seventh edition of the Photography Contest “Acercando la objetivo” which promotes this artistic discipline in different formats: reports, advertising, and creative portrait, among others; based on the Cercanías commuter train as a mode of transport that is sustainable and of environmental interest, within the metropolitan area of Madrid. A total of 989 works were presented in this 7th edition.

9TH SHORT STORY CONTEST “EL TRÁNSITO, EL VIAJE O EL MOVIMIENTO HACIA UN DESTINO” (THE JOURNEY, THE TRIP OR THE MOVEMENT TOWARDS A DESTINATION)

The aim of the competition is to involve our customers and all members of the public in this project, in which trains become a meeting point between passengers and

Pon a prueba tu imaginación... Y CUÉNTANOS UNA HISTORIAMándanos tu relato sobre “El tren y el Viaje” en menos de 99 palabras y envíalo a www.renfe.com

Un jurado cualificado valorará todas las obras para premiar las mejores.

“el tren y el viaje”

RELATOS BREVES

del 23 de ABRIL al 24 de MAYO

www.renfe.com Información y reservas en el 902 320 320 Síguenos en:

VII Certamen de Fotografía DIGITAL

del 2 -10 al 1 -11Información y Bases en www.renfe.com


*Ganadores de l V I Certamen de Fotograf ía Dig i ta l 2014


books, though writing small short stories or micro-stories. In this edition, 1,246 stories were entered and since its inception in 2007, a total of 21,000 stories have been entered for this contest.

TRIN TRAN TREN

Over Christmas, Cercanías Madrid ran the 10th edition of “Trin Tran Tren”, an area for leisure, games, storytelling and workshops on painting, music and games of skill. It is aimed at children between 4 and 11 years old, being coordinated by monitors and qualified staff. The activity is an adaptation of the well-known game of the goose and it was run in the Cercanías commuter station of Nuevos Ministerios, involving more than 3,500 children.

CATALOGUE OF SCHOOL ACTIVITIES

Renfe offers teachers and students from schools and colleges across the country the chance to travel in groups to a large number of destinations and interesting activities in a safe, fast and efficient way, with the added benefit of being able to enjoy special rates for groups of 10 or more passengers.

The Renfe Cercanías Hubs have special rates for school groups. The Cercanías Hubs of Asturias, Madrid and Valencia, as well as the medium distance trains in Catalonia, offer an extensive catalogue of school activities grouped by subject or by municipality.

The objective is to offer teachers a tool which can help them when it comes to the programming and preparation of each of the extracurricular activities proposed for each school year. It is also intended to promote the use of rail among young people, as an efficient and environmentally-friendly mode of transport.

MICRO-STORIES COMPETITION ON TWITTER

This is a micro-stories competition on twitter @renfe following the story “I fell asleep on the train and...” with the hashtag #SantJordiRodalies coinciding with the San Jordi festival.

Other cultural collaborations

COLLABORATION WITH THE CULTURAL CAMPAIGN 22 MINUTOS EN TREN (22 MINUTES BY TRAIN)

Promoted by the Council of Mataró and the Pau Gargallo School of Art in Badalona, this is an exhibition of illustrations produced by the students which reflect the daily commuting by train of the citizens of Maresme. Exhibition Stations (line R1): Mataró, Cabrera de Mar, Vilassar de Mar, Premià de Mar, Ocata, El Masnou, Montgat Nord, Montgat and Badalona (from 14 to 16 April).

CASTELL DE PERELADA FESTIVAL

Collaboration with the Castell de Peralada Festival for the dissemination of the Rodalies de Catalunya services to Figueres (R11 and RG1) and to facilitate access to this tourism-cultural event of great importance on the Coast Brava from the metropolitan area of Barcelona

Talleres de Navidad


23

22

3029

28

¡DISFRUTANDO A TODO TREN!

Estación NUEVOS MINISTERIOS

4

Mañanas de 11:00 a 13:00 h Tardes de 17:00 a 19:30 h EDAD: de 4 a 11 AÑOS 30 minutos antes del cierre de mañana y tarde se cerrarán las puertas y sólo se atenderán a los niños que estén dentro del recinto


and the rest of the region. A promotional campaign was carried out with a special discount of 30% on all trains to Figueres presenting the attendance discount card.

GIRONA TEMPORADA ALTA FESTIVAL 2015

First collaboration agreement with Girona Temporada Alta Festival for the dissemination of the Rodalies de Catalunya services to Girona (R11 and RG1) and to facilitate access and diffusion from the metropolitan areas of Barcelona and the regional area. This festival of performing arts has become a leading event that is characterised by the excellence, international nature and quality of the programmed works. The agreement consists of a promotional campaign with a discount of 30% on all trains to Girona presenting the attendance discount card when buying the ticket. Reference Renfe-Rodalies de Catalunya as the official transport company (from 2 to 25 October).

SITGES INTERNATIONAL FANTASTIC FILM FESTIVAL OF CATALONIA

Programming of a special direct night train, Sitges-Barcelona, to facilitate the return of those taking part in the evening sessions of this festival. This event is the first fantastic film festival in the world, a must for film lovers and for those who want to discover the new trends and technologies applied to cinema and the audio-visual world. Renfe appears, as a collaborating company, in the various graphic media, press announcements, digital platforms and social networks.

Promoting cultural tourism

CERVANTES TRAIN

The Cervantes Train allows people to discover the historic city of Alcalá de Henares from Madrid, enjoying an unforgettable and entertaining day in the birthplace of the most famous Spanish writer, a UNESCO World Heritage Site and an unparalleled cultural centre during the Golden Age.

This is a train journey and guided tour, enlivened by actors dressed in the style of the 17th century who

introduce the passenger to the topic of Cervantes, visiting a city that has such emblematic places as the Calle Mayor (main street), Universidad Cisneriana (University of Alcalá), Catedral Magistral (Alcalá de Henares Cathedral), the square known as Plaza de Cervantes, the house of the author of El Quijote, the theatre known as Corral de Comedias, Antezana Hospital, Oidor Chapel and the Tower of Santa Maria.

This initiative includes the train journey with a tasting of typical products, as well as a guided tour of the old town of Alcalá de Henares.

During 2015, 2,544 passengers enjoyed the Cervantes Train.

Sube al Tren de Cervantes y déjate llevar por una experiencia única Recorrido: Atocha

Alcalá de Henares

cha

alá de H

www.renfe.com 902 320 320 Síguenos en :

Tren turístico de interés cultural. Recorre en un día el increíble mundo de Cervantes. En el trayecto disfrutarás de pasajes de El Quijote y productos típicos de la ciudad. Y ya en Alcalá de Henares, visita los lugares emblemáticos de su ciudad natal.

Renfe Cercanías y el Ayuntamiento de Alcalá de Henares te invitan a conocer la única Ciudad Patrimonio de la Comunidad de Madrid: Alcalá de Henares.

www.ayto-alcaladehenares.es www.turismoalcala.es O cina municipal de Turismo: 91 889 26 94 91 881 06 34

Del 4 de Abril al 13 de JunioDel 3 de Octubre al 5 de Diciembre

Todos los sábados


MEDIEVAL TRAIN TO SIGÜENZA

The Medieval Train offers a different, original and fun way to visit the monumental town of Sigüenza from Madrid, in a journey that includes history, theatre, gastronomy and handicrafts.

After the journey, which takes a little more than one hour and twenty minutes, enlivened by actors who play the best-known characters from medieval times, the passenger can enjoy a long walk accompanied by local guides during which they can admire the city of Doncel in all its splendour, with its monumental sites such as the Cathedral, Castle, Plaza Mayor and Casa del Doncel, as well as an urban area full of charm.

The Medieval Train, which has been running since 2004, has established itself as an attractive leisure offer for those who want to discover the cultural richness of Sigüenza. Over its previous ten seasons, more than 76,000 people have enjoyed this activity. During 2015, 4,200 trips on the Medieval Train were recorded.

CAMPOS DE CASTILLA TRAIN

Renfe, Soria Council, the Soria Chamber of Commerce and the Soriana Hotel and Tourism Association (ASOHTUR), have launched the “Campos de Castilla” Tourist Train. This is a cultural tourist project which over the weekend allows people to discover the corners of Soria associated with Antonio Machado, such as Tierra de Alvargonzález and Laguna Negra (the Black Lagoon). More than a hundred years ago, Antonio Machado arrived in the city of Soria by train, in the same way as this adventure begins, transporting us back to that time in the same environment thanks to the dramatisation during the train journey.

The Campos de Castilla Train is a novel and original way of visiting Soria, discovering its nature and its history. Following in the footsteps of the author Antonio Machado, this weekend trip takes you to the most emblematic corners of Soria, in a journey full of art, poetry, landscapes and gastronomy. In its four seasons, more than 3,500 people have enjoyed the Campos de Castilla Train

TERESA OF ÁVILA TRAIN

Renfe Viajeros and Ávila Council have signed an agreement to launch the Teresa de Ávila Train. Renfe offers round trip tickets from Madrid so that people can enjoy a tourist, cultural and gastronomic day in the city of Ávila.

Customers of Renfe Media Distance who purchase a ticket for the aforementioned train will, on presentation of the ticket, have free access to the Superunda Palace-Caprotti Collection, the Post-Medieval Kilns and Ávila Mística (Mystic Avila), also enjoying a reduced rate for entry to the Walls of Ávila.

From the beginning, actors liven up the journey to Avila on board the train, informing passengers about the tourist and cultural aspects of the city and providing useful documents. More than 1,000 people have enjoyed the Teresa de Avila Train.

TOURIST TRAINS OF GALICIA

The Tourist Trains of Galicia offer passengers a unique opportunity to discover the richness of the lands of Galicia. It is a novel way to immerse yourself in its nature, heritage and culture through different possibilities: the Lighthouse Route (Ruta de los Faros), the Country House and Historical Gardens Route (Ruta de los Pazos y Jardines Históricos) and the five routes through all the Designations of Origin for Galician wine.

In collaboration with the Government of Galicia and Inorde (Ourense Institute of Economic Development), and aboard a comfortable themed train, these one-day routes offer passengers a specialised guided service throughout the route, complementary transfers by coach and tickets to all points of interest and activities.

$ Lighthouse Route. This route follows the most outstanding points along the Galician north coast, offering a different way to discover the nature of the northwest of Galicia. This train lets us discover magical places such as Cape Ortegal, the Vixía Herbeira viewpoint, the Andrés de Teixido Sanctuary, Estaca de Bares Cape and Las Catedrales beach, nature turned into art.


$ Country House and Historical Gardens Route. This allows us to visit the most emblematic Galician buildings, manor houses and castles, discovering the exuberance and romanticism of their gardens. The trip will allow us to visit the Pazo de Rubiáns manor house, the castle of Soutomaior and Pazo Quiñones de León manor house.

$ Wine Routes. The Wine Routes of Galicia allow passengers to enjoy all the wealth of winemaking and artistic heritage of the Galicia region, rediscovering the vine, wine and their land. These routes cover the five designations of origin of Galicia: Rías Baixas, Ribeira Sacra, Monterrei, Ribeiro-Rías Baixas and Ribeira Sacra-Valdeorras.

EXTREMADURA TOURIST TRAINS

The Extremadura Tourist Trains allow passengers to discover and enjoy the heritage, nature and culture of Extremadura through a series of day trips aboard a tourist train, with a complementary coach and guide service throughout the tour.

Fruit of a collaboration agreement with the Extremadura Government signed in July 2014, the Tourist Trains of Extremadura offered the following routes in 2015:

$ International Tagus Natural Park Route. Beginning and ending in Cáceres, with visits to the Cork Museum and Sierra de San Pedro Interpretation Centre, a traditional cheese maker, Valencia de Alcántara and a boat trip on the Tagus River.

$ Sierra de San Pedro Route. Beginning and ending in Cáceres, with a visit to Valencia de Alcántara to enjoy its gastronomic days and to take a walking tour through its historical centre and visit its dolmens.

$ Llerena and La Jayona Mine Route. Beginning and ending in Mérida, with visits to La Jayona Mine, the Roman city of Regina and Llerena.

$ Iberian Ham Route. Beginning and ending in Mérida, with visits to an Iberian pig farm and ham dryer, Fregenal de la Sierra and the Celtic fort known as Castrejón de Capote.

$ Monfragüe National Park and Plasencia Route. Beginning and ending in Cáceres, with visits to the National Park and the historical centre of the city of Plasencia.

STRAWBERRY TRAIN TO ARANJUEZ

The Strawberry Train is a classic in Madrid tourism, an interesting cultural and leisure excursion, which allows passengers to enjoy a journey in a historical train and a magnificent day in Aranjuez, declared a World Cultural Heritage Site by UNESCO in 2001.

The Strawberry Train travels on the second oldest line still in operation on the Peninsula (it dates back to 1851). It leaves from the Madrid Railway Museum and travels to Aranjuez station and during the trip passengers can enjoy a theatrical performance aboard the train followed by visits to the Royal Palace and the Falúas Museum, housing old royal pleasure boats, as well as other activities.

TRAINS FOR SCHOOL GROUPS: “CERCANÍAS DE MADRID”

Cercanías de Madrid has designed an offer of cultural activities aimed at school groups to discover and explore natural environments, cities and emblematic places in our culture through guided tours. To this end, agreements have been signed between Renfe and tourist companies and councils. All these activities are included in the Cercanías Madrid School Activities Catalogue, which can be found on the Renfe website: Discover Guadalajara, Discover Aranjuez, Discover Alcalá de Henares, El Escorial and San Lorenzo de El Escorial Villa, Colmenar Viejo and its surroundings and Robledo: NASA.


Commitment to sport

In addition to the many commercial agreements through which Renfe has worked to facilitate the travel arrangements for entities and clubs representing the most varied of sports, Renfe has had a special relationship with some entities from the sporting world, where it has had a greater presence and stronger relationship, especially in relation to the promotion of sport among children and young people and paralympic sport.

SPANISH PARALYMPIC COMMITTEE - ADOP PLANP

Renfe is sponsor of the Paralympic Sport Support Plan (ADOP) of the Spanish Paralympic Committee. The Spanish Paralympic Committee is the body that unites and coordinates all of the sport for people with a disability, in close collaboration with the Higher Sports Council.

The Paralympic Sport Support Plan (ADOP) is an initiative run by the Spanish Paralympic Committee, the Higher Sports Council and the Ministry of Health, Social Services and Equality which aims to provide Spanish Paralympic athletes with the best possible conditions for their preparation and therefore support the successful participation of the Spanish Team in the Paralympic Games.

The ADOP Plan includes a direct support programme for athletes offering financial scholarships so that they

can dedicate themselves to the sport as their main activity, as well as the Paralympic High Performance Programme (ARPA), a comprehensive system of training support which includes grants for support personnel, sports equipment, training in high-performance centres, attendance at international competitions and the medical service, among others.

DEPORTE JOVEN FOUNDATION

Reaching out to young people through sport, Renfe sponsors the Deporte Joven Foundation, run by the Higher Sports Council. The sporting initiatives also allow the transmission of values such as integration, achievement and effort in work, and respect. Each year, the Deporte Joven Foundation carries out, directly or as support, thousands of activities throughout Spain, annually involving more than 2 million schoolchildren and some 2,000 sports institutions or organisations throughout the country.

This sponsorship has been active since 2007 and in recent years the collaboration has focused more on providing the transport for the Foundation’s events and initiatives to publicise its activities through Renfe’s own advertising media supports.


Commitment to the environment and sustainability

Rail is the mode of passenger and goods transport with the lowest environmental impact as a whole. It is the mode that consumes the least energy per unit transported, has lower levels of CO

2 emissions,

contributes least to local pollution in urban areas, and generates a lower acoustic impact. In addition, the occupation of land by railway infrastructures is, in relative terms, significantly smaller than the space occupied by the roads.

Given the importance of tourism to the economy of our country, the prolonged modernisation of the railway is a key factor in the design of sustainable and responsible tourism that continues to present Spain as one of the best destinations in the world, where more than 37 million passengers already use our High Speed-Long Distance and High Speed Medium Distance services.

The reduced greenhouse gas emissions per unit transported are one of Renfe’s main competitive advantages. Rail, for technological reasons, if it is operated efficiently, is an essential link in any sustainable transport system for passengers and goods; urban, metropolitan or interurban; national or international, preferably multi-modal.

In addition to these specific features of this mode of transport, Renfe has an active policy of continually reducing the limited environmental impact generated by its activity. This is an integrated initiative which Renfe calls Energy Sustainability, which focuses on the energy procurement process (energy with a strong presence of renewable sources), technological innovation (regenerative braking, reversible substations, driving

simulators), training and the generation of commitment from the key groups to carbon targets (learning and improving efficient driving) and the integration of internal and external stakeholders.

All these environmental advantages, in addition to other social and economic ones such as a lower accident rate and a decisive contribution to reducing urban congestion, make the train the mode of transport that generates the lowest external costs for society.

Renfe Operadora’s services have unit emissions (per passenger or tonne-km transported) that are significantly lower than those of its competitors, which are dependent on oil.

In 2015, for each unit transported, Renfe’s carbon footprint was 52% lower than the equivalent figure in 1990 (46.56 g CO

2/UT), base year of the Kyoto Protocol,

despite the strong growth in rail traffic in recent years in terms of passengers. The main causes are the improvement in occupancy and greater energy efficiency in operating the railway.

The carbon footprint per unit transported by Renfe Operadora (24 grams of CO

2) is six times lower than the

emission limit for so-called “green” cars, exempt from the registration tax (120 g of CO

2/km). It is also possible

to approach ZERO if the electricity used comes from 100% renewable sources, which is perfectly feasible in the electricity market on the peninsula.

Therefore, Renfe still has room for improvement. In this sense, a collaboration agreement has been signed


with Adif (Railway Infrastructure Manager, Ministry of Development), so that the energy supply comes mainly from the aforementioned renewable sources.

These figures allow Renfe to position itself as a key player in mitigating climate change within the transport sector in Spain, and an essential link in any logistics chain, mobility chain, or tourist product that wishes to be sustainable.

As a result of the last Climate Summit (December 2015), we joined the international rail community which, gathered under the umbrella of the UIC, presented its Railway Climate Responsibility Pledge in Paris. More than 60 companies from all over the world, including Renfe, signed up to this pledge, aware that a more sustainable transport system is essential to achieve the goal of limiting global warming to below 2 degrees and that, despite being the most efficient mode in terms of emissions, rail is a large-scale mode of transport that also has a strong responsibility to improve its efficiency.

This commitment is embodied in two essential aspects:

$ Reduce specific energy consumption and CO2

emissions in keeping with the document “Low Carbon Rail Transport Challenge” and its targets for 2030/2050 presented in 2014 before the United Nations: 50% reduction in energy consumption by 2030 and 60% by 2050 (compared to 1990) and reduction of CO

2 emissions of 50% by 2030 and 75%

by 2050 (compared to 1990). The companies commit to reporting the evolution of the main indicators to the UIC on a regular basis to demonstrate the progress of the railway sector at the international level.

$ Encourage a modal shift to rail in national and international markets, working with other essential parts of the transport chain, raising awareness about the role of sustainable transport as part of the solution to climate change.

$ Caring for the planet is everyone’s responsibility: companies, governments, institutions, customers. Renfe has been working for years to reduce its emissions to the minimum possible in its daily operations, seeking to attract more customers with a management and modernisation effort that continues to increase the attractiveness of the train and allows passengers to reduce their carbon footprint from travel.

Renfe’s Environmental Policy

Renfe’s objective in the environmental area is to reduce or even eliminate the environmental effects linked to the provision of its services. To achieve this, the organisation complies with an Environmental Policy based on three fundamental pillars:

$ The full environmental adaptation of the railway operation through compliance with current environmental regulations and voluntary environmental commitments.

$ The showcasing of the tangible and intangible environmental assets inherent to railway operation.

$ The proper management of the environmental aspects related to the interrelationship between infrastructure and operation.

Renfe’s Environmental Commitment

Renfe’s Environmental Commitment is configured as the ‘roadmap’ on which Renfe’s environmental actions are based, embodying the obligations and commitments it acquires with the environment and its social environment, and forming part of the organisation’s commitment to sustainable development.

Renfe is committed to:

$ Establishing its environmental commitments, publicly and in writing.

$ Assuming voluntary environmental commitments, going beyond scrupulous compliance with the current environmental regulations by Renfe.

$ Developing the most appropriate management tools to reduce, or even eliminate, such environmental impacts by adequately providing the necessary means and internal procedures.

$ Establishing adequate channels for the participation of stakeholders in the environmental management of Renfe.

$ Checking the effectiveness of its environmental management by monitoring its implementation and compliance, and by constantly updating it and adapting it to the demands of society.

From this commitment comes a list of Environmental Rules that govern Renfe’s Environmental Management System.


Renfe’s Environmental Rules

1

Comply with the current environmental legislation and environmental commitments acquired, collaborate with the official bodies responsible for its supervision and operation, in particular with the infrastructure managers, as well as promote new voluntary initiatives for environmental improvement.

2

Require partner companies, subsidiaries, contractors and suppliers to have the same commitment to complying with environmental legislation, this requirement being put into practice through the policies for the procurement of goods and services, for example through the responsible procurement procedure.

3Establish, in the operational and business areas and corporate bodies that make up Renfe, environmental monitoring systems based on self-control, using procedures for the attribution of responsibilities and supervision of environmental management.

4 Implement programmes that allow a continuous improvement in the efficiency of the energy resources employed.

5Achieve an efficient use of water and non-energy natural resources, reducing the use of toxic materials, replacing these with least harmful alternatives that technology allows.

6

Adopt the appropriate measures in the management of facilities and services, in the operation of the railway and in the acquisition of new material, in order to minimise the generation of waste and pollution levels, contributing to the reduction of noise, atmospheric emissions and greenhouse gases.

7

Implement the principles contained in this code, in each and every one of the areas of activity and business and corporate bodies of Renfe, in the form of specific targets and action programmes of a regular nature, in keeping with the other policies, and in particular with those on quality, safety in circulation, civil protection and occupational health and safety.

8

Support the adoption of specific commitments for continuous environmental improvement by the areas of activity and business and corporate bodies based on the implementation, certification and regular auditing of environmental management systems and integrated systems for facilities and services.

9Implement systems of training, awareness raising and environmental motivation for employees from all areas of activity and business and corporate bodies of the company.

10

Establish programmes that, while guaranteeing maximum respect for the environment, promote accessibility and sustainable and safe mobility, develop communication and dialogue with the environmental stakeholders, and showcase the tangible and intangible environmental assets of Renfe.


Environmental expenditure and investment

Renfe applies the legislation regarding environmental protection to all its operations, including suppliers. As a result, the organisation has taken the appropriate measures in relation to the protection and improvement of the environment and the minimisation, where appropriate, of its environmental impact, in compliance with the legislation in force in this regard.

ENVIRONMENTAL EXPENDITURE

According to the figures at the close of the 2015 financial year, environmental expenses have been incurred for a total of €2,840,000, showing a significant increase compared to 2014 due to the specific application of the soil and water quality programmes. This expenditure can be broken down into the following items:

Item 2015 2014

Prevention of contamination of soil and water

2,440,000 € 130,000 €

Management and treatment of sundry waste

176,000 € 134,000 €

Management and treatment of hazardous waste

191,000 € 274,000 €

Management and treatment of water waste 28,000 € 35,000 €

Other 5,000 € 24,000 €

Total 2,840,000 € 597,000 €

ENVIRONMENTAL INVESTMENT

Regarding investments of an environmental nature, some €2.5 million (€2.503.000) has been allocated, a figure similar to 2014.

€1.682 million has been spent on the Energy Management Improvement Programmes for the 102, 112, 130 and 730 series.

The remainder has been spent mainly on the Renfe Fabricación y Mantenimiento workshops, through initiatives related to the adaptation of hazardous waste stores, elimination of sources of soil contamination, adaptation of air conditioning, improvement in energy management, renovation of lighting and installation of meters, etc.

ENVIRONMENTAL FINES

During the financial year 2015, Renfe has no record of sanctions for environmental reasons.


CONSUMPTION: ELECTRICITY AND DIESEL

In 2015, nearly €320 million was allocated to electricity and diesel fuel, in terms of both traction and non-traction uses, slightly improving (-1.8%) on the figures for 2014 despite the increase in its activity.

It should be noted that Renfe Operadora is the largest end consumer of electricity in the services sector in Spain and the second largest consumer of electricity.

Energy expenditure in € 2011 2012 2013 2014 2015

TractionElectricity 234,080,314 236,700,232 253,723,092 232,857,346 264,111,344

Diesel 48,851,582 53,351,780 47,925,422 51,735,315 33,642,810

Total traction 282,931,896 284,592,661 290,052,012 301,648,514 297,754,154

Non-traction 19,641,291 21,155,162 23,031,147 23,632,267 21,737,302

Total Energy 302,573,187 305,747,823 313,083,159 325,280,781 319,491,456

CONSUMPTION: WATER

Expenditure totalled €1.595 million in 2015, a considerable reduction in expenditure of 8.1% compared to the figure of €1.736 million in 2014.

Renfe Operadora’s strategic contribution to sustainability

SAVINGS IN EXTERNAL COSTS

For 2015, Renfe has evaluated the monetary savings generated by its services in terms of external costs, resulting in a record figure of €1,703 million for this item.

The study is based on the assumption of the “non-provision of railway services by Renfe” and the replacement of these journeys with other competing modes of transport.

METHODOLOGY USED

As we indicated in the 2011 Annual Report, in that year the consultants CE Delft, Infras and Fraunhofer ISI published a study that covers the components and adapts the existing methodology to the principles of the study “Internalisation Measures and Policies for All External Costs of Transport –IMPACT”.

The main objective of this study is to quantify the external costs generated by transport, using the most up-to-date scientific knowledge and providing a manual that allows the development of transport policies aimed at correcting current failures in the European transport market, internalising the costs of each mode.

External costs are costs generated by the different transport modes and by their users that are not paid by

them but instead are paid by society as a whole. These costs include, among others, congestion, pollution, accidents, noise and other damage to nature and the landscape.

The main contribution of this study is to demonstrate, with standardised and scientifically accepted measurement procedures, that rail is the mode that generates the least external costs, especially compared to other competing modes.

Finally, it should be noted that the scale of the external costs of transport is very significant: of the order of 6% of GDP in Spain if we consider congestion costs to be external costs (see attached table).

Size of External Transport Costs

EUROPE

External costs > €500,000 Million

( 4% European GDP)

External costs + congestion

> €700,000 Million ( 5-6% European GDP)

SPAIN

External costs > €42,000 Million

( 4% Spanish GDP)

External costs + congestion

> €66,000 Million ( 6% Spanish GDP)


APPLICATION OF THE METHODOLOGY IN RENFE

Renfe, on the basis of the methodology described, conducts its annual study of the external cost savings using a modal substitution assumption.

This modal substitution assumption, endorsed by the Transport Economics Department of the University of Leeds, is as follows:

$ Commuter train services: $ 80% Car urban area $ 20% Bus

$ Medium Distance Services: $ 80% Car interurban area $ 20% Coach

$ High Speed Services - Long Distance $ 50% Car interurban area $ 10% Coach $ 40% Plane

$ Goods and Logistics Services: $ 100% Lorry

The new methodology of the study and all the data it provides allow a much more specific evaluation of the savings by service and for each of the Autonomous

Communities, taking into account factors such as occupation, electricity/diesel percentage and the application of congestion costs in services where it really has a great impact, such as in the urban and metropolitan area.

MAIN RESULTS

The main results of the analysis under the assumption of the non-existence of Renfe’s services in Spain are as follows:

Millions of € 2015 2014

External costs produced by Renfe 471 469

External costs that would have been generated by substitute modes of transport

2,174 2,125

Savings from passenger and goods trains 1,703 1,656

As can be seen from the table, the external costs generated by Renfe are, on average, 4.5 times lower than those generated by its direct competitors.


Distribution of savings by type of service

Millions of € 2015 % 2014 %

Goods 298 17 331 20

Passengers

High Speed - Long Distance 717 42 646 39

Cercanías Commuter trains 520 31 513 31

Medium Distance 168 10 166 10

Total Passengers 1,405 83 1,325 80

Total 1,703 100 1,656 100

Distribution of the external cost savings

Millions of € 2015 % 2014 %

Accidents 681 40 679 41

Climate change 783 46 712 43

Urban congestion (1) 170 10 166 10

Other components (2) 69 4 99 6

Total 1,703 100 1,656 100(1) Evaluated only for Cercanías Commuter services(2) Pollution involving the atmosphere, noise and nature and the landscape, upstream and downstream waters, urban effects, biodiversity losses and water and soil contamination

ALTERNATIVE JOURNEYS AVOIDED

Working on the assumption of the “non-provision of railway services by Renfe” and substituting the real transport provided by Renfe, for both passengers and goods, with other alternative modes of transport, we can calculate the millions of journeys that the train has avoided:

$ Cars: 348 million journeys $ Lorries: 4 million journeys $ Planes: 104,500 journeys

Information produced from the data in the study “External Transport Costs in Europe” from 2011.

ENERGY CONSUMPTION AND EMISSIONS AVOIDED

The modal substitution study shows that the savings in emissions and energy consumption produced in Renfe in 2015 were:

$ Ahorro de emisiones CO2: 3,5 Millones Toneladas CO

2

$ Ahorro de energía: 1 Millón Toneladas equivalentes de petróleo

These emission savings figures represent an order of magnitude equivalent to the electricity consumption of the households of a population of fourteen million, similar to those in the Autonomous Communities of Andalusia or Valencia.


Energy Consumption

In 2015, despite the significant increase in passenger numbers, the unit figures for energy consumption improved, mainly due to the increase in the occupancy of trains, showing a slight improvement with respect to 2014, of 2.1%, which leaves the energy efficiency ratio very close to 100 Wh/UT.

2015 2014 % 2015/2014

Millions of litres of diesel 75.77 78.98 -4.1

GWh diesel 752.4 784.3 -4.1

GWh Electric traction 2,422.5 2,431.6 -0.0

Total GWh 3,174.9 3,215.9 -1.3

Millions of Units Transported 31,905.4 31,310.0 1.9

Wh/UT 100.5 102.7 -2.1

It is also important to note that there was a decrease in total traction energy consumed by 1.3% in this environment of growth in the supply by Renfe.

Also of note is the extension of the remuneration of the energy recovered by regenerative braking in alternating current from high-speed traffic on the Madrid-Levante line and in sections of the Madrid-Barcelona-French border line.

Of potentially greater importance in the future is the result of the first full year of operation of the Reversible Modular Substation in direct current pilot project in the substation of La Comba, on the Málaga-Fuengirola line, thanks to collaboration with Adif. The savings, generated in the whole line by that one substation, amounted to 13% of total consumption, according to the infrastructure manager, which raises expectations about the extension of this technology to the conventional network.

Evolution of primary energy sources for traction consumption

Primary energy sources are the energy resources used to generate the energy ultimately consumed. In the production of electricity in the peninsular electricity system, these primary energy sources are each of those used in different proportions in the peninsular mix of electricity production. The published data for this mix are those used in this report.

In the year 2015, the peninsular mix was characterised by an intensive use of coal, gas and nuclear energy in generation, to the detriment of renewable sources, which has caused the carbon footprint of each kW/h produced in 2015 to be 42% higher than in the previous year.


This has worsened Renfe’s CO2 emission figures,

although this has been partially offset by greater energy efficiency in the traction of trains, and by higher occupancy of these.

In addition to electricity, Renfe directly uses low-sulphur diesel fuel with stable carbon ratios.

Energy consumption for non-traction uses

The non-traction uses, mainly electric, represent 6.5% of the total and are mainly the energy consumption generated in stations, workshops, and offices.

POLLUTING EMISSIONS DERIVING FROM ENERGY CONSUMPTION

Greenhouse gas emissions

Low greenhouse gas emissions per unit transported are one of rail’s main competitive advantages.

In 2015, Renfe’s services had unitary emissions (per passenger or tonne transported) that were significantly lower than those of its competitors, between 6 and 7 times lower compared to cars or aviation.

The following figures show how the carbon footprint of each unit transported has been reduced by 52% compared to the figures for 1990 (46.56 g CO

2/UT), the

base year of the Kyoto Protocol.

These figures allow Renfe to position itself as a key player in mitigating climate change within the transport sector in Spain, and an essential link in any logistics or mobility chain that wishes to be sustainable.

2015 2014

kg CO2 due to electricity (indirect emissions) 571,710,000 403,645,600

kg CO2 due to diesel (direct emissions) 201,548,380 210,086,800

Total kg CO2 773,258,380 613,373,400

g CO2 /UT 24.26 19.60

Reduction from the base of 100 in 1990 52.10% 57.90 %

Emissions figures used:

2015 2014

kg CO2 emitted / kWh 0.236 0.166

kg CO2 emitted / litre diesel 2.66 2.66Source: "Observatory of electricity. January 2016" from WWF Spain for emissions per kWh and Ministry of Agriculture, Food and the Environment for emissions per litre of diesel.

2015 2014

CO2 emissions eq

Total kg CO2 (thousands) 774,025 613,373

CO2 emissions eq (thousands) 774,033 613,379

Radioactive waste generated by Renfe consumption (indirect waste)

Low and medium activity in m³ 6.735 5.714

High activity in kg 552.233 695.438


Main sustainability indicators

WATER MANAGEMENT

The main points of water consumption in Renfe are the maintenance facilities, such as workshops and train treatment centres, train stations, and to a lesser extent the offices. In these facilities the extraction point is the general water distribution network. No water is taken from wells or springs.

2015 2014 % 2015/2014

Consumption of water m³ 941,651 1,023,534 -8%

Waste water

The waste water generated at Renfe’s facilities is mainly discharged into the general sewerage networks, although there are facilities where water is generated with chemical substances, due to industrial processes, this being treated prior to discharge into the general network. In the case of industrial installations, all these discharges are for a volume similar to that of the previous consumption.

Renfe allocated an amount of €28,000 in 2015 for the management and treatment of waste water.

Water saving processes

In terms of saving measures, we can highlight the use of reducers in water outlets and the recycling of the water used in the washing tunnels, the installation of saving systems and staff awareness about the need to be careful about the consumption of water.

Also worth mentioning is the optimisation of vehicle cleaning and manual washing in some trains and the maintenance of facilities with taps with automatic and timed push buttons, as well as the installation of presence detectors in station and office toilets.

CONSUMPTION OF MATERIALS

Renfe’s consumption of materials is mainly carried out in the train maintenance workshops, corresponding largely to oils, solvents and paints. In terms of paper consumption, in addition to that produced

in workshops and offices, a large part is due to consumption for the printing of passenger tickets.

Kg. 2015 2014 % 2015/2014

Oil/grease 315,302 319,674 98.6

Paint 130,003 125,448 103.6

Paper and cardboard 76,890 87,286 88.1

Sand 40,763 41,647 97.9

Initiatives developed in the offices to reduce paper consumption include the application of best practices for its use, such as the preferred use of electronic files, the use of recycled paper, printing on both sides, in black and white, not forgetting raising the awareness of staff about reducing colour printers and configuring printers with grey scales.

WASTE MANAGEMENT

Renfe has a series of specific procedures, in accordance with State Law 10/98 on Waste, to carry out the appropriate management of the waste it generates.

Renfe contracts the collection, management, treatment and recycling services for the management of hazardous waste, classified as such in accordance with the relevant legislation (Royal Decree 833/1988, Royal Decree 952/1997 and Order MAM/304/2002), from companies authorised as managers by the public administrations for such purposes.

During the year 2015, 1,107 tonnes of hazardous waste was generated.

Minimisation initiatives include participation in waste management system programmes, training and awareness events, and participation in programmes with Canon and HP for the recycling of toner cartridges and printing and inkjet consumables

Of note are the installation of paper recycling containers, the availability of paper and cardboard compactors, and the selective collection of waste in different containers (paper, toner, batteries, etc.).

Finally, the collection by companies supplying computer equipment of parts and other electric and electronic components continues.


Management of contaminated soils

The Renfe Steering Committee approved an Action Plan on Contaminated Soils, which includes actions for the classification and control of contaminated soils and their decontamination, in the facilities for the manufacture and maintenance of railway material.

In addition, Renfe and Adif signed a collaborative agreement on soil decontamination in order to initially act in eleven Fabricación y Mantenimiento workshops, potentially affected by historical contamination or where there are Adif fuel tanks from prior to the segregation of the two companies and assets from the aforementioned segregation.

As a result of the Action Plan and the Collaboration Agreement with Adif, Renfe has carried out several actions related to the prevention of contamination. The specific actions carried out in our facilities include: classification studies, control and monitoring of the evolution of indicators, and the performance of decontamination work.

These actions have been carried out on a voluntary basis and coordinated with the environmental authorities applying the principle of prevention and using the best available techniques, with the collaboration of the public company EMGRISA.

2015 has been characterised by the high level of activity in this area, especially due to the characteristics of the real estate assets received from the former FEVE.

IMPACT ON BIODIVERSITY

Renfe’s main interactions with biodiversity are likely to be produced in facilities located near or in protected natural areas. Renfe manages 67 facilities located in protected natural areas or in areas close to such spaces. Of these, 55 are Cercanías Commuter stations and 12 are railway material maintenance workshops.

The Renfe facilities in natural areas or areas of high biodiversity occupy an area of 0.2608 square kilometres. The exact calculation of this occupied area is pending the definitive decision on the split of the assets between Renfe and Adif.

See the table on the natural areas affected by Renfe facilities (Annex 6)

TRANSPORT OF HAZARDOUS GOODS

Due to its raised safety levels, the transport of hazardous goods by rail is a key element for the protection of land and aquatic ecosystems and human-inhabited environments since this avoids other types of transport which have a greater risk of accidents and, therefore, a greater impact on biodiversity and human health.

Renfe transported more than 1.5 million tonnes of hazardous goods in 2015, 4.8% fewer than in 2014, which is equivalent to about 50,000 heavy good vehicles per year.

Most correspond to liquefied hydrocarbon gas mixture, ethanol and ammonia.

Tonnes 2015 2014 % 2015/2014

Liquefied hydrocarbon gas 246,517 270,772 -8.96

Ethanol 263,874 254,122 3.84

Sulphuric Acid 71,622 81,370 -11.98

4-Thiapentanal 102,444 103,211 -0.74

Sodium Hydroxide 93,958 98,272 -4.39

Anhydrous Ammonia 123,968 181,166 -31.57

Other Environmentally Hazardous Liquid Materials 81,042 68,303 18.65

Butadienes 37,060 44,465 -16.99

Stabilised Styrene Monomer 36,993 39,019 -5.19

Other hazardous goods 484,754 494,508 -2.0

Total 1,556,072 1,635,208 -4.8


FIRES ON AND AROUND THE TRACKS

Over the last ten years, Renfe has reduced the fires attributable to railway activity by a factor of 4 in relative terms, or by a factor of 6 in absolute terms.

Renfe exhaustively controls the trains that circulate in areas at special risk of fires, such as tracks near woodland areas or protected natural areas.

Here it works on the basis of the information included in the IREN Project Map (Adif Inventory of the Network of Natural Spaces). This is a map of the whole of Spain that includes a complete inventory of the railway network in service, the disused lines, the green ways and the protected natural spaces catalogued.

Fires per Million train-km, annual

1.50

1.20

0.90

0.60

0.30

0.0020062005 2007 2008 2009 2010 2011 2012 2013 2014 2015

0.79

1.21

0.89

0.68

0.87

0.63 0.65 0.61

0.34 0.270.35

Fire Prevention Plan: an example of businesses adapting to climate change and environmental cooperation between companies and administrations

As it has in each year since its creation in 2005, in 2015 Renfe has prepared and implemented a Forest Fire Prevention Plan. This Plan was produced taking into account the data and map of the location of the fires that occurred during the previous years in the General Interest Rail Network.

The actions, in addition to taking into account the published rules in force, are carried out and intensified in each campaign through repeated awareness raising among all the company’s staff. The campaign runs from June to September and can be brought forward or extended depending on the weather.

Among the actions that Renfe has carried out in 2015 to reduce the risk factors for fires, the following measures should be highlighted:

$ Campaign to raise awareness among the Renfe Group’s workers, consisting in the publication of a diptych for each Renfe employee and a poster that is displayed in all Renfe Group facilities.

$ Meetings with Public Administrations and Institutions $ Coordination with Adif $ Special transport plans $ Technical Inspection of material in service campaign $ Surveillance of trains $ Campaign for communication and awareness raising $ Production of the fire risk map $ Use of synthetic brake shoes in freight wagons $ Overflow valve to prevent brake overloads $ Control of leaks and anti-sparks

These results are part of the efforts being made in relation to the adaptation to climate change, responsible for example for the greater regularity and incidence of heat waves.

It is also a very interesting case considering that it is part of concerted action by different companies, entities and institutional levels. It is a good example of state-


level cooperation and integration on environmental management.

Fires on and around the tracks

0%

20%

40%

60%

80%

100%

2014 2015

Causes unrelated to the railway

Possible attribution to the railway

Unclear Causes

0,9%1.3%

97.8%

0,0%0.9% 0.0%1.4%

98.6%

During 2015, of the eight fires with possible shared Renfe/Adif responsibility, seven were caused by stiffened axles or problems with the handbrake and only one due to the absence or breakage of a brake shoe. Seven of these were caused by goods trains and one by a passenger train.

As mentioned above, there has been a sharp reduction in the percentage of fires with possible attribution to the railway system over the last few years compared to the total number of fires recorded at the side of tracks, falling from 7.03% in 2006 (with 48 fires) to 1.4% in 2015 (with 8 fires).

REDUCTION OF THE ACOUSTIC IMPACT

Renfe is doing important work on the reduction of noise emission and the prevention of fires, especially in the transport of goods. This mainly involves limiting the noise in the emission phase, especially through the use of synthetic brake shoes.

With 41% of shoes on freight wagons currently being synthetic, Renfe is one of the European railway companies with the most ‘silent’ train fleet. In the medium term, half of the Renfe Mercancías y Logística fleet, the most heavily used part and that providing the most services, will be equipped with brake systems that reduce noise by up to 10 decibels

(in many cases this reduction is half the perception of the environmental noise). These shoes also reduce the risk of fire.

% Wagons with synthetic shoes

0%

20%

40%

60%

80%

100%

2014 2015

Wagons without synthetic shoes

Wagons with synthetic shoes

59.2%

40.9%

59.0%

41.0%

In its technical specifications, Renfe Mercancías y Logística requires new wagons to come equipped with synthetic shoes of the ‘K’ type, which means that the wagons currently in the process of being built or put out for tender will have these shoes installed.

It should be noted that this 41% of the total number of wagons carries most of the traffic, with the amount of “silent” traffic reaching up to 70%.

Training and disseminationamong workers

Renfe carried out various environmental training and dissemination initiatives for employees during 2015.

ENVIRONMENTAL TRAINING

$ Integrated Quality System and the Environment: Of a cross-cutting nature and a two-hour duration, this training provides the theoretical and practical knowledge about the quality systems and the environmental policy and legislation.

$ Environmental Awareness: This six-hour training course, aimed at all professional categories, provides information about the environmental policy, its application and the need for collaboration in protecting the environment, promoting behaviour that is environmentally-friendly.


$ Efficient Driving: One-hour environmental module, included in the Maintenance Refresher courses of the Driving with Simulator Qualification and directed specifically at the drivers, considered as a key piece of the chain for the energy efficiency of Renfe-Operadora.

$ Environmental Management in Workshops. This specific training provides the theoretical and practical knowledge to manage the environmental management systems in the industrial area.

OTHER

$ Teaching of sustainability issues provided in the training programmes for full-time staff such as the Future programme and the Business Management Development Programme.

$ Carbon Footprint Workshops have also been run and, in collaboration with the Spanish Quality Association (AEC), European Experts in Environmental Management have been trained.

WORKING GROUP ON THE ENVIRONMENT

Renfe has a permanent working group within the company that acts as a joint body providing information and allowing for deliberation between the company and the legal representation of the workers, on environmental management and its relationship with occupational health and safety. This working group was formed in 2000 as an advisory body to the Occupational Health and Safety Committee. During this year it has particularly contributed to identifying and resolving the specific problem of the assets inherited from FEVE.

Promoting sustainable mobility with our customers

THE TRAIN AND THE BICYCLE

With the idea of favouring integrated sustainable mobility solutions for cities, the case of Cercanías Madrid stands out. Since 2011 it has allowed any customers who so wish to travel with their bicycle on trains around the entire hub, any day of the week and at any time, within the operating hours of the service.

Therefore, progressively, and to promote train-bicycle intermodality, stations in the Cercanías network are being equipped with a parking area for bicycles.

In the case of Rodalies de Cataluña, bicycle racks are provided in 36 stations and bicycle stations in 8 stations.

In the Valencia, Murcia, Alicante and Zaragoza Cercanías, bicycle racks and motorbike racks have been installed, with the collaboration of the Councils for the assignment of spaces for the installation of bicycle racks.

ENVIRONMENTAL INITIATIVES WITH CUSTOMERS

Trains travel through places of great interest and environmental value and provide the opportunity for sustainable access to these areas, showcasing them. There is an extensive offer in this regard. We can provide some examples:

$ Beach trains: especially in the north of the Meseta plateau, travelling to the beaches of the Bay of Biscay, the train offers an environmentally-friendly way to visit the coast’s natural resources.

$ Nature train: Programme aimed at groups of children and young people with a guided tour and various activities within the Environmental Education Programme of the Guadarrama Mountains, such as hiking, cross-country skiing, environmental training or wildlife recovery.

$ Metric gauge tourist trains. The wide range of metric gauge tourist trains allow for mobility between some of the most beautiful corners of Spain, winding along the coast, inland or in the foothills of the Cantabrian Mountains.

$ There are offers for groups in medium distance for the southern Market in Riofrío (Granada), Fuentepiedra and El Chorro (Málaga)

$ The promotion of the 2013 Cercanías Valencia School Guide offers environmental proposals.

$ The promotion of medium distance school trips includes a visit to the Ojos Negros Green Way.

$ In the more urban areas, ZooBcn and Marineland by Rodalies Catalunya offer a combined ticket.


Commitment to ethics and good governance

Renfe has a management model based on the fundamental principles of ethics and transparency. The company applies strict procurement principles, with the aim of optimising the relationship between cost, quality and features in all of the procurements and purchases the company makes. In its procurement procedures Renfe applies the general principles of publicity, transparency, non-discrimination and equal treatment, confidentiality, proportionality and free competition. Both the procurement areas and the other bodies involved in the procurement process take the necessary measures to ensure the application of the aforementioned general principles.

Since 2014, on its website the Renfe Group has published the Transparency Portal in compliance with Law 19/2013, of 9 December, on Transparency, Access to Information and Good Governance. In this portal the Renfe Group companies regularly publish important updated information to ensure the transparency of their activities, making them available to the public. Through the portal, and the other communication channels established to comply with the Transparency Law, the Group companies have handled 29 information requests during 2015.

This approach is also reflected in its commitment to the ten principles of the United Nations Global Compact that promote the fight against corruption and respect for human rights and the environment.

United Nations Global Compact

Since 2005, Renfe has been a signatory of the United Nations Global Compact, an international initiative promoted by the United Nations with the aim of involving the member organisations in a voluntary social responsibility commitment.

Adherence to the Compact implies compliance with its ten principles in the areas of human rights, labour, the environment and anti-corruption.

PRINCIPLES OF THE UNITED NATIONS GLOBAL COMPACT

1. Businesses should support and respect the protection of internationally proclaimed human rights.

2. Businesses should make sure that they are not complicit in human rights abuses.

3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

4. Businesses should uphold the elimination of all forms of forced and compulsory labour.

5. Businesses should uphold the effective abolition of child labour.

6. Businesses should uphold the elimination of discrimination in respect of employment and occupation.

7. Businesses should support a precautionary approach to environmental challenges.

8. Businesses should undertake initiatives to promote greater environmental responsibility.

9. Businesses should encourage the development and diffusion of environmentally friendly technologies.

10. Businesses should work against corruption in all its forms, including extortion and bribery.

Since the moment of its incorporation into the Global Compact, Renfe has been producing Progress Reports, documents that show the commitment and progress achieved in the implementation of the ten principles.

Code of Ethics

Inspired by the Ten Principles of the Global Compact and by other national and international agreements and standards such as the OECD Guidelines, the International Labour Declaration (ILO) and Law 19/2013 on Transparency, Access to Public Information and Good Governance, the Renfe Group (Public Business Entity RENFE-Operadora, Renfe Viajeros, S.A., Renfe Mercancías, S.A., Renfe Fabricación y Mantenimiento,


S.A. and Renfe Alquiler de Material Ferroviario, S.A.) has produced and disclosed a Code of Ethics that includes the principles for action that govern all employees in the areas of human rights, respect for people, responsible relations with the environment, anti-corruption, loyalty to the company, integrity, professionalism and competence, confidentiality and the use of resources, among other aspects. It is therefore the framework for action used by employees in their daily work, in the relationships with other employees, customers, suppliers, the government and society in general. The principles of this code are also applicable to the suppliers and other groups that interact with the Renfe Group to the extent that its values, principles and norms can be applied to them.

The Renfe Group’s Code of Ethics was approved by the Board of Directors of RENFE-Operadora on 29 April 2014 and it has a Code of Ethics Committee which, among other functions, promotes the dissemination and application of the Code, modifies its content if so required and manages the ethical channel.

This channel ([email protected]) is a communication space that allows any of the Group’s stakeholders to raise their queries, make suggestions or report possible breaches of the rules set forth in that code. It is a confidential channel, but not anonymous. At the close of 2015, 17 consultations and complaints had been received and these were processed through the procedure established for this purpose.

Also in 2015, communication initiatives were run to promote the awareness and dissemination of the Code of Ethics, with highlights including the posting of both the full text of the code and a summary document in a friendly format on the main page of the intranet. A questionnaire was also designed that invited employees to reflect on the application of the contents of the code to specific situations within the company. New employees also had an explanatory session on the Code of Ethics within their welcome programme in the company. The documents for the code led to 2,464 consultations and the questionnaires were filled out by 323 employees.

Control system

As regards external supervision, the subsidiary companies of the Renfe Group, which are considered to be Group companies for the purposes of accounting consolidation, are obliged to have their annual accounts supervised by an external auditor. The review of accounts for the 2015 financial year was carried out by the company KPMG Auditores, S.L. The main companies in the Group, directly reporting to the Public Business Entity (Renfe Viajeros, S.A., Renfe Mercancías, S.A., Renfe Fabricación y Mantenimiento, S.A., Renfe Alquiler de Material Ferroviario, S.A.) submitted reports without qualifications in 2015.

For its part, the Public Business Entity RENFE-Operadora is subject to the supervision of the General Intervention Board of the State Administration (IGAE), through the National Audit Office, for both the individual and consolidated accounts.

Internal supervision is also carried out by the Internal Audit Department, which provides the Group with an independent body that helps to guarantee compliance with the established rules, policies, plans, procedures and objectives, as well as the safeguarding of the assets, the reliability and integrity of information and the economic and efficient use of resources, providing improvements in control systems.

Among the main tasks carried out by the Internal Audit Department in 2015 are the carrying out of audit and assurance work as well as work on consulting and other specific reports; the design of a model for the organisation and management of the prevention of criminal risks and the definition and establishment of controls in the scope of the Risk Management System; the preparation of the Corporate Governance Report 2014 and the execution of various communication actions both internally and externally, aimed at consolidating an audit culture in the organisation.

Also part of the control system are the commissions and committees responsible for establishing and supervising the control devices and other areas of the company.


Renfe Sponsorships

When it comes to participating in a sponsorship initiative, understood as providing promotional or advertising support for events and activities in different areas, Renfe always takes into account two key aspects: its customer focus and the commitment that as a public company it has to society and the environment in which it operates. The sponsorship participation strategy in Renfe mainly uses two routes: the facilities in terms of movement by railway (to facilitate the train travel of those attending the sponsored events) and the use of the company’s own diffusion and promotion channels (video aboard trains, actions in Renfe’s social networks, signs in Cercanías train stations, etc.). Through these two channels, commercial and brand diffusion, it is also possible to achieve a greater synergy between Renfe and the sponsored actions or events.

Regarding the sectors or areas of interest, the company maintains an ongoing sponsorship relationship with different institutions and entities from multiple sectors,

being open to considering proposals from practically any sector. In 2015, Renfe received 438 requests for sponsorship, 16% more than the previous year (when 376 were received). Most of the proposals were linked to sporting, artistic or professional events (workshops, conferences, etc.), the latter being especially interested in the commercial and travel options that Renfe could offer to professional or sector events.

MOST OUTSTANDING SPONSORSHIP ACTIONS IN 2015

Sponsorship of the film “Ocho apellidos catalanes”

The train was one of the key settings in the film “Ocho apellidos catalanes”, the second part of the highest grossing film in the history of Spanish cinema. In the film, the train is the means of transport used to move the protagonists around the peninsula (Andalusia, Basque Country, Community of Madrid, Catalonia), with specific scenes aboard the train and in some railway stations. In addition to the presence


of the train in the scenes, Renfe also participated in promotional initiatives on Social Networks, with its followers, as well as internally with employees, and in various advertising initiatives in different channels, especially on the Internet.

The film has become the third highest grossing film in the history of Spanish cinema and Renfe managed to accumulate audiences of 23 million viewers in the different television advertising formats and media, as well as almost 6 million in audiences in platforms such as Facebook, with an organic (shared) reach of 8 million.

Hay Festival Segovia 2015

One of the most interesting cultural events to take place in Spain involved the collaboration of Renfe, especially in relation to travel. The Segovia “Hay Festival”, which celebrated its 10th edition in 2015, involved a wide selection of cultural activities, meetings, debates and conferences. The collaboration of Renfe consisted in laying on a special train for the transfer of guests (including Ambassadors from participating countries and Spanish authorities), the media and fans who were going to attend the official opening. During the rest of the days of the festival, in addition to facilitating access to Segovia, the High Speed connections that connect Segovia with Valladolid and Madrid, as well as the rest of the services in the north-east of the peninsula, served as elements to publicise the festival, through the placement of special signs.

Other collaborative actions have taken place in 2015 with congresses, professional meetings in various sectors, as well as with other cultural forums or foundations or festivals of different artistic events, interested in the support of Renfe.

FUNDACIÓN DE LOS FERROCARRILES ESPAÑOLES (SPANISH RAILWAYS FOUNDATION)

Renfe is a patron of the Spanish Railways Foundation (FFE), a cultural entity whose purpose is to promote the awareness and use of rail through cultural activities, courses and studies, among other initiatives.

The Foundation has among its objectives: to ensure the preservation of the historical and cultural heritage of rail, to promote awareness and use by society of

rail, to promote specialised training and research on rail, to disseminate, through the publication of regular publications and other media, the technical, economic and social aspects related to today’s railways, as well as to disseminate the cultural aspects and the socio-economic and environmental benefits of rail transport.

Among the main activities sponsored by Renfe in 2015 are:

“Caminos de Hierro” (Iron Tracks) Photography Competition

The photography competition “Caminos de Hierro” was created in 1986 by the Spanish Railways Foundation to encourage and promote photographic artistic activities in the railway environment through its passengers, stations, trains, tracks, tunnels and so on.

Since its creation, this competition has attracted more than 30,000 photographers, with more than 75,000 photographs being entered, coming not only from Spain and other European countries, but also from Africa, America and Asia.

The contest supports the new photographic trends and focusses on the participation of young photographers, through the Young Author Prize, created in 1995. From March 2014 until January 2016, the winning and selected works from the 27th edition were exhibited in the halls of the main railway stations.

In October, the call for entries for the 28th “Caminos de Hierro” competition was made and the deadline for presenting photographs will remain open until February 2016.

Green Ways

Rail, the most ecological means of transport, provides us with new forms of leisure through the railway tracks that are no longer used.

In Spain there were more than 7,600 kilometres of disused lines in 1993. This heritage of great historical and cultural value has been rescued from oblivion and from its total disappearance, since it offers an enormous potential for initiatives that reuse it for ecotourism purposes, in keeping with the new social demands.


These old railway tracks are being adapted to create routes for cyclists and walkers, accessible for people with disabilities or reduced mobility. Currently there are more than 2,400 km of Green Ways.

The Green Ways are an ideal tool to promote a new culture of leisure and outdoor sports, and non-motorised mobility, in our society. They represent clear support for the cycling culture, generalising its use to include all members of the public, playing an important educational role, especially for the young.

“Antonio Machado” Train Poetry and Story Awards

The “Antonio Machado” Train Poetry and Story Awards follow in the footsteps of the long history of the “Antonio Machado” Short Story Award, launched by Renfe in 1977 and since 1985 organised by the Spanish Railways Foundation. In 2002, by agreement of the Board of Trustees of the Spanish Railways Foundation, after 25 years of the Short Stories Award, the first edition of the Antonio Machado Train Poetry and Story Awards was convened. In 2015, the Train Awards have changed and are now biennial.

This year an agreement has been established with Renfe Viajeros to make a selection of stories and poetry that have won the Train Awards since 2002 available to +renfe cardholders. Under the title “Readings for a train journey”, four volumes have been published in electronic format for download in the private area of the +renfe card. Each of the books contains four short stories and two poems, and alternates winning and selected works from different editions.

Catalonia Railway Museum Educational Guide

Renfe collaborated with the educational guide “Ven en tren de Cercanías a Vilanova i la Geltrú y visita el Museo del Ferrocarril de Cataluña” (Come to Vilanova i la Geltrú by Cercanías train and visit the Catalonia Railway Museum) in September, to commemorate the 25th anniversary. An illustrated guide was published that incorporates updated information on all the historical vehicles and facilities at this museum.


Other Activities

$ Dissemination of the results of the Observatorio del Ferrocarril en España (Railway Observatory in Spain) and the research activity and studies to boost the presence of rail in society and influence the strategic areas being developed in important aspects such as R&D, internal relations and regulation of the sector.

$ Activities organised in the framework of the Madrid-Delicias Railway Museum and Historical Railway Archive and the Catalonia Railway Museum -Vilanova i la Geltrú.

$ Renfe has given a wide variety of vehicles to the Spanish Railways Foundation in the last few years for their exhibition in different points around Spain. Specifically, the material transferred in 2015 with a formalised contract or agreement was the Locomotive 333.107, from Renfe Fabricación y Mantenimiento, and the Carriage Bc10x-9651, from Renfe Viajeros

Contribution to the Spanish Railways Foundation

Amount in thousands of € 2015 2014

Overall contribution 1,545 1,545

Awards and Acknowledgements 2015

PLENA INCLUSIÓN (FULL INCLUSION) MADRID AWARD

The Federation of organisations in favour of people with intellectual disabilities has awarded Renfe the Plena Inclusion award for its collaboration in the promotion of cognitive accessibility. Renfe Viajeros has in recent years developed a Familiarisation Programme aimed at people with intellectual or developmental disabilities, which affords these people the opportunity to become familiar with and learn how to travel on Renfe Cercanías.

MADRID EXCELENTE

Renfe Cercanías in Madrid has successfully passed the evaluation process to use the Madrid Excelente brand.

RECOGNITION FOR RENFE

The Council and Bishopric of Ávila presented Renfe with a diploma in recognition of its work, dedication and commitment during the holding of the 5th Centenary of the birth of St. Teresa.

AENOR RECOGNITION FOR RENFE

In the course of the Fitur Trade Fair, Aenor (Spanish Association for Standardisation and Certification) has given several awards to Renfe, specifically for the Madrid Cercanías hub, the Tourist Trains, as well as the CSR/Sustainability Report.


05 CHALLENGES

Fulfilment of the Challenges set for 2015

96.15% of the challenges set for the year 2015 have been fulfilled.

Fulfilled Not fulfilled

Internal Audit

Implementation of the company’s Risk Map

Elaboration of the second Corporate Governance Report.

Renfe Viajeros, S.A.

Implementation of the BonoAve Flexible Pass (multi-destination).

Implementation of new loyalty scheme: evolution of the Tempo programme into the +Renfe programme, including public service passengers.

Combined Train + Airline ticket with Iberia.

Improvement in energy efficiency (cross-cutting project).

Quality Plan for Cercanías.

Opening of new High Speed routes (Atlantic Corridor A Coruña-Santiago-Vigo Urzaiz and León).

122 | CHALLENGES

Fulfilled Not fulfilled

Renfe Mercancías, S.A.

Support for the development of the Trans-European Network corridors (C4 Atlantic and C6 Mediterranean) and the establishment of one-stop processing by corridor

Concentration of logistics efforts into fewer platforms (Large Platforms) to improve operational efficiency.

Continue to promote port and intermodal traffic.

Optimisation of productive resources, modernising the rolling stock fleet and increasing its productivity.

Continue to boost international traffic by providing a larger fleet for UIC gauge to allow new relationships to be formed.

Renfe Fabricación y Mantenimiento, S.A.

Commissioning of the New Valladolid Comprehensive Maintenance Centre.

Formalisation of contracts with Renfe Viajeros, Renfe Mercancías and Renfe Alquiler de Material Rodante for the provision of maintenance services.

Obtaining certification as an Entity in Charge of Maintenance, to provide the service as such to our customer Renfe Mercancías and other owners of wagons such as Railsider and the Ministry of Defence.

Obtain ISO 14001: 2004 certification for another four maintenance centres, which would make a total of 33 centres certified in environmental management.

At the request of the General Directorate of Viajeros, produce the technical specifications for the purchase of new high-speed trains.

Collaborate with Renfe and the General Directorate of Viajeros in the commissioning of the Valladolid-Palencia-León and Olmedo-Medina-Salamanca lines.

Improvement in energy efficiency (cross-cutting project)

Renfe Alquiler de Material Ferroviario, S.A.

Launch of the offer to lease goods locomotives.

Incorporation of wagons and launch of the lease offer with comprehensive maintenance.

Renfe Internacional

Take part in international tenders to operate passenger and/or goods services, which Renfe considers of interest to the company.

Finalise delivery of all railway material sold during 2014 to third countries.

Continue with the sale of second hand material and the spare parts needed for its maintenance, to third countries. The material being sold –self-propelled material, passenger carriages and goods wagons and locomotives– will be that which Renfe no longer uses in its commercial services.

Extend to other countries the technical assistance, seminars and training courses offered by the International Department in its portfolio of products.

Explanation of the challenges not fulfilled

COMMISSIONING OF THE NEW VALLADOLID COMPREHENSIVE MAINTENANCE CENTRE

During 2015 it proved impossible to undertake the transfer of activity to the new workshop in Valladolid due to delays in the commissioning of certain pieces of industrial equipment by the companies supplying it.


Challenges for 2016

Internal Audit $ Definition of the methodology and design of an

Internal Control of Financial Information System for

the Renfe Group.

$ Start-up of system for reporting in the Risk

Management System.

Renfe Viajeros, S.A. $ Cercanías Madrid Department: Final implementation

of the Contactless Card for December 2016. Ending

of the use of tickets with magnetic strips.

$ A reorganisation of the Madrid-Galicia service will

take place in the first quarter of 2016, where Alvia

services take advantage of the new Olmedo-Zamora

high-speed line. An important commitment will

be made to increasing the frequency of the day

services. The number of daily trains connecting

Galicia and Madrid will be 7 in each direction (six

day trains and the TrenHotel between Coruña-Ferrol/

Vigo-Pontevedra and Madrid), compared to the

previous four (three day trains and the TrenHotel).

The new offer will mean an increase of 30% in the

seats offered, allowing the service to be reinforced

with double services on weekends and in peak

periods.

$ Extension of the Wi-Fi service to another 20 stations

in 2016.

$ Loyalty Programme: Incorporation of the registered

tickets for Medium Distance and AVANT services.

$ Extension of the Wi-Fi service to AVE trains.

$ Start of the PlayRenfe service on AVE trains and at

Cercanías stations.

$ Extension of intermodal agreements.

$ Improvement in web usability (commercial).

$ New model of compensation for commercial services.

$ Extension to discounts for young people.

$ Extension of the loyalty programme to all Renfe

products.

$ Implementation of new lines of business: Renfe

Viajes, Product Catalogue.

$ Launch of the new American Express Renfe Card.

$ Accessibility and security improvements in the Renfe

website sale channel.

$ Automation of the issuance of supporting invoices

for the Call Centre.

$ Automation of registration for alerts/incidents in

trains and communication to Google Maps.

$ Improvements to the VMT train management

tool (central accounting allocation, automatic

reassignment of seats due to strikes or material

changes, management of automatic quotas).

$ CRM Developments: +Renfe Joven 50 Card,

Compensation with points, MD and Avant loyalty,

Integration with partners (hotels, car parks and leisure,

American Express).

$ Implementation of commercial developments in the

self-service ticket machines: +Renfe Joven Card, loyalty,

inform about AMEX points, large family discount, sale of

seats in silent carriage, optimisation of sales flows.

$ Implementation of the PCI-DSS Security Standard in

payment with credit cards (integration of sales channels

with RedSys).

$ User Experience improvements - Integration of the sale

with parking access partner.

$ User Experience Improvements - Remodelling of the

compensation process (through the same payment

means, with points or in the form of a discount code).

$ User Experience Improvements - Notification via SMS or

email to the customer of incidents such as delays or a

change in their seat.

$ Commercialisation of the Executive Room on AVE trains.

Renfe Mercancías, S.A. $ Increase in rail traffic at ports.

$ Increase in international traffic.

$ Development of information systems.

$ Improvements in production.

Renfe Fabricación y Mantenimiento, S.A. $ Commissioning of the New Valladolid Comprehensive

Maintenance Centre.

$ Evolution of the maintenance management model from

the principle of specialisation by maintenance level to

the principle of concentration in strategic activities.

$ Plan for the reorganisation of the activity in

maintenance facilities (BMI, BM, CERC and BAT)

according to resource evolution.

$ Elaboration of technical specifications for the purchase

of new trains for the Cercedilla-Cotos line.

Renfe Alquiler de Material Ferroviario, S.A. $ Acquisition of new material.

Renfe Internacional $ Promote cooperation activities and agreements with

other rail companies.

$ Extend the technical assistance, seminars and training

courses offered by the International Department in its

portfolio of products.

$ Consolidate the presence of Renfe in international

bodies and institutions (UIC, CER, etc.), with the aim of

protecting the interests of the company.


06 ANNEXES

126 | ANNEXES

Table of contents and Principles of the United Nations Global Compact

Global Compact Principles GRI 3.1 Indicators Page / Response

Human Rights

Principle 1 Businesses should support and respect the protection of internationally proclaimed human rights.

4.12, 4.13, HR1-9, LA4 LA13,LA14, SO1

P20-21, P40, P75, P90-93, P114, P117 Due to Renfe’s activity being focussed on Spain, Renfe does not disclose information about issues relating to human rights to its employees or to its security employees.

Principle 2 Businesses should make sure that they are not complicit in human rights abuses.

HR1-2, HR8

In 2015 there are no contracts that include human rights clauses or that have been subject to analysis in relation to human rights, due to Renfe’s activity being fo-cussed on Spain.Renfe does not have suppliers who demon-strate a significant risk of episodes of forced or non-consensual labour or child labour, and nor does it have relations with indige-nous populations.

Labour

Principle 3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

HR5, LA4,LA5P75, P20-21Due to Renfe’s activities, there are no significant risks where the right to freedom of association or to forming part of collective bargaining agreements may face serious risks.In the case of forced mobility, Renfe’s labour regulations, in their article 326, indicate that the notice period must be 30 days.There have been no incidents of discrimination during 2015.

Principle 4 Businesses should uphold the elimination of all forms of forced and compulsory labour.

HR1-3,HR7

Principle 5 Businesses should uphold the effective abolition of child labour. HR1-3, HR6

Principle 6 Businesses should uphold the elimination of discrimination in respect of employment and occupation.

HR1-4, LA13,LA14

Environment

Principle 7 Businesses should support a precautionary approach to environmental challenges.

EN6, EN18, EC-2

P107-111Due to the characteristics of Renfe’s business, it being a service company, no productive processes are carried out where materials are reused.

Principle 8 Businesses should undertake initiatives to promote greater environmental responsibility.

EN1-29, PR3-4

Principle 9 Businesses should encourage the development and diffusion of environmentally friendly technologies.

EN2, EN5-7, EN10,EN18, EN26-27

Anti-corruption

Principle 10 Businesses should work against corruption in all its forms, including extortion and bribery.

SO2-6

During 2015, no analysis was carried out in this area, since no significant risk was detected; in fact, there were no incidents of corruption recorded in 2015, so no training was necessary in this area.Likewise, no contributions have been made to political parties or related institutions.


Natural areas affected by Renfe facilities

Natural Area Type of Facility

Name of the Facility Municipality Province Autonomous Community

Bahía de Cádiz Natural Park

Cercanías Commuter Station Universidad

Cádiz

Cádiz

Andalusia

Cercanías Commuter Station Las Aletas

Cercanías Commuter Station San Severiano

Cercanías Commuter Station Segunda Aguada

Cercanías Commuter Station Estadio

Cercanías Commuter Station Cortadura

Cercanías Commuter Station Bahía SurSan Fernando

Cercanías Commuter Station San Fernando

Cercanías Commuter Station Puerto Real Puerto Real

Cercanías Commuter Station Puerto de Santa María Puerto de Santa María

Sierra Norte Natural Park, Seville

Cercanías Commuter Station Cazalla Constantina Cazalla de la Sierra

SevilleCercanías Commuter Station Fabrica El PedrosoEl Pedroso

Cercanías Commuter Station El Pedroso

Los Galachos Nature Reserve

Railway Material Maintenance Workshop

Taller de Material Motor y Remolcado de Zaragoza Zaragoza Zaragoza Aragón

Cabo de Peñas Protected Area Cercanías Commuter Station San Juan de Nieva San Juan de Nieva Asturias Asturias

L’Alberá Nature Park Railway Material Maintenance Workshop

Taller de Mantenimiento de Material Remolcado de Port-Bou Port Bou Girona

Catalonia

ZEPA Costes del Garraf

Cercanías Commuter Station Platja de Castelldefells Castelldefels

Barcelona

Cercanías Commuter Station Garraf Garraf

Cercanías Commuter Station Sitges Sitges

Cercanías Commuter Station Vilanova i la GeltrùVilanova i la GeltrùRailway Material

Maintenance WorkshopTaller Central de Reparaciones de Vilanova i la Geltrù

Serralada Litoral Park

Cercanías Commuter Station El Masnou El Masnou

Cercanías Commuter Station Premià de Mar Premià de Mar

Cercanías Commuter Station Vilasar de Mar Vilasar de Mar

Serralada Marina Park

Cercanías Commuter Station Montcada i Reixach

Montcada i ReixachCercanías Commuter Station Montcada Bifurcació


Taller de Mantenimiento de Material Autopropulsado de Montcada

Sierras del Montnegre - El Corredor Natural Park

Cercanías Commuter Station Sant Celoni Sant Celoni

Cercanías Commuter Station Gualba Gualba

LIC Coasts of Maresme and La Selva

Cercanías Commuter Station MataróMataróRailway Material

Maintenance WorkshopTaller de Mantenimiento de Material Autopropulsado de Mataró

128 | ANNEXES

Natural Area Type of Facility

Name of the Facility Municipality Province Autonomous Community

South-East Regional Park

Cercanías Commuter Station San Martín de la Vega San Martín de la Vega

Madrid Madrid

Cercanías Commuter Station Ciempozuelos Ciempozuelos

Cuenca Alta del Manzanares Regional Park

Cercanías Commuter Station Tres Cantos Tres Cantos

Cercanías Commuter Station Colmenar Viejo Colmenar Viejo

Cercanías Commuter Station El Goloso

MadridCercanías Commuter Station Universidad Pontifica de Comillas

Cercanías Commuter Station Pitis

Cercanías Commuter Station El Tejar

Las RozasCercanías Commuter Station Pinar de Las Rozas

Cercanías Commuter Station Las Matas


Base de Mantenimiento de TALGO de Las Matas

Cercanías Commuter Station Torrelodones Torrelodones

Cercanías Commuter Station Galapagar - La Navata Galapagar

Cercanías Commuter Station Villalba Collado-Villalba

LIC Guadarrama Mountains

Cercanías Commuter Station Alpedrete Alpedrete

Cercanías Commuter Station Collado Mediano Collado Mediano

Cercanías Commuter Station Los Molinos Los Molinos

Cercanías Commuter Station Cercedilla

Cercedilla


Taller de Mantenimiento de Material Autopropulsado de Cercedilla

Cercanías Commuter Station Siete Picos

Cercanías Commuter Station Camorritos

Cercanías Commuter Station Las Heras

Cercanías Commuter Station Puerto de Navacerrada

NavacerradaCercanías Commuter Station Dos Castillas

Cercanías Commuter Station Vaquerizas

Cercanías Commuter Station Cotos Rascafría

Ramsar Txingudi - Bidasoa Area

Cercanías Commuter Station Ventas de Irún

Irún Guipúzcoa Basque Country


Taller de Mantenimiento de Material Remolcado de Irún


Taller de Mantenimiento de Material Autopropulsado de Irún

LIC Submerged Coastal Strip of Murcia

Cercanías Commuter Station ÁguilasÁguilas Murcia MurciaRailway Material

Maintenance WorkshopTaller de Reparaciones de Material Remolcado de Águilas

L’Albufera Nature Park, Valencia Cercanías Commuter Station Sueca Sueca

Valencia Valencian CommunityLIC Malacora

Mountains

Cercanías Commuter Station El Romaní El Romaní

Cercanías Commuter Station Sollana Sollana


Taller de Mantenimiento de Autopropulsado de Valencia

ValenciaRailway Material Maintenance Workshop

Taller de Mantenimiento de Material Motor y Remolcado de Valencia

Cercanías Commuter Station Siete Aguas Siete Aguas

LIC (Site of Regional Interest).ZEPA (Special Protection Area).

Publisher: Department of Communication, Branding and PublicityDesign and layout: Art Factory Comunicación

Photography: Renfe

www.renfe.es

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Informe Anual de Responsabilidad Social Empresarial 2015 Renfe RSE en v3.pdf · 01 ANNUAL REPORT 2015 | 5 LETTER FROM THE CHAIRMAN The year 2015 has been a historic one for Renfe