(Ferrovial) Regulatory

Risks and Opportunities

The current and/or anticipated significant regulatory risks related to climate change are linked to trends of regulatory bodies responding to climate change and GHG emissions.

Ferrovial' s FRM (corporate system focused on identifying, evaluating and managing risks and opportunities on a global basis) has taken into account several scenarios regarding emissions trading (for instance in air transportation sector), as well as the feasibility of transport infrastructure planning (mainly in UK airports and US toll roads).

At the corporate level, the Carbon Reduction Commitment (CRC) in UK probably represents the most relevant impact of regulatory risks on Ferrovial's finances. This scheme has implications for the Group mainly in terms of cash-flow (most of the investments will be recuperated at the end of the fiscal year, depending on the Ferrovial's position in the "league table". This table is calculated based on the performance of each organization.

Identified regulatory risks/opportunities will mainly affect the following business units:

• Waste management - Cespa.
• Toll roads - Cintra.
• Construction - Ferrovial Agroman.
• Airports - BAA.