Elecnor S A : 2022 Annual Accounts The official regulated information is sent to the CNMV in FEUE format and it can be accessed via this link.

KPMG Auditores, S.L.

Torre Iberdrola

Plaza Euskadi, 5

Planta 17

48009 Bilbao

Independent Auditor's Report on the Consolidated Annual

Accounts

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-languageversion prevails.)

2

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-languageversion prevails.)

Revenue from construction contracts

See note 3.s. to the consolidated annual accounts

To the Shareholders of Elecnor, S.A.

REPORT ON THE CONSOLIDATED ANNUAL ACCOUNTS

Opinion __________________________________________________________________

We have audited the consolidated annual accounts of Elecnor, S.A. (the "Parent") and subsidiaries (together the "Group"), which comprise the consolidated statement of financial position at 31 December 2022, and the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and consolidated notes.

In our opinion, the accompanying consolidated annual accounts give a true and fair view, in all material respects, of the consolidated equity and consolidated financial position of the Group at 31 December 2022 and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU) and other provisions of the financial reporting framework applicable in Spain.

Basis for Opinion _________________________________________________________

We conducted our audit in accordance with prevailing legislation regulating the audit of accounts in Spain. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Annual Accounts section of our report.

We are independent of the Group in accordance with the ethical requirements, including those regarding independence, that are relevant to our audit of the consolidated annual accounts pursuant to the legislation regulating the audit of accounts in Spain. We have not provided any non-audit services, nor have any situations or circumstances arisen which, under the aforementioned regulations, have affected the required independence such that this has been compromised.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters ________________________________________________________

Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the consolidated annual accounts of the current period. These matters were addressed in the context of our audit of the consolidated annual accounts as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

A large portion of the Elecnor Group's revenues is generated through long-term construction contracts in which revenue is recognised over time using the percentage of completion method, i.e. based on the stage of completion of the contract at the end of each accounting period, requiring the Group to make estimates of costs and forecast profits for each of the contracts, in order to determine the revenue to be recognised.

The application of this method therefore entails a high level of judgement by management and the Directors and an exhaustive control of the estimates made and the deviations that might arise over the term of the contract. Estimates must take into account all costs and revenues related to the contracts, including any additional costs to those initially budgeted, as well any risks or claims under dispute. Revenue is only recognised when it is probable that economic benefits derived from the transaction will flow to the Group, and costs incurred and yet to be incurred, and the stage of completion of the contract at the reporting date, can be reliably measured.

Due to the uncertainty associated with these estimates and the fact that changes therein could lead to material differences in the revenues recorded, they have been considered a key audit matter.

Our audit procedures included the following:

• Evaluating the design and implementation of the key controls associated with the process of recognising revenue from long-term construction contracts;
• Checking that the methodology used by the Group to determine revenue, calculated based on the proportion of costs incurred compared to the total estimated costs, is one of the methodologies accepted under the applicable financial reporting framework;
• Selecting a sample of construction contracts based on certain quantitative and qualitative selection criteria, so as to evaluate the most significant estimates used in the recognition of revenue. In this regard, we have obtained the supporting documentation on which these estimates and judgements were made, where applicable, by management and the Directors;
• Retrospective analysis comparing the margin of contracts completed during the year with the margin estimated the prior year for the contracts;
• Based on certain quantitative and qualitative selection criteria, we assessed whether the provisions recognised at year end for each of the contracts reasonably reflect present obligations, whether it is probable that an outflow of economic benefits will be generated in the future, under the terms of the contracts, and we obtained documentation supporting the recognition thereof and evaluated the judgement applied by management and the Directors in their estimates; and
• Assessing whether the disclosures in the consolidated annual accounts meet the requirements of the financial reporting framework applicable to the Group.