Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Effects of the COVID-19 pandemic globally, with the cessation of non-essential activities and the withdrawal of investments in construction throughout LATAM.
• Border closures during 2020 prevented the company from carrying out commercial activities, resulting in a reduction in the portfolio due to both the execution of the portfolio and the deterioration of some projects, which impacted the P&L.
• Decrease in revenue, amounting to €921,204.69, from €3,471,844.80 in 2020 to €2,550,640.11 in 2021.
• Negative working capital of €2,270,227.07 (positive in the previous year by €6,026,954.42).
• Cash flow tensions during 2021 due to the economic consequences of the pandemic, leading to breaches of payment commitments with financial institutions and necessitating debt restructuring negotiations.

Mitigation Strategies

• Debt restructuring plan through KPMG.
• Creditor support through capital increase by debt compensation (€2,037,509.35).
• Capital increase approved (€2,400,000) to allow new financial operators into the share capital.
• Cost containment through staff reduction.
• Increased portfolio of projects offered (€117,000,000).
• More than €13,168,416 signed in projects, exceeding 2019 sales figures and increasing the portfolio of contracted projects to €25,500,148.
• New subsidiary in the Dominican Republic.
• Equity line with LDA Capital (€10,000,000).

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Development of a formwork system with high seismic resistance.
• Research and development of new products to reduce wood consumption in structures.
• Design and calculation of structures using AI and parallel processing.

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the economic difficulties in Bolivia, resulting in the collection of payments in kind (machinery) instead of cash.
• Tensioned treasury situation due to past poor results and limited access to credit.
• High concentration of projects in the Dominican Republic (over 87% of the contracted project portfolio).

Mitigation Strategies

• Successful debt restructuring with Santander and Caixabank, reclassifying approximately €5 million of short-term liabilities to long-term.
• Capitalization of €2.9 million in loans from the majority shareholder.
• Conversion of 6 obligations from Inveready for €821,000.
• Amortization of 4 obligations from Inveready.
• Agreement to receive payments in machinery from Bolivia, offsetting the need for new machinery purchases in the Dominican Republic.
• Maintaining commercial structures and employment to sustain growth.
• Planned relocation of equipment from Paraguay to the Dominican Republic in 2024 to adjust asset size to activity needs.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Negative working capital of €290,876 at June 30, 2023.
• Unpaid financial debt of €3,449,070.72 at June 30, 2023, resulting in late payment interest of €554,001.72.
• Breach of certain financial ratios stipulated in contracts with financial institutions.

Mitigation Strategies

• Agreement reached with Caixabank and Banco Santander for debt restructuring, eliminating defaults and increasing working capital.
• Capital increase approved on March 29, 2023, pending registration.
• Significant project portfolio (€138,685,748) providing growth visibility for the next two years.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: BDO Auditores S.L.P.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed