#1CONSEJERÍA DE ECONOMÍA, HACIENDA Y EMPLEO Comunidad de Madrid INVESTOR PRESENTATION November 2022#2TABLE OF CONTENTS I. MACRO OUTLOOK II. FUNDING PROFILE AND STRATEGY III. SUSTAINABLE FINANCE IV. 2021 GREEN BOND AND IMPACT REPORTING#3I. MACRO OUTLOOK CONSEJERÍA DE ECONOMÍA, HACIENDA Y EMPLEO Comunidad de Madrid#4Comunidad de Madrid key figures ↑ GDP pc 2020* 32.048€ (Madrid) 23.693€ (Spain) Average annual population growth(2011-2021) +0.5% (Madrid) +0.2% (Spain) ↑ Stock of companies 2021 547,040 -0.9% i.a. (Madrid) 3,366,570 -1.1% i.a. (Spain) *Last official data available P GDP: 216.5 bn € Population: 6,7 mil Source: Community of Madrid and INE ↑ Direct Foreign Investment (Q22022) 5.281 Mill. € +59,4% i.a. (Madrid) 7.606 Mill. € +70,4% i.a. (Spain) ☐ Unemployment rate (2Q2022) 10,18% (Madrid) 12,48% (Spain) ↑ R&D expenditure (2020) 2.0% over GDP (Madrid) 1.4% over GDP (Spain) ICTS Services (2021) Best ranked region in advanced digital services such as Cloud computing or Big data 4#5Comunidad de Madrid in Spain The national GDP amounted to €1.12 billion, of which the Comunidad de Madrid is the region with the highest contribution, 19.3% (€216.5 billion). In terms of population, the Comunidad de Madrid represents for 14.2% of the total population at the end of 2021, with a figure of 6.751.251 (out of a total of 47.450.795). Contribution by region to national GDP (2020) Population distribution by Autonomous Region (2021) Madrid 19.3% Catalonia 19.0% Andalusía 13.4% Valencia 9.3% Basque Country 5.9% Galicia 5.3% Castile and Leon 4.9% Castile La Mancha 3.5% Canary Islands 3.5% Aragon 3.1% Murcia 2.7% Balearic 2.4% Asturias 1.9% Extremadura 1.7% Navarre 1.7% Cantabria 1.1% Rioja 0.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Source: Community of Madrid and INE Andalusia Catalonia Madrid 18.0% 16.2% 14.2% Valencia 10.7% Galicia 5.7% Castile and Leon 5.0% Canary Islands 4.7% Basque Country 4.6% Castile La Mancha 4.3% Murcia 3.2% Aragon 2.8% Balearic 2.6% Extremadura 2.2% Asturias 2.1% Navarre 1.4% Cantabria 1.2% Rioja 0.7% 0.0% 5.0% 10.0% 15.0% 20.0% 5#6wwww Comunidad de Madrid in Europa In 2020, Madrid is the sixth largest regional economy in the EU and the largest in Spain. Despite the impact of Covid-19, Madrid continued strengthening during 2021 and the beginning of 2022. Region Country GDP (€ million)* GDP PPS (€ million) UE - 27 13,394,141 13,394,141 Ile-de-France (France) France 710,091 652,399 Lombardia Italia 365,515 367,946 Oberbayern Germany 273,501 247,523 Rhône-Alpes France 231,701 212,877 Düsseldorf Germany 217,053 196,437 Community of Madrid Spain 216,528 230,618 Stuttgart Germany 215,437 194,975 Catalonia Spain 212,931 226,787 Darmstadt Germany 203,858 184,495 Köln Germany 193,315 174,953 Istanbul Turkey 188,377 461,463 Lazio Italy 186,298 187,537 Eastern and Midland Ireland 186,167 155,277 Noord-Holland Netherlands 171,053 147,674 Netherlands 168,986 145,890 Zuid-Holland Source: Eurostat *Year 2020 6#7wwww www Comunidad de Madrid: Key sectors Banking, insurance, and fintech 92.3% of the Spanish foreign investment in financial services in Q1-Q3 2020 (91.2% in 2019). • 1 in 3 Spanish finance and insurance professionals work in Madrid in 2021. Pharma & Biotech www www • 34% of Spanish Pharma sector turnover in 2019. • 30% of Spanish Biotech sector turnover in 2019. Aeronautical & Aerospace . . • • • 62% of Spanish Aeronautical sector turnover in 2019. 95% of Spanish Aerospace sector turnover in 2019. 40% New Space companies in 2019 Content & Video Game Industry 24% of the national industry in 2019. 33% of Spanish Content and Video game sector turnover in 2019. IT & Communications www w • 91.6% of Spanish Communications sector turnover in 2019. wwww • 61.2% of Spanish IT sector turnover in 2019. • 97.8% of the Spanish foreign investment in IT&Communication in Q1-Q3 2020. Startup Ecosystem • • . Madrid is in the top 5 of the largest entrepreneurship centers in Europe (by number of startups) in 2019. 7th in Europe in capital attraction (€ 509 M in 2019). Logistics 75% of the logistics companies operating in Spain have their headquarters in Madrid in 2020. • The largest logistic area in Spain (38 million sqm) in 2020. Design and graphic arts • . • • Second region by number of companies of this sector (more than 3,200-20% of the total), only behind Catalonia (21%) in 2019. 7% of the manufacturing GVA in 2019. 11% of the employment within the manufacturing sector in 2019. Higher Education • Highest number of students in Spain (more than 320,000) in 2020. 6 public and 9 private Universities and some of the best business schools according to FT (IESE, IE). Sustainable mobility • 37% of the electric vehicles registered in Spain in 2020 are in Madrid. • 53% of public transport trips are made in sustainable vehicles in 2020. • Leader in carsharing and motosharing in Spain in 2020. 7#8wwww Economic Growth 2021: stronger recovery due to the pace of vaccination Historically, the Comunidad de Madrid has recorded growth above the national average. After a greater destruction of activity in the Comunidad de Madrid during 2020 due to the peculiarity of the crisis derived from the pandemic affecting sectors more linked to services and construction, the economic recovery has been more intense in 2021. Largest activity recovery in 2021: Distribution and hospitality services (+17.6%) and construction (10.1%) Evolution of GDP growth (%) 40.0 35.0 Interannual change (%) of main sectors Community of Madrid 33.2 23.0 10.1 $ 6.9 €4.13.2 30.0 25.0 20.0 17.1 15.0 3.6 5.7 10.0 6.0 4.5 2.9 5.33.9 5.6 5.0 1.1 1.1 0.6 0.0 -5.0 -3.6 -10.0 Agriculture Industry Services 12021 2021 III 2021 IV 2021 ⚫ 2021 Construction -2.8 10 8 2017 00 6 ⭑ 4 3,63,0 4,0 3.1 2,72,3 2,1 2 0 -2 -4 -6 -8 -10 -12 2016 Source: IECM 7,9 6,5 Breakdown of YoY Change (%) of services industries 70.0 60.6 60.0 50.0 40.0 17.6 30.0 16.7 5.0 20.0 9.1 7.5 10.0 3.2 2.0 0.0 3.0 9.5 1.3 1.5 -0.2 -1.8 -10.0 -6.9 -10,2 -10,2 -20.0 2018 2019 2020 2021 Distribution and hospitality services Business and financial Other services services Source: IECM and INE ■C. Madrid Spain Source: IECM 12021 II 2021 III 2021 IV 2021 2021 8#9www wwww Recent performance of the economic recovery The outbreak of the pandemic had a significant impact on the Spanish economy, and with greater depth in the Madrid economy: year-on-year contraction in Q22020 of 24%. The measures adopted to control the pandemic allowed the fall in subsequent quarters to be more contained. During 2021, the good pace of vaccination led to a recovery in economic activity, especially in the Q2 and Q3, with year-on-year of 24.6% and 4.5%, respectively. The year 2022 has started with a continuation of the process of progressive improvement, with a year- on-year growth of 5.2% in Q1 and 5.4% in Q2, bringing the level of activity closer to that prior to the start of the pandemic (4Q2019), which is now 1.2% below. At the national level, GDP registered a year- on-year increase of 6.3% in 2Q2022, although it is still far from pre-pandemic levels (2.5% below). GDP (%) (Y on Y) 30,0 24,6 20,0 17,8 GDP (%) QoQ 10,0 0,0 -2,74,3 -2,3-4,1 -10,0 -9,08,7 -8,8 -20,0 -30,0 -21,5 -24,0 25,0 20,2 20,0 16,8 15,0 10,0 4,5 3,5 3,1 5,5 5,26,3 5,46,3 4,5 5,0 0,0 -5,0 0,2 0,3 1,1 0,9 -1,2-0,5 2,6-3,02,2 0,80,2 0,61,1 -4,4-5,4 -10,0 -15,0 -20,0 17,7 -21,3 -25,0 12020 II 2020 III 2020 IV 2020 12021 II 2021 III 2021 IN 2021 12022 Il 2022 12022 II 2022 1 2020 II 2020 III 2020 M 2020 12021 II 2021 III 2021 IN 2021 Adjusted data of seasonlity and calendar effects * End-closed forecast Source: CRTR (IECM) y CNTR (INE) ■C. of Madrid Spain Adjusted data of seasonlity and calendar effects * End-closed forecast Source: CRTR (IECM) y CNTR (INE) C. of Madrid ■Spain 9#10Sectorial analysis: Asymmetrical impact of the crisis On the supply side, the four major sectors (agriculture, industry, construction and services) closed 2021 with year-on-year growth. Although the circumstances of the last quarter of the year led to a slowdown in the pace of growth (restrictions on mobility due to the expansion of the omicron variant, bottlenecks in production chains, high inflation), the services sector stands out for its greater resilience. During the first and second quarters of 2022, all sectors except agriculture contributed to the year's economic growth. (%) of main sector 2020-Q22022 (Y on Y) (%) of main sector for Q2 2022 (Y on Y) 40,0% 30,0% 20,0% 10,0% 0,0% -10,0% -20,0% -30,0% -40,0% 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 2020 2021 2022 ■Agriculture ■ Industry ■Construction ■Services 5,9% 4,7% 4,1% -3,1% Agriculture Industry Construction Services Source: IECM 10#11Strong signs of recovery in the services sector Services sector structure (Q22022) Detail of the services components YoY change (%, Q42021/2020 and 2Q2022) Source: IECM Business and financial services 47,5% 15,0% 11,0% Other services 25,6% 9,0% 10,0% 7,5% 5,0% 4,4% 4,8% 2,0% 3,2% 2,8% 1,5% 0,0% -1,2% -5,0% -2,7% -10,0% -15,0% -15,3% Distribution and hospitality 26,8% -20,0% Distribution and hospitality Business and financial services Other services 4T2020 4T2021 1T2022 2T2022 Source: IECM Significant revival of the sector as a whole in the second half of 2020 and continuation during 2021 and the first and second quarter of 2022. Q2 2020 -23.4% Q4 2020 -5.8% Q4 2021 +3.2% 2T 2022 +5,9% 11#12Rebound of all regional demand components 30,0 The economic growth in the Comunidad de Madrid has been supported by all main components of regional demand. The rebound in investment is noteworthy, with growth in the second quarter of 2022 higher than that of the rest of the components (+7,6%), mainly due to the item Other investment excluding investment in housing. 20,0 YoY Regional Demand Growth by components YoY growth of investment components (%) 30.0 20,0 10,0 0,0 -10,0 -20,0 -30,0 -40,0 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 2020 2021 2022 -Investment -Housing investment Other investment 10,0 7,6 3,3 YoY growth of consumption components (%) 2,5 0,0 40.0 30,0 -10,0 20.0 10,0 0,0 -20,0 -10,0 -20,0 -30,0 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T -30,0 2020 2021 2022 -40.0 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T Regional demand Investment Final consumption expenditure 2020 2021 2022 -Final consumption expenditure Households AAPP and ISFLSH Source: IECM 12#13ㅁㅁㅁ Madrid's economy is set to recover more strongly than the national average at the end of 2021 The Madrid economy grew by 6.5% in 2021, in contrast to the fall recorded in 2020. This was mainly driven by household consumption, which grew by 8.3% compared to the sharp fall of 13.6% YoY in 2020. The recovery in investment, with a significant rebound in non-residential investment, is notable. The boost to economic growth in the Comunidad de Madrid during 2021 and the first and second quarter of 2022 has mostly been driven by the contribution of regional demand (3.3% YoY), in contrast to the slightly contribution of external demand (2.3% YoY). Contribution to YoY GDP Growth YoY growth of regional demand and its components in Q22022 (%) 25,0 20,0 15,0 10,0 5,0 0,0 -5,0 -10,0 -15,0 -20,0 -25,0 3,3 2,3 3,30% 2018 2019 2020 2021 2022 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 2017 -Regional demand contribution -External demand contribution 7,60% 2,50% 3,0% 1,1% Households Regional demand Investment Final consumption expenditure AAPP and ISF LSH Source: IECM 13#14Growth estimates of Comunidad de Madrid in 2022 Extension of the recovery process launched in 2021 On average, projected growth for 2022 is 5.6% for C. Madrid. The Comunidad de Madrid would return to the pre-Pandemic pattern with a higher rate of economic activity generation than Spain. GDP growth forecasts. Comunidad de Madrid and Spain Real GDP growth rates Upward pressures ✓ Administration of the vaccines to a sufficent % of the population during 2021/2022 and efficacy for other highly contagious variants. ✓ Approval of some efficient treatment against COVID- 19. ✓ Tranfer of the funds of the Recovery and Resilience Facility and REACT EU. ✓ Labour market recovery to be translated into employment gains 7,0 6,0 5,2 5,0 4,0 3,0 2,0 1,0 90 0,0 5,1 C. Madrid BBVA Research aug-22 FUNCAS may-22 Average Spain CEPREDE jul-22 AIReF jun-22 Downward pressures × Geopolitical risk o situation during 2022 × Continued high price levels that reduce purchasing power, undermining domestic demand. × Slowdown in the arrival and management of Recovery Funds. 14#15www. 40 30 High labour market dynamism in 2022 The positive seasonality of enrolment in the region in the last quarter of the year meant that the December figure was the third consecutive record high. This momentum has enabled the year 2021 to close with year- on-year growth of 5%. However, enrolment has declined since May 2022, reaching a level of 4.3% in August. The accelerated fall in unemployment in the second part of the year 2021 has contributed to close the year with a reduction of more than 15% y.a. The continuity of the improvement in the labour market in 2022 has allowed a reduction of 25.2% in the month of August. The unemployment rate fell in 2Q22, after the upturn in the first three months of the year, to 10.2% (down 1.7 p.p.). Registered unemployment and Social Security Affiliations (YoY %) Unemployment Rate Community of Madrid and Spain 20 18,1 10 3,4 0 -4,4 -1,3 -10 -20 18,0 16,3 16,1 16,0 16,0 15,3 15,3 14,4 14,6 13,7 14,0 13,3 13,5 13,3 12,6 12,2 12,5 12,1 11,8 11,9 12,0 10,6 10,1 10,2 Affiliation 10,0 4,3 8,0 6,0 Registerd Unemployment 4,0 -25,1 2,0 aug-22 0,0 1-20 II-20 III-20 IV-20 1-21 II-21 III-21 IV-21 1-22 II-22 Source: EPA, INE ■C. Madrid ■Spain -30 20192020 dec-20 apr-21 aug-21 dec-21 apr-22 Source: MISSYM Y MTYES 15#16Source: Ministerio de Hacienda Murcia Valencia Catalonia Andalusia Galicia Aragon Castile and Leon Total Rioja Extremadura Madrid Castile la Mancha Canary Basque Country -1.0 10 -0.1 Cantabria Asturias Balearic Navarre wwww wwww Fiscal Evolution in 2021 versus 2020 The Comunidad de Madrid's historic fiscal discipline has allowed the region to record a better financial balance than the national average. The dynamics in revenues in contrast to the slower pace of growth in expenditure allowed the Madrid Region to record a surplus of 0.3% of GDP at Dec-21. Deficit evolution by Autonomous Regions as % of GDP ■2020 end-closed 2021 end-closed 0.5 0.0 -0.5 Evolution of the public deficit (%GDP) -1.0 -1.0 -1.0 -1.5 -1.4 -1.4 -1.6 -2.0 -1.8 -1.8 -2.0 -2.5 0.3 0.0 0.0 -0.3-0.3-0.3 -0.2 -0.4 -0.5 -0.6 -0.7 -0.9 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 C. Madrid Spain Year-on-year change in non-interest income and expense as of Dec-21 (%) 6'0 31.1% CAN 30.6% BAL PVA 23.4% NAV 17.6% 16.1% EXT 14.3% ■YoY non- CNT financial AND 13.3% expenses (%) 13.3% CLM CAT 12.9% ■YoY non- 12.3% financial income TOTAL (%) 11.3% AST 11.0% MUR ARA 10.2% 9.6% RIO 9.2% CVA MAD 4.9% GAL 4.7% CYL -0.3% ! 16 0.0 0.1 0.1 0.2 0.2 0.3 0.3 0.4#17www. Fiscal Dynamics in 2022 Despite the good collection of taxes specific to the Autonomous Community of Madrid, such as the Wealth Transfer and Stamp Duty(ITPYAJD), the lower volume of current transfers is resulting in a lower growth in non-financial revenues than that recorded in expenditure during the first half of the year (2.6% vs. 2.9%). As a result, the deficit recorded by the Autonomous Region of Madrid is -0.26% of GDP, a similar level to the same period of the previous year. Deficit evolution by Autonomous Regions as a % of GDP Year-on-year change in non-interest income and expenditure to Jun-22 (%) -0,9,7 Navarre 1,3 -2,0 Valencia -1.1 -1,9 Balearic -1,4-1,21 Murcia -1,3 -1,3 Canary Island -1,7 -1,1 Castille-La Mancha -1,1-0,7 Catalonia 90-60- Source: Ministerio de Hacienda Extremadura Total AC 88- ■ Jun-21 ■jun-22 00 Cantabria -0°,54 Madrid -8;3 -0,7 Galicia -0,3 -0,8 Aragon -0,2 Castille- Leon -0,40 -0,3 Basque Country '0- Andalusia -0,5 -0,4 Asturias -0,41 Rioja CAN 18,2% PVA 13,1% RIO 11,1% 9,7% ARA CNT 9,5% 9,0% CYL GAL MUR BAL AST TOTAL MAD 2,6% AND 2,6% ■Y.o.Y. non- 1,5% financial expenses CLM (%) EXT 0,4% 4,5% CVA 10,2% ■Y.o. Y non- -1,1% financial income CAT (%) NAV -2,4% -0,1 -0,1 0,0 0,1 0,1 0,2 0,2 17#18Deficit target. 2022 Forecast The lower transfers received from the State in 2022 compared to the extraordinary funds approved in the previous year will worsen the public accounts of the Region of Madrid, with a negative non-financial balance. However, this will be lower than the regional average. Variation in the fiscal balance forecast for 2021 and 2022 by region (% of GDP) Closure 2021 AlReF CC.AA. A.C 2021 2022 2022 Andalusia -0,2% -1,1% -0,6% Aragon -0,2% -0,5% -0,6% Asturias 0,9% -0,5% -0,7% Balearic Islands 1,2% 0,2% -0,6% Canary Island 0,5% -0,6% -0,1% Cantabria 0,9% 0,2% -0,6% Castille- Leon -0,1% -0,8% -0,6% Castille-La Mancha 0,3% -1,1% -1,1% Catalonia 0,3% -1,2% -0,6% Extremadura 0,2% -0,7% -1,7% Galicia -0,2% -0,6% -0,6% Madrid 0,3% -0,5% -0,6% Murcia -1,4% -2,6% -1,1% Navarre 1,3% 1,1% -0,9% Basque Country 0,8% -0,4% -0,9% Rioja 0,03% 0,1% -0,6% Valencia -1,2% -2,5% -0,6% Regional Govermment -0,03% -0,9% -0,7% Source: Deficit of AIREF GDP % 18#19Autonomous Regional Financing System and additional transfers The Autonomous Regions will receive an amount of 112,138 million euros during the financial year 2022. In addition, the State will compensate the regions for a volume of 7,000 million euros for the implementation of the VAT Information Supply System in 2017 and for the negative settlements of the SFA for 2020. The Comunidad de Madrid will receive a total of €16,564 million in 2022. By 2023, the Autonomous Communities will receive a total of 134,336 million euros (+24 y.a.): 124,292 million euros in payments on account, plus 10,981 million euros for the positive liquidation of the 2021 financial year. State account transfers, 2019-22 (EUR mn) Extraordinary transfers in 202-2022 (€m) 2022 2021 2020 20 19 Catalonia 19,020 Galicia 7,431 2020 19,685 7,595 2021 2022 2022/2021 19,711 21,057 7,557 8,080 2022/2019 Extraordinary 6.8% 10.7% 2017 VAT liquidation Estimated 2020 liquidation Covid Fund Fund 6.9% 8.7% Andalusia Andalusia 19,218 19,748 19,636 20,943 6.7% 9.0% Aragon -537 -80 -1.261 2.358 2.199 -278 403 431 Asturias 2,740 2,794 2,761 2,924 5.9% 6.7% Asturias -86 -150 308 299 Balearic -78 0 330 438 Cantabria 1,805 1,845 1,842 1,987 7.9% 10.1% Canary Islands 0 0 629 551 La Rioja 971 998 992 1,071 8.0% 10.3% Cantabria -46 -146 168 177 Murcia 3,138 3,259 3,220 3,412 6.0% 8.7% Castile and Leon -182 -373 741 843 Valencia 9,433 9,788 9,731 10,270 5.5% 8.9% Castile La Mancha -130 -369 605 743 Catalonia -443 -538 2.161 3.171 Aragon 3,540 3,646 3,630 3,860 6.3% 9.0% Extremadura -86 -213 318 277 Castille-La Mancha 4,923 5,056 5,016 5,333 6.3% 8.3% Galicia -204 -392 828 735 Canary Islands 4,540 4,740 4,703 5,047 7.3% 11.2% Madrid -377 -496 1.864 3.346 Extremadura 3,069 3,123 3,069 3,315 7.1% 8.0% Murcia -85 -86 422 389 Rioja -20 -104 94 127 Balearic Islands 1,980 2,069 2,092 2,148 2.7% 8.5% Valencia -281 0 Madrid 14,432 14,814 14,993 15,755 5.1% 9.2% Total -2.635 -4.407 1.400 12.629 1.486 15.212 Castille-Leon 6,494 Total 102,735 6,617 10 5,803 6,542 6,936 6.0% 6.8% Excess announced -465 0 0 105,523 112,138 6.3% 9.2% Announced transfers* -3.100 -4.407 12.629 Source: Ministry of Finance * For 2022, the negative sign refers to the loss of the regional governments to be compensated by transfers. 15.212 19#20www wwwww Economic strengths of the region The economic dynamism recorded during 2021 has continued into the first half of 2022. Significant contribution of domestic demand to the region's growth, focused on household consumption and investment. Leadership in new businesses creation. A diversified productive structure with a wide presence of large companies. Positive dynamics in the labor market. Highest % of students in higher education in Spain (47,8%). 1 in 5 professionals in Spain works in Madrid (more than one million professionals) Madrid is the most deregulated low-tax economy in Spain and the one most open to foreign trade/investments. 20 20#21Tax comparison The Comunidad de Madrid's policy on regional taxes aims at a flexible tax regime that favors the creation of companies and economic dynamism. It should be noted that the tax rates and deductions shown in the following table are of general application. However, the tax regulation establishes other deductions with a more residual application. Castile and Leon Comunidad of Madrid PIT Wealth tax Tax rate Only taxed over Tax rate Tax rate 18.5-43.5% 700,000 € Discount of 100% 7.65-34% Catalonia Andalusia 21.5-48% 500,000 € 0.21-2.75% 7-32% 19.5-48% 700,000 € 0.24-3.03% 7.65-36.50% Inheritance tax Groups I y II: 99%; Bonuses Inheritance and Gift tax Gift tax WTT Wealth Transfer Tax and Stamp Duty SD Tax rate Bonuses Tax rate Tax rate 7.65-34% Groups I y II: 5-9% Groups I y II: 99%; Group III: 10-15% Groups I y II: 99%-20% Groups I y II: 1.000.000€*; Group Ill y IV disabled people: 250.000€* 7.65-36.50% 19-44% 700,000 € 0.2-2.5% 7.65-34% Groups y ll: 100- 80% 7.65-34% Group III: 10-15% 6% 0.75% 10-11% 1.50% 8-9-10% 1.50% 8-10% 1.50% *Maximum deductible amount Source: Community of Madrid. TAX Actions 2022: 1) A half-point reduction in all regional personal income tax brackets. 2) Abolition of all taxes levied by the Comunidad de Madrid. 3) Deflation of personal income tax. 4) Law on tax deductions to promote births, support for families and access to housing. 21#22The region of Madrid is the region with the highest tax competitiveness index (RTCI) ㅁ The Regional Tax Competitiveness Index. (RTCI) makes it possible to evaluate, measure and compare the tax system of the different Autonomous Communities, with the aim of analysing the structure of the tax system in each one of them. Regional Tax Competitiveness Index (RTCI 2021) Pais Vasco Álava 7,08 Guipúzcoa Vizcaya La Rioja 6,92 7,13 6,06 Asturias 5,17 16° Cantabria 5,93 11 3* 2º 8° Galicia 5,90 Navarra 5,71 14" 126 Castilla y Leon 6,33 Aragón 5,14 17" Cataluña 4,63 19° ☐ The RTCI is a hierarchical index made up of five taxes (Income, Wealth, Inheritance, Inheritance, Transfer Tax and Stamp Duty, and the autonomous community taxes) that assesses specific indicators of each of these taxes. the In 2021 the most fiscally competitive Autonomous Community was Madrid with a value of 7.19, followed by the Basque Country and the Canary Islands. Catalonia in in last place with 4.63. Low Madrid 7,19 1° C.Valenciana 5,08 Extremadura 5,44 15" Castilla-La Mancha 5,99 10 18 Baleares 5,81 13" Score Andalucia 6,12 7* Murcia 6,02 9° Canarias 6,35 High Source: Foundation for the Advancement of Liberty. 22 22#23Investment in R&D €4.25bn investment in R&D (2020) 3.7% increase on previous year 27% of total Spanish spending in R&D (first region in expenditure) Second region by investment as % GDP (2.0%), +56 basis points compared with the national average. Investment in R&D as % GDP (2020) Basque Country 2.2% Madrid 2.0% Navarre 1.9% Catalonia Total 1.7% 1.4% Castile and Leon 1.4% Valencia 1.2% Murcia 1.1% Galicia 1.1% Andalusia 1.1% Aragon 1.0% Cantabria 0.9% Asturias 0.9% Rioja 0.8% Castile La Mancha Extremadura Canary Islands Balearic 0.7% 0.6% 0.6% 0.5% Source: INE 23 23#24Madrid leads business creation in 2022 The Community of Madrid in July 2022 maintains its leadership in terms of company start-ups with a total of 1,665. In cumulative terms up to March 2022, the Autonomous Community of Madrid leads with 22.8% compared to the national total, followed by Catalonia (19.3%). On the other hand, in terms of dissolved mercantile companies, the Community of Madrid has the highest number with 555 dissolved companies, followed by Andalusia with 247 and the Valencian Community with 173. Commercial companies created Accumulated until March 2022 Source: Community of Madrid, INE Rest of Spain 40,6% Andalusía 17,3% C.Madrid 22,8% Catalonia 19,3% 24#25wwww Madrid, preferred destination for foreign investment In the first six months of 2022, the Comunidad de Madrid received an investment of 69.5% of the national total. Balearic 1,9% Andalusía Basque 1,7% Country Canary Island 1,3% 1,5% Valencia 3,5% Navarre 8,5% Catalonia 9,5% Community of Madrid 69,5% Source: Ministerio de Industria, Comercio y Turismo 25 25#26www Competitive advantages The Madrid region registered in 2019 (latest available data) a competitiveness index above, not only Spain but also above. the EU countries. Additionally, Madrid's airport (Adolfo Suárez Madrid-Barajas) ranks as the 1st Spanish airport and the 5th in Europe by the number of passengers and freight traffic. On a national basis, Madrid is the epicenter of the national road and rail network due to a well developed public transport network which covers the whole region. EU Regional Competitiveness Index (2019) Efficiency Sub-index Basic Sub- index Innovation Business Sophistication RCI 2019 Innovation Sub-index Institutions Technological Readiness 100 Market Size Labour Market Efficiency Source: European Comission. ■ EU Average ■SPAIN Spain: Comunidad de Madrid Macroeconomic Stability Index <-1 -1 -0.5 -0.5--0.2 -0.2 0 0-0.2 0.2 0.5 0.5 1 > 1 Infrastructure Health Higher Education and Basic Education Lifelong Learning 26#27CONSEJERÍA DE ECONOMÍA, HACIENDA Y EMPLEO Comunidad de Madrid II. FUNDING PROFILE#28Normative protection of Debt payment The Comunidad de Madrid's debt is included in the scope of State debt Article 135 of the Constitution states ... ". Loans to meet payment on the interest and capital of the State's Public Debt shall always be deemed to be included in budget expenditure and may not be subject to amendment or modification as long as they conform to the terms of issue.". In terms of Organic Law Article 14.5 of the Law on Financing of the Autonomous Communities states: "The public debt of the autonomous communities and the securities of an equivalent nature issued by them shall be subject, to the same rules and shall enjoy the same benefits and conditions as the Public Debt of the State". Article 14 of the Organic Law 2/2012 of 27 April on Budgetary Stability and Financial Sustainability provides: "The payment of interest and principal on the debt of public administrations shall have absolute priority over any other expenses" In practice, the Spanish Government has provided financial support to regions that have experienced budgetary difficulties or access to the financial market ✓ Since 2012 the Treasury has implemented mechanisms such as the FLA (Autonomous Liquidity Fund) and FFPP (Payment Provider Fund) to provide liquidity to the regional governments and local authorities to enable them to cope with their payment obligations (Royal Decree-Law 17/2014). Ultimately, the Government of Spain is the ultimate guarantor of debt amortization. 28 28#29Debt ratios of the Comunidad de Madrid The Comunidad de Madrid has strong credit fundamentals, putting it in a very favourable starting position to face the current economic and health crisis. These debt ratios mean that the Community's cost of financing is very favourable. As a result, the Community has opted for greater financial autonomy (similar to the strategy of the Foral Regions), having repaid early in 2020 all the outstanding capital concentrated in the FFCA (unlike other regions where more than 80% of its debt is state-funded). 2022 2Q CCAA Debt (€ mill.) Debt/GDP (%) 40 Comunidad de Madrid 34.563.454 14.1 Canarias 6.455.070 14.6 35 Comunidad Foral de Navarra 3.281.733 15.0 30 País Vasco 11.395.483 15.1 Principado de Asturias Galicia La Rioja 4.245.622 11.823.708 1.646.905 17.5 17.7 17.9 Castilla y León 13.124.446 20.9 Andalucía Aragón Extremadura Cantabria 37.419.328 21.9 9.198.769 23.0 5.092.719 23.2 2112125 20 10 3.427.844 23.5 Illes Balears 9.135.453 30.1 0 Región de Murcia 11.586.890 34.2 Castilla-La Mancha 15.518.578 34.6 Cataluña 84.486.119 35.0 Comunitat Valenciana 54.260.379 45.8 National Average 316.662.501 24.9 Source: Bank of Spain dic 11 dic 12 dic 13 CCAA dic 14 dic 15 dic 16 dic 17 dic 18 CyL CAT MAD PVA dic 19 dic 20 dic 21 mar 22 29 29 Evolution Debt / GDP (%) jun 22 24,9 20,9 15,1 14,1 35#30Gross Financing Needs 2022 2,892 MM •Refinancing of long-term debt redemptions in 2022 55 MM 1,519 MM • Déficit 2022 (0,6% Regional GDP) Authorized funding needs AUTHORIZED 2022 ACM 02/08/2022 ACM 09/13/2022 ACM 11/15/2022 TOTAL 3,327MM 320 MM 127 MM 3,774 MM • Negative settlement 120 monthly payments (DA 36th, Law 2/2012, 29 june) 0.985 MM • Agencia Vivienda Social, (Lt) debt Updated funding needs INITIAL FUNDING NEEDS 2022 (-) Adjustments Report November 2022 (+) Authorized health payment (+) Authorized payment 1.5% salary increase FINAL FUNDING NEEDS 2022 TOTAL 2021 ISSUED: 2,131 MM 4,467 MM 1,066MM 416 MM 127 MM 3,944 MM 30 30#312022 Debt Strategy 1.Funding needs: EUR 4,5 bn 2. Updated funding needs: EUR 3,9 bn 3. EUR Benchmarks transactions. 4. Preference for medium and long maturities. 5. Smooth the maturity profile towards longer term financing. 6. Promote Sustainable Finance: ➤ Capacity to issue bonds and loans. ➤ Public and private deals. ➤ In compliance with the GBP and SBP and aligned with the SDG. 31#32Rating and debt ratios Moody's S&P DBRS FITCH Baa1 A A- BBB Current Rating Outlook Stable Date 05/11/2022 Stable 11/04/2022 Positive 09/09/2022 Stable 09/02/2022 Comunidad de Madrid National Total 2019 2020 2021 2022 2Q 2019 2020 2021 2022 2Q Debt/GDP (%) Debt 13.9 33,469 16.0 34,601 14.8 34,409 14.1 34,563 23.7 295,080 27.1 303,992 25.9 312,585 24.9 316,663 Debt Average Cost (%) 2019 2.19 2020 Comunidad de Madrid 2021 2022 2Q 2019 Spanish Tresury 2020 2021 2022 2Q 1.91 1.86 1.92 2.21 1.87 1.65 1.59 LCR (Liquidity Coverage Requirement): NIVEL 1 EUROCLEAR.ECB 0% risk weighted. Minimum risk applicable in accordance with European Prudential Regulations The average cost of Comunidad de Madrid is 2.01% (October 2022) Source: Comunidad de Madrid, INE and Bank of Spain Considering rights and obligations *Cost: Spanish Treasury 32 22#33The main characteristics of the debt Distribution bonds/loans Loans Currency distribution Type % Public entities Private entities 23.10 76.90 Total % Loans 37.75 Bonds 62.25% Bonds Loans 37.75% Type Euro Foreign currency % 100.00 0.00 Euro 100% Total % Bonds 62.25 Distribution fixed/variable Floating 11.52 A commitment to fixed-rate issuances is a strength: - Reducing risks. Fixed 88.48% Maturity Distribution Short term 0.54% - Reducing volatility when making payments. Long term 99.46% Source: Comunidad de Madrid. (*) SEC 2010 Update: 31/12/2021 *Public entities: European and Spanish (ICO) Financial Institutions *Private entities, Private Banks 33#34Funding Activity mill. € 6.000 € 5.000 € 4.000 € 3.000 € 2.000 € 1.000 € 0 € 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Bond ■Loans ■Sustainable Green Health Social ■Social Loan Financing Needs 2022 Madrid, regular player in Capital Markets. Source: Comunidad de Madrid 34#35mill. € 4000 3500 3000 2500 2000 1500 1000 500 The main characteristics of the debt ...... 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 33-36 37-42 43-45 2046 47-52 2053 2058 60-61 2066 ■Bonds ■Loans Source: Comunidad de Madrid 35 35#36Source: Comunidad de Madrid 1,5 2010 2011 2012 Average cost and average life % 4,5 3,96 4 3,82 3,90 3,61 3,53 Years 8,38 8,5 8,33 8 7,67 7,39 7,5 3,5 6,92 6,96 6,85 7 2,79 3 2,43 6,5 6,17 6,41 2 2,5 5,5 5,51 5,34 2,27 2,21 2,19 6 1,91 1,86 5,5 2013 2014 2015 2016 Average Cost -Average Life 2017 The average maturity of debt is 8.31 years (October 2022) 2018 2019 2020 2021 36 36 5#37Comunidad de Madrid: Benchmark Transactions mill.€ 2.000 1.800 1.600 1.400 1.200 1.000 800 600 400 200 31/10/2058 0 17107123 21/05/24 30/09/24 30/04/25 30/04/27 Green Bond 30/04/27 30/04/28 • Extraordinary investor's response. Source: Comunidad de Madrid Common features of these operations: Outstanding quality of the orderbook: Demand driven by real money investors. High international support, very well diversified in geographical terms. 30/07/28 Tap 30/04/29 31/10/29 12/03/30 Sustainable 30/04/30 30/04/31 Public 37#38Deals Breakdown Amount Tenors Average Maturity 2022 Loans 2,084,000,000 5-19 10.88 Private Placements Public Benchmark (Sustainable) 100,000,000 1,000,000,000 20 20.00 10.05 Public Benchmark (Green) 500,000,000 7.05 3,684,000,000 5-20 10.38 2021 Loans 751,000,000 10-13 11.62 Private Placements 380,000,000 28-40 31.45 Public Benchmark (Sustainable) 1,000,000,000 10.10 Public Benchmark (Green) 500,000,000 6.67 2,631,000,000 10-40 12.97 2020 Loans 2,142,000,000 3-47 10.63 Private Placements 804,000,000 3-32 27.23 Public Benchmark (Sustainable) 1,250,000,000 10.17 Public Benchmark (Green) 700,000,000 7.23 4,896,000,000 3-47 12.75 Source: Comunidad de Madrid 38 88#39€1bn 1.723% due 30th April 2032 BY REGIONS SWITZERLAND 6% OTHER 6% NORDICS 3% ITALY 7% BENELUX 17% 6° Sustainable Public Deal BY INVESTOR TYPE OFFICIAL INSTITUTIONS 2% ASSET MANAGERS 39% SPAIN 27% BANKS 39% GERMANY/AUSTRIA 15% UK 8% FRANCE 11% TOTAL AMOUNT 1,000,000,000 € First public benchmark issued by any Spanish Regions in 2022. • 73% placed outside Spain. 53% ESG investors. Source: Comunidad de Madrid INSURANCE COMPANIES AND PENSION FUNDS 20% 39 99#40€500 bn 2.822% due 31 October 2029 BY REGIONS PORTUGAL 2% OTHER 4% SWITHERLAND 1% BENELUX 9% ITALY 14% 3º Green Public Deal BY INVESTOR TYPE INSURANCE COMPANIES AND PENSION FUNDS 4% SPAIN 23% BANKS 33% GERMANY/AUSTRIA 14% UK/IRELAND 16% FRANCE 17% TOTAL AMOUNT 500,000,000 € Third public green benchmark for Comunidad de Madrid. • 77% placed outside Spain. 51% SRI investors. Source: Comunidad de Madrid OTHERS 16% ASSET MANAGERS 47% 40 40#412022 Bond Profile BY REGIONS PORTUGAL 1% OTHER 5% SWITZERLAND 4% NORDICS 2% ITALY 15% BENELUX 13% BOND TRANSACTIONS SPAIN 24% GERMANY/AUSTRIA 14% UK/IRELAND FRANCE 12% 10% Source: Comunidad de Madrid BY INVESTOR TYPE INSTITUCIONES OTROS 2% OFICIALES 2% ENTIDADES FINANCIERAS 35% AMOUNT ISSUED 1,600,000,000 € GESTORAS FONDOS 35% ASEGURADORAS Y FONDOS PENSIONES 27% 41#42€1bn 0.42% due 30th April 2031 BY REGIONS 5° Sustainable Public Deal OTHER 6% PORTUGAL 2% NORDICS 5% ITALY 12% BENELUX 5% UK 5% SPAIN 25% GERMANY/AUSTRIA 24% FRANCE 16% BY INVESTOR TYPE OFFICIAL INSTITUTIONS 5% BANKS 37% OTHERS 2% ASSET MANAGERS 44% INSURANCE COMPANIES AND PENSION FUNDS 12% TOTAL AMOUNT 1,000,000,000 € Tightest level over SPGB ever printed in a syndicate deal by Comunidad de Madrid • First public benchmark issued by any Spanish Regions in 2021. • • 75% placed outside Spain • 69% ESG investors Source: Comunidad de Madrid 222 42#43€500 bn 0.16% due 30 July 2028 BY REGIONS OTHER 2% NORDICS 3% BENELUX 14% FRANCE 10% SWITHERLAND 7% 2° Green Public Deal BY INVESTOR TYPE OFFICIAL INSTITUTIONS 8% SPAIN 28% BANKS 38% ITALY 18% GERMANY/AUSTRIA 18% TOTAL AMOUNT 500,000,000 € • Second pubic syndicated green deal. • INSURANCE COMPANIES AND PENSION FUNDS 16% Strong demand from foreign investors, who represent 72% of the total operation. Large participation of ESG investors, 64%. Source: Comunidad de Madrid ASSET MANAGERS 38% 25 43#442021 Bond Profile BY REGIONS SWITZERLAND 1.45% PORTUGAL 1.45% | NORDICS 3.62% ITALY 23.19% OTHER 4.35% BENELUX 3.62% UK 3.62% FRANCE 13.77% Source: Comunidad de Madrid BOND TRANSACTIONS BY INVESTOR TYPE OFFICIAL INSTITUTIONS SPAIN 18.12% OTHERS 1.06% 4.79% CENTRAL BANK 2.66% ASSET MANAGERS 33.51% BANKS 32.45% GERMANY 28.26% AMOUNT ISSUED 1,880,000,000 € INSURANCE COMPANIES AND PENSION FUNDS 25.53% 44 44#45Gross Financing Needs 2023 2,678 MM •Refinancing of long-term debt redemptions in 2023 55 MM • Negative settlement 120 monthly payments (DA 36th, Law 2/2012, 29 june) 802 MM •Déficit 2023 (0.3% Regional GDP) 1.017 MM • Agencia Vivienda Social, (Lt) debt TOTAL FUNDING NEEDS 2023: 3,536 MM 45#46CONSEJERÍA DE ECONOMÍA, HACIENDA Y EMPLEO Comunidad de Madrid III. SUSTAINABLE FINANCE#47Sustainability Mandate of Comunidad de Madrid Comunidad de Madrid has the clear social and environmental mandate to meet the needs of its citizens. The Region is committed to integrate sustainable development and social responsibility in all its activities while playing a key role to promote sustainable development initiatives on the territory. Social expenditures includes several programs such as the financing of public polices related to public health, education, social services, employment promotion, public transportation, and subsidized housing. The community of Madrid's expenditure on social programs aims to strengthen Madrid's socio-economic recovery and improve social cohesion, thanks to the development of public services that benefit all the citizens and the implementation of programs to promote employment through investment in small businesses. Additionally, Comunidad de Madrid has an important environmental mandate. Almost 50% of the region area of the region is protected due to its environmental protection and conservation value. The geo-economic situation in Madrid creates the need to implement policies for pollution management and waste treatment in densely populated urban areas. Regarding the latter, the region set out its Strategy for Sustainable Waste Management for the 2017-2024 period. In relation to climate change and air quality, the Plan Azul+ 2013-2020 has been the backbone for eight years, particularly focusing on tackling pollution and promoting energy efficiency. Among the measures set out in the Plan Azul+, which is expected to be followed by a new plan from 2021, we find the following objectives by sector, which are representative of the region's general sustainable strategy: • • • • Transportation: modernisation of the taxi and bus fleets with greener vehicles, improvement of bicycle infrastructure, fiscal incentives for the transition towards greener technologies in private transportation Industry: reduction of emissions from industrial activities, like NOX produced by cogeneration plants Residential/commercial/institutional: use of clean fuels for domestic heating, improvements in energy efficiency, smart grids Agriculture: sustainable management of forests, promotion and development of biomass energy In the social category, there is a Strategy for Social Inclusion 2016/2021, within the framework of the Europe 2020 Strategy, which seeks to eradicate severe poverty from the region. Source: Comunidad de Madrid 47#48Rationale for Sustainable Financing Comunidad de Madrid' Sustainability Mandate Addressing the social and environmental transition Supporting the growth of a sustainable financial market Comunidad de Madrid devotes a substantial portion of its budget to social and environmental spending Via the issuance of sustainable debt, Comunidad de Madrid contributes to its social and environmental policies and actions Alignment of the funding strategy with the sustainability strategy By issuing Sustainable Finance Instruments, Comunidad de Madrid contributes to global, EU and national social and environmental objectives Contribution to the achievement of UN Sustainable Development Goals (SDGs) Achievement of sustainable growth for Comunidad de Madrid's citizens Address the increasing demand for more sustainable assets by responsible investors Diversify its investor base targeting SRI and dark green investors, while fostering the relationship with existing investors Contribution to the development of a sustainable financial market Comunidad de Madrid believes that Sustainable Finance Instruments are effective tools to channel investments to projects demonstrating environmental and social benefits Source: Comunidad de Madrid 48#49Sustainable Finance Framework Alignment to the Standards Comunidad de Madrid Sustainable Finance Framework complies with: . ICMA Green Bond Principles, Social Bond Principles², Sustainability 2 Bond Guidelines³ • LMA Green Loan Principles4 3 ICMA Comunidad de Madrid Sustainable Finance Framework's pillars Use of Proceeds Project Evaluation and Selection Management of Proceeds • • Sustainable Finance Instruments' proceeds will be allocated to Eligible Expenditures with a clear social and/or environmental benefit within the General Budget Carried out by the Committee of Selection, Monitoring and Evaluation that meets before the issuance of a Sustainable Finance Instrument, in accordance with the Eligibility and the Exclusionary Criteria Sustainable Finance Instruments' proceeds will be managed in a portfolio approach The The Green Bond Principles Social Bond Principles 4 Reporting Loan Market The Sustainability Bond Guidelines Association Green Loan Principles 5 the authoritative voice Supporting environmentally sustainable economic activity of the EMEA market External Review Allocation and Impact reporting provided annually until full allocation of the Sustainable Finance Instruments' proceeds Second Party Opinion (SPO) from Sustainalytics. Comunidad de Madrid might hire an external party to audit the allocation of proceeds Under the Green Finance Framework, Comunidad de Madrid can issue Sustainable Finance Instruments which include Green, Social, Sustainability bonds, thematic bonds, private placements and loans 1. 2. 23. https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/ https://www.icmagroup.org/green-social-and-sustainability-bonds/social-bond-principles-sbp/ 3. https://www.icmagroup.org/green-social-and-sustainability-bonds/sustainability-bond-guidelines-sbg/ 4. https://www.lma.eu.com/application/files/9115/4452/5458/741 LM Green Loan Principles Booklet V8.pdf Source: Comunidad de Madrid 49 49#50Second Party Opinion by Sustainalytics¹ 1. Use of Proceeds By financing social housing, CdM directly supports Spain's State Housing Plan Comunidad de Madrid finances public education for all, and allocates resources to guarantee access to education for students in disadvantaged situations The financing of the healthcare programme will facilitate the ongoing provision of quality healthcare services to the local population Comunidad de Madrid supports social cohesion and inclusion, protection of children and women, and care for the elderly and incapacitated via its measures and policies The support provided to Madrid's SMEs, will strengthen the competitiveness of SMEs and lead to the creation and preservation of jobs, and promote the integration of vulnerable people Financing low carbon transportation and reduction of global CO2 emissions are considered an impactful use of proceeds Project Evaluation and Selection In line with market practice Management of Proceeds In line with market practice Reporting In line with market practice SUSTAINALYTICS Second-Party Opinion Comunidad de Madrid Sustainable Finance Framework SUSTAINALYTICS SECOND- PARTY OPINION Evaluation date Issuer Location March 27, 2020 Madrid, Spain Evaluation Summary Sustainalytics is of the opinion that the Comunidad de Madrid Sustainable Finance Framework aligns with the Green Bond Principles 2018 Green Loan Principles 2018, Social Bond Principles 2018 and the Sustainability Bond Guidelines 2018. This assessment is based on the following USE OF PROCEEDS The sixeligible categories for the use of proceeds (Affordable Housing (0) Education (1) Healthcare (Social Inclusion (V) Economic Inclusion and SME Financing (vi) Climate Change and Environmental Management are aligned with those recognized by both the Green Bond Principles and the Social Bond Principles Sustainalytics considers the eligible categories outlined in the Comunidad de Machd Sustainable Finance Framework to have clear social and environmental benefits with specific relevance to UN Sustainable Development Goals 1, 3, 4, 5, 8, 11,13 and 15. PROJECT EVALUTION SELECTION Eligible programmes are evaluated and selected by a dedicated intemal Selection, Monitoring and Evaluation Committee The Committee is composed of representatives from the Regional Treasury Department and sub- departments for Financial Planning and Public Finance, and it will meet prior to the issuance of a sustainable finance instrument to select eligible programmes from the deneral Budget Sustainalytics considers the project evaluation and selection process of Comunidad de Madrid to be in line with market practice MANAGEMENT OF PROCEEDS In line with market practice, the proceeds of the Sustainable Finance Framework will be allocated to eligible budgetary programmes in the General Budget of Comunidad de Madrid, comesponding to the fecal year of the issuance and/or to the fiscal year preceding the year of the issuance. In case full elocation at issuance is not possible the unallocated proceeds will be held and/or invested in Comunidad de Madrid's liquidity portfo pending full allocation. REPORTING Comunidad de Madrid intends to report on the allocation of proceeds on its website within approximately one year from the date of issuance and until the proceeds have been fully allocated Allocation reporting will include the total amount provided to the various eligible budgetary programmes. Where feasible the impact report will include relevant impact indicators per each green and social eligible category Sustainalytica views Comunidad de Madrid's allocation and impact reporting se aligned with market practice Report Sections Introduction Sustainalytics Opinion. Appendices For Inquires, contact the Sustainable Finance Solutions project team Evan Bruner (A Project M evan [email protected] (+31) 20 2050027 Jean-Claude Berthelot (Amsterdam) Client Relations jean-claude bertheloteuatsinalytica.com (+31) 20 205 00 15 Sun 2020 3 11 Sustainalytics is of the opinion that the Comunidad de Madrid Sustainable Finance Framework is credible and impactful, and aligns with the Green and Social Bond Principles and Green Loan Principles 2018 The full Second Party Opinion is available at: http://www.comunidad.madrid/inversion/relacion-inversores/deuda-sostenible Source: Comunidad de Madrid 50 50#51Use of proceeds: transparent and audited programs Eligible categories Affordable Housing Brief category description Provision of affordable housing and shelter to disadvantaged populations Education Healthcare Social Inclusion • • • • • Program in the General Budget 261B Amount in € million (2022) 120.5 Provision of education to the youth (including disadvantaged groups) and support of public schools and universities 232A/322A,B,C,F/ 324M 1,340.5 Support to Madrid's Public Healthcare System and financing of high impact medicines against rare diseases 312A 3,080.4 Fight against gender violence and promotion of equal opportunities Integration, education and employment programmes and financial assistance to vulnerable groups at risk of social exclusion Universal accessibility to the public transportation system (reduced ticket price) Provision of goods and services to the elderly and the mentally and/or physically disabled SMEs financing Employment promotion and advancement, including people with distance to labour market 232B/231A,C,F,D,E / 232A,B,E/241A,M 261B/322A,B,F/ 422B/431A / 433A/ 453N / 463A 2,680.6 241A,M/422B / 431A/433A / 463A 543 Economic Inclusion and SME Financing Climate Change and • Waste management • Clean Transportation Environmental Management • Environmental conservation and biodiversity Source: Comunidad de Madrid 422B453N / 456A,N 813.7 51#52Contribution to the UN SDGS Comunidad de Madrid Sustainable Finance Framework contributes to the achievement of the EU 2030 Agenda for Sustainable Development SUSTAINABLE DEVELOPMENT GOALS WE SUPPORT 1 POVERTY GOOD HEALTH AND WELL-BEING W Affordable Housing (Target 1.4) Social Inclusion (Target 1.1 and 1.B) Healthcare (Target 3.8) www Comunidad de Madrid THE GLOBAL GOALS For Sustainable Development ་་་ SUSTAINABLE DEVELOPMENT * GOALS (11) Source: Comunidad de Madrid L QUALITY EDUCATION GENDER EQUALITY DECENT WORK AND ECONOMIC GROWTH SUSTAINABLE CITIES AND COMMUNITIES 13 ACTION CLINATE Education (Target 4.1, 4.2, 4.4, 4.A) Social Inclusion - Fight against gender violence and promotion of equal opportunities (Target 5.1 & 5.2) Social Inclusion (8.6) SMEs financing (8.3, 8.6) Affordable Housing (11.1) Clean and Sustainable Transportation (11.2) Climate Change Policies (13.2, 13.3) LIFE ON LAND Environmental conservation and biodiversity (15.1, 15.2) 52 59#53Management of Proceeds • An amount equivalent to the proceeds of the Sustainable Finance Instruments will be allocated to a mix of environmental and social projects and provision of service. All amounts can be traced back to Madrid's General Budget for a specific fiscal year. The use of revenue may include capital and operating expenditures of eligible project categories and programs, as well as indirect lending to projects such as grants for private and public organizations and consortiums for special purposes. Only Comunidad de Madrid's own expenditures (net of EU grants, EIB loans, state grants or other revenues earmarked for specific purposes) are eligible. Specific chapters of the relevant budgetary programs that will be excluded are: - Personnel expenditures (Chapter 1 of the budgetary programs), Financing costs (Chapter 3 of the budgetary programs), Contingency Funds (Chapter 5 of the budgetary programs), Financial assets (Chapter 8 of the budgetary programs), except for art.87-89 - Indirect investments in projects such as grants for private and public companies and consortiums for relative framework purposes. Financial liabilities (Chapter 9 of the budgetary programs) It is possible to issue multiple Sustainable Finance Instruments as long as the total amount of funding does not exceed the amount of eligible programs in the annual budget. The proceeds of sustainable finance instruments will be allocated to eligible programmes in the General Budget of Comunidad de Madrid, corresponding to the fiscal year of the Sustainable Finance Instrument issuance and, in case necessary, to the preceding fiscal year. An external auditor will verify the amounts within one year from the date of the Sustainable Finance Instruments issuance. Comunidad de Madrid ensures that the systems and processes as specified above meet their requirements over the lifetime of the instrument. Source: Comunidad de Madrid 53 53#54Projects List ELEGIBLE CATEGORY Affordable Housing Education Health TABLE OF SUSTAINABLE BOND PROJECTSA1:C45 NAME OF PROJECTS Eviction of Cañada Real and Guadarrama River. Acquisition of housing. Maintenance and conservation of inhabited social housing. Development of land for the construction of social housing. Construction of new social housing developments. Repair of uninhabited social housing for their second allocation. Neighbourhood Assistance Service of the Community of Madrid. ASIVECAM. Attention to students with specific educational support needs. Maintenance of Secondary Education Centres. Training and awareness-raising for women in situations of social exclusion. Scholarships for advanced vocational training. Refuerza Programme (academic support and reinforcement activity). Book lending programme. ACCEDE Programme. Educational compensation classrooms. High-impact medicines and orphan drugs. Collaboration with Local sector Collaboration with professional bodies. Mobile Drug Dependency Service. Collaboration with citizens' organisations. Reduced school menu prices. Economic benefits in situations of dependency. Home help in situations of dependency. Care for the elderly in centres. Subsidies for public transport users. Care for the elderly in centres for the elderly. Comprehensive care in residential centres for women victims of gender violence. Care in social canteens. Care in non-residential centres for women victims of gender violence. Economic benefits for the social integration of women victims of gender violence. Free school transport service for pupils in special education centres. Social Inclusion Free transport service for students with physical disabilities. Free school canteen service for pupils in special education centres. Free school transport service for pupils in shantytowns. Participation and integration centres (CEPI). Volunteer school. Housing First Programme. Care centre for people in situations of social exclusion. Network of volunteer information points (PIV). Madrid LGTBI Information and Care Programme. Minimum Insertion Income (RMI). Subsidies for integration projects linked to the Minimum Insertion Income (RMI). Development Cooperation Subsidies. AMOUNT 18,467,366.00 3,595,806.00 16,915.00 1,789,092.00 4,160,509.00 1,049,388.00 1,821,170.00 14,105,084.00 2,186.00 15,318,014.00 1,982,200.00 39,244,743.00 713,194.00 667,000,000.00 47,533.00 35,440.00 2,050,000.00 500,000.00 26,477,744.00 230,755,559.00 64,390,949.00 309,567,803.00 1,199,370,832.00 14,018,990.00 5,345,778.00 2,832,968.00 7,135,443.00 229,839.00 5,858,983.00 3,176,094.00 2,598,539.00 529,220.00 2,052,294.00 110,355.00 507,490.00 1,325,784.00 69,312.00 427,671.00 46,639,336.00 4,900,000.00 4,177,840.00 Pre-commercial public procurement. 0.00 Aid to Innovation Intermediary Entities. Economic Inclusion and SME Financing Climate change and the environment Aid for the promotion of technological sectors Consortia. Subsidies for the promotion of technological sectors. Start-ups Aid for the use of innovation services in SMEs Innovation vouchers. Aid for industrial SMEs Industry 4.0 projects. 2,500,000.00 809,160.00 609,302.00 1,597,922.00 188,956.00 Maintenance and support for the management of the air quality network. 1,194,116.00 TOTAL 2,711,396,91 54 54#55Reporting Framework example: Sustainability Bond Allocation Reporting 2021 Comunidad de Madrid Sustainable Finance Allocation Reporting 2021 Eligible Sustainability Project Portfolio Amount (EUR) Allocation of green funding Amount (EUR) Affordable Housing 29,079,076 Sustainability Bonds 1,000,000,000 Education 73,186,591 Social inclusion Economic inclusion Environmental Management 669,632,973 1,932,598,823 5,705,340 1,194,116 Eligible Sustainability Project Portfolio € 2,711,396,919.00 Sustainability Funding € 1,000,000,000 % of Eligible Sustainable Project Portfolio allocated: 36.9% Source: Comunidad de Madrid % Sustainable net proceeds allocated: 100% 559#56Impact Reporting Indicators Comunidad de Madrid will report over the most important social and environmental impacts produced by the eligible programs, based on the impact indicators. The following is a sample of the indicators by category: Eligible category Affordable housing Education Healthcare Social inclusion Economic inclusion Clean Transportation¹ Sample of impact indicators Number of vulnerable individuals or families benefiting from subsidized housing Number of supported special education centers Number of education programs or professional development aimed at young people in risk of exclusion Number of people with rare diseases who are provided access to adequate services and medication Number of supported victims of domestic violence (in terms of housing, financial, and other) Number of individuals or families who benefit from social minimum income Number of SMEs that receive support for equipment and facilities and technological modernization Number of electric vehicles acquired New points of electric vehicle recharge Annual GHG emission reduced/avoided Waste Management Environmental conservation and Biodiversity Amount of recycled or composted waste (tons) Area/Number of Protected Natural Parks and other areas with unique conservation value where there has been an intervention 1. Comunidad de Madrid may hire an external expert consultant to perform the impact reporting calculation of the indicators for this category Source: Comunidad de Madrid 56 56#57Reporting Framework example: Sustainability Bond Impact Reporting 2021 Allocation information Allocated to sustainable bond (amount) Project category Target population Eligible Project Category SDG Addressed Target Group (if applicable) Budgetted amount Affordable Housing Goal 1: No Poverty Goal 11: Sustainable Cities and Communities Disadvantaged and underserved groups MEUR Impact indicators Share of Total Budget Financing Number of beneficiaries Other impact indicators % Number Unit of measure Additional Indicators number / unit of measure 29,079,076 € 29,079,076 2.9% 119 Families with social housing Number of social housing units acquired 137 Number of students with academic Number of 24 Education Goal 4: Quality education Youth, disadvantaged groups € 73,186,591 € 73,186,591 7.3% 434.114 Number of vulnerable students scholarships 8 professional training higher degree Number of public schools (0-18 years) 1 Number of people with a Well-being Goal 3: Good Healthcare Health and Citizens (including disadvantaged and underserved groups € 669,632,973 € 419,632,973 42.0% 271 rare disease being provided access to services and adequate medication Number of people treatment medication high impact 35 Goal 1: No Poverty Social inclusion SDG 5: Gender equality Disadvantaged and underserved groups € 1,932,598,823 € 471,201,904 47.1% 1.636.007 Goal 4: Quality Number of individuals or families benefiting from social benefits Number of Number of individuals or families benefiting of social minimum income Number of victims of gender violence supported Number of subsidized trips education Economic inclusion Goal 8: Decent SMEs and long-term work and € 5,705,340 € 5,705,340 0.6% 139 unemployed SMEs that received support economic growth Environmental management Goal 13: Climate Action Total € 1,194,116 € 1,194,116 0.1% € 2,711,396,919 € 1,000,000,000 100.00% 2,070,650 a/ Eligible SDGs which are adressed by the financed portfolio/project and fit to the choosen SBP (sub) category Signed/budgetted amount committed by the issuer for the portfolio or portfolio components eligible for Sustainability Bond financing. b/ 206659 d/ e/ c/ This is the share of the total portfolio cost that is financed by the issuer. This is the share of the total portfolio costs that is Sustainability Bond eligible. Based on either the expected economic life or financial life of the portfolio. Impact indicators Source: Comunidad de Madrid 14,550 families 24 2,664,720 Number of annual data for air quality parameters 1,178,220 Number of annual data meteorological parameters 1,464,357 57 57#58• Leadership in Sustainable Bonds • First Spanish Region to issue Sustainable Bonds. • Largest number of Sustainable Bonds issued in Spain. • Ability to Issue Green, Social and Sustainable Bonds and Loans. • 5 Sustainable benchmark public bond issues since 2017. 38% of Sustainable Bonds in Comunidad de Madrid's annual issuance in 2021. • Largest amount outstanding in Sustainable Bonds (5,803 MM). Transparent and public reporting on projects financed by under the framework. Amount Settlement Tenor (€ million) Sustainable Bond (Public) 1,000 02/23/2018 10 Sustainable Bond (Public) 1,250 02/14/2019 10 Sustainable Bond (Public) 1,250 02/27/2020 10 Green Bond 700 05/08/2020 7 Sustainable Bond (Public) 1,000 03/26/2021 10 Green Bond 500 11/26/2021 7 Sustainable Bond (Public) 1,000 04/11/2022 10 Green Bond 500 10/14/2022 7 Source: Comunidad de Madrid 58 509#59IV.2021 GREEN BOND & IMPACT REPORTING CONSEJERÍA DE ECONOMÍA, HACIENDA Y EMPLEO Comunidad de Madrid#60Sustainability Mandate of Comunidad de Madrid Comunidad de Madrid has the clear social and environmental mandate to meet the needs of its citizens. The Region is committed to integrate sustainable development and social responsibility in all its activities while playing a key role to promote sustainable development initiatives on the territory. The social expenditures include several programs such as the financing of public polices related to public health, education, social services, employment promotion, public transportation, and subsidized housing. The community of Madrid's expenditure on social programs aim to strengthen Madrid's socio-economic recovery and improve social cohesion, thanks to the development of public services that benefit all the citizens and the implementation of programs to promote employment through investment of small businesses. Additionally, Comunidad de Madrid has an important environmental mandate. Almost 50% of the region area of the region is protected due to its environmental protection and conservation value. The geo-economic situation in Madrid creates the need to implement policies for pollution management and waste treatment in densely populated urban areas. Regarding the latter, the region set out its Strategy for Sustainable Waste Management for the 2017-2024 period. In relation with climate change and air quality, the Plan Azul+ 2013-2020 has been the backbone for eight years, particularly focusing in tackling pollution and promoting energy efficiency. Among the measures set out in the Plan Azul+, which is expected to be followed by a new Plan from 2021, we find the following objectives by sector, which are representative of the regions' general sustainable strategy: • • • . Transportation: modernisation of the taxi and bus fleets with greener vehicles, improvement of bicycle infrastructure, fiscal incentives for the transition towards greener technologies in private transportation Industry: reduction of emissions from industrial activities, like NOX produced by cogeneration plants Residential/commercial/institutional: use of clean fuels for domestic heating, improvements in energy efficiency, smart grids Agriculture: sustainable management of forests, promotion and development of biomass energy In the social category, there is a Strategy for Social Inclusion 2016/2021, within the framework of the Europe 2020 Strategy, which seeks to eradicate severe poverty from the region. Source: Comunidad de Madrid 60#61Contribution to the UN SDGs The Community of Madrid is committed to the implementation of the 2030 Agenda for Sustainable Development. In order to implement concrete actions, the project "Madrid is Action" has been established. SUSTAINABLE GOALS DEVELOPMENT 17 GOALS TO TRANSFORM OUR WORLD WE SUPPORT NO POVERTY GOOD HEALTH AND WELL-BEING Affordable Housing (Target 1.4) Social Inclusion (Target 1.1 and 1.B) Healthcare (Target 3.8) www Comunidad de Madrid THE GLOBAL GOALS For Sustainable Development ་་་ W QUALITY EDUCATION Education (Target 4.1, 4.2, 4.4, 4.A) 5 GENDER EQUALITY DECENT WORK AND ECONOMIC GROWTH 13 ACTION CLINATE Social Inclusion - Fight against gender violence and promotion of equal opportunities (Target 5.1 & 5.2) Social Inclusion (8.6) SMEs financing (8.3, 8.6) Affordable Housing (11.1) Clean and Sustainable Transportation (11.2) Climate Change Policies (13.2, 13.3) SUSTAINABLE DEVELOPMENT * GOALS 11 SUSTAINABLE CITIES AND COMMUNITIES (11) Source: Comunidad de Madrid LIFE ON LAND Environmental conservation and biodiversity (15.1, 15.2) 61#62Green Expenditures for the 2021 Green Bond issuance Clean Transportation ENT EMT MADRID 135 Irizar © 2569 LCD Comunidad de Madrid supports the decarbonization of the Region's public transport ⚫ In 2020, EMT Madrid has approved a €39m investment for the purchase of 50 new electric buses and 15 electric micro-buses This is in line with the company' strategy of gradually reducing the fleet's carbon emissions Comunidad de Madrid supports the maintenance and development of the fully-electrified Madrid's metro Thanks to the Energy Saving Plan 2012-2017 and the current Energy Efficiency Plan, Metro de Madrid - the public enterprise of the Madrid underground - has reduced electricity consumption in daily operations by 25% Comunidad de Madrid becomes the first Public Sector issuer in Spain to align its Green bond with the EU taxonomy and standards Source: Comunidad de Madrid 62 62#63Comunidad de Madrid 2021 Green Bond review Final Terms and Conditions Issuer Issuer Ratings Issue Ratings Format Ranking Size The Autonomus Community of Madrid Baa1/A-/BBBU/AL (all Stable) Moody's/S&P/Fitch/DBRS A-/AL (S&P/DBRS) Regs, Bearer Dematerialised (No sales into Canada) Senior, Unsecured EUR 500m Risk Weighting 0% Maturity Settlement Coupon Reoffer Spread Reoffer Price Listing Gov Law Bookrunners ISIN 30th July 2028 26th November 2021 (T+7) 0.16% Fixed, Annual, Act/Act - Short first SPGB 1.4 07/28 (mid) + 11 bps @ 0.05% 94% HR 100% AIAF Spanish BBVA, CaixaBank, CACIB, DB (B&D) and Santander ES00001010G6 Investor Type and Geographic Distribution 28% 18% 18% 14% 10% 7% 3% 2% Spain Germany & Austria Italy BeneLux France Switzerland Scandinavia Rest of Europe 38% 38% 16% 8% Transaction Highlights • On November 16th 2021, the Autonomous Community of Madrid formally mandated banks for a new 7yr Green Bond. • On November 17th, and with substantial lols from investors, IPTS were released at SPGB+14bps area which enabled the book to gain further momentum and continue growing, reaching EUR1bn demand (excluding JLM interest) two hours after the announcement: • Books peaked over EUR1.2bn (including JLM interest), allowing to revise price to SPGB+12bps area (+/- 1bps). • The strength and the granularity of the book with over 85 accounts involved allowed the Autonomous Community of Madrid to land a final spread of SPGB+11 bps. • The spread of SPGB+11 bps was the tightest level over SPGB ever printed by the Community of Madrid in a syndicated deal. • This spread also represents only 1bps new issue premium to its secondary curve in a period of extreme volatility in fixed income markets, which clearly reflects the strong support from its investor base. • Community of Madrid also consolidated its position as the leading issuer of sustainable bonds, being the first Spanish public sector issuer to print two green syndicated bond deals. SRI 64% Banks FM PF-Ins Off. Inst 63#64Highlights of the 2021 Comunidad de Madrid's Second Green Bond The only region in Spain that has issued Green Bonds so far Comunidad de Madrid is committed to keep on promoting the ESG bond market and sustainable investments with a Framework that allows the Region to issue Green, Social and Sustainable Bonds The proceeds of the bond have been allocated to expenditures in Clean Transportation Avoided a total of 144,175 tons in CO2eq atmospheric emissions 2021 Green Bond used of proceeds is fully aligned with the EU Taxonomy EU Strong demand from dedicated ESG investors Source: Comunidad de Madrid 64#65Green Eligible Expenditures for 2021: Use of Proceeds (I) Eligible Category Overview of the Green Eligible Expenditures 2021 Main eligible expenditures Budgetary Programme Budget code UN SDGs EU Environmental Objectives Waste Management: 16: Environment, • Measures to implement the Waste Strategy of Comunidad de Madrid Local administration 11 456N 456B SUSTAINABLE CITIES AND COMMUNITIES EU Objective 4: Circular economy and territorial planning Climate change and environmental management Clean transportation: . Promote the manufacture and use of the electric vehicles and points of recharge Promote public transport services and modal shift towards public transportation (e.g. railway, metro de Madrid, bus system) and soft mobility, support multimodal transport solutions and promote the use of bicycles 11 SUSTAINABLE CITIES AND COMMUNITIES 14: Transport, Social Housing & Infrastructure 453N 456B CLIMATE ACTION Environmental conservation: Management and restoration of Protected Natural Parks and other unique spaces with important conservation value 16: Environment, Local administration and territorial planning Source: Comunidad de Madrid 15 LIFE ON LAND 456A EU Objective 1: Climate Change Mitigation EU Objective 6: protection and restoration of biodiversity and ecosystems 65#66Green Eligible Expenditures for 2021: Use of Proceeds (II) Green categories Waste Management Overview of the Green Eligible Expenditures Portfolio 2021 Clean Transportation 11 SUSTAINABLE CITIES Environmental Conservation Source: Comunidad de Madrid Amount (EUR UN SDGs m) Subcategories Amount (EUR m) 11 SUSTAINABLE CITES AND COMMUNITIES Domestic Waste Management 4.9 6 Maintenance of the Air Quality Network 1.1 EMT Bus 116.5 AND COMMUNITIES Intercity Bus 81 Metro 387.8 720.5 13 CLIMATE ACTION Measures for the Promotion of Sustainable Mobility 1.4 Light Train 133.8 Environmental Education 1.0 Conservation of Protected Natural 2.3 Areas Connectivity through Green Infrastructure 2.6 15 N ON LAND 7.2 Protection of Wetlands 0.3 733.6 Recovery and improvement of private forest areas 0.4 10 Grants to NPOs with Environmental Purposes 0.5 733.6 66#67Green Eligible Expenditures for 2021: Use of Proceeds (III) Overview of the Green Use of Proceeds Main Eligible expenditures Waste Management Clean Transportation Impact Indicators UN SDGs Allocated Amount (EUR m) Allocated Subcategories Amount (EUR Managed Waste (tn) Data Samples Collected m) Emissions Avoided (tCO2) Vehicles Subsidized Number of Programs Intervened Surface (ha) Domestic Waste 11 AND COMMUNITIES SUSTAINABLE CITIES 4.9 302,726 Management A 6 Maintenance of the Air 1.1 Quality Network EMT Bus 116.5 SUSTAINABLE CITES AND COMMUNITE Intercity Bus 81 Metro 387.8 1,464,357 6,280 33,426 137,895 720.5 13 ACTION PLINATE Measures for the Promotion of Sustainable Mobility 1.4 3,530 Light Train 133.8 6,476 Environmental 1.0 15 Education Conservation of Protected Natural 2.3 118,527 Areas Connectivity through 2.6 581 Green Infrastructure Environmental Conservation 15 FE ON LAND 7.2 Protection of Wetlands 0.3 15 Recovery and improvement of 0.4 6,557 private forest areas Grants to NPOS with Environmental Purposes 0.5 733.6 Source: Comunidad de Madrid 733.6 Projects Selected 11 67#682021 Green Bond: Allocation and Impact reporting Overview of the allocation of bond proceeds Impact Indicators EU Taxonomy (6.3 Urban and suburban transport, road passenger transport) EU Technical Screening Criteria DNSH Minimum Criteria Safeguards Green category UN SDGs Subcategories Allocated Emissions Amount Avoided (EUR m) (tCO2) Primary EU Environmental Objective EMT Bus 112.2 6,280 11 SUSTAINABLE CITIES AND COMMUNITIES Clean Transportation 13 ACTION Metro 387.8 137,895 CLIMATE EU Objective 1: Climate Mitigation Source: Comunidad de Madrid 500 144,175 68#69Comunidad de Madrid Green Bond 2021: Impacts in the Region's Public Transport A D:D • Metro: the equivalent distance travelled by car would have caused 406,833 tCO2 emissions • EMT bus: the equivalent distance travelled by car would have caused 9,347 tCO2 emissions. • Intercity bus: the equivalent distance travelled by car would have caused 63,648 tCO2 emissions. • Light trains: the equivalent distance travelled by car would have caused 9,173 tCO2 emissions Emissions avoided by Clean Transportation initiatives funded by the 2021 Green Bond proceeds are equivalent to in excess of those of 72,329 passenger vehicles per year* 2021 Emissions Avoided by Green Public Transportation means in the Region (tCO2): 370,024 *Impact calculated based on a reference travel distance of 15,000 km per year by a typical diesel car 69#70EU Taxonomy alignment process 2021 Green Bond Comunidad de Madrid • The EU taxonomy is a classification system identifying green economic activities that contribute substantially to one of the European Union's six environmental objectives including climate change. • • In 2022, Comunidad de Madrid has carried out an exercise to asses which proportion of its use of proceeds reported in its second Green Bond (issued in 2021) is aligned with the EU taxonomy. In this regard, Comunidad de Madrid has asked DNV to asses Comunidad de Madrid's 2021 Green Bond Use of Proceeds (Clean Transportation) compliance with the EU Taxonomy and has received a positive assessment. The assessment is limited to the expenditures allocated to the second Green Bond issued in 2021 by the Region and reported in this document. An activity is considered compliant with the EU Taxonomy if: 1. it contributes substantially to one or more of the environmental objectives or enables other activities to make a substantial contribution to one or more of them, 2. it does no significant harm to other environmental objectives, and Taxonomy eligibility Technical screening phase 3. it complies with social and governance Minimum social safeguards compliance safeguards. No Yes Do screening criteria exist for the economic activity? Yes Does the activity substantially contribute to climate change mitigation? Yes No Does the activity meet the Do No Significant Harm requirements? Yes No Does the activity comply with the Minimum Social Safeguards? 70#71Green Bond 2021: DNV opinion on Taxonomy alignment assessment DNV WHEN TRUST MATTERS Finding and DNV's Opinion Alignment to EU Taxonomy GREEN BOND ALLOCATION AND IMPACT REPORTING EU Taxonomy Alignment Comunidad Autónoma de Madrid Report No.: 1, Rev. 1 Document No.: PRJN-446392 Date: 23/09/2022 Table 1: Compliance with the technical screening criteria EU Taxonomy Technical Screening Criteria The activity provides urban or suburban passenger transport, and its direct (tailpipe) CO2 emissions are zero Until 31 December 2025, the activity provides interurban passenger road transport using vehicles designated as categories M2 and M3 that have a type of bodywork classified as 'CA' (single-deck vehicle), CB' (double-deck vehicle), CC (single-deck articulated vehicle) or 'CD' (double-deck articulated vehicle), and comply with the latest EURO VI standard, .e. both with the requirements of Regulation (EC) No 595/2009 and, from the time of the entry into force of amendments to that Regulation, in those amending acts, even before they become applicable, and with the latest step of the Euro VI standard set out in Table 1 of Appendix 9 to Annex 1 to Regulation (EU) No 582/2011 where the provisions governing that step have entered into force but have not yet become applicable for this type of vehicle. Where such standard is not available, the direct CO₂ emissions of the vehicles are zero. N.A. Project EU Taxonomy Alignment-Comunidad de Madrid Use of proceeds for Metro (EUR 387.8 million) and electric buses (EUR 105.375 million) are zero emissions and hence considered aligned with substantial contribution criteria set by the EU Taxonomy. Use of proceeds for Hybrid busses (EUR 11.125 million) fit Regulation 2020/852 and are aligned with the technical screening criteria. Comunidad de Madrid has provided type approvals and technical specification of the busses showing compliance with EURO VI standard. in as a transitionall activity as referred to in Article 10 of Emissions avoided with this LoP have been calculated by Comunidad de Madrid as 137,895 tCO2 for Metro, and 6,280 tCO2 for busses (EMT). Table 3: Compliance with the minimum social safeguards Minimum social safeguards As per article 18 of Regulation (EU) 2020/852: The minimum safeguards referred to in point (c) of Article 3 shall be procedures implemented by an undertaking that is carrying out an economic activity to ensure the alignment with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights: Project EU Taxonomy Alignment - Comunidad de Madrid CSR Policy and Code of Conduct is in place for both Metro and EMT, aligned with the principles and rights set in the UN Guiding Principles on Business and Human Rights and the principles and rights set out in the fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights. As part of public administration, procurement is regulated by the Public Sector Contracts Act and subject to principles and including requirements of responsible procurement, compliance with ethical standards and respect for the human rights, integrity, transparency and protection of the environment. DNV has reviewed the information provided and concludes. that Comunidad de Madrid complies with the minimum social safeguards in Article 18 of Regulation (EU) 2020/852. "On the basis of the information provided by Comunidad de Madrid and the work undertaken, it is DNV's opinion that proceeds have been used on Clean Transport projects that are aligned with the criteria established in the EU Taxonomy for Sustainable Activities- ANNEX 1 to Regulation (EU) 2021/2139 Section 6.3 (i). for DNV GL Business Assurance España S.L.U." Table 2: Compliance with the "Do no significant harm" ("DNSH") criteria. DNSH Criteria (2) Climate change adaptation The activity complies with the criteria set out in Appendix A to Annex 1 (EU) 2021/2139. (3) Sustainable use and protection f water and marine resources NA (4) Transition to a circular economy Measures are in place to manage waste, in accordance with the waste hierarchy, both in the use phase (maintenance) and the end-of-life of the fleet, including through reuse and recycling of batteries and electronics (in particular critical raw materials therein). (5) Pollution prevention and control For road vehicles off categories M, tyres comply with external rolling noise requirements in the highest populated class and with Rolling Resistance Coefficient (influencing the vehicle energy efficiency) in the two highest populated classes as set out in Regulation (EU) 2020/740 of the European Parliament and of the Council and as can be verified from the European Product Registry for Energy Labelling (EPREL). Where applicable, vehicles comply with the requirements of the most recent applicable stage of the Euro VI heavy duty emission type- approval set out in accordance with Regulation (EC) No 595/2009. (6) Protection and restoration of biodiversity and ecosystems NA Project EU Taxonomy Alignment - Comunidad de Madrid Following climate change vulnerability and risk analysis, Comunidad de Madrid issued Plan Azul 2013-2020, a strategical program of measures for mitigation and adaptation to climate change, to be implemented in Comunidad de Madrid. Furthermore, a new strategy is under development. that will set out the broad lines of action up to 2030 to make. progress in terms of climate action (mitigation and adaptation) and improvement of air quality, in line with recent international and national guidelines and requirements. The UOP in Metro and Busses is deemed not to interfere with the adaptation measures contained in Plan Azul, measures for water resources, other vulnerable systems and industries, indicators for climate change adaptation, reforestation, increase of carbon sequestration in agricultural soils in the region. DNV considers this is in line with the criteria established for Climate Change Adaptation in Commission Delegated Regulation (EU) 2021/2139, Annex 1, 6.3 Urban and suburban transport, road passenger transport. Not applicable as per Commission Delegated Regulation (EU) 2021/2139, Annex 1, 6.3 Urban and suburban transport, road passenger transport. However, Metro has provided evidence of extensive water use and management plans for each underground station showing plans and measures to mitigate effects on water resources. Metro de Madrid and EMT operate under an Environmental Management Systems certified according to ISO 14001. Responding to a new organisational model in Mietro, actions and initiatives are implemented based on integral sustainability, using and optimising stocks and flows of resources (water and energy), materials and waste. Among others recovery of more than 95% of the waste generated. including batteries and electronic products, through improved waste segregation and management. A strategic plan in place in EMT for circular economy includes projects like the design and construction of a Hydrogen Fuelling Station and purchasing of biogas for the supply of CNG. DNV considers this is in line with the criteria established for circular economy in Commission Delegated Regulation (EU) 2021/2139, Annex 1, 6.3 Urban and suburban transport, road passenger transport. Comunidad de Madrid has provided type approvals and technical specification of the busses showing compliance with EURO VI standard and external noise requirements. DNV considers this is in line with the criteria established for pollution and prevention control in Commission Delegated Regulation (EU) 2021/2139, Annex 1, 6.3 Urban and suburban transport, road passenger transport. Not applicable as per Commission Delegated Regulation (EU) 202 1/2139, Annex 1,6.3 Urban and suburban transport, road passenger transport 71#72Clean Transportation Impact Calculation Methodology 1.- METHODOLOGICAL BASES The methodology developed and the emission factors applied are based on the following references: 1. 2. 3. EMEP/EEA Air pollutant emission inventory guidebook - 2019. IPCC Guidelines for National Greenhouse Gas Inventories, 2006 Intergovernmental Panel on Climate Change Guidelines for National Greenhouse Gas Inventories (hereafter 2006 IPPC). National Inventory of Emissions to the Atmosphere of Spain of the Ministry of Agriculture and Fisheries, Food and Environment. The methodology used is based on that proposed in the European Environment Agency's technical report COPERT IV (Computer Program to Calculate Emissions from Road Transport), which is used as a reference in the EMEP/EEA and IPCC guidelines. This methodology is based on the application of emission factors by type of vehicle and according to different speeds, as well as other estimation algorithms. In the case of direct emissions from urban and interurban bus fleets, diesel hybrid buses and natural gas hybrid buses have been included. According to the COPERT methodology, CO2 emissions are included within the Group 2 pollutants in terms of the calculation approach, where emissions are estimated from fuel consumption using the emission factors by pollutant and vehicle type, published in the National Emissions Inventory. The calculation algorithm is as follows: E_(CO2,k)=(FE)_(CO2,k) x[Cons]_k where: ECO2,k CO2 emissions per vehicle type k. Consk Fuel consumption by vehicle type k. FECO2,k = CO2 emission factor, for vehicle class k. Therefore, the activity data used is the fuel consumption or otherwise the km traveled, estimating in this case the fuel consumption based on the consumption factors [g fuel/km] for each type of vehicle k for the speed considered. The emission factors used are those published by the Spanish Climate Change Office (OECC), with those for 2019 being those available to date. The estimation of indirect emissions associated with electricity consumption is carried out taking into account the emission factor of the retailer that supplies electricity to each home. These emission factors are those published by the Comisión Nacional de los Mercados y las Competencias, being the 2019 factors those available to date. The calculation algorithm is as follows: EEE = CEE X FECO2_EE Where: EEE CO2 emissions from electricity consumption (t CO2). CEE= Electrical Energy Consumption (kWh). FECO2_EE = CO2 emission factor associated with electricity consumption (t CO2/kWh). In order to quantify the emissions avoided by regular public passenger transport, it is taken into account that the demand for travel would be satisfied by the use of private vehicles. The calculations of avoided emissions are made considering that the passenger-km traveled by CRTM buses in a given year are in turn traveled by passenger vehicles and with an average occupancy rate. Passenger-km traveled is the result of adding the product of the length of an average trip (km) and the number of passengers. The calculation equations are analogous to those used to estimate bus fleet emissions, but in this case using DEFRA 2020 factors. 2.- YEAR OF CALCULATION: 2021 3.- SCOPE: Road modes: EMT of Madrid (hybrid and pure electric vehicles) Road concessions in the rest of the Community of Madrid (hybrid and pure electric vehicles) Railway modes: Metro de Madrid (Subway) Railway concessions 4.- ACTIVITY DATA Road modes: Vehicle characteristics (Euro standard, fuel type) Railway modes: Fuel/electrical energy consumption of vehicle fleets o Kms traveled per year Electrical energy consumption for traction and auxiliary installations 5.- EMISSION FACTORS CO2 emission factors and density and PCI parameters for fossil fuels and electricity published by the Spanish Climate Change Office (OECC), available 2020 to date COPERT consumption factors per KM (EMEP/EEA 2019 Guidelines). DEFRA 2020 factors (private vehicle emissions) 6.- AUTHORS OF THE CALCULATION CRTM with the collaboration of NOVOTEC Consultants in the Calculation of Emissions from road concession buses in the rest of the Community of Madrid, based on its own data (supply and demand) and activity data (fuel/electrical energy consumption) provided by the corresponding operators. 72#73Thanks you for your attention Contact Information Rodrigo Robledo Tobar Director General for Financial Policy and Treasury Mª Luz García Aliaga Deputy Director Financial Policy • • Beatriz Mula Coso Head of Funding [email protected] http://www.comunidad.madrid/inversion/relacion-inversores Disclaimer This presentation was created by the Comunidad de Madrid This presentation does not constitute an offer or invitation (by or on behalf of) the Comunidad de Madrid to the subscription or purchase of securities issued by the Comunidad de Madrid. This presentation is not intended to provide any assessment of the financial situation of the Comunidad de Madrid or any assessment of the instruments used by the Comunidad de Madrid and should not be considered as a recommendation from the Comunidad de Madrid. Each recipient of this presentation, independently, should judge the relevance of the information contained in this document, make their own assessment and determine whether additional information should be sought and consult their own advisors in terms of legal, fiscal, or another type that is deemed necessary. 73#74ANNEXES CONSEJERÍA DE ECONOMÍA, HACIENDA Y EMPLEO Comunidad de Madrid#75Overview of outstanding Sustainable transactions Settlement Maturity Amount Settlement Maturity Amount BILATERAL LOANS Social Loan 2016 2026 20.000.000 Sustainable Loan 2017 2032 240.000.000 SUSTAINABLE PLACEMENT Private Placement (Social) 2016 2031 48.000.000 Sustainable Loan 2018 2032 340.000.000 Private Placement (Sustainable) 2018 2058 238.000.000 Sustainable Loan 2018 2028 39.000.000 Private Placement (Sustainable) 2020 2050 265.000.000 Sustainable Loan 2019 2030 50.000.000 Sustainable Loan 2019 2029 97.000.000 Private Placement (Health Social) 2020 2023 52.000.000 Sustainable Loan 2019 2030 220.000.000 Public Benchmark (Sustainable) 2017 2022 700.000.000 Sustainable Loan 2020 2023 100.000.000 Public Benchmark (Sustainable) 2018 2028 1.000.000.000 Sustainable Loan 2022 2033 100.000.000 Green Loan 2022 2034 300.000.000 Public Benchmark (Sustainable) 2019 2029 1.250.000.000 Sustainable Loan 2022 2037 100.000.000 Public Benchmark (Sustainable) 2020 2030 1.250.000.000 Social Loan 2022 2032 100.000.000 Public Benchmark (Sustainable) 2021 2031 1.000.000.000 Sustainable Loan 2022 2027 50.000.000 Green Loan 2022 2031 100.000.000 SUPRANATIONAL LOANS Public Benchmark (Sustainable) GREEN BOND 2022 2032 1.000.000.000 Sustainable Loan 2018 2027 70.000.000 Public Benchmark (Green) 2020 2027 700.000.000 Sustainable Loan 2020 2029 130.000.000 Public Benchmark (Green) 2021 2028 500.000.000 Health Social Loan 2020 2033 140.000.000 Health Social Loan 2020 2035 465.000.000 Health Social Loan 2020 2035 135.000.000 Public Benchmark (Green) TOTAL 2022 2029 500.000.000 8.503.000.000 Health Social Loan 2020 2033 51.000.000 Health Social Loan 2021 2034 9.000.000 Sustainable Loan 2022 2035 10.000.000 Health Social Loan 2022 2041 200.000.000 Health Social Loan 2022 2037 Sustainable Loan 2022 2035 TOTAL 200.000.000 25.000.000 3.291.000.000 TOTAL SUSTAINABLE 11.794.000.000 Source: Comunidad de Madrid 75#76Debt issuance Procedure: Public issue (I) Authorizations *Authorization from the Regional Government. + Authorization from the Central Government. Contact with Investors and Financial Institutions * Continuous contact is maintained with investors and financial institutions, indicating deadlines, levels and amounts in which Comunidad de Madrid has more interest. •Instructions to a group of institutions that are selected taking into account those which have realized higher amounts of private placements with Comunidad de Madrid, as well as those which have participated successfully in public issue of equivalent terms of the Treasury; FADE, ICO, FROB and even private companies. If market conditions are good the transaction will carry out. *Range price formation. The syndicate, in communication with Comunidad de Madrid, sets a price range to trade the issue within the agreed timeframe with Comunidad de Madrid; the eventual commission to be received by the syndicate is discussed, and on the issue date, Comunidad de Madrid informs via email of the roles to be played by each one of the participants of the group and seeks the approval of the syndicate. *Onthe scheduled issue date, the transaction is announced on the trading screens of Bloomberg and Reuters in order to capture the attention of investors. •The order book is opened. The order book is closed. Fixing of Issue Price *Once the bonds have been allotted to the investors who have recorded orders in the book, a time is announced to fix the issue price; at the scheduled time, a joint call for fixing the price is made. Once Comunidad de Madrid and all banks are connected online with the screens of Bloomberg, the transaction is priced in accordance with the agreed terms in the Termsheet, based on the Treasury references. Fixing the issue price, coupon and IRR for the transaction. A first simulation of the relevant calculations is made. Documentary Process *Sending the final Termsheet, with the terms and conditions of the transaction that has just been established, to his approval. At this stage, a distribution by type of investor and nationality is requested. At this point, the institution that has been assigned this role, advises Bloomberg of the price, date, coupon, and ISIN code for the transaction. •Preparation internal report to be signed by the Managing Director of Financial Policy, Treasury and Real Estate and then sent out to our Legal Services. •Legal Service, in accordance with the terms of the report, applies for the corresponding ISIN code to the Bank of Spain and prepares the transaction authorization order to be signed by Regional Minister of Economy and Finance once it has been examined by the Intervención Delegada de Tesorería. *The Orden is published in the BOCM at least two days before payment takes place, since during this period of time the Bank of Spain must be advised of the list of subscribers and the application for the credit of securities; this Order becomes the Prospectus for the public issue. Letters are also sent to the rating agencies in order to request an specific rating for the transaction in question, that is submited to the subscribing institution. • At the same time, over this period, Legal Services, along with the Financial Institution, prepare the Contract which is signed the day before disbursement day and requires a preparatory report by Legal Sercices and by the Intervención Delegada de Tesoreria. That Contract: ⚫Is a suscription contract. *Is excluded from the scope of Law 30/2007, of 30 october, on Public Sector Contracts. Disbursement :T+7 *Disbursement :T+7 *At this stage, the rating letters from the rating agencies are submitted to the subscribing institution. Source: Comunidad de Madrid 76#77Debt Issuance Procedure. Private placement or retap (II) Authorizations • Authorization from the Regional Government. • Authorization from the Central Government. Contact with Investors and Financial Institutions • Continuous contact is maintained with investors and financial institutions, and the comunications indicate that Comunidad de Madrid has the necessary authorizations to execute financial transactions, as well as the deadlines, levels and minimum, amounts that interest us. • A specific offer is submitted by an investor o financial institution which should have been assigned a code by the Bank of Spain (Banco de España); for this reason, sometimes the operation is carried out through a bank that has been assigned such code and functions as an intermediary. •The offer submitted is then studied by means of an indicative termsheet, in which key elements that must be included are: • Amount • Princing date •Date of disbursement *IRR all-in (including all commissions) indicating the Treasury reference levels. Fixing of Issue Price • Once the operation has been internally approved, taking into account the financial strategy of Comunidad de Madrid, the pricing time is fixing with the financial institution. • On the day and agreed time for princing, the financial institution contacts by telephone with Comunidad de Madrid in order to establish the price. ■Connected online with the screens of Bloomberg, and in accordance with the terms established in the indicative Termsheet, a first simulation of the relevant calculations is made, and if the parties agree, the transaction is established in a real way. Documentary Process • The final Termsheet, with the terms and conditions of the transaction that has just been established, is submitted to the issuer for his approval. At this stage, a distribution by type of investor and nationality is requested. At this point, the financial institution advises Bloomberg of the amount, coupon, maturity date and ISIN code for the transaction. • Preparation Internal Report to be signed by the Managing Director of Financial Policy, Treasury and Real Estate. • Legal Services, in accordance with the terms of the Report, applies for the corresponding ISIN code to the Bank of Spain (provided that the transaction is not a reopening) and preparesthe authorization order to be signed by the Regional Minister of Economy and Finance, once it has been examined by the Intervención Delegada de Tesorería. •The Order is published in the BOCM at least two days befores payment takes place. Bank of Spain is advised of the list of subscribers and the application for the credit of securities.This Order becomes the Prospectus for the private placement. Letters are also sent to the rating agencies in ordento request an specific rating for the transaction in question, that is submited to the subscribing institution. • Atthe same time, over this period, Legal Service, along with the Financial Institution, prepare the Contract which is signed the day before disbursement day and requiresa preparatory report by Legal service and by the Intervención Delegada de Tesorería. Said Contract: Is a subscription contract. *Is excluded from the scope of Law 30/2007, of 30 october, on Public Sector Contracts. Disbursement (T+6) • Disbursement: T+6 • At this stage, the rating letters from the rating agencies are submitted to the subscribing institution. Source: Comunidad de Madrid 77#78Affordable Housing Use of proceeds: Proceeds of the Sustainable Finance Instruments will be allocated to projects aimed at fighting against housing exclusion by providing affordable housing and shelter to disadvantaged populations. • Eligible expenditures include: Development and provision of social housing in Comunidad de Madrid; Renovation, maintenance and improvements of affordable housing projects; Provide affordable housing with adjusted rents to disadvantaged targeted populations; Maintenance, adaptation and modernization of shelters for at risk youth, improving spaces for accommodation. 16 14 By financing affordable housing, Comunidad de Madrid directly supports Spain's State Housing Plan Source: Comunidad de Madrid 78#79Education Use of proceeds: Proceeds of the Sustainable Finance Instruments will be allocated to projects aimed at providing educational programs and vocational training to youth, as well as allowing for a successful integration of disadvantaged groups in the education system, preparing them for future labor market opportunities. Eligible expenditures include: • • • • . Construction, rehabilitation and maintenance of public education schools; Construction, rehabilitation and maintenance of public education centers; Acquisition of equipment to ensure a quality education in public education schools; Financing expenses related to home educational support service (SAED), hospital classrooms (AAHH) and therapeutic educational centers (CET); Financing educational programs and vocational training for young people at risk of exclusion or unemployed; Collaboration to support the integration of students with special educational needs; Expenses related to subsidized school transport services; Financing the development and maintenance of public universities; Providing financial support to university students, based on socioeconomic criteria such as income level and patrimony, or disabilities. Comunidad de Madrid finances public education for all, and devolves particular attention to allocate resources to guarantee access to education for disadvantaged students Source: Comunidad de Madrid 79#80Healthcare • • Use of proceeds: Proceeds of the Sustainable Finance Instruments will be allocated to projects aimed at providing a modern and sustainable public healthcare service system to the citizens of Madrid (including, but not limited to, vulnerable groups). Eligible expenditures include: Development, maintenance and modernization facilities integrated in the public healthcare service system (hospitals, health-care centers, mental health facilities, etc.); Provision of health care or social services in underdeveloped areas or vulnerable populations; Acquisition of medical equipment or provision of diagnostic services; Financing programs for the promotion of health; Financing activities to prevent and treat drug addiction. Expenditures related financing to healthcare aimed at fighting COVID-19 in the Madrid's Region can be used for the purpose of the issuance of thematic social bonds. The financing of the healthcare programme will facilitate the ongoing provision of quality healthcare services to the local population, including, but not solely, to the disadvantaged groups Source: Comunidad de Madrid 80 00#81Social Inclusion Use of proceeds: Proceeds of the Sustainable Finance Instruments will be allocated to projects aimed at supporting, integrating and providing basic services to several vulnerable population groups (victims of domestic violence, the elderly, risk population and minorities, physically and/or disabled people, etc.) and to integrate, education and employment programs as well as financial assistance to vulnerable groups at risk of social exclusion. Eligible expenditures include: Fighting against domestic violence and promotion of equal opportunities; Support integration of families and individuals at risk (social action and education); • Provision of financial assistance (i.e minimum income) to people at risk of social exclusion; • Ensure universal accessibility to the MADRILENA CONTRA LA VIOLENCIA DE GENERO 016/2021 Robin food 1 Pro public transportation system; • Support to the elderly; • Support to the mentally and/or physically disabled. Comunidad de Madrid supports social cohesion and inclusion, protection of children and women, and care for the elderly and incapacitated via its measures and policies Source: Comunidad de Madrid 81#82Economic Inclusion & SME Financing Use of proceeds: Proceeds of the Sustainable Finance Instruments will be allocated to projects and programs aimed at promoting labor market entry opportunities for long-term unemployed or people with lower employment prospects, and financing SMEs in the Comunidad de Madrid. This activity will contribute to the growth and development of Madrid's economy, hence promoting employment creation and retention. Eligible expenditures include: • • • • Supporting professional training directed at the unemployed in the Comunidad of Madrid; Conducting studies and labor market research to plan and implement policies of employment; Support in orientation programs for those distant to the labor market that allow for a direct contact with employment agencies and employers; Promote integration in the labor market of persons with disabilities and those who are in risk of social exclusion; Provide finance to SMEs, including start-ups in order to stimulate their competitiveness and job creation; Provide training and advice to commercial SMEs to help them improve their skills and business; Support SMEs in the Handicraft and Artisan Market to improve their competitiveness. PRESEVUSTENERALES DELA COMUNIDAD DE MAD PROGRAMAL 1211 MEMORIA DE PROGRAMA INDESTRIA DG DE INDUSTRIA, ENERGIA Y MINAS consumo La Dirección General de Industria, Energia y Minas tiene de la eficiencia energética, para reducir e ciu dedenos madrileños, consiguiende asi incrementa reducir muestre dependencia energética y coedyurar a le Uno de los instrumentos más destacados de esta poli que, además del ahorro de energía y le reducción de seguridad de las instalaciones y mentalizar los Gu importancia de la eficiende energétics. Desde el año 20 cabo aproximadamente 115.000 actuaciones, con lo acumulade cercano a 200.000 toneladas equivalentes e de emisiones cemara a un millón de taneladas de Coz Para 2019 se continuerà con los Planes Renove más re endrán algunos nuevos que están en fexe de estudio Fundación de la Energia de la Comunidad de Madrid, Otro de los objetivos básicas de la Discode Genera Comunidad de Madrid En este sentido, con el fin de co se considera necesario llevar a cabo actuadores en industriales, para incrementar la competitividad de las más atractivas a nuevos inversores, que buscan donde u En concreto, se considera que lo más adecuado, en ord utilización de los fondos disponibles, es actuar so industriales, lo que redundarà en una mejora de las cor actividad, y, por tanto, en una mejora de su competitivid En esta linea, se incentivará también la mejora de at medarte la sustitución de lámparas y luminar energéticamente y la instalación de reguladores de fiu incentivar el autoconsumo energético en las empres campos solares termicos y fotovoltaicas, y de plantas de Por otra parte, se apoyará la utilización de vehiculos combustibles fosiles convencionales. El impulso de esto movilidad más sosten ble En concreto, se apoyará la e recarga cuyo desplegue permisrácubrir las necesidade consumo de energia, reduciendo a la vez su nodencia c En 2019 se continuari, par tarto, con el fomento de para lograr un despliegue que permita la diversificacor PROGRAMA சேய்ஸ் MEMORIA DE PROGRAMA 43 ECONOMIA 11 DG.DE ECONOMÍA, ESTADISTICA 1 COMPETITIVIDAD Siguendo la directical marcada por el Cobierno de la Coma de Madrić, as consideran ajai prioritarios de la definitión de la Palities Feandmis fogonal lo pomacion y donelle sennamine y financiero vu precisa una rápida adotación a tranferencia mundar as nuevan circunstancies que permitan no soo evitar una perdida mundo emaresarial, para lo que se si incluso liderer el proceso de innevasión tecnológica la primera fase de este proceso de mejor de la competitividad empresarial se realiza a través de la realización de informes estudios e investigaciones que penian conccer tendencias en el comportamiento de la economic regional y de sus diferentes sectores, y, en corecuencia, permitan prever posities incas de actuación para las policas públicas en favor del tejido enpresetal y, en especial de las pequeño y medianas mpresas madrileña que siendo afectadas en su funcionamiento y vidad En al desa de estos intramentas bores de análise nunta con la permanente y activa colaboración de los angenismos y asociaciones representantes del tejido empresarial. Otro de los objetivos primordiales en materia de desarrollo económico es el apoyo a las politicas de mejora de la economa madrileña y de a sectores productivos, a traves del impubo competitividad y el empleo, por medio de la elaboración de planes y programas de actuación de vectores y colective Eneste mares y de acuerdo con lo competencies asgoederate Dirección General se establecen las lineas de actuación a fix de conseguir una actuación gefcas eficiente y próxima a las necesidades de la concia regional Por todo el en este ejercitio, se sigue apestando por el mayor conocimiento y anisis de la realidad económica de la región y por el impulso a la creación y desarrollo de nuevo tejido empresarial, entre les que cabe destacar los siguientes Ebonión de estem ber dieses antes estreligion y press relevantes de la economia, sea de forma directa, mediante trabajo intemo, sea a través de ipoyo externo a par medio de colaboraciones con mere organismos espacializados Divulgación y publicación de las actuaciones de apoyo a la actividad empresarial por parte do Dirección General Promoción del conocimiento de la realidad socioeconómica a través de diferentes foros, seminars y jornades sobre le economia y el empies en laregion, así como a través de diverses publicaciones As prospectiva dei entomo acondnice regional tanto an relación con el resto de ragiona mpañolascono con las principales regiones europeas Desamolo y promoción económica y financera cel tejido empresarial de Madrid con especial atención a las peme Apoyo y gestión del refinament de proyectos de inversión de pynes a través de v The support provided to Madrid's SMEs, will strengthen the competitiveness of SMEs and leading to the creation and preservation of jobs, and promote the integration of vulnerable people Source: Comunidad de Madrid 82 22#83Climate Change and Environmental Management Use of proceeds: Proceeds of the Sustainable Finance Instrument will be allocated to financing the measures to promote the sustainable mobility solutions, financing of activities related to the 'Waste Strategy of the Comunidad de Madrid' and to the management and restoration of Protected Natural Parks and other unique spaces with important conservation value ('Zonas de Especial Conservacion'). Eligible expenditures include: Clean Transportation • Development, extension, improvement, promotion and maintenance of public transport including metro, low-carbon buses (such as hybrid and electric buses), including new stations for electric buses only, rail-related infrastructure; Renewal of the most polluting fleets (replacing vehicles with lower emission vehicles); • Funding the installation of charging points for electric vehicles; Urban planning and development that leads to a reduction in the use of passenger cars. Waste Management • Measures to decrease the volume of waste generated; • Treatment of electrical and electronic equipment waste; • Programmes for new uses of recycled materials such as rubber from tires; • Development of research studies on contaminated soils and financing necessary measures to ensure decontamination of identified sites. Environmental conservation and biodiversity • Conservation and restorative activities such as: repair of damaged areas to reconstruct distorted natural habitats, ongoing maintenance in the form of tree, plant and wildlife care and management and fire protection; Educational activities and facilities to enhance awareness and knowledge of the importance of the National Parks and other environmental spaces in the Comunidad de Madrid, encouraging the environmental care by local residents and visitors; Monitoring and development of the Forestry Plan of the Comunidad de Madrid Comunidad de Madrid is heavily financing low carbon transportation and subsequently contributing to the reduction of greenhouse gas emissions in the Region Source: Comunidad de Madrid 83 83