INNOVATION, DIGITALIZATION AND TECHNOLOGY APPLIED TO THE BUSINESS

MDR-P: Policies

Ferrovial manages innovation programs and initiatives through a dedicated team, focused on areas such as open innovation, growth, asset management, carbon footprint management, and new business models. Each of these areas is managed in the investment portfolio through project managers and transversal program managers.

Currently, Ferrovial cannot disclose information about policies related to innovation at a global level, and therefore, such a policy has not been formalized in the company. We will evaluate the necessary scope to draft a global innovation policy that represents all the efforts already underway in the area of Innovation.

MDR-T: Targets

Establishment of measurable goals: The company plans to establish measurable goals oriented towards short- and medium-term results. Currently, key performance indicators (KPIs) and specific objectives for the entire portfolio of initiatives for 2025 are being defined. This effort is part of the ReadIT27 program, where specific goals have been defined at the program, workstream and initiative levels. Additionally, an impact model is being implemented to allow constant measurement and evaluation of the initiatives.

MDR-A: Actions

List of main actions taken and planned:

• IT Finance 24: In the notification year, a new operating model was created with the integration of functions and shared service centers in Finance and Human Resources, allowing for greater agility and efficiency. Notable initiatives include the digitization of invoices and expense reports, in collaboration with the Juan XXIII Foundation, and the automation of consolidation and budgeting using predictive technologies and artificial intelligence. For the future, the evolution of key non-financial indicators of the company (ESG) and greater integration and traceability of information are planned. These actions contribute to improving operational efficiency, complying with security standards and regulatory frameworks, and automating internal and external processes.
• Next Pass: This initiative has developed a digital touchpoint with users to expand digital services, starting in the S. and with the ambition to scale globally. The phases include initial research, opportunity identification, planning and validation, MVP development, and optimization of user acquisition and retention processes. In the future, optimizing the CAC index and expanding to Texas are planned. This initiative aims to create a direct relationship with users, improve the current offer, generate new business opportunities, and increase revenue.
• Pangea: A common and centralized data catalog has been created, necessary to become a “Data Driven Compan” Additionally, data-related roles have been implemented to comply with GDPR and SOX, and data domains have been standardized and reused. In the future, artificial intelligence models based on quality data will be developed, and the risk of fines for non-compliance with GDPR and SOX will be reduced. These actions improve data-driven decision-making, comply with regulations, and generate cost savings.

Scope of main actions:

• IT Finance 24: The coverage includes the digitization of invoices and the automation of reports and budgets, affecting both earlier and later phases of the value chain. Geographically, it is implemented globally with specific collaboration in Spain, and affects Finance and Human Resources employees, as well as the Juan XXIII Foundation.
• Next Pass: The initiative covers from initial research to optimization of user acquisition processes, starting in the S. and with planned global expansion. It affects highway users and digital and mobility partners.
• Pangea: The coverage includes the creation and management of a centralized data catalog, affecting all phases of the data lifecycle. It is implemented globally, complying with European and S. regulations, and affects Ferrovial employees, regulators, and technology partners.

Time horizons:

• IT Finance 24: The digitization of invoices and the automation of reports are carried out between 2023 and 2024.
• Next Pass: The research and planning phases were carried out in 2021, the MVP development and optimization between 2022 and 2024, and the expansion to Texas is planned for 2024.
• Pangea: The creation of the data catalog is carried out between 2023 and 2024, and the implementation of roles and regulatory compliance between 2023 and 2025.

Corrective measures for affected individuals:

• IT Finance 24: Collaboration with the Juan XXIII Foundation for the creation of employment for people with disabilities.
• Next Pass: Improved service offering and personalization based on user knowledge.
• Pangea: Data governance procedures have been implemented to protect sensitive information and comply with GDPR and SOX.

Quantitative and qualitative information on progress:

IT Finance 24: Progress has been made in the digitization of invoices and automation of reports, and positive results have been obtained from the collaboration with the Juan XXIII Foundation.

SBM-1 – MARKET POSITION, STRATEGY, BUSINESS MODEL(S) AND VALUE CHAIN

Ferrovial is in the midst of a digitalization process aimed at increasing competitiveness and transforming its business and operations. The Company aspires to be a leader in the use of data, technology, and innovation, focusing on generating value for its assets and defining its mission, approach, and objectives along these lines. Priority areas include asset digitalization & enhancement, new models, carbon management, open innovation, growth, the Ferrovial Lab, and several other programs within the digital business framework. During 2024 Ferrovial invested 70.6 million euros, to boosting digitalization in the businesses and for the development of innovative solutions in its infrastructures.

Ferrovial’s digitalization program, Digital Horizon 2024, has significantly advanced the Company’s transformation process, with the objective of making Ferrovial a company focused on asset digitalization.

With a view to the next cycle of investment in technology, digitalization, and innovation, Ferrovial designed a new program that builds on the achievements of Digital Horizon 2024 and was updated with a new forward-looking perspective. This program considers emerging technologies such as artificial intelligence, the migration of databases to the cloud, and maintains the focus on data, cybersecurity, digital products, process optimization and digitalization, and modern and updated technological infrastructure.

Moving forward, the new ReadIT 2027 program builds on these achievements and incorporates emerging technologies such as artificial intelligence, cloud migration, cybersecurity, digital products, process optimization, and a modern technological infrastructure. The ReadIT 2027 program aims to strengthen Ferrovial’s core business by focusing on automation, efficiency, competitiveness, agility, and data monetization while fostering a digital business culture.

This program introduces transformation vectors to guide digitalization:

• Decisions + Smart: Automation of reporting, AI-based product launches and identification of new business cases.
• Process + Digital: Process automation, expansion of process mining, and extension of the end-to-end digital portfolio to businesses.
• People + Agile: Industrialization of change management, user-centric products and effective adoption, digital training and digital corporate university, and new global IT and innovation operating model.
• Platforms + Scalable: Cloud transformation, obsolescence mitigation, enterprise architecture platform, and industrialization of the development lifecycle.

These transformation vectors aim to guide the organization to maximize value and managerial focus throughout the entire process of discovery, development and implementation of digitalization initiatives. A value-oriented culture enhances the investment committed to innovation and accelerates the delivery of results to all agents involved in Ferrovial’s digital transformation process.

Ferrovial’s Read IT 2027 strategy focuses on leveraging AI-driven digital transformation to enhance efficiency, risk management, competitiveness, and business diversification. To ensure the effectiveness of these initiatives, Ferrovial employs various tracking mechanisms, including AI-powered insights and self-service analytics for optimizing process performance and informing strategic decisions, cybersecurity frameworks and compliance measures  for risk mitigation and business continuity, standardized IT governance models like LeanIX and SAP Ariba, change agent networks and training programs to drive digital adoption, and ESG impact monitoring to integrate sustainability considerations into IT processes.

The strategy sets measurable, time-bound goals linked to sustainability and operational excellence, such as increased digitalization and automation, deployment of scalable AI solutions, enhancement of cybersecurity resilience, and strengthened ESG strategy. These targets are tracked using KPIs like the percentage of digitalized processes, average cybersecurity risk scores, and the percentage of ESG KPIs with automated management. Ferrovial continuously evaluates the strategy’s effectiveness through regular reporting, AI-driven process optimizations, cybersecurity risk tracking, and sustainability initiative evolution. Stakeholder involvement is crucial, with collaboration across business units, partnerships with technology providers, engagement with regulatory bodies, and feedback loops from employees and industry experts. Future developments include continuous performance monitoring, refining sustainability-focused initiatives, and further stakeholder involvement to ensure alignment with evolving ESG and digital transformation expectations. This structured approach ensures that Read IT 2027 aligns with Ferrovial’s broader corporate sustainability and business resilience goals while remaining adaptive to emerging challenges and opportunities.

The program is supported by value levers, from which the necessary capabilities are extracted to digitize the business (digital construction & digital concession) and the Company (digital corporation).

Ferrovial has established an Innovation Policy, which is currently applicable exclusively to Ferrovial Construction. This policy recognizes innovation as a key driver for achieving operational efficiency, risk reduction, and profitability. It follows an open and participatory innovation model aimed at meeting strategic objectives, creating tangible impacts, and fostering industry-wide advancements that benefit employees, collaborators, clients,   shareholders, and society.

The Innovation Policy is designed to:

• Promote innovation opportunities across all areas of activity within Ferrovial Construction.
• Develop and implement new products, operations, and technologies that enhance productivity, reduce risks, and create competitive advantages.
• Focus on sustainable innovation models that are environmentally friendly, economically viable, and socially inclusive.
• Encourage a culture of innovation based on communication, learning, participation, and recognition of contributors.

At present, this policy does not extend to all of Ferrovial’s business lines. However, the company acknowledges the strategic importance of innovation across its entire operations and plans to develop a comprehensive Innovation Policy in the coming years that will cover all business units.

SBM-2 INTEREST AND VIEWS OF STAKEHOLDERS

Ferrovial’s digitalization strategy extends beyond internal transformation and considers the interests of key stakeholders, including employees, customers, business partners, and regulatory bodies. The Company ensures that its digital business (associated with the direct digital transformation of the Toll Roads, Construction, Airports and Energy businesses) initiatives align with the needs of various stakeholders by enhancing operational efficiency, improving data-driven decision-making, and strengthening cybersecurity compliance in response to increasing regulatory demands.

The portfolio of initiatives was divided into strategic programs that include business platforms, asset management and digitalization of operations, exploration of new technologies and business lines, cost control optimization, ESG, new business growth and development, connected works, data solutions, smart highways and design of technical quoting solutions.

The Digital Corporation program ensures that corporate support areas such as Finance, Human Resources, Communications, Audit, Legal, Quality, Health and Safety benefit from digital transformation, improving service efficiency and transparency. Digital initiatives also align with the expectations of customers and regulatory authorities, particularly in cybersecurity, data management, and compliance.

Additionally, Digital Enablers facilitate collaboration across departments, ensuring that digital transformation supports business needs while maintaining operational resilience. Programs such as Artificial Intelligence and Journey to Cloud are structured to drive cross-functional innovation and provide digital solutions that meet stakeholder expectations. Furthermore, Ferrovial’s Venture Capital and Startup Engagement initiatives involve forming strategic agreements with industrial partners and emerging tech firms, ensuring continuous improvement and alignment with market innovations. The development of new investment theses is also planned to grow current businesses and create new business units.

Each cross-cutting program or practice has its specific objectives:

• Artificial Intelligence: Maximize the value of AI and GenAI in Ferrovial, improve employee experience and productivity, identify and explore new early-stage technologies, increase technological capabilities faster and industrialize the application of AI.
• Journey to Cloud: Migration of cross-cutting applications and corporate functions to the cloud, reducing dependence on physical platforms such as data centers, and taking advantage of the benefits of automation, scalability, data integration and acceleration of critical processes.
• Cyber: Comply with cybersecurity regulatory and customer and business unit requirements. Cyber security for all technology processes, assets and operations.
• Data: Promote data-driven decisions, systems integration, process automation and robust data platforms for AI. Develop workforce capabilities around data and analytics, and support the development of new digital products.
• Digital Products & Process Automation: Build capabilities and explore the evolution of a technology-agnostic approach for operational efficiency and new revenue streams. Develop user-centric initiatives and lead change management.
• IT Operations & Tech: Develop core technology services, IT monitoring and governance. Create development frameworks, upgrade obsolete software, and orchestrate systems migration for business continuity.

Research capabilities were also strengthened through agreements with leading academic institutions in innovation and digitalization. In the cultural area, we promote initiatives and programs for internal entrepreneurship, as well as obtaining public funding to complement internal resources in areas such as sustainability.

SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL

The rapid evolution of digital technologies presents both risks and opportunities for Ferrovial’s business model. While digital transformation enhances efficiency, competitiveness, and asset management, it also introduces challenges such as cybersecurity threats, data privacy risks, technological obsolescence, and the need for continuous investment in new capabilities.

Ferrovial’s ReadIT 2027 program is structured to mitigate these risks through cybersecurity measures, data integration strategies, and cloud migration efforts. The Cybersecurity Program ensures compliance with evolving regulatory frameworks and customer security requirements, minimizing the risk of data breaches and system vulnerabilities.

Moreover, the Data Program promotes data-driven decision-making, automation, and AI adoption, reducing inefficiencies and enhancing operational resilience. The Digital Products & Process Automation initiative is designed to streamline workflows and unlock new revenue opportunities while ensuring a structured governance model for proof-of-concept development and scaling.

The Cross-Cutting Innovation initiative plays a key role in identifying and mitigating risks associated with technology disruption and emerging market trends. By engaging with startups and venture capital partners in fields such as robotics, digital twins, and virtual reality, Ferrovial ensures that it remains at the forefront of industry innovation.

Lastly, investment in AI-driven projects (€2M) reflects Ferrovial’s commitment to leveraging machine learning and automation to drive operational efficiency and competitiveness. The governance framework supporting AI initiatives ensures structured innovation management, reducing risks associated with rapid technological adoption and ensuring sustainable, long-term integration within Ferrovial’s business model.

IRO Management

Ferrovial established a structured process to identify and assess material Impacts, Risks, and Opportunities (IROs), in line with its Risk Control and Management Policy. This process, known as Ferrovial Risk Management (FRM), is implemented across all business areas and is periodically supervised by the Audit and Control Committee of the Board of Directors.

IRO Identification and Assessment Process:

• Risk Event Identification: The FRM process is conducted twice a year and enables the early identification of risk events that could impact business objectives, including corporate reputation.
• Risk Assessment: Each identified risk is evaluated based on its likelihood of occurrence and potential impact. Two types of assessments are performed:

Inherent Assessment: Before applying specific control measures. Residual Assessment: After implementing mitigation measures.

Prioritization and Mitigation: Risks with the highest risk assessments are prioritized for appropriate mitigation measures based on their nature, while also leveraging opportunities arising from effective risk management.

Innovation-Related IROs Identified by the Company:

• Innovation Generation in Society: Through the creation of research centers and the development of collaborations and partnerships.
• Improvement of the Environmental Impact of Projects: Implementing new technologies in processes and digital management tools to quantify their impact.
• Promotion of an Innovative and Digital Culture: Encouraging continuous improvement and a more employee-friendly work environment.
• Enhanced Safety in Projects: Promoting innovation and digitalization to reduce accidents and occupational risks.
• Challenges in Machinery Maintenance and Replacement: Adapting to new technologies.
• Impact on the Workforce Due to the Technological Gap: Resulting from digital transformation.
• Workforce Reduction Due to Automation: And the integration of new technologies.
• Implementation of New Technologies for a More Resilient Asset Portfolio.
• Identification of New Low-Emission Technology-Based Businesses: Such as photovoltaic plants, nuclear SMRs, offshore wind energy, etc.
• Operational Vulnerability Due to Service Disruptions: Resulting from exposure to natural disasters.
• Potential Sanctions and Reputational Loss Due to Regulatory Non-Compliance in AI-Related Matters.

These IROs reflect Ferrovial’s commitment to innovation and adaptation to current technological and environmental trends.

Ferrovial discloses information about its risk management process and identified IROs, providing details on its Risk Control and Management Policy, the FRM process, and the oversight carried out by the Board of Directors and the Audit and Control Committee.