30 |2020 Sustainability Report |Aqualia’s horizon 2020 Change of Official declaration of government in the global pandemic Economic and legal context Spain due to COVID-19 Service inmunicipalities 600 Economic Extensions and renewals represent a backlog According to the DBK sector report for the water of €338,000 Million, close to 100%. distribution sectors, there is expected to be strong pressure on profitability: • Companies in the sector are facing a growing need for investment as a result of environmental requirements and the processes for digital transformation and adaptation to new technologies. Invoicing €784.32 Million• A concentration of income and higher operating costs due to the health crisis. in Spain -2.49%compared to 2019 The development of technological innovations took on special significance, both for the proper maintenance of the network, and for the improvement of relationships with clients. The protection of disadvantaged groups is also a priority, as a result of which several companies have announced a freeze in tariffs in 2021. Efficient Reinforcement in the reduction operational of variable costs (energy and Legislation water purchase) to reduce the management drop in margins linked to the drop inconsumption due to the pandemic. Major developments in legislation are envisaged by Spain's Ministry of Ecological Transition and Demographic Challenge: This has made it possible to maintain • Preparation of the Green Water Book • Approval of the 2020-2030 Climate Change EBITDA ratios • Approval of the 2020-2030 Energy and Climate PlanAdaptation Plan • Submission to public information of the Water Treatment and Re-use Plan • The Urban Water Cycle Committee was convened, with 2021 the presence of the Ministry, Business Associations, Trade Unions and Users, as the basis for a future Spanish Urban Water Observatory. • Suspension of the application of the Budget Stability Law in 2021 and 2022, which will enable municipalities with cash surpluses to allocate the surpluses to making With regard to the Recovery, Transformation and investments. This will speed up investments in the Resilience Plan (Spain), sponsored with European hydraulic field. Funds, transversal proposals with the collaboration of public-private figuresare being developed A Contingency Plan was also established to minimise any (digitalisation and energy efficiency) as well as local and financial and non-financial impact that may arise from regional proposals, which will be presented in the first this crisis. half of 2021. An amendment to the current Sector Agreement (2018- 2022), was signed with the Trade Unions, to set the wage increase in 2021 at 1.5%, halving that initially envisaged in the Agreement, given the extraordinary situation we are going through.