This report on compensation policy for the Directors of Red Eléctrica Corporación, S.A. (“Red Eléctrica” or “the Company") has been prepared in accordance with the provisions of the Corporate Bylaws and the Board Regulations.

Red Eléctrica Corporation release its 2015 annual results and Strategic Plan 2014‐2019.

This preliminary report presents provisional statistical data regarding the behaviour of the Spanish electricity system in 2015.

This underground electrical interconnection is a pioneering project, the first of its class in the world, that will double the electricity exchange capacity between France and Spain, leading to greater security and stability in the two electricity systems.

International electricity interconnections are the set of lines and substations that allow the exchange of energy between neighbouring countries and generate a number of advantages in connected countries.

The posidonia oceanica meadows are seagrass colonies of great importance to biodiversity due to their rich flora and fauna. They are listed as a protected species of flora and a priority habitat for conservation within the European Union.

In 2002, the Council of Environment together with other organizations, launched a reintroduction project for the osprey. For over a decade, they have been reintroduced in total about 200 chickens from Finland, Scotland and Germany.

The Golden Eagle is one of the most endangered species of Galicia, there are signs that point to a historical regression. Therefore, for many years Red Eléctrica, along with the Regional Ministry of Rural Affairs of the Government of Galicia, has been participating on a project to boost the population of this species in collaboration with GREFA.

In 2014, electricity demand continued the downward trend experienced over recent years. However, it is worth noting that in 2014 the fall was lower than that recorded in 2013, indicating that consumption, unlike in previous years, has shown some signs of recovery. Specifi cally, the demand for electrical energy on the Spanish peninsula (which represents 94.3% of the national total) closed the year at 243,530 GWh, a fi gure 1.2% lower than that registered in 2013. After factoring in the eff ects of the seasonal and working patterns, the demand for electricity, mainly attributable to economic activity, showed a slight decrease of 0.1%, ompared to the fall of 2.2% experienced in 2013.