Letter by the Chairman

Thank you once again for reviewing this annual report which was prepared to provide our shareholders and the company with the key management milestones and challenges for 2024. We are aware of the obstacles our company faced, but, as you will see herein, I sincerely believe that we have managed to overcome them with foresight and strategy, and that Talgo has reached the point that will allow us to redefine it and make it stronger and more solvent, creating more value.

Now the proof of pace acceleration we are living is the signature of the first important contract in the history of liberalized international transport in Europe. In May, the German private company Flix, based in Munich, awarded us a contract for the supply of up to 65 high-speed trainsets which will be designed on Talgo 230 platform.

This Flix contract, together with the forthcoming commercial commissioning of projects for Deutsche Bahn and Danske Statsbaner - in Germany and Denmark, respectively - as well as other developments, will make the company a new benchmark, perhaps the first, for cross-border transport in the European Union.

In a few years, it will be common for travellers on the continent's most densely used rail systems to hop on and off Talgo trains from different operators connecting Germany with the Netherlands, Denmark, Austria and Sweden... and other destinations that may appear in this list in the near future.

This makes us a benchmark in modal change and energy transition on a continental scale, and reaffirms Talgo's status as a strategic company for Spain and the countries where we have industrial and where we operate by activating supply chains and supplier networks that are capable to fulfill our demanding specifications. We are a market reference in the design, manufacture and maintenance of trains with a unique technology, which is our hallmark and the result of more than 80 years of innovation.

2024 may go down in history for many reasons, but for us the main one is that it has been a success in many areas: financial, industrial and, above all, teamwork. Financially, we achieved revenues of 669 million euros, which is 2.6% more than in 2023, which was, let's not forget, an excellent year too.

We ended 2024 with an orders backlog exceeding 4,100 million euros. Our portfolio includes both, manufacture of new trains for different companies and their maintenance, with more than 80% of projects carried out internationally, proving our clear focus on foreign markets and reputation on a global scale.

Again we are demonstrating our capacity to execute large-scale projects in diverse and complex environments, and our skills and talent to develop customized solutions meeting the expectations of the world's most demanding customers. We are thus not only creating value for our shareholders but also, and above all, ensuring the generation of future returns.

In terms of human assets, 2024 has been extraordinary as well. In spite of some uncertainty, we have been able to grow stronger as an organization; we have seen that businesspeople, institutions, suppliers, customers, investors and, most important, our team of more than 3,500 professionals believe in Talgo, with the certainty that we will continue to make history for many years with our daily work, effort and enthusiasm.

Collaboration and support we have received, and the loyalty of this great team make me, as Chairman, very proud of every person forming part of Talgo and I have the certainty that we will continue making history for many years with our daily work, effort and enthusiasm.

Best regards,

Carlos Palacio Oriol, Chairman of the Board of Directors