STRATEGIC PLAN 2010-14 PRESENTATION CONTENTS

Why a new Strategic Plan?...

New Context, New Challenges, Ambitious Answers

Wrap-up

Q&A

2 STRATEGIC PLAN 2010-14 PRESENTATION WHY A NEW STRATEGIC PLAN?...

… because Soares da Costa has moved forward…

• Since the presentation of 2007-12 “Sustainable Ambition” plan, SDC’s profile has changed significantly, with a considerable investment in the transport concessions business and becoming increasingly more international, entering in new markets • We would highlight some details of the 2007-12 strategic plan:

With the domestic market with On geographical diversification: “Three core markets with a gloomier than ever prospects, physical presence founded on construction – , now is the time for choosing a and the USA (Florida) – complemented by a new new platform platform for growth to be selected in the next few years” Still makes some sense the On the concession business: “Prepare the ground for diversification, although the deep diversification/deepening of concessions from 2010 onwards, changes in the financial markets developing competences in: infrastructure management lead to the need of a new model services – motorways / buildings, renewable energy sources” of investment/ partnerships

On dividend policy: “(...) will enable dividends distribution Which has been achieved in spite from 2009 onwards” of the investment programme

3 STRATEGIC PLAN 2010-14 PRESENTATION WHY A NEW STRATEGIC PLAN?...

… because Soares da Costa has moved forward…

• SDC has experienced a significant growth, both in terms of turnover and EBITDA

TURNOVER EBITDA CAGR CAGR

14.0%% 18.9%% 936 86 90 835

57 25.6% 8.2% 54 53 55 554 562 551 570 45 529 CONSTRUCTION 37 22 36 322 & OTHERS OTHERS 416 367 1) 1) 1) 33 35 11.1% 27.6% CONCESSIONS 23 18 20 305 366 ANGOLA 195 228 138 20051) 20061) 20071) 2008 2009

2005 2006 2007 2008 2009 EBITDA MG 4% 6% 7% 10% 9%

EBITDA MG 90% 83% 80% 69% 62% CONCESSIONS

1) Equivalent integration of 20% of Scutvias

4 STRATEGIC PLAN 2010-14 PRESENTATION WHY A NEW STRATEGIC PLAN?...

… because Soares da Costa has moved forward…

• ROCE has been improving since 2007, almost reaching 5.0%, although still slightly below the 5.5-6.5% defined as target

NET INCOME ROCE

6.6%

12.0 11.5 4.8% Average = 4.7%

8.2 4.6% 4.2% 5.8

1.3%

0.4

2005 2006 2007 2008 2009 2005 2006 2007 2008 2009

5 STRATEGIC PLAN 2010-14 PRESENTATION WHY A NEW STRATEGIC PLAN?...

… because Soares da Costa has moved forward…

• Given SDC’s good evolution, “Sustainable Ambition” plan targets become less challenging: in 2009 the group’s performance not only surpassed that year’s target but also got very close the 2010’s planned figures

TURNOVER EBITDA

Margin 9.9% 9.0% 10.7% 11.9% 1,039 124 936 932 99 801 +17% 90 79 +13%

2009 2009 2010 E 2012 E 2009 2009 2010 E 2012 E Plan Real Plan Plan Real Plan

6 STRATEGIC PLAN 2010-14 PRESENTATION WHY A NEW STRATEGIC PLAN?...

… because Soares da Costa has moved forward…

• Though some challenges exist:

LARGEST IBERIAN CONSTRUCTION INTERNATIONAL TURNOVER (%) MAIN NON-DOMESTIC MARKET (%) GROUPS’ INTERNATIONALISATION Market 26% n.a. PROFILE (2009) n.a. 44% 36% Europe SDC has a high internationalization level, 65% 55% Europe surpassing the sector’s benchmark, 24% 14% Europe though geographical portfolio could be 19% 14% Europe more balanced, with a lower degree of East Europe dependence Angolan market 59% 12% 29% 14% East europe

61% 51% Africa

48% 38% Africa

44% 27% Africa

20% 14% Europe (Spain) 40%

Source: Companies’ reports, Roland Berger Strategy Consultants

7 STRATEGIC PLAN 2010-14 PRESENTATION WHY A NEW STRATEGIC PLAN?...

… because Soares da Costa has moved forward…

• Though some challenges exist:

LARGEST IBERIAN CONSTRUCTION GROUPS’ TURNOVER NON EBITDA NON BUSINESS DIVERSIFICATION PROFILE (2009) CONSTRUCTION (%) CONSTRUCTION (%)

SDC has achieved some diversification of its 61% 69% business with the transport concession segment, 43% 72% though, compared with its peers, non- 63% 91% construction segment contribution could be more significant 45% 80% 55% 61%

22% 63%

21% 56% 45% 69% 12% 40% 19% 71%

Source: Companies’ reports, Roland Berger Strategy Consultants 39% 67%

8 STRATEGIC PLAN 2010-14 PRESENTATION WHY A NEW STRATEGIC PLAN?...

… because Soares da Costa has moved forward…

• Though some challenges exist: LARGEST IBERIAN CONSTRUCTION NET DEBT TO EBITDA (2009)

Growth path and market 10.6 9.5 conditions (namely in terms of 8.8 7.5 7.5 working capital needs) has led to 7.0 6.4 7.5 a increase in the indebtness level, 5.2 with a deterioration of the net 4.6 debt to EBITDA ratio. Recourse net debt to EBITDA ratio is significantly above its peers

LARGEST IBERIAN CONSTRUCTION RECOURSE NET DEBT TO EBITDA (2008) 8.1x (2009) 7.3 6.9

5.5 Average: 4.4x 3.7 2.7 2.3 2.0

Source: Companies’ reports, Roland Berger Strategy Consultants

9 STRATEGIC PLAN 2010-14 PRESENTATION WHY A NEW STRATEGIC PLAN?...

… because the world has changed…

MAIN CHANGES IN THE CONSTRUCTION SECTOR

ACTIVITY / OPERATIONAL FINANCING • Strong slowdown of the Iberian • Maior dificuldade no acesso a construction market, with very pressured financiamento, restringindo por exemplo margins and weak recovery prospects. investimentos em negócios mais intensivos Government budget restrains have led to em capital. severe cuts in the infrastructure plans. • Increasing spreads for the same level of nd Private/ residential investment (2 risk. housing, etc) has also suffered a decline. • Pressure over the construction • Growth opportunities concentrated in companies to reduce their indebtness Latin America and African countries with level, namely via assets’ alienation/ sale. very positive outlook in terms of investment in construction and • Increase in the number of investment infrastructures. funds acquiring the construction company’s stakes in infrastructures • In mature markets, the new concessions concessions. return are on the limit of value creation.

10 STRATEGIC PLAN 2010-14 PRESENTATION WHY A NEW STRATEGIC PLAN?...

… because the world has changed…

MAIN CHANGES IN THE CONSTRUCTION SECTOR

PORTUGUESE CONSTRUCTION OUTPUT EVOLUTION (2000-12E, € bn, base 100)

100.0 100.3 Base 100 93.0 91.3 90.8 85.9 85.5 Previous 85.0 Estimate 31,3 80.0 30,7 30,7 75.2 76.0 28,5 28,0 27,8 69.0 26,3 26,2 Public Works 7,5 8,1 7,9 26,1 65.9 Financial crisis 23,6 62.5 7,5 7,8 7,4 impact estimate 6,9 6,9 21,3 7,1 20,2 Non 19,2 Residential 5.8 6.2 6.6 7,3 6.8 6.5 6.0 7,4 5.8 6.1 6,4 7,0 6,7 6.3 6.1 5.8 5.5 Residential 17.3 17.1 16.3 14.2 13.7 14.4 13.6 13.2 12.6 10.0 7.8 7.4 7.1

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E

Source: Euroconstruct; Roland Berger Strategy Consultants 11 STRATEGIC PLAN 2010-14 PRESENTATION WHY A NEW STRATEGIC PLAN?...

So WHY A NEW STRATEGIC PLAN?...

.... BECAUSE SOARES DA COSTA MUST ANSWER TO NEW QUESTIONS:

1. How to continue in a sustainable growth path, but defending and even improving profitability and shareholders' remuneration?

2. How to continue to have access to the necessary financing that allow the company to invest in the current financial markets context?

12 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

SEEKING FOR GROWTH AND PROFITABILITY… 5 MAIN CHALLENGES:

• Very weak domestic construction and transport concession markets prospects

• Angolan construction sector growth pace slowdown, with increasing margin pressure (although still above the margins achieved domestically)

• Attractive growth prospects in the construction market only in emergent countries, namely in some Latin American and African countries

• Attractive growth prospects in some segments of the US market, namely in the PPP and in the renewable energy segments

• More restrictive and expensive financing with a growing pressure to reduce indebtness levels and improve return on capital

13 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

SDC’s ANSWERS take the form of a NEW STRATEGIC PLAN

• Very weak domestic construction and 1. Diversify to the Environment and concession markets prospects Renewable Energy sectors

• Angolan construction sector growth 2. Enter the Brazilian construction market pace slowdown, increasing margin pressure but opportunities in other segments 3. Open SDC Angola’s capital to a local partner, reducing exposure to the Angolan construction, diversify to other segments • Attractive growth prospects in the construction market only in emergent countries 4. Increase exposure to the US market: construction, PPPs, renewable energy • Attractive growth prospects in some segments of the US market, namely in 5. Explore construction and concessions the PPP and in the renewable energy opportunities in other countries (other segments African countries, Latam countries)

• More restrictive and expensive 6. Alienate non core and/ or mature assets financing

14 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

1. Diversify to the Environment and Renewable Energy sectors DIVERSIFICATION SECTORIAL 2. Enter the Brazilian 3. Open SDC Angola’s capital to a construction market local partner, reducing exposure to the Angolan construction, diversify to other segments GEOGRAPHICAL GEOGRAPHICAL DIVERSIFICATION 4. Increase exposure to the 5. Explore construction and US market: construction, concessions opportunities in PPPs, renewable energy other countries

6. Alienate non core and/ or mature assets

MAIN GOALS: Sustainable Growth | Improve Profitability | Reduce Indebtness Level

15 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

1. Diversify to the Environment and Renewable Energy sectors

Why enter in these sectors? The Renewables, waste and water have a ... and continue to be attractive both in positive profitability track record and... terms of profitability and growth prospects

20 + WIND (SUPPLIER) 19 WIND (SUPPLIER) Trend WIND 18 (PRODUCER) 17 WIND (PRODUCER) WASTE 16 08; %) 08; WASTE 15 INDUSTRIAL WATER SOLAR 2005 - 14 ENGINEERING 13 ELECTRICITY RETURN Trend TRANSPORT WATER Profitability average 12 SOLAR ELECTRICITY TRANSPORT 11 Trend FACILITIES MANAGEMENT ROCE ( 10 INDUSTRIAL (FM) ENGINEERING 9 LOGISTICS Trend LOGISTICS 8 0 5 10 15 20 25 30 35 40 45 50 GROWTH POTENTIAL + Margins Capital Intensity: EBITDA margin (average 2005-08;%) Source: Roland Berger Strategy Consultants Low Medium High Trend 16 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

1. Diversify to the Environment and Renewable Energy sectors

In specific, the renewable energy sector should have a positive growth trend even in the long run... 8,000 ... ESTIMATED EVOLUTION Solar CAGR 07-30 OF RENEWABLE ENERGY Biomass Total 3% Wind 6.592 PRODUCTION Hydro 11% (2007-30, TWh) 6,000 5% 5.079

4.297 10% 4,000

3.067

2,000 2%

0 2007 2015 2020 2030 Source: WEO 2009; Roland Berger Strategy Consultants

17 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

1. Diversify to the Environment and Renewable Energy sectors

• Entrance: Gain skills through partnerships and small acquisitions • Growth: Gradual and progressive organic growth • ENVIRONMENT:  Estimated investment 2010-14 between € 45-55mn (exc. acquisitions)  Waste treatment segment  Target markets: Portugal, Angola, • RENEWABLE ENERGY: Estimated investment 2010-14 between € 20-30mn (exc. acquisitions) Construction and exploitation of mini hydro facilities and engineering works and services related with the renewable energy sector (energy efficiency auditing and certification services, turn key energy units installation, residential energy units installation, etc) Target markets: Europe, Africa, US,

• 19% of consolidated EBITDA by 2014

18 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

2. Enter the Brazilian construction market

• Why enter in the Brazilian construction market?

 Favourable macroeconomic and infrastructure investment outlook: above average GDP growth, continuous growth in private sector investment, significant expansion of infrastructures underway or in plan, with several key projects being concluded in the next years. Both construction investment and economic growth will further benefit from two main events, Football World Cup in 2014 and Olympic Games in 2016.

Brazilian infrastructure investments rank 10th worldwide, with significant investment effort being done since 2005 (totalling BRL 510/ €230 bn) and BRL 773/ €350 bn planned for the period 2010-13. Investment package focus on oil & gas, sewage, railways, road transportation and ports.

The fragmented nature of the Brazilian construction market below the 8 largest construction companies, creates interesting opportunities, existing a group of construction companies of medium/ small dimension (turnover below €300mn/ €150mn) but with margins' above the group's consolidated margin.

19 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

2. Enter the Brazilian construction market

Very good prospects even looking at the long run… …INFRASTRUCTURE AND CONSTRUCTION INVESTMENT IN BRAZIL 2010-2030 (€ bn)

2,960 768 354 16 Airports 24 Light Railways 44 Ports 1,068

58 Railway

Of which €102mn in 102 Motorways and Roads 1,124 dams

770 ENERGY

110 Sewage 354 OTHER

Total Residential Non Residential Infrastructures OTHER Construction Construction Source: CNT, ANEEL, ANTT, ANAC, Infraero, Ministério das Cidades; Roland Berger Strategy Consultants

20 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

2. Enter the Brazilian construction market

BRAZILIAN CONSTRUCTION COMPANIES (LARGEST 150 by turnover in 2008)

Total Turnover (€ bn) 42 6,4 37

13 8 3,3 # of companies 2,6

1,2 0,7

Turnover (€ mn) > 300 150 a 300 50 a 150 20 a 50 < 20

Average Turnover 0,8 0,2 0,09 0,03 0,01 (€mn) Average EBITDA margin 9% 11% 12%

Source: Ranking 2009 in Especialised Magazines; Roland Berger Strategy Consultants

21 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

2. Enter the Brazilian construction market

• Main Goal: Decrease the group’s dependency from the Angolan construction market, but continuing to operate in a market with good growth prospects and attractive margins; geographical diversification on SDC’s activity

• Entrance: Gradual with a relatively small acquisition and/or constitution of a company with a local partner

• Focus on: Construction companies of medium dimension and attractive margins

• Later diversify to waste treatment and concessions markets

• SDC Brazil should become the centre of the group’s activity in Latin America

• Estimated investment 2010-14 between of € 110-130mn

• 25% of consolidated EBITDA by 2014

22 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

3. Open SDC Angola’s capital to a local partner, reducing exposure to the Angolan construction, diversify to other segments

• Find a LOCAL PARTNER to SDC’s activity in Angola, which should enter (with a minority stake) in the capital of the company

Two main goals:

1. Reduce exposure to the Angolan construction market, decreasing SDC’s operational risk and assets assigned to this operation

2. Reinforce SDC’s skills to enter new segments/ sectors in Angola, which will allow the group to minimize the construction activity margin pressure and to keep growth pace

23 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

3. Open SDC Angola’s capital to a local partner, reducing exposure to the Angolan construction, diversify to other segments

3 AXIS OF DIVERSIFICATION A GEOGRAPHY • Strong business’s concentration in Luanda region • Growth opportunities by expansion to other regions with high growth potential A B TYPE OF WORKS • Currently focused on the residential buildings and GEOGRAPHY offices market • Diversification to infrastructures gives further growth opportunities DIVERSIFICATION IN ANGOLA B C C BUSINESSES • Diversification to high growth potential sectors in TYPE OF BUSINESSES Angola, namely: WORKS • Sectors directly linked with the construction • Sectors complementary to the construction • New business/ sectors, in line with the Strategic Plan priorities

24 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

3. Open SDC Angola’s capital to a local partner, reducing exposure to the Angolan construction, diversify to other segments

• Expand construction activity outside Luanda area. The group believes there are a set of regions in Angola which are attractive to the group’s geographical diversification in the country, decreasing its activity in the more mature, saturated areas

• Expand construction activity to the infra-structures segment, a segment with €3bn of public investment planned for the period of 2008-12 (roads, railways, airports, ports, electric grid and sewage), which creates a significant range of opportunities, as SDC is currently focused on the residential and office buildings construction

• Enter new sectors: waste treatment and building materials Building materials estimated investment: between € 45-55mn up to 2014 9.5% of consolidated EBITDA by 2014, being expected the first contribution in 2011.

• 57% of consolidated EBITDA by 2014 (full consolidation of activity in Angola) 25 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

4. Increase exposure to the US market: construction, PPPs, Renewables

• Mature construction market, with margins below the group’s consolidated figure BUT

With reasonable growth prospects, namely in the PPPs segment and in the renewable energy sector

And very positive contribution to the group’s working capital management

• On the Renewable energy sector:

“The Recovery Act [of 2009] constituted an unprecedented and historic investment in the clean energy economy. Investments in the development of renewable energy and clean technologies will lead to the energy sources of the future. (…) The American Recovery and Reinvestment Act included more than $80 billion in the generation of renewable energy sources, expanding manufacturing capacity for clean energy technology, advancing vehicle and fuel technologies, and building a bigger, better, smarter electric grid, all while creating new, sustainable jobs. (Source: www.whitehouse.gov) “The American Recovery and Reinvestment Act (…) awarded the Office of Energy Efficiency (EERE) $16.8 billion for its programs and initiatives” (Source: US Department of Energy – Energy Efficiency and & Renewable Energy)

26 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

4. Increase exposure to the US market: construction, PPPs, Renewables

• On the PPP segment:

“President Obama used a Labor Day speech to unveil a far-reaching plan to upgrade the nation’s intermodal transportation infrastructure. (…) Administration documents show a two-part approach that includes: an up-front $50 billion investment in roads, railways and other transportation improvements; and a long-term vision focused on reform and improved system performance. (…) Over the next six years, the Administration’s goal is to “rebuild 150,000 miles of roads,” “construct and maintain 4,000 miles of rail,” and “rehabilitate 150 miles of runway; The Administration’s priorities for the multi-year bill are: establishing an infrastructure bank for large/intermodal projects; elevating high speed rail to an equal surface transportation priority; instituting performance measurement; and increasing investments in safety, environmental sustainability, economic competitiveness and livability. (Source: ARTBA (American Road & Transportation Builders Association) Washington Update for September 7, 2010)

27 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

4. Increase exposure to the US market: construction, PPPs, Renewables

• Growth strategy:

Organic growth in both the construction and concessions businesses, leveraging on the group’s competences and track record in the concessions and on Prince’s local presence in the construction market

Ongoing geographical expansion to Florida’s neighborhood states: Georgia, North Carolina and South Carolina, chosen based on its attractiveness in terms of size, expected growth and public investments planned

Estimated investment 2010-14 between € 20-26mn

• 9% of consolidated EBITDA by 2014

28 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

5. Explore opportunities in construction and concessions activity in other countries

• Explore punctual, commercial opportunities in non-traditional countries with high growth potential and attractive margins, like Argelia, Libya, Mexico, Middle East and others

• Continue to seek for opportunities in the international transport concession market, namely in the railway, light railway but also motorways (still the bulk of the public investments, although it is expected the railway and light rail investments to become increasingly more relevant, namely the high speed rail)

SDC currently targets IRR’s between 10% and 12% in new concessions

• SDC has valuable skills and track record in the railway sector, which should be reinforced by its participation in ELOS, the concessionaire of a stretch of the Lisbon-Madrid HSR link

• Growth in non-traditional markets should be based on the construction activity, though, when possible, supported by infrastructure concession projects

• Turnover coming from international markets > 70% of consolidated turnover by 2014

29 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

5. Explore opportunities in construction and concessions activity in other countries

• Globally, there are a wide range of infrastructure needs, namely in emergent countries:

TRANSPORT INFRASTRUCTURES – QUALITY INDEX MATRIX GDP Change 12 (04-08; %) 11 China Argentina 10 Germany UAE 9 Kazakhstan India 8 Austria Romania 7 Netherlands Belgium 6 Czech Rep. Sweden Poland Chile Canada 5 Ireland Finland 4 Norway Australia Brazil Mexico France 3 Hungary UK 2 Spain Japan US Switzerland 1 Portugal Denmark 0 2.2 2.4 2.6 2.8 3.0 3.2 3.4 3.6 3.8 4.0 4.2 4.4 4.6 4.8 5.0 5.2 5.4 5.6 5.8 6.0 6.2 6.4 6.6 6.8 7.0

Size proportional to 2008’s GDP (USD bn) 1) According to the World Economic Forum (1- Highly deficient; 7-Reasonable in extension and efficiency)

30 Source: Economist Intelligent Unit; Euroconstruct; Business Monitor International; World Economic Forum; Roland Berger Strategy Consultants STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

5. Explore opportunities in construction and concessions activity in other countries

• Although, in general, transport infrastructure have been focused on motorways/ roads, the railway segment is expected to have a very dynamic evolution in the coming years WORLDWIDE RAILWAY EVOLUTION (2005-17; 2014-16; €bn) BY REGION BY TYPE BY PRODUCT 154 154 154 6 12 14 7 8 123 America (others) 123 10 12 123 29 4 18 HighSpeed Rail 6 Africa / Middle East Control 11 5 Light Railway 7 East Europe 8 27 Underground 10 Infrastructure 22 CIS 14 46 NAFTA 24 Rolling stock 37 42 122 Asia Pacific 30 Rail (pax/ cargo) 100

65 Services 53 West Europe 38 44

2005-07 2014-16 2005-07 2014-16 2005-07 2014-16 Source: Roland Berger Strategy Consultants 31 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

5. Explore opportunities in construction and concessions activity in other countries

• In spite of the opportunistic presence in several countries, with the entrance in the Brazilian market, SDC’s business development will have four permanent geographical platforms:

EUROPA AFRICA NORTH LATIN (PORTUGAL) AMERICA AMERICA

• Maintain current • Expand activity to • Organic growth in • Enter in the geographical other sectors in Angola the construction Brazilian construction footprint (building materials, market market waste treatment) • Enter in new • Participate in PPP • Enter in the waste concessions • Opportunistic projects treatment and presence in other concessions sectors (transport and • Enter in renewable African countries others) energy sector • Enter in other construction Latam countries

32 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

6. Alienate non core and/ or mature assets

• Alienate/ sale of: Assets with limited upside potential, in mature segments Assets in non-core areas

• Planned disinvestments are key to: (i) the group’s Strategic Plan 2010-14’s financing and (ii) the group’s indebtness level reduction

• Planned sales highlight a new dynamic of investment in the concessions market: Invest with financial partners, taking into consideration the possibility of sale of SDC’s stake in the concession when entering in the maturity phase Target concessions with an IRR between 10% and 12%

• Disinvestments are expected to total between €150mn and €170mn

33 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

STRATEGIC PLAN 2010-14 | MAIN GOALS:

• The plan estimates a significant growth of the group’s consolidated turnover: +70% between 2009 and 2014, reaching €1,590mn, corresponding to a CAGR 10-14 of 11%, while EBITDA should increase +50% in the same period, reaching €135mn, a CAGR 10-14 of 9%

• Activity should become less dependent from the construction with the rowth entrance in other businesses, like environment & renewable energy: non G construction EBITDA (equivalent) should represent 50% by 2014 from 40% (2009)

Activity should become even less dependent from the domestic market and ustainable •

S less dependent from the Angolan market: more than 70% of turnover from international markets by 2014 from 53% in 2009. Africa’s activity weight in the equivalent EBITDA should decrease to 45% by 2014 from 53%, with South America and the US operations gaining importance

34 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

STRATEGIC PLAN 2010-14 | MAIN GOALS:

• EBITDA should increase 50% up to 2014, reaching €135mn, a CAGR 2010-14 of 9%

• EBITDA margin should reach 8.5%, improving from the comparable 6.0% achieved in 2009. Improvement of the construction’s profitability with the exposure to other markets, and the entrance in the environment and energy sectors will be key. Furthermore, the group is implementing an operational rofitability costs optimisation programme, which should also be an important contributor P to the profitability improvement: adjustments in the domestic operations to reflect the market’s downsizing, optimisation of the holding costs, etc. mprove mprove I • ROCE should improve to > 6.0% by 2014 from 4.8% in 2009

• The plan implementation should represent a significant increase in the group’s valuation and of its results, allowing a €60mn cumulated dividend distribution up to 2014

35 STRATEGIC PLAN 2010-14 PRESENTATION NEW CONTEXT, NEW CHALLENGES, AMBITIOUS ANSWERS

STRATEGIC PLAN 2010-14 | MAIN GOALS:

• In spite of the investment planned for the coming years, the reduction of the group’s indebtness level is a crucial goal of the Strategic Plan

• Cumulated investment 2010-14 should reach €300-370mn (capex + equity evel

L investments in the concessions business), with a peak in 2012 and 2014

• Recourse net debt to EBITDA ratio should stand below 3.0x in 2014 from 8.1x in 2009, though still deteriorating in 2010 due to the investment being done in the

ndebtness new sectors and the equity injections in Transmontana motorway concession I

• In spite of the striving investment plan, by 2014, the group’s total net debt educe educe should stand at around €720mn, 3% below the 1H10’s figure R

36 STRATEGIC PLAN 2010-14 PRESENTATION WRAP-UP

Why A • SDC’s management has now revised its 2007-12 “Sustainable Ambition” New plan, originating a new strategic plan, with “Renewed Ambitions” that define Strategic the group’s route up to 2014 Plan? • This revision reflects not only the significant and positive evolution experienced by the group’s business profile but also the changes (in some cases severe) that happened in the economic context, in general, and more specifically in the construction and concessions market

New New Context, New Challenges Ambitious Answers Context, New Strong slowdown of the 1. Diversify to the Goal 2014: Challenges, construction activity in mature Environment and 19% of Ambitious markets, where concessions‘ Renewable Energy consolidated Answers attractiveness is also lower, sectors EBITDA higher growth and profitability prospects in other sectors, as environment & energy

37 STRATEGIC PLAN 2010-14 PRESENTATION WRAP-UP

New New Context, New Challenges Ambitious Answers Context, New Good growth and profitability 2. Enter the Brazilian Goal 2014: Challenges, prospects of Latin America construction market 25% of Ambitious construction markets consolidated Answers EBITDA

Minimize future margin 3. Open SDC Angola’s Goal 2014: pressure anticipating a capital to a local partner, 57% of geographical and sector diversify to other sectors consolidated diversification movement EBITDA

Reasonable growth prospects 4. Increase exposure to Goal 2014: in the construction and PPPs the US market: 9% of market in the US, with very low construction, PPPs, consolidated operational risk Renewables EBITDA

38 STRATEGIC PLAN 2010-14 PRESENTATION WRAP-UP

New New Context, New Challenges Ambitious Answers Context, New Good and profitable 5. Explore opportunities Goal 2014: Challenges, construction and concessions in construction and >70% turnover Ambitious opportunities in non traditional concessions activity in from Answers markets, global demand other countries international markets

Financial and credit markets 6. Alienate non core Goal 2014: total increasing restrictions and and/ or mature assets disinvestments growing pressure to reduce between € 150- indebtness levels €170mn

39 STRATEGIC PLAN 2010-14 PRESENTATION WRAP-UP

Strategic Turnover (€ mn) EBITDA (€ mn) and EBITDA margin Plan Main 2,000 1,590 140 14% Targets 1,500 120 12% 100 10% 936 80 8% 1,000 8.5% 60 6% 6.0% 40 4% 500 20 2% 0 0% 0 2009 2014 E 2009 2014 E

ROCE Rec. Net debt / EBITDA Cumulated Dividends (€mn) 7.0% 10.0 70 6.1% 60 6.0% 8.1 60 4.8% 8.0 5.0% 50 4.0% 6.0 40 3.0% 30 4.0 2.9 2.0% 20 15 2.0 1.0% 10 0.0% 0.0 0 2009 2014 E 2009 2014 E 2007-2009 2010-2014 E

40 STRATEGIC PLAN 2010-14 PRESENTATION IMPLEMENTATION ALREADY STARTED…

Strategic 1. Diversify to the Environment and Renewable Energy sectors Plan • Constituted SDC Hidroenergia, that as a 75%-25% partnership to participate in Implemen several mini hydro bids in Portugal tation • Concession contract for 16 mini hydro totalling 6.7MW in S. Tomé & Principe, still under construction Already • A local company will be constituted to operate in the Angolan environment sector Started (waste), with a group of local investors

3. Open SDC Angola’s capital to a local partner, reducing exposure to the Angolan construction, diversify to other segments • A company gathering SDC activity in Angola, will be constituted under the local law for future alienation of a minority stake • An Angolan company, with a local partner, will soon be created in Angola to operate in the building materials sector

41 STRATEGIC PLAN 2010-14 PRESENTATION IMPLEMENTATION ALREADY STARTED…

Strategic 4. Increase exposure to the US market: construction, PPPs, Renewables Plan • Geographical expansion ongoing with commercial activity in neighborhood states Implemen • Negotiations with 2 groups to form a consortium to bid for HRS Tampa-Orlando tation • SDC Concessions has been constituted, to form a permanent concession team in Already the US market Started • Pre-qualified to Georgia’s first PPP road project in consortium with Cintra, Ferrovial Agroman, and Meridiam; this is a $2.3 billion PPP project known as West by Northwest and SDC’s consortium faces competition of other 3 consortia

5. Explore construction and concessions opportunities in other countries • SDC is part of one of four major international consortia that have been pre- qualified to the PPP procurement process for DART Underground in Dublin, Ireland • Participation in international groups qualifying for large concession projects in Macedonia (construction, maintenance and management of State roads –packages 1 and 2) and (Rod El Farag Axis, Cairo) • Allocation of staff for business development in Algeria, Middle East (Abu Dhabi) and Mexico • Presentation of tenders for construction projects in market like Algeria (hospitals, water treatment plants, large buildings), Egypt (hotels), Jordan (hotels, real estate developments), Oman (infrastructure) and Mexico (hospitals, infrastructure)

42 STRATEGIC PLAN 2010-14 PRESENTATION CONTACTS

GRUPO SOARES DA COSTA SGPS SA

Public Company Head Office: Rua de Santos Pousada, 220 4000-478 Share Capital € 160.000.000 Commercial Registry Office of Porto: corporate body and register nr. 500 265 753 www.soaresdacosta.pt

Representative for Market Relations António Frada T: +351 22 834 22 43

Investor Relations Rita Carles T: + 351 21 791 3236 | + 351 22 834 2217 [email protected]

43 STRATEGIC PLAN 2010-14 PRESENTATION 44 STRATEGIC PLAN 2010-14 PRESENTATION