May 2016
Building the future The leading global contractor The leading global infrastructure developer
2006… from A LOCAL player 2015… to THE GLOBAL leader
1st
84%
17th
15%
2 Highly diversified in terms of activities…
€ 34.9 bn revenues of which… 72% 19% 9% CONSTRUCTION INDUSTRIAL SERVICES ENVIRONMENT
Civil works EPC 41% Waste 52% management Contract 52% Logistic 4% mining 8% Support Facility Building 40% Services 59% management 44%
3 …and geographies
€ 34.9 bn revenues of which… Figures in € billions
NORTH AMERICA EUROPE 40% 25% ASIA 13.9bn 8.8bn 11% 3% 3.7bn
32% 8% R 5% 17% 1% 6% 4% SOUTH AMERICA AFRICA 6% 1% AUSTRALIA 2.3bn 1% 0.2bn 17% 1% 6.0bn
3% R 1% 4 Robust results in an adverse scenario
2015 RESULT Var. 14/15 VAR 14-15 ReportedVar. PRO-ProformaFORMA**
Sales €€34,92534,925 mn mn +0.1% +0.1%+1.0% +1.0%
EBITDA €€2,4092,409 mnmn -5.6% -5.6%+3.6% +3.6%
EBIT € 1,541 mn -8.5% +5.8%
Net Profit € 725 mn +1.1%
* Not taking into account the sale of renewable assets
5 … with underlying growth across activities
2015 SALES breakdown 2015 EBITDA breakdown
Waste Facility management management Growth* +2,0% +0,6% +5,9% EPC 5% 4% 7%
Support Building 1,438 € 2.4 bn services 38% 11% 680 Contract 342 mining 6%
Civil works Margin* 5.7% 10.1% 29% 10.9%
CONSTRUCTION 25.3bn 6.5bn 3.1bn 72% 19% 9% INDUSTRIAL SERVICES ENVIRONMENT * Adjusted by changes of perimeter (sale of renewable assets & incorporation of Clece) 6 Highly focused on cash flow generation
Free Cash Flow 2015 (€mn) 5.84% HOT acquisition
336 254 311 625 Projects & other assets
Total Net Investments 1,374 2,009 1,673 393 1,616
Operating CF WC var FFO Operating Net Operating Net Project & FCF (bf WC & CAPEX) CAPEX FCF Financial Investments
Operating Free Cash Flow evolution (€mn) Disciplined WC 2012 2013 2014 2015 management and 1,673 investment policy Boosting FCF generation enhances shareholder’s 144 213 profitability
(86) 7 Disciplined working capital management
WORKING CAPITAL Variation 2015 (€mn)
160 109 Consolidation 2,980 465 adjustments and reclassifications 2,464 €
Operating WC var 625
Working Capital Operating WC var. Operating WC var. Others Working Capital 12/31/14 HOCHTIEF ACS ex HOT 12/31/15
FFO and WC var Evolution 2012- 15 (€mn) Risk and WC WC var 2012 2013 2014 2015 management
2,009 system deployment 1,299 1,086 824 across business 625 (207) activities (873) (571) 8 Drastic leverage reduction during the last 5 years…
Project Finance Net Debt / EBITDA 2015 = 1.09x
-72% 9,334 395
4,952 4,235 781 3,722 685 593 2,624 -30% 541
Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015
9 …to achieve a solid financial position
One of the lowest leveraged IBEX companies…
NET DEBT 2015 € 2.6 bn 1.1x EBITDA
8x FCC 7x
6x Indra Enagas Abertis Ferrovial 5x OHL Acciona Iberdrola 4x REE Grifols Aena SA Telefonica
ND/EBITDA Arcelor 3x Acerinoz Gas Natural Repsol Ebro 2x Endesa Amadeus IAG 1x Mapfre ACS € 30,000 mn 0x Net debt size *Source: FACTSET € 2,000 mn 10 € 10.6 bn Gross Debt structure breakdown
By maturity* By facilities
Other sources Revolving facilities 7% Bank Debt 19% Long term 57% 72%
Short term Bonds 9% 36%
* Not including IBE exch. bond nor other financial assets By currency By activities
Other currencies Dragados 2% Corporation 8% CONSTRUCTION AUD 36% 2% Hochtief 38% USD 25% EUR Environment 12% 84% 15% Iridium Industrial Services 5% 11% 11 Increasing access to capital markets
Bond Debt/Total Gross Debt (%)
11%
14%
36% 32% 28% 75%
14% Straight bonds 9% Equity-linked bonds Eurocommercial paper 2011 2012 2013 2014 2015
12 Significant reduction of financial expenses
Figures in €mn
280 269 Year 2014 Year 2015 1Q 16 260 264 260 243 240 226 220 209 5.43% 200 182 180 160 160 154
140 4.53%
120 3.98%
100 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Financial expenses Implicit cost of debt
13 Solid work in hand to achieve sustainable growth Var. 14-15 Backlog 2015 € 67,072 mn +5.0%
28% 30% € 18,787 mn € 20,249 mn
34% € 22,485 mn 7% 1% € 4,554 mn € 998 mn
14 Growing in developed markets…
NORTH AMERICA € 38.6 bn intakes in 2015 of which…
20.2 • Leading position in the region 16.6 of North America which has 13.5 experienced a strong growth +50% in the last two years • 75% of the current backlog in 42% North America corresponds to 2013 2014 2015 16.4bn the USA with 56% growth in Backlog (€ bn) the last two years • 15% corresponds to Canada SOUTH AMERICA where the backlog has grown 7% by 61% in the last year 2.5bn • El 10% of the backlog 4.6 4.6 3.0 corresponds to Mexico where the backlog has grown by 13% in the last two years 2013 2014 2015 Backlog (€ bn)
15 …with high potential growth
€ 38.6 bn intakes in 2015 of which… ASIA PACIFIC
Middle East Rest of Asia 23.5 22.1 22.5 5% 3% Contract € 1.2 bn mining € 2.0 bn +19%
2013 2014 2015 Backlog (€ bn)
• Leading position in the Asia Pacific region Australia where the construction backlog has grown by 19% from last year • This is a high potential growth region for 21% the coming years given the high demand and the public and private investment € 8.0 bn capacity
16 …even in stagnated economies
EUROPE € 38.6 bn intakes in 2015 of which…
Rest of Europe 19.0 19.5 18.8 • Resistant position in a stagnated region with low 8% recovery potential in the mid term 3.3 bn 2013 2014 2015 • However… Backlog (€ bn) Slight recovery of the backlog in Germany Taking advantage of Spain opportunities in countries with higher 13% growth forecast: UK 5.0 bn AFRICA 1.1 1.0 1% 0.4 0.2 bn 2013 2014 2015 Backlog (€ bn)
17 Walking the extra mile
2006 2012 2016 INTERNATIONALIZATION TRANSFORMATION EXCELLENCE
Reducing corporate complexity in order to gain STREAMLINING cash flow visibility
Continuously seeking investment opportunities, promoting sustainable growth and COMPETITIVENESS consolidating leading position worldwide
Improving cash conversion and cash management in all layers of the organization PROFITABILITY Optimizing debt structure to reduce financial expenses
18 Conclusions
Excellent competitive and commercial position as infrastructure developer in the largest developed markets
High net income potential upside derived from a continuous transformation process to enhance profitability
Solid financial structure after a significant reduction of the Group’s Net Debt
Better prepared to achieve our goals of recurring profitability
19 This document contains forward-looking statements on the intentions. expectations or forecasts of Grupo ACS or its management at the time the document was drawn up and in reference to various matters including. among others. its customer base. its performance. the foreseeable growth of its business lines and its overall turnover. its market share. the results of Grupo ACS and other matters relating to the Group’s activities and current position. These forward-looking statements or forecasts can in some cases be identified by terms such as “expectation”. “anticipation”. “proposal”. “belief” or similar. or their corresponding negatives. or by the very nature of predictions regarding strategies. plans or intentions. Such forward-looking statements or forecasts in no way constitute. by their very nature. guarantees of future performance but are conditional on the risks. uncertainties and other pertinent factors that may result in the eventual consequences differing materially from those contained in said intentions. expectations or forecasts. ACS, Actividades de Construcción y Servicios. S.A. does not undertake to publicly report on the outcome of any revision it makes of these statements to adapt them to circumstances or facts occurring subsequent to this presentation including. among others. changes in the business of the company. in its strategy for developing this business or any other possible unforeseen occurrence. The points contained in this disclaimer must be taken fully into account by all persons or entities obliged to take decisions or to draw up or to publish opinions on securities issued by Grupo ACS and. in particular. by the analysts and investors reading this document. All the aforesaid persons are invited to consult the public documentation and information that Grupo ACS reports to or files with the bodies responsible for supervising the main securities markets and. in particular. with the National Securities Market Commission (CNMV in its Spanish initials). This document contains financial information drawn up in accordance with International Financial Reporting Standards (IRFS). The information has not been audited. with the consequence that it is not definitive information and is thus subject to possible changes in the future.