Executive summary Net Profit 802 mn SOLID 2017 RESULTS +17% - PowerPoint PPT Presentation

2017 Results Presentation March 1 st 2018 2017 – Result Presentation

Executive summary Net Profit 802 € mn SOLID 2017 RESULTS +17% comparable * Net FFO 1,492 € mn STRONG CASH GENERATION +43% Net Debt 153 € mn end of 2017 NET DEBT REDUCTION AT A HISTORICAL LOW -87% vs 2016 0.1x EBITDA 23.4 € bn GROWING BACKLOG IN STRATEGIC MARKETS +18 % comp* 17.8 € bn +14 % comp* PROMOTING GROWTH AND LONG TERM VALUE PPP market 2018-21 > 200 € bn CREATION + excellent competitive position 2017 – Result Presentation * Adjusted by FX and excluding Urbaser in 2016 2

2017 Key operating figures Figures in € million Var. Var. Comparable 1 34,898 SALES +9.1 % +10.7 % 2,279 +13.9 % EBITDA +12.6 % 1,626 +12.5 % +14.2 % EBIT 802 +6.8 % +17.0 % NET PROFIT n/a 1,492 +42.8 % NET FFO 2 +8.8 % 67,082 +0.8 % BACKLOG (1) Adjusted by FX and excluding Urbaser in 2016 (2) FFO: Net funds from operations 2017 – Result Presentation 3

Net Debt and evolution 2011- 2017 Figures in € million 42 Net cash position (ex Project finance) 195 Project Finance (non-recourse) Reduction of 153 Net Debt at 2017 year end 1,061 € mn in 2017 9,334 -9.2 € bn in 6 years (-98%) 4,519 0,1x 3,811 8,939 3,722 EBITDA 2,624 1,214 3,738 3,126 3,129 € 42 mn 2,083 153 1,012 net cash (42) 2011 2012 2013 2014 2015 2016 2017 2017 – Result Presentation Net Debt ex Project Finance Project finance debt 4

Geographic diversification € 34,898 mn + 9.1 % (+10.7% ex FX ) SALES 2017 45 % o/sales 20 % o/sales 15,483 mn € 6,966 mn € +5.6 % +0.8% TOP 5 Country sales weight /sales EEUU 13.3 € bn 38 % Australia 7.0 € bn 20 % Spain 4.4 € bn 13 % 29 % o/sales Hong Kong 1.4 € bn 4 % 10,226 mn € Canada 1.2 € bn 3.5 % Mexico 0.9 € bn 3 % +22.6% 5 % o/sales Germany 0.9 € bn 3 % 1 % o/sales 1,754 mn € 470 mn € -0.8% Annual growth +64.4% 2017 – Result Presentation 5

CONSTRUCTION Sales evolution € mn Growth ex FX North America + 14.1 % € 14,200 mn (+8.1%) F/X Rest of Europe 27,221 € 2,048 mn (-1.8%) 52% 24,127 7% Spain € 1,280 mn 5% sales (+7.2%) € 27.221 mn 8% 2017 2016 Asia € 2,204 mn (-5.6%)  Solid growth in USA 2% 26% (+11% in local currency ) South America  CIMIC’s sales rebound Australia € 6,995 mn € 493 mn (+38.0%) (+23.2%) (+24 % in local currency ) 2017 – Result Presentation 6

INDUSTRIAL SERVICES Sales evolution € mn Spain € 1,813 mn Growth ex FX Africa (+6.0%) € 470 mn (+65.6%) 29% 8% F/X Rest of Europe Asia Pacífico 6,260 € 406 mn € 1,026 mn 6,256 (-3.1%) sales (+9.5%) 6% 16% € 6,260 mn 2017 2016 21% 20%  Domestic market recovery North America  Strong growth in Asia Pacific South America € 1,283 mn (-16.6%) € 1,262 mn (-7.8%) 2017 – Result Presentation 7

SERVICES Sales evolution € mn Rest of Europe € 85 mn (+29.2%) 6% F/X SINTAX 1,446 1,407 sales 2017 2016 € 1,446 mn  Solid position in Spain with increasing exposure to the european market 94% Spain € 1,361 mn (+1.5%) 2017 – Result Presentation 8

Operating results - EBITDA CONSTRUCTION INDUSTRIAL SERVICES SERVICES +15.8% ex FX F/X 1.620 +3.7% ex FX 1.405 +4.9% F/X 633 630 76 72 2016 2017 2016 2017 2016 2017 Margin Margin Margin Margin Margin Margin 5.8% 10.1% 10.1% 5.3% 6.0% 5.1% • Clece figures, excluding contribution • • 20bp margin improvement Margin stability from SINTAX in 2016 Figures in € million 2017 – Result Presentation 9

Net Profit by activities Figures in € million 2016 2017 Var. 311 Construction Net Profit 387 +24.4% Industrial Services Net Profit 305 319 +4.6% 26 37 Services Net Profit +38.4% Corporation 52 59 Net Profit ex Urbaser (1) 694 802 +15.5% Urbaser 57 0 Attributable Net Profit 751 802 +6.8% (1) Adjusted by FX, Net Profit grows by 17 % 2017 – Result Presentation 10

Operating Cash Flow Net financial expenses Operating and taxes WC var Figures in € million 2,357 192 114 493 2,279 Net CAPEX Adjustments Dividends received Other expenses 372 +23 % 1,921 1,492 +43 % 1,040 GROSS NET EBITDA GROSS NET FFO FFO FFO 2017 FFO 2017 2016 2017 2016 FFO (Funds from Operations) 2017 – Result Presentation 11

Net operating investments detail (CAPEX) € 372 mn OPERATING NET CAPEX CONSTRUCTION SERVICES INDUSTRIAL SERVICES € 284 mn € 21 mn € 65 mn Divestments Investments Divestments Investments Divestments Investments € 426 mn € 142 mn € 7 mn € 88 mn € 23 mn € 28 mn Dragados € 32 mn 18 % 9 % HOCHTIEF € 36 mn HOCHTIEF INDUSTRIAL CIMIC DRAGADOS SERVICES SERVICES CIMIC* € 216 mn 5 % 9 % 59 % *Mainly contract mining machinery and TBMs for civil work projects 2017 – Result Presentation 12

Detail on Financial and Project net investments € 63 mn Net financial divestments Investments in financial assets and concessional Divestments in financial assets and concessional projects projects € 434 mn € 371 mn • Renewable energy • € 126 mn Sale of Iridium concessions € 177 mn • Transmission lines Brazil • € 87 mn Sale of wind parks in Portugal € 116 mn • HOCHTIEF (various) € 52 mn • Sale of Sintax € 55 mn • Energy Projects (Cobra) • € 35 mn HOCHTIEF Europe (PPPs & other) € 37 mn • UGL minorities acquisition • € 20 mn DRAGADOS (Financial assets) € 19 mn • Iridium concessions • € 48 mn Other € 30 mn • Other € 3 mn 2017 – Result Presentation 13

Free Cash Flow Figures in € million Net Divestments (Project/financial) 63 1,555 Shareholder’s remuneration +57 % 1,492 32% 492 + 8 % +43 % 991 1,040 FCF FCF ex Net FFO Net FFO URBASER 2017 2017 2016 2016 FCF = Free Cash Flow DPS paid 2017 Annual increase € 1.196 +4 %  Significant increase in free cash flow +30 % € 2.60  Increase in shareholder’s remuneration +24 % $ 1.74 2017 – Result Presentation 14

Net debt reduction at a historical low Project Debt 1,3x . 1,2x . 1,1x . 0,9x 0,9x . . 9,334 0,5x . Net Debt (ex 0,0x - . project)/ EBITDA 4,519 8,939 3,811 3,722 2,624 – 87 % 3,738 1,214 3,129 3,126 2,083 153 1,012 (42) Net Cash 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2017 – Result Presentation Figures € million 15

Net Debt structure by activity CONSTRUCTION INDUSTRIAL SERVICES SERVICES CORPORATION Net cash position of the activities € 1,865 mn € 2,018 mn Non-recourse debt: cash position (42) € mn € 165 mn € 153 mn Group’s Net Debt € (602) mn € (1,428) mn 2017 – Result Presentation 16

2017 Net Debt evolution Net Debt FFO* bf WC Net Debt F/X and other WC variation Net Investments SH’s remuneration Dec 2016 Dec 2017 and CAPEX adjustements € 351 mn 1,214 € (372) mn Net € 141 mn CAPEX 1,672 € (21) mn ACS € 63 mn Net exHOT Financial/ Project investments 3 8 € 213 mn 153 HOCHTIEF 492 308 192 Figures in € mn *Funds from Operation 2017 – Result Presentation 17

2014 – 2017 Net financial expenses evolution 633 – 55 % 475 340 283 – 17 % 130 208 110 105 75 2017 2014* 2016 2015* Corporation Operating activities TOTAL (*) Restated data excluding Urbaser. 2017 – Result Presentation 18

Backlog breakdown by business areas INDUSTRIAL SERVICES SERVICES CONSTRUCTION + 7.6 % 4.5 55.5 55.7 + 15.0 % € bn € bn 0,8 + 13.6 % 9.3 8.8 2.3 € bn € bn 2.0 € bn € bn 2016 2017 2016 2016 2017 2017 Annual growth adjusted by FX FX impact in € bn 2017 – Result Presentation 19

Strategic position in solid markets with growth potential # 4 # 5 # 1 # 3 # 2 FX Impact + 17.8 % ex FX + 14.4 % ex FX 2.4 0.9 20.0 17.8 + 1.8 % + 17.2 % ex FX 6.9 + 0.1 % 0.3 3.4 2.7 SP AIN CANADA AUSTRALIA UNITED STATES GERMANY Weight 30% 26% 10% 5% 4% o/backlog 2017 – Result Presentation NOTA: figures in billions. Growth adjusted by F/X 20