RESULTS 2017 2 8 F e b r u a r y 2 0 1 8 2017 Presentation of - PowerPoint PPT Presentation

RESULTS 2017 2 8 F e b r u a r y 2 0 1 8 2017 – Presentation of Results

Table of Contents HIGHLIGHTS OPERATIONAL DEVELOPMENT PERFORMANCE BY BUSINESS AREAS ANNEXES 2 2017 – Presentation of Results

Highlights  Financing closing of Pedemonana Veneta highway.  Third derivative transaction over Repsol shares: 100% position covered (risk eliminated). Total Corporate repayment of the syndicated loan.  Financing closing of Road Corridor 21 and 24 Uruguay.  Mature assets rotation: 49% Rutas de Algarrobo and Tenemetro. Focused on businesses profitability (EBITDA): Improvement in all areas.  Construction +60%  Concessions +12%  Services +10%  Industrial +14%  Group EBITDA margin +13.7%.  Operational Increase in Group´s total backlog +58%.  Focus on strategic markets:  73% of backlog and 58% of revenues, outside Spain.  Construction 91% international backlog, and Concessions 82% international backlog.  High international procurement: Colombia, Mexico, Paraguay, Uruguay, Australia, Bolivia,  Ecuador, Algeria, Chile, Uruguay … USA: preferred bidder for the construction and operation of a waste treatment plant in  Connecticut. Profitability for shareholder 5%.  Shareholder Bonus Share Capital increase 1x33: Profitability 3%.  Remuneration Scrip dividend 1x 48 or 0,052 € . Profitability 2% (completed in 2018)  Restart of dividend policy.  2017 – Presentation of Results 3

Pedemontana Veneta  One of the most important infrastructures in Italy, considered a strategic asset with national relevance, as it is located between the existing highways A4 and A27, crossing the Véneto region.  € 12,000m of future income aprox., and an estimated initial daily traffic of 27,000 vehicles, that could achieve 60,000. Financing has involved a bond issue for an amount of € 1,571m ( € 1,221m senior bonds, maturing in 2047 and € 350m in junior bonds,  maturing in 2027).  This kind of financing has been awarded with the prize Project Finance International 2017, in the category of best European transaction in transport infrastructures. This bond issue is one of the largest done in Europe in a greenfield project. Additional Cash Senior Debt € 350m € 1,221m Impact due to the change in Amount consolidation method ( € million) Pedemontana Revenue 220 41.0% Public Grant EBITDA 36 € 915m Assets € 2,566m Gross Debt 1,604 31.9% Net Debt 131 Mezz Debt € 350m 12.2% Equity € 430m Backlog 11,807 15.0% 4 2017 – Presentation of Results

Pedemontana Veneta Client Veneto Region Concessionaire Superstrada Pedemontana Veneta S.p.A. (SPVeneta) Project Design, construction, financing, operation and maintenance of the highway Period of concesssion 39 years since construction is finished Start of construction 2011 End of construction September 2020 Public subsidies (Contributo) Total € 915m Availability payment Initial fee € 165m in 2021 (first year of operation), fixed annual increase plus inflation Backlog € 12bn of future income until 2059 5 2017 – Presentation of Results

Table of Contents HIGHLIGHTS OPERATIONAL EVOLUTION PERFORMANCE BY BUSINESS AREAS ANNEXES 6 2017 – Presentation of Results

Operational Evolution (I) Main Figures 2017 2016 Var. ( € million) Revenue 3,093 2,860 +8% International 58% 51% +7 p.p. EBITDA* 423 360 +18% EBITDA margin 13.7% 12.6% +1.1 p.p. EBIT 257 208 +23% Financial Result -174 -201 -13% Net Profit 131 120 +9%** ** Net profit increase, without extraordinaries in 2016, is +32%. Does not include the non-recurring expense due to redundancy plan of Sacyr Construcción and Somague for an amount of € 25.5m in 2016, and € 17m of • Somague in 2017. Including this expense, EBITDA increases by 21%. 2017 2016 Var. ( € million) Backlog 41,001 25,956 +58% 29,757 13,470 +121% International 7 2017 – Presentation of Results

Operational Evolution (II) Contribution by activity REVENUE 2017 EBITDA 2017 Construction Concessions Services Industrial 8 2017 – Presentation of Results

Operational Evolution (III) EBITDA Evolution ( € million) 423 360 232 207 93 83 76 58 34 30 * * Profitability: consolidated EBITDA margin 2017 = 13.7% • Does not include the non-recurring expense due to redundancy plan of Sacyr Construcción and Somague for an amount of € 25.5m in 2016, and € 17m of Somague in 2017. 9 2017 – Presentation of Results

Operational Evolution (IV) INTERNATIONAL EXPANSION: BACKLOG INCREASE +58% ( € million) +58% 41,001 25,956 INCREASE +110% CONCESSIONS BACKLOG ( € million) +110% 27,163 12,926 10 2017 – Presentation of Results

Operational Evolution (V) High level of procurement in strategic markets • Roads 2 and 7 in • 4G Road corridor Cúcuta- • Operation and Paraguay. € 1,350m • Pamplona (Colombia) € 479m Cement plant in Bolivia management of concession. construction. € 226m. Antofagasta Hospital • Roads 2 and 7 in Paraguay. (Chile) € 139m. • 4G Road corridor • € 277m construction. EPC of waste treatment • Operation of waste Cúcuta-Pamplona • Construction of Quillota – plant in Melbourne treatment plant in (Colombia). € 2,441m Petorca Hospital (Chile) (Australia) € 30m. Melbourne (Australia) concession. € 128m. € 113m. • • • Construction of Tláhuac Operation and Enlargement of electrical • Pirámides, Tulancingo maintenance of the Hospital (Mexico) € 54m. grids in Chile € 60m. and Pachuca Road • highway “ Ruta del Pirámides, Tulancingo and (Mexico). Backlog Litoral ”, Uruguay, € 41m. • Pachuca Road (Mexico). € 41m Liquefaction plants • Maintenance of € 235m concession. construction. management in Algeria Pirámides, Tulancingo • Refurbishment of an sports € 22m. • and Pachuca road Tláhuac Hospital complex in Peru. € 31m. (Mexico) € 15m. (Mexico). € 1,045m • • Construction of Acuña City Complementary works in • Conservation and concession. General Hospital € 21m cement plant of maintenance of AP-9, AG- (Mexico). Chimborazo (Ecuador) 55 and AG-57 roads • El Tepual Airport (Chile) • Construction of Pachuca City € 12m. € 40m. after 2017 financial General Hospital € 18m • Cleaning and closing. (Mexico). conservation contract for Madrid Town Hall, € 24m. 2017 – Presentation of Results 11

Debt Evolution Net Debt decrease 2017 = (305) ( € million) (69) 582 (870) 3,726 (406) 145 213 3,421 (98) 162 3,259 36 Other operating Financial Other + Net Debt Deuda neta 2016 Net Debt EBITDA* Working Capital Otros flujos Resultado Inversion Investment Desinversion Divestment Repsol Otros + Deuda neta Consolidation Entrada Deuda Neta 2017 Net Debt flows + tax Result forex Pedemontana ** 2017 2016 operativos + tax financiero dif.conversión perimetro Pedemontana** Debt decrease due to Debt increase due Debt decrease due to operating flow to net investment financing flow (146) 513 (834) * Does include expense due to Redundancy Plan € 17m. 2017 – Presentation of Results 12 ** Pedemontana debt increase € 162m – € 36m (EBITDA) + € 5m (adjustments) = € 131m

Table of Contents HIGHLIGHTS OPERATIONAL EVOLUTION PERFORMANCE BY BUSINESS AREAS ANNEXES 13 2017 – Presentation of Results

Construction • REVENUE. . Small reduction if compared with the ( € million) 2017 2016 Var. same period of the previous year due to the slowdown of the activity in Spain and Somague. Revenue 1,225 1,250 -2% International growth of Sacyr Construcción 29%. EBITDA* 93 58 60% EBITDA : Increase by 60% with margin = 7.6%. • Recovery during the last quarter due to: EBITDA margin 7.6% 4.6%  Correction in delays at the beginning of works..  Pedemonta-Veneta contribution. Backlog 5,868 4,131 +42% % International Backlog 90% 84% +6.p.p • BACKLOG: Increase by 42% until € 5,868m. 57 months of activity. 90% is international. Months of activity 57 40 Does not include the non-recurring expense due to redundancy plan of Sacyr Construcción and Somague for an amount of € 25.5m in 2016, and € 17m of Somague in 2017. 14 2017 – Presentation of Results

Construction - Procurement Country Project 4G Road Corridor construction between Cúcuta and Pamplona, with an estimated amount of aprox. € 479m for COLOMBIA construction. This is the fourth 4G concession project that Sacyr has been awarded in Colombia. Construction in Paraguay of Roads 2 (between Asunción and Coronel Oviedo) and 7 (between Coronel Oviedo and PARAGUAY Caaguazú) with an estimated investment in construction of € 277m. CHILE Construction of the biprovincial Quillota-Petorca Hospital in Valparaiso Region, for an amount of € 128m. Construction of the new general hospital in the south region of Mexico City, Tláhuac Hospital, for an amount of MEXICO € 54m. Refurbishment, maintenance and conservation works in the Pirámides-Tulancingo-Pachuca highway, 91.5 Km length. MEXICO Backlog € 41m. Renovation of sports complex “Andrés Avelino Cáceres ”, in Lima, that will host the Pan American Games in 2019. PERU The budget for this project amounts € 31m. MEXICO Construction of the General Hospital of Acuña City, in Coahuila mexican state. For an amount of € 21m. Backlog: € 5,868m 15 Spain International 2017 – Presentation of Results