3Q 2016 Results Presentation November 15 th , 2016
Results Highlights 1 Solid results based on : Improved operating efficiency EBIT € 1,119mn L-f-L ( +50 bp) Reduction of financial expenses Net FFO € 56mn Net fin. expenses € 248mn ( -38%) vs € (119)mn 9M15 Good opWC performance in 3Q 3Q WC inflow of € 380mn 2 Urbaser sale agreement supports further degearing Prof ND/EBITDA ratio 0.8x 3 Robust order intake underpinning future growth Backlog € 62.1bn (+9%) 2
Key financials 9M16 (1) Like for Like* -5.3% Slowdown of activity in Sales € 23,371 mn -7.0% Australia due to projects termination but sales keep on recovering -2.2% EBITDA € 1,513 mn -6.3% in 3Q (+14% vs 1Q and +8% vs Q2) Improved operating +0.8% +6.6% EBIT € 1,119 mn margins, particularly in HOCHTIEF Positive impact in 2015 of -0.7% +2.4% Net Profit € 570 mn exceptional non-cash items Growth across regions and +9.1% +7.3% Backlog € 62.1 bn activities * Adjusted by renewables (1) According to IFRS 5, after the sale agreement reached in September, Urbaser’s P&L has been reclassified as discontinued operations with restatement of the comparable period and FX impact 3
Net Profit 9M16 Variation 9M15 9M16 € mn Construction 152 220 +44.7% Industrial Services ex renewables 245 240 -2.0% Renewables contribution 6 0 Environment 55 56 +1.7% Corporation 115 53 Net Profit 570 574 -0.7% Outstanding performance in HOT with Corporation Net Income in 2015 improved margins, despite sales slowdown includes exceptional non-cash in Australia profits from IBE shares which have Strong impact of de-gearing process on been sold out in 2016 financial expenses 4
Sales stabilizing despite temporary headwinds Sales affected mainly by activity lags in Australia and domestic activity slowdown… (+99%) 25,135 -7.0% África 23,371 España 1% (-16%) Asia Pacífico 14% 25% Resto de (-5%) (-24%) Europa 8% +6.0% América del Sur 6% (-1%) América del 9M16 9M15 Norte (+6%) 46% CIMIC Domestic sales Remaining international sales … but recovering QoQ • Activity lags in CIMIC affecting top line CIMIC • Sales reduction in domestic market offset by international activity increase € 624 mn in Spain vs € 847 mn international ex CIM Figures in € mn Like for like variations 5
Sales stabilizing despite temporary headwinds SALES breakdown by activity ( € mn) ENVIRONMENT* INDUSTRIAL SERVICES CONSTRUCTION * Clece and SPL * Ex renewables 19,090 -8.6% 17,447 -2.0% 4,891 4,793 +2.7% 1,160 1,129 +9.6% 8,946 8,162 9M16 9M16 9M15* 9M15 9M16 9M15 • • • Affected by CIMIC top Affected by: Positive performance line decrease, Europe based on steady • MXN depreciation unrecovery and FX recovery of domestic and MEX headwinds economy slowdown • Rest of areas growing • Spain slowdown 6
Improved operating efficiency EBITDA ( € mn) EBIT ( € mn) Improved operating margins -4.5% +3.6% 1,584 1,119 1,513 1,080 Margin Margin 4.8% 4.3% 6.3% 6.5% 9M16 9M15* 9M16 9M15* * Ex renewables Impacted by FX headwinds and topline temporary lags Positive impact of transformation process in HOCHTIEF… Figures in € mn …reducing overheads and capital intensity Like for like variations and margins 7
De-gearing process continues paying off ….enables drastic reduction in financial expenses and implicit cost of debt 5.43% 4.53% * Ex Urbaser, annualized 1,036 3.74% * 776 -44% 958 606 -24% 699 532 2014 LTM 2016 2015 Urbaser Implicit cost of debt Gross financial expenses 8 Figures in € mn
WC under control & disciplined CAPEX Deseasonalized Operating Working Capital variation ( € mn) 2016 opWC Q evolution Ex Urbaser 625 387 * 2Q 1Q 3Q Urbaser 327 380 (202) 2015 2016 LTM 2014 2013 (1,052) * Ex Urbaser (571) (873) Disciplined Working Capital management as part of transformation process CAPEX Evolution ( € mn) Capital intensity reduction as part of transformation process… 941 611 …enhanced by -76% 336 Urbaser sale -32% 229* 2016 LTM 2014 2015 2013 9 * Ex Urbaser
Net Investments 9M16 Net Investments 9M16 € 89 mn (ex. Urb) 9M16 Net Regular Capex Net Project/Financial inv. Total Net inv. € 284 mn CIM € 85 mn CIMIC Construction € 174 mn € 384 mn € 559 mn treasury stock contract mining acquisition Industrial Services € 30 mn € (47) mn € (17)mn Environment (ex Urb) € 13 mn € 6 mn € 19 mn Business activities € 217 mn € 343 mn € 560 mn Corporation € (470) mn € (470) mn IBE disposal Net Regular Capex € 217 mn (ex.Urb) Financial/Project Net Investments € (128) mn Urbaser € 80 mn 10
Positive trend in FFO generation 9m15 9m16 Net interest paid -40% Net interest paid 273 456 217 -5% Net Operating CAPEX 77 16 229 Net Operating CAPEX Taxes paid Other results & adj.* 144 1,615 1,513 276 874 946 Taxes 786 paid Op WC var 629 56 FFO EBITDA Pre tax FFO Pre tax FFO EBITDA FFO (-119) ( bf opWC var) ( bf opWC var) Op WC var +20% Figures in € mn + € 175 mn * Dividends from JV & Associates, restructuring cost and adjustments. 11
Successful agreement to sell Urbaser Key transaction figures Company profile Value range Waste Sales FY15 € 1,634 mn Enterprise management € 2,212 ─ 2,463 mn 32% Value € 1.6 bn Sales € 730 mn Urban services (-) Net Debt FY15 68% EBITDA FY15 € 268 mn € 180 mn (-) Factoring FY15 -4.9% (-) Minorities & value adj. € 138 mn Domestic 59% € 1.6 bn Sales € 1,164 ─ 1,399 mn Equity Price Net Profit FY15 € 50 mn +23.6% International € 8.1 bn Backlog 41% PE ratio 23.2 ─ 27.9 x 4.2 € bn 2.8 € bn EV/EBITDA ratio 8.3 ─ 9.2 x 1.0 € bn 0.1 € bn Spain Rest Europe America Other 12
De-gearing process continues paying off Total indebtedness of the Group slashed… Further reduction underpinned by Urbaser deconsolidation 2,5x AHS debt include € 742mn from Urbaser 2.293 Deuda Neta / 1,6x EBITDA 1,4x 457 0,8x 964 5.872 3.880 222 2.751 1.587 sep.-14 sep.-15 sep.-16 sep.-16 PF Net Debt Assets Held For Sale Debt Deuda Neta Deuda ligada a Activos Mantenidos para la Venta 13
9m Net Debt evolution Net Debt Net Debt CF from investing SH’s FX, reclassif. CF from Operations Dec 2015 &other adj. activities Remuneration Sep 2016 € 236 mn € 56 mn € 26 mn € 424 mn € 31 mn Dividends & opWC FCF Financial Op. CF (bf WC & Net Fin/Proj. Treasury stock CAPEX) var discont. op. CAPEX Disposals Invest. From continuous operations vs € (119) mn 9m15 2,624 2,751 Includes € 550mn IBE divestment 874 Dividend payments to ACS’ Includes: shareholders and 1,147 • perimeter 536 minorities 772 changes (Urbaser) 217 • FX impact 26 • adj. from IBE 296 Includes CIM’s € and others 386 mn treasury &buyouts 128 31 Cash inflow Cash outflow Figures in € mn ACS & HOT treasury acquisition + € 127 mn 14
Robust order intake BACKLOG ( € mn) and breakdown by geographies (+44%) Africa Spain (-3%) +9.1% 2% 11% 10%Rest of Asia Pacific Europe (7%) 36% (+5%) 8% 62,138 North America 37% (+15%) South 56,975 America (+10%) 6% 9M15 9M16 • • Strong backlog position reassuring Outstanding performance of the future top line growth international commercial activity, particularly in America • Yet activity lags remain, thus expecting • to take off by late 2017 Positive impact of AUD ex. rate 15
Leading position in USA € 56 mn *LTM € 136 mn € 128 mn +7% University of Michigan Sales * Union Terminal Renov. & C-470 Tolled Highway, +23% Clinical Pathology, Rehabilitation, Museum Express Lanes, Segment 1, 12.0 Michigan Center, Cincinnati, Ohio Denver, Colorado +9% € bn € 54 mn € 346 mn Backlog UC Davis North Addition, Long Island Rail Road 18.3 office building, (LlRR) Grand Central Sacramento, California Terminal, New York 2014 2015 2016 LTM € bn YoY Sales growth (%) € 811 mn € 44 mn 100km of high speed Throgs Neck Bridge, New railway, California TOP US Construction York Group in terms of +21% € 59 mn € 62 mn revenues I-10 and SR 303L Estrella Prince George´s +18% Freeway, Arizona Community College in Largo, Maryland +19% € 362 mn € 103 mn Harbor Bridge Naval Academy's Center replacement project, for Cyber Security Studies, Corpus Christi, Texas Maryland 2014 2015 2016 LTM € 68 mn YoY Backlog growth (%) € 678 mn € 62 mn Sand Lake Road (SR 482), Chesapeake Bay Bridge- Orlando, Florida I-40 Business Winston- Tunnel, Virginia Salem, North Carolina 16
Robust order intake BACKLOG breakdown by activity ( € mn) INDUSTRIAL SERVICES ENVIRONMENT CONSTRUCTION +9.7% 51,801 +5.4% +8.7% 8,590 1,748 47,217 8,151 1,608 9M15 9M16 9M15 9M16 9M16 9M15 • • Solid growth in North Despite MXN negative • Increasing domestic America & Asia Pacific impact and international backlog • • Backlog recovery in Double digit growth in Asia Europe Pacific • Like for like variations • Positive impact of AUD New awards of EPC projects 17
Conclusions Transformation and de-gearing processes paying off supported by the sale agreement of Urbaser Increased FFO from continuous operations vs 9M15 underpinned by good operating performance and reduction of financial expenses Robust and diversified backlog especially in USA and Australia On track to achieve 2016 goals 18
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