ACS Industrial Services: Growing with Energy D. Ignacio Pérez Chairman of ACS Industrial Services 1
Index Introduction Organizational structure Strategic positioning Main financial figures Growth opportunities 2
Grupo ACS Energy Investor s Day OIL AND GAS ACTIVITIES D. Mateo Rodríguez-Sánchez General Manager of Dinsa, Ingeniería Industrial y Plantas GAS ACTIVITIES D. Juan Carlos García Vila General Manager of Cobra Oil&Gas DRAGADOS OFFSHORE D. Pedro Ascorbe Dragados Offshore General Manager ELECTRIC GENERATION ACTIVITIES D. Pablo García Arenal Manager of Cobra Plantas Industriales ELECTRICITY TRANSMISSION ACTIVITIES D. Juan José Fanjul Manager of Cobra Electricidad DESALINIZATION ACTIVITIES D. Ramón Jiménez Manager of Tedagua RENEWABLE ENERGY - STRATEGY D. Eugenio Llorente CEO of Cobra RENEWABLE ENERGY FINANCIAL DETAIL D. Cristóbal González Financial Manager of Grupo Cobra SOLAR ENERGY D. Antonio Gómez Zamora Manager of Cobra Energía Solar FUTURE STRATEGY IN INDUSTRIAL SERVICES ENERGY D. José Alfonso Nebrera General Manager of ACS Industrial Services 3
ACS Industrial Services ACS Industrial Services Leadership in the applied engineering and specialized services industry # 1 in Industrial Services in Spain, Portugal and Latam Own corporate culture, with over 75 years of experience providing services to our clients Main supplier of the energy operators for the development & maintenance of installations Significant agent in the development & maintenance of technological systems Leader in other fields related to engineering, installing & maintaining industrial infrastructures 4
Historical evolution ( mn) 6.000 5.500 5.000 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 0 2.729 1.687 1.810 1.448 1.994 1.009 636 772 427 Sales > 815 CAGR +24% 4.748 4.077 3.491 5.500 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007e COBRA SEMI API, ETRA MAESSA ELECTRÉN ROURA IMES DINSA 5
Objectives presented in the Investor s Day of September 2004 Achievable Financial Targets Business Plan 2003-2007 2007e Objective 2007 Reality Sales > 4.200 mn ~ 5.500 mn EBIT TACC ~10% ~20% Net Income TACC ~ 15% > 20% 6
Areas of Activity Sales 1S/07 19% 16% Networks Maintenance of LT electric networks Maintenance of gas & water installations and networks Industrial maintenance and support services 27% 34% 38% Networks Specialized Products Energy Projects Control Systems Backlog 1S/07 17% 20% 29% Specialized Products Installment and maintenance of HT electric networks Engineering, installation, and maintenance of telecommunications systems Maintenance of railway installations Electric installations Mechanic and cooling systems Energy Projects Energy & industrial projects Renewable energy Oil&Gas projects High speed railway projects Control Systems Traffic & transport control systems, lightening Integral maintenance of public infrastructures 7
Products/Activities 30% RETAIL INTERNATIONAL 25% NETWORKS SPECIALIZED PRODUCTS CONTROL SYSTEMS Close geographical presence Wide range of products High recurrence Without product risk Local risks Travels: Permanent offices Growth: Network and range Significant entry barriers - Especialization - Network - Prices Network Range 70% LARGE PROJECTS INTERNATIONAL 44% Retail Large Projects LARGE SPECIALIZED PRODUCTS CONTRACTS ENERGY PROJECTS Very exportable Risks CONCESSIONS Critical mass Spain RENEWABLE ENERGY Investor s Day September 2007 8
Index Introduction Organizational structure Strategic positioning Main financial figures Growth opportunities 9
Flexible and decentralized organization Grupo ACS has an wide portfolio of activities, with a solid capacity of growth and recurrence in its incomes Construction Concessions Environment & Logistics Industrial Services Energy Grupo Cobra Dragados Industrial Industrial Services area includes Grupo Cobra and Dragados Industrial 10
Flexible and decentralized organization DINSA SICE SEMI MAESSA ACS Industrial Services Operating Systems Cobra CME ETRA API IMES Descentralized structure Enables multimanagement: product - client Promotes internal competence Encourages new business opportunities Coordination of commercial and operating polices Client management Risk management 11
Wide geographic reach: global presence Presence of ACS Industrial Services 12
Human resources: qualification & experience # of employees 35.757 Univ. Graduates 11% Technicians 16% 26.097 Operatives 73% Business culture: innovation and agility taking decisions 9.660 Excellence promotion: talent seeking and retention Technical training: continuous formation Industrial Services Grupo Cobra Dragados Industrial 13
Index Introduction Organizational structure Strategic positioning Main financial figures Growth opportunities 14
Strategic positioning Promote new businesses through the investment in high tech projects Growth potencial Specialized Products Energy Projects Increase the average profitability, strengthening higher value added services Networks Control Systems Operating margin 15
ACS vs. main competitors Comparison of Sales 1S07 ( mn) Spanish leader of Europen size 5.000 4.735 4.000 3.620 3.000 2.745 2.000 1.000 1.394 913 0 604 Saipem Technip ACS Abengoa Técnicas Elecnor Servicios Reunidas Industriales 16
Competitive advantages Leading position High technical qualification Processes and services integration capacity Wide geographical reach Specialization to meet CLIENT needs Dynamic and efficient structure Business diversification 17
Index Introduction Organizational structure Strategic positioning Main financial figures Growth opportunities 18
Main Figures: Evolution until June 2007 (Millones de Euros) 2005 2006 Var. 1S07 Var. 06/07e Sales 4.077 4.748 +16.4% International 32% 33% 2.745 +17.3% 31% EBITDA 344 420 +21.9% Margin 8.4% 8.8% EBIT 286 365 +27.6% Margin 7.0% 7.7% 235 +19.2% 8.6% 202 +20.7% 7.3% Net Profit 179 223 +24.2% Margin 4.4% 4.7% Backlog 4.269 5.087 +19.2% 129 +20.5% 4.7% 5.857 +23.2% 19
Sales Evolution ( mn) CAGR 01-06: 23% 6.000 5.000 4.000 3.491 4.077 4.748 3.000 2.729 2.000 1.687 1.810 1.000 0 2001 2002 2003 2004 2005 2006 20
EBIT Evolution ( mn) margin CAGR 01-06: 22.9% 400 350 300 250 200 150 100 50 0 8,0% 365 7,7% 7,7% 286 7,7% 245 211 130 146 7,0% 7,0% 2001 2002 2003 2004 2005 2006 8,2% 8,0% 7,8% 7,6% 7,4% 7,2% 7,0% 6,8% 6,6% 6,4% 21
Net Profit Evolution ( mn) margin CAGR 01-06: 30% 250 200 150 100 50 0 223 179 4,7% 150 4,4% 4,3% 4,2% 119 70 77 4,3% 4,1% 2001 2002 2003 2004 2005 2006 4,8% 4,7% 4,6% 4,5% 4,4% 4,3% 4,2% 4,1% 4,0% 3,9% 3,8% 22
Index Introduction Organizational structure Strategic positioning Main financial figures Growth opportunities 23
Growth drivers Grupo ACS Industrial Services World energy demand increase Investment in new projects and demand of new services Development and maintenance of energy infrastructures Increasing investments in renewables, lines of transmission and other concessions Higher internationalization and diversification of our activities 24
Development and maintenance of energy infrastructures Strategic Plans of the utility companies (2007-2009) The 4 larger spanish utilities will invest near 38.000 millions in 3 years in generation, distribution and renewable assets World growth of energy demand High energy demand in developing countries Limited productive capacity Need of new installations Electricity Construction & maintenance of power generation plans: CCGTs Renewable Energy Installation & maintenance of the electric grid: HT & MT transmission lines Transformers LT distribution lines Oil & Gas Construction of operating and drilling structures Development of storage facilities Construction and enlargement of pipelines Installation & maintenance of industrial networks Development of gas home distribution 25