Presentation of Grupo ACS September 2009
Strategic vision A global leader in infrastructure development In the fields of civil and industrial engineering activities With sustainable and profitable growing businesses Focused on shareholder s value creation Construction Concessions Environment & Logistics Industrial Services & Energy 2
20 19.2 18 16 14 12 10 8 6 4 2 0 11.5 11.2 Market Cap ( bn) 6.5 5.7 4.3 4.0 Grupo ACS: A global leader in infrastructure development 2008 Net Profit ( mn) 2,000 1,800 1,600 1,805 1,591 1,501 1,400 1,200 1,000 800 600 464 337 301 287 175 57 518 400 3.5 3.5 3.4 3.3 200 0 3 Vinci Bouygues ACS Fluor Acciona Skanska Eiffage Hochtief Ferrovial FCC SyV ACS Vinci Bouygues Fluor Corp. Grupo Acciona FCC Eiffage Skanska AB Hochtief AG Grupo Ferrovial As of 01/09/09
In the fields of civil and industrial engineering activities Construction Concessions Environment & Logistics Industrial Services & Energy La Breña Dam North Access - Zaragoza Marseille Treatment Plant Andasol I Thermosolar Plant 4
With sustainable and profitable growing businesses Sales EBITDA 18,000 15,000 12,000 million 12,114 10,818 14,067 16.010 15,560 CAGR 96-08> 26% 1,200 CAGR 96-08> 29% million 1,600 981 1,096 1.480 1,380 1,270 9,000 8,825 800 795 6,000 3,000 0 976 4,420 2,166 2,4602,7003,4103,921 400 0 67 127 148 179 280 353 411 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007* 2008* 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007* 2008* Net Profit EPS 2,000 1,500 1,000 million 1.805 CAGR 96-08> 43% 1,551 5.0 CAGR 96-08> 25% 1,250 6.0 4.0 3.0 3.58 4.51 5,43 500 0 609 452 230 24 49 68 85 121 149 181 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 *: In order to present like for like data, in 2007 and 2008 Unión Fenosa is accounted by equity method 2.0 1.0 0.0 1.74 1.30 1.07 0.94 0.78 0.35 0.43 0.47 0.52 0.63 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 5
Focused on shareholder s value creation Market Cap Annual Total Return to Shareholders 32% 11.2 bn 0.1 bn Including Dividends 1996 Today 6
Grupo ACS evolution Successful history of integration processes to become a world leader in the development and operation of infrastructures and energy 1983 1986 1996 1997 1999 2003 2003 2007 1997 Environment & Logistics Concessions 1992 Construction Industrial Services Energy 1988 1989 2000 2005 2006 2008 Maximize shareholder s returns Levered on our corporate strategy Global Leadership Profitability of resources managed Promoting sustainable growth 7
Corporate strategy Global Leadership Profitability of resources managed Promoting sustainable growth Main players in all activities Influence on the industry and markets Resources & talent attraction Wider range of investment opportunities Operational and financial efficiency Strict investment criteria Solid financial structure Sustainable shareholder s value creation Respecting the economic, social and environmental frameworks in all activities Improving society 8
Increasing international presence International 21% Sales 79% Domestic International 31% Backlog 69% Domestic Direct Presence Through, and. Accounted by equity method 9
Grupo ACS key figures Euro Million Year 2008 Var. 1H09 Var. Turnover 16,010 +4.3% EBITDA 1,480 +7.2% EBIT 1,097 +3.8% Ordinary Net Profit 1,127 +11.6% Net Profit 1,805 +16.4% EPS 5.43 +20.5% Total Net Debt 9,355 Total net debt with recourse 2,933 Total debt without recourse 6,422 8,122 +2.3% 736 +2.2% 561-1.4% 541-3.4% 1,542 +72.8% 4.91 +86% 8,752 (59) 8,811 10
1H09 Operating results Breakdown by activity Euro Million Construction Environment & Logistics Industrial Services & Energy Turnover 3,277-8.6 % 1,312 +10.0 % 3,552 +8.0 % International Turnover 492 +33.8 % 172 +32.3 % 1,118 +7.3 % % over total 15% 13% 31% EBITDA 244-8.6 % 171 +9.6 % 328 +12.0 % Margin 7.5% +0bp 13.1% +0bp 9.2% +30bp EBIT 204-9.2 % 105 +7.4 % 268 +7.1 % Margin 6.2% -10bp 8.0% -20bp 7.6% +0bp Net Profit 143-8.4 % 78 +0.2 % 175 +10.0 % Margin 4.3% +0bp 6.0% -50bp 4.9% +10bp Backlog 11,091-5.6 % 10,824 +3.4 % 6,579 +5.3 % Sales (Domestic 78% - International 22%) EBIT Ordinary Net Profit 16% 18% 11% 40% 35% 18% 32% 44% 47% 39% Construction Industrial Services & Energy Environment & Logistics Concessions* * Including Abertis contribution 11
Balance sheet as of 30th June 09 Solid financial structure Assets Working Capital (2,031) mn Fixed Assets 5,306 mn Liabilities Net Worth 4,000 mn Long Term Financial Investments 8,807 Net Debt 8,752 mn Other Non Current Assets 2,284 mn Other Non Financial Liabilities 1,614 mn 12
Net debt situation as of 30th June 09 (59) mn Cash Operating activities free of debt Total Net Debt 8,752 mn Total Non Recourse Debt 8,811 mn 3,310 mn 5,501 mn Project finance non recourse debt SPVs Renewable assets Infrastructure concessions Treatment plants Iberdrola (12.0%) 4,839 mn Maturity >10y Cash Rich Assets Hochtief (29.99%) 662 mn Total Net Debt / Annualized EBITDA + Dividends from affiliates (09e) = 4.8x 13
Construction Construction International activity Only through Civil Works Growth opportunities in US, Western Europe and Chile Large projects under construction as shows the backlog increase in 2008 Civil Works in Spain Civil Works in Spain Investment commitment from the Central Administration Cost Efficiency to maintain high margins Working capital management Building activity Flexibility to face activity reduction International Activity Building Client risk management Public housing development Strategic targets Efficient management of Civil Works in Spain: maintaining market share and margins close to 6% (EBIT) Select attractive markets: International growth through concessions and selective Civil Works projects 14
Concessions Concessions Opportunities Pre qualified for projects in 2009 with more than 1,800 million of investment Mature concessions portfolio turnover International activity in North America and Western Europe Attractive portfolio of projects 15 years world leader Areas of activity Specialized in the development of greenfield projects Transportation infrastructures worldwide and PPPs mainly in Spain More than 1,000 mn invested Large projects in 2008 9 new concession contracts with an investment under management of more than 3.9 bn Strategic targets Take advantage of the operating and strategic synergies with Abertis (25.8% stake): focusing Grupo ACS activity on developing greenfield projects on transportation infrastructures and PPPs Continue developing and selling concessions as the main activity on this area 15
Environment & Logistics Environment & Logistics Backlog 1H09: 10,824 mn 81,100 employees Facility Management 38% International 13% 62% Environmental Services Domestic 87% Environmental Services Leader in Spanish market in waste recycling and treatment International business >20% (backlog > 35%), own R&D, especially in SUW treatment plants Facility Management Leader in the Spanish market of integrated building maintenance services, gardening, reforestation and landscape restoration, social health systems, airports services No international expansion Strategic targets Two approaches to promote and maintain recurrence, visibility and growth: public services utility + investment in concesional projects Increase the capital intensive project finance investments to keep using non recourse debt for Grupo ACS 16
Industrial Services & Energy Industrial Services & Energy Backlog 1H09 6,579 mn 41,200 employees 40% Energy Projects 13% Networks Specialized Products 33% International 31% Domestic 69% Control Systems 14% Networks Specialized Products Control Systems Main supplier of utilities & large industrial corporations Maintenance of LT electric networks Maintenance of gas & water networks Industrial maintenance and support services Global player in support services Installment and maintenance of HT electric networks and telecommunications systems Design, development & maintenance of railway systems Electrical, mechanical and cooling systems installations Spanish leading company in control systems Traffic & transport control systems Lightening systems Integral maintenance of public infrastructures and concessions Energy Projects: EPC Turn Key Projects Electricity projects: Power plants (Coal, Hydro, Nuclear, CCGTs) & HV lines Oil & gas facility projects (off-shore platforms, refineries, LNG, etc) Competitive international presence: Europe, Middle East, North Africa & Latam Energy Projects: Wind and thermosolar renewable plants 1,250 MW in renewable energy assets. Attractive portfolio of new assets (target 1,800 MW for 2010) Concesional Projects: Transmission lines & Desalinization Transmission lines: 10,300 km ( 390 mn invested); Desalinization plants: 3 plants ( 165 mn invested) 17
Industrial Services & Energy Industrial Services & Energy Investments Investments and operation of wind parks: 1,100 MW under operation and 2,000 MW under development Thermosolar plants with thermal storage capacity: 150 MW under operation and 250 MW under development Energy Support Services Visibility and Recurrence Maintenance business generated as a consequence of the EPC investments Increase of the value added offering for those clients cutting costs EPC Projects International Growth Strong presence in investing countries: Mexico and Brazil Investments for the long term in Gas and electricity Strategic targets Leadership of the industry on Grupo ACS reference markets: Spain, Latin America and Northern Africa Renewable energy projects development: margin improvements and contribution to traditional business 18
Industrial Services & Energy: Renewable Energy Projects Attractive portfolio of renewable energy assets Asset Wind, global consolidation Wind, equity method Total Wind, installed Thermosolar, installed Wind, under construction Thermosolar, under construction Installed Capacity 1 942 MW 134 MW 1,076 MW 150 MW 213 MW 110 MW Attributable to ACS 80% 33% 74% 83% 83% 100% Pipeline Wind Thermosolar 1,799 MW 150 MW 80% 100% More than 1.5 bn already invested in wind projects 1 billion invested in 6 thermo-solar plants; 3 already completed 1: As of 30/06/2009 These figures exclude other renewable energies as Biomass and SUW where ACS has more than 180 MW installed 19
Electricity Consolidated as a financial investment Industrial Services & Energy: A long term commitment with the industry Grupo ACS is the industrial reference shareholder of Iberdrola, owning 12.0% of the company Value Creation Track Record First contractor for electric utilities in Spain with a 80 years experience in building, operating and maintaining electrical assets Deep footprint in Spain and relevant countries where utilities are present Long term understanding of the regulator Grupo ACS Expertise Iberdrola s Excellence Industry Attractiveness A World Leader First in class electric utility company by generation mix (with high entry barriers) Worldwide renewable energy generation leader Good Momentum Sustainable & predictable growth Strong entry barriers + few players Regulated sector Industry consolidation Strategic targets Focus Iberdrola s strategy in long term value creation for shareholders Reinforce Iberdrola s leadership in most profitable markets divesting non performing assets Provide credibility to markets and regulators for future consolidation opportunities in the industry 20
Listed companies: Strategic management of affiliates Global Vision, Size and Leadership Grupo ACS holds 30% of Hochtief and plays a key role as the industrial reference shareholder in the company Grupo ACS is influencing Hochtief s strategy as the industrial reference shareholder, but keeps the local management approach There are extensive opportunities of collaboration in the development of international contracts in joint venture Grupo ACS maintains a strong industrial commitment for the long term with Abertis, owning a 25.8% stake of the company European concessions leader by market cap and number of projects Straight-forward strategic vision on the development and operation of infrastructures Outstanding investment capacity Results Contribution Equity Method Results Contribution Equity Method Financed through an SPV: non recourse debt No debt assigned directly to Grupo ACS 21
Conclusions Clear Strategy & Implementation track record Global Leadership Operational and financial efficiency Successful value creation history Reliable Businesses & Good Clients Contracting business based on civil & industrial engineering know-how Growing, reliable & recurrent activities Client relationship based on mutual trust Focused, talented & committed people Entrepreneurship Sound technical skills Global experience in large project development We look for fundamental value creation in the long term 22
September 2009