1. No category

Presentation to Investors
October 2014
2
Grupo ACS: a good investment opportunity
A unique global player…
• Most international contractor (ENR – June’14)
• Leading player in developed markets in terms of:
 Size, investment reach and local presence
 Technical and industrial capabilities
… with key competitive
advantages …
• Operating efficiency and risk management focus
• Solid and diversified backlog
• Financial soundness backed by:
 Recurrent cash flow generation capacity
 Valuable non core assets on sale
… and an attractive
shareholder’s return profile
• Price upside potential
 Attending to consensus estimates
 Compared to peers’ multiples
• Attractive dividend and FCF yields
• Top management alignment
3
Grupo ACS is the largest international contractor
2013 Revenues
€ 38.4 bn ($51.0bn)
* Factset consensus
2014e* Revenues
€ 37.6 bn ($49.6bn)
4
The most geographically diversified contractor
(with local leading companies)
Grupo ACS 2013 revenues by
Geographical Area
1st
27%
€10.5bn
27%
€10.3bn
4th
40% €15.6bn
2nd
5%
1%
€0.2bn
1st
€ 1.8bn
5
With a wide array of technical & industrial capabilities
(In construction and concessions)
2nd
1st
Grupo ACS presence
(countries with > €1 mn sales in 2013)
Greenfield Concessions
2nd
1st
6
With a wide array of technical & industrial capabilities
(and in services activities)
Grupo ACS presence
(countries with > €1 mn sales in 2013)
1st
1st
3rd
7th
7th
7
A Group built through different
integration processes and organic growth
1983
1986
1988
1989
1992
1996
1997
1997
1997
2003
2003
Employees
2011
2011
2011
157.689
97.112
70
9.872
1983
1993
2003
2013
8
Total revenues evolution since 1997
Sales (€ mn)
% international
38.396 38.373
84%
86%
73%
28.472
CAGR > 19%
15.345 15.276 15.387 15.380
13.869
14%
13%
15%
2.166
2.460
2.700
1997
1998
1999
15%
16%
3.921
4.420
14%
3.410
2000
2001
2002
2003
8.825
10.818
17%
12.114
26%
34%
2009
2010
22%
17%
16%
16%
2005
2006
2007
12%
2004
2008
2011
2012
2013
9
Operating margins historical evolution
3.088
9,8%
EBITDA (€ mn)
9,0%
margin
9,3%
9,0%
9,1%
9,0%
8,8%
9,0%
9,1%
9,3%
2.318
8,2%
CAGR > 21%
6,7%
795
6,0%
6,1%
151
180
280
353
411
130
1997
1998
1999
2000
2001
2002
2003
981
1.096
1.219
2004
2005
2006
3.002
1.380
1.382
1.429
1.505
2007
2008
2009
2010
8,1%
8,0%
2011
2012
7,8%
2013
1.746
1.579
EBIT (€ mn)
margin
6,3%
5,2%
6,8%
6,9%
6,5%
CAGR > 24%
574
2,5%
2,8%
55
141
268
68
214
305
1997
1998
1999
2000
2001
2002
2003
6,7%
724
6,7%
817
6,8%
943
6,9%
6,8%
7,0%
6,8%
1.057
1.043
1.074
1.039
1.333
4,1%
4,5%
4,7%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
10
Revenues and backlog by area of activity
Revenues 2013
€ 38,373 mn
Industrial Services
€ 7,067 mn
Environment
€ 1,781 mn
18%
Backlog 30/06/14: € 63,103 mn
Industrial Services
€ 7,554 mn
12%
5%
Environment
€ 8,630 mn
14%
74%
77%
Construction
€ 29,559 mn
Construction
€ 46,918 mn
11
Operating activities KPIs. Construction
93,4%
Construction Sales (€ mn)
International
85,1%
29.683
94,8%
Construction Backlog (€ mn)
29.559
Disposal of noncore activities
58.239
49.897
47.564
46.920
2013
1S14
19.802
22,5%
32,7%
5.703
11.340
11.087
2009
2010
6.151
2009
2010
2011
2012
2013
2011
2012
Recent main awards
Full consolidation of
HOCHTIEF since 2011
Construction EBIT (€ mn)
margin
Hamburg Hwy, 0.4bn
Ottawa Light Train, 0.7bn
6,2%
Orbital Hwy Catar, 0.7bn
6,0%
Hong Kong Airport, 0.6bn
Ohio Hwy, 0.4bn
685
384
343
449
781
2,6%
Colombia Hwy, 0.4bn
Lima Subway, 3.9bn
Sydney Light Train, 2.2bn
Melbourne Prison, 0.8bn
2,3%
2009
2010
2011
2,3%
2012
2013
12
Operating activities KPIs. Industrial Services
Industrial Services Sales (€ mn)
International
58,3%
7.158
33,5%
Industrial Services Backlog (€ mn)
37,4%
7.555
61,2%
7.413
48,0%
7.045
7.050
7.161
7.067
6.846
6.875
2010
2011
6.619
6.850
2009
2010
2011
2012
2013
2009
Industrial Services EBITDA (€ mn)
2012
2013
1S14
Recent main awards
Margin
Margin ex renewables*
12,9%
12,8%
13,3%
Offshore Platforms, 0.7bn
11,5%
Madrid Control Systems, 0.2bn
9,9%
Refineries, 0.4bn
8,0%
8,6%
821
9,3%
907
9,3%
904
10,0%
937
Transmission lines, 0.5bn
680
2009
Industrial Projects, 1.9bn
Renewable Energy, 1.0bn
2010
* Calculated with public information
2011
2012
2013
13
Operating activities KPIs. Environment
Environment Sales (€ mn)
35,5%
International
24,2%
2010
1.686
Disposal of noncore activities
9.669
25,8%
9.201
1.781
18,8%
1.511
Environment Backlog (€ mn)
8.941
1.691
8.443
2011
2012
2013
2010
2011
2012
2013
8.630
1S14
Recent main awards
Environment EBITDA (€ mn)
margin
UK treatment plants
237
253
275
Environment contracts in Spain
241
Privatization of waste treatment
activities (Portugal)
15,7%
15,4%
15,0%
14,3%
2010
2011
2012
Street cleaning and
waste collection. Latam
2013
14
Financial Soundness: Deleveraging process
Net Debt 2009-13 (€mn)
Debt to EBITDA Ratios 2009-13
9.334
9.089
-55%
8.003
4.952
Business Net
Debt / EBITDA
6,7x
7,3x
5,2x
5,6x
4,2x
4.235
3,5x
2,6x
Total Net Debt
(Incl. AHFS) /
EBITDA
2009
2010
2011
2012
1,5x
2009
2013
2,4x
1,4x
2010
2011
2012
2013
Data in € bn
2009
2010
2011
2012
2013
Business Net Debt*
5.35
6.52
8.94
4.17
3.55
Business EBITDA*
1.28
1.26
2.57
2.72
2.60
Ratio
4.2x
5.2x
3.5x
1.5x
1.4x
Total Net Debt (Incl.
Assets held for sale)
9.57
10.92
13.06
7.97
7.21
Total EBITDA
1.43
1.51
2.32
3.09
3.00
Ratio
6.7x
7.3x
5.6x
2.6x
2.4x
Gearing (Net debt/ Equity) 2009-13
202%
180%
151%
87%
77%
2009
2010
2011
2012
2013
* Excluding Debt and EBITDA from project finance (concessions, renewables, etc.)
and sold assets (in 2013)
15
Cash flow analysis (I)
Operating cash flow before WC variation and CAPEX (€mn)
2.172
1.959
Recurrent operating cash flow since HOT integration (€mn)
2.172
2.096
Adjusted by
Iberdrola
nonrecurring
items
1.506
1.125
1.188
2009
2010
2011
2012
2013
2011
Net cash flow from investments (€mn)
2012
1.095
65
39
958
69
72
1.327
-476
-2.070
2010
2012
2013
942
72
22
991
817
2009
2013
Net operating investments (€mn)
2.285
-2.726
2011
1.959
Dragados
€ 61mn
2011
Construction
2012
Industrial Services
848
Dragados
€ 54mn
Dragados
€ 42mn
2013
Environment Total
16
Cash flow analysis (II)
Recurrent Free Cash Flow (€mn)
2011
958
2.172
2012
2013
1.095
942
2.096
1.214
1.214
Recurrent
Net Op.
Recurrent
Op. Cash Investments FCF 2011
Flow 2011
2011
1.959
1.001
1.001
Recurrent
Net Op.
Recurrent
Op. Cash Investments FCF 2012
Flow 2012
2012
1.017
1.017
Recurrent
Net Op.
Recurrent
Op. Cash Investments FCF 2013
Flow 2013
2013
17
Asset rotation policy
€ 7.1 bn EV in disposals from operating companies since 2010
Date
2014
2014
2013
2013
2013
2012
2012
2012
2012
2012
2012
2012
2011
2011
2011
2011
2011
2010
2010
Item
Aurelis & Streif
Seville Subway concession
Nextgen (Telecomm Business)
HOCHTIEF Airport concessions
HOCHTIEF Services Business
Principe Pio Transfer Station
Thiess Waste Management (Australia)
Vespucio Norte Highway in Chile (45,45%)
Chilean Highway Ruta del Canal
FTG Transportation
7 Transmission lines in Brazil
Clece (23,5%)
Florida Highway I-595 (50%)
Chilean Highways: Túnel S. Cristobal & Vespucio Norte
11 Wind parks
9 Wind parks
2 Thermosolars + 5 wind parks
8 Transmission Lines in Brazil
SPL (Ports Business)
Seller
HOCHTIEF
Iridium
Leighton
HOCHTIEF
HOCHTIEF
Iridium
HOCHTIEF
HOCHTIEF
Iridium
Iridium
Industrial Services
Environment
Iridium
Iridium
Industrial Services
Industrial Services
Industrial Services
Industrial Services
Environment
Not including disposals of stakes in listed companies such as Abertis, Iberdrola and Union
Fenosa
Total Investments and Disposals 2008-13 (€ mn)
Investments
5,905
Disposals
5,113
4,756
4,781
4,598
2,789
2,969
2,798
2,586
2,483
1,853
2008
2009
2010
2011
2,008
2012
2013
18
Sale processes of non core assets under way
Comments
Leighton non core assets
John Holland, Services and Real Estate.
HOCHTIEF Real Estate
Already 40% sold & collected
Renewable energy
Wind parks and thermosolar plants in Spain
Infrastructure Concessions
ACS greenfield projects.
Others
Yoigo, desalinization and Transmission lines.
Total estimated value > € 3 bn
19
Market multiples vs. Peers’
Larsen & Toubro
(12.7x; 21.8x)
Dividend 15e yield = 4.2%
Free Cash Flow 15e Yield = 9.0%
19
Ferrovial
(18x; 29x)
17
Bouygues
P/E 2015e
15
Fluor
13
11
ACS
4.2x
11.3x
9
Median
6.1x; 12.3x
Skanska
VINCI
Balfour Beatty
Eiffage
Hyundai E&C
7
4
5
6
7
8
9
10
EV/EBITDA 2015e
Source: Factset 17 Oct 14
20
Returns vs Peers’
16%
14%
Eiffage
Free Cash Flow Yield
12%
VINCI
10%
Bouygues
ACS
Hyundai E&C
8%
Skanska
Fluor
6%
4%
Ferrovial
2%
Larsen & Toubro
Balfour Beatty
0%
0%
1%
2%
3%
4%
5%
6%
7%
Dividend Yield
Source: Factset 17 Oct 14
21
Top management aligned with shareholder returns
14%
Top Management
ownership in ACS
• Business, technical and
specialized backgrounds
• Most of their career in ACS,
170+ years of combined
experience in contracting
management
86%
• Successful track record of
industrial M&A over the last
25 years
• Relevant ACS shareholders
(14% stake + stock options)
• Challenging but achievable
strategic objectives
José Luis del Valle
Florentino Pérez
Eugenio Llorente
General Secretary
Chairman & CEO
Industrial Services CEO
Angel García Altozano Antonio García Ferrer Marcelino Fernández
Exec. Vice-chairman
Hochtief & Leighton CEO
General Manager - CFO
22
Strategic objectives 2014-2016
Financial efficiency increase
Hochtief
Restructuring
Spain’s recovery
Net Profit growth in operating activities
Interest rates
reduction
Access to the fixed
income markets
Capital re-allocation
Disposal of assets
Minorities
buy-out
Profitable Growth
Net Profit annual
growth
>10%
Moderate
financial gearing
Attractive return to
shareholders
Business Net Debt
EBITDA
< 1.4x
Stable dividend
policy
Net Profit 2016 c. € 1.0 bn
23
ANEXXES
1H/14 KEY FIGURES
24
Key figures 6M14
Var.
Sales
€ 18,759 mn
Backlog
19 months
EBITDA
EBIT
Net Profit
Var. (like-for-like)*
-5.0% +5.1%
€ 63,103 mn
-9.6%
-3.5%
Margin 6.8%
€ 1,277 mn
-15.2%
-2.1%
Margin 4.5%
€ 838 mn
+3.2% +13.9%
€ 395 mn
+10.7% +19.2%
* Like-for-like variations are calculated adjusting forex and changes of perimeter. EBITDA also includes the impact of “FleetCo”
25
Grupo ACS Sales 6M14
Industrial Services
€ 3,643 mn
+3.7%*
Construction
€ 14,277 mn
+5.6%*
19%
5%
Total Sales
€ 18,759 mn
+5.1%*
76%
Environment
€ 852 mn
+0.3%*
Not included in the graph:
€ (13) million from adjustments
* Like for like variations, which are calculated adjusting forex and changes of perimeter
26
Grupo ACS Sales 6M14
Africa € 143 mn
1%
Spain
€ 3,038 mn
16%
Asia Pacific
€ 7,546 mn
9%
40%
Rest of Europe
€ 1,699 mn
34%
America
€ 6,334 mn
International Sales
Construction
€ 13,488 mn (+6.0%*) 95% /total
€ 15,721 mn +5.4%* (84% of the total)
Industrial Services
€ 1,943 mn (+0.6%*) 53%/total
* Like for like variations, which are calculated adjusting forex and changes of perimeter
Environment
€ 291 mn (+12%*) 34%/total
27
Grupo ACS Backlog Evolution LTM
New orders,
last 12 months
Production,
last 12 months
Book to bill ratio
LTM = 0.94x
Forex and
perimeter
changes
€ 38.203 mn
€ 40.531 mn
Excluding this effect:
€ 63.103 mn
€ 4.355 mn
€ 69.786 mn
€ 63.103 mn
-3.5%
Backlog June 13
Backlog June 14
28
EBITDA Analysis
€ 62 mn
Like for like -2.1%
Telco &
Services
€ 102 mn
€ 1.506 mn
€ 1.444 mn
€ 36 mn
Forex
€ 1.415 mn
FleetCo
€ 1.277 mn
EBITDA 6M13
Adjusted
EBITDA 6M14
EBITDA 6M13
Adjusted
EBITDA 6M14
29
EBIT Analysis
+14.2%
€ 45 mn
-0.8%
€ (3) mn
-7.7%
• Slightly larger
provisions
• Flat revenues
€ (5) mn
• Activity slowdown
Corp.
€ (12) mn
7%
• Lower PPA amortization
and FleetCo impact
8%
+3.2%
€ 25 mn
54%
€ 838 mn
€ 813 mn
38%
6M13
51%
Construction
f/x effect
€ (66) mn
Perimeter changes effect
€ (19) mn
Variation (like-for-like)
+13.9%
Industrial Services
Environment
42%
6M14
30
6M14 Net Results
6M13
6M14
Construction Net Profit
120
109
-9.2%
Industrial Services Net Profit
237
237
0%
Environment Net Profit
46
46
0%
Corporation Net Result
(46)
3
n.a.
(77)
(74)
31
77
357
395
€ million
Net financial expenses
Financial stakes, overheads & others
Net Profit
+10.7%
31
Net Debt Evolution Dec12 – Jun14
Grupo ACS Total Net Debt
Seasonality effect on
Activities’ Net Debt
(restated after IFRS changes)
€ 5.620 mn
€ 4.519 mn
€ 781 mn
€ 681 mn
€ 803 mn
€ 999 mn
€ 5.812 mn
€ 3.811 mn
€ 1.611 mn
€ 685 mn
€ 4.187 mn
€ 3.818 mn
-€ 449 mn
Dec 2012
Corporation
Jun 2013
Activities Debt
Business Net Debt
€ 3.367 mn
€ 3.520 mn
-€ 241 mn
Dec 2013
Jun 2014
Project Finance
Total Net Debt
32
Cash outflow
Net Debt bridge over LTM impacted
by investments & cash flow seasonality
Cash inflow
2nd Half 2013
1st Half 2014
€294mn
€1.019mn
€1.346mn
€5,812mn
€5,620mn
€173mn
€2.518mn
€688mn
€290mn
€1.499mn
€1.101mn
€3,811mn
Net Debt
30/06/13*
Operating CF Net Investments Dividends &
after WC
others
variation
Net Debt
31/12/13*
Operating CF Net Investments Dividends &
after WC
others
variation
Net Debt
30/06/14
33
1H14 Total investments impacted
by HOT & LEI acquisitions
Net Operating
CAPEX
€ 742 mn invested
in Hochtief and
Leighton
Net financial and
concessions
investments
€692 mn
-49.5%
€658 mn
€327 mn
€(9) mn
6M13
Includes the
disposal of Telco
in Australia
6M14
FleetCo creation &
CAPEX rationalisation
34
Operating working capital outflow
affected by seasonal effects
6M13
6M14
HOCHTIEF
ACS ex HOCHTIEF
€ (774) mn
€ (904) mn
Aprox. € 660 mn
recovered in
2H/2013
Factoring
reduction
€ (578) mn
€ (720) mn
€ 12 mn
Adjusted WC
YTD variation
Factoring
reduction
€ 62 mn
€ (1,482) mn
Similar
impact than
in 1H/2013
€ (1,494) mn
35
Recurrent FCF from operations keeps growing
6M13
6M14
Net Financial
Expenses, Tax
Payments &
Other
Net Financial
Expenses, Tax
Payments &
Other
(319)
Less dividends from
non-consolidated
affiliates
(409)
EBITDA
1,506
Op. CAPEX
(Net)
(658)
Operating
activities
FCF
(before WC)
Op. CAPEX
(Net)
(327)
EBITDA
1,277
Operating
activities
FCF
(before WC)
+ 2,2%
529
541
36
ANEXXES
GRUPO ACS STRUCTURE
37
Grupo ACS Structure
Florentino
Pérez (CEO)
Other Core
Shareholders
Free Float
12.5%
27%
60.5%
Listed in Madrid Stock Exchange
HOCHTIEF’s Ownership
(Listed in Frankfurt Stock Exch.)
HOCHTIEF’s
Free Float
Qatar
Holdings
28%
11%
Revenues 2013
€ 38,373 mn
100%
€ 7,944 mn
Construction
Construction
Industrial Services
Environment
61%
100%
100%
100%
€ 25,693 mn
€ 3,866 mn
€ 7,067 mn
€ 1,781 mn
70%
€ 14,767 mn
100%
EUROPE
€ 2,982 mn
38
HOCHTIEF Structure
Grupo ACS
Qatar Holdings
Free Float
61%
11%
28%
Listed in Frankfurt Stock Exchange
Revenues 2013
€ 25,693 mn
100%
70%*
Free Float*
100%
€ 7,944 mn
€ 14,767 mn
30%
€ 2,982 mn
HOCHTIEF Americas
Leading General
Contractor in the
US, developing
Institutional and
non residential
building
Civil Works
Contractor present
mainly in the West
Coast of US
Leighton
EUROPE
Mining
Contractors
Civil Works
and Building
Develops services
for mining
companies,
managing all the
processes of the
site on a
concession – like
scheme
Civil works and
building
contractor mainly
in Australia and
South East Asia.
Owns 45% of
Habtoor Leighton
Group (UAE)
Leading Construction company in
Germany, develops:
• Civil Works contracting
• Building activities for third
parties
• Engineering and design solutions
• Concessions development
* Listed in Sydney Stock Exchange
39
Rest of Grupo ACS Activities
Civil Engineering
Revenues 2013
€ 12,714 mn
Industrial Engineering
100%
100%
100%
Construction
Environment
Industrial Services
€ 3,866 mn
€ 1,781 mn
€ 7,067 mn
Leading construction company in
Spain and Poland, present in USA
(especially in the East Coast), in the
UK and Latam.
Develops mainly civil works activities,
being very competitive in high speed
railways, tunnel boring machines and
bridges development.
Invests in greenfield concessions
through Iridium, a 100% owned
affiliate that is the leading
concessionaire in the world.
Present in Spain, France, UK and
Latam.
A world leader in design, construction
and operation of waste treatment
plants, a capital-intensive activity
that requires a strong technological
and financial capacity
The Group currently operates over
300 facilities, including energy
recovery plants, biogas production,
composting, transfer, pre-treatment
and landfills
Leaders in Spain and Mexico, with a
strong presence in Middle East and
Northern Europe.
Specialized in the development of
energy infrastructures through turn
key projects (EPC)
Provides support services in the field
of industrial maintenance
Promotes, finances and develops
energy projects, especially renewable
energy and oil&gas facilities.
40
Areas of activity: Construction
ACS is the largest international contactor, focused in developing
infrastructures globally
Others
Construction
10%
Civil Works
Gen.
Building
20%
Sales
55%
Sales 13
EBITDA 13
€29.6 bn
€1,826 mn
€46.9 bn
15%
Mining
Sales by region
5%
52%
Current Backlog
9%
Spain

Rest of Europe
Asia Pacific

34%
America
Develops state-of-the-art construction activities such
as Civil Works, Contract Mining and General Building
activities in 30 countries, with a technical team
including 10,000+ engineers
ACS is the leading greenfield concession developer in
the world (40+ projects, Equity invested > € 1.2 bn)
Areas of activity: Industrial Services
Industrial Services is a leading support services & EPC contractor
with a decisive presence in emerging markets
Generation
5%
Industrial Services
Support
Services
EPCs
30%
Sales
Sales 13
EBITDA 13
€ 7.1 bn
Sales by region
€ 937 mn
Asia Pacific
Africa
5%
America
Current Backlog
3%
38%
Rest of Europe
7%
€ 7.5 bn

Specialized in the development of energy
infrastructures through turn key projects (EPC)

Support services to provide industrial
maintenance

Promote, finance and develop renewable energy
projects
Spain
47%
65%
42
Areas of activity: Environment
Waste management, treatment, recycling and urban services.
A very visible, stable and profitable activity
Urban Services
Logistics
8%
Environment
Waste
Treatment
Sales 13
EBITDA 13
€ 1.8 bn
Current Backlog
€ 275 mn
28%
Sales
64%
€ 8.6 bn
Sales by region
Spain
Africa
America
2%

A world leader in design, construction and operation of
waste treatment plants, a capital-intensive activity that
requires a strong technological and financial capacity

The Group currently operates over 300 facilities,
including energy recovery plants, biogas production,
composting, transfer, pre-treatment and landfills
66%
16%
16%
Rest of Europe
43
DISCLAIMER
This document contains forward-looking statements on the intentions, expectations or forecasts of Grupo ACS or its management at the time the document was drawn
up and in reference to various matters including, among others, its customer base, its performance, the foreseeable growth of its business lines and its overall turnover,
its market share, the results of Grupo ACS and other matters relating to the Group’s activities and current position. These forward-looking statements or forecasts can
in some cases be identified by terms such as “expectation”, “anticipation”, “proposal”, “belief” or similar, or their corresponding negatives, or by the very nature of
predictions regarding strategies, plans or intentions.
Such forward-looking statements or forecasts in no way constitute, by their very nature, guarantees of future performance but are conditional on the risks,
uncertainties and other pertinent factors that may result in the eventual consequences differing materially from those contained in said intentions, expectations or
forecasts.
ACS, Actividades de Construcción y Servicios, S.A. does not undertake to publicly report on the outcome of any revision it makes of these statements to adapt them to
circumstances or facts occurring subsequent to this presentation including, among others, changes in the business of the company, in its strategy for developing this
business or any other possible unforeseen occurrence. The points contained in this disclaimer must be taken fully into account by all persons or entities obliged to take
decisions or to draw up or to publish opinions on securities issued by Grupo ACS and, in particular, by the analysts and investors reading this document. All the
aforesaid persons are invited to consult the public documentation and information that Grupo ACS reports to or files with the bodies responsible for supervising the
main securities markets and, in particular, with the National Securities Market Commission (CNMV in its Spanish initials).
This document contains financial information drawn up in accordance with International Financial Reporting Standards (IRFS). The information has not been audited,
with the consequence that it is not definitive information and is thus subject to possible changes in the future