Más valor para el accionista: nuestro compromiso. Documento en progreso y revisión Sujeto a aprobación

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1 Más valor para el accionista: nuestro compromiso Documento en progreso y revisión Sujeto a aprobación

2 Más valor para el accionista: nuestro compromiso The goal of Ezentis is being the leader in Latin America within services for Operation and Maintenance of and Energy infrastructures Ezentis know-how in managing Last Mile infrastructure in LatAm is second-tonone, and certainly out of reach for most of its local competitors Unlike the cyclical nature of infrastructure investment, operation and maintenance (O&M) is OpEx driven and therefore largely independent of GDP growth In electricity, Smart Grid development is expected to be the key driver behind increased demand for O&M services. 2 2

3 Más valor para el accionista: nuestro compromiso I. Company Overview II. Strategic Positioning and market III. Evolution of the Strategic Plan A. Growth B. Eficiency and Profitability C. Financial Optimization 3

4 Más valor para el accionista: nuestro compromiso I 4 4

5 1. Company Overview Our quality of service is the one that our clients provide to +15 million households and España Ezentis is a multinational listed company with Spanish origin and presence in 9 Latin American countries whose activity represents 93% of total revenues. +95 million users of mobile phones Caribe Colombia Business focus on the last mile, the one that reaches households through and Electricity services. Perú Brasil The Company employs 7,640 professionals, operates 3,370 vehicles and owns more than 119 work places. Chile Argentina 5 5

6 1.Company Overview Electricity Fixed-line & mobile sites Distribution &Transmission Grids Smart Grid Ezentis is at the forefront of the O&M transformation process in LatAm; in addition, its European roots and the resulting proximity to its clients headquarters positions Ezentis as the strategic partner of choice. Planning Engineering Procurement Construction Operation Maintenance Infrastructure Deployment (EPC) Market Base: Investments of the year Market function of CAPEX Contracts by project Operation and Maintenance (O&M) Market Base: Infrastructure stock Market function of OpEx Recurring multiannual contracts 6 6

7 1.Company Overview Fixed line and mobile Electricity: Distribution&Transmission Other Infrastructures to serve Copper and fiber optic networks Bases, infrastructure and transmission lines stations Internal plant and external plant Low, medium and high voltage grid Transformation substations and platforms Internal facilities: industrial networks and shopping centers Water distribution networks and health systems Gas distribution networks Services to provide Deployment and improvement of existing elements (technology migrations) Preventive and corrective maintenance Integrity control maintenance and leak monitoring Emergency operations Customer service: Technical: provision of services Commercial: meter reading and billing / connection and disconnection Operating process management of operator networks / network control centers Innovation and development of new services Technology Services Corporate network services Development of support systems for operations Geographical information system Outsourcing and maintenance of client equipment 7 7 7

8 1.Company Overview Differential Value Strategic partnership with our clients Maximisation of end-client satisfaction High quality service implementation Added value through operational excellence and efficiency Focus on the "last-mile" Sector-based diversification Key Competitive Advantage Competitive Advantage Experience with large contracts Strong international focus Regional presence in key LatAm markets Technological capabilities Innovation Ezentis know-how in managing last mile infrastructure in LatAm is second-to-none, and certainly out of reach for most of its local competitors Ezentis keeps good relationships with Spanish telecom operators and utilities with relevant presence in LatAm. These clients demand strong expertise from service suppliers to operate and maintain its infrastructure in the region, asking for top service quality and high end-customer satisfaction levels The industry is undergoing a transformation from a relationship model based on local supplier contracts to a multi-regional partnership model with selected companies, solid enough to provide investments and commit to higher quality operations 8 8

9 1.Company Overview Revenue Performance EUR Million +73% PF(1) % LatAm 2014 Revenue Breakdown by Geography and Client Industry Peru Chile Other Spain 8% 4% 13% 17% 28% Brazil 30% Argentina Other 12% 25% 63% Electricity Backlog Evolution EBITDA Performance EUR Million % EUR Million % % LatAm PF(1) (1) Excluding the divested Spanish Telecom business EBITDA Margin 5.4% 3.0% 5.9% 9 9

10 1.Company Overview (2) Share Capital: Number of Shares: *Last updated in March ,4% 13,6% 5,0% 3,0% 2,0% 17,0% Board Member Position Category Manuel García-Durán de Bayo Executive Chairman Executive Fernando González Sánchez Chief Executive Officer Executive Luis Solana Madariaga First Vice President Independent Guillermo Fernández-Vidal Vice President Executive Enrique Sánchez de Léon García Leader Director Independent Isla Ramos Chaves Board member Independent Javier Cremades García Board member External Jose Wahnon Levy Board member Independent Agencia IDEA Board member Nominee Director (Ana Maria Sánchez) Eralan Inversiones, S.L. >3% Board member Nominee Director (Alvaro Barrios) Alfredo Parra García-Moliner Secretary Non-director Álvaro Rodríguez-Quiroga Torres Vice Secretary Non-director Shareholders syndication 1 PREMATT (Mutual Fund) Merchbanc (Asset Management) Agencia IDEA Other institutional investors Free-float Núcleo estable de gestión (1) Syndication agreement includes Manuel García-Durán and Management team (4.4%); Eralan Inversiones, S.L.;Strongback Holdings Limited, Teleprocesing Services and others (2) Shareholders structure after capital increase of July 2014 and the entrance of Teleprocesing Services

11 1.Company Overview Professional and multidisciplinary Management Team based in Madrid and Santiago de Chile The current management team has restructured Ezentis businesses by repositioning the Company in the Latin American market Guillermo Fernández Vidal Executive Vice President Francisco Barañao Chief Financial Officer Jose María Maldonado Chief Resources Officer Manuel García Durán Executive Chairman Fernando González CEO Jose Ignacio Domínguez Internal Audit Director Carlos Mariñas Corporate Gral. Director Roberto Cuens Investor Relations Director Alfredo Parra Gral. Secretary and to the Board Jorge de Casso Chief Corporate Legal Officer Ignacio Baeza Dir. Gral Regional for Brasil Fernando Vizcaíno Dir. Gral Regional for Argentina Manuel Román Dir. Gral Regional for Pacific Dir. Gral Regional for Spain 11 11

12 Más valor para el accionista: nuestro compromiso 12 12

13 2.Strategic positioning and potential market Electricity Electricity market of c. 150 Million consumers, Brazil represents 50% of LatAm Big6 (1) Latin America has been called the next major smart grid opportunity by both vendors and renowned industry experts Electricity consumption in LatAm is expected to grow by 27% in the period vs. relatively stagnant levels in both North America and Europe (2) Infrastructure investment is expected to drive electricity consumption per capita to c.2.9gwh in LatAm by 2020, an increase of more than 39% vs levels (2) MX PE COL ARG BR Telecom market of c. 132 Billion, Brazil representing 40% (4) Brazil telecommunications market is one of the world s largest, ranking 4th in fixed lines and 5th in mobile, with 300 million handsets Fixed and mobile broadband access are likely to grow at a double-digit rate in the next decade, pushed by connected devices (5) Infrastructure investment is expected to increase mobile penetration in Latin America by 37% and fixed broadband penetration by more than 100% from 2010 to 2018 (6) (1) Source: ANEEL 2014 (Brazil); CFE (Mexico), ADEERA 2012 (Argentina); Companies, CREG y SUI (Colombia); Empresas Electricas, A.G (Chile); Distribucion De Energia Electrica 2010 (Peru) (2)Source: World Bank; ITU; IEA, World Energy Outlook (4)Source: IDATE World Telecom Services Market, Nov 2013 (5)Source: Frost & Sullivan, ITU (6) Source: The Economist Intelligence Unit

14 2.Strategic positioning and potential market Ezentis is at the forefront of the O&M transformation process in LatAm; in addition, its European roots and the resulting proximity to its clients headquarters positions Ezentis as the strategic partner of choice OPPORTUNITY HIGHLIGHTS 1 LATAM: HIGH GROWTH POTENTIAL REGION 4 GLOBAL VS. LOCAL SUPPLIERS O&M market worth 10 Billion with additional potential to grow Large infrastructure stock and new investments High telecom and electricity penetration New relationship model based on multi-regional partnership with O&M suppliers in Telecom (New supplier model announced by Telefonica group in 2012) Transition also in electricity with key players such as Iberdrola, Enel, Cemig or Gas Natural Fenosa 2 POTENTIAL MARKETS & BUSINESS DIVERSIFICATION Key growth opportunities in Mexico Potential for market share growth in the electricity sector New services: mobile & smart grid Standard relationship model along different countries (contract scope and provisions) Choice of the right combination of global and local companies in each country 3 EFFICIENCY & PRODUCTIVITY Higher efficiency and quality levels are required by clients Multi-tasking capacity to increase productivity Customer satisfaction as the main driver for contractors incentives Synergies with internal plant and mobile activities Source: Telefonica Corporation Global Partners 14 14

15 2.Strategic positioning and potential market Geography Population (Million) E GDP (US$ PPP Billion) 2,947 2, ,471 2,423 3, , ,236 2, ,524 2,645 3, ,518 2, E 2012 Presence (Argentina, Chile, Peru, Jamaica, Panama and Spain). Spain not considered in sector data Growth in 2013 (Brazil) Growth in 2014 (Colombia) Growth in E (Mexico) Source: The Economist Intelligence Unit. Company own elaboration Fixed Lines (Million) Energy E Electricity Consumption (TWh) , E Mobile Lines (Million) E Gas Consumption (Mtoe) E 15 15

16 2.Strategic positioning and potential market Unlike the cyclical nature of infrastructure investment, operation and maintenance of the existing stock of telecom and utilities infrastructure is OpEx driven and therefore largely independent of GDP growth Further upside for the O&M service market is likely as new investment adds to the existing stock of infrastructure to be O&M ed In electricity, smart grid development is expected to be the key driver behind increased demand for O&M services (not considered in the numbers below) Billion EUR Electricity # of main operators by sector and country AR BR CH CO >40 >50 >20 >20 1 > MX PE Fixed 1 Mob 1 TOTAL Electricity distribution Fragmented service offering (1) Telefonica and America Movil represent more than 50% of the fixed and mobile operators in the indicated countries Source: Company s estimate as of

17 2.Strategic positioning and potential market Last Mile Fixed Network ~ 66 Million Accesses ~ 10.5 Million Accesses LatAm Big6 Electricity Mobile Network ~ 130,000 Towers ~ 24,000 Towers ~ 578 Million Mobiles ~ 95.5 Million Mobiles 1 Distribution Grid ~ 150 Million Consumers ~ 7.1 Million Consumers (1) Estimated based on the Base Transceiver Station (BTS) maintenance average market share of Grupo Ezentis Source: World Bank and Company data

18 Electricity 2.Strategic positioning and potential market Presence in 14 states and 65 service centers BRASIL SEICOM Contracts amounting 103,2 M between August-October of 2014 in mobile sites maintenance Ezentis Energía (SUL) Electricity Contracts amounting 121,6M between May - June 2014 in maintenance of power distribution grids and customer services SECTORS CLIENTS 36% (1) Market Share mobile sites maintaned (1)Source: World Bank and Company data Fixed: External plant Fixed: Internal plant Mobile: Sites maintenance Distribution Network Commercial services 17 18

19 2.Strategic positioning and potential market CHILE 25 centers of services in Chile and 12 in Peru Construction and maintenance of fixed and mobile networks. Customer equipment services. Water Services for maintenance of Supply and Sewage Networks. PERU Construction and maintenance of fixed networks. Customer equipment services. Electricity Maintenance of power distribution grids. Customer Support Services. Electricity Maintenance of electrical distribution grids. Leader in maintenance of mobile sites in Chile with a market share of 31% (1) (3.500 sites) (1) Fuente: World Bank y datos de la Compañía

20 2.Strategic positioning and potential market Colombia Caribbean Networks Test In June 2014 Ezentis acquired the 100% of the share capital of the Spanish company Grupo Networks Test, which manages and operates private telecommunications networks for companies. Jamaica, Panama, Trinidad y Tobago Construction and maintenance of Optical Fiber networks. Maintenance of mobile towers. Electricity Construction and maintenance of electrical private networks. Strong deployment of Optical Fiber Networks in the Caribbean 17 20

21 2.Strategic positioning and potential market Argentina Spain Construction and maintenance of fixed and mobile networks. Customer equipment services. Electricity Maintenance of electrical distribution grids Gas Maintenance of gas distribution networks. Mining Construction and maintenance of private telecommunications and transmission networks and electricity distribution in remote locations. Ezentis Tecnología/ Navento Development and maintenance of Operational Systems Support (OSS) and plant management systems (GIS) for telecommunications and electrical companies. Deployment and maintenance of private networks Navento technology develops and operates software products that improve productivity and quality of maintenance companies. This software (MOSAIC) is used by the group Ezentis worldwide for its operations. Product commercialized in Latam.. Networks Test In June 2014 Ezentis acquired the 100% of the share capital of the Spanish company Grupo Networks Test, which manages and operates private telecommunications networks for companies. En Argentina since 1992 with 9 centers of services 19 21

22 Más valor para el accionista: nuestro compromiso 22 22

23 Strategic Plan Objectives 1 Pillars of Growth E % CAGR Focus on Latin America Sales EBITDA Bank Debt LatAm Sales EBITDA Margin % 10.1% Net Bank Debt % 33% 57% 4.7 p.p Focus on telecommunications and electricity in strategic accounts Organic and inorganic growth aimed at profitability and diversification Technological capability as the differentiating factor for innovation in services Long-term commitment and vision of the management team Millions of Euros (1) Currency exchange calculated using constant exchange rate (average rate for month of December Source: Oanda), with the exception of Argentina (forward curve for exchange rate, 02/01/2014. Source: Bloomberg) (2) Actual figure on February 2015 (3) Does not include debt linked to execution of organic/inorganic opportunities

24 3. Evolution of the Strategic Plan Growth Efficiency and Quality Financial Optimization Portfolio based on existing and proven capabilities Differentiation model based on being strategic partners of our clients Strong organic and inorganic development in LatAm Growth with business diversification: geographic, sector and client based Improvement in operational productivity Focus on quality and profitability of contracts Sharing of knowledge and best practices Efficiency in fixed costs and operating expenses Improve the balance sheet by bringing in new capital Achieve a positive net operating income for the Group Improve working capital Reduce the Group s net financial debt Creation of value for shareholders

25 3. Evolution of the Strategic Plan Growth Ezentis entered the telecommunications and electricity sectors in Brazil in 2013 via the acquisition of SEICOM and SUL It reinforced its presence in Spain and entered the Colombian market in June 2014 with the acquisition of Network Test Principle Target selection Implementation factors Objective to acquire majority stakes in target companies EBITDA margin for first year higher than 7.5% Debt/EBITDA less than 2x EV/EBITDA multiple between 5x-6x Presence Companies that own contracts with target clients Alignment of local management with Ezentis via shareholding participation at Group level, and with the local company through earn-out structures Local leadership by managers of the acquired company Integration into the Group Controlling interest of Ezentis in the acquired companies Financial and legal operations controlled by Ezentis Leverage on Ezentis marketing and M&A capabilities Implementation of best operating practices and technological innovation 23 25

26 3. Evolution of the Strategic Plan Growth Geographical diversification Projection of sales by country Millions of Euros Diversification by sector Projection of sales by sector Millions of Euros Brazil Chile Spain Peru Argentina Other 28% 17% 7% 12% 32% 4% 37% 13% 12% 10% 7% 2% 12% 8% Brazil Chile Spain Peru Argentina Other Mexico Colombia 51% 55% 30% 27% 19% 18% Telecommu -nications Electricity Other 2013PF 2017E 2013PF 2017E Diversified client portfolio, with regional and global operators 24 26

27 3. Evolution of the Strategic Plan Growth Evolution of Ezentis Group sales from Millions of Euros x2.0 Backlog / Sales 2013 Pro forma +34% % PF Organic growth Inorganic growth 2017E Backlog / Sales ratio X2,0 3 x1.8 x2.2 (1) CAGR of the Group s sales figure for the period of 2013PF with respect to organic growth in 2017E (2) CAGR of the Group s sales figure for the period of 2013PF 2017E (3) Calculated based on 2013 Pro forma figures 25 27

28 3. Evolution of the Strategic Plan Growth Inorganic Pipeline Priorities and Inorganic Growth Opportunities Market research Selection of targets Analysis of targets Execution Geographical priorities EUR Billion LatAm Big6 Market % Current Progress Level 2 in Pipeline as % of Total Envisaged Investment 10% 70% Breakdown of opportunities # Revenues 2015E 1 ( Million) EBITDA 2015E 1 ( Million) Telecom Electricity Total Electricity Selection of targets Analysis of targets Execution (1) Annual Figures shown for targets under M&A process in which Ezentis will have a controlling interest (2) Approximate level of progress 26 28

29 3. Evolution of the Strategic Plan B. Efficiency and Quality Goals Ezentis has implemented a new organisational model with common processes and indicators ( PQ-10 ) to improve cost management and client satisfaction. A few months after being put into practice, first results have been very positive Main Goals Business profitability Client/customer satisfaction Competitiveness Operating Factors Productivity of each worker in operations Rewards in contracts with clients Reduction of operating expenses Optimisation of SG&A expenses Maximization of economies of scale Implementation of best practices Improvement 1 Objectives of EBITDA Margin from 2013 to M EBITDA 67M 5.4% 2013PF 2.5% New business (organic + inorganic) +4.7 p.p. 2.2% Efficiency and improvement of scale Sources of improvement of EBITDA margin (1) Estimation of incremental contribution to EBITDA margin from % 2017E 2017 s objective in line with: US peers: 9.9% Inorganic growth: % Organic growth: >10% 27 29

30 3. Evolution of the Strategic Plan Millions of Euros Financial optimisation Cash flow 29.9 Cash at year end R 2017E Net bank debt R 2017E 2,1x 1-0,9x Net bank debt / EBITDA 2013R 2017E (1) Ratio calculated based on 2013PF EBITDA figure 28 30

31 3. Evolution of the Strategic Plan Millions of Euros Financial optimisation Sales EBITDA Attributable net profit 1 Group ,9 32,2 Latam (excl. ARG) and others ,0-0,7 Latam (excl. ARG) 27,6 Spain ,9 3,2 Argentina ,0 1,3 2013PF 2017E (1) Actual 2013 figures as of 31 December

32 3. Evolution of the Strategic Plan Millions of Euros 2017E Figures (constant exchange rate 1 ) Impact of Argentina on the Group total E Objectives Sales EBITDA Net Profit Attributable Net Profit (1) Financial figures of the Group use constant exchange rates for all foreign exchange conversions (average exchange rate for the month of December Source: Oanda) (2) Impact on financial figures of the Group using Bloomberg forward curve for foreign exchange conversion of the business in Argentina

33 Millions of Euros Sales 656 EBITDA Margin 10.1% Net Bank Debt -61 Cash flow at year-end 82 Current presence New markets More value for the shareholder: Our commitment

34 This document has been prepared by EZENTIS solely for use at presentations held in connection with the Corporate Presentation. This document may contains forecasts or estimates relating to the development of the Company s business and results. These forecasts are based on EZENTIS opinions and future expectations, so they are subject to any risks and uncertainties that may be exist and that may cause the real results to differ materially from the forecasts or estimates. The information contained in this document must be taken into account by all those people or organizations that may have to make decisions or form or disseminate opinions relating to the shares issued by EZENTIS, and especially by analysts handling this document. Please note that this document may include non-audited or summarised information. We therefore invite readers to consult the information registered with the CNMV (Comisión Nacional de Mercado de Valores). This document does not constitute an offer or invitation to subscribe to or acquire any shares and neither this document nor its content will form the basis of any type of contract or commitment

35 Más valor para el accionista: nuestro compromiso Prim, Madrid, España T: F: E: