GLOBAL INNOVATION
GROUP OVERVIEW BUSINESS AREAS INVESTMENTS SOCIAL RESPONSIBILITY 2
GROUP OVERVIEW COMPANY OVERVIEW Sacyr is a diversified group with international recognition and encompassing four areas of activity: construction, infrastructure concessions, industrial and services business. It s listed on the spanish stock exchange. Sacyr is active in five continents and conducts a sustainable business management, constantly striving for technological leadership and improving levels of efficiency. MISSION VISION VALUES Develop infrastructure and services complex projects to improve the quality of life of the general public, provide personal and professional opportunities of development to our employees and generate value for our clients, partners and shareholders. Become a leading international and reference Group, undertaking innovative, high value projects, growing on a sustainable and profitable way and respecting the environment. Team spirit, excellence, innovation, adaptability and integrity 3
GROUP OVERVIEW Milestones FOUNDATION YEAR CONSTRUCTION ACTIVITY 1986 1996 2000 2002 2004 2006 2009 2013 Change corporate Name 2014 2015 Panama Canal expansion inauguration Derivatives over 50 M Repsol shares 2016 First concession awarded in Chile Acquisition Somague (27%) *100% - 2004 Acquisition of Real Estate Business Public Services Business + SUFI Stake Repsol 84.08% of Itínere sold Awarded Panama Canal expansion contract Birth of Sacyr Concesiones Exit from housing Business Enhancement capital structure Testa divestment Sacyr Industrial Sacyr Fluor / Sacyr Nervión / Isotrón 4
GROUP OVERVIEW INVESTMENT CONSTRUCTION Focused on construction activities including: Civil Works Buildings Hydro projects Turnkey/EPC Top technological capacity International activity reaching 84% of the total CONCESSIONS Diversified infrastructure portfolio: Different industries Diverse geographic markets Combination of mature assets and concessions with upside potential 35 assets 26 years average remaining life High growth potential and increasing value SERVICES Focused on public services concessions: Water, Environmental and Multiservices Stable and cash generator activity for the long run Solid portfolio of contracts Track record Improving earnings and margins INDUSTRIAL Focused on EPC projects related to energy, waste treatment and water: Core-business with potential upside JV with Fluor Highest technological capabilities +100 power plants +100 water plants 8.2% interest in Repsol Large potential of upside & synergies 5
GROUP OVERVIEW SCENARIO SOLID BUSINESS TOP QUALITY ASSETS SOLID SHAREHOLDER STRUCTURE FOCUS ON CORE BUSINESS WITH HIGH TECHNICAL EXPERTISE STRONG INTERNATIONAL EXPANSION PROCESS : NEW MARKETS ( USA OTHERS) STRONG DEVELOPMENT OF CONCESSIONS AND INDUSTRIAL CONSTRUCTION AREAS LEAN CORPORATE STRUCTURES AND PROFITABILITY TARGET OF TOTAL CORPORATE DEBT REDUCTION MOVING FROM A BIG COMPANY TO GREAT COMPANY Present in more than 25 countries with more than 26,000* employees The 6th largest company in the world in management and operation of infrastructure** *Global average workforce ** Source: Public Works Financing, October 2016. 6
GROUP OVERVIEW 26 bn total backlog 52% international Backlog INTERNATIONAL PORTFOLIO Concessions Services Construction Industrial Note: The backlog at 31 Dec. 2016 does not include the concessions Roma-Latina (Italy) and Mar 1 (Colombia), that are accounted using the equity method. 7
GROUP OVERVIEW Sacyr has strong international presence with increasing margins Key figures KEY FINANCIALS REVENUES BREAKDOWN (2016) million 2015 2016 Backlog 26,845 25,956 Revenues 2,949 2,860 International 54% 52% EBIT 148 208 EBITDA 318 360 EBITDA margin 10.8% 12.6% Workforce globally** 29,027 26,384 ORIGIN OF REVENUES (2016) Construction Services Concessions Industrial EBITDA BREAKDOWN (2016) Note: Amounts restated by applying IFRS 11 **Global average workforce 8
GROUP OVERVIEW STRATEGY BASED ON: Diversification Control risks Strategy Self perfomance 2020 SCALE Sustainable positioning with respect to mayor competitors Growing internationalization FOCUS Specialization in priory businesses International growth with local presence in selected number of regions/countries SUSTAINABILITY Eliminating of corporate debt Diversification of financing sources 9
GROUP OVERVIEW SOUND STRATEGIC GUIDELINES FOR BUSINESS Strategy CONSTRUCTION International reference in major projects International growth focused on Latin and North America and the Middle East Combination of organic growth, partnerships and M&A growth in North America (partnership with Manhattan Construction Group) CONCESSIONS Engine for growth and stability Greenfield investments with focus on Latin America and North America Rotation of mature assets INDUSTRIAL SERVICES New strategic commitment Combination of synergies Strong development in the sector with focus on the Oil & Gas, Energy and grids segments and the regions of Latin America, North America and Middle East Capacity building through a combination of organic growth, partnerships and acquisitions JV with Fluor Infrastructure maintenance: increasing capacities/specialization and gaining scale Environmental and Facilities Management: developing organically in Spain and exploring internationalization through the oil spill model Water: in Latin America, North America and the Middle East 10
GROUP OVERVIEW BUSINESS AREAS INVESTMENTS SOCIAL RESPONSIBILITY 11
CONSTRUCTION ESTABLISHED IN 1986 Sacyr Construcción is a leading infrastructure company encompassing all kind of infrastructure projects (civil works, highways, metro and railway projects, buildings, airports, ports and hydro) worldwide. Sacyr Construcción has always upheld such principles as meeting deadlines, promoting innovation and internationalization of the construction business, building with high standards of safety and quality and respecting the environment. million 2016 REVENUE 1,250 EBITDA 58 EBITDA / REVENUE 4.6% million 2016 BACKLOG 4,131 Spain 16% International 84% 12
BY COUNTRIES 4 billion CONSTRUCTION Backlog 2016 EUROPE 39% AMERICA 43% AFRICA 15% ASIA 3% Italy 18% Spain 16% Colombia 16% Chile 15% Angola 14% Others 4% Peru 3% Qatar 3% Brazil 3% Portugal 3% Mexico 3% U.K. 1% Uruguay 1% Highways 53% Non residential building 23% Urbanizations 4% Railways 12% Focus on civil works (86% of total activity) Focus on high technological and added value works, 84% in foreign markets Consolidated experience on highly technical works Steady margins Hidraulic works 3% Residential building 1% Airports 2% Others 2% 13
SPAIN Expansion of Madrid Barajas International Airport - Terminal 4 Madrid-Barcelona-French border high-speed rail. Sants-La Sagrera tunnel Basque Country high-speed rail Extension of line 9 of the Madrid Tube System Las Pedrizas motorway Metropol Parasol COLOMBIA Pumarejo Bridge Corridor 5 motorway Mar 1 motorway QATAR Urbanization of QEZ-1 inras Bufontas PORTUGAL Foz de Tua dam New hospital in Braga BRAZIL Sao Paulo s tube PANAMA Expansion of the Panama Canal. Third set of locks CONSTRUCTION Latest milestones CHILE Americo Vespucio Oriente urban motorway Access motorway to the city of Iquique Antofagasta Hospital MEXICO First stretch Line 3 of Light rail Guadalajara Querétaro Hospital ITALY Toll motorway: Pedemontana-Veneta Roma-Latina Salerno-Reggio Calabria motorway 14
CONCESSIONS Throughout its 20 year track record, Sacyr Concesiones has proven its expertise and technical know-how, as well as its financial capacity with committed global investment amounting to 25 billion euros. Specialized in greenfield projects in which it handles design, financing, construction and management of infrastructure assets. This global business concept, combined with an active project management, allows the company to bring added value to its concessions, thereby attracting the participation of strong financial partners. million 2016 REVENUE 552 Construction 243 Concessions 309 EBITDA 207 EBITDA / REVENUE 66.8% million 2016 BACKLOG 12,926 Spain 5,284 International 7,642 KM 3,605 Hospital beds 2,263 15
Toll Roads Shadow & Availab. Payments Roads Hospitals Transport Hubs CONCESSIONS MIX CONSTRUCTION/OPERATION: 35 ASSETS IN 9 DIFFERENT COUNTRIES 24 assets in operation Young assets with an average remaining life of 26 years Stake in Itinere (6 roads in operation) 10* 7 2 2 1 3 1 2 6 1 3 1 1 1 20* 13 6 2 Vial Montes de María (100%) Desarrollo Vial al Mar (37.5%) Vial Unión del Sur (60%) Vial Sierra Norte (67%) 11 assets under construction Investment under management exceeds 14,8 billion Valles del Desierto (60%) Rutas del Desierto (51%) Valles del Bío Bío (51%) Ruta del Algarrobo (51%) Ruta del Limarí (51%) Vespucio Oriente (50%) Hospital Antofagasta (70%) N6 (45%) Pedemontana (49%) Roma Latina (49%) H. Vilafranca (1%) H. Braga (1%) H. Haçor (1%) Brisal (5%) Rutas 2 y 7 (60%) Corredor Vial 21 y 24 (51%) Aunor (51%) Viastur (70%) Palma-Manacor (40%) Turia (45%) Barbanza (100%) Eresma (80%) Arlanzón (55%) H. Parla (51%) H. Noroeste (51%) Int. Plaza Elíptica (51%) Int. Moncloa (51%) Guadalmedina (40%) Madrid Sur (35%) Madrid-Levante (40%) Accesos de Madrid (25%) Itinere (15 %): Audasa (100%) AP-1 Europistas (100%) Aucalsa (100%) Audenasa (50%) Aut. de Galicia (100%) Acega (18%) * Note: Includes 6 toll roads of Itinere in Spain 16
CONCESSIONS LATEST MILESTONES UNDERTAKEN Under construction: Three roads in Colombia and one road in Uruguay Investment: 2,1 billion euro Pedemontana Veneta motorway, Italy Investment: 2,5 billion euro Américo Vespucio Oriente motorway, Chile Investment: 861 million euro Section 11 of Longitudinal de la Sierra 2 road, Peru Investment: 343 million euro Concepción-Cabrero motorway, Chile Investment: 338 million euro Operating: Commissioning of Braga Hospital, Portugal Capacity: 705 beds Guadalmedina motorway, Malaga, Spain Operation: 28 km Commissioning of three motorways, Chile: Vallenar-Caldera, Accesos a Iquique and Rutas del Algarrobo. Total investment: 719 million euros 17
INDUSTRIAL Sacyr Industrial is the result of the integration of the Sacyr Group s different companies and specialized areas devoted to engineering and industrial construction activities: mm 2016 REVENUE 400 EBITDA 30 EBITDA /REVENUE 7.5% ELECTRICAL INFRAESTRUCTURES ENERGY & INDUSTRY OIL & GAS Power transmission lines of up to 400 KV. Outdoor electrical subestations and GIS up to 400 KV. Installations in low, medium and high voltage. Instrumentation and industrial control. CADA systems, communications and remote control. Assemblies and special services, including live-line working. Conventional and renewable generation Plants. Cogeneration and trigeneration Plants. Development and operation of renewable energy plants, including Biomass, Wind Energy and Solar Thermoelectric Power. EPC of process and industrial plants. Operation and maintenance of power plants and industrial installations. Pipelines, gas pipelines Oil & Gas pipelines, and compression stations. Gas treatment and fractionation plants. Liquefaction, regasification and storage of NG. Refineries and petrochemical industry. Biofuels. 18
INDUSTRIAL ENVIRONMENT & MINING WATER Waste energy recovery, including landfill de-gasification, incineration and biomethanization. Sewage sludge treatment plants. Urban waste treatment and recycling plants in all technologies. Infrastructure, auxiliary systems and process plants for the mining industry. Desalination of brackish and seawater through Reverse Osmosis (RO) and Reverse Electrodialysis (RED) technologies. Treatment of drinking and waste water. Purification and reuse: tertiary treatment of urban and industrial wastewater. Process water and treatment of industrial waste. Zero Spill. Sacyr Industrial is engaged in intense commercial activity with a view to penetrating new markets, especially Latin America (Mexico, Colombia, Panama, Peru, Bolivia, Ecuador, Chile) and Middle East (Oman, Qatar and UAE) 19
INDUSTRIAL MAIN FIGURES Engineering Department with over 150 specialized technicians Own technological processes for waste treatment International reference in the field of treatment and waste recovery International reference in cogeneration and biomass Over 40 designed and built plants in the waste treatment area References for over 900 MW in generation and cogeneration Over 100 MW installed in waste energy recovery Over 170 technicians specialized in operation and maintenance of plants Operation of over 150 MW in generation plants Over 100 water treatment plants. Latest milestones: strategic acquisition 50% Fluor S.A. EPC Projects. Sacyr Nervión: maintenance of industrial facilities. Isotrón: Electrical power generation and transmission EPC. Sadyt: integration of EPC activity in Sacyr Industrial's water projects. 20
SERVICES Established in 2004, when Sacyr decides to create an independent area focused on environmental services, full water cycle and other related activities. Valoriza develops a wide range of businesses, permanently focused on providing a complete service for its clients and meeting all their needs. ENVIRONMENT MUNICIPAL SERVICES WASTE TREATMENT ENVIRONMENTAL WORKS WATER FULL WATER CYCLE WATER TREATMENT PLANTS MULTISERVICES FACILITY MANAGEMENT HOME ASSISTANCE CATERING INFRASTRUCTURE CONSERVATION MINING million 2016 REVENUE 908 Environmental 347 Water 167 Multi-services 391 EBITDA 76 EBITDA / REVENUE 8.4% 21
SERVICES MULTISERVICES STRATEGY Local growth in Spain with emphasis on added-value services. Internationalization by taking advantage of the presence of other group companies in different countries. Also by agreements with local partners. Valoriza Facilities: top 10 in facility services (facility management, cleaning, comprehensive facility maintenance, energy services and support services). 1st operator of integrated FM services contracts in the hospital sector Valoriza Servicios a la Dependencia (Care Services): top 5 social services (telecare, domestic assistance services, residential services). More than 30,000 people cared for by over 7000 workers. Home-help in more than 30 towns (9 provincial capitals, including Madrid and Barcelona). Valoriza Conservación de Infraestructuras: 5th operator in Spain by revenue in infrastructure maintenance, with over 6000 km of roads maintained. In Chile, the largest conservation company with the MOPT: 667 km of highways and 1159 km of conventional roads. Cafestore: 3rd largest highway food services operator in Spain. It also manages catering and food services in hospitals, nursing homes and official bodies, covering more than 4 million customers a year. Valoriza Minería: mining projects in Spain, mostly in copper, gold, tin, lithium and tungsten deposits. 22
SERVICES WATER +100 Reverse Osmosis plants Big BOT projects in Algeria Construction of the biggest EDR plant in the world Construction of two of the most important UF plants in the world (Australia and Israel) Full-cycle management; 9.6 million inhabitants in 6 countries: Treatment, purification, recycling 8th company in the world by contracted desalinated water capacity (2006-2016)*: production above 2.15 million m3/day, serving more than 14 million people a day STRATEGY Focus on desalination plants in foreign markets and water treatment plants with high tech qualification requirements. Desalination for mining in Peru, Chile and Australia. Stable alliances to establish local companies in Saudi Arabia, Oman and Qatar. Studying market opportunities in USA. ENVIRONMENT Street cleaning and waste collection +400 districts Green Areas + 20 cities Parking and mobility +100,000 places Waste treatment plants management +34 Attended citizens 6 Mn STRATEGY Local growth in Spain by improving the number of projects and expanding the activities portfolio. Internationalization by taking advantage of the presence of other group companies in different countries and creating synergies with Sacyr Industrial. * Ranking Global Water Intelligence 2006-2016 23
GROUP OVERVIEW BUSINESS AREAS INVESTMENTS SOCIAL RESPONSIBILITY 24
INVESTMENTS SACYR AS REFERENCIAL SHAREHOLDER OF REPSOL Sacyr is the second-largest shareholder in Repsol (2 Board members). Significant synergies. High profit potential. REPSOL BOARD MAIN SHAREHOLDERS % CAIXABANK 9.84% SACYR 8.20% TEMASEK 4.77% MAIN FIGURES million 2016 EBITDA 5,226 CAPITALIZATION 19,660 NET PROFIT 1,736 25
INVESTMENTS GROUP OVERVIEW BUSINESS AREAS INVESTMENTS SOCIAL RESPONSIBILITY 26
SOCIAL RESPONSIBILITY LOOKING FOR THE MOST VALUABLE STANDARDS Sacyr has developed a structure of responsibilities designed to definitively implant a model of responsible management and extend it across all levels of the organization, with the ultimate aim of making corporate responsibility a central element of all management decisions. As the company s most senior governing body, the Board of Directors is ultimately responsible for defining, promoting and overseeing the group s Corporate Social Responsibility strategy. There is also a Corporate Responsibility Working Group, comprising of one representative from each business area and one representative from each of the corporate departments most directly involved in ensuring the company s responsible management. The working group is coordinated by a dedicated Corporate Responsibility Department, which reports directly to the Board. 27
SOCIAL RESPONSIBILITY Disclaimer Sacyr, S.A. and its company group ("the Sacyr Group") is the exclusive owner of this document. This document may not be copied, distributed, divulged or published without the prior express consent of the Sacyr Group. This document does not constitute an offer or invitation to purchase or subscribe for shares under current legislation on the securities market. This document contains forward-looking statements, which may include statements as to our present intention, belief or expectations about the Sacyr Group and its management, including statements regarding trends that are affected by general economic conditions, financial ratios, the results of operations, businesses, strategies, foreign markets, cost savings, investments or dividends. These statements do not constitute assurances regarding future performance, prices, margins, exchange rates or other events, and are subject to material risks, uncertainties, changes and other factors that are beyond the control of the Sacyr Group or that are difficult to predict. The Sacyr Group undertakes no obligation to update publicly or revise the forward-looking statements, even where changes in circumstances suggest changes to projections, conditions, or future events, including, inter alia, changes in the Company's business or in its business development strategy. The contents of this disclaimer must be borne in mind by any person or entity handling this document who may be in charge of decisionmaking and investment. Any such person is invited to consult the documents and public information reported or filed by the Sacyr Group with the major securities markets supervisory bodies, in particular, Spain's Comisión Nacional del Mercado de Valores. The information contained in this document has not been reviewed by the auditors of the Sacyr Group. Therefore, the information is not final, and may be modified in future. 28
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