Infrastructure in Mexico

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1 Infrastructure in Mexico Alonso Quintana Chief Financial Officer Empresas ICA, S.A.B. de C.V. Mexico City February 16, 2010

2 National Infrastructure Plan : Requirements and Goals by Sector Sector Investment US$ billion % of Total Highways Featured Goals for 2012 Build and modernize 17,600 kms Railroads Build 1,418 kms Ports Airports Telecommunications Water and Sewerage Electricity Hydrocarbons Build five new ports and modernize 22 Build three new airports and increase capacity in 31 Fixed and mobile line coverage. Increase internet usage. Coverage: potable water 92% and sewerage 88%. Increase generation capacity to 6.8 gigawatts. Oil production 2.5 mbpd, Increase natural gas production. Increase refinery capacity. Total % Source: Ministry of Finance, Nov

3 National Infrastructure Plan as % of GDP Based on government estimates, total infrastructure spending will increase approximately 8% in peso terms, an equivalent to 5% of Mexico s 2010 GDP. 5% 4.8% 5.0% 5.0% 4% 3.2% 3.2% 3.1% 3.5% 3.6% 3.9% 4.0% 4.1% 3% 2% 1% 0% e 2010e Source: Ministry of Finance, Nov

4 National Infrastructure Plan : Progress Sector US$ billion NIP Progress as of Nov To be invested US$ billion ( ) Highways % 15.7 Railroads % 2.5 Ports % 4.7 Airports % 4.6 Telecommunications % 18.4 Water and Sewerage % 10.9 Electricity % 23.1 Hydrocarbons % 59.7 Total % Source: Ministry of Finance, Nov

5 ICA Overview Construction Infrastructure Civil Industrial Airports Concessions Housing Mexico s Largest Construction and Infrastructure Company Highest construction backlog in history Revenues LTM (as of 3Q09) Ps billion Ps billion > 2.8x historical average 2009 performance strong +41% Revenue growth 14.1% EBITDA Margin 5

6 Dynamic Growth 50,000 40,000 30,000 12,000 Quarterly revenue (Ps. mm) Backlog Quarterly revenue 10,000 8,000 6,000 4,000 2,000 - (Ps. mm) 20,000 10,000-6 I-92 I-93 I-94 I-95 Backlog I-96 I-97 I-98 I-99 I-00 I-01 I-02 I-03 I-04 I-05 I-06 I-07 I-08 I-09

7 Formula for success Execution + New backlog + Strategic positioning = An exceptional 2009 and a strong outlook for Empresas ICA 7

8 Strategic Transactions Raised US$221mm in new equity Resources to continue to invest in new infrastructure, civil construction, and housing Keeps solid capital structure 8

9 Strategic Transactions Acquired Cotrisa Adds expertise in water, tunneling projects Strengthens competitive bidding position 9

10 Strategic Transactions Acquired control of Viabilis (Rio de los Remedios tollroad) Control of board and management Ability to continue to support this high profile project 10

11 Strategic Transactions RCO (Farac 1) recapitalized Taps pension funds LT capital Lower leverage aligns with market conditions 11

12 Strategic Transactions Investment in Casaflex ICA s home factory is one of a kind in Latam. 12

13 Financial Summary Revenues (Ps. billion) Adjusted EBITDA Margin % % 10.7% 10.9% 10.0% 9.5% 14.7% 13.7% M08 9M M08 9M09 Adjusted EBITDA includes interest expense in cost of sales 13

14 Income Statement (Ps. million) 9M08 9M09 % Revenues 18,109 25, Operating Income 1,263 2, Operating Margin % Adj. EBITDA 2,178 3, Adj. EBITDA Margin Integral Financing Cost Taxes Net Income tr 2008 Minority Interest (5) Majority Interest Revenues Adj. EBITDA Concessions 6% Airports 5% Housing 6% Airportss 26% Civil 34% Rodio 5% Concessions 20% Civil Industrial 53% 25% Housing 4% 9M09 Rodio 3% 9M09 Industrial 13% 14

15 Construction (Ps. million) Revenues % EBIT % EBITDA % EBITDA Margin Construction 21,277 48% 1, % 1, % 7.0% Civil Construction Industrial Construction 13,598 82% % 1, % 7.5% 6,383 11% % % 5.9% Rodio 1,296 10% % 92 40% 7.1% Main projects under construction: Civil Construction La Yesca hydroelectric project RCO Modernization Rio de los Remedios Ecatepec Toll Road Rio Verde- Cd. Valles Highway Industrial Construction Chicontepec II Minatitlan II oil field services Dos Bocas terminal refinery reconfiguration 18

16 Backlog 3Q09 Current Backlog Termination Date Total Contract Amount (mdp) Project Progress (%) Clients Civil Construction 69% 32,309 Line 12 Mexico City Subway 6,556 4Q11 7, La Yesca Hydroelectric Project 5,037 2Q12 9, Eastern Outlet Tunnel 4,570 2Q12 4,901 7 Rio de los Remedios Ecatepec Highway 3,271 1Q11 5, Nuevo Necaxa - Tihuatlán Highway 2,193 2Q11 2, Rio Verde - Ciudad Valles Highway 1,709 2Q10 2, Agua Prieta Water treatment plant 1,329 4Q12 1,329 - La Piedad Bypass 1,312 1Q11 1,312 - El Realito Aqueduct 1,106 1Q12 1,106 - México - Pachuca Highway 646 4Q11 1, Zacatecas General Hospital 623 2Q Other Civil Projects 3,956 Industrial Construction 30% 13,777 Madero Clean Gazoline Plant 4,977 3Q12 4,977 - Cadereyta Clean Gazoline Plant 3,607 3Q12 3,607 - Poza Rica Criogenic Plant 3,425 3Q11 3,520 3 Chicontepec II Oil Field, Veracruz 919 4Q11 1, Dos Bocas - Crude oil dehydration plant 146 4Q Other Industrial Projects 704 Rodio 1% 466 Projects in Spain, Moroco and Central America 466 Private Concessions Abroad 4% 12% 9M-09 84% Location 1% 9M-09 Public Total 46,552 New awards during 4Q09: Atotonilco* and PAC 4 (Panama) * Project awarded to ICA consortium, but contract not yet signed. Mexico 99% 16

Hospitals State, IMSS and ISSSTE Rail Cd.

17 Civil Construction Pipeline Water Arcediano Dam Valley of Mexico Sanitation Highways Maintenance and Conservation Hospitals State, IMSS and ISSSTE Rail Cd. Juarez, Chiapas-Mayab, Córdoba Other Prisons Buildings Bicentenary Park in Azcapotzalco 17

18 Industrial Construction Pipeline Pemex Platforms Clean fuels and diesel gasoline packages Ethylene plant, cogeneration. New refinery Pipelines CFE Power Generation Plants 18

19 Infrastructure Concessions Revenues % EBIT % Adj EBITDA % EBITDA Margin Concessions 1, % 14 Concessions: Project Term Period Operating Highways Tollroads Highways Tollroads Under construction Water Projects Acapulco Tunnel 2034 Corredor Sur 2029 Farac Del Mayab 2020 Irapuato La Piedad 2025 Queretaro Irapuato 2026 Rio Verde Cd. Valles 2027 La Piedad bypass 2039 Rio de los Remedios 2056 N. Necaxa Tihuatlan 2037 Cd. Acuña 2020 Aqueduct El Realito 2034 Agua Prieta

20 Concessions Pipeline PPPs Mitla- Tehuantepec Toll Roads FARAC 2 (South Pacific), FARAC 3 North SLP bypass Century XXI highway FARAC IV Cd. Valles-Tamuin Rail Suburban Light Rail Systems 2 & 3 Water Falcón Matamoros Aqueduct El Zapotillo Ports Tuxpan II Lázaro Cárdenas Punta Colonet 20

21 Airports Revenues % EBIT % EBITDA % EBITDA Margin Airports 1,414 (6) 490 (16) 792 (9) 56.1% Business Strategy: Protect aeronautical revenue 13 airports: 11.9mm passengers Develop new sources of non-aeronautical revenues T2 hotel and commercial areas (Mexico City International Airport) Monterrey Airport Improve commercial offering in terminals Control costs Investment for long-term growth Increase connectivity 21

Housing Revenues % EBIT % Adj EBITDA % EBITDA Margin Housing 1,493 8 117 14 161 (35) 7.

22 Housing Revenues % EBIT % Adj EBITDA % EBITDA Margin Housing 1, (35) 7.5% Business Strategy: Adjust mix to market conditions Entry level and affordable 22 projects in 10 states Improve efficiency Inventory reduction Shorten business cycle Improve profitability SG&A expenses reduction Maintain long term growth Units sold 8,096 7,786 5,909 5,337 4,933 4,408 2, M08 9M09 Financing: - Infonavit 74% - Fovissste 10% - Other 16% 22

23 ICA s Strategy Major growth opportunities still ahead Excellence in execution Diversification profitability and stability Prudent financial position No company is better positioned than ICA to take advantage of the opportunities in Mexican infrastructure. 23

24 IR Contacts Luciana García José Eduardo Ontiveros ext Ricardo Jimenez ext. 3672

2015 Overview Infrastructure

2015 Overview Infrastructure Third Quarter 2014 1 Important Disclaimer This presentation may contain projections or other forward-looking statements related to ICA that reflect ICA s current expectations or beliefs concerning future