2015 Overview Infrastructure

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Asher Thornton
5 years ago
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1 Third Quarter

2 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 events. Such forward-looking statements are subject to various risks and uncertainties and may differ materially from actual results or events due to important factors such as changes in general economic, business or political or other conditions in Mexico, Latin America or elsewhere, changes in capital markets in general that may affect policies or attitudes towards lending to Mexico or Mexican companies, changes in tax and other laws affecting ICA s businesses, increased costs, unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms and other factors set forth in ICA s most recent filing on Form 20-F and in any filing or submission ICA has made with the SEC subsequent to its most recent filing on Form 20-F. All forward-looking statements are based on information available to ICA on the date hereof, and ICA assumes no obligation to update such statements. 2

2015 Overview Infrastructure Highlights Infrastructure investment still very much on the upswing: EPN sexenio: infrastructure investment target 5.5% of GDP, under FCH it was 4.

3 2015 Overview Infrastructure Highlights Infrastructure investment still very much on the upswing: EPN sexenio: infrastructure investment target 5.5% of GDP, under FCH it was 4.5% and under VFQ it was 3.5% Consensus private sector estimates for growth in 2015 are 3-3.5%, with consumer price inflation of %. Strong U.S. growth perspective always helps Mexico Current Mexican infrastructure plan anticipates 37% private capital in sectors of transportation 58%, Energy 28%, Water Projects 12%, Health 2%, Housing 47% & Tourism 62% National Infrastructure Plan Historical Backlog Sector US$ bn Source of Funding Public (%) Private (%) ICA to Benefit Energy Fluor Urban Development Construction Transport & Communications Airports & Concessions Water Construction Tourism Construction Health Construction Total Source: National Infrastructure Plan. ICA Fluor International National 3

4 Segment Data Summary 3Q14 selected financing and LTM figures Consolidated Highlights Revenues in 3Q 2014 increased 13% to Ps.8,752 million, driven mainly by Concessions and Airports revenues Increase in the Concessions segment are mainly attributed to the revenues of the FCG, Mitla- Tehuantepec and Barranca Larga Ventanilla projects Adjusted EBITDA increased 51% to Ps.1,501 million in 3Q 2014 Such performance is the Concessions result of the Concessions business growth and the expansion in Construction margins Operating income also increased significantly, growing 48% in 3Q 2014 Construction Airports 4

Construction 3Q14 selected financing and LTM figures Construction Business

includes several operating construction subsidiaries.

the following areas: Heavy Highways and Bridges Hydroelectric Tunnels Ports

Transport Prefab Social Infrastructure Mining *Non consolidated Revenues and

5 Construction 3Q14 selected financing and LTM figures Construction Business Model Our Construction Business Unit was established in 1947, and today includes several operating construction subsidiaries. Through Construction, ICA is able to build large scale, complex projects in the following areas: Heavy Highways and Bridges Hydroelectric Tunnels Ports and Water Ports and Airports Water Treatment Aqueducts Urban Buildings and Transport Prefab Social Infrastructure Mining *Non consolidated Revenues and Adjusted EBITDA Backlog Composition Backlog and months of execution Debt and Leverage (Net Debt/ Adjusted EBITDA 5

ICA Fluor 3Q14 selected financing and LTM figures Largest Mexican EPC company Joint Venture between ICA and Fluor Corporation (50%/50%) 21 years of operations and over 190 projects executed.

Current Projects Gas Pipelines Ethylene Complex Titanium Dioxide VCM plant revamp Clean Fuels (refining) Steel Mill Copper Mines Drilling Platforms Gas Processing Power Plants Modular Fabrication

Scheme Previous Law Energy Reform IPP Self-supply Cogeneration Small producer Can only sell power to CFE; award based on international bid tenders.

6 ICA Fluor 3Q14 selected financing and LTM figures Largest Mexican EPC company Joint Venture between ICA and Fluor Corporation (50%/50%) 21 years of operations and over 190 projects executed. Involved in full project life cycle scope: FEL/FEED, Engineering, Procurement, Module Fabrication, Construction, Start up, Operation and Maintenance. Current Projects Gas Pipelines Ethylene Complex Titanium Dioxide VCM plant revamp Clean Fuels (refining) Steel Mill Copper Mines Drilling Platforms Gas Processing Power Plants Modular Fabrication Current situation within the power generation sector Highly distorted electricity tariffs Limited participation of power sector Slow transition to clean power generation Revenues and Adjusted EBITDA Scheme Previous Law Energy Reform IPP Self-supply Cogeneration Small producer Can only sell power to CFE; award based on international bid tenders. Joint venture between a developer/investor and power consumers. Efficient cogeneration brings advantages to owners. Can only sell a maximum capacity of 30MW to CFE. Sell to third parties without restrictions; established IPPs will be able to expand their facilities. Sell to third parties without restrictions. No changes expected. Sell to third parties without restrictions. Backlog and months of execution Debt ICA Fluor s debt was Ps. 1,023 mm of revolving working capital lines. The company has no long term debt. 6

Concessions 3Q14 selected financing and LTM figures Since 2005, we have been continuously investing in a diversified portfolio comprised of different kind

Key Indicators: Highways in operation: 544 km Highways under construction: 367 km Highway traffic: 42,324ADT Potable water projects: 2 million people

through Project Finance structures that have limited recourse to the holding, mainly during construction stage any recourse is released at operating

7 Concessions 3Q14 selected financing and LTM figures Since 2005, we have been continuously investing in a diversified portfolio comprised of different kind of infrastructure assets. Key Indicators: Highways in operation: 544 km Highways under construction: 367 km Highway traffic: 42,324ADT Potable water projects: 2 million people served Waste water treatment: 18 million people served Average remaining life: 23+ years Debt is taken at each of the concession companies, implemented through Project Finance structures that have limited recourse to the holding, mainly during construction stage any recourse is released at operating stages. Revenues and Adjusted EBITDA Debt and Leverage (Net Debt/ Adjusted EBITDA *TUCA *MAYAB *ANESA *LIPSA *ICASAL AUNETI MITLA DIPESA TUCA2 PALMILLAS *SAQSA ACQUOS RENOVA ATVM MTY VI *PAPAGOS *SARRE Remaining Life (years) Average 23+ TEC NA

Concessions 3Q14 selected financing and LTM figures Highways 10 Water 5 Social 2 Ports 1 amounts in Ps.

[B] [C] [D]=[A]-[B]-[C] [F] = [D] x [F] TUCA Túnel de Acapulco Highway Toll 3 1996 2034 950 950 100 MAYAB Consorcio del Mayab (2) Highway Toll 296 2008 (1) 2050 5,370 4,500 870 100 870 ANESA Río de

21 2012 2054 1,896 700 1,196 100 1,196 ICASAL Río Verde - Cd.

8 Concessions 3Q14 selected financing and LTM figures Highways 10 Water 5 Social 2 Ports 1 amounts in Ps. million unless otherwise specified Highways in operation Type of Type of Length Capacity Operations Investment Subsidy Debt Equity % of ICA by ICA [kms] Asset Revenue [m 3 /s X 10 6 ] Begin End [A] [B] [C] [D]=[A]-[B]-[C] [F] = [D] x [F] TUCA Túnel de Acapulco Highway Toll MAYAB Consorcio del Mayab (2) Highway Toll (1) ,370 4, ANESA Río de los Remedios (2) Highway Toll (1) NA 5,200 3,000 2, ,200 AUNETI Nuevo Necaxa - Tihuatlán Highway Hybrid ,820 5,510 1, LIPSA Libramiento La Piedad Highway Toll , , ,196 ICASAL Río Verde - Cd. Valles Highway Hybrid ,240 2, ,476 6,266 5,611 Highways under construction MITLA Mitla - Tehuantepec Highway Hybrid ,318 7,900 1, DIPESA Barranca Larga - Ventanilla Highway Toll ,352 1,200 2,736 1, ,416 TUCA2 Escénica Alterna Highway Toll ,800 1, , ,036 PALMILLAS Palmillas - Apaseo El Grande Highway Toll ,630 5,450 4, ,180 Other projects in operation SAQSA Acueducto 2 Acqueduct PPP , , PAPAGOS CPS Sonora Social Infra PPP NA ,496 4, SARRE CPS Jalisco Social Infra PPP NA ,444 4, Other projects under construction ACQUOS El Realito Acqueduct PPP , , RENOVA Agua Prieta WTP PPP , , ATVM Atotonilco WTP PPP ,600 4,539 4, MTY VI Monterrey VI WTP PPP TEC2 Lázaro Cárdenas Port PPP NA ,015 4, ,315 4, IMPORTANT NOTES: ,100 8,050 7,483 11, (1) Indicates year of acquisition ,686 9,552 51,643 19,514 70% 13,738 (2) Asset in partial operation kilometers investment subsidy debt equity of equity ica equity All dates indicating operations start-up in the future are estimated and are subject to be delayed 8

Airports 3Q14 selected financing and LTM figures One of the highlights of our Portfolio of Assets Since

It now provides a stable cash flow source for the Company with expansion plans to increase the asset s

7 million passengers in 2014 (Record) Non-aeronautical revenue totaling 21% Additional businesses include

9 Airports 3Q14 selected financing and LTM figures One of the highlights of our Portfolio of Assets Since 2000, our subsidiary OMA has formed our airports segment. It now provides a stable cash flow source for the Company with expansion plans to increase the asset s potential. Key Indicators 13 airports 14.7 million passengers in 2014 (Record) Non-aeronautical revenue totaling 21% Additional businesses include hotel concessions and cargo hubs ICA owns the controlling stake in OMA, therefore it consolidates 100% of its financials. For more information, visit Revenues and Adjusted EBITDA Debt and Leverage (Net Debt/ Adjusted EBITDA 9

10 Debt 3Q14 selected financing and LTM figures Maturity Profile Per Segment Total Debt as of September 30th 10

11 Debt 3Q14 selected financing and LTM figures Debt Ratios 11

12 01. Cash Flow

13 Cash Flow Internal position (History and Forecasts) 13

14 Cash Flow Internal position (History and Forecasts) 14

15 02. Project Pipeline

Pipeline 2014 & 2015 Local Pipeline Highways Water Social Energy Ports

Guanajuato $2,800 Palenque- San Cristóbal Chiapas $5,000 Cancún - Tulum

Ancho Oaxaca $4,500 PTAR Vaso del Cristo Estado de México $2,970

$1,200 Hospital estatal Chihuahua $1,853 Ceresos DF D.F. $10,000 P.H. Chicoasen II Chiapas $7,000 P.

Baja California $3,250 Obra del Nuevo Puerto de Veracruz Veracruz

Mazatlán Sinaloa Mérida- Punta Venados Quintana Roo $42,000 Istmo

16 Pipeline 2014 & 2015 Local Pipeline Highways Water Social Energy Ports Trains Pachuca- Huejutla Hidalgo $1,800 Guanajuato- San Miguel Guanajuato $2,800 Palenque- San Cristóbal Chiapas $5,000 Cancún - Tulum Quintana Roo $18,134 Acc Toluca Estado de México $2,900 Acc y PTAR Paso Ancho Oaxaca $4,500 PTAR Vaso del Cristo Estado de México $2,970 Hospital ISSSTE Mérida $1,500 CETRAM POLY D.F. $1,200 Hospital estatal Chihuahua $1,853 Ceresos DF D.F. $10,000 P.H. Chicoasen II Chiapas $7,000 P.H. Las Cruces Nayarit $9,000 P.H. La Parota Guerrero $17,000 La Rumorosa Baja California $3,250 Obra del Nuevo Puerto de Veracruz Veracruz $22,000 Terminal Marítima Punta San Quintana Roo Terminal Puerto Mazatlán Sinaloa Mérida- Punta Venados Quintana Roo $42,000 Istmo Tehuantepec Oaxaca $24,296 Monterrey- Apodaca Nuevo León $25,468 $97,695 $3,565 $35,328 $144,791 $42,000 $137,294 16

Pipeline 2014 & 2015 International Pipeline Highways Water Social Energy Trains Longitudinal de la Sierra IV Perú $6,500 IP PTAR Tarma Perú $9,750 Penal de Bagua

Chontal Ecuador $3,000 Metro Lima Perú $20,000 Túnel Binacional Paso Agua Negra Chile- Argentina $10,414 Túnel Transandino Perú $2,603 Puente Yati- Bodega

17 Pipeline 2014 & 2015 International Pipeline Highways Water Social Energy Trains Longitudinal de la Sierra IV Perú $6,500 IP PTAR Tarma Perú $9,750 Penal de Bagua Perú $1,015 P.H. Chontal Ecuador $3,000 Metro Lima Perú $20,000 Túnel Binacional Paso Agua Negra Chile- Argentina $10,414 Túnel Transandino Perú $2,603 Puente Yati- Bodega Colombia $10,414 Acc Lima Perú $5,200 Presa Chilia Perú $3,254 Embalse Chironta Chile $1,015 Presa Punilla Chile $7,160 Hospital Hipólito Perú $1,888 Centro Penitenciario Canadá Guatemala $1,041 Metro Quito Ecuador $20,000 Extensión Metro Santiago Chile Metro Bogotá Colombia $110,851 $20,189 $6,246 $6,578 $26,300 17

18 03. Business Model

19 Business model Summary As an Infrastructure Developer, ICA is involved in all stages of a project delivery process: Added value is achieved through all stages of the Circle of Value 1. Promotion Feasibility Analysis Modeling Design 2. Structuring and Financing Legal Framework Technical Deployment Financing 3. Construction Execution Quality 4. Operation Growth Efficiency 5. Portfolio Management Refinancing M&A Structuring and Financing Cash flow (for investment ) Promotion Construction Operation ICA s Business Model provides for long-term growth while capturing value during short-term Portfolio Management 19

Stages Business model Within the company s development of a project,

Investment for Growth Construction companies provide the required cash

cash flow to the company Backlog from major maintenance and additional

20 Stages Business model Within the company s development of a project, different stages can be identified: 1. Investment for Growth Construction companies provide the required cash flow for investing in the development of an asset Backlog is provided by the construction of the asset 2. Operation and Maintenance Projects in operating stages provide EBITDA and cash flow to the company Backlog from major maintenance and additional investments is provided Cash flow (for investment ) 3. Portfolio Management Cashflow is provided by capital recycling transactions Refinancing Alliances Sale of assets 20

5% of GDP in 2018 RENOVA AQUOS ATVM Construction MITLA OAXACA Cash flow (for investment ) PALMILLAS TEC II TUCA II Diversified

21 Business model Large & Diversified Portfolio of Assets Structuring and Financing MTY VI Promotion Government estimates that investment in infrastructure may reach up to 5.5% of GDP in 2018 RENOVA AQUOS ATVM Construction MITLA OAXACA Cash flow (for investment ) PALMILLAS TEC II TUCA II Diversified portfolio of assets By Industry By Geography By Stage of development and maturity Operation and Growth SAQSA ANESA LIPSA ICASAL AUNETI MAYAB Portfolio Management PROACTIVA OMA SARRE PAPAGOS TUCA HIGHWAYS AIRPORTS WATER PRISONS PORTS 21

Consolidated Q15LTM 38,122 35,658 35,798 34,259 29,556 17% 6,138 15% 5,090 10% 3,742 16% 4,735

Consolidated Q15LTM 38,122 35,658 35,798 34,259 29,556 17% 6,138 15% 5,090 10% 3,742 16% 4,735 73% Revenue 14% 13% Construction Concessions Airports 8% 42% 50% Consolidated 2011 2012 2013 2014 2Q15LTM Backlog 2011 2012 2013 2014 2Q15 LTM Civil Mining Industrial * Other JVs Months 34,259 35,319 25,029