OHL Construction. Works on the Jamal Abdul Nasser viaduct, in Kuwait.

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1 OHL Construction OHL Construction s activity will focus on the Home Markets defined in OHL Group s Strategic Plan: United States, Canada, Mexico, Chile, Peru, Colombia, Spain and Eastern Europe. OHL Construction increased its turnover figure by 11.6% in Its organic growth is guaranteed thanks to its huge portfolio, of 7,615 million euros, equivalent to 2.7 years of sales. Works on the Jamal Abdul Nasser viaduct, in Kuwait. 24 OHL Group Annual Report

2 Market and strategy OHL Construction ended 2014 in a position that guarantees the division s organic growth, as evidenced by the following results obtained by its orders portfolio at the end of the year: New contracts obtained over the year for 3,876 million euros. The portfolio has grown by 26.3% and currently registers 7,615 million euros, equivalent to 2.7 years of the turnover figure. Sales have performed positively, with an increase of 11.6%, up to 2,793.4 million euros. International activity -particularly in the U.S., Europe and the Middle East- has grown by 13.7% and represents 82.3% of the turnover figure. In Spain, sales have grown by 2.8%. In turn, the division s EBITDA has fallen 17.2% until reaching million euros, basically due to the completion of contracts with particularly high margins in 2013, as well as smaller margins in new projects under execution, where Home Markets have greater weight, with smaller-size works and lower margins. The existing portfolio has a clear international component (79.0% of the total) and consists of high quality and technically complex contracts, mostly linked to specialization niches where OHL is particularly strong (railways, hospitals and roads). The awards obtained during 2014 include the following: Atizapán-Atlacomulco and the Western Urban Toll Road, in Mexico, for 337 and 100 million euros, respectively. Three railway projects in Mexico: intercity México-Toluca train, Zapopán- Guadalajara-Tlaquepaque light train and the Guadalajara light train, for 457 million euros. Eastern Vespucio urban toll road and industrial bridge over the Biobío River, in Chile, for 284 and 100 million euros, respectively. Magdalena River Toll Road, in Colombia, for 399 million euros. Express lanes along the SR-826 and SR-93 and I-75, in Florida (USA), for 286 million euros. Trend in sales, EBITDA and backlog of OHL Construction* (million ) 2014 backlog by market (Total: 7,615 million ) 4,000 3,000 2,000 1, % 11.6% 7,615 2,793 2,504 6, % ,000 8,000 6,000 4,000 2,000 16% 21% 9% 2% 21% 31% Central and South America Spain USA and Canada Middle East and North Africa Central and Eastern Europe Others Sales EBITDA Backlog * 2013 restated figures. Activities of the OHL Group 25

3 OHL Construction-Position More than 100 years of experience, leading complex projects on a world scale. Competitive advantages derived from its geographical positioning and specialization in segments of high technological value. Management criteria Markets served Focus on transportation infrastructures and non-residential building construction. Specialization in segments of high technological value: railways, hospitals and unique buildings. Global management of the excellent human capital through the Central Technical Office. Preference for design and construction projects. Identification and furtherance of partnering opportunities with the rest of the divisions of the OHL Group, particularly OHL Concessions. Support on the sound financial balance of the Group and its capacity for structuring financing. Home markets Spain, Central and Eastern Europe, USA and Canada, Mexico, Colombia, Peru and Chile. A local structure of its own, OHL positioned as a local company. Recurrence and greater capillarity of projects. Markets by project Two kinds of markets: with reduced local structure (active intervention) and satellites (reactive intervention, with support provided from a country with a structure of its own). Selective intervention in unique and large-scale projects. Occasional support by local partners. Highlights North America The United States OHL has become consolidated as a reference in the U.S. and ranks among the leading companies in this country, where it commenced its activity in Florida in Since then, its business has extended to New York, Washington D.C., California and Texas and, in 2014, reached the States of Illinois, Connecticut, Maryland and Virginia. New York OHL s New York subsidiary, Judlau Contracting, ended the financial year with an excellent business outlook and a significant backlog, in which the contracts obtained for work in the New York City subway stand out. The rehabilitation of the Cortlandt Street station was completed during The station, destroyed in the 9-11 terrorist attacks in 2001, will be reconnected to the NYC subway system thanks to the work of Judlau. Also in Manhattan, construction work has continued on the 72nd Street station, located on the Second Avenue Subway line. With an estimated cost of 190 million euros, this is the first major extension of the New York City subway to be undertaken in 50 years. 26 OHL Group Annual Report

4 Construction works in the New York subway, 72 nd Street station. In addition, work has progressed on the rehabilitation of the Montague Tube, between Brooklyn and Manhattan, and on the Dyre Avenue line in the Bronx. Another outstanding project is known as the Replacement of Water Siphons, consisting of the construction of a tunnel between Staten Island and Brooklyn. The project was affected in 2012 by hurricane Sandy, which flooded the tunnel and seriously damaged the tunnel boring machine. During 2014, as agreed with the customer, all of the electrical, electronic and hydraulic systems were replaced, and the shield of the boring machine was repaired from inside the tunnel. Once this repair was finalized, the construction work on the tunnel proceeded as planned. Together with these projects, Judlau has continued the renovation of the water supply network in four Manhattan neighborhoods (Upper West Side, Midtown West, West Village and Little Italy) as well as on Chamber Street. Work for the renovation of electricity and gas lines is also in progress in these neighborhoods. With respect to new projects, Judlau has won contracts in New York worth a total of 193 million euros, including the: Rehabilitation of the Bryant Ave. bridge over the Amtrak MED 625 tracks. Construction of a new entrance to Grand Central Station. Rehabilitation of the South Ferry subway station. Washington DC, Maryland and Virginia OHL was awarded a new contract consisting of the rehabilitation of a subway station, bringing to three the number of projects under construction in the area. Illinois OHL commenced its activity in the State of Illinois, through Judlau Contracting, with the award of two new construction projects. The more significant of the two consists of the construction of an interchange for connecting I-290 and Illinois Route 39, within the scope of the Elgin O Hare Western Access (EOWA) project in Chicago. Connecticut OHL s entry into Connecticut was achieved through a contract for the rehabilitation of the New Haven-Hartford-Springfield railway corridor. The project includes the rehabilitation and expansion of the stations in the cities of Berlin, Meriden and Wallingford. Activities of the OHL Group 27

5 Florida Community Asphalt, the OHL Group s subsidiary in Florida, has been awarded several highway design and construction contracts: a section of I-75; another on I-95, in Broward County; and a third on SR-7, also in Broward County, with a fourth on State Road 951 in Collier County, worth more than 100 million euros overall. In addition, OHL Arellano has been awarded an 84 million euros contract for the expansion and renovation of the Dr. Horacio E. Oduber Hospital (HOH) in Oranjestad, capital of Aruba. Other significant contracts include the University of Miami Ambulatory Medical Center at the Coral Gables campus, for 38 million euros, and the new Miami International Medical Center, a surgical facility for international patients equipped with the most advanced medical technology, with a budget of 29 million euros. This latter subsidiary has completed the expansion of the South Miami Hospital, which has obtained LEED Gold certification, together with a safety and health award, following delivery of the 29 million euro project. OHL Arellano has also been recognized by Florida International University, where one of its Chairs has been named the OHL School of Construction, in recognition of OHL as one of the companies whose collaboration contributed to this institution s achievement of World Ahead Status. OHL Arellano is constructing the Cardiovascular Baptist Hospital Institute, in Florida. California In the State of California, OHL USA was awarded projects in 2014 worth more than 193 million euros: Expansion and remodeling of interchanges on I-405. Construction of a new bridge in Orange County. Rehabilitation of Machado Lake. Construction of the new Union/Patsauras bus station. Construction of the Fairway Drive Grade Separation. Texas OHL USA has been awarded two new projects in Texas for the reconstruction of two highway sections. 28 OHL Group Annual Report

6 Canada In Canada, OHL continued the performance of the York Spadina Subway Extension project, for the expansion of the Toronto subway. The ancillary works of the tunnels, the cut and cover sections of the Keele area, the emergency exits and the cross-passages have been completed. The project includes an interchange (Highway 407), which is the only unit pending completion; the structure is progressing at a steady pace, and the architectural and installation works for the station have commenced. The Montreal University Hospital Center (CHUM), with a budget of more than 1,460 million euros, also continues in the performance stage. The structure and the sealing-off of two of the three buildings comprising the first phase have been completed, while construction of the third building is moving ahead on schedule. OHL is also performing the electrical installation works as the construction progresses. Latin America Mexico OHL Construction has become consolidated in Mexico as a leader in the construction of transportation infrastructures, including urban expressways as well as advanced-design highways and railways. The most significant activities of OHL Construction in connection with the toll roads under concession to the OHL Group during the year were as follows: Construction of a 3.5 km four-lane stretch of the second section of the Bicentennial Viaduct, between the Manuel Ávila Camacho peripheral road, from Av. 1º de Mayo, up to Avenida Lomas Verdes. The work will be performed mainly at night, with strict safety measures in place, to minimize the impact on road users. Start of the construction work on the Atizapán-Atlacomulco toll road, which will connect the northern area of Mexico City to the city of Guadalajara. This is a landmark 74 km-long project that will run through areas of high ecological value. The 13.3 km long elevated viaduct for the Puebla bypass. In the scope of urban transportation during 2014, OHL was awarded the project for the construction of the 36.6-km-long first section of the infrastructure and stations for the Mexico City-Toluca inter-city train. The project consists of the construction of an elevated viaduct, a bridge, sections of track at grade and four passenger stations. The company also won the contract for the construction of the third section of the light rail line for the city of Guadalajara, consisting of an elevated viaduct and six passenger stations. OHL Construction has been consolidated in Mexico as a leading company in the construction of transport infrastructures, both urban roads and highly specified toll roads and railways. Colombia The work for the construction of the Medellín tram and the El Quimbo hydroelectric power plant project is progressing satisfactorily in Colombia. Peru In December, the 75 km long section 4 between Huarmey and Pativilca was completed in the framework of the Road Network No. 4 project. In addition, 25 km were paved on section 2, Chimbote-Casma, while work continued on Activities of the OHL Group 29

7 Works on the México-Toluca train (left) and the light train in Guadalajara (Mexico). section 1, the Salaverry-Chimbote Bypass. Likewise, the construction of a 185 m long pergola-type structure was completed on section 4. This is the only structure of its kind in the country and provided a solution to the interference between the Compañía Minera Antamina mine conveyor system and the road. Work finalized in December on the km long Section VII of the Ayacucho- Abancay road, which is a part of the Longitudinal Highland Road. This section, with a budget of 147 million euros, connects the Kishuara district in the province of Andahuaylas to Abancay, capital of the Department of Apurímac. In the context of mining activities, OHL has completed the massive earthworks for the facilities of the concentrator plant, the 8.3-km-long contour channels and the associated works for the Nueva Fuerabamba project, contracts awarded by the company, Glencore Xstrata, in the framework of the Las Bambas project. The Chuspiri dam - an embankment dam with a budget of 23.5 million euros- was also finalized. In addition, several contracts with the mining company, Compañía Minera Antamina, were won during the year, worth a total of 37 million euros. Chile In Chile, OHL continued work on several projects underway, such as Terminal 2 in the Port of Valparaíso, Route 60 CH, the Gustavo Fricke Hospital in Viña del Mar and Line 3 of the Santiago Metro. By the close of accounts at the end of the year, the work for upgrading Route T-85 was in its final stage, in addition to the extension of the apron at the Santiago airport and the Chacrillas Reservoir project. Together with these activities, OHL was awarded a number of highly relevant projects in 2014, including the following: The Eastern Américo Vespucio concession, Av. El Salto-Príncipe de Gales section, with a budget of 569 million euros. The Industrial Bridge concession, over the Biobío River, worth 100 million euros. The construction of the civil works for the maintenance and repair shops and train sheds on Line 6 of the Santiago Metro, worth 26 million euros. 30 OHL Group Annual Report

8 Several contracts at the Chacrillas Reservoir worth a total of 10 million euros. Spain The change in trend of the public calls for tenders in the construction sector in Spain during 2014 has enabled us to obtain 2,8% growth in sales and maintain our backlog. Although public investment continues to be affected by budgetary restraints, this change has begun to generate some space for fresh calls for tenders which, together with an upturn in the activity of private investors, make it possible to predict future growth of around 4%. Together with these more favorable forecasts for the business, 2014 has given us the satisfaction of receiving the Demarcation of Madrid Award for the Best Municipal Public Works Project in 2014, granted by the Civil Engineers Society -Colegio de Ingenieros de Caminos, Canales y Puertos-, for the construction of the Rey Juan Carlos Hospital in Móstoles. The most significant new contracts awarded during the year in Spain included: Expansion of the first phase of the Navarre Canal (47 million euros), awarded by Intiasa. Punta de Langosteira West Breakwater (14.3 million), a project tendered by the Port Authority of Corunna. Remodeling of the PWTP in Pilones (8.2 million), for Acuamed. Work on the first phase of the Canalejas Project, worth 20.8 million. Sub-sections I and II of the Eastern sector of the beltway around Seville SE- 40 (61.5 million), awarded by the Directorate General of Roads, Ministry of Development. Intakes works at the Valmayor Reservoir, in Madrid, for the Canal de Isabel II waterworks, worth 8.1 million. In 2014, OHL Construction has increased its sales in Spain by 2.8% and maintains its orders portfolio. The division expects to continue with this positive trend during Careira-Lindín section in Lugo (Autovía del Cantábrico, A-8). Activities of the OHL Group 31

9 The following contracts, among others, were obtained in the area of integrated infrastructure maintenance: Maintenance of the A-1 highway in Madrid, with a contract price of 40.7 million euros. This Ministry of Development project is the largest integrated maintenance contract tendered in Spain to date. Maintenance of several sections of the national road network in the provinces of Huesca, León and Granada for 8.3 million euros. Maintenance of several high-speed and conventional railway sections in Córdoba, north of Madrid, Zaragoza, Seville, Hornachuelos, Antequera, Brihuega and Calatayud, worth 19.8 million euros. In addition, the most significant projects completed and commissioned in 2014 include the: Algorta dock (Bilbao). La Esfinge harbor (Canary Islands). Phase Three of the La Roca Village shopping center (Barcelona). Careira-Lindin section (Lugo) of the Autovía del Cantábrico, A-8 highway. Europe, Middle East and Africa OHL has a stable presence in Europe through local subsidiaries, by means of which it performs transportation infrastructure, building construction and environmental recovery projects, among others. Central and Eastern Europe AThe OHL Group is present in the Czech Republic, Slovakia, Bulgaria, Bosnia and Herzegovina, Poland, Slovenia, Kazakhstan, Moldavia, Serbia, Croatia and Azerbaijan through its subsidiary, OHL ŽS. The following stand out among the projects completed in 2014: OHL Construction has a stable presence in Eastern Europe through the OHL ZS, Czech subsidiary, with activity in the Czech Republic, Slovakia, Bulgaria, Bosnia and Herzegovina, Poland, Slovenia, Kazakhstan, Moldavia, Serbia, Croatia and Azerbaijan through its subsidiary, OHL ŽS. Construction of 5 km of highway, with three bridges and a two-tube tunnel, on the Zvirovići-Kravice section of the Vc highway, in turn a part of the V corridor, which runs through Croatia and Bosnia Herzegovina, connecting Budapest to the city of Ploče. Rehabilitation of the Přerov railway station, in the region of Olomouc, Czech Republic. This project had commenced in Expansion and rehabilitation of the Brno sewage system in the Czech Republic. Construction of two buildings in the CSP (CEITEC Science Park, Building G) and the VPT (Science and Technology Park), with the associated civil works, in Brno, Czech Republic. In addition, work continues on a number of other projects, including the following: Rehabilitation of the Sklenénad Oslavou-Ostrovnad Oslavou railway section in the region of Vysočina, in the Czech Republic. Construction of a center specialized in biomedicine and biotechnology 32 OHL Group Annual Report

10 applications at the Campus of the Masaryk University, in Brno, Czech Republic. Modernization of the railway section between Tábor and Sudoměřice u Tábora, Czech Republic, the completion of which is scheduled for Together with the activities described above, the Group has reinforced its presence in Central Europe with the creation of a subsidiary in Moldavia, OHL ŽS MO, and the acquisition of a majority stake in the company, Tomi-Remont, specialized in construction and civil engineering. In addition ŽPSV (96.63%-owned by OH) has an outstanding presence among the suppliers of concrete products for the construction sector, focused primarily on transportation infrastructures (railways and roads). A leading byproduct of this company consists of cross and switch sleepers in pre-stressed concrete, including the prefabricated pieces as a complementary product. Poland In Poland, OHL continued work in 2014 on projects started years earlier. A particularly significant project is the tunnel under the Vistula River, as part of the connection to the seaport of Gdansk (Slovak Highway, Section IV), involving the boring of two 1,072 m long twin tunnels. A hydroshield tunnel boring machine with a m external diameter was used in this project, awarded in 2011 and with a budget of 221 million euros. Similarly, in Poznan, the work for the reconstruction of the Kaponiera Roundabout continues to move ahead, with a budget totaling 52 million euros. The purpose of the project, planned in two stages, is to reconstruct the city s main transportation hub. The Bialystok football stadium, whose construction commenced in June 2012, was inaugurated during the financial year. The stadium, with a capacity for more than 22,500 spectators, has a net floor area of more than 24,000 m², in addition to another 440,000 m³ of buildings for other uses, such as conference rooms, restaurant services, a business zone and rest areas, among others. Bialystok soccer stadium, Poland. In December, this OHL project received the Crystal Brick Award, granted by the Polish Housing Society Lublin in collaboration with the Marshal of the Voivodeship and the Construction Engineers Society of that city. The award was given in the framework of the Fourteenth Competition for the Best Investment in Construction on both sides of the Eastern Border of the EU. Activities of the OHL Group 33

11 The OHL Group received yet another recognition of its commitment to occupational risk prevention with the Build Safe Award, granted by Poland s National Work Inspection Directorate. This is one of the country s most prestigious occupational safety and health awards, which takes into consideration, among other aspects, those associated with healthcare, the provision of personal protective equipment and the maintenance of worksite accesses. Turkey In Turkey, construction continued on the Marmaray CR3 project, one of Istanbul s largest transportation infrastructures that will connect Halkalı, in Europe, and Gebze, in Asia. Saudi Arabia OHL has been participating since 2012 as the principal contractor in the performance of phase two of the Haramain High Speed Rail (HHR) project, within the Spanish-Saudi consortium Al Shoula. OHL entered fully into the performance of the project in 2013 and has confirmed its capacity in 2014 for carrying out a project of this complexity and size. The project, consisting of the construction of 450 km of high-speed rail between the cities of Mecca and Medina, the supply of rolling stock and the maintenance and operation during a period of 12 years, has a budget of approximately 6,300 million euros and employs more than 600 people. In the course of 2014, OHL has undertaken the major part of the manufacture and supply of the key materials involved in the performance of the project, such as the ballast, cable conduits, sleepers, fasteners and the track. The performance of the track and electrification work continues to move ahead at a steady pace. Evidence of this is shown by the more than 80 km of single track mounted on ballast and the 60 km of single slab track built to date. Kuwait OHL has continued the work on one of the most unique and complex infrastructure projects being performed at the present time in Kuwait: the Jamal Abdul Nasser viaduct. This urban viaduct is designed for a useful life of 100 years and to absorb the traffic estimated for the next fifty years. Rail and electrification work on the high-speed railway line between Mecca and Medina are progressing at a good pace. By late 2014, OHL had constructed 80 km of ordinary ballast rail and 60 km of ordinary plate rail. With a budget of close to 700 million euros, the infrastructure consists of a number of elevated expressways and complex structures that will enable smoother traffic flows and improve access to several of the most important buildings in the country, such as universities, hospitals and the port, among others. During 2014, the prefabricated assembled sections have been erected, and foundations have been laid, in addition to the execution of piers and diaphragms and the replacement and upgrading of utilities networks, all of which was completed without disrupting the traffic on the existing thoroughfares. 34 OHL Group Annual Report

12 Works to lay down a high-speed rail track between Mecca and Medina. Qatar In this country, OHL has continued with the project for the design and construction of what will be the two most outstanding stations in the Doha metro system: Msheireb and Education City. The project, called Major Stations, consists of the development of large-scale transfer stations between several metro lines and other transportation modes, such as long-distance railways. The Msheireb and Education City stations taken together total more than 88,000m² of built-up area. Significant technical challenges have been successfully met, such as the construction of cut-off walls of close to 40 m in depth, together with logistics hurdles to be overcome due to the location of both stations in the middle of the city. With a total budget of around 1,100 million euros, it is estimated that more than 50,000 passengers will pass through the stations daily. Construction of the Education City station, Doha subway. Algeria In Algeria, OHL s works in the project to update and split the rail line between Annaba and Ramdane Djamel, 76.2 km long, have focused during 2014 on execution of the Ras el Ma and Guessaba tunnels, the Berrajal passenger station, in Wilaya (Annaba), and the execution of various retaining walls, expropriations and withdrawal of services affected along the Wilaya de Skikda route. Activities of the OHL Group 35

13 Asia Pacific In 2014, OHL consolidated its expansion in the markets of Oceania and Southeast Asia with the opening of new headquarters in the Philippines and Singapore, new additions to those already operating in Australia and Vietnam. Vietnam During the 2014 financial year, OHL underpinned its activity in Vietnam where it was awarded two contracts for the construction of two highway sections. The overall amount of the two projects totals 81.5 million euros and, in both cases, OHL leads the consortiums formed with local companies. The first contract, financed by the Japan International Cooperation Agency, consists of the construction of a road section at Da Nang on the highway that will connect the north and south of the country. The second project consists of the construction of a m long eleven-span viaduct called the Niem 2 Bridge, for a four-lane highway providing access to the coastal city of Haiphong. This city is located 120 km to the east of Hanoi, and its port ranks as one of the most important commercial ports in Vietnam. Construction of the Niem 2 Bridge viaduct at the entry points to Haiphong (Vietnam). Australia OHL has reinforced its presence in Australia with the opening of a new office in Sydney, which joins the existing office in Brisbane. Highlights among the most significant successes in this country include the obtaining of Federal Safety Accreditation, which capacitates the OHL Group for participating in projects financed with federal funds without the obligation of collaborating with local partners, and the granting of the prestigious Annual Construction Quality Award 2014, by the Roads and Maritime Services of New South Wales in recognition of its excellent performance in the project for the upgrade of Schofields Road. 36 OHL Group Annual Report

14 OHL was awarded the following projects during the year: Upgrade of Schofields Road between Tallawong and Veron Roads (phase II). This project is part of the infrastructures for access to Badgery s Creek, the new Sydney airport. Improvement and upgrade of the Pacific Highway: Kundabung-Kempsey section: the project, worth 113 million euros, includes the construction of 14 km of highway with two lanes in each direction, a new intersection in Kundabung and newly built rest areas. In Australia, OHL Construction has obtained the Federal Safety Certification, entitling the division to participate in projects financed with federal funds without having to collaborate with local partners. Woolgoolga - Halfway Creek section: with a budget of 184 million euros, this contract consists of the upgrading of approximately 15 km of highway with two lanes in each direction. The Seventh Avenue Bridge project in Perth, Western Australia: consists of the replacement of the old timber bridge by a concrete structure spanning approximately 80 m, together with the installation of guard rails and noise barriers, lighting and accesses. Activities of the OHL Group 37