ACS Net Profit amounted to 603 million euros, an increase of 5.8% (+12.7% in comparable terms) Sales reached 25,758 million euros, increasing by 10,2% Backlog increases by 5.1% up to 65.309 million euros Net debt decreased by 48.5% in the last twelve months down to 1,416 million euros (0.6x annualized EBITDA) Grupo ACS Key operating & financial figures Euro Million 9M16 9M17 Var. Var comp* Turnover 23,371 25,758 +10.2% +9.8% EBITDA 1,513 1,712 +13.2% +12.4% EBIT 1,119 1,235 +10.4% +9.9% Attributable Net Profit* 570 603 +5.8% +12.8% Backlog 62,139 65,309 +5.1% +8.7% Total Net Debt 2,751 1,416-48.5% -55.0% * In a like to like basis, Net Profit grew by 12.7%, excluding Urbaser in 2016 Consolidated Results ACS Group sales, in the third quarter of 2017, accounted for 25,758 million euros, representing an increase of 10.2%. The positive performance in this last nine months, especially in the construction activity, which grows 15.5%, confirms the growth trend shown in the first part of the year. The geographical distribution of sales shows the broad diversification of the Group, with North America accounting for 44% of sales, Europe 20%, Australia 21%, Asia 7%, South America 6% and Africa the remaining 2%. Sales in Spain account for 13% of total sales. 1
Sales breakdown Asia Pacific 29% South America 6% Africa 1% Spain 13% Rest of Europe 7% North America 44% Backlog, at the end of the third quarter of 2017, amounted to 65,309 million euros, 5.1% higher than twelve months ago, despite US Dollar depreciation, with an equivalent sales geographical breakdown. Desglose Cartera Asia Pacífico 38% África 1% España 10% Resto de Europa 9% América del Sur 8% América del Norte 34% Total EBITDA accounted for 1,712 million euros in the third quarter of 2017, increasing 13.2% in line with the increase in production, with all activities showing good operating performance. 2
Likewise, EBIT stood at 1,235 million euros after increasing by 10.4%. Sales margin remains stable at 4.8%. The Attributable Net Profit, in the third quarter of 2017, increased by 5.8% up to 603 million euros. This growth would be of 12.7% in comparable terms, as Urbaser no longer contributes to the business after its sale in December 2016. Grupo ACS Net Profit breakdown Euro Million 9M16 9M17 Var. Var comp* Construction 220 282 +28.3% +26.2% Industrial Services 240 252 +4.7% +6.8% Services 21 30 +40.7% +7.0% Net Profit from activities 482 564 +17.0% +17.1% Discontinued Op. (Urbaser) 35 0 Corporation 53 40 TOTAL Net Profit* 570 603 +5.8% +12.8% * In a like to like basis, Net Profit grew by 12.7%, excluding Urbaser in 2016 Construction activity grew 28.3%, underpinned by the excellent performance of HOCHTIEF and its subsidiaries, whose contribution to the consolidated profit of the Group increased by 35%. Industrial Services Net profit grew 4.7% fostered by the boost of the international activity and the rebound of the Spanish market. Likewise, Net profit in Services reached 30 million euros which corresponds to Clece s contribution and the capital gains obtained from Sintax s sale, during the first quarter of 2017. The net impact of Corporation decreased by 25.9% due to lower corporate financial expenses in relation to the previous year. Financial Situation ACS Group Net Debt has substantially improved over the last quarter, decreasing in 239 million euros since June 2017 after having paid, during this period, more than 250 million euros to shareholders yield in dividends and share repurchase. 3
In September 30 th 2017, the Group s Net Debt accounted for 1,416 million euros, decreasing in 48.5% in the last twelve months, and 73% in the last four years. The Group's financial leverage stands at 0.6 times annualized EBITDA. Net Debt ( M) Net debt/ebitda annualiz. -48% During the first nine months of 2017, operating cash flow before operating working capital variations impacted by seasonality effect of the period, reached up to 1,294 million euros, improving in 13% due to the increase in operating results and a 19% decrease in net financial expenses. Total investments in ACS Group during the third quarter of 2017, including operational, financial and concessionary projects, amounted to 611 million euros, mainly in mining machinery in CIMIC and in energy assets from Cobra. Grupo ACS Net investments breakdown Euro million Investm. Disposals TOTAL Construction 396 (129) 267 Industrial Services 177 (153) 24 Services 28 (58) (31) Corporation 11 (13) (2) TOTAL 611 (353) 258 4
Total divestments reached 353 million euros, highlighting the Industrial Services renewable assets divestment worth 150 million euros, Sintax s sale worth 55 million euros, and Iridium concessions sales worth 48 million euros. Results per Area of Activity Construction Sales in Construction, in the third quarter of 2017, accounted for 19,775 million euros, showing an increase of 13% due to the strong growth of the activity in Asia Pacific (+31%), mainly in Australia, and the solid growth of the North American market (+6%), and the Spanish recovery (+7%). ACS Group international sales, in the Construction area, amounted to 18,895 million euros, which represents 96% of total sales in this area, being North America and Australia the most important markets. Domestic sales represent 4% of total. Construction EBITDA accounted for 1,197 million euros, with a margin over sales of 6.1%, after growing a 19% in line with the sales increase. Net Profit reached over 282 million euros, showing an increase of 28%. Construction Backlog, at the end of the third quarter of 2017, rose up to 54,142 million euros, 5% more than twelve months ago. International Backlog represents 95% of total in the Construction area. Amongst the most important awards of 2017, these are the most significant: - Operating and maintenance services for Melbourne suburban network (Australia) - Project for a new metro line that consists of the construction of two 15.5 Km long twin tunnels and the associated works at Sydney Harbour (Australia). - Contract for mining services in Mount Pleasant coal mine (New South Wales, Australia) 5
- Enlargement of Highway A10 and its undergrounding through Amsterdam Zuid Station (Amsterdam, Holland). - Design and construction of 7.9 Km of Singapore s sewage system and associated hydraulic facilities. - Contract for the construction of concrete gravity structures for offshore platforms for White Rose project (Canada) - Construction of the East Kowloon cultural centre in Hong Kong. - Works of enlargement of Hong Kong airport terminal 1. - Contract for full-service maintenance of different municipal facilities in Auckland (New Zeeland). - Construction of the Christchurch Convention and Exhibition Centre in New Zeeland. - Construction of 11.3 Km of ring motorway in Mackay (Queensland, Australia) - Project for the construction of the new bridge on the current NC12 road between Pea Island National Wildlife Refuge and the city of Rodanthe (North Carolina, United States) - Design, construction, finance and maintenance of 10.6 km of enlargement at Highway 427 in Ontario (Canada). - Design and construction of Northlink phase 3 which consists of a two-lane motorway between Ellenbrook and Muchea (Perth, Australia). - Modernisation works at Coolidge Senior Institute (Washington, United States). - Enlargement of M1 Pacific Motorway (New South Wales, Australia). - Construction and development of line 3 metro stations in Santiago de Chile (Chile). - Improvement works of two tunnels at Myrtle Avenue railway lines (New York, United States). - Design, construction and maintenance of four primary schools in Auckland and Hamilton (New Zeeland). - Demolition and construction of the new bridge in Bruckner Boulevard Rd. over Westchester Creek (New York, United States). - Building of a new school in Jackson Heights (New York, United States). - Construction of the residential building Schwabinger Carre II in Munich (Germany). - Construction of the new office complex Lister Drejeck in Hannover (Germany). - Construction of the new Hospital de la Policía Nacional del Perú, Lima (Peru). - Project for the improvement of Woodleigh Waterworks water treatment plants (Singapur). - Project for the enlargement and improvement of Junee prison (New South Wales, Australia). - Improvement works of highway I-95 in Miami (Florida, United States). - Enlargement of San Diego s airport terminal (California, United States). - Improvement works at Stratford Institute (Connecticut, United States). - Enlargement of Highway SH 199 in Tarrant County (Texas, United States). Industrial Services Sales in Industrial Services reached 4,936 million euros, increasing by 3%. The good evolution of the international activity that represents a 72% of total sales 6
and which shows an increase of 2.1%, goes hand in hand with the recovery of the Spanish market whose sales increased by 5.2%. EBITDA accounted for 498 million euros, showing an increase of 3%, with a margin over sales of 10.1%, stable in relation to the comparable period. Equally, Net Profit reached 252 million euros, 5% more than in the same period of 2016. Industrial Services has increased its Backlog by 7% up to 9,152 million euros, equivalent to 17 months of production, being 77% international contracts. Amongst the most important awards of the year it can be found: - Project Dolwin 6. Construction of an offshore platform for an HVDC in the North Sea (Germany). - Contract for the installation and maintenance of Santa María s and Orejana s photovoltaic plants, with an installed capacity of 166 MW and 125 MW, respectively, in Mexico. - EPC Project for the construction of Matsuzaka photovoltaic plant with an installed capacity of 100 MW (Japan). - Construction of a desalinization plant for Spence Mine in Chile. - Design, construction, operation and maintenance of Gamboa s water treatment plant (Panama). - Maintenance services for the road section between Matehuala and Saltillo in Nuevo León (Mexico). - Project for the enlargement of the potabilization capacity of General Belgrano s plant (Buenos Aires, Argentina). - Project for the optimization of drinking water supply and sewage in the Northern area of Lima (Peru). - Awarding of two contracts for the installation and maintenance of medium and low voltage networks for Enel in Liguria and Western Piamonte (Italia). - Electrical installations for Champlain s bridge (Canada). 7
- EPC Project for the construction of the hydroelectric power station of Hidromanta with an installed capacity of 19.80 MW (Peru). - Outsoucing of sales points in 6,000 Repsol s service stations (Spain). Services Services area accounted for sales of 1,067 million euros, which only corresponds to Clece, remaining practically stable in comparable terms. Services sales Rest of Europe 6% Services backlog Rest of Europe 6% Spain 94% Spain 94% EBITDA in Services accounted for 54 million euros with a margin over sales of 5.1%, similar to the previous year, excluding the impact of the logistic activity s sale. Net Profit accounted for 30 million euros, and it includes the extraordinary results of sales of different assets. Clece s Net Profit increased by 0.5%. Services Backlog reached 2,015 million euros, equivalent to 17 months of activity. Madrid, November 13 th, 2017 8