Brief description of Grupo ACS

April 2008
1

Grupo ACS

Construction

Concessions

Environment & Logistics

Industrial Services

Energy

Strategic Positioning Sustainable and profitable growth Increasing shareholders value

2

ACS: A diversified group

1983
0% International

1997
2%

30%

16% International

2007
28%

24% International
34%

Sales
100%

68%
25% 13%

Construction Concessions Environment and Logistics Industrial Services Energy

2007

0% International

6%

18% International

15%

33% International
11%

EBITDA
100%

39%

55%

60% 14%

Consolidated Results 2007

Euro Million

Main figures
Comp.Var.* +12.2%

2006 13,869 1,219

8.8%

2007 21,312 3,491

16.4%

Var. +53.7%

Turnover EBITDA
Margin

+186.4%

+13.2% 8.9%

EBIT
Margin

942
6.8%

2,487
11.7%

+163.8%

+12.1% 6.8%

Ordinary Net Profit

Margin

815
5.9%

1,010
4.7%

+23.9%

+23.9% 6.5%

Net Profit
Margin

1,250
9.0%

1,551
7.3%

+24.1%

+24.1% 10.0%

EPS
* UNF consolidated by equity method

3.58

4.51

+25.8%

+25.8%
4

Consolidated Results 2007

Euro Million

Breakdown by areas of activity

Industrial Services 5,489 1,709 31% 488 8.9% 413 7.5% 5,854 338 948 1.9x 845
+15.6 % +8.6 %

Construction 7,353 433 6% 549 7.5% 460 6.3% 12,011 389 (1,538) n.a. 176
+8.9 % +0bp +8.9 % +0bp +12.7 % +8.9 % +0.3 %

Environment & Logistics 2,835 340 12% 381 13.5% 233 8.2% 14,458 235 329 0.9x 383
+17.5 % +30bp +19.1 % +30bp +10.7 % +15.3 % +26.6 %

Energy 5,967 2,548 43% 2,111 35.4% 1,430 24.0% n.a. 1,255 9,610 4.6x 928
n.a. n.a.

Turnover International Turnover

% over total

EBITDA
Margin

+16.4 % +10bp +13.1 % -20bp +15.1 %

n.a. n.a. n.a. n.a. n.a.

EBIT
Margin

Backlog Cash Flow from Operations Total Net Debt / (Cash)

Debt / anualized EBITDA

Net Investments

(Domestic 76% - International 24%)

Sales

EBIT

Net Profit

28%

18% 34%

19% 31% 10%

57% 13% 25%

Construction Industrial Services

16% 9%
Environment & Logistics

13%
Concessions Energy

27%
5

NOTE: percentages have been calculated as the sum of the activities considered in each area

Strong cash generation capacity

Cash Flows 2007

Working capital 238 mn

Cash Flow from Operating Activities 2,123 mn

Net debt increase 2,060 mn

4,421 mn
Shareholders return 802 mn
Dividends ACS 441 mn Treasury Stock 172 mn Dividends UNF 187 mn

Net Investments
Others 216 mn
Hochtief

3,403 mn
Rest of Activities 1,265 mn 1,725 mn 1,651 mn Concessions

International Presence

Direct Presence Through Through , and

7

Strategic Positioning

Solid financial situation

Construction and Services: Sustainable growth

A diversified group Strategic management of affiliates Energy: Committed with the industry
8

Construction Activity
Sales 07: 7.353 mn
Residential Building 16% International
6%

Construction

Backlog 2007: 12,011 mn

19,000 employees

Non Residential Building 24%

Civil Works
60%

Domestic
94%

Main contractor in Spain Focused on big projects like Roads, Hydraulic, Railways, Tunneling, Bridge Building, etc. International activity: Chile, Argentina, UK, Ireland, Greece, Poland & USA

Civil Works

Residential and Non Residential Building Focus on big clients and Public-Private Partnerships Domestic activity for public clients and large realtors

Building

Key factors

Strong cash flow generation

Mature and competitive business

9

Construction: Market Leaders Construction

Civil Works 60% Building 40%
Public Budget 08: to invest 20 bn Non Residential (23%) to grow (+16%) this year backed by GDP PEIT: To invest 250 bn2020 Residential (17%): Horizon Decreasing demand International expansion: State protected developments
US Concessions Joint Ventures with Hochtief

Objectives
Maintain domestic market share in Civil Works International selective growth Risk control in Residential Building
10

Concession Development Activity Concessions

Transport Infrastructures Public Equipment (PPPs)
Attractive portfolio of concessions: 40 projects under development A World leader PFI developer over the last 15 years 1 bn invested in equity 11 bn total investment managed

Motorways (Barrier Toll, Dynamic Toll, Shadow toll), Railways Hospitals, Penitentiaries, Court Houses, Transfer Stations, Police Stations (mainly in Spain)
Grupo ACS

Value chain of the concession business

Promotion

Financing Construction

Operation

Refinancing

Extension Renovation

Greenfield model

Brownfield model

Key Factor s

Increasing global demand, specially in developed economies

Limited public budgets > opportunity for solid financial groups

Main target markets: United States, Western Europe, Chile, Asia

11

Environment and Logistics Activity

International

Environment & Logistics

Sales 07: 2,835 mn

Backlog 2007: 14,458 mn

30%

12%

Domestic
88%

Facility Management
46% 24%

75,000 employees

Ports & Logistics Services

Environmental Services

Leader in Spanish market in Waste recycling Solid Urban (SUW) and Special Waste management and treatment International business >10%, own R&D Container terminal management in the main ports of Spain Integral logistics operator: Port handling, shipping agent, land, air and sea forwarding and specialized logistics Leader in Spanish market Integrated building maintenance, gardening, reforestation and landscape restoration, social health systems, airports services

Environment Ports and Logistics Facility Management Key factors

Capital Intensive businesses, long term and recurrent

Growth via new investments and R&D

12

Environment & Logistics: Sustainable Growth Environment & Logistics

Visibility of income: Public services utility with long term contracts Growth based on our competitive advantages: Service Orientation Experience and know how Capital availability Important barriers of entry in these sectors

Objectives
Continue increasing profitability: margins improvement International expansion through treatment plants and container terminals Invest in new projects and markets
13

Industrial Services Activity

16%

International
Networks 31%

Industrial Services

Sales 07: 5,489 mn Backlog 2007: 5,854 mn

29%

Domestic
69%

Energy Projects
Specialized Products 37% 18%

37,000 employees Networks

Control Systems

Support Services

Specialized Products

Main supplier of utilities & large industrial corporations Global player in the support services market

Control Systems

Energy Projects

EPC Turn Key Projects Renewable Energy

Electricity generation projects: Power plants installment, CCGTs Oil & gas facility projects (off-shore platforms, refineries, etc) More than 1,000 MW in renewable energy assets

Key factors

High profitability and recurrence

Good growth prospects backed by energy demand

14

Industrial Services: Global Player Industrial Services

70% of sales on recurrent activities: Support Services Outstanding market perspectives and good ACS positioning Stable and profitable backlog 33% of the activity abroad Stable presence in 25 countries

Objectives
Two digit growth in the coming three years EBITDA 2010 1 bn Profitability increase Investment in renewables, energy projects and international expansion

Attractive portfolio of renewable energy assets

Asset
Wind, installed Wind, under construction Thermosolar, under construction Pipeline Wind Thermosolar

Installed Capacity1
834 MW 484 MW 150 MW 1,530 MW 250 MW

Attributable to ACS
72% 86% 83% 75% 100%
1: As of 31/12/2007

(incl. Concessions)

15

Energy: Committed with the industry

Head of the Energy activity of Grupo ACS ACS holds 45.3% of the company, which shows solid organic growth prospects in electricity and gas businesses Strategic Plan BIGGER:
EBITDA 2011 EPS 2011 Financial Ratios
2011

Strategic driver to create value through a consolidation process ACS holds a 12.4% stake in Iberdrola directly and through equity swaps

> 3.2 bn EPS 2006 x 2 = 4 /share

Leverage < 55% & Debt/EBITDA = 3x

Investment Capacity

9.0 bn

Objective

Position ACS as the industrial reference shareholder of a large electrical utility

16

Energy: Unin Fenosa Plan BIGGER

Domestic Generation Domestic Distribution

Ordinary Regime
MWs installed
CAGR +5%

Special Regime
MWs installed
CAGR +21%

GWh distributed
Growth +11%

Operating efficiency
(Opex/Gross margin)

GWh Generated
CAGR +5%

GWh Generated
CAGR +22%

Improvement 500 b.p.

7,400

9,100

30,220

38,840 322
2011e 2006

850 906
2011e 2006

2,500

36,600 33,000

43%

38%

2006

2011e

2006

2011e

CAGR EBITDA 0611e > 10% Mainly CCGT generation, 2,000 MW compromised & 4,000 planned to face market demand 1,200 MW from a new technology coal thermal power station

CAGR EBITDA 0611e > 25% Organic growth: 3 facilities under construction (67% finished, to be deployed in 2007-2009) Project portfolio under permitting stage: 1,500 MW

2006

2011e

2006

2011e

CAGR EBITDA 0611e > 8%

Gas

International Generation: MW installed

2.6x

Renewable: MW installed
2x

Gas Production
Growth +60%

Gas Sales by Customer

Growth +60%

4,800 950

1,900

1,820

8 bcm 5 bcm 5 bcm

8 bcm

2006
+500 MW CCGT in Mexico

2011e

2006
+150 MW in Mexico

2011e 2006 2011e 2006

Trading Commercial

CAGR EBITDA 0611e > 10%

Potential for additional capacity in Mexico (500 1,000 MW) Opportunities identified to increase up to other 1,500 MW in America

CAGR EBITDA 0611e > 25%

+300 MW in Colombia and Central America +250 MW in other countries Avoid the emission of more than one million CO2 tons per year

2011e
Industrial CCGT

Increase 30% the supply of gas diversifying the origins (+2 bcm) Reach 15% of Spanish market share

Source: Unin Fenosa Strategic Plan 2007 - 2011

17

Strategic management of affiliates

Global Vision, Size and Leadership

Grupo ACS maintains a strong industrial commitment for the long term with Abertis, owning a 25.8% stake of the company
European concessions leader by market cap and number of projects Straight-forward strategic vision on the development and operation of infrastructures Outstanding investment capacity

One of the top 3 Construction groups of the world, Grupo ACS holds a 30%* stake in Hochtief to partner in the international development of concessions.
Well established and reputed companies in America, Asia Pacific and Central Europe Local approach to clients all over the world

Results Contribution

Results Contribution

Equity Method No debt assigned directly to Grupo ACS

Equity Method Financed through an SPV with non recourse debt

* 4.9% through equity swaps

18

Grupo ACS debt structure as of 31st Dec 2007

Consolidated Net Debt 16.6 bn
6.9 bn Net Debt with recourse 9.7 bn Non Recourse Debt
Net Debt / EBITDA 07 = 4.7x Net Debt / Net Worth = 159%

Solid financial situation

Net Debt w/Rec / EBITDA 07 = 2.0x Net Debt w/Rec / Net Worth = 66%

Corporate LT Debt

2.3 bn

Construction, Concessions, Environment & Logistics, Industrial Services

Cash Position

SPVs for UNF, IBD & HOT

Sub. Debt

-2.3 bn

2.4 bn Non Recourse Debt

1.8 bn

6.6 bn Non Recourse Debt

UNF
Corporate Debt

5.1 bn

0.7 bn NR Debt

Debt / EBITDA = 2.8x Gearing = 105%

(7.2%)

IBD

(25.1%)

HOT

(24.8%)

ABE

Market value of listed companies over 14 bn (implicit capital gains about 3.3 bn)
19

One more year, ahead of our objectives

Objective 2007 TURNOVER ORDINARY NET PROFIT +10% 20% Real 2007 +53.7% +23.9%
Comparable*

Conclusions

+12.2% +23.9%

NET PROFIT

1,551 mn

+24.1%

CASH FLOW GENERATION 2,123 mn

NET INVESTMENTS > 3,400 mn

Operative growth, sustainable and profitable

* UNF consolidated by equity method
20

Conclusions
Good outlook for 2008 Stable and recurrent income

Operating Profitability

Concessions portfolio rotation Consolidation opportunities in strategic industries

Financial Profitability

Corporate Profitability

Shareholders Profitability
21

Grupo ACS 1997 2007 10 years of sustainable growth

Sales of Grupo ACS
( mn)

CAGR 97-07> 32%

25.000 20.000 15.000 10.000 5.000
976 2.166 2.460 2.700 4.420 3.410 3.921 8.825 14.067 12.114 10.818 21.312

0
96 97 98 99 00 01 02 03 04 05 06 19 19 19 19 20 20 20 20 20 20 20 20 07

22

Grupo ACS 1997 2007 and of profitable growth

Net profit of Grupo ACS
( mn)

CAGR 97-07> 46%

1.800 1.600 1.400 1.200 1.000 800 600 400 200 0
96 19
609 452 85 121 149 181 230 1.551 1.250

24

49

68

97

98

99

00

01

02

03

04

05

06

19

19

19

20

20

20

20

20

20

20

20

07

23

24