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ACS Net Profit in 2013 accounts for 702 Euro million and reduces its net debt by 14.5%

Sales stand at 38,373 Euro million, 86.3% of them from abroad.

27-02-2014
- Total Backlog accounts for 63,419 Euro million, equivalent to 18 months of activity.
- Net debt of the Group has decreased by 14.5% in the year down to 4,235 Euro million by the end of 2013.

Consolidated Results
Sales in the year 2013 accounted for 38,373 Euro million, representing a slight decrease of a 0.1% due to the impact of the exchange rates. Not taking this effect into consideration, sales grew by 6.1% in the period thanks to the significant international activity of the Group, accounting for 86.3% of the total.
Sales by geographical areas demonstrate the diversification of the income sources of the Group, where Asia Pacific weights 39% of sales, America a 34% and Europe a 26%. Spain represents less than 14% of the total sales of ACS.
Total backlog by the end of the year 2013 accounted for 63,419 Euro million, showing a comparable year to year decrease of a 2.0%, after eliminating the effects from the exchange rate variations, caused by the depreciation of the Australian Dollar, the predominant currency in the backlog, and the perimeter changes after the disposals in Hochtief.

Grupo ACS EBITDA accounted a 2.8% decrease down to 3,002 Euro million, affected also by the exchange rate. In comparable terms, the variation accounts for a 3.1% growth. The margin on sales stands at 7.8%
On the contrary, EBIT grew up to 1,746 Euro million, a 10.5% more than in 2012. Incomparable terms, excluding the effect of the exchange rates, EBIT growth accounts for a 16.9%. Margin on sales stood at 4.5% .
Attributable net profit of the Group, that accounted for 702 Euro million, cannot be compared to the figure accounted in 2012, as last year’s figure was heavily affected by the restructuring of the investment in Iberdrola carried out during last year.
Recurrent net profit, excluding the extraordinary results accounted for 580 Euro million, 0.3% lower than the figure recorded last year, affected by the drop in the activity in Spain, a higher tax impact and the aforementioned exchange rate variations. Not including this forex effect, it would have grown by 7.0%.

HOCHTIEF
Hochtief obtained a net profit of 171 Euro million, 10.3% higher than in 2012, and a recurrent net profit of 208 Euro million, more than double of the figure presented last year.
To achieve these results, it has been key the restructuring process of the company, carried out during these last months, where it’s important to highlight the simplification of the structure in Europe, the reduction of the overheads in Germany and the homogenization of the risk control systems in all the companies.
In parallel to this restructuring process, the company has disposed of non core assets, like the telecomm business, the facility management services and the airports. Also in this period HOCHTIEF has increased by 6% its stake in Leighton, up to the current 58%, and has promoted the operating integration between all its local companies in USA, Europe and Australia.
These measures have reduced significantly its net debt down to the current 401 Euro million, more than 66% below the figure reported in 2012.
Investments
Grupo ACS has carried out net investments in the year 2013 that accounted for 2,484 Euro million, with the objective to promote the future growth of the company.

Among the operating investment in the period it’s important to highlight the funds in Construction, which come mostly from the acquisition of machinery and equipment in Leighton in Australia, necessary for the development of its mining activity. In the rest of Construction companies, in Industrial Services and in Environment the investment level is lower, also dedicated to the purchase of specialized equipment and the maintenance of its facilities
Additionally, the Group has invested in projects and financial investments. In Construction, Iridium has invested in the construction of several highways, among which the I595 in Florida is significant. The Group has also invested significantly in the development of several projects from Leighton in Australia, India and Hong Kong.
Industrial Services has invested in the completion of several renewable plants in Spain, which have come into operation in 2013, in wind farms in Peru and in other energy assets. In Environment the Group has invested in treatment plants, mainly in Essex, UK.
Also in the financial investments is included the purchase by HOCHTIEF of a 6% in Leighton and the acquisition by ACS of HOCHTIEF shares.
The disposals that accounted for 2,008 Euro million, are coming mainly from HOCHTIEF, that in 2013 has closed the disposal of their airports and services businesses, obtaining 1,083 Euro million and 236 Euro million respectively. Also Leighton sold its telecomm business for an equivalent amount of 451 Euro million.
Financial Situation
Net debt of Grupo ACS accounts for 4,235 Euro million, and decreases a 14.5% compared to 2012, after the strong disposals of the Group in the last year.

In the last twelve months the Group has reduced its net debt by 717 Euro million.
Out of the total net debt, 685 Euro million correspond to project finance, without recourse for ACS, whilst 3.550 Euro million are related to the rest of the business activities of the Group.
On top of the net debt reduction in the period, during 2013 there has been a significant decrease in the bank debt, for more than 1,100 Euro million, that has been substituted with a larger proportion of fixed income debt like bonds. By the end of 2013 the Group had a total account of 3,220 Euro million of bonds, practically double of what was accounted in 2012.
The main sources of funds contributing to the overall net debt reduction are:
- The recurrent cash flow from the operations, accounting for more than 1,018 Euro million
- The disposal of non core assets already mentioned.

Results per Area of Activity
Construction
Sales in Construction accounted for 29,559 Euro million, showing a decrease of 0.4% due to the effect of the exchange rates. In comparable terms, the variation would have been a positive growth of 6.7%.
International sales in Construction account for 28,166 Euro million, a figure now representing 95.3% of the total sales of the area.

EBITDA accounted for 1,826 Euro million, with a margin on sales of a 6.2%. Recurrent net profit accounted for 261 Euro million.
Backlog by December 2013 accounted for 47,563 Euro million. International backlog represents 92.9% of the total in Construction.
Amongst the most important awards of the period, these are the most significant:
- Contract to design and build the Wynn Cotai, an integrated hotel resort in Macau (China)
- Contract for the construction of gas compression facilities and associated works for the QCLNG project in the Surat Basin (Australia)
- Operation and maintenance contract for the Kings mining deposit at the Solomon Hub for Fortescue Metals Group (FMG) in Australia.
- Works for the construction of the North West Rail Link in New South Wales (Australia)
- Project for the Ottawa´s light train construction (Canada)
- Project for the Shatin to Central Link railway development in Hong Kong, which will connect several existing railway lines to form two strategic railway corridors.
- Contract for the development of the Moreton Bay Rail Link Project, a stretch of 12.6 kilometers that will connect the Brisbane rail network with the Moreton Bay zone in Australia
- Project for the improvement of the road network around Perth Airport and surrounding areas (Australia)
- Project to expand the capacity of the London Underground Bank Station (London, UK)
- Project for the new terminal in Melbourne Airport (Australia).
- Refurbishment of the highway A1/A6 between Schiphol-Amsterdam-Almere (Holland)
- Contract for the road infrastructure management in the north and south area of the city of Madrid (Spain)
- Works in the 86th subway´s station included in the project for the improvement and enlargement project of the New York´s subway network (USA)
- Building of the Centre for Applied Technology on NAIT’s Main Campus in Edmonton, Alberta (Canada)
- Works for modernization and upgrade of the Koluskie-Czestochova section of Polish railway number 1 (Poland)
- Construction of the segment 1 of the Florida State Road 23 (Sr-23) (U.S.A)
- Construction of the new Academic Arts Building Lewis Center in Princeton University (New Jersey, USA)
- Construction of a new bridge in Hagen (Germany)
Industrial Services
Sales in Industrial Services accounted for 7,067 Euro million, a 0.2% higher than in 2012. Not taking into consideration the exchange rates, sales would have grown by 2.9%. International sales grew by 5.2% up to 4,328 Euro million, a 61.2% of the total.
EBITDA grew by 3.7%, up to 937 Euro million. Recurrent net profit also grew by 0.5% up to 418 Euro million.
Backlog of this area accounted for 7,413 Euro million by the end of the period, equivalent to 13 months of production, being 68.6% from international contracts. The most important awards of the period are:
- Contract for the development of the Ilanga thermosolar plant with an installed capacity of 100 MW in South Africa
- Contract for the engineering, procurement and construction of a fertilizer plant, namely of diammonium phosphate (DAP), with a production capacity of 1.5 million tons per year in the industrial city of Ras Al Khair (Saudi Arabia)
- Project for low-medium gas compression platform Litoral -A in the oil offshore platform Sonda Campeche (México)
- Contract for the development of a polyoxymethylene plant in Saudi Arabia with a production capacity of 50,000 tons.
- Project for the engineering, procurement, and installation of 10 Ethylene Oxide Reactors in different SABIC affiliated companies in Saudi Arabia.
- Management contract for vehicles mobility in several areas of Madrid (Spain)
- Turnkey contract for the installation of the system of management, treatment and storage of NORM products (radioactive waste generated naturally) during drilling operations in the exploration for oil and gas by Abu Dhabi National Oil Company affiliates in the United Arab Emirates.
- Provision of water treatment services for the southern districts of Lima (Peru)
- Works and services in oil wells included in the Chicontepec project (Mexico)
- Turnkey project for the construction and renovation of warehouses and associated facilities in a plant Ma'aden Saudi Arabian Mining (Saudi Arabia)
- EPC project for the development of a coal based electricity generation plant with 28 MW of installed capacity in San Pedro Macorís (Dominican Republic).

Environment
Environment accounted for sales of 1,781 Euro million, showing an increase of a 5.3%. Waste Treatment, a capital intensive activity that includes recycling, treatment, incineration and biomethanisation plants, landfills and several renewable energy sources has grown by 42.9%.
EBITDA in Environment accounted for 275 Euro million with a margin on sales of 15.4%. Recurrent net Profit accounted for 79 Euro million.
Backlog stood for 8,443 Euro million, equivalent to 57 months of activity, with a 46.8% coming from abroad. Amongst the most important awards of the period are:
- Project for a solid urban waste incineration plant construction in Gloucester (United Kingdom)
- Contract for street cleaning services in London Borough Waltham Forest (United Kingdom)
- Awarding, renewal or extension of several street cleaning contracts in Spanish cities, like Linares, Denia, Siero and Palafrugell, amongst others.
- Renewal of packaging collection, transportation and treatment contract in the Valsequillo plant (Málaga, Spain)
- Street cleaning contract for the city of Paris (France)
- Contract for the solid urban waste collection in the District 13 of Paris (France)
- Enlargement of the biogas plant Loma de Los Colorados 2 in Altos de Punitaqui (Chile).

Madrid, February 27th, 2014