Acciona Sa · BME:ANA
Acciona Sa — FY2017 Earnings Presentation
50 slides from Acciona Sa's earnings presentation, Feb 27, 2018
Slide 1: 27 February 2018
27* February 2018
Slide 2: Disclaimer
| Disclaimer jacciona This document has been prepared by ACCIONA, S.A. ("ACCIONA” or the “Company”) exclusively for use during the presentation of financial results for the full year of 2017 (FY 2017). Therefore it cannot be disclosed or made public by any person or entity with an aim other than the
Slide 3: Table of contents
| Table of contents 1. FY 2017 Highlights Group financial information Energy Infrastructure Other Activities & Corporate Development 2018 Trends & Outlook Q&A session ND WM F WN Appendix
Slide 4: 1. FY 2017 Highlights
1. FY 2017 Highlights José Manuel Entrecanales Chairman & CEO
Slide 5: FY 2017 Highlights
| FY 2017 Highlights Meeting financial targets ¢ EBITDA growth above guidance — Infrastructure division as key contributor * Net Debt / EBITDA — yet another year of improvement, ratio at low end of the target range * Substantial reduction in financial costs Good results at operational level * Slight
Slide 6: FY 2017 Highlights
| FY 2017 Highlights jacciona Intense investment focusing on preserving profitability of portfolio * Ongoing gross annual capex at c. €0.9bn consistent with de-leveraging <4.0x ND/EBITDA * Close to 700 MW approved during 2017 for future years whilst staying cautious with auctions * Reinforcement in
Slide 7: 2. Group financial information
2. Group financial information Carlos Arilla Group Chief Financial Officer
Slide 8: FY 2017 key figures
| FY 2017 key figures Revenues EBITDA Ordinary EBT Ordinary Net Profit Net exceptional effects Gross Capex Net Investment Cash-flow! Net Financial Debt Net Debt/EBITDA FY 2017 (€m) 7,254 1,275 382 233 -13 FY 2017 (€m) 920 609 5,224 410x % Chg. vs FY 2016 +21.4% +7.0% +22.3% +59.8% n.m. FY 2016 (€m)
Slide 9: Group: capex by division
| Group: capex by division Capex breakdown jacciona Key highlights (Seiten fan) Jan-Dec 17 Jan-Dec 16 Energy 468 489 Infrastructure 359 358 Construction & Industrial 278 205 Concessions 25 19 Water 38 107 Service 18 28 Other Activities 93 69 Gross capex 920 916 Divestments -201 -64 Net capex 719 852
Slide 10: Group: improvement of debt profile (I)
| Group: improvement of debt profile (1) FY 2017 FY 2016 % Chg. | (€m) | (Em) vs FY 2016 Average cost of debt : 3.77% 3 4.74% ¥0.97 bps Net Interest - cash (€m) : -254 : -330 -23.0% Net Interest Coverage ratio : 5.0x : 3.6x +39.0% Debt Average Life (years) ! 413 : 4.21 -1.9% Reducing average cost of
Slide 11: Group: improvement of debt profile (II)
| Group: improvement of debt profile (II) jacciona ' FY2017 | FY 2016 ; (€m) | (€m) Gross corporate debt (€m) 1 4,855 | 4,517 Asa % of total gross debt 72% 67% Gross non-bank corporate debt (€m) : 1,608" 1,051 Asa % of total gross debt 33% =! 23% Total credit lines (€m) | 2,399 | 2,193 Of which undr
Slide 12: Group: net debt evolution
ACCIONA FY2017 Results presentation 12| Group: net debt evolution Acciona Net debt reconciliation FY 2017 (€m) Operating CF Net Investment CF Financing/Others CF Net debt EBITDA Financial results Working Other Gross Divestment Other Treasury shares Derivatives Forex Dividends Perimeter Net debt Dec
Slide 13: 3. Energy
3. Energy Rafael Mateo CEO ACCIONA Energia
Slide 14: Energy: key figures
| Energy: key figures jacciona Key figures EBITDA evolution (€m) (Million Euro) Jan-Dec 17 Jan-Dec16 Chg. Chg. (%) 740 20 726 Revenues 1737 1,796 -59 33% —— -34 EBITDA 726 740 14 1.9% Generation Margin-Spain(%) 54.9% 53.8% Generation Margin-Int. (%) 69.9% 73.9% FY 2016 EBITDA Generation AWP, Non- FY
Slide 15: Energy: generation revenues
| Energy: generation revenues Generation is a long-term Availability Resource business = 2017: a good year in terms of availability = Continuously working towards yearly increase = Focus on life extension, applying best practices = 2017: a year of extraordinarily low wind resource in several countri
Slide 16: Countries of operation
Canada Spain U.S. Egypt Mexico India Chile Australia
Slide 17: Energy: strategy
| Energy: strategy Maximizing our production Growing ina selective way Diversifying to minimize risks Always working towards increasing availability, both short-term and long-term Guaranteeing quality, safety and risk control Egypt, new country added to = our portfolio: 186 MWp of PV wes 3 ss Ensuri
Slide 18: 4. Infrastructure
4. Infrastructure Luis Castilla CEO ACCIONA Infrastructure
Slide 19: Infrastructure: key highlights
| Infrastructure: key highlights jacciona Key figures 2017 highlights (Million Euro) Jan-Dec17 Jan-Dec16 Chg. Chg. (%) = Revenues and EBITDA growth driven by high level of production in large International projects: Revenues 4,940 3,611 1,329 36.8% — Quito Metro - Ecuador EBITDA 426 321 106 33.0% —
Slide 20: Infrastructure revenue and backlog mix
100% 7% Service 60.000 51.512 14% Water 48.269 50.000 11% Concession 40.000 9% Industrial 33.354 30.468 30.000 59% Construction 20.000 10.000 0 2014 2015 2016 2017 2014-17 average - - - -
Slide 21: Construction, Concessions, Water, Industrial, Service
CONSTRUCTION CONCESSIONS WATER INDUSTRIAL SERVICE
Slide 22: Infrastructure: Construction & Industrial
| Infrastructure: Construction & Industrial jacciona Construction: Key figures Industrial: Key figures (Million Euro) Jan-Dec17 Jan-Dec16 Chg. Chg. (%) (Million Euro) Jan-Dec 17 Jan-Dec16 Chg. Chg. (%) Revenues 3,131 1,983 1148 57.9% Revenues 274 174 100 57.4% EBITDA 197 16 81 70.4% EBITDA 10 6 4 60
Slide 23: Infrastructure: Concessions
| Infrastructure: Concessions(’) Concessions: Key figures (Million Euro) Jan-Dec 17 Jan-Dec16 Chg. Chg. (%) Revenues 140 10 30 277% EBITDA 56 52 4 67% Margin (%) 39.6% 474% Concessions: 2017 highlights = Current portfolio: 20 concessions specialized in transport/mobility and social concessions in si
Slide 24: Infrastructure: Water and Service
| Infrastructure: Water and Service Water: key figures jacciona Services: key figures (Million Euro) Jan-Dec17 Jan-Dec16 Chg. Chg. (%) (Million Euro) Jan-Dec17 Jan-Dec16 Chg. Chg. (%) Revenues 682 708 -26 3.7% Revenues 753 677 76 12% EBITDA 130 19 n 9.2% EBITDA 34 28 6 22.6% Margin (%) 19.1% 16.8% M
Slide 25: Construction, Concessions, Water, Industrial, Service
CONSTRUCTION CONCESSIONS WATER INDUSTRIAL SERVICE
Slide 26: 5. Other Activities & Corporate Development
5. Other Activities & Corporate Development Juan Muro-Lara Chief Corporate Development & IR Officer
Slide 27: Other Activities
| Other Activities Other activities: Key figures 2017 highlights (Million Euro) Jan-Dec17 Jan-Dec16 Chg. Chg. (%) Trasmediterranea 426 431 5S 12% Real Estate 113 105 8 77% Bestinver 106 85 21 24.9% Corp. & other 45 48 2 5.0% Revenues 690 668 22 3.2% Trasmediterranea 45 61 -16 -26.0% Real Estate 12 1
Slide 28: Trasmediterranea
Trasmediterranea Key figures 2017 highlights (Million Euro) Jan-Dec17 Jan-Dec16 Chg. Chg. (%) = Increase in cargo, passengers and vehicle volumes have been offset by lower prices, resulting in flat Revenues 426 431 5 12% revenues AA 45 a Pe Penn . Trasmediterranea reduced its EBITDA by 26% to €45m d
Slide 29: Real Estate
| Real Estate Key figures 2017 highlights (Million Euro) Jan-Dec 17 Jan-Dec16_ Chg. Chg. (%) ™ Revenue growth of 7.7% driven by asset Revenues n3 105 8 7.71% rotation ™ EBITDA decreases as the new strategy for EBITDA 12 14 -13.3% ee the company is implemented Margin (%) 10.8% 13.4% GAV 2017 Breakdow
Slide 30: Real Estate
| Real Estate Delivering residential development strategy Contribution of the residential rental business to Testa Residencial in exchange for a 20% stake Disposal of commercial assets: two hotels and a shopping center — Achieving an average premium to NAV of 31% Residential development: close to 1,
Slide 31: Bestinver
Bestinver jacciona Key figures 2017 highlights (Million Euro) Jan-Dec17 Jan-Dec16 Chg. Chg. (%) ™ EBITDA reaches €70m, close to the historical maximum figures Revenues 106 85 21 24.9% ™ Performance of Bestinver Internacional and EBITDA 70 ® W SS Bestinfond of +11.7% and +11.6% respectively Margin (%
Slide 32: 2017 a year of intense M&A activity
| 2017 a year of intense M&A activity Acquisitions Disposals Geotech Ruta 160 Trasme Testa Date March 2017 August 2017 October 2017 a July 2017 Rationale Acquisition of an 82.4% stake > accelerate ANA’s expansion in Australian Infra market Disposal of Ruta 160 toll road in Chile to Globalvia > Group
Slide 33: Sale of Spanish CSP business to ContourGlobal
| Sale of Spanish CSP business to ContourGlobal > Agreement to sell 100% of Spanish CSP business to ContourGlobal for €1.1bn (EV) — Five CSP Plants with a total capacity of 250 MWs — Parabolic trough with no storage — CoD of the plants between 2009 and 2012 _ => ContourGlobal, an LSE-listed global I
Slide 34: CSP Business — Transaction rationale & valuation
|CSP Business — Transaction rationale & valuation Gacciona > Attractive valuation opportunity for ACCIONA — High demand for large regulated asset portfolios — Opportunity to reinvest in higher-return International greenfield development > CSP technology - limited useful life upside in Spain _ > Reba
Slide 35: 6. 2018 Trends and Outlook
6. 2018 Trends and Outlook Juan Muro-Lara Chief Corporate Development & IR Officer
Slide 36: Trends 2018
| Trends 2018 > Moderate growth in EBITDA on a like-for-like basis — Energy - recovery of generation volumes and contribution from capacity additions — Infrastructure — flattish EBITDA. Maintain Construction volumes at current peak levels — Other Businesses — stable. Transition year to growing contr
Slide 37: ACCIONA Outlook 2018
| ACCIONA Outlook 2018 jacciona Growing EBITDA, maintaining high investment levels whilst preserving financial strength Group EBITDA > Mid-single digit growth Working Capital outflow NFD / EBITDA Vv vi Vv l © 3 ig So 3, ‘Real Estate development investment in working capital not included in Working C
Slide 38: 7. Q&A session
7. Q&A session
Slide 39: Appendix
Appendix
Slide 40: Group: debt breakdown by division and nature
| Group: debt breakdown by division and nature jacciona 31-Dec-15 31-Dec-16 31-Dec-16 31-Dec-17, (antec) Net debt Cope b Project Debt Gross debt on | Net debt (Santee) Net debt Goep Project Debt Gross debt oat * Net debt Energy 4295 2941 1738 4679 385 4,294 Energy 4294 2,915 437 4286 315 3971 Infras
Slide 41: Group: corporate debt breakdown
| Group: corporate debt breakdown Corporate Debt (Million Euro) 31-Dec-17_ Weight 17' 31-Dec-16 Weight 16' Bank Debt 3,247 67% 3,466 7 Commercial paper program 379 8% 271 Bonds 862 18% 538 Convertible Bond 0 0% 101 Others (ECAs, Supranational) 367 8% 201 Total Non-Bank Debt 1,608 33% 1,051 Total Cor
Slide 42: Group: debt & liquidity
ACCIONA FY2017 Results presentation 42) Group: debt & liquidity {acciona Maturity profile of Group gross debt (€m) li.! 2018 2019 2020 2021 2022 2023 >2023 Credit lines @ Loans meECP ™ Bonds ™ Project Debt repayments Liquidity Cash - Available committed credit lines = Total Liquidity 31 Dec. 2017 €1
Slide 43: Energy: installed capacity
ACCIONA FY2017 Results presentation 43) Energy: installed capacity {acciona Spain 5,901 4,623 619 5,229 Wind 4,710 3,433 619 4,042 Hydro 876 876 0 876 Solar Thermoelectric 250 250 0 250 Solar PV 3 3 0 3 Biomass 61 61 0) 59 Internacional 3,122 2,874 78 2,055 Wind 2,671 2,469 48 1,711 Solar Thermoelec
Slide 44: Energy: equity-accounted generation capacity
ACCIONA FY2017 Results presentation 44 Energy: equity-accounted generation capacity jacciona Wind Spain 619 1,347 63 164 2005 Wind International 48 120 7 3 2005 Australia 32 81 5 1 2005 Hungary 12 26 2 2 2006 USA 4 14 0 0 2003 Solar PV 30 63 23 61 2008 Note: Average COD weighted per MW
Slide 45: Energy: FY 2017 installations, WIP and pipeline
ACCIONA FY2017 Results presentation 45| Energy: FY 2017 installations, WIP and pipeline jacciona MW added in FY 2017 Wind Mexico El Cortijo 84 Q4 2017 PPA + CELS + Capacity with CFE Wind India Bannur 75 Q3 2017 Feed-in tariff + GBI (Generation Based Incentive) Wind Canada Ripley 38 Q32017 PPA with O
Slide 46: Energy: FY 2017 installations, WIP and pipeline
ACCIONA FY2017 Results presentation 46| Energy: FY 2017 installations, WIP and pipeline jacciona Start of construction in 2018 San Gabriel Chile Wind 183 Q4 2019 PPA with Discoms + Private PPA Puerto Libertad (1) Mexico PV(2) 404 Q12019 PPA with CFE + Private PPA + Merchant Benban (1) Egypt PV(2) 18
Slide 47: Energy: new capacity approved during 2017
ACCIONA FY2017 Results presentation 47| Energy: new Capacity Approved during 2017 Gacciona Mt. Gellibrand - , : Green energy certificates purchased by Extension Australia Wind 66 Q3 2018 Victorian State Government + Merchant ElCortijo - Mexico Wind 15 Q3 2018 PPA +CELS + Capacity with CFE Extension
Slide 48: Energy: wind drivers by country
| Energy: wind drivers by country Wind prices (€/MWh) and Load factors (%) Spain Average Spain - Regulated Spain - Not regulated Canada * USA India Mexico ween El Costa Rica Australia Poland Croatia Portugal Hungary Italy Chile _ = 2 | — a = | Note: Prices for consolidated MWs * Prices include regul
Slide 49: Infrastructure: Concessions
ACCIONA FY2017 Results presentation 4g Infrastructure: Concessions 4) (&) {acciona # of concessions 1 2 1 1 5 55 75 Proportional EBITDA FY 2017 (€m) - 61 4 4 0 25 - 129 212 Consolidated EBITDA FY 2017 (€m) - 2 7 0 0 , 0 ~ 2 7 10 , ~ 153 Average life (yrs) 30 27 30 30 28 26 28 Average consumed life (
Slide 50: 27 February 2018
27* February 2018