Strategy Update 2020 OHL Group - Madrid, March 2nd, 2015 Northern Urban Toll Road (Mexico)

Strategy Update 2020
OHL Group
Madrid, March 2nd, 2015

                          Northern Urban Toll Road (Mexico)
Any declaration made in this presentation that may differ from previous past figures made in
reference to, but not limited to; the operational development, business strategies and future
goals, are to be interpreted only as future estimates, and as such, they imply known and
unknown risks, uncertainties and other factors that could cause OHL’s results, behavior and
achievements, or the results and conditions of its activities, to be substantially different to
those and to its future estimates.

This presentation and the future estimations contained here within, are given on this date
and OHL expressly declines from any obligation or compromise to give any update or revision
of the information contained here within, any change in its expectations or modification in
the facts, conditions and circumstances in which these future estimates were founded.

                                        OBRASCÓN HUARTE LAIN                                  1
Table of Contents

The OHL Group Today
Strategic Plan and Vision for 2020
OHL Concessions
OHL Engineering & Construction
  • OHL Construction
  • OHL Industrial
  • OHL Services
OHL Developments

                             OBRASCÓN HUARTE LAIN   2
The OHL Group Today

                OBRASCÓN HUARTE LAIN   Airport Link Metrorail 3(USA)
OHL is a worldwide leader and international reference in
Concession, Engineering, and Construction projects

                                              OHL Engineering & Construction
           OHL                                                                                        OHL
        Concessions                OHL Construction      OHL Industrial      OHL Services         Developments

Leading company in PPP projects       International        Engineering        Management           Comprehensive
                                        reference        and construction   of projects in the     management of
Controlling stake of ~56% in the           in the           of turn-
                                                               turn-key           facility        unique top-
 equity capital of OHL México        construction of         industrial       management           projects in the
                                    civil engineering      installations        and urban        hotel-
                                                                                                 hotel-tourism sector
  Participation of ~14% in the     infrastructure and                       services sectors
    equity capital of Abertis       singular buildings

                                                 OBRASCÓN HUARTE LAIN                                               4
OHL has leveraged its progressive international expansion to
    compensate for the reduction of activity in Spain

      Proactive increase in international presence                   Selection of recent international projects

                 Evolution of revenue (%)                                Mexiquense Beltway
                                                                         Bicentennial Viaduct
                                      ~20    Spain                       Centre hospitalier de l'Université
                                                                         de Montréal – CHUM
                                                                         Rehabilitation of New York's subway
                ~70                                                      Airport Link Metrorail in Florida   Average
                                                                         Istanbul-Ankara High Speed Train     project
                                                                         and Marmaray project                 size of
                                      ~80    International
                                                                         High Speed Train
                                                                         Medina - Mecca
                                                                         Eastern Vespucio toll-

                                                                         Río Magdalena toll-
               2004                  2014
  # of                                                                   Oran Convention Center
                15                    30

    Allowing OHL Construction to reach a current orderbook of ~€
                                                              ~€8B, equivalent to over 3 years of production

                                                  OBRASCÓN HUARTE LAIN                                              5
OHL has historically delivered significant financial growth
while complying with its financial policy ratio

       Revenue (€
               (€M)                         EBITDA (€
                                                   (€M)                        Orderbook (€

          CAGR: +5%                           CAGR:
                                              CAGR: +15%                          CAGR:
                                                                                  CAGR: +8%

                 3,731                                                                        7,984



      2004        2014                      2004           2014                 2004          2014

 Maintaining the commitment with the financial policy ratio: recourse debt / recourse EBITDA below 3x

                                           OBRASCÓN HUARTE LAIN                                         6
Strategic Plan and Vision for 2020

                 OBRASCÓN HUARTE    hospitalier
                                 LAIN             de l'Université de Montréal – CHUM (Canada)
The new Strategic Plan is based on two key principles:
cash generation and sustainability of each division

                                  1    Further strengthen OHL's capabilities and resources
                                       to enhance project execution and risk control mechanisms
    Ensure cash
                                  2    Concentrate the Group's activities on eight Home Markets
  in each division                     and balance project size and client portfolio

                                  3    Optimize cash flow generation with
                                       self-funding policy per division

     Guarantee                    4    Revenue and EBITDA to double between 2014 and 2020
   sustainability                      with low CAPEX requirements
  of each division
                                  5    Strengthen the commitment of the OHL Group with
                                       People, R&D&i and Corporate Social Responsibility

        Solid updated strategy to ensure future growth while maintaining financial discipline

                                          OBRASCÓN HUARTE LAIN                                    8
     The Strategic Plan and Vision for 2020 have been based on the OHL
     Group's strengths and capabilities

      Integrated      Five divisions with strong synergies and opportunities for collaboration
        Group          • Within OHL Engineering & Construction and as support for OHL Concessions

      Technical                                                      large--scale projects in all sectors
                      Vast experience and high skilled teams leading large
      Capability       • From transportation infrastructure to unique construction

                      Excellent management of the Group's concession portfolio throughout all geographies
    management of
     concessions       • 18 projects in 5 countries, with a managed investment of ~€7B

      Commercial      Diversified, high value-
                                        value-added, and profitable orderbook,
                                                                    orderbook, including emblematic projects
       Capability      • ~€8B Construction orderbook, or equivalent to over 3 years of production

     International    Successful international expansion and positioning as a worldwide reference
       Footprint       • Consolidated presence in attractive markets with large growth potential

     Commitment       Part of one of the largest European industrial conglomerates
      of the Villar
       Mir Group       • As a majority shareholder, the Villar Mir Group guarantees the OHL Group's stability

                                                OBRASCÓN HUARTE LAIN                                        9
    The OHL Group will focus its activity on eight Home Markets
    Shifting the company's center of gravity towards North and South America

    x1,9  Poland
x1,7   Czech Rep.
                                           Slovakia          x1,8

                                                                                                                  x1,3   Canada
x1,5   Spain
                                                                                                                          x1,3    USA

                                                                                                                             x2,3       Mexico
                                                      Arabia                                                                             x2,3   Colombia
    x1,7    Balkans1                                     x1,6
                                                                                                       Australia                                x1,8    Peru
                                                      Singapore                                            x1,4
                                                                                                                    New                          x1,5   Chile

 Target international                                                        Markets on a project basis2
                                             Home Markets                                                                Rest of the World
     positioning                                                           (potential future Home Markets)
                                                                                                                                                             Growth of investment in
(% of 2020 revenue)                                  85 %                                      10 %                               5%                    x#   Transportation Infrastructure
                                                                                                                                                             (Nominal 2020 vs. 2013)
    1. Includes Croatia, Bosnia & Herzegovina, Serbia and Macedonia 2. Periodically reviewed
                                                                                           OBRASCÓN HUARTE LAIN                                                                    10
    Two key financial principles: sustainable cash flow generation
    and self funding per division

            Key Principles                              Specific targets per Division

                                                  Equity for new concessions through dividends
                                                  and rotation of mature assets
     Optimize the profitability                   Target IRR of 15% in EUR for new concessions
     and cash flow generation                     OHL Mexico self-
                                                              self-funding to deliver growth
     of each line of business                     opportunities in Mexican infrastructure plan

                                                  Reach target 70%-
                                                               70%-80% cash flow/EBITDA ratio
                                                  in 2020

     Self-funding of growth within                Margins within the first quartile in the sector
     each one of the divisions                    Balanced project size and client portfolio
                                                  to minimize risk exposure

                                                  To be funded through asset rotation

                                     OBRASCÓN HUARTE LAIN                                           11
    Revenue will double between 2014 and 2020, reaching €8B
    Maintaining the current business mix and ensuring financial policy compliance

                    Revenue (€
                            (€B)                                                      EBITDA (€

                         x2+          ~8.0                                                x2
                                      89%                                   ~1.1          22%
                         87%                                                20%
            88%                                                                           78%

            12%          13%          11%

            2014         2017         2020                                  2014          2017      2020
                                    OHL E&C and OHL Developments        OHL Concessions

      OHL E&C and OHL Developments will limit CAPEX requirements to €200-
                                                                     200-300M between 2015-

                                                 OBRASCÓN HUARTE LAIN                                      12
    The Strategic Plan reinforces the OHL Group's commitment
    to People, R&D&i,
               R&D&i, and Corporate Social Responsibility

                                                                                           Corporate Social
                 People                                 R&D&i
       Grow and promote growth                 Innovate to create value                    Joint value creation
    • Promotion of programs to identify    • Collaboration agreements with 60       • Comprehensive CSR management
      and manage talent                      universities and research centers        along the entire value chain
                                             in over 15 countries
    • Excellence in mobility plans and                                              • Special attention and priority given
      international development            • Multiple innovative solutions:           to preventing occupational
                                             Cubípodo, SATOgrab, Sogedron,            hazards
    • Commitment to technical                Dina sat, SULABU, Futuro Solar, etc.
      excellence and continuous training                                          • Protection of natural resources
                                           • Large-
                                             Large-scale projects in Concessions:   and biodiversity
    • Development of a respectful and        OASIS, FOTsis (FP7), SMARTSIT, Free
      diverse environment with equal         Flow toll system, etc.               • Application of ethical principles in
      opportunities                                                                 all business relationships
                                           • Cumulative investment of over €70M
    • Promotion of ethical and cultural      in R&D&i,
                                                R&D&i, with over 80 projects      • Commitment to fulfilling human
      values and principles                                                         rights standards
                                           • Projects always on demand
                                             from the business lines              • Committed to involving
                                                    OBRASCÓN HUARTE LAIN                                                13
OHL Concessions

                  OBRASCÓN HUARTE LAIN   Bicentennial Viaduct (Mexico)
OHL Concessions will maintain and strengthen the business model
that has successfully developed over the past years

                                                                  Participation in the equity capital of
 OHL Mexico and Other Concessionaires

• Financial autonomy from the OHL Group                    • Strategic / Industrial partner of the best-
                                                             class operator of mature tollroads
• Non-
  Non-recourse concessionaire funding,                        – Complementary to OHL's building and
  and with local currency                                       development of greenfield projects

• Taking up majority stakes which enable                   • Stable cash flow contribution via annual
  asset control during the development phase                 dividends
                                                              – With core shareholders supportive
                                                                 of dividend payments
• Minimum equity profitability of 15%,
                                  15%, in Euros
                                                           • Low risk profile investment
• Business model based in tollway charges,                    – Low volatility and significantly liquid stock
  periodic asset rotation and re-
                              re-leveraging                   – Low risk infrastructure operations
                                                              – Long-term investor base

                                           OBRASCÓN HUARTE LAIN                                               15
OHL Concessions' EBITDA is now over €850M, and the asset rotation
strategy has resulted in high return rates

    Rapid growth of the EBITDA (€
                               (€M)                          High return rates through asset rotation
                                                         Selection of operations from the past few years
                                                              Operation                 Years     IRR (%)
               CAGR: +25%                                                      ment
                                                                   Fumisa      €73M       5

                                                                   ConMex     €163M      11

                                                                   I2000       €66M       9       Average
                                                                    Alasa      €47M      10        ~27%

                                                                 OHL Brasil   €132M      11

        2004                2014                                   Abertis    €485M       2

                                      OBRASCÓN HUARTE LAIN                                                  16
OHL Concessions has a low execution risk, international portfolio
7 out of 13 international concessions currently in operation

                            Remaining years of the international OHL Concessions' portfolio

                                                            37                   38

                             28      28     30     30                     30
                       23                                                                              25
              19                                                                                19

                                       Mexico                                   Chile          Other Lat. Am.1
                                   8 concessions                            3 concessions       2 concessions
                              ~€5B investment managed                     ~€1.3B investment   ~€1.2B investment

1. Peru and Colombia
                                                   OBRASCÓN HUARTE LAIN                                       17
Short-term growth will stem from transportation infrastructures
within countries in the Pacific Alliance

          Sector strategy                         Current footprint                         Geographic strategy

Focus on developing                                                                      Consolidate        Mexico
transportation infrastructures                                                             current
  • Highways                                                                             positioning        Chile
  • Railroads
  • Ports                                                                 5 projects
  • Airports                                                                                 Grow           Colombia
                                     8 projects                                          in the short
Priority given to sectors in which                                                           term           Peru
revenue correlates to GDP                     1 project
  • Avoiding the businesses
                                           1 project
    specific risks (real estate,                                                           Explore
    industry, agriculture, etc.)                                                           specific         Brazil
                                             3 projects                                    sectors

                                                                                         Enter in the       USA
                                                  Countries with current presence         medium
                                                  Countries with development potential      term            Canada

                                                   OBRASCÓN HUARTE LAIN                                              18
OHL Engineering & Construction

                OBRASCÓN HUARTE LAIN   Jamal Abdul Nasser Viaduct (Kuwait)
Four key design principles for the definition of
OHL Engineering & Construction's Strategic Plan

           Four key design principles...                                   ...with specific targets for each Division

 1      Geographic focus on markets with growth                                    Diversification of the average size
        potential and high attractiveness for the                                  of projects, and focus on the
        Group: Home Markets                                                        transportation infrastructure sector
                                                                                   Collaboration with OHL Concessions
 2      Strengthening of areas of expertise by making
        the most of the Group's cumulative experience                              Focus on Power Generation, Mining,
                                                                                   and Oil & Gas sectors

 3      Reinforcement of risk management                                           Optimization of synergies with
        and human resources development                                            OHL Construction in Home Markets
        to achieve sustainable growth
                                                                                   International expansion of activity in
                                                                                   American Home Markets
 4      Promotion of collaboration with other
        OHL Divisions and maximization of                                          Optimization of synergies with other
        synergies within OHL E&C                                                   Divisions in the OHL Group

     OHL E&C's Strategic Plan is based on organic growth and does not foresee significant investments

                                                    OBRASCÓN HUARTE LAIN                                                    20
Every OHL Engineering & Construction Division has ambitious
growth plans up to 2020

                          Evolution of OHL Engineering & Construction's revenue (€

      OHL Construction                          OHL Industrial                         OHL Services

            CAGR: +11%                            CAGR: +27%                            CAGR: +23%

              3,900                                             1,000
    2,793                                              700                                            500
                                               234                                 145

     2014     2017       2020                 2014     2017     2020              2014      2017     2020
 Rapid growth in Latin American
                                         Current project orderbook of        International growth by entering
 (x5) and North American (x2)
                                         already ~€
                                                 ~€430M in early 2015        American Home Markets
 Home Markets

                                               OBRASCÓN HUARTE LAIN                                         21
OHL Construction activity will focus on Home Markets
Increasing relevance of North American and Pacific Alliance markets

                            OHL Construction revenue by geography (% 2020)

2014      2020
                          Home Markets                                                           15-20
70%      ~85%
                    North and South America
40%      ~65%                                                            10-15

                                         Forecasted mix according to current potential
                                                  identified in each market

       USA and   Mexico      Chile         Peru        Colombia          Spain       Czech       RoW     Total
       Canada                                                                     Republic and

                                                  OBRASCÓN HUARTE LAIN                                           22
The Strategic Plan is expected to balance the average size of projects
and remain committed to transportation infrastructures
                         Forecasted mix according to current potential identified in each market

            Balanced project size                                          Focus on transportation infrastructures

        Cumulative revenue '15-
                           '15-'20 (%)                                           Cumulative revenue '15-
                                                                                                    '15-'20 (%)

                                    15                                                                          10
                                                                 ~75%                                  15
                           25                                Transportation

                                             100                                     25                                 100

            25                                                              40     Focus of collaboration
                                                                                   with OHL Concessions

   < 10   10-50   50-150 150-300 >300       Total                     Roads and           Ports and          Hospitals
                                                                       highways            airports        and singular
                     Average project size (€
                                          (€M)                                     Railways          Energy,            Total
                                                                                 and subways          mining
                                                                                                    and others
                                                    OBRASCÓN HUARTE LAIN                                                        23
OHL Industrial will focus on increasing its activity
in the Power Generation, Mining, and Oil & Gas sectors

         Full development of EPC projects and operation and maintenance services provider

     Power generation                          Mining                            Oil & Gas

• Gas plants                       • Wet and dry process               • Oil and gas pipelines
• Hydroelectric plants                                                 • Storage and regasification
                                   • Seaport and land                    terminals
• Solar power plants                 terminals
  and other renewables                                                 • Gas processing
                                   • Full transportation and             plants
                                     storage systems
                                                                       • Ancillary refining and
                                   • Dosing, screening,                  petrochemical facilities
                                     and crushing

            Maintaining the Solids Transportation and Fire Protection Systems businesses

                                          OBRASCÓN HUARTE LAIN                                        24
Three priority sectors and two growth models for
OHL Services: Consolidation in Spain and Internationalization

                Sector strategy                                                     Geographic strategy

               Maximize cash flow generation                                   Growth
  Facility     while maintaining margins                                    consolidation
               Promote international development
               Consolidate OHL's current footprint
   Urban       in the Spanish market                                                                      USA
  services                                                                    Business
               Launch international expansion
               along with other Divisions                                                                 Peru
                                                                          towards American
                                                                            Home Markets
               Explore medium-
                       medium-term entry                                                                  Chile
 Industrial    opportunities in the sector, both in
maintenance    Spain and other Home Markets                                                               Colombia

        OHL Services' international expansion strategy will combine organic and inorganic growth

                                                  OBRASCÓN HUARTE LAIN                                               25
The Strategic Plan promotes synergies and collaboration
among all of OHL Engineering & Construction's Divisions

                                         Transportation                        Industrial                        Singular                                    Development of a joint-
                                         infrastructure1                        Works2                          Buildings3                                    collaboration model

                                                                                                                                                      Joint-management of business
                                                                                                                                                      development functions between
         OHL                                                                                                                                          each Division

                                                                                                                                                      Centralized processes for the
              OHL                                                                                                                                     Group's knowledge management
           Construction                                                                                                                               in specialized areas

 OHL             OHL                                                                                                                                  Cross-
                                                                                                                                                      Cross-Division teams in the
 E&C          Industrial                                                                                                                              research phase, as well
                                                                                                                                                      as during project execution

                                                                                                                                                      Formal collaboration models
                                                                                                                                                      between Divisions to share
                                                                                                                                                      risks and workload
                                                         Participation / Involvement in projects

1. Roads and highways, railways and subways, ports and airports. 2. Energy, mining, and hydraulic works. 3. Hospital and non-residential building projects
                                                                                         OBRASCÓN HUARTE LAIN                                                                          26
OHL Developments

               OBRASCÓN HUARTE LAIN   (Madrid)
OHL Developments will continue to promote unique projects
for top-
    top-quality tourism and recreational complexes

                 Divestment of      8                          1   Seeking and identification
              exploited projects                                   of opportunities

                                                                          Viability analysis,
            Exploitation       7                                   2      global conceptualization,
          and operation
                                                                          and project development

     Participation in the
    marketing and sales        6                                   3      Construction design
                 phases                                                   and execution

                   Identification   5                          4   Obtaining funds
                 and shaping of                                    and structuring of
          strategic partnerships                                   financing

        Focusing on projects with limited investment requirements for OHL Developments

                                        OBRASCÓN HUARTE LAIN                                          28
OHL Developments currently has three large projects
at different execution phases

            Mayakoba                      Canalejas (Madrid)             Old War Office (London)

Top-level tourism project          Urban revitalization in           Project to restore and
on the Mayan Riviera               Madrid's historic center          renovate the emblematic War
Paradigm of the balance            Will lead to the development
between tourist development        of Four Season's first hotel in   Will lead to the development
and environmental protection       Spain                             of a five-
                                                                          five-star hotel and luxury
                                                                     apartments in downtown
Second phase under way:            Considers converting              London
Mayakoba City                      seven historic buildings
 • ~17,000 homes                    • Hotel and homes
 • Retail area                      • Parking
 • Second golf course               • Shopping mall

            Mayakoba and Canalejas have made OHL Developments an international reference

                                            OBRASCÓN HUARTE LAIN                                       29

              OBRASCÓN HUARTE LAIN   Autovía del Cantábrico A-8 (Spain)
Key conclusions of the Strategic Plan and Vision for 2020

     Principles of OHL Group Strategic Plan                           OHL Group commitments for 2020

 A     Optimize sustainable cash flow
       generation and self funding for all
                                                              x  2+       ~€8B revenue vs. €3.7B in 2014

                                                                          85% of revenue coming
 B     Maximization of project profitability                              from Home Markets
       and strengthening of risk control
                                                                          Industrial and Services will
                                                                          represent 20% of revenue
 C     Focus of OHL Group's activity on
       priority markets and sectors
                                                                x 2       ~€2B EBITDA vs. €1.1B in 2014

 D     Leveraging on synergies and
       collaboration potential among                                      Maintaining the recourse debt /
       the Group's Divisions                                              recourse EBITDA ratio below 3x

                                               OBRASCÓN HUARTE LAIN                                         31
Strategy Update 2020
OHL Group
Madrid, March 2nd, 2015

                          Autopista Urbana Norte (México)
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