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Page 1: Results Presentation Full Year 2015 - ISOLUX  · PDF fileOil and gas processing plant in Algeria (€71 million). Courthouse in Segovia, Spain (€12 million). Concessions

Results Presentation

Full Year 2015 May 13th, 2016

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Disclaimer

This document has been prepared by Grupo Isolux Corsán, S.A.; therefore no part of it may be published, disclosed or distributed in any form or by any means, nor used by any other person or entity, without the prior written consent of Grupo Isolux Corsán, S.A. This document contains statements related to our future business and financial performance and future events or developments involving us that may constitute forward-looking statements. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such forward-looking statements and information are based on the current expectations and assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, which are beyond our control or may be difficult to predict, affect our operations, performance, business strategy and results and could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historical trends. Should one or more risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. We neither intend, nor assume any obligation, to publicly update or revise these forward-looking statements in light of developments which differ from those anticipated. The information contained in this document has not been verified or revised by the auditors of Grupo Isolux Corsán, S.A. Certain data included in this presentation has been subject to rounding adjustments. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables may not conform exactly to the total figure given for that column or row. This document does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities in any jurisdiction, including in the United States, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Specifically, this presentation does not constitute a “prospectus” within the meaning of the Securities Act.

Page 3: Results Presentation Full Year 2015 - ISOLUX  · PDF fileOil and gas processing plant in Algeria (€71 million). Courthouse in Segovia, Spain (€12 million). Concessions

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Results Presentation FY 2015 | Table of Contents

Table of Contents 1. Key Developments

2. Business and Financial Highlights

i. EPC

ii. Concessions

3. Cash flow and debt overview

4. Appendix

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1. Key Developments

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Results Presentation FY 2015 | Key Developments

Group

Financials

FY 2015 consolidated Revenues reached €2,189 million.

FY 2015 consolidated EBITDA: €176 million. EBITDA includes non-recurring losses coming from Brazil where macro environment led to a significant

slowdown in collections, resulting in project cancellations. This effect represents approximately €34 million of negative EBITDA.

FY 2015 Net loss of €52 million vs. a loss of €39 million last year, driven by the aforementioned decline in EBITDA and higher financial expenses, partially offset by a larger share of profit from the equity accounted business.

EPC

EPC backlog at €6.8 billion (4% Y-o-Y decrease).

New orders in 2015 amounted to €2,453 million.

Main contracts awarded in Q4 2015: Transmission line and substation in Ecuador (€20 million). Oil and gas processing plant in Algeria (€71 million). Courthouse in Segovia, Spain (€12 million).

Concessions

Break up of Isolux Infrastructure completed at the beginning of May 2016 (see next page) Car Park business improving significantly its performance following the acquisition of mature new assets.

At the end of 2015 total car spaces in operation were above 28,000.

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Results Presentation FY 2015 | Key Developments

Corporate

Isolux Infrastructure (IIN) break up process:

Break up completed on May 3, 2016. Over 150 authorizations were obtained during the last 6 months.

Grupo Isolux Corsán is now the sole owner of the Brazilian and Indian transmission lines as well as T-Solar.

On top of receiving the assets, we collected USD98.5 million corresponding to the Adjustment Payment determined by a third party expert back in September, and adjusted by Leakage.

This amount was paid directly to the banks that factored this receivable in Q4 2015.

Restructuring process and Going Concern

The Company has started to conduct an analysis of its financial structure in order to adapt it to the current market conditions.

For that purpose it has hired Rothschild and Houlihan Lokey as advisors.

Given the above, the auditor's report on our annual accounts includes a going concern emphasis paragraph.

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Results Presentation FY 2015 | Key Developments

Isolux Corsán Group Key metrics by segment (in € MM, unless otherwise stated) FY 2014 FY 2015 Change

EPC 2,097 2,161 3%

Subtotal (before IFRS 11) 2,780 3,056 10%

Concessions 657 870 32%

Other and corporate 27 24 (11%)

Adjustments due to change in consolidation method(1) (652) (866) -

REVENUES

Total Consolidated 2,128 2,189 3%

FY 2014 FY 2015 Change

279 222 (20%)

620 653 5%

372 477 28%

(30) (46) -

(369) (477) -

EBITDA

252 176 (30%)

FY 2014

13%

22%

57%

n.a.

n.a.

EBITDA Margin

12%

FY 2015

10%

21%

55%

n.a.

n.a.

8%

(1) Equity method consolidation of Isolux Infrastructure and the Car park business

One off losses in Brazil, driven by country macro environment, compressed EPC EBITDA margin

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Results Presentation FY 2015 | Key Developments

Isolux Corsán Group Debt breakdown by segment (in € MM, unless otherwise stated)

Dec 31, 2015

Dec 31, 2014

EPC 124 158

Subtotal (before IFRS 11) 1,583 1,548

Concessions - 8

Corporate and other 1,459 1,382

Adjustments due to change in consolidation method(1) - -

Bank borrowings and Senior Notes

Total Consolidated 1,583 1,548

Dec 31, 2015

Dec 31, 2014

-

3,499

3,340

159

(3,250)

Project Finance(2)

249

Dec 31, 2015

Dec 31, 2014

163 248

507 631

332 339

13 45

(325) (325)

Cash and STFI

183 306

-

3,464

3,308

156

(3,243)

221

(1) Equity method consolidation of Isolux Infrastructure and the Car park business (2) Guarantees given from Grupo Isolux Corsán to Isolux Infrastructure to finance projects amounted to €171M as of December 31, 2014 and €104M as of December 31, 2015.

In addition to corporate debt as reported under IFRS the Group also has other financial indebtedness including project finance facilities and confirming lines

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(93)

(57)

(18)

162

(33)

(24)

(49)

123

(26)

(74) (59)

(95)

2013 2014 2015

Q1 Q2 Q3 Q4

Results Presentation FY 2015 | Key Developments

Cash flow from operating activities: seasonality

Q4 negative trend driven by delays in collections and reduction in payment instruments

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2. Business and Financial Highlights

i. EPC

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(1) Defined as New Orders / Revenue (2) From consolidated Cash Flow Statement which is a proxy to EPC & Other business segments.

EPC (in € MM, unless otherwise stated)

FY 2014

FY 2015

Change

New Orders

Backlog

Backlog for 3rd parties

3,344 2,453 (27%)

7,107 6,817 (4%)

84% 79% (5 p.p.)

Revenue 2,097 2,161 3%

Book to bill ratio(1) 1.6x 1.1x (0.5x)

EBITDA 279 222 (20%)

EBITDA Margin 13% 10% (3 p.p.)

Operating Cash Flow(2) 123 (95) -

Cash Flow from Investments(2) (48) 178 -

Robust backlog represents almost 3 years of activity. EBITDA margin includes negative one-offs from Brazil

Results Presentation FY 2015 | Business and Financial Highlights

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3.344

2.453

2014 2015

EPC - Key Financial Highlights

Key Figures EPC Segment (in € MM) Main developments

Brazil impacted not only EBITDA, but, in terms of revenues, has almost no contribution.

Armenia: 2 out of 3 segments of the North-South Corridor have been completed and opened to traffic.

India

Second high voltage transmission line, with a total length of 180km and 400kV voltage completed in the state or Karnataka.

New 66kV substation energized in Gurgaon.

Rewa Road Substation, the first 400 kV GIS substation in the state of Uttar Pradesh and part of the biggest transmission project in India (1530km) energized in October.

EPC Segment New Orders

y-o-y Backlog

y-o-y Revenue

y-o-y EBITDA

y-o-y

Growth (27%) (4%) 3% (20%)

New Orders Backlog Revenue EBITDA

7.107 6.817

2014 2015

2.097 2.161

2014 2015

279

222

2014 2015

Results Presentation FY 2015 | Business and Financial Highlights

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Spain 20%

Latam 50% Rest of

Europe 3%

Middle East and Africa

9%

North America

3% Asia 15%

Spain 14%

Latam 57%

Rest of Europe

2%

Middle East and Africa

10%

North America

4% Asia 13%

Energy 31%

T&D 27%

Infrastructure 42%

Energy 48%

T&D 20% Infrastructure

32%

EPC Revenue by activity

FY 2015

FY 2014

EPC Revenue by Geographic Area

FY 2015

FY 2014

86% International

€2,161 MM

€2,097 MM

80% International

Results Presentation FY 2015 | Business and Financial Highlights

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Middle East and

Africa 13%

Asia 15%

LATAM 49%

Rest of Europe

4%

Spain 13%

North America

6%

Middle East and

Africa 12%

Asia 15%

LATAM 53%

Rest of Europe

3%

Spain 13%

North America

4%

>250M 16%

100M-250M 35%

50M-100M 20%

10M-50M 21%

<10M 8%

>250M 20%

100M-250M 26%

50M-100M 23%

10M-50M 24%

<10M 7%

2014

Energy 21%

T&D 33%

Infrastructure 46%

3rd Parties

79%

Concessions Division

21%

Energy 24%

T&D 24%

Infrastructure 52%

2015

EPC Backlog by Segment EPC Backlog by Geographic Area

2015

2014

EPC Backlog Concentration

2015

2014

87% International

87% International

EPC Own Backlog

2015

2014

€6.8 Bn

€7.1 Bn

3rd Parties

84%

Concessions Division

16%

Results Presentation FY 2015 | Business and Financial Highlights

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2. Business and Financial Highlights

ii. Concessions

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657

870

2014 2015

Concessions - Key Financial Highlights

Key Figures Concessions (in € MM) Main developments

Revenue growth driven mostly by tariff review in transmission lines, as well as new assets in operation within toll roads

Transmission lines operating EBITDA decreased by 2% driven by FX in Brazil, partially offset by increased revenues from WETT.

Toll roads EBITDA has grown by 32% driven by the opening of NH6 and NH8 to traffic and increased contributions across the board with the exception or BR116.

Isolux Infrastructure and car parks accounted by the equity method

(1) Construction Revenue not included

Revenue 2015 (1) Revenue 2014 (1)

Revenue EBITDA

372

477

2014 2015

50% 30%

17%

3% Transmission lines

Toll roads

Solar

Car parks

+32% +40%

54% 28%

15%

3%

Results Presentation FY 2015 | Business and Financial Highlights

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Concessions Key financial metrics (in € MM, unless otherwise stated) FY 2014 FY 2015 Change

Transmission lines 263 296 12%

Isolux Infrastructure 509 574 13%

Toll roads 156 186 19%

Solar photovoltaic 90 93 3%

Revenues

Total Concessions 657 870 32%

FY 2014 FY 2015 Change

203 253 25%

369 449 22%

93 122 32%

73 74 1%

EBITDA

372 477 28%

FY 2014

77%

72%

60%

81%

EBITDA Margin

57%

FY 2015

86%

78%

66%

80%

55%

Car Parks 15 21 40% 5 27 440% 33% 129%

Toll roads

97%

3%

Total kilometres: 1,644

89%

11%

100%

Total MW: 286 Total spaces: 28,884

In operation Under construction

Other( inc. Construction revenue) 133 275 - (2) 1 - n.a. n.a.

Solar PV Car Parks Transmission lines

61%

39%

Total kilometres: 5,959

Results Presentation FY 2015 | Business and Financial Highlights

Of which, operating 122 119 (2%) 98 96 (2%) 80% 80%

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Location Asset Stake (1)

(%) Years to Maturity

Demand Risk

Revenue Mechanism(2)

Equity Invested(5) Net Debt(6)

LXTE 100% Availability Payment €126m €227m

LMTE 100% Availability Payment €136m €210m

CPTE 100% Availability Payment €15m €44m

IENNE 50% Availability Payment €38m €25m

JTE 33% Availability Payment €21m €17m

LTTE 100% Availability Payment €47m €48m

LITE 100% Availability Payment €4m €3m

UPTE 100% Availability Payment €116m €322m

T-Solar 88% Unlimited PPA(3)/ Feed in Tariff €239m €709m

BR116 90% Real Toll €127m €180m

NH1 61% Real Toll €49m €434m

NH2 (4) 50% Real Toll €17m €15m

NH6 (4) 50% Real Toll €24m €143m

NH8 (4) 50% Real Toll €28m €82m

CAMS 100% Real Toll €59m €329m

COPEXA 50% Real Toll €71m €252m

Ocaña A4 51% Shadow Toll €14m €37m

I 69 Section 5 51% Availability Payment €8m €86m

WETT 50% Unlimited Availability Payment €156m €280m

Concessions – Grupo Isolux Corsan’s Assets

Toll

-Ro

ads

Tran

smis

sio

n L

ine

s

(1) Stake held by Isolux Infrastructure (2) Revenues indexed to inflation. (3) PPA stands for Power Purchase agreement. (4) 50% stake owned in partnership with Morgan

Stanley Infrastructure Partners. (5) Isolux Infrastructure proportional Equity Invested

as of December 2015 (6) Isolux Infrastructure Net debt based on

Consolidation stake as of December 2015. Holdco Net debt was €59m

Sola

r

(Brazil)

(India)

(Mexico)

(Spain)

(USA)

(Brazil)

(India)

(USA)

2013

2004

2013

2013

2007

2009

2012

2013

2010

2009

2010

2015

23

23

17

23

22

26

28

33

19

9

25

13

12

39

38

11

36

Results Presentation FY 2015 | Business and Financial Highlights

2015

TL

Operational & under construction

Under construction

Start of operations

Assets going to PSP

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3. Cash flow and debt overview

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172

294

(95)

(202)

(4)

178

Cash and cashequivalents Sep 2014

Cash and cashequivalents Dec 2014

Operating Cash Flow2015

Cash Flow from Investingactivities 2015

Cash Flow from FinancingActivities 2015

FX Cash and cashequivalents Dec 2015

Consolidated Cash Flow Bridge December 2014 to December 2015 (in € MM)

Cash Flow Bridge

Results Presentation FY 2015 | Cash flow and debt overview

Cash from operations(1)

: €154M Working capital: €(249M)

(1) Cash from operations including profit (loss) for the year and after taxes paid

STFI €15M

STFI €13M

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5 112 87 71

270

44 19

40 12

833

69

21 1

2016 2017 2018 2019 2020 From 2021 onwards

Term loans Advanced credit debts Senior notes Credit lines Finance lease liabilities

Corporate debt maturities as of December 31, 2015(1): breakdown by type of debt (Total €1,583 MM)

Debt Maturities

Over 85% of our corporate debt maturities are long term

(1) Senior Notes in accordance with IFRS, at amortized cost

2016 2017 2018 2019 2020 From 2021 onwards

Results Presentation FY 2015 | Cash flow and debt overview

234

109 73

852

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4. Appendix

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Results Presentation FY 2015 | Appendix

FY 2014

FY 2015

Borrowings(1) 1,548 1,583

Cash & STFI (before IFRS 11) 631 507

Net Corporate Debt 916 1,076

LTM EBITDA 252 176

LTM Distributions from concessions 14 192

LTM Adjusted EBITDA 276 368

Net Corporate Leverage(3) 3.3x 2.9x

(1) The relevant bondholders’ perimeter figure would also include Project finance (€214 MM) and Real Estate (€18 MM) for FY 2014 and Project finance (€249 MM), Real Estate (€14 MM) for FY 2015 (2) Includes indemnities and redundancy costs mainly related to headcount restructuring in our Spanish construction business (3) Covenant test to be performed as of December 31, 2015 .

Isolux Corsán Group (in € MM, unless otherwise stated)

Others(2) 10 -

Corporate leverage as per bank covenant definition

Financial indebtedness: • Corporate debt- €1,583m • Infinita - €159m • Confirming - €268m

Total - €2,010m

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Results Presentation FY 2015 | Appendix

Detailed Financial Statements - Consolidated Balance Sheet by segment

Consolidated Balance Sheet (in million €)

Property, plant and equipment 81 0 31 113 - 113 45 0 31 76 - 76

Investments in associates and joint ventures - (0) - (0) 974 974 - - - - 127 127

Other non-current assets 619 5,048 364 6,030 (4,963) 1,067 623 5,220 370 6,213 (5,173) 1,040

Total non current assets 700 5,048 395 6,143 (3,989) 2,154 668 5,220 401 6,289 (5,046) 1,243

Inventories 135 25 101 261 (7) 253 116 26 105 248 (5) 243

Accounts receivable 2,651 312 (774) 2,189 (341) 1,847 3,131 184 (929) 2,385 (303) 2,083

Derivative financial instruments 2 - 0 2 - 2 0 7 - 7 (7) 0

Financial assets 11 25 3 39 (25) 15 12 49 2 62 (49) 13

Cash and cash equivalents 236 314 41 592 (301) 291 151 283 11 445 (276) 169

Non-current assets held for sale - - 380 380 - 380 - - 381 381 947 1,327

Total current assets 3,035 676 (249) 3,462 (674) 2,788 3,410 549 (431) 3,528 308 3,836

Total assets 3,735 5,724 146 9,605 (4,663) 4,942 4,078 5,769 (30) 9,817 (4,738) 5,078

Borrowings 158 8 1,382 1,548 - 1,548 124 - 1,459 1,583 - 1,583

Project finance - 3,308 156 3,464 (3,243) 221 - 3,340 159 3,499 (3,250) 249

Liabilities held for sale - - 173 173 - 173 - - 167 167 254 421

Accounts payable 2,505 556 (294) 2,767 (412) 2,355 2,872 510 (445) 2,936 (456) 2,481

Other liabilities 196 915 51 1,162 (882) 280 188 1,191 9 1,387 (1,161) 226

Total liabilities 2,859 4,787 1,467 9,113 (4,536) 4,577 3,184 5,040 1,348 9,572 (4,613) 4,959

December 31, 2015

EPC ConcessionsOther and

corporateSub-Total

Change in

consolidation

method

Total

Consolidated

December 31, 2014

Sub-Total

Change in

consolidation

method

Total

ConsolidatedEPC Concessions

Other and

corporate

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Detailed Financial Statements - Consolidated Income Statement by segment

Results Presentation FY 2015 | Appendix

Consolidated Income Statement (in million €)

Segment's ordinary revenue 2,097 657 27 2,780 (652) 2,128 2,161 870 24 3,056 (866) 2,189

Other 16 - 0 17 (11) 6 16 26 (1) 40 (26) 14

Total operating income 2,113 657 27 2,797 (663) 2,134 2,177 896 23 3,096 (892) 2,204

Other operating expenses (1,834) (285) (58) (2,177) 294 (1,883) (1,955) (419) (69) (2,443) 415 (2,028)

EBITDA 279 372 (30) 620 (369) 252 222 477 (46) 653 (477) 176

Depreciation, amortization and impairment losses (19) (87) (27) (133) 91 (41) (29) (97) (17) (142) 101 (41)

Change in trade provisions (21) 0 (24) (45) - (45) (8) 0 (16) (25) - (25)

Operating results 240 285 (82) 443 (277) 166 184 381 (79) 486 (376) 110

Net financial results (13) (264) (171) (448) 243 (206) (47) (293) (174) (515) 278 (236)

Equity method - - - - 26 26 - - - - 43 43

Profit before income tax 226 21 (253) (5) (8) (13) 137 88 (253) (28) (55) (84)

Income tax - - (31) (31) 12 (19) - - (16) (16) 54 38

Results for the period from continuing operations 226 21 (284) (36) 4 (33) 137 88 (269) (44) (1) (45)

Results for the period from discontinuing operations - - (9) (9) - (9) - - (10) (10) - (10)

Results for the period 226 21 (293) (46) 4 (42) 137 88 (279) (55) (1) (56)

Attributable to:

Owners of the parent - - - (39) - (39) - - (52) (52) - (52)

Non-controlling interests - - - (7) 4 (3) - - (3) (3) (1) (4)

FY 2014

EPC ConcessionsOther and

corporateSub-Total

Change in

consolidation

method

Total

Consolidated

FY 2015

EPC ConcessionsOther and

corporateSub-Total

Change in

consolidation

method

Total

Consolidated

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Detailed Financial Statements – Consolidated Cash Flow Statement

Results Presentation FY 2015 | Appendix

Consolidated Cash Flow (in million €) FY 2014 FY 2015

Profit/(loss) for the period before taxes (25) (97)

Adjustments for non-cash items 269 266

Changes in working capital (109) (249)

Taxes paid (11) (15)

Net cash generated from /(used in) operating activities 123 (95)

Purchase of PP&E and intangible assets (18) (15)

Acquisition of concessionary assets and non-current assets assigned to projects (16) (25)

Advances from divestments in joint ventures - 216

Other capex, net (15) 3

Net cash used in investing activities (48) 178

Proceeds /(Reimbursement) of Corporate debt, net (671) 1

Proceeds /(Reimbursement) of Project finance, net 6 9

Proceeds from issuance of Senior Notes 840 -

Interest paid (209) (212)

Net cash flows generated from /(used in) financing activities (34) (202)

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Thank you

© Isolux Corsán 2016

Isolux Corsán Investor Relations [email protected]