SACYR : EARNS 62 MILLION EUROS THROUGH JUNE AND REDUCES CORPORATE DEBT BY 41%

PRESS RELEASE

Sacyr applied the new IFRS 11* accounting standard, which entailed a reduced turnover, EBITDA, portfolio and debt, but had no impact on net profit. The gross operating profit (Ebitda) totalled 161 million euros; considering the divestments made, profitability remains stable with a gross margin of 13%. Therefore, the group achieved its objective of maintaining profitability despite the drop in business operations, above all in Spain.
Of the year's most outstanding achievements, we highlight the successful monetisation by Repsol of the Argentinian bonds as compensation for its expropriation of YPF, and its holding in the Argentinian state-owned petrol company.
Through June, the turnover amounted to 1.247 billion euros (down 7.8%) due mainly to the ongoing deceleration of construction operations in Spain, Testa's smaller lettable area as a
result of divestitures, the completion of two desalination plants and the impact of the recent

1

regulations on renewable energies and on electricity prices. It must be taken into account that, in this period, the volume of the Panama Canal expansion works will drop considerably due to negotiations with the client and the nationwide strike in that sector.
The change in consolidation as a result of IFRS 11 has lowered the weighting of the international activity in the turnover and portfolio; despite this, the group continued its international expansion, which now accounts for 43% of revenues. By geographical area,
27% of international turnover was in Angola, 23% in Chile, 16% in Portugal, 11% in Italy, and the rest mainly stems from activity in Brazil, Israel, Panama, Algeria, Togo, Australia, Bolivia, Colombia, Mexico, Ireland, Cape Verde and Mozambique.
The Group still maintains a strong future income portfolio with 23.317 billion euros, based mainly on the most recurring businesses: Sacyr Concesiones accounts for 36% of the total, and Valoriza 38%.
41% of the total portfolio stems from international activity. Within the construction business this percentage amounts to 81% due to the large amount of tendering activity taking place outside Spain.
As a result of the group's continuing effort to strengthen the balance sheet, its net financial debt was 5.691 billion euros at 30 June, i.e. 14.3% lower than in December 2013 (down
951 million euros, of which 659 million euros are as a result of applying IFRS 11). Corporate debt decreased considerably in the first half: by 41% to 189 million euros at june. The businesses' debt has been perfectly structured since 90% is associated with financing very long-term projects.
After completing its balance sheet consolidation phase, Sacyr boosted the shareholders' equity by 166 million euros through a capital increase of 36 million shares, each with a par value of 1 euro and a subscription price of 4.58 euros per share, which was fully subscribed. It also successfully registered an issue of convertible bonds for an amount of
250 million euros. The aim of these operations, for a total amount of 416 million euros, is to obtain additional funds for investment and boost the development of the key lines of business: mainly infrastructure concessions and industrial construction, both of which are
priorities within its international expansion strategy.

2

Also, the Sacyr share price continued its positive performance, with a 22% increase between January and yesterday's close.

696 million euros (a drop of 6% compared to 2013), largely due to the slowdown of business in Spain. International sales accounted for 69% of the total versus 46% year-on- year. The EBITDA margin remained at good levels: 6.4%, compared with 5.6% in the first half of 2013.
The large order book reached 4.785 billion euros (9% more than in June 2013) and reflects the successful international contracts strategy, as 81% stems from international projects thanks to the intense tendering activity carried out to obtain contracts such as the one in Angola for 315 million euros, the contract for two hospitals in Peru for 81 million euros, the second phase of the Costanera Norte road in Chile for 175 million euros, the new Coquimbo town council in Chile for 20 million euros, and the Almúdevar reservoir in Huesca (Spain) for 90 million euros.

In January this year, a consortium in which Sacyr Concesiones jointly participates won the competition for building and operating the Américo Vespucio Oriente (AVO) city motorway in Santiago de Chile, with an estimated investment of 710 million euros.

93.4 million euros, and EBITDA was 74.7 million euros, lower than the figures for the first

3

half of 2013, largely due to the smaller lettable area. The EBITDA margin is 75% and the occupancy ratio in Testa buildings is 98%, virtually full occupancy.
In the first half, Testa completed the sale of 12% of its stake in Preim Defense 2 for
25 million euros, so it now owns 20.1% of the latter. It also sold a let residential building in calle Conde de Xiquena, 17, Madrid, for 7.4 million euros and has assigned the right to the surface area of a nursing home for 13 million euros, obtaining capital gains in both operations.

33.4 million euros in June 2014 (-34.5%) due to the impact of the new regulations on renewable energy and the lower construction activity of the desalination plants. Revenue by area was as follows: Environment reported sales of 147 million euros; Water 84 million; Multi-services 134 million; and Industrial 83 million.
Valoriza's future income portfolio exceeded 8.835 billion euros, 25% of its revenue coming from abroad.
The highlights in the first half of the year were as follows: Sacyr Industrial was awarded a contract to build a cement plant in Bolivia for 180 million euros and electricity infrastructure in Mexico for 12 million euros; Valoriza Agua obtained contracts in Asturias and Cantabria for more than 20 million euros; Valoriza Servicios a la Dependencia will manage 6 day centres in La Rioja for almost 6 million euros and the home care services in Guadalajara for
3.5 million euros; Valoriza Facilities signed maintenance and/or cleaning contracts for more than 25 million euros; and Valoriza Servicios Medioambientales obtained conservation and maintenance contracts for more than 18 million euros.
* The IFRS 11 accounting standard entails significant changes to Sacyr's financial statements, as the stakes in joint ventures will be consolidated using the equity accounting method, which replaces the proportional consolidation method. Thus, the group's companies will consolidate using the equity method under the heading "company results by equity accounting". This entails a reduction of the turnover, EBITDA, portfolio and debt, but
has no impact on the net profit.

4

distributed by