Sacyr : gross profit increases by 53% to 53 million euros in the firts quarter

PRESS RELEASE

52.9 million euros, representing a 53.5% year-on-year increase. The result of continuing operations rose 5.7% to 38.6 million. The attributable net profit was 24.8 million euros.
Sacyr applied the new IFRS 11* accounting regulation which entailed a reduced turnover, EBITDA, portfolio and debt, but had no impact on the net profit. The gross operating profit (EBITDA) was 81.1 million euros and the gross margin remain stable at 13.9%. Therefore, the group achieved its objective of maintaining profitability despite the drop in business operations, above all in Spain.
In the first quarter of the year, the group completed selective divestitures in concessions, services and property, for an overall amount of 173 million Euros, generating 27 million Euros of pre-tax profits. 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.
Also, Sacyr continues its growth on the Stock Market, with an increase of 31.3% on its share price from January until its close yesterday.
Once its balance sheet consolidation phase was complete and following the close of the first quarter, Sacyr strengthened its shareholders' equity by 166 million euros. It achieved
this by means of a capital increase of 36 million shares at a nominal value of 1 euro and a

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subscription price of 4.58 euros per share, with a 100% subscription. 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.

2013. By geographical area, 31% of international turnover was in Chile, 24% in Angola,
14% in Portugal, 10% in Italy, and the rest mainly stems from activity in Brazil, Israel, Panama, Togo, Australia, Bolivia, Cape Verde and Togo.
The Group still maintains a strong future income portfolio with 23,309 million euros, based mainly on the most recurring businesses: Sacyr Concesiones accounts for 36% of the total, and Valoriza 38%.
43% of the total portfolio stems from international activity. Within the construction business this percentage amounts to 79% 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 5,860 million euros on 31 March, representing a drop of 11.8% against December
2013 (782 million less, 659 million of this corresponds to the application of the IFRS 11). The debt related to businesses is perfectly organized, thus 90% of this debt relates to long-
term project finance, mortgage loans and lease agreements.

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301 million euros (a drop of 14.6% compared to 2013), largely due to the slowdown of business in Spain. International sales accounted for 74% of the total versus 38% year-on- year. The EBITDA margin remained at good levels: 6.6%.
The large order book reached 4,590 million euros, 79% of which stems from international projects, thanks to the intense tendering activity carried out to obtain contracts such as the one in Angola for 310 million euros, the contract for two hospitals in Peru for 32 million euros and the contract for the new Coquimbo town council in Chile for 20 million euros, among others.

60.8 million euros (+88%) due to the higher contribution from construction revenue.
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.

46.1 million euros, and the EBITDA was 36.8 million euros, lower than the figures recorded for the first quarter of 2013, largely due to the smaller lettable area. The EBITDA margin is
75% and the occupancy ratio in Testa buildings is 97%, virtually full occupancy.
In the first quarter, Testa sold a let residential building in calle Conde de Xiquena 17, Madrid for 7.4 million euros, above its market value.

221.2 million euros, representing a year-on-year drop of 15.9%, compared to 2013. EBITDA
amounted to 14 million euros on 31 March 2014 (-45%) due to the impact of the new regulations on renewable energies and due to the lower construction activity of the

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desalination plants. Revenue by areas was as follows: Environment reported sales of
73 million euros, Water 40.3 million, Multi-services 64.9 million, and Industrial 43 million. Valoriza's future income portfolio exceeded 8,930 million euros, 31% of its revenue coming from abroad.
Notable business operations in the first quarter of the year are: the award to Sacyr Industrial of a contract to build a cement plant in Bolivia for an amount of 180 million euros; Valoriza Agua obtained contracts in Asturias and Cantabria for more than 15 million euros; Valoriza Servicios a la Dependencia will manage 6 day centres in La Rioja for almost
6 million euros; Valoriza Facilities has signed maintenance and/or cleaning contracts for more than 13 million euros; and Valoriza Servicios Medioambientales obtained conservation and maintenance contracts for more than 8 million euros.
* The IFRS 11 accounting standard entails significant changes to Sacyr's financial statements, as the shares in joint ventures will be consolidated using the equity accounting method, which replaces the proportional integration 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.

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