Sacyr Sa

Good morning. I'm Manuel Manrique, executive chairman of SACIR. I'm joined in this presentation by Pedro Sigüenza, chief executive officer, and Carlos Mijangos, the company chief financial officer. Thank you very much to all of you, analysts, investors, and media representatives for attending this presentation of SACIR's financial results for the full year 2025. In fiscal year 2025, we reached the halfway point of our 2024-2027 strategic plan. And I must say that the results have been highly positive. Over the past two years, we have delivered significant additional value in our concession assets and increased our cash flow to invest in new projects. Therefore, confirming that our business model is increasingly solid, growing and profitable. This strong performance has been accompanied by an increase in our share price and cash dividend distribution, directly delivering the benefits of this business model to our shareholders. Between 2021 and 2025, our market capitalization increased by 152%, significantly outperforming the IBEX 35, which rose by 114 over the same period. The solid balance sheet for the first two years of the plan makes us very optimistic about meeting and even exceeding the overall targets under the plan, which will bring us closer to our goal of becoming world leaders in greenfield project development by 2033, as we announced back in the day. Now, looking at the specific figures of this midterm review, I should mention the following. Operating cash flow of 1.359 billion euros is This has exceeded the target two years ahead of schedule. We have secured five new concession project awards by contrast with three or four initially estimated. 905 million euros in new capital invested we have almost reached the target of 1 billion euros that we set for the 2024-2027 plan concession distributions amounted to 224 million euros well above expectations net recourse debt is at minimum levels we have also obtained an investment great weight in and we have distributed a first cash dividend of 225 million which is the total that we planned to distribute over this period these figures indicate that by the end of 2026 we shall have practically fulfilled the entire plan a year ahead of schedule, and we shall be ready to set new, more ambitious goals, especially depending on the outcome of some significant tenders in Australia, Italy, and the United States, where we are competing. Thanks to the awards won in the last two years, future concession distributions, have increased by 18% to 19 billion euros, which is a real strength for the sustainability of this business model. Since the last investor day held in May, 2024, total future distributions have increased by more than 3.1 billion euros, excluding those received since then. This important data reflects the awards that we report each year. We are a company experiencing exponential growth, but one that needs a certain amount of time to build and commission assets. We are investing in the future because today's successes will be seen in three, four, or five years down the road and in the form of distributions from our concessions. Concession distributions amounted to 224 million euros in fiscal 2025, 17% more than initially estimated under the plan. And if we add to this the proceeds from the sale of the Colombian motorways, the figure is 6, 500 million euros. I would like to take this opportunity to highlight the value of this divestment, which is 12% above our internal valuation due to the EBITDA multiple obtained and also because it helps us to balance our sources of income with a view to consolidating the global group we want to build. The three Colombian assets included in this successful transaction which we carried out by taking advantage of an excellent opportunity were already part of Boniantis. We have everything ready and continue to see a lot of interest among potential investors, but as we do not currently need cash for the projects in our portfolio, we shall undertake this transaction when we see the right market window. After progress made, the valuation of the assets also continues to rise. As of December 2025, it reached almost €4 billion, in line with the target of €5.1 billion by the end of 2027. The $4 billion valuation figure does not include the latest assets awarded to the company, including the two water plants in Chile. And I would like to highlight this as one of the major milestones reported in the prior fiscal period. That is why, in the coming months, we are planning to offer an updated valuation, which would undoubtedly already be in the north of 4 billion euros. As for 2025 income statement, noteworthy is the improvement across outlines. Revenue grew by 2% to 4.6%. 6 billion euros with a net profit excluding divestments in the amount of 165 million euros. That would have been 46% more. 93% of EBITDA comes from concession activities. In this regard, 73% of the construction portfolio is for our own concessionaire already operating cash flow in turn amounted to 1.359 billion euros at 5% and the net recourse debt ratio is just 0.18 compared to 0.42 a year earlier and far below the one percentage point we have committed ourselves to. These rocket-solid results demonstrate the success of the concession model for sustainable and stable growth. In 2025, we achieved a milestone that we had already announced back in the day. Cash flow exceeded a bit of which gives us great strength to face the challenges ahead. Let me remind you that financial assets of most of our concessions, once they become operational, EBITDA goes down and cash flows go up. Well, that has already occurred and cash flows will continue to rise. standing out from EBITDA, which will slide down progressively. Now, I would like to mention other milestones achieved during Fiscal Year 2025, such as a record five concession awards, one in Paraguay, one in Italy, and three in Chile, two of which are major water assets. The investment rating obtained from a global agency, that's another milestone. Our exceptional positioning for the future in the managed lanes sector in the U.S. and in the water sector in strategic markets. The outstanding divestment of the three Colombian assets, as I said, 12% above our initial valuation. Also, the fulfillment of our commitment to pay a cash dividend together with a script dividend for the benefit of all our shareholders and the division of executive functions carried out during the fiscal year, which enables us to continue fulfilling our strategic plan and preparing for the future with the utmost assurance. Finally, I would like to mention that SASE's leading position in the field of sustainability. With five years of continuous improvement having been reported in Standard & Poor's Global Yearbook, also as the only European infrastructure company with a CPD rating in water and climate in 2025, and among the world's best companies with the lowest ESG risk profile according to Sustainalytics. Next, Carlos Mijangas will provide you with more specific data and details on the income statement and balance sheet. Thank you, Mr. Chairman. We shall now analyze the company's operational and financial performance during fiscal year 2025. First, let's take a look at the results for 2025. Revenue reached €4.66 billion, up 12% year-on-year. EBITDA stood at €1.358 billion, maintaining a margin of around 29%, which reflects strong operating performance in terms of net profit, excluding GDP. divestments, there was a very significant increase of 46%, reaching 165 million euros. However, the sale of assets in Colombia had a one-off effect of minus 80 million, reducing the final net profit to 86 million. operating cash flow in turn amounted to $1.359 billion, up 5% compared to 2024, demonstrating the company's ability to generate cash from its assets, and this is higher than EBITDA. As the Chairman pointed out, I would like to mention that due to the accounting associated with concessions without a risk of litigation, which are considered financial assets for accounting purposes, maximum EBITDA is achieved at the end of the construction phase and as the years of operating Operation elapsed EBITDA slides down but operating cash flow climbs resulting in this effect where more operating cash flow has already been generated than EBITDA. From a financial standpoint, the company has achieved an investment rating from Morningstar DBRS, which is a sign of strength and confidence for investors, allowing it to diversify its source of financing, reduce costs, and simplify the prequalification processes for new projects. Furthermore, this opens up the opportunity to issue debt in the U.S. market through private investment. known as USPPs. In the area of divestments, as the Chairman pointed out as well, the CO3 motorways in Colombia for 1.565 billion euros stands out, with a multiple of 2.7 times the capital invested and 12% above our internal valuation. With regard to treasury share transactions, the company remains committed to value. We currently hold 30 million shares through forward contracts with an average reference price of 3.36 euros. As for shareholder remuneration in 2025, we made steady progress on increasing the cash dividend with a payment of 0.05%. 45 euros per share having been paid in July and a security dividend in January. Maintaining the policy established in our 2024-2027 strategic plan to remunerate with at least 225 million in cash during the planned value term. Capital contributions and distributions. Between 2025 and 2033, concession distributions of more than 3.7 billion euros are expected with 1.6 billion in capital contributions being committed to our projects. The net cash available for future growth amounts to 2.14 billion, which is a very significant figure that will enable us to compete with top-tier companies in the sector for the largest infrastructure projects currently being tendered. Long-term Outlook total estimated distributions through 2081 amount to 19 billion euros driven by new awards, discounting asset turnover in Colombia. This will generate an average annual distribution of 460 million, which further reinforces the company's growth capacity. If we now analyze the evolution of consolidated net debt, it has been reduced by $532 million. It is worth highlighting the strong operating cash flow generated by business activities amounting to $1.358 billion. Then we had the financial result generated mainly by project debt amounting to 609 million. We have invested more than 800 million in our assets and received 281 million from the sale of assets in Colombia. Finally, under the heading of miscellaneous assets, There is a decrease of €335 million due to the three main impacts. The reduction due to the effect of the consolidation of Chilean assets that were held for sale in 2024 and then the deconsolidation of Colombian assets already sold. a net amount of 222 million euros. That's the net effect. There is also a debt reduction due to exchange rate differences in the amount of 190 million euros and debt increase due to leases and dividends from the parent company amounting to 82 million euros as for net debt. Net recourse debt, the most notable event of the quarter where the funds received from the sale of three column assets totaled 281 million euros. And this cash inflow, together with seasonal recovery in working capital and taking into account investments and financial expenses over the quarter, brings us to a figure of 59 million euros, which is the lowest level ever achieved by the company. With this positive debt figure, the ratio of net recourse debt to recourse EBITDA plus dividends is 0.18 times, well below the maximum commitment of one time. The process of leveraging and reducing debt and risk undertaken by the company in recent years is quite evident. going from 850 million in 2019 to 59 in 2025. And now I give the floor back to the chairman. Now, Pedro Sigüenza will provide a detailed view of the performance of each business line.

Thank you, President. Good morning, everyone.

Thank you very much, Mr. Chairman, and good morning, everyone. I will now address the company's performance breaking down by line of business in fiscal year 2025. Once again, we achieved a record with five new Greenfield concession projects awarded, representing a success rate in our bids of over 50%, because we were awarded five contracts out of nine bids submitted. In 2025, we would award the project's total 13.6 billion euros, increasing our portfolio as of December 2025 to a total of 67.425 billion euros, and this affects all of our projects. Portfolios. We have created value for our water division with the award of two major concession projects, the Antofagasta plant in Chile, the largest waste water reuse plant in Latin America, which is a key project to secure water supply in the Antofagasta region, with an investment of 295 million euros, a duration of 35 years, and an estimated portfolio of 2.5 billion euros. and the Coquimbo desalination plant which is the first desalination plant under a public concession tender in Chile with an investment of 305 million euros a duration of 21 years and an estimated portfolio of 1.2 billion the plant will have an initial capacity of 800 liters with the possibility of expanding that capacity to 1,200 liters per second and will directly benefit more than 540,000 people in the municipalities of La Serena, Coquimbo, and Ovalle. Within our hospital specialty segment, where we are a global leader with more than 80 premises built throughout our history, we have added to our portfolio the City of Health and Science Project in Nevada in the Piedmont region. This is a multifunctional complex that will encompass a new hospital and a university campus with an investment of 125 million euros, a duration of 25 years, and which consolidates our position in Italy, one of our core strategic markets. As for transport infrastructure, we have been awarded two new concession projects. The Asunción Elevated Urban Highway, which extends the Eastern Route in Paraguay. This is a project with an investment of 174 million euros and a duration of 23 years. Then the Pied de Monte Route in Chile, a 20-kilometer stretch of highway that is key to the road modernization plan in the B.O.B. region of Concepción, with an investment of 330 million euros and a duration of 45 years. With these five Greenfield Project Awards, we continue to ensure our commitment to the steady growth of our successful concession model. Furthermore, today we can announce that we have just signed the contract for our first concession project in Canada, the Ontario Science Museum in Toronto, a project that will transform the Toronto skyline and open the doors to one of the most modern science centers in the world. This is a 30-year concession, inhaling an investment of €216 million, and we hope that this contract will be the gateway to other new concessions in Canada in the future. This slide shows a map with the main opportunities that we are bidding on, pre-qualifying for, or studying, in line with our strategic plan commitment to increase the weight of our portfolio in English-speaking countries, with a special focus on tenders in North America and Australia, but without neglecting our strategic European and Chilean markets. In the United States, as you know, we are pre-qualified for the managed lanes in Georgia, the I-285 in Atlanta, and the I-24 in Tennessee in Nashville. And we will be submitting bids before the summer break. In addition, last Friday, we were pre-qualified for the I-77 in North Carolina, another express lane on the southern approach to the city of Charlotte. As you can see, we are also pursuing other managed-link opportunities that are expected to be pre-qualified shortly in the United States. In Canada, in addition to the aforementioned Ontario Science Centre concession, which we have been awarded, we are pursuing various hospital concession opportunities, such as the Windsor Hospital for Ontario, Infrastructure, we are preparing for pre-qualification as well as several collaborative construction projects such as expansion of the Toronto Airport and the extension of Line 1 of the city's subway system for Metrolinx. Australia would like to highlight the recent partnership with a local built group and the award of our first hospital project in the country, Peel Hospital in Manjura, Perth, for which the initial design contract was signed last January. Together with Peel, we are exploring other opportunities in the hospital construction sector, such as the Parkville Hospital Concession in Victoria, various landmark buildings for the 2032 Olympic Games in Brisbane. In addition, we are competing for major water projects such as the desalination plant for northern water supply in Adelaide, the wire long water treatment plant south of Brisbane, and the Aurora reuse plant in Melbourne. In our strategic Italian market, we have submitted our pre-qualification for the A22 motorway connecting Modena with the Brenner Pass to Austria. And we are still awaiting the tenders for the Turin, Milan and Brescia-Padua sections of the Eightfold Motorway, which are due to be put up to tender shortly. Well, Senor, we are analyzing the tenders for the... high-speed train from Porto to Lisbon, and in Ireland for Metrolinx, the connection between Dublin and the airport, both under concession. I would also like to highlight the National Health Service Programme in the UK, a framework agreement to build hospitals under a collaborative contract model with an initial wave of 11 hospitals worth €15 billion. which will be expanded to 37 billion British pounds. We are now expecting the official announcement of the company shortlisted for the execution of this project shortly. And in Chile, we are pursuing several water and highway concession projects, such as the Caldera-Antofagasta Highway, which is a private initiative developed by SACIR, the Rio Bueno-Puerto section, both on Route 5 and Route 57 between Santiago and the Andes, among other opportunities. I will now provide you with some details on the performance of our lines of business. The Concession Division recorded revenue of 1.892 billion euros, representing an increase of 8% over the prior period. The impact of the exit from the scope of the three motorways sold in Colombia As well as the accounting effect of the evolution of operational financial assets have affected the division's operating income and EBITDA by 4 and 14% respectively. Construction revenue in turn rose by 50% due to the progress of major new greenfield projects such as the Belindre Hospital in Cardiff, the Buga Buenaventura Highway in Colombia, and the Ruta de la Fruta in Chile. In fiscal 2025, we invested 275 million euros in this division. bringing the total equity invested in our infrastructure assets in the transport sector to 1.71 billion euros after deducting investments, whereas distributions from our concessions amounted to 212 million euros in 2025. This year we also commissioned three assets all of them in chile the atacama airport in january the itata route in april and 68 on july on march the 1st we will commission the antofagasta airport project as for engineering infrastructure revenue grew by a percent to 2.971 billion euros thanks to the growth of outward activity in Italy and particularly the contribution of the A21 motorway. For this reason, the EBITDA rose 31% to €552 million. If we analyze the construction activity only, since, as you know, Italian concessions are included in this division, The EBITDA margin remains stable at 4.8% over the revenue figure. The division's portfolio set a new record, increasing by 18% over the year to 12.47 billion euros, of which 73% of the portfolio, as the chairman pointed out, corresponds to activities for our own concessions. Noteworthy milestones in the last quarter include the successful completion of the US-62 highway in Lubbock, Texas, bringing the total number of road projects completed in the country to 11 to date, which demonstrates our ability to execute complex projects in the US. As I mentioned before, the award and execution of the Peel Hospital contract in Perth. This is... aliens-based contract, that is to say a collaborative contract, which is one where we prioritize the execution of works for third parties. Finally, our water division continues to post the double budget growth reported in 2025, both in terms of revenue, which is up 25%, and now exceeds 300 million euros, and in terms of EBITDA, which reaches 62 million euros, 23% more year on year. The portfolio grows by 45% to €6.979 billion. This figure does not include the Coquimbo desalination plant, which will add another €1.2 billion to this portfolio in March once the contract is signed. Total equity invested in the concessions... of this division amounts to 128 million euros and the assets have delivered 12 million this year. So with this year's awards for two major concession projects, Antofagasta and Coquimbo, we have given a major boost to our goal of growing our water business within our 2024-2027 strategic plan. Now I give the floor back to the chairman for some concluding remarks. Thank you very much, Pedro and Carlos. SASEED will celebrate its 40th anniversary in 2026. I sincerely believe that we are at the peak of our trajectory. We have a clear-cut strategy focused on concessions and avoiding risks. We have a healthy balance sheet. with a strong cash position and well-structured project debt. We have also eliminated corporate debt. We are ideally positioned to tackle the challenges of transport, hospital, and water infrastructure from a public-private partnership perspective. Halfway through the 2024-2027 strategic cycle, I have no doubt that we will successfully complete it, thanks to last year's achievements, which represent the fulfillment of our commitments to shareholders and the market. Our success in securing concessions with five new awards to begin with and which, as we have said, will form the basis for this progressive increase in total distributions in the coming years from concessions, together with the multiple growth opportunities that we are bidding for in our strategic markets. And with more than 2.1 billion euros available, to invest between now and 2033 in terms of equity. Let's make this clear. Second, cash flow exceeds EBITDA and continues to rise. Thirdly, the achievement of the investment rating, which will enable us to increase our resources of financing while reducing finance costs. And finally, shareholders remuneration with a first cash dividend payment. I would also like to take this opportunity to thank all 15,000 professionals around the world for their work and engagement over the past year and send them a message of confidence in this company's project. Thanks to each and every one of them. we can report on the milestones achieved in our strategic plan today. In 2026, we shall continue working to fulfill our outstanding commitments and we are ready to celebrate our 40th anniversary and move forward with even greater strength. We are now available to answer your questions. Good morning, everybody, and thank you very much for joining us at this financial results presentation of SASE. We are going to start with those questions, post it via telephone first, and then we are going to tackle the questions. questions coming through the website. Those over the phone can press star five in order to address your question. Luis Prieto from Kepler Chevrolet is going to ask the first question. Thank you. Good morning. I had two questions. The first question has to do with Boreante's schedule. I understand that PD Montana is a requirement for rebalancing purposes, but since the chairman has conveyed that maybe we should have to wait until next year for the transaction to be launched. We have upset some transactions that were launched in the past with a scope different from the ones initially estimated. Could that happen with Boreantes? Well, could that be the case? We are going to answer in a minute.

Good morning, Luis.

Well, regarding Boreantes, I think that it was made quite clear. We did the reversal of three key assets. We announced that we have 2.140 billion euros in equity to invest. We do not need that operation for further investments. And second, we have a pipeline which is huge. And we believe that it will even improve our vision going forward positively. So this will establish a new strategic plan as well as what will happen with Boreantes. As for the question concerning the scope, the transactions that we engaged in were ones where we adapted ourselves to do whatever was best for the company at each point in time, and that is exactly what we're going to do with Boreantes.

Muy bien. Paso...

There are no further questions over the phone now. We are going to address the questions that were posted through the webcast. asks whether we can confirm or whether we can give more color on the contract that we have just announced for the Ontario Science Museum, the investment figure and our stake in such a consortium. We are also being asked about our stake in the consortia where we are bidding for concerning managed lanes and as for equity concerning construction and upfront payments, which are the amounts that we are analyzing for the managed lanes. And fourth, when do you expect to reach the rebalancing of the Pedra Montana project, let's just say the financial balance. We will get back to you in a minute.

Hola, Philip.

Hello, Philip. Good morning. Let's see. The contract we have announced over the Toronto Science Museum project entails an investment of €280 million. We are going to go hand-in-hand with Amico and John Lane. As for the managed lanes, we are going to work with Pennery. This is a Quebec fund. And then an Israeli company with a 50% stake in construction and 30% stake in equity. And we have already been pre-qualified as far as this project is concerned. Regarding the Piedmontano-related question, Philippe, We have a contractual entitlement to the rate balancing, so I have the same concern as the one announced six months ago. That is to say, we do not have any worry about this. There were regional elections, and that normally puts the schedule off. We continue to engage in meetings with the authorities and the big four that has been appointed to this end, but you know that time management in Italy has its peculiarities. This is going to be the third rebalancing process concerning this concession, but we are not worried about it at all. Thank you, Mr. Chairman. The next question is by Julius Nikensel from Bank of America. He asked about the Pedemontana project. And he says whether apart from the transaction concerning variantes, there is another potential divestment being analyzed, such as in Chile. And second, whether we can provide an update about conversations with rating agencies. We will get back to you in a minute. Thank you. As for Chile, there's always interest around our assets. However, When there is anything concrete, we are going to make the relevant announcement as we have always done. As for the rating agencies, we have been working with several agencies for quite some time. We were waiting for 2025 results being published in order to keep moving forward. Our goal is therefore to keep on engaging in conversations with them or exchanging information with them in order to get a new rating. We are going to go back to the telephone line because Miguel Gonzalez from J.B. Capital has a question. So, Miguel, you have the floor. Please go ahead. Good morning. Thank you. I have two questions, two quick questions. is the following. You provided an update of dividend evolution and equity committed in concessions. The gap between dividends and equity in 2026 has narrowed down compared to the guidance provided in Q3. Therefore, I would like to know about the FFO final picture, especially after the divestment in Colombia. Do you expect any growth in this respect compared to 2025? And then concerning the pipeline shown on slide 25, we are talking about the United States here, but could you give us more visibility about the timing or about the budgets concerning the most relevant awards? or the tenders in Italy, the Route 5 in Chile, or the project in Portugal. I believe that you decided to withdraw after the first tender. Could you give us any additional information in this respect? I would appreciate that. Miguel, we will get back to you briefly. Okay, Miguel, I'm going to answer your question concerning the funds of operations. On a like-for-like basis, most of our assets have to do with payment upon availability, but inflation normally results in increased cash flows compared to the prior year. Here we are also factoring in the assets that we were awarded in 2024 and 2025. Those which are greenfield, of course, do not have a contribution to operating cash flows. Not now, but they will in the future. Then we have 200 million euros coming from Colombian concessions. On a like-for-like basis, of course, we're going to grow. In absolute terms, we have to factor in those 200 million euros and include the greenfield assets that we have been awarded over the past two years, and therefore we're going to report similar figures. As for the question concerning timings, the two managed lane projects in Georgia and Tennessee in the United States were announced before the summer break. Route 5 in Chile or the um is going to announce next month and route 57 is going to be announced in june as for italy and as the chairman said actually the tender for the Brescia, Padova, and Turin motorways should already be available, but actually we are still waiting. As for the Portugal sectional stretch project, it has been put out to tender once again. There were no bidders, and therefore they decided to change the terms and conditions, and we are now waiting for this to be announced in May. We are paying close attention to developments. We go back to webcast questions. We had two questions, one from Victor Asitores. Are we currently analyzing the possibility of approving a new incentive plan tied to share price? And secondly, are we planning to update the evolution of our assets in fiscal 2026? Thank you. Okay, Victor. We shall be presenting a new incentive, a plan for management members in line with share prices and always in line with the best interests of shareholders, and we shall be doing so in the coming months. Secondly, based on the first half-yearly results, we shall review the value of our assets. The next question is by Julius once again from Bank of America. Could we please confirm whether we're going to update the figures under our plan? Are we going to present a new plan or are we going to hold an investor day? We will answer shortly.

Thank you.

Well, based on the results expected from this pipeline in Q4 2026, we expect to undertake a new strategic plan. As usual, we will keep you posted about all this and about the timing. Thank you very much. There are no further questions. Now let me give the floor back to the chairman. Well, if there are no further questions, we thank you once again for your presence, your attendance and interest, and we wish you all farewell until the next presentation. Thank you very much and have a good afternoon.