1 9M 2013 Results Presentation| November 27, 2013 · 2 9M 2013 Results Presentation| November 27, 2013 1. HIGHLIGHTS 3 2. FIRST NINE MONTHS OF 2013 RESULTS 7 3. FINANCIAL STRUCTURE

1 9M 2013 Results Presentation| November 27, 2013


1. HIGHLIGHTS 3

2. FIRST NINE MONTHS OF 2013 RESULTS 7

3. FINANCIAL STRUCTURE 13

ANNEX: MAIN WORKS AWARDED 14

This document was prepared by Grupo Soares da Costa, SGPS, SA (Soares da Costa) to be used for its first nine months of 2013 results presentation. Nor Soares da Costa, nor any of its representatives, assume any type of responsibility regarding the eventual negative effects or losses caused by the use of the information contained in this document. This document does not constitute a public offer or an invitation to buy or sell shares, namely as defined in the Portuguese Securities Code, chapter III. This document does not constitute an offer/ request to buy, sell or exchange, and is not a voting request or the request for an approval in any jurisdiction. Neither the document, nor any part of its parts, constitute a contract, nor can it be used to integrate or interpret any contract or any type of commitment.

CONTENTS


SIGNS OF RECOVERY OF THE ACTIVITY IN THE QUARTER

ORDER BOOK WITH AN INCREASINGLY INTERNATIONAL PROFILE

CAPITALISATION OPERATION

HIGHLIGHTS


HIGHLIGHTS

CAPITALISATION OPERATION

CORPORATE RESTRUCTURING OF SOARES DA COSTA CONSTRUÇÃO

FINANCING BANKS FINANCIAL CLOSE

Operation presented to the banks, with ongoing negotiations to attain the necessary agreements

Expected to take place before the end of 2013

Signed with the company GAM Holdings (Investor), the subscription agreement and shareholders' agreement, which define the terms of the strategic partnership Participation in SDC America transferred to Grupo Soares da Costa Shared Services transferred to Soares da Costa Construção


HIGHLIGHTS

SIGNS OF RECOVERY OF THE ACTIVITY IN THE QUARTER

3Q’s turnover showns signs of recovery in the Group’s main markets: Angola, Portugal, U.S. and Mozambique

However, cumulated changes to 9M 2012 are still negative in some markets (Portugal, Angola and U.S.), where recovery will be gradual

34

83

28

13 6

45 47

28 23

11

48 52

29 26

9

Portugal Angola U.S. Mozambique Other

1Q 2013

2Q 2013

3Q 2013

196

259

98

50

16

127

181

84 61

27

Portugal Angola U.S. Mozambique Other

9M 2012

9M 2013


415 440

120 145

149 164

153 95

31.12.2012 30.09.2013

Othercountries

U.S.

Mozambique

Angola

HIGHLIGHTS

ORDER BOOK WITH AN INCREASINGLY INTERNATIONAL PROFILE

Order book’s strong international profile even more pronounced, reinforced by the write-off of the East Lisbon Hospital project in this 3Q

ORDER BOOK OF 913 MILLION EUROS AS OF SEPTEMBER 30, 2013

International order book kept its total value vs. Dec 31, 2012, but there was a positive evolution in Mozambique, U.S. and Angola

838 845

+6%

+10%

+21%

20% 15% 15% 7%

80% 85% 85% 93%

31.12.2012 31.03.2013 30.06.2013 30.09.2013

International

Domestic


9M 2013 RESULTS | KEY PERFORMANCE INDICATORS

CONSOLIDATED TURNOVER REACHED 480 MILLION EUROS (-22% YOY)

EBITDA OF 48 MILLION EUROS, DECREASING 27% COMPARED WITH 9M 2012, CORRESPONDING TO A 10.0% MARGIN, ONLY -0.6% VERSUS THE PREVIOUS YEAR

RECURRENT EBITDA (EXCLUDING COSTS WITH LABOUR CONTRACTS’ TERMINATION BY MUTUAL AGREEMENT) OF 53 MILLION EUROS, CORRESPONDING TO A 11.0% MARGIN

EARNINGS BEFORE TAXES OF -16 MILLION EUROS, RECOVERING FROM THE -20 MILLION EUROS ACCOUNTED IN 9M 2012

FINANCIAL RESULTS AMOUNTED TO -39 MILLION EUROS, IMPROVING CIRCA 12 MILLION EUROS COMPARED WITH 9M 2012

NET EARNINGS OF -16 MILLION EUROS, IN LINE WITH THE PREVIOUS YEAR


Figures in million Euros

9M 2013 RESULTS | KEY PERFORMANCE INDICATORS

Consolidated 9M 2012 9M 2013 YoY 1Q 2013 2Q 2013 3Q 2013 QoQ

Turnover 619.3 479.9 -22% 162.8 153.1 164.0 7%

EBITDA 65.4 48.0 -27% 16.5 17.1 14.3 -17%

EBITDA margin 10.6% 10.0% -0.6 pp 10.1% 11.2% 8.7% -2.5 pp

Recurrent EBITDA 81.7 52.8 -35% 18.0 20.4 14.4 -29%

Recurrent EBITDA margin 13.2% 11.0% -2.2 pp 11.1% 13.3% 8.8% -4.5 pp

EBIT 31.3 23.2 -26% 7.8 9.0 6.4 -30%

EBIT Margin 5.1% 4.8% -0.2 pp 4.8% 5.9% 3.9% -2.0 pp

Financial Results -51.4 -39.2 -24% -10.5 -13.6 -15.2 12%

Earnings before Taxes -20.1 -16.0 -20% -2.7 -4.5 -8.8 94%

Income Tax 4.0 -0.1 -103% 0.9 -2.9 1.9 -166%

Minorities -0.1 -0.1 64% -0.1 0.1 -0.1 -248%

Net Earnings -16.0 -16.0 0% -2.0 -7.3 -6.8 -6%

Order Book 1,102.3 912.8 -17% 1,081.7 1,063.6 912.8 -14%

Net Debt 961.4 1,094.5 14% 1,037.3 1,058.5 1,094.5 3%


9M 2013 RESULTS | EVOLUTION OF TURNOVER

480 MILLION EUROS OF TURNOVER,

-22% THAN IN 9M 2012

Figu

res

in m

illio

n E

uro

s

619 million 480 million

Turnover still under pressure due to the

decreasing evolution of the construction and

concessions business areas (in this case from the

construction volume of Transmontana vs. 9M 2012)

Construction’s turnover mirrors the contraction

in Portugal (-41%) and delays in some works in

Angola and U.S., not yet totally recovered

210

244

199

230

191 183 163 153

164

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

196 127

259

181

98

84

50

61

16

27

9M 2012 9M 2013

Other countries+63%

Mozambique +21%

U.S. -14%

Angola -30%

Portugal -35%

564

394

133

92

4

23

-82 -29

Other/ Adjust. -64%

Real Estate +473%

Concessions -31%

Construction-30%


9M 2013 RESULTS | OPERATIONAL PROFITABILITY

48 MILLION EUROS OF EBITDA,

CORRESPONDING TO A 10.0% MARGIN

Figu

res

in m

illio

n E

uro

s

65 million

48 million

EBITDA decrease in the 9M 2013 is mainly

explained by the construction’s negative evolution,

affected by the reduction in production and by lower

non recurring costs with labour contracts’ termination

EBITDA margin performance continues to be

resilient, with a recurrent margin of 11.0% despite the

22% decline in turnover

10.6%

13.2%

10.0% 11.0%

EBITDA margin Recurrent EBITDA margin

9M 2012

9M 2013

36.2

7.2

36.0

33.7

2.6

5.8

-9.4

1.3

9M 2012 9M 2013

Other/ Adjust.+113%

Real estate +121%

Concessions -6%

Construction -80%


9M 2013 RESULTS | PROFITABILITY

NET EARNINGS OF -16.0 MILLION EUROS IN LINE WITH

THE PREVIOUS YEAR

In spite of the decrease of the operational

profitability (-8 million) and of the

aggravation of the tax function (-4 million),

the 12 million Euros improvement of the

financial results allowed not to increase the

net losses compared to 9M 2012

(million Euros) 9M 2012 9M 2013 Var. Var. %

Net financing costs -37.6 -32.1 5.5 -15%

Foreign exchange differences -0.04 0.02 0.06 -155%

Other financial gains and losses -13.8 -7.2 6.6 -48%

Financial Results -51.4 -39.2 -12.1 -24%

FINANCIAL RESULTS EVOLUTION

65.4

48.0

31.3 23.2

-51.4

-39.2

4.0

-0.1

-16.0 -16.0

9M 2012 9M 2013

EBITDA EBIT Financials Income tax Net earnings


563.8 393.6

6.4%

1.8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

9M 2012 9M 2013

Turnover EBITDA margin

133.5 92.3

26.9%

36.5%

0%2%4%6%8%10%12%14%16%18%20%22%24%26%28%30%32%34%36%38%40%42%44%46%48%50%52%54%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

9M 2012 9M 2013


4.1 23.4

64.5%

24.8%

0%2%4%6%8%10%12%14%16%18%20%22%24%26%28%30%32%34%36%38%40%42%44%46%48%50%52%54%56%58%60%62%64%66%68%70%72%74%76%78%80%82%84%86%88%90%92%94%96%98%100%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

9M 2012 9M 2013


9M 2013 RESULTS| EVOLUTION BY BUSINESS AREA

Figures in million Euros

• The lower revenue accounting recognition associated with the construction of Transmontana (concluded in August) and Estradas do Zambeze is the main reason behind the turnover’s 31% decline

• The same effect has a positive impact in the EBITDA margin, that improved 9.6 p.p.

• Turnover declined 30% compared with the previous year, with decreases in Portugal, Angola and U.S.

• EBITDA margin affected by the activity’s reduction and non recourse costs (of almost 5 million in 9M 2013)

• Recurrent EBITDA margin of 3.0% in 9M 2013

CONSTRUCTION CONCESSIONS REAL ESTATE

• 9M 2013’s turnover benefited 19 million from the sale of the Talatona project in Angola (announced in 1Q)

• This sale also decisively impacted EBITDA and EBITDA margin in the period under review


FINANCIAL STRUCTURE| EVOLUTION OF NET DEBT

CONSOLIDATED NET DEBT REACHED

1,094 MILLION EUROS AS OF SEPTEMBER 30, +3% than by the end of June 2013

Figu

res

in E

uro

s

Both corporate net debt (recourse) and

project finance net debt (non recourse)

contributed (in nearly equal proportions) for

this evolution

Corporate net debt rose 19 million Euros,

justified by the reinforcement need of the

Group’s working capital items

Net debt associated with project finance

increase 17 million in the quarter, related

with an 11 million increase in Transmontana

net debt and 6.8 million in Scutvias (by

seasonal reduction of cash, as gross debt

remained stable)

961 1,024 1,037 1,058

1,094

536 564 584 592 610

426 460 453 467 484

Sept 12 Dec 12 Mar 13 Jun 13 Sept 13

Net debt Corporate net debt Net debt in project finance


ANNEX | MAIN WORKS AWARDED IN THE QUEARTER (AND UP TO 31 OCT 2013)

(*) Works not included in the order book as of 30.09.2013

Construction of a building to the Instituto Superior Politécnico Lusíada

(Lusíada Polytechnic Higher Education Institute), in Huambo

3 million Euros

ITT2013 Civil Construction For Drilling Campaign, to Anadarko

University Building Complex, in Maputo

Administration Block and Classrooms to the ISAP’s future campus in

Tchumene

Lisboa Historical Hotel, in Praça de Comércio, in Lisboa

Pestana Porto Hotel’s expansion works, in Ribeira, Porto (*)

Project “T5469 SR50 Dean to Avalon” in Florida (Orlando region),

consisting in the refurbishment and enlargement of the SR50 in Orange

County (*)

49 million Euros

9 million Euros

4 million Euros

2 million Euros

3 million Euros

7 million Euros


CONTACTS

GRUPO SOARES DA COSTA SGPS SA

www.soaresdacosta.pt Public Company Head office: Rua de Santos Pousada, 220 4000-478 Porto Share Capital 160,000,000 Euros Commercial Registry Office of Porto, corporate body and register number: 500 265 753 Representative for Market Relations António Frada T: +351 22 834 22 43 Investor Relations Rita Carles T: + 351 21 791 3236 | + 351 22 834 2217 [email protected]

Documents

1 9M 2013 Results Presentation| November 27, 2013 · 2 9M 2013 Results Presentation| November 27, 2013 1. HIGHLIGHTS 3 2. FIRST NINE MONTHS OF 2013 RESULTS 7 3. FINANCIAL STRUCTURE