Cleveland Research Company Stock Pitch Competition with the pitch on MasTec Inc,

1. MasTec Inc.Marc Davis | Evan Jones | Nhat Pham |Brian Wilcox
Cleveland Research Company Stock Pitch Competition - 2018

2. Executive Summary & Thesis 3
Company Overview 4
Industry Overview 6
Growth Opportunities 7
Valuation 10
Final Thoughts 14

3. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Investment Thesis
3
Source: Bloomberg
• We recommend a BUY on MasTec Inc with a 12 month price target of $53.00
• This represents a 10.65% upside from the current price of $47
• An estimated $130-150B will be spent on fiber infrastructure to meet the 5G broadband needs of the US
over the next several years
• Continuous growth in Mexico operations and a $1.5 billion pipeline contract with work expected to
commence in 2018
• All four operating segments set new 18-month backlog highs of $7.1 billion and 2017 acquisitions are
expected to work against this and realize revenue

4. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Company Overview
4
Source: Bloomberg, MasTec Inc 10K
Description
Operating Segments
0
1
2
3
4
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
2/27/17 5/27/17 8/27/17 11/27/17 2/27/18
Millions
37%
53%
6%
4%
$6.6 B in
Revenue
Communications
Oil and Gas
Electrical Transmission
Power Generation & Industrial
Market Data
Current Price $47.05
Market Cap 3,873.8M
Annual Dividend N/A
Dividend Yield N/A
FCF per Basic Share $0.41
Value
EV/EBITDA 9.1x
EV/Sales 0.76x
Price/Book 2.72x
Price/Earnings 17.05x
PEG 0.95x
Operation
Revenue 6,606.98M
EBITDA Margin 8.8%
Operating Margin 6.0%
Profit Margin 13.0%
Capital Structure
Debt 1.36M
Cash & Equivalent 40.33M
Quick Ratio 1.8x
Current Ratio 1.9x
Statistics
• MasTec, Inc. is an infrastructure construction company, which engages
in designing, building, installing, and maintaining infrastructures. It
operates through the following segments: Communications; Oil and
Gas, Electrical Transmissions, Power Generation and Industrial, and
Other
• Listed NYSE: MTZ
• More than 500 locations in the US and Canada as well as in parts of
Latin America and the Caribbean
• Employ over 18,000 people
• Headquartered in Coral Gables, FL
52 Week Stock Performance

5. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Operating Segments
5
Source: Mastec Inc, Mastec Inc 10K
Communications (37%)
Electrical Transmission (6%) Power Generation & Industrial (4%)
• Engineering construction and maintenance of
communications infrastructure primarily related to
wireless and wireline communications and install to the
home, and infrastructure for electrical utilities
• AT&T, including work for DirecTV, accounts for about a
third of MasTec’s revenue
• Primarily serves energy and utility industries through the
engineering, construction, and maintenance of electrical
transmission lines and substations
• Serves the energy and utility industries through the
installation and construction of power plants, wind farms,
solar farms, related electrical transmission infrastructure,
ethanol plants, and other industrial infrastructure
• Performs engineering, construction, and maintenance on
oil and natural gas pipelines and processing facilities for
the energy and utilities industries
• Recently secured a large project pipeline construction
award with an expected contract value of over $1.5 billion
Oil & Gas (53%)

6. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Industry Overview
6
Source: IBIS World, Technavio Market Research
Economic Recovery
• A good reputation within the markets they are working with
• Ability to quickly adjust to quickly changing government
regulations
• Having strong finances allows for companies to win contracts
Continued Growth
Industrial
Projects, 25.7%
Other Projects
and Services,
23.5%
Energy Projects,
11.8%
Transportation
Projects, 11.6%
Commercial,
Public, and
Institutional
Projects, 9.8%
Project
Management
Services, 8.4%
Municipal Utility
Projects, 6.0%
Telecom
Projects, 3.2%
• The industry will move from $840B in 2016 to over $1T in 2021
• Total construction spending has increase by 11% in 2014, 10.7% in
2015, and 6.5% in 2016
Keys to Success
• Years of economic recovery have led to more companies willing to
invest in infrastructure, communication, and energy projects.
• This creates a window for the construction & engineering sector
to boom in a growing economy.
• There is room for companies to focus on creating green projects,
such as LEED certified buildings, which gives opportunity to
engineering companies

7. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Communication Infrastructure Upgrade
7
Source: Bloomberg
Wireless Data Traffic in United States
The roll out of 5G countrywide Expected Efficiency of 5G
• The release of next-generation wireless network with
expectations of high efficiency
• AT&T was awarded a multi-billion contract from Firstnet in the
first quarter of 2017 to build out the FirstNet dedicated
emergency responder network
• MasTec is well positioned to help with this infrastructure
Need for Deep Fiber
388 867 1,468
3,230
7,040
11,830
19,150
30,130
45,250
0
10,000
20,000
30,000
40,000
50,000
2010 2011 2012 2013 2014 2015 2016* 2017* 2018*
Milliongigabytes
0.384 100
10000120
45
1
0
20
40
60
80
100
120
140
0
2000
4000
6000
8000
10000
12000
3G 4G 5G
Download speed (Mbps) Latency time (millisecond)
• An estimated $130-150B will be spent on fiber optic infrastructure
in the next several years
• AT&T, a main client of MasTec, has aggressive fiber expansion
plans to scale for 5G
• New fiber expansion projects are setting it up to ramp up future
wireline revenues during the MasTec’s second-quarter earnings
• Tremendous increase in data usage of recent years predicts
continuous growth in communications industry

8. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
The Recovery in Oil and Gas Market
8
Source: Department of Energy, Federal Energy Regulatory Commission
U.S. Natural Gas Demand
Opportunities in North America
Number of Active Drilling Rigs in the U.S.
25,538,487
26,155,071
26,593,375
27,243,858
27,485,517
27,090,402
25,000,000
25,500,000
26,000,000
26,500,000
27,000,000
27,500,000
28,000,000
2011 2012 2013 2014 2015 2016 2017 2018
MillionCubicfeet
• With high demand, Mexico has implemented energy regulation reforms to authorize and attract foreign investment in the
energy sector to expand and revitalize its energy industry
• In 2017, MasTec Inc completed construction on two pipelines to move U.S. sourced natural gas to the U.S.-Mexico
• In 2017, The Federal Energy Regulatory Commission (FERC) reported over 2,700 miles of pending natural gas pipeline projects,
each with project length more than 100 miles
• Mastec Inc recently secured a large project pipeline construction award with an expected contract value of over $1.5 billion

9. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Backlog
9
Source: Bloomberg
Continuous Growth and Record Backlog
$3,628
$2,525
$354
$577
2017 Backlog
Breakdown
Communications
Oit and Gas
Electrical Transmission
Power Generation and
Industrial
• Total 18-month backlog across the company set new
records at $7.1 billion
• The oil and gas, communications, and power generation
and industrial segments all set new highs for their
respective segment backlog figures
• MasTec Inc expect to realize approximately 80% of our
estimated year end 2017 backlog in 2018
Oil and Gas

10. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Valuation Summary
10
Source: Bloomberg
$44.00 $46.00 $48.00 $50.00 $52.00 $54.00 $56.00 $58.00 $60.00
Public Comparables
DCF - Bull
DCF - Bear
DCF - Base
Implied Price Target of $53.00

11. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Public Comparables
11
Source: Bloomberg
Commentary
• MasTec Inc has considerably higher margins than there peers which positions them to capitalize on their revenue growth in the
near future
• Their P/E is average for 2018 and declines below the average for 2019
• MasTec Inc also has a high EV/Sales and EV/EBITDA multiples indicating it is undervalued

12. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Discounted Cash Flow
12
Source: Bloomberg
WACC CalculationSensitivity Analysis

13. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Position Analysis
13
Source: D&B Hoovers
S W
TO
• A reliable distribution network that can
reach majority of its potential market
• Successful acquisitions over the past few
years to streamline its operations and to
build a reliable supply chain
• Highly skilled workforce with
experienced management team
• Strong nationwide fiber deployment projects
from telecommunication and cable TV
companies in the upcoming years
• Publicly disclosed plans and initiatives for 5G
from every major carrier, with AT&T is the
main customer of MasTec Inc
• Gaps in the product range sold by the
company. This lack of choice can give a new
competitor a foothold in the market.
• Investment in Research and Development is
below the fastest growing players in the
industry
• Increasing competition for contracts
• Rising cost of raw materials
• Reliance on other telecom companies

14. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Final Thoughts
14
Source: Bloomberg
• We recommend a BUY on MasTec Inc with a 12 month price target of $53.00
• This represents a 10.65% upside from the current price of $47
• An estimated $130-150B will be spent on fiber infrastructure to meet the 5g broadband needs of the US
over the next several years
• Continuous growth in Mexico operations and a $1.5 billion pipeline contract with work expected to
commence in 2018
• All four operating segments set new 18-month backlog highs of $7.1 billion and 2017 acquisitions are
expected to work against this and realize revenue

15. Appendix

16. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Pro Forma Income Statement
16

17. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Pro Forma Balance Sheet
17

18. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Pro Forma Statement of Cash Flows
18

19. Thesis &
Summary
Company
Overview
Industry
Overview
Growth
Opportunities
Valuation
Final
Thoughts
Appendix
Management
19
Summary: MasTec Inc
EVP & CFO – George L. PitaJose R. Mas
COO – Robert Apple
• Chief Executive Officer of MasTec Inc since 2007
• MasTec’s revenues have more than quadrupled and earnings have
grown six fold during his tenure
• Started in field operations at Mastec and worked way up
• Holds B.B.A. and M.B.A. from University of Miami
• Chief Operating Officer of MasTec Inc since December of 2006
• Served as Group President for MasTec's energy service operations since 2005
• Served from 2001 to 2004 as a senior vice president at DIRECTV®
• Graduate of U.S. Naval Academy
• Executive Vice President and Chief Financial Officer of MasTec Inc
since 2013
• From 2007 to 2013 served as EVP and CFO to Stuart Weitzman
Holdings
• B.A. in Accountancy from University of Miami